FHLBank Topeka's mission is to partner with our members to make a difference in communities throughout Colorado, Kansas, Nebraska and Oklahoma. Here is an example of this partnership in action.
The first goal was always trust.
It was 2007, and a group of business leaders from Kansas City envisioned a bank built around trust. After raising more than twice the typical capital needed to open a new financial institution, CrossPoint Bank was born.
Ten years later, CrossFirst has been through countless changes – including a new name -- billions in growth and an expansion across multiple Midwest states. But trust remains at its core.
“CrossFirst Bank’s vision is to be the most trusted bank in the five markets it serves,” said Mike Tomandl, Chief Management Accounting Officer. “CrossFirst wants to offer extraordinary service to businesses and professionals and provide competitive returns to its investors.”
To help achieve such aspirations, the Leawood, Kan.,-based institution put their trust in FHLBank Topeka. Becoming a member in 2008, CrossFirst looks to FHLBank as a partner for fixed-rate wholesale funding opportunities.
“We primarily use FHLBank fixed rate bullet advances, but have also utilized amortizing and convertibles as part of our strategic plan,” Tomandl explained. “This type of funding allows us to extend certain assets for income generation and helps mitigate interest rate risk.”
The income generated helped CrossFirst grow its assets to more than $2 billion in its short decade of existence. The growth allowed the bank to expand beyond the boundaries of Kansas City into Wichita, Oklahoma City, Tulsa and most recently Dallas.
CrossFirst has also sought to reach the needs of a growing customer base by offering new products for a wider range of industries. In 2014, they developed an energy lending group and an international banking group to complement their suite of services for business professionals.
And an FHLBank Topeka advance allowed them to serve customers in higher education.
“CrossFirst has utilized a 10-year amortizing advance to match fund a 10-year loan commitment,” Tomandl said. “The loan was used to fund the acquisition of a building for a for-profit college. We still have the advance on our books.”
With a long-term partnership in the works, Tomandl said his bank will continue to trust FHLBank Topeka as a steady source for fixed rate wholesale funding, especially as they aim for further expansion over their next 10 years.
“It’s a very robust growth plan with trust at the center,” Tomandl said. “And FHLBank advances will continue to complement that growth.”
CrossFirst expects to grow at a double-digit rate in each of its five markets, he said. It’s a benchmark the bank will achieve with trust not only as its first goal but as a forever goal for success.