2017 Member and Community Investment Highlights

The FHLBank Chicago’s financial performance remained strong in 2017. As a member-owned and member-focused cooperative, we used this strength to support your business and your community. This report highlights several successful initiatives.

Increased Return

Increased Return

Over the past year, the Board of Directors increased the dividend paid on Class B1 activity stock by a total of 50 basis points (bps) and the dividend paid on Class B2 membership stock by a total of 65 bps, as shown in the dividend history table below. A higher dividend per share was paid on Class B1 activity stock to reward members that use the FHLBank Chicago’s advances and, thereby, support the entire cooperative.

Dividend History
Period Ending Payment Date B1 Activity Stock (Annualized Rate) B2 Membership Stock (Annualized Rate)
12/31/17 2/15/18 3.50% 1.50%
9/30/17 11/15/17 3.30% 1.25%
6/30/17 8/15/17 3.30% 1.25%
3/31/17 5/15/17 3.15% 1.05%
12/31/16 2/14/17 3.00% 0.85%

Funding Advantages and Flexible Solutions

Funding Advantages and Flexible Solutions

Designing products to fit your business needs contributed to strong growth in advances and letters of credit in 2017. At year‑end 2017, the FHLBank Chicago had $48.1 billion in advances outstanding, up 7% from year‑end 2016. Letters of credit also experienced significant growth; at year‑end 2017, 199 members had letters of credit outstanding of $19.6 billion, up 81% from year‑end 2016.

Funding Advantages and Flexible Solutions

Early Bird Discount Advance
Launched on September 5, 2017, members receive a 2 bps discount when taking out a short-term A120 advance prior to 10:00 a.m. Over half of members who use this advance have taken advantage of the discount.

Secondary Mortgage Market Participation

Secondary Mortgage Market Participation

In 2017, the number of FHLBank Chicago members that sold their single family mortgages into the MPF Program grew. At year‑end 2017, MPF loans outstanding on the FHLBank Chicago’s balance sheet were $5.2 billion, up 5% from year‑end 2016.

2017 also marked the 20th anniversary of the MPF Program that supports other FHLBanks and their members. In 2017, the total number of Participating Financial Institutions (PFIs) at the MPF Program level grew by 4% and loans outstanding grew by 11% from year‑end 2016.

Secondary Mortgage Market Participation

Community Investment

Community Investment

Supporting your community investment activities is central to our mission and our holistic approach through new initiatives is expanding how we can support your affordable housing, economic development, and community lending goals to help build vibrant communities.

In 2017, 192 members reserved over $17.6 million in Downpayment Plus® (DPP®) grants on behalf of approximately 3,122 homebuyers. Over $26.4 million was granted through our competitive Affordable Housing Program (AHP) in 2017 to support 46 affordable housing projects and 2,366 housing units located primarily in Illinois and Wisconsin.

Community Investment

New in 2017, was the addition of the Community First® Capacity-Building Grant Program offering grants of $10,000 to $50,000 to qualifying nonprofit lenders to build their financial, operational, and human capital. In 2017, $250,000 was committed through this program. Also, as part of our ongoing effort to directly fund community development financial institutions and community development loan funds, the FHLBank Chicago has committed $44 million of the $50 million revolving Community First Fund by year‑end 2017.