First State Bank Uses FHLB Dallas Economic Development Program to Aid Rural Texas Hospitals

HASKELL, Texas--(BUSINESS WIRE)--First State Bank of Abernathy, Texas, used Federal Home Loan Bank of Dallas (FHLB Dallas) Economic Development Program (EDP) advances (loans) to aid three struggling West Texas hospitals.

First State Bank used the advances to provide the hospitals with affordable loans that helped with operational expenses to keep their doors open to serve rural communities that dot the West Texas landscape.

Haskell Memorial Hospital in Haskell, Texas, received a $1.3 million EDP loan through First State Bank. The small West Texas town of 3,000 people about 150 miles east of Lubbock, Texas, treats critical care patients that otherwise would have to drive to nearly an hour to an Abilene, Texas hospital.

"Our hospital plays a critical role in making sure patients have access to healthcare in what would otherwise be a healthcare desert. For many in our communities, this literally could be a life-or-death difference,” said Michelle Stevens, CEO of Haskell County Hospital District.

The hospital, which employs 80 full-time workers, is also one of the city’s largest employers, she said.

“The funds we received helped our hospital recover from an unexpected loss of $2 million in government funding,” Ms. Stevens said.

First State Bank Director and CFO Denise Turner said the bank has also helped two other struggling rural hospitals keep their doors open with EDP loans.

“We had to figure out how we could help these rural hospitals because it was just extremely important and dire for our communities,” she said. “We definitely will use the EDP again.”

The EDP offers FHLB Dallas’ members favorably priced advances (loans) to finance a broad range of projects and initiatives, including small businesses, hospitals, nursing homes and social service facilities, commercial and manufacturing initiatives, infrastructure and public facilities. EDP advances are only available to FHLB Dallas member institutions which, in turn, provide loans to their customers.

To qualify for the EDP, the funded entity must create or retain jobs and be located in an economically disadvantaged area or serve a disadvantaged population to qualify. More details on qualifications are available at fhlb.com.

“It’s beneficial for our customer and the bank because we receive an affordable, competitive interest rate from FHLB Dallas and can lend money to struggling hospitals at a rate that they can afford,” said First State Bank Cashier Jentri Turner. “Maybe they aren’t doing brain surgeries, but they are dealing with rattlesnake bites or moms in labor or heart attacks. We are proud to be lending to these hospitals. In a sense, we are helping save lives.”

For First State Bank, the funding also produced goodwill, with community residents thanking the bank for its help in keeping rural hospitals healthy and operational.

“We have seen these three hospitals really turn things around to benefit their communities — the communities we so proudly serve,” Jentri Turner said.

About First State Bank
Founded in 1909, The First State Bank is a locally owned community bank that still operates under its original name and charter with only three owners in its 115 year history. With branch locations in Abernathy, Haskell, and Stamford, Texas, the bank is proud to serve communities across the Texas South Plains and Rolling Plains as a Minority Deposit Institution, offering deposit, loan, and Trust services. For more information, visit www.fsbabernathy.com.

About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $127.7 billion as of December 31, 2024, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 800 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit fhlb.com.