Newspaper article THE JOURNAL RECORD

Rockwell Becomes Member of Federal Home Loan Bank

Newspaper article THE JOURNAL RECORD

Rockwell Becomes Member of Federal Home Loan Bank

Article excerpt

Rockwell Bank NA is the first commercial bank in Oklahoma to join the Federal Home Loan Bank of Topeka, the banks announced Monday.

Larry Underhill, chairman and president of Rockwell Bank, 8621 N. Rockwell Ave., said the most important reason for becoming a shareholder in the Federal Home Loan Bank is its access to fixed-rate financing for home improvement loans under the Federal Home Administration Title I program.

"In home improvements, we saw the need for a unique product that we offer," Underhill said. "Being desirous of long-term, fixed-rate financing brought the Federal Home Loan Bank to our attention."

He said the fixed rate structure also "will enable us to get into mortgage lending."

Underhill said Rockwell Bank also is interested in banking services, such as check handling, offered by the Federal Home Loan Bank to its members.

"We are analyzing it now," Underhill said. "They are very good at what they do. It will come down to a matter of cost."

Rockwell Bank is the fifth commercial bank to become a member of the Federal Home Loan Bank of Topeka since 1989, when membership eligibility was expanded to include commercial banks and credit unions. Three members of the Federal Home Loan Bank of Topeka are Colorado banks; another is based in Kansas.

The Federal Home Loan Bank of Topeka has 113 stockholders, and 20 commercial bank membership applications pending.

Nationwide, 66 commercial banks and three credit unions have joined the 12 Federal Home Loan Banks. Estimates show about two-thirds of the nation's banks would qualify for membership.

Underhill said membership requirements for a Federal Home Loan Bank are similar to those of a Federal Reserve Bank. …

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