Growing the Family Farm Using Community Investment Advances
last updated on Tuesday, April 12, 2016 in Advances
**Rolfe State Bank was acquired by the United Bank of Iowa in 2019.
Member Profile
Since 1934, Rolfe State Bank has provided dedicated service to customers in Rolfe, Iowa and Pocahontas, Iowa. From personal banking to agriculture and commercial, it continues to help customers make the most of every financial opportunity.
Challenge
A long-time customer of Rolfe State Bank in Rolfe, Iowa approached the bank with an interest in purchasing a piece of farmland in the area. Rolfe State Bank helped the customer purchase his first 40 acres of farmland 25 years ago, and with this loan would help his son join the family business. With a relationship lasting decades, Rolfe State Bank needed a flexible loan solution for this budding farmer.
Solution
With larger purchases in a low interest rate environment, Rolfe State Bank turned to FHLB Des Moines to make the deal. Rolfe State Bank bundled a 10-year, $500,000 FHLB Des Moines Community Investment Advance (CIA) that allowed it to offer a 20-year amortized loan with adjustments after 5, 10 and 15 years with a 10-year loan of its own.
Result
Rolfe State Bank was able to better manage interest rate risk associated with a fixed rate loan and make a longer-term loan to a good customer with a long history. Rolfe State Bank has been there from the beginning of this customer's business and has positioned itself to be a reliable partner for years to come.
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