Community Bankers Association of Illinois

FHLB of Chicago Announces Details of Excess Stock Repurchase

In a January 13th letter to its members the FHLB of Chicago (Bank) announced the details of a plan to repurchase $500 million of excess stock. President and CEO Matt Feldman stated he looks forward to returning the decision for investment levels in the Bank and the liquidity of excess stock to member institutions.

This $500 million repurchase was recently approved by the Federal Housing Finance Agency in accordance with the Bank's approved new capital plan and represents more than 45% of the excess stock outstanding. It is the intention of the Bank to offer additional repurchase opportunities, provided it has met certain financial targets, until all excess stock that members do not wish to hold has been repurchased. Doing so will once again restore full liquidity to their stock, which has been their stated intention for some time.

Their letter stated, "Members have a specified time period during which they can indicate their interest in participating in this repurchase opportunity [b]y submitting requests for this repurchase." "[An] Excess Capital Repurchase Form (provided by the Bank) must be returned to the Federal Home Loan Bank of Chicago via fax or e-mail by January 31, 2012, at 5 p.m. C.S.T." If you do not wish to have any of your excess stock repurchased you do not need to return the Form or take any other action. If the amount requested to be repurchased exceeds $500 million, each member will have their requested amount repurchased on a pro rata basis. CLICK HERE to view the FHLB letter, additional information, and Repurchase Form.

If you have any questions regarding this process, please contact the Bank's Member Transaction Desk at 1-877-230-1610.

800.736.2224 (IL) | 217.529.2265