# EDGAR Filing Document

**Accession Number:** 0001325878
**File Stem:** 0001325878-25-000235
**Filing Date:** 2025-11
**Character Count:** 293131
**Document Hash:** f63caed7cc1aa51f11bfeb4f7bbae55b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001325878-25-000235.hdr.sgml**: 20251107

**ACCESSION NUMBER**: 0001325878-25-000235

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 92

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251107

**DATE AS OF CHANGE**: 20251107

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federal Home Loan Bank of Topeka
- **CENTRAL INDEX KEY:** 0001325878
- **STANDARD INDUSTRIAL CLASSIFICATION:** FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 480561319
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-52004
- **FILM NUMBER:** 251461406

**BUSINESS ADDRESS:**
- **STREET 1:** 500 SW WANAMAKER ROAD
- **STREET 2:** PO BOX 176
- **CITY:** TOPEKA
- **STATE:** KS
- **ZIP:** 66601-0176
- **BUSINESS PHONE:** 785 233 0507

**MAIL ADDRESS:**
- **STREET 1:** 500 SW WANAMAKER ROAD
- **STREET 2:** PO BOX 176
- **CITY:** TOPEKA
- **STATE:** KS
- **ZIP:** 66601-0176

?xml version='1.0' encoding='ASCII'? fhlbt-20250930

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended September 30, 2025** 

**OR**

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**

**Commission File Number** 000-52004

**FEDERAL HOME LOAN BANK OF TOPEKA**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Federally chartered corporation of the United States** | **48-0561319** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **500 SW Wanamaker Road**<br>**Topeka, KS** | **66606** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **785.233.0507** 

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange<br>on which registered** |
| None | N/A | N/A |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. **☒** Yes **☐** No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). **☒** Yes **☐** No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | **☐** | Accelerated filer | **☐** |
| Non-accelerated filer | **☒** | Smaller reporting company | **☐** |
| | | Emerging growth company | **☐** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. **☐**

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). **☐** Yes **☒** No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
|  | **Shares outstanding as of**<br>**October 31, 2025** |
| Class A Stock, par value $100 per share | 3083244 |
| Class B Stock, par value $100 per share | 21325907 |

---

------

.**FEDERAL HOME LOAN BANK OF TOPEKA**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I** | **<u>[FINANCIAL INFORMATION](#id222dd76542e4686b841c9b9f61dc4fc_22)</u>** | **<u>[5](#id222dd76542e4686b841c9b9f61dc4fc_22)</u>** |
| **Item 1.** | **<u>[Financial Statements](#id222dd76542e4686b841c9b9f61dc4fc_22)</u>** | **<u>[5](#id222dd76542e4686b841c9b9f61dc4fc_22)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Statements of Condition](#id222dd76542e4686b841c9b9f61dc4fc_28)</u>** | **<u>[6](#id222dd76542e4686b841c9b9f61dc4fc_28)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Statements of Income](#id222dd76542e4686b841c9b9f61dc4fc_34)</u>** | **<u>[8](#id222dd76542e4686b841c9b9f61dc4fc_34)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Statements of Comprehensive Income](#id222dd76542e4686b841c9b9f61dc4fc_37)</u>** | **<u>[10](#id222dd76542e4686b841c9b9f61dc4fc_37)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Statements of Capital](#id222dd76542e4686b841c9b9f61dc4fc_43)</u>** | **<u>[12](#id222dd76542e4686b841c9b9f61dc4fc_43)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Statements of Cash Flows](#id222dd76542e4686b841c9b9f61dc4fc_46)</u>** | **<u>[13](#id222dd76542e4686b841c9b9f61dc4fc_46)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Notes to Financial Statements](#id222dd76542e4686b841c9b9f61dc4fc_49)</u>** | **<u>[15](#id222dd76542e4686b841c9b9f61dc4fc_49)</u>** |
| **Item 2.** | **<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#id222dd76542e4686b841c9b9f61dc4fc_268)</u>** | **<u>[46](#id222dd76542e4686b841c9b9f61dc4fc_268)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Executive Level Overview](#id222dd76542e4686b841c9b9f61dc4fc_280)</u>** | **<u>[48](#id222dd76542e4686b841c9b9f61dc4fc_280)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Financial Market Trends](#id222dd76542e4686b841c9b9f61dc4fc_289)</u>** | **<u>[48](#id222dd76542e4686b841c9b9f61dc4fc_289)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Critical Accounting Policies and Estimates](#id222dd76542e4686b841c9b9f61dc4fc_292)</u>** | **<u>[49](#id222dd76542e4686b841c9b9f61dc4fc_292)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Results of Operations](#id222dd76542e4686b841c9b9f61dc4fc_301)</u>** | **<u>[50](#id222dd76542e4686b841c9b9f61dc4fc_301)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Financial Condition](#id222dd76542e4686b841c9b9f61dc4fc_355)</u>** | **<u>[61](#id222dd76542e4686b841c9b9f61dc4fc_355)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Liquidity and Capital Resources](#id222dd76542e4686b841c9b9f61dc4fc_433)</u>** | **<u>[74](#id222dd76542e4686b841c9b9f61dc4fc_436)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Risk Management](#id222dd76542e4686b841c9b9f61dc4fc_475)</u>** | **<u>[76](#id222dd76542e4686b841c9b9f61dc4fc_475)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Recently Issued Accounting Standards](#id222dd76542e4686b841c9b9f61dc4fc_496)</u>** | **<u>[77](#id222dd76542e4686b841c9b9f61dc4fc_496)</u>** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>[Legislative and Regulatory Developments](#id222dd76542e4686b841c9b9f61dc4fc_499)</u>** | **<u>[77](#id222dd76542e4686b841c9b9f61dc4fc_499)</u>** |
| **Item 3.** | **<u>[Quantitative and Qualitative Disclosures About Market Risk](#id222dd76542e4686b841c9b9f61dc4fc_502)</u>** | **<u>[77](#id222dd76542e4686b841c9b9f61dc4fc_502)</u>** |
| **Item 4.** | **<u>[Controls and Procedures](#id222dd76542e4686b841c9b9f61dc4fc_559)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_562)</u>** |
| **Part II** | **<u>[OTHER INFORMATION](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** |
| **Item 1.** | **<u>[Legal Proceedings](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** |
| **Item 1A.** | **<u>[Risk Factors](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** |
| **Item 2.** | **<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_598)</u>** |
| **Item 3.** | **<u>[Defaults Upon Senior Securities](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_598)</u>** |
| **Item 4.** | **<u>[Mine Safety Disclosures](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_598)</u>** |
| **Item 5.** | **<u>[Other Information](#id222dd76542e4686b841c9b9f61dc4fc_595)</u>** | **<u>[82](#id222dd76542e4686b841c9b9f61dc4fc_598)</u>** |
| **Item 6.** | **<u>[Exhibits](#id222dd76542e4686b841c9b9f61dc4fc_607)</u>** | **<u>[83](#id222dd76542e4686b841c9b9f61dc4fc_607)</u>** |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_10)</u>**

**Important Notice about Information in this Quarterly Report**

In this quarterly report, unless the context suggests otherwise, references to "FHLBank," "FHLBank Topeka," "we," "us" and "our" mean Federal Home Loan Bank of Topeka, and "FHLBanks" mean all Federal Home Loan Banks, including FHLBank Topeka.

The information contained in this quarterly report is accurate only as of the date of this quarterly report and as of the dates specified herein.

The product and service names used in this quarterly report are the property of FHLBank, and in some cases, other FHLBanks. Where the context suggests otherwise, the products, services and company names mentioned in this quarterly report are the property of their respective owners.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

With the exception of historical information, certain statements contained or incorporated by reference in this Form 10-Q may contain forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), such as those pertaining to FHLBank's objectives, projections, estimates or future predictions of FHLBank's operations. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of actual events. There is no assurance the events or circumstances reflected in the forward-looking statements will occur. These statements may be identified by the use of forward-looking terminology such as "anticipates," "believes," "may," "is likely," "could," "estimate," "expect," "will," "intend," "probable," "project," "should," or their negatives or other variations of these terms.

Forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. These forward-looking statements represent FHLBank's intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Many of the factors that will determine these items are beyond FHLBank's ability to control or predict. For further discussion of these factors see "Summary Risk Factors" below and Item 1A – Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024, incorporated by reference herein.

You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to FHLBank or any person acting on FHLBank's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by law, FHLBank does not undertake any obligation to release publicly any revisions to its forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.

**SUMMARY RISK FACTORS**

FHLBank cautions that by their nature forward-looking statements involve varying degrees of risks or uncertainties and that actual results may differ materially from those expressed in any forward-looking statements as a result of such risks and uncertainties. You should carefully review and consider the full discussion of our risk factors in Item 1A – Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024, incorporated by reference herein. If any of these risks occur, our business, financial condition or results of operations could be materially and adversely affected. Principal risk factors relating to FHLBank's business include, but are not limited to:

• Changes in the general economy;

• Political events, including legislative, regulatory, judicial, or other developments that affect FHLBank, its members, counterparties or investors in the consolidated obligations of the FHLBanks, such as any government-sponsored enterprise (GSE) reforms;

• Natural disasters, including those related to climate change, severe weather, public health crises, acts of war or terrorism or other external events;

• Climate change and responses to climate change;

• Governmental responses to an economic downturn, recession, inflation or other macro-level events or conditions;

• The uncertain, complex body of laws and regulations applicable to the FHLBanks;

• Compliance with anti-money laundering statutes and regulations;

• Competition from alternative loan and funding providers;

• Membership changes, including changes resulting from member creditworthiness, member failures or mergers, changes due to member eligibility or housing mission focus, or changes in the principal place of business of members;

• A high concentration of advances and capital with a few members;

• Changes in credit ratings of FHLBank Topeka, the other FHLBanks and the U.S. government;

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_10)</u>**

• Regulations relating to privacy, information security and data protection;

• Joint and several liability of all or a portion of the consolidated obligations for which one or more of the other FHLBanks are the primary obligors;

• Declines in U.S. home prices or weaknesses in activity in the U.S. housing and mortgage markets undermining the need for wholesale funding, thus impairing the volume and quality of mortgage loans originated and sold by members;

• Defaults by, and the soundness of financial institutions, including clearinghouses, FHLBank members, non-member borrowers, counterparties and the other FHLBanks and their members, non-member borrowers and counterparties;

• Changes in the fair value and economic value of pledged collateral securing advances or other extensions of credit to FHLBank members or non-member borrowers or collateral pledged by reverse repurchase and derivative counterparties;

• Interruptions in FHLBank's access to the capital markets;

• Changes and volatility in interest rates and indices and FHLBank's ability to manage interest rate risk;

• The ability to enter into effective derivative instruments on acceptable terms;

• FHLBank's ability to meet obligations as they come due or meet the credit and liquidity needs of our members in a timely and cost-effective manner;

• An increase in required Affordable Housing Program (AHP) contributions;

• FHLBank's ability to declare dividends or to pay dividends at rates consistent with past practices;

• The lack of a public market and restrictions on transferring our capital stock and associated illiquidity;

• Volatile market conditions impairing the ability of FHLBank's financial models to produce reliable results;

• Reliance on counterparties and third-parties to provide accurate and complete information;

• Potential costs and effects of litigation, regulatory actions, investigations or similar matters, or adverse facts and developments related thereto;

• The ability of FHLBank to keep pace with technological changes and innovation such as artificial intelligence (AI), and the ability to develop and support technology and information systems;

• Cybersecurity threats, cybersecurity risk management and FHLBank's ability to respond to cybersecurity incidents;

• Judgments, assumptions and estimates in the preparation of our financial statements;

• Effectiveness of FHLBank's risk management framework in mitigating risks of losses;

• Effectiveness of FHLBank's internal control over financial reporting to report accurate and timely financial results;

• Employee error and member, employee and third-party misconduct;

• Fraudulent activity;

• Third-party service providers fail to provide services, terminate their services or fail to comply with banking regulations;

• The ability of FHLBank to attract, onboard and retain skilled individuals, including qualified executive officers; and

• Reliance on FHLBank Chicago as Mortgage Partnership Finance<sup>®</sup> (MPF<sup>®</sup>) Program Provider. "Mortgage Partnership Finance," "MPF," "MPF Xtra," and "MPF Direct" are registered trademarks of FHLBank Chicago.

**PART I**

**Item 1: Financial Statements**

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | |
|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | |
| **STATEMENTS OF CONDITION - Unaudited** | | |
| (In thousands, except par value) |  |  |
|  | **09/30/2025** | **12/31/2024** |
| **ASSETS** |  |  |
| Cash and due from banks | $27455 | $25575 |
| Interest-bearing deposits | 2310963 | 2142423 |
| Securities purchased under agreements to resell (Note 9) | 3950000 | 5150000 |
| Federal funds sold | 4650000 | 3575000 |
| Investment securities: |  |  |
| &nbsp;&nbsp;Trading securities (Note 3) | 81239 | 439963 |
| &nbsp;&nbsp;Available-for-sale securities, amortized cost of $14,768,637 and $13,197,724 (Note 3) | 14634427 | 13057619 |
| &nbsp;&nbsp;Held-to-maturity securities, fair value of $192,380 and $217,476 (Note 3) | 193081 | 219826 |
| Total investment securities | 14908747 | 13717408 |
| Advances (Note 4) | 44029112 | 41652081 |
| Mortgage loans held for portfolio, net of allowance for credit losses of $3,685 and $4,033 (Note 5) | 9284317 | 8949433 |
| Accrued interest receivable | 256970 | 249199 |
| Derivative assets, net (Notes 6, 9) | 374422 | 357314 |
| Other assets | 80268 | 82547 |
| *TOTAL ASSETS* | $79872254 | $75900980 |
| **LIABILITIES** |  |  |
| Deposits (Note 7) | $1046036 | $989021 |
| Consolidated obligations, net: |  |  |
| &nbsp;&nbsp;Discount notes (Note 8) | 18135569 | 14417047 |
| &nbsp;&nbsp;Bonds (Note 8) | 55970957 | 55864506 |
| Total consolidated obligations, net | 74106526 | 70281553 |
| Mandatorily redeemable capital stock (Note 10) | 5923 | 3225 |
| Accrued interest payable | 388586 | 347843 |
| Affordable Housing Program payable  | 107500 | 102494 |
| Derivative liabilities, net (Notes 6, 9) | 2560 | 6131 |
| Other liabilities | 67852 | 70984 |
| *TOTAL LIABILITIES* | 75724983 | 71801251 |
| Commitments and contingencies (Note 13) |  |  |

---

*The accompanying notes are an integral part of these financial statements.*

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | |
|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | |
| **STATEMENTS OF CONDITION - Unaudited** | | |
| (In thousands, except par value) |  |  |
|  | **09/30/2025** | **12/31/2024** |
| **CAPITAL** |  |  |
| Capital stock outstanding - putable: |  |  |
| &nbsp;&nbsp;Class A ($100 par value; 2,617 and 4,649 shares issued and outstanding) (Note 10) | $261655 | $464904 |
| &nbsp;&nbsp;Class B ($100 par value; 22,938 and 21,667 shares issued and outstanding) (Note 10) | 2293709 | 2166701 |
| Total capital stock | 2555364 | 2631605 |
| Retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;Unrestricted | 1169392 | 1109059 |
| &nbsp;&nbsp;Restricted | 556629 | 499027 |
| Total retained earnings | 1726021 | 1608086 |
| Accumulated other comprehensive income (loss) (Note 11) | (134114) | (139962) |
| *TOTAL CAPITAL* | 4147271 | 4099729 |
| *TOTAL LIABILITIES AND CAPITAL* | $79872254 | $75900980 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | | | |
| **STATEMENTS OF INCOME - Unaudited** | | | | |
| (In thousands) |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| **INTEREST INCOME:** |  |  |  |  |
| Advances | $550890 | 650770 | $1607592 | $1877261 |
| Interest-bearing deposits | 31405 | 37651 | 91522 | 111895 |
| Securities purchased under agreements to resell | 37835 | 40217 | 105257 | 120583 |
| Federal funds sold | 51438 | 69652 | 151842 | 180720 |
| Trading securities | 732 | 5272 | 5912 | 18182 |
| Available-for-sale securities | 178687 | 202409 | 536026 | 586368 |
| Held-to-maturity securities | 2494 | 3508 | 7806 | 10814 |
| Mortgage loans held for portfolio | 94426 | 83271 | 274123 | 236084 |
| Other | 175 | 178 | 555 | 534 |
| Total interest income | 948082 | 1092928 | 2780635 | 3142441 |
| **INTEREST EXPENSE:** |  |  |  |  |
| Deposits | 10009 | 10811 | 27907 | 30687 |
| Consolidated obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | 143296 | 230295 | 374585 | 691610 |
| &nbsp;&nbsp;&nbsp;Bonds | 662625 | 716141 | 1972976 | 2009680 |
| Mandatorily redeemable capital stock | 121 | 69 | 250 | 124 |
| Other | 317 | 301 | 960 | 930 |
| Total interest expense | 816368 | 957617 | 2376678 | 2733031 |
| *NET INTEREST INCOME* | 131714 | 135311 | 403957 | 409410 |
| Provision (reversal) for credit losses on mortgage loans | (850) | (78) | 10 | (1141) |
| *NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL)* | 132564 | 135389 | 403947 | 410551 |
| **OTHER INCOME (LOSS):** |  |  |  |  |
| Net gains (losses) on trading securities | 911 | 10264 | 5278 | 15993 |
| Net gains (losses) on derivatives | 433 | (10404) | (4591) | (198) |
| Standby bond purchase agreement commitment fees | 829 | 737 | 2356 | 2225 |
| Letters of credit fees | 2025 | 2273 | 6238 | 6934 |
| Other | 779 | 687 | 2032 | 1780 |
| Total other income (loss) | 4977 | 3557 | 11313 | 26734 |

---

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | | | |
| **STATEMENTS OF INCOME - Unaudited** | | | | |
| (In thousands) |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| **OTHER EXPENSES:** |  |  |  |  |
| Compensation and benefits | $13452 | $13374 | $39166 | $38229 |
| Other operating | 7079 | 7801 | 21083 | 21329 |
| Federal Housing Finance Agency | 1804 | 1369 | 5412 | 4108 |
| Office of Finance | 1239 | 1263 | 3679 | 3634 |
| Mortgage loans transaction service fees | 1811 | 1754 | 5356 | 5133 |
| Voluntary housing and community investment program contributions | 7364 | 720 | 19374 | 4639 |
| Other | 446 | 322 | 1153 | 849 |
| Total other expenses | 33195 | 26603 | 95223 | 77921 |
| *INCOME BEFORE ASSESSMENTS* | 104346 | 112343 | 320037 | 359364 |
| Affordable Housing Program | 10447 | 11241 | 32029 | 35949 |
| *NET INCOME* | $93899 | $101102 | $288008 | $323415 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | | |
| **STATEMENTS OF COMPREHENSIVE INCOME - Unaudited** | | | | |
| (In thousands) |  |  |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| Net income | $93899 | $101102 | $288008 | $323415 |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on available-for-sale securities | 47038 | 5347 | 5895 | 10408 |
| &nbsp;&nbsp;Defined benefit pension plan | (1) |  | (47) | 169 |
| Total other comprehensive income (loss) | 47037 | 5347 | 5848 | 10577 |
| *TOTAL COMPREHENSIVE INCOME (LOSS)* | $140936 | $106449 | $293856 | $333992 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | | | | | | | |
| **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | | | | | | | |
| (In thousands) | (In thousands) | (In thousands) | (In thousands) | (In thousands) |  |  |  |  |  |  |  |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Accumulated** | **Total Capital** |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Other** | **Total Capital** |
|  | **Class A** | **Class A** | **Class B** | **Class B** | **Total** | **Total** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Comprehensive** | **Total Capital** |
|  | **Shares** | **Par Value** | **Shares** | **Par Value** | **Shares** | **Par Value** | **Unrestricted** | **Restricted** | **Total** | **Income (Loss)** | **Total Capital** |
| **Balance at June 30, 2024** | 3186 | $318601 | 24174 | $2417398 | 27360 | $2735999 | $1055506 | $456945 | $1512451 | $(113741) | $4134709 |
| Comprehensive income |  |  |  |  |  |  | 80881 | 20221 | 101102 | 5347 | 106449 |
| Proceeds from issuance of capital stock | 7 | 726 | 4669 | 466840 | 4676 | 467566 |  |  |  |  | 467566 |
| Repurchase/redemption of capital stock | (5206) | (520626) | (433) | (43283) | (5639) | (563909) |  |  |  |  | (563909) |
| Net reclassification of shares to mandatorily redeemable capital stock | (724) | (72425) | (5) | (497) | (729) | (72922) |  |  |  |  | (72922) |
| Net transfer of shares between Class A and Class B | 6578 | 657823 | (6578) | (657823) |  |  |  |  |  |  |  |
| Dividends on capital stock (Class A - 4.7%, Class B - 9.5%): |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash payment |  |  |  |  |  |  | (70) |  | (70) |  | (70) |
| &nbsp;&nbsp;&nbsp;Stock issued |  |  | 585 | 58547 | 585 | 58547 | (58547) |  | (58547) |  |  |
| **Balance at September 30, 2024** | 3841 | $384099 | 22412 | $2241182 | $26253 | 2625281 | $1077770 | $477166 | $1554936 | $(108394) | $4071823 |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Accumulated** | **Total Capital** |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Other** | **Total Capital** |
|  | **Class A** | **Class A** | **Class B** | **Class B** | **Total** | **Total** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Comprehensive** | **Total Capital** |
|  | **Shares** | **Par Value** | **Shares** | **Par Value** | **Shares** | **Par Value** | **Unrestricted** | **Restricted** | **Total** | **Income (Loss)** | **Total Capital** |
| **Balance at June 30, 2025** | 2453 | $245304 | 23417 | $2341760 | 25870 | $2587064 | $1151467 | $537849 | $1689316 | $(181151) | $4095229 |
| Comprehensive income |  |  |  |  |  |  | 75119 | 18780 | 93899 | 47037 | 140936 |
| Proceeds from issuance of capital stock |  |  | 6838 | 683785 | 6838 | 683785 |  |  |  |  | 683785 |
| Repurchase/redemption of capital stock | (6340) | (634029) | (291) | (29167) | (6631) | (663196) |  |  |  |  | (663196) |
| Net reclassification of shares to mandatorily redeemable capital stock | (1068) | (106792) | (26) | (2623) | (1094) | (109415) |  |  |  |  | (109415) |
| Net transfer of shares between Class A and Class B | 7572 | 757172 | (7572) | (757172) |  |  |  |  |  |  |  |
| Dividends on capital stock (Class A - 4.2%, Class B - 9.3%): |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash payment |  |  |  |  |  |  | (68) |  | (68) |  | (68) |
| &nbsp;&nbsp;&nbsp;Stock issued |  |  | 572 | 57126 | 572 | 57126 | (57126) |  | (57126) |  |  |
| **Balance at September 30, 2025** | 2617 | $261655 | 22938 | $2293709 | 25555 | $2555364 | $1169392 | $556629 | $1726021 | $(134114) | $4147271 |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Putable

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | **FEDERAL HOME LOAN BANK OF TOPEKA** | | | | | | | |
| **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | **STATEMENTS OF CAPITAL - Unaudited** | | | | | | | |
| (In thousands) | (In thousands) | (In thousands) | (In thousands) | (In thousands) |  |  |  |  |  |  |  |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Accumulated** | **Total Capital** |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Other** | **Total Capital** |
|  | **Class A** | **Class A** | **Class B** | **Class B** | **Total** | **Total** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Comprehensive** | **Total Capital** |
|  | **Shares** | **Par Value** | **Shares** | **Par Value** | **Shares** | **Par Value** | **Unrestricted** | **Restricted** | **Total** | **Income (Loss)** | **Total Capital** |
| **Balance at December 31, 2023** | 2789 | $278887 | 23288 | $2328796 | 26077 | $2607683 | $989457 | $412483 | $1401940 | $(118971) | $3890652 |
| Comprehensive income |  |  |  |  |  |  | 258732 | 64683 | 323415 | 10577 | 333992 |
| Proceeds from issuance of capital stock | 11 | 1100 | 14935 | 1493507 | 14946 | 1494607 |  |  |  |  | 1494607 |
| Repurchase/redemption of capital stock | (12257) | (1225728) | (1161) | (116108) | (13418) | (1341836) |  |  |  |  | (1341836) |
| Net reclassification of shares to mandatorily redeemable capital stock | (2959) | (295858) | (95) | (9506) | (3054) | (305364) |  |  |  |  | (305364) |
| Net transfer of shares between Class A and Class B | 16257 | 1625698 | (16257) | (1625698) |  |  |  |  |  |  |  |
| Dividends on capital stock (Class A - 4.7%, Class B - 9.5%): |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash payment |  |  |  |  |  |  | (228) |  | (228) |  | (228) |
| &nbsp;&nbsp;&nbsp;Stock issued |  |  | 1702 | 170191 | 1702 | 170191 | (170191) |  | (170191) |  |  |
| **Balance at September 30, 2024** | 3841 | $384099 | 22412 | $2241182 | 26253 | $2625281 | $1077770 | $477166 | $1554936 | $(108394) | $4071823 |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Accumulated** | **Total Capital** |
|  | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Capital Stock**<sup>1</sup> | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Other** | **Total Capital** |
|  | **Class A** | **Class A** | **Class B** | **Class B** | **Total** | **Total** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Comprehensive** | **Total Capital** |
|  | **Shares** | **Par Value** | **Shares** | **Par Value** | **Shares** | **Par Value** | **Unrestricted** | **Restricted** | **Total** | **Income (Loss)** | **Total Capital** |
| **Balance at December 31, 2024** | 4649 | $464904 | 21667 | $2166701 | 26316 | $2631605 | $1109059 | $499027 | $1608086 | $(139962) | $4099729 |
| Comprehensive income |  |  |  |  |  |  | 230406 | 57602 | 288008 | 5848 | 293856 |
| Proceeds from issuance of capital stock | 6 | 576 | 21119 | 2111929 | 21125 | 2112505 |  |  |  |  | 2112505 |
| Repurchase/redemption of capital stock | (17772) | (1777207) | (1322) | (132247) | (19094) | (1909454) |  |  |  |  | (1909454) |
| Net reclassification of shares to mandatorily redeemable capital stock | (4111) | (411117) | (380) | (38040) | (4491) | (449157) |  |  |  |  | (449157) |
| Net transfer of shares between Class A and Class B | 19845 | 1984499 | (19845) | (1984499) |  |  |  |  |  |  |  |
| Dividends on capital stock (Class A - 4.3%, Class B - 9.3%): |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash payment |  |  |  |  |  |  | (208) |  | (208) |  | (208) |
| &nbsp;&nbsp;&nbsp;Stock issued |  |  | 1699 | 169865 | 1699 | 169865 | (169865) |  | (169865) |  |  |
| **Balance at September 30, 2025** | 2617 | $261655 | 22938 | $2293709 | 25555 | $2555364 | $1169392 | $556629 | $1726021 | $(134114) | $4147271 |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Putable

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | |
|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | |
| **STATEMENTS OF CASH FLOWS - Unaudited** | | |
| (In thousands) |  |  |
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **09/30/2025** | **09/30/2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income | $288008 | $323415 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums and discounts on consolidated obligations, net | (52836) | (48509) |
| &nbsp;&nbsp;&nbsp;&nbsp;Concessions on consolidated obligations | 5255 | 5609 |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums and discounts on investments, net | (37590) | (33475) |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums, discounts and commitment fees on advances, net | (2919) | (2037) |
| &nbsp;&nbsp;&nbsp;&nbsp;Premiums, discounts and deferred loan costs on mortgage loans, net | 9989 | 9649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustments on hedged assets or liabilities | (3607) | (3224) |
| &nbsp;&nbsp;&nbsp;&nbsp;Premises, software and equipment | 2396 | 2468 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (65) |  |
| &nbsp;&nbsp;&nbsp;Provision (reversal) for credit losses on mortgage loans | 10 | (1141) |
| &nbsp;&nbsp;&nbsp;Other adjustments, net | 5753 | 228 |
| &nbsp;&nbsp;&nbsp;Net (gains) losses on trading securities | (5278) | (15993) |
| &nbsp;&nbsp;Net change in derivatives and hedging activities | (640595) | (349026) |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in accrued interest receivable | (7480) | (62094) |
| &nbsp;&nbsp;&nbsp;Change in net accrued interest included in derivative assets | 131922 | 9667 |
| &nbsp;&nbsp;&nbsp;(Increase) decrease in other assets | 1981 | (2606) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accrued interest payable | 40945 | 4355 |
| &nbsp;&nbsp;&nbsp;Change in net accrued interest included in derivative liabilities | 35306 | 7432 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in Affordable Housing Program liability | 5006 | 12047 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in other liabilities | (3097) | (3871) |
| Total adjustments | (514904) | (470521) |
| *NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES* | (226896) | (147106) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Net (increase) decrease in interest-bearing deposits | (101499) | (369272) |
| Net (increase) decrease in securities purchased under resale agreements | 1200000 | 1000000 |
| Net (increase) decrease in Federal funds sold | (1075000) | (4290000) |
| Proceeds from maturities of and principal repayments on trading securities | 364002 | 370755 |
| Proceeds from maturities of and principal repayments on available-for-sale securities | 1090042 | 718167 |
| Purchases of available-for-sale securities | (2344192) | (1838580) |
| Proceeds from maturities of and principal repayments on held-to-maturity securities | 26727 | 31549 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

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| | | |
|:---|:---|:---|
| **FEDERAL HOME LOAN BANK OF TOPEKA** | | |
| **STATEMENTS OF CASH FLOWS - Unaudited** | | |
| (In thousands) |  |  |
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **09/30/2025** | **09/30/2024** |
| Advances repaid | 188327014 | 201080491 |
| Advances originated | (190487429) | (199775810) |
| Principal collected on mortgage loans | 720196 | 622661 |
| Purchases of mortgage loans | (1063346) | (1159639) |
| Net proceeds from sale of foreclosed assets | 280 | 192 |
| Purchases of premises, software and equipment | (2378) | (1572) |
| *NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES* | (3345583) | (3611058) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Net increase (decrease) in deposits | 56407 | 130863 |
| Net proceeds from issuance of consolidated obligations: |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | 441019634 | 462454354 |
| &nbsp;&nbsp;&nbsp;Discount notes transferred from other FHLBanks |  | 610000 |
| &nbsp;&nbsp;&nbsp;Bonds | 60954487 | 53382617 |
| Payments for maturing, retired and transferred consolidated obligations: |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | (437252062) | (465909231) |
| &nbsp;&nbsp;&nbsp;Discount notes transferred to other FHLBanks |  | (610000) |
| &nbsp;&nbsp;&nbsp;Bonds | (60971150) | (46167565) |
| Net interest payments received (paid) for financing derivatives | 10905 | 18884 |
| Proceeds from issuance of capital stock | 2112505 | 1494607 |
| Payments for repurchase/redemption of capital stock | (1909454) | (1341836) |
| Payments for repurchase of mandatorily redeemable capital stock | (446705) | (302500) |
| Cash dividends paid | (208) | (228) |
| *NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES* | 3574359 | 3759965 |
| *NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS* | 1880 | 1801 |
| *CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD* | 25575 | 26062 |
| *CASH AND CASH EQUIVALENTS AT END OF PERIOD* | $27455 | $27863 |
| **Supplemental disclosures:** |  |  |
| Interest paid | $1582689 | $1299430 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**FEDERAL HOME LOAN BANK OF TOPEKA**

**Notes to Financial Statements - Unaudited**

**September 30, 2025**

**<u>NOTE 1 – BASIS OF PRESENTATION</u>**

*Basis of Presentation:* The accompanying interim financial statements of FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. In the opinion of management, the financial statements contain all adjustments necessary to fairly present FHLBank's financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period.

FHLBank's significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2024. The interim financial statements presented herein should be read in conjunction with FHLBank's audited financial statements and notes thereto, which are included in FHLBank's annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 13, 2025 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K.

*Use of Estimates*: The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates.

**<u>NOTE 2 – RECENTLY ISSUED ACCOUNTING STANDARDS AND INTERPRETATIONS AND CHANGES IN AND ADOPTIONS OF ACCOUNTING PRINCIPLES</u>**

*Disaggregation of Income Statement Expenses (ASU 2024-03)*. In November 2024, the Financial Accounting Standards Board (FASB) issued amendments to require disclosure, in the notes to financial statements, of specified information about certain costs and expenses on an interim and annual basis. The Accounting Standards Update (ASU) is effective for FHLBank for the annual period ended December 31, 2027 and will be effective for interim periods beginning January 1, 2028. Early adoption is permitted. The adoption of this guidance may result in additional disclosures but will not impact FHLBank's financial condition, results of operations, or cash flows.

*Intangibles - Goodwill and Other - Internal-Use Software (ASU 2025-06).* In September 2025, FASB issued amendments to remove all references to prescriptive and sequential software development stages throughout Subtopic 350-40 and to clarify the threshold entities apply to begin capitalizing costs. Under the new standard, cost capitalization should only commence when an entity has committed to funding a software project and it is probable the project will be completed and the software will be used for its intended function. The ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. While FHLBank is currently evaluating the impact of adopting this pronouncement, the adoption is not expected to have a material impact of FHLBank's financial condition, results of operations, or cash flows.

**<u>NOTE 3 – INVESTMENTS</u>**

FHLBank's investment portfolio consists of interest-bearing deposits, securities purchased under agreements to resell, Federal funds sold, and debt securities.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold:* FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of September 30, 2025, approximately 22 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. Federal Housing Finance Agency (FHFA) regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of September 30, 2025 and December 31, 2024, all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of September 30, 2025 and December 31, 2024. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $2,958,000 and $529,000, respectively, as of September 30, 2025, and $2,938,000 and $431,000, respectively, as of December 31, 2024.

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions requiring the counterparty pledge additional securities as collateral or remit an equivalent amount of cash sufficient to comply with the required collateral value). Based upon the collateral held as security and collateral maintenance provisions with its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of September 30, 2025 and December 31, 2024. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $463,000 and $638,000 as of September 30, 2025 and December 31, 2024, respectively.

*Debt Securities:* FHLBank invests in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. FHLBank is prohibited by FHFA regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities, but FHLBank is not required to divest instruments that experience credit deterioration after their purchase.

FHLBank's debt securities include the following major security types, which are based on the issuer and the risk characteristics of the security:

▪ U.S. Treasury obligations - sovereign debt of the United States;

▪ GSE debentures - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government;

▪ State or local housing agency obligations - municipal bonds issued by housing finance agencies;

▪ U.S. obligation mortgage-backed securities (MBS) - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and

▪ GSE MBS - single-family and multifamily MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac).

<u>Trading Securities:</u> Trading securities by major security type as of September 30, 2025 and December 31, 2024 are summarized in Table 3.1 (in thousands):

**<u>Table 3.1</u>**

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| | | |
|:---|:---|:---|
| | **Fair Value** | **Fair Value** |
| | **09/30/2025** | **12/31/2024** |
| Non-mortgage-backed securities: |  |  |
| &nbsp;&nbsp;GSE debentures | $— | $17884 |
| *Non-mortgage-backed securities* |  | 17884 |
| Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;GSE MBS | 81239 | 422079 |
| *Mortgage-backed securities* | 81239 | 422079 |
| *TOTAL* | $81239 | $439963 |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Net gains (losses) on trading securities during the three and nine months ended September 30, 2025 and 2024 are shown in Table 3.2 (in thousands):

**<u>Table 3.2</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| Net gains (losses) on trading securities held as of September 30, 2025 | $396 | $2046 | $1586 | $1838 |
| Net gains (losses) on trading securities sold or matured prior to September 30, 2025 | 515 | 8218 | 3692 | 14155 |
| *NET GAINS (LOSSES) ON TRADING SECURITIES* | $911 | $10264 | $5278 | $15993 |

---

<u>Available-for-sale Securities:</u> Available-for-sale securities by major security type as of September 30, 2025 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $42,755,000 as of September 30, 2025.

**<u>Table 3.3</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Amortized<br>Cost** | **Gross<br>Unrecognized<br>Gains** | **Gross<br>Unrecognized<br>Losses** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations | $3210660 | $290 | $(85809) | $3125141 |
| &nbsp;&nbsp;State or local housing agency obligations  | 57350 | 548 |  | 57898 |
| *Non-mortgage-backed securities* | 3268010 | 838 | (85809) | 3183039 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS | 64824 |  | (722) | 64102 |
| &nbsp;&nbsp;GSE MBS | 11435803 | 31960 | (80477) | 11387286 |
| *Mortgage-backed securities* | 11500627 | 31960 | (81199) | 11451388 |
| *TOTAL* | $14768637 | $32798 | $(167008) | $14634427 |

---

Available-for-sale securities by major security type as of December 31, 2024 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $35,778,000 as of December 31, 2024.

**<u>Table 3.4</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Amortized<br>Cost** | **Gross<br>Unrecognized<br>Gains** | **Gross<br>Unrecognized<br>Losses** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations | $3313012 | $6 | $(75795) | $3237223 |
| &nbsp;&nbsp;State or local housing agency obligations  | 24465 |  | (286) | 24179 |
| *Non-mortgage-backed securities* | 3337477 | 6 | (76081) | 3261402 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS | 78046 |  | (783) | 77263 |
| &nbsp;&nbsp;GSE MBS | 9782201 | 31461 | (94708) | 9718954 |
| *Mortgage-backed securities* | 9860247 | 31461 | (95491) | 9796217 |
| *TOTAL* | $13197724 | $31467 | $(171572) | $13057619 |

---

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 3.5 summarizes the available-for-sale securities with gross unrealized losses as of September 30, 2025 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

**<u>Table 3.5</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| | **Fair<br>Value** | **Gross Unrealized Losses** | **Fair<br>Value** | **Gross Unrealized Losses** | **Fair<br>Value** | **Gross Unrealized Losses** |
| Non-mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations | $233212 | $(166) | $2403336 | $(85643) | $2636548 | $(85809) |
| *Non-mortgage-backed securities* | 233212 | (166) | 2403336 | (85643) | 2636548 | (85809) |
| Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS |  |  | 64102 | (722) | 64102 | (722) |
| &nbsp;&nbsp;GSE MBS | 3211323 | (14046) | 3588930 | (66431) | 6800253 | (80477) |
| *Mortgage-backed securities* | 3211323 | (14046) | 3653032 | (67153) | 6864355 | (81199) |
| *TOTAL* | $3444535 | $(14212) | $6056368 | $(152796) | $9500903 | $(167008) |

---

Table 3.6 summarizes the available-for-sale securities with gross unrealized losses as of December 31, 2024 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

**<u>Table 3.6</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| | **Fair<br>Value** | **Gross Unrealized Losses** | **Fair<br>Value** | **Gross Unrealized Losses** | **Fair<br>Value** | **Gross Unrealized Losses** |
| Non-mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations | $244268 | $(1144) | $2754861 | $(74652) | $2999129 | $(75796) |
| &nbsp;&nbsp;State or local housing agency obligations | 24179 | (286) |  |  | 24179 | (286) |
| *Non-mortgage-backed securities* | 268447 | (1430) | 2754861 | (74652) | 3023308 | (76082) |
| Mortgage-backed securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS |  |  | 77263 | (783) | 77263 | (783) |
| &nbsp;&nbsp;GSE MBS | 2880112 | (14624) | 3638445 | (80083) | 6518557 | (94707) |
| *Mortgage-backed securities* | 2880112 | (14624) | 3715708 | (80866) | 6595820 | (95490) |
| *TOTAL* | $3148559 | $(16054) | $6470569 | $(155518) | $9619128 | $(171572) |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

The amortized cost and fair values of available-for-sale securities by contractual maturity as of September 30, 2025 and December 31, 2024 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

**<u>Table 3.7</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| | **Amortized<br>Cost** | **Fair<br>Value** | **Amortized<br>Cost** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| Due in one year or less | $1621372 | $1571002 | $457610 | $440483 |
| Due after one year through five years | 1589288 | 1554139 | 2855402 | 2796740 |
| Due after five years through ten years | 33955 | 34250 |  |  |
| Due after ten years | 23395 | 23648 | 24465 | 24179 |
| *Non-mortgage-backed securities* | 3268010 | 3183039 | 3337477 | 3261402 |
| *Mortgage-backed securities* | 11500627 | 11451388 | 9860247 | 9796217 |
| *TOTAL* | $14768637 | $14634427 | $13197724 | $13057619 |

---

<u>Held-to-maturity Securities:</u> Held-to-maturity securities by major security type as of September 30, 2025 are summarized in Table 3.8 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $404,000 as of September 30, 2025.

**<u>Table 3.8</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Amortized<br>Cost** | **Gross<br>Unrecognized<br>Gains** | **Gross<br>Unrecognized<br>Losses** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;State or local housing agency obligations | $29755 | $— | $(333) | $29422 |
| *Non-mortgage-backed securities* | 29755 |  | (333) | 29422 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;GSE MBS | 163326 | 831 | (1199) | 162958 |
| *Mortgage-backed securities* | 163326 | 831 | (1199) | 162958 |
| *TOTAL* | $193081 | $831 | $(1532) | $192380 |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Held-to-maturity securities by major security type as of December 31, 2024 are summarized in Table 3.9 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $476,000 as of December 31, 2024.

**<u>Table 3.9</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Amortized<br>Cost** | **Gross<br>Unrecognized<br>Gains** | **Gross<br>Unrecognized<br>Losses** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;State or local housing agency obligations | $30895 | $— | $(445) | $30450 |
| *Non-mortgage-backed securities* | 30895 |  | (445) | 30450 |
| Mortgage-backed securities: |  |  |  |  |
| &nbsp;&nbsp;GSE MBS | 188931 | 359 | (2264) | 187026 |
| *Mortgage-backed securities* | 188931 | 359 | (2264) | 187026 |
| *TOTAL* | $219826 | $359 | $(2709) | $217476 |

---

The amortized cost and fair values of held-to-maturity securities by contractual maturity as of September 30, 2025 and December 31, 2024 are shown in Table 3.10 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

**<u>Table 3.10</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| | **Amortized<br>Cost** | **Fair<br>Value** | **Amortized<br>Cost** | **Fair<br>Value** |
| Non-mortgage-backed securities: |  |  |  |  |
| Due in one year or less | $— | $— | $— | $— |
| Due after one year through five years |  |  |  |  |
| Due after five years through ten years | 29755 | 29422 | 30895 | 30450 |
| Due after ten years |  |  |  |  |
| *Non-mortgage-backed securities* | 29755 | 29422 | 30895 | 30450 |
| *Mortgage-backed securities* | 163326 | 162958 | 188931 | 187026 |
| *TOTAL* | $193081 | $192380 | $219826 | $217476 |

---

<u>Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities:</u> FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. During the three- and nine-months ended September 30, 2025 and 2024, FHLBank did not recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments.

FHLBank considers the unrealized losses on certain available-for-sale securities in unrealized loss positions to be temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis.

As of September 30, 2025, FHLBank's held-to-maturity and available-for-sale securities were all highly rated and/or had short remaining terms to maturity. In the case of U.S. obligations, each obligation carries an explicit government guarantee. In the case of GSE debentures and MBS, FHLBank purchases each security under an assumption that the issuers' obligation to pay principal and interest on those securities will be honored. As a result, FHLBank expects to receive all cash flows contractually due, and no allowance for credit losses were recorded on any U.S. obligation or GSE debenture or MBS as of September 30, 2025 and December 31, 2024.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>NOTE 4 – ADVANCES</u>**

*General Terms:* FHLBank offers fixed-rate and adjustable-rate advance products with different maturities, interest rates, payment characteristics and optionality. As of September 30, 2025 and December 31, 2024, FHLBank had advances outstanding at interest rates ranging from 0.51 percent to 7.20 percent and 0.44 percent to 7.20 percent, respectively. Table 4.1 presents advances summarized by redemption term as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands). The redemption term represents the period in which principal amounts are contractually due. Carrying amounts exclude accrued interest receivable of $148,974,000 and $152,111,000 as of September 30, 2025 and December 31, 2024, respectively.

**<u>Table 4.1</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
|<br>**Redemption Term** | **Amount** | **Weighted Average Interest Rate** | **Amount** | **Weighted Average Interest Rate** |
| Due in one year or less | $27212069 | 4.21% | $25160148 | 4.43% |
| Due after one year through two years | 5439876 | 4.00 | 4724245 | 4.05 |
| Due after two years through three years | 4565684 | 4.25 | 4530096 | 4.07 |
| Due after three years through four years | 2772165 | 3.86 | 3037483 | 4.12 |
| Due after four years through five years | 2609734 | 3.72 | 2663624 | 3.87 |
| Thereafter | 1436578 | 3.44 | 1760096 | 3.25 |
| *Total par value* | 44036106 | 4.11% | 41875692 | 4.24% |
| Discounts | (10094) |  | (7557) |  |
| Hedging adjustments | 3100 |  | (216054) |  |
| *TOTAL* | $44029112 |  | $41652081 |  |

---

FHLBank offers advances that may be prepaid without prepayment or termination fees on predetermined exercise dates (call dates) prior to the stated advance maturity (callable advances). In exchange for receiving the right to call the advance on a predetermined call schedule, the borrower may pay a higher rate for the advance relative to an equivalent maturity, non-callable advance. The borrower generally exercises its call options on these advances when interest rates decline (fixed-rate advances) or spreads change (adjustable-rate advances). FHLBank also offers fixed-rate advances that include a put option held by FHLBank (putable advances). On the date FHLBank exercises its put option, the borrower has the option to prepay the advance in full without a fee or roll into another advance product. A putable advance carries a lower interest rate than a comparable-maturity fixed-rate advance without the put feature. FHLBank would generally exercise its put option when interest rates increase. Other advances are prepayable with a prepayment fee that makes FHLBank economically indifferent to the prepayment.

Table 4.2 presents advances summarized by redemption term or next call date and by redemption term or next put date as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 4.2</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Redemption Term<br>or Next Call Date** | **Redemption Term<br>or Next Call Date** | **Redemption Term**<br>**or Next Put Date** | **Redemption Term**<br>**or Next Put Date** |
|<br>**Redemption Term** | **09/30/2025** | **12/31/2024** | **09/30/2025** | **12/31/2024** |
| Due in one year or less | $28120899 | $26134800 | $29840969 | $27391348 |
| Due after one year through two years | 5099493 | 4375566 | 5648376 | 4901745 |
| Due after two years through three years | 4101703 | 4126318 | 4245484 | 4626596 |
| Due after three years through four years | 2765227 | 2919014 | 1904165 | 2204483 |
| Due after four years through five years | 2564030 | 2642197 | 1985234 | 1945624 |
| Thereafter | 1384754 | 1677797 | 411878 | 805896 |
| *TOTAL PAR VALUE* | $44036106 | $41875692 | $44036106 | $41875692 |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Interest Rate Payment Terms*: Table 4.3 details additional interest rate payment and redemption terms for advances as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 4.3</u>**

---

| | | |
|:---|:---|:---|
| **Redemption Term** | **09/30/2025** | **12/31/2024** |
| Fixed-rate: |  |  |
| Due in one year or less | $14513119 | $15388152 |
| Due after one year through three years | 7180100 | 6714381 |
| Due after three years through five years | 5201799 | 5123107 |
| Due after five years through fifteen years | 1406545 | 1695725 |
| Due after fifteen years | 17558 | 18795 |
| *Total fixed-rate* | 28319121 | 28940160 |
| Adjustable-rate: |  |  |
| Due in one year or less | 12698950 | 9771997 |
| Due after one year through three years | 2825460 | 2539960 |
| Due after three years through five years | 180100 | 578000 |
| Due after five years through fifteen years | 12475 | 44075 |
| Due after fifteen years |  | 1500 |
| *Total adjustable-rate* | 15716985 | 12935532 |
| *TOTAL PAR VALUE* | $44036106 | $41875692 |

---

*Credit Risk Exposure and Security Terms:* FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the payment status as well as the types and level of collateral to be the primary indicators of credit quality on advances. As of September 30, 2025 and December 31, 2024, FHLBank had rights to collateral on a borrower-by-borrower basis with an estimated value greater than its outstanding advances.

FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. As of September 30, 2025 and December 31, 2024, no advances were past due, on nonaccrual status, or considered impaired.

Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no losses are expected on advances as of September 30, 2025 and December 31, 2024, and therefore no allowance for credit losses on advances was recorded.

**<u>NOTE 5 – MORTGAGE LOANS</u>**

Mortgage loans held for portfolio consist of loans obtained through the MPF Program and are either conventional mortgage loans or government-guaranteed or government-insured mortgage loans. Under the MPF Program, FHLBank purchases single-family mortgage loans that are originated or acquired by participating financial institutions (PFI). These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Mortgage Loans Held for Portfolio:* Table 5.1 presents information as of September 30, 2025 and December 31, 2024 on mortgage loans held for portfolio (in thousands). Carrying amounts exclude accrued interest receivable of $60,108,000 and $54,997,000 as of September 30, 2025 and December 31, 2024, respectively.

**<u>Table 5.1</u>**

---

| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| *Real estate:* |  |  |
| Fixed-rate, medium-term<sup>1</sup>, single-family mortgages | $855147 | $928996 |
| Fixed-rate, long-term, single-family mortgages | 8359582 | 7948931 |
| *Total unpaid principal balance* | 9214729 | 8877927 |
| Premiums | 96520 | 95760 |
| Discounts | (11946) | (6904) |
| Deferred loan costs, net | 29 | 34 |
| Hedging adjustments | (11330) | (13351) |
| *Total before allowance for credit losses on mortgage loans* | 9288002 | 8953466 |
| Allowance for credit losses on mortgage loans | (3685) | (4033) |
| *MORTGAGE LOANS HELD FOR PORTFOLIO, NET* | $9284317 | $8949433 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Medium-term defined as a term of 15 years or less at origination.

 

Table 5.2 presents information as of September 30, 2025 and December 31, 2024 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands):

**<u>Table 5.2</u>**

---

| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Conventional loans | $8892799 | $8553518 |
| Government-guaranteed or government-insured loans | 321930 | 324409 |
| *TOTAL UNPAID PRINCIPAL BALANCE* | $9214729 | $8877927 |

---

*Payment Status of Mortgage Loans:* Payment status is the key credit quality indicator for conventional mortgage loans and allows FHLBank to monitor borrower performance. A past due loan is one where the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank's mortgage loans as of September 30, 2025 (dollar amounts in thousands):

**<u>Table 5.3</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Government<br>Loans** | **Total** |
| | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Subtotal** | **Government<br>Loans** | **Total** |
| | **Prior to 2021** | **2021** | **2022** | **2023** | **2024** | **2025** | **Subtotal** | **Government<br>Loans** | **Total** |
| *Amortized Cost:*<sup>1</sup> |  |  |  |  |  |  |  |  |  |
| Past due 30-59 days delinquent | $29155 | $8289 | $9132 | $5832 | $5643 | $1397 | $59448 | $9732 | $69180 |
| Past due 60-89 days delinquent | 8086 | 2645 | 1728 | 842 | 547 | 170 | 14018 | 2808 | 16826 |
| Past due 90 days or more delinquent | 10398 | 1946 | 4251 | 3697 | 1832 |  | 22124 | 5586 | 27710 |
| Total past due | 47639 | 12880 | 15111 | 10371 | 8022 | 1567 | 95590 | 18126 | 113716 |
| Total current loans | 3490745 | 1472849 | 715331 | 929648 | 1301179 | 957388 | 8867140 | 307146 | 9174286 |
| Total mortgage loans | $3538384 | $1485729 | $730442 | $940019 | $1309201 | $958955 | $8962730 | $325272 | $9288002 |
| Other delinquency statistics: |  |  |  |  |  |  |  |  |  |
| In process of foreclosure<sup>2</sup> |  |  |  |  |  |  | $4712 | $1176 | $5888 |
| Serious delinquency rate<sup>3</sup> |  |  |  |  |  |  | 0.2% | 1.7% | 0.3% |
| Past due 90 days or more and still accruing interest |  |  |  |  |  |  | $— | $5586 | $5586 |
| Loans on nonaccrual status<sup>4</sup> |  |  |  |  |  |  | $25651 | $— | $25651 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Excludes accrued interest receivable.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes $16,330,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank's mortgage loans as of December 31, 2024 (dollar amounts in thousands):

**<u>Table 5.4</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Conventional Loans** | **Government<br>Loans** | **Total** |
| | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Origination Year** | **Subtotal** | **Government<br>Loans** | **Total** |
| | **Prior to 2019** | **2019** | **2020** | **2021** | **2022** | **2023** | **Subtotal** | **Government<br>Loans** | **Total** |
| *Amortized Cost:*<sup>1</sup> |  |  |  |  |  |  |  |  |  |
| Past due 30-59 days delinquent | $30714 | $5594 | $8215 | $7165 | $7532 | $4087 | $63307 | $9669 | $72976 |
| Past due 60-89 days delinquent | 8402 | 1290 | 1680 | 2017 | 1514 | 213 | 15116 | 3572 | 18688 |
| Past due 90 days or more delinquent | 10006 | 1414 | 1738 | 1846 | 3922 | 381 | 19307 | 6509 | 25816 |
| Total past due | 49122 | 8298 | 11633 | 11028 | 12968 | 4681 | 97730 | 19750 | 117480 |
| Total current loans | 2425528 | 1372758 | 1583252 | 770774 | 1027080 | 1348195 | 8527587 | 308399 | 8835986 |
| Total mortgage loans | $2474650 | $1381056 | $1594885 | $781802 | $1040048 | $1352876 | $8625317 | $328149 | $8953466 |
| Other delinquency statistics: |  |  |  |  |  |  |  |  |  |
| In process of foreclosure<sup>2</sup> |  |  |  |  |  |  | $3124 | $305 | $3429 |
| Serious delinquency rate<sup>3</sup> |  |  |  |  |  |  | 0.2% | 2.0% | 0.3% |
| Past due 90 days or more and still accruing interest |  |  |  |  |  |  | $— | $6509 | $6509 |
| Loans on nonaccrual status<sup>4</sup> |  |  |  |  |  |  | $24402 | $— | $24402 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Excludes accrued interest receivable.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes $11,301,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

*Allowance for Credit Losses:*

<u>Conventional Mortgage Loans:</u> Conventional loans that have similar risk characteristics are pooled and collectively evaluated. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowance for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current economic conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a third-party projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior among other factors. The forecasts used in the calculation of expected credit losses cover the contractual terms of the loans rather than a reversion to historical trends after a forecasted period. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses.

Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or by using third party estimates or property valuation models. The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three and nine months ended September 30, 2025 and 2024.

**<u>Table 5.5</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| **Conventional Loans** | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| Balance, beginning of the period | $3999 | $4315 | $4033 | $5531 |
| Net (charge-offs) recoveries | 536 | (13) | (358) | (166) |
| Provision (reversal) for credit losses | (850) | (78) | 10 | (1141) |
| Balance, end of the period | $3685 | $4224 | $3685 | $4224 |

---

<u>Government-Guaranteed or Government-Insured Mortgage Loans:</u> FHLBank invests in fixed-rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, or the Department of Housing and Urban Development. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or government-insured mortgage loans. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial. Consequently, no allowance for credit losses for government-guaranteed or government-insured mortgage loans was recorded as of September 30, 2025 and December 31, 2024. Furthermore, none of these mortgage loans have been placed on nonaccrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.

**<u>NOTE 6 – DERIVATIVES AND HEDGING ACTIVITIES</u>**

Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of September 30, 2025 and December 31, 2024 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral.

**<u>Table 6.1</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Notional<br>Amount** | **Derivative<br>Assets** | **Derivative<br>Liabilities** | **Notional<br>Amount** | **Derivative<br>Assets** | **Derivative<br>Liabilities** |
| Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | $46264839 | $84749 | $135553 | $37883273 | $66190 | $226184 |
| *Total derivatives designated as hedging relationships* | 46264839 | 84749 | 135553 | 37883273 | 66190 | 226184 |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | 9726487 | 7033 | 61 | 11464896 | 25282 | 110 |
| &nbsp;&nbsp;&nbsp;Interest rate caps/floors | 835000 | 698 |  | 2604000 | 4181 |  |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 72124 | 137 | 83 | 34524 | 30 | 73 |
| *Total derivatives not designated as hedging instruments* | 10633611 | 7868 | 144 | 14103420 | 29493 | 183 |
| *TOTAL* | $56898450 | 92617 | 135697 | $51986693 | 95683 | 226367 |
| Netting adjustments and cash collateral<sup>1</sup> |  | 281805 | (133137) |  | 261631 | (220236) |
| *DERIVATIVE ASSETS AND LIABILITIES* |  | $374422 | $2560 |  | $357314 | $6131 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $453,725,000 and $521,222,000 as of September 30, 2025 and December 31, 2024, respectively. Cash collateral received was $38,783,000 and $39,354,000 as of September 30, 2025 and December 31, 2024, respectively.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

FHLBank carries derivative instruments at fair value on its Statements of Condition. Changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item.

Gains (losses) on fair value hedges include unrealized changes in fair value as well as net interest settlements. For the three months ended September 30, 2025 and 2024, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank's net interest income as presented in Table 6.2 (in thousands):

**<u>Table 6.2</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** |
| | **Advances** | **Available-for-sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Total amounts presented in the Statements of Income | $550890 | $178687 | $143296 | $662625 |
| Gains (losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;Derivatives<sup>1</sup> | $19529 | $(4977) | $(95) | $1572 |
| &nbsp;&nbsp;Hedged items<sup>2</sup> | 22880 | 36909 | (1361) | (33387) |
| *NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS* | $42409 | $31932 | $(1456) | $(31815) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2024** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** |
| | **Advances** | **Available-for-sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Total amounts presented in the Statements of Income | $650770 | $202409 | $230295 | $716141 |
| Gains (losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;Derivatives<sup>1</sup> | $(235363) | $(193204) | $4435 | $92390 |
| &nbsp;&nbsp;Hedged items<sup>2</sup> | 312529 | 253278 | (8308) | (163674) |
| *NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS* | $77166 | $60074 | $(3873) | $(71284) |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes net interest settlements in interest income/expense.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes amortization/accretion on closed fair value relationships in interest income.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

For the nine months ended September 30, 2025 and 2024, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank's net interest income as presented in Table 6.3 (in thousands):

**<u>Table 6.3</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** |
| | **Advances** | **Available-for-sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Total amounts presented in the Statements of Income | $1607592 | $536026 | $374585 | $1972976 |
| Gains (losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;Derivatives<sup>1</sup> | $(96989) | $(165018) | $(1795) | $29774 |
| &nbsp;&nbsp;Hedged items<sup>2</sup> | 219100 | 278936 | (14) | (121632) |
| *NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS* | $122111 | $113918 | $(1809) | $(91858) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2024** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** | **Interest Income/Expense** |
| | **Advances** | **Available-for-sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Total amounts presented in the Statements of Income | $1877261 | $586368 | $691610 | $2009680 |
| Gains (losses) on fair value hedging relationships: |  |  |  |  |
| Interest rate contracts: |  |  |  |  |
| &nbsp;&nbsp;Derivatives<sup>1</sup> | $16874 | $(4733) | $(2228) | $(22009) |
| &nbsp;&nbsp;Hedged items<sup>2</sup> | 212771 | 178671 | (5955) | (199183) |
| *NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS* | $229645 | $173938 | $(8183) | $(221192) |
| <sup>1</sup> Includes net interest settlements in interest income/expense. | <sup>1</sup> Includes net interest settlements in interest income/expense. | <sup>1</sup> Includes net interest settlements in interest income/expense. | <sup>1</sup> Includes net interest settlements in interest income/expense. | <sup>1</sup> Includes net interest settlements in interest income/expense. |
| <sup>2</sup> Includes amortization/accretion on closed fair value relationships in interest income. | <sup>2</sup> Includes amortization/accretion on closed fair value relationships in interest income. | <sup>2</sup> Includes amortization/accretion on closed fair value relationships in interest income. | <sup>2</sup> Includes amortization/accretion on closed fair value relationships in interest income. | <sup>2</sup> Includes amortization/accretion on closed fair value relationships in interest income. |

---

.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 6.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 6.4</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Advances** | **Available-for-Sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Carrying value of hedged asset/(liability)<sup>1</sup> | $16711815 | 10081679 | (5218407) | (13772467) |
| Basis adjustments for active hedging relationships | $6143 | $20365 | $(850) | $76562 |
| Basis adjustments for discontinued hedging relationships | (3044) |  |  | (5245) |
| Cumulative amount of fair value hedging basis adjustments<sup>2</sup> | $3099 | $20365 | $(850) | $71317 |
| **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
|  | **Advances** | **Available-for-Sale Securities** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** |
| Carrying value of hedged asset/(liability)<sup>1</sup> | $15700289 | 7984796 | (3043704) | (10653310) |
| Basis adjustments for active hedging relationships | $(210116) | $(258571) | $(837) | $198495 |
| Basis adjustments for discontinued hedging relationships | (5937) |  |  | (5545) |
| Cumulative amount of fair value hedging basis adjustments<sup>2</sup> | $(216053) | $(258571) | $(837) | $192950 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated other comprehensive income (AOCI) is excluded).

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Included in amortized cost of the hedged asset/liability.

Table 6.5 provides information regarding net gains (losses) on derivatives recorded in non-interest income (in thousands).

**<u>Table 6.5</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| Derivatives not designated as hedging instruments: |  |  |  |  |
| Economic hedges: |  |  |  |  |
| &nbsp;&nbsp;Interest rate swaps | $802 | $(14087) | $(7528) | $(18431) |
| &nbsp;&nbsp;Interest rate caps/floors | (577) | (3897) | (3495) | (5693) |
| &nbsp;&nbsp;Net interest settlements | (477) | 6902 | 5002 | 23722 |
| &nbsp;&nbsp;Price alignment amount<sup>1</sup> | (3) | (51) | (75) | (293) |
| Mortgage delivery commitments | 688 | 729 | 1505 | 497 |
| *NET GAINS (LOSSES) ON DERIVATIVES* | $433 | $(10404) | $(4591) | $(198) |
| <sup>1</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract. | <sup>1</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract. | <sup>1</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract. | <sup>1</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract. | <sup>1</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract. |

---

For uncleared derivative transactions, FHLBank has entered into bilateral security agreements with its counterparties with bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Bilateral derivative transactions executed on or after September 1, 2022, are subject to two-way initial margin requirements if aggregate uncleared derivative exposure to a counterparty exceeds a specified threshold. The initial margin is required to be held at a third-party custodian, and the secured party can only take ownership upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding. As of September 30, 2025, FHLBank was not required to pledge to or receive initial margin from bilateral derivative counterparties.

FHLBank utilizes two Derivative Clearing Organizations (clearinghouses) for all cleared derivative transactions, LCH Limited and CME Clearing. At both clearinghouses, initial margin is considered cash collateral. For cleared derivatives, the clearinghouse determines initial margin requirements and generally, credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to credit rating downgrades. FHLBank was not required to post additional initial margin by its clearing agents as of September 30, 2025 and December 31, 2024.

FHLBank's net exposure on derivative agreements is presented in Note 9.

**<u>NOTE 7 – DEPOSITS</u>**

FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. A member that services mortgage loans may also deposit funds collected in connection with the mortgage loans, pending disbursement of these funds to the owners of the mortgage loans. FHLBank classifies these funds as other deposits. Deposits classified as demand and overnight pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit.

Table 7.1 details the types of deposits held by FHLBank as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 7.1</u>**

---

| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Interest-bearing: |  |  |
| &nbsp;&nbsp;&nbsp;Demand | $520136 | $389071 |
| &nbsp;&nbsp;&nbsp;Overnight | 444700 | 531300 |
| &nbsp;&nbsp;&nbsp;Term | 14342 | 1000 |
| *Total interest-bearing* | 979178 | 921371 |
| Non-interest-bearing: |  |  |
| &nbsp;&nbsp;&nbsp;Other | 66858 | 67650 |
| *Total non-interest-bearing* | 66858 | 67650 |
| *TOTAL DEPOSITS* | $1046036 | $989021 |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>NOTE 8 – CONSOLIDATED OBLIGATIONS</u>**

*Consolidated Obligation Bonds:* Table 8.1 presents FHLBank's participation in consolidated obligation bonds outstanding as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands):

**<u>Table 8.1</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
|<br>**Year of Contractual Maturity** | **Amount** | **Weighted<br>Average<br>Interest<br>Rate** | **Amount** | **Weighted<br>Average<br>Interest<br>Rate** |
| Due in one year or less | $35820985 | 4.04% | $37517835 | 4.35% |
| Due after one year through two years | 9902920 | 3.71 | 7828625 | 3.14 |
| Due after two years through three years | 2097300 | 3.17 | 2225545 | 2.68 |
| Due after three years through four years | 1433300 | 3.27 | 1634440 | 2.97 |
| Due after four years through five years | 1241005 | 3.30 | 1573155 | 3.62 |
| Thereafter | 5552400 | 3.72 | 5280950 | 3.43 |
| *Total par value* | 56047910 | 3.88% | 56060550 | 3.97% |
| Premiums | 10527 |  | 12044 |  |
| Discounts | (3438) |  | (3054) |  |
| Concession fees | (12724) |  | (12085) |  |
| Hedging adjustments | (71318) |  | (192949) |  |
| *TOTAL* | $55970957 |  | $55864506 |  |

---

FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of FHLBank on predetermined call dates in accordance with terms of bond offerings. FHLBank's consolidated obligation bonds outstanding as of September 30, 2025 and December 31, 2024 includes callable bonds totaling $17,210,500,000 and $17,048,000,000, respectively. Table 8.2 summarizes FHLBank's consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 8.2</u>**

---

| | | |
|:---|:---|:---|
| **Year of Maturity or Next Call Date** | **09/30/2025** | **12/31/2024** |
| Due in one year or less | $45176985 | $47888835 |
| Due after one year through two years | 8105420 | 5093625 |
| Due after two years through three years | 1429800 | 1342545 |
| Due after three years through four years | 327800 | 696940 |
| Due after four years through five years | 288005 | 378155 |
| Thereafter | 719900 | 660450 |
| *TOTAL PAR VALUE* | $56047910 | $56060550 |

---

Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 8.3</u>**

---

| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Fixed-rate | $22279910 | $21107550 |
| Simple variable-rate | 32400000 | 33475000 |
| Step | 1368000 | 1478000 |
| *TOTAL PAR VALUE* | $56047910 | $56060550 |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Consolidated Discount Notes:* Table 8.4 summarizes FHLBank's participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands):

**<u>Table 8.4</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **Carrying Value** | **Par Value** | **Weighted**<br>**Average**<br>**Interest**<br>**Rate**<sup>1</sup> |
| September 30, 2025 | $18135569 | $18295912 | 3.98% |
| December 31, 2024 | $14417047 | $14518446 | 4.40% |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents yield to maturity excluding concession fees.

**<u>NOTE 9 – ASSETS AND LIABILITIES SUBJECT TO OFFSETTING</u>**

FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, including associated accrued interest.

FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the clearinghouse or clearing agent, or both. Based on this analysis, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular clearinghouse.

Tables 9.1 and 9.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of FHLBank's master netting arrangements or similar agreements as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 9.1</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| **Description** | **Gross Amounts<br>of Recognized<br>Assets** | **Gross Amounts<br>Offset<br>in the<br>Statements of<br>Condition** | **Net Amounts<br>of Assets<br>Presented<br>in the<br>Statements of<br>Condition** | **Gross Amounts**<br>**Not Offset**<br>**in the**<br>**Statement of**<br>**Condition**<sup>1</sup> | **Net<br>Amount** |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared derivatives | $91975 | $(90011) | $1964 | $(820) | $1144 |
| &nbsp;&nbsp;&nbsp;Cleared derivatives | 642 | 371816 | 372458 |  | 372458 |
| *Total derivative assets* | 92617 | 281805 | 374422 | (820) | 373602 |
| Securities purchased under agreements to resell | 3950000 |  | 3950000 | (3950000) |  |
| *TOTAL* | $4042617 | $281805 | $4324422 | $(3950820) | $373602 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 9.2</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| **Description** | **Gross Amounts<br>of Recognized<br>Assets** | **Gross Amounts<br>Offset<br>in the<br>Statements of<br>Condition** | **Net Amounts<br>of Assets<br>Presented<br>in the<br>Statements of<br>Condition** | **Gross Amounts**<br>**Not Offset**<br>**in the**<br>**Statement of**<br>**Condition**<sup>1</sup> | **Net<br>Amount** |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared derivatives | $90722 | $(86061) | $4661 | $(30) | $4631 |
| &nbsp;&nbsp;&nbsp;Cleared derivatives | 4961 | 347692 | 352653 |  | 352653 |
| *Total derivative assets* | 95683 | 261631 | 357314 | (30) | 357284 |
| Securities purchased under agreements to resell | 5150000 |  | 5150000 | (5150000) |  |
| *TOTAL* | $5245683 | $261631 | $5507314 | $(5150030) | $357284 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Tables 9.3 and 9.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank's master netting arrangements or similar agreements as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 9.3</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| **Description** | **Gross Amounts<br>of Recognized<br>Liabilities** | **Gross Amounts<br>Offset<br>in the<br>Statements of<br>Condition** | **Net Amounts<br>of Liabilities<br>Presented<br>in the<br>Statements of<br>Condition** | **Gross Amounts**<br>**Not Offset**<br>**in the**<br>**Statement of**<br>**Condition**<sup>1</sup> | **Net<br>Amount** |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared derivatives | $127052 | $(124492) | $2560 | $(83) | $2477 |
| &nbsp;&nbsp;&nbsp;Cleared derivatives | 8645 | (8645) |  |  |  |
| *Total derivative liabilities* | 135697 | (133137) | 2560 | (83) | 2477 |
| *TOTAL* | $135697 | $(133137) | $2560 | $(83) | $2477 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 9.4</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| **Description** | **Gross Amounts<br>of Recognized<br>Liabilities** | **Gross Amounts<br>Offset<br>in the<br>Statements of<br>Condition** | **Net Amounts<br>of Liabilities<br>Presented<br>in the<br>Statements of<br>Condition** | **Gross Amounts**<br>**Not Offset**<br>**in the**<br>**Statement of**<br>**Condition**<sup>1</sup> | **Net<br>Amount** |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared derivatives | $225991 | $(219860) | $6131 | $(73) | $6058 |
| &nbsp;&nbsp;&nbsp;Cleared derivatives | 376 | (376) |  |  |  |
| *Total derivative liabilities* | 226367 | (220236) | 6131 | (73) | 6058 |
| *TOTAL* | $226367 | $(220236) | $6131 | $(73) | $6058 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

**<u>NOTE 10 – CAPITAL</u>**

*Capital Requirements:* FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the FHFA's capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock.

• *Risk-based capital.* FHLBank must maintain at all times permanent capital in an amount at least equal to the sum of its credit risk, market risk and operational risk capital requirements. The risk-based capital requirements are all calculated in accordance with the rules and regulations of the FHFA. Only permanent capital, defined as the amounts paid-in for Class B Common Stock and retained earnings, can be used by FHLBank to satisfy its risk-based capital requirement. The FHFA may require FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined, but the FHFA has not placed any such requirement on FHLBank to date.

• *Total regulatory capital.* The GLB Act requires FHLBank to maintain at all times at least a 4.0 percent total capital-to-asset ratio. Total regulatory capital is defined as the sum of permanent capital, Class A Common Stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses.

• *Leverage capital.* FHLBank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.0 percent, with the leverage capital ratio defined as the sum of permanent capital weighted 1.5 times and non-permanent capital (currently only Class A Common Stock) weighted 1.0 times, divided by total assets.

Table 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands):

**<u>Table 10.1</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| | **Required** | **Actual** | **Required** | **Actual** |
| *Regulatory capital requirements:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Risk-based capital | $865279 | $4024422 | $835212 | $3777209 |
| &nbsp;&nbsp;&nbsp;Total regulatory capital-to-asset ratio | 4.0% | 5.4% | 4.0% | 5.6% |
| &nbsp;&nbsp;&nbsp;Total regulatory capital | $3194890 | $4287308 | $3036039 | $4242916 |
| &nbsp;&nbsp;&nbsp;Leverage capital ratio | 5.0% | 7.9% | 5.0% | 8.1% |
| &nbsp;&nbsp;&nbsp;Leverage capital | $3993613 | $6299519 | $3795049 | $6131521 |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Mandatorily Redeemable Capital Stock:* FHLBank is a cooperative whose members own most of FHLBank's capital stock. Former members (including certain non-members that own FHLBank capital stock as a result of merger or acquisition, relocation, charter termination, or involuntary termination of an FHLBank member) own the remaining capital stock to support business transactions still carried on FHLBank's Statements of Condition. Shares cannot be purchased or sold except between FHLBank and its members at a price equal to the $100 per share par value.

Table 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three and nine months ended September 30, 2025 and 2024 (in thousands):

**<u>Table 10.2</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| *Balance, beginning of period* | $6081 | $3442 | $3225 | $247 |
| Capital stock subject to mandatory redemption reclassified from equity during the period | 109415 | 72922 | 449157 | 305364 |
| Redemption or repurchase of mandatorily redeemable capital stock during the period | (109693) | (73201) | (446705) | (302500) |
| Stock dividend classified as mandatorily redeemable capital stock during the period | 120 | 67 | 246 | 119 |
| *Balance, end of period* | $5923 | $3230 | $5923 | $3230 |

---

*Excess Capital Stock:* Excess capital stock is defined as the amount of stock held by a member (or former member) in excess of that institution's minimum stock purchase requirement. FHFA rules limit the ability of FHLBank to create excess member stock under certain circumstances. For example, FHLBank may not pay dividends in the form of capital stock or issue new excess stock to members if FHLBank's excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause FHLBank's excess stock to exceed one percent of its total assets. As of September 30, 2025, FHLBank's excess stock was less than one percent of total assets.

*Capital Classification Determination:* The FHFA determines each FHLBank's capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, that FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA is required to provide an FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent review by the FHFA, FHLBank Topeka was classified as adequately capitalized.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME</u>**

Table 11.1 summarizes the changes in AOCI for the three months ended September 30, 2025 and 2024 (in thousands):

**<u>Table 11.1</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **Net Unrealized Gains (Losses) on Available-for-sale Securities** | **Defined Benefit Pension Plan** | **Total AOCI** |
| ***Balance at June 30, 2024*** | $(113883) | $142 | $(113741) |
| Other comprehensive income (loss) before reclassification: |  |  |  |
| &nbsp;&nbsp;Unrealized gains (losses) | 5347 |  | 5347 |
| *Net current period other comprehensive income (loss)* | 5347 |  | 5347 |
| ***Balance at September 30, 2024*** | $(108536) | $142 | $(108394) |
| ***Balance at June 30, 2025*** | $(181248) | $97 | $(181151) |
| Other comprehensive income (loss) before reclassification: |  |  |  |
| &nbsp;&nbsp;Unrealized gains (losses) | 47038 |  | 47038 |
| &nbsp;&nbsp;Impact of settlements - defined benefit pension plan |  | (1) | (1) |
| *Net current period other comprehensive income (loss)* | 47038 | (1) | 47037 |
| ***Balance at September 30, 2025*** | $(134210) | $96 | $(134114) |

---

Table 11.2 summarizes the changes in AOCI for the nine months ended September 30, 2025 and 2024 (in thousands):

**<u>Table 11.2</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **Net Unrealized Gains (Losses) on Available-for-sale Securities** | **Defined Benefit Pension Plan** | **Total AOCI** |
| ***Balance at December 31, 2023*** | $(118944) | $(27) | $(118971) |
| Other comprehensive income (loss) before reclassification: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) | 10408 |  | 10408 |
| &nbsp;&nbsp;Impact of settlements - defined benefit pension plan |  | 169 | 169 |
| *Net current period other comprehensive income (loss)* | 10408 | 169 | 10577 |
| ***Balance at September 30, 2024*** | (108536) | 142 | (108394) |
| ***Balance at December 31, 2024*** | $(140105) | $143 | $(139962) |
| Other comprehensive income (loss) before reclassification: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) | 5895 |  | 5895 |
| &nbsp;&nbsp;Impact of settlements - defined benefit pension plan |  | (47) | (47) |
| *Net current period other comprehensive income (loss)* | 5895 | (47) | 5848 |
| ***Balance at September 30, 2025*** | $(134210) | $96 | $(134114) |

---

 

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>NOTE 12 – FAIR VALUES</u>**

The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by FHLBank using available market and other pertinent information and reflect FHLBank's best judgment of appropriate valuation methods. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Although FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique. Therefore, the fair values may not be indicative of the amounts that would have been realized in market transactions as of September 30, 2025 and December 31, 2024. Additionally, these values do not represent an estimate of the overall market value of FHLBank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities.

*Subjectivity of Estimates:* Estimates of the fair value of advances with options, mortgage instruments, and derivatives with embedded options are subjective and require judgments regarding significant matters such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates.

*Fair Value Hierarchy:* The fair value hierarchy requires FHLBank to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of the market observability of the fair value measurement for the asset or liability. FHLBank must disclose the level within the fair value hierarchy in which the measurements are classified for all assets and liabilities.

The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels:

• Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that FHLBank can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2 Inputs – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets and liabilities in active markets; (2) quoted prices for similar assets and liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 Inputs – Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models using an unobservable discount rate, or similar techniques.

FHLBank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. There were no transfers of assets or liabilities between fair value levels during the three and nine months ended September 30, 2025 and 2024.

Tables 12.1 and 12.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of September 30, 2025 and December 31, 2024. FHLBank records trading securities, available-for-sale securities, derivative assets, and derivative liabilities at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. FHLBank measures all other financial assets and liabilities at amortized cost. Further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis are presented in Tables 12.3 and 12.4.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

The carrying value, fair value and fair value hierarchy of FHLBank's financial assets and liabilities as of September 30, 2025 and December 31, 2024 are summarized in Tables 12.1 and 12.2 (in thousands):

**<u>Table 12.1</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Carrying<br>Value** | **Total<br>Fair<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Netting**<br>**Adjustment and Cash**<br>**Collateral**<sup>1</sup> |
| ***Assets:*** | | | | | | |
| Cash and due from banks | $27455 | $27455 | $27455 | $— | $— | $— |
| Interest-bearing deposits | 2310963 | 2310963 |  | 2310963 |  |  |
| Securities purchased under agreements to resell | 3950000 | 3950000 |  | 3950000 |  |  |
| Federal funds sold | 4650000 | 4650000 |  | 4650000 |  |  |
| Trading securities | 81239 | 81239 |  | 81239 |  |  |
| Available-for-sale securities | 14634427 | 14634427 |  | 14576529 | 57898 |  |
| Held-to-maturity securities | 193081 | 192380 |  | 162958 | 29422 |  |
| Advances | 44029112 | 44086171 |  | 44086171 |  |  |
| Mortgage loans held for portfolio, net of allowance | 9284317 | 8576597 |  | 8570805 | 5792 |  |
| Accrued interest receivable | 256970 | 256970 |  | 256970 |  |  |
| Derivative assets | 374422 | 374422 |  | 92617 |  | 281805 |
| ***Liabilities:*** |  |  |  |  |  |  |
| Deposits | 1046036 | 1046063 |  | 1046063 |  |  |
| Consolidated obligation discount notes | 18135569 | 18138052 |  | 18138052 |  |  |
| Consolidated obligation bonds | 55970957 | 55395289 |  | 55395289 |  |  |
| Mandatorily redeemable capital stock | 5923 | 5923 | 5923 |  |  |  |
| Accrued interest payable | 388586 | 388586 |  | 388586 |  |  |
| Derivative liabilities | 2560 | 2560 |  | 135697 |  | (133137) |
| ***Other Asset (Liability):*** |  |  |  |  |  |  |
| Industrial revenue bonds | 35000 | 34024 |  | 34024 |  |  |
| Financing obligation payable | (35000) | (34024) |  | (34024) |  |  |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 12.2</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Carrying<br>Value** | **Total<br>Fair<br>Value** | **Level 1** | **Level 2** | **Level 3** | **Netting**<br>**Adjustment**<br>**and Cash**<br>**Collateral**<sup>1</sup> |
| ***Assets:*** | | | | | | |
| Cash and due from banks | $25575 | $25575 | $25575 | $— | $— | $— |
| Interest-bearing deposits | 2142423 | 2142423 |  | 2142423 |  |  |
| Securities purchased under agreements to resell | 5150000 | 5150000 |  | 5150000 |  |  |
| Federal funds sold | 3575000 | 3575000 |  | 3575000 |  |  |
| Trading securities | 439963 | 439963 |  | 439963 |  |  |
| Available-for-sale securities | 13057619 | 13057619 |  | 13033440 | 24179 |  |
| Held-to-maturity securities | 219826 | 217476 |  | 187027 | 30449 |  |
| Advances | 41652081 | 41678915 |  | 41678915 |  |  |
| Mortgage loans held for portfolio, net of allowance | 8949433 | 8003324 |  | 8001989 | 1335 |  |
| Accrued interest receivable | 249199 | 249199 |  | 249199 |  |  |
| Derivative assets | 357314 | 357314 |  | 95683 |  | 261631 |
| ***Liabilities:*** |  |  |  |  |  |  |
| Deposits | 989021 | 989023 |  | 989023 |  |  |
| Consolidated obligation discount notes | 14417047 | 14419420 |  | 14419420 |  |  |
| Consolidated obligation bonds | 55864506 | 55000797 |  | 55000797 |  |  |
| Mandatorily redeemable capital stock | 3225 | 3225 | 3225 |  |  |  |
| Accrued interest payable | 347843 | 347843 |  | 347843 |  |  |
| Derivative liabilities | 6131 | 6131 |  | 226367 |  | (220236) |
| ***Other Asset (Liability):*** |  |  |  |  |  |  |
| Industrial revenue bonds | 35000 | 33112 |  | 33112 |  |  |
| Financing obligation payable | (35000) | (33112) |  | (33112) |  |  |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Fair Value Measurements:* Tables 12.3 and 12.4 present, for each hierarchy level, FHLBank's assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended September 30, 2025 and December 31, 2024 (in thousands).

**<u>Table 12.3</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Total** | **Level 1** | **Level 2** | **Level 3** | **Netting**<br>**Adjustment and Cash**<br>**Collateral**<sup>1</sup> |
| Recurring fair value measurements - Assets: |  |  |  |  |  |
| Trading securities: |  |  |  |  |  |
| &nbsp;&nbsp;GSE MBS | $81239 | $— | $81239 | $— | $— |
| *Total trading securities* | 81239 |  | 81239 |  |  |
| Available-for-sale securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | 3125141 |  | 3125141 |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS | 64102 |  | 64102 |  |  |
| &nbsp;&nbsp;&nbsp;GSE MBS | 11387286 |  | 11387286 |  |  |
| &nbsp;&nbsp;State or local housing agency obligations | 57898 |  |  | 57898 |  |
| *Total available-for-sale securities* | 14634427 |  | 14576529 | 57898 |  |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-rate related | 374285 |  | 92480 |  | 281805 |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 137 |  | 137 |  |  |
| *Total derivative assets* | 374422 |  | 92617 |  | 281805 |
| *TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS* | $15090088 | $— | $14750385 | $57898 | $281805 |
| Recurring fair value measurements - Liabilities: |  |  |  |  |  |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-rate related | $2477 | $— | $135614 | $— | $(133137) |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 83 |  | 83 |  |  |
| *Total derivative liabilities* | 2560 |  | 135697 |  | (133137) |
| *TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES* | $2560 | $— | $135697 | $— | $(133137) |
| Nonrecurring fair value measurements - Assets<sup>2</sup>: |  |  |  |  |  |
| Impaired mortgage loans | $5887 | $— | $— | $5887 | $— |
| *TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS* | $5887 | $— | $— | $5887 | $— |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes assets adjusted to fair value during the nine months ended September 30, 2025 and still outstanding as of September 30, 2025.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 12.4</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Total** | **Level 1** | **Level 2** | **Level 3** | **Netting**<br>**Adjustment**<br>**and Cash**<br>**Collateral**<sup>1</sup> |
| Recurring fair value measurements - Assets: |  |  |  |  |  |
| Trading securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $17884 | $— | $17884 | $— | $— |
| &nbsp;&nbsp;GSE MBS | 422079 |  | 422079 |  |  |
| *Total trading securities* | 439963 |  | 439963 |  |  |
| Available-for-sale securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | 3237223 |  | 3237223 |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS | 77263 |  | 77263 |  |  |
| &nbsp;&nbsp;&nbsp;GSE MBS | 9718954 |  | 9718954 |  |  |
| &nbsp;&nbsp;State or local housing agency obligations | 24179 |  |  | 24179 |  |
| *Total available-for-sale securities* | 13057619 |  | 13033440 | 24179 |  |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-rate related | 357284 |  | 95653 |  | 261631 |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 30 |  | 30 |  |  |
| *Total derivative assets* | 357314 |  | 95683 |  | 261631 |
| *TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS* | $13854896 | $— | $13569086 | $24179 | $261631 |
| Recurring fair value measurements - Liabilities: |  |  |  |  |  |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-rate related | $6058 | $— | $226294 | $— | $(220236) |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 73 |  | 73 |  |  |
| *Total derivative liabilities* | 6131 |  | 226367 |  | (220236) |
| *TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES* | $6131 | $— | $226367 | $— | $(220236) |
| Nonrecurring fair value measurements - Assets<sup>2</sup>: |  |  |  |  |  |
| Impaired mortgage loans | $1350 | $— | $— | $1350 | $— |
| *TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS* | $1350 | $— | $— | $1350 | $— |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes assets adjusted to fair value during the year ended December 31, 2024 and still outstanding as of December 31, 2024.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Level 3 Disclosure for Assets Measured at Fair Value on a Recurring Basis:* Table 12.5 presents a roll-forward of assets and liabilities measured at fair value on a recurring basis and classified as Level 3 during the three and nine months ended September 30, 2025 and 2024 (in thousands).

**<u>Table 12.5</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Available-for-sale securities - State or local housing agency obligations** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |  |
| **Available-for-sale securities - State or local housing agency obligations** | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** | |
| **Available-for-sale securities - State or local housing agency obligations** | Balance, beginning of the period | $48238 | $— | $24179 | $|
| Included in net unrealized gains (losses) on available-for-sale securities in OCI | 520 |  | 834 |  |  |
| Purchases | 10500 |  | 34360 |  |  |
| Settlements | (1360) |  | (1475) |  |  |
| Balance, end of the period | $57898 | $— | $57898 | $— |  |
| Total amount of unrealized gains (losses) for the period included in OCI relating to assets held at period end | $520 | $— | $548 | $— |  |

---

**<u>NOTE 13 – COMMITMENTS AND CONTINGENCIES</u>**

*Joint and Several Liability:* As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. The par amounts for which FHLBank Topeka is jointly and severally liable were approximately $1,109,735,226,000 and $1,122,389,398,000 as of September 30, 2025 and December 31, 2024, respectively.

*Off-balance Sheet Commitments:* Table 13.1 presents off-balance sheet commitments at September 30, 2025 and December 31, 2024 (in thousands). No allowance for credit losses was recorded on these commitments at September 30, 2025 and December 31, 2024.

**<u>Table 13.1</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
|<br>**Notional Amount** | **Expire<br>Within<br>One Year** | **Expire<br>After<br>One Year** | **Total** | **Expire<br>Within<br>One Year** | **Expire<br>After<br>One Year** | **Total** |
| Standby letters of credit outstanding | $5979350 | $28967 | $6008317 | $7531038 | $11772 | $7542810 |
| Advance commitments outstanding | 3069 | 2597 | 5666 | 3615 | 5115 | 8730 |
| Principal commitments for standby bond purchase agreements | 341990 | 785365 | 1127355 | 193815 | 812050 | 1005865 |
| Commitments to fund or purchase mortgage loans | 72124 |  | 72124 | 34524 |  | 34524 |
| Commitments to issue consolidated bonds, at par | 70000 |  | 70000 | 250000 |  | 250000 |
| Commitments to issue consolidated discount notes, at par | 500000 |  | 500000 | 200000 |  | 200000 |

---

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

<u>Commitments to Extend Credit:</u> FHLBank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances and are fully collateralized at the time of issuance with assets allowed by FHLBank's Member Products Policy (MPP). Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If FHLBank is required to make payment for a beneficiary's draw, the member either reimburses FHLBank for the amount drawn or, subject to FHLBank's discretion, the amount drawn may be converted into a collateralized advance to the member. However, standby letters of credit usually expire without being drawn upon. FHLBank's current outstanding standby letters of credit expire no later than 2031. Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $2,785,000 and $2,571,000 as of September 30, 2025 and December 31, 2024, respectively. Advance commitments legally bind and unconditionally obligate FHLBank for additional advances up to 24 months in the future. Based upon management's credit analysis of members and collateral requirements under the MPP, FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments.

<u>Standby Bond-Purchase Agreements:</u> FHLBank has entered into standby bond purchase agreements with state housing authorities whereby FHLBank, for a fee, agrees to purchase and hold the authorities' bonds until the designated marketing agent can find a suitable investor or the housing authority repurchases the bond according to a schedule established by the standby agreement. Each standby agreement dictates the specific terms that would require FHLBank to purchase the bond and typically allows FHLBank to terminate the agreement upon the occurrence of a default event of the issuer. The bond purchase commitments entered into by FHLBank expire no later than 2029, though some are renewable at the option of FHLBank. As of September 30, 2025 and December 31, 2024, the total commitments for bond purchases included agreements with two in-district state housing authorities. FHLBank was not required to purchase any bonds under any agreements during the nine months ended September 30, 2025 and 2024.

<u>Commitments to Purchase Mortgage Loans:</u> These commitments that unconditionally obligate FHLBank to purchase mortgage loans from participating FHLBank Topeka members in the MPF Program are generally for periods not to exceed 60 calendar days. Certain commitments are recorded as derivatives at their fair values on the Statements of Condition. FHLBank recorded mortgage delivery commitment net derivative balances of $54,000 and $(43,000) as of September 30, 2025 and December 31, 2024, respectively.

<u>Commitments to Issue Consolidated Obligations:</u> FHLBank enters into commitments to issue consolidated obligation bonds and discount notes outstanding in the normal course of its business. Most settle within the shortest period possible and are considered regular way trades; however, certain commitments are recorded as derivatives at their fair values on the Statements of Condition.

**<u>NOTE 14 – TRANSACTIONS WITH STOCKHOLDERS</u>**

FHLBank is a cooperative whose members own most of the capital stock of FHLBank and generally receive dividends on their investments. Certain former members that still have outstanding transactions are required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. Nearly all outstanding advances are with current members, and the majority of outstanding mortgage loans held for portfolio were purchased from current or former members. FHLBank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases.

Transactions with members are entered into in the ordinary course of business. In instances where members also have officers or directors who are directors of FHLBank, transactions with those members are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as other transactions with members. For financial reporting and disclosure purposes, FHLBank defines related parties as FHLBank directors' financial institutions and members with capital stock investments in excess of 10 percent of FHLBank's total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Activity with Members that Exceed a 10 Percent Ownership in FHLBank Regulatory Capital Stock:* Tables 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands). An officer of BOKF, N.A. currently serves on FHLBank's board of directors.

**<u>Table 14.1</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| **Member Name** | **State** | **Total Class A Stock Par Value** | **Percent of Total Class A** | **Total Class B Stock Par Value** | **Percent of Total Class B** | **Total Capital Stock Par Value** | **Percent of Total Capital Stock** |
| MidFirst Bank | OK | $500 | 0.2% | $541493 | 23.6% | 541993 | 21.2% |
| *TOTAL* |  | $500 | 0.2% | $541493 | 23.6% | $541993 | 21.2% |

---

**<u>Table 14.2</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| **Member Name** | **State** | **Total Class A Stock Par Value** | **Percent of Total Class A** | **Total Class B Stock Par Value** | **Percent of Total Class B** | **Total Capital Stock Par Value** | **Percent of Total Capital Stock** |
| MidFirst Bank | OK | $23043 | 5.0% | $473097 | 21.8% | 496140 | 18.8% |
| BOKF, N.A. | OK | 190087 | 40.8 | 137990 | 6.4 | 328077 | 12.5 |
| *TOTAL* |  | $213130 | 45.8% | $611087 | 28.2% | $824217 | 31.3% |

---

Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2025 and December 31, 2024 are summarized in Table 14.3 (dollar amounts in thousands).

**<u>Table 14.3</u>**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| **Member Name** | **Outstanding Advances** | **Percent of Total** | **Outstanding Advances** | **Percent of Total** | **Outstanding Deposits** | **Percent of Total** | **Outstanding Deposits** | **Percent of Total** |
| MidFirst Bank | $11830000 | 26.9% | $10125000 | 24.2% | $5638 | 0.5% | $9002 | 0.9% |
| BOKF, N.A. |  |  | 3000000 | 7.2 |  |  | 72761 | 7.4 |
| *TOTAL* | $11830000 | 26.9% | $13125000 | 31.4% | $5638 | 0.5% | $81763 | 8.3% |

---

MidFirst Bank did not sell any mortgage loans into the MPF Program during the three and nine months ended September 30, 2025 and 2024. BOKF, N.A. sold $6,565,000 and $27,506,000 mortgage loans into the MPF Program during the three and nine months ended September 30, 2024, respectively.

*Transactions with FHLBank Directors' Financial Institutions:* Table 14.4 presents information as of September 30, 2025 and December 31, 2024 for members that had an officer or director serving on FHLBank's board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank's board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock.

**<u>Table 14.4</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| | **Outstanding Amount** | **Percent of Total** | **Outstanding Amount** | **Percent of Total** |
| Advances | $3453634 | 7.8% | $3279439 | 7.8% |
| Deposits | $46557 | 4.5% | $103672 | 10.5% |
| Class A Common Stock | $5011 | 1.9% | $193830 | 41.6% |
| Class B Common Stock | 188543 | 8.2 | 154135 | 7.1 |
| *TOTAL CAPITAL STOCK* | $193554 | 7.6% | $347965 | 13.2% |

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------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 14.5 presents mortgage loans acquired during the three and nine months ended September 30, 2025 and 2024 for members that had an officer or director serving on FHLBank's board of directors in 2025 or 2024 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank's board of directors.

**<u>Table 14.5</u>**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** |
| | **Amount** | **Percent of Total** | **Amount** | **Percent of Total** | **Amount** | **Percent of Total** | **Amount** | **Percent of Total** |
| Mortgage loans acquired | $20150 | 5.5% | $15768 | 4.0% | $74249 | 7.0% | $50751 | 4.4% |

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to assist the reader in understanding our business and assessing our operations both historically and prospectively. This discussion should be read in conjunction with our interim financial statements and related notes presented under Part I, Item 1 of this quarterly report on Form 10-Q and the annual report on Form 10-K for the year ended December 31, 2024, which includes audited financial statements and related notes for the year ended December 31, 2024. Our MD&A includes the following sections:

• Selected Financial Data – a tabular summary of selected balances, financial ratios and other financial information;

• Executive Level Overview – a general description of our business and financial highlights;

• Financial Market Trends – a discussion of current trends in the financial markets and overall economic environment, including the related impact on our operations;

• Critical Accounting Policies and Estimates – a discussion of accounting policies that require critical estimates and assumptions;

• Results of Operations – an analysis of our operating results, including disclosures about the sustainability of our earnings;

• Financial Condition – an analysis of our financial position;

• Liquidity and Capital Resources – an analysis of our cash flows and capital position;

• Risk Management – a discussion of our risk management strategies;

• Recently Issued Accounting Standards; and

• Legislative and Regulatory Developments.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Executive Level Overview</u>**

Table 1 presents selected financial data for the periods indicated (dollar amounts in thousands):

**<u>Table 1</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **06/30/2025** | **03/31/2025** | **12/31/2024** | **09/30/2024** |
| **Statement of Condition (as of period end):** | | | | | |
| Total assets | $79872254 | $80012268 | $74721503 | $75900980 | $79204538 |
| Advances | 44029112 | 45040514 | 41440764 | 41652081 | 44354896 |
| Mortgage loans, net | 9284317 | 9180578 | 9016747 | 8949433 | 8882033 |
| Short-term liquidity investments<sup>1</sup> | 10910963 | 10593805 | 9288627 | 10867423 | 11319473 |
| Investment securities | 14908747 | 14475992 | 14266884 | 13717408 | 13883515 |
| Total liabilities | 75724983 | 75917039 | 70668605 | 71801251 | 75132715 |
| Deposits | 1046036 | 1035255 | 1002036 | 989021 | 885987 |
| Consolidated obligations, net<sup>2</sup> | 74106526 | 74262535 | 69075542 | 70281553 | 73713141 |
| Total capital | 4147271 | 4095229 | 4052898 | 4099729 | 4071823 |
| Capital stock | 2555364 | 2587064 | 2525475 | 2631605 | 2625281 |
| Retained earnings | 1726021 | 1689316 | 1651894 | 1608086 | 1554936 |
| **Statement of Income (for the quarterly period ended):** |  |  |  |  |  |
| Net interest income | 131714 | 139516 | 132727 | 150809 | 135311 |
| Other income (loss) | 4977 | 2816 | 3520 | 10406 | 3557 |
| Voluntary housing and community investment program contributions<sup>3</sup> | 7364 | 10965 | 1045 | 11859 | 720 |
| Other expenses | 25831 | 25255 | 24763 | 28392 | 25883 |
| Income before assessments | 104346 | 105360 | 110331 | 121459 | 112343 |
| Affordable Housing Program (AHP) assessments | 10447 | 10543 | 11039 | 12152 | 11241 |
| Net income | 93899 | 94817 | 99292 | 109307 | 101102 |
| **Selected Financial Ratios and Other Financial Data (for the quarterly period ended):** |  |  |  |  |  |
| Total average interest-earning assets | 81750993 | 81282584 | 77807034 | 77464534 | 80027544 |
| Average advances | 46770546 | 47245357 | 44182977 | 43847453 | 46324602 |
| Total average interest-bearing liabilities | 76979163 | 76489318 | 73169661 | 72810667 | 75443281 |
| Dividends paid | 57194 | 57395 | 55484 | 56157 | 58617 |
| Weighted average dividend rate<sup>4</sup> | 8.65% | 8.59% | 8.81% | 8.84% | 8.90% |
| Dividend payout ratio<sup>5</sup> | 60.91% | 60.53% | 55.88% | 51.37% | 57.98% |
| Return on average equity | 8.89% | 9.03% | 9.86% | 10.83% | 9.87% |
| Return on average assets | 0.45% | 0.47% | 0.52% | 0.56% | 0.50% |
| Average equity to average assets | 5.11% | 5.16% | 5.23% | 5.17% | 5.07% |
| Net interest margin<sup>6</sup> | 0.64% | 0.69% | 0.69% | 0.77% | 0.67% |
| Total capital ratio<sup>7</sup> | 5.19% | 5.12% | 5.42% | 5.40% | 5.14% |
| Regulatory capital ratio<sup>8</sup> | 5.37% | 5.35% | 5.59% | 5.59% | 5.28% |

---

**<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations are bonds and discount notes that we are primarily liable to repay. See Note 13 to the financial statements for a description of the par amount of consolidated obligations of all FHLBanks for which we are jointly and severally liable.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Voluntary housing and community investment program contributions are expensed in the period they are approved by the board of directors and/or awarded.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid in cash and stock on both classes of stock as a percentage of average capital stock eligible for dividends.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Ratio disclosed represents dividends declared and paid during the period as a percentage of net income for the period presented. FHFA regulation requires dividends be paid out of known income prior to declaration date.

<sup>6</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net interest income as a percentage of average earning assets.

<sup>7</sup>&nbsp;&nbsp;&nbsp;&nbsp;GAAP capital stock, which excludes mandatorily redeemable capital stock, plus retained earnings and AOCI as a percentage of total assets.

<sup>8</sup>&nbsp;&nbsp;&nbsp;&nbsp;Regulatory capital (i.e., permanent capital and Class A Common Stock) as a percentage of total assets.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

We are an independent regional wholesale bank structured as a member-owned cooperative serving eligible financial institutions in Colorado, Kansas, Nebraska and Oklahoma. Our primary business activities including making advances (loans) to and purchasing mortgage loans from our member financial institutions. Financial institutions eligible for membership in FHLBank include commercial banks, savings institutions, insurance companies and credit unions. Community Development Financial Institutions (CDFIs) certified under the Community Development Banking and Financial Institutions Act of 1994 are also eligible for membership. While not eligible for membership, housing associates, including state and local housing authorities, that meet certain statutory criteria may also borrow from FHLBank. Our mission is to be a reliable source of liquidity and provider of low-cost funding in support of our members' residential mortgage lending and related housing and economic development needs of the communities they serve. We seek to maintain a balance between our public purpose and our ability to provide adequate returns on the capital supplied by our members. Our structure as a financial cooperative allows our business to be scalable and self-capitalizing without taking undue risks, diminishing capital adequacy or jeopardizing profitability. Therefore, FHLBank is generally designed to expand and contract in asset size as the needs of our members and their communities change.

*Third Quarter 2025 Financial Highlights:*

***•* Total assets:** Total assets were $79.9 billion as of September 30, 2025, an increase of $4.0 billion, or 5.2 percent, from $75.9 billion as of December 31, 2024. The increase in total assets was primarily driven by a $2.3 billion increase in advances and a $1.2 billion increase in long-term investments.

**• Primary Mission Assets:** Advances to members and housing associates and mortgage loans purchased from members are Primary Mission Assets because they are fundamental to the business and mission of FHLBank. The Primary Mission Asset ratio, as defined by the FHFA under its core mission achievement guidance, is calculated as year-to-date averages of advances and mortgage loans to consolidated obligations (less certain U.S. Treasury securities). As of September 30, 2025, our Primary Mission Asset ratio was 77 percent, compared to 78 percent at December 31, 2024.

**• Advances**: Advances were $44.0 billion at September 30, 2025, an increase of $2.3 billion, or 5.7 percent, compared to $41.7 billion at December 31, 2024 primarily as a result of increased utilization among large depository members. Advances represented 55.1 percent of total assets as of September 30, 2025, compared to 54.9 percent as of December 31, 2024. The average balance of advances increased $0.5 billion, or 1.0 percent, to $46.8 billion for the quarter ended September 30, 2025 compared to $46.3 billion for the quarter ended September 30, 2024. During the first nine months of 2025, the majority of the advance portfolio growth was in adjustable rate advances.

**• Mortgage loans:** Mortgage loans were $9.3 billion at September 30, 2025, an increase of $0.4 billion, or 3.7 percent, compared to $8.9 billion at December 31, 2024. Mortgage loans represented 11.6 percent of total assets at September 30, 2025, compared to 11.8 percent at December 31, 2024. The average balance of mortgage loans increased $0.4 billion, or 4.8 percent, for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. Originations at interest rates higher than the weighted average rate of the existing portfolio continue to have a positive impact on interest income.

• **Investment securities:** Investment securities were $14.9 billion at September 30, 2025, an increase of $1.2 billion, or 8.7 percent, compared to $13.7 billion at December 31, 2024. Investment securities represented 18.7 percent of total assets at September 30, 2025 compared to 18.1 percent at December 31, 2024. The increase in investment securities was due primarily to purchases of multifamily agency commercial MBS.

**• Net interest income/margin:** Net interest income was $131.7 million for the quarter ended September 30, 2025, a decrease of $3.6 million, or 2.7 percent, compared to $135.3 million for the quarter ended September 30, 2024. The decrease in net interest income was due to the impact of the decrease in short-term interest rates and the hedging adjustments on interest-earning assets, partially offset by an increase in the average balance of interest-earning assets. Net interest margin decreased three basis points, from 0.67 percent for the quarter ended September 30, 2024 to 0.64 percent for the quarter ended September 30, 2025. Net interest spread increased one basis point to 0.39 percent for the quarter ended September 30, 2025 compared to 0.38 percent for the quarter ended September 30, 2024. The decrease in net interest margin was due to the decrease in net interest income and shifts in balance sheet composition and spreads.

**• Performance ratios:** Return on average equity decreased to 8.9 percent for the quarter ended September 30, 2025 compared to 9.9 percent for the quarter ended September 30, 2024. The decrease was due to the decrease in net income combined with an increase in average balance of capital stock resulting from increased advance utilization.

**• Dividends:** The Class A Common Stock dividend rate of 4.25 percent per annum and the Class B Common Stock dividend rate of 9.25 percent per annum combined for a weighted average dividend rate for the quarter ended September 30, 2025 of 8.65 percent.

**<u>Financial Market Trends</u>**

The primary external factors that affect net interest income are market interest rates and the general state of the economy, as discussed in greater detail below.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*General discussion of the level of market interest rates:*

Table 2 presents selected market interest rates as of the dates or for the periods shown.

**<u>Table 2</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Market Instrument** | | | | | | |
| **Market Instrument** | **09/30/2025**<br>**Three-month**<br>**Average** | **09/30/2024**<br>**Three-month**<br>**Average** | **09/30/2025**<br>**Nine-month**<br>**Average** | **09/30/2024**<br>**Nine-month**<br>**Average** | **09/30/2025**<br>**Ending**<br>**Rate** | **12/31/2024**<br>**Ending**<br>**Rate** |
| Secured Overnight Financing Rate (SOFR)<sup>1</sup> | 4.33% | 5.28% | 4.33% | 5.30% | 4.24% | 4.49% |
| Federal funds effective rate<sup>1</sup> | 4.30 | 5.27 | 4.32 | 5.31 | 4.09 | 4.33 |
| Federal Reserve interest rate on reserve balances<sup>1</sup> | 4.37 | 5.34 | 4.39 | 5.38 | 4.15 | 4.40 |
| 3-month U.S. Treasury bill<sup>1</sup> | 4.19 | 5.13 | 4.27 | 5.30 | 3.94 | 4.32 |
| 2-year U.S. Treasury note<sup>1</sup> | 3.73 | 4.06 | 3.92 | 4.46 | 3.61 | 4.24 |
| 5-year U.S. Treasury note<sup>1</sup> | 3.80 | 3.81 | 4.01 | 4.12 | 3.74 | 4.38 |
| 10-year U.S. Treasury note<sup>1</sup> | 4.26 | 3.96 | 4.36 | 4.18 | 4.15 | 4.57 |
| 30-year residential mortgage note rate<sup>1,2</sup> | 6.65 | 6.51 | 6.79 | 6.83 | 6.46 | 6.97 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Source is Bloomberg.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Mortgage Bankers Association weekly 30-year fixed-rate mortgage contract rate.

At the October 2025 meeting, the Federal Open Market Committee (FOMC) of the Federal Reserve lowered the target range for the federal funds rate by 25 basis points to a range of 3.75 percent to 4.00 percent, in line with market expectations, noting the softening labor market and elevated inflation. Inflationary concerns and geopolitical tensions continued to affect financial markets. The ongoing government shutdown that began in October further complicates the economic outlook because, among other things, the suspension of the collection and release of key economic data throughout the shutdown precludes the FOMC from assessing the state of the economy on many of its traditional metrics. Future adjustments to the target range for the Federal funds rate will depend on incoming data, the evolving outlook, and the balance of risks associated with adjustments to interest rates. The FOMC announced the December 1, 2025 conclusion of its securities reduction program and indicated the intention to reinvest Agency principal repayments into Treasury bills.

We issue debt at a spread relative to U.S. Treasury security yields. As a result, the costs of issuing consolidated obligations and making advances are sensitive to interest rates. The cost of issuing short-term debt has declined with the decrease in market rates, and the continued high demand for short-term Agency debt has kept this spread to the comparable U.S. Treasury security relatively narrow. In May 2025, Moody's Ratings (Moody's) downgraded the long-term credit rating of the U.S. The downgrade was primarily due to concerns about the growing U.S. national debt and the increasing cost of servicing it. In turn, FHLBank's rating was also downgraded from Aaa to Aa1, with outlook changing from negative to stable. As discussed in our annual report on Form 10-K, rating agency actions could result in disruptions in the capital markets and increase cost of funds, which could have an adverse impact on our cost of funding, letters of credit, standby bond purchase agreements, and overall liquidity. The downgrade by Moody's did not impact any current obligations of FHLBank or our members, nor did it have a material impact on our cost of funding, access to liquidity, financial condition or results of operations.

For further discussion of FHLBank debt, see this Item 2 – "Financial Condition – Consolidated Obligations."

**<u>Critical Accounting Policies and Estimates</u>**

The preparation of our financial statements in accordance with GAAP requires management to make a number of judgments, estimates, and assumptions that affect our reported results and disclosures. Several of our accounting policies are inherently subject to valuation assumptions and other subjective assessments and are more critical than others in terms of their importance to results. Given the assumptions and judgment used, we have identified the accounting for derivatives and hedging activities as a critical accounting estimate. Our financial condition and results of operations could be materially affected under different conditions or different assumptions related to this accounting estimate.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

The accounting policies that management believes are the most critical to an understanding of our financial results and condition and require complex management judgment are described under Part II, Item 7 – "Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates" in our annual report on Form 10-K for the year ended December 31, 2024, incorporated by reference herein. There were no material changes to our critical accounting policies and estimates during the quarter ended September 30, 2025.

**<u>Results of Operations</u>**

Table 3 presents changes in the major components of our net income (dollar amounts in thousands):

**<u>Table 3</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Increase (Decrease) in Earnings Components** | **Increase (Decrease) in Earnings Components** | **Increase (Decrease) in Earnings Components** | **Increase (Decrease) in Earnings Components** |
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** |
| | **Dollar Change** | **Percentage Change** | **Dollar Change** | **Percentage Change** |
| Total interest income | $(144846) | (13.3)% | $(361806) | (11.5)% |
| Total interest expense | (141249) | (14.8) | (356353) | (13.0) |
| Net interest income | (3597) | (2.7) | (5453) | (1.3) |
| Provision (reversal) for credit losses on mortgage loans | (772) | (989.7) | 1151 | 100.9 |
| Net interest income after mortgage loan loss provision | (2825) | (2.1) | (6604) | (1.6) |
| Net gains (losses) on trading securities | (9353) | (91.1) | (10715) | (67.0) |
| Net gains (losses) on derivatives | 10837 | 104.2 | (4393) | (2218.7) |
| Other non-interest income | (64) | (1.7) | (313) | (2.9) |
| Total other income (loss) | 1420 | 39.9 | (15421) | (57.7) |
| Operating expenses | (722) | (9.3) | (246) | (1.2) |
| Other non-interest expenses | 7314 | 38.9 | 17548 | 31.0 |
| Total other expenses | 6592 | 24.8 | 17302 | 22.2 |
| AHP assessments | (794) | (7.1) | (3920) | (10.9) |
| *NET INCOME* | $(7203) | (7.1)% | $(35407) | (10.9)% |

---

Net income decreased $7.2 million, or 7.1 percent, to $93.9 million for the three months ended September 30, 2025 compared to $101.1 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net income decreased $35.4 million, or 10.9 percent, to $288.0 million compared to $323.4 million for the same period in the prior year. The decrease in net income for the current quarter was driven by a decrease in net interest income and an increase in other expenses. The decrease in net income for the current quarter was driven by lower interest rates and higher voluntary contributions to housing and community investment programs. The decrease in net income for the current year-to-date period was driven by lower interest rates, higher voluntary contributions, and fair value fluctuations on economic hedges. See "Net Interest Income and Net Interest Margin," and "Other Expenses" under this Item 2.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Net Interest Income and Net Interest Margin:* Net interest income decreased $3.6 million for the quarter, or 2.7 percent, from $135.3 million for the three months ended September 30, 2024 to $131.7 million for the three months ended September 30, 2025. For the nine months ended September 30, 2025, net interest income decreased $5.5 million, or 1.3 percent, to $404.0 million compared to $409.4 million for the nine months ended September 30, 2024. Balance sheet composition, market interest rates and trends, and net interest spread affect net interest income and net interest margin on interest-earning assets, including advances, mortgage loans, and investments. The decrease in net interest income for the three- and nine-month periods ended September 30, 2025 was driven primarily by lower short-term interest rates and hedging adjustments on interest-earning assets, partially offset by an increase in the average balance of interest-earning assets. Asset spreads declined as members continued to shift to lower-spread advance products. For the nine-month period, the average balance of liquidity holdings increased at lower spreads than in the prior year. As a result, net interest margin decreased three basis points for the current quarter, from 0.67 percent for the quarter ended September 30, 2024 to 0.64 percent for the quarter ended September 30, 2025. Net interest margin decreased by four basis points, from 0.71 percent for the nine months ended September 30, 2024 to 0.67 percent for the nine months ended September 30, 2025. Net interest spread increased between periods, from 0.38 percent for the quarter ended September 30, 2024 to 0.39 percent for the quarter ended September 30, 2025 and from 0.40 percent for the nine months ended September 30, 2024 to 0.42 percent for the nine months ended September 30, 2025. The slight increase in net interest spread was due primarily to changes in debt composition between periods.

The average balance of advances increased for both the three- and nine-month periods ended September 30, 2025 compared to the prior year periods, while yields decreased over the same period. The interest rate spread on advances also declined, attributed to a shift from short-term fixed-rate advances to adjustable-rate advances, which generally have lower spreads. The average balance of short and long-term investments increased for the nine months ended September 30, 2025 compared to the prior year period, with a decrease in yields and spreads resulting from the decline in short-term interest rates between periods. For further discussion of advances, investments, mortgage loans, and consolidated obligations, see this Item 2 – "Management's Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition.

Net interest income and net interest margin are also impacted by derivative and hedging activities, as net interest settlements on derivatives and the changes in fair values of hedged assets and liabilities and the corresponding derivative instruments designated in fair value hedging relationships are recorded in net interest income. The decrease in net interest income resulting from fair value hedging was driven by the impact of swap index rate decreases on fair values and net interest settlements between the comparative periods. Tables 4 through 7 present the impact of derivatives and hedging activities recorded in net interest income (in thousands):

**<u>Table 4</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Total** |
| Unrealized gains (losses) due to fair value changes | $(223) | $(3171) | $— | $— | $(176) | $(3570) |
| Net amortization/accretion of hedging activities | 903 | **—** | 215 |  | 102 | 1220 |
| Net interest received (paid) | 42328 | 36137 | **—** | (1471) | (31730) | 45264 |
| Price alignment amount<sup>1</sup> | (599) | (1034) | **—** | 15 | (11) | (1629) |
| *TOTAL* | $42409 | $31932 | $215 | $(1456) | $(31815) | $41285 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 5</u>** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Total** |
| Unrealized gains (losses) due to fair value changes | $(1564) | $9069 | $— | $(1114) | $(1821) | $4570 |
| Net amortization/accretion of hedging activities | 860 | **—** | 96 |  | 99 | 1055 |
| Net interest received (paid) | 80173 | 53913 | **—** | (2828) | (69482) | 61776 |
| Price alignment amount<sup>1</sup> | (2303) | (2908) | **—** | 69 | (80) | (5222) |
| *TOTAL* | $77166 | $60074 | $96 | $(3873) | $(71284) | $62179 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

**<u>Table 6</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Total** |
| Unrealized gains (losses) due to fair value changes | $(2105) | $15442 | $— | $(190) | $(375) | $12772 |
| Net amortization/accretion of hedging activities | 2694 | **—** | 613 |  | 301 | 3608 |
| Net interest received (paid) | 125373 | 104174 | **—** | (1654) | (91667) | 136226 |
| Price alignment amount<sup>1</sup> | (3851) | (5698) |  | 35 | (117) | (9631) |
| *TOTAL* | $122111 | $113918 | $613 | $(1809) | $(91858) | $142975 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

**<u>Table 7</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Total** |
| Unrealized gains (losses) due to fair value changes | $(259) | $29479 | $— | $129 | $(49) | $29300 |
| Net amortization/accretion of hedging activities | 2515 | **—** | 417 |  | 292 | 3224 |
| Net interest received (paid) | 238672 | 156926 | **—** | (8533) | (221484) | 165581 |
| Price alignment amount<sup>1</sup> | (11283) | (12467) |  | 221 | 49 | (23480) |
| *TOTAL* | $229645 | $173938 | $417 | $(8183) | $(221192) | $174625 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Average Balances and Yields:* Table 8 presents average balances and annualized yields of major earning asset categories and the sources funding those earning assets (dollar amounts in thousands):

**<u>Table 8</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield** | **Average<br>Balance** | **Interest<br>Income/<br>Expense** | **Yield** |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $2764494 | $31405 | 4.51% | $2820610 | $37651 | 5.31% |
| &nbsp;&nbsp;Securities purchased under agreements to resell | 3409239 | 37835 | 4.40 | 2951522 | 40217 | 5.42 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 4671446 | 51438 | 4.37 | 5176924 | 69652 | 5.35 |
| &nbsp;&nbsp;Investment securities<sup>1,2</sup> | 14850910 | 181913 | 4.86 | 13889757 | 211189 | 6.05 |
| &nbsp;&nbsp;Advances<sup>1,2</sup> | 46770546 | 550890 | 4.67 | 46324602 | 650770 | 5.59 |
| &nbsp;&nbsp;Mortgage loans<sup>3,4</sup> | 9249358 | 94426 | 4.05 | 8828912 | 83271 | 3.75 |
| &nbsp;&nbsp;&nbsp;Other interest-earning assets | 35000 | 175 | 1.98 | 35217 | 178 | 2.01 |
| Total earning assets | 81750993 | 948082 | 4.60 | 80027544 | 1092928 | 5.43 |
| Other non-interest-earning assets | 248148 |  |  | 369730 |  |  |
| Total assets | $81999141 |  |  | $80397274 |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | $983202 | $10009 | 4.04% | $850192 | $10811 | 5.06% |
| &nbsp;&nbsp;Consolidated obligations<sup>1</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount Notes | 13351460 | 143296 | 4.26 | 17224667 | 230295 | 5.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 62596878 | 662625 | 4.20 | 57323639 | 716141 | 4.97 |
| &nbsp;&nbsp;&nbsp;Other borrowings | 47623 | 438 | 3.65 | 44783 | 370 | 3.28 |
| Total interest-bearing liabilities | 76979163 | 816368 | 4.21 | 75443281 | 957617 | 5.05 |
| Capital and other non-interest-bearing funds | 5019978 |  |  | 4953993 |  |  |
| Total funding | $81999141 |  |  | $80397274 |  |  |
| Net interest income and net interest spread<sup>5</sup> |  | $131714 | 0.39% |  | $135311 | 0.38% |
| Net interest margin<sup>6</sup> |  |  | 0.64% |  |  | 0.67% |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income includes prepayment/yield maintenance fees.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Credit enhancement income payments made to PFIs are netted against interest earnings on the mortgage loans. The expense related to these payments was $2.0 million and $1.8 million for the three months ended September 30, 2025 and 2024, respectively.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans average balance includes outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

<sup>6</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin is defined as net interest income as a percentage of average interest-earning assets.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Changes in the volume of interest-earning assets and the level of interest rates influence changes in net interest income, net interest spread and net interest margin. Table 9 summarizes changes in interest income and interest expense (in thousands):

**<u>Table 9</u>**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** |
| | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** |
| | **Volume**<sup>1,2</sup> | **Rate**<sup>1,2</sup> | **Total** |
| Interest Income<sup>3</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $(736) | $(5510) | $(6246) |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 5710 | (8092) | (2382) |
| &nbsp;&nbsp;&nbsp;Federal funds sold | (6369) | (11845) | (18214) |
| &nbsp;&nbsp;&nbsp;Investment securities | 13868 | (43144) | (29276) |
| &nbsp;&nbsp;&nbsp;Advances | 6208 | (106088) | (99880) |
| &nbsp;&nbsp;&nbsp;Mortgage loans | 4085 | 7070 | 11155 |
| &nbsp;&nbsp;&nbsp;Other assets | (1) | (2) | (3) |
| Total interest-earning assets | 22765 | (167611) | (144846) |
| Interest Expense<sup>3</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 1543 | (2345) | (802) |
| &nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | (46344) | (40655) | (86999) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 62097 | (115613) | (53516) |
| &nbsp;&nbsp;&nbsp;Other borrowings | 24 | 44 | 68 |
| Total interest-bearing liabilities | 17320 | (158569) | (141249) |
| Change in net interest income | $5445 | $(9042) | $(3597) |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest income and interest expense not identifiable as either volume-related or rate-related have been allocated to volume and rate based upon the proportion of the absolute value of the volume and rate changes.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Amounts used to calculate volume and rate changes are based on numbers in dollars. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same results.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 10 presents average balances and yields of major earning asset categories and the sources funding those earning assets (dollar amounts in thousands):

**<u>Table 10</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Average<br>Balance** | **Interest<br>Income/Expense** | **Yield** | **Average<br>Balance** | **Interest<br>Income/Expense** | **Yield** |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $2772605 | $91522 | 4.41% | $2784231 | $111895 | 5.37% |
| &nbsp;&nbsp;Securities purchased under agreements to resell | 3186952 | 105257 | 4.42 | 2964124 | 120583 | 5.43 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 4625696 | 151842 | 4.39 | 4471281 | 180720 | 5.40 |
| &nbsp;&nbsp;Investment securities<sup>1,2</sup> | 14481214 | 549744 | 5.08 | 13586514 | 615364 | 6.05 |
| &nbsp;&nbsp;Advances<sup>1,2</sup> | 46075771 | 1607592 | 4.66 | 44665703 | 1877261 | 5.61 |
| &nbsp;&nbsp;Mortgage loans<sup>3,4</sup> | 9116497 | 274123 | 4.02 | 8613299 | 236084 | 3.66 |
| &nbsp;&nbsp;Other interest-earning assets | 35916 | 555 | 2.07 | 35219 | 534 | 2.03 |
| Total earning assets | 80294651 | 2780635 | 4.63 | 77120371 | 3142441 | 5.44 |
| Other non-interest-earning assets | 247808 |  |  | 292797 |  |  |
| Total assets | $80542459 |  |  | $77413168 |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | $914577 | 27907 | 4.08 | $801818 | 30687 | 5.11 |
| &nbsp;&nbsp;Consolidated obligations<sup>1</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount Notes | 11601669 | 374585 | 4.32 | 17355679 | 691610 | 5.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 62997603 | 1972976 | 4.19 | 54310542 | 2009680 | 4.94 |
| &nbsp;&nbsp;&nbsp;Other borrowings | 46153 | 1210 | 3.50 | 44195 | 1054 | 3.18 |
| Total interest-bearing liabilities | 75560002 | 2376678 | 4.21 | 72512234 | 2733031 | 5.04 |
| Capital and other non-interest-bearing funds | 4982457 |  |  | 4900934 |  |  |
| Total funding | $80542459 |  |  | $77413168 |  |  |
| Net interest income and net interest spread<sup>5</sup> |  | $403957 | 0.42% |  | $409410 | 0.40% |
| Net interest margin<sup>6</sup> |  |  | 0.67% |  |  | 0.71% |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income includes prepayment/yield maintenance fees.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Credit enhancement income payments made to PFIs are netted against interest earnings on the mortgage loans. The expense related to these payments was $5.8 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans average balance includes outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

<sup>6</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin is defined as net interest income as a percentage of average interest-earning assets.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Changes in the volume of interest-earning assets and the level of interest rates influence changes in net interest income, net interest spread and net interest margin. Table 11 summarizes changes in interest income and interest expense (in thousands):

**<u>Table 11</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** | **09/30/2025 vs. 09/30/2024** |
| | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** |
| | **Volume**<sup>1,2</sup> | **Rate**<sup>1,2</sup> | **Total** |
| Interest Income<sup>3</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $(465) | $(19908) | $(20373) |
| &nbsp;&nbsp;Securities purchased under agreements to resell | 8579 | (23905) | (15326) |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 6059 | (34937) | (28878) |
| &nbsp;&nbsp;&nbsp;Investment securities | 38626 | (104246) | (65620) |
| &nbsp;&nbsp;&nbsp;Advances | 57686 | (327355) | (269669) |
| &nbsp;&nbsp;&nbsp;Mortgage loans | 14295 | 23744 | 38039 |
| &nbsp;&nbsp;&nbsp;Other assets | 11 | 10 | 21 |
| Total earning assets | 124791 | (486597) | (361806) |
| Interest Expense<sup>3</sup>: |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 3957 | (6737) | (2780) |
| &nbsp;&nbsp;&nbsp;Consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | (201620) | (115405) | (317025) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | 296260 | (332964) | (36704) |
| &nbsp;&nbsp;&nbsp;Other borrowings | 48 | 108 | 156 |
| Total interest-bearing liabilities | 98645 | (454998) | (356353) |
| Change in net interest income | $26146 | $(31599) | $(5453) |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest income and interest expense not identifiable as either volume-related or rate-related have been allocated to volume and rate based upon the proportion of the absolute value of the volume and rate changes.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Amounts used to calculate volume and rate changes are based on numbers in dollars. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same results.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Net Gains (Losses) on Derivatives:* Tables 12 through 15 present the earnings impact of derivatives by financial instrument as recorded in other non-interest income (in thousands):

**<u>Table 12</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** | **Three Months Ended 09/30/2025** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Balance Sheet** | **Total** |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Economic hedges – unrealized gains (losses) due to fair value changes | $(468) | $(464) | $— | $1419 | $312 | $(574) | $225 |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments |  |  | 688 |  |  |  | 688 |
| &nbsp;&nbsp;Economic hedges – net interest received (paid) | 591 | 506 |  | (1294) | (318) | 38 | (477) |
| &nbsp;&nbsp;Price alignment amount<sup>1</sup> | (7) | (1) |  | 5 |  |  | (3) |
| *Net gains (losses) on derivatives* | 116 | 41 | 688 | 130 | (6) | (536) | 433 |
| Net gains (losses) on trading securities hedged on an economic basis with derivatives |  | 883 |  |  |  |  | 883 |
| *TOTAL* | $116 | $924 | $688 | $130 | $(6) | $(536) | $1316 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

**<u>Table 13</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** | **Three Months Ended 09/30/2024** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated<br>Obligation Discount Notes** | **Consolidated<br>Obligation Bonds** | **Total** |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Economic hedges – unrealized gains (losses) due to fair value changes | $(5044) | $(13414) | $— | $2201 | $(1727) | $(17984) |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments |  |  | 729 |  |  | 729 |
| &nbsp;&nbsp;Commitment to issue discount notes |  |  |  |  |  |  |
| &nbsp;&nbsp;Economic hedges – net interest received (paid) | 1194 | 6601 |  | (531) | (362) | 6902 |
| &nbsp;&nbsp;Price alignment amount<sup>1</sup> | (35) | (10) |  | (6) |  | (51) |
| *Net gains (losses) on derivatives* | (3885) | (6823) | 729 | 1664 | (2089) | (10404) |
| Net gains (losses) on trading securities hedged on an economic basis with derivatives |  | 10227 |  |  |  | 10227 |
| *TOTAL* | $(3885) | $3404 | $729 | $1664 | $(2089) | $(177) |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 14</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** | **Nine Months Ended 09/30/2025** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated Obligation Discount Notes** | **Consolidated Obligation Bonds** | **Balance Sheet** | **Total** |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Economic hedges – unrealized gains (losses) due to fair value changes | $(3134) | $(4885) | $— | $(183) | $584 | $(3405) | $(11023) |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments |  |  | 1505 |  |  |  | 1505 |
| &nbsp;&nbsp;Economic hedges – net interest received (paid) | 1781 | 4463 |  | (596) | (685) | 39 | 5002 |
| &nbsp;&nbsp;Price alignment amount<sup>1</sup> | (50) | (2) |  | 9 | (32) |  | (75) |
| *Net gains (losses) on derivatives* | (1403) | (424) | 1505 | (770) | (133) | (3366) | (4591) |
| Net gains (losses) on trading securities hedged on an economic basis with derivatives |  | 5257 |  |  |  |  | 5257 |
| *TOTAL* | $(1403) | $4833 | $1505 | $(770) | $(133) | $(3366) | $666 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

**<u>Table 15</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** | **Nine Months Ended 09/30/2024** |
| | **Advances** | **Investments** | **Mortgage Loans** | **Consolidated<br>Obligation Discount Notes** | **Consolidated<br>Obligation Bonds** | **Total** |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;Economic hedges – unrealized gains (losses) due to fair value changes | $(2499) | $(21414) | $— | $1516 | $(1727) | $(24124) |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments |  |  | 497 |  |  | 497 |
| &nbsp;&nbsp;&nbsp;Economic hedges – net interest received (paid) | 3512 | 21951 |  | (1379) | (362) | 23722 |
| &nbsp;&nbsp;Price alignment amount<sup>1</sup> | (177) | (120) |  | 4 |  | (293) |
| *Net gains (losses) on derivatives* | 836 | 417 | 497 | 141 | (2089) | (198) |
| Net gains (losses) on trading securities hedged on an economic basis with derivatives |  | 15899 |  |  |  | 15899 |
| *TOTAL* | $836 | $16316 | $497 | $141 | $(2089) | $15701 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest amount on derivative collateral for which variation margin is characterized as a daily settled contract.

The change between both the current three- and nine-month periods compared to the prior year periods was attributed to fair value fluctuations and a decrease in net interest settlements during the current periods resulting from changes in the level of swap index rates.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Tables 16 and 17 present the relationship between the hedged trading securities and the associated interest rate swaps that do not qualify for hedge accounting treatment by investment type (in thousands):

**<u>Table 16</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Gains (Losses) on Derivatives** | **Gains (Losses) on Trading Securities** | **Net** | **Gains (Losses) on Derivatives** | **Gains (Losses) on Trading Securities** | **Net** |
| GSE debentures | $— | $— | $— | $(1577) | $1397 | $(180) |
| GSE MBS | (464) | 883 | 419 | (7940) | 8830 | 890 |
| *TOTAL* | $(464) | $883 | $419 | $(9517) | $10227 | $710 |

---

**<u>Table 17</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** | **09/30/2024** |
| | **Gains (Losses) on Derivatives** | **Gains (Losses) on Trading Securities** | **Net** | **Gains (Losses) on Derivatives** | **Gains (Losses) on Trading Securities** | **Net** |
| GSE debentures | $(179) | $116 | $(63) | $(5241) | $4403 | $(838) |
| GSE MBS | (4706) | 5141 | 435 | (10480) | 11496 | 1016 |
| *TOTAL* | $(4885) | $5257 | $372 | $(15721) | $15899 | $178 |

---

For additional detail regarding gains and losses on trading securities, see Table 18 and related discussion below.

See Tables 36 and 37 under Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk" for additional detail regarding notional and fair value amounts of derivative instruments.

*Net Gains (Losses) on Trading Securities:* Historically, our trading portfolio has been comprised primarily of fixed-rate multifamily GSE MBS, with a small percentage of fixed-rate GSE debentures and variable-rate single-family GSE MBS. Periodically, we also invest in short-term securities and U.S. Treasury obligations classified as trading. In general, the fixed-rate securities are related to economic hedges in the form of interest rate swaps that convert fixed rates to variable rates on the fixed-rate securities and the related economic hedges. The fair values of the fixed-rate multifamily GSE MBS are affected by changes in mortgage rates and credit spreads and are swapped on an economic basis to SOFR. The fair values of the fixed-rate GSE debentures are sensitive to changes in intermediate term interest rates and credit spreads and are swapped on an economic basis to SOFR.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

All unrealized gains and losses related to trading securities are recorded in other income (loss) as net gains (losses) on trading securities; however, only gains and losses relating to trading securities that are related to economic hedges are included in Tables 16 and 17. Unrealized gains (losses) fluctuate as the fair value of our trading portfolio fluctuates. There are a number of factors that can impact the fair value of a trading security including the movement in interest rates, changes in credit spreads, the passage of time, and changes in price volatility. Table 18 presents the major components of the net gains (losses) on trading securities (in thousands):

**<u>Table 18</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2024** | **09/30/2025** | **09/30/2024** |
| Trading securities not hedged: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS and GSE MBS | $28 | $37 | $21 | $94 |
| *Total trading securities not hedged* | 28 | 37 | 21 | 94 |
| Trading securities hedged on an economic basis with derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures |  | 1397 | 116 | 4403 |
| &nbsp;&nbsp;&nbsp;GSE MBS | 883 | 8830 | 5141 | 11496 |
| *Total trading securities hedged on an economic basis with derivatives* | 883 | 10227 | 5257 | 15899 |
| *TOTAL* | $911 | $10264 | $5278 | $15993 |

---

The fair value fluctuations on the securities in the trading portfolio for the current periods reflect the changes in term Treasury and mortgage rates relative to the prevailing yields at the end of the prior year periods. In addition to interest rates and credit spreads, the value of these securities is affected by price convergence to par which results in a decrease in their current premium price (i.e., time decay).

*Other Expenses:* Other expenses, which includes compensation and benefits, other operating expenses and voluntary housing and community investment program contributions, increased $6.6 million and $17.3 million for the three and nine months ended September 30, 2025, respectively. The increases are due primarily to increases in voluntary contributions in accordance with the planned increase in the annual amount committed to voluntary programs. FHLBank voluntarily committed at least $26.5 million, or five percent of its 2024 net income before assessments, to voluntary programs in 2025 compared to $16.5 million contributed for the prior year. These voluntary contributions are in addition to the statutory AHP assessments under the Bank Act required to fund affordable housing initiatives. Voluntary housing and community investment program contributions are expensed in the period they are approved by the board of directors and/or awarded, which does not occur ratably throughout the year.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Financial Condition</u>**

*Overall:* Table 19 presents the percentage concentration of the major components of our Statements of Condition:

**<u>Table 19</u>**

---

| | | |
|:---|:---|:---|
| | **Component Concentration** | **Component Concentration** |
| | **09/30/2025** | **12/31/2024** |
| Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | —% | —% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold | 13.6 | 14.3 |
| &nbsp;&nbsp;&nbsp;Investment securities | 18.7 | 18.1 |
| &nbsp;&nbsp;&nbsp;Advances | 55.1 | 54.9 |
| &nbsp;&nbsp;&nbsp;Mortgage loans, net | 11.6 | 11.8 |
| &nbsp;&nbsp;&nbsp;Other assets | 1.0 | 0.9 |
| Total assets | 100.0% | 100.0% |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 1.4% | 1.4% |
| &nbsp;&nbsp;&nbsp;Consolidated obligation discount notes, net | 22.7 | 19.0 |
| &nbsp;&nbsp;&nbsp;Consolidated obligation bonds, net | 70.1 | 73.6 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 0.6 | 0.6 |
| Total liabilities | 94.8 | 94.6 |
| Capital: |  |  |
| &nbsp;&nbsp;&nbsp;Capital stock outstanding | 3.2 | 3.5 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 2.2 | 2.1 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (0.2) | (0.2) |
| Total capital | 5.2 | 5.4 |
| Total liabilities and capital | 100.0% | 100.0% |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 20 presents changes in the major components of our Statements of Condition (dollar amounts in thousands):

**<u>Table 20</u>**

---

| | | |
|:---|:---|:---|
| | **Increase (Decrease)<br>in Components** | **Increase (Decrease)<br>in Components** |
| | **09/30/2025 vs. 12/31/2024** | **09/30/2025 vs. 12/31/2024** |
| | **Dollar<br>Change** | **Percent<br>Change** |
| Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $1880 | 7.4% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold | 43540 | 0.4 |
| &nbsp;&nbsp;&nbsp;Investment securities | 1191339 | 8.7 |
| &nbsp;&nbsp;&nbsp;Advances | 2377031 | 5.7 |
| &nbsp;&nbsp;&nbsp;Mortgage loans, net | 334884 | 3.7 |
| &nbsp;&nbsp;&nbsp;Other assets | 22600 | 3.3 |
| Total assets | $3971274 | 5.2% |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | $57015 | 5.8% |
| &nbsp;&nbsp;&nbsp;Consolidated obligation discount notes, net | 3718522 | 25.8 |
| &nbsp;&nbsp;&nbsp;Consolidated obligation bonds, net | 106451 | 0.2 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 41744 | 7.9 |
| Total liabilities | 3923732 | 5.5 |
| Capital: |  |  |
| &nbsp;&nbsp;&nbsp;Capital stock outstanding | (76241) | (2.9) |
| &nbsp;&nbsp;&nbsp;Retained earnings | 117935 | 7.3 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 5848 | (4.2) |
| Total capital | 47542 | 1.2 |
| Total liabilities and capital | $3971274 | 5.2% |

---

Total assets increased $4.0 billion between periods, from $75.9 billion at December 31, 2024 to $79.9 billion at September 30, 2025, driven by the $2.3 billion increase in advances and the $1.2 billion increase in long-term investments between periods. Asset composition remained relatively consistent from the end of 2024 through the third quarter of 2025, with advances continuing to comprise the largest asset on the balance sheet, increasing from 54.9 percent of total assets at December 31, 2024 to 55.1 percent at September 30, 2025. Total liabilities increased $3.9 billion from December 31, 2024 to September 30, 2025, which corresponded to the increase in assets, but the composition of debt shifted between periods. Consolidated obligation bonds and discount notes represented 79.5 percent and 20.5 percent of total consolidated obligations, respectively, at December 31, 2024 compared to 75.5 percent and 24.5 percent at September 30, 2025. This composition shift is due to increases in swapped fixed-rate non-callable discount notes, and declines in bonds. Total capital increased $47.5 million, or 1.2 percent, from December 31, 2024 to September 30, 2025 primarily due to an increase in retained earnings in excess of dividends paid, partially offset by a decrease in capital stock due to the decline in excess capital stock (see Table 32).

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Advances:* Advances are one of the primary ways we fulfill our mission of providing liquidity to our members and constituted the largest asset on our balance sheet at September 30, 2025 and December 31, 2024. Advance par value increased by $2.1 billion, or 5.2 percent, from $41.9 billion at December 31, 2024 to $44.0 billion at September 30, 2025 (see Table 21). Advance demand has remained strong among FHLBank membership, especially among large depository institutions and insurance companies. Increasing deposit balances and/or declining loan demand at depository members could soften advance demand in future periods. The composition of the advance portfolio remains concentrated in advances that either reprice or mature on a relatively short-term basis; overnight line of credit, adjustable-rate advances, and short-term fixed-rate advances were 59.9 percent of the portfolio at September 30, 2025 compared to 58.4 percent as of December 31, 2024. This increase is attributed primarily to growth of $2.8 billion, or 23.3 percent, in regular adjustable-rate advances and $0.9 billion, or 35.5 percent, in short-term fixed-rate advances.

We elect to swap a significant portion of fixed-rate advances with longer maturities to short-term indices to synthetically create adjustable-rate advances to manage interest rate risk. When coupled with the volume of our short-term fixed-rate and adjustable-rate advances, advances that effectively reprice at least every three months represented 97.7 percent and 95.9 percent of our total advance portfolio as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, 60.0 percent and 62.8 percent, respectively, of our members carried outstanding advance balances. Advance balances may be impacted by accommodative monetary policy changes, which typically occur in an operating environment with lower loan demand and higher deposit balances. Members also have access to other wholesale funding sources, which may impact the demand for advances on the basis of relative cost.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 21 summarizes advances outstanding by product (dollar amounts in thousands). An individual advance may be reclassified between periods (e.g., from fixed-rate callable advance to regular fixed-rate advance) due to the occurrence of a triggering event such as the passing of a call date.

**<u>Table 21</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| | **Dollar** | **Percent** | **Dollar** | **Percent** |
| *Line of Credit:* |  |  |  |  |
| &nbsp;&nbsp;Overnight line of credit<sup>1</sup> | $7040447 | 16.0% | $8829398 | 21.1% |
| *Adjustable-rate:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Standard advance products: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regular adjustable-rate advances | 14712600 | 33.4 | 11931497 | 28.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustable-rate callable advances | 985350 | 2.2 | 983500 | 2.3 |
| &nbsp;&nbsp;&nbsp;Standard housing and community development advances: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustable-rate callable advances | 19035 | 0.1 | 20535 | 0.1 |
| Total adjustable-rate term advances | 15716985 | 35.7 | 12935532 | 30.9 |
| *Fixed-rate:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Standard advance products: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term fixed-rate advances<sup>2</sup> | 3602593 | 8.2 | 2658109 | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regular fixed-rate advances | 13192041 | 30.0 | 12944095 | 30.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate callable advances | 52137 | 0.1 | 48302 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate putable advances | 3334400 | 7.6 | 3095200 | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate convertible advances |  |  | 20500 | 0.1 |
| &nbsp;&nbsp;&nbsp;Standard housing and community development advances: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regular fixed-rate advances | 188270 | 0.4 | 234266 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate callable advances | 458 |  | 458 |  |
| Total fixed-rate term advances | 20369899 | 46.3 | 19000930 | 45.5 |
| *Amortizing:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Standard advance products: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate amortizing advances | 715390 | 1.6 | 900980 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate callable amortizing advances | 15755 |  | 16585 |  |
| &nbsp;&nbsp;&nbsp;Standard housing and community development advances: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate amortizing advances | 165673 | 0.4 | 179156 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-rate callable amortizing advances | 11957 |  | 13111 |  |
| Total amortizing advances | 908775 | 2.0 | 1109832 | 2.5 |
| *TOTAL PAR VALUE* | $44036106 | 100.0% | $41875692 | 100.0% |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents fixed-rate line of credit advances with daily maturities.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents non-amortizing, non-prepayable loans with terms to maturity from 3 to 93 days.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 22 presents information on our five largest borrowers (dollar amounts in thousands). FHLBank is required by statute and regulation to obtain sufficient collateral from its member and non-member borrowers to fully secure all advances and other secured extensions of credit. We do not expect to incur any credit losses on these advances based on our rights to collateral with an estimated fair value in excess of the book value of these advances. We have not experienced a credit loss on an advance since the inception of FHLBank.

**<u>Table 22</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| **Borrower Name** | **09/30/2025** | **09/30/2025** | **12/31/2024** | **12/31/2024** |
| **Borrower Name** | **Advance<br>Par Value** | **Percent of Total**<br>**Advance Par** | **Advance<br>Par Value** | **Percent of Total**<br>**Advance Par** |
| MidFirst Bank | $11830000 | 26.9% | $10125000 | 24.2% |
| BOKF, N.A. | 3200000 | 7.3 | 3000000 | 7.2 |
| United of Omaha Life Insurance Co.  | 3173921 | 7.2 | 2747585 | 6.6 |
| Capitol Federal Savings Bank | 1950984 | 4.4 | 2164488 | 5.2 |
| First United Bank Trust Co. | 1937794 | 4.4 | 2230000 | 5.3 |
| *TOTAL* | $22092699 | 50.2% | $20267073 | 48.5% |

---

Table 23 presents the accrued interest income associated with the five borrowers with the highest interest income for the periods presented (dollar amounts in thousands).

**<u>Table 23</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** |
|<br>**Borrower Name** | **Advance Income** | **Percent of Total**<br>**Advance Income**<sup>1</sup> | **Advance Income** | **Percent of Total**<br>**Advance Income**<sup>1</sup> |
| MidFirst Bank | $143353 | 28.2% | $157983 | 27.5% |
| BOKF, N.A. | 57927 | 11.4 | 88391 | 15.4 |
| United of Omaha Life Insurance Co. | 29114 | 5.7 | 33478 | 5.8 |
| First United Bank & Trust | 22673 | 4.5 | 31449 | 5.5 |
| Security Life of Denver Insurance Co. | 22506 | 4.4 | 29820 | 5.2 |
| *TOTAL* | $275573 | 54.2% | $341121 | 59.4% |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Total advance income by borrower excludes: (1) changes in unrealized gains (losses) from qualifying fair value hedging relationships; (2) net interest settlements on derivatives hedging the advances; and (3) prepayment fees received.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 24 presents accrued interest income associated with the five borrowers with the highest interest income for the periods presented (dollar amounts in thousands).

**<u>Table 24</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **09/30/2025** | **09/30/2025** | **09/30/2024** | **09/30/2024** |
|<br>**Borrower Name** | **Advance Income** | **Percent of Total**<br>**Advance Income**<sup>1</sup> | **Advance Income** | **Percent of Total**<br>**Advance Income**<sup>1</sup> |
| MidFirst Bank | $407877 | 27.4% | $424528 | 25.7% |
| BOKF, N.A. | 177183 | 11.9 | 282287 | 17.1 |
| United of Omaha Life Insurance Co. | 87760 | 5.9 | 91799 | 5.6 |
| Security Life of Denver Insurance Co. | 69997 | 4.7 | 84945 | 5.1 |
| First United Bank & Trust Co. | 69948 | 4.7 | 80145 | 4.9 |
| *TOTAL* | $812765 | 54.6% | $963704 | 58.4% |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Total advance income by borrower excludes: (1) changes in unrealized gains (losses) from qualifying fair value hedging relationships; (2) net interest settlements on derivatives hedging the advances; and (3) prepayment fees received.

*MPF Program:* The MPF Program is a secondary mortgage market alternative for our members, predominately utilized by the smaller institutions in our district. We participate in the MPF Program through the MPF Provider, a division of FHLBank Chicago. Under the MPF Program, participating members can sell us fixed-rate conventional and government residential mortgage loans.

The mortgage loan portfolio increased $0.4 billion between periods, from $8.9 billion at December 31, 2024 to $9.3 billion at September 30, 2025. As mortgage interest rates decline, we generally expect increases in prepayments and new originations of mortgage loans. When rates increase, repayments and originations typically decline. Acquisition activity continues to outpace prepayments, attributable to the elevated interest rate environment and origination activity at larger average loan amounts. Despite the increase in the portfolio, net mortgage loans as a percentage of total assets decreased 0.2 percent, from 11.8 percent as of December 31, 2024 to 11.6 percent as of September 30, 2025 due to the increase in total assets. The principal amount of new mortgage loans acquired and held on our balance sheet from our PFIs during the nine months ended September 30, 2025 was $1.1 billion.

As of September 30, 2025, our top five PFIs, in the aggregate, accounted for 19.8 percent of our mortgage loans held for portfolio, compared to 19.6 percent at December 31, 2024.

Future growth in the MPF portfolio is a function of asset size and composition. Most notably, growth in the balance of advances increases our total assets and capital level, which allows the balance of mortgage loans to increase while maintaining our targeted Acquired Member Assets (AMA) risk tolerance. Other factors that may influence future growth in our mortgage loans held for portfolio include: (1) the level of interest rates and the shape of the yield curve; (2) the mortgage loan origination volume of current PFIs; (3) refinancing activity; (4) the relative competitiveness of MPF pricing to the prices offered by other buyers of residential mortgage loans; (5) a PFI's level of excess risk-based capital relative to the required risk-based capital charge associated with the PFI's credit enhancement obligations on MPF mortgage loans; and (6) the number of new and delivering PFIs.

Two indications of credit quality are scores provided by Fair Isaac Corporation (FICO<sup>®</sup>) and loan-to-value (LTV) ratios. FICO is a widely used credit industry indicator to assess borrower credit quality with scores typically ranging from 300 to 850 with the low end of the scale indicating greater credit risk. The MPF Program requires a minimum FICO score of 620 for all conventional loans. LTV is a primary variable in credit performance. Generally speaking, a higher LTV ratio means greater risk of loss in the event of a default and also means higher loss severity. The weighted average FICO score and LTV recorded at origination for conventional mortgage loans outstanding as of September 30, 2025 was 750 and 75.4 percent, respectively. See Note 5 of the Notes to Financial Statements under Part I, Item 1 for additional information regarding credit quality indicators.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Allowance for Credit Losses on Mortgage Loans Held for Portfolio –* The allowance for credit losses on mortgage loans decreased $348.0 thousand from December 31, 2024 to September 30, 2025. Delinquencies of conventional loans remained at low levels relative to the portfolio, at 1.1 percent of the amortized cost of total conventional loans at both September 30, 2025 and December 31, 2024. We believe that policies and procedures are in place to effectively manage the credit risk on mortgage loans held for portfolio. See Note 5 of the Notes to Financial Statements under Part I, Item 1 for a summary of the allowance for credit losses on mortgage loans as well as payment status and other delinquency statistics for our mortgage loan portfolio.

*Investments:* Investments are used to manage interest rate and duration risk, enhance income, and provide liquidity and primary and secondary market support for the U.S. housing securities market. Total investments increased $1.2 billion from December 31, 2024 to September 30, 2025 primarily driven by an increase in multifamily agency commercial MBS securities.

*Liquidity Portfolio –* Our liquidity portfolio is used to provide funds for our members, maintain liquidity, meet other financial obligations such as debt servicing, and enhance income. It is comprised of short-term investments, primarily interest-bearing deposits, reverse repurchase agreements, Federal funds sold, and certificates of deposit. Fluctuations in the liquidity portfolio reflect the impact of regulatory requirements, anticipated member liquidity needs, and the timing of paydowns, maturities, and investment opportunities on liquidity management practices.

Within our portfolio of short-term liquidity investments, counterparty credit risk arises from unsecured exposures. Our short-term unsecured credit investments have maturities generally ranging from overnight to three months, and may include the following types:

*• Interest-bearing deposits.* Unsecured deposits that earn interest.

*• Federal funds sold.* Unsecured loans of reserve balances at the Federal Reserve Banks between financial institutions that are made on either an overnight or term basis, but typically made on an overnight basis.

*• Certificates of deposit.* Unsecured negotiable promissory notes issued by banks and payable to the bearer at maturity.

Table 25 presents the carrying value of our unsecured credit exposure with private counterparties by investment type (in thousands). The unsecured investment credit exposure presented may not reflect the average or maximum exposure during the period as the balances presented reflect the balances at period end.

**<u>Table 25</u>**

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| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Interest-bearing deposits | $2310435 | $2142391 |
| Federal funds sold | 4650000 | 3575000 |
| *TOTAL UNSECURED INVESTMENT CREDIT EXPOSURE*<sup>1</sup> | $6960435 | $5717391 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes unsecured investment credit exposure to U.S. government, U.S. government agencies, instrumentalities, GSEs and supranational entities and does not include related accrued interest.

We actively monitor our credit exposures and the credit quality of our counterparties, including an assessment of each counterparty's financial performance, capital adequacy, sovereign support and the current market perceptions of the counterparties. General macro-economic, political and market conditions may also be considered when deciding on unsecured exposure. As a result, we may further limit existing exposures.

We manage our credit risk by conducting pre-purchase credit due diligence and ongoing surveillance described previously and generally investing in unsecured investments of highly-rated counterparties. We may extend unsecured credit to qualified members by investing in overnight Federal funds issued by them. As of September 30, 2025, all unsecured investments were rated as investment grade based on NRSROs (see Table 28).

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 26 presents the amount of our unsecured investment credit exposure by remaining contractual maturity and by the domicile of the counterparty or the domicile of the counterparty's parent for U.S. branches and agency offices of foreign commercial banks as of September 30, 2025 (in thousands). We also mitigate the credit risk on investments by purchasing instruments that have short-term maturities.

**<u>Table 26</u>**

---

| | |
|:---|:---|
| **Domicile of Counterparty** | **Overnight** |
| Domestic | $2310435 |
| U.S. Branches and agency offices of foreign commercial banks: |  |
| &nbsp;&nbsp;Canada  | 1850000 |
| &nbsp;&nbsp;Australia | 1150000 |
| &nbsp;&nbsp;Sweden | 750000 |
| &nbsp;&nbsp;Germany | 400000 |
| &nbsp;&nbsp;United Kingdom | 300000 |
| &nbsp;&nbsp;Finland | 200000 |
| Total U.S. Branches and agency offices of foreign commercial banks | 4650000 |
| *TOTAL UNSECURED INVESTMENT CREDIT EXPOSURE*<sup>1</sup> | $6960435 |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes unsecured investment credit exposure to U.S. government, U.S. government agencies, instrumentalities, GSEs and supranational entities, and does not include related accrued interest.

Unsecured credit exposure continues to be conservatively placed. In addition, we anticipate continued future investment in reverse repurchase agreements, which are secured investments. To enhance our liquidity position, we classify our unsecured short-term investment securities in our trading portfolio, which allows us to sell these securities if necessary.

*Long-term investments* – Our long-term investment portfolio consists primarily of GSE MBS and U.S. Treasury obligations. Our Risk Management Policy (RMP) restricts the acquisition of investments to highly rated long-term securities. Generally, fixed-rate U.S. Treasury obligations are classified as either trading securities and economically swapped to variable rates or classified as available-for-sale securities and swapped to variable rates in qualifying fair value hedging relationships. In addition to serving as excellent collateral, U.S. Treasury obligations also help satisfy regulatory liquidity requirements. We also purchase fixed-rate securities for duration and interest rate risk management.

According to FHFA regulation, no additional MBS purchases may be made if the aggregate value of our MBS exceeds 300 percent of our regulatory capital. Further, quarterly increases in holdings of MBS are restricted to no more than 50 percent of regulatory capital. As of September 30, 2025, the aggregate value of our MBS portfolio represented 275 percent of our regulatory capital. We are below our regulatory threshold primarily due to an increase in regulatory capital despite increased MBS purchases in recent periods. We expect to be below our regulatory limit in the near-term but continue to remain opportunistic about future MBS purchases.

*Major Security Types –* Securities for which we have the ability and intent to hold to maturity are classified as held-to-maturity securities and recorded at carrying value, which is the net total of par, premiums, and discounts. We classify certain investments as trading or available-for-sale securities and carry them at fair value, generally for liquidity purposes, to provide a fair value offset to the gains (losses) on the interest rate swaps associated with swapped securities, and for asset/liability management purposes. Liquidity or other asset/liability management strategies may require periodic sale of these securities but they are not actively traded; most often, they are held until maturity or call date. Securities acquired as asset/liability management tools to manage duration risk, which may be sold when the duration exposure is within risk tolerances, are classified as trading or available-for-sale securities. Changes in the fair values of investments classified as trading are recorded through other income and the original premiums/discounts on these investments are not amortized.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

See Note 3 of the Notes to Financial Statements under Part I, Item 1 of this quarterly report for additional information on our different investment classifications including the types of securities held under each classification. The carrying values by contractual maturities of our investments as of September 30, 2025 are summarized by security type in Table 27 (dollar amounts in thousands) with certain weighted average yield metrics along with carrying values as of December 31, 2024. Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or yield maintenance fees.

**<u>Table 27</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **12/31/2024** |
| | **Due in<br>one year<br>or less** | **Due after**<br>**one year**<br>**through five years** | **Due after**<br>**five years**<br>**through 10 years** | **Due after<br>10 years** | **Carrying<br>Value** | **Carrying<br>Value** |
| Trading securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $— | $— | $— | $— | $— | $17884 |
| &nbsp;&nbsp;&nbsp;GSE MBS |  | 73463 | 4475 | 3301 | 81239 | 422079 |
| *Total trading securities* |  | 73463 | 4475 | 3301 | 81239 | 439963 |
| Available-for-sale securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | 1571002 | 1554139 |  |  | 3125141 | 3237223 |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS |  |  |  | 64102 | 64102 | 77263 |
| &nbsp;&nbsp;&nbsp;GSE MBS | 197814 | 2848970 | 5475702 | 2864800 | 11387286 | 9718954 |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations |  |  | 34250 | 23648 | 57898 | 24179 |
| *Total available-for-sale securities* | 1768816 | 4403109 | 5509952 | 2952550 | 14634427 | 13057619 |
| Held-to-maturity securities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations |  |  | 29755 |  | 29755 | 30895 |
| &nbsp;&nbsp;&nbsp;GSE MBS |  | 20008 | 2436 | 140881 | 163325 | 188931 |
| *Total held-to-maturity securities* |  | 20008 | 32191 | 140881 | 193080 | 219826 |
| *Total securities* | 1768816 | 4496580 | 5546618 | 3096732 | 14908746 | 13717408 |
| Interest-bearing deposits | 2310963 |  |  |  | 2310963 | 2142423 |
| Federal funds sold | 4650000 |  |  |  | 4650000 | 3575000 |
| Securities purchased under agreements to resell | 3950000 |  |  |  | 3950000 | 5150000 |
| *TOTAL INVESTMENTS* | $12679779 | $4496580 | $5546618 | $3096732 | $25819709 | $24584831 |
| Weighted average yields<sup>1</sup>: |  |  |  |  |  |  |
| Available-for-sale securities | 2.38% | 3.24% | 4.45% | 4.69% |  |  |
| Held-to-maturity securities | —% | 3.06% | 2.60% | 1.71% |  |  |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>The weighted average yields are calculated as the sum of each debt security using the period end balances multiplied by the coupon rate adjusted by the impact of amortization and accretion of premiums and discounts, divided by the total debt securities in the applicable portfolio. The result is then multiplied by 100 to express it as a percentage.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Securities Ratings –* Tables 28 and 29 present the carrying value of our investments by rating as of September 30, 2025 and December 31, 2024 (in thousands). The ratings presented are the lowest ratings available for the security, issuer, or counterparty based on NRSROs, where available. Some counterparties for collateralized overnight borrowing are not rated by an NRSRO because they are not issuers of debt or are otherwise not required to be rated by an NRSRO. We also utilize other credit quality factors when analyzing potential investments including, but not limited to, collateral performance, marketability, asset class or sector considerations, local and regional economic conditions, and/or the financial health of the underlying issuer.

**<u>Table 28</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> |
| | **Investment Grade** | **Investment Grade** | **Investment Grade** | **Unrated** | **Total** |
| | **Triple-A** | **Double-A** | **Single-A** | **Unrated** | **Total** |
| Interest-bearing deposits<sup>2</sup> | $— | $481528 | $1829435 | $— | $2310963 |
| Federal funds sold<sup>2</sup> |  | 2100000 | 2550000 |  | 4650000 |
| Securities purchased under agreements to resell<sup>3</sup> |  | 750000 | 800000 | 2400000 | 3950000 |
| Investment securities: |  |  |  |  |  |
| Non-mortgage-backed securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations |  | 3125141 |  |  | 3125141 |
| &nbsp;&nbsp;State or local housing agency obligations | 87653 |  |  |  | 87653 |
| &nbsp;&nbsp;*Total non-mortgage-backed securities* | 87653 | 3125141 |  |  | 3212794 |
| Mortgage-backed securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS |  | 64102 |  |  | 64102 |
| &nbsp;&nbsp;&nbsp;GSE MBS |  | 11631850 |  |  | 11631850 |
| &nbsp;&nbsp;&nbsp;*Total mortgage-backed securities* |  | 11695952 |  |  | 11695952 |
| *TOTAL INVESTMENTS* | $87653 | $18152621 | $5179435 | $2400000 | $25819709 |

---

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Investment amounts represent the carrying value and do not include related accrued interest receivable of $47.0 million at September 30, 2025.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts include unsecured credit exposure with overnight maturities.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts represent collateralized overnight borrowings.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 29</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> | **Carrying Value**<sup>1</sup> |
| | **Investment Grade** | **Investment Grade** | **Investment Grade** | **Unrated** | **Total** |
| | **Triple-A** | **Double-A** | **Single-A** | **Unrated** | **Total** |
| Interest-bearing deposits<sup>2</sup> | $— | $437032 | $1705391 | $— | $2142423 |
| Federal funds sold<sup>2</sup> |  | 1675000 | 1900000 |  | 3575000 |
| Securities purchased under agreements to resell<sup>3</sup> |  | 2500000 | 250000 | 2400000 | 5150000 |
| Investment securities: |  |  |  |  |  |
| Non-mortgage-backed securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations |  | 3237223 |  |  | 3237223 |
| &nbsp;&nbsp;&nbsp;GSE debentures |  | 17884 |  |  | 17884 |
| &nbsp;&nbsp;State or local housing agency obligations | 55074 |  |  |  | 55074 |
| &nbsp;&nbsp;*Total non-mortgage-backed securities* | 55074 | 3255107 |  |  | 3310181 |
| Mortgage-backed securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligation MBS |  | 77263 |  |  | 77263 |
| &nbsp;&nbsp;&nbsp;GSE MBS |  | 10329964 |  |  | 10329964 |
| &nbsp;&nbsp;&nbsp;*Total mortgage-backed securities* |  | 10407227 |  |  | 10407227 |
| *TOTAL INVESTMENTS* | $55074 | $18274366 | $3855391 | $2400000 | $24584831 |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Investment amounts represent the carrying value and do not include related accrued interest receivable of $43.3 million at December 31, 2024.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts include unsecured credit exposure with overnight maturities.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts represent collateralized overnight borrowings.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

Table 30 details interest rate payment terms for the carrying value of our investment securities as of September 30, 2025 and December 31, 2024 (in thousands). We generally manage the interest rate risk associated with our fixed-rate trading and available-for-sale securities by entering into interest rate swaps that convert the investment's fixed rate to a variable-rate index. For more information on our interest rate swaps, see Tables 36 and 37 under Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk."

**<u>Table 30</u>**

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| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Trading securities: |  |  |
| Non-mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | $— | $17884 |
| *Non-mortgage-backed securities* |  | 17884 |
| Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | 73462 | 412977 |
| &nbsp;&nbsp;&nbsp;Variable-rate | 7777 | 9102 |
| *Mortgage-backed securities* | 81239 | 422079 |
| *Total trading securities* | 81239 | 439963 |
| Available-for-sale securities: |  |  |
| Non-mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | 3183039 | 3261402 |
| *Non-mortgage-backed securities* | 3183039 | 3261402 |
| Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | 7192201 | 4996621 |
| &nbsp;&nbsp;&nbsp;Variable-rate | 4259187 | 4799596 |
| *Mortgage-backed securities* | 11451388 | 9796217 |
| *Total available-for-sale securities* | 14634427 | 13057619 |
| Held-to-maturity securities: |  |  |
| Non-mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Variable-rate | 29755 | 30895 |
| *Non-mortgage-backed securities* | 29755 | 30895 |
| Mortgage-backed securities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | 11347 | 15915 |
| &nbsp;&nbsp;&nbsp;Variable-rate | 151978 | 173016 |
| *Mortgage-backed securities* | 163325 | 188931 |
| *Total held-to-maturity securities* | 193080 | 219826 |
| *TOTAL* | $14908746 | $13717408 |

---

*Deposits:* Deposits are generally an insignificant source of funding. Total deposits increased $57.0 million from December 31, 2024 to September 30, 2025 due to an increase in demand and term deposits, partially offset by a decrease in overnight deposits. The level of deposits is driven by member demand for deposit products, which in turn is a function of the liquidity position of members. Factors that influence deposit levels include turnover in member investment and loan portfolios, changes in members' customer deposit balances, changes in members' demand for liquidity, and our deposit pricing as compared to other short-term market rates. Fluctuations in deposits have little impact on our ability to obtain liquidity. Specific disclosures about deposits that exceed Federal Deposit Insurance Corporation (FDIC) limits have been omitted as deposits are not insured by the FDIC. Historically, we have had stable and ready access to the capital markets through consolidated obligations and can replace any reduction in deposits with similarly or even lower priced borrowings.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

*Consolidated Obligations:* Consolidated obligations are the joint and several debt obligations of the FHLBanks and consist of bonds and discount notes. Consolidated obligations represent the primary source of liabilities we use to fund advances, mortgage loans and investments. As noted under Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk," we use debt with a variety of maturities and option characteristics to manage our interest rate risk profile and maintain sufficient levels of liquidity. We make use of derivative transactions, executed in conjunction with specific consolidated obligation debt issues, to synthetically structure funding terms and costs.

Table 31 presents the carrying value of consolidated obligation bonds and discounts notes as of September 30, 2025 and December 31, 2024 (in thousands).

**<u>Table 31</u>**

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| | | |
|:---|:---|:---|
| | **09/30/2025** | **12/31/2024** |
| Bonds: |  |  |
| &nbsp;&nbsp;Par value | $56047910 | $56060550 |
| &nbsp;&nbsp;Premiums | 10527 | 12044 |
| &nbsp;&nbsp;Discounts | (3438) | (3054) |
| &nbsp;&nbsp;Concession fees | (12724) | (12085) |
| &nbsp;&nbsp;Hedging adjustments | (71318) | (192949) |
| *Total bonds* | 55970957 | 55864506 |
| Discount Notes: |  |  |
| &nbsp;&nbsp;Par value | 18295912 | 14518446 |
| &nbsp;&nbsp;Discounts | (160823) | (101891) |
| &nbsp;&nbsp;Concession fees | (370) | (345) |
| &nbsp;&nbsp;Hedging adjustments | 850 | 837 |
| *Total discount notes* | 18135569 | 14417047 |
| *TOTAL* | $74106526 | $70281553 |

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Total consolidated obligations increased $3.8 billion, or 5.4 percent, from December 31, 2024 to September 30, 2025 aligning with the increase in total assets. The distribution between consolidated obligation bonds and discount notes shifted between periods, from 79.5 percent and 20.5 percent, respectively, at December 31, 2024 compared to 75.5 percent and 24.5 percent at September 30, 2025, respectively, mostly due to an increase in discount notes and a decrease in short-term variable rate bonds, partially offset by a slight increase in swapped fixed-rate callable bonds. Callable bonds outstanding increased from $17.0 billion at December 31, 2024 to $17.2 billion at September 30, 2025. Callable bonds are typically fixed or structured rate debt that pay higher coupons to investors because of the optionality held by the issuer. When a swap is called by the counterparty in a swapped callable bond transaction, we call the hedged bond. Callable bonds provide us with options to replace the bonds at lower costs if interest rates decline. Our funding mix generally is driven by asset composition, but we may also shift our debt composition as a result of market conditions that impact the cost of unswapped consolidated obligations and the cost of consolidated obligations swapped or indexed to SOFR or Overnight Index Swap (OIS). For additional information on market trends impacting the cost of issuing debt, see "Financial Market Trends", "Liquidity and Capital Resources – Liquidity – Sources of Liquidity" and "Risk Management – Interest Rate Risk Management" under this Item 2.

*Derivatives:* We use derivatives to reduce the interest-rate sensitivity of our assets and liabilities. We also use derivatives in our overall interest rate risk management to adjust the interest rate sensitivity of consolidated obligations to approximate more closely the interest rate sensitivity of assets, including advances, investments and mortgage loans. We also use derivatives to manage embedded options in assets and liabilities, to hedge the market value of existing assets, liabilities, and anticipated transactions, to hedge the duration risk of prepayable instruments, to mitigate adverse impacts to earnings from the contraction or extension of certain assets (e.g., advances or mortgage assets) and liabilities, to hedge the basis risk between adjustable-rate indices, and to reduce funding costs as discussed below. Generally, we designate derivatives as a fair value hedge of an underlying financial instrument or firm commitment. Economic hedges are defined as derivatives hedging specific or non-specific underlying assets, liabilities, or firm commitments that do not qualify for hedge accounting, but are acceptable hedging strategies under our RMP for asset/liability management.

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All derivatives are marked to fair value with any associated accrued interest, and netted by clearing agent by clearinghouse or by counterparty and offset by the fair value of any swap cash collateral received or delivered where the legal right of offset has been determined, and included on the Statements of Condition as an asset when there is a net fair value gain or as a liability when there is a net fair value loss. Fair values of our derivatives primarily fluctuate as the swap interest rate curves fluctuate. Other factors such as implied price/interest rate volatility, the shape of the SOFR and OIS interest rate curves, and time decay can also drive the market price for derivatives.

The notional amount of total derivatives outstanding increased by $4.9 billion, from $52.0 billion at December 31, 2024 to $56.9 billion at September 30, 2025, primarily due to increases in interest rate swaps hedging discount notes, available-for-sale MBS, and bonds, partially offset by decreases in interest rate caps hedging duration and convexity. These changes correspond with the changes in balance sheet composition as previously discussed. For additional information regarding the types of derivative instruments and risks hedged, see Tables 36 and 37 under Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk.

**<u>Liquidity and Capital Resources</u>**

We maintain high levels of liquidity to achieve our mission of serving as a dependable and economical funding source for our members and housing associates. As part of fulfilling our mission, we also maintain minimum liquidity requirements in accordance with certain FHFA regulations and guidelines and in accordance with policies established by management and the board of directors. Our structure as a member-owned cooperative and business model enables us to manage the levels of our assets, liabilities, and capital in response to changes in member credit demand, membership composition, and market conditions. As such, assets and liabilities utilized for liquidity purposes can vary significantly in the normal course of business due to the amount and timing of cash flows as a result of these factors.

*Sources and Uses of Liquidity* – A primary source of our liquidity is the issuance of consolidated obligations. The capital markets traditionally have treated FHLBank obligations as U.S. government agency debt. As a result, even though the U.S. government does not guarantee FHLBank debt, we generally have comparatively stable access to funding at relatively favorable spreads to U.S. Treasury rates. We are primarily and directly liable for our portion of consolidated obligations (i.e., those obligations issued on our behalf). In addition, we are jointly and severally liable with the other FHLBanks for the payment of principal and interest on the consolidated obligations of all FHLBanks. Our uses of liquidity primarily include repaying called and maturing consolidated obligations for which we are the primary obligor, issuing advances, and purchasing investments and mortgage loans. We also use liquidity to repay member deposits, pledge collateral to derivative counterparties, and redeem or repurchase capital stock. Our other sources of liquidity include our short-term liquidity portfolio, deposit inflows, repayments of advances and mortgage loans, maturing investments, trading and available-for-sale investments, other secured and unsecured borrowings, interest income, and sales of unencumbered assets.

During the nine months ended September 30, 2025, proceeds from the issuance of bonds and discount notes (net of premiums and discounts) were $61.0 billion and $441.0 billion, respectively, compared to $53.4 billion and $462.5 billion for the nine months ended September 30, 2024. The difference between the proceeds from bonds and discount notes reflects the cumulative effect of issuing discount notes. High demand for Agency debt has kept the spread to U.S. Treasury obligations relatively narrow. Our ability to issue debt remains robust, but volatility in the capital markets can impact the demand for and cost of debt issued by the FHLBanks.

Our liquidity portfolio consists of cash, certificates of deposit, short-term liquidity investments, and long-term investments with remaining maturities of one year or less. Short-term liquidity investments include Federal funds sold, interest-bearing demand deposits, and reverse repurchase agreements. The maturities of our short-term liquidity investments are structured to provide periodic cash flows to support our ongoing liquidity needs. Our liquidity portfolio increased between periods, from $11.9 billion as of December 31, 2024 to $12.7 billion as of September 30, 2025.

Investment securities on our balance sheet are also a source of potential liquidity. U.S. Treasury obligations, GSE debentures, and GSE MBS can be sold or pledged as collateral for financing in the securities repurchase agreement market. In addition to balance sheet sources of liquidity, we have established lines of credit with numerous counterparties in the Federal funds market as well as with the other FHLBanks. We expect to maintain a sufficient level of liquidity for the foreseeable future.

During the nine months ended September 30, 2025, advance disbursements totaled $190.5 billion compared to $199.8 billion for the prior year period which reflects a decrease in short-term advance utilization compared to the prior year period. Periods with high short-term advance utilization typically have more frequent maturity and renewal activity, which results in higher cumulative disbursement and maturity amounts. Investment purchases (excluding overnight investments) totaled $2.3 billion in the nine months ended September 30, 2025 compared to $1.8 billion for the same period in 2024. Payments on maturing and retired consolidated obligation bonds and discount notes were $61.0 billion and $437.3 billion, respectively, for the nine months ended September 30, 2025 compared to $46.2 billion and $465.9 billion for the prior year period.

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*Capital:* Total capital increased $47.5 million, or 1.2 percent, from December 31, 2024 to September 30, 2025 primarily due to an increase in retained earnings in excess of dividends paid, partially offset by a decrease in excess capital stock (see Table 32). We strive to manage our average capital ratio above our minimum regulatory and RMP requirements in an effort to ensure that we have the ability to issue additional consolidated obligations should the need arise. Excess capital capacity ensures we are able to meet the liquidity needs of our members and/or repurchase excess stock either upon the submission of a redemption request by a member or at our discretion for balance sheet or capital management purposes.

Our activity-based stock purchase requirements are consistent with our cooperative structure; members' stock ownership requirements and the dollar amount of dividends paid to members generally increase as their activities with us increase. To the extent that a member's asset-based stock purchase requirement is insufficient to cover the member's activity-based stock purchase requirement, the member is required to purchase Class B Common Stock. We believe the value of our products and services is enhanced by dividend yields. Factors that affect members' willingness to enter into activity with us and purchase additional required activity-based stock include, but are not limited to, our dividend rates, the risk-based capital weighting of our capital stock, and alternative investment or borrowing opportunities available to our members.

Table 32 provides a summary of member capital requirements under our current capital plan as of September 30, 2025 and December 31, 2024 (in thousands):

**<u>Table 32</u>**

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| | | |
|:---|:---|:---|
| **Requirement** | **09/30/2025** | **12/31/2024** |
| Asset-based (Class A Common Stock only) | $188653 | $187495 |
| Activity-based (additional Class B Common Stock)<sup>1</sup> | 2138157 | 2030000 |
| *Total Required Stock*<sup>2</sup> | 2326810 | 2217495 |
| Excess Stock (Class A and B Common Stock) | 234478 | 417335 |
| *Total Regulatory Capital Stock*<sup>2</sup> | $2561288 | $2634830 |
| Activity-based Requirements*:* |  |  |
| Advances<sup>3</sup> | $1977175 | $1879698 |
| Letters of credit | 15021 | 18857 |
| AMA assets (mortgage loans)<sup>4</sup> | 275459 | 265301 |
| *Total Activity-based Requirement* | 2267655 | 2163856 |
| Asset-based Requirement (Class A Common Stock) not supporting member activity<sup>1</sup> | 59155 | 53639 |
| *Total Required Stock*<sup>2</sup> | $2326810 | $2217495 |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Class A Common Stock, up to a member's asset-based stock requirement, will be used to satisfy a member's activity-based stock requirement before any Class B Common Stock is purchased by the member.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes mandatorily redeemable capital stock.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Advances to housing associates have no activity-based requirements because housing associates cannot own FHLBank stock.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Non-members previously required to purchase AMA activity-based stock are subject to the stock requirement in place at the time their membership ended as long as there are unpaid principal balances outstanding.

We are subject to various capital requirements under provisions of the GLB Act, the FHFA's capital structure regulation and our RMP. See Item 1 – "Capital, Capital Rules and Dividends" in our annual report on Form 10-K for details on the various capital requirements. We have been in compliance with each of the capital rules and requirements at all times, as applicable, since the implementation of our capital plan. See Note 10 of the Notes to Financial Statements under Part I, Item 1 for additional information and compliance as of September 30, 2025 and December 31, 2024.

*Capital Distributions:* Dividends may be paid in cash or capital stock as authorized by our board of directors. Quarterly dividends can be paid out of current and previous unrestricted retained earnings, subject to FHFA regulation and our capital plan.

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Dividends paid to members totaled $170.1 million for the nine months ended September 30, 2025 compared to $170.4 million for the same period in the prior year. The weighted average dividend rate was 8.65 percent and 8.68 percent for the three and nine months ended September 30, 2025, respectively, which represented a dividend payout ratio of 60.9 percent and 59.1 percent over the same respective periods. The weighted average dividend rate was 8.90 percent and 8.82 percent for the three and nine months ended September 30, 2024, respectively, which represented a dividend payout ratio of 58.0 percent and 52.7 percent, respectively. The dividend payout ratio represents dividends declared and paid during a period as a percentage of net income for the period, although FHFA regulation requires dividends be paid out of known income prior to the declaration date. For example, dividends declared and paid in September 2025 were based on income earned during the three months ended August 31, 2025. (See Part I, Item 1 – "Business – Capital, Capital Rules and Dividends" in our annual report on Form 10-K for the year ended December 31, 2024 for other factors that contribute to the level of dividends paid.)

In accordance with our capital plan, we must pay holders of Class A Common Stock the dividend parity threshold (DPT) rate before paying a higher rate to holders of Class B Common Stock. The DPT is a dividend rate expressed as a percentage per annum up to which the dividends paid per share on Class A Common Stock and Class B Common Stock must be equal. When the overnight Federal funds effective rate is below 2.00 percent, the DPT is zero for that dividend period (*i.e.*, the DPT is floored at zero). Table 33 presents the dividend rates per annum paid on capital stock under our capital plan for the quarterly periods listed below:

**<u>Table 33</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Applicable Rate per Annum** | **09/30/2025** | **06/30/2025** | **03/31/2025** | **12/31/2024** | **09/30/2024** |
| Class A Common Stock | 4.25% | 4.25% | 4.50% | 4.75% | 4.75% |
| Class B Common Stock | 9.25 | 9.25 | 9.50 | 9.50 | 9.50 |
| Weighted Average<sup>1</sup> | 8.65 | 8.59 | 8.81 | 8.84 | 8.90 |
| *Dividend Parity Threshold:* |  |  |  |  |  |
| Average effective overnight Federal funds rate | 4.30% | 4.33% | 4.33% | 4.66% | 5.27% |
| Spread to index | (2.00) | (2.00) | (2.00) | (2.00) | (2.00) |
| *TOTAL (floored at zero percent)* | 2.30% | 2.33% | 2.33% | 2.66% | 3.27% |

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<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Weighted average dividend rates are dividends paid in cash and stock on both classes of stock divided by the average of capital stock eligible for dividends.

Historically, dividend rates have moved directionally with short-term interest rates. Market conditions and movements in short-term interest rates can be unpredictable, and adverse market conditions may result in lower dividend rates in future quarters. If there is a change to the DPT in the future, the capital plan requires that we provide members notice of that change 90 days prior to a dividend payment.

**<u>Risk Management</u>**

Active risk management continues to be an essential part of our operations and a key determinant of our ability to maintain earnings to return an acceptable dividend to our members, support our affordable housing mission, and meet retained earnings thresholds. See Part II, Item 7 – "Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management" in our Form 10-K for information on our enterprise risk management program. A separate discussion of market risk is included under Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk."

*Interest Rate Risk Management:* Interest rate risk is the risk that relative and absolute changes in interest rates may adversely affect an institution's financial condition and performance. The goal of an interest rate risk management strategy is not necessarily to eliminate interest rate risk, but to manage it by setting, and operating within, an appropriate framework and limits. We generally manage interest rate risk by acquiring and maintaining a portfolio of assets and liabilities and entering into related derivative transactions to limit the expected mismatches in duration and market value of equity (MVE) sensitivity. For additional information on interest rate risk measurement, see Part I, Item 3 – "Quantitative and Qualitative Disclosures About Market Risk."

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**<u>Recently Issued Accounting Standards</u>**

For a discussion of recently issued accounting standards, see Note 2 of the Notes to Financial Statements under Part I, Item 1 – "Financial Statements".

**<u>Legislative and Regulatory Developments</u>**

Significant regulatory actions and developments for the period covered by this report not previously disclosed are summarized below.

FHLBank is subject to various legal and regulatory requirements and priorities. Certain actions by the current federal executive administration are changing the regulatory environment, including regulatory priorities and areas of focus, such as deregulation, which have affected, and will likely continue to affect, certain aspects of FHLBank's business operations, and could impact FHLBank's financial condition, results of operations and reputation.

As of the third quarter of 2025, the FHFA has rescinded the regulatory interpretation that had imposed detailed criteria on FHLBank acceptance of municipal securities as eligible collateral and outlined how to determine and verify eligibility of municipal bonds. We are reviewing this rescission and assessing the potential impact on our collateral eligibility policies. In addition, the FHFA has withdrawn two proposed rules published in 2024: (1) the proposed rule published in November 2024 that would have amended regulations addressing boards of directors and overall corporate governance of the FHLBanks and the Office of Finance; and (2) the proposed rule published in October 2024 that would have amended FHLBank's capital requirements by modifying limits on FHLBank's extensions of unsecured credit. In October 2025, the FHFA rescinded several advisory bulletins and certain technical guidance documents. We are reviewing these rescissions and assessing any potential impact they may have on FHLBank and its policies and procedures.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory actions and their ultimate impact on FHLBank and the FHLBank System. We continue to monitor these actions as they evolve and to evaluate their potential impact on FHLBank. For further discussion of related risks, see Part I, Item 1A. –"Risk Factors" in FHLBank's Form 10-K for the year ended December 31, 2024.

**Item 3: Quantitative and Qualitative Disclosures About Market Risk**

Market risk is the risk that changes in market value may adversely affect our financial condition and performance. Interest rate risk is a component of market risk and represents our most significant market risk exposure. Interest rate risk is the risk that the market value of our asset, liability, and derivative portfolios will be negatively impacted by interest rate volatility or that earnings will be affected significantly by interest rate changes. We manage interest rate risk through the characteristics of our portfolio of assets and liabilities and by using derivative transactions to limit duration mismatches and reduce MVE sensitivity. Matching the duration of assets with the duration of liabilities funding those assets is accomplished through the use of different debt maturities and embedded option characteristics, as well as the use of derivatives, primarily interest rate swaps, interest rate caps, and interest rate floors. Interest rate swaps increase the flexibility of our funding alternatives by providing cash flows or characteristics that might not be as readily available or cost-effective if obtained in the standard GSE debt market.

*Duration of Equity:* Duration of equity (DOE) aggregates the estimated sensitivity of market value for each of our financial assets and liabilities to changes in interest rates. A positive DOE results when the duration of assets and designated derivatives is greater than the duration of liabilities and designated derivatives, indicating a degree of interest rate risk exposure in a rising interest rate environment. A negative DOE results in the opposite scenario, indicating a degree of interest rate risk exposure in a declining interest rate environment. Higher DOE numbers, whether positive or negative, indicate greater volatility of market value in response to changing interest rates. A decline in market value does not necessarily translate directly into a decline in income, especially for entities that do not trade financial instruments. Changes in market value may indicate trends in income over longer periods, and knowing the sensitivity of our market value to changes in interest rates provides a measure of the interest rate risk we take.

Under the RMP, our base case DOE is generally limited to a range of ±5.0 assuming current interest rates. In addition, our DOE is generally limited to a range of ±7.0 assuming an instantaneous parallel increase or decrease in interest rates of 200 basis points. When DOE exceeds the limits established by the RMP, corrective actions taken may include: (1) the purchase of interest rate caps, interest rate floors, or other derivatives; (2) the sale of assets; or (3) the addition to the balance sheet of assets or liabilities having characteristics that are such that they counterbalance the excessive duration observed.

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Table 34 presents our DOE in the base and the up and down 200 basis point interest rate shock scenarios:

**<u>Table 34</u>**

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| | | | |
|:---|:---|:---|:---|
| **Duration of Equity** | **Duration of Equity** | **Duration of Equity** | **Duration of Equity** |
| **Date** | **Up 200 Basis Points** | **Base** | **Down 200 Basis Points** |
| 09/30/2025 | 1.4 | 1.6 | 0.4 |
| 06/30/2025 | 1.5 | 1.4 | 0.5 |
| 03/31/2025 | 1.8 | 1.7 | 0.6 |
| 12/31/2024 | 2.0 | 1.9 | 0.7 |
| 09/30/2024 | 2.7 | 2.5 | 1.5 |

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The primary factors contributing to the net changes in duration from December 31, 2024 to September 30, 2025 were: (1) the relative change in interest rates and the relative level of mortgage rates during the period along with variable-rate collateralized mortgage obligations (CMOs) and their effective cap levels; (2) the relative percent of total assets represented by the fixed-rate mortgage loan portfolio during the period; and (3) asset/liability actions taken by management throughout the period. The decrease in longer-term interest rates and the relative level of shorter-term interest rates during the period impacted the implied forward rates and the valuation of the variable-rate CMO investments with lower effective interest rate caps. To reduce the impact of the general duration changes from the variable-rate CMO investments with lower effective interest rate caps, stand-alone interest caps were purchased during 2024, leading to the less asset sensitive DOE level in the +200 interest rate shock scenario.

In addition, the relative changes in interest rates and mortgage rates during the period caused the mortgage loan portfolio contribution to duration to change more than the associated liabilities, contributing to the decrease in the asset sensitive DOE profile for all interest rate shock scenarios. The mortgage loan portfolio generally has a longer duration profile in the interest rate shock scenarios contributing to the asset-sensitive DOE. However, the prepayment sensitivity and market value changes in our mortgage portfolio currently align well with our non-swapped callable debt portfolio generating a relatively stable sensitivity profile in all interest rate shock scenarios.

The change in interest rates during the period generally shortens the duration profile for both the fixed-rate mortgage loan portfolio and the associated unswapped callable consolidated obligation bonds funding these assets. The increase in advances during the period generated a marginally greater contribution and an overall modest net duration profile change from the mortgage loan and unswapped callable bond portfolios. This behavior is expected since DOE is a market value weighted measure and as portfolio weightings change in relation to total market value of assets, the respective contributions increase or decrease to overall DOE. With the increase in our mortgage loan portfolio balance, the net impact was a slight increase as a percentage of total assets during this period, so the duration profile changed as expected as prepayments shifted slightly for both new production mortgage loans, as well as the outstanding fixed-rate mortgage loan portfolio.

To effectively manage these changes in the mortgage loan portfolio (including new production and prepaid loans) and related sensitivity to changes in market conditions, unswapped callable consolidated obligation bonds that either matured or were called were generally replaced with reissuance of unswapped callable consolidated obligation bonds with relatively long maturities and lock-out periods (generally six months and greater). Generally, changes in the profile of the liability portfolio corresponds with the expected duration profile of the fixed-rate mortgage loans, all else being equal, and positions the balance sheet for future changes in rates, including changes in interest rate increases where the mortgage loan portfolio will likely lengthen in duration as expected prepayments slow. For further discussion of the call and reissuance of consolidated obligation bonds, see Item 2 – "Management's Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Consolidated Obligations." The combination of these factors contributed to the net DOE changes in all scenarios during the period.

Duration gap is the difference between the duration of our assets and the duration of our liabilities. Our base duration gap was 1.0 month and 1.2 months as of September 30, 2025 and December 31, 2024, respectively.

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Market Value of Equity</u>**

MVE is the net value of our assets and liabilities. Estimating sensitivity of MVE to changes in interest rates is another measure of interest rate risk. The RMP measures our market value risk in terms of the MVE in relation to total regulatory capital stock outstanding (TRCS). TRCS includes all capital stock outstanding, including stock subject to mandatory redemption. As a cooperative, we believe using the TRCS results is an appropriate measure because it reflects our market value relative to the book value of our capital stock. Our RMP stipulates MVE shall not be less than: (1) 100 percent of TRCS under the base case scenario; or (2) 90 percent of TRCS under a ±200 basis point instantaneous parallel shock in interest rates. Table 35 presents MVE as a percent of TRCS. As of September 30, 2025, all scenarios are well above the specified limits and much of the relative level in the ratios during the periods covered by the table can be attributed to the relative level of the fixed-rate mortgage loan and associated funding portfolio market values along with the relative level of outstanding capital.

The MVE to TRCS ratios can be impacted by the market value of equity sensitivity and level of capital outstanding based on our capital management approach. The relative level of advance, mortgage loan, and letters of credit balances, which trigger required stock, and excess stock as of September 30, 2025 (see Table 32) contributed to the MVE levels as of September 30, 2025. These relationships and associated risk sensitivity primarily generate the changes in the MVE/TRCS levels and produce the changes in the ratios in all interest rate scenarios in the table below.

Generally, a positive duration position accompanied by rising interest rates would negatively impact the base market value of equity (numerator). Likewise, as capital increases, the MVE/TRCS ratio declines since the capital level is the denominator in the ratio. While the change in interest rates contributed to the overall impact on base MVE during the period, the changes were limited with the ratio maintaining consistent levels in the base case and interest rate shock scenarios during the period.

**<u>Table 35</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Market Value of Equity as a Percent of Total Regulatory Capital Stock** | **Market Value of Equity as a Percent of Total Regulatory Capital Stock** | **Market Value of Equity as a Percent of Total Regulatory Capital Stock** | **Market Value of Equity as a Percent of Total Regulatory Capital Stock** |
| **Date** | **Up 200 Basis Points** | **Base** | **Down 200 Basis Points** |
| 09/30/2025 | 155 | 159 | 162 |
| 06/30/2025 | 151 | 155 | 158 |
| 03/31/2025 | 153 | 158 | 161 |
| 12/31/2024 | 148 | 153 | 158 |
| 09/30/2024 | 148 | 156 | 161 |

---

**<u>Detail of Derivative Instruments by Type of Instrument by Type of Risk</u>**

Various types of derivative instruments are utilized to mitigate the interest rate risks described in the preceding sections as well as to better match the terms of assets and liabilities. Tables 36 and 37 present the notional amount and fair value amount (fair value includes net accrued interest receivable or payable on the derivative) for derivative instruments by hedged item, hedging instrument, hedging objective and accounting designation (in thousands):

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 36</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** | **09/30/2025** |
| **Hedged Item** | **Hedging Instrument** | **Hedging Objective** | **Accounting Designation** | **Notional Amount** | **Fair Value Amount** |
| **Advances** | | | | | |
| Fixed-rate non-callable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index | Fair Value Hedge | $13129858 | $(5085) |
| Fixed-rate putable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index and offset option risk in the advance | Fair Value Hedge | 3334400 | (26727) |
| Fixed-rate non-callable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index | Economic Hedge | 180783 | 609 |
| Firm commitment to issue a fixed-rate advance | Forward settling interest rate swap | Protect against fair value risk | Fair Value Hedge | 5665 | 4 |
| **Investments** |  |  |  |  |  |
| Fixed-rate non-MBS available-for-sale investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Fair Value Hedge | 3100000 | (905) |
| Fixed-rate MBS available-for-sale investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Fair Value Hedge | 7154615 | 11856 |
| Fixed-rate MBS trading investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Economic Hedge | 74784 | 1564 |
| **Mortgage Loans Held for Portfolio** |  |  |  |  |  |
| Fixed-rate mortgage purchase commitments | Mortgage purchase commitment | Protect against fair value risk | Economic Hedge | 72124 | 54 |
| **Consolidated Obligation Discount Notes** |  |  |  |  |  |
| Fixed-rate non-callable consolidated obligation discount notes with tenors less than 6 months | Receive fixed, pay variable interest rate swap | Convert the discount note's fixed rate to a variable rate | Economic Hedge | 8820920 | 163 |
| Fixed-rate non-callable consolidated obligation discount notes with tenors of 6 to 12 months | Receive fixed, pay variable interest rate swap | Convert the discount note's fixed rate to a variable rate | Fair Value Hedge | 5176725 | 289 |
| Firm commitment to issue consolidated obligation discount note | Receive fixed, pay variable interest rate swap | Protect against fair value risk | Economic Hedge | 490576 | (12) |
| **Consolidated Obligation Bonds** |  |  |  |  |  |
| Fixed-rate non-callable consolidated obligation bonds | Receive fixed, pay variable interest rate swap | Convert the bond's fixed rate to a variable-rate index | Fair Value Hedge | 3726000 | 1174 |
| Fixed-rate callable consolidated obligation bonds | Receive fixed, pay variable interest rate swap | Convert the bond's fixed rate to a variable-rate index and offset option risk in the bond | Fair Value Hedge | 9319000 | (12968) |
| Variable rate consolidated obligation bonds | Receive variable interest rate, pay variable interest rate swap | Reduce basis risk by converting an undesirable variable rate index in the bond to a more desirable variable rate index | Economic Hedge | 500000 | 4639 |
| Callable step-up/step-down consolidated obligation bonds | Receive variable interest rate with embedded features, pay variable interest rate swap | Reduce interest rate sensitivity and repricing gaps by converting the bond's variable rate to a different variable-rate index and/or to offset embedded options risk in the bond | Fair Value Hedge | 773000 | (18343) |
| Firm commitment to issue a consolidated obligation bond | Receive fixed, pay variable interest rate swap | Protect against fair value risk | Fair Value Hedge | 55000 | (87) |
| **Balance Sheet** |  |  |  |  |  |
| Duration of equity | Interest rate cap | Limit duration and convexity risk caused by an increase in interest rates | Economic Hedge | 835000 | 698 |
| Cost of funds or asset | Receive variable interest rate, pay variable interest rate swap | Reduce interest rate sensitivity and repricing gaps | Economic Hedge | 150000 | (3) |
| *TOTAL* |  |  |  | $56898450 | $(43080) |

---

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**<u>Table 37</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** | **12/31/2024** |
| **Hedged Item** | **Hedging Instrument** | **Hedging Objective** | **Accounting Designation** | **Notional Amount** | **Fair Value Amount** |
| **Advances** | | | | | |
| Fixed-rate non-callable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index | Fair Value Hedge | $12541236 | $2387 |
| Fixed-rate convertible advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index and offset option risk in the advance | Fair Value Hedge | 20500 | 181 |
| Fixed-rate putable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index and offset option risk in the advance | Fair Value Hedge | 3095200 | (1397) |
| Fixed-rate non-callable advances | Pay fixed, receive variable interest rate swap | Convert the advance's fixed rate to a variable-rate index | Economic Hedge | 581304 | 1107 |
| Firm commitment to issue a fixed-rate advance | Forward settling interest rate swap | Protect against fair value risk | Fair Value Hedge | 8730 | 11 |
| **Investments** |  |  |  |  |  |
| Fixed-rate non-MBS available-for-sale investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Fair Value Hedge | 3300000 | 641 |
| Fixed-rate MBS available-for-sale investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Fair Value Hedge | 5128426 | 37078 |
| Fixed-rate non-MBS trading investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Economic Hedge | 18000 | 2 |
| Fixed-rate MBS trading investments | Pay fixed, receive variable interest rate swap | Convert the investment's fixed rate to a variable-rate index | Economic Hedge | 419438 | 7198 |
| **Mortgage Loans Held for Portfolio** |  |  |  |  |  |
| Fixed-rate mortgage purchase commitments | Mortgage purchase commitment | Protect against fair value risk | Economic Hedge | 34524 | (43) |
| **Consolidated Obligation Discount Notes** |  |  |  |  |  |
| Fixed-rate non-callable consolidated obligation discount notes with tenors less than 6 months | Receive fixed, pay variable interest rate swap | Convert the discount note's fixed rate to a variable rate | Economic Hedge | 7247448 | (7) |
| Fixed-rate non-callable consolidated obligation discount notes with tenors of 6 to 12 months | Receive fixed, pay variable interest rate swap | Convert the discount note's fixed rate to a variable rate | Fair Value Hedge | 2969182 | 9 |
| Firm commitment to issue consolidated obligation discount note | Receive fixed, pay variable interest rate swap | Protect against fair value risk | Economic Hedge | 198705 | (5) |
| **Consolidated Obligation Bonds** |  |  |  |  |  |
| Fixed-rate non-callable consolidated obligation bonds | Receive fixed, pay variable interest rate swap | Convert the bond's fixed rate to a variable-rate index | Fair Value Hedge | 2642000 | (34414) |
| Fixed-rate callable consolidated obligation bonds | Receive fixed, pay variable interest rate swap | Convert the bond's fixed rate to a variable-rate index and offset option risk in the bond | Fair Value Hedge | 7355000 | (125425) |
| Variable-rate consolidated obligation bonds | Receive variable interest rate, pay variable interest rate swap | Reduce basis risk by converting an undesirable variable-rate index in the bond to a more desirable variable-rate index | Economic Hedge | 500000 | (70) |
| Callable step-up/step-down consolidated obligation bonds | Receive variable interest rate with embedded features, pay variable interest rate swap | Reduce interest rate sensitivity and repricing gaps by converting the bond's variable rate to a different variable-rate index and/or to offset embedded options risk in the bond | Fair Value Hedge | 823000 | (39065) |
| Fixed-rate callable consolidated obligation bonds | Receive fixed, pay variable interest rate swap | Convert the bond's fixed rate to a variable-rate index | Economic Hedge | 1750000 | 16941 |
| **Balance Sheet** |  |  |  |  |  |
| Duration of equity | Interest rate cap | Limit duration and convexity risk caused by an increase in interest rates | Economic Hedge | 2604000 | 4181 |
| Cost of funds or asset | Receive variable interest rate, pay variable interest rate swap | Reduce interest rate sensitivity and repricing gaps | Economic Hedge | 750000 | 6 |
| *TOTAL* |  |  |  | $51986693 | $(130684) |

---

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**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**Item 4: Controls and Procedures**

**<u>Disclosure Controls and Procedures</u>**

Senior management is responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide a reasonable level of assurance in achieving their desired objectives; however, in designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Management, with the participation of the President and CEO, our principal executive officer, and the Chief Financial Officer (CFO), our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of September 30, 2025. Based upon that evaluation, the CEO and CFO have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2025.

**<u>Changes in Internal Control Over Financial Reporting</u>**

There has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**Part II. OTHER INFORMATION**

**Item 1: Legal Proceedings** 

We are subject to various pending legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these matters will have a material adverse effect on our financial condition or results of operations. Additionally, management does not believe that we are subject to any material pending legal proceedings outside of ordinary litigation incidental to our business.

**Item 1A: Risk Factors**

There have been no material changes to the risk factors previously disclosed in our annual report on Form 10-K filed on March 11, 2025, and such risk factors are incorporated by reference herein.

**Item 2: Unregistered Sales of Equity Securities and Use of Proceeds**

Not applicable.

**Item 3: Defaults Upon Senior Securities**

None.

**Item 4: Mine Safety Disclosures**

Not applicable.

**Item 5: Other Information**

None.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**Item 6: Exhibits**

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1325878/000095015206004473/j1943901exv3w1.htm)</u> | Exhibit 3.1 to FHLBank's registration statement on Form 10, filed May 15, 2006, and made effective on July 14, 2006 (File No. 000-52004), Federal Home Loan Bank of Topeka Articles and Organization Certificate, is incorporated herein by reference as Exhibit 3.1. |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1325878/000132587822000225/bylawsexhibit3120221021.htm)</u> | Exhibit 3.2 to the Current Report on Form 8-K, filed October 31, 2024, Federal Home Loan Bank of Topeka Amended and Restated Bylaws, is incorporated herein by reference as Exhibit 3.2. |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/1325878/000132587820000006/ex1231201941.htm)</u> | Exhibit 4.1 to the Annual Report on Form 10-K, filed March 20, 2020, Federal Home Loan Bank of Topeka Capital Plan. |
| <u>[31.1](ex31109302025.htm)</u> | Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[31.2](ex31209302025.htm)</u> | Certification of Chief Financial Officer (Principal Financial Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[32](ex3209302025.htm)</u> | Certification of President and Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Represents a management contract or a compensatory plan or arrangement.

------

**<u>[**Table of Contents**](#id222dd76542e4686b841c9b9f61dc4fc_13)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| | Federal Home Loan Bank of Topeka |
| <u>November 7, 2025</u> | By: /s/ Jeffrey B. Kuzbel |
| Date | Jeffrey B. Kuzbel |
|  | President and Chief Executive Officer |
| <u>November 7, 2025</u> | By: /s/ Philip D. Bacchus |
| Date | Philip D. Bacchus |
|  | Senior Vice President and Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT**

&nbsp;&nbsp;&nbsp;&nbsp; I, Jeffrey B. Kuzbel, President and Chief Executive Officer of Federal Home Loan Bank of Topeka (the "registrant"), certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of the registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 7, 2025

---

| |
|:---|
| By: /s/ Jeffrey B. Kuzbel |
| Jeffrey B. Kuzbel |
| President and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT**

&nbsp;&nbsp;&nbsp;&nbsp; I, Philip D. Bacchus, Senior Vice President and Chief Financial Officer of Federal Home Loan Bank of Topeka (the "registrant"), certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of the registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 7, 2025

---

| |
|:---|
| By: /s/ Philip D. Bacchus |
| Philip D. Bacchus |
| Senior Vice President and Chief Financial Officer |

---

## Ex-32

**Exhibit 32**

**CERTIFICATION FURNISHED PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report on Form 10-Q of the Federal Home Loan Bank of Topeka (the "Bank") for the period ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Jeffrey B. Kuzbel, as Chief Executive Officer, and Philip D. Bacchus, as Chief Financial Officer of the Bank, each hereby certifies, pursuant to 18 U.S.C. Section 1350, that, to the best of his/her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Bank.

---

| | |
|:---|:---|
| <u>November 7, 2025</u> | By: /s/ Jeffrey B. Kuzbel |
| Date | Jeffrey B. Kuzbel |
|  | President and Chief Executive Officer |
|  | (Principal Executive Officer) |
| <u>November 7, 2025</u> | By: /s/ Philip D. Bacchus |
| Date | Philip D. Bacchus |
|  | Senior Vice President and Chief Financial Officer |
|  | (Principal Financial Officer) |

---

*A signed original of this written statement required by Section 906 has been provided to the Bank and will be retained by the Bank and furnished to the Securities and Exchange Commission or its staff upon request.*

<br>