Fhlbank Chicago Advance Products Fixed Rate | Floating | Structured

FHLBank Chicago Advance Products Fixed Rate | Floating | Structured

To take out an advance, please call our Member Transaction Desk at 1-855-345-2244, option 1 Fixed Rate Products

Advance Name Executable on Available for Principal SymmetricalActivity Prepay Stock and Code Minimum Size eBanking Community AdvancesTerms Repayments Rate Index Feature Required Other Features Benefits Common Uses

Short Term Yes, limit $200M 1–27 days; At 4.5% Liquidity, Close short-term funding gaps, finance A120 on 1 day term, fixed interest rate maturity or blended mortgage pipeline portfolios, fund residential $100M limit on for selected 2% funding mortgage loans in refinancing waves, 2–27 day term advance maturity accommodate seasonal cash flow needs

Fixed Rate, Yes, limit $100M Yes 28 days – At Yes 4.5% Laddered/ Competitive substitute for deposits or other Fixed Term 30 years; fixed maturity or barbell wholesale funding, alternative funding option A121 interest rate for 2% funding, to lock-in rates with expectations of rising selected advance hedge interest rates, preserve net interest margin maturity interest-rate (NIM) under rising rate scenarios, match fund risk long-term, fixed-rate assets, match fund securities or fund a securities purchase

Callable, $5M Yes 1–15 years; fixed At Yes 4.5% Member owns Match or Mitigate falling interest rate risk or Fixed Rate interest rate for maturity or option to blended prepayment risk, fund origination or purchase A122 selected advance 2% terminate funding, of long-term fixed-rate or amortizing loans, maturity advance prior to hedge fund mortgage-backed securities, amortizing maturity on set prepayment loans, or commercial real estate loans with reset dates and prepayment optionality, protection for interest-rate asset-sensitive institutions concerned with risk falling rates

Putable, $5M 2 days –10 years; At 4.5% FHLBank Below- Lower cost of funds in a tight NIM Fixed Rate fixed interest rate maturity or Chicago owns market environment, extend duration of liabilities and A123* for selected 2% option to funding, reduce liability sensitivity, substitute advance maturity terminate hedge alternative funding sources such as brokered advance prior to interest-rate deposits or Fed Funds, increase NIM maturity after risk with a larger spread when funding loans lockout period or investments on certain specified dates

Structured Yes 1–30 years; fixed Defined Yes 4.5% Match Match fund the amortization term of a Payment interest rate for schedule or funding, fixed-rate loan or pool of loans, lock spread Amortizer selected advance 2% blended income for the lifetime of the asset(s), manage A260 maturity funding interest rate risk, grow fixed-rate assets on balance sheet

Level Yes 1–30 years; fixed Defined Yes 4.5% Match Match fund the amortization term of a Payment interest rate for schedule or funding, fixed-rate mortgage, lock in spread income for Amortizer selected advance 2% blended the lifetime of the asset, manage interest rate A290 maturity funding risk, grow fixed-rate assets on balance sheet

Constant PSA Yes 1–30 years; fixed Defined Yes 4.5% Match Match fund the amortization term of a or CPR interest rate for schedule or funding, fixed-rate mortgage, lock in spread income for Amortizer selected advance 2% blended the lifetime of the asset, manage interest rate A291 maturity funding risk, grow fixed-rate assets on balance sheet

Callable $5M Yes 1–30 years; Defined Yes 4.5% Member owns Match Fund and hedge amortizing loans with Amortizer stepped schedule schedule or option to funding, prepayment options, grow fixed-rate loans A270* of fixed interest 2% terminate blended on balance sheet with prepayment rates advance prior to funding possibilities, lock in spread income on maturity on set prepayable, amortizing loans reset dates

Stepped Yes 1–30 years; At Yes 4.5% Funding, Match fund adjustable rate assets as the Rate fixed interest rate maturity or hedge member can customize the advance to have A280 for selected 2% interest-rate the interest rate adjust periodically according advance maturity risk to a specified schedule

Expander / $1M 1–20 years; At Yes 4.5% Member owns Hedge asset Lock in fixed-rate, fixed-term funding with Extender fixed interest rate maturity option to duration and the flexibility to increase the original principal A500* for selected increase the deposit amount at the original interest rate, advance maturity original principal run-off protect against duration extension of amount at the fixed-rate mortgages, MBS, or fixed-rate original interest commercial loans if rates rise and rate prepayments decline, replace deposit run-off in a rising rate environment

* From now until March 31, 2020, members can continue to execute the advance products with a LIBOR component with no tenor restrictions as long as the transactions settle by March 31, 2020. Beginning April 1, 2020, members can still transact the indicated advance products with a LIBOR component as long as they mature by December 31, 2021. Beginning April 1, 2020, transactions with maturities settling beyond December 31, 2021, are expected to be suspended.

2 | Federal Home Loan Bank of Chicago | Advance Products To take out an advance, please call our Member Transaction Desk at 1-855-345-2244, option 1 Floating Rate Products

Advance Name Executable on Available for Principal SymmetricalActivity Prepay Stock and Code Minimum Size eBanking Discounted AdvancesTerms Repayments Rate Index Feature Required Other Features Benefits Common Uses

Open Line Yes, limit 1 day, At FHLBank 4.5% Liquidity Manage unanticipated funding needs, fill of Credit $200M auto-renews; maturity Chicago short-term funding gaps, fund on a rolling A010 floating federal basis with one day maturity that is interest rate funds automatically renewable, fund assets, or effective strategies with unknown maturities

FHLBank 30 days; floating At FHLBank 4.5% FHLBank Liquidity, Meet short-term funding needs with a rate Chicago interest rate maturity Chicago or Chicago owns short-term linked to the FHLBank Chicago Fed Effective Federal for selected federal 2% option to funding Rate, lower cost of funds by selling an option Funds advance funds terminate to the FHLBank Chicago to terminate the Effective maturity effective advance prior to advance before maturity Putable maturity on any Floater day A012

Market $5M Yes 1 week–180 At Market 4.5% Liquidity, Meet short-term funding needs with a rate Federal days; floating maturity federal or short-term linked to the FHLBank Chicago Fed Effective Funds interest rate for funds 2% funding Rate Effective selected effective Floater advance A016 maturity

Fixed Rate $1M 180 days–10 At Same term 4.5% Rate equals Long-term Embed a “swap + rolling” advance strategy with Floating years; floating maturity advance or fixed-rate funding, into a single advance without the need for Spread interest rate for rate and 2% plus a floating hedge interest derivatives, fund fixed-rate assets A126* selected London spread equal rate risk advance Inter Bank to advance maturity Overnight rate – LIBOR Rate (Ex. 3M advance (LIBOR) – 3M LIBOR) index

Adjustable Yes 28 days– At Secured 4.5% Rate equals Match Fund SOFR-linked assets with a floating-rate Floater 10 years; maturity Overnight or SOFR plus a funding, advance indexed to SOFR A300 floating interest Financing 2% fixed spread hedge interest rate for selected Rate rate risk advance (SOFR) maturity

Discount 28 days– At 4-week, 4.5% Member owns Liquidity, Lock in mid- to long-term floating-rate Note Floater 5 years; floating maturity 13-week, or option to blended funding that is tied to the FHLBank Chicago’s A382 interest rate and 2% terminate funding Discount Note Index plus a fixed spread. for selected 26-week advance prior to Prepayable on each reset date, which makes advance FHLBank maturity on set this advance a flexible source of funding maturity Chicago reset dates discount note index

Structured $5M 91 days– At 13-week 4.5% Member owns Liquidity, Lock in mid- to long-term floating-rate Discount 10 years; maturity FHLBank or option to blended funding that is tied to the FHLBank Chicago’s Note Floater floating interest Chicago 2% terminate funding Discount Note Index plus a fixed spread. A383 rate for selected discount advance prior to Prepayable without a fee on each reset date advance note index maturity on set which makes this advance a flexible source of maturity reset dates funding

Overnight Yes, limit 1– 92 days; At Overnight 4.5% Member owns Liquidity, Lock in short-term floating-rate funding that is Discount $200M floating interest maturity FHLBank or option to blended tied to the FHLBank Chicago’s Discount Note Note Floater rate for selected Chicago 2% terminate funding Index plus a fixed spread. Prepayable on each A384 advance discount advance prior to reset date, which makes this advance a maturity note index maturity on set flexible source of funding reset dates

3 | Federal Home Loan Bank of Chicago | Advance Products To take out an advance, please call our Member Transaction Desk at 1-855-345-2244, option 1 Floating Rate Products, continued

LIBOR Yes 180 days – At 1-month 4.5% Rate equals Match Lock in funding in the mid- to long-term for Floater 10 years; maturity and or specified LIBOR funding, LIBOR-indexed assets, hedge interest rate risk, A400* floating interest 3-month 2% index plus hedge repricing, and basis risk in a down-rate rate for selected LIBOR a fixed spread interest-rate environment advance risk maturity

Prepayable Yes 180 days – At 1-month 4.5% Rate equals Match Lock in funding in the mid- to long-term for LIBOR 10 years; maturity and or specified LIBOR funding, LIBOR-indexed assets, hedge interest rate risk, Floater floating interest 3-month 2% index plus a hedge repricing, and basis risk in a down-rate A380* rate for selected LIBOR fixed spread. interest-rate environment with an embedded prepayment advance Option owned risk option to adjust funding without fees maturity by member to terminate advance prior to maturity on set reset dates

Prime Floater Yes 180 days – At Prime rate 4.5% Rate equals Match Match fund assets tied to the Prime rate, A410 3 years; floating maturity or Fed’s Prime rate funding, hedge interest rate risk in a down-rate interest rate 2% plus a fixed hedge environment for selected spread interest-rate advance risk maturity

Prepayable Yes 180 days – At Prime rate 4.5% Member owns Match Match fund assets tied to the Prime rate, Prime Floater 3 years; floating maturity or option to funding, hedge interest rate risk in a down-rate A411 interest rate 2% terminate hedge environment; manage risk with an option to for selected advance prior to interest-rate prepay the advance on set reset dates advance maturity on set risk maturity reset dates

4 | Federal Home Loan Bank of Chicago | Advance Products To take out an advance, please call our Member Transaction Desk at 1-855-345-2244, option 1 Structured Products

Putable $5M 1–10 years; At Specified 4.5% FHLBank Below-market Get competitive sub-LIBOR funding in the Floating-to- floating interest maturity LIBOR or Chicago owns funding, near-term, while locking in longer-term Fixed Rate rate for a period, index (1m 2% option to liquidity fixed-rate funding at the same time, customize A370* later converts and 3m terminate an advance to fit your funding needs to fixed most advance prior to with flexibility to select term, rate, spread, common) maturity after and option frequency lockout period on certain specified dates. Rate initially floats at a fixed spread from LIBOR before “flipping” to a fixed-rate

Floating-to- $5M Yes 1–20 years; At 1-month 4.5% Rate initially Below-market Take advantage of attractive short-term rates Fixed Rate floating interest maturity and or floats at a fixed funding, in the near term while locking in longer-term A371* rate for a period, 3-month 2% spread from liquidity fixed-rate funding in the mid- to long-term later converts LIBOR LIBOR before to fixed “flipping” to a fixed-rate

Capped $5M Yes 180 days– At 1-month 4.5% Rate cap Hedge Cap floating interest rate to control funding Floater 10 years; fixed maturity and or duration/ costs in the mid- to long-term, enhance future A390* spread to 3-month 2% convexity NIM in a rising rate scenario, add duration to floating index LIBOR libailities as rates rise to offset increases in duration of mortgage assets, finance mortgage loans, investment portfolios, or adjustable rate mortgages

Collared $5M Yes 1–10 years; At Constant 4.5% Rate cap Hedge Embed a cap and floor into an advance to Advance floating maturity Maturity or and floor. Rate duration/ protect against interest rate risks and hedge A402* within collar Swap 2% is reset convexity net interest margin. The cap limits the interest Index Rate periodically at rate the member pays, and the floor offsets a fixed spread some cost of the cap to the Constant Maturity Swap Index Rate

Net Interest $5M Yes 180 days– At Specified Yes 4.5% Rate cap Hedge Customize an advance with embedded caps Margin 10 years; maturity LIBOR or and/or floor duration/ and floors available to hedge NIM of loans Protection floating with index 2% convexity and investments and protect your balance A420* cap and/or (1m and sheet against rising or falling rates floor 3m most common)

5 | Federal Home Loan Bank of Chicago | Advance Products To take out an advance, please call our Member Transaction Desk at 1-855-345-2244, option 1