Depository institutions must properly manage their liquidity to meet daily cash needs, to deal with a decline in the relative size of the industry, and to avoid the possibility of a bank run. Members of the Federal Home Loan Bank System can use the Advance Program to enhance their liquidity and simultaneously limit some of the interest rate risk associated with mortgage lending and mortgage related securities. This study investigates which factors influence the decision to use the Advance program and which factors influence the volume of Advances held by participating thrifts. A logistic regression analysis is used to evaluate which variables significantly impact a thrift's decision to use the FHLB Advance Program. A multiple linear regression model of thrifts with FHLB Advances measures which variables significantly affect the level of Advances held by thrift institutions. Fed Funds Borrowed .and Repo Agreements Sold was found to have a negative impact on the decision of a thrift to have FHLB Advances. Total Assets ( + ), Equity (-), Deposits Less Than $100,000 (-), and Deposits Greater Than $100,000 (-) were all found to have a significant influence on both the decision to have Advances and the volume of Advances held.