Agriculture business is big business in Nebraska, and growth has been the mindset at Bruning Bank, which serves the south central portions of the state.

A new branch opening and a long history of ag lending has helped the financial institution significantly expand its portfolio in the past few years. But much like their customers’ crops, they needed a little liquid to grow.

“Our bank, just like others, saw the rapid rate increases in 2022 and 2023,” said Bruning Bank President Jerry Catlett. “Everyone was in a bit of a scramble with deposits. We were able to grow and remain profitable because of the liquidity from the Federal Home Loan Bank.”

FHLBank Topeka provides liquidity in the form of advances, which help member institutions fund mortgage loans, mitigate interest rate risk and manage other assets and liabilities. Cash flow, payment options and terms from overnight to 30 years are adjustable to fit a member’s funding capacity.

Bruning Bank first had access to FHLBank advances when it became an FHLBank Topeka member in 1998. Catlett said it’s the funding flexibility that has made FHLBank advances so ideal over the years especially in the Cornhusker State.

“We’ve always been a seasonal borrower because we do a lot of agriculture loans,” he explained. “There are some parts of the year where we don’t need to borrow, and then there are parts of the year we borrow a lot from FHLBank based on our customers’ needs. So, we do a lot of advance work with FHLBank.”

Catlett said the overnight line of credit has been Bruning’s primary source for liquidity. This quick and easy option is often used by members for immediate cash needs, contingent liquidity or mortgage banking operations. The line of credit also automatically renews on a daily basis for any outstanding balance.

FHLBank Topeka’s fast funding and “great customer service,” Catlett said, have been an asset for Bruning as it expanded its business into new parts of Nebraska. Success, he said, blossomed beyond anticipation recently, but his bank knows FHLBank Topeka is a reliable funding partner in whatever climate they see.

“We opened a new branch in Grand Island. It’s grown beyond our projections, which is good,” he said. “The loan requests came in faster than the deposits, which is why we turned to the line of credit. It’s helped Bruning and our customers not just grow but thrive.”