CINCINNATI, Oct. 2, 2007 (PRIME NEWSWIRE) -- The Federal Home Loan Bank of Cincinnati reported today the level of Advances to members increased by $1.8 billion to $53.6 billion in September compared to August 31, 2007, a 3.4 percent increase. For the third quarter, the level of Advances rose $6.2 billion, or 13.1 percent, compared to the end of June.
"Continued robust lending to our members during these times of economic uncertainty underscores the value of our housing finance mission," said David Hehman, president and chief executive officer of FHLBank Cincinnati. "Our members have learned during the current credit crunch that we can be depended on to provide a readily available source of liquidity during any turn in the business cycle."
Advances are wholesale loans made by the FHLBank Cincinnati to its member financial institutions, to support their lending and residential mortgage operations. The FHLBank disclosed information about its recent Advance activity in conjunction with a news release from the Federal Home Loan Bank's Office of Finance, which reported Advances from the 12 FHLBanks grew by $53 billion in September, as they helped their member institutions navigate recent disruptions in the credit markets.
The FHLBank is an $83 billion congressionally-chartered wholesale regional bank providing financial services for residential housing and economic development to 738 member financial institutions located in Kentucky, Ohio and Tennessee. It has contributed $258.6 million for the creation of 42,068 units of lower-income housing through its Affordable Housing Program since 1990, and $6.5 million to help 1,006 persons become first-time homebuyers through the American Dream Homeownership Challenge. The FHLBank System includes 12 district Banks, is wholly owned by its 8,100 member institution stockholders and does not use taxpayer dollars.
This news release may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, the effects of economic market conditions on demand for the FHLBank's products, legislative or regulatory developments concerning the FHLBank System, competitive forces and other risks detailed from time to time in the FHLBank's filings with the Securities and Exchange Commission. The forward-looking statements speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the FHLBank undertakes no obligation to update any such statements.