# EDGAR Filing Document

**Accession Number:** 0001330399
**File Stem:** 0001330399-26-000020
**Filing Date:** 2026-3
**Character Count:** 1012120
**Document Hash:** 7d3dd69b5c01bc4f6f3121a3c1fd17ac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001330399-26-000020.hdr.sgml**: 20260304

**ACCESSION NUMBER**: 0001330399-26-000020

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 164

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260304

**DATE AS OF CHANGE**: 20260304

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federal Home Loan Bank of Pittsburgh
- **CENTRAL INDEX KEY:** 0001330399
- **STANDARD INDUSTRIAL CLASSIFICATION:** FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51395
- **FILM NUMBER:** 26719095

**BUSINESS ADDRESS:**
- **STREET 1:** 301 GRANT STREET, SUITE 2000
- **CITY:** PITTSBURGH
- **STATE:** PA
- **ZIP:** 15219
- **BUSINESS PHONE:** 412-288-3400

**MAIL ADDRESS:**
- **STREET 1:** 301 GRANT STREET, SUITE 2000
- **CITY:** PITTSBURGH
- **STATE:** PA
- **ZIP:** 15219

?xml version='1.0' encoding='ASCII'? fhlbpgh-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

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

For the fiscal year ended December 31, 2025

or

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

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission File Number:** 000-51395

**FEDERAL HOME LOAN BANK OF PITTSBURGH**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Federally Chartered Corporation** | **25-6001324** |
| (State or other jurisdiction of<br>incorporation or organization) | (IRS Employer Identification No.) |

---

**301 Grant Street, Suite 2000**

**Pittsburgh, PA** 

(Address of principal executive offices)

15219

(Zip Code)

**(412) 288-3400** 

(Registrant's telephone number, including area code)

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

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> — — —

---

| |
|:---|
| Securities registered pursuant to Section 12(g) of the Act: |
| Capital Stock, putable, par value $100 |
| (Title of Class) |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. []Yes [x]No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. []Yes [x]No

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. [x]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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). [x] Yes [] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 ☐ Emerging growth company

⌧ Non-accelerated filer □ Smaller reporting 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

------

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

Registrant's stock is not publicly traded and is only issued to members of the registrant. Such stock is issued and redeemed at par value, $100 per share, subject to certain regulatory and statutory limits. At June 30, 2025, the aggregate par value of the stock held by current and former members of the registrant was approximately $2,937.5 million. There were 24,769,230 shares of common stock outstanding at February 28, 2026.

------

**FEDERAL HOME LOAN BANK OF PITTSBURGH**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **PART I** | <u>[1](#i4d53574ad64a4dfc8cdc21906d9a2d5d_13)</u> |
| &nbsp;&nbsp;&nbsp;**Item 1: Business** | <u>[1](#i4d53574ad64a4dfc8cdc21906d9a2d5d_13)</u> |
| &nbsp;&nbsp;&nbsp;**Item 1A: Risk Factors** | <u>[14](#i4d53574ad64a4dfc8cdc21906d9a2d5d_58)</u> |
| &nbsp;&nbsp;&nbsp;**Item 1B: Unresolved Staff Comments** | <u>[22](#i4d53574ad64a4dfc8cdc21906d9a2d5d_61)</u> |
| &nbsp;&nbsp;&nbsp;**Item 1C: Cybersecurity** | <u>[22](#i4d53574ad64a4dfc8cdc21906d9a2d5d_61)</u> |
| &nbsp;&nbsp;&nbsp;**Item 2: Properties** | <u>[25](#i4d53574ad64a4dfc8cdc21906d9a2d5d_67)</u> |
| &nbsp;&nbsp;&nbsp;**Item 3: Legal Proceedings** | <u>[25](#i4d53574ad64a4dfc8cdc21906d9a2d5d_70)</u> |
| &nbsp;&nbsp;&nbsp;**Item 4: Mine Safety Disclosures** | <u>[25](#i4d53574ad64a4dfc8cdc21906d9a2d5d_73)</u> |
| **PART II** | <u>[26](#i4d53574ad64a4dfc8cdc21906d9a2d5d_76)</u> |
| &nbsp;&nbsp;&nbsp;**Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities** | <u>[26](#i4d53574ad64a4dfc8cdc21906d9a2d5d_79)</u> |
| &nbsp;&nbsp;&nbsp;**Item 6: [Reserved]** | <u>[27](#i4d53574ad64a4dfc8cdc21906d9a2d5d_82)</u> |
| &nbsp;&nbsp;&nbsp;**Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations** | <u>[27](#i4d53574ad64a4dfc8cdc21906d9a2d5d_85)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forward-Looking Information** | <u>[27](#i4d53574ad64a4dfc8cdc21906d9a2d5d_88)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Summary** | <u>[28](#i4d53574ad64a4dfc8cdc21906d9a2d5d_91)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 Outlook** | <u>[29](#i4d53574ad64a4dfc8cdc21906d9a2d5d_94)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings Performance** | <u>[30](#i4d53574ad64a4dfc8cdc21906d9a2d5d_97)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Condition** | <u>[40](#i4d53574ad64a4dfc8cdc21906d9a2d5d_118)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Critical Accounting Estimates** | <u>[53](#i4d53574ad64a4dfc8cdc21906d9a2d5d_136)</u> |
| &nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legislative and Regulatory Developments** | <u>[54](#i4d53574ad64a4dfc8cdc21906d9a2d5d_139)</u> |
| &nbsp;&nbsp;&nbsp; **Risk Management** | <u>[55](#i4d53574ad64a4dfc8cdc21906d9a2d5d_142)</u> |
| &nbsp;&nbsp;&nbsp;**Item 7A: Quantitative and Qualitative Disclosures about Market Risk** | <u>[76](#i4d53574ad64a4dfc8cdc21906d9a2d5d_169)</u> |
| &nbsp;&nbsp;&nbsp;**Item 8: Financial Statements and Supplementary Data** | <u>[77](#i4d53574ad64a4dfc8cdc21906d9a2d5d_172)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements for the Years 2025, 2024, and 2023** | <u>[79](#i4d53574ad64a4dfc8cdc21906d9a2d5d_175)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Notes to Financial Statements** | <u>[86](#i4d53574ad64a4dfc8cdc21906d9a2d5d_193)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 1 – Summary of Significant Accounting Policies** | <u>[87](#i4d53574ad64a4dfc8cdc21906d9a2d5d_199)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 2 – Changes in Accounting Principle and Recently Issued Accounting Standards and Interpretations**  | <u>[93](#i4d53574ad64a4dfc8cdc21906d9a2d5d_202)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 3 – Cash and Due from Banks** | <u>[93](#i4d53574ad64a4dfc8cdc21906d9a2d5d_205)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 4 – Investments** | <u>[94](#i4d53574ad64a4dfc8cdc21906d9a2d5d_208)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 5 – Advances** | <u>[99](#i4d53574ad64a4dfc8cdc21906d9a2d5d_211)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 6 – Mortgage Loans Held for Portfolio** | <u>[103](#i4d53574ad64a4dfc8cdc21906d9a2d5d_214)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 7 – Derivatives and Hedging Activities** | <u>[106](#i4d53574ad64a4dfc8cdc21906d9a2d5d_217)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 8 – Deposits** | <u>[114](#i4d53574ad64a4dfc8cdc21906d9a2d5d_220)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 9 – Consolidated Obligations** | <u>[114](#i4d53574ad64a4dfc8cdc21906d9a2d5d_223)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 10 – Affordable Housing Program (AHP) and Voluntary Contributions** | <u>[116](#i4d53574ad64a4dfc8cdc21906d9a2d5d_226)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 11 – Capital** | <u>[118](#i4d53574ad64a4dfc8cdc21906d9a2d5d_229)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 12 – Employee Retirement Plans** | <u>[121](#i4d53574ad64a4dfc8cdc21906d9a2d5d_232)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 13 – Transactions with Related Parties** | <u>[123](#i4d53574ad64a4dfc8cdc21906d9a2d5d_235)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 14 – Estimated Fair Values** | <u>[124](#i4d53574ad64a4dfc8cdc21906d9a2d5d_238)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Note 15 – Commitments and Contingencies** | <u>[131](#i4d53574ad64a4dfc8cdc21906d9a2d5d_241)</u> |
| &nbsp;&nbsp;&nbsp;**Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure** | <u>[132](#i4d53574ad64a4dfc8cdc21906d9a2d5d_244)</u> |
| &nbsp;&nbsp;&nbsp;**Item 9A: Controls and Procedures** | <u>[132](#i4d53574ad64a4dfc8cdc21906d9a2d5d_247)</u> |
| &nbsp;&nbsp;&nbsp;**Item 9B: Other Information** | <u>[132](#i4d53574ad64a4dfc8cdc21906d9a2d5d_250)</u> |

---

i. ------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** | <u>[132](#i4d53574ad64a4dfc8cdc21906d9a2d5d_250)</u> |
| **PART III** | <u>[132](#i4d53574ad64a4dfc8cdc21906d9a2d5d_256)</u> |
| &nbsp;&nbsp;&nbsp;**Item 10: Directors, Executive Officers and Corporate Governance** | <u>[133](#i4d53574ad64a4dfc8cdc21906d9a2d5d_259)</u> |
| &nbsp;&nbsp;&nbsp;**Item 11: Executive Compensation** | <u>[142](#i4d53574ad64a4dfc8cdc21906d9a2d5d_262)</u> |
| &nbsp;&nbsp;&nbsp;**Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters** | <u>[163](#i4d53574ad64a4dfc8cdc21906d9a2d5d_265)</u> |
| &nbsp;&nbsp;&nbsp;**Item 13: Certain Relationships and Related Transactions, and Director Independence** | <u>[164](#i4d53574ad64a4dfc8cdc21906d9a2d5d_268)</u> |
| &nbsp;&nbsp;&nbsp;**Item 14: Principal Accountant Fees and Services** | <u>[167](#i4d53574ad64a4dfc8cdc21906d9a2d5d_271)</u> |
| **PART IV** | <u>[167](#i4d53574ad64a4dfc8cdc21906d9a2d5d_274)</u> |
| &nbsp;&nbsp;&nbsp;**Item 15: Exhibits and Financial Statement Schedules** | <u>[167](#i4d53574ad64a4dfc8cdc21906d9a2d5d_277)</u> |
| &nbsp;&nbsp;&nbsp;**Item 16: Form 10-K Summary** | <u>[170](#i4d53574ad64a4dfc8cdc21906d9a2d5d_280)</u> |
| **Glossary** | <u>[171](#i4d53574ad64a4dfc8cdc21906d9a2d5d_283)</u> |
| **Signatures** | <u>[175](#i4d53574ad64a4dfc8cdc21906d9a2d5d_286)</u> |

---

i. ------

**PART I**

*This Annual Report on Form 10-K (Form 10-K) includes "forward-looking statements" that, by their nature, involve risks and uncertainties, and as such, actual results could differ materially from those that the statements express or imply due to various factors such as those discussed under Item 1A. Risk Factors and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Forward-Looking Information. In addition, certain acronyms and terms used in this report are defined in the Glossary at the conclusion of this Form 10-K.*

**Item 1: Business**

The Federal Home Loan Bank of Pittsburgh (the Bank)'s mission is to provide its members with readily available liquidity, including serving as a low-cost source of funds for housing and community development. The Bank strives to enhance the availability of credit for residential mortgages and targeted community development. The Bank manages its liquidity so that funds are available to meet members' demand for advances (loans to members and eligible nonmember housing associates). By providing needed liquidity and enhancing competition in the mortgage market, the Bank's lending programs benefit homebuyers and communities. For additional information regarding the Bank's financial condition and financial statements, refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Item 8. Financial Statements and Supplementary Data in this Form 10-K. For additional information regarding the Bank's business risks, refer to Item 1A. Risk Factors in this Form 10-K.

**General**

***&nbsp;&nbsp;&nbsp;&nbsp;History.*** The Bank is one of 11 FHLBanks. The FHLBanks operate as separate entities with their own management, employees, and board of directors. The 11 FHLBanks, along with the Office of Finance (OF - the FHLBanks' fiscal agent) comprise the FHLBank System. The FHLBanks were organized under the authority of the Federal Home Loan Bank Act of 1932, as amended (the FHLBank Act). The FHLBanks are commonly referred to as GSEs, which generally means they are a combination of private capital and public sponsorship. The public sponsorship attributes include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being exempt from federal, state and local taxation, except real estate taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being exempt from registration under the Securities Act of 1933 (the 1933 Act), although the FHLBanks are required by Finance Agency regulation and the Housing and Economic Recovery Act of 2008 (the Housing Act or HERA) to register a class of their equity securities under the Securities Exchange Act of 1934 (the 1934 Act or Exchange Act); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• having a line of credit with the United States (U.S.) Treasury. This line represents the U.S. Treasury's authority to purchase consolidated obligations in an amount up to $4 billion.

***&nbsp;&nbsp;&nbsp;&nbsp;Cooperative.*** The Bank is a cooperative institution, owned by member financial institutions that are also its primary customers. Any building and loan association, savings and loan association, commercial bank, homestead association, insurance company, savings bank, credit union, community development financial institution (CDFI), or insured depository institution that maintains its principal place of business in Delaware, Pennsylvania or West Virginia and that meets varying requirements can apply for membership in the Bank. All members are required to purchase capital stock in the Bank as a condition of membership. The capital stock of the Bank can be purchased only by members.

***Mission.*** The Bank assures the flow of credit to its member financial institutions – commercial and savings banks, CDFIs, credit unions and insurance companies – in Delaware, Pennsylvania and West Virginia, to support housing finance and community lending. The Bank also provides related services that enhance members' businesses and vitalize their communities.

Members access funding through the Bank's two primary credit products: 1) advances secured by residential mortgages and other types of high quality collateral, and 2) through the sale of residential mortgage loans, originated by or through eligible member institutions, to the Bank. The Bank funds these credit products through the issuance of debt to the public (consolidated obligation bonds and discount notes) in the capital markets through the OF. The U.S. government does not guarantee the debt securities or other obligations of the Bank or the FHLBank System.

The Bank also offers member institutions other credit and noncredit products and services which include affordable housing grants, banking services, letters of credit, securities safekeeping, and other community products.

As one of 11 FHLBanks established by Congress, the Bank has been an integral and reliable part of the financial system since 1932.

------

***&nbsp;&nbsp;&nbsp;&nbsp;Overview.*** As a GSE, the Bank is able to raise funds in the capital markets at narrow spreads to the U.S. Treasury yield curve. This fundamental competitive advantage, coupled with the joint and several liability on FHLBank System debt, enables the Bank to provide attractively priced funding to members. Though chartered by Congress, the Bank is privately capitalized by its member institutions, which are voluntary participants in its cooperative structure. The characterization of the Bank as a voluntary cooperative with the status of a federal instrumentality differentiates the Bank from a traditional banking institution in three principal ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial institutions choose membership in the Bank principally for access to liquidity, the value of the products offered, and the potential to receive dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because the Bank's customers and shareholders are predominantly the same institutions, normally there is a need to balance the pricing expectations of customers with the dividend expectations of shareholders. By charging wider spreads on loans to customers, the Bank could potentially generate higher earnings and dividends for shareholders. Yet these same shareholders are also customers who would generally prefer narrower loan spreads. The Bank strives to achieve a balance between the goals of providing liquidity and other services to members at advantageous prices and potentially generating an attractive dividend. The Bank typically does not strive to maximize the dividend yield on the stock, but to produce a dividend that compares favorably to short-term interest rates, thus compensating members for the cost of the capital they have invested in the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's GSE charter is based on a public policy purpose to assure liquidity for its members and to enhance the availability of affordable housing for lower-income households. In upholding its public policy mission, the Bank offers products that consume a portion of its earnings. The cooperative GSE character of this voluntary membership organization leads management to optimize the primary purpose of membership, access to liquidity, as well as the overall value of Bank membership.

***Nonmember Borrowers.*** In addition to member institutions, the Bank is permitted under the FHLBank Act to make advances to nonmember housing associates that are approved mortgagees under Title II of the National Housing Act. These eligible housing associates must be chartered under law, be subject to inspection and supervision by a governmental agency, and lend their own funds as their principal activity in the mortgage field. The Bank must approve each applicant. Housing associates are not subject to certain provisions of the FHLBank Act that are applicable to members, such as the capital stock purchase requirements. However, they are generally subject to more restrictive lending and collateral requirements than those applicable to members. As of December 31, 2025, the Bank maintains relationships with three approved state housing finance agencies (HFAs); one in each of the states that comprise the Bank's district.

------

**Regulatory Oversight, Audits and Examinations**

***Supervision and Regulation.*** The Bank's business is subject to regulation and supervision. The laws and regulations to which it is subject cover key aspects of the Bank's business and directly and indirectly affect its earnings, product and service offerings, pricing, competitive position and strategic plan, relationship with members and third parties, capital structure, cash needs and uses, and information security. As discussed throughout this Form 10-K, such laws and regulations can affect key drivers of the Bank's results of operations, including, for example, the Bank's capital and liquidity, product and service offerings, risk management, and costs of compliance.

The Bank and OF are supervised and regulated by the Federal Housing Finance Agency (Finance Agency), which is an independent agency in the executive branch of the United States government. The Finance Agency's stated mission is to ensure the housing GSEs fulfill their mission by operating in a safe and sound manner to serve as a reliable source of liquidity and funding for housing finance and community products throughout the economic cycle. The Finance Agency establishes regulations, issues advisory bulletins (ABs), and otherwise supervises Bank operations primarily via periodic examinations. The Government Corporation Control Act provides that, before a government corporation issues and offers obligations to the public, the Secretary of the U.S. Treasury has the authority to prescribe the form, denomination, maturity, interest rate, and conditions of the obligations; the way and time issued; and the selling price. The U.S. Treasury receives the Finance Agency's annual report to Congress and other reports on operations. The Bank is also subject to regulation by the Securities and Exchange Commission (SEC) as a registrant under the 1934 Act.

***&nbsp;&nbsp;&nbsp;&nbsp;Examination.*** The Finance Agency conducts examinations and continuous monitoring to ensure the Bank operates in a financially safe and sound fashion, remains adequately capitalized and able to raise funds in the capital markets, and operating in a manner consistent with their housing finance mission. In addition, the Comptroller General has authority under the FHLBank Act to audit or examine the Finance Agency and the Bank and to decide the extent to which they fairly and effectively fulfill the purposes of the FHLBank Act. Furthermore, the Government Corporation Control Act provides that the Comptroller General may review any audit of the financial statements conducted by an independent registered public accounting firm. If the Comptroller General conducts such a review, then he or she must report the results and provide his or her recommendations to Congress, the Office of Management and Budget (OMB), and the FHLBank in question. The Comptroller General may also conduct his or her own audit of the financial statements of the Bank.

***&nbsp;&nbsp;&nbsp;&nbsp;Audit.*** The Bank has an internal audit department that reports directly to the Audit Committee of the Bank's Board of Directors (Board). In addition, an independent Registered Public Accounting Firm (RPAF) audits the annual financial statements and internal controls over financial reporting of the Bank. The independent RPAF conducts these audits following the standards of the Public Company Accounting Oversight Board (PCAOB) of the United States of America and *Government Auditing Standards* issued by the Comptroller General. The Bank, the Finance Agency, and Congress all receive the independent RPAF audit reports.

------

**Advances**

***Advance Products.*** The Bank makes advances on the security of pledged eligible collateral. Advance products serve members' short and long-term liquidity needs. Available structures support interest rate risk management and general asset/liability management with fixed and floating-rate advance options.

The following table summarizes the advance products offered by the Bank as of December 31, 2025.

---

| | | |
|:---|:---|:---|
| Product | Description | Maturity |
| Rollover | Advances are overnight, and until paid off are renewed every day subject to approval by the Bank. Interest rates are set daily. Interest can be paid on a weekly or monthly basis. This product is not a committed line of credit. | Overnight |
| Fixed | Advances available with amortizing and non-amortizing structures. For non-amortizing advances, principal and interest are paid at maturity for advances up to and including 89 days and interest is paid quarterly on advances with terms greater than 89 days. For amortizing advances, principal and interest are paid monthly, with the outstanding balance due at maturity. | 1 day to 30 years (for amortizing advances – 1 year to 30 years) |
| Floating | Advances that have interest rates that reset periodically to a specified interest rate index (e.g., SOFR). Principal is paid at maturity and interest is paid quarterly. Interest terms are set on the trade date of the advance. | 3 months to 30 years  |
| Returnable | Fixed-rate and floating-rate advances that may be repaid without a prepayment fee on certain predetermined dates at the member's option. Principal is paid at maturity and interest is paid either monthly or quarterly depending on the type of advance. | 2 months to 30 years  |

---

***&nbsp;&nbsp;&nbsp;&nbsp;Letters of Credit.*** Standby letters of credit are issued by the Bank for a fee on behalf of its members and housing associates to support certain obligations to third-party beneficiaries and are backed by an irrevocable, independent obligation from the Bank. These are subject to the same collateralization and borrowing limits that apply to advances. Standby letters of credit can be valuable tools to support community lending activities, including arranging financing to support bond issuances for community and economic development as well as affordable housing projects. The letters of credit offer customizable terms available to meet unique and evolving needs. If the Bank is required to make payment for a beneficiary's draw, these amounts are withdrawn from the member/housing associates' demand deposit account (DDA). Any remaining amounts not covered by the DDA withdrawal shall constitute an advance to the member and shall be immediately due, bearing interest at the rate in effect for overnight advances on that day.

**Collateral**

The Bank protects against credit risk by fully collateralizing all member and nonmember housing associate advances and other credit products. The FHLBank Act requires the Bank to obtain and maintain a security interest in eligible collateral at the time it originates or renews an advance. The Bank has a Member Products Policy that establishes the eligibility and authorization requirements, policy limits and restrictions, and the terms applicable to each type of Bank product or service, as well as collateral requirements.

***Collateral Security Agreements.*** In order to borrow from the Bank or obtain other credit products all members must execute a written security agreement that establishes the Bank's security interest in all collateral pledged by the borrower. The Bank has two types of security agreements. The first is the Advances, Collateral Pledge and Security Agreement. The second is the Advances, Specific Collateral Pledge and Security Agreement which covers only those assets or categories of assets identified; the Bank therefore relies on a specific subset of the member's total eligible collateral as security for the member's obligations to the Bank. Additionally, members wishing to pledge eNotes as collateral must also sign the Bank's eNotes Addendum. For eNotes, the member must meet additional requirements (including registering the eNote on the MERS® eRegistry) before that collateral type is accepted.

The Bank requires CDFIs, HFAs and insurance companies to sign a specific collateral pledge agreement.

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The Bank perfects its security interest in the Collateral under Article 9 of the Uniform Commercial Code (UCC) by filing a financing statement and, in some cases, the execution of an effective control agreement by the applicable member. See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for a description of blanket and specific agreements.

***Collateral Status.*** Each security agreement describes various types of collateral status assigned based on the member's business needs and on the Bank's determination of the member's current financial condition and credit product usage, as well as other available information.

The Bank monitors eligible loan collateral for depository members using the Qualifying Collateral Report (QCR), which is intended to provide timely, detailed collateral information, and to strengthen the Bank's collateral analytical review procedures. The QCR is derived from regulatory financial reports which are submitted quarterly (or monthly) to the Bank by the member. For members that submit a QCR, lending value is determined based on a percentage of the unpaid principal balance of qualifying collateral (commonly referred to as the collateral weight). Qualifying collateral is determined by deducting ineligible loans from the gross call report amount for each asset category.

The Bank may require a member to provide a detailed listing of eligible collateral being pledged if the member is under a specific agreement or participates in the Bank's market-value based pricing program, or based on the borrowers' financial condition. In these circumstances, the member typically retains physical possession of collateral pledged to the Bank but provides a listing of assets pledged. A member may benefit from providing a detailed loan listing as a participant in the Bank's market-value based pricing program since it may result in a higher collateral weighting being applied to the collateral resulting in higher borrowing capacity. The Bank also benefits from members providing detailed loan listings because they provide more loan information to calculate a more precise valuation of the collateral.

In certain circumstances, the Bank requires the member to deliver physical possession, or grant control of, eligible loan collateral. Typically, the Bank takes physical possession/control of collateral if the financial condition of the member is deteriorating or if there is action taken against the member by its regulator. Loan collateral delivery is often required for members borrowing under specific pledge agreements (typically CDFIs, HFAs, and insurance companies) as a practical means for maintaining specifically listed collateral. The Bank also requires delivery of loan collateral from de novo members at least until two consecutive quarters of profitability are achieved and for any other new member where a pre-existing blanket lien is in force with another creditor unless an effective subordination agreement is executed with such other creditor. Securities collateral must also be delivered by placing it in a Bank-restricted account or with an approved third-party custodian, subject to a control agreement in favor of the Bank.

In addition, members that do not submit a QCR or participate in the Bank's market-value based pricing program are required to complete an Annual Collateral Certification Report.

All eligible collateral securing advances are discounted to protect the Bank from loss in the event of default, including under adverse conditions. These discounts, also referred to as "haircuts", vary by collateral type and the value of the collateral. The haircuts typically include margins for estimated costs to sell or liquidate the collateral and the risk of a decline in the collateral value due to market or credit volatility. The Bank reviews the collateral weightings periodically and may adjust them, as well as the members' reporting requirements to the Bank, for individual borrowers on a case-by-case basis.

***Borrowing Capacity.*** The Bank determines the collateral each member has available by reviewing, on a quarterly basis, call reports the members file with their primary regulators. The resulting total value of collateral available to be pledged to the Bank after applying the appropriate collateral weights is referred to as a member's maximum borrowing capacity (MBC). A member's credit product usage and current financial condition dictate the types of reporting that a member must submit to the Bank. All members who are not community financial institutions (CFIs) as defined below must file a QCR or loan listing at least quarterly.

The Bank also performs periodic collateral reviews of its members to confirm the amounts and quality of the eligible collateral. For certain pledged residential and commercial mortgage loan collateral, as well as delivered and Bank-controlled securities, the Bank employs outside service providers to assist in determining market values. In addition, the Bank has developed and maintains an Internal Credit Rating (ICR) system that assigns each member a numerical credit rating on a scale of one to ten, with one being the best rating. Credit availability and term guidelines are primarily based on a member's ICR and MBC usage. Using a risk-based approach, the Bank considers the payment status, collateral types and concentration levels, and borrower's financial condition to be indicators of credit quality. The Bank's assessment of a member's financial condition may require certain risk mitigation actions, including reduced advance tenor and change in availability of certain credit products.

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The Bank reserves the right, at its discretion, to refuse certain collateral or to adjust collateral weightings. In addition, the Bank can require additional or substitute collateral while any obligations of a member to the Bank remain outstanding to protect the Bank's security interest and ensure that it remains fully secured at all times.

See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for further information on collateral policies and practices and details of eligible collateral, including amounts and percentages of eligible collateral securing members' obligations to the Bank as of December 31, 2025.

As additional security for each member's obligations to the Bank, the Bank has a statutory lien on the member's capital stock in the Bank. In the event of deterioration in the financial condition of a member, the Bank can take possession or control of sufficient eligible collateral to further perfect its security interest in collateral pledged to secure the member's obligations to the Bank. A member with deteriorating creditworthiness is required to deliver collateral to the Bank or the Bank's custodian to secure the member's obligations with the Bank. Furthermore, the Bank requires specific approval of each of such member's new or renewed advances.

***Priority.*** The FHLBank Act generally affords any security interest granted to the Bank by any member, or any affiliate of a member, priority over the claims and rights of any third party, including any receiver, conservator, trustee, or similar party having rights of a lien creditor. The only two exceptions are: (1) claims and rights that would be entitled to priority under otherwise applicable law and are held by actual bona fide purchasers for value; and (2) parties that are secured by actual perfected security interests ahead of the Bank's security interest. The Bank has detailed liquidation plans in place which are intended to facilitate the prompt exercise of the Bank's rights regarding securities, loan collateral, and other collateral upon the failure of a member. Management believes that adequate policies and procedures are in place to effectively manage the Bank's credit risk associated with lending to members and nonmember housing associates.

***Types of Collateral.*** Single-family, residential mortgage loans may be used to secure members' obligations to the Bank. The Bank contracts with a leading provider of comprehensive mortgage analytical pricing to provide market valuations of some listed and delivered residential mortgage loan collateral. In determining borrowing capacity for members with non-listed and non-delivered collateral, the Bank utilizes book value as reported on each member's regulatory call report.

Loans that do not have a paper-based promissory note with a "wet ink" signature are ineligible for collateral purposes, with the exception of Bank accepted eNotes (digitally executed loan documents that are saved in the Bank's eVault) subject to the Banks's requirements and guidelines.

The Bank may also accept other real estate related collateral as eligible collateral if it has a readily ascertainable value, the Bank is able to perfect its security interest in such collateral, and if the collateral meets policy eligibility standards. The Bank uses a leading provider of multi-family and commercial mortgage analytical pricing to provide more precise valuations of listed and delivered multi-family and commercial mortgage loan collateral.

A third category of eligible collateral is high quality investment securities, which members have the option to deliver to the Bank to obtain or increase their MBC. These securities are valued daily upon delivery. See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management - Collateral Agreements and Valuation in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for a definition of these high quality investment securities.

The Bank also accepts FHLBank cash deposits as eligible collateral. In addition, member CFIs may pledge a broader array of collateral to the Bank, including secured small business, small farm, small agri-business and community development loans. Applicable law defines member CFIs as Federal Deposit Insurance Corporation (FDIC)-insured institutions with no more than $1.5 billion (the limit as of January 1, 2026) in average assets over the past three years. This limit may be adjusted by the Finance Agency based on changes in the Consumer Price Index. The determination to accept such collateral is at the discretion of the Bank and is made on a case-by-case basis. Advances to CFIs are also collateralized by sufficient levels of non-CFI collateral. See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for the percentage of each type of collateral held by the Bank at December 31, 2025.

The Bank does not accept subprime residential mortgage loans (defined as FICO<sup>®</sup> score of 660 or below. FICO is a registered trademark of Fair Isaac Corporation) as qualifying collateral unless certain mitigating factors are met. The Bank requires members to identify the amount of subprime and nontraditional mortgage collateral in their QCRs.

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Nontraditional residential mortgage loans are defined by the Bank's Collateral Policy as mortgage loans that allow borrowers to defer payment of principal or interest. These loans exhibit characteristics that may result in increased risk relative to traditional residential mortgage loan products. They may pose even greater risk when granted to borrowers with undocumented or undemonstrated repayment capacity as may be the case, for example, with low or no documentation loans or credit characteristics that would be characterized as subprime.

Regarding nontraditional mortgage collateral for the QCR, the Bank requires filing members to stratify their holdings of first lien residential mortgage loans into traditional, qualifying low FICO, and qualifying unknown FICO categories. Under limited circumstances, the Bank allows nontraditional residential mortgage loans that are consistent with Federal Financial Institutions Examination Council (FFIEC) guidance to be pledged as collateral and used to determine a member's MBC.

Management believes that the Bank has limited collateral exposure to subprime and nontraditional loans due to its conservative policies pertaining to collateral and low credit risk due to the design of its mortgage loan purchase programs. See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for specific requirements regarding subprime and nontraditional loan collateral and additional information on collateral policies and practices.

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**Investments**

***Overview.*** The Bank maintains a portfolio of investments for two main purposes: liquidity and additional earnings. The Bank invests in short term instruments for operating liquidity, which may consist of interest-bearing deposits, certificates of deposit, Federal funds sold, securities purchased under agreements to resell, and U.S. Treasury obligations classified as trading or AFS. The Bank also maintains a contingency liquidity investment portfolio which may consist of certificate of deposits and unencumbered repurchase-eligible assets within its available-for-sale (AFS) and held-to-maturity (HTM) securities portfolio. These securities may also be pledged as collateral for derivative transactions.

The Bank further enhances income by acquiring securities issued by GSEs, state and local government agencies, and MBS. The Bank's private label MBS portfolio continues to run off; no private label MBS have been purchased since 2007.

The long-term investment portfolio is intended to provide the Bank with higher returns than those available in the short-term money markets. See the Credit and Counterparty Risk – Investments discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for discussion of the credit risk of the investment portfolio and further information on these securities' current ratings.

***Prohibitions.*** Under Finance Agency regulations, the Bank is prohibited from purchasing certain types of securities, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• instruments, such as common stock, that represent an ownership interest in an entity, other than stock in small business investment companies or certain investments targeted to low-income persons or communities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• instruments issued by non-U.S. entities, other than those issued by United States branches and agency offices of foreign commercial banks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-investment-grade debt instruments, other than certain investments targeted to low-income persons or communities and instruments that were downgraded after purchase by the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whole mortgages or other whole loans, other than: (1) those acquired under the Bank's mortgage purchase program; (2) certain investments targeted to low-income persons or communities; (3) certain marketable direct obligations of state, local or tribal government units or agencies that are of investment quality; (4) MBS or asset-backed securities (ABS) backed by manufactured housing loans or HELOCs; and (5) certain foreign housing loans authorized under Section 12(b) of the FHLBank Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-U.S. dollar denominated securities.

Finance Agency regulations further limit the Bank's investment in MBS. These regulations require that the total book value of MBS owned by the Bank not exceed 300% of the Bank's previous month-end regulatory capital on the day of purchase of additional MBS. In addition, the Bank is prohibited from purchasing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest-only or principal-only strips of MBS;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• residual-interest or interest-accrual classes of collateralized mortgage obligations and real estate mortgage investment conduits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fixed-rate or floating-rate MBS that on the trade date are at rates equal to their contractual cap and that have average lives that vary by more than six years under an assumed instantaneous interest rate change of 300 basis points.

The Bank is prohibited from purchasing an FHLBank System consolidated obligation as part of the consolidated obligation's initial issuance. The Bank's investment policy is even more restrictive, as it prohibits it from investing in FHLBank consolidated obligations for which another FHLBank is the primary obligor. The Federal Reserve Board (Federal Reserve) requires Federal Reserve Banks (FRBs) to release principal and interest payments on the FHLBank System consolidated obligations only when there are sufficient funds in the FHLBanks' account to cover these payments. The prohibitions on purchasing FHLBank consolidated obligations noted above will be temporarily waived if the Bank is obligated to accept the direct placement of consolidated obligation discount notes to assist in the management of any daily funding shortfall of another FHLBank.

The Bank does not consolidate any off-balance sheet special-purpose entities or other conduits.

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**Mortgage Partnership Finance**<sup>®</sup> **(MPF**<sup>®</sup>**) Program**

Under the MPF Program, the Bank purchases qualifying 5- to 30-year conventional conforming and government-insured fixed-rate mortgage loans secured by one-to-four family residential properties. The MPF Program provides participating members and eligible housing associates a secondary market alternative that allows for increased balance sheet liquidity and provides a method for removal of assets that carry interest rate and prepayment risks from their balance sheets. In addition, the MPF Program provides a greater degree of competition among mortgage purchasers and allows small and mid-sized community-based financial institutions to participate more effectively in the secondary mortgage market. The FHLBank of Chicago, in its role as MPF Provider, provides the programmatic and operational support for the MPF Program and is responsible for the development and maintenance of the origination, underwriting and servicing guides.

The Bank currently offers four products under the MPF Program to Participating Financial Institutions (PFIs): MPF Original, MPF 35, MPF Government, and MPF Xtra. The MPF Xtra product is described below. Further details regarding the credit risk structure for each of the other MPF products, as well as additional information regarding the MPF Program and the products offered by the Bank, is provided in the Financial Condition section and the Credit and Counterparty Risk - Mortgage Loans discussion in Risk Management, both in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

***PFI.*** Members and eligible housing associates must apply to become a PFI. The Bank reviews their eligibility including servicing qualifications and ability to supply documents, data and reports required to be delivered under the MPF Program. As of December 31, 2025, the Bank had 111 members as approved PFIs.

Under the MPF Program, PFIs generally market, originate and service qualifying residential mortgages for sale to the Bank. Member banks have direct knowledge of their mortgage markets and have developed expertise in underwriting and servicing residential mortgage loans. By allowing PFIs to originate mortgage loans, whether through retail or wholesale operations, and to retain or sell servicing of mortgage loans, the MPF Program gives control of the mortgage process to PFIs. PFIs also may earn servicing income if they choose to retain loan servicing or receive a servicing released premium, if they chose to sell servicing rights to a third-party.

During the life of the loan, PFIs are paid a credit enhancement (CE) fee for retaining and managing a portion of the credit risk in the conventional mortgage loan portfolios sold to the Bank under the MPF Original and MPF 35 Programs. The CE structure motivates PFIs to minimize loan losses on mortgage loans sold to the Bank. The Bank is responsible for managing the interest rate risk, prepayment risk, liquidity risk and a portion of the credit risk associated with the mortgage loans.

***Mortgage Loan Purchases.*** The Bank and the PFI enter into a Master Commitment which provides the general terms under which the PFI will deliver mortgage loans, including a maximum loan delivery amount, maximum CE amount and expiration date. Mortgage loans are purchased by the Bank directly from a PFI pursuant to a delivery commitment, an agreement between the PFI and the Bank.

The Finance Agency has established housing goals whereby at least 20 percent of the Bank's mortgage purchases must be for low-income families, very low-income families, or families in low-income areas, and at least 50 percent of the Bank's active mortgage sellers must be community-based PFIs. The Bank met each of the two housing goals during the year ended December 31, 2025, as 37.2 percent of the mortgage loans purchased by the Bank were comprised of loans that were made to low-income or very low-income families, or to families in low- income areas, and 55.6 percent of members that sold mortgage loans to the Bank were community-based PFIs.

***Mortgage Loan Participations.*** The Bank may sell participation interests in purchased mortgage loans to other FHLBanks, institutional third party investors approved in writing by the FHLBank of Chicago, the member that provided the CE, and other members of the FHLBank System. The Bank also may purchase mortgage loans from other FHLBanks.

***Mortgage Loan Servicing.*** Under the MPF Program, PFIs may retain or sell servicing to third parties. The Bank does not service loans or own any servicing rights. The FHLBank of Chicago acts as the master servicer for the Bank and has contracted with Computershare Limited to fulfill the master servicing duties. The Bank pays the PFI or third-party servicer a servicing fee to perform these duties. The servicing fee is 25 basis points for conventional loans and 44 basis points for government loans.

***MPF Xtra.*** MPF Xtra allows PFIs to sell residential, conforming, fixed-rate mortgages to FHLBank of Chicago, which concurrently sells them to Fannie Mae on a nonrecourse basis. MPF Xtra does not have the CE structure of the traditional MPF Program. Additionally, because these loans are sold from the PFI to FHLBank of Chicago to Fannie Mae, they are not reported on the Bank's Statements of Condition. With the MPF Xtra product, there is no credit obligation assumed by the PFI or the Bank and no CE fees are paid. PFIs which have completed all required documentation and training are eligible to offer the

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product. As of December 31, 2025, 26 PFIs were eligible to offer the product. The Bank receives a nominal fee for facilitating these MPF Xtra transactions.

"Mortgage Partnership Finance", "MPF", "MPF Xtra", and "MPF 35" are registered trademarks of the FHLBank of Chicago.

**Specialized Programs**

For additional information on Affordable Housing Program (AHP) and other similar programs, refer to the Community Products section in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K. In addition, the Bank notes that, from time to time, it may offer and has offered certain special purpose credit programs with targeted goals; however, the Bank does not intend to offer any such program in 2026.

**Deposits**

The FHLBank Act allows the Bank to accept deposits from its members, any institution for which it is providing correspondent services, other FHLBanks, or other federal instrumentalities. Deposit programs are low-cost funding resources for the Bank. The Bank offers several types of deposit programs to its members including demand, overnight and term deposits.

**Debt Financing — Consolidated Obligations**

The primary source of funds for the Bank is the issuance of debt securities, known as consolidated obligations, which are then sold by dealers to investors. These consolidated obligations are issued as both bonds and discount notes, depending on maturity. Consolidated obligations are the joint and several obligations of the 11 FHLBanks. Consolidated obligations are not obligations of the U.S. government, and the U.S. government does not guarantee them. Moody's has rated consolidated obligations Aa1 with a stable outlook/P-1, and S&P has rated them AA+ with stable outlook/A-1+. The following table presents the total par value of the consolidated obligations of the Bank and the FHLBank System at December 31, 2025 and 2024.

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| | | |
|:---|:---|:---|
| (in millions) | December 31, 2025 | December 31, 2024 |
| Consolidated obligation bonds | $**50887.3** | $88295.4 |
| Consolidated obligation discount notes | **16813.6** | 11777.4 |
| Total Bank consolidated obligations | **67700.9** | 100072.8 |
| Total FHLBank System combined consolidated obligations | $**1151784.0** | $1192968.4 |

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***OF.*** The OF has responsibility for facilitating the issuance and servicing of consolidated obligations on behalf of the FHLBanks. The OF also serves as a source of information for the Bank on capital market developments, markets the FHLBank System's consolidated obligations on behalf of the FHLBanks, selects and evaluates underwriters, prepares combined financial reports, and manages the Banks' relationship with the rating agencies and the U.S. Treasury with respect to the consolidated obligations.

***Consolidated Obligation Bonds.*** On behalf of the Bank, the OF issues bonds that the Bank uses to fund advances, the MPF Program and its investment portfolio. Generally, the maturity of these bonds ranges from one year to ten years, although the maturity is not subject to any statutory or regulatory limit. Bonds can be issued and distributed through negotiated or competitively bid transactions with approved underwriters or selling group members. In some instances, the Bank swaps its term fixed-rate debt issuance to floating rates through the use of interest rate swaps. Bonds can be issued through:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a daily auction for both bullet (non-callable and non-amortizing) and American-style (callable daily after lockout period expires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a selling group, which typically has multiple lead investment banks on each issue; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a negotiated transaction with one or more dealers.

&nbsp;&nbsp;&nbsp;&nbsp;The process for issuing bonds under the three methods above can vary depending on whether the bonds are non-callable or callable. For example, the Bank can request funding through the TAP auction program (quarterly debt issuances that reopen or "tap" into the same CUSIP number) for fixed-rate non-callable (bullet) bonds. This program uses specific maturities that may be reopened daily during a three-month period through competitive auctions. The goal of the TAP program is to aggregate frequent smaller issues into a larger bond issue that may have greater market liquidity.

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***Consolidated Obligation Discount Notes.*** The OF also issues discount notes to provide short-term funds for advances for seasonal and cyclical fluctuations in deposit flows, mortgage financing, short-term investments and other funding needs. Discount notes are sold at a discount and mature at par and have maturities of up to 365 days. There are three methods for issuing discount notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The OF auctions one-, two-, three- and six-month discount notes twice per week and any FHLBank can request an amount to be issued. The market sets the price for these securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Via the OF's window program, through which any FHLBank can offer a specified amount of discount notes at a maximum rate and a specified term up to 365 days. These securities are offered daily through a consolidated discount note selling group of broker-dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Via reverse inquiry, wherein a dealer requests a specified amount of discount notes be issued for a specific date and price. The OF presents reverse inquiries to the FHLBanks, which may or may not choose to issue those particular discount notes.

See the Liquidity and Funding Risk discussion in the Risk Management section in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for further information regarding consolidated obligations and related liquidity risk.

**Capital Resources**

***Capital Plan.*** The Bank currently has two subclasses of capital stock: B1 membership and B2 activity. The Board establishes requirements for the amount of capital stock a member must hold for each subclass based on ranges provided in the Capital Plan, as described in the tables below. The Bank's membership stock requirement is based on the annual Membership Asset Value as calculated by the Bank based on its members' prior December 31 call report data. Membership assets include, but are not limited to, the following: U.S. Treasury securities; U.S. Agency securities; U.S. Agency MBS; non-Agency MBS; 1-4 family residential first mortgage loans; multi-family mortgage loans; 1-4 family residential second mortgage loans; home equity lines of credit; and commercial real estate loans. A factor is applied to each membership asset category.

&nbsp;&nbsp;&nbsp;&nbsp;Each member is required to purchase and maintain membership stock equal to the following:

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| | | | |
|:---|:---|:---|:---|
| | Range of membership stock requirement according to the Capital Plan | Range of membership stock requirement according to the Capital Plan | |
| | Minimum | Maximum |<br>Current requirement |
| % of membership assets | 0.05% | 1.0% | 0.1% |
| Membership stock cap | $5 million | $100 million | $25 million |
| Membership stock floor |  |  | $10 thousand |

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&nbsp;&nbsp;&nbsp;&nbsp;

Each member is required to purchase and maintain activity stock equal to the percentage of the book value of the following transactions as shown in the table below:

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| | | | |
|:---|:---|:---|:---|
| | Range of activity stock requirement according to the Capital Plan | Range of activity stock requirement according to the Capital Plan | |
| | Minimum | Maximum |<br>Current requirement |
| Outstanding advances | 2.0% | 6.0% | 4.0% |
| Acquired member assets (AMA) | 0.0% | 6.0% | 4.0% |
| Letters of credit | 0.0% | 4.0% | 0.75% |
| Outstanding advance commitments (settling more than 30 days after trade date) | 0.0% | 6.0% | 0.0% |

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Bank capital stock is not publicly traded; it may be issued, redeemed and repurchased at its stated par value of $100 per share. Under the Capital Plan, capital stock is redeemed upon five years' notice, subject to certain conditions. In addition, the Bank has the discretion to repurchase excess stock from members. The Bank's current practice is to repurchase excess capital stock on a weekly basis.

***Dividends and Retained Earnings.*** As prescribed in the Capital Plan, the Bank may pay dividends on its capital stock only out of unrestricted retained earnings or current net income, subject to certain limitations and conditions. The Bank's Board may declare and pay dividends in either cash or capital stock. The Bank's practice has been to pay a cash dividend. The amount of

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dividends the Board determines to pay out is affected by, among other factors, the level of retained earnings recommended under the Bank's retained earnings policy. In addition, as set forth in the Capital Plan, the dividends paid on subclass B2 activity stock will be equal to or higher than the dividends being paid on subclass B1 membership stock at that time. For further information on dividends, see Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

As of December 31, 2025, the balance in retained earnings was $2,245.7 million, of which $783.4 million was deemed restricted. Refer to the Capital Resources section and the Risk Governance discussion in Risk Management, both in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for additional discussion of the Bank's capital-related metrics, retained earnings, dividend payments, capital levels and regulatory capital requirements. For further information on restricted retained earnings see Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

**Derivatives and Hedging Activities**

The Bank may enter into interest rate swaps, swaptions, interest rate cap and floor, and futures and forward contracts (collectively, derivatives) to manage its exposure to changes in interest rates and prepayment risk. The Bank uses these derivatives to adjust the effective maturity, repricing frequency, or option characteristics of financial instruments to achieve its risk management objectives. The Bank may use derivative financial instruments in the following ways: (1) by designating them as a fair value hedge of an underlying financial instrument or a firm commitment; or (2) in asset/liability management (i.e., an economic hedge).

The Finance Agency regulates the Bank's use of derivatives. The regulations prohibit the trading in or speculative use of these instruments and limit credit risk arising from these instruments. All derivatives are recorded in the Statements of Condition at fair value. See Note 7 - Derivatives and Hedging Activities in Item 8. Financial Statements and Supplementary Data in this Form 10-K for additional information.

**Competition**

***Advances.*** The Bank competes with other suppliers of wholesale funding, both secured and unsecured, including the FRBs, commercial banks, investment banking divisions of commercial banks, and brokered deposits, largely on the basis of interest rates as well as types and weightings of collateral. Competition is often more significant when originating advances to larger members, which have greater access to the capital markets. Competition within the FHLBank System is limited; however, there may be some members of the Bank that have affiliates that are members of other FHLBanks. The Bank's ability to compete successfully with other suppliers of wholesale funding for business depends primarily on pricing, dividends, capital stock requirements, credit and collateral terms, and products offered.

***Purchase of Mortgage Loans.*** Members have several alternative outlets for their mortgage loan production including Fannie Mae, Freddie Mac, and other secondary market conduits. The MPF Program competes with these alternatives on the basis of price and product attributes. Additionally, a member may elect to hold all or a portion of its mortgage loan production in portfolio, potentially funded by an advance from the Bank.

***Issuance of Consolidated Obligations.*** The Bank competes with the U.S. Treasury, Fannie Mae, Freddie Mac and other GSEs as well as corporate, sovereign and supranational entities for funds raised through the issuance of unsecured debt in the national and global debt markets. Increases in the supply of competing debt products may, in the absence of increases in demand, result in higher debt cost or lower amounts of debt issued at the same cost than otherwise would be the case. The Bank's status as a GSE affords certain preferential treatment for its debt obligations under the current regulatory scheme for depository institutions operating in the U.S. as well as preferential tax treatment in a number of state and municipal jurisdictions. Any change in these regulatory conditions as they affect the holders of Bank debt obligations would likely alter the relative competitive position of such debt issuance and result in potentially higher costs to the Bank.

**Major Customers**

See the discussion of major customers as part of the Segment Reporting section in Note 1 - Summary of Significant Accounting Policies in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

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**Human Capital Resources**

The Bank's human capital is a significant contributor to the success of the Bank's strategic business objectives. In managing the Bank's human capital, the Bank focuses on its workforce profile and the various programs and philosophies described below.

***Workforce Profile.*** The Bank's workforce is primarily comprised of corporate employees, with the Bank's principal operations in one location. As of December 31, 2025, the Bank had 245 full-time and 0 part-time employees. The Bank's workforce includes many longer-tenured employees. The Bank strives to both develop talent from within the organization and supplement with external hires. As part of the Bank's culture of continuous improvement, development of talent internally results in institutional strength and continuity and promotes loyalty and commitment in the Bank's employee base, which furthers its success, while adding new employees contributes to new ideas, continuous improvement and the Bank's goals of an inclusive and engaged culture. As of December 31, 2025, the average tenure of the Bank's employees was 9.3 years. There are no collective bargaining agreements with the Bank's employees.

***Total Rewards.*** The Bank seeks to attract, develop, and retain talented employees to achieve its strategic business initiatives, enhance business performance and provide members a reasonable return on their investment in the Bank. The Bank effects this objective through a combination of development programs, benefits and employee wellness programs and recognizing and rewarding performance. Specifically, the Bank's programs include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash compensation that includes competitive salary, performance-based incentive, and other subsidies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Benefits – health insurance, dental and vision, life and accidental, death and dismemberment insurance, supplemental life insurance, a 401(k) retirement savings plan with employer match and profit-sharing opportunities, a pension benefit for employees hired before January 1, 2019, accident, critical illness, and short-term and long-term disability insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wellness program – employee assistance program, health coaching and interactive education sessions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Time away from work –including time off for vacation, illness, personal, holiday and volunteer opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Culture – employee meetings and communications, employee resource groups and various Bank culture initiatives, including an employee-run activities group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Work/Life integration – flexible work arrangement, 100% paid salary continuation for short term disability, parental and military leave, bereavement, jury duty and court appearances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development programs and training – individual development plans, leadership assessment and development, employee engagement, educational assistance programs, internal educational and development opportunities, fee reimbursement for external educational and development programs, and mentoring and coaching; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Management succession planning – the Bank's Board and leadership actively engage in management succession planning, with defined plans for more than 30 key roles and development plans for potential successors for those roles.

The Bank's performance management framework includes a cascading annual goal setting process, as well as quarterly performance discussions leading to annual reviews. Overall annual ratings are calibrated, and merit and incentive payments are differentiated for the Bank's highest performers.

The Bank currently maintains a "hybrid" working environment and is committed to the health, safety, and wellness of its employees. The Bank has safety protocols and procedures in place and could shift to a full remote posture in the event of a health or safety incident.

The Bank has designated a business area to oversee compliance with its standards, procedures, and planning to support, in accordance with applicable law, inclusion in all levels of its business and activities, including employment and contracting. As described above, the Bank also offers a range of opportunities for all its employees to connect and facilitate personal and professional growth through broad engagement efforts, training, and leadership development.

**Taxation**

The Bank is exempt from all federal, state and local taxation with the exception of real estate property taxes and certain employer payroll taxes.

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**AHP**

The FHLBanks must set aside for AHP annually, on a combined basis, the greater of $100 million or 10% of current year's net income (GAAP net income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP). If the Bank experienced a full year net loss, as defined in Note 10 - Affordable Housing Program (AHP) and Voluntary Contributions in Item 8. Financial Statements and Supplementary Data in this Form 10-K, the Bank would have no obligation to AHP for the year except in the following circumstance: if the result of the combined 10% calculation described above is less than $100 million for all 11 FHLBanks, then the FHLBank Act requires that each FHLBank contribute such prorated sums as may be required to assure that the aggregate contributions of the FHLBanks equal $100 million. The proration would be made on the basis of an FHLBank's net income in relation to the income of all FHLBanks for the previous year. Each FHLBank's required annual AHP contribution is limited to its annual net income. If an FHLBank finds that its required contributions are negatively impacting the financial stability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. As allowed by AHP regulations, an FHLBank can elect to allot fundings based on future periods' required AHP contributions to be awarded during a year (referred to as Accelerated AHP). Accelerated AHP allows an FHLBank to commit and disburse AHP funds to meet the FHLBank's mission when it would otherwise be unable to do so, based on its normal funding mechanism.

For additional details regarding the AHP assessment, refer to the Earnings Performance discussion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 10 - Affordable Housing Program (AHP) and Voluntary Contributions in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

**SEC Reports and Corporate Governance Information**

The Bank is subject to the informational requirements of the 1934 Act and, in accordance with the 1934 Act, files annual, quarterly and current reports with the SEC. The Bank's SEC File Number is 000-51395. The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC, including the Bank's filings. The Bank's financial information is also filed in inline eXtensible Business Reporting Language (iXBRL) as required by the SEC. The SEC's website address is *<u>www.sec.gov</u>*.

The Bank also makes the Annual Reports filed on Form 10-K, Quarterly Reports filed on Form 10-Q, certain Current Reports filed on Form 8-K, and amendments to those reports filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the 1934 Act available free of charge on or through its internet website as soon as reasonably practicable after such material is filed with or furnished to the SEC. The Bank's internet website address is *<u>www.fhlb-pgh.com</u>*. The Bank filed the certifications of the President and Chief Executive Officer and Chief Financial Officer (principal financial officer) pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 with respect to the Bank's 2025 Annual Report on Form 10-K as exhibits to this Report.

Information about the Bank's Board and its committees and corporate governance, as well as the Bank's Code of Conduct, is available in the corporate governance section of the "About Us" dropdown on the Bank's website at *<u>www.fhlb-pgh.com</u>*. Printed copies of this information may be requested without charge by written request to the Bank's Legal Department.

**Item 1A: Risk Factors**

There are many factors, including those beyond the Bank's control, that could cause financial results to differ significantly from the Bank's expectations. The following discussion summarizes the material factors that should be considered in evaluating the Bank's business. This discussion is not exhaustive, and there may be other factors not described or factors, such as business, credit, market/liquidity and operational risks, which are described elsewhere in this report (see the Risk Management discussion in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K), which could cause results to differ materially from the Bank's expectations. However, management believes that these factors represent the material risks relevant to the Bank, its business and industry. Any factor described in this report could by itself, or together with one or more other factors, adversely affect the Bank's business operations, future results of operations, financial condition or cash flows.

<u>BUSINESS RISK</u>

***Changes in the legislative and regulatory environment could negatively affect the Bank's business, results of operations, financial condition, reputation and members' investment in the Bank.***

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The FHLBanks' business operations, funding costs, rights, obligations and the environment in which FHLBanks carry out their mission continue to be impacted by an evolving legal and regulatory environment, as discussed in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Legislative and Regulatory Developments. Further, Congress may enact GSE or FHLBank reform legislation, which could have a material effect on the Bank including debt issuance, financial condition and results of operations. The Bank notes that, from time to time, the executive branch, Congress, and various independent federal agencies have advanced plans through executive orders, legislation, or regulation or guidance, to reform the federal regulatory landscape regarding U.S. housing finance. The Bank also notes public statements by the federal executive administration regarding plans for the possible resolution of Fannie Mae and Freddie Mac's respective conservatorships. If implemented, these plans could directly or indirectly impact the business and results of operations of other GSEs that support the U.S. housing market, including the FHLBanks. Any such changes or reforms that are implemented could impact the profitability of the FHLBanks or limit future growth opportunities. Furthermore, increased regulatory and legislative attention on the possibility of requiring the FHLBanks by statute to set aside higher percentages of their earnings for their affordable housing and community products than is currently required by law could lead to increased assessments to the Bank's AHP, resulting in higher expenses for the Bank, which would result in less net income being available for other purposes. In addition, future legislative changes to applicable law may affect the Bank's business, risk profile, results of operations and financial condition. For example, from time to time, there have been legislative efforts and discussions regarding eligibility of certain entities, including non-banks, to become members of the FHLBank System. Changes to membership eligibility criteria could materially impact the Bank's risk profile, financial condition and results of operations.

The FHLBanks are also impacted by the Finance Agency's extensive statutory and regulatory authority over the FHLBanks. The authority includes, without limitation, the authority to liquidate, merge or consolidate FHLBanks, to redistrict or adjust equities among the FHLBanks, and to impose limits on permissible FHLBank products and activities within the terms set forth in applicable statutes establishing the scope of the Finance Agency's authority. The Bank cannot predict if or how the Finance Agency, could exercise such authority with respect to any FHLBank or the potential impact of such action on the Bank's business and operations or on members' investment in or activity with the Bank.

The Bank notes continuing developments in the Finance Agency's and the current federal executive administration's areas of focus and regulatory priorities that may result in potential changes in the Bank's regulatory environment, including without limitation, as discussed in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations —Legislative and Regulatory Developments. The Bank cannot predict changes in legislative or regulatory requirements or guidance, or any new legislation or regulations, or how they might impact the Bank's business or operations. The Bank also cannot predict the federal executive administration's or the Finance Agency's actions on U.S. housing finance and government-sponsored enterprises, including actions taken relating to large institutional investor purchases of single family homes, actions regarding the revision or end of conservatorships of Fannie Mae and Freddie Mac or potential reforms or enhancements to their capital structure, the imposition of new requirements or limitations on their existing authorities or changes in the nature of their government support, or any corresponding impacts to the FHLBank System, the secondary mortgage and mortgage-backed securities market, or the mortgage industry. Any such changes, as well as any resulting increased scrutiny of the Bank and the FHLBank System and its mission and activities, however, could materially affect the Bank's business operations, results of operations and reputation, and the value of FHLBank membership.

The Bank cannot predict new or changes in legislative or regulatory requirements or guidance or the effect of any new legislation or regulations on the Bank's operations. Changes in the Finance Agency's regulatory expectations, other political changes, policy changes, trends, government or government advisory committee actions or inaction, new or modified legislation, or government actions impacting the Bank's members and counterparties, could impact the Bank's operational costs and expenses, result in heightened scrutiny of the Bank, and/or impact the Bank's business, strategy and operations, which may affect the Bank's financial condition, or results of operations, or the value of membership in the Bank. These changes may include changes relating to the FHLBanks' mission, liquidity role, membership and lending requirements, affordable housing contributions, voluntary programs and support for community products, or changes to the Bank's operations, structure, and governance. The impact of any of the above could materially and negatively affect, and impose additional controls and restrictions on, the activities of the Bank. Regulatory requirements on the Bank's members may affect their capacity and demand for Bank products and, as a result, impact the Bank's operations and financial condition. Changes in Finance Agency regulations and other Finance Agency regulatory actions could result in, among other things, changes in the Bank's capital composition, an increase in the Bank's cost of funding, ability to accept certain types of collateral, a change in permissible business activities, a decrease in the size, scope or nature of the Bank's lending, investment or mortgage purchase program activities, or a decrease in demand for the Bank's products and services, which could negatively affect its financial condition and results of operations and members' investment in the Bank.

***Global or domestic financial market disruptions or geopolitical conditions could result in uncertainty and unpredictability for the Bank in managing its business.***

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The Bank's business, earnings and risk profile are affected by international, domestic and district-specific business, economic and geopolitical conditions and disruptions. These disruptions may include and have included, for example, U.S. government shutdowns such as the shutdowns in 2025 and early 2026, each of which resulted in market uncertainty and the interruption of certain data sources that the Bank uses, such as data from the U.S. Bureau of Labor Statistics. Further, such conditions and resulting potential market disruptions, which may also affect counterparty and members' business, include real estate values, residential mortgage originations, short-term and long-term interest rates, inflation and inflation expectations, recession or recessionary expectations, unemployment levels, money supply, fluctuations in both debt and equity markets, the strength of the U.S. dollar against other currencies, and the conditions of the foreign, domestic and local economies in which the Bank operates. Geopolitical instability or conflicts, such as ongoing hostilities between Russia and Ukraine, in the Middle East and in other areas may result in trade disruptions, sanctions or other market volatility which could adversely affect the Bank or its members. For example, supply chain disruptions and tariffs resulting from such hostilities may have a contributory impact on inflation and inflation expectations, and resulting supply issues and financial stresses may affect the Bank's business decisions or those of its members and may impact the Bank's results of operations. Widespread health emergencies or pandemics could also adversely affect the Bank's results of operations or financial condition by negatively impacting the economic environment and/or global markets, which may result in decreased demand for the Bank's products and services.

***The loss of significant Bank members or borrowers may have a negative impact on the Bank's advances, letters of credit, capital stock outstanding and MPF portfolio and could result in lower demand for its products and services, lower dividends paid to members and higher borrowing costs for remaining members, all of which may affect the Bank's results of operations and financial condition.***

One or more significant Bank members could decrease their business activities with the Bank, move their business to another FHLBank district, merge into a nonmember, withdraw their membership or fail, any of which occurrences could lead to a significant decrease in the Bank's total assets. At December 31, 2025, the Bank's five largest customers accounted for 69.6% of its total credit exposure (TCE) and owned 51.3% of its outstanding capital stock. Of these, two members had an outstanding advance balance in excess of 10% of the total advance portfolio. Further, two members had outstanding letters of credit in excess of 10% of total letters of credit. If any of the Bank's members with 10% or more of TCE paid off their outstanding advances, reduced their letter of credit activity with the Bank or, if applicable, withdrew from membership, the Bank could experience a material adverse effect on its outstanding advance levels and TCE, which would impact the Bank's financial condition and results of operations.

Additionally, the Bank participates in the MPF Program. During 2025, the Bank's three largest PFIs accounted for 57% of the mortgage loans purchased by the Bank, with one representing 35.9% of the total outstanding portfolio on December 31, 2025. If this PFI withdrew from or reduced its participation in the Bank's MPF Program, the Bank could experience a material adverse effect on its MPF portfolio, which would impact the Bank's financial condition and results of operations.

***The Bank faces competition for advances, letters of credit, mortgage loan purchases and access to funding, which could negatively impact earnings.***

The Bank's primary business is making advances to its members. The Bank competes with other suppliers of wholesale funding, both secured and unsecured, including commercial banks and their investment banking divisions, the FRBs, providers of brokered deposits and, in some circumstances, other FHLBanks. Members have access to alternative funding sources which may offer more favorable terms than the Bank offers on its advances, including more flexible credit or collateral standards. In addition, many of the Bank's competitors are not subject to the same body of regulations applicable to the Bank, which enables those competitors to offer products and terms that the Bank is not able to offer.

The Bank's letters of credit can be used to support certain obligations of its members. Alternatively, members may choose to use certain investment securities as support for these obligations. If member investment securities portfolios grow, the Bank may experience a decline in member demand for letters of credit.

In connection with the MPF Program, the Bank is subject to competition regarding the purchase of conventional, conforming fixed-rate mortgage loans. The Bank faces competition in the areas of customer service, product features and purchase prices for MPF loans and ancillary services. The Bank's strongest competitors are large mortgage aggregators, non-depository mortgage entities and the other housing GSEs (Fannie Mae and Freddie Mac). The Bank notes that the possible resolution of the conservatorships of Fannie Mae and Freddie Mac could result in heightened competition with those entities for the purchase of mortgage loans depending on how such resolution occurred. The Bank may also compete with other FHLBanks with which members have a relationship through affiliates. Competition among FHLBanks for MPF business may also be affected by the requirement that a member and its affiliates can sell loans into the MPF Program through only one FHLBank relationship at a time.

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In addition, the volume of conventional, conforming fixed-rate mortgages fluctuates depending on the level of interest rates. With 30-year mortgage rates above long-term averages and limited supply of available homes, affordability issues may persist and could ultimately impact loan volume and performance over time. If such a scenario would continue for an extended period of time, it could negatively impact the MPF Program's financial performance and, in turn, the Bank's financial condition and results of operations.

The FHLBanks also compete with the U.S. Treasury and other GSEs as well as corporate, sovereign and supranational entities for funds raised through the issuance of unsecured debt in the national and global debt markets. Increases in the supply of competing debt products may, in the absence of increases in demand, result in higher debt costs or lower amounts of debt issued at the same cost than otherwise would be the case. Increased competition could adversely affect the Bank's ability to have access to funding, reduce the amount of funding available or increase the cost of funding. Additionally, emerging digital assets, such as stablecoins, could introduce new forms of competition or impact member business models. Any of such developments could adversely affect the Bank's financial condition and results of operations.

***Natural disasters, including those resulting from climate change, could adversely affect the business, results of operations, financial condition or reputation of the Bank, its members or counterparties.***

Climate change may cause or intensify natural disasters, which could disrupt the business or damage the facilities of the Bank or its members, increase lending losses at its members, damage or destroy collateral that members have pledged to secure advances or mortgages that the Bank holds for its portfolio, and which could cause the Bank to experience losses or be exposed to a greater risk that pledged collateral would be inadequate in the event of a default. In addition, climate-related events and their effects on homeowners' insurance costs and availability could affect the business of the Bank's members and, in turn, could directly impact the demand for advances and the availability of mortgage investment opportunities, among other impacts.

<u>CREDIT RISK</u>

***The Bank is subject to credit risk due to default, including failure or ongoing instability of any of the Bank's members, derivative, money market or other counterparties, which could adversely affect the Bank's results of operations, financial condition or reputation.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank faces credit risk on advances, mortgage loans, investment securities, money market investments, derivatives, certificates of deposit, and other financial instruments. Current economic conditions affecting members and their customers, such as inflation, elevated interest rates, evolving and more complex member lending types (e.g., non-depository financial institutions) and member activities (e.g., cryptocurrency) and various other factors may be contributing to higher credit risk profiles that could lead to asset liability management challenges or potentially increased risk of loss at certain member institutions. A member failure without liquidation proceeds satisfying the amount of the failed institution's obligations and the operational cost of liquidating the collateral could impact the Bank's ability to issue debt.

The volatility of market prices and interest rates as well as the potential for fraud could affect the value of collateral held by the Bank as security for the obligations of Bank members as well as the ability of the Bank to liquidate the collateral in the event of a default by the obligor. Volatility within collateral indices may affect the method used in determining collateral weightings, which would ultimately affect the collateral value.

Member institution failures may reduce the number of current and potential members in the Bank's district. The resulting loss of business could negatively impact the Bank's financial condition and results of operations. During an economic downturn or period of significant economic and financial disruption and uncertainty, the number of Bank members exhibiting significant financial stress may increase, which may expose the Bank to additional member credit risk. Changes in market perception of the financial strength of a financial institution can occur very rapidly and can be difficult to predict. For example, commercial real estate sector challenges, including weaker leasing demand, lower occupancy rates and higher interest rates, may impact the value of commercial real estate loan related collateral pledged to the Bank and contribute to financial stress or failures of Bank members. Additionally, if a Bank member fails and the FDIC or the member (or another applicable entity) does not either (1) promptly repay all of the failed institution's obligations to the Bank or (2) assume the outstanding advances, the Bank may be required to liquidate the collateral pledged by the failed institution to satisfy its obligations to the Bank. If that were the case, the proceeds realized from the liquidation of pledged collateral may not be sufficient to fully satisfy the amount of the failed institution's obligations and the operational cost of liquidating the collateral. In addition, a default by a member with significant unsecured obligations to the Bank could result in significant losses, which would adversely affect the financial condition, results of operations and reputation of the Bank.

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There are several unique risks that the Bank may be exposed to regarding non-depository institutions. For example, individual state insolvency legislation terms may govern creditors' rights, which terms may not result in the Bank being able to liquidate collateral pledged to it by an insolvent insurance company member as readily as it may for depository institution members. Similarly, the Bank has non-depository CDFI members, which are not generally subject to banking or insurance regulations, which results in uncertainty regarding the Bank's timing and ability to liquidate collateral pledged to it by such a member in insolvency.

The insolvency of a major counterparty due to the credit quality and capital level of a counterparty or fraud resulting in the inability of a major counterparty to meet its obligations under unsecured credit transactions or other agreement, could cause the Bank to incur losses and have an adverse effect on the Bank's financial condition and results of operations.

In addition, the Bank's ability to engage in routine derivatives, funding and other transactions could be adversely affected by the actions, including fraud, and commercial soundness of other financial institutions. Financial institutions are interconnected as a result of trading, clearing, repos, or other relationships. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, could lead to market-wide disruptions in which it may be difficult for the Bank to find counterparties for such transactions. For additional discussion regarding the Bank's credit and counterparty risk, see the Credit and Counterparty Risk discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

***The MPF Program has different risks than those related to the Bank's traditional advance business, which could adversely impact the Bank's profitability.***

In contrast to the Bank's traditional member advance business, the MPF Program is highly subject to competitive pressures, more susceptible to loan losses and also carries more interest rate risk, prepayment risk, operational complexity and potential for fraud. General changes in market conditions could have a negative effect on the mortgage loan market resulting in a negative impact on the profitability of the MPF Program. These include but are not limited to: rising or elevated interest rates or housing prices resulting in slowing mortgage loan originations; an economic downturn creating increased defaults and lowered housing prices; innovative products that do not currently meet the criteria of the MPF Program; and new government programs or mandates.

The rate and timing of unscheduled payments and collections of principal on mortgage loans are difficult to predict and can be affected by a variety of factors, including the level of prevailing interest rates, the availability of lender credit, and other economic, demographic, geographic, tax and legal factors. The Bank manages prepayment risk through a combination of consolidated obligation issuance and, to a lesser extent, derivatives. If the level of actual prepayments is higher or lower than expected, the Bank may experience a mismatch with a related consolidated obligation issuance, which could have an adverse impact on net interest income. Also, increased prepayment levels will cause premium amortization to increase, reducing net interest income, and increase the potential for debt overhang. For certain MPF Program products, increased prepayments may also reduce credit enhancements available to absorb credit losses. To the extent one or more of the geographic areas in which the Bank's MPF loan portfolio is concentrated experiences considerable declines in the local housing market, declining economic conditions or a natural disaster, the Bank could experience an increase in the required allowance for credit losses on this portfolio.

The MPF Program is subject to risk that a borrower becomes delinquent or defaults on the Bank's MPF loans. In addition, changes in real estate values could impact borrower repayment behavior. If delinquency and default rates on certain MPF loans increase, or there are additional declines in residential real estate values, the Bank will experience credit losses on these loans to the extent available credit enhancement provided by the related PFI, if any, has been exhausted.

If FHLBank of Chicago changes or ceases to operate the MPF Program, this could have a negative impact on the Bank's mortgage purchase business, and, consequently, a negative impact on the Bank's financial condition and results of operations.

For a description of the MPF Program, the obligations of the Bank with respect to loan losses and a PFI's obligation to provide credit enhancement, see the Mortgage Partnership Finance Program discussion in Item 1. Business, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K. See additional details regarding Supplemental Mortgage Insurance (SMI) exposure in the Credit and Counterparty Risk - Mortgage Loans and Derivatives discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

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<u>MARKET/LIQUIDITY RISK</u>

***The Bank may be unable to optimally manage its market risk due to unexpected sizable adverse market movements that threaten the Bank's interest rate risk/market risk profile faster than Bank strategies can offset. In addition, the Bank's mortgage-related portfolio introduces specific interest rate and prepayment risk, which may impact the value of and income associated with those investments. Not prudently managing these risks may adversely affect the Bank's results of operations.***

The Bank is subject to various market risks, including interest rate risk and prepayment risk. The Bank realizes income primarily from the spread between interest earned on advances, MPF loans and investment securities and interest paid on debt and other liabilities. The Bank's financial performance is affected by fiscal and monetary policies of the Federal government and its agencies, particularly the policies of the Federal Reserve. The Federal Reserve's policies, which are difficult to predict, directly and indirectly influence the yield on the Bank's interest-earning assets and the cost of interest-bearing liabilities. The Federal Reserve continued to decrease the target range for the federal funds rate in 2025. The frequency and magnitude of interest rate changes affect market movements that can accentuate challenges of managing interest rate risk, as discussed below. The Bank's profitability and the market value of its equity are significantly affected by its ability to manage interest rate risk.

The Bank's ability to anticipate changes regarding the direction and speed of interest rate movements, or to hedge the related exposures, significantly affects the success of the asset and liability management activities and the level of net interest income. The Bank uses derivative instruments to reduce interest rate risk. The Bank has strategies which are intended to reduce the amount of one-sided fair value adjustments and the resulting impact to the Bank's income. However, market volatility affecting the valuation of instruments in hedging relationships can also cause income volatility to the degree that the change in the value of the derivative does not perfectly offset the change in the value of the hedged item. Should the use of derivatives be limited, with that activity being replaced with a higher volume of long-term debt funding, the Bank may still experience income volatility driven by the market and interest rate sensitivities.

The Bank uses a number of measures and analyses to monitor and manage interest rate risk. Given the unpredictability of the financial markets, capturing all potential outcomes in these analyses is not practical. Key assumptions include, but are not limited to, advance volumes and pricing, market conditions for the Bank's consolidated obligations, interest rate spreads and prepayment speeds and cash flows on mortgage-related assets. These assumptions are inherently uncertain and, as a result, the measures cannot precisely predict the impact of higher or lower interest rates on net interest income or the market value of equity. Actual results will differ from simulated results due to the timing, magnitude and frequency of interest rate changes and changes in market conditions and management strategies, among other factors.

With respect to the Bank's MBS and MPF portfolios, mortgage rates remain above long-term averages, continuing to compress prepayments in 2025 and, as a result, extended mortgage cash flows. If the debt funding the mortgage assets matures, it could be re-issued at a higher rate and decrease the Bank's net interest income. Decreases in interest rates may cause an increase in mortgage prepayments and may result in increased premium amortization expense and substandard performance in the Bank's mortgage portfolio as the Bank experiences a return of principal that it must re-invest in a lower rate environment, adversely affecting net interest income over time, if associated debt remains outstanding (i.e., debt overhang). For more information, see the discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

***The Bank may be limited in its ability to access the capital markets, which could adversely affect the Bank's liquidity. In addition, if the Bank's ability to access the long-term debt markets would be limited, this may have a material adverse effect on its results of operations and financial condition, as well as its ability to fund operations, including advances.***

The Bank's ability to operate its business, meet its obligations and generate net interest income depends primarily on the ability to issue large amounts of debt frequently, with a variety of maturities and call features and at attractive rates. The Bank actively manages its liquidity position to maintain stable, reliable and cost-effective sources of funds, while considering market conditions, member credit demand for short-and long-term advances, investment opportunities and the maturity profile of the Bank's assets and liabilities. The Bank recognizes that managing liquidity is critical to achieving its statutory mission of providing low-cost funding to its members. In managing liquidity risk, the Bank is required to maintain a level of liquidity in accordance with policies established by management and the Board and Finance Agency guidance.

The ability to obtain funds through the sale of consolidated obligations depends in part on conditions in the capital markets, particularly the short-term capital markets. Accordingly, the Bank may be unable to obtain funding rapidly and on acceptable terms (interest rate risk), if at all (refunding risk). In addition, broader adoption of stablecoins that rely on U.S. Treasuries could increase the Bank's cost of debt on a relative basis. If the Bank cannot access funding when needed, its ability to support and continue its operations, including providing term funding to members, would be adversely affected, which would negatively

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affect its financial condition and results of operations. Geopolitical instability or conflicts may result in trade disruptions, sanctions, or other market volatility which could adversely affect funding costs or market access. The Bank's exposure to interest rate risk and refunding risk may be impacted by the asset/liability maturity profile of the Bank. See the Liquidity and Funding discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for additional information.

The U.S. Treasury has the authority to prescribe the form, denomination, maturity, interest rate and conditions of consolidated obligations issued by the FHLBanks, which could impact the Bank's ability to issue or offer certain types of debt. In addition, the Finance Agency could require the Bank to hold additional liquidity, which could adversely impact the type, amount and profitability of various advance products.

***The Bank is jointly and severally liable for the consolidated obligations of other FHLBanks. Additionally, the Bank may receive from or provide financial assistance to the other FHLBanks. Changes in the Bank's, other FHLBanks' or other GSEs' credit ratings, as well as the rating of the U.S. Government, may adversely affect the Bank's ability to issue consolidated obligations and enter derivative transactions on acceptable terms.***

Each of the FHLBanks relies upon the issuance of consolidated obligations as a primary source of funds. Consolidated obligations are the joint and several obligations of all the FHLBanks, backed only by the financial resources of the FHLBanks. Accordingly, the Bank is jointly and severally liable with the other FHLBanks for all consolidated obligations issued, regardless of whether the Bank receives all or any portion of the proceeds from any particular issuance of consolidated obligations.

The Finance Agency at its discretion may also require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. For example, the Finance Agency could simply allocate the outstanding liability of an FHLBank among the other FHLBanks on a pro-rata or other basis. Accordingly, the Bank could incur significant liability beyond its primary obligation under consolidated obligations which could negatively affect the Bank's financial condition and results of operations.

FHLBank System consolidated obligation bonds have been assigned Aa1/stable outlook and AA+/stable outlook ratings by Moody's and S&P, respectively. Consolidated obligation discount notes have been assigned a P-1 and A-1+ rating by Moody's and S&P, respectively. These Nationally Recognized Statistical Rating Organizations (NRSROs) have indicated that the ratings they assign the FHLBank System consolidated obligations are generally influenced by the sovereign credit rating of the United States due to the FHLBanks' statuses as GSEs. Therefore, downgrades of the United States' credit rating by an NRSRO may result in similar downgrades of FHLBank System consolidated obligations. For example, in May 2025, Moody's downgraded the United States' sovereign credit rating and then promptly downgraded the FHLBanks' consolidated obligations to their current ratings.

It is possible that the credit rating of an FHLBank, another GSE or the U.S. government could be lowered by one or more NRSROs for any number of reasons including, for example, in connection with the uncertainties surrounding the raising of, or failure to timely raise, the U.S. federal debt limit. A change to the outlook on the ratings of the United States may also cause the respective NRSRO to take similar ratings actions with respect to the FHLBanks, to the extent they are rated by it. Such downgrades could negatively impact the Bank's reputation, cost of funds, ability to issue consolidated obligations and enter derivative transactions on acceptable terms, product demand, and ability to attract and retain members.

Further, in some states, acceptance of the Bank's letters of credit as collateral for public funds deposits may require the Bank to maintain the highest long-term senior unsecured debt rating from at least one NRSRO. As such, the Bank's letters of credit business in any such states may be curtailed, and the amount of the Bank's letters of credit may be reduced, both of which could negatively affect financial condition and results of operations.

***The Bank may fail to maintain a sufficient level of retained earnings, fail to meet its minimum regulatory capital requirements, or be otherwise designated by the Finance Agency as undercapitalized, which would impact the Bank's ability to conduct business "as usual," result in prohibitions on dividends, excess capital stock repurchases and capital stock redemptions and potentially impact the value of Bank membership. Such a designation may also negatively impact the Bank's credit rating provided by certain NRSROs and could hinder the achievement of the Bank's economic/community development goals.***

The Bank is required to maintain certain regulatory capital and leverage ratios. Any violation of these requirements will result in prohibitions on stock redemptions, repurchases and dividend payments. For example, the payment of dividends is subject to certain statutory and regulatory restrictions (including that the Bank complies with all minimum capital requirements and has not been designated undercapitalized by the Finance Agency). In addition, if the Bank becomes undercapitalized by

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failing to meet its regulatory capital requirements, by the Finance Agency exercising its discretion to categorize an FHLBank as undercapitalized or by the Bank failing to meet any additional Finance Agency-imposed minimum capital requirements, it will also be subject to asset growth limits and, if significantly undercapitalized, the Bank could be subject to additional actions. Violations of capital requirements could also result in changes in the Bank's member lending, investment or MPF Program purchase activities and changes in permissible business activities. Declines in market conditions could also result in a violation of regulatory or statutory capital requirements and may impact the Bank's ability to redeem capital stock at par value. Without advance demand and new borrowing activity to offset the run-off of existing borrowings, capital levels could eventually decline. An increase of the capital requirements on existing borrowings in an attempt to boost capital levels may deter new borrowings and reduce the value of membership as the return on that investment may not be as profitable to the member as other investment opportunities. The ability to conduct the Bank's business as expected, to meet its statutory AHP or other legal obligations as well as the Bank's ability to make contributions to other community and economic development programs is highly-dependent on the Bank's ability to continue to generate net income and maintain adequate retained earnings and capital levels.

<u>OPERATIONAL RISK</u>

***The Bank's business is dependent upon its computer information systems. An inability to process or physically secure information or implement technological changes, or an interruption in the Bank's systems, may result in lost business or increased operational or reputational risk. The Bank's dependence on computer systems and technologies to engage in business transactions and to communicate with its stakeholders has increased the Bank's exposure to cyber-security risks.***

The Bank's business is dependent upon its ability to effectively exchange and process information using its computer information systems. Continued regulatory focus on technology operations including cybersecurity, cloud computing and artificial intelligence (AI) have and could continue to influence the Bank's operations. The Bank's products and services require a complex and sophisticated computing environment, which includes software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) solutions and licensed, purchased, and custom-developed software. Maintaining the effectiveness and efficiency of the Bank's operations is dependent upon the continued timely implementation of technology solutions and systems, which may require ongoing expenditures, as well as the ability to sustain ongoing operations during technology solution implementations, upgrades and larger strategic initiatives and/or modernization efforts. If the Bank is unable to sustain its technological capabilities or implement new or emerging technologies, such as AI, it may not be able to remain competitive, and its business, financial condition and profitability may be significantly compromised. The Bank cannot guarantee the effectiveness of its business continuity plan or other related policies, procedures and systems to protect the Bank in any particular situation.

Cyber threats include computer viruses, malicious or destructive code, phishing attacks, brute force attacks, ransomware attacks, polymorphic malware attacks, denial of service attacks, or information or other security breaches. They could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information of the Bank, its employees, its members or other third parties, or otherwise materially disrupt the Bank's or its members' or other third parties' network access, business operations or ability to provide services. The Bank, like many financial institutions and businesses, faces cyber-attack attempts routinely, for example, from phishing campaigns and denial of service attempts, and the risk of cyber-attacks may be heightened as a result of geopolitical conflicts. Although the Bank has both information and physical security measures in place and devotes significant resources to secure the Bank's computer systems and networks, it might not be able to anticipate or implement effective preventive measures against all security breaches, particularly given that such attacks continue to evolve in scale and maliciousness. Additionally, cyber vulnerabilities and/or attacks could go undetected for a period of time. During such time, the Bank may not necessarily know the extent of the harm, and certain actions could be compounded before they are discovered and remediated, any or all of which could further increase the consequences of a cyberattack. See additional discussion in Item 1.C Cybersecurity within this Form 10-K.

As cyber threats evolve, including as a result of the increased capabilities of AI and other emerging technologies that may be used maliciously, the Bank may be required to expend significant additional resources to continue to modify or enhance its layers of defense or to investigate and remediate any information security vulnerabilities. A successful penetration may result in unauthorized access to digital systems for purposes of misappropriating assets (including loss of funds) or sensitive information (including confidential information of the Bank, members, counterparties or mortgage loan borrowers) or may corrupt data or cause operational disruption. This may cause financial loss or a violation of privacy or other laws. The Bank could incur substantial costs and suffer other negative consequences, including but not limited to remediation costs, increased security costs, litigation, penalties and reputational damage.

***The lack of a skilled workforce or Board may have an adverse effect on the Bank's business and operations.***

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Turnover, particularly among key employees, or unsuccessful succession planning, may increase operational risks as responsibilities are transitioned between employees and new employees are on-boarded and trained. Failure to attract or retain a skilled Board, particularly with respect to certain required expertise, may adversely affect the Bank's governance or business operations. The loss of one or more key employees or not having a skilled Board may also result in incremental regulatory scrutiny.

***Failures of critical vendors and other third parties, including the Federal Reserve Banks, could disrupt the Bank's ability to conduct business.***

The Bank relies on third-party vendors and service providers for many of its core business processes and information systems. Any failure or interruption of these systems, or any disruption of service, including as a result of a security breach, cyber-attack, natural disaster, geopolitical instability, terrorist attack, widespread emergency or pandemic, could result in failures or interruptions in the Bank's ability to conduct and manage its business effectively. Any disruption, delay, failure of a critical third-party vendor's services or the Bank's inability to adequately address such event could impact the Bank's operating results and the Bank's ability to provide services to the membership and could harm the Bank's reputation, customer relations and business operations, which could negatively affect its financial condition, profitability and cash flows.

Any breach of sensitive Bank data stored at a third party could result in financial loss, damage to the Bank's reputation, litigation, potential legal or regulatory actions and penalties, increased regulatory scrutiny and increased expense in terms of incident response costs and damages. Additionally, the use of vendors, including increased use of cloud service providers (e.g., SaaS, IaaS) and other third parties, could expose the Bank to the risk of a financial loss, loss of intellectual property or confidential information, fraud or other harm.

***The Bank relies on both internally and externally developed models and end user computing tools to manage market and other risks, to make business decisions and for financial accounting and reporting purposes. The Bank's business could be adversely affected if these models fail to produce reliable results or if the results are not used appropriately.***

The Bank makes significant use of business and financial models and end user computing tools for making business decisions, managing risk and financial reporting. For example, the Bank uses models to measure and monitor exposures to market risks and credit and collateral risks. The Bank uses models for making credit decisions, determining the fair value of certain financial instruments, and estimating credit losses.

Models are inherently imperfect predictors of actual results because they are based on assumptions about future performance. Estimations produced by the Bank's models may be different from actual results, which could adversely affect the Bank's business results. If the models or end user computing tools are not reliable or the Bank does not use them appropriately, the Bank could make poor business decisions, including risk management decisions, or other decisions, which could result in an adverse financial impact. Further, any controls, such as a model risk management function, that the Bank employs to attempt to manage the risks associated with the use of models may not be effective.

Changes in any models or in any of the inputs, assumptions, judgments or estimates used in the models may cause the results generated by the model to be materially different. Changes to the Bank's models could occur due to changes in market participants' practices.

**Item 1B: Unresolved Staff Comments**

None

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**Item 1C: Cybersecurity** 

**Cybersecurity Risk Management and Strategy**

The Bank is subject to cybersecurity incident and threat risk. A cybersecurity incident is an unauthorized occurrence, or a series of related unauthorized occurrences, through information systems that jeopardizes the confidentiality, integrity, or availability of the Bank's information systems or any information residing therein. Cybersecurity threats are potential unauthorized occurrences on or conducted through information systems that may result in adverse effects on the confidentiality, integrity, or availability of information systems or any information residing therein. Information systems are any electronic information resources, owned or used by the Bank, including physical or virtual infrastructure controlled by such information resources, or their components, organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of the Bank's information to maintain or support the Bank's operations. Refer to Item 1A. Risk Factors – Operational Risk for a description of the cybersecurity risk. The Bank has implemented processes for assessing, identifying, and managing material risks from cybersecurity threats or incidents that may directly or indirectly impact the Bank's business strategy, results of operations, or financial condition.

The Bank's cybersecurity risk management framework for assessing, identifying, and managing material risks from cybersecurity threats is intended to protect the confidentiality, integrity, and availability of the Bank's information technology assets and data.

Broadly, the Bank manages its risks from cybersecurity threats by its policies, standards and procedures, layers of preventative and detective controls, skilled resources, employee training and oversight of third-party vendors that may increase the Bank's cybersecurity risk. The Bank's cybersecurity risk management framework is part of the Bank's risk governance framework. Refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management for more detail on that risk governance framework.

The Bank's Security Management Policy and the Bank's Information Technology Management Policy are the management policies that address the risks of cybersecurity threats and incidents. The Security Management Policy defines the principal elements of the Bank's security management program and compliance requirements. It applies to all Bank employees, contractors and consultants that have access to Bank systems. Among other things, it contains rules and procedures regarding the access, classification, use and protection of the Bank's information assets; detection of cybersecurity threats and incidents; and escalation requirements in the event of a cybersecurity threat or incident. The Information Technology Management Policy contains rules and procedures for the maintenance (e.g., patching, updating, upgrading, etc.) of the Bank's information technology systems and the management of vulnerabilities in the Bank's network, systems and software.

The Bank recognizes the important role that AI, including generative AI, can play in conducting Bank business and seeks to use AI to enhance responsible innovation and improve collaboration. However, the Bank also recognizes the risks that AI presents, including but not limited to data privacy and security risks. Accordingly, the Bank has adopted an Artificial Intelligence Policy which sets forth rules that are intended to mitigate such risks. The policy applies to all Bank employees, contractors and consultants. It provides rules for the use of AI based on software and use cases and prohibits its use where it has not been specifically approved either under the policy or pursuant to an approval process specified in the policy. Further, the policy includes additional prohibitions that are intended to further mitigate the risks that AI presents. For example, the policy prohibits the use of AI for automated decision-making in certain high-risk domains (e.g., regulatory reporting and fraud detection) without human oversight and audit measures.

The Bank has a security incident response plan, which determines how cybersecurity threats and incidents are identified, classified, and escalated including, as appropriate, to the Board's Operational Risk Committee. The security incident response plan also provides guidance on management's assessment of significance of the threat or incident.

The Bank leverages audits and assessments to assist in the development and monitoring of those processes for assessing, identifying and managing cybersecurity incident and threat risk. These reviews consist of internal and external penetration assessments as well as assessments of the maturity of the Bank's information security program in accordance with the National Institute of Standards and Technology Cybersecurity Framework. These assessments serve to benchmark the Bank's cybersecurity risk management program with the aim of continuously improving the Bank's cybersecurity control environment.

The Bank's security incident response plan also addresses third-party cybersecurity incidents and threats. As part of the Bank's vendor management process, the Bank undertakes due diligence of third-party systems with which the Bank will interact, including review of System and Organization Controls reports, as available, and responses to cybersecurity

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questionnaires, determination of risk classification, in addition to requiring vendors to agree to contractual obligations related to data protection and information security in the Bank's vendor agreements. The Bank's vendor risk management program includes regular reviews and oversight of these third-party service providers, including performance and technological reviews and escalation to Bank management of any unsatisfactory reviews.

During the period covered by this report, risks from cybersecurity threats did not have a material impact on the Bank's strategy, results of operations, or financial condition. The Bank has experienced low impact cybersecurity incidents, though none that have had a material effect on the Bank's financial condition or results of operations.

Cybersecurity incidents may occur in the future, and any such cybersecurity incident could result in significantly harmful consequences to the Bank, the Bank's members, and their customers. The Bank is prepared to assess the materiality of any such cybersecurity incident from several perspectives, including, but not limited to, the Bank's ability to continue to service the Bank's members and protect the privacy of the data their customers have entrusted to the Bank through its members, lost revenue, disruption of business operation, increased operating costs, litigation, and reputational harm.

**Cybersecurity Governance**

The Bank's Board provides oversight of risks from cybersecurity threats principally via its Operational Risk Committee. This committee reviews and makes recommendations to the Board regarding the Bank's Security Policy, which policy is contained within the Bank's Risk Governance Policy. The Risk Governance Policy is described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Risk Management. The Security Policy, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• defines the Bank's commitment to and management of security practices and controls to protect physical and information assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishes accountability, including via its application to anyone with authorization to access or use Bank information systems or services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishes administrative, technical, and physical safeguards which are intended to protect the security, confidentiality, and integrity of Bank information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mandates the implementation of security practices including advancing security program maturity, vendor security assessments, vulnerability and penetration testing, security awareness training, independent assessment of security requirements and implementation planning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accents the active identification, management and mitigation of relevant risks, including via the maintenance of a security incident response plan and the mandatory escalation of cybersecurity threats and incidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides that the Bank must provide adequate resources in attending to cybersecurity threats proportionate to the Bank's overall risk tolerance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishes that the Bank's Chief Information Security Officer (CISO) is responsible for the information security program and that the CISO reports directly to the Bank's Chief Information Officer (CIO) with a dotted line reporting relationship to the Bank's Chief Risk Officer (CRO) so that information technology risk, including cybersecurity threat risk, is given appropriate priority.

Management has implemented policies and procedures to implement the Security Policy which include, among others, the Security Management Policy, the Information Technology Management Policy, the Artificial Intelligence Policy, and the security incident response plan, each of which is discussed above under – Cybersecurity Risk Management and Strategy.

In addition to its oversight of the risks of cybersecurity threats, the Operational Risk Committee provides oversight of the Bank's information technology planning, business continuity, vendor risk and modeling risk. The breadth of this oversight supplements the Operational Risk Committee's oversight of cybersecurity threat risk due to these functions' nexuses with such risk and its mitigation. The Operational Risk Committee provides relevant reports to the Bank's Board, which reports may include, as potential examples, information regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management's implementation of the Security Policy and related directives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material emerging cybersecurity threats; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material cybersecurity incidents and their remediation.

The CISO and the CIO are responsible for reporting sufficient and timely information on any cybersecurity threat or incident that may pose a significant risk to the Bank to the Operational Risk Committee. The CISO and the CIO are also responsible for providing regular reports to the Operational Risk Committee until any cybersecurity incident's conclusion. They

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also arrange for the Board and the Operational Risk Committee to receive regular presentations and reports throughout the year on cybersecurity and information security addressing a broad range of topics, including updates on technology trends, regulatory developments, legal issues, policies and practices, information security resources and organization, the threat environment and vulnerability assessments, and specific and ongoing efforts to prevent, detect, and respond to potential gaps, internal and external incidents and critical threats. Further, on no less than a quarterly basis, or more often as deemed necessary, the Operational Risk Committee discusses cybersecurity and information security risks with the CISO and the CIO.

The CISO and the CIO are responsible for assessing and managing the Bank's material risks from cybersecurity threats. The CISO leads the Bank's Information Security Department and, consistent with the Security Policy, reports directly to the CIO and has a dotted line reporting relationship to the CRO. The CISO is the policy owner of the Security Management Policy and the Artificial Intelligence Policy, and the CIO is the policy owner of the Information Technology Management Policy. As policy owners, each is responsible for implementing and administering their relevant policy. In addition, each is responsible for reviewing, updating and presenting the policies for approval on no less than an annual basis. In addition to their reporting responsibilities to the Operational Risk Committee, the CISO and the CIO also report to the Bank's Risk Management Committee, which is a management committee that reports separately to the Bank's President and Chief Executive Officer. The Risk Management Committee is discussed in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management - Risk Governance.

The CISO has more than 21 years of experience in cybersecurity matters, including over 14 years within the Bank's information technology department, in successively more responsible roles, and has led teams to design, secure, and implement numerous cybersecurity and technology solutions. The CISO holds a Bachelor of Science (BS) degree in Computer Science and several technology certifications, including Certified Information Security Manager (CISM) and Certified Information Systems Auditor (CISA). The CIO was promoted to the role of the Bank's Deputy Chief Information Officer in 2023 and became the Bank's CIO in 2026. The CIO has more than 25 years of experience in financial services information technology leadership, including over 11 years at the Bank. In addition to a Bachelor of Arts (BA) degree from Carleton University, the CIO holds multiple technology-focused certifications and a Lean Six Sigma Green Belt.

The CISO and the CIO are informed about and monitor the prevention, detection, mitigation and remediation of cybersecurity incidents with the support of the Bank's Information Security Department using the processes described above under - Cybersecurity Risk Management and Strategy.

The Bank's Information Security Department is comprised of specialized professionals responsible for the day-to-day, hands-on management of the cybersecurity risk and that handle the processes and procedures to mitigate and implement protective, proactive and reactive measures to protect the Bank against those risks. The Bank's Information Security Department is responsible for developing, documenting, and approving the Bank's technical information security control standards, guidelines, and procedures intended to preserve the confidentiality, integrity, and availability of the Bank's information technology assets and data under the Bank's control.

**Item 2: Properties**

The Bank leases 57,047 square feet of office space at 301 Grant Street, Pittsburgh, Pennsylvania, 15219 that serves as the Bank's headquarters. The Bank leases two offsite data centers in Pennsylvania and Virginia. The Bank also leases office space in Allentown, Pennsylvania for community and member engagement. In addition, the Bank leases approximately 3,000 square feet of office space in Washington, D.C. to support government relations, which is shared with the FHLBanks of Atlanta and Des Moines. Essentially all of the Bank's operations are housed at the Bank's headquarters at the 301 Grant Street location. The Bank's management believes these facilities are well maintained and adequate for the Bank's operations.

**Item 3: Legal Proceedings**

&nbsp;&nbsp;&nbsp;&nbsp;The Bank may be subject to various legal proceedings arising in the normal course of business. After consultation with legal counsel, management is not aware of any such proceedings that might result in the Bank's ultimate liability in an amount that will have a material effect on the Bank's financial condition or results of operations.

**Item 4: Mine Safety Disclosures**

&nbsp;&nbsp;&nbsp;&nbsp;Not applicable

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**PART II**

**Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

The Bank is a cooperative and the capital stock of the Bank can only be purchased by members although it may be held by nonmembers due to out of district mergers. There is no established marketplace for the Bank's stock; the Bank's stock is not publicly traded and may be repurchased or redeemed by the Bank at par value, which is $100 per share. The Bank has two subclasses of capital stock: B1 membership and B2 activity.

The total number of shares of capital stock outstanding as of December 31, 2025 was 23,045,618, of which members held 22,926,054 shares and nonmembers held 119,564 shares. As of February 28, 2026, a total of 286 institutions (which includes members and nonmembers) held shares of the Bank's stock.

Members must maintain a minimum amount of stock based on membership and activity requirements as established in the Bank's Capital Plan. The members' minimum stock purchase requirement is subject to change from time to time at the discretion of the Board of the Bank in accordance with the Capital Plan. Excess stock is capital stock not required to be held by the member to meet its minimum stock purchase requirement under the Bank's Capital Plan. The Bank, at its discretion, may repurchase shares held by members in excess of their required stock holdings upon one business day's notice. The Bank's current practice is to repurchase excess capital stock, including excess capital stock that is classified as mandatorily redeemable, on a weekly basis. At December 31, 2025, the Bank has excess stock totaling $83.3 million, less than 1% of total assets.

The Bank may redeem all or part of the common stock five years after the Bank receives a written notice from a member of redemption, gives notice of intention to withdraw from membership, or attains nonmember status by merger or acquisition, charter termination or other involuntary termination from membership. This is referred to as mandatorily redeemable capital stock. The Bank reclassifies stock subject to redemption from capital stock to a liability. As of December 31, 2025, the total mandatorily redeemable capital stock reflected the balance for seven institutions. These institutions will continue to be members of the Bank until the withdrawal period is completed.

Generally, the Board has discretion to declare or not declare dividends and to determine the rate of any dividend declared. Dividends may be paid only from current net earnings or previously retained earnings. In accordance with the FHLBank Act and Finance Agency regulations, the Bank may not declare a dividend if the Bank is not in compliance with its minimum capital requirements or if the Bank would fall below its minimum capital requirements or not be adequately capitalized as a result of a dividend except, in this latter case, with the Director of the Finance Agency's permission.

In February 2026, the Bank declared quarterly dividends of 9.50% annualized on activity stock and 4.85% annualized on membership stock. The dividends were based on average capital stock held for the fourth quarter of 2025. Looking forward, market and business conditions can impact the Bank's overall performance, as well as the levels of future dividends. The Bank's intent is to continue to provide meaningful shareholder return; future dividend rates may not correspond directly with the pace or direction of interest rate changes.

The Bank has a retained earnings policy that calls for the Bank to maintain retained earnings in an amount at least sufficient to protect the par value of the Bank's capital stock against potential economic losses that could arise from a variety of designated risk factors, including those related to potential permanent losses, potential earnings shortfalls or losses in periodic earnings, and potential reductions in the Bank's estimated market value of equity. With certain exceptions, the Bank's policy calls for the Bank to maintain its total retained earnings balance at or above its policy target when determining the amount of funds available to pay dividends. The Bank's current retained earnings policy target, which was last updated as of December 31, 2025, calls for the Bank to maintain a total retained earnings balance of at least $780 million to protect against the risks identified in the policy. The Bank's retained earnings balance of $2,245.7 million at December 31, 2025 exceeds the policy target balance.

The Bank's Capital Plan and the Joint Capital Enhancement Agreement require the Bank to allocate 20 percent of net income to a separate restricted retained earnings account until the balance in that account reaches 1% of the daily average carrying value of the Bank's outstanding total consolidated obligations (excluding fair-value adjustments) for the calendar quarter. As of December 31, 2025, the Bank had $783.4 million in restricted retained earnings, exceeding the total requirement of $691.5 million. Amounts in the restricted retained earnings account cannot be used to pay dividends. The Bank can release

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restricted retained earnings to unrestricted retained earnings if it exceeds 150% of the requirement, which was $1,037 million as of December 31, 2025. The Bank did not meet threshold to release restricted retained earnings at December 31, 2025.

See Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K for further information regarding statutory and regulatory restrictions on capital stock redemption.

**Item 6: [Reserved]**

**Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Forward-Looking Information**

*This Form 10-K includes "forward-looking statements". Such statements may include descriptions of the objectives, projections, estimates, or predictions of the future of the Bank . Such statements do not relate strictly to historical or current facts. They often use words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "likely," and similar expressions.*

*Forward-looking statements involve risks and uncertainties, and as such, actual results could differ materially from those that the statements express or imply due to factors such as:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• economic and market conditions, including, but not limited to, conditions in real estate, credit and mortgage markets;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• volatility of market prices, rates, and indices related to financial instruments;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• natural or man-made disasters, pandemics, climate change, conflicts or terrorist attacks or other geopolitical events, such as ongoing hostilities between Russia and Ukraine and in the Middle East;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• political uncertainties related to global trade policies, supply chain disruptions and tariff tensions;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• executive, legislative, regulatory, and judicial events and actions that affect the Bank, its members, counterparties, other Federal Home Loan Banks (FHLBanks) or investors in FHLBank debt;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• risks related to the Bank's investments, including investments in mortgage-backed securities (MBS);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the assumptions used to estimate credit losses;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the Bank's ability to introduce new products and services to meet market demand;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in the Bank's: credit rating, capital structure, capital requirements, membership composition, membership's demand for advances and other products, and competitive environment;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in expectations regarding the Bank's payment of dividends;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• increases or decreases in advances prepayments;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• changes in investor demand for FHLBank debt or in the ratings of FHLBank System debt;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the Bank's ability to enter financial instruments to meet its investment, balance sheet and risk management goals;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• disruptions in the capital markets;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• the ability of each of the other FHLBanks to repay the principal and interest on consolidated obligations for which it is the primary obligor and with respect to which the Bank has joint and several liability; and*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• technology and cybersecurity risks (including cybersecurity risk driven by artificial intelligence).*

*Readers of this report should not rely solely on the forward-looking statements and should consider all risks and uncertainties addressed throughout this report, as well as those discussed under Item 1A. Risk Factors. Information on the Bank's website referred to in this Form 10-K is not incorporated in, or a part of, this Form 10-K. Forward-looking statements in this Form 10-K should not be relied on as representing the Bank's expectations or assumptions as of any time subsequent to the time this Form 10-K is filed with the SEC. Forward-looking statements speak only as of the date made, and the Bank has no obligation, and does not undertake publicly, to update or revise any forward-looking statement for any reason.*

*This Management's Discussion and Analysis (MD&A) should be read in conjunction with the Bank's audited financial statements in Item 8. Financial Statements and Supplementary Data and all risks and uncertainties addressed throughout this report, as well as those discussed under Item 1A. Risk Factors included herein.*

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**Executive Summary**

***Overview.*** The Bank's financial condition and results of operations are influenced by global and national economies, local economies within its three-state district, and the conditions in the financial, housing and credit markets, which impact the interest rate environment.

The interest rate environment significantly impacts the Bank's profitability. Net interest income is affected by several external factors, including market interest rate levels and volatility, credit spreads and the general state of the economy. To manage interest rate risk in connection with advances and debt, the Bank executes interest rate derivatives. Short-term interest rates also directly affect the Bank's earnings on invested capital. Finally, the Bank's mortgage-related assets make it sensitive to changes in mortgage rates. The Bank earns relatively narrow spreads between yields on assets (particularly advances, its largest asset) and the rates paid on corresponding liabilities.

The U.S. economy remained resilient in 2025 despite global trade and immigration policy uncertainty, allowing for the Federal Reserve to hold rates constant for the first half of the year. The labor market, however, started to show signs of weakness in the second half of 2025. The Federal Reserve responded with three consecutive 25 basis point rate cuts at the September, October and December meetings, bringing the federal funds target range from 4.25%-4.50% to 3.50%-3.75%. These actions resulted in the steepening of the Treasury curve with yields declining except for the 30-year bond, which remained elevated due to fiscal concerns. Long-term FHLBank debt spreads relative to U.S. Treasuries narrowed during 2025, driven by lower FHLBank debt issuance and declining market volatility in the second half of the year.

***Results of Operations.*** The Bank's net income for 2025 totaled $418.3 million, compared to $587.5 million for 2024. The $169.2 million decrease was driven primarily by lower net interest income and lower non interest income. The decrease in net interest income was the result of lower average advances and lower short-term interest rates. The decrease in noninterest income was due to primarily to valuation changes in the Bank's derivative portfolio resulting from interest rate volatility. The net interest margin was 70 basis points and 71 basis points for 2025 and 2024, respectively.

Statutory AHP assessments were $46.6 million as a result of the Bank's earnings in 2025, compared to $65.5 million as a result of earnings in 2024.

In addition to statutory AHP assessments under the FHLBank Act, in 2025 and 2024, the Bank committed to make voluntary contributions of 5% of prior year's earnings to its suite of voluntary community products. The Bank intends to continue to make a supplemental voluntary contribution to AHP to increase the pool of available AHP funds to the amount that would have been statutorily required, absent the Bank's voluntary contributions. The Bank exceeded its commitment in 2025 and in 2024. The Bank's voluntary contributions were 6.3% and 6.9% of its prior year's earnings during 2025 and 2024 respectively. For additional information on the Bank's Community Products, see the Community Products discussion in Earnings Performance in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 10 - Affordable Housing Program (AHP) and Voluntary Contributions in this Form 10-K.

***Financial Condition.*** *Advances.* Advances totaled $36.8 billion at December 31, 2025, a decrease of $33.1 billion compared to $69.9 billion at December 31, 2024. In addition, the par value of advances that had a remaining maturity of more than one year increased to 37% at December 31, 2025 compared to 27% at December 31, 2024. Member demand for advances continues to be primarily driven by members' liquidity management practices, which are influenced by their loan demand, deposit balances and investment activities. Although advance levels decreased, it is not uncommon for the Bank to experience fluctuations in the overall advance portfolio driven primarily by changes in member needs.

The ability to grow and/or maintain the advance portfolio is affected by, among other things, the following: (1) the liquidity demands of the Bank's borrowers; (2) the composition of the Bank's membership; (3) members' regulatory requirements; (4) current and future credit market conditions; (5) housing market trends; (6) the shape of the yield curve; and (7) advance pricing.

*&nbsp;&nbsp;&nbsp;&nbsp;Liquidity Investments.* The Bank maintains liquidity to meet member borrowing needs and regulatory standards. The liquidity investment portfolio is comprised of cash, interest-bearing deposits, Federal funds sold, securities purchased under agreements to resell, and U.S. Treasury obligations classified as trading or AFS. At December 31, 2025, the Bank held $16.0 billion of liquid assets, relatively flat compared to $15.8 billion at December 31, 2024. Liquid assets can fluctuate due to routine portfolio management practices.

&nbsp;&nbsp;&nbsp;&nbsp;*Investments.* The Bank's investment portfolio, excluding those investments included in the liquidity portfolio, is comprised of trading, AFS and HTM investments. The investments are subject to the Bank's risk guidelines and certain other requirements, such as yield. The Bank held $14.5 billion in its investment portfolio at December 31, 2025, compared to $15.5

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billion at December 31, 2024, a decrease of $1.0 billion. During 2025, the MBS portfolio declined as the Bank curtailed MBS purchases because the portfolio reached the regulatory limit relative to equity.

*Consolidated Obligations.* The Bank's consolidated obligations totaled $67.5 billion at December 31, 2025, a decrease of $32.2 billion from December 31, 2024. At December 31, 2025, bonds represented 75% of the Bank's consolidated obligations, compared with 88% at December 31, 2024. Discount notes represented 25% of the Bank's consolidated obligations at December 31, 2025 compared with 12% at year-end 2024. The overall decrease in consolidated obligations outstanding is consistent with the decrease in advance balances. The funding mix shifted towards fixed-rate callable bonds and discount notes that replaced maturing floating-rate bonds as the Bank took advantage of favorable funding spreads.

*Capital Position and Regulatory Requirements.* Total capital at December 31, 2025 was $4.6 billion, compared to $5.6 billion at December 31, 2024. Total capital decreased due to decreased capital stock as a result of lower advances. Total retained earnings at December 31, 2025 were $2.2 billion, compared with $2.1 billion at December 31, 2024.

In February 2026, the Bank declared quarterly dividends of 9.50% annualized on activity stock and 4.85% annualized on membership stock. The dividends were based on average member capital stock held for the fourth quarter of 2025.

Dividends paid by the Bank are subject to Board approval and may be paid in either capital stock or cash; historically, the Bank has paid cash dividends. These dividends are based on stockholders' average balances for the previous quarter.

Dividends paid in 2025, 2024 and 2023 are presented in the table below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield |
| | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| | Membership | Activity | Membership | Activity | Membership | Activity |
| February | **5.10%** | **9.00%** | 5.35% | 8.50% | 4.00% | 7.95% |
| April | **4.60%** | **9.00%** | 5.60% | 8.75% | 5.00% | 7.95% |
| July | **4.85%** | **9.50%** | 5.60% | 9.00% | 5.25% | 7.95% |
| October | **4.85%** | **9.50%** | 5.60% | 9.00% | 5.35% | 8.25% |

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The dividend rates demonstrate that the Bank continues to return value to its member shareholders. Looking forward, market and business conditions can impact the Bank's overall performance, as well as the levels of future dividends. The Bank's intent is to continue to provide meaningful shareholder return; future dividend rates may not correspond directly with the pace or direction of interest rate changes.

Based on the financial information as of December 31, 2025, the Finance Agency determined the Bank was adequately capitalized under the capital rule.

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**2026 Outlook** 

&nbsp;&nbsp;&nbsp;&nbsp;The Bank is a cooperative designed to meet the liquidity and other needs of its members. The Bank expects advance levels to remain relatively consistent with year-end 2025 as members are expected to continue to use advances to meet liquidity needs. Member demand will continue to be impacted by member loan demand, deposit levels, market liquidity, Federal Reserve actions to adjust short-term interest rates, and regulatory requirements for members. The borrowing activities of larger members will continue to be the predominant driver of change in the Bank's advances. In addition, the Bank expects members usage of letters of credit to be consistent with 2025.

The Bank expects mortgage loans held for portfolio purchased through the MPF Program to increase slightly during 2026. Elevated mortgage rates have slowed purchase and paydown activity relative to years with lower rates or decreasing rate environments.

The Bank expects MBS investment securities to remain consistent throughout 2026 as the Bank has limited capacity to increase the size of the MBS investment portfolio under its regulatory purchasing authority. Purchasing MBS investment securities is expected to occur as long as spreads remain attractive and there is regulatory capacity. Spread levels may be impacted by the Federal Reserve's balance sheet management decisions and level of investor demand.

Access to debt markets has been reliable, and the Bank expects this access to remain reliable.

Current forward interest rate curves reflect market projections for short-term interest rates to decline in 2026 assuming Federal Reserve inflation targets are achieved, and long-term rates to increase slightly during 2026. The Bank expects lower net interest income compared with 2025 due to lower average advance balances, reduced earnings on the re-investment of capital in short-term investments due to the expectation of lower short-term interest rates, and favorable funding expiring which will result in a normalization of net interest spread. In addition, the Bank expects operating expenses, exclusive of voluntary contributions, to be relatively flat compared to the prior year. The Bank expects to continue to contribute at least 5% of prior year's pre-assessment net income to its suite of voluntary community products during 2026. The Bank's intent is to continue to provide meaningful shareholder return; future dividend rates may not correspond directly with the pace or direction of interest rate changes.

Future opportunities and challenges may arise with potential changes in the Bank's operating landscape including various legislative actions and changes in the Bank's regulatory compliance requirements. For more details, refer to Item 1A. Risk Factors and the Legislative and Regulatory Developments section in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K. However, the Bank has been, and will continue to be, mission driven to meet the needs of its membership and communities.

**Earnings Performance**

&nbsp;&nbsp;&nbsp;&nbsp;The following is the Bank's earnings performance for the years ended December 31, 2025 and 2024, which should be read in conjunction with the Bank's audited financial statements included in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

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**Net Interest Income**

***Average Balances and Interest Yields/Rates Paid.*** The following table summarizes the average balances, yields or rates paid, and net interest margin on interest-earning assets and interest-bearing liabilities for 2025 , 2024, and 2023.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 |
| <br>(dollars in millions) | <br>Average<br>Balance | Interest<br>Income/<br>Expense | Avg.<br>Yield/<br>Rate<br>(%) | <br>Average<br>Balance | Interest<br>Income/<br>Expense | Avg.<br>Yield/<br>Rate<br>(%) | Average<br>Balance | Interest<br>Income/<br>Expense | Avg.<br>Yield/<br>Rate<br>(%) |
| Assets: |  |  |  |  |  |  |  |  |  |
| Securities purchased under agreements to resell | $**3623.3** | $**155.2** | **4.28** | $7981.5 | $413.5 | 5.18 | $6085.2 | $310.9 | 5.11 |
| Federal funds sold | **8303.2** | **352** | **4.24** | 3155.0 | 164.3 | 5.21 | 3842.1 | 192.9 | 5.02 |
| Interest-bearing deposits <sup>(1)</sup> | **3194.5** | **137.9** | **4.32** | 3789.2 | 200.7 | 5.30 | 4024.9 | 205.8 | 5.11 |
| Investment securities <sup>(2)</sup> | **19479.1** | **964.4** | **4.95** | 18276.6 | 1044.6 | 5.72 | 14460.5 | 769.2 | 5.32 |
| Advances <sup>(3)</sup>  | **49433.5** | **2349.0** | **4.75** | 73005.1 | 4096.0 | 5.61 | 78097.3 | 4219.0 | 5.40 |
| Mortgage loans held for portfolio <sup>(4)</sup> | **5056.8** | **197.3** | **3.90** | 4748.7 | 168.6 | 3.55 | 4616.3 | 148.4 | 3.22 |
| Total interest-earning assets | **89090.4** | **4155.8** | **4.66** | 110956.1 | 6087.7 | 5.49 | 111126.3 | 5846.2 | 5.26 |
| Other assets | **1009.3** |  |  | 1415.2 |  |  | 1443.5 |  |  |
| Total assets | $**90099.7** |  |  | $112371.3 |  |  | $112569.8 |  |  |
| Liabilities and capital: |  |  |  |  |  |  |  |  |  |
| Deposits <sup>(1)</sup> | $**663.7** | $**27.7** | **4.18** | $678.7 | $35.0 | 5.15 | $658.4 | $33.1 | 5.03 |
| Consolidated obligation discount notes | **10205.4** | **423.9** | **4.15** | 11569.6 | 601.4 | 5.20 | 22897.7 | 1118.9 | 4.89 |
| Consolidated obligation bonds | **72830.4** | **3078.3** | **4.23** | 92285.4 | 4664.9 | 5.05 | 81052.3 | 3953.4 | 4.88 |
| Other borrowings | **8.3** | **0.8** | **8.96** | 27.6 | 2.4 | 8.76 | 31.4 | 2.5 | 7.84 |
| Total interest-bearing liabilities | **83707.8** | **3530.7** | **4.22** | 104561.3 | 5303.7 | 5.07 | 104639.8 | 5107.9 | 4.88 |
| Other liabilities | **1453.1** |  |  | 2188.3 |  |  | 2468.1 |  |  |
| Total capital | **4938.8** |  |  | 5621.7 |  |  | 5461.9 |  |  |
| Total liabilities and capital | $**90099.7** |  |  | $112371.3 |  |  | $112569.8 |  |  |
| Net interest spread |  |  | **0.44** |  |  | 0.42 |  |  | 0.38 |
| Impact of noninterest-bearing funds |  |  | **0.26** |  |  | 0.29 |  |  | 0.28 |
| Net interest income/net interest margin<sup>(5)</sup> |  | $**625.1** | **0.70** |  | $784.0 | 0.71 |  | $738.3 | 0.66 |

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*<u>Notes:</u>*

<sup>(1)</sup> Average balances of deposits (assets and liabilities) include cash collateral received from/paid to counterparties which is reflected in the Statements of Condition as derivative assets/liabilities.

<sup>(2)</sup> Investment securities include trading, AFS and HTM securities. The average balances of AFS and HTM are reflected at amortized cost.

<sup>(3)</sup> Interest on advances includes prepayment fees, net of $1.8 million, $8.5 million and $0.1 million in 2025, 2024 and 2023, respectively.

<sup>(4)</sup> Nonaccrual mortgage loans are included in average balances in determining the average rate.

<sup>(5)</sup> Net interest margin is net interest income before provision (reversal) for credit losses as a percentage of average interest-earning assets.

The Bank's business model is intended to protect the net interest spread earned by the Bank and withstand fluctuations in both the level of interest rates and volume of business. Net interest spread increased to 44 basis points in 2025, compared to 42 basis points in the same prior year period. This was primarily due to changes in the Bank's balance sheet composition with relatively lower net spread advances now making up a smaller portion of total assets.

Overall, net interest margin decreased 1 basis point to 70 basis points in 2025 compared to 71 basis points in 2024 due to a reduction in earnings on capital from lower capital levels and lower short-term interest rates.

For discussion related to 2024 compared to 2023, refer to the Net Interest Income disclosure included in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Bank's 2024 Form 10-K.

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***Rate/Volume Analysis.*** Changes in both volume and interest rates influence changes in net interest income and net interest margin. The following table summarizes changes in interest income and interest expense between 2025, 2024, and 2023.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume | Increase (Decrease) in Interest Income/Expense Due to Changes in <br>Rate/Volume |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 Compared to 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 Compared to 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 Compared to 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 Compared to 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 Compared to 2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 Compared to 2023 |
| (in millions) | Volume <sup>(1) (3)</sup> | Rate <sup>(2) (3)</sup> | Total | Volume <sup>(1) (3)</sup> | Rate <sup>(2) (3)</sup> | Total |
| Securities purchased under agreements to resell | $**(196.1)** | $**(62.2)** | $**(258.3)** | $98.2 | $4.4 | $102.6 |
| Federal funds sold | **223.3** | **(35.6)** | **187.7** | (35.6) | 7.0 | (28.6) |
| Interest-bearing deposits | **(28.8)** | **(34.0)** | **(62.8)** | (12.3) | 7.2 | (5.1) |
| Investment securities | **65.7** | **(145.9)** | **(80.2)** | 214.8 | 60.6 | 275.4 |
| Advances | **(1185.2)** | **(561.8)** | **(1747.0)** | (281.7) | 158.7 | (123.0) |
| Mortgage loans held for portfolio | **11.4** | **17.3** | **28.7** | 4.3 | 15.9 | 20.2 |
| Total interest-earning assets | $**(1109.7)** | $**(822.2)** | $**(1931.9)** | $(12.3) | $253.8 | $241.5 |
| Deposits | $**(0.8)** | $**(6.5)** | $**(7.3)** | $1.1 | $0.8 | $1.9 |
| Consolidated obligation discount notes | **(65.6)** | **(111.9)** | **(177.5)** | (584.9) | 67.4 | (517.5) |
| Consolidated obligation bonds | **(892.7)** | **(693.9)** | **(1586.6)** | 563.7 | 147.8 | 711.5 |
| Other borrowings | **(1.7)** | **0.1** | **(1.6)** | (0.3) | 0.2 | (0.1) |
| Total interest-bearing liabilities | $**(960.8)** | $**(812.2)** | $**(1773.0)** | $(20.4) | $216.2 | $195.8 |
| Total increase (decrease) in net interest income | $**(148.9)** | $**(10.0)** | $**(158.9)** | $8.1 | $37.6 | $45.7 |

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*<u>Notes:</u>*

<sup>(1)</sup> Volume changes are calculated as the change in volume multiplied by the prior year rate.

<sup>(2)</sup> Rate changes are calculated as the change in rate multiplied by the prior year average balance.

<sup>(3)</sup> Changes that are not identifiable as either volume-related or rate-related, but rather are equally attributable to both volumes and rates, have been allocated to the volume and rate categories based upon the proportion of the absolute value of the volume and rate changes.

&nbsp;&nbsp;&nbsp;&nbsp;Interest income decreased in 2025 compared to 2024. The decrease was driven by lower average advances and lower yields due to a decrease in short-term interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;Interest expense decreased in 2025 compared to 2024 driven by lower average consolidated obligations and lower rates paid on consolidated obligations due to decreases in short-term interest rates.

For discussion related to 2024 compared to 2023, refer to the Net Interest Income disclosure included in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Bank's 2024 Form 10-K.

***Advance Prepayment Fee***s. When a borrower elects to prepay an advance, the Bank charges a borrower a prepayment fee, which makes the Bank financially indifferent to a borrower's decision to prepay an advance. The Bank records prepayment fees net of basis adjustments, if applicable, which are primarily related to hedging activities included in the carrying value of the advance, as interest income on advances on the Statements of Income. The following table summarizes the advance prepayment fees for 2025, 2024, and 2023.

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in millions) | **2025** | 2024 | 2023 |
| Gross amount of prepayment fees received from advance borrowers | $**1.8** | $1.4 | $0.1 |
| Hedging fair value adjustments | **—** | 7.2 |  |
| Other adjustments | **—** | (0.1) |  |
| Total advance prepayment fees, net | $**1.8** | $8.5 | $0.1 |

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***Derivative Effects on Net Interest Income.*** The following tables show the impact on net interest income from the effect of derivatives and hedging activities. Gains (losses) on derivatives and hedges items in qualifying fair value hedge relationships are recorded in interest income or expense. In addition, for derivatives designated as fair value hedges, the net interest settlements and the price alignment amount related to such derivatives are recognized as adjustments to the interest income or expense of the designated hedged item. As such, all the effects on earnings of derivatives qualifying for fair value hedge accounting are reflected in net interest income.

The effect on earnings from derivatives not receiving fair value hedge accounting are included in" Non-Interest Income".

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Total |
| Amortization/accretion of hedging activities | $**0.3** | $**(0.1)** | $**0.8** | $**—** | $**—** | $**1.0** |
| Gains (losses) on designated fair value hedges | **—** | **(0.7)** | **—** | **0.4** | **2.5** | **2.2** |
| Net interest settlements on designated fair value hedges  | **99.1** | **145.3** | **—** | **(215.7)** | **(2.0)** | **26.7** |
| Other - price alignment amount on cleared derivatives | **(3.4)** | **(9.9)** | **—** | **(0.5)** | **—** | **(13.8)** |
| Total effect on net interest income | $**96.0** | $**134.6** | $**0.8** | $**(215.8)** | $**0.5** | $**16.1** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Total |
| Amortization/accretion of hedging activities | $0.3 | $(0.1) | $(0.2) | $— | $— | $— |
| Gains (losses) on designated fair value hedges |  | (0.5) |  | 1.2 | (1.4) | (0.7) |
| Net interest settlements on designated fair value hedges | 302.6 | 229.0 |  | (491.6) | (5.3) | 34.7 |
| Other - price alignment amount on cleared derivatives | (13.4) | (21.0) |  | (0.6) | 0.1 | (34.9) |
| Total effect on net interest income | $289.5 | $207.4 | $(0.2) | $(491.0) | $(6.6) | $(0.9) |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Total |
| Amortization/accretion of hedging activities | $0.3 | $(0.1) | $(0.5) | $— | $— | $(0.3) |
| Gains (losses) on designated fair value hedges |  | (0.4) |  | (1.1) | (0.5) | (2.0) |
| Net interest settlements on designated fair value hedges | 266.9 | 129.7 |  | (618.5) | (8.7) | (230.6) |
| Other - price alignment amount on cleared derivatives | 49.0 | 59.6 |  | (10.4) | (0.2) | 98.0 |
| Total effect on net interest income | $316.2 | $188.8 | $(0.5) | $(630.0) | $(9.4) | $(134.9) |

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&nbsp;&nbsp;&nbsp;&nbsp;

The Bank's primary hedging strategy uses derivatives to hedge the fair market value changes attributable to changes in the benchmark interest rates. The purpose of this strategy is to protect the net interest spread against adverse interest rate changes. Using derivatives to convert interest rates from fixed to variable can increase or decrease net interest income. The variances in the derivative impacts from period to period are driven by the change in the average variable rate, the timing of interest rate resets and the average hedged portfolio balances outstanding during any given period.

In addition, the Bank uses many different funding and hedging strategies. These strategies involve closely match-funding bullet advances with bullet debt. This is designed in part to avoid the use of derivatives where prudent and reduce the Bank's reliance on short-term funding.

***Provision (Reversal) for Credit Losses.*** The provision for credit losses was $2.8 million for 2025 compared to a provision of $2.1 million for 2024. The provisions reflected in both 2025 and 2024 were driven by private label MBS classified as AFS primarily due to slower prepayment speeds and declines in market values on certain securities.

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**Noninterest Income**

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| | | | |
|:---|:---|:---|:---|
| (in millions) | 2025 | 2024 | 2023 |
| Net gains (losses) on investment securities | $**4.6** | $0.3 | $3.9 |
| Net gains (losses) on derivatives | **(22.8)** | 8.5 | (0.1) |
| Standby letters of credit fees | **34.6** | 34.8 | 31.0 |
| Other, net | **2.2** | 4.4 | 2.0 |
| Total noninterest income (loss) | $**18.6** | $48.0 | $36.8 |

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&nbsp;&nbsp;&nbsp;&nbsp;The change in the Bank's total noninterest income for 2025 compared to 2024 was due primarily to valuation changes in the Bank's derivative portfolio resulting from interest rate volatility.

*&nbsp;&nbsp;&nbsp;&nbsp;2024 vs 2023.* For discussion of this year-to-year comparison, refer to the Noninterest Income disclosure included in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Bank's 2024 Form 10-K.

***Derivatives and Economic Hedging Activities.*** The Bank enters into interest rate swaps, TBAs, interest rate caps and floors and swaption agreements, all of which are referred to as derivatives transactions. The Bank enters into derivatives transactions to offset all or portions of the financial risk exposures inherent in its member lending, investment and funding activities. Derivatives are recorded on the balance sheet at fair value. Changes in derivatives' fair values are recorded in the Statements of Income.

Economic hedges address specific risks inherent in the Bank's balance sheet, but either they do not qualify for hedge accounting or the Bank does not elect to apply hedge accounting. As a result, income recognition on the derivatives in economic hedges may vary considerably compared to the timing of income recognition on the underlying asset or liability. The Bank does not enter into derivatives for speculative purposes nor does it have any cash flow hedges.

The Bank's predominant hedging instrument is an interest rate swap. At the time of inception, the fair market value of an interest rate swap generally equals or is close to zero. Notwithstanding the exchange of interest payments made during the life of the swap, which are recorded as either interest income/expense or as a gain (loss) on derivatives, depending upon the accounting classification of the hedging instrument, the fair value of an interest rate swap returns to zero at the end of its contractual term. Therefore, although the fair value of an interest rate swap is likely to change over the course of its full term, upon maturity any unrealized gains and losses generally net to zero.

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&nbsp;&nbsp;&nbsp;&nbsp; The following tables detail the net effect of economic derivatives on noninterest income during 2025, 2024 and 2023. For information on derivative utilizing hedge accounting reported in net interest income, see Derivative Effects on Net Interest Income within the Earnings Performance - Net Interest Income in this Item.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Other | Total |
| Net gains (losses) on derivatives: |  |  |  |  |  |  |  |
| Gains (losses) on derivatives not receiving hedge accounting, including net interest settlements | $**(1.1)** | $**(10.2)** | $**(17.0)** | $**5.6** | $**0.1** | $**—** | $**(22.6)** |
| Other - price alignment amount on cleared derivatives | **—** | **—** | **—** | **—** | **—** | **(0.2)** | **(0.2)** |
| Total net gains (losses) on derivatives | $**(1.1)** | $**(10.2)** | $**(17.0)** | $**5.6** | $**0.1** | $**(0.2)** | $**(22.8)** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Other | Total |
| Net gains (losses) on derivatives: |  |  |  |  |  |  |  |
| Gains (losses) on derivatives not receiving hedge accounting, including net interest settlements | $9.6 | $9.9 | $6.1 | $(15.6) | $— | $— | $10.0 |
| Other - price alignment amount on cleared derivatives |  |  |  |  |  | (1.5) | (1.5) |
| Total net gains (losses) on derivatives | $9.6 | $9.9 | $6.1 | $(15.6) | $— | $(1.5) | $8.5 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
| (in millions) | Advances | Investments | Mortgage Loans | Bonds | Discount Notes | Other | Total |
| Net gains (losses) on derivatives: |  |  |  |  |  |  |  |
| Gains (losses) on derivatives not receiving hedge accounting, including net interest settlements | $10.8 | $(0.6) | $(4.2) | $(4.4) | $0.1 | $— | $1.7 |
| Other - price alignment amount on cleared derivatives |  |  |  |  |  | (1.8) | (1.8) |
| Total net gains (losses) on derivatives | $10.8 | $(0.6) | $(4.2) | $(4.4) | $0.1 | $(1.8) | $(0.1) |

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*<u>Derivatives not receiving hedge accounting.</u>* For derivatives not receiving hedge accounting (i.e., economic hedges and mortgage delivery commitments), the Bank includes the net interest settlements and the fair value changes in the "Net gains (losses) on derivatives" financial statement line item. For economic hedges, the Bank recorded net losses of $(22.6) million in 2025 compared to net gains of $10.0 million in 2024. The net losses observed during 2025 were driven by a decline in asset swap valuations, partially offset by gains on liability swaps, due to decreases in mid- and long- term rates in 2025 as well as an increase in the total size of the portfolio. The total notional amount of economic hedges, which includes mortgage delivery commitments, increased to $8.6 billion at December 31, 2025 from $4.9 billion at December 31, 2024.

*&nbsp;&nbsp;&nbsp;&nbsp;2024 vs 2023.* For discussion of this year-to-year comparison, refer to the Derivatives and Hedging Activities disclosure included in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Bank's 2024 Form 10-K.

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**Other Expense**

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| | | | |
|:---|:---|:---|:---|
| (in millions) | 2025 | 2024 | 2023 |
| Compensation and benefits | $**63.5** | $63.3 | $58.7 |
| Other operating | **47.9** | 48.3 | 41.8 |
| Finance Agency | **8.9** | 8.6 | 7.0 |
| Office of Finance | **7.1** | 7.5 | 6.0 |
| Voluntary contributions | **48.6** | 49.2 | 11.7 |
| Total other expense | $**176.0** | $176.9 | $125.2 |

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The Bank's total other expense was $176.0 million for 2025, relatively flat compared to 2024.

*&nbsp;&nbsp;&nbsp;&nbsp;2024 vs 2023.* For discussion of this year-to-year comparison, refer to the Other Expense disclosure included in Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations in the Bank's 2024 Form 10-K.

**Community Products**

The Bank's mission includes the important public policy goal of making funds available for housing and economic development in the communities served by the Bank's member financial institutions. In support of this goal, the Bank administers a number of products, some mandated and some voluntary. The AHP funds, which are offered on a competitive basis, provide grants for both rental and owner-occupied housing for households at 80% or less of the area median income.

*AHP.* AHP, mandated by the FHLBank Act, is the largest and primary public policy product of the Bank. Through AHP, members have access to grants to create affordable rental and homeownership opportunities that benefit low- and moderate-income neighborhoods. Award recipients are required to have a Bank member sponsor their application.

The Bank is required by statute to contribute 10% of its current year earnings (GAAP net income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP) to AHP and makes these funds available for use in the subsequent year. Statutory AHP assessments for 2025, 2024 and 2023 were $46.6 million, $65.5 million and $64.9 million, respectively.

In addition, the Bank made supplemental voluntary contributions to AHP of $5.0 million in 2025 and $5.1 million in 2024 to restore the amount available for AHP, absent the Bank's voluntary contribution. These funds are available for use in the subsequent year. The Bank did not make such a supplemental voluntary contribution to AHP in 2023. The supplemental voluntary AHP contribution is reported in the Statements of Income as a Voluntary Contributions.

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| | | | |
|:---|:---|:---|:---|
| **Statutory AHP Assessments and AHP Voluntary Contributions (in millions)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |
| Net income subject to statutory assessment | **$465.6** | $655.4 | $646.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory AHP assessment percentage | **10%** | 10% | 10% |
| Statutory AHP Assessment | **$46.6** | $65.5 | $64.7 |
| Adjustment: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Supplemental voluntary AHP contributions | **$5.0** | 5.1 | N/A |
| Total contributions to AHP | **$51.6** | $70.6 | $64.7 |

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The following table details that the statutory AHP assessment plus the supplemental voluntary AHP contribution restored the amount contributed to AHP to 10%, absent the Bank's voluntary contributions.

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| | | |
|:---|:---|:---|
| **Restoration of AHP Proof (in millions)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| Net income subject to statutory assessment | **$465.6** | $655.4 |
| Voluntary contributions recognized in net income | **44.8** | 45.5 |
| Supplemental voluntary AHP contributions | **5.0** | 5.1 |
| Total net income absent voluntary contributions | **$515.4** | $706.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory AHP assessment percentage | **10%** | 10% |
| AHP assessment absent voluntary contributions | **$51.6** | $70.6 |

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Each year, the Bank's Board adopts an AHP Implementation Plan that defines the structure of AHP pursuant to the AHP regulations. The following table details the funding round attributes and the distribution of AHP funds during 2025 and 2024.

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| | | |
|:---|:---|:---|
| | 2025 | 2024 |
| Funding Rounds | **1** | 1 |
| Eligible Applications | **160** | 216 |
| Grants | **$61.3 million** | $50.8 million |
| Projects | **51** | 44 |
| Project Development Costs | **$292.8 million** | $304.7 million |
| Units of Affordable Housing | **1082** | 898 |

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In addition, the Board has approved a homeownership set-aside program in its AHP Implementation Plan, the First Front Door program (FFD). FFD offers grant funds to first time homebuyers to assist with the purchase of a home. First time homebuyers could receive grants up to $15,000. FFD grants are available to households earning 80% or less of the area median income. Members apply for FFD on behalf of their borrowers.

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| | | |
|:---|:---|:---|
| | 2025 | 2024 |
| Homebuyers Funded | **913** | 931 |
| Amounts Funded | **$13.5 million** | $13.3 million |

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*Loan Programs.* Pursuant to the requirements of the Community Investment Cash Advance Regulation, the Bank offers a mandatory loan product, the Community Lending Program (CLP). The Bank also offers a voluntary loan product, Banking On Business (BOB).

CLP offers advances to members at the Bank's cost of funds if a member demonstrates qualified lending activity. CLP provides the advantage of a low-cost funding source. CLP advances help member institutions finance housing construction and rehabilitation, infrastructure improvement, and economic and community development projects that benefit targeted neighborhoods and households. CLP advances are recorded as Advances on the Statements of Condition.

The Bank's BOB loan product is targeted to assist in the growth and development of small business, including both start-up and expansion. The Bank's member applies for a BOB loan on behalf of the borrower. An approved BOB loan makes funds available to members to extend credit to approved small business borrowers, enabling small businesses to qualify for credit that would otherwise not be available. BOB loans are unsecured and secondary to a member's loan. As a result, BOB loans are recorded net of an Allowance for Credit Losses (ACL), as discussed below, and are recorded in Other assets on the Statements of Condition. In addition, in 2025 and 2024, the Bank offered a set-aside of BOB for specified eligible borrowers, the Banking On Business Inclusion and Equity fund (BOBIE), which was established in accordance with applicable law as a special purpose credit program. Following the closing of BOBIE's 2025 program year, the Bank ceased offering this set-aside program.

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The following table presents the loans funded to members during 2025 and 2024 and the outstanding loan balances as of December 31, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | Loans Funded | Loans Funded | Balance, net | Balance, net |
| (in millions) | 2025 | 2024 | December 31, 2025 | December 31, 2024 |
| <u>Mandatory Loan Products</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;CLP | **$412.8** | $481.7 | **$1171.0** | $1275.1 |
| <u>Voluntary Loan Products</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;BOB | **5.1** | 6.8 | **22.2** | 21.2 |
| &nbsp;&nbsp;&nbsp;BOBIE | **5.5** | 5.1 | **13.4** | 9.8 |
| Total Loan Products | **$423.4** | $493.6 | **$1206.6** | $1306.1 |

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The following table presents the CLP advances committed and also includes the expected economic impact of qualifying activity represented in the commitments during 2025 and 2024.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| (dollars in millions) | Funds Committed | Number of Commitments | Housing Units Supported | Jobs Supported | Funds Committed | Number of Commitments | Housing Units Supported | Jobs Supported |
| CLP | **$536.5** | **62** | **232** | **3005** | $536.8 | 81 | 527 | 4859 |

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The Bank approves the BOB loan, which commits the Bank to fund the BOB loan at a future date. The following table presents the BOB loans committed and the economic impact of those BOB loans during 2025 and 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| (dollars in millions) | Funds Committed | Number of Commitments | Expected Jobs Created/Retained | Funds Committed | Number of Commitments | Expected Jobs Created/Retained |
| BOB | **$5.3** | **35** | **369** | $7.0 | 50 | 765 |
| BOBIE | **5.8** | **36** | **612** | 5.5 | 49 | 588 |
| Total | **$11.1** | **71** | **981** | $12.5 | 99 | 1353 |

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BOB loans are unsecured loans to small businesses, and the Bank expects to incur credit losses on them. This estimated expected credit loss is recorded when the Bank commits to fund the BOB loan and is subsequently assessed quarterly. The estimated expected credit loss is based on a loan's probability of default and loss given default. Loss given default is 100% because the BOB loans are unsecured, secondary loans. The probability of default is based on the actual performance of the BOB program. The Bank considers BOB loans that are delinquent to be nonperforming assets. The estimated expected credit loss is recorded in "Other" income.

At the time of the BOB loan commitment, the Bank promised to provide credit support to the small business for economic development. The estimated credit support recognized on the commitment date was $1.2 million, $1.4 million and $0.9 million for the years ended December 31, 2025, 2024 and 2023, respectively and recorded as an ACL. The ACL, associated with outstanding BOB loans at December 31, 2025 and 2024 was $5.4 million and $4.7 million, respectively.

*Housing Discretionary Grants and Contributions.* The amounts shown in the following table represent voluntary contributions reported on the Bank's Statements of Income. These contributions were provided through various initiatives and programs during 2025, 2024, and 2023.

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| | | | |
|:---|:---|:---|:---|
| (in millions) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |
| Voluntary Housing Grants | **$28.9** | $30.0 | $8.0 |
| Home4Good | **6.0** | 6.0 | 3.5 |
| First Front Door Keys to Equity fund | **7.6** | 7.4 |  |
| Supplemental voluntary AHP contributions | **5.0** | 5.1 |  |
| Blueprint Communities<sup>®</sup> | **1.0** | 0.7 | 0.2 |
| Disaster Relief | **0.1** |  |  |
| Total | **$48.6** | $49.2 | $11.7 |

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*Note:* 

<sup>®</sup> "Blueprint Communities" is a registered service mark of the Federal Home Loan Bank of Pittsburgh

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During 2025 and 2024, the Bank awarded $28.9 million and $30.0 million, respectively in voluntary housing grants to support affordable housing projects exclusively in Delaware, Pennsylvania and West Virginia. All in-district projects applying for statutory AHP funding were automatically considered for the voluntary housing grant funding if the submitted project did not rank high enough to receive statutory AHP funding. The voluntary housing grant initiative is a separate and distinct offering and not part of the statutory AHP. The following table details voluntary housing grant round attributes for 2025 and 2024.

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| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| Funding Rounds | **1** | 1 |
| Eligible Applications | **90** | 191 |
| Grants | **$28.9 million** | $30.0 million |
| Projects | **24** <sup>(1)</sup> | 29 <sup>(2)</sup> |
| Project Development Costs | **$129.6 million** | $148.9 million |
| Units of Affordable Housing | **741** | 683 |

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*Notes:* 

<sup>(1)</sup> Includes 5 projects in Delaware, 14 in Pennsylvania and 5 in West Virginia.

<sup>(2)</sup> Includes 4 projects in Delaware, 21 in Pennsylvania and 4 in West Virginia.

&nbsp;&nbsp;&nbsp;&nbsp;Home4Good helps those who are experiencing or at risk of experiencing homelessness in collaboration with three state housing finance agencies (HFAs), the Delaware State Housing Authority, the Pennsylvania Housing Finance Agency and the West Virginia Housing Development Fund. All grant awards are made to homeless service providers and Continuums of Care serving those experiencing homelessness.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 2024 | 2024 | 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023 |
| (dollars in millions) | Bank Contribution | HFA Contribution | Projects Approved | Bank Contribution | HFA Contribution | Projects Approved | Bank Contribution | HFA Contribution | Projects Approved |
| Delaware | **$0.8** | **$0.6** | **26** | $0.9 | $0.6 | 16 | $0.5 | $0.6 | 14 |
| Pennsylvania | **$3.8** | **$1.5** | **60** | $3.8 | $1.5 | 59 | $2.2 | $1.5 | 55 |
| West Virginia | **$1.4** | **$0.3** | **24** | $1.3 | $0.4 | 20 | $0.8 | $0.3 | 21 |
| Total | **$6.0** | **$2.4** | **110** | $6.0 | $2.5 | 95 | $3.5 | $2.4 | 90 |

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In 2025 and 2024, the Bank offered a separate voluntary program, the First Front Door Keys to Equity fund (Keys to Equity), that provided grant funds to specified eligible first-time homebuyers, and a portion of Keys to Equity was established in accordance with applicable law as a special purpose credit program. Under the 2025 and 2024 Keys to Equity program years, specified eligible households earning 120% or less of the area median income could receive grants up to $20,000. Members applied for Keys to Equity grants on behalf of their borrowers. Following the closing of Keys to Equity's 2025 program year, the Bank ceased offering the program. In 2026, the Bank expects to offer a new and unrelated voluntary program, First Front Door Keys (FFD Keys), for the benefit of eligible first-time, first-generation homebuyers. FFD Keys will not be established as a special purpose credit program.

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| | | |
|:---|:---|:---|
| (dollars in millions) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| Homebuyers Funded | **384** | 377 |
| Amounts Funded | **$7.6** | $7.4 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank's Blueprint Communities® initiative was created to help revitalize communities. Since its 2005 inception, 74 communities have participated in the initiative. Initiative participation during 2025, 2024 and 2023 was 17 communities, 23 communities, and 18 communities, respectively. Instead of a one-time project or grant, the program gives local leaders the tools to create and implement a long-term revitalization strategy. Intermittent application periods are conducted on a state-by-state basis within the Bank's district. When a new application period begins, application information is shared with the Bank's member financial institutions and other stakeholders via the Bank's website and several other channels. Community applicants, typically groups led by dedicated individuals or organizations, generally have populations of 30,000 or less.

*Commitment to Contribute 5% of Earnings to Community Products.* In addition to statutory AHP assessments under the FHLBank Act, the Bank committed to make voluntary contributions of 5% of earnings to its suite of voluntary community

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products in 2025, 2024 and 2023. The following table details the Bank's 5% voluntary contribution commitment target and the actual fulfillment of that target for 2025, 2024 and 2023.

In 2025 and 2024, the Bank adjusted the calculation of the 5% voluntary contribution commitment target to more closely align with the regulatory calculation for AHP. Specifically, the Bank adjusted prior year GAAP pre-assessment net income by adding back interest expense related to mandatorily redeemable capital stock. Further, the Bank adjusted calculated voluntary contribution commitment target for the impact of prior years' voluntary contributions on net income to restore the amount available for AHP, absent the Bank's voluntary contribution. The Bank did not make such adjustments in 2023.

In 2025 and 2024, the Bank made supplemental voluntary AHP contributions to restore the amount available for AHP, absent the Bank's voluntary contribution. The supplemental voluntary AHP contribution is excluded from the Bank's fulfillment of its 5% voluntary contribution commitment. However, it is reported as a Voluntary Contributions in the Statements of Income. The Bank did not make such a supplemental voluntary contribution to AHP in 2023.

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| | | | |
|:---|:---|:---|:---|
| (dollars in millions) | 2025 | 2024 | 2023 |
| **Voluntary Contribution Commitment Target** |  |  |  |
| Prior year's pre-assessment net income | **$653.1** | $646.5 | $252.5 |
| Interest expense on mandatorily redeemable capital stock | **$2.4** | $2.3 | N/A |
| Adjusted prior year's pre-assessment net income | **$655.5** | $648.8 | $252.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Voluntary contribution commitment % | **5%** | 5% | 5% |
| Unadjusted 5% target | **$32.8** | $32.4 | $12.6 |
| Adjustments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contribution for prior year Voluntary Contributions | **$2.5** | $0.7 |  |
| Total Adjusted 5% Voluntary Commitment Target | **$35.3** | $33.1 | 12.6 |

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| | | | |
|:---|:---|:---|:---|
| **Voluntary Contribution Commitment Fulfillment** | 2025 | 2024 | 2023 |
| Non-interest income - Other, net |  |  |  |
| &nbsp;&nbsp;&nbsp;BOB Estimated Credit Support | **$1.2** | $1.4 | $0.9 |
| <u>Other expense - Voluntary Contributions</u> <sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;Voluntary Housing Grants | **28.9** | 30.0 | 8.0 |
| &nbsp;&nbsp;&nbsp;Home4Good | **6.0** | 6.0 | 3.5 |
| &nbsp;&nbsp;&nbsp;Keys | **7.6** | 7.4 |  |
| &nbsp;&nbsp;&nbsp;Blueprint Communities <sup>®</sup> | **1.0** | 0.7 | 0.2 |
| &nbsp;&nbsp;&nbsp;Disaster Relief | **0.1** |  |  |
| Total Other expense - Voluntary Contributions | **43.6** | 44.1 | 11.7 |
| Total | **$44.8** | $45.5 | $12.6 |
| Fulfillment % | **6.3%** | 6.9% | 5.0% |

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*Notes:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Excludes $5.0 million and $5.1 million of supplemental voluntary AHP contributions in 2025 and 2024, respectively.

<sup>®</sup> "Blueprint Communities" is a registered service mark of the Federal Home Loan Bank of Pittsburgh.

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**Financial Condition**

The following should be read in conjunction with the Bank's audited financial statements in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

**Assets**

&nbsp;&nbsp;&nbsp;&nbsp;Total assets were $73.3 billion at December 31, 2025, compared with $106.9 billion at December 31, 2024. The decrease of $33.6 billion was primarily due to a decline in advances. Advances totaled $36.8 billion at December 31, 2025, a decrease of $33.1 billion, compared to $69.9 billion at December 31, 2024. The MBS portfolio declined to $13.4 billion at December 31, 2025 compared to $14.3 billion at December 31, 2024 as the Bank curtailed MBS purchases once the portfolio reached the regulatory limit relative to equity. The Bank's return on average assets was 0.46% for 2025 and 0.52% for 2024.

The Bank's core mission activities include the issuance of advances and acquiring member assets through the MPF<sup>®</sup> program. "Mortgage partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago. The core mission asset ratio, defined as the ratio of par amount of advances and MPF loans relative to consolidated obligations adjusted for certain U.S. Treasury securities using full year average balances, was 68.9% as of December 31, 2025 and 77.8% as of December 31, 2024. The decrease in this ratio is primarily due to lower average advances.

***Advances.*** Advances (par) totaled $36.8 billion at December 31, 2025 compared to $70.0 billion at December 31, 2024, a decrease of 47.4%. Advance demand continues to be driven by members' liquidity management, which are influenced by their loan demand, deposit balances and investment activities. Although advance demand decreased, it is not uncommon for fluctuation in the overall advance portfolio driven by changes in member needs. At December 31, 2025, the Bank had advances to 128 borrowing members, compared to 153 borrowing members at December 31, 2024. Advances outstanding to the Bank's five largest borrowers totaled 70.6% in 2025 compared to 80.5% in 2024. Fixed rate advances with a balance of $21.2 billion comprised 57.6% of the total par value of advances outstanding at December 31, 2025 compared to $22.4 billion comprising 32.0% at December 31, 2024.

The following table provides information on advances at par by redemption terms at December 31, 2025 and December 31, 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in millions) | Due in 1 year or less <sup>(1)</sup> | Due after 1 year through 3 years | Due after 3 years through 5 years | Due after 5 years through 15 years | Thereafter | Total par value |
| Fixed-rate | $**13108.0** | $**7361.8** | $**248.7** | $**70.0** | $**74.8** | $**20863.3** |
| Variable-rate | **9990.9** | **5010.0** | **—** | **—** | **—** | **15000.9** |
| Variable-rate, callable or prepayable <sup>(2)</sup> | **15.0** | **595.0** | **—** | **—** | **—** | **610.0** |
| Other <sup>(3)</sup> | **219.0** | **128.5** | **14.6** | **7.4** | **—** | **369.5** |
| Total par balance | $**23332.9** | $**13095.3** | $**263.3** | $**77.4** | $**74.8** | $**36843.7** |
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in millions) | Due in 1 year or less <sup>(1)</sup> | Due after 1 year through 3 years | Due after 3 years through 5 years | Due after 5 years through 15 years | Thereafter | Total par value |
| Fixed-rate | $12497.3 | $7589.3 | $1605.5 | $71.0 | $74.8 | $21837.9 |
| Variable-rate | 36253.0 | 8225.0 | 1000.0 |  |  | 45478.0 |
| Variable-rate, callable or prepayable <sup>(2)</sup> | 2000.0 | 27.5 | 92.5 |  |  | 2120.0 |
| Other <sup>(3)</sup> | 223.9 | 321.0 | 34.6 | 12.2 |  | 591.7 |
| Total par balance | $50974.2 | $16162.8 | $2732.6 | $83.2 | $74.8 | $70027.6 |

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*<u>Notes:</u>*

<sup>(1)</sup> Includes overnight advances.

<sup>(2)</sup> Prepayable advances are those advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees.

<sup>(3)</sup> Includes fixed-rate amortizing/mortgage matched, convertible, and other advances.

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The Bank had no putable advances at December 31, 2025 or December 31, 2024.

The following table provides a distribution of the number of members, categorized by individual member asset size (as reported quarterly) that had an outstanding advance balance during 2025 and 2024. Commercial bank and savings institution members are classified by asset size as follows: Super-Regional (over $150 billion), Regional ($25 billion to $150 billion), Mid-size ($1.5 billion to $25 billion) and Community Financial Institutions (CFIs) (under $1.5 billion). Credit union and insurance members are classified separately.

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| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| Member Classification | 2025 | 2024 |
| Super-Regional | **3** | 3 |
| Regional | **6** | 5 |
| Mid-size | **33** | 37 |
| CFI  | **114** | 119 |
| Credit Union | **48** | 43 |
| Insurance | **35** | 26 |
| Total borrowing members during the period | **239** | 233 |
| Total membership | **282** | 284 |
| Percentage of members borrowing during the period | **84.8%** | 82.0% |

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The following table provides information at par on advances by member classification at December 31, 2025 and December 31, 2024.

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| | | |
|:---|:---|:---|
| (in millions) | December 31, | December 31, |
| Member Classification | 2025 | 2024 |
| Super-Regional | $**21350.0** | $49325.0 |
| Regional | **4312.8** | 7884.4 |
| Mid-size | **5798.4** | 6891.7 |
| CFI | **2265.8** | 2717.1 |
| Credit Union | **1388.6** | 1913.1 |
| Insurance | **1692.8** | 1275.4 |
| Non-member | **35.3** | 20.9 |
| Total | $**36843.7** | $70027.6 |

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***ACL - Advances.*** The Bank evaluates its advances for an allowance for credit losses on a collective, or pooled basis unless an individual assessment is deemed necessary because the instruments do not possess similar risk characteristics. The Bank pools advances by member type. Based on the collateral held as security, the Bank's credit extension and collateral policies and repayment history on advances, including that the Bank has not incurred any credit losses since inception, the Bank has not recorded an ACL at December 31, 2025 or December 31, 2024. For additional information on the allowance methodology, see Note 5 - Advances in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

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***Mortgage Loans Held for Portfolio, Net.*** Mortgage loans held for portfolio, net of ACL, was $5.2 billion and $4.8 billion at December 31, 2025 and December 31, 2024, respectively.

The following table provides mortgage loans held for portfolio by redemption term at December 31, 2025 and 2024.

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| | | |
|:---|:---|:---|
| (in millions) | December 31, 2025 | December 31, 2024 |
| Redemption Term |  |  |
| Due in 1 year or less | $**158.8** | $152.0 |
| Due after 1 year through 5 years | **672.2** | 642.0 |
| Due after 5 years through 15 years | **1880.0** | 1759.7 |
| Thereafter | **2464.2** | 2215.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total unpaid principal balance <sup>(1)</sup> | $**5175.2** | $4769.6 |
| Other adjustments, net <sup>(2)</sup> | **47.6** | 49.3 |
| Total mortgage loans held for portfolio | $**5222.8** | $4818.9 |
| Allowance for credit losses on mortgage loans | **(2.5)** | (2.4) |
| Mortgage loans held for portfolio, net | $**5220.3** | $4816.5 |

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*<u>Notes:</u>*

<sup>(1)</sup> Consists of fixed-rate mortgages.

<sup>(2)</sup> Consists of premiums, discounts, and other adjustments.

The Bank places conventional mortgage loans that are 90 days or more delinquent on nonaccrual status. In addition, the Bank records cash payments received as a reduction of principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by the recording of interest income. However, government mortgage loans that are 90 days or more delinquent remain in accrual status due to government guarantees or insurance. The Bank may provide a loan modification to borrowers experiencing financial difficulty. Performing loan modifications are not placed on nonaccrual status.

&nbsp;&nbsp;&nbsp;&nbsp;Foregone interest represents income the Bank would have recorded if the loan was paying according to its contractual terms. Foregone interest was immaterial for the Bank's mortgage loans for both 2025 and 2024.

The Bank continues to accrue interest on its government-insured or -guaranteed mortgage loans after becoming 90 days or more delinquent. The amount of mortgage loans 90 days or more delinquent and still accruing interest was $1.7 million and $2.8 million at December 31, 2025 and December 31, 2024, respectively.

The performance of the mortgage loans in the Bank's MPF Program remained stable compared to December 31, 2024, and the MPF Original portfolio continues to outperform the market based on national delinquency statistics. As of December 31, 2025, the Bank's seriously delinquent mortgage loans (90 days or more delinquent or in the process of foreclosure) represented 0.2% of the MPF Original portfolio, 0.9% of the MPF Plus portfolio and 0.5% of the MPF 35 portfolio, compared with 0.3%, 1.6%, and 0.5%, respectively, at December 31, 2024.

*ACL - Conventional MPF*.*** The Bank's conventional mortgage loan portfolio is comprised of large groups of smaller-balance homogeneous loans made to borrowers of PFIs that are secured by residential real estate. Expected credit losses are evaluated based on either an individual or collective assessment of the loans, depending on whether the loans share similar risk characteristics. The Bank purchases government-guaranteed and/or insured and conventional fixed-rate residential mortgage loans. Because the credit risk on the government-guaranteed/insured loans is predominantly assumed by other entities, only conventional mortgage loans are evaluated for an ACL.

The Bank determines its ACL through consideration of various loan portfolio and collateral-related characteristics, including past performance, current conditions, and reasonable and supportable forecasts of economic conditions. To estimate credit losses, the Bank uses a third-party model which incorporates certain assumptions, including forecasted housing prices and interest rates, as well as historical borrower behavior experience. The estimate of the expected credit losses includes coverage of certain losses by primary mortgage insurance (PMI), if applicable. The Bank may incorporate a qualitative adjustment to the model results, if deemed appropriate, based on current market conditions or results. For loans determined to be collateral dependent, the Bank charges-off the estimated credit loss against the reserve. However, if the estimated loss can be recovered through credit enhancement (CE), a receivable is established, resulting in a net charge-off. The expected credit loss of

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a collateral dependent mortgage loan to determine the charge-off is equal to the difference between the amortized cost basis of the loan and the estimated fair value of the underlying collateral, less selling costs.

The Bank recognizes a recovery when expected credit losses, including credit losses charged-off for collateral dependent loans, are less than the amounts previously charged-off. Expected recoveries of prior charge-offs, if any, are included as a reduction to the ACL through the Bank's provision (reversal) for credit losses. The reduction to the ACL is partially offset by a reversal of expected CE, resulting in a net impact to the Bank's provision (reversal) for credit losses.

The Bank's conventional MPF loans held for portfolio are required to be credit enhanced as determined through the use of a validated model so the risk of loss is limited to the losses within the Bank's risk tolerance. Credit losses on a mortgage loan may only be absorbed by the CE amount in the master commitment related to the loan. In addition, the CE structure of the MPF Program is designed such that initial losses on mortgage loans are incurred by the Bank up to an agreed upon amount, referred to as the First Loss Account (FLA). Additional eligible credit losses are covered by CE provided by PFIs (available CE) until exhausted. Certain losses incurred by the Bank on MPF 35 and MPF Plus can be recaptured by withholding fees paid to the PFI for its retention of credit risk. All additional losses are incurred by the Bank.

The following table presents the balance of the MPF CE structure as of December 31, 2025 and 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in millions) | Par Value | FLA | Available CE | Par Value | FLA | Available CE |
| MPF Original | $**1915.1** | $**10.0** | $**83.0** | $1849.3 | $9.3 | $76.7 |
| MPF 35 | **3095.1** | **22.3** | **127.3** | 2728.8 | 20.1 | 128.6 |
| MPF Plus | **80.8** | **14.9** | **0.6** | 99.2 | 14.9 | 0.7 |
| Total | $**5091.0** | $**47.2** | $**210.9** | $4677.3 | $44.3 | $206.0 |

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The following table presents certain metrics and ratios related to the Bank's mortgage loans held for portfolio. The ratios in the table below are reported after the application of CE.

---

| | | |
|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, |
| (dollars in millions) | 2025 | 2024 |
| Average mortgage loans outstanding during the period (unpaid principal balance (UPB)) | $**5008.4** | $4694.4 |
| (Charge-offs) Recoveries, net<sup>(1)</sup> | $**(0.3)** | $(0.5) |
| Net charge-offs (recoveries) to average loans outstanding during the period | **— %** | (0.01)% |
| (dollars in millions) | December 31, 2025 | December 31, 2024 |
| Mortgage loans held for portfolio (UPB) | $**5175.2** | $4769.6 |
| Nonaccrual loans (UPB) | $**23.8** | $24.9 |
| ACL on mortgage loans held for portfolio | $**2.5** | $2.4 |
| ACL to mortgage loans held for portfolio | **0.05%** | 0.05% |
| Nonaccrual loans to mortgage loans held for portfolio | **0.46%** | 0.52% |
| ACL to nonaccrual loans | **10.38%** | 9.75% |

---

*<u>Note:</u>*

<sup>(1)</sup> Net charge-offs that the Bank does not expect to recover through CE receivable.

The ACL on mortgage loans increased by $0.1 million during 2025. Changes in the ACL are typically not significant, as expected credit losses are reduced by the CE available to absorb losses on the loans in accordance with the credit structure of the MPF Program.

&nbsp;&nbsp;&nbsp;&nbsp;***Real Estate Owned (REO).*** When a PFI or servicer forecloses on a delinquent mortgage loan, the Bank reclassifies the carrying value of the loan to other assets as REO at fair value less estimated selling expenses. If the fair value of the REO property is lower than the carrying value of the loan, then the difference to the extent such amount is not expected to be recovered through recapture of performance-based CE fees is recorded as a charge-off to the ACL. The fair value less estimated

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costs to sell the property becomes the new cost basis for subsequent accounting. If the fair value of the REO property is higher than the carrying value of the loan, then the REO property is recorded at fair value less estimated selling costs. This is rare as the Bank believes this situation would require additional validation of the fair value. The servicer is charged with the responsibility for disposing of real estate on defaulted mortgage loans on behalf of the Bank. Once a property has been sold, the servicer presents a summary of the gain or loss for the individual mortgage loan to the master servicer for reimbursement of any loss. Gains on the sale of REO property are held and offset by future losses in the pool of loans, ahead of any remaining balances in the FLA. Losses are deducted from the FLA, if it has not been fully used. The amount of REO was immaterial at both December 31, 2025 and December 31, 2024.

***Cash and Investments.*** The Bank's strategy is to maintain its short-term liquidity position in part to be able to meet members' advance demand and Bank regulatory liquidity requirements. Excess cash is typically invested in overnight investments. The Bank also maintains an investment portfolio to enhance earnings. These investments may be classified as trading, AFS or HTM.

The Bank maintains a liquidity portfolio comprised of cash, interest-bearing deposits, Federal funds sold, securities purchased under agreements to resell, and U.S. Treasury obligations classified as trading or AFS. The liquidity portfolio remained relatively flat at $16.0 billion at December 31, 2025 compared to $15.8 billion at December 31, 2024. Liquid assets can fluctuate due to routine portfolio management practices.

The Bank's investment portfolio, excluding those investments included in the liquidity portfolio, is comprised of trading, AFS and HTM investments. The investments are subject to meet the Bank's risk guidelines and certain other requirements, such as yield. The Bank's investment portfolio was $14.5 billion at December 31, 2025 and $15.5 billion at December 31, 2024. During 2025, the Bank's MBS portfolio declined as the Bank curtailed MBS purchases once the portfolio reached the regulatory limit relative to equity.

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Investment securities, defined as all trading, AFS, and HTM securities, totaled $19.5 billion at December 31, 2025, compared to $19.6 billion at December 31, 2024. Details of the investment securities portfolio follow.

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| | | |
|:---|:---|:---|
| | Carrying Value | Carrying Value |
| | December 31, | December 31, |
| (in millions) | 2025 | 2024 |
| <u>Trading securities:</u> |  |  |
| Non-MBS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government-sponsored enterprises (GSE) | $**119.7** | $149.2 |
| Total trading securities | $**119.7** | $149.2 |
| <u>AFS securities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-MBS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**4912.3** | $4113.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority (TVA) obligations | **834.1** | 907.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local agency obligations | **174.8** | 169.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. obligations single-family | **1303.9** | 1712.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; GSE single-family | **4547.8** | 4597.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; GSE multifamily | **6314.3** | 6550.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Private label | **102.1** | 113.5 |
| Total AFS securities | $**18189.3** | $18163.8 |
| <u>HTM securities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. obligations single-family | $**470.2** | $636.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; GSE single-family | **405.2** | 382.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; GSE multifamily | **238.8** | 243.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Private label | **29.5** | 36.5 |
| Total HTM securities | $**1143.7** | $1298.8 |
| Total investment securities | $**19452.7** | $19611.8 |

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The following table presents the composition of investment securities, assuming no principal prepayments, as of December 31, 2025 and December 31, 2024. Contractual maturity of MBS is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (dollars in millions) | Due in 1 year or less | Due after 1 year through 5 years | Due after 5 years through 10 years | Due after 10 years | Net Carrying Value |
| <u>AFS securities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**396.7** | $**3768.9** | $**746.7** | $**—** | $**4912.3** |
| &nbsp;&nbsp;&nbsp;&nbsp; GSE and TVA obligations | **92.7** | **588.6** | **152.8** | **—** | **834.1** |
| &nbsp;&nbsp;&nbsp;&nbsp; State or local agency obligations | **—** | **11.0** | **89.3** | **74.5** | **174.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family | **—** | **—** | **—** | **1303.9** | **1303.9** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family | **0.3** | **11.5** | **83.0** | **4453.0** | **4547.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily | **8.3** | **3695.3** | **2610.7** | **—** | **6314.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label | **—** | **—** | **7.5** | **94.6** | **102.1** |
| Total AFS securities | $**498.0** | $**8075.3** | $**3690.0** | $**5926.0** | $**18189.3** |
| Yield on AFS Securities <sup>(1) (2)</sup> | **1.45%** | **3.34%** | **4.24%** | **4.78%** | **3.94%** |
| <u>HTM securities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family | $**—** | $**—** | $**2.3** | $**467.9** | $**470.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family | **—** | **0.9** | **3.2** | **401.1** | **405.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily | **—** | **238.8** | **—** | **—** | **238.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label | **—** | **—** | **29.5** | **—** | **29.5** |
| Total HTM securities | $**—** | $**239.7** | $**35.0** | $**869.0** | $**1143.7** |
| Yield on HTM securities <sup>(1) (2)</sup> | **— %** | **3.88%** | **5.52%** | **4.28%** | **4.23%** |

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*<u>Notes:</u>*

<sup>(1)</sup> Yield excludes the impact of derivatives in a hedging relationship.

<sup>(2)</sup> The yields on AFS and HTM securities represent weighted averages of the coupon rates adjusted by the impact of amortization and accretion of premiums and discounts for the total debt securities in the applicable portfolio.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (dollars in millions) | Due in 1 year or less | Due after 1 year through 5 years | Due after 5 years through 10 years | Due after 10 years | Net Carrying Value |
| <u>AFS securities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-MBS: |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations | $365.4 | $3352.9 | $394.7 | $— | $4113 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations | 99.2 | 540.6 | 267.3 |  | 907.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local agency obligations |  | 11.3 | 73.1 | 84.9 | 169.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family |  |  |  | 1712.4 | 1712.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family | 0.3 | 4.4 | 120.1 | 4473.1 | 4597.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily | 21.2 | 3765.2 | 2764.2 |  | 6550.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label |  |  | 3.9 | 109.6 | 113.5 |
| Total AFS securities | $486.1 | $7674.4 | $3623.3 | $6380.0 | $18163.8 |
| Yield on AFS Securities <sup>(1) (2)</sup> | 1.37% | 3.10% | 4.48% | 5.39% | 4.13% |
| <u>HTM securities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family | $— | $— | $2.6 | $633.4 | $636 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family |  | 1.0 | 3.3 | 378.1 | 382.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily |  | 243.9 |  |  | 243.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label |  |  | 29.2 | 7.3 | 36.5 |
| Total HTM securities | $— | $244.9 | $35.1 | $1018.8 | $1298.8 |
| Yield on HTM securities <sup>(1) (2)</sup> | —% | 3.87% | 5.85% | 4.44% | 4.37% |

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*<u>Notes:</u>*

<sup>(1)</sup> Yield excludes the impact of derivatives in a hedging relationship.

<sup>(2)</sup> The yields on AFS and HTM securities represent weighted averages of the coupon rates adjusted by the impact of amortization and accretion of premiums and discounts for the total debt securities in the applicable portfolio.

For additional information on the credit risk of the investment portfolio, see the Credit and Counterparty Risk - Investments discussion in the Risk Management section of this Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

***ACL - Investments.*** There was no ACL on investments except for certain of the Bank's private label MBS classified as AFS. Private label MBS classified as AFS are evaluated quarterly for expected credit losses on an individual security basis. In assessing whether a credit loss exists, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. The allowance is limited to the amount of the AFS security's unrealized loss, if any. If the AFS security is in an unrealized gain position, the ACL is zero. The ACL on AFS private label MBS was $16.7 million at December 31, 2025 and $14.2 million at December 31, 2024. The increase in the ACL was driven by private label MBS classified as AFS primarily due to slower prepayment speeds and a decline in market values on certain of those securities.

For additional information on the Bank's ACL methodology on investments, see Note 4 - Investments in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

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**Liabilities and Capital**

***Deposits.*** The Bank offers demand, overnight and term deposits for members and qualifying nonmembers. Total deposits at December 31, 2025 decreased to $590.8 million from $774.9 million at December 31, 2024. Interest-bearing deposits classified as demand and overnight pay interest based on a daily interest rate. The average balances of deposits were $709.0 million, $717.4 million, and $693.5 million and the weighted-average interest rates paid on interest bearing deposits were 4.18% , 5.15% and 5.03% during 2025, 2024 and 2023, respectively. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit. The Bank had no term deposits during 2025, 2024 and 2023. All of the Bank's deposits are uninsured.

Factors that generally influence deposit levels include turnover in members' investment securities portfolios, changes in member demand for liquidity driven by member institution deposit growth, the slope of the yield curve and the Bank's deposit pricing compared to other short-term money market rates. Fluctuations in this source of the Bank's funding are typically offset by changes in the issuance of consolidated obligation discount notes. The FHLBank Act requires the Bank to have assets, referred to as deposit reserves, invested in obligations of the United States, deposits in eligible banks or trust companies or loans with a maturity not exceeding five years, totaling at least equal to the current deposit balance. As of December 31, 2025 and 2024, excess deposit reserves were $42.0 billion and $74.3 billion, respectively.

***&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Obligations.*** Consolidated obligations consist of bonds and discount notes. The Bank's consolidated obligations totaled $67.5 billion at December 31, 2025, a decrease of $32.2 billion from December 31, 2024. The overall decrease in consolidated obligations outstanding is consistent with the decrease in advance balances. At December 31, 2025, the Bank's bonds outstanding decreased to $50.8 billion compared to $88.0 billion at December 31, 2024. Discount notes outstanding at December 31, 2025 increased to $16.7 billion from $11.7 billion at December 31, 2024. The funding mix shifted towards fixed rate callable bonds and discount notes that replaced maturing floating-rate bonds as the Bank took advantage of favorable funding spreads.

&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations bonds often have investor-determined features. The decision to issue a bond using a particular structure is based upon the desired amount of funding, and the ability of the Bank to hedge the risks. The issuance of a bond with a simultaneously-transacted interest-rate exchange agreement usually results in a funding vehicle with a lower cost than the Bank could otherwise achieve. The continued attractiveness of such debt/swap transactions depends on price relationships in both the consolidated bond and interest-rate exchange markets. If conditions in these markets change, the Bank may alter the types or terms of the bonds issued. The increase in funding alternatives available to the Bank through negotiated debt/swap transactions is beneficial to the Bank because it may reduce funding costs and provide additional asset/liability management tools. The types of consolidated obligations bonds issued can fluctuate based on comparative changes in their cost levels, supply and demand conditions, advance demand, and the Bank's balance sheet management strategy.

The following table provides information on consolidated obligations by product type and contractual maturity at December 31, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|<br><u>(in millions)</u> | Due in 1 year or less | Due after 1 year through 3 years | Due after 3 years through 5 years | Thereafter | Total par value |
| Discount Notes | $**16813.6** | $**—** | $**—** | $**—** | $**16813.6** |
| Fixed-rate, non-callable | **4374.0** | **2813.6** | **943.7** | **663.0** | **8794.3** |
| Fixed-rate, callable | **12379.5** | **2894.0** | **1614.0** | **2530.0** | **19417.5** |
| Variable- rate, non-callable | **17075.5** | **315.0** | **—** | **—** | **17390.5** |
| Variable- rate, callable | **4210.0** | **—** | **—** | **—** | **4210.0** |
| Step-up, non-callable | **520.0** | **80.0** | **—** | **—** | **600.0** |
| Step-up, callable | **345.0** | **—** | **20.0** | **110.0** | **475.0** |
| Total par balance | $**55717.6** | $**6102.6** | $**2577.7** | $**3303.0** | $**67700.9** |
| Other Adjustments <sup>(1)</sup> |  |  |  |  | $**(208.6)** |
| Total consolidated obligations |  |  |  |  | $**67492.3** |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <u>December 31, 2024</u> | <u>December 31, 2024</u> | <u>December 31, 2024</u> | <u>December 31, 2024</u> | <u>December 31, 2024</u> |
| (in millions) | Due in 1 year or less | Due after 1 year through 3 years | Due after 3 years through 5 years | Thereafter | Total par value |
| Discount Notes | $11777.4 | $— | $— | $— | $11777.4 |
| Fixed-rate, non-callable | 4581.9 | 2887.4 | 1917.2 | 752.0 | 10138.5 |
| Fixed-rate, callable | 4060.0 | 7411.5 | 2382.0 | 2423.0 | 16276.5 |
| Variable- rate, non-callable | 54224.4 |  |  |  | 54224.4 |
| Variable- rate, callable | 6315.0 |  |  |  | 6315.0 |
| Step-up, non-callable | 156.0 | 515.0 | 50.0 |  | 721.0 |
| Step-up, callable | 75.0 | 395.0 | 40.0 | 110.0 | 620.0 |
| Total par balance | $81189.7 | $11208.9 | $4389.2 | $3285.0 | $100072.8 |
| Other Adjustments <sup>(1)</sup> |  |  |  |  | $(422.5) |
| Total consolidated obligations |  |  |  |  | $99650.3 |

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*<u>Note:</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Consists of premiums, discounts, and hedging and other adjustments.

For additional information on the Bank's consolidated obligations, refer to Note 9 - Consolidated Obligations in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

***Commitments and Off-Balance Sheet Items.*** As of December 31, 2025, the Bank was obligated to fund approximately $33.3 million of mortgage loans and to issue $1,059.0 million in consolidated obligations. In addition, the Bank had $27.5 billion in outstanding standby letters of credit as of December 31, 2025. The Bank does not consolidate any off-balance sheet special purpose entities or other off-balance sheet conduits.

&nbsp;&nbsp;&nbsp;&nbsp;In accordance with regulations governing the operations of the FHLBanks, each FHLBank, including the Bank, is jointly and severally liable for the FHLBank System's consolidated obligations. Applicable law authorizes the Finance Agency to require any FHLBank to repay all or a portion of the principal or interest on consolidated obligations for which another FHLBank is the primary obligor. For additional information on the Bank's commitments and contingencies, refer to Note 15 in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

***Capital and Retained Earnings.*** The Bank's return on average equity was 8.47% for December 31, 2025 and 10.45% for December 31, 2024. Capital adequacy, including the level of retained earnings, is monitored through the evaluation of market value of equity to par value of capital stock (MV/CS) as well as other risk metrics. Details regarding these metrics are discussed in the Risk Management portion in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

The Bank's capital stock is owned by its members and former members. The concentration of the Bank's capital stock by institution type is presented below.

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| Commercial banks | **114** | $**1931.7** | 121 | $3179.3 |
| Savings institutions | **46** | **138.0** | 48 | 156.6 |
| Insurance companies | **48** | **131.1** | 43 | 114.0 |
| Credit unions | **71** | **91.1** | 69 | 111.5 |
| Community Development Financial Institutions | **3** | **0.3** | 3 | 0.3 |
| Total member institutions / total GAAP capital stock | **282** | $**2292.2** | 284 | $3561.7 |
| Mandatorily redeemable capital stock |  | **12.3** |  | 7.0 |
| Total capital stock |  | $**2304.5** |  | $3568.7 |

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&nbsp;&nbsp;&nbsp;&nbsp;The total number of members as of December 31, 2025 decreased by two compared to December 31, 2024. The Bank added eight new members and lost ten members: eight members merged with another institution within the Banks's district, one members merged with another institution outside of the Bank's district, and one member withdrew from membership

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The following tables present member holdings of 10% or more of the Bank's total capital stock including mandatorily redeemable capital stock outstanding as of December 31, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (dollars in millions) | December 31, 2025 | December 31, 2025 | (dollars in millions) | December 31, 2024 | December 31, 2024 |
|  | Capital Stock | % of Total |  | Capital Stock | % of Total |
| PNC Bank, N.A., Wilmington, DE <sup>(1)</sup> | $**547.9** | **23.8%** | TD Bank U.S. Holding Company <sup>(2)</sup> | $1039.5 | 29.1% |
| Ally Bank | $**359.0** | **15.6%** | PNC Bank, N.A., Wilmington, DE <sup>(1)</sup> | $907.0 | 25.4% |

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*<u>Notes:</u>*

<sup>(1)</sup> For Bank membership purposes, the principal place of business is Pittsburgh, PA.

<sup>(2)</sup> Member affiliates aggregated at the U.S. holding company level.

The Finance Agency has issued regulatory guidance to the FHLBanks relating to capital management and retained earnings. The guidance directs each FHLBank to assess, at least annually, the adequacy of its retained earnings with consideration given to future possible financial and economic scenarios. The guidance also outlines the considerations that each FHLBank should undertake in assessing the adequacy of its retained earnings.

The Bank uses a framework for evaluating retained earnings adequacy, consistent with regulatory guidance and requirements. Retained earnings are intended to cover unexpected losses and protect members' par value of capital stock. The framework also assists management in its overall analysis of the level of future dividends. The framework includes four risk elements that comprise the Bank's total retained earnings target: (1) market risk; (2) credit risk; (3) operational risk; and (4) accounting risk. The retained earnings target generated from this framework is sensitive to changes in the Bank's risk profile, whether favorable or unfavorable. The framework generated a retained earnings target of $780 million as of December 31, 2025 and $772 million as of December 31, 2024.

In addition to the retained earnings target, the Bank considers the amount of retained earnings needed for compliance with the regulatory minimum capital-to-asset ratio of 4% to determine an overall retained earnings need. The Bank's overall retained earnings need is $1,607 million as of December 31, 2025 and $1,652 million as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;

The following table presents retained earnings information for the current and prior year.

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| | | |
|:---|:---|:---|
| (in millions) | December 31, 2025 | December 31, 2024 |
| Unrestricted Retained Earnings | $**1462.3** | $1370.0 |
| Restricted Retained Earnings | **783.4** | 732.9 |
| Total Retained Earnings | $**2245.7** | $2102.9 |

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At December 31, 2025, the Bank's total required contribution to the restricted retained earnings account was $691.5 million compared with the current restricted retained earnings account balance of $783.4 million. These contributions have been made pursuant and are subject to an agreement among the FHLBanks, as discussed in Note 11 - Capital - Dividends and Retained Earnings in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

Retained earnings increased $142.8 million compared to December 31, 2024. The increase reflected net income that was partially offset by dividends paid. For additional information, see Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

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***Dividends.*** The Bank declares dividends based on an annualized yield and differentiates between membership and activity capital stock. The dividend received by the member is calculated based on the average capital stock owned by the member for the previous quarter. Historically, the Bank has paid cash dividends although dividends may be paid in capital stock. The following table presents dividend information for the current and prior years.

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| | 2025 | 2024 | 2023 |
| Dividends (in millions) | $**275.5** | $316.3 | $286.1 |
| Dividends per share | $**9.87** | $8.58 | $7.42 |
| Dividend payout ratio <sup>(1)</sup> | **65.87%** | 53.84% | 49.20% |
| Weighted average dividend rate <sup>(2)</sup> | **8.75%** | 8.53% | 7.76% |
| Average Fed Funds rate | **4.21%** | 5.15% | 5.03% |
| Dividend spread to Fed Funds | **4.54%** | 3.38% | 2.73% |

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*Notes:* 

<sup>(1)</sup> Represents dividends declared as a percentage of net income for the respective periods presented.

<sup>(2)</sup> Weighted average dividend rate is the dividend amount paid during the period divided by the average daily balance of prior period capital stock for the eligible dividends.

The increase in the weighted average dividend rate is reflective of the Bank's performance and intent to provide meaningful shareholder return. Details regarding the Bank's payment of dividends, including annual yields, for current and prior years are provided in Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

**Capital Resources**

The following should be read in conjunction with Note 11 - Capital in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

***Liquidity and Funding.*** Refer to the Liquidity and Funding Risk section of Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for details.

***Capital Plan and Dividends.*** Refer to the Capital Resources section of Item 1. Business in this Form 10-K for details.

**Risk-Based Capital (RBC)**

The Finance Agency's RBC regulatory framework requires the Bank to maintain sufficient permanent capital, defined as retained earnings plus capital stock, to meet its combined credit risk, market risk and operations risk. Each of these components is computed as specified in regulations and directives issued by the Finance Agency.

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| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in millions) | 2025 | 2024 |
| <u>Permanent capital:</u> |  |  |
| Capital stock <sup>(1)</sup> | $**2304.5** | $3568.7 |
| Retained earnings | **2245.7** | 2102.9 |
| Total permanent capital | $**4550.2** | $5671.6 |
| <u>RBC requirement:</u> |  |  |
| Credit risk capital | $**199.9** | $209.6 |
| Market risk capital | **459.6** | 521.6 |
| Operations risk capital | **197.9** | 219.4 |
| Total RBC requirement | $**857.4** | $950.6 |
| Excess permanent capital over RBC requirement | $**3692.8** | $4721.0 |

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*Note:*

<sup>(1)</sup> Capital stock includes mandatorily redeemable capital stock.

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&nbsp;&nbsp;&nbsp;&nbsp;The decrease in the total RBC requirement as of December 31, 2025 was primarily due to lower market risk capital and operational risk requirements. The decrease was primarily driven by declines in short-term interest rates in the third and fourth quarters of 2025 and corresponding changes to the scenarios used to determine the required market risk capital.

Based on the financial information as of December 31, 2025, the Finance Agency determined the Bank was adequately capitalized under the capital rule.

***Credit Risk Capital.*** The Bank's credit risk capital requirement is the sum of credit risk capital charges computed for assets, off-balance sheet items, and derivative contracts based on the credit risk percentages assigned to each item as determined by the Finance Agency. Credit risk amounts for private-label MBS and MPF assets are based upon projected losses from the simulation of stressed house price levels provided by the Finance Agency.

***Market Risk Capital.*** The Bank's market risk capital requirement is the market value of the Bank's portfolio at risk of loss due to adverse movements in interest rates as of the measurement calculation date. The Bank calculates the market value of its portfolio at risk using a market risk model that is subject to annual independent validation.

The market risk component of the overall RBC framework is designed around a "stress test" approach. Simulations of hundreds of historical market interest rate scenarios provided by the Finance Agency are generated and, under each scenario, the hypothetical beneficial/adverse effects on the Bank's current market value of equity are determined. The hypothetical beneficial/adverse effect associated with each historical scenario is calculated by simulating the effect of each set of market conditions upon the Bank's current risk position, which reflects current assets, liabilities, derivatives and off-balance sheet commitment positions as of the measurement date. From the resulting simulated scenarios, the average of the five largest deteriorations in market value of capital represents the market value risk component of the Bank's regulatory RBC requirement.

***Operations Risk Capital.*** The Bank's operations risk capital requirement as prescribed by Finance Agency regulation is equal to 30% of the sum of its credit risk capital requirement and its market risk capital requirement.

**Critical Accounting Estimates**

The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, income and expense. To understand the Bank's financial position and results of operations, it is important to understand the Bank's most significant accounting policies and the extent to which management uses judgment, estimates and assumptions in applying those policies. The Bank's critical accounting estimate relates to the Bank's fair value estimates of interest rate related derivatives and hedged items.

***Fair Value Estimates of Interest Rate Related Derivatives and Hedged Items.*** The Bank enters into derivatives, primarily interest rate swaps, to manage interest rate risk. The Bank normally designates eligible advances, investment securities or consolidated obligations as hedged items in fair value hedging relationships. Derivatives are recognized on the Statements of Condition at fair value and the hedged items are recognized on the Statements of Condition at benchmark fair value. At December 31, 2025 and 2024, the total notional amount of derivatives was $62.2 billion and $50.3 billion, respectively.

The fair value of interest rate related derivatives and hedged items is estimated using standard valuation techniques such as discounted cash flow analysis. The discounted cash flow analysis (i.e., pricing model) used to determine the fair value of derivatives and hedged items may have a significant effect on the reported fair values of assets and liabilities and the income and expense related thereto. These assumptions are highly subjective and are based on the best estimates of management regarding the amount and timing of future cash flows, volatility of interest rates and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions, as well as changes in market conditions, could result in a material impact to the Bank's financial results, including reported carrying values and increased earnings volatility.

The Bank regularly validates its pricing models that use discounted cash flows. Such model validations are performed by the Bank's model risk management department, which is separate from the model owner. In addition, the Bank benchmarks model-derived fair values to those provided by third-parties or alternative internal valuation models and applies thresholds at the trade and portfolio levels. The benchmarking analysis is performed by a group that is separate from the model owner. Results of the model validations and benchmarking analyses, as well as changes to the valuation methodologies and inputs, are reported to the Bank's Asset and Liability Committee (ALCO) (or subcommittee of), which is responsible for overseeing market risk.

To estimate the fair value of interest rate related derivatives, the pricing model utilizes market-observable inputs (inputs that are actively quoted and can be validated to external sources). Inputs are as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discount rate assumption. SOFR curve for SOFR indexed derivatives. Overnight Index Swap (OIS) curve for OIS indexed derivatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Forward interest rate assumption (rates projected in order to calculate cash flows through the designated term of the hedging relationship). OIS curve or SOFR curve; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility assumption. Market-based expectations of future interest rate volatility implied from current market prices for similar options.

To estimate the fair value of a hedged item in a long-haul hedging relationship, the Bank calculates a gain or loss on the hedged item attributable to changes in the benchmark interest rate being hedged. The change in value associated with the hedged item is calculated each period by projecting future hedged item cash flows based on the fixed interest rate assigned to the hedged item. For floating rate option embedded hedged items, the model projects cash flows utilizing the assigned forward interest rate curve and appropriate option pricing model. The projected future cash flows are then discounted using the rate curves corresponding to the designated benchmark rate plus a discount spread. The discount spread is calculated and set at hedge inception and is the amount added to the discount rate resulting in a fair value of zero at the inception of the hedging relationship. For additional information regarding the Bank's fair value estimates, refer to Note 14 - Estimated Fair Values in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

Changes in the fair value of derivatives are recorded each period in earnings, regardless of whether the transaction qualifies for hedge accounting. If the transaction is designated and qualifies for fair value hedge accounting, offsetting gains or losses on the hedged assets or liabilities are also recognized each period in earnings. The change in fair value of the derivatives and hedged items should effectively offset, which reduces earnings volatility. For example, gains (losses) on these derivatives were $(156.2) million, $283.6 million, and $112.2 million offset by (losses) gains on hedged items of $159.3 million, $(284.4) million, and $(114.5) million for the years ended December 31, 2025, 2024, and 2023, respectively. Not receiving hedge accounting could have a material impact on the Bank's financial results, including increased earnings volatility.

***Recent Accounting Developments.*** See Note 2 - Changes in Accounting Principle and Recently Issued Accounting Standards and Interpretations in Item 8. Financial Statements and Supplementary Data in this Form 10-K. Note 2 contains information on new accounting pronouncements impacting the 2025 financial statements or that will become effective for the Bank in future periods.

**Legislative and Regulatory Developments**

Certain significant legislative and regulatory actions and developments are summarized below.

The Bank is subject to various legal and regulatory requirements and priorities. Certain actions, regulatory priorities, and areas of focus, such as deregulation, by the federal executive administration have changed and continue to change the regulatory environment. For example, the Finance Agency repealed the Fair Lending, Fair Housing, and Equitable Housing Finance Plans regulation applicable to the FHLBanks, effective March 9, 2026, citing the federal executive administration's deregulatory priorities. Furthermore, during 2025, withdrawals and rescissions of certain rules, proposed rules, and advisory, regulatory, or technical guidance have affected, and likely will continue to affect, certain aspects of the Bank's business operations. These changes could have impact on the Bank's financial condition, results of operations, and reputation.

On January 20, 2026, the federal executive administration issued an executive order that seeks to restrict acquisitions by large institutional investors of single-family homes. Among other things, the executive order directs certain agencies, including the Finance Agency, to issue guidance to (i) prevent agencies and government-sponsored enterprises from providing for, approving, insuring, guaranteeing, securitizing, or facilitating the acquisition by a large institutional investor of a single-family home that could otherwise be purchased by an individual owner-occupant, or disposing of federal assets in a manner that transfers a single-family home to a large institutional investor; and (ii) promote sales to individual owner-occupants, including through anti-circumvention provisions, first-look policies, and disclosure requirements. The executive order also calls for legislative recommendations to codify related policies and directs certain agencies to conduct reviews and consider additional measures to combat speculation by large institutional investors in single-family housing markets. The Bank is unable to predict the nature of the guidance, measures, or recommendations, or how each may impact the Bank's business.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory actions and the impact they may have on the Bank and the FHLBank System. The Bank also cannot predict the federal executive administration's actions on U.S. housing finance and government-sponsored enterprises, including relating to

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the revision or end of conservatorships of Fannie Mae and Freddie Mac or potential reforms or enhancements to their capital structure, the imposition of new requirements or limitations on their existing authorities or changes in the nature of their government support, or any corresponding impacts to the FHLBank System, the secondary mortgage and mortgage-backed securities market, or the mortgage industry. The Bank continues to monitor these actions as they evolve and to evaluate their potential impact on the Bank. For a discussion of related risks, refer to Item 1A Risk Factors.

**Risk Management**

The Bank employs a corporate governance and internal control framework intended to support the effective management of the Bank's business activities and the related inherent risks. As part of this framework, the Bank's Board has approved a Risk Governance Policy and a Member Products Policy, both of which are reviewed regularly and re-approved at least annually. The Risk Governance Policy establishes risk guidelines, limits (if applicable), and standards for credit risk, market risk, liquidity risk, business risk and various forms of operational and technology risk, in accordance with Finance Agency regulations and consistent with the Bank's risk appetite. The Member Products Policy establishes the eligibility and authorization requirements, policy limits and restrictions, and the terms applicable to each type of Bank product or service, as well as collateral requirements. The risk appetite is established by the Board, as are other applicable guidelines in connection with the Bank's Capital Plan and overall risk management.

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**Risk Governance**

The Bank's lending, investment and funding and hedging activities expose the Bank to a number of risks that include market and interest rate risk, credit and counterparty risk, liquidity and funding risk, and operational and business risks. These include risks such as use and reliance on models and end-user computing tools, technology and information security risk, among others. In addition, the Bank's risks are affected by current and projected financial and residential mortgage market trends including those described in Item 1A. Risk Factors in this Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank believes that a strong and dynamic risk management process serves as a base for building member value in the cooperative. The Bank has a risk management infrastructure that addresses risk governance, appetite, measurement and assessment, and reporting, along with top and emerging risks, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Bank's policies and committees provide effective governance over the risk management process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Bank's risk appetite is integrated with the strategic plan and reinforced through management initiatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all material risk exposures have been reviewed to establish a robust set of key indicators, many with associated limits and guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Bank has a risk reporting system that provides for management and Board oversight of risk and a clear understanding of risks that the Bank faces; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management and the Board are actively engaged in surveying and assessing top and emerging risks.

Top risks are existing, material risks the Bank faces; these are regularly reviewed and actively managed. Emerging risks are those risks that are new or evolving forms of existing risks; once identified, potential action plans are considered based on probability and severity.

The Board and its committees have adopted a comprehensive risk governance framework to oversee the risk management process and manage the Bank's risk exposures. The framework is shown in the chart below. All Board members are provided training dealing with the specific risk issues relevant to the Bank. The following table describes the Committees of the Board and their focus in relation to risk governance:

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| | |
|:---|:---|
| **<u>Committee Title</u>** | **<u>Major Responsibilities</u>** |
| Audit | &nbsp;&nbsp;&nbsp;&nbsp;• Legal and regulatory compliance <br>&nbsp;&nbsp;&nbsp;&nbsp;• Integrity of internal and external financial reporting<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of the internal and external audit functions |
| Enterprise Risk Management \* | &nbsp;&nbsp;&nbsp;&nbsp;• Focus on the Bank's comprehensive risk appetite and position<br>&nbsp;&nbsp;&nbsp;&nbsp;• Risk issues that are significant for several committees<br>&nbsp;&nbsp;&nbsp;&nbsp;• Updates on regulatory issues |
| Finance | &nbsp;&nbsp;&nbsp;&nbsp;• Balance Sheet Management<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of market events and risk activities over interest rate, pricing, liquidity, funding and hedging and counterparty risk |
| Governance & Public Policy | &nbsp;&nbsp;&nbsp;&nbsp;• Develop and maintain best practices in governing the Bank<br>&nbsp;&nbsp;&nbsp;&nbsp;• Keep abreast of public policy issues impacting Bank's mission and purpose |
| Human Resources and OMWI Committee | &nbsp;&nbsp;&nbsp;&nbsp;• Oversight on strategies and policies around total rewards, culture, engagement and other matters affecting the workforce<br>&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with OMWI requirements |
| Membership, Credit and Community Investment | &nbsp;&nbsp;&nbsp;&nbsp;• Member credit risk and collateral management<br>&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage credit (MPF)<br>&nbsp;&nbsp;&nbsp;&nbsp;• AHP |
| Operational Risk | &nbsp;&nbsp;&nbsp;&nbsp;• Oversight of operating risks including compliance, fraud and Bank-wide risk assessment<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of risks related to information technology, continuity, vendor, model and cyber risk |

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\* Comprised of the entire Board

As previously mentioned, key components of this risk governance framework are the Board-level Member Products Policy and Risk Governance Policy. The Member Products Policy, which applies to products offered to members and housing associates, addresses the credit risk of secured credit by establishing appropriate collateralization levels and collateral valuation methodologies. The Risk Governance Policy establishes risk limits for the Bank in accordance with the risk profile established by the Board, Finance Agency regulations, credit underwriting criteria, and other applicable guidelines. The magnitude of the risk limits reflects the Bank's risk appetite given the market environment, the business strategy and the financial resources available to absorb potential losses. The limits are reviewed and continually re-evaluated with adjustments requiring Board approval and processes are included in the Risk Governance Policy. All breaches of risk limits are reported in a timely manner

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to the appropriate Board and senior management and the affected business unit must take appropriate action, as applicable, to rationalize and/or reduce affected positions. The risk governance framework also includes supplemental risk management policies and procedures that are reviewed on a regular basis to ensure that they provide effective governance of the Bank's risk-taking activities.

The following table describes the Management Committees which provide oversight and operational support in managing risks.

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| | |
|:---|:---|
| **<u>Committee Title</u>** | **<u>Major Responsibilities</u>** |
| Asset/Liability | &nbsp;&nbsp;&nbsp;&nbsp;• Reviews and approves financial management strategies and decisions<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of market events and risk activities over interest rate, pricing, liquidity, funding and hedging risks |
| Market Risk | &nbsp;&nbsp;&nbsp;&nbsp;• Sub-Committee of Asset/Liability Committee <br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversees and analyzes trends in market risk positions and fair market value pricing |
| Risk Management | &nbsp;&nbsp;&nbsp;&nbsp;• Bank-wide oversight of the Bank's primary risks<br>&nbsp;&nbsp;&nbsp;&nbsp;• Approves key overarching risk policies and Bank objectives to manage risk |
| Operational Risk Management | &nbsp;&nbsp;&nbsp;&nbsp;• Sub-Committee of Risk Management Committee<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversight of specific technology and operational risks |
| Executive | &nbsp;&nbsp;&nbsp;&nbsp;• Manages overall strategic direction of the Bank, along with key tactical decisions |
| Membership, Community and Credit Committee <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;• Oversees member credit and collateral risk<br>&nbsp;&nbsp;&nbsp;&nbsp;• Mortgage credit (MPF)<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversees member business activity<br>&nbsp;&nbsp;&nbsp;&nbsp;• Oversees community products and services |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Effective January 1, 2026, the Bank merged the Membership Credit Risk Committee and the Membership and Community Committee into a single committee: Membership, Community and Credit Committee

Further, Internal Audit provides an assessment of the internal control systems. Internal Audit activities are intended to provide reasonable assurance for the Board that: (1) risks are appropriately identified and managed; (2) significant financial, managerial and operating information is materially accurate, reliable and timely; and (3) employees' actions are in compliance with Bank policies, standards, procedures and applicable laws and regulations. Additionally, as a GSE, the Bank is subject to a comprehensive examination by the Finance Agency which executes its responsibilities via annual examinations, periodic evaluations, and monitoring of the various compliance and activity reports provided by the Bank.

***Capital Adequacy Measures*.** The MV/CS ratio provides a current assessment of the liquidation value of the balance sheet and measures the Bank's current ability to honor the par put redemption feature of its capital stock. This is one of the risk metrics used to evaluate the adequacy of retained earnings which is used to develop dividend payment recommendations and support the repurchase of excess capital stock.

The current Board-approved floor for the MV/CS ratio is 90.0%. The MV/CS ratio is measured against the floor monthly. When the MV/CS ratio is below the established floor, excess capital stock repurchases and dividend payouts are restricted. The MV/CS ratio was 198.7% at December 31, 2025 and 157.2% at December 31, 2024. The increase was primarily due to decrease in capital stock outstanding following the Bank's repurchases of excess stock, which excesses resulted from decreases in advance balances.

***Subprime and Nontraditional Loan Exposure.*** The Bank policy definitions of subprime and nontraditional residential mortgage loans and securities are consistent with FFIEC and Finance Agency guidance. According to policy, the Bank does not accept subprime residential mortgage loans (defined as FICO score of 660 or below) as qualifying collateral unless certain mitigating factors are met. The Bank requires members to identify the amount of subprime and nontraditional mortgage collateral in their QCR each quarter and provide periodic certification that they comply with the FFIEC guidance. See the Credit and Counterparty Risk - TCE and Collateral discussion in Risk Management in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for specific requirements regarding subprime and nontraditional loan collateral.

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**Qualitative and Quantitative Disclosures Regarding Market Risk**

***Managing Market Risk*.** The Bank's market risk management objective is to protect member/shareholder and bondholder value consistent with the Bank's housing mission and safe and sound operations across a wide range of interest rate environments. Management believes that a disciplined approach to market risk management is essential to maintaining a strong capital base and uninterrupted access to the capital markets.

Market risk is defined as the risk to earnings or capital arising from adverse changes in market rates, prices and other relevant market factors. Interest rate risk, which represents the primary market risk exposure to the Bank, is the risk that relative and absolute changes in prevailing interest rates may adversely affect an institution's financial performance or condition. Interest rate risk arises from a variety of sources, including repricing risk, yield curve risk, basis risk and options risk. The Bank invests in mortgage assets, such as mortgage loans and MBS, which together represent the primary source of options risk. Management regularly reviews the estimated market risk of the entire portfolio of assets and related funding and hedges to assess the need for re-balancing strategies. These re-balancing strategies may include entering into new funding and hedging transactions, terminating existing funding and hedging transactions, or forgoing or modifying certain funding or hedging transactions normally executed with asset acquisition or debt issuance.

***The Bank's Market Risk Model.*** Significant resources are devoted to ensuring that the level of market risk in the balance sheet is accurately measured, thus allowing management to monitor the risk against policy and regulatory limits. The Bank uses externally developed models to evaluate its financial position and market risk. One of the most critical market-based models relates to the prepayment of principal on mortgage-related instruments. Management regularly reviews the major assumptions and methodologies used in its models, as well as the performance of the models relative to empirical results, so that appropriate changes to the models can be made. Economic conditions, such as market liquidity and Federal Reserve actions to adjust short-term interest rates, may impact the performance of the Bank's models used to measure market risk. Management considers the impact of current economic conditions on key market risk measures and makes changes as deemed appropriate.

The Bank regularly validates the models used to measure market risk. Such model validations are performed by the Bank's model risk management department, which is separate from the model owner. The model validations are supplemented by performance monitoring by the model owner which is reported to the Bank's model risk management department. In addition, the Bank benchmarks model-derived fair values to those provided by third-party services or alternative internal valuation models. The benchmarking analysis is performed by a group that is separate from the model owner. Results of the model validations and benchmarking analysis, as well as any changes to the valuation methodologies and inputs, are reported to the Bank's ALCO (or subcommittee of), which is responsible for overseeing market risk.

***Duration of Equity.*** One key risk metric used by the Bank is duration. Duration is a measure of the sensitivity of a financial instrument's value, or the value of a portfolio of instruments, to a 100 basis point parallel shift in interest rates. Duration (typically expressed in years) is commonly used by investors throughout the fixed income securities market as a measure of financial instrument price sensitivity.

The Bank's asset/liability management policy approved by the Board calls for actual duration of equity to be maintained within a <u>+</u> 4.5 year range in the base case. In addition, the duration of equity exposure limit in an instantaneous parallel interest rate shock of <u>+</u> 200 basis points is <u>+</u> 7 years. Management analyzes the duration of equity exposure against this policy limit on a daily basis and regularly evaluates its market risk management strategies.

The following table presents the Bank's duration of equity exposure at December 31, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in years) | Down 200 basis points | Down 100 basis points | Base<br>Case | Up 100<br>basis points | Up 200<br>basis points |
| Duration of Equity: |  |  |  |  |  |
| December 31, 2025 | **0.3** | **1.1** | **1.7** | **2.1** | **2.7** |
| December 31, 2024 | 0.7 | 1.2 | 1.4 | 1.8 | 2.3 |

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&nbsp;&nbsp;&nbsp;&nbsp;The duration of equity changes in the down scenarios at December 31, 2025 were primarily driven by the decrease in interest rates, whereas the duration of equity changes in the base and up scenarios were due to the declines in capital stock as a result of lower advances. The Bank regularly monitors the mortgage and related fixed-income markets, including the impact that changes in the market or anticipated modeling changes may have on duration of equity and other market risk measures and may take actions to reduce market risk exposures as needed.

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***Return on Equity (ROE) Spread Volatility***. Interest rate risk is also measured based on the volatility in the Bank's projected return on capital in excess of the return of an established benchmark market index. ROE spread is defined as the Bank's return on average equity, including capital stock and retained earnings, in excess of the average of the projected Federal funds rate.

ROE spread volatility is a measure of the variability of the Bank's projected ROE spread in response to shifts in interest rates and represents the change in ROE spread compared to an ROE spread that is generated by the Bank in its base forecasting scenario. ROE spread volatility is measured over a rolling forward 12 month period for selected interest rate scenarios and excludes the income sensitivity resulting from mark-to-market changes, which are separately described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management uses both parallel and non-parallel rate scenarios to assess interest rate risk. The steeper and flatter yield curve shift scenarios are represented by appropriate increases and decreases in short-term and long-term interest rates using the three-year point on the yield curve as the pivot point.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ROE Spread Volatility Increase/(Decline) | ROE Spread Volatility Increase/(Decline) | ROE Spread Volatility Increase/(Decline) | ROE Spread Volatility Increase/(Decline) | ROE Spread Volatility Increase/(Decline) | ROE Spread Volatility Increase/(Decline) |
| (in basis points) | Down 200 bps Parallel Shock | Down 100 bps Longer Term Rate Shock | 100 bps Steeper | 100 bps Flatter | Up 200 bps Parallel Shock |
| December 31, 2025 | **47** | **2** | **48** | **(3)** | **(12)** |
| December 31, 2024 | 21 | (1) | 10 | 3 | (2) |

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&nbsp;&nbsp;&nbsp;&nbsp;The changes in ROE spread volatility in 2025 as compared to the prior year-end mostly reflect lower fixed rate liability exposure. For each scenario, the Board's limit on the decline in ROE spread is set at no greater than 100 basis points. The Bank was in compliance with the ROE spread volatility limit across all selected interest rate shock scenarios at December 31, 2025 and December 31, 2024.

***&nbsp;&nbsp;&nbsp;&nbsp;Mark-to-Market Risk.*** The Bank measures earnings risk associated with certain mark-to-market positions, including economic hedges. This framework measures forward-looking, scenario-based exposure based on interest rate and volatility shocks that are applied to any existing transaction that is marked to market through the income statement without an offsetting mark arising from a qualifying hedging relationship. In addition, the Bank's Capital Markets and Corporate Risk Management departments monitor the actual profit/loss change on a daily, monthly cumulative, and quarterly cumulative basis. The Bank's ALCO monitors mark-to-market risk through a daily exposure guideline and quarterly profit/loss reporting trigger.

***Derivatives and Hedging Activities.*** Members may obtain loans through a variety of product types that include features such as variable- and fixed-rate coupons, overnight to 30-year maturities, and bullet or amortizing redemption schedules. The Bank funds loans primarily through the issuance of consolidated obligation bonds and discount notes. The terms and amounts of these consolidated obligations and the timing of their issuance is determined by the Bank and is subject to investor demand as well as FHLBank System debt issuance policies. The intermediation of the timing, structure, and amount of Bank members' credit needs with the investment requirements of the Bank's creditors is made possible by the extensive use of interest rate derivatives. The Bank's general practice is to simultaneously execute interest rate swaps or other derivative transactions when extending term and option-embedded advances and/or issuing liabilities to convert the instruments' cash flows to a floating-rate that is indexed to OIS or SOFR. By doing so, the Bank strives to reduce its interest rate risk exposure and preserve the value of, and attempts to earn more stable returns on, its members' capital investment.

The Bank may also acquire assets with structural characteristics that reduce the Bank's ability to enter into interest rate exchange agreements having mirror image terms. These assets can include small fixed-rate, fixed-term loans and small fixed schedule amortizing loans. These assets may require the Bank to employ risk management strategies in which the Bank hedges the aggregated risks. The Bank may use fixed-rate, callable or non-callable debt or interest rate swaps to manage these aggregated risks.

The use of derivatives is integral to the Bank's financial management strategy, and their impact on the Bank's financial statements is significant. Management has a risk management framework that outlines the permitted uses of derivatives that adjusts the effective maturity, repricing frequency or option characteristics of various financial instruments to achieve the Bank's risk and earnings objectives. The Bank utilizes derivatives to hedge identifiable risks; none are used for speculative purposes.

The Bank uses derivatives as follows: (1) by designating them as either a fair value hedge of an underlying financial instrument or a firm commitment; or (2) in asset/liability management (i.e., an economic hedge). For example, the Bank uses derivatives in its overall interest rate risk management to adjust the interest rate sensitivity of consolidated obligations to approximate more closely the interest rate sensitivity of assets (advances, investment securities, and mortgage loans), and/or to

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adjust the interest rate sensitivity of advances, investment securities, or mortgage loans to approximate more closely the interest rate sensitivity of liabilities. In addition to using derivatives to hedge mismatches of interest rates between assets and liabilities, the Bank also uses derivatives to hedge: (1) embedded options in assets and liabilities; (2) the market value of existing assets and liabilities and anticipated transactions; or (3) the duration risk of prepayable instruments. See Note 7 - Derivatives and Hedging Activities in Item 8. Financial Statements and Supplementary Data in this Form 10-K for additional information regarding the Bank's derivative and hedging activities.

The following tables summarize the derivative instruments, along with the specific hedge transaction utilized to manage various interest rate and other risks as noted below.

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| | | | | |
|:---|:---|:---|:---|:---|
| Hedged Item/Hedging Instrument | Hedging Objective | Hedge Accounting Designation <sup>(1)</sup> | Notional Amount at December 31, 2025<br>(in billions) | Notional Amount at December 31, 2024<br>(in billions) |
| **Advances** |  |  |  |  |
| Pay-fixed, receive floating interest rate swap (without options) | Converts the advance's fixed rate to a variable rate index. | Fair Value | $**12.1** | $13.8 |
| Pay-fixed, receive floating interest rate swap (without options) | Converts the advance's fixed rate to a variable rate index. | Economic | **0.4** | 0.8 |
| Pay-fixed, receive float interest rate swap (with options) | Converts the advance's fixed rate to a variable rate index and offsets option risk in the advance. | Fair Value | **—** |  |
| Subtotal-advances |  |  | $**12.5** | $14.6 |
| **Investments** |  |  |  |  |
| Pay-fixed, receive floating interest-rate swap | Converts the investment's fixed rate to a variable-rate index. | Fair Value | $**9.9** | $9.0 |
| Pay-fixed, receive floating interest-rate swap | Converts the investment's fixed rate to a variable-rate index. | Economic | **0.5** | 0.6 |
| Interest-rate cap or floor | Offsets the interest-rate cap or floor embedded in a variable rate investment. | Economic | **2.6** | 2.2 |
| Subtotal - investments |  |  | $**13.0** | $11.8 |
| **Mortgage Loans** |  |  |  |  |
| Pay-fixed, receive floating interest rate swap | Converts the mortgage loan's fixed rate to a variable rate index. | Economic | $**0.5** | $0.3 |
| **Consolidated Obligation Bonds** |  |  |  |  |
| Receive-fixed, pay floating interest rate swap (without options) | Converts the bond's fixed rate to a variable rate index. | Fair Value | $**2.2** | $3.1 |
| Receive-fixed, pay floating interest rate swap (without options) | Converts the bond's fixed rate to a variable rate index. | Economic | **0.2** | 0.4 |
| Receive-fixed, pay floating interest rate swap (with options) | Converts the bond's fixed rate to a variable rate index and offsets option risk in the bond. | Fair Value | **14.5** | 14.8 |
| Receive-fixed, pay floating interest rate swap (with options) | Converts the bond's fixed rate to a variable rate index and offsets option risk in the bond. | Economic | **4.2** | 0.6 |
| Subtotal - consolidated obligation bonds |  |  | $**21.1** | $18.9 |
| **Consolidated Obligation Discount Notes** | **Consolidated Obligation Discount Notes** |  |  |  |
| Receive-fixed, pay floating interest rate swap | Converts the discount note's fixed rate to a variable-rate index. | Fair Value | $**14.9** | $4.7 |
| Receive-fixed, pay floating interest rate swap | Converts the discount note's fixed rate to a variable-rate index. | Economic | **0.2** |  |
| Subtotal - consolidated obligation discount notes |  |  | $**15.1** | $4.7 |
| Total notional amount |  |  | $**62.2** | $50.3 |

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*<u>Note:</u>*

<sup>(1)</sup> The Fair Value designation represents hedging strategies for which qualifying hedge accounting is achieved. The Economic designation represents hedging strategies for which qualifying hedge accounting is not achieved.

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**Credit and Counterparty Risk - Total Credit Exposure (TCE) and Collateral**

***TCE.*** The Bank manages the credit risk of each member on the basis of the member's total credit exposure (TCE) to the Bank, which includes advances and related accrued interest, fees, basis adjustments and estimated prepayment fees; letters of credit; forward-dated advance commitments; and MPF credit enhancement and related obligations. This credit risk is managed by monitoring the financial condition of borrowers and by requiring all borrowers (and, where applicable in connection with member affiliate pledge arrangements approved by the Bank, their affiliates) to pledge sufficient eligible collateral for all borrower obligations to the Bank as the Bank seeks to cover all potential forms of credit-related exposure with sufficient eligible collateral. At December 31, 2025, aggregate TCE was $67.0 billion, comprised of approximately $36.8 billion in advance principal outstanding, $29.8 billion in letters of credit (including forward commitments) and $0.4 billion in accrued interest, prepayment fees, MPF credit enhancement obligations and other fees.

The Bank establishes a maximum borrowing capacity (MBC) for each member based on collateral weightings applied to eligible collateral as described in the Bank's Member Products Policy. MBC is limited to a percentage of the members' assets based on the institution size and type subject to a maximum prudential lending limit. According to the policy, eligible collateral is weighted so that the collateral value is likely to exceed the amount that may be owed to the Bank in the event of a default. The Bank also has the ability to call for additional or substitute collateral while any indebtedness is outstanding to protect the Bank's secured position. At December 31, 2025 and December 31, 2024, on a borrower-by-borrower basis, the Bank had a perfected security interest in eligible collateral with an estimated collateral value (after collateral weightings) in excess of the book value of all members' and nonmember housing associates' obligations to the Bank.

As part of the assessment of member creditworthiness, the Bank regularly monitors banking system and financial markets for signs of stress, considers events and conditions impacting a member individually or members generally and utilizes qualitative overrides to model internal credit ratings, as appropriate.

The financial condition of all members and eligible non-member housing associates is closely monitored for compliance with financial criteria as set forth in the Bank's credit policies. The Bank has developed an internal credit rating (ICR) system that calculates financial scores and rates member institutions on a quarterly basis using a numerical rating scale from one to ten, with one being the best rating. The Bank's determination of rating is derived using a holistic credit analysis which incorporates quantitative and qualitative factors. A quantitative scoring system uses financial ratios computed from publicly available data. The scoring system gives the highest weighting to the member's asset quality and capitalization. Other key factors include earnings, liquidity, and balance sheet composition. Operating results which include net income, liquidity levels and liquidity composition, capital levels, reserve coverage and other factors for the previous four quarters are used. The most recent quarter's results are given a higher weighting. Qualitative factors, such as unique business models or characteristics, recent events, and/or regulatory ratings are also considered in determining the ICR. A higher number (i.e., worse) rating indicates that a member exhibits well defined financial weaknesses. Members in these categories are reviewed for potential change to their collateral delivery status, advance tenor restrictions, and potential limitations on access to Bank products. Other uses of the ICR include the scheduling of on-site collateral verification reviews. Insurance company members are also rated on a ten-point scale with the rating based on both quantitative and qualitative factors. While depository institution member analysis uses standardized regulatory call report data and risk modeling, along with qualitative analysis, insurance company credit risk analysis is based on various forms of financial data, including, but not limited to, statutory reporting filed by insurance companies with state insurance regulators, which requires specialized methodologies and dedicated underwriting resources.

As noted above, the Bank monitors member credit quality on a regular basis. Management believes that it has adequate policies and procedures in place to effectively manage credit risk exposure related to member TCE. These credit and collateral policies are intended to balance the Bank's goals of being a reliable source of liquidity for members while employing appropriate credit and collateral terms for members with deteriorating creditworthiness to mitigate the risk of loss due to member credit exposure. The Bank has never experienced a loss on its advance exposure.

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The following table presents the Bank's top five financial entities by their TCE at December 31, 2025.

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| | | |
|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 |
| (dollars in millions) | TCE | % of Total |
| TD Bank U.S. Holding Company <sup>(1)</sup> | $**17133.5** | **25.6%** |
| PNC Bank, National Association, DE <sup>(2)</sup> | **13463.2** | **20.1** |
| Ally Bank, UT <sup>(3)</sup> | **8373.6** | **12.5** |
| Fulton Bank, N.A. | **4458.5** | **6.7** |
| Customers Bank | **3152.0** | **4.7** |
|  | $**46580.8** | **69.6%** |
| Other financial institutions | **20461.2** | **30.4** |
| Total TCE outstanding | $**67042.0** | **100.0%** |

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*<u>Notes</u>:*

<sup>(1)</sup> Member affiliates aggregated at the U.S. holding company level.

<sup>(2)</sup> For Bank membership purposes, principal place of business is Pittsburgh, PA.

<sup>(3)</sup> For Bank membership purposes, principal place of business is Horsham, PA.

***Advance Concentration Risk.*** The following table lists the Bank's top five borrowers based on advances at par as of December 31, 2025.

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| | | |
|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 |
| (dollars in millions) | Advance Balance | % of Total |
| PNC Bank, National Association, DE <sup>(1)</sup> | $**13000.0** | **35.3%** |
| Ally Bank, UT <sup>(2)</sup> | **8350.0** | **22.7** |
| First National Bank of Pennsylvania | **2155.0** | **5.8** |
| Customers Bank | **1320.0** | **3.6** |
| WesBanco Bank, Inc | **1200.0** | **3.2** |
|  | $**26025.0** | **70.6%** |
| Other borrowers | **10818.7** | **29.4** |
| Total advances | $**36843.7** | **100.0%** |

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*<u>Notes</u>:*

<sup>(1)</sup> For Bank membership purposes, principal place of business is Pittsburgh, PA.

<sup>(2)</sup> For Bank membership purposes, principal place of business is Horsham, PA.

&nbsp;&nbsp;&nbsp;&nbsp;***Letters of Credit.*** The letter of credit product is collateralized under the same policies, procedures and guidelines that apply to advances. Outstanding letters of credit totaled $27.5 billion at December 31, 2025 and $29.6 billion at December 31, 2024, primarily related to public unit deposits. Not included in these totals are additional authorized but unused standby letters of credit of $2.3 billion at December 31, 2025 and $2.2 billion at December 31, 2024. The Bank had a concentration of letters of credit with two members, TD Bank N.A. of $15.8 billion or 57.4% and Fulton Bank of $3.4 billion or 12.4% of the total at December 31, 2025 and two members, TD Bank N.A. of $18.8 billion or 64% and Fulton Bank of $3.5 billion or 11.8% of the total at December 31, 2024.

***Collateral Policies and Practices.*** All members are required to maintain eligible collateral to secure their TCE in accordance with the Member Products Policy. The Bank periodically reviews the collateral pledged by members or affiliates, where applicable. Additionally, the Bank conducts periodic collateral verification reviews to ensure the eligibility, adequacy and sufficiency of the collateral pledged. The Bank may, in its discretion, require the delivery of loan collateral at any time.

The Bank reviews and assigns borrowing capacities based on this collateral, taking into account the known credit attributes in assigning the appropriate secondary market discounts to determine that a member's TCE is fully collateralized. Other factors that the Bank may consider in calculating a member's MBC include the collateral status for loans, frequency of loan data reporting, collateral field review results, the member's financial strength and condition, and the concentration of collateral type by member.

The Bank uses a QCR process that is intended to provide timely, detailed collateral information. Depending on a member's credit product usage and financial condition, a member may be required to file the QCR on a quarterly or monthly basis. The

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QCR is intended to strengthen the Bank's collateral analytical review procedures. The output of the QCR is a member's loan-based MBC. For the small number of members who opt out of QCR filing, MBC is calculated by the Bank, based on the member's regulatory filing data. For such members, final MBC is established at 20% of the aggregate weighted collateral value. Such members are required to file an Annual Collateral Certification Report.

At December 31, 2025, less than 10% of the Bank's total pledged collateral was considered to be nontraditional, subprime and low FICO mortgage loans.

The Bank is allowed by regulation to expand eligible collateral for many of its members. Members that qualify as CFIs can pledge expanded collateral which includes small-business, small-farm, small-agribusiness and community development loans as collateral for credit products from the Bank. At December 31, 2025, loans to CFIs secured with both eligible standard and expanded collateral represented approximately $2.6 billion, or 6.9% of total par value of loans outstanding. Eligible expanded collateral represented 5.3% of total eligible collateral for these loans. However, these loans were collateralized by sufficient levels of standard collateral.

***Collateral Agreements and Valuation.*** The Bank provides members with two types of collateral agreements: a blanket lien collateral pledge agreement and a specific collateral pledge agreement. Under a blanket lien agreement, the Bank obtains a lien against all of the member's unencumbered eligible collateral assets and most ineligible assets to secure the member's obligations with the Bank. Under a specific collateral pledge agreement, the Bank obtains a lien against specific eligible collateral assets of the member or its affiliate (if applicable) to secure the member's obligations with the Bank. The member provides a detailed listing, as an addendum to the specific collateral agreement, identifying those assets pledged as collateral or delivered to the Bank or its third-party custodian.

High quality investment securities are defined as U.S. Treasury and U.S. Agency securities, REFCORP bonds, GSE MBS, commercial and residential private label MBS with a minimum credit rating of single A-minus, which the Bank considers as part of its evaluation of the collateral. In addition, municipal securities (or portions thereof) with a real estate nexus (e.g. proceeds primarily used for real estate development) with a minimum credit rating of single A-minus are included. Members have the option to deliver such high quality investment securities to the Bank to increase their maximum borrowing capacity. Upon delivery, these securities are valued daily and all non-government or agency securities are subject to weekly ratings reviews. The reported amount also includes cash that the member has pledged to the Bank for collateral purposes.

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The following tables present information regarding the type of collateral securing credit exposure and the collateral status as of December 31, 2025 and December 31, 2024.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (dollars in millions) | Blanket Lien | Blanket Lien | Listing | Listing | Delivery | Delivery | Total | Total |
| (dollars in millions) | Amount | % | Amount | % | Amount | % | Amount | % |
| One-to-four single-family<br> residential mortgage loans | $**108934.1** | **44.9%** | $**1067.4** | **9.7%** | $**6.7** | **4.3%** | $**110008.2** | **43.4%** |
| High quality investment securities | **12048.6** | **5.0** | **5580.6** | **50.7** | **150.6** | **95.7** | **17779.8** | **7.0** |
| Other real estate-related collateral (ORERC)/CFI eligible collateral | **94788.0** | **39.1** | **2266.6** | **20.6** | **—** | **—** | **97054.6** | **38.3** |
| Multi-family residential mortgage<br> loans | **26620.9** | **11.0** | **2094.9** | **19.0** | **—** | **—** | **28715.8** | **11.3** |
| Total eligible collateral value | $**242391.6** | **100.0%** | $**11009.5** | **100.0%** | $**157.3** | **100.0%** | $**253558.4** | **100.0%** |
| Total TCE | $**61804.5** | **92.2%** | $**5152.6** | **7.7%** | $**84.9** | **0.1%** | $**67042.0** | **100.0%** |
| Number of members | **142** | **83.5%** | **22** | **13.0%** | **6** | **3.5%** | **170** | **100.0%** |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (dollars in millions) | Blanket Lien | Blanket Lien | Listing | Listing | Delivery | Delivery | Total | Total |
| (dollars in millions) | Amount | % | Amount | % | Amount | % | Amount | % |
| One-to-four single-family <br> residential mortgage loans | $117486.5 | 45.0% | $661.5 | 15.5% | $0.4 | 0.3% | $118148.4 | 44.5% |
| High quality investment securities | 16498.1 | 6.3 | 2775.9 | 65.0 | 158.3 | 99.6 | 19432.3 | 7.3 |
| ORERC/ CFI eligible collateral | 98112.5 | 37.5 | 792.3 | 18.6 | 0.2 | 0.1 | 98905.0 | 37.2 |
| Multi-family residential mortgage<br> loans | 29226.2 | 11.2 | 40.3 | 0.9 |  |  | 29266.5 | 11.0 |
| Total eligible collateral value | $261323.3 | 100.0% | $4270.0 | 100.0% | $158.9 | 100.0% | $265752.2 | 100.0% |
| Total TCE | $100922.4 | 98.4% | $1608.4 | 1.6% | $69.0 | —% | $102599.8 | 100.0% |
| Number of members | 161 | 85.6% | 21 | 11.2% | 6 | 3.2% | 188 | 100.0% |

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**Credit and Counterparty Risk - Investments**

The Bank is also subject to credit risk on investments consisting of money market investments and investment securities. The Bank considers a variety of credit quality factors when analyzing potential investments, including collateral performance, marketability, asset class or sector considerations, local and regional economic conditions, nationally recognized statistical organization (NRSRO) credit ratings, and/or the financial health of the underlying issuer.

***Investment Quality and External Credit Ratings.*** The following tables present the Bank's investment carrying values as of December 31, 2025 and December 31, 2024 based on the lowest credit rating from the NRSROs (Moody's, S&P and Fitch).

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  | December 31, 2025 <sup>(1)</sup>  |
| | Long-Term Rating | Long-Term Rating | Long-Term Rating | Long-Term Rating | Long-Term Rating | | |
| (in millions) | AAA | AA | A | BBB | Below Investment Grade | Unrated | Total |
| <u>Money market investments:</u> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | $**—** | $**549.0** | $**1854.3** | $**—** | $**—** | $**—** | $**2403.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | **—** | **—** | **2680.0** | **—** | **—** | **—** | **2680.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | **—** | **3302.0** | **2675.0** | **—** | **—** | **—** | **5977.0** |
| Total money market investments | $**—** | $**3851.0** | $**7209.3** | $**—** | $**—** | $**—** | $**11060.3** |
| <u>Investment securities:</u> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**—** | $**4912.3** | $**—** | $**—** | $**—** | $**—** | $**4912.3** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations | **—** | **953.7** | **—** | **—** | **—** | **—** | **953.7** |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local agency obligations | $**13.1** | $**161.7** | $**—** | $**—** | $**—** | $**—** | $**174.8** |
| Total non-MBS | $**13.1** | $**6027.7** | $**—** | $**—** | $**—** | $**—** | $**6040.8** |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family MBS | $**—** | $**1774.0** | $**—** | $**—** | $**—** | $**—** | $**1774.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family MBS | **—** | **4953.0** | **—** | **—** | **—** | **—** | **4953.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily MBS | **—** | **6553.2** | **—** | **—** | **—** | **—** | **6553.2** |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label MBS | $**3.3** | $**2.6** | $**5.2** | $**0.5** | $**27.7** | $**92.4** | $**131.7** |
| Total MBS | $**3.3** | $**13282.8** | $**5.2** | $**0.5** | $**27.7** | $**92.4** | $**13411.9** |
| Total investments | $**16.4** | $**23161.5** | $**7214.5** | $**0.5** | $**27.7** | $**92.4** | $**30513.0** |

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*<u>Note:</u>*

<sup>(1)</sup> Balances exclude $5.6 million of interest-bearing deposits with FHLBank of Chicago at December 31, 2025, and total accrued interest of $69.6 million at December 31, 2025.

The Bank also manages its investments' credit risks based on an internal credit rating system. For purposes of determining the internal credit rating, the Bank measures credit exposure through a process which includes internal credit review and various external factors, including NRSRO analysis. The Bank does not rely solely on any NRSRO rating in deriving its final internal credit rating.

***Short-term Investments.*** Within the portfolio of short-term investments, the Bank faces credit risk from unsecured exposures. The Bank's unsecured investments have maturities generally ranging between overnight and six months and may include the following types:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Interest-bearing deposits.* Primarily consists of unsecured deposits that earn interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Federal funds sold.* Unsecured loans of reserve balances at the Federal Reserve Banks between financial institutions that are made on an overnight and term basis.

Under the Bank's Risk Governance Policy, the Bank can place money market investments, which include those investment types listed above, on an unsecured basis with large financial institutions with long-term credit ratings no lower than BBB. Management actively monitors the credit quality of these counterparties. The Bank also invests in securities purchased under agreements to resell which are secured investments.

&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2025, the Bank had unsecured exposure to 16 counterparties totaling $8.4 billion with one counterparty exceeding 10% of the total exposure. The following table presents the Banks' unsecured credit exposure with non-

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governmental counterparties by investment type at December 31, 2025 and December 31, 2024. The unsecured investment credit exposure presented may not reflect the average or maximum exposure during the period.

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| | |
|:---|:---|
| (in millions) |  |
| Carrying Value | December 31, 2025 |
| Interest-bearing deposits <sup>(1)</sup> | $**2403.3** |
| Federal funds sold | **5977.0** |
| Total | $**8380.3** |

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*<u>Note:</u>*

<sup>(1)</sup> Excludes $5.6 million of Interest-bearing deposits with FHLBank of Chicago at December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2025, 55.0% of the Bank's unsecured investment credit exposures were to U.S. branches and agency offices of foreign commercial banks. The Bank actively monitors its credit exposures and the credit quality of its 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, the Bank may limit or suspend existing counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;Finance Agency regulations include limits on the amount of unsecured credit the Bank may extend to a counterparty or to a group of affiliated counterparties. This limit is based on a percentage of eligible regulatory capital and the counterparty's overall internal credit rating. Under these regulations, the level of eligible regulatory capital is determined as the lesser of the Bank's total regulatory capital or the eligible amount of regulatory capital of the counterparty. The eligible amount of regulatory capital is then multiplied by a stated percentage. This percentage is 1% to 15% and is based on the counterparty's internal credit rating. The calculation of term extensions of unsecured credit includes on-balance sheet transactions, off-balance sheet commitments, and derivative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;Finance Agency regulation also permits the Bank to extend additional unsecured credit for overnight transactions and for sales of Federal funds subject to continuing contracts that renew automatically. For overnight exposures only, the Bank's total unsecured exposure to a counterparty may not exceed twice the applicable regulatory limit, or a total of 2% to 30% of the eligible amount of regulatory capital, based on the counterparty's internal credit rating. As of December 31, 2025, the Bank was in compliance with the regulatory limits established for unsecured credit.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank's unsecured credit exposures to U.S. branches and agency offices of foreign commercial banks include the risk that, as a result of political or economic conditions in a country, the counterparty may be unable to meet their contractual repayment obligations. The Bank's unsecured credit exposures to domestic counterparties and U.S. subsidiaries of foreign commercial banks include the risk that these counterparties have extended credit to foreign counterparties.

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The following table presents the long-term credit ratings of the unsecured investment credit exposures by the domicile of the counterparty or the domicile of the counterparty's immediate parent for U.S. subsidiaries or branches and agency offices of foreign commercial banks based on the NRSROs used. This table does not reflect the foreign sovereign government's credit rating.

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| | | | |
|:---|:---|:---|:---|
| (in millions) |  |  |  |
| December 31, 2025 <sup>(1) (2)</sup> | December 31, 2025 <sup>(1) (2)</sup> | December 31, 2025 <sup>(1) (2)</sup> | December 31, 2025 <sup>(1) (2)</sup> |
|  | Carrying Value | Carrying Value |  |
| Domicile of Counterparty | Investment Grade <sup>(3)</sup> <sup>(4)</sup> | Investment Grade <sup>(3)</sup> <sup>(4)</sup> |  |
|  | AA | A | Total |
| Domestic | $**1201.0** | $**2579.3** | $**3780.3** |
| U.S. branches and agency offices of foreign commercial banks: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Australia | **725.0** | **—** | **725.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | **1100.0** | **1450.0** | **2550.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Finland | **625.0** | **—** | **625.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;France | **—** | **150.0** | **150.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Germany | **200.0** | **—** | **200.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Netherlands | **—** | **350.0** | **350.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. branches and agency offices of foreign commercial banks | **2650.0** | **1950.0** | **4600.0** |
| Total unsecured investment credit exposure | $**3851.0** | $**4529.3** | $**8380.3** |

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*<u>Notes:</u>*

<sup>(1)</sup> Ratings are as of the respective dates.

<sup>(2)</sup> These ratings represent the lowest rating available for each security owned by the Bank based on the NRSROs used by the Bank. The Bank's internal ratings may differ from those obtained from the NRSROs.

<sup>(3)</sup> Excludes unsecured investment credit exposure to U.S. government, U.S. government agencies and instrumentalities, GSEs, and supranational entities.

<sup>(4)</sup> Represents the NRSRO rating of the counterparty not the country. There were no AAA rated investments at December 31, 2025.

The following table presents the remaining contractual maturity of the Bank's unsecured investment credit exposure by the domicile of the counterparty or the domicile of the counterparty's parent for U.S. subsidiaries or branches and agency offices of foreign commercial banks. The Bank also mitigates the credit risk on investments by generally investing in investments that have short-term maturities.

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| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) |  |  |  |  |
| December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value |
| Domicile of Counterparty | Overnight | Due 2 days through 30 days | Due 31 days through 90 days | Total |
| Domestic | $**3780.3** | $**—** | $**—** | $**3780.3** |
| U.S. branches and agency offices of foreign commercial banks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Australia | **725.0** | **—** | **—** | **725.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | **2550.0** | **—** | **—** | **2550.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Finland | **625.0** | **—** | **—** | **625.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;France | **150.0** | **—** | **—** | **150.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Germany | **200.0** | **—** | **—** | **200.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Netherlands | **350.0** | **—** | **—** | **350.0** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. branches and agency offices of foreign commercial banks | **4600.0** | **—** | **—** | **4600.0** |
| Total unsecured investment credit exposure | $**8380.3** | $**—** | $**—** | $**8380.3** |

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***U.S. Treasury Obligations.*** The Bank invests in U.S. Treasury obligations that are explicitly fully guaranteed by the U.S. government. This portfolio totaled $4.9 billion at December 31, 2025 and $4.1 billion at December 31, 2024.

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***Agency/GSE Securities and Agency/GSE MBS.*** The Bank invests in and is subject to credit risk related to securities issued by Federal Agencies or U.S. government corporations. In addition, the Bank invests in MBS issued by these same entities that are directly supported by underlying mortgage loans. Both the securities and MBS are either explicitly or implicitly guaranteed by the U.S. government. These portfolios totaled $14.2 billion at December 31, 2025 and $15.2 billion at December 31, 2024.

***State and Local Agency Obligations.*** The Bank invests in and is subject to credit risk related to a portfolio of state and local agency obligations (i.e., Housing Finance Agency bonds) that are directly or indirectly supported by underlying mortgage loans. These portfolios totaled $174.8 million at December 31, 2025 and $169.3 million at December 31, 2024.

***Private Label MBS.*** The Bank also holds investments in private label MBS, which are supported by underlying mortgage loans. The Bank made investments in private label MBS that were rated AAA at the time of purchase with the exception of one, which was rated AA. However, since the time of purchase, there have been significant ratings downgrades. In 2007, the Bank discontinued the purchase of private label MBS. The carrying value of the Bank's private label MBS portfolio was $131.7 million at December 31, 2025 and $150.0 million at December 31, 2024.

*Credit Losses.* The Bank evaluates its private label MBS for expected credit losses quarterly. There was no ACL recorded on HTM private label MBS. With respect to AFS private label MBS, the Bank had an ACL of $16.7 million at December 31, 2025 and $14.2 million as of December 31, 2024. For additional information on the Bank's ACL on AFS private label MBS, see Note 4 - Investments in Item 8. Financial Statements and Supplementary Data in this Form 10-K.

For those AFS private label MBS with a credit loss previously recorded, when the Bank projects an increase in cash flows during its quarterly assessment of expected credit losses, the Bank will first reverse the ACL by recognizing a reversal for credit losses up to the amount of the ACL, if any. If the Bank projects a significant increase in cash flows, the Bank adjusts the accretable yield prospectively and recognizes the interest income over the remaining lives of the securities. The amount recognized in interest income on these securities was $6.8 million, $8.6 million and $9.4 million for 2025, 2024 and 2023, respectively.

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**Credit and Counterparty Risk - Mortgage Loans and Derivatives**

***Mortgage Loans.*** The Finance Agency has authorized the Bank to hold mortgage loans under the MPF Program whereby the Bank acquires mortgage loans from participating members in a shared credit risk structure. Conventional mortgage loans carry CE requirements such that the Bank has a high degree of confidence that it will be paid principal and interest in all material respects, even under reasonably likely adverse changes to expected economic conditions. Loans are assessed by a third-party credit model at acquisition, and a CE requirement is calculated based on loan attributes and the Bank's risk tolerance with respect to its MPF portfolio.

The Bank had net mortgage loans held for portfolio of $5.2 billion and $4.8 billion at December 31, 2025 and December 31, 2024, respectively, after an allowance for credit losses of $2.5 million and $2.4 million, respectively. The Bank maintains portfolio level limits and thresholds to monitor and control certain MPF portfolio characteristics including, but not limited to, geographic concentrations, aggregate portfolio size and pricing attributes, and exposures from any single PFI.

The table below presents additional statistics of the MPF portfolio including par value balances by product type.

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in millions) | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| (dollars in millions) | Balance | % of Total | Balance | % of Total |
| <u>Conventional loans:</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MPF 35 | $**3095.2** | **59.8%** | $2728.8 | 57.2% |
| &nbsp;&nbsp;&nbsp;&nbsp; MPF Original | **1915.1** | **37.0** | 1849.3 | 38.8 |
| &nbsp;&nbsp;&nbsp;&nbsp; MPF Plus | **80.7** | **1.6** | 99.2 | 2.1 |
| Total conventional loans | $**5091.0** | **98.4%** | $4677.3 | 98.1% |
| <u>Government-insured loans:</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MPF Government | **84.2** | **1.6** | 92.3 | 1.9 |
| Total par value | $**5175.2** | **100.0%** | $4769.6 | 100.0% |

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| | | |
|:---|:---|:---|
| (dollars in millions) | 2025 | 2024 |
| Mortgage loans interest income | $**197.3** | $168.6 |
| Average mortgage loans portfolio balance | $**5056.8** | $4748.7 |
| Average yield | **3.90%** | 3.55% |
| Weighted average coupon (WAC) | **4.48%** | 4.13% |
| Weighted average estimated life (WAL) | **8.4 years** | 8.0 years |

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The data in the FICO and LTV ratio range below are based on unpaid principal balance for the loans remaining in the portfolio at December 31, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| FICO score at origination | December 31, 2025 | December 31, 2024 | Original LTV Ratio Range | December 31, 2025 | December 31, 2024 |
| ≥ 740  | **60.5%** | 58.9% | < 60% | **8.2%** | 7.8% |
| 700 to 739 | **20.9%** | 21.0% | 60% to 70% | **9.1%** | 9.3% |
| 660 to 699 | **14.5%** | 15.7% | 70% to 80% | **49.5%** | 50.9% |
| 620 to 659 | **3.8%** | 4.1% | 80% to 90% | **15.5%** | 14.9% |
| ≤ 620 | **0.3%** | 0.3% | > 90% | **17.7%** | 17.1% |
| Total | **100.0%** | 100.0% | Total | **100.0%** | 100.0% |

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The geographic breakdown below is based on the unpaid principal balance at December 31, 2025 and December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Regional Concentrations | December 31, 2025 | December 31, 2024 | State Concentrations | December 31, 2025 | December 31, 2024 |
| Midwest | **7.6%** | 7.1% | Pennsylvania | **54.2%** | 53.7% |
| Northeast | **59.0%** | 57.7% | Virginia | **12.3%** | 13.3% |
| Southeast | **32.7%** | 34.3% | Maryland | **7.3%** | 7.6% |
| Southwest | **0.4%** | 0.5% | Ohio | **6.9%** | 6.3% |
| West | **0.3%** | 0.4% | Other States | **19.3%** | 19.1% |
| Total | **100.0%** | 100.0% | Total | **100.0%** | 100.0% |

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***Underwriting Standards.*** Purchased mortgage loans must meet certain underwriting standards established in the MPF Program guidelines. Key standards and/or eligibility guidelines include the following loan criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Conforming loan size, established annually; may not exceed the loan limits set by the Finance Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Fixed-rate, fully-amortizing loans with terms from 5 to 30 years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Secured by first lien mortgages on owner-occupied residential properties and second homes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Generally, 95% maximum LTV; all LTV ratio criteria generally are based on the loan purpose, occupancy and borrower citizenship status; all loans with LTV ratios above 80% require PMI coverage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Unseasoned or current production with up to 24 payments made by the borrowers.

The following types of mortgage loans are not eligible for delivery under the MPF Program: (1) mortgage loans that are not ratable by S&P; (2) mortgage loans not meeting the MPF Program eligibility requirements as set forth in the MPF Guides and agreements; and (3) mortgage loans that are classified as high cost, high rate, Home Ownership and Equity Protection Act loans, or loans in similar categories defined under predatory lending or abusive lending laws.

Under the MPF Program, the FHLBank of Chicago (in its role as MPF Provider) and the PFI both conduct quality assurance reviews on a sample of the conventional mortgage loans to ensure compliance with MPF Program requirements. The PFI may be required to repurchase at book value the individual loans which fail these reviews. Subsequent to this quality assurance review, any loans which are discovered to breach representations and warranties may be required to be repurchased by the PFI. Additionally, MPF Government residential mortgage loans which are 90 days or more past due are contractually permitted to be repurchased by the PFI. For 2025 and 2024, the PFIs repurchased conventional and government mortgage loans of $2.7 million or 0.3% and $4.2 million or 0.8%, respectively, of total funded loans.

***Layers of Loss Protection.*** The Bank is required to put a CE structure in place at purchase that assures that, on any mortgage loans acquired, the Bank has a high degree of confidence that it will be paid the principal and interest in all material respects, even under reasonably likely adverse changes to expected economic conditions. The PFI must bear a specified portion of the direct economic consequences of actual loan losses on the individual mortgage loans or pool of loans, which may be provided by a CE obligation or SMI. Each MPF product structure has various layers of loss protection as presented below.

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| | | | |
|:---|:---|:---|:---|
| **Layer** | **MPF 35** | **MPF Original** | **MPF Plus** |
| First | Borrower's equity in the property | Borrower's equity in the property | Borrower's equity in the property |
| Second (required for mortgage loans with LTV greater than 80%) | PMI issued by qualified mortgage insurance companies (if applicable) | PMI issued by qualified mortgage insurance companies (if applicable) | PMI issued by qualified mortgage insurance companies (if applicable) |
| Third | Bank FLA <sup>(1)</sup><br>(upfront amount) | Bank FLA <sup>(1)</sup><br>(allocated amount) | Bank FLA <sup>(1)</sup><br>(upfront amount) |
| Fourth | PFI CE amount <sup>(2)</sup> | PFI CE amount <sup>(2)</sup> | SMI and/or PFI CE amount, if applicable <sup>(2)</sup> |
| Final | Bank loss | Bank loss | Bank loss |

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*<u>Notes:</u>*

<sup>(1)</sup> The FLA either builds over time (allocated amount) or is an amount equal to an agreed-upon percentage of the aggregate balance of the mortgage loans purchased (upfront amount). The Bank does not receive fees in connection with the FLA.

<sup>(2)</sup> The PFI's CE amount for each pool of loans, together with any PMI or SMI, is sized at the time of loan purchase to equal the amount of losses in excess of the FLA to the equivalent of AMA Investment Grade.

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By credit enhancing each master commitment, the PFI maintains an interest in the performance of the mortgage loans it sells to the Bank and may service for the Bank. For managing this risk, the PFI is paid a monthly CE fee by the Bank. CE fees are recorded as an offset to mortgage loan net interest income in the Statements of Income. For 2025 and 2024, CE fees were $6.1 million and $5.7 million, respectively. Performance-based CE fees paid are reduced by losses absorbed through the FLA, where applicable.

***MPF 35.*** Under MPF 35, the FLA is equal to a specified percentage of the amount of loans funded in the Master Commitment. Loan losses not covered by PMI, but not to exceed the FLA, are recorded as losses by the Bank. Losses in excess of FLA are allocated to the PFI under its CE obligation. The PFI is paid a fixed CE fee and a performance-based fee for providing the CE obligation. Losses incurred by the Bank up to its exposure under the FLA may be recaptured through recovery of future performance-based CE fees earned by the PFI. Any loan losses in excess of both the FLA and the CE amounts are recorded as losses by the Bank.

***MPF Original.*** Under MPF Original, the FLA is zero on the day the first loan is purchased and increases steadily over the life of the Master Commitment based on the month-end outstanding aggregate principal balance. Loan losses not covered by PMI, but not to exceed the FLA, are recorded as losses by the Bank. Losses in excess of FLA are allocated to the PFI under its CE obligation for each pool of loans. The PFI is paid a fixed CE fee for providing this CE obligation. Loan losses in excess of both the FLA and the CE amount are recorded as losses by the Bank.

***MPF Plus.*** MPF Plus has the same structure as MPF 35, with the exception of the PFI's CE obligation. Under MPF Plus, the PFI may obtain an SMI policy to cover its CE obligation to the Bank. If applicable, the SMI policy has a deductible that approximates the FLA. The Bank has not purchased loans through MPF Plus since 2006.

The following table presents the outstanding balances in the FLAs for the MPF Original, MPF Plus, and MPF 35 products.

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| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | MPF 35 | MPF Original | MPF Plus | Total |
| December 31, 2025 | $**22.3** | $**10.0** | $**14.9** | $**47.2** |
| December 31, 2024 | 20.1 | 9.3 | 14.9 | 44.3 |

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***Mortgage Insurers.*** The Bank's MPF Program currently has credit exposure to ten mortgage insurance companies which provide PMI and/or supplemental mortgage insurance (SMI) for the Bank's various products. To be active, the mortgage insurance company must be approved as a qualified insurer in accordance with the Finance Agency regulations. At least every two years, the Bank reviews the qualified insurers to determine if they continue to meet the financial and operational standards set by the Bank.

When a conventional mortgage loan requires PMI, the MPF Program modeling applied to the Bank's acquisitions requires additional CE from the PFI to compensate for the mortgage insurer rating when it is below BBB+. The unpaid principal balance and maximum coverage outstanding for seriously delinquent loans with PMI as of December 31, 2025 was $10.8 million and $3.0 million, respectively. The corresponding amounts at December 31, 2024 were $7.8 million and $2.4 million.

The MPF Plus product required SMI under the MPF Program when each pool was established. At December 31, 2025, five of the 14 MPF Plus pools still have SMI policies in place. The Bank does not currently offer the MPF Plus product and has not purchased loans under MPF Plus Commitments since July 2006. Per MPF Program guidelines, the existing MPF Plus product exposure is required to be secured by the PFI once the SMI company is rated below AA-. As of December 31, 2025, all of the SMI exposure is fully collateralized.

***Derivative Counterparties.*** To manage interest rate risk, the Bank enters into derivative contracts. Derivative transactions may be either executed with a counterparty (referred to as uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) or a Swap Execution Facility with a Derivatives Clearing Organization (referred to as cleared derivatives). For uncleared derivatives, the Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank uses either CME Clearing or LCH Ltd as the Clearing House for all its cleared derivative transactions. Variation margin payments are characterized as daily settlement payments, rather than collateral. Initial margin is considered cash collateral. The Bank is subject to credit risk due to the risk of non-performance by counterparties to its derivative transactions. The amount of credit risk on derivatives depends on the extent to which netting procedures, collateral requirements, daily settlement and other credit enhancements are used and are effective in mitigating the risk. The Bank manages credit risk through credit analysis, collateral management, and other credit enhancements.

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***Uncleared Derivatives.*** The Bank is subject to the risk of non-performance by counterparties to its uncleared derivative transactions. The Bank requires collateral on uncleared derivative transactions. Generally, the Bank's ISDA agreements for uncleared derivatives have collateral delivery thresholds set to zero (subject to minimum transfer amounts). The Bank has a small number of legacy trades that require collateral amounts from its counterparties based on credit rating. As a result of these risk mitigation initiatives, the Bank does not anticipate any credit losses on its uncleared derivative transactions with counterparties as of December 31, 2025. The Bank's total net credit exposure to uncleared derivative counterparties is immaterial.

Credit risk related to uncleared derivatives may be further mitigated by the exchange of initial margin with the Bank's derivative counterparties. However, as of December 31, 2025, the Bank did not exceed initial margin thresholds with any of its counterparties and was not required to post initial margin. If the Bank's aggregate uncleared derivative transactions exposure to a counterparty exceeds the applicable threshold, certain investment securities are required to be posted and held at a third-party custodian.

***Cleared Derivatives.*** The Bank is subject to credit risk exposure to the Clearing Houses and the Bank's clearing agents. The requirement that the Bank post initial margin and exchange variation margin settlement payments, through its clearing agents, to the Clearing Houses, exposes the Bank to institutional credit risk in the event that a clearing agent or a Clearing House fails to meet its obligations. Initial margin is the amount calculated based on anticipated exposure to future changes in the value of a swap and protects the Clearing Houses from market risk in the event of default by one of its clearing agents. Variation margin is the amount accumulated through daily settlement of the current exposure arising from changes in the market value of the position since the trade was executed. The Bank's use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral postings and variation margin settlement payments are made daily for changes in the value of cleared derivatives through a clearing agent. The Bank does not anticipate any credit losses on its cleared derivatives as of December 31, 2025.

The contractual or notional amount of derivative transactions reflects the involvement of the Bank in the various classes of financial instruments. The maximum credit risk of the Bank with respect to derivative transactions is the estimated cost of replacing the derivative transactions if there is a default, minus the value of any related collateral, including initial margin and variation margin settlements on cleared derivatives. In determining maximum credit risk, the Bank considers accrued interest receivables and payables as well as the netting requirements to net assets and liabilities. The following table presents the derivative positions with non-member counterparties and member institutions to which the Bank has credit exposure at December 31, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| (in millions) | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| Credit Rating <sup>(1)</sup> | Notional Amount | Fair Value Before Collateral | Cash Collateral Pledged To (From) Counterparties  | Net Credit Exposure to Counterparties |
| Non-member counterparties |  |  |  |  |
| Asset positions with credit exposure: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; A | $**3356.3** | $**6.2** | $**(5.7)** | $**0.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives | **40382.0** | **15.5** | **333.4** | **348.9** |
| Liability positions with credit exposure: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; A | **2496.0** | **(22.8)** | **23.4** | **0.6** |
| &nbsp;&nbsp;&nbsp;&nbsp; BBB | **3320.0** | $**(10.2)** | $**10.3** | $**0.1** |
| Total derivative positions with credit exposure to non-member counterparties | $**49554.3** | $**(11.3)** | $**361.4** | $**350.1** |
| Member institutions <sup>(2)</sup> | **33.3** | **—** | **—** | **—** |
| Total | $**49587.6** | $**(11.3)** | $**361.4** | $**350.1** |
| Derivative positions without credit exposure | **12583.3** |  |  |  |
| &nbsp;&nbsp;&nbsp;Total notional | $**62170.9** |  |  |  |

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*<u>Notes:</u>*

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<sup>(1)</sup> This table does not reflect any changes in rating, outlook or watch status occurring after December 31, 2025. The ratings presented in this table represent the lowest long-term counterparty credit rating available for each counterparty based on the NRSROs used by the Bank.

<sup>(2)</sup> Member institutions include mortgage delivery commitments.

The Bank annually underwrites each counterparty and country and regularly monitors NRSRO rating actions and other publications to assess credit risk and determine if there have been any changes to credit quality. This includes actively monitoring counterparties with an elevated risk profile and assessing approximate indirect exposure to foreign sovereign debt.

**Liquidity and Funding Risk**

As a wholesale bank, the Bank employs financial strategies which enable it to expand and contract its assets, liabilities and capital in response to changes in member credit demand, membership composition and other market factors. In addition, the Bank is required to maintain a level of liquidity in accordance with the FHLBank Act, Finance Agency regulations and policies established by its management and Board. The Bank's liquidity resources are intended to support these strategies and requirements through a focus on maintaining a liquidity and funding balance between its financial assets and financial liabilities.

***&nbsp;&nbsp;&nbsp;&nbsp;Asset/Liability Maturity Profile.*** The Bank is focused on maintaining adequate liquidity and funding balances with its financial assets and financial liabilities, and the FHLBanks work collectively to manage system-wide liquidity and funding needs. The Bank monitors the funding balance between financial assets and financial liabilities and is committed to prudent risk management practices and complies with Finance Agency requirements regarding this funding balance. External factors including member borrowing needs, supply and demand in the debt markets, and other factors may affect liquidity balances and the funding balances between financial assets and financial liabilities.

***&nbsp;&nbsp;&nbsp;&nbsp;Sources of Liquidity.*** The Bank's primary sources of liquidity are proceeds from the issuance of consolidated obligations and a liquidity investment portfolio, as well as proceeds from the issuance of capital stock.

*Consolidated Obligations.* The Bank's ability to operate its business, meet its obligations and generate net interest income depends primarily on the ability to issue large amounts of various debt structures at attractive rates. Consolidated obligation bonds and discount notes, along with member deposits and capital, represent the primary funding sources used by the Bank to support its asset base. Consolidated obligations benefit from the Bank's GSE status; however, they are not obligations of the U.S., and the U.S. government does not guarantee them. Consolidated obligation bonds and discount notes are rated Aa1 with stable outlook/P-1 by Moody's and AA+ with stable outlook/A-1+ by S&P as of December 31, 2025. On May 19, 2025, Moody's downgraded the Bank to Aa1 from Aaa following the long-term credit ratings downgrade of the U.S. to Aa1 from Aaa, with outlooks changing from negative to stable. These ratings express these NRSROs' opinions of the likelihood of timely payment of principal and interest. See Note 9 - Consolidated Obligations in Item 8. Financial Statements and Supplementary Data in this Form 10-K for additional information regarding the Bank's consolidated obligations.

*Liquidity Investment Portfolio.* The following investments are eligible to be included in the Bank's liquidity investment portfolio for regulatory purposes: cash, interest-bearing deposits, Federal funds sold, securities purchased under agreements to resell, and U.S. Treasury obligations classified as trading or AFS.

***Contingency Liquidity.*** If a market or operational disruption occurred that prevented the issuance of new consolidated obligations or discount notes, the Bank could meet its obligations by: (1) allowing short-term liquid investments to mature; (2) purchasing Federal funds; (3) using eligible securities as collateral for repurchase agreement borrowings; and (4) if necessary, allowing advances to mature without renewal. The Bank's GSE status and the FHLBank System consolidated obligation credit rating, which reflects the fact that all 11 FHLBanks share a joint and several liability on the consolidated obligations, have historically provided excellent capital market access.

The Bank's liquidity measures are estimates which are dependent upon certain assumptions which may or may not prove valid in the event of an actual complete capital market disruption. Management believes that under normal operating conditions, routine member borrowing needs and consolidated obligation maturities could be met under these requirements; however, under extremely adverse market conditions, the Bank's ability to meet a significant increase in member loan demand could be impaired without immediate access to the consolidated obligation debt markets.

The Bank's access to the capital markets has never been interrupted to the extent the Bank's ability to meet its membership needs and obligations was compromised, and the Bank currently has no reason to believe that its ability to issue consolidated obligations will be impeded to that extent. Specifically, the Bank's sources of contingency liquidity include maturing overnight and short-term investments, maturing advances, unencumbered repurchase-eligible assets, trading securities, AFS securities,

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and MBS repayments. Uses of contingency liquidity include net settlements of consolidated obligations, member loan commitments, mortgage loan purchase commitments, deposit outflows and maturing other borrowed funds. Excess contingency liquidity is calculated as the difference between sources and uses of contingency liquidity. Excess contingency liquidity as of December 31, 2025 and December 31, 2024 was approximately $33.0 billion and $32.4 billion, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;If consolidated obligations cannot be issued in sufficient amounts to satisfy all FHLBank demand for funding during periods of financial distress and its existing allocation processes are deemed insufficient, the OF has a methodology for the allocation of the proceeds from the issuance of consolidated obligations. In general, this methodology provides that the proceeds in such circumstances will be allocated among the FHLBanks based on relative FHLBank total regulatory capital unless the OF determines that there is an overwhelming reason to adopt a different allocation method. As is the case during any instance of a disruption in the Bank's ability to access the capital markets, market conditions or this allocation could adversely impact the Bank's ability to finance operations, which could thereby adversely impact its financial condition and results of operations.

In addition, by law, the Secretary of the Treasury may acquire up to $4 billion of consolidated obligations of the FHLBanks. This authority may be exercised only if alternative means cannot be effectively employed to permit the FHLBanks to continue to supply reasonable amounts of funds to the mortgage market, and the ability to supply such funds is substantially impaired because of monetary stringency and a high level of interest rates. Any funds borrowed shall be repaid by the FHLBanks at the earliest practicable date.

***&nbsp;&nbsp;&nbsp;&nbsp;Funding and Debt Issuance***. Changes or disruptions in the capital markets could limit the Bank's ability to issue consolidated obligations, which could impact the Bank's liquidity and cost of funds. During 2025, the Bank maintained continual access to funding. Access to short-term debt markets has been reliable because investors, driven by liquidity preferences and risk aversion have sought the FHLBank's short-term debt as an asset of choice. The FHLBanks have maintained comparatively stable access to funding through a diverse investor base at relatively favorable spreads to U.S. Treasury rates. Changes or disruptions in the capital markets could limit the Bank's ability to issue consolidated obligations, which could impact the Bank's liquidity and cost of funds. As discussed in this Form 10-K, including in Part I, Item 1A. Risk Factors—Market/Liquidity Risk, rating agency actions or negative guidance may adversely affect the Bank's cost of funds and ability to issue consolidated obligations and enter derivative transactions on acceptable terms, which could negatively affect the Bank's financial condition and results of operations, including acceptance of the Bank's letters of credit. The downgrade by

Moody's did not impact any current obligations of the Bank or its members, nor did it have an impact on the Bank's cost of

funding, access to liquidity or the Bank's financial condition and results of operations or acceptance of the Bank's letters of

credit. Moody's downgrade on FHLBank debt had a minimal impact on FHLBank debt costs, illustrated through long-term

FHLBank debt spreads to U.S. Treasuries remaining attractive relative to historical spreads.

The Bank was able to access liquidity to meet its members' needs during the period covered by this report.

***&nbsp;&nbsp;&nbsp;&nbsp;Refinancing Risk.*** There are inherent risks in utilizing short-term funding to support longer-dated assets and the Bank may be exposed to refinancing and investor concentration risks (collectively, refinancing risk). Refinancing risk includes the risk the Bank could have difficulty in rolling over short-term obligations when market conditions change. In managing and monitoring the amounts of financial assets that require refinancing, the Bank considers their contractual maturities, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments, embedded call optionality, and scheduled amortizations). The Bank and the OF jointly monitor the combined refinancing risk of the FHLBank System. In managing and monitoring the amounts of assets that require refunding, the Bank may consider contractual maturities of the financial assets, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments and scheduled amortizations).

***&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Risk.*** The Bank may use a portion of the short-term consolidated obligations issued to fund both short- and long-term variable rate-indexed assets. However, funding longer-term variable rate-indexed assets with shorter-term liabilities generally does not expose the Bank to interest rate risk because the rates on the variable rate-indexed assets reset similar to the liabilities. The Bank measures and monitors interest rate-risk with commonly used methods and metrics, which include a calculations of market value of equity and duration of equity.

***&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Liquidity Requirements*.** The Bank is required to maintain a level of liquidity in accordance with certain Finance Agency guidance. Under these policies and guidelines, the Bank is required to maintain contingency liquidity to meet liquidity needs in an amount at least equal to its anticipated net cash outflows under certain scenarios. One scenario assumes that the Bank cannot access the capital markets for a period of 20 days and during that time members would renew any maturing, prepaid or called advances. In addition, the Bank is required to perform and report to the Finance Agency the results of an annual liquidity stress test. During 2025, the Bank was in compliance with these liquidity requirements.

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***Negative Pledge Requirement.*** Finance Agency regulations require the Bank to maintain qualifying assets free from any lien or pledge in an amount at least equal to its portion of the total consolidated obligations outstanding issued on its behalf. Qualifying assets meeting the negative pledge requirement are defined as: (1) cash; (2) obligations of, or fully guaranteed by, the United States; (3) secured advances; (4) mortgages which have any guaranty, insurance or commitment from the United States or a Federal agency; and (5) investments described in Section 16(a) of the FHLBank Act, which includes securities that a fiduciary or trust fund may purchase under the laws of any of the three states in which the Bank operates. The Bank held total negative pledge qualifying assets in excess of total consolidated obligations at December 31, 2025. FHLBanks will continue to be required to operate individually and collectively to ensure that consolidated obligations maintain a high level of acceptance and are perceived by investors as presenting a low level of credit risk. Any assets subject to a lien or pledge for the benefit of holders of any issues of consolidated obligations are treated as if they were free from lien or pledge for purposes of compliance with these regulations.

***Joint and Several Liability.*** Although the Bank is primarily liable for its portion of consolidated obligations, (i.e., those issued on its behalf), the Bank is also jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on consolidated obligations of all the FHLBanks. The Finance Agency, in its discretion and notwithstanding any other provisions, may at any time order any FHLBank to make principal or interest payments due on any consolidated obligation, even in the absence of default by the primary obligor. To the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank, the paying FHLBank shall be entitled to reimbursement from the non-paying FHLBank, which has a corresponding obligation to reimburse the FHLBank to the extent of such assistance and other associated costs. However, if the Finance Agency determines that the non-paying FHLBank is unable to satisfy its obligations, then the Finance Agency may allocate the outstanding liability among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank's participation in all consolidated obligations outstanding, or on any other basis the Finance Agency may determine. Finance Agency regulations govern the issuance of debt on behalf of the FHLBanks and authorize the FHLBanks to issue consolidated obligations, through the OF as its agent. The Bank is not permitted to issue individual debt without Finance Agency approval. See Note 9 - Consolidated Obligations in Item 8. Financial Statements and Supplementary Data in this Form 10-K for additional information.

**Operational and Business Risks**

***Operational Risk*.** Operational risk is defined as the potential for loss resulting from inadequate or failed internal processes, people, and systems, or from external events and encompasses risks related to housing mission-related activities, including the Bank's member products and services activities and those associated with affordable housing programs or goals and other Bank business activities. The Bank considers various sources of risk of unexpected loss, including human error, fraud, unenforceability of legal contracts, deficiencies in internal controls and/or information systems, and the impact of cybersecurity attacks, vendor breakdown, or damage from fire, theft, natural disaster or acts of terrorism. Generally, the category of operational risk includes loss exposures of a physical or procedural nature. Specifically, operational risk includes compliance, fraud, information/transaction, legal, cyber, vendor, people, succession and model risk. The Bank has established policies and procedures to manage each of the specific operational risks. The Bank's approach to cybersecurity risk is discussed in Item 1C. Cybersecurity in this Form 10-K.

Business areas retain primary responsibility for identifying, assessing and reporting their operational risks. To assist them in discharging this responsibility and to ensure that operational risk is managed consistently throughout the organization, the Bank has an operational risk management framework, which includes quantitative and qualitative key risk indicators that includes emerging risks and an annual risk and control self-assessment, as well as a Bank-wide compliance program designed to promote awareness of compliance requirements and monitor compliance activities. Some operational risk may also result from external factors, such as the failure of other parties with which the Bank conducts business to adequately address their own operational risks (see additional discussion below). In addition, the Bank's Internal Audit department reports directly to the Audit Committee of the Board and regularly monitors compliance with established policies and procedures.

The Bank relies on third-party vendors and other service providers for ongoing support of business activities. Disruption or failure of service or breach of security at a vendor or other service provider could impact the Bank's ability to conduct business or expose the Bank to fraud, financial loss, damage to the Bank's reputation or loss of intellectual property or confidential information. The Bank has processes in place to manage vendor and third-party risks. The Bank is also exposed to the risk that a catastrophic event could result in significant business disruption and an inability to process transactions through normal business processes. To mitigate this risk and support the Bank's resiliency, the Bank maintains and tests business continuity plans and has established backup capabilities away from its headquarters. The Bank also has a reciprocal backup agreement in place with another FHLBank to provide its members short-term loans and debt servicing in the event that Pittsburgh facilities are inoperable. The results of the Bank's periodic business continuity tests as well as various tabletop and crisis management

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exercises are presented to the Board. Management can make no assurances that these measures will be sufficient to respond to the full range of catastrophic events that might occur.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank's business is dependent upon its ability to effectively exchange and process information using its computer information systems. The Bank's products and services require a complex and sophisticated cloud computing environment, which includes SaaS, IaaS, licensed or purchased software and custom-developed software. The effectiveness and efficiency of the Bank's operations is dependent upon the continued functionality of technology solutions and systems, which may require ongoing expenditures, as well as the ability to sustain ongoing operations during technology implementations, upgrades or patches. If the Bank were unable to sustain its technological capabilities or implement new or emerging technologies, such as artificial intelligence (AI), it may not be able to remain competitive, and its business, financial condition and profitability may be significantly compromised. To advance its disaster recovery and continuous operations, the Bank continues to take steps to review and improve its processes and resiliency through its business continuity plan. Nonetheless, the Bank cannot guarantee the effectiveness of its business continuity plan or other related policies, procedures and systems to protect the Bank in any particular future situation.

The Bank maintains insurance, including director and officer liability protection and coverage for cyber/breach response, as well as other insurance protection, as deemed appropriate. The Bank regularly reviews its insurance coverage for adequacy as well as the financial claims-paying ability of its insurance carriers.

***Business Risk.*** Business risk is the possibility of an adverse impact on the Bank's profitability or financial or business strategies resulting from external factors that may occur in the short-term and/or long-term. This risk includes the potential for strategic business constraints to be imposed through regulatory, legislative or political changes. Examples of external factors may include, but are not limited to: financial services industry consolidation, a declining membership base, concentration of borrowing among members, the introduction of new competing products and services, increased non-Bank competition, weakening of the FHLBank System's GSE status, changes in the deposit and mortgage markets for the Bank's members, changes that could occur as a result of new legislation or new or changed regulatory guidance, geopolitical instability, AI and other factors that may have a significant direct or indirect impact on the ability of the Bank to achieve its dual mission and strategic objectives. The Bank's various Risk Management Committees monitor economic indicators and the external environment in which the Bank operates for alignment with the Bank's risk appetite. A discussion of various Bank risks is also included in Item 1A. Risk Factors in this Form 10-K.

**Item 7A: Quantitative and Qualitative Disclosures about Market Risk**

See the Risk Management section of Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K.

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**Item 8: Financial Statements and Supplementary Data** 

**Management's Report on Internal Control over Financial Reporting**

The management of the Bank is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Bank's internal control over financial reporting is designed by and under the supervision of the Bank's management, including the Chief Executive Officer and the Chief Financial Officer. The Bank's internal controls over financial reporting are to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with GAAP in the United States of America.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Bank's management assessed the effectiveness of the Bank's internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the *Internal Control-Integrated Framework (2013)*. Based on its assessment, management of the Bank determined that as of December 31, 2025, the Bank's internal control over financial reporting was effective based on those criteria.

The effectiveness of the Bank's internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, the Bank's independent registered public accounting firm, as stated in their report that follows.

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**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Shareholders of the Federal Home Loan Bank of Pittsburgh

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying statements of condition of the Federal Home Loan Bank of Pittsburgh (the "FHLBank") as of December 31, 2025, and 2024, and the related statements of income, comprehensive income, changes in capital and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "financial statements"). We also have audited the FHLBank's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the FHLBank as of December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the FHLBank maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions***

The FHLBank's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the FHLBank's financial statements and on the FHLBank's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the FHLBank in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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***Critical Audit Matters***

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Valuation of Interest-Rate Related Derivatives*

As described in Notes 7 and 14 to the financial statements, as of December 31, 2025 the fair value of the Bank's derivative assets and liabilities was $350.1 million and $2.0 million, respectively, the majority of which related to interest-rate related derivatives. The fair value of derivatives is estimated using standard valuation techniques such as discounted cash flow analysis. The discounted cash flow analysis used to determine the net present value of interest-rate related derivatives utilizes market -observable inputs, including the discount rate, forward interest rate, and volatility assumptions.

The principal considerations for our determination that performing procedures relating to the valuation of interest-rate related derivatives is a critical audit matter are (i) the high degree of audit effort in performing procedures related to the valuation of interest-rate related derivatives; and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to the valuation of interest-rate related derivatives. These procedures also included, among others, (i) testing the completeness and accuracy of certain data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management's estimate by (a) developing an independent estimate of fair value for a sample of interest-rate related derivatives using independent market observable inputs, including the discount rate, forward interest rate, and volatility assumptions and (b) comparing the independently developed estimate of fair value to management's estimate.

/s/ PricewaterhouseCoopers LLP

Pittsburgh, Pennsylvania

March 4, 2026

We have served as the FHLBank's auditor since 1990.

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**Federal Home Loan Bank of Pittsburgh**

**Statements of Income**

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| | | | |
|:---|:---|:---|:---|
| | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Interest income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances | $**2348952** | $4095951 | $4218997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | **137864** | 200702 | 205810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | **155204** | 413493 | 310929 |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | **351959** | 164300 | 192858 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading securities | **4523** | 6127 | 8200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale (AFS) securities | **908192** | 984269 | 720973 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity (HTM) securities | **51749** | 54235 | 39992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio | **197313** | 168642 | 148432 |
| Total interest income | **4155756** | 6087719 | 5846191 |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated obligations - discount notes | **423878** | 601437 | 1118881 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consolidated obligations - bonds | **3078274** | 4664926 | 3953400 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | **27738** | 34942 | 33143 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mandatorily redeemable capital stock and other borrowings | **743** | 2421 | 2460 |
| Total interest expense | **3530633** | 5303726 | 5107884 |
| Net interest income | **625123** | 783993 | 738307 |
| Provision (reversal) for credit losses | **2849** | 2052 | 3401 |
| Net interest income after provision (reversal) for credit losses | **622274** | 781941 | 734906 |
| Noninterest income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on investment securities (Note 4) | **4565** | 261 | 3947 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net gains (losses) on derivatives (Note 7) | **(22766)** | 8516 | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp; Standby letters of credit fees | **34618** | 34844 | 30969 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other, net | **2199** | 4423 | 1983 |
| Total noninterest income (loss) | **18616** | 48044 | 36829 |
| Other expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Compensation and benefits | **63460** | 63260 | 58656 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating | **47969** | 48376 | 41839 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance Agency | **8925** | 8641 | 7015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office of Finance | **7068** | 7453 | 6008 |
| &nbsp;&nbsp;&nbsp; Voluntary contributions | **48589** | 49196 | 11748 |
| Total other expense | **176011** | 176926 | 125266 |
| Income before assessments | **464879** | 653059 | 646469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affordable Housing Program (AHP) assessment (Note 10) | **46561** | 65544 | 64880 |
| Net income | $**418318** | $587515 | $581589 |

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

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**Federal Home Loan Bank of Pittsburgh**

**Statements of Comprehensive Income** 

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Net income | $**418318** | $587515 | $581589 |
| Other comprehensive income (loss): |  |  |  |
| Net change in fair value of AFS securities | **64595** | 43689 | (6456) |
| Realized (gains) losses on AFS securities included in net income | **(743)** |  | (489) |
| Pension and post-retirement benefits | **391** | (1721) | 984 |
| Total other comprehensive income (loss) | **64243** | 41968 | (5961) |
| Total comprehensive income (loss) | $**482561** | $629483 | $575628 |

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

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 **Federal Home Loan Bank of Pittsburgh**

**Statements of Condition** 

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| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in thousands, except par value) | 2025 | 2024 |
| **ASSETS** |  |  |
| Cash and due from banks (Note 3) | $**32585** | $17340 |
| Interest-bearing deposits (Note 4) | **2408873** | 2726628 |
| Securities purchased under agreements to resell (Note 4) | **2680000** | 6280000 |
| Federal funds sold (Note 4) | **5977000** | 2664000 |
| <u>Investment securities: (Note 4)</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trading securities | **119676** | 149153 |
| &nbsp;&nbsp;&nbsp;&nbsp;AFS securities, net; amortized cost of $18,171,361 and $18,207,176 | **18189327** | 18163843 |
| &nbsp;&nbsp;&nbsp;&nbsp; HTM securities; fair value of $1,099,599 and $1,219,392 | **1143705** | 1298808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment securities | **19452708** | 19611804 |
| Advances (Note 5) | **36819992** | 69873233 |
| Mortgage loans held for portfolio, net (Note 6) | **5220302** | 4816452 |
| Accrued interest receivable | **261589** | 469154 |
| Derivative assets (Note 7) | **350117** | 353629 |
| Other assets | **114060** | 114509 |
| **Total assets** | $**73317226** | $106926749 |

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| | | |
|:---|:---|:---|
| **LIABILITIES AND CAPITAL** | | |
| **Liabilities** | | |
| Deposits (Note 8) | $**590785** | $774883 |
| <u>Consolidated obligations</u> (Note 9)  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | **16697025** | 11685159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | **50795251** | 87965104 |
| Total consolidated obligations | **67492276** | 99650263 |
| Mandatorily redeemable capital stock (Note 11) | **12344** | 7025 |
| Accrued interest payable | **305053** | 540958 |
| AHP payable (Note 10) | **183978** | 160654 |
| Derivative liabilities (Note 7) | **1994** | 8666 |
| Other liabilities | **159195** | 150232 |
| **Total liabilities** | **68745625** | 101292681 |
| Commitments and contingencies (Note 15) |  |  |
| **Capital** (Note 11)  |  |  |
| Capital stock - Class B putable ($100 par value) issued and outstanding shares 22,922 and 35,617 | **2292218** | 3561712 |
| Retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrestricted | **1462288** | 1370000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted | **783372** | 732876 |
| Total retained earnings | **2245660** | 2102876 |
| Accumulated Other Comprehensive Income (Loss) (AOCI) | **33723** | (30520) |
| **Total capital** | **4571601** | 5634068 |
| **Total liabilities and capital** | $**73317226** | $106926749 |

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

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**Federal Home Loan Bank of Pittsburgh**

**Statements of Cash Flows**

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| | | | |
|:---|:---|:---|:---|
| | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| **OPERATING ACTIVITIES** |  |  |  |
| Net income | $**418318** | $587515 | $581589 |
| Adjustments to reconcile net income to net cash provided by (used in)<br> operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization (accretion) | **35841** | (74875) | (74974) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in derivative and hedging activities | **(405503)** | 150566 | (389768) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized losses (gains) from sales of AFS securities | **(743)** |  | (489) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value adjustments on trading securities | **(3822)** | (261) | (3458) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other adjustments, net | **3473** | 4002 | 6419 |
| Net change in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | **208744** | 48757 | (206581) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | **1262** | (17924) | (18312) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | **(235905)** | (212701) | 466145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | **35757** | 99795 | 81812 |
| Total adjustments | **(360896)** | (2641) | (139206) |
| **Net cash provided by (used in) operating activities** | $**57422** | $584874 | $442383 |
| **INVESTING ACTIVITIES** |  |  |  |
| Net change in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing deposits (including $(365), $801 and $(956) <br>&nbsp;&nbsp;&nbsp;&nbsp;(to)/from other FHLBanks) | $**563696** | $578828 | $(327553) |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under agreements to resell | **3600000** | (300000) | (2780000) |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal funds sold | **(3313000)** | (131000) | 517000 |
| Trading securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds | **33400** | 68950 | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **—** |  | (199178) |
| AFS securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds (includes $996,298, $0 and $798,200 from sales) | **3383210** | 1607046 | 2887020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(3056722)** | (5281480) | (4967548) |
| HTM securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds | **252614** | 235620 | 140848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(99707)** | (197236) | (525628) |
| Advances: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repaid | **371476559** | 439481764 | 696844542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Originated | **(338292690)** | (430862201) | (706266366) |
| Mortgage loans held for portfolio: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal collected | **460138** | 380029 | 365339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases | **(880963)** | (511504) | (480933) |
| Other investing activities, net | **(5249)** | (24400) | (753) |
| **Net cash provided by (used in) investing activities** | $**34121286** | $5044416 | $(14593210) |

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| | | | |
|:---|:---|:---|:---|
| **Federal Home Loan Bank of Pittsburgh<br>Statements of Cash Flows (continued)** | **Federal Home Loan Bank of Pittsburgh<br>Statements of Cash Flows (continued)** | **Federal Home Loan Bank of Pittsburgh<br>Statements of Cash Flows (continued)** | **Federal Home Loan Bank of Pittsburgh<br>Statements of Cash Flows (continued)** |
|  | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| **FINANCING ACTIVITIES** |  |  |  |
|  Net change in deposits | $**(177430)** | $137558 | $90928 |
| Net proceeds from issuance of consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | **400186290** | 531107042 | 633148413 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | **94481950** | 118721404 | 98541919 |
| Payments for maturing and retiring consolidated obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes | **(395223059)** | (533058251) | (653169662) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | **(131891505)** | (121835210) | (64668610) |
| Proceeds from issuance of capital stock | **4047051** | 4075045 | 5327534 |
| Payments for repurchase/redemption of capital stock | **(5310075)** | (4428043) | (4821728) |
| Payments for repurchase/redemption of mandatorily redeemable<br> capital stock | **(1151)** | (26669) | (13570) |
| Cash dividends paid | **(275534)** | (316335) | (286130) |
| **Net cash provided by (used in) financing activities** | $**(34163463)** | $(5623459) | $14149094 |
| **Net increase (decrease) in cash and due from banks** | $**15245** | $5831 | $(1733) |
| Cash and due from banks at beginning of the period | **17340** | 11509 | 13242 |
| Cash and due from banks at end of the period | $**32585** | $17340 | $11509 |
| **<u>Supplemental disclosures:</u>** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $**3716590** | $5446038 | $4841331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital stock reclassified to mandatorily redeemable capital stock | **6470** | 5820 | 13681 |

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

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**Federal Home Loan Bank of Pittsburgh**

**Statements of Changes in Capital**

**Years Ended December 31, 2025, 2024, and 2023**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Capital Stock - Putable | Capital Stock - Putable | Retained Earnings | Retained Earnings | Retained Earnings | | |
| (in thousands) | Shares | Par Value | Unrestricted | Restricted | Total | AOCI | Total Capital |
| December 31, 2022 | 34284 | $3428405 | $1037182 | $499055 | $1536237 | $(66527) | $4898115 |
| Comprehensive income (loss) |  |  | 465271 | 116318 | 581589 | (5961) | 575628 |
| Issuance of capital stock | 53275 | 5327534 |  |  | **—** |  | 5327534 |
| Repurchase/redemption of capital stock | (48217) | (4821728) |  |  | **—** |  | (4821728) |
| Stock reclassified to mandatorily redeemable capital stock | (137) | (13681) |  |  | **—** |  | (13681) |
| Cash dividends |  |  | (286130) |  | (286130) |  | (286130) |
| December 31, 2023 | 39205 | $3920530 | $1216323 | $615373 | $1831696 | $(72488) | $5679738 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Capital Stock - Putable | Capital Stock - Putable | Retained Earnings | Retained Earnings | Retained Earnings | | |
| (in thousands) | Shares | Par Value | Unrestricted | Restricted | Total | AOCI | Total Capital |
| December 31, 2023 | 39205 | $3920530 | $1216323 | $615373 | $1831696 | $(72488) | $5679738 |
| Comprehensive income (loss) |  |  | 470012 | 117503 | 587515 | 41968 | 629483 |
| Issuance of capital stock | 40750 | 4075045 |  |  | **—** |  | 4075045 |
| Repurchase/redemption of capital stock | (44280) | (4428043) |  |  | **—** |  | (4428043) |
| Stock reclassified to mandatorily redeemable capital stock | (58) | (5820) |  |  | **—** |  | (5820) |
| Cash dividends |  |  | (316335) |  | (316335) |  | (316335) |
| December 31, 2024 | 35617 | $3561712 | $1370000 | $732876 | $2102876 | $(30520) | $5634068 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Capital Stock - Putable | Capital Stock - Putable | Retained Earnings | Retained Earnings | Retained Earnings | | |
| (in thousands) | Shares | Par Value | Unrestricted | Restricted | Total | AOCI | Total Capital |
| December 31, 2024 | **35617** | $**3561712** | $**1370000** | $**732876** | $**2102876** | $**(30520)** | $**5634068** |
| Comprehensive income (loss) | **—** | **—** | **367822** | **50496** | **418318** | **64243** | **482561** |
| Issuance of capital stock | **40471** | **4047051** | **—** | **—** | **—** | **—** | **4047051** |
| Repurchase/redemption of capital stock | **(53101)** | **(5310075)** | **—** | **—** | **—** | **—** | **(5310075)** |
| Stock reclassified to mandatorily redeemable capital stock | **(65)** | **(6470)** | **—** | **—** | **—** | **—** | **(6470)** |
| Cash dividends | **—** | **—** | **(275534)** | **—** | **(275534)** | **—** | **(275534)** |
| December 31, 2025 | $**22922** | $**2292218** | $**1462288** | $**783372** | $**2245660** | $**33723** | $**4571601** |

---

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

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**Federal Home Loan Bank of Pittsburgh**

**Notes to Financial Statements**

**Background Information** 

The Bank, a federally chartered corporation, is one of 11 district Federal Home Loan Banks (FHLBanks). Each FHLBank operates as a separate entity with its own management, employees and board of directors. The FHLBanks are government-sponsored enterprises (GSEs) that serve the public by increasing the availability of credit for residential mortgages and community development. The Bank provides a readily available, low-cost source of funds to its member institutions. The Bank is a cooperative, which means that current members own nearly all of the outstanding capital stock of the Bank. All holders of the Bank's capital stock may, to the extent declared by the Board, receive dividends on their capital stock. Regulated financial depositories and insurance companies engaged in residential housing finance that maintain their principal place of business (as determined by Finance Agency regulation) in Delaware, Pennsylvania or West Virginia may apply for membership. CDFIs which meet membership regulation standards are also eligible to become Bank members. State and local housing associates that meet certain statutory and regulatory criteria may also borrow from the Bank. While eligible to borrow, state and local housing associates are not members of the Bank and, as such, do not hold capital stock.

All members must purchase capital stock in the Bank. The amount of capital stock a member owns is based on membership requirements (membership asset value) and activity requirements (i.e., outstanding advances, letters of credit, and the principal balance of residential mortgage loans sold to the Bank). The Bank considers those members with capital stock outstanding in excess of 10% of total capital stock outstanding to be related parties.

The Finance Agency, an independent agency in the executive branch of the U.S. government, supervises and regulates the FHLBanks, Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal National Mortgage Association (Fannie Mae). The Finance Agency's stated mission is to ensure the housing GSEs fulfill their mission by operating in a safe and sound manner to serve as a reliable source for liquidity and funding for the housing finance market throughout the economic cycle.

As provided by the Federal Home Loan Bank Act (FHLBank Act) and applicable regulations, consolidated obligations are joint and several obligations of all the FHLBanks and are the primary source of funds for the FHLBanks. These funds are primarily used to provide advances, purchase mortgages from members through the MPF<sup>®</sup> Program and purchase certain investments. The Office of Finance (OF) is a joint office of the FHLBanks established to facilitate the issuance and servicing of the consolidated obligations of the FHLBanks and to prepare the combined quarterly and annual financial reports of all the FHLBanks. Deposits, other borrowings, and capital stock issued to members provide other funds. The Bank primarily invests these funds in short-term investments to provide liquidity. The Bank also provides member institutions with correspondent services, such as wire transfer, safekeeping and settlement with the Federal Reserve.

------

**Notes to Financial Statements (continued)**

**Note 1 – Summary of Significant Accounting Policies**

**Basis of Presentation**

These financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (GAAP).

***Segment Reporting***. The Bank engages in its business activities to provide funding, liquidity, and services to its members and manages its operations as one Bank-wide operating segment. The Bank's chief operating decision maker (CODM) is the Executive Committee, comprised of the Bank's executive officers. The CODM primarily uses net income when assessing financial performance and allocating resources, including for budget analysis and benchmarking purposes. For additional information regarding other items reported to the CODM, including significant expenses, refer to the Bank's Statements of Income, Statements of Condition, and the Notes to Financial Statements.

The Bank's net income is primarily attributable to net interest income - the difference between the interest income earned on advances, mortgage loans, and investments, and the interest expense accrued on consolidated obligations. The Bank manages risk and monitors financial performance across the entire Bank based on its total assets and total liabilities. Significant accounting policies related to the Bank's activities are described in the Significant Accounting Policies section in this Note 1 – Summary of Significant Accounting Policies.

The Bank's major customers include members with revenue in excess of 10% of the Bank's total revenue, which includes

interest income and noninterest income. For each of the years ended December 31, 2025, 2024 and 2023, the Bank had two major customers with total revenue of $0.8 billion and $0.4 billion; $1.8 billion and $0.8 billion; and $1.9 billion and $0.6 billion, respectively.

**Significant Accounting Policies**

***Use of Estimates.*** The preparation of financial statements in accordance with GAAP requires management to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could differ from these estimates significantly.

*Fair Value.* The fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information, and reflect the Bank's best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in current market transactions, although they do reflect the Bank's judgment of how a market participant would estimate the fair values. See Note 14 - Estimated Fair Values in this Item for more information.

***Financial Instruments Meeting Netting Requirements.*** The Bank presents certain financial instruments on a net basis when it has a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). For these financial instruments, the Bank has elected to offset its asset and liability positions, as well as cash collateral received or pledged.

The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. See Note 7 - Derivatives and Hedging Activities in this Item for additional information regarding these agreements.

***Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold.*** The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. These investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Interest-bearing deposits include bank notes not meeting the definition of a security. Federal funds sold consist of short-term, unsecured loans generally transacted with counterparties that are considered by the Bank to be of investment

------

**Notes to Financial Statements (continued)**

quality. The Bank treats securities purchased under agreements to resell as short-term collateralized loans that are classified as assets in the Statements of Condition.

*<u>ACL:</u>* These investments are evaluated quarterly for expected credit losses. If applicable, an ACL is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment's amortized cost. See Note 4 - Investments in this Item for details on the allowance methodologies relating to these investments.

***Investment Securities.*** The Bank classifies investment securities as trading, AFS or HTM at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis.

*Trading.* Securities classified as trading are carried at fair value. The Bank records changes in the fair value of these investments through noninterest income as "Net gains (losses) on investment securities."

*AFS.* Securities that are not classified as HTM or trading are classified as AFS and are carried at fair value. The Bank records changes in the fair value of these securities not in qualifying fair value hedging relationships in AOCI. For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income within the "AFS securities" section together with the related change in the fair value of the derivative and records the remainder of the change in the fair value of the investment in AOCI as "Net unrealized gains (losses) on AFS securities."

*<u>AFS ACL:</u>* AFS securities are evaluated quarterly for expected credit losses on an individual security basis. In assessing whether a credit loss exists, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. If a shortfall is projected to occur, the Bank recognizes an ACL. The ACL is limited to the amount of the AFS security's unrealized loss, if any. If the AFS security is in an unrealized gain position, the ACL is zero. The ACL excludes uncollectible accrued interest receivable, which is measured separately. See Note 4 - Investments in this Item for details on the allowance methodologies relating to AFS securities.

If the Bank intends to sell an AFS security in an unrealized loss position, or more likely than not will be required to sell the security, any ACL is written off and the amortized cost basis is written down to the security's fair value with any incremental impairment reported in earnings as net gains (losses) on investment securities.

For AFS securities for which OTTI was previously recognized, the accretable yield continues to be used prospectively. Based on the quarterly assessment of expected credit losses, if there is an improvement, the Bank will first recognize a reversal for credit losses up to the amount of the ACL. If the ACL is zero and the increase in cash flows is significant, the Bank will adjust the accretable yield prospectively.

*HTM.* Securities that the Bank has both the intent and ability to hold to maturity are classified as HTM and are carried at amortized cost, representing the amount at which an investment is acquired net of periodic principal repayments, amortization of premiums and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition.

Certain changes in circumstances may cause the Bank to change its intent to hold a security to maturity without calling into question its intent to hold other debt securities to maturity. Thus, the sale or transfer of an HTM security due to certain changes in circumstances, such as evidence of significant deterioration in the issuer's creditworthiness or changes in regulatory requirements, is not considered to be inconsistent with its original classification. Other events that are isolated, nonrecurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without necessarily calling into question its intent to hold other debt securities to maturity. In addition, a sale of a debt security that meets either of the following two conditions would not be considered inconsistent with the original classification of that security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The sale occurs near enough to its maturity date (for example, within three months of maturity), or call date if exercise of the call is probable that interest-rate risk is substantially eliminated as a pricing factor and the changes in market interest rates would not have a significant effect on the security's fair value, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The sale of a security occurs after the Bank has already collected a substantial portion (at least 85%) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term.

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**Notes to Financial Statements (continued)**

*<u>HTM ACL:</u>* HTM securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An ACL is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The ACL excludes uncollectible accrued interest receivable, which is measured separately. See Note 4 - Investments in this Item for details on the allowance methodologies relating to HTM securities.

*Premiums and Discounts.* The Bank amortizes purchased premiums and accretes purchased discounts on investment securities using the contractual level-yield method (contractual method). The contractual method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior.

*Gains and Losses on Sales.* The Bank computes gains and losses on sales of its investment securities using the specific identification method and includes these gains and losses in "Noninterest income (loss)".

***Advances.*** The Bank reports advances (secured loans to members, former members or housing associates) at amortized cost, which is cost, net of premiums and discounts and hedging adjustments. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank amortizes/accretes premiums, discounts and hedging adjustments to interest income using the contractual method. The Bank records interest on advances to interest income as earned.

*<u>Advances ACL:</u>* Advances are evaluated quarterly for expected credit losses. If deemed necessary, an ACL is recorded with a corresponding adjustment to the provision (reversal) for credit losses. See Note 5 - Advances in this Item 8 for details on the allowance methodology relating to advances.

*Commitment Fees.* The Bank records fees for standby letters of credit as a deferred credit when the Bank receives the fee and accretes them using the straight-line method over the term of the standby letter of credit.

*Advance Modifications.* In cases in which the Bank funds a new advance concurrently with or within a short period of time before or after the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. The Bank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a 10% difference in the present value of cash flows or if, based on a qualitative assessment of the modifications made to the original contractual terms, the Bank will conclude that the modifications are more than minor, and the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification.

*Prepayment Fees.* The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. In the event that a new advance is issued in connection with a prepayment of an outstanding advance, but the new advance does not qualify as a modification of an existing advance, any prepayment fee, net of hedging activities, is recorded in "Advances" in the interest income section of the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging activities, is deferred and amortized using the contractual method.

***Mortgage Loans Held for Portfolio.*** The Bank participates in the MPF Program under which the Bank invests in residential mortgage loans, which are purchased from members that are Participating Financial Institutions (PFIs). The Bank manages the liquidity, interest-rate risk (including prepayment risk) and optionality of the loans, while the PFI may retain the marketing and servicing activities. The Bank and the PFI share in the credit risk of the conventional loans with the Bank assuming the first loss obligation limited by the First Loss Account (FLA), while the PFI assumes credit losses in excess of the FLA, referred to as Credit Enhancement (CE) obligation, up to the amount of the CE obligation as specified in the master commitment. The Bank assumes losses in excess of the CE obligation.

The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future as held for portfolio. Accordingly, these mortgage loans are recorded at amortized cost, which is cost, net of periodic principal repayments and amortization of premiums and accretion of discounts, hedging adjustments, and charge-offs. Accrued interest receivable is recorded separately on the Statements of Condition.

*<u>MPF ACL:</u>* The Bank performs a quarterly assessment of its mortgage loans to estimate expected credit losses. An ACL is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer

------

**Notes to Financial Statements (continued)**

shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis.

When developing the ACL, the Bank measures the estimated loss over the life of a mortgage loan and incorporates the credit enhancements of the MPF Program. If a mortgage loan is purchased at a discount, the discount does not offset the ACL. The Bank includes estimates of expected recoveries within the ACL when expected lifetime credit losses are less than the amounts previously charged-off. The allowance excludes uncollectible accrued interest receivable, as the Bank writes-off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status.

The Bank does not purchase mortgage loans with credit deterioration present at the time of purchase. See Note 6 - Mortgage Loans Held for Portfolio in this Item 8 for details on the allowance methodologies relating to mortgage loans.

*Premiums and Discounts.* The Bank defers and amortizes/accretes mortgage loan premiums and discounts paid to and received from the Bank's PFIs, deferred loan fees or costs, and hedging basis adjustments to interest income using the contractual method.

*CE Fees.* For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing CE either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide Supplemental Mortgage Insurance (SMI). PFIs are paid a CE fee for assuming credit risk, and in some instances all or a portion of the CE fee may be performance-based. CE fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE fees are recorded as an offset to mortgage loan interest income. To the extent the Bank experiences losses in a master commitment, it may be able to recapture CE fees paid to the PFIs to offset these losses.

*Nonaccrual Loans*. The Bank places a conventional mortgage loan on nonaccrual status if it is determined that either (1) the collection of interest or principal is doubtful or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through CE) and in the process of collection. For those mortgage loans placed on nonaccrual status, accrued but uncollected interest is charged against interest income. The Bank records cash payments received as a reduction of principal because the collection of the remaining principal amount due is considered doubtful and cash payments received are applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on nonaccrual status may be restored to accrual when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal or (2) it otherwise becomes well secured and in the process of collection.

*Mortgage Loan Modifications*. The Bank may provide mortgage loan modifications to borrowers experiencing financial difficulty. If the terms of the modified loan are at least as favorable to the Bank as the terms offered to borrowers with similar collection risks for comparable loans and the modification to the terms of the loan is more than minor, the loan meets the accounting criteria for a new loan. Generally, a modification does not result in a new loan because the modified terms are not as favorable to the Bank as terms for comparable loans that would be offered to similar borrowers.

*Collateral-Dependent Loans.* A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale of the underlying collateral. Loans that are considered collateral-dependent are measured for credit loss based on the fair value of the underlying property less estimated selling costs, with any shortfall recognized as a charge-off.

*Charge-off Policy*. The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include, but are not limited to, the occurrence of foreclosure, notification of a claim against any of the CE, a loan that is 180 or more days delinquent, or certain loans for which the borrower has filed for bankruptcy. If the loss is expected to be recovered through CE, the Bank recognizes a CE fee receivable for the amount of the loss and assesses it for collectability along with the mortgage loans. The CE fee receivable is recorded in Other assets on the Statements of Condition.

***Real Estate Owned (REO).*** REO includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value less estimated selling costs and is subsequently carried at the lower of that amount or current fair value less estimated selling costs. The Bank recognizes a charge-off to the allowance for credit losses and/or CE fee receivable if the fair value of the REO less estimated selling costs is less than the recorded investment in the loan at the date of transfer from loans to REO. Any subsequent realized gains, realized or unrealized losses, and carrying costs are included in Noninterest expense in the Statements of Income. REO is recorded in Other assets on the Statements of Condition.

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**Notes to Financial Statements (continued)**

***Derivatives and Hedging Activities.*** All derivatives are recognized on the Statements of Condition at fair value and are reported as either derivative assets or derivative liabilities, net of cash collateral, including initial margin, and accrued interest received from or pledged to clearing agents and/or counterparties. Variation margin payments are characterized as daily settlement payments, rather than collateral. The fair value of derivatives is netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows, as the Bank does not have any derivatives that met the criteria of a financing derivative.

*Types of Qualifying and Non-Qualifying Hedges.* The Bank has the following types of hedges that qualify for hedge accounting treatment (qualifying hedges) and hedges that do not qualify for hedge accounting treatment (non-qualifying hedges):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a qualifying hedge of the change in fair value of a recognized asset or liability or an unrecognized firm commitment (a fair value hedge); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a non-qualifying hedge (an economic hedge) for asset and liability management purposes.

*Accounting for Fair Value Hedges*. If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the hedging relationship, and are expected to be highly effective, they qualify for fair value hedge accounting. The Bank accounts for hedging relationships using long-haul hedge accounting, which requires the Bank to formally assess (both at the hedge's inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items or forecasted transactions attributable to the hedged risk and whether those derivatives may be expected to remain highly effective in future periods. For fair value hedges, the Bank employs regression-based testing prospectively based on valuations derived from historical and current market data. After the initial quantitative effectiveness assessment, the Bank may perform subsequent effectiveness assessments on a qualitative basis if certain criteria are met.

Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a qualifying hedging relationship at the trade date. In many hedging relationships, the Bank may designate the hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within normal market settlement conventions. The Bank then records the changes in fair value of the derivative and the hedged item beginning on the trade date.

Net interest settlements, as well as changes in the fair value of a derivative and the related hedged item for designated fair value hedges, are recorded in net interest income in the same line as the hedged item.

*Accounting for Economic Hedges.* An economic hedge is defined as a derivative, hedging specific or non-specific underlying assets, liabilities or firm commitments, that does not qualify or was not designated for fair value hedge accounting, but is an acceptable hedging strategy under the Bank's risk management program. These economic hedging strategies also comply with Finance Agency regulatory requirements prohibiting speculative hedge transactions. An economic hedge introduces the potential for earnings variability caused by the changes in fair value of the derivatives that are recorded in the Bank's income, but that are not offset by corresponding changes in the value of the economically hedged assets, liabilities, or firm commitments. As a result, the Bank recognizes the net interest settlements and the change in fair value of these derivatives in noninterest income as "Net gains (losses) on derivatives" with no offsetting fair value adjustments for the assets, liabilities, or firm commitments.

*Accrued Interest Receivables and Payables.* The net settlements of interest receivables and payables related to derivatives designated in fair value hedging relationships are recognized as adjustments to the income or expense of the designated hedged item.

*Discontinuance of Hedge Accounting.* The Bank discontinues hedge accounting prospectively when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it determines that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item attributable to the hedged risk (including hedged items such as firm commitments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the derivative and/or the hedged item expires or is sold, terminated, or exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a hedged firm commitment no longer meets the definition of a firm commitment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management determines that designating the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative on the Statements of Condition at its fair value, ceases to adjust the hedged asset or liability for changes in fair value, and

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**Notes to Financial Statements (continued)**

amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the contractual method.

When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Bank continues to carry the derivative on the Statements of Condition at its fair value, removing from the Statements of Condition any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings.

*Embedded Derivatives.* The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is "embedded." Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the debt, advance or purchased financial instrument (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. The embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument (pursuant to an economic hedge) when the Bank determines that certain criteria are met. The Bank had no embedded derivatives requiring separation from the host contract at December 31, 2025 or 2024.

***&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Obligations.*** Consolidated obligations are recorded at amortized cost.

*Discounts and Premiums.* The Bank amortizes premiums and accretes discounts as well as hedging adjustments on consolidated obligations to interest expense using the contractual method.

*Concessions*. The Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. Concessions paid on consolidated obligations are recorded as a direct deduction from the carrying amount of the debt and amortized using the contractual method. The amortization of such concessions is included in consolidated obligation interest expense.

***Off-Balance Sheet Credit Exposures.*** The Bank evaluates its off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses is recorded in other liabilities with a corresponding adjustment to the provision (reversal) for credit losses. Commitments to purchase MPF Loans are derivatives and therefore do not require an assessment of expected credit losses.

***Mandatorily Redeemable Capital Stock.*** The Bank reclassifies stock subject to redemption from capital stock to a liability after a member provides written notice of redemption, gives notice of intention to withdraw from membership, or attains non-member status by merger or acquisition, relocation, charter termination, voluntary termination or other involuntary termination from membership, because the member's shares will then meet the definition of a mandatorily redeemable financial instrument. Shares meeting this definition are reclassified to a liability at fair value, which is par plus estimated dividends. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repurchase or redemption of mandatorily redeemable capital stock is reflected as a financing cash outflow in the Statements of Cash Flows.

If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from liabilities to capital. After the reclassification, dividends on the capital stock will no longer be classified as interest expense.

***Restricted Retained Earnings (RRE).*** In accordance with the Joint Capital Enhancement Agreement (JCEA) entered into by the Bank, as amended, the Bank allocates on a quarterly basis 20% of its net income to a separate restricted retained earnings account until the account balance equals at least 1% of the Bank's average balance of outstanding consolidated obligations for the current quarter. Additionally, the JCEA provides that amounts in restricted retained earnings in excess of 150% of the Bank's restricted retained earnings minimum (i.e., one percent of the average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter) may be released from restricted retained earnings. These restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. See Note 11 - Capital in this Item 8 for more information.

***Finance Agency Expenses.*** The portion of the Finance Agency's expenses and working capital fund paid by the FHLBanks are allocated among the FHLBanks based on the pro-rata share of the annual assessments (which are based on the ratio between each FHLBank's minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank).

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**Notes to Financial Statements (continued)**

***Office of Finance Expenses.*** The Bank's proportionate share of the OF operating and capital expenditures is calculated using a formula based upon the following components: (1) two-thirds based upon its share of total consolidated obligations outstanding and (2) one-third based upon an equal pro-rata allocation.

***Voluntary Contribution Expenses.*** The Bank's voluntary contributions to housing and community products, including supplemental voluntary contributions to AHP, are recorded in Voluntary contributions expense on the Statements of Income.

Voluntary housing and community products primarily consist of grants and contributions. Voluntary grants and contributions are recognized as an expense in the period in which the grant or contribution is considered an unconditional promise to give.

Supplemental voluntary contributions to AHP restore the amount available for AHP absent the Bank's voluntary contributions and are expensed periodically throughout the year. Supplemental voluntary contributions to AHP are subject to the same regulatory requirements as AHP assessments.

See Note 10 - Affordable Housing Program (AHP) and Voluntary Contributions in this Item 8 for more information.

***AHP Assessments.*** The FHLBank Act requires each FHLBank to establish and fund an AHP, providing subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low- and low- or moderate-income households. The Bank primarily makes the AHP subsidy available to members as a grant. The Bank recognizes the required funding for the AHP as a reduction to earnings and establishes a liability. As allowed per AHP regulations, the Bank can elect to allot fundings based on future periods' required AHP contributions (referred to as Accelerated AHP). The Accelerated AHP allows the Bank to commit and disburse AHP funds to meet the Bank's mission when it would otherwise be unable to do so based on its normal funding mechanism. See Note 10 - Affordable Housing Program (AHP) and Voluntary Contributions in this Item for more information.

**Note 2 – Changes in Accounting Principle and Recently Issued Accounting Standards and Interpretations** 

The Bank did not adopt any new accounting standards during the year ended December 31, 2025. &nbsp;&nbsp;&nbsp;&nbsp;

The following table provides a brief description of recently issued accounting standards which may have an impact on the Bank.

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| | | | |
|:---|:---|:---|:---|
| **Standard** | **Description** | **Effective Date** | **Effect on the Financial Statements or Other Significant Matters** |
| ASU 2025-08: *Financial Instruments - Credit Losses (Topic 326): Purchased Loans* | This ASU expands the population of acquired financial assets subject to the gross-up approach in Topic 326 to include purchased seasoned loans. The gross-up approach requires recognition of the loans at acquisition at their purchase price plus an allowance for credit losses. | This ASU will become effective for the Bank beginning on January 1, 2027. Early adoption is permitted. | The adoption of this ASU is not expected to have a material impact on the Bank's financial statements. |

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**Note 3 – Cash and Due from Banks**

&nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks on the Statements of Condition includes cash on hand, cash items in the process of collection, compensating balances, and amounts due from correspondent banks and the Federal Reserve Bank (FRB). The Bank maintains collected cash balances with commercial banks in return for certain services. These agreements contain no legal restrictions on the withdrawal of funds. The Bank did not have a compensating balance with commercial banks in 2025 or 2024. The average compensating and collected cash balances for the years ended December 31, 2025 and December 31, 2024 were $15.0 million and $9.6 million, respectively.

------

**Notes to Financial Statements (continued)**

**Note 4 – Investments**

The Bank has short-term investments and may make other investments in debt securities, which are classified as trading, AFS, or HTM as further described below.

**Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold**

The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide liquidity. These investments are generally transacted with counterparties that have received a credit rating of BBB or greater (investment grade) by an NRSRO.

Interest-bearing deposits and Federal funds sold are unsecured investments. Federal funds sold are generally transacted on an overnight term. Finance Agency regulations include a limit on the amount of unsecured credit the Bank may extend to a counterparty. At December 31, 2025 and December 31, 2024, all investments in interest-bearing deposits and Federal funds sold were repaid according to the contractual terms; no ACL was recorded for these assets at December 31, 2025 and December 31, 2024. Carrying values of interest-bearing deposits and Federal funds exclude accrued interest receivable which was immaterial for all periods presented. At December 31, 2025 and December 31, 2024, none of these investments were with counterparties rated below BBB or with unrated counterparties.

Securities purchased under agreements to resell are secured investments. Securities purchased under agreements to resell are generally transacted on an overnight term and have standard market practices that include collateral maintenance provisions. As such, they are evaluated regularly to determine that the securities purchased under agreements to resell are fully collateralized. The counterparty is required to deliver additional collateral if the securities purchased under agreements to resell become under-collateralized, generally by the next business day.

At December 31, 2025 and December 31, 2024, all investments in securities purchased under agreements to resell were repaid according to the contractual terms; no ACL was recorded for these assets at December 31, 2025 and December 31, 2024. Carrying value of securities purchased under agreements to resell excludes accrued interest receivable which was immaterial for all periods presented. At December 31, 2025, and December 31, 2024, none of these investments were with counterparties rated below BBB or with unrated counterparties.

**Debt Securities**

The Bank invests in debt securities, which are classified as trading, AFS, or HTM. Within these investments, the Bank is primarily subject to credit risk related to private label MBS that are supported by underlying mortgage or asset-backed loans. In 2007, the Bank discontinued the purchase of private label MBS. The Bank is prohibited by Finance Agency 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.

At December 31, 2025 and at December 31 2024, total investment securities and accrued interest had no net unsettled purchases or sales.

***Trading Securities.*** The following table presents the fair value of trading securities by major security type at December 31, 2025 and December 31, 2024.

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| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| GSE obligations | $**119676** | $149153 |

---

------

**Notes to Financial Statements (continued)**

The following table presents net gains (losses) on trading securities for the years ended December 31, 2025, 2024 and 2023.

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| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Net unrealized gains (losses) on trading securities held at year-end | $**3693** | $(285) | $3458 |
| Net gains (losses) on trading securities sold/matured during the year | **129** | 546 |  |
| Net gains (losses) on trading securities | $**3822** | $261 | $3458 |

---

***AFS Securities.*** The following tables presents AFS securities by major security type at December 31, 2025 and December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Amortized Cost <sup>(1)</sup> | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| <u>Non-MBS:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**4902802** | $**—** | $**9749** | $**(271)** | $**4912280** |
| &nbsp;&nbsp;&nbsp;GSE and TVA obligations | **817747** | **—** | **17326** | **(1010)** | **834063** |
| &nbsp;&nbsp;&nbsp;State or local agency obligations | **181516** | **—** | **10** | **(6693)** | **174833** |
| Total non-MBS | $**5902065** | $**—** | $**27085** | $**(7974)** | $**5921176** |
| <u>MBS:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $**1306993** | $**—** | $**3184** | $**(6295)** | $**1303882** |
| &nbsp;&nbsp;&nbsp;GSE single-family | **4568337** | **—** | **6899** | **(27463)** | **4547773** |
| &nbsp;&nbsp;&nbsp;GSE multifamily | **6278534** |  | **40233** | **(4399)** | **6314368** |
| &nbsp;&nbsp;&nbsp;Private label | **115432** | **(16713)** | **4626** | **(1217)** | **102128** |
| Total MBS | $**12269296** | $**(16713)** | $**54942** | $**(39374)** | $**12268151** |
| Total AFS securities | $**18171361** | $**(16713)** | $**82027** | $**(47348)** | $**18189327** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in thousands) | Amortized Cost <sup>(1)</sup> | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| <u>Non-MBS:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $4112393 | $— | $4283 | $(3721) | $4112955 |
| &nbsp;&nbsp;&nbsp;GSE and TVA obligations | 890230 |  | 18885 | (1991) | 907124 |
| &nbsp;&nbsp;&nbsp;State or local agency obligations | 182220 |  |  | (12884) | 169336 |
| Total non-MBS | $5184843 | $— | $23168 | $(18596) | $5189415 |
| <u>MBS:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $1720328 | $— | $4404 | $(12348) | $1712384 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 4634380 |  | 5162 | (41657) | 4597885 |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 6543485 |  | 19372 | (12193) | 6550664 |
| &nbsp;&nbsp;&nbsp;Private label | 124140 | (14160) | 5235 | (1720) | 113495 |
| Total MBS | $13022333 | $(14160) | $34173 | $(67918) | $12974428 |
| Total AFS securities | $18207176 | $(14160) | $57341 | $(86514) | $18163843 |

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*<u>Note</u>:*

<sup>(1)</sup> Includes adjustments made to the cost basis of investments for accretion, amortization and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $59.1 million and $55.0 million at December 31, 2025 and December 31, 2024.

------

**Notes to Financial Statements (continued)**

The following tables summarize the AFS securities with gross unrealized losses as of December 31, 2025 and December 31, 2024. 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.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Less than 12 Months | Less than 12 Months | Greater than 12 Months | Greater than 12 Months | Total | Total |
| (in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses |
| <u>Non-MBS:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**402742** | $**(39)** | $**49589** | $**(232)** | $**452331** | $**(271)** |
| &nbsp;&nbsp;&nbsp;GSE and TVA obligations | **—** | **—** | **26616** | **(1010)** | **26616** | **(1010)** |
| &nbsp;&nbsp;&nbsp;State or local agency obligations | **594** | **(6)** | **154103** | **(6687)** | **154697** | **(6693)** |
| Total non-MBS | $**403336** | $**(45)** | $**230308** | $**(7929)** | $**633644** | $**(7974)** |
| <u>MBS:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $**118520** | $**(162)** | $**616484** | $**(6133)** | $**735004** | $**(6295)** |
| &nbsp;&nbsp;&nbsp;GSE single-family | **1066790** | **(1336)** | **1264868** | **(26127)** | **2331658** | **(27463)** |
| &nbsp;&nbsp;&nbsp;GSE multifamily | **163121** | **(200)** | **1709961** | **(4199)** | **1873082** | **(4399)** |
| &nbsp;&nbsp;&nbsp;Private label | **1858** | **(26)** | **24089** | **(1191)** | **25947** | **(1217)** |
| Total MBS | $**1350289** | $**(1724)** | $**3615402** | $**(37650)** | $**4965691** | $**(39374)** |
| Total | $**1753625** | $**(1769)** | $**3845710** | $**(45579)** | $**5599335** | $**(47348)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Less than 12 Months | Less than 12 Months | Greater than 12 Months | Greater than 12 Months | Total | Total |
| (in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses |
| <u>Non-MBS:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $874903 | $(1629) | $71918 | $(2092) | $946821 | $(3721) |
| &nbsp;&nbsp;&nbsp;GSE and TVA obligations | 3812 | (38) | 25756 | (1953) | 29568 | (1991) |
| &nbsp;&nbsp;&nbsp;State or local agency obligations | 15399 | (432) | 145948 | (12452) | 161347 | (12884) |
| Total non-MBS | $894114 | $(2099) | $243622 | $(16497) | $1137736 | $(18596) |
| <u>MBS:</u> |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $146724 | $(161) | $775551 | $(12187) | $922275 | $(12348) |
| &nbsp;&nbsp;&nbsp;GSE single-family | 1283490 | (2825) | 1326685 | (38832) | 2610175 | (41657) |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 889299 | (2461) | 2380004 | (9732) | 3269303 | (12193) |
| &nbsp;&nbsp;&nbsp;Private label |  |  | 32890 | (1720) | 32890 | (1720) |
| Total MBS | $2319513 | $(5447) | $4515130 | $(62471) | $6834643 | $(67918) |
| Total | $3213627 | $(7546) | $4758752 | $(78968) | $7972379 | $(86514) |

---

------

**Notes to Financial Statements (continued)**

***Redemption Terms.*** The amortized cost and fair value of AFS securities by contractual maturity as of December 31, 2025 and December 31, 2024 are presented below. Expected maturities of some securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. MBS are not presented by contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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| | | | | |
|:---|:---|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Maturity | Amortized Cost | Fair Value | Amortized Cost | Fair Value |
| <u>Non-MBS:</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $**488836** | $**489345** | $464286 | $464603 |
| &nbsp;&nbsp;&nbsp;Due after one year through five years | **4349934** | **4368488** | 3894415 | 3904699 |
| &nbsp;&nbsp;&nbsp;Due after five years through ten years | **984185** | **988832** | 732897 | 735194 |
| &nbsp;&nbsp;&nbsp;Due after ten years | **79110** | **74511** | 93245 | 84919 |
| Total non-MBS | **5902065** | **5921176** | 5184843 | 5189415 |
| MBS | **12269296** | **12268151** | 13022333 | 12974428 |
| Total AFS securities | $**18171361** | $**18189327** | $18207176 | $18163843 |

---

***Realized Gains (Losses) on AFS Securities.*** The following table provides a summary of proceeds, gross gains and losses on sales of AFS securities for 2025, 2024, and 2023.

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| | | | |
|:---|:---|:---|:---|
| | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Proceeds from sales of AFS securities | $**996298** | $— | $798200 |
| Gross gains on AFS securities | **743** |  | 489 |
| Gross losses on AFS securities | **—** |  | **—** |
| Net realized gains (losses) from sales of AFS securities | $**743** | $— | $489 |

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**Notes to Financial Statements (continued)**

***HTM Securities.*** The following tables presents HTM securities by major security type at December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Amortized Cost <sup>(1)</sup> | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value |
| <u>MBS:</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $**470133** | $**3951** | $**(2219)** | $**471865** |
| &nbsp;&nbsp;&nbsp;GSE single-family | **405197** | **1257** | **(45065)** | **361389** |
| &nbsp;&nbsp;&nbsp;GSE multifamily | **238829** | **—** | **(798)** | **238031** |
| &nbsp;&nbsp;&nbsp;Private label | **29546** | **21** | **(1253)** | **28314** |
| Total MBS | **1143705** | **5229** | **(49335)** | **1099599** |
| Total HTM securities | $**1143705** | $**5229** | $**(49335)** | $**1099599** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in thousands) | Amortized Cost <sup>(1)</sup> | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value |
| <u>MBS:</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. obligations single-family | $635986 | $1416 | $(9814) | $627588 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 382388 | 771 | (61929) | 321230 |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 243913 |  | (8059) | 235854 |
| &nbsp;&nbsp;&nbsp;Private label | 36521 |  | (1801) | 34720 |
| Total MBS | 1298808 | 2187 | (81603) | 1219392 |
| Total HTM securities  | $1298808 | $2187 | $(81603) | $1219392 |

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*<u>Notes</u>:*

<sup>(1)</sup> Includes adjustments made to the cost basis of investments for accretion and amortization and excludes accrued interest receivable of $3.9 million and $4.5 million at December 31, 2025 and December 31, 2024.

***Redemption Terms.*** The HTM securities consisted entirely of MBS, and as such are not presented by contractual maturity because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

***Debt Securities ACL.*** For HTM securities, there was no ACL at December 31, 2025 and December 31, 2024. For AFS securities, the Bank recorded an ACL only on its private label MBS at December 31, 2025 and December 31, 2024.

*AFS Debt Securities - Rollforward of ACL.* The following table presents a rollforward of the ACL on AFS securities for the years ended December 31, 2025 and December 31, 2024.

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| | | |
|:---|:---|:---|
| | Private label MBS | Private label MBS |
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Balance, beginning of period | $**14160** | $11988 |
| Increases (decreases) for securities with a previous ACL or OTTI recorded | **2553** | 2172 |
| Balance, end of period | $**16713** | $14160 |

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*Debt Securities ACL Methodology.* To evaluate investment securities for credit losses the Bank employs the following methodologies by major security type.

*GSE and Other U.S. Obligations.* The Bank invests in GSE and other U.S. obligations, which includes TVA obligations, single-family MBS, and GSE single-family and multifamily MBS. These securities are issued by Federal Agencies or U.S. government corporations and include MBS issued by these same entities that are directly supported by underlying mortgage loans. All of these securities are highly-rated. In the case of U.S. obligations, they carry an explicit government guarantee. In the case of GSE securities, they are purchased under an assumption that the issuers' obligation to pay principal and interest on

------

**Notes to Financial Statements (continued)**

those securities will be honored. As a result, no ACL was recorded on GSE and other U.S. obligations at December 31, 2025 and December 31, 2024.

The Bank only purchases GSE and other U.S. obligations considered investment quality. At December 31, 2025, all of these GSE and other U.S. obligations, based on amortized cost, were rated BBB or above by a NRSRO, based on the lowest long-term credit rating for each security.

*State or Local Agency Obligations.* The Bank invests in state or local agency obligations, such as municipal securities. These securities are subject to credit risk related to a portfolio of state and local agency obligations (i.e., housing finance agency bonds). The Bank has not experienced any payment defaults on these instruments during the years ended December 31, 2025 and December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank only purchases state or local agency obligations considered investment quality. At December 31, 2025, all of these state or local agency obligations, based on amortized cost, were rated BBB or above by a NRSRO, based on the lowest long-term credit rating for each security. These may differ from any internal ratings of the securities by the Bank, if applicable.

The Bank evaluates AFS state or local agency obligations for an ACL based on a credit assessment of the issuer, or guarantor. If the Bank determines that an ACL should be recognized, it is limited to the unrealized loss of the state or local agency obligation, including zero if it is in an unrealized gain position. At December 31, 2025 and December 31, 2024, the Bank expected to receive all cash flows contractually due, and no ACL was recorded on AFS state or local agency obligations.

*Private Label MBS.* The Bank also holds investments in private label MBS. The Bank has not purchased any private label MBS since 2007. However, many of these securities have experienced significant credit deterioration. As of December 31, 2025, 7.9% of private label MBS (AFS and HTM combined, based on amortized cost) were rated BBB or above by a NRSRO and the remaining securities were either rated less than BBB or unrated. To determine whether an ACL is necessary on these securities, the Bank uses cash flow analyses based on an assessment of available information including the structure of the applicable security and certain assumptions.

In addition, the Bank performed a cash flow analysis using a third-party model to assess whether the entire amortized cost basis of its private label MBS securities will be recovered. The projected cash flows are based on a number of assumptions and expectations, and the results of the model can vary with changes in assumptions and expectations. The projected cash flows, determined based on the model approach, reflect a best estimate scenario and include a base case housing price forecast.

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**Notes to Financial Statements (continued)**

**Note 5 – Advances** 

*&nbsp;&nbsp;&nbsp;&nbsp;General Terms.* The Bank offers a wide-range of fixed- and variable-rate advance products with different maturities, interest rates, payment characteristics and optionality. Fixed-rate advances generally have maturities ranging from overnight to 30 years. Variable-rate advances generally have maturities ranging up to 30 years, and the interest rates reset periodically at a fixed spread to SOFR.

The following table details the Bank's advances portfolio by year of redemption and weighted-average interest rate at December 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Redemption | Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate |
| Due in 1 year or less | $**23332978** | **4.04%** | $50974262 | 4.65% |
| Due after 1 year through 2 years | **9454980** | **4.05** | 11301368 | 4.56 |
| Due after 2 years through 3 years | **3640350** | **4.07** | 4861364 | 4.23 |
| Due after 3 years through 4 years | **202445** | **4.18** | 2570166 | 4.50 |
| Due after 4 years through 5 years | **60822** | **4.06** | 162463 | 4.23 |
| Thereafter | **152191** | **3.42** | 158012 | 3.38 |
| Total par value | $**36843766** | **4.05%** | $70027635 | 4.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred prepayment fees | **(67)** |  | (276) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value hedging adjustments | **(23707)** |  | (154126) |  |
| Total book value <sup>(1)</sup> | $**36819992** |  | $69873233 |  |

---

*<u>Note</u>:*

<sup>(1)</sup> Amounts exclude accrued interest receivable of $158.4 million and $372.7 million as of December 31, 2025 and December 31, 2024, respectively.

The Bank offers certain advances to members that provide a member the right, based upon predetermined exercise dates, to prepay the advance prior to maturity without incurring prepayment or termination fees (returnable advances).

The following table summarizes advances by the earlier of year of redemption or next call date as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| | Year of Redemption or <br>Next Call Date | Year of Redemption or <br>Next Call Date |
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Due in 1 year or less | $**23927978** | $51094262 |
| Due after 1 year through 2 years | **8952480** | 11286368 |
| Due after 2 years through 3 years | **3547850** | 4848864 |
| Due after 3 years through 4 years | **202445** | 2477666 |
| Due after 4 years through 5 years | **60822** | 162463 |
| Thereafter | **152191** | 158012 |
| Total par value | $**36843766** | $70027635 |

---

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**Notes to Financial Statements (continued)**

***Interest Rate Payment Terms.*** The following table details interest rate payment terms by year of redemption for advances as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Fixed-rate – overnight | $**2355769** | $1503283 |
| <u>Fixed-rate – term:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due in 1 year or less | **10971285** | 11217969 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | **7905787** | 9708373 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total fixed-rate | $**21232841** | $22429625 |
| <u>Variable-rate:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due in 1 year or less | **10005925** | 38253010 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | **5605000** | 9345000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total variable-rate | $**15610925** | $47598010 |
| Total par value | $**36843766** | $70027635 |

---

***Credit Risk Exposure and Security Terms.*** The Bank's potential credit risk from advances is primarily concentrated in commercial banks. As of December 31, 2025, the Bank had advances of $26.0 billion outstanding to its five largest borrowers, which represented 70.6% of the total principal amount of advances outstanding. Of those five, two had outstanding advances that were in excess of 10% of the Bank's total portfolio at December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2024, the Bank had advances of $56.4 billion outstanding to its five largest borrowers, which represented 80.5% of the total principal amount of advances outstanding. Of those five, two had outstanding advances that were in excess of 10% of the Bank's total portfolio at December 31, 2024.

***Advances ACL.*** The Bank manages its total credit exposure (TCE), which includes advances, letters of credit, advance commitments, and other credit product exposure, through an integrated approach. This approach generally requires a credit limit to be established for each borrower and an ongoing review of each borrower's financial condition in conjunction with the Bank's collateral and lending policies to limit risk of loss while balancing each borrower's need for a reliable source of funding. Eligible collateral and collateral requirements can vary based on the type of member: commercial banks, insurance companies, credit unions, de novo banks and CDFIs.

In addition, the Bank lends to its members in accordance with applicable law. Among other things, the FHLBank Act requires the Bank to obtain collateral to fully secure credit products. The estimated value of the collateral required to secure each member's credit products is calculated by applying collateral weightings, or haircuts, to the value of the collateral. The Bank primarily accepts cash, certain investment securities, residential mortgage loans, and other real estate related assets as collateral. In addition, Community Financial Institutions (CFIs) are eligible to utilize expanded statutory collateral provisions for small business, agriculture, and community development loans. The Bank's capital stock owned by the borrowing member is pledged as secondary collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and overall credit exposure to the borrower. The Bank can require additional or substitute collateral to help ensure that credit products continue to be secured by adequate collateral. Management of the Bank believes that these policies effectively manage the Bank's credit risk from credit products.

Based upon the financial condition of the member, the Bank either allows a member to retain physical possession of the collateral assigned to the Bank or requires the member to specifically deliver physical possession or control of the collateral to the Bank or its custodians. However, regardless of the member's financial condition, the Bank always takes possession or control of securities used as collateral. The Bank perfects its security interest in all pledged collateral. Applicable law affords any security interest granted to the Bank by a member (or an affiliate of a member) priority over the claims or rights of any other party, except for claims or rights of a third party that would be otherwise entitled to priority under applicable law and that are held by a bona fide purchaser for value or by a secured party holding a prior perfected security interest.

The Bank evaluates the credit quality of advances using a risk-based approach and taking into consideration each borrower's financial strength. This assessment considers the financial condition, the payment status, and collateral types and concentration levels to be the primary indicators of credit quality on its credit products. The Bank's assessment of a member's financial condition may require certain risk mitigation actions, including reduced collateral weights, delivery of pledged collateral, reduced advance tenor, and change in availability of certain credit products. At December 31, 2025 and December

------

**Notes to Financial Statements (continued)**

31, 2024, the Bank had rights to collateral on a member-by-member basis with a value in excess of its outstanding extensions of credit.

The Bank continues to evaluate and, as necessary, make changes to its collateral guidelines based on current market conditions. At December 31, 2025 and December 31, 2024, the Bank did not have any credit products that were past due, on nonaccrual status, or considered impaired. In addition, the Bank did not have any modifications related to advances with borrowers experiencing financial difficulties during the year of 2025.

The Bank evaluates its advances for an ACL on a collective, or pooled basis unless an individual assessment is deemed necessary because the instruments do not possess similar risk characteristics. The Bank pools advances by member type, as noted above. Based on the collateral held as security, the Bank's credit extension and collateral policies and repayment history on advances, including that the Bank has not incurred any credit losses since inception, the Bank has not recorded any ACL at December 31, 2025 or December 31, 2024.

------

**Notes to Financial Statements (continued)**

**Note 6 – Mortgage Loans Held for Portfolio** 

Under the MPF Program, the Bank invests in mortgage loans that it purchases from its participating members and housing associates. The Bank's participating members originate, service, and credit enhance residential mortgage loans that are sold to the Bank. See Note 13 - Transactions with Related Parties in this Item for further information regarding transactions with related parties.

The following table presents balances as of December 31, 2025 and December 31, 2024 for mortgage loans held for portfolio.

---

| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Fixed-rate long-term single-family mortgages <sup>(1)</sup> | $**5098101** | $4674020 |
| Fixed-rate medium-term single-family mortgages <sup>(2)</sup> | **77064** | 95558 |
| Total par value | **5175165** | 4769578 |
| &nbsp;&nbsp;&nbsp;Premiums | **73778** | 66974 |
| &nbsp;&nbsp;&nbsp;Discounts | **(11766)** | (12239) |
| &nbsp;&nbsp;&nbsp;Hedging adjustments | **(14400)** | (5432) |
| Total mortgage loans held for portfolio <sup>(3)</sup> | **5222777** | 4818881 |
| Allowance for credit losses on mortgage loans | **(2475)** | (2429) |
| Mortgage loans held for portfolio, net | $**5220302** | $4816452 |

---

*<u>Notes:</u>*

<sup>(1)</sup> Long-term is defined as an original term of greater than 15 years and up to 30 years.

<sup>(2)</sup> Medium-term is defined as an original term of 15 years or less.

<sup>(3)</sup> Amounts exclude accrued interest receivable of $33.6 million at December 31, 2025 and $27.4 million at December 31, 2024.

The following table details the par value of mortgage loans held for portfolio outstanding categorized by type as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Conventional loans | $**5090977** | $4677261 |
| Government-guaranteed/insured loans | **84188** | 92317 |
| Total par value | $**5175165** | $4769578 |

---

*Conventional MPF Loans - Credit Enhancements (CE).* The conventional MPF loans held for portfolio are required to be credit enhanced as determined through the use of a validated model so the risk of loss is limited to the losses within the Bank's risk tolerance. The Bank and its PFIs share the risk of credit losses on conventional MPF loan products held for portfolio, by structuring potential losses into layers with respect to each master commitment. After considering the borrower's equity and any PMI, credit losses on mortgage loans in a master commitment are then absorbed by the Bank's FLA. If applicable to the MPF product, the Bank will withhold a PFI's scheduled performance CE fee in order to reimburse the Bank for any losses allocated to the FLA (recaptured CE Fees). If the FLA is exhausted, the credit losses are then absorbed by the PFI up to an agreed upon CE amount. The CE amount could be covered by SMI obtained by the PFI. Thereafter, any remaining credit losses are absorbed by the Bank.

*Payment Status of Mortgage Loans.* Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Past due loans are those where the borrower has failed to make timely payments of principal and/or interest in accordance with the terms of the loan. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.

------

**Notes to Financial Statements (continued)**

***Credit Quality Indicator for Conventional Mortgage Loans.*** The following table presents the payment status for conventional mortgage loans at December 31, 2025 and December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Origination Year | Origination Year |  |
| Payment Status, at amortized cost <sup>(1)</sup> | Prior to 2021 | 2021 to 2025 | Total |
| Past due 30-59 days | $**35717** | $**29782** | $**65499** |
| Past due 60-89 days | **9369** | **8636** | **18005** |
| Past due 90 days or more | **11683** | **8675** | **20358** |
| &nbsp;&nbsp;&nbsp;Total past due loans | **56769** | **47093** | **103862** |
| &nbsp;&nbsp;&nbsp;Current loans | **2077766** | **2955321** | **5033087** |
| &nbsp;&nbsp;&nbsp;Total conventional loans | $**2134535** | $**3002414** | $**5136949** |
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | Origination Year | Origination Year |  |
| Payment Status, at amortized cost <sup>(1)</sup> | Prior to 2020 | 2020 to 2024 | Total |
| Past due 30-59 days | $21986 | $19827 | $41813 |
| Past due 60-89 days | 5694 | 6238 | 11932 |
| Past due 90 days or more | 12151 | 9409 | 21560 |
| &nbsp;&nbsp;&nbsp;Total past due loans | 39831 | 35474 | 75305 |
| &nbsp;&nbsp;&nbsp;Current loans | 1443397 | 3205963 | 4649360 |
| &nbsp;&nbsp;&nbsp;Total conventional loans | $1483228 | $3241437 | $4724665 |

---

*<u>Note:</u>*

<sup>(1)</sup> The amortized cost at December 31, 2025 and December 31, 2024 excludes accrued interest receivable.

***Other Delinquency Statistics.*** The following table presents the delinquency statistics for the Bank's mortgage loans at December 31, 2025 and December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (dollars in thousands) <sup>(1)</sup> | Conventional MPF Loans | Government-Guaranteed or Insured Loans | Total |
| In process of foreclosure, included above <sup>(2)</sup> | $**5897** | $**393** | $**6290** |
| Serious delinquency rate <sup>(3)</sup> | **0.4%** | **2.0%** | **0.4%** |
| Past due 90 days or more still accruing interest | $**—** | $**1693** | $**1693** |
| Loans on nonaccrual status | $**24074** | $**—** | $**24074** |
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (dollars in thousands) <sup>(1)</sup> | Conventional MPF Loans | Government-Guaranteed or Insured Loans | Total |
| In process of foreclosure, included above <sup>(2)</sup> | $5171 | $301 | $5472 |
| Serious delinquency rate <sup>(3)</sup> | 0.5% | 3.0% | 0.5% |
| Past due 90 days or more still accruing interest | $— | $2814 | $2814 |
| Loans on nonaccrual status | $25173 | $— | $25173 |

---

*<u>N</u><u>otes:</u>*

<sup>(1)</sup> Amounts presented at amortized cost.

<sup>(2)</sup> 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 dependent on their delinquency status.

<sup>(3)</sup> Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio class.

------

**Notes to Financial Statements (continued)**

***Mortgage Loans Held for Portfolio ACL.*** *Conventional MPF - Expected Losses.* Conventional loans are evaluated collectively when similar risk characteristics exist. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. The Bank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. The Bank uses a third-party model to estimate expected credit losses over the life of the loans. The estimate of the expected credit losses includes coverage of certain losses by PMI, if applicable. The model relies on a number of inputs, such as housing price forecasts, interest rates and unemployment rates, as well as historical borrower behavior experience. The Bank may incorporate a qualitative adjustment to the model results, if deemed appropriate, based on current market conditions or results.

The estimated credit loss on collateral dependent loans is charged-off against the reserve. However, if the estimated loss can be recovered through CE, a receivable is established, resulting in a net charge-off. 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. The expected credit loss of a collateral dependent mortgage loan to determine the charge-off is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. The estimate of the expected credit losses includes coverage of certain losses by PMI, if applicable. The estimated fair value of the collateral is determined based on a value provided by a third-party's retail-based Automated Valuation Model (AVM). The Bank adjusts the AVM based on the amount it has historically received on liquidations. Expected recoveries of prior charge-offs, as determined by a third-party model, if any, are included in the allowance for credit losses.

*Conventional MPF - Expected Recoveries.* The Bank recognizes a recovery through the provision (reversal) for credit losses when expected lifetime credit losses are less than the amounts previously charged-off. This includes potentially recording a negative ACL for certain of the Bank's MPF products. The reduction to the ACL for expected recoveries is partially offset by a reversal of expected CE, resulting in a net impact to the Bank's Statements of Condition.

*Conventional MPF - Application of CE.* The Bank also incorporates associated CE, if any, to determine its estimate of expected credit losses. The Bank records an ACL for expected credit losses that exceed the amount the Bank expects to receive from available CE. Potential recoveries from CE for conventional loans are evaluated at the individual master commitment level to determine the CE available to recover losses on loans under each individual master commitment.

*Conventional MPF - Rollforward of ACL*

---

| | | | |
|:---|:---|:---|:---|
| (in thousands) | 2025 | 2024 | 2023 |
| Balance, beginning of period | $**2429** | $3018 | $3240 |
| (Charge-offs) Recoveries, net <sup>(1)</sup> | **(250)** | (469) | (166) |
| Provision (reversal) for credit losses | **296** | (120) | (56) |
| Balance, end of period | $**2475** | $2429 | $3018 |

---

*<u>Note:</u>*

<sup>(1)</sup> Net charge-offs that the Bank does not expect to recover through CE receivable.

*Government-Guaranteed or -Insured Mortgage Loans.* The Bank invests in government-guaranteed or insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or insured mortgage loans are those insured or guaranteed by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), the Rural Housing Service (RHS) of the Department of Agriculture and/or by Housing and Urban Development (HUD). The servicer provides and maintains insurance or a guarantee from the applicable government agency. Any losses on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicer. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by the guarantee or insurance, but in such instance, the Bank would have recourse against the servicer for such failure. Based on the Bank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial. Consequently, the Bank has not recorded an ACL for government-guaranteed or -insured mortgage loans at December 31, 2025 or December 31, 2024. Furthermore, none of these mortgage loans have been placed on non-accrual 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.

*Real Estate Owned (REO)*. The amount of REO reported in Other assets on the Statements of Condition was immaterial at both December 31, 2025 and December 31, 2024.

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**Notes to Financial Statements (continued)**

**Note 7 – Derivatives and Hedging Activities**

***Nature of Business Activity.*** The Bank is exposed to interest rate risk primarily from the effect of interest rate changes on its interest-earning assets and interest-bearing liabilities that finance these assets. The goal of the Bank's interest rate risk management strategy is not to eliminate interest rate risk but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures that include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin and average maturity of interest-earning assets, and interest-bearing liabilities.

Consistent with Finance Agency requirements, the Bank enters into derivatives to manage the interest rate risk exposures inherent in otherwise unhedged assets and funding positions and to achieve the Bank's risk management objectives. Finance Agency regulation and the Bank's Risk Governance Policy prohibit trading in or the speculative use of derivative instruments and limit credit risk arising from these instruments. Derivatives are an integral part of the Bank's financial management strategy. The Bank may use derivatives to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce interest rate sensitivity and repricing gaps of assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preserve a favorable interest rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mitigate the adverse earnings effects of the shortening or extension of certain assets (e.g., advances or mortgage assets) and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manage embedded options in assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduce funding costs by combining a derivative with a consolidated obligation as the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• protect the value of existing asset or liability positions or firm commitments.

***Types of Derivatives.*** The Bank's Risk Governance Policy establishes guidelines for its use of derivatives. The Bank can use instruments such as the following to reduce funding costs and to manage exposure to interest rate risks inherent in the normal course of business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rate swaps;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rate swaptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rate caps or floors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• futures and forward contracts.

*Interest Rate Swaps.* An interest rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional amount at a variable-rate index for the same period of time. The variable rate indexes received or paid by the Bank on derivatives are SOFR or Federal Funds Overnight Index Swap (OIS) rate.

*Swaptions.* A swaption is an option that gives the buyer the right to enter into a specified interest rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank when it is planning to lend or borrow funds in the future against future interest rate changes. The Bank may enter into both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date and a receiver swaption is the option to receive fixed interest payments at a later date.

*Interest Rate Cap and Floor Agreements.* In an interest rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps and floors are designed as protection against the interest rate on a variable-rate asset or liability falling below or rising above a certain level.

&nbsp;&nbsp;&nbsp;&nbsp;*Futures and Forwards Contracts*. Futures and forwards contracts give the buyer the right to buy or sell a specific type of asset at a specific time at a given price. For example, certain mortgage purchase commitments entered into by the Bank are considered derivatives. The Bank may hedge these commitments by selling to-be-announced (TBA) mortgage-backed securities for forward settlement. A TBA represents a forward contract for the sale of MBS at a future agreed upon date for an established price.

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**Notes to Financial Statements (continued)**

***Application of Derivatives.*** The Bank documents at inception all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing hedge effectiveness for all derivatives designated in an accounting hedging relationship. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition, or (2) firm commitments.

The Bank has the following types of hedges qualifying for hedge accounting treatment (qualifying hedges) and hedges that do not qualify for hedge accounting treatment (non-qualifying hedges):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a qualifying fair value hedge of an associated financial instrument or firm commitment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a non-qualifying economic hedge to manage certain defined risks on the Statements of Condition. These hedges are primarily used to: (1) manage mismatches between the coupon features of assets and liabilities, (2) offset prepayment risks in certain assets, (3) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted, or (4) reduce exposure to reset risk.

The Bank accounts for fair value hedging using long-haul hedge accounting. Refer to Note 1 - Summary of Significant Accounting Policies in this Item for more details.

Derivative transactions may be executed either with a counterparty (referred to as uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Derivatives Clearing Organization (referred to as cleared derivatives). The Bank is not a derivatives dealer and does not trade derivatives for short-term profit. The Bank transacts uncleared derivatives with counterparties that are large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations.

***Types of Hedged Items.*** The Bank has the following types of hedged items:

*Investments.* The Bank primarily invests in certificates of deposit, U.S. Treasuries, U.S. agency obligations, MBS, and the taxable portion of state or local housing finance agency obligations, which may be classified as HTM, AFS or trading securities. The interest rate and prepayment risks associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest rate risk by funding investment securities with consolidated obligations that have call features or by hedging the prepayment risk with caps or floors, callable swaps or swaptions. The Bank may manage duration risk by funding investment securities with consolidated obligations that contain call features. The Bank may also manage the risk arising from changing market prices and volatility of investment securities by entering into economic derivatives that generally offset the changes in fair value of the securities. Derivatives hedging trading securities (carried at fair value) or HTM securities (carried at amortized cost) are economic hedges. Derivatives hedging AFS securities may qualify as a fair value hedge or may be an economic hedge.

*Advances.* The Bank offers a wide range of fixed- and variable-rate advance products with different maturities, interest rates, payment characteristics, and optionality. The Bank may use derivatives to manage the repricing and/or options characteristics of advances to match more closely the characteristics of the funding liabilities. In general, whenever a member executes a fixed-rate advance or a variable-rate advance with embedded options, the Bank may simultaneously execute a derivative that offsets the terms and embedded options, if any, in the advance. For example, the Bank may hedge a fixed-rate advance with an interest rate swap where the Bank pays a fixed-rate and receives a variable-rate, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair value hedge. In addition, the Bank may hedge a callable, prepayable or convertible advance by entering into a cancellable interest-rate swap.

*Mortgage Loans.* The Bank invests in fixed-rate mortgage loans. The prepayment options embedded in these mortgage loans can result in extensions or contractions in the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest rate and prepayment risks associated with mortgage loans through a combination of debt issuance and, at times, derivatives, such as interest rate caps and floors, swaptions and callable swaps. Although these derivatives are valid economic hedges against the prepayment risk of the loans, they are not specifically linked to individual loans and, therefore, do not receive hedge accounting.

*Consolidated Obligations.* The Bank may enter into derivatives to hedge the interest rate risk associated with its specific debt issuances. The Bank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation.

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**Notes to Financial Statements (continued)**

For instance, in a typical transaction, fixed-rate consolidated obligations are issued by the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows designed to mirror, in timing and amount, the cash outflows the Bank pays on the consolidated obligation. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances. The fixed-rate obligation and matching derivative are treated as fair value hedging relationships.

&nbsp;&nbsp;&nbsp;&nbsp;This strategy of issuing consolidated obligations while simultaneously entering into derivatives enables the Bank to offer a wider range of attractively-priced advances to its members and may allow the Bank to reduce its funding costs. The continued attractiveness of this strategy depends on yield relationships between the Bank's consolidated obligations and derivative markets. If conditions change, the Bank may alter the types or terms of the consolidated obligations that it issues.

*Firm Commitments.* The Bank's mortgage loan purchase commitments are considered derivatives and are recorded at fair value. When the mortgage loan purchase commitment derivative settles, the current market value of the commitment is included with the basis of the mortgage loan and amortized accordingly. Because the market in which the purchase of MPF loans differs from the principal market, the transaction price may not equal fair value on the date of the inception of the commitment and may result in a gain or loss for the Bank.

The Bank may also hedge a firm commitment for a forward starting advance through the use of an interest rate swap. In this case, the interest-rate swap functions as the hedging instrument for both the firm commitment and the subsequent advance and is treated as a fair value hedge. Because the firm commitment ends at the same time that the advance is settled, the fair value change associated with the firm commitment is effectively rolled into the basis of the advance.

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**Notes to Financial Statements (continued)**

***Financial Statement Effect and Additional Financial Information.*** *Derivative Notional Amounts*. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives reflects the Banks' involvement in the various classes of financial instruments and represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged and any offsets between the derivatives and the items being hedged. Additionally, notional values are not meaningful measures of the risks associated with derivatives.

The following tables summarize the notional amount and fair value of derivative instruments and total derivatives assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Notional Amount of Derivatives | Derivative Assets | Derivative Liabilities |
| <u>Derivatives designated as hedging instruments:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $**53556210** | $**53257** | $**118379** |
| <u>Derivatives not designated as hedging instruments:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $**5981376** | $**24689** | $**7854** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps or floors | **2600000** | **1151** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage delivery commitments | **33276** | **6** | **598** |
| Total derivatives not designated as hedging instruments: | **8614652** | **25846** | **8452** |
| Total derivatives before netting and collateral adjustments | $**62170862** | $**79103** | $**126831** |
| Netting adjustments and cash collateral <sup>(1)</sup> |  | **271014** | **(124837)** |
| Total derivative assets and total derivative liabilities |  | $**350117** | $**1994** |

---

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in thousands) | Notional Amount of Derivatives | Derivative Assets | Derivative Liabilities |
| <u>Derivatives designated as hedging instruments:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $45422034 | $58925 | $357182 |
| <u>Derivatives not designated as hedging instruments:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $2667496 | $4230 | $14656 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps or floors | 2225000 | 4237 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage delivery commitments | 20561 | 7 | 237 |
| Total derivatives not designated as hedging instruments | 4913057 | 8474 | 14893 |
| Total derivatives before netting and collateral adjustments | $50335091 | $67399 | $372075 |
| Netting adjustments and cash collateral <sup>(1)</sup> |  | 286230 | (363409) |
| Total derivative assets and total derivative liabilities |  | $353629 | $8666 |

---

*<u>Note:</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed by the Bank with the same clearing agent and/or counterparties. Cash collateral posted including accrued interest was $411.3 million for December 31, 2025 and $658.4 million for December 31, 2024. Cash collateral received was $15.5 million for December 31, 2025 and $8.8 million for December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;

------

**Notes to Financial Statements (continued)**

The following table presents, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships, which also includes amortization of basis adjustments related to hedged items in discontinued fair value hedging relationships and the impact of those derivatives on the Bank's net interest income. Also included is the amortization of basis adjustments related to mortgage delivery commitments, which are characterized as derivatives, but are not designated in fair value hedging relationships.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | <u>2025</u> | <u>2025</u> | <u>2025</u> | <u>2025</u> | <u>2025</u> |
| Hedged item type | Advances | AFS securities | Mortgage loans held for portfolio | Consolidated obligations – discount notes | Consolidated obligations – bonds |
| Total interest income/ (expense) | $**2348952** | $**908192** | $**197313** | $**(423878)** | $**(3078274)** |
| Gains/(losses) on derivative | $**(130136)** | $**(265788)** | $**—** | $**1165** | $**238600** |
| Gains/ (losses) on hedged item | **130417** | **264987** | **830** | **1346** | **(238239)** |
| Net interest settlements | **95658** | **135429** | **—** | **(1987)** | **(216193)** |
| Effect of derivatives on net interest income | $**95939** | $**134628** | $**830** | $**524** | $**(215832)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | <u>2024</u> | <u>2024</u> | <u>2024</u> | <u>2024</u> | <u>2024</u> |
| Hedged item type | Advances | AFS securities | Mortgage loans held for portfolio | Consolidated obligations – discount notes | Consolidated obligations – bonds |
| Total interest income/ (expense) | $4095951 | $984269 | $168642 | $(601437) | $(4664926) |
| Gains/(losses) on derivative | $(60726) | $58698 | $— | $1811 | $283834 |
| Gains/ (losses) on hedged item | 61022 | (59371) | (206) | (3178) | (282637) |
| Net interest settlements | 289176 | 207991 |  | (5227) | (492232) |
| Effect of derivatives on net interest income | $289472 | $207318 | $(206) | $(6594) | $(491035) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | <u>2023</u> | <u>2023</u> | <u>2023</u> | <u>2023</u> | <u>2023</u> |
| Hedged item type | Advances | AFS securities | Mortgage loans held for portfolio | Consolidated obligations – discount notes | Consolidated obligations – bonds |
| Total interest income/ (expense)  | $4218997 | $720973 | $148432 | $(1118881) | $(3953400) |
| Gains/(losses) on derivative | $(156240) | $(189980) | $— | $6221 | $452228 |
| Gains/ (losses) on hedged item | 156538 | 189472 | (480) | (6685) | (453359) |
| Net interest settlements | 315859 | 189348 |  | (8941) | (628906) |
| Effect of derivatives on net interest income | $316157 | $188840 | $(480) | $(9405) | $(630037) |

---

------

**Notes to Financial Statements (continued)**

The following table presents the cumulative amount of fair value hedging adjustments and the related carrying amount of the hedged items.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| Hedged item type | Advances | AFS securities | Consolidated obligations – discount notes | Consolidated obligations – bonds |
| Amortized cost of hedged asset/liability <sup>(1)</sup> | $**12068299** | $**9799500** | $**14814633** | $**16589988** |
| Basis adjustments for active hedge relationships included in amortized cost | $**(23668)** | $**(118369)** | $**1459** | $**(98044)** |
| Basis adjustments for discontinued hedge relationships included in amortized cost | **(39)** | **506** | **—** | **—** |
| Total amount of fair value hedging basis adjustments | $**(23707)** | $**(117863)** | $**1459** | $**(98044)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in thousands) | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| Hedged item type | Advances | AFS securities | Consolidated obligations – discount notes | Consolidated obligations – bonds |
| Amortized cost of hedged asset/liability <sup>(1)</sup> | $13682797 | $8656149 | $4637983 | $17551788 |
| Basis adjustments for active hedge relationships included in amortized cost | $(153830) | $(383451) | $2806 | $(336283) |
| Basis adjustments for discontinued hedge relationships included in amortized cost | (296) | 600 |  |  |
| Total amount of fair value hedging basis adjustments | $(154126) | $(382851) | $2806 | $(336283) |

---

*<u>Note:</u>*

<sup>(1)</sup> Includes only the portion of amortized cost representing the hedged items in active or discontinued fair value hedging relationships. Amortized cost includes fair value hedging adjustments.

The following table presents net gains (losses) related to derivatives not designated as hedging instruments in noninterest income.

---

| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Derivatives not designated as hedging instruments: |  |  |  |
| <u>Economic hedges:</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $**(11929)** | $6015 | $566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate caps or floors | **(5053)** | (1866) | (8048) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest settlements | **4417** | 11742 | 9884 |
| Mortgage delivery commitments | **(10016)** | (5891) | (641) |
| Other | **1** | 2 | 1 |
| Total net gains (losses) related to derivatives not designated as hedging instruments | $**(22580)** | $10002 | $1762 |
| Other - price alignment amount on cleared derivatives <sup>(1)</sup> | **(186)** | (1486) | (1832) |
| Net gains (losses) on derivatives | $**(22766)** | $8516 | $(70) |

---

*<u>Note:</u>*

<sup>(1)</sup> This amount is for derivatives for which variation margin is characterized as a daily settled contract.

***Managing Credit Risk on Derivatives.*** The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions. The Bank manages counterparty credit risk through credit analyses of derivative counterparties, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations.

------

**Notes to Financial Statements (continued)**

*Uncleared Derivatives.* For uncleared derivatives, the degree of credit risk depends on the extent to which netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives.

As of December 31, 2025, the Bank did not exceed initial margin thresholds and was not required to post two-way initial margin. If the Bank's aggregate uncleared derivative transactions exposure to a counterparty exceeds the threshold, certain investment securities are required to be posted and held at a third-party custodian. The counterparty is entitled to a security interest in those securities which do not change ownership except upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding.

Generally, the Bank's ISDA agreements for uncleared derivatives have collateral delivery thresholds set to zero (subject to minimum transfer amounts).

&nbsp;&nbsp;&nbsp;&nbsp;*Cleared Derivatives*. For cleared derivatives, Derivative Clearing Organizations (Clearing Houses) are the Bank's counterparties. The Clearing Houses notify the clearing agent of the required initial and variation margin. The requirement that the Bank post initial margin and exchange variation margin settlement payments through the clearing agent, which notifies the Bank on behalf of the Clearing Houses, exposes the Bank to institutional credit risk in the event that the clearing agent or the Clearing Houses fail to meet their respective obligations. The use of cleared derivatives is intended to mitigate credit risk exposure through the use of a central counterparty instead of individual counterparties. Collateral postings and variation margin settlement payments are made daily, through a clearing agent, for changes in the value of cleared derivatives. Initial margin is the amount calculated based on anticipated exposure to future changes in the value of a swap and protects the Clearing Houses from market risk in the event of default by one of their respective clearing agents. Variation margin is paid daily to settle the exposure arising from changes in the market value of the position. The Bank uses either CME Clearing or LCH Ltd as the Clearing House for cleared derivative transactions. Variation margin payments are characterized as settled to market, rather than collateral. Initial margin is considered collateralized to market.

&nbsp;&nbsp;&nbsp;&nbsp;Based on credit analyses and collateral requirements, the Bank does not anticipate credit losses related to its derivative agreements. See Note 14 - Estimated Fair Values in this Item for discussion regarding the Bank's fair value methodology for derivative assets and liabilities, including an evaluation of the potential for the fair value of these instruments to be affected by counterparty credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;For cleared derivatives, the Clearing House determines initial margin requirements and generally credit ratings are not factored into the determination. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to, credit rating downgrades. The Bank was not required by its clearing agents to post additional initial margin at December 31, 2025.

***&nbsp;&nbsp;&nbsp;&nbsp;Offsetting of Derivative Assets and Derivative Liabilities.*** When it has met the netting requirements, the Bank presents derivative instruments, related cash collateral, received or pledged and associated accrued interest on a net basis by clearing agent and/or by counterparty. The Bank 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 Clearing Houses or the Bank's clearing agent, or both. Based on this analysis, the Bank nets derivative fair values on all of its transactions through a particular clearing agent with a particular Clearing House (including settled variation margin) into one net asset or net liability exposure. Initial margin posted to the Clearing House is presented as a derivative asset.

------

**Notes to Financial Statements (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;The following tables present separately the fair value of derivative instruments meeting or not meeting netting requirements. Gross recognized amounts do not include the related collateral received from or pledged to counterparties. Net amounts reflect the adjustments of collateral received from or pledged to counterparties.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | | |
| <u>(in thousands)</u> | Gross Recognized Amount | Gross Amounts of Netting Adjustments and Cash Collateral | Net amounts after netting adjustments and cash collateral | Derivative Instruments Not Meeting Netting Requirements <sup>(1)</sup> | Total Derivative Assets and Total Derivative Liabilities |
| <u>Derivative assets</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $**62698** | $**(61535)** | $**1163** | $**6** | $**1169** |
| &nbsp;&nbsp;&nbsp;Cleared | **16399** | **332549** | **348948** |  | **348948** |
| Total derivative assets | $**79097** | $**271014** | $**350111** | $**6** | $**350117** |
| <u>Derivative liabilities</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $**125345** | $**(123949)** | $**1396** | $**598** | $**1994** |
| &nbsp;&nbsp;&nbsp;Cleared | **888** | **(888)** | **—** | **—** | **—** |
| Total derivative liabilities | $**126233** | $**(124837)** | $**1396** | $**598** | $**1994** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | | |
| <u>(in thousands)</u> | Gross Recognized Amount | Gross Amounts of Netting Adjustments and Cash Collateral | Net amounts after netting adjustments and cash collateral | Derivative Instruments Not Meeting Netting Requirements <sup>(1)</sup> | Total Derivative Assets and Total Derivative Liabilities |
| <u>Derivative assets</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $64028 | $(62931) | $1097 | $7 | $1104 |
| &nbsp;&nbsp;&nbsp;Cleared | 3364 | 349161 | 352525 |  | 352525 |
| Total derivative assets | $67392 | $286230 | $353622 | $7 | $353629 |
| <u>Derivative Liabilities</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Uncleared | $370972 | $(362543) | $8429 | $237 | $8666 |
| &nbsp;&nbsp;&nbsp;Cleared | 866 | (866) |  |  |  |
| Total derivative liabilities | $371838 | $(363409) | $8429 | $237 | 8666 |

---

*<u>Note:</u>*

<sup>(1)</sup> Represents derivatives that are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

------

**Notes to Financial Statements (continued)**

**Note 8 – Deposits**

The Bank offers demand and overnight deposits to both members and to qualifying nonmembers and term deposits to members. A member that services mortgage loans may deposit with the Bank funds collected in connection with the mortgage loans, pending disbursement of these funds. The Bank classifies these funds as other deposits. Deposits classified as demand, overnight, or other pay interest based on a daily interest rate.

The following table details interest-bearing and noninterest-bearing deposits as of December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in thousands) | 2025 | 2024 |
| <u>Interest-bearing:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Demand and overnight | $**516223** | $729781 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **27815** | 10010 |
| Total interest-bearing deposits | $**544038** | $739791 |
| <u>Noninterest-bearing:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Demand and overnight | $**—** | $490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **46747** | 34602 |
| Total noninterest-bearing deposits | $**46747** | $35092 |
| Total deposits | $**590785** | $774883 |

---

**Note 9 – Consolidated Obligations**

Consolidated obligations consist of bonds and discount notes. The FHLBanks issue consolidated obligations through the OF as their agent. In connection with each debt issuance, each FHLBank specifies the amount of debt it wants to have issued on its behalf. The OF tracks the amount of debt issued on behalf of each FHLBank. The Bank records as a liability its specific portion of consolidated obligations for which it is the primary obligor.

The Finance Agency and the U.S. Secretary of the Treasury oversee the issuance of FHLBank debt through the OF. Bonds may be issued to raise short-, intermediate-, and long-term funds for the FHLBanks and are not subject to any statutory or regulatory limits on their maturity. Discount notes are issued primarily to raise short-term funds and have original maturities of up to one year. These notes generally sell at less than their face amount and are redeemed at par value when they mature.

Although the Bank is primarily liable for its portion of consolidated obligations, the Bank is also jointly and severally liable with the other ten FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligations whether or not the consolidated obligation represents a primary liability of such FHLBank.

Although an FHLBank has never paid the principal or interest payments due on a consolidated obligation on behalf of another FHLBank, if one FHLBank is required to make such payments, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the non-complying FHLBank for any payments made on its behalf and other associated costs, including interest, as determined by the Finance Agency. If the Finance Agency determines that the non-complying FHLBank is unable to satisfy its repayment obligations, then the Finance Agency may allocate the outstanding liabilities of the non-complying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank's participation in all consolidated obligations outstanding. However, the Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. The par amounts of the 11 FHLBanks' outstanding consolidated obligations were $1,151.8 billion at December 31, 2025 and $1,193.0 billion at December 31, 2024.

Regulations require the Bank to maintain unpledged qualifying assets equal to its participation of the consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; obligations, participations, or other instruments of or issued by Fannie Mae or Ginnie Mae; mortgages, obligations or other securities which are or ever have been sold by Freddie Mac; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the Bank is located. Any assets subject to a lien or pledge for the benefit of holders of any issue of consolidated obligations are treated as if they are free from lien or pledge for purposes of compliance with these regulations.

------

**Notes to Financial Statements (continued)**

***General Terms.*** Consolidated obligations are issued with either fixed-rate coupon payment terms or variable-rate coupon payment terms that are indexed to specified indices, such as SOFR. To meet the specific needs of certain investors in consolidated obligations, both fixed-rate bonds and variable-rate bonds may contain features which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank may enter into derivatives containing offsetting features that effectively convert the terms of the bond to those of a simple variable-rate bond or a fixed-rate bond. The Bank has no outstanding consolidated obligations denominated in currencies other than U.S. dollars.

***Interest Rate Payment Terms.*** With respect to interest payments, consolidated obligation bonds may also have the following terms:

*<u>Step-up Bonds</u>* generally pay interest at increasing fixed rates at specified intervals over the life of the bond. These bonds generally contain provisions enabling the Bank to call bonds at its option on the step-up dates.

The following table details interest rate payment terms for the Bank's consolidated obligation bonds at December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| <u>Par value of consolidated bonds:</u> |  |  |
| &nbsp;&nbsp;&nbsp;Fixed-rate | $**28211750** | $26415025 |
| &nbsp;&nbsp;&nbsp;Step-up | **1075000** | 1341000 |
| &nbsp;&nbsp;&nbsp;Floating-rate | **21600500** | 60539400 |
| Total par value | $**50887250** | $88295425 |

---

***Maturity Terms.*** The following table presents a summary of the Bank's consolidated obligation bonds outstanding by year of contractual maturity and weighted-average interest rate at December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (dollars in thousands) | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Contractual Maturity | Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate |
| Due in 1 year or less | $**38903990** | **3.34%** | $69412265 | 4.34% |
| Due after 1 year through 2 years | **3468100** | **3.25** | 8746000 | 2.14 |
| Due after 2 years through 3 years | **2634525** | **3.56** | 2462900 | 3.38 |
| Due after 3 years through 4 years | **1328135** | **3.93** | 2484125 | 3.64 |
| Due after 4 years through 5 years | **1249500** | **3.39** | 1905135 | 4.41 |
| Thereafter | **3303000** | **3.58** | 3285000 | 3.20 |
| Total par value | $**50887250** | **3.38%** | $88295425 | 4.03% |
| &nbsp;&nbsp;&nbsp; Bond premiums | **19442** |  | 21576 |  |
| &nbsp;&nbsp;&nbsp; Bond discounts | **(6909)** |  | (8766) |  |
| &nbsp;&nbsp;&nbsp; Concession fees | **(6488)** |  | (6848) |  |
| &nbsp;&nbsp;&nbsp; Fair value hedging adjustments | **(98044)** |  | (336283) |  |
| Total book value | $**50795251** |  | $87965104 |  |

---

The following table presents the Bank's consolidated obligation bonds outstanding between noncallable and callable as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Noncallable | $**26784760** | $65083925 |
| Callable | **24102490** | 23211500 |
| Total par value | $**50887250** | $88295425 |

---

------

**Notes to Financial Statements (continued)**

The following table presents consolidated obligation bonds outstanding by the earlier of contractual maturity or next call date as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| | Year of Contractual Maturity or Next Call Date | Year of Contractual Maturity or Next Call Date |
| | December 31, | December 31, |
| (in thousands) | 2025 | 2024 |
| Due in 1 year or less | $**45619490** | $81109765 |
| Due after 1 year through 2 years | **1746100** | 3376500 |
| Due after 2 years through 3 years | **1908025** | 1007900 |
| Due after 3 years through 4 years | **431135** | 1713125 |
| Due after 4 years through 5 years | **519500** | 336135 |
| Thereafter | **663000** | 752000 |
| Total par value | $**50887250** | $88295425 |

---

&nbsp;&nbsp;&nbsp;&nbsp;***Consolidated Obligation Discount Notes.*** Consolidated obligation discount notes are issued to raise short-term funds. Discount notes are consolidated obligations with original maturities up to one year. These notes are issued at less than their face amount and redeemed at par value when they mature. The following table details the Bank's consolidated obligation discount notes as of December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (dollars in thousands) | 2025 | 2024 |
| Book value | $**16697025** | $11685159 |
| Par value | $**16813630** | $11777387 |
| Weighted average interest rate <sup>(1)</sup> | **3.83%** | 4.42% |

---

*<u>Note:</u>*

<sup>(1)</sup> Represents yield to maturity excluding concession fees and hedging adjustments.

**Note 10 – Affordable Housing Program (AHP) and Voluntary Contributions**

***AHP.*** In support of the goal of providing funding for affordable housing and economic development, the Bank administers a number of programs, some mandated and some optional set-asides, which make funds available through member financial institutions. In all of these programs, Bank funds flow through member financial institutions into areas of need that are served by our members. AHP, mandated by the FHLBank Act, is the largest and primary public policy program of the FHLBanks. The FHLBank Act requires the Bank to contribute 10% of its current year net income (determined in accordance with applicable law as GAAP net income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP) to AHP and make these funds available for use in the subsequent year. Each year, the Bank's Board adopts an implementation plan that defines the structure of the program pursuant to the AHP regulations.

The Bank provides subsidies in the form of direct grants to members who provide the funds to assist in the purchase, construction or rehabilitation of housing for very low and low-or moderate-income households. Annually, the FHLBanks must collectively recognize AHP assessment expense equal to the greater of 10% of its annual income subject to assessment, or the prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million for each year. The Bank accrues this expense monthly based on its net income.

&nbsp;&nbsp;&nbsp;&nbsp;If the Bank experienced a net loss during a quarter, but still had net earnings subject to AHP assessment for the year, the Bank's obligation to the AHP would be calculated based on the Bank's year-to-date net income. If the Bank had net income in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation. If the Bank experienced a net loss for a full year, the Bank would have no obligation to the AHP for the year since each FHLBank's required annual AHP contribution is limited to its annual net income. If the aggregate 10% calculation was less than $100 million for all the FHLBanks, each FHLBank would be required to contribute a prorated sum to ensure that the aggregate contributions by the FHLBanks equal $100 million. The proration would be made on the basis of an FHLBank's income in relation to the income of all FHLBanks for the previous year. There was no shortfall in assessments below the $100 million minimum amount for the years ended 2025, 2024 or 2023. If the Bank finds that its required contributions are contributing to the financial instability of the Bank, it may apply to the Finance Agency for a temporary suspension of its contributions under the FHLBank Act. The Bank did not make any such application in 2025, 2024 or 2023.

------

**Notes to Financial Statements (continued)**

In addition, the Bank made a supplemental voluntary contribution to AHP of $5.0 million and $5.1 million in 2025 and 2024, respectively, to restore the amount available for AHP, absent the Bank's voluntary contributions. The Bank did not make such a supplemental voluntary contribution to AHP in 2023. The supplemental voluntary contribution to AHP is recognized in Other Expense - Voluntary contributions in the Statements of Income. Statutory AHP assessments and supplemental voluntary contributions to AHP are recorded in the AHP liability on the Statements of Condition. Statutory AHP assessments and supplemental voluntary AHP contributions accrued in the current year are generally awarded in the subsequent year and may be disbursed over several years. Program requirements for disbursements, including minimum draw requirements and progress requirements, contribute to the timing of the disbursement of the commitments. The Bank's policy is that the committed funds need to be disbursed and the project completed within four years. However, extensions may be provided and projects extending longer than four years are monitored through completion. The Bank has outstanding AHP commitments of $127.0 million, $83.9 million and $49.1 million as of December 31, 2025, 2024 and 2023, respectively.

The following table presents a rollforward of the AHP payable for 2025, 2024, and 2023.

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| | | | |
|:---|:---|:---|:---|
| (in thousands) | 2025 | 2024 | 2023 |
| Balance, beginning of the year | $**160654** | $116338 | $75828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory AHP Assessments | **46561** | 65544 | 64880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Supplemental voluntary AHP contributions | **4977** | 5058 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments and subsidy usage, net <sup>(1)</sup> | **(28214)** | (26286) | (24370) |
| Balance, end of the year | $**183978** | $160654 | $116338 |

---

*Note:*

<sup>(1)</sup> Includes an immaterial amount of recaptured voluntary contributions through the Bank's community products.

***Voluntary Contributions.*** Voluntary housing and community products primarily consist of voluntary grants and contributions. Voluntary grants and contributions are recognized as an expense in the period in which the grant or contribution is considered an unconditional promise to give. Voluntary contributions to support other housing and community products (non-AHP) are recorded within Other Liabilities on the Statements of Condition. The following table presents the Bank's voluntary contributions to housing and community products for the year ended 2025, 2024, and 2023.

---

| | | | |
|:---|:---|:---|:---|
| (in thousands) | 2025 | 2024 | 2023 |
| Affordable Housing | $**42537** | $43438 | $11500 |
| Community Investment | **1000** | 700 | 248 |
| Disaster Relief and Climate Resiliency | **75** |  |  |
| Total voluntary contributions excluding AHP related contributions | **43612** | 44138 | 11748 |
| Supplemental voluntary AHP contributions | **4977** | 5058 |  |
| Total voluntary contributions | $**48589** | $49196 | $11748 |

---

The following table presents a rollforward of the Bank's voluntary contribution liability for 2025, 2024, and 2023, excluding AHP related contributions.

---

| | | | |
|:---|:---|:---|:---|
| (in thousands) | 2025 | 2024 | 2023 |
| Balance, beginning of the year | $**41837** | $16853 | $10112 |
| Total voluntary contributions excluding AHP related contributions | **43612** | 44138 | 11748 |
| Payments and disbursement, net <sup>(1)</sup> | **(22796)** | (19154) | (5007) |
| Balance, end of the year | $**62653** | $41837 | $16853 |

---

*Note:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Excludes an immaterial amount of recaptured voluntary contributions and included in the rollforward of the AHP payable.

------

**Notes to Financial Statements (continued)**

**Note 11 – Capital**

The Bank is subject to three capital requirements under its current Capital Plan Structure and the Finance Agency rules and regulations. Regulatory capital does not include AOCI, but does include mandatorily redeemable capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;• *Risk-based capital (RBC)*. Under this capital requirement, the Bank must maintain at all times permanent capital, defined as the amounts paid-in for Class B stock and retained earnings, in an amount at least equal to the sum of its credit risk, market risk, and operational risk capital requirements, all of which are calculated in accordance with the rules and regulations of the Finance Agency. The Finance Agency may require the Bank to maintain a greater amount of minimum capital levels than is required based on the Finance Agency rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;• *Total regulatory capital.* Under this capital requirement, the Bank is required to maintain at all times a total capital-to-assets ratio of at least 4.0%. Total regulatory capital is the sum of permanent capital, Class A stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the Finance Agency as available to absorb losses; and

&nbsp;&nbsp;&nbsp;&nbsp;• *Leverage capital*. Under this third capital requirement, the Bank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.00%. Leverage capital is defined as the sum of (i) permanent capital weighted 1.5 times and (ii) all other components of total capital.

At December 31, 2025, the Bank was in compliance with all regulatory capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank has two subclasses of capital stock: B1 membership stock and B2 activity stock. The Bank had $338.9 million in B1 membership stock and $1,953.3 million in B2 activity stock at December 31, 2025. The Bank had $333.0 million in B1 membership stock and $3,228.7 million in B2 activity stock at December 31, 2024.

Each class of the Bank's capital stock is considered putable by the member and the Bank may repurchase, at its sole discretion, any member's stock investments that exceed the required minimum amount. However, there are statutory and regulatory restrictions on the obligation to redeem, or right to repurchase, the outstanding stock. As a result, whether or not a member may have its capital stock in the Bank repurchased (at the Bank's discretion at any time before the end of the redemption period) or redeemed (at a member's request, completed at the end of a redemption period) will depend in part on whether the Bank is in compliance with those restrictions.

Finance Agency rules limit the ability of the Bank to create member excess stock under certain circumstances. For example, a Bank may not pay dividends in the form of capital stock or issue new excess stock to members if its excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause the Bank's excess stock to exceed one percent of its total assets. As of December 31, 2025, the Bank's excess capital stock did not exceed one percent of its total assets.

The following table demonstrates the Bank's compliance with the regulatory capital requirements at December 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
| (dollars in thousands) | Required | Actual | Required | Actual |
| Regulatory capital requirements: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;RBC | $**857373** | $**4550222** | $950558 | $5671613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capital-to-asset ratio | **4.0%** | **6.2%** | 4.0% | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total regulatory capital | $**2932689** | $**4550222** | $4277070 | $5671613 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leverage ratio | **5.0%** | **9.3%** | 5.0% | 8.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Leverage capital | $**3665861** | $**6825333** | $5346337 | $8507419 |

---

The Finance Agency has established four capital classifications for the FHLBanks: adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. Based on the financial information as of December 31, 2025, the Finance Agency determined the Bank was adequately capitalized under the capital rule.

------

**Notes to Financial Statements (continued)**

***Mandatorily Redeemable Capital Stock.*** The Bank is a cooperative whose member financial institutions and former members own all of the Bank's issued and outstanding capital stock. Shares cannot be purchased or sold except between the Bank and its members at the shares' par value of $100 in accordance with the Bank's Capital Plan.

At December 31, 2025 and December 31, 2024, the Bank had $12.3 million and $7.0 million, respectively, in capital stock subject to mandatory redemption with payment subject to a five-year waiting period and the Bank meeting its minimum regulatory capital requirements. The estimated dividends on mandatorily redeemable capital stock recorded as interest expense were $0.7 million, $2.4 million, and $2.3 million during 2025, 2024 and 2023.

The following table provides the related dollar amounts for activities recorded in mandatorily redeemable capital stock during 2025, 2024, and 2023.

---

| | | | |
|:---|:---|:---|:---|
| | December 31, | December 31, | December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Balance, beginning of the period | $**7025** | $27874 | $27763 |
| Capital stock subject to mandatory redemption reclassified from capital | **6470** | 5820 | 13681 |
| Redemption/repurchase of mandatorily redeemable capital stock | **(1151)** | (26669) | (13570) |
| Balance, end of the period | $**12344** | $7025 | $27874 |

---

As of December 31, 2025, the total mandatorily redeemable capital stock reflected the balance for seven institutions. Five institutions were merged out of district and are considered to be non-members. Two other institutions have notified the Bank of their intention to voluntarily redeem their capital stock and withdraw from membership. These institutions will continue to be members of the Bank until the withdrawal period is completed.

The following table shows the amount of mandatorily redeemable capital stock by contractual year of redemption at December 31, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in thousands) | 2025 | 2024 |
| Due in 1 year or less | $**377** | $43 |
| Due after 1 year through 2 years | **3543** | 450 |
| Due after 2 years through 3 years | **946** | 4198 |
| Due after 3 years through 4 years | **—** | 1098 |
| Due after 4 years through 5 years | **6381** |  |
| Past contractual redemption date due to activity outstanding | **1097** | 1236 |
| Total | $**12344** | $7025 |

---

Under the terms of the Bank's Capital Plan, membership capital stock is redeemable five years from the date of membership termination or withdrawal notice from the member. If the membership is terminated due to a merger or consolidation, the membership capital stock is deemed to be excess stock and is repurchased. The activity capital stock (i.e., supporting advances, letters of credit and MPF) relating to termination, withdrawal, mergers or consolidation is recalculated based on the underlying activity. Any excess activity capital stock is repurchased on an ongoing basis as part of the Bank's excess stock repurchase program that is in effect at the time. Therefore, the redemption period could be less than five years if the stock becomes excess stock. However, the redemption period could extend beyond five years if the underlying activity is still outstanding.

***Dividends and Retained Earnings.*** In accordance with the JCEA, entered into by the Bank, as amended, the Bank allocates on a quarterly basis 20% of its net income to a separate restricted retained earnings (RRE) account until the account balance equals at least 1% of the Bank's average balance of outstanding consolidated obligations for the current quarter. These RRE are not available to pay dividends and are presented separately from other retained earnings on the Statements of Condition. Additionally, the JCEA provides that amounts in restricted retained earnings in excess of 150% of the Bank's RRE minimum (i.e., one percent of the average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter) may be released from RRE. At December 31, 2025, retained earnings were $2,245.7 million, including $1,462.3 million of unrestricted retained earnings and $783.4 million of RRE. At December 31, 2025, the balance in RRE met the threshold for the required contribution.

------

**Notes to Financial Statements (continued)**

Dividends paid by the Bank are subject to Board approval and may be paid in either capital stock or cash; historically, the Bank has paid cash dividends only. The dividend paid to the stockholder is calculated on the average capital stock owned by the stockholder for the previous quarter.

Dividends paid in 2025, 2024 and 2023 are presented in the table below.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield | Dividend - Annual Yield |
| | 2025 | 2025 | 2024 | 2024 | 2023 | 2023 |
| | Membership | Activity | Membership | Activity | Membership | Activity |
| February | **5.10%** | **9.00%** | 5.35% | 8.50% | 4.00% | 7.95% |
| April | **4.60%** | **9.00%** | 5.60% | 8.75% | 5.00% | 7.95% |
| July | **4.85%** | **9.50%** | 5.60% | 9.00% | 5.25% | 7.95% |
| October | **4.85%** | **9.50%** | 5.60% | 9.00% | 5.35% | 8.25% |

---

In February 2026, the Bank paid a quarterly dividend equal to an annual yield of 4.85% on membership stock and 9.50% on activity stock.

The following table summarizes the ending balances for each component of AOCI at December 31, 2025, December 31, 2024, and December 31, 2023, respectively.

---

| | | | |
|:---|:---|:---|:---|
| AOCI (in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 |
| Net unrealized gains (losses) on AFS securities | **34679** | (29173) | (72862) |
| Pension and post-retirement | **(956)** | (1347) | 374 |
| Total | $**33723** | $(30520) | $(72488) |

---

------

**Notes to Financial Statements (continued)**

**Note 12 – Employee Retirement Plans**

***Qualified Defined Benefit Multiemployer Plan.*** The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Defined Benefit Plan), a tax qualified defined benefit pension plan. The Defined Benefit Plan is treated as a multiemployer plan for accounting purposes, but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (IRC). As a result, certain multiemployer plan disclosures are not applicable to the Defined Benefit Plan. Under the Defined Benefit Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The plan covers officers and employees of the Bank that meet certain eligibility requirements and were hired prior to January 1, 2019.

The Defined Benefit Plan operates on a fiscal year from July 1 through June 30. The Defined Benefit Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number 13-5645888, and the three-digit plan number is 333. There are no collective bargaining agreements in place at the Bank.

The Defined Benefit Plan's annual valuation process includes calculating the plan's funded status and separately calculating the funded status of each participating employer. The funded status is defined as the market value of the plan's assets divided by the funding target (100% of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Defined Benefit Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the market value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30 that the plan's participants may choose to make.

The most recent Form 5500 available for the Defined Benefit Plan is for the fiscal year ended June 30, 2024. The Bank's contributions to the Defined Benefit Plan during 2025 and 2024 were less than 5% of the total plan contributions during each of the plan years ended June 30, 2024 and 2023.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *(dollars in thousands)* | *2025* |  | *2024* |  | *2023* |
| &nbsp;&nbsp;&nbsp;*Net pension cost charged to compensation and benefit expense for the year ended December 31* | $***601*** |  | $*612* |  | $*1375* |
| *Defined Benefit Plan funded status as of July 1* | ***113.8*** *%*** | <sup>(1)</sup> | *112.2 %* | <sup>(2)</sup> | *114.0 %* |
| *Bank's funded status as of July 1* | ***134.3*** *%*** |  | *137.4 %* |  | *145.8 %* |

---

*<u>Notes</u>:*

<sup>(1)</sup> The Defined Benefit Plan's funded status as of July 1, 2025 is preliminary and may increase because the plan's participants are permitted to make contributions for the plan year ended June 30, 2025 through March 15, 2026. The final funded status will not be available until the Form 5500 is filed (this Form 5500 is due April 2026).

<sup>(2)</sup> The funded status disclosed is preliminary as the Form 5500 had not been filed when disclosed.

Included in the net pension costs above are discretionary contributions of $0.8 million in 2023. The Bank did not make any discretionary contributions in 2025 and 2024. As the Defined Benefit Plan's year-end is June 30, the Bank's discretionary contributions, which occur during the Bank's calendar year, may be allocated to multiple Defined Benefit Plan years.

***Qualified Defined Contribution Plan.*** The Bank also maintains a defined contribution plan for its employees. The Bank's contributions consist of a matching contribution equal to a percentage of voluntary employee contributions, subject to certain limitations. For those employees that meet certain eligibility requirements and were hired on or after January 1, 2019, the Bank will make an additional contribution to the plan equal to a percentage of the eligible employee's plan salary. The Bank recognized $2.5 million, $2.4 million and $2.2 million in expense related to plan contributions during 2025, 2024 and 2023, respectively.

***&nbsp;&nbsp;&nbsp;&nbsp;Nonqualified Supplemental Deferred Compensation Plans.*** In addition, the Bank maintains nonqualified deferred compensation plans, available to select employees and directors, which are, in substance, unfunded supplemental defined contribution retirement plans. The plans' liabilities consist of the accumulated compensation deferrals and accrued earnings (losses) on the deferrals. For select employees, the deferred compensation plan is intended to ensure, among other things, that participants receive the full amount of benefits to which they would have been entitled under the qualified defined contribution plan in the absence of limits on benefits levels imposed by the Internal Revenue Service. In addition, for select employees hired on or after January 1, 2019, pursuant to the terms of the individual agreements with the employees, the Bank makes an additional, annual, elective contribution to the deferred compensation plan that is a percentage of their base salary and current incentive. The Bank's obligations from these plans were $14.4 million and $22.1 million at December 31, 2025 and December

------

**Notes to Financial Statements (continued)**

31, 2024, respectively, and the Bank recognized operating expenses of $1.7 million, $3.5 million, and $1.8 million for 2025, 2024 and 2023, respectively. Although the nonqualified compensation plans are unfunded, the Bank owns mutual funds held in a Rabbi trust to help secure the Bank's obligation to participants and to partially offset the earnings (losses) of certain deferred compensation agreements. The fair value of the mutual funds was $8.9 million and $16.8 million at December 31, 2025 and December 31, 2024, respectively.

***Post-retirement Health Benefit Plan.*** The Bank sponsors an unfunded retiree benefits program that includes health care and life insurance benefits for eligible retirees. Employees who retired prior to January 1, 1992 receive health care benefits at the Bank's expense after age 65. Employees retiring after January 1, 1992 participate in a health reimbursement account. At the discretion of the Bank, the amount can be modified. A limited life insurance benefit is provided at the Bank's expense for retirees who retired prior to January 1, 2009. Employees who retired after January 1, 1992 but prior to January 1, 2009 were required to meet specific eligibility requirements of age 65 or age 65 with a minimum of 10 years of service at the time of retirement to be eligible for retiree health and life insurance benefits. The Accumulated Post-retirement Benefit Obligation was $2.0 million and $2.1 million at December 31, 2025 and December 31, 2024, respectively.

***Supplemental Executive Retirement Plan (SERP).*** The Bank also maintains an unfunded SERP, a nonqualified defined benefit retirement plan, for executives hired prior to January 1, 2019. The SERP is intended to ensure, among other things, that participants receive the full amount of benefits to which they would have been entitled under the qualified defined benefit pension plan in the absence of limits on benefits levels imposed by the Internal Revenue Service. The accumulated benefit obligation for the SERP was $9.5 million and $10.0 million at December 31, 2025 and December 31, 2024, respectively. As noted above, all nonqualified plans maintained by the Bank are unfunded; however, the Bank is the beneficiary of certain mutual funds held in a Rabbi trust which assets help secure the Bank's obligation to participants. The fair value of the mutual funds was $2.5 million and $2.4 million at December 31, 2025 and December 31, 2024, respectively.

The Post-retirement Health Benefit Plan and SERP are not material to the Bank. However, the following table sets forth their benefit obligations recorded in Other liabilities on the Statements of Condition and amounts recognized in AOCI. In addition, the Bank recognized $3.5 million, $2.0 million, and $1.0 million in expense related to these two plans during 2025, 2024 and 2023, respectively, of which the service cost component was recognized in Compensation and benefits expense and all other costs were recognized in Other operating expense on the Statements of Income.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | SERP | SERP | Post-retirement Health Benefit Plan | Post-retirement Health Benefit Plan | Total | Total |
| (in thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
| Benefit obligations | $**12537** | $12979 | $**1980** | $2079 | $**14517** | $15058 |
| Unrealized actuarial gains (losses) in AOCI | $**(2000)** | $(2213) | $**1044** | $867 | $**(956)** | $(1346) |

---

------

**Notes to Financial Statements (continued)**

**Note 13 – Transactions with Related Parties**

The Bank is a cooperative whose member institutions own the capital stock of the Bank and may receive dividends on their investments. In addition, certain former members that still have outstanding transactions are also required to maintain their investment in Bank capital stock until the transactions mature or are paid off. All loans, including BOB loans and letters of credit, are issued to members and all mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases. These transactions with members are entered into in the normal course of business and represent member activity. In the ordinary course of business, the Bank may utilize products and services, provided at normal market rates and terms, from its members to support its operations. In instances where the member also has an officer or a director who is a Director of the Bank, those transactions are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as all other transactions. Related parties are defined as those parties meeting any one of the following criteria: (1) other FHLBanks; (2) members with capital stock outstanding in excess of 10% of total capital stock outstanding; or (3) members and nonmember borrowers that have an officer or director who is also on the Board.

The following table includes significant outstanding related party member activity balances.

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in thousands) | 2025 | 2024 |
| Advances <sup>(1)</sup> | $**21823502** | $44190541 |
| Letters of credit <sup>(2)</sup> | **926050** | 19572063 |
| MPF loans | **262600** | 285175 |
| Deposits | **10973** | 38181 |
| Capital stock | **965784** | 2015411 |

---

*<u>Notes:</u>*

<sup>(1)</sup> Amount excludes accrued interest, deferred prepayment fees, and hedging adjustments

<sup>((2)</sup> Letters of credit are off-balance sheet commitments.

The following table summarizes the effects on the Statements of Income corresponding to the related party member balances above. Amounts related to interest expense on deposits were immaterial for the periods presented.

---

| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Interest income on advances <sup>(1)</sup> | $**1329629** | $2640981 | $2479267 |
| Interest income on MPF loans | **11770** | 11333 | 10744 |
| Letters of credit fees | **13375** | 24062 | 23953 |

---

*<u>Note:</u>*

<sup>(1)</sup> Interest income on advances includes contractual interest income and prepayment fees. The effect of derivative activities is not included.

The following table summarizes the effect of the MPF activities with FHLBank of Chicago.

---

| | | | |
|:---|:---|:---|:---|
| | Year ended December 31, | Year ended December 31, | Year ended December 31, |
| (in thousands) | 2025 | 2024 | 2023 |
| Servicing fee expense | $**4118** | $3937 | $3813 |

---

---

| | | |
|:---|:---|:---|
| | December 31, | December 31, |
| (in thousands) | 2025 | 2024 |
| Interest-bearing deposits maintained with FHLBank of Chicago | $**5639** | $5263 |

---

Occasionally, we loan or borrow short-term funds to/from other FHLBanks in order to manage FHLBank System-wide liquidity. These loans and borrowings are transacted at current market rates when traded. There were no loans to or borrowings from other FHLBanks that remained outstanding at December 31, 2025 or 2024.

------

**Notes to Financial Statements (continued)**

The amount borrowed from and repaid to other FHLBanks was $50.0 million in 2025, $10.0 million in 2024 and $3.0 million in 2023.

&nbsp;&nbsp;&nbsp;&nbsp;Subject to mutually agreed upon terms, on occasion, an FHLBank may transfer at fair value its primary debt obligations to another FHLBank. During 2025 and 2024 there was an immaterial amount of transfers of debt between the Bank and another FHLBank and no such transfer of debt during 2023.

From time to time, a member of one FHLBank may be acquired by a member of another FHLBank. When such an acquisition occurs, the two FHLBanks may agree to transfer at fair value the loans of the acquired member to the FHLBank of the surviving member. The FHLBanks may also agree to the purchase and sale of any related hedging instrument. The Bank had no such activity during 2025, 2024 and 2023.

**Note 14 – Estimated Fair Values**

&nbsp;&nbsp;&nbsp;&nbsp;Fair value amounts have been determined by the Bank using available market information and 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). These estimates are based on recent market data and other pertinent information available to the Bank at December 31, 2025 and December 31, 2024. Although the management of the Bank believes that the valuation methods are appropriate and provide a reasonable determination of the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values are not necessarily equal to the amounts that would be realized in current market transactions, although they do reflect the Bank's judgment of how a market participant would estimate the fair values.

The carrying value and estimated fair value of the Banks' financial instruments at December 31, 2025 and December 31, 2024 are presented in the table below.

**Fair Value Summary Table**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Carrying<br>Value | Level 1 | Level 2 | Level 3 | Netting Adjustment and Cash Collateral <sup>(1)</sup> | Estimated<br>Fair Value |
| Assets: |  |  |  |  |  |  |
| Cash and due from banks | $**32585** | $**32585** | $**—** | $**—** | $**—** | $**32585** |
| Interest-bearing deposits | **2408873** | **2408873** | **—** | **—** | **—** | **2408873** |
| Securities purchased under agreements to resell <sup>(2)</sup> | **2680000** | **—** | **2680006** | **—** | **—** | **2680006** |
| Federal funds sold | **5977000** | **—** | **5976975** | **—** | **—** | **5976975** |
| Trading securities | **119676** | **—** | **119676** | **—** | **—** | **119676** |
| AFS securities | **18189327** | **—** | **18087199** | **102128** | **—** | **18189327** |
| HTM securities | **1143705** | **—** | **1071285** | **28314** | **—** | **1099599** |
| Advances | **36819992** | **—** | **36861975** | **—** | **—** | **36861975** |
| Mortgage loans held for portfolio, net | **5220302** | **—** | **4856826** | **—** | **—** | **4856826** |
| Accrued interest receivable | **261589** | **—** | **261590** | **—** | **—** | **261590** |
| Derivative assets | **350117** | **—** | **79103** | **—** | **271014** | **350117** |
| Liabilities: |  |  |  |  |  |  |
| Deposits | $**590785** | $**—** | $**590785** | $**—** | $**—** | $**590785** |
| Discount notes | **16697025** | **—** | **16698670** | **—** | **—** | **16698670** |
| Bonds | **50795251** | **—** | **50432389** | **—** | **—** | **50432389** |
| Mandatorily redeemable capital stock <sup>(3)</sup> | **12344** | **12638** | **—** | **—** | **—** | **12638** |
| Accrued interest payable <sup>(3)</sup> | **305053** | **—** | **304759** | **—** | **—** | **304759** |
| Derivative liabilities | **1994** | **—** | **126831** | **—** | **(124837)** | **1994** |

---

------

**Notes to Financial Statements (continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in thousands) | Carrying<br>Value | Level 1 | Level 2 | Level 3 | Netting Adjustment and Cash Collateral <sup>(1)</sup> | Estimated<br>Fair Value |
| Assets: |  |  |  |  |  |  |
| Cash and due from banks | $17340 | $17340 | $— | $— | $— | $17340 |
| Interest-bearing deposits | 2726628 | 2726628 |  |  |  | 2726628 |
| Securities purchased under agreements to resell <sup>(2)</sup> | 6280000 |  | 6279993 |  |  | 6279993 |
| Federal funds sold | 2664000 |  | 2663996 |  |  | 2663996 |
| Trading securities | 149153 |  | 149153 |  |  | 149153 |
| AFS securities | 18163843 |  | 18050348 | 113495 |  | 18163843 |
| HTM securities | 1298808 |  | 1184672 | 34720 |  | 1219392 |
| Advances | 69873233 |  | 69888161 |  |  | 69888161 |
| Mortgage loans held for portfolio, net | 4816452 |  | 4233555 |  |  | 4233555 |
| Accrued interest receivable | 469154 |  | 469154 |  |  | 469154 |
| Derivative assets | 353629 |  | 67399 |  | 286230 | 353629 |
| Liabilities: |  |  |  |  |  |  |
| Deposits | $774883 | $— | $774883 | $— | $— | $774883 |
| Discount notes | 11685159 |  | 11683853 |  |  | 11683853 |
| Bonds | 87965104 |  | 87349924 |  |  | 87349924 |
| Mandatorily redeemable capital stock <sup>(3)</sup> | 7025 | 7568 |  |  |  | 7568 |
| Accrued interest payable <sup>(3)</sup> | 540958 |  | 540415 |  |  | 540415 |
| Derivative liabilities | 8666 |  | 372075 |  | (363409) | 8666 |

---

*<u>Notes:</u>*

<sup>(1)</sup> Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed by the Bank with the same clearing agent and/or counterparties.

<sup>(2)</sup> Based on the fair value of the related collateral held, the securities purchased under agreements to resell were fully collateralized for the periods presented. There were no offsetting liabilities related to these securities at December 31, 2025 and December 31, 2024. These instruments' maturity term is overnight.

<sup>(3)</sup> The estimated fair value amount for the mandatorily redeemable capital stock line item includes accrued dividend interest; this amount is excluded from the estimated fair value for the accrued interest payable line item.

***Fair Value Hierarchy.*** The fair value hierarchy is used to prioritize the inputs used to measure fair value by maximizing the use of observable inputs. 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.

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

&nbsp;&nbsp;&nbsp;&nbsp;<u>Level 1 Inputs</u> - Quoted prices (unadjusted) for identical assets or liabilities in an active market that the reporting entity 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.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Level 2 Inputs</u> - 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 or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active or in which little information is released publicly; (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.

&nbsp;&nbsp;&nbsp;&nbsp;<u>Level 3 Inputs</u> - Valuations derived from techniques in which one or more significant inputs are not observable in the market. Valuation techniques include pricing models, discounted cash flow methodologies or similar techniques.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank 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.

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**Notes to Financial Statements (continued)**

**Summary of Valuation Methodologies and Primary Inputs**

***&nbsp;&nbsp;&nbsp;&nbsp;***The valuation methodologies and primary inputs used to develop the measurement of fair value for assets and liabilities that are measured at fair value on a recurring or nonrecurring basis in the Statements of Condition are listed below.

&nbsp;&nbsp;&nbsp;&nbsp;***Investment Securities – non-MBS.*** The Bank uses either the income or market approach to determine the estimated fair value of non-MBS investment securities.

&nbsp;&nbsp;&nbsp;&nbsp;For instruments that use the income approach, the significant inputs include a market-observable interest rate curve and a discount spread, if applicable. The market-observable interest rate curves and the related instrument types are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CO curve: GSE and other U.S. obligations

&nbsp;&nbsp;&nbsp;&nbsp;The Bank uses a market approach for its state and local agency bonds and U.S. Treasury obligations. For state and local agency bonds, the Bank obtains prices from multiple designated third-party vendors when available, and the default price is the average of the prices obtained. Otherwise, the approach is generally consistent with the approach outlined below for Investment Securities - MBS. For U.S. Treasury obligations, prices are obtained from a third-party vendor based on daily trade activity or dealer quotes. For certain short-term U.S. Treasury obligations, market prices are not available, and the Bank uses an income approach.

***Investment Securities – MBS.*** To value MBS holdings, the Bank obtains prices from multiple third-party pricing vendors, when available. The pricing vendors use various proprietary models to price MBS. The inputs to those models are derived from various sources including, but not limited to: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many MBS do not trade on a daily basis, the pricing vendors use available information such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to determine the prices for individual securities, as applicable. Each pricing vendor has an established challenge process in place for all MBS valuations, which facilitates resolution of potentially erroneous prices identified by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;During the year, the Bank conducts reviews of its pricing vendors to enhance its understanding of the vendors' pricing processes, methodologies and control procedures. To the extent available, the Bank also reviews the vendors' independent auditors' reports regarding the internal controls over their valuation processes.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank's valuation technique first requires the establishment of a median price for each security. All prices that are within a specified tolerance threshold of the median price are included in the cluster of prices that are averaged to compute a default price. Prices that are outside the threshold (outliers) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the price rather than the default price. If, on the other hand, the analysis confirms that an outlier (or outliers) is (are) in fact not representative of fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security. If all prices received for a security are outside the tolerance threshold level of the median price, then there is no default price, and the final price is determined by an evaluation of all outlier prices as described above.

&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2025, for substantially all of its MBS, the Bank received a price from all of its vendors and the default price was the final price. Based on the Bank's reviews of the pricing methods including inputs and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or, in those instances in which there were outliers or significant yield variances, the Bank's additional analyses), the Bank believes the final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value hierarchy. There continues to be unobservable inputs and a lack of significant market activity for private label MBS; therefore, the Bank classified private label MBS as Level 3.

***Derivative Assets/Liabilities.*** The Bank bases the fair values of derivatives with similar terms on market prices, when available. However, market prices do not exist for many types of derivative instruments. Consequently, fair values for these instruments are estimated using standard valuation techniques such as discounted cash flow analysis. Estimates developed using these methods are highly subjective and require judgment regarding significant matters such as the amount and timing of future cash flows, volatility of interest rates and the selection of discount rates that appropriately reflect market and credit risks. In

------

**Notes to Financial Statements (continued)**

addition, the fair value estimates for these instruments include accrued interest receivable/payable which approximate their carrying values due to their short-term nature.

The discounted cash flow analysis used to determine the net present value of derivative instruments utilizes market-observable inputs (inputs that are actively quoted and can be validated to external sources). Inputs by class of derivative are as follows:

*Interest-rate related:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discount rate assumption. SOFR curve for SOFR indexed derivatives. Overnight Index Swap (OIS) curve for OIS indexed derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Forward interest rate assumption (rates projected in order to calculate cash flows through the designated term of the hedging relationship). OIS curve or SOFR curve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility assumption. Market-based expectations of future interest rate volatility implied from current market prices for similar options.

*Mortgage delivery commitments:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TBA securities prices. Market-based prices of TBAs are determined by coupon class and expected term until settlement and a pricing adjustment reflective of the secondary mortgage market.

The Bank is subject to credit risk on uncleared derivatives transactions due to the potential nonperformance by the derivatives counterparties. To mitigate this risk, the Bank has entered into netting arrangements and security agreements that provide for delivery of collateral at specified levels. As a result, uncleared derivatives are recognized as collateralized-to-market and the fair value of uncleared derivatives excludes netting adjustments and collateral. The Bank has evaluated the potential for fair value adjustment due to uncleared counterparty credit risk and has concluded that no adjustments are necessary.

Credit risk related to uncleared derivatives may be further mitigated by the exchange of initial margin with the Bank's derivative counterparties. However, as of December 31, 2025, the Bank did not exceed initial margin thresholds with any of its counterparties and was not required to post initial margin. If the Bank's aggregate uncleared derivative transactions exposure to a counterparty exceeds the applicable threshold, certain investment securities are required to be posted and held at a third-party custodian.

&nbsp;&nbsp;&nbsp;&nbsp;The Bank's credit risk exposure on cleared derivatives is mitigated through the delivery of initial margin to offset future changes in value and daily delivery of variation margin to offset changes in market value. This is executed through the use of a central counterparty, either CME clearing or LCH Ltd. Variation margin payments are daily settlement payments rather than collateral. Initial margin continues to be treated as collateral and accounted for separately.

The fair values of derivatives are netted by clearing agent and/or by counterparty pursuant to the provisions of each of the Bank's netting agreements. If these netted amounts are positive, they are classified as an asset and, if negative, as a liability.

***&nbsp;&nbsp;&nbsp;&nbsp;Impaired Mortgage Loans Held for Portfolio and REO.*** The estimated fair values of impaired mortgage loans held for portfolio and real estate owned are determined based on values provided by a third-party's retail-based AVM. The Bank adjusts the AVM value based on the amount it has historically received on liquidation.

***Subjectivity of Estimates.*** Estimates of the fair value of financial assets and liabilities using the methods described above are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, 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. These estimates are susceptible to material near term changes because they are made as of a specific point in time.

------

**Notes to Financial Statements (continued)**

***Fair Value Measurements.*** The following tables present, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value on a recurring or non-recurring basis on its Statements of Condition at December 31, 2025 and December 31, 2024. The Bank measures certain mortgage loans held for portfolio at fair value when a charge-off is recognized and subsequently when the fair value of collateral less costs to sell is lower than the carrying amount. REO is measured using fair value when the assets' fair value less costs to sell is lower than the carrying amount.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| (in thousands) | Level 1 | Level 2 | Level 3 | Netting Adjustment and Cash Collateral <sup>(1)</sup> | Total |
| Recurring fair value measurements - Assets: |  |  |  |  |  |
| Trading securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSE obligations | $**—** | $**119676** | $**—** | $**—** | $**119676** |
| Total trading securities | $**—** | $**119676** | $**—** | $**—** | $**119676** |
| AFS securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $**—** | $**4912280** | $**—** | $**—** | $**4912280** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations | **—** | **834063** | **—** | **—** | **834063** |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local agency obligations | **—** | **174833** | **—** | **—** | **174833** |
| &nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family |  | **1303882** |  |  | **1303882** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family |  | **4547773** |  |  | **4547773** |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily |  | **6314368** |  |  | **6314368** |
| &nbsp;&nbsp;&nbsp;&nbsp;Private label | **—** | **—** | **102128** | **—** | **102128** |
| Total AFS securities | $**—** | $**18087199** | $**102128** | $**—** | $**18189327** |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate related | $**—** | $**79097** | $**—** | $**271014** | $**350111** |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage delivery commitments | **—** | **6** | **—** | **—** | **6** |
| Total derivative assets | **—** | **79103** | **—** | **271014** | **350117** |
| Total recurring assets at fair value | $**—** | $**18285978** | $**102128** | $**271014** | $**18659120** |
| Recurring fair value measurements - Liabilities |  |  |  |  |  |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate related | $**—** | $**126233** | $**—** | $**(124837)** | $**1396** |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage delivery commitments | **—** | **598** | **—** | **—** | **598** |
| Total recurring liabilities at fair value | $**—** | $**126831** | $**—** | $**(124837)** | $**1994** |
| Non-recurring fair value measurements - Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Impaired mortgage loans held for portfolio  | $**—** | $**—** | $**10751** | $**—** | $**10751** |
| &nbsp;&nbsp;&nbsp;REO | **—** | **—** | **328** | **—** | **328** |
| Total non-recurring assets at fair value | $**—** | $**—** | $**11079** | $**—** | $**11079** |

---

------

**Notes to Financial Statements (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| (in thousands) | Level 1 | Level 2 | Level 3 | Netting Adjustment and Cash Collateral <sup>(1)</sup> | Total |
| Recurring fair value measurements - Assets: |  |  |  |  |  |
| Trading securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations | $— | $149153 | $— | $— | $149153 |
| Total trading securities | $— | $149153 | $— | $— | $149153 |
| AFS securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $— | $4112955 | $— | $— | $4112955 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 907124 |  |  | 907124 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local agency obligations |  | 169336 |  |  | 169336 |
| &nbsp;&nbsp;MBS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family |  | 1712384 |  |  | 1712384 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family |  | 4597885 |  |  | 4597885 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily |  | 6550664 |  |  | 6550664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private label |  |  | 113495 |  | 113495 |
| Total AFS securities | $— | $18050348 | $113495 | $— | $18163843 |
| Derivative assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate related | $— | $67392 | $— | $286230 | $353622 |
| &nbsp;&nbsp;&nbsp;Mortgage delivery commitments |  | 7 |  |  | 7 |
| Total derivative assets |  | 67399 |  | 286230 | 353629 |
| Total recurring assets at fair value | $— | $18266900 | $113495 | $286230 | $18666625 |
| Recurring fair value measurements - Liabilities |  |  |  |  |  |
| Derivative liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Interest rate related  | $— | $371838 | $— | $(363409) | $8429 |
| &nbsp;&nbsp;Mortgage delivery commitments |  | 237 |  |  | 237 |
| Total recurring liabilities at fair value | $— | $372075 | $— | $(363409) | $8666 |
| Non-recurring fair value measurements - Assets |  |  |  |  |  |
| &nbsp;&nbsp;Impaired mortgage loans held for portfolio | $— | $— | $8090 | $— | $8090 |
| &nbsp;&nbsp;REO |  |  | 312 |  | 312 |
| Total non-recurring assets at fair value | $— | $— | $8402 | $— | $8402 |

---

*<u>Note:</u>*

<sup>(1)</sup> Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed by the Bank with the same clearing agent and/or counterparties.

------

**Notes to Financial Statements (continued)**

***Level 3 Disclosures for all Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis.*** The following table presents a reconciliation of all assets and liabilities that are measured at fair value on the Statements of Condition using significant unobservable inputs (Level 3) for the years ended December 31, 2025, 2024 or 2023. For instruments carried at fair value, the Bank reviews the fair value hierarchy classifications each quarter. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out at fair value in the quarter in which the changes occur. There were no Level 3 transfers during 2025, 2024 or 2023.

---

| | | | |
|:---|:---|:---|:---|
| (in thousands) | AFS Private<br>Label MBS <br>Year Ended <br>December 31, 2025 | AFS Private<br>Label MBS <br>Year Ended <br>December 31, 2024 | AFS Private<br>Label MBS <br>Year Ended<br>December 31, 2023 |
| Balance, beginning of period | $**113495** | $125808 | $142271 |
| Total gains (losses) (realized/unrealized) included in: |  |  |  |
| &nbsp;&nbsp;&nbsp; (Provision) reversal for credit losses | **(2553)** | (2172) | (3456) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion of credit losses in interest income | **4057** | 5526 | 6732 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on AFS in OCI | **(106)** | (649) | (6417) |
| Settlements: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlements | **(12765)** | (15018) | (13322) |
| Balance, end of period | $**102128** | $113495 | $125808 |
| Total amount of gains for the periods presented included in earnings attributable to the change in unrealized gains or (losses) relating to assets and liabilities still held at December 31 | $**1504** | $3227 | $3276 |
| Change in unrealized gains (losses) for the period included in other comprehensive income (loss) for assets held at December 31 | $**(106)** | $(649) | $(6417) |

---

------

**Notes to Financial Statements (continued)**

**Note 15 – Commitments and Contingencies**

**&nbsp;&nbsp;&nbsp;&nbsp;**The following table presents the Bank's various off-balance sheet commitments which are described in detail below. The Bank deemed it unnecessary to record any liabilities for credit losses on these commitments at December 31, 2025 and December 31, 2024, based on the Bank's credit extension and collateral policies.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (in thousands) | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2024 |
| Notional amount | Expiration Date Within One Year | Expiration Date After One Year | Total | Total |
| Standby letters of credit outstanding <sup>(1) (2)</sup>  | $**27511140** | $**—** | $**27511140** | $29560531 |
| Commitments to purchase mortgage loans | **33276** | **—** | **33276** | 20561 |
| Unsettled consolidated obligation discount notes, at par | **—** | **—** | **—** | 45000 |
| Unsettled consolidated obligation bonds, at par | **1059000** | **—** | **1059000** | 642000 |

---

*<u>Notes</u>*:

<sup>(1)</sup> Excludes approved requests to issue future standby letters of credit of $0.9 million at December 31, 2025 and $177.0 million at December 31, 2024.

<sup>(2)</sup> Letters of credit in the amount of $7.3 billion at December 31, 2025 and $7.5 billion at December 31, 2024, have renewal language that permits the letter of credit to be renewed for an additional period with a maximum renewal period of approximately five years.

***&nbsp;&nbsp;&nbsp;&nbsp;Commitments to Extend Credit on Standby Letters of Credit, and Additional Advances.*** Standby letters of credit are issued on behalf of members for a fee. A standby letter of credit is a financing arrangement between the Bank and its member. If the Bank is required to make payment for a beneficiary's draw, these amounts are withdrawn from the member's Demand Deposit Account (DDA). Any remaining amounts not covered by the withdrawal from the member's DDA are converted into a collateralized overnight advance.

&nbsp;&nbsp;&nbsp;&nbsp;Unearned fees related to standby letters of credit are recorded in other liabilities and had a balance of $5.0 million at December 31, 2025 and $5.8 million at December 31, 2024.

The Bank manages the credit risk of each member on the basis of the member's TCE to the Bank which includes its standby letters of credit. Standby letters of credit, similar to advances, are fully collateralized at the time of issuance and subject to member borrowing limits as established by the Bank. The Bank has established parameters for the review, assessment, monitoring and measurement of credit risk related to these standby letters of credit.

The Bank does not have any legally binding or unconditional unused lines of credit for advances at December 31, 2025 or December 31, 2024. However, within the Bank's Rollover (weekly/monthly) advance product, there were conditional lines of credit outstanding of $10.9 billion at December 31, 2025 and $11.6 billion at December 31, 2024.

***Commitments to Purchase Mortgage Loans.*** The Bank may enter into commitments that unconditionally obligate the Bank to purchase mortgage loans under the MPF Program. These delivery commitments are generally for periods not to exceed 60 days. Such commitments are recorded as derivatives.

***Pledged Collateral.*** The Bank may pledge cash and securities, as collateral, related to derivatives. Refer to Note 7 - Derivatives and Hedging Activities in this Item for additional information about the Bank's pledged collateral and other credit-risk-related contingent features.

***Legal Proceedings.*** The Bank is subject to legal proceedings arising in the normal course of business. The Bank would record an accrual for a loss contingency when it is probable that a loss has been incurred and the amount can be reasonably estimated. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank's financial condition, results of operations, or cash flows.

Notes 1, 5, 7, 9, 10, 11 and 13 also discuss other commitments and contingencies.

------

**Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None

**Item 9A: Controls and Procedures**

**Disclosure Controls and Procedures**

Under the supervision and with the participation of the Bank's management, including the chief executive officer and chief financial officer (principal financial officer), the Bank conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the 1934 Act. Based on this evaluation, the Bank's chief executive officer and chief financial officer (principal financial officer) concluded that the Bank's disclosure controls and procedures were effective as of December 31, 2025.

**Management's Report on Internal Control Over Financial Reporting**

See Item 8. Financial Statements and Supplementary Data — Management's Annual Report on Internal Control over Financial Reporting in this Form 10-K.

**Changes in Internal Control Over Financial Reporting**

There have been no changes in internal control over financial reporting that occurred during the fourth quarter of 2025 that have materially affected, or are reasonably likely to materially affect, the Bank's internal control over financial reporting.

**Item 9B: Other Information**

None

**Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable

------

**PART III** 

**Item 10: Directors, Executive Officers and Corporate Governance** 

As required by applicable law, the Bank's Board is comprised of a combination of industry directors elected by the Bank's member institutions (Member Directors) on a state-by-state basis and independent directors elected by a plurality of the Bank's members (Independent Directors). No member of the Bank's management may serve as a director of an FHLBank. The Bank's Board currently includes eight Member Directors and six Independent Directors. All the Bank's directors are required to be elected by the Bank's members.

***Nomination of Member Directors***

Member Directors are required by statute and regulation to meet certain specific criteria in order to be eligible to be elected and serve as Bank directors. To be eligible, an individual must: (1) be an officer or director of a Bank member institution located in the state in which there is an open Bank director position; (2) the member institution must be in compliance with the minimum capital requirements established by its regulator; and (3) the individual must be a U.S. citizen. These criteria are the only permissible eligibility criteria that Member Directors must meet. The FHLBanks are not permitted to establish additional eligibility criteria or qualifications for Member Directors or nominees. Each eligible institution may nominate representatives from member institutions in its respective state to serve four-year terms on the Board of the Bank as Member Directors.

As a matter of statute and regulation, only FHLBank stockholders may nominate and elect Member Directors. FHLBank Boards are not permitted to nominate or elect Member Directors. Specifically, institutions that are members required to hold stock in the Bank as of the record date (i.e., December 31 of the year prior to the year in which the election is held), are entitled to participate in the election process. With respect to Member Directors, under Finance Agency regulations, no director, officer, employee, attorney, or agent of the Bank (except in his/her personal capacity) may, directly or indirectly, support the nomination or election of a particular individual for a Member Directorship.

Because of the laws and regulations governing FHLBank Member Director nominations and elections, an FHLBank does not know what factors its member institution considers in selecting Member Director nominees or electing Member Directors. However, if an FHLBank's Board has performed a self-assessment, then, in publishing the nomination or election announcement, that FHLBank can include a statement indicating to the FHLBank's members participating in the election what skills or experience the Board believes would enhance the FHLBank's Board as well as consideration of qualified diverse Board candidates.

***Nomination of Independent Directors***

For the remainder of directors (referred to as Independent Directors), the members elect these individuals on a district-wide basis to four-year terms. Independent Directors cannot be officers or directors of a Bank member. Independent Director nominees must meet certain statutory and regulatory eligibility criteria and must have experience in, or knowledge of, one or more of the following areas: auditing and accounting, derivatives, financial management, organizational management, project development, and risk management practices. In the case of a public interest Independent Director nominee, such nominee must have four years' experience representing consumer or community interests in banking services, credit needs, housing, or consumer financial protection.

Finance Agency regulations permit a Bank Director, officer, attorney, employee, or agent and the Bank's Board and Advisory Council to support the candidacy of any person nominated by the Board for election to an Independent Directorship. Under the Finance Agency regulation governing Independent Directors, members are permitted to recommend candidates to be considered by the Bank's Board to be included on the nominee slate and the Bank maintains a standing notice soliciting nominations for Independent Director positions on its public website.

In 2025 the Bank's Board determined that there was a need for hedging/derivatives, public finance, affordable housing finance, insurance industry experience, and secondary mortgage market experience on the Board as well as qualified diverse Board candidates and included this information in its election materials. Prior to finalizing the Independent Director nominee slate, the Board (or representatives thereof) is required to consult with the Bank's Affordable Housing Advisory Council, and the slate must be sent to the Finance Agency for its review.

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In 2025, the Board selected incumbent director Mr. Thomas H. Murphy as the independent director nominee based on a determination that Mr. Murphy possessed the strongest skill sets that would add to the Board's effectiveness, including organizational management and risk management, particularly as it relates to information technology and cybersecurity risks. Mr. Murphy met all regulatory requirements. Mr. Murphy was re-elected to the Bank's Board in 2025 for a 4-year term beginning January 1, 2026.

In 2024, the Board selected incumbent directors Mr. Romulo L. Diaz, Jr. and Dr. Howard B. Slaughter, Jr. as independent director nominees. Mr. Diaz and Dr. Slaughter were re-elected to the Bank's Board in 2024 (each for a 4-year term beginning January 1, 2025). In addition, Messrs. Diaz and Slaughter both met the qualifications to serve as public interest directors and were designated as public interest directors.

In 2023, the Board selected incumbent directors, Ms. Angel Helm and Ms. Louise Herrle as independent director nominees. Ms. Angel Helm and Ms. Louise Herrle were re-elected to the Bank's Board in 2023 (each for a 4-year term beginning January 1, 2024).

***2025 Member and Independent Director Elections***

For the election of both Member Directors and Independent Directors, each eligible institution is entitled to cast one vote for each share of stock that it was required to hold as of the record date (December 31 of the preceding year); however, the number of votes that each institution may cast for each directorship cannot exceed the average number of shares of stock that were required to be held by all member institutions located in that state on the record date. The only matter submitted to a vote of shareholders in 2025 was the election of vacant Member and Independent Directors, which occurred in the fourth quarter of 2025 as described below. The Bank conducted these elections to fill the open Member and Independent Directorships for 2025 designated by the Finance Agency.

In 2025, the nomination and election of Member Directors and Independent Directors was conducted electronically. No meeting of the members was held in regard to the election. The Board does not solicit proxies, nor are eligible institutions permitted to solicit or use proxies to cast their votes in an election for Member or Independent Directors. The election was conducted in accordance with 12 C.F.R. Part 1261. There were two Member Director seats, both in Pennsylvania, and one Independent Director seat up for election in 2025. Member Director Mr. Joseph W. Major, an incumbent, won re-election, and Member Director Mr. Charles B. "Charlie" Crawford, Jr., was newly-elected. Mr. Thomas H. Murphy, an incumbent, was re-elected for the Independent Director seat. Information about the results of the 2025 Member and Independent Director elections, including the votes cast, was reported in the Form 8-K filed on November 21, 2025, as amended on December 17, 2025 and further amended on January 15, 2026.

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***Information Regarding Current FHLBank Directors***

The following table sets forth certain information (ages as of February 28, 2026) regarding each of the directors currently serving on the Bank's Board. No director of the Bank is related to any other director or executive officer of the Bank by blood, marriage, or adoption.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Age** | **Director Since** | **Term<br>Expires** | **Board<br>Committees** |
| Brendan J. McGill (Member) <sup>1</sup> | 57 | 2017 | 2028 | (g)(h) |
| Louise M. Herrle (Independent) <sup>2</sup> | 68 | 2018 | 2027 | (g)(h) |
| Nathaniel S. Bonnell (Member) | 44 | 2024 | 2026 | (a)(b)(h) |
| Glenn R. Brooks (Independent) <sup>3</sup> | 62 | 2015 | 2026 | (d)(e)(g)(h) |
| Charles B. "Charlie" Crawford, Jr. (Member) | 62 | 2026 | 2029 | (a)(b)(h) |
| Romulo L. Diaz, Jr., Esq. (Independent) <sup>4</sup> | 79 | 2021 | 2028 | (d)(f)(h) |
| James V. Dionise (Member) | 64 | 2021 | 2028 | (a)(b)(g)(h) |
| Angel L. Helm (Independent) <sup>5</sup> | 63 | 2019 | 2027 | (a)(b)(g)(h) |
| Blanche L. Jackson (Member) | 60 | 2023 | 2026 | (a)(d)(h) |
| Sheryl S. Jordan (Member) | 54 | 2024 | 2027 | (c)(f)(h) |
| Joseph W. Major (Member) | 70 | 2022 | 2029 | (c)(f)(g)(h) |
| Thomas H. Murphy (Independent) <sup>6</sup> | 63 | 2016 | 2029 | (c)(e)(g)(h) |
| Dr. Howard B. Slaughter, Jr. (Independent) <sup>7</sup> | 68 | 2020 | 2028 | (c)(e)(g)(h) |
| Jeane M. Vidoni (Member) | 65 | 2019 | 2026 | (d)(f)(g)(h) |

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(a) Member of Audit Committee

(b) Member of Finance Committee

(c) Member of Governance and Public Policy Committee

(d) Member of Membership, Credit and Community Investment Committee

(e) Member of Operational Risk Committee

(f) Member of Human Resources and OMWI Committee

(g) Member of Executive Committee

(h) Member of Enterprise Risk Management (ERM) Committee. This is a committee of the whole Board.

<sup>1</sup> Board Chair. Serves on the Executive and ERM Committees and as a non-voting ex-officio member of each other standing Board committee.

<sup>2</sup> Board Vice Chair. Serves on the Executive and ERM Committees and as a non-voting ex-officio member of each other standing Board committee. Pursuant to Finance Agency Regulation, Ms. Herrle was originally elected by the Board, effective September 10, 2018, to fill a seat vacated for a term ending December 31, 2019.

<sup>3</sup> Pursuant to Finance Agency regulation, Mr. Brooks was originally elected by the Board, effective January 1, 2015, to fill a seat vacated by an Independent Director for a term ending December 31, 2018. He was again elected in 2018 to fill a seat vacated by an Independent Director for a term ending December 31, 2022.

<sup>4</sup> Pursuant to Finance Agency regulation, Mr. Diaz was originally elected by the Board effective November 10, 2020, to fill a seat vacated by an Independent Director for a term ending December 31, 2020.

<sup>5</sup> Pursuant to Finance Agency regulation, Ms. Helm was originally elected by the Board to fill a seat, effective April 1, 2019, vacated by an Independent Director for a term ending December 31, 2019.

<sup>6</sup> Pursuant to Finance Agency regulation, Mr. Murphy was originally elected by the Board effective November 14, 2016 to fill a seat vacated for a term ending December 31, 2017.

<sup>7</sup> Pursuant to Finance Agency regulation, Dr. Slaughter was originally elected by the Board, effective January 1, 2020, to fill a seat vacated by an Independent Director for a term ending December 31, 2020.

**Brendan J. McGill** joined the Board in January 2017. Mr. McGill is President and Chief Executive Officer of Harleysville Bank. Mr. McGill has served as a Director and President of Harleysville Financial Corporation since September 2014 and as Chief Operating Officer since June 2010. Previously, Mr. McGill served as Executive Vice President and Chief Financial Officer from May 2009 until September 2014. Mr. McGill joined the Harleysville Bank in September 1999, and from February 2000 until May 2009, he served as Senior Vice President, Treasurer, and Chief Financial Officer.

**Louise M. Herrle** joined the Board in September 2018. Ms. Herrle is a senior corporate finance executive with extensive experience in developing and leading innovative global debt finance programs and in capital market risk management. Effective April 1, 2023, Ms. Herrle joined the boards of the following three Mizuho entities: 1) Mizuho Americas LLC; 2) Mizuho Securities USA LLC; and 3) Mizuho Bank (USA). Ms. Herrle was the Managing Director of Capital Markets for Incapital, LLC

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and retired from that position in 2019. In addition, she has provided financial advisory services to Fortune 100 companies and was the leading architect of a financing platform for social impact investments. Ms. Herrle has received multiple awards for excellence in corporate financing and was a featured speaker for industry events and conferences throughout her career. She is the former Executive Board Chair of Strong Women, Strong Girls, Inc. (the organization now known, as of October 2024, as Girls Inc. of Greater Pittsburgh), continues to serve on its Finance Committee, and is a member of its Emeritus Board. Other board positions include serving on the Advisory Board of Power Forward Inc. and as a Cabinet Member of the Capital Campaign for Light of Life Rescue Mission. Ms. Herrle received her BSBA degree from Robert Morris University, and in 2020 became NACD (National Association of Corporate Directors) Directorship Certified.

**Nathaniel S. Bonnell** joined the Board in August 2024. Mr. Bonnell is the Chairman, President and CEO of Citizens Bank of West Virginia, a $700 million community bank that operates six full-service banking locations in West Virginia. Mr. Bonnell is also President, CEO and a Board Member of Citizens Financial Corp., headquartered in Elkins, West Virginia. In Mr. Bonnell's 25+ year career at Citizens, he has served in various capacities including as the Chief Financial Officer, as well as Executive Vice President overseeing operations. With a background in accounting and finance, Mr. Bonnell is a Certified Public Accountant (CPA), having received the WVSCPA Merit Award for earning the highest score on the CPA exam in the state of West Virginia. He also maintains designations as a Certified Information Systems Auditor (CISA) and Chartered Global Management Accountant (CGMA). He is currently the Vice Chairman of the West Virginia Bankers Association and a member of the Government Relations Council of the American Bankers Association. He also serves as a member of the Board of Davis & Elkins College, the Randolph County Development Authority, and he previously served as President of the Board of the Randolph-Tucker Children's Advocacy Center. In addition, Mr. Bonnell is a member of the Mountain State Chapter of the Young Presidents Organization, the American Institute of CPAs, and the West Virginia Society of CPAs. He earned an MBA from West Virginia University and a BS in Accounting and Management from Davis & Elkins College.

**Glenn R. Brooks** joined the Board in January 2015 and was re-elected to the Board in 2022 for a term beginning January 2023. He is President of Leon N. Weiner & Associates, Inc., a Wilmington, Delaware based homebuilding, development and property management firm. The Weiner organization and its affiliated companies have developed and constructed more than 4,500 homes and 9,000 apartments as well as several hotels, office and retail properties. He is responsible for the strategic direction of the firm along with personal and professional development of the officers and employees of the company. He is a member of the firm's Board of Directors. He has been employed by the firm since 1986. Mr. Brooks served on the Bank's Affordable Housing Advisory Council between 2004 and 2012. He served as Vice Chairman of the Council in 2006 and 2007 and as Chairman from 2008 to 2010. Mr. Brooks served as the Chairman of the Building Committee of Grove United Methodist Church in West Chester, Pennsylvania from 2009 through 2010. He also served as the President of the Board of Trustees for five years and served on the church's Finance and Steering Team from 2015 through 2018. Mr. Brooks sits on the Multifamily Board of Trustees and served as Chairman of the Housing Credit Group Committee of the National Association of Homebuilders in 2015 and 2016. In 2021 he was appointed and currently serves on the board of managers of a privately held de novo hospitality company, Retreat Hotels and Resorts, LLC. Mr. Brooks was appointed to the Board of Managers of another affordable housing development company, Renewal Housing Associates, LLC. in 2023. He holds a Bachelor of Business Degree from the College of William & Mary in Virginia. Mr. Brooks is a NACD Board Leadership Fellow and earned a Certificate in Corporate Governance from Drexel University. Mr. Brooks was appointed to the Board of the National Association of Corporate Directors (Philadelphia Chapter) on January 1, 2026, for a 3-year term.

**Charles B. "Charlie" Crawford, Jr.** joined the Board in January 2026. Mr. Crawford is Chairman & CEO of Hyperion Bank (Hyperion), a community bank. A champion of community banking for more than 30 years, Mr. Crawford previously founded three successful Atlanta-based banks. He is Chair-elect of the Chief Executives Organization (CEO), having served previously as International Finance Chair and Senior Vice President. He completed his term as Board Chair of the Pennsylvania Association of Community Bankers (PACB) in Sept. 2025, after previously serving on its Diversity Task Force, and was named PACB's 2022 Banker of the Year. He also serves on the board of the Community Bankers Association of Georgia. Mr. Crawford joined Hyperion in 2017, leading its recapitalization in 2018 and expansion to Atlanta in 2019. In 2020, Hyperion launched Hyperion Mortgage, now licensed in Georgia, Alabama, Florida, New Jersey, Pennsylvania, South Carolina and Tennessee. Previously, Mr. Crawford founded and led Private Bank of Buckhead, which was later merged into a regional bank in 2017. A three-time Georgia Titan 100 honoree, he was named to the Titan 100 Hall of Fame in 2024. Mr. Crawford holds undergraduate degrees from the University of Pennsylvania and The Wharton School and an MBA from Georgia State University. He is a graduate of the LSU School of Banking and Leadership Atlanta and taught "Scaling a New Venture" at Georgia State for five academic years, earning the 2023 Harvey Brightman Part-Time Instructor Teaching Award. He also serves on the Advisory Board of Temple University's Fischer-Shain Center for Financial Services. Mr. Crawford serves as a director of McKenney's and Profitmaster Displays (Chairman) and on the boards of Hyperion and Hyperion Mortgage. He has received awards for entrepreneurship and nonprofit service, including board leadership roles with the J. Mack Robinson College of Business, The Carter Presidential Center, the Georgia Tennis Foundation, the Atlanta History Center, the Buckhead Coalition (Treasurer), and the Atlanta Track Club (Chair).

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**Romulo L. Diaz, Jr, Esq.** joined the Board in January 2021. Mr. Diaz is the Principal of Turtle on Post LLC, a nonprofit and board advisory services company. He has wide-ranging experience in the public and private sectors, including executive leadership, public policy, regulated industries, strategic planning, talent management, risk management, and corporate governance. Mr. Diaz currently serves as an advisor to PBJ Marketing and an independent director of the PBJ Marketing Foundation. He also serves on the boards of the Latino Corporate Directors Association, National Association of Corporate Directors (Philadelphia Chapter), Pan American Association of Philadelphia, Pennsylvania Energy Development Authority, Philadelphia Bar Association, and Philadelphia Museum of Art. Mr. Diaz is the former General Counsel of PECO Energy, a division of the Exelon Corporation (NASDAQ: EXC) and Pennsylvania's largest combined electric and natural gas utility; City Solicitor of Philadelphia; and Assistant Administrator of the U.S. Environmental Protection Agency. He began his career at the U.S. Department of Energy, where he served in various roles, including Counselor and Deputy Chief of Staff to the Secretary of Energy. He earned his BA in Plan II Liberal Arts Honors from the University of Texas at Austin and his JD from the University of Texas School of Law.

**James V. Dionise** joined the Board in January 2021. Mr. Dionise is a Director of NexTier Bank, N.A. Prior to its merger with NexTier Bank in 2024, Mr. Dionise served as President, Chief Executive Officer, and Director of Mars Bancorp, Inc. and its wholly-owned banking subsidiary Mars Bank. Mr. Dionise began his tenure with Mars Bank in 2007 as Executive Vice President and Chief Operating Officer. In 2008, Mr. Dionise was named President and Chief Executive Officer and elected to its Board of Directors. Prior to joining Mars Bank, Mr. Dionise held financial executive management-level positions with First National Bank of Pennsylvania, Great American Federal, MBNA, and PNC Bank. Mr. Dionise began his professional career in 1983 advancing to audit manager with the accounting firm Ernst & Young. Mr. Dionise served on the boards of the Pennsylvania Bankers Association and Pennsylvania Bankers Public Affairs Committee. Mr. Dionise also served as Chairman of the Pennsylvania Bankers Association. Mr. Dionise served on the boards of community organizations including Family Guidance, Inc., Pittsburgh CLO, and the Rotary Club of Rich-Mar. Mr. Dionise earned a BS in Accounting from The Pennsylvania State University. Mr. Dionise is a Certified Public Accountant.

**Angel L. Helm** joined the Board in April 2019. Ms. Helm is a former Managing Director of Wells Fargo Securities, from where she retired in 2012 after 30 years of service to the organization. In May 2021 through December 2021, Ms. Helm was engaged by Answers Pet Food Company as a consultant for the purpose of reviewing, revising and implementing new business operation strategies. In January 2020, Ms. Helm served as Interim Chief Executive Officer of Safe Berks, an agency that provides a safe haven and ongoing support system for victims of domestic violence and sexual assault. She also formerly served as Interim Chief Executive Officer of Olivet Boys and Girls Club of Reading and Berks County. Ms. Helm was a Trustee of Caron Treatment Centers, a leading addiction treatment facility, where she served as Vice Chair of the board, a member of the Executive, Compensation, and Audit Committees, and for five years prior to stepping down in September 2025, Finance Chair. In July 2020, Ms. Helm joined the Board of Directors of Tower Health System, headquartered in Reading, Pennsylvania, where she was a member of the Finance and Audit Committees. Her term ended December 31, 2023. She also served on the Board of Directors of Alvernia University in Pennsylvania for six years where she co-chaired the University's $9 million capital campaign and served as Enrollment Committee Chair, Finance Chair, and a member of the Audit Committee. Ms. Helm earned her MBA from St. Joseph's University and received her BA in Business/Managerial Economics from Gettysburg College.

**Blanche L. Jackson** joined the Board in January 2023. She is the Chief Executive Officer of Stepping Stones Community Federal Credit Union (Stepping Stones) in Wilmington, Delaware, a low-income designated, minority depository institution and CDFI. Ms. Jackson has served as CEO of Stepping Stones since 2018. She volunteered for over 10 years with the nonprofit organization and board of directors to help charter and launch the credit union, which was chartered in 2011. Its critical mission is to provide an inclusive and affordable option for everyone to have access to a federally insured financial institution. Ms. Jackson is responsible for ensuring the adequacy and soundness of the credit union's financial structure. Ms. Jackson's career began at the Delaware State Police Federal Credit Union, where she worked for over 20 years. As the Executive Vice President, she was responsible for day-to-day operations and for overseeing the accounting and finance department, including asset and liability management and its associated risks. She was also responsible for overseeing the lending department, which included an in-house mortgage department, and for implementing the Freddie Mac seller/servicer program. She currently serves on the board of directors of Inclusiv and serves as its Vice President. Inclusiv is a certified CDFI intermediary that provides capital, builds capacity, and advocates for member community development credit unions. In addition to her experience with Stepping Stones, Ms. Jackson has held a variety of leadership positions at other credit unions: COO, Tidemark Federal Credit Union, 2016 – 2018 and EVP, Delaware State Police Federal Credit Union, 1998 – 2016. Ms. Jackson holds a BS in Finance and holds the following certifications: Certified Chief Executive (CCE) – Credit Union Executive Society certified in May 2017, Nationally Certified Compliance Officer (NCCO) – National Association of Federal Credit Unions certified in April 1999. Ms. Jackson received her BS in Finance from Wilmington University.

**Sheryl S. Jordan** joined the Board in January 2024. She is the Executive Vice President and Managing Director, Financial Institutions Group, PNC Bank, N.A. Ms. Jordan has 30 years of experience in the banking industry and has been with PNC since 2000 and currently leads the Financial Institutions Banks vertical, with previous roles in the Strategic Partners Group as

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Sales Manager and Senior Vice President. Earlier roles include Treasury Sales Officer and Vice President at Bank of America and Management Associate at KeyCorp. Ms. Jordan is an active member in PNC's employee business resource groups, including Women Connect and the Pittsburgh African American group, as well as PNC's mentoring programs. Ms. Jordan is also a champion of childhood education and development, and supports PNC's Grow Up Great program, Coralus, a global non-profit supporting women entrepreneurs, the Greater Pittsburgh Community Food Bank, and Allegheny Intermediate Unit. She holds a BA in Economics and Business Administration from the University of Pittsburgh and an MBA from Georgia State University.

**Joseph W. Major** joined the Board in January 2022. Mr. Major is the Founder, Chairman of the Board and Chief Executive Officer of The Victory Bank. Mr. Major formerly served as the President and Chief Executive Officer of Patriot Bank Corp and Patriot Bank, and as President of Vartan National Bank. Mr. Major served as a director of The First National Bank of Liverpool and a director of ETA, a bank data processing service bureau located in central Pennsylvania. Mr. Major served on the boards of the Pennsylvania Bankers Association and the Pennsylvania Bankers Service Corporation from 2010-2019. He also served as Chairman of the Pennsylvania Bankers Association, and as a Director of the Pennsylvania Bankers Advanced School of Banking. Mr. Major is a standing faculty member for the Pennsylvania Banker's Advanced School of Banking. Mr. Major earned a BS in Business and a JD from the University of Akron.

**Thomas H. Murphy** joined the Board in November 2016. In 2025, he was named the Chief Transformation Officer, leading the University of Pennsylvania's reimagining the operational service model supporting Penn's education and research missions. Prior to this, Mr. Murphy served as the Chief Information Officer (CIO) at the University of Pennsylvania, a position he held since 2013, where he was responsible for the central IT organization, information systems and computing. From 2004 through 2012, Mr. Murphy was the Senior Vice President and Global CIO for AmerisourceBergen, a provider of pharmaceutical and healthcare services. He joined AmerisourceBergen from Royal Caribbean Cruise Lines where he also held the title of Global CIO. Mr. Murphy is the Chairperson of the Chief Information Security Officer coalition, co-founder and Board Member of the Technology Business Management Council, and is on the National Leadership Board of the Professional Development Academy.

**Dr. Howard B. Slaughter, Jr.** joined the Board in January 2020. Dr. Slaughter is President and Chief Executive Officer of Habitat for Humanity of Greater Pittsburgh (Habitat Pittsburgh). Prior to joining Habitat Pittsburgh, he was President and Chief Executive Officer of Christian Management Enterprises, LLC. Dr. Slaughter serves on the boards of the Pennsylvania Economic Development Financing Authority, the Howard Hanna Free Care Fund Foundation, and McAuley Ministries Foundation. He is also a member of the Operational Committee of the Pennsylvania Community Development Bank. He previously served on the board of the Pittsburgh Foundation, as well as on the Consumer Advisory Board of the Consumer Financial Protection Bureau and the Bank's Affordable Housing Advisory Council. Dr. Slaughter is a veteran of the U.S. Navy. He also served in the 479th Field Artillery Brigade in the U.S. Army Reserves. He earned his doctorate degree in information systems and communications from Robert Morris University, a master's degree in public management from Carnegie Mellon University's H. John Heinz III School of Public Management, an MBA degree from Point Park University, a BA from Carlow University and an AS degree in Financial Services from the Community College of Allegheny County.

**Jeane M. Vidoni** joined the Board in January 2019. As President and CEO of Penn Community Bank, Ms. Vidoni oversees one of Pennsylvania's largest mutual financial institutions. Ms. Vidoni's distinguished career in banking has spanned more than three decades. She has served in senior positions at local, regional and national financial institutions throughout the Philadelphia region over the course of her professional career. Prior to her tenure at Penn Community Bank, she held leadership roles at several financial institutions, including President and CEO of First Federal of Bucks County; Senior Vice President, Retail Distribution and Sales Incentives at Citizens Bank; Senior Vice President, Sales Manager at Harleysville National Bank; and Senior Vice President, Head of Retail Banking at Progress Bank. Ms. Vidoni earned her MBA from St. Joseph's University and her BS degree in Business Administration from Muhlenberg College.

**Audit Committee**

The Audit Committee has a written charter adopted by the Board. The Audit Committee is responsible for the appointment, compensation, and oversight of the Bank's independent Registered Public Accounting Firm (RPAF) and Chief Internal Auditor. The Audit Committee also pre-approves all auditing services and approves all audit engagement fees, as well as any permitted non-audit services to be performed for the Bank by the independent RPAF. The independent RPAF reports directly to the Audit Committee. The Bank's Chief Internal Auditor also reports directly to the Audit Committee. The Audit Committee assists the Board in fulfilling its responsibilities for general oversight of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's financial reporting processes and the audit of the Bank's financial statements, including the integrity of the Bank's financial statements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's administrative, operating, and internal accounting controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's compliance with legal and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The internal audit and independent auditors' qualifications and independence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The performance of the Bank's internal audit function and independent auditors.

Currently, the Audit Committee is composed of Mr. Dionise (Chair), Ms. Jackson (Vice Chair), Messrs. Bonnell and Crawford, and Ms. Helm. The Audit Committee regularly holds separate sessions with the Bank's management, internal auditors, and independent RPAF.

The Board has determined that Mses. Helm and Jackson and Messrs. Dionise, Bonnell and Crawford are "audit committee financial experts" within the meaning of the SEC rules.

**Executive Officers**

The following table sets forth certain information (ages as of February 28, 2026) regarding the executive officers of the Bank.

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| | | |
|:---|:---|:---|
| Executive Officer | Age | Capacity In Which Serves |
| David G. Paulson | 61 | President and Chief Executive Officer |
| Jonathan W. Bentrim | 50 | Chief Risk Officer |
| Mark S. Evanco | 62 | Chief Banking Officer |
| William List | 48 | Chief Business Officer |
| Pritha Madhavan | 52 | Chief Information Officer |
| John A. Ott | 49 | General Counsel, Corporate Secretary and Ethics Officer |
| Edward V. Weller | 63 | Chief Financial Officer |

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**David G. Paulson** is President and Chief Executive Officer of the Bank. In this capacity, he also serves on the Board of Directors for both the Council of Federal Home Loan Banks and the Office of Finance. Mr. Paulson joined the Bank in 2010 as Director, Mortgage Finance and Balance Sheet Management to help the cooperative navigate the uncertainty and new regulations resulting from the 2008 financial crisis. He was promoted to Managing Director of Capital Markets in 2012, was named Chief Financial Officer in 2013, and assumed the role of Chief Operating Officer in 2020. In his current role, Mr. Paulson leverages more than 30 years of banking, treasury and capital markets experience. Prior to joining the Bank, Mr. Paulson was Senior Vice President at National City Corporation where he directed the treasury function, focusing on balance sheet risk management, mortgage servicing rights hedging and investment management portfolio. Before that, he was an Investment Portfolio Manager at Integra Financial and Equibank. Mr. Paulson has a BS in Finance and an MBA, both from Duquesne University. He is a board member for the National Aviary and Junior Achievement of Western Pennsylvania.

**Jonathan W. Bentrim** is Chief Risk Officer (CRO) of the Bank and leads the Corporate Risk Management teams. In his role as CRO, Mr. Bentrim oversees market, credit, model and enterprise Risk as well as the Bank's regulatory relationship. Mr. Bentrim joined the Bank in 2012 as the Chief Internal Auditor, assumed the Senior Director Enterprise Risk Management role in 2021 and was promoted to CRO in February 2025. Previously, Mr. Bentrim worked at senior-level audit positions at Capmark Bank, Orleans Homebuilders, GMAC Commercial Mortgage, and also held an audit role at Ernst & Young. Mr. Bentrim is a Certified Public Accountant and a Certified Internal Auditor, has over 25 years of progressive leadership in financial services, and has received a BS in Accounting from Franklin & Marshall College, an MBA from Villanova University, and executive education for risk management from the Wharton School at the University of Pennsylvania. Mr. Bentrim also maintains the following designations: CISA and CCSA.

**Mark S. Evanco** is Chief Banking Officer of the Bank, a position he has held since December 2024. He oversees the core activities of Member Business Development, Capital Markets, and Community Investments. He provides leadership to key member facing activities, including business development, new membership, product development, Marketing/Communications, Mortgage Partnership Finance, and Community Investments. Prior to joining the Bank in 2014, Mr. Evanco held various key leadership positions in the Treasury and Capital Markets areas of PNC Bank, N.A. and PNC Capital Markets, LLC. Mr. Evanco holds a BS degree in Business Administration, with concentrations in Finance and Management Information Systems, from the University of Buffalo.

**William List** is Chief Business Officer of the Bank. He joined the Bank in 2006 and has held various management and leadership roles throughout his tenure. He leads the Capital Markets, Mortgage Partnership Finance, and Membership teams, which are responsible for driving the financial management and strategy of the balance sheet, member outreach and

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engagement and business development. Mr. List has more than 25 years of financial management and banking experience. Prior to joining the Bank, he held portfolio analyst and trading positions at Federated Investors and Mellon Financial Corporation. Mr. List holds a BS from Pennsylvania State University and an MBA, with a concentration in Finance, from Duquesne University. He is also active in his community and currently serves on the boards of North Hills Community Outreach and Wildwood Golf Club.

**Pritha Madhavan** is Chief Information Officer of the Bank. She joined the Bank in 2014 as Director, Planning and Architecture and was promoted to Senior Director, Business Solutions in 2019, to Deputy Chief Information Officer in 2023, and to her current role of Chief Information Officer in 2026. Ms. Madhavan is responsible for all aspects of information technology, including cyber-security. She leads the Information Technology business applications, solutions and data management teams, and also directs Bank-wide work around efficiency, productivity and technology investment planning. Ms. Madhavan has more than 25 years of financial services IT leadership experience and came to the Bank from Bank of America where she was a Vice President. Ms. Madhavan holds a BA from Carleton University, holds multiple technology-focused certifications, and is a Lean Six Sigma Green Belt. She is an active volunteer in her community, is a professionally trained classical singer, and enjoys cooking and traveling.

**John A. Ott** is General Counsel, Corporate Secretary and Ethics Officer of the Bank. He joined the Bank in January 2005 as a staff attorney and most recently served as Senior Director, Deputy General Counsel and Ethics Officer until his promotion to his current role in September 2025. Mr. Ott has executive responsibilities for the Bank's legal, Board governance, and ethics functions. He provides advice and counsel on legal, ethics, compliance, legislative, regulatory, and other issues affecting the Bank, manages Bank attorneys, serves as the legal advisor to the Bank's Board, and provides support to the Governance and Public Policy Committee of the Bank's Board. Mr. Ott is a member of the Pennsylvania Bankers Legal Affairs Committee and a graduate of Leadership Pittsburgh. Mr. Ott holds a JD from the University of Pittsburgh School of Law, and a BSBA with a concentration in Finance and Investment Management from Duquesne University.

**Edward V. Weller** is Chief Financial Officer (CFO) of the Bank. He leads the Finance and Centralized Operational Resources teams. In his role as CFO, Mr. Weller oversees the Bank's internal, regulatory and Board financial reporting along with related accounting and analysis functions, strategic planning and presentations to ratings agencies and other constituents. Mr. Weller, who joined the Bank in 2011 as Controller and was promoted to Chief Accounting Officer in 2013 and CFO in 2023, has more than 25 years of senior-level finance and accounting leadership experience, including prior roles at PNC and PwC. Mr. Weller holds an MBA from the University of Pittsburgh and a BA from Grove City College. He is both a Certified Public Accountant and Certified Management Accountant. Mr. Weller has held leadership roles in several non-profit organizations in his community.

Each executive officer serves at the pleasure of the Board.

***Code of Business Conduct***

The Bank has adopted a code of ethics for all of its employees and directors, including its Chief Executive Officer, Chief Financial Officer (principal financial officer), Chief Accounting Officer (principal accounting officer), and those individuals who perform similar functions. A copy of the code of ethics, referred to as the Code of Business Conduct, is on the Bank's public website, *<u>www.fhlb-pgh.com</u>*, and will be provided without charge upon written request to the Legal Department of the Bank at 301 Grant Street, Suite 2000, Pittsburgh, Pennsylvania 15219, Attention: General Counsel. Any amendments or waivers to the Bank's Code of Business Conduct that apply to the Bank's Chief Executive Officer, Chief Financial Officer (principal financial officer), Chief Accounting Officer (principal accounting officer), and those individuals who perform similar functions will be posted to the Bank's public website.

***Insider Trading Policies and Procedures***

The Bank is cooperatively owned. The Bank's member institutions (and, in limited circumstances, the Bank's former member institutions) own the Bank's capital stock. No individuals (including the Bank's directors, officers and employees) may own the Bank's capital stock.

The Bank's capital stock can only be acquired, redeemed or repurchased at a par value of $100 per share. The Bank's capital stock is not publicly traded, and no market mechanism exists for the disposition of its capital stock outside its cooperative structure. Members must purchase and maintain capital stock in the Bank as a condition of membership and may be required to purchase additional stock in order to transact advances, MPF and/or letters of credit activity with the Bank. Transactions in the Bank's capital stock are governed by applicable regulatory requirements and the Bank's Capital Plan (for more information on the Bank's Capital Plan see the Capital Resources section of Item 1. Business in this Form 10-K).

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In addition to the Bank's cooperative structure, the Bank's primary source of funding is the issuance of debt securities, which are consolidated obligations issued as bonds and discount notes (together with the Bank's capital stock, the Bank's Securities), that are sold by dealers to investors in the public (for more information on the Bank's consolidated obligations see the Debt Financing — Consolidated Obligations section of Item 1. Business in this Form 10-K).

The Bank therefore has adopted a Securities Trading Policy aimed at promoting compliance with insider trading laws, rules, and regulations applicable to the Bank. This policy prohibits all directors, officers and employees and related persons in possession of material nonpublic information relating to the Bank or the FHLBank System from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• buying or selling Bank Securities or engaging in any other action to take advantage of that information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• communicating that information to other persons not having a need to know the information for legitimate, Bank-related reasons.

This policy also extends similar prohibitions on such persons when they have obtained information in the course of employment or association with the Bank relating to any Bank member institution, counterparty, vendor or other entity, including other FHLBanks, and their respective securities. The Bank requires its directors, officers and employees to review and acknowledge the policy annually.

Further, the policy requires any director, officer or employee seeking to purchase consolidated obligations to notify the Bank's ethics officer prior to the purchase or sale of these debt securities and prohibits trading activity in certain listed consolidated obligations.

Further, the policy provides that the Bank may institute trading blackout periods when certain material nonpublic information is shared with the Board. During these periods, no director may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• buy shares of Bank capital stock not needed to support Bank activity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• request the repurchase of any excess Bank capital stock.

The policy provides that such periods stay in effect until the third business day following the date that information is made public.

The Bank believes that this policy and the related procedures are reasonably designed to promote compliance with insider trading laws, rules, regulations and applicable listing standards.

The Bank's Securities Trading Policy is filed as Exhibit 19.1 to the 2024 Form 10-K filed with the SEC on March 5, 2025. The foregoing description of the policy is not intended to describe all aspects of the policy and is qualified in its entirety by reference to the terms of the policy.

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**Item 11: Executive Compensation**

**Compensation Discussion and Analysis**

**Introduction**

&nbsp;&nbsp;&nbsp;&nbsp; This Compensation Discussion and Analysis (CD&A) presents information related to the Bank's compensation program for its Principal Executive Officer (the CEO) and other Named Executive Officers (other NEOs). The information includes, among other things, the objectives of the Bank's compensation program and the elements of compensation the Bank provides to its CEO and other NEOs.

The Bank's Board has determined that it is necessary to consider the nature, level, and cumulative effect of all elements of the Bank's compensation and benefits program to establish each element of the program at the appropriate level.

The NEOs for the year ended December 31, 2025 are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• David G. Paulson, President and CEO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• John P. Cassidy, Chief Technology and Operations Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mark S. Evanco, Chief Banking Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Edward V. Weller, Chief Financial Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• John, A. Ott, General Counsel, Corporate Secretary and Ethics Officer.

**2025 Compensation Philosophy**

The Bank's compensation program is designed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Attract, motivate, and retain staff critical to the Bank's long-term success and thereby

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enable the Bank to meet its public policy mission while balancing the evolving needs of customers and shareholders.

The Bank's 2025 executive compensation for the CEO and other NEOs was determined using benchmark data from three peer groups: 1) other FHLBanks as the principal peer group ("FHLBanks peer group"); 2) publicly traded commercial financial institutions with $10 billion to $20 billion in assets as the primary commercial peer group if FHLBank data was unavailable; and 3) commercial financial services companies with assets between $20 billion and $65 billion if data in the first two peer groups was not available.

The peer group data was collected and analyzed by the Bank's compensation consultant, McLagan, an Aon Hewitt company. For certain positions, when considering data from the larger peer group companies, and with input from McLagan, applicable job specific benchmarks for the Bank's CEO and other NEOs were identified, as they were determined to be market comparable and represented realistic employment opportunities. Typically, the identified positions at the larger peer group institutions were at a lower level than the comparative Bank executive officer title (e.g., comparison of the CEO position to a COO or similar position(s) at such larger peer group companies). The Bank targets the median total compensation for the benchmarked positions. See the table below setting forth the peer companies used in benchmarking both base salary and incentive compensation. The Bank does not offer equity-based compensation as is typically offered in publicly traded financial services institutions; however, the Bank's incentive compensation and enhanced retirement benefits taken together for the CEO and other NEOs is intended to provide a competitive compensation package.

For 2025, the Bank executive officer incentive compensation plan (in which the CEO and other NEOs participated) continued to be aligned with market practices and provided for deferral of 50% of the incentive award, with payment of such deferred amount contingent on the Bank meeting ongoing performance criteria over the long-term performance period.

As part of an overall review of the Bank's compensation programs, the Bank evaluated the various aspects of these programs, taking into consideration associated risk as it pertains to the expectations and goals of each element of compensation. The Bank does not offer commission or similar bonus compensation programs. The Bank does, however, offer incentive compensation plans with performance goals that are consistent with the risk appetite of the Bank. Additionally, to encourage consideration of the Bank's long term performance, the Bank's incentive compensation plans for its CEO and other NEOs require deferred payment of a portion of earned incentive compensation and condition the payment of these deferred amounts based on continuing to meet certain performance requirements. Details regarding the 2025 incentive compensation goals are discussed below.

As discussed above, for 2025 the Bank engaged McLagan to perform a base salary and incentive compensation benchmarking review based on three peer groups for the CEO and other NEOs which, along with consideration of the CEO's and

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other NEOs' performance, is used to establish their annual base salaries. The following is a list of peers used in the benchmarking, which list contains the three peer groups discussed above.

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| | | |
|:---|:---|:---|
| **<u>Peer Group 1: Federal Home Loan Banks</u>** | Live Oak Bancshares, Inc. | City National Bank of Florida |
| Federal Home Loan Banks <sup>(1)</sup> | Merchants Bank of Indiana | Columbia Banking System, Inc. |
| **<u>Peer Group 2: Banks $10B-$20B</u>** | NBT Bancorp Inc. | Commerce Bancshares, Inc. |
| Apple Financial Holdings | Northwest Bancshares, Inc. | Cullen/Frost Bankers, Inc. |
| BancFirst Corporation | OceanFirst Financial Corp. | Customers Bancorp, Inc. |
| Banner Bank | OFG Bancorp | Eastern Bankshares, Inc. |
| Bell State Bank & Trust | Pacific Premier Bancorp, Inc. | EverBank, N.A. |
| Berkshire Bank | Renasant Corporation | F.N.B. Corporation |
| Berkshire Hills Bancorp, Inc. | Rockland Trust Company | First Hawaiian Bank |
| Brookline Bancorp, Inc. | Sandy Spring Bancorp, Inc. | First Interstate BancSystem, Inc. |
| Central Bancompany, Inc | Seacoast Banking Corporation of Florida | FNB Omaha |
| Columbia Bank MHC | ServisFirst Bancshares, Inc. | Fulton Financial |
| Community Bank System Inc. | Stellar Bancorp, Inc. | Glacier Bancorp, Inc. |
| Community Financial System, Inc. | TowneBank | Hancock Bank |
| CVB Financial Corp. | Trustmark National Bank | MidFirst Bank |
| Dime Community Bancshares, Inc. | Veritex Holdings, Inc. | Old National Bank |
| Eagle Bancorp, Incorporated | Washington Trust Bank | Pinnacle Financial Partners, Inc. |
| Enterprise Financial Services Corp | **<u>Peer Group 3: Banks $20B-$65B</u>** | Provident Financial Services |
| First BanCorp. | American AgCredit | Simmons First National Corporation |
| First Busey Corporation | Ameris Bancorp | SouthState Corporation |
| First Commonwealth Financial Corporation | Associated Banc-Corp | Synovus |
| First Financial Bancorp | Atlantic Union Bankshares Corporation | Texas Capital Bank |
| First Foundation Inc. | Axos Financial, Inc. | TriState Capital |
| First Merchants Corporation | Banc of California, Inc. | UMB Financial Corporation |
| First United Bank – OK | Bank of Hawaii Corporation | Umpqua Holding Corporation |
| Hilltop Holdings Inc. | Bank OZK | United Bank - VA |
| Hope Bancorp, Inc. | BankUnited, Inc. | United Community Banks, Inc. |
| IDB Bank | BOK Financial Corporation | Valley National Bank |
| Independent Bank Corp. | Cadence Bank | Wintrust Financial Corp. |
| International Bancshares Corporation | Cathay General Bancorp | WSFS Financial Corporation |

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*Note:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> The "Federal Home Loan Banks" is the FHLBanks peer group that includes all other Federal Home Loan Banks.

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**Human Resources and OMWI Committee's Role and Responsibilities**

The Human Resources and OMWI Committee (formerly known as Human Resources Committee) of the Board is responsible for establishing and overseeing the CEO's compensation and overseeing other NEOs' compensation. This includes setting the objectives of and reviewing performance under the Bank's compensation, benefits, and perquisites programs for the CEO and other NEOs.

Additionally, the Human Resources and OMWI Committee has adopted the practice of periodically retaining compensation and benefit consultants and other advisors, as well as reviewing analysis from the Bank's Human Resources Department (HR Department), to assist in performing its duties regarding the CEO's and other Executives' compensation.

**Role of the Federal Housing Finance Agency**

The Finance Agency has been granted certain authority over executive compensation. Specifically under the Housing Act: (1) the Director of the Finance Agency is authorized to prohibit executive compensation that is not reasonable and comparable with compensation in similar businesses; (2) if an FHLBank is undercapitalized, the Director of the Finance Agency may restrict executive compensation; and (3) if an FHLBank is determined to be in a troubled condition, the Finance Agency may reduce or prohibit certain golden parachute payments in the event that an FHLBank is subject to a triggering event (for example, insolvency, subject to appointment of a conservator or receiver). Under the Finance Agency's Executive Compensation Regulation, additional advance notice and approval requirements are imposed in regard to an FHLBank entering into or adopting: (1) employment agreements; (2) severance policy/agreements; (3) incentive compensation award payouts; (4) material modifications to nonqualified plans; and (5) ad hoc termination payments. The Finance Agency has implemented this authority by requiring the FHLBanks to submit to the Finance Agency for non-objection review salary, incentive compensation and benefits changes which would affect an FHLBank's NEOs.

The Finance Agency has articulated the following standards against which it evaluates the compensation of each FHLBank executive: (1) each individual executive's compensation should be reasonable and comparable to that offered to executives in similar positions at comparable financial institutions; (2) such compensation should be consistent with sound risk management and preservation of the par value of FHLBank stock; (3) a significant percentage of incentive-based compensation should be tied to longer-term performance indicators; and (4) the Board should promote accountability and transparency with respect to the process of setting compensation.

**Determining the CEO's Cash Compensation**

For Mr. Paulson's 2025 compensation, the Human Resources and OMWI Committee did not recommend any changes to his base salary or incentive compensation, as he had recently been promoted to the President and CEO role in October of 2024.

**Determining Other NEOs' Cash Compensation**

In 2025, other NEOs' base salaries and incentive compensation levels were determined by the CEO and validated using the results of the McLagan study, which offered various data points for consideration, and which was used for benchmarking the other NEOs' compensation at approximately the median for the FHLBanks peer group, and were reviewed and approved by the Human Resources and OMWI Committee. The annual review of the McLagan study, 2025 budget parameters in a competitive talent market, and corresponding Board review of these findings validated the appropriateness of compensation levels for the CEO and other NEOs. Salaries are reflected in the Summary Compensation Table presented in this Item 11.

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**Executive Officer Incentive Plans**

***2025 Executive Officer Incentive Compensation Plan (2025 Plan).*** The 2025 Plan is designed to retain and motivate the CEO and other NEOs and reward (1) achievement of key annual goals and (2) maintenance of satisfactory financial condition and member value over the longer term. The 2025 Plan established the following award opportunity levels (expressed as a percentage of base salary):

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| | | | |
|:---|:---|:---|:---|
| **Participant Level** | **Threshold** | **Target** | **Maximum** |
| A | 60% | 75% | 100% |
| B\* | 55% | 70% | 85% |
| C | 50% | 65% | 80% |
| D | 40% | 55% | 70% |

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\*No NEOs participated in the Level B Participant target award opportunity in 2025.

The Board has evaluated the performance of the CEO and other NEOs against the incentive goals for 2025 set forth in the Non-Equity Incentive Plan Compensation section following the Summary Compensation Table below and determined the total incentive award (if any) based on that performance. The total incentive award was divided into two parts: (1) a current incentive award; and (2) a deferred incentive award, payable in installments. The following table illustrates how the 2025 current awards and deferred incentive award installments would be paid under the 2025 Plan:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| Current Incentive Award | 50% of total award | 2026 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2027 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2028 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2029 |

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\* Payment, if any, will be made no later than March 15 in the year indicated.

Payment of each deferred incentive award installment under the 2025 Plan is contingent on the Bank continuing to meet certain Bank performance criteria and the participant meeting his or her requirements described below. The amount of the deferred incentive award payout opportunity is set forth in the Grants of Plan-Based Awards table. See "Stated Bank Performance Criteria, 2025" under Grants of Plan-Based Awards table for details regarding the Bank performance criteria.

***Participant Requirements of Continued Employment and Satisfactory Performance.*** Participants who terminate employment with the Bank for any reason other than death, disability, involuntary termination without cause or retirement prior to the current incentive award payout date will not be eligible for an award. Participants who terminate employment due to retirement or involuntary termination (other than for cause) after the current incentive award payout date (March 15, 2026), but before completion of the payment of all corresponding deferred incentive award installments shall receive such deferred incentive award installment payments at the same time as such payments are made to plan participants who are current Bank employees. Participants who otherwise resign employment before the completion of the payment of all corresponding deferred incentive award installments shall not receive payment of such installments. In the event of a participant's employment termination due to death or disability, the participant shall receive payout of deferred award installments. Any participant who is terminated by the Bank for cause shall not receive payment of unpaid deferred incentive award installments. Finally, the plan provides for vesting of deferred award installments in the event of a Change in Control, as such term is defined in the 2025 Plan. "Change in Control" as defined in the 2025 Plan means: (i) the merger, reorganization, or consolidation of the Bank with or into another FHLBank or other entity, (ii) the sale or transfer of all or substantially all of the business or assets of the Bank to another FHLBank or other entity, (iii) the purchase by the Bank or transfer to the Bank of all or substantially all of the business or assets of another FHLBank, (iv) a change in the composition of the Board, as a result of one or a series of related transactions, that causes the number of directors of the Bank elected by members of the Bank located in Delaware, Pennsylvania and West Virginia to cease to constitute a majority of the directors of the Bank that are elected by members of the Bank (excluding, for purposes of this clause (iv), non-member independent directors), or (v) the liquidation of the Bank. See Exhibit 10.14 to the 2024 Form 10-K for the full terms of the 2025 Plan.

In addition to deferred incentive award installment payments, the Bank also maintains a clawback policy in the 2025 Plan. The 2025 Plan authorizes the Board to clawback incentive-based compensation paid to executive officers in the event of gross misconduct, gross negligence, materially inaccurate financial statements, erroneous performance metrics related to incentive goal calculation or conviction of a felony. The Board may, in its sole discretion, decline to adjust the terms of any outstanding award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to a participant or the Bank. The 2025 Plan provides that the Board will utilize its discretion to reduce the amount of any current incentive award payment and

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any deferred incentive award installment payment if it determines that (i) operational errors or omissions resulted in material revisions to the Bank's financial results, information submitted to the Finance Agency, or data used to determine incentive award payment amounts, (ii) the submission of information to the SEC, the OF, and/or the Finance Agency has not been provided in a timely manner or (iii) the Bank fails to make sufficient progress, as determined by the Finance Agency and communicated to Bank management and/or the Board by the Finance Agency, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention.

***2026 Executive Officer Incentive Compensation Plan (2026 Plan).*** The 2026 Plan is pending non-objection from the Finance Agency and is materially the same as the 2025 Plan noted above with the same performance requirements, clawback mechanism and award eligibility levels, except for one change that increases the Level A Participant target award opportunity from 75% to 80%. Following December 31, 2026, the Board will evaluate performance against the incentive goals set forth under the Grants of Plan-Based Awards table applicable to awards granted for 2026 and determine the total incentive award (if any) based on that performance. The total incentive award will be divided into two parts: (1) a current incentive award; and (2) a deferred incentive award, payable in installments. The following table illustrates how the 2026 current awards and deferred incentive award installments would be paid under the 2026 Plan:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| Current Incentive Award | 50% of total award | 2027 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2028 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2029 |
| Deferred Incentive Award installment | Up to 33 1/3% of deferred incentive award | 2030 |

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\* Payment, if any, will be made no later than March 15 in the year indicated.

Payment of each deferred incentive award installment under the 2026 Plan is contingent on the Bank continuing to meet certain Bank performance criteria and the participant meeting his or her requirements described below. The amount of the deferred incentive award payout opportunity is set forth in the Grants of Plan-Based Awards table. See "Stated Bank Performance Criteria, 2026" under Grants of Plan-Based Awards table for details regarding the performance criteria.

***Participant Requirements of Continued Employment and Satisfactory Performance.*** These terms in the 2026 Plan are the same as set forth in the 2025 Plan described above.

**Additional Incentives for Other NEOs**

From time to time, the CEO has recommended for the other NEOs, and the Board has approved, additional incentive awards in connection with specific projects or other objectives of a unique, challenging, and time-sensitive nature. An additional incentive award of a $50,000 retention bonus was granted to Mr. Ott in 2025.

**Perquisites and Other Benefits**

The Board views the perquisites afforded to the CEO and other NEOs as an element of the total compensation program, provided primarily as a benefit associated with their overall position duties and responsibilities*.* Examples of perquisites for the CEO and/or other NEOs may include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Personal use of a Bank-owned/leased automobile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial and tax planning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Payment of relocation expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business club membership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Parking

The Bank may also provide a tax gross-up for some of the perquisites offered, including relocation benefits. Perquisites for the CEO and other NEOs are detailed on the Summary Compensation Table and accompanying narrative, where an individual's aggregate perquisites are $10,000 or more.

**Employee Benefits**

The Board and Bank management are committed to providing competitive, high quality benefits designed to promote health, well-being, and income protection for all employees. The Bank offers all employees a core level of benefits and the opportunity to choose from a variety of optional benefits. Core and optional benefits offered include, but are not limited to, medical, dental,

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prescription drug, vision, long-term disability, short-term disability, flexible spending accounts, worker's compensation insurance, and life and accident insurance. The CEO and other NEOs participate in these benefits on the same basis as all other full-time employees. In addition, the CEO and other NEOs are eligible for individual disability income insurance if the individual's salary exceeds the monthly long-term disability limit.

**Qualified and Nonqualified Defined Benefit Plans**

The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified, multi-employer defined-benefit retirement plan. The Pentegra Defined Benefit Plan is a funded, noncontributory plan that covers eligible employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For all employees hired prior to January 1, 2008, benefits under the Pentegra Defined Benefit Plan are based upon a 2% accrual rate, the employees' years of benefit service and the average annual salary for the three consecutive years of highest salary during benefit service. The regular form of retirement benefits provides a single life annuity, with a guaranteed minimum 12-year payment. A lump-sum payment and other additional payment options are also available. Employees are not vested until they have completed five years of employment. The benefits are not subject to offset for Social Security or any other retirement benefits received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For all employees hired between January 1, 2008 and December 31, 2018, benefits under the Pentegra Defined Benefit Plan are based upon a 1.5% accrual rate, the employees' years of benefit service and the average annual salary for the five consecutive years of highest salary during benefit service. The regular form of retirement benefit payment is guaranteed for the life of the retiree but not less than 120 monthly installments. If a retiree dies before 120 monthly installments have been paid, the beneficiary would be entitled to the commuted value of such unpaid installments paid in a lump sum. Employees are not vested until they have completed five years of employment. The benefits are not subject to offset for Social Security or any other retirement benefits received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees hired on or after January 1, 2019 are not eligible to participate in the Pentegra Defined Benefit Plan and will not accrue benefits. For all employees hired prior to January 1, 2019, benefits will continue to accrue. If an employee was terminated prior to January 1, 2019 and then is subsequently re-hired on or after January 1, 2019, he/she is not eligible to re-join the Pentegra Defined Benefit Plan. The CEO and other NEOs hired prior to January 1, 2019 are not impacted by this change in benefits.

The CEO and other NEOs hired prior to January 1, 2019 also participate in a Supplemental Executive Retirement Plan (SERP). The SERP provides the CEO and other NEOs with a retirement benefit that the Bank is unable to offer under the Pentegra Defined Benefit Plan due to Internal Revenue Code (IRC) and Pentegra Defined Benefit Plan limitations, including the IRC limitations on qualified pension plan benefits for employees earning cash compensation of at least $350,000 for 2025.

As a nonqualified plan, the SERP benefits do not receive the same tax treatment and funding protection as the Pentegra Defined Benefit Plan, and the Bank's obligations under the SERP are a general obligation of the Bank. The terms of the SERP provide for distributions from the SERP upon termination of employment with the Bank or in the event of the death or disability of the employee. Payment options under the SERP include annuity and lump-sum options.

**Qualified and Nonqualified Defined Contribution Plans**

Eligible employees have the option to participate in the Bank's Defined Contribution Plan (Thrift Plan), a qualified defined contribution plan under the IRC. Subject to IRC and Thrift Plan limitations, employees can contribute up to 50% of their base salary in the Thrift Plan. The Bank matches 100% of employee contributions up to 6% of total eligible earnings. This matching contribution is immediately vested.

For all employees hired on or after January 1, 2019, the Bank will also contribute under the Thrift Plan an amount equal to 4% of total eligible earnings annually if the following eligibility requirements are met: (1) employed on December 31; and (2) completed 1,000 hours of service during the plan year. This contribution vests after 3 years of service.

In addition to the Thrift Plan, the CEO and other NEOs are also eligible to participate in the Supplemental Thrift Plan, an unfunded nonqualified defined contribution plan that, in many respects, mirrors the Thrift Plan. The Supplemental Thrift Plan ensures, among other things, that the CEO and other NEOs whose benefits under the Thrift Plan would otherwise be restricted by certain provisions of the IRC or limitations in the Thrift Plan are able to make elective pretax deferrals and receive the Bank matching contributions on those deferrals. In addition, the Supplemental Thrift Plan permits deferrals of Bank matching contributions on the current portion of the incentive compensation awards, subject to the limits on deferrals of compensation

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under the Supplemental Thrift Plan. Participants are permitted to elect to defer a portion of their deferred incentive awards to this Plan as well. Any such awards which are deferred to the Supplemental Thrift Plan are subject to a separate payment election.

The CEO and other NEOs may defer up to 80% of their eligible cash compensation, less their contributions to the qualified Thrift Plan. For each deferral period in the Supplemental Thrift Plan, the Bank credits a matching contribution equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 200% on employee's 3% contribution, up to 6% of total eligible earnings; less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank's matching contribution to the qualified Thrift Plan.

The terms of the Supplemental Thrift Plan generally provide for distributions upon termination of employment with the Bank, in the event of the death of the employee or upon disability, at the discretion of the Human Resources and OMWI Committee, and in accordance with applicable IRC and other requirements. Payment options under the Supplemental Thrift Plan include a lump-sum payment and annual installments for up to 10 years. No loans are permitted from the Supplemental Thrift Plan.

The current incentive award portion of any incentive compensation award for the CEO and other NEOs is eligible for a Bank matching contribution under the Supplemental Thrift Plan; any incentive award installments further deferred to the Supplemental Thrift Plan are not eligible for a Bank matching contribution. In addition, if a Supplemental Thrift Plan participant has contributed the maximum amount of employee contributions under the qualified Thrift Plan but was credited with matching Bank contributions to the Thrift Plan at a limited level due to IRC or Thrift Plan limitations, the participant is credited with an additional Bank contribution to the Supplemental Thrift Plan calculated after taking into account the Bank matching contributions actually credited to the Thrift Plan for the plan year. A description of the Supplemental Thrift Plan is also contained in the Supplemental Thrift Plan filed as Exhibit 10.1 to the Bank's Second Quarter 2019 Form 10-Q.

**Rabbi Trust Arrangements**

The Bank has established Rabbi trusts to partially help secure benefits under both the SERP and Supplemental Thrift Plan. See the Pension Benefits Table and Nonqualified Deferred Compensation Table and narratives below for more information.

**Additional Retirement Benefits**

The Bank offers post-retirement medical benefit dollars in the form of a Health Reimbursement Account (HRA) for eligible retirees and their spouses age 65 and older. HRA amounts can be used to purchase individual healthcare coverage and other eligible out-of-pocket healthcare expenses.

**Severance Policy (excluding Change-in-Control)**

The Bank provides severance benefits to the CEO and other NEOs. These benefits reflect the potential difficulty employees may encounter in their search for comparable employment within a short period of time.

The Bank's severance policy is designed to help bridge this gap in employment. The policy provides the following for the CEO and the other NEOs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Four weeks' base salary continuation per year of service, with a minimum of 26 weeks and a maximum of 52 weeks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taxable compensation in the amount equivalent to the amount the Bank pays for medical coverage for its active employees for the length of the salary continuation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Individualized outplacement service for a maximum of 12 months.

The Board provided a separate severance agreement as part of the employment offer for the CEO. It is the same as above except that it provides for severance in the amount of 12 months of salary which is more fully described in the Post-Termination Compensation Table below.

**Change-in-Control (CIC) Agreements**

The Bank has entered into CIC agreements with the CEO and other NEOs. The Board believes that CIC agreements are an important recruitment and retention tool and that such agreements enable the CEO and other NEOs to effectively perform and meet their obligations to the Bank if faced with the possibility of consolidation with another FHLBank.

In the event of a merger of the Bank with another FHLBank, where the merger results in the termination of employment (including resignation for "good reason" as defined under the CIC agreement) for the CEO or any other Executives, each such individual(s) is (are) eligible for severance payments under his/her CIC agreement. Such severance is in lieu of severance under

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the severance policy discussed above. The severance policy (and in the case of the CEO, his separate severance agreement) continues to apply to employment terminations of the other NEOs, other than those resulting from a Bank merger.

Benefits under the CIC agreement for the CEO and other NEOs are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2.99 times base salary (CEO); two times base salary (other NEOs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the CEO, a payment of 2.99 times target incentive award opportunity in the year of termination, a pro-rated incentive payment in the year of termination and a payment equal to the additional benefit that the CEO would have received under the Bank's qualified and nonqualified retirement plans calculated as if the CEO had three additional years of both age and service at the time of separation from the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the other NEOs, a payment of two times target incentive award opportunity in the year of termination, a pro-rated incentive payment in the year of termination and a payment equal to the additional benefit that the other NEOs would have received under the Bank's qualified and nonqualified retirement plans calculated as if the other NEOs had two additional years of both age and service at the time of separation from the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An amount equal to three (CEO) or two (other NEOs) times 6% of the NEO's annual compensation (as defined in the Supplemental Thrift Plan) at the time of separation from the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taxable compensation equivalent to the Bank's monthly contribution to its active employees' medical plan coverage for the benefits continuation period of 18 months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Individualized outplacement service for a maximum of 12 months and financial planning.

See Exhibit 10.9.1 to the Bank's second quarter 2016 Form 10-Q for details regarding the change-in-control agreements.

**Compensation Committee Interlocks and Insider Participation**

During 2025, the following directors served on the Bank's Human Resources and OMWI Committee: Ms. Jeane M. Vidoni, Chair, Mr. Romulo L. Diaz, Jr., Esq., Vice Chair, Mr. Thomas A. Hendry (whose directorship was eliminated by the FHFA as of December 31, 2025), Ms. Sheryl S. Jordan and Mr. Joseph W. Major. No member of the Bank's Human Resources and OMWI Committee has at any time been an officer or employee of the Bank. None of the Bank's executive officers have served, or are serving, on the Board or the compensation committee of any entity whose executive officers served on the Bank's Human Resources and OMWI Committee or Board. With respect to related party transactions, if any, and the independence of the directors serving on the Human Resources and OMWI Committee during 2025, see Item 13. Certain Relationships and Related Transactions and Director Independence of this Form 10-K.

**Compensation Committee Report**

The Human Resources and OMWI Committee has reviewed and discussed the CD&A with management. Based on that review and discussion, the Human Resources and OMWI Committee has recommended to the Board that the CD&A be included in the Bank's 2025 Form 10-K.

The Human Resources and OMWI Committee of the Board:

Ms. Jeane M. Vidoni, Chair

Mr. Romulo L. Diaz, Jr., Esq., Vice Chair

Ms. Sheryl S. Jordan

Mr. Joseph W. Major

------

**Summary Compensation Table (SCT)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name and Principal Position | Year | Salary | Bonus | Non-Equity Incentive Plan Compensation | Change in Pension Value and Nonqualified Deferred Compensation <sup>(6)</sup> | All Other Compensation | Total |
| David G. Paulson <sup>(1)</sup><br>President and CEO | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | $890000 | $— | $716247 | $455000 | $90856 | $2152103 |
| David G. Paulson <sup>(1)</sup><br>President and CEO | 2024 | 651896 |  | 519387 | 127000 | 59262 | 1357545 |
| David G. Paulson <sup>(1)</sup><br>President and CEO | 2023 | 556133 |  | 464591 | 272000 | 61312 | 1354036 |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | 2025 | $546260 | $— | $456009 | $699000 | $51356 | $1752625 |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | 2024 | 525250 |  | 419787 | 179000 | 50283 | 1174320 |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | 2023 | 511193 |  | 401330 | 595000 | 46884 | 1554407 |
| Mark S. Evanco <sup>(3)</sup><br>Chief Banking Officer | 2025 | $424252 | $— | $305262 | $193000 | $34763 | $957277 |
| Mark S. Evanco <sup>(3)</sup><br>Chief Banking Officer | 2024 | 352059 |  | 253194 | 79000 | 28105 | 712358 |
| Mark S. Evanco <sup>(3)</sup><br>Chief Banking Officer | 2023 | 336277 |  | 213152 | 152000 | 26564 | 727993 |
| Edward V. Weller <sup>(4)</sup><br>Chief Financial Officer | 2025 | $389586 | $— | $243883 | $201000 | $31961 | $866430 |
| Edward V. Weller <sup>(4)</sup><br>Chief Financial Officer | 2024 | 350190 |  | 199884 | 83000 | 27739 | 660813 |
| Edward V. Weller <sup>(4)</sup><br>Chief Financial Officer | 2023 | 324250 |  | 159806 | 164000 | 25492 | 673548 |
| John A. Ott <sup>(5)</sup> <br>General Counsel, Corporate Secretary and Ethics Officer | 2025 | $356898 | $50000 | $177228 | $298000 | $28141 | 910267 |

---

*<u>Notes</u>:*

<sup>(1)</sup> For 2025, Mr. Paulson's non-equity incentive plan compensation was the incentive plan described above and was based on the 2025 performance against goals as set forth below as well as deferred incentive earned in 2025 under the 2022, 2023, and 2024 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $69,781, perquisites of $14,171 and the remainder is insurance premium contributions. For 2024, Mr. Paulson's non-equity incentive plan compensation was the incentive plan described in the Bank's 2024 Form 10-K as well as deferred incentive earned in the 2021, 2022, and 2023 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $53,143 and the remainder is insurance premium contributions. For 2023, Mr. Paulson's non-equity incentive plan compensation was the incentive plan described in the Bank's 2023 Form 10-K as well as deferred incentive earned in the 2020, 2021, and 2022 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $46,441, Club Membership initiation fee of $10,000 and the remainder is insurance premium contributions.

<sup>(2)</sup> For 2025, Mr. Cassidy's non-equity incentive plan compensation was the incentive plan described above and was based on the 2025 performance against goals as set forth below as well as deferred incentive earned in 2025 under the 2022, 2023, and 2024 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $45,186 and the remainder is insurance premium contributions. For 2024, Mr. Cassidy's non-equity incentive plan compensation was the incentive plan described in the Bank's 2024 Form 10-K as well as deferred incentive earned in the 2021, 2022, and 2023 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $43,632 and the remainder is insurance premium contributions. For 2023, Mr. Cassidy's non-equity incentive plan compensation was the incentive plan described in the Bank's 2023 Form 10-K as well as deferred incentive earned in the 2020, 2021, and 2022 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $41,972 and the remainder is insurance premium contributions. Note that Mr. Cassidy retired from the Bank, effective January 27, 2026. Mr. Cassidy is eligible for certain compensation and benefits as a Bank retiree.

<sup>(3)</sup> For 2025, Mr. Evanco's non-equity incentive plan compensation was the incentive plan described above and was based on the 2025 performance against goals as set forth below as well as deferred incentive earned in 2025 under the 2022, 2023, and 2024 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $32,894 and the remainder is insurance premium contributions. For 2024, Mr. Evanco's non-equity incentive plan compensation was the incentive plan described in the Bank's 2024 Form 10-K as well as deferred incentive earned in the 2021, 2022, and 2023 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $28,090 and the remainder is insurance premium contributions. For 2023, Mr. Evanco's non-equity incentive plan compensation was the incentive plan described in the Bank's 2023 Form 10-K as well as deferred incentive earned in the 2020, 2021, and 2022 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $26,548 and the remainder is insurance premium contributions.

------

<sup>(4)</sup> For 2025, Mr. Weller's non-equity incentive plan compensation was the incentive plan described above and was based on the 2025 performance against goals as set forth below as well as deferred incentive earned in 2025 under the 2022, 2023, and 2024 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $30,599 and the remainder is insurance premium contributions. For 2024, Mr. Weller's non-equity incentive plan compensation was the incentive plan described in the Bank's 2024 Form 10-K as well as deferred incentive earned in the 2021, 2022, and 2023 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $27,724 and the remainder is insurance premium contributions. For 2023, Mr. Weller's non-equity incentive plan compensation was the incentive plan described in the Bank's 2023 Form 10-K as well as deferred incentive earned in the 2020, 2021, and 2022 Executive Officer Incentive Compensation Plans. All other compensation included employer contributions to defined contribution plans of $25,476 and the remainder is insurance premium contributions.

<sup>(5)</sup> For 2025, Mr. Ott's non-equity incentive plan compensation was comprised of pro-rated awards from the incentive plan described above and from the Key Employee Incentive Compensation Plans. These awards were based on the 2025 performance against goals as set forth below as well as deferred incentive earned in 2025 under the 2022, 2023, 2024, and 2025 Key Employee Incentive Compensation Plans. Mr. Ott was also awarded a retention bonus as set forth under "Bonus". All other compensation included employer contributions to defined contribution plans of $28,126, and the remainder is insurance premium contributions.

<sup>(6)</sup> The change in pension value is the sum of the change in the Pentegra Defined Benefit Plan and the change in the SERP as described below. No amount of above market earnings on nonqualified deferred compensation is reported because above market rates are not possible under the Supplemental Thrift Plan, the only such plan that the Bank offers.

**CEO Pay Ratio**

Consistent with SEC rules, the Bank is providing the following information regarding the relationship of the annual compensation of the Bank's employees and the annual total compensation of the Bank's CEO. For the year ended December 31, 2025, the annual total compensation of the CEO, as reported in the SCT above was $2,152,103 and the median of the annual total compensation of all of the Bank's employees (not including the CEO), calculated as described below, was $172,481. Based on this information, the ratio of the annual total compensation of the CEO to the median of the annual total compensation of all employees (not including the CEO), was 12.5 to 1. Comparatively, for 2024, the pay ratio was 8.0 to 1. This change in ratio was expected due to the change of the CEO incumbent and differences in compensation including a significant increase in change of pension value for 2025.

To identify the median of the annual total compensation of all of the Bank's employees, as well as to determine the annual total compensation of the Bank's median employee, the Bank took the following steps. First, the Bank determined that, as of December 1, 2025, the Bank's employee population consisted of 242 individuals (not including the CEO), all located in the United States. This population consisted of full-time, part-time and temporary employees. The Bank selected December 1, 2025 for purposes of identifying its median employee as such date provided the Bank with adequate time to gather data regarding its employees.

Second, the Bank identified the median employee by comparing the amount of salary or wages, as applicable (including overtime), and cash incentive awards as reflected in the Bank's payroll records for the year ending December 31, 2025 for each of the employees (not including the CEO) who were employed by the Bank on December 1, 2025, and ranking such compensation for all such employees from lowest to highest. In making this determination, the Bank annualized the salary or wages, as applicable (excluding overtime which was a nominal amount and not readily estimable due to fluctuations), of 25 employees who were hired in 2025 but did not work for the Bank for the entire year. The cash incentive awards forming a part of the calculation to identify the median employee were paid to employees in 2025 for the 2024 performance year in accordance with the Bank's employee and executive incentive plans. The Bank determined this approach to be an appropriate measure for purposes of identifying its median employee. As a result of a change in the Bank's employee population during 2025, the Bank performed the above calculation to identify the median employee for the year ending December 31, 2025, rather than use the same median employee identified in the Bank's 2024 Form 10-K for the year ending December 31, 2024.

For any employee not eligible to receive the cash incentive awards paid during 2025 for the 2024 performance year, the Bank estimated the cash incentive award such employee would have received had the employee been employed the entire plan year. The estimated incentive was determined using the newly hired employees' base salary and their incentive compensation opportunity level based on (1) the Bank's performance as it relates to the 2024 Bankwide goals (refer to these goals in Exhibit 10.14 in the Bank's 2024 Form 10-K) and (2) the incentive compensation payouts in 2025 for similar positions in their respective departments.

------

The above described compensation measure used to identify the median employee was applied consistently to all employees included in the calculation. The Bank determined this compensation measure reasonably reflects the annual compensation of all Bank employees as required by SEC rules.

Finally, after determining the median employee as set forth above, the annual total compensation for the median employee of $173,768 was then calculated in the same manner as shown for the CEO in the SCT. The annual total compensation amount of the median employee includes among other things, a 401(k) Employer Profit Sharing contribution which varies among employees based upon their eligibility and base pay. All other compensation includes employer contributions to defined contribution plans and insurance premium contributions. The above is a reasonable estimate, prepared under applicable SEC rules, of the ratio of the annual total compensation of the CEO to the median of the annual total compensation of all of the Bank's employees.

**Non-Equity Incentive Plan Compensation**

Under the 2025 Plan, the actual annual award opportunity for January 1, 2025, through December 31, 2025, and payouts are based on a percentage of the NEO's base salary as of December 31, 2025. Each goal includes performance measures at threshold, target and maximum. The specific performance goals and total weighting for each goal for the CEO and other NEOs are as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Optimize member use of core credit products and services by year-end. Core credit products and services include: advances, letters of credit, safekeeping and MPF Program products (25% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Optimize member use of community products in 2025. Community products include statutory and voluntary community investment programs (30% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Profitability as measured by adjusted earnings relative to total GAAP capital in excess of full year average federal funds rate within identified risk parameters (30% weighting); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Technology and resiliency objectives as measured by three critical strategic milestones (15% weighting).

Adjusted earnings referenced above are quantified in the table below.

---

| | |
|:---|:---|
| (in thousands) |  |
| 2025 GAAP net income | $**418318** |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advance prepayment fees | $**(1820)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage delivery commitments | **10016** |
| &nbsp;&nbsp;&nbsp;&nbsp; Earnings at risk and unrealized gain/loss on securities | **11688** |
| &nbsp;&nbsp;&nbsp;&nbsp; Derivative ineffectiveness | **(2193)** |
| &nbsp;&nbsp;&nbsp;&nbsp; Board approved additional voluntary housing grant | **11111** |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal - adjustments | $**28802** |
| &nbsp;&nbsp;&nbsp;&nbsp; AHP | **(2880)** |
| Adjusted earnings (non-GAAP) | $**444240** |

---

------

The table below includes the performance goal, weighting, achievement levels, and payout percentages for the NEOs per the terms of the 2025 Plan.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | To Achieve: | To Achieve: | To Achieve: | | Payout <sup>(2)</sup> | Payout <sup>(2)</sup> | Payout <sup>(2)</sup> | Payout <sup>(2)</sup> | Payout <sup>(2)</sup> |
| Goal <sup>(1)</sup> | Weighting | Threshold Payout | Target Payout | Maximum Payout | 2025<br>Results | Paulson | Cassidy | Evanco | Weller | Ott |
| A | 25% | 480 | 500 | 535 | 540 | 25.0% | 20.0% | 20.0% | 17.5% | 14.5% |
| B | 30% | 160 | 166 | 178 | 167 | 23.1% | 19.9% | 19.9% | 16.9% | 13.3% |
| C | 30% | 305 | 370 | 435 | 478 | 30.0% | 24.0% | 24.0% | 21.0% | 17.4% |
| D | 15% | 1 of 3 | 2 of 3 | 3 of 3 | 3 of 3 | 15.0% | 12.0% | 12.0% | 10.5% | 8.7% |
| Total Payout | Total Payout |  |  |  |  | 93.1% | 75.9% | 75.9% | 65.9% | 54.0% |

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*<u>Notes:</u>*

<sup>(1)</sup> Refer to the incentive goal scorecard attached to the 2025 Plan which is Exhibit 10.14 to the Bank's 2024 Form 10-K.

<sup>(2)</sup> For performance achievement between threshold and target or target and maximum, the 2025 Plan provides for interpolation to determine the incentive compensation payout. To calculate payout for achievement between target and maximum, linear interpolation was used.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Named Executive Officers** | **Salary on which incentive is based** <sup>(1)</sup> | **Maximum incentive payout % potential** | **Maximum incentive payout potential $** <sup>(2)</sup> | **2025 actual incentive payout (A)** | **2024 deferred incentive $(B)** | &nbsp;&nbsp;&nbsp;**2023**<br>**deferred incentive $**<br>**(C)** | **2022**<br>**deferred**<br>**incentive $(D)** | **Total incentive payout** <sup>(3)</sup> |
| David G. Paulson | $890000 | 100.0% | $890000 | $414406 | $113742 | $97323 | $90776 | $716247 |
| John P. Cassidy | $546260 | 80.0% | $437008 | $207237 | $86174 | $84134 | $78464 | $456009 |
| Mark S. Evanco | $424252 | 80.0% | $339402 | $160951 | $51730 | $48340 | $44241 | $305262 |
| Edward V. Weller | $389586 | 70.0% | $272710 | $128320 | $50157 | $46611 | $18795 | $243883 |
| John A. Ott | $356898 | 64.3% | $229637 | $136102 | $21208 | $19918 | $— | $177228 |

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*<u>Notes:</u>*

<sup>(1)</sup> Base salary in effect on December 31, 2025 used to calculate payouts.

<sup>(2)</sup> NEOs will be paid 50% of the incentive payout for 2025 in 2026 (see column A) and the remaining amount will be deferred and contingently payable in 2027, 2028 and 2029.

<sup>(3)</sup> Total incentive payout includes the sum of columns (A) (B) (C) and (D). As noted below, if both of the Stated Bank Performance Criteria are met in the preceding year, deferred incentive payments will be at 125% of the deferred amount.

The following table illustrates for each participant the maximum amount of unpaid deferred installments as of December 31, 2025 distributable under the 2022, 2023, 2024 and 2025 plans.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name and Principal Position | Amount Distributable in 2026 | Amount Distributable in 2027 | Amount Distributable in 2028 | Amount Distributable in 2029 | Total <sup>(1)</sup> |
| David G. Paulson<br>President and CEO | $**301841** | $**383735** | $**286411** | $**172669** | $**1144657** |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | $**248771** | $**256657** | $**172523** | $**86349** | $**764300** |
| Mark S. Evanco<br>Chief Banking Officer | $**144311** | $**180166** | $**131827** | $**80097** | $**536401** |
| Edward V. Weller<br>Chief Financial Officer | $**115563** | $**150235** | $**103624** | $**53467** | $**422889** |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | $**41126** | $**97835** | $**77917** | $**56709** | $**273588** |

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*<u>Notes:</u>*

<sup>(1)</sup> Based on the provisions of the 2022, 2023, 2024 and 2025 Executive Officer Incentive Compensation Plans, the deferral amount from the 2022, 2023, 2024 and 2025 plan years includes a 25% increase since the deferral criteria were assumed to have been met at the maximum level payout.

<sup>(2)</sup> Mr. Cassidy retired from the Bank, effective January 27, 2026. As Mr. Cassidy is a retiree under the Bank's 2026 Plan, he is eligible to receive the above future payments at the same time, and in the same manner, that such payments are made to the CEO and other NEOs.

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**Change in Pension Value**

The Qualified Plan provides a benefit of 2.00% of a participant's highest 3-year average earnings, multiplied by the participant's years of benefit service for employees hired prior to January 1, 2008; or 1.50% of a participant's highest 5-year average earnings, multiplied by the participant's years of benefit service for employees hired on or after January 1, 2008. Employees hired after January 1, 2019 are not eligible to participate in the Plan. Earnings are defined as base salary rate as in effect for each month of such year, subject to an annual IRS limit of $350,000 on earnings for 2025. Annual benefits provided under the Qualified Plan also are subject to IRS limits, which vary by age and benefit payment type. The participant's accrued benefits are calculated as of December 31, 2024 and December 31, 2025. The present value is calculated using the accrued benefit at each date multiplied by a present value factor based on an assumed age 65 retirement date. As of December 31, 2024, 55% of the benefit is valued using the PRI-2012 mortality table for white collar workers (with mortality improvement scale MP-2021) and 45% of the benefit is valued using the IRS Applicable Mortality table for lump sums projected to 2024. As of December 31, 2025, 55% of the benefit is valued using the PRI-2012 mortality table for white collar workers (with IRS 2024 adjusted mortality improvement scale MP-2021) and 45% of the benefit is valued using the IRS Applicable Mortality table for lump sums projected to 2025. The interest rates used are 5.54% as of December 31, 2024 and 5.61% as of December 31, 2025. The difference between the present value of the December 31, 2025 accrued benefit and the present value of the December 31, 2024 accrued benefit is the "change in pension value" for the Qualified Plan.

The Non-Qualified plan provides benefits under the same terms and conditions as the Qualified Plan, except earnings are defined as base salary rate as in effect for each month of such year plus incentive compensation. However, the Non-Qualified plan does not limit annual earnings or benefits. Benefits provided under the Qualified Plan are an offset to the benefits provided under the Non-Qualified plan. The participants' benefits are calculated as of December 31, 2024 and December 31, 2025. The present value is calculated by multiplying the benefits accrued at each date by a present value factor based on an assumed age 65 retirement date. As of December 31, 2024, the benefit is valued using the PRI-2012 mortality table for white collar workers (with mortality improvement scale MP-2021). As of December 31, 2025, the benefit is valued using the PRI-2012 mortality table for white collar workers (with IRS 2024 adjusted mortality improvement scale MP-2021). As of December 31, 2024, the benefit is valued using an interest rate of 5.54% for the age 65 present value factor and then the age 65 present value factor is discounted back to current age using an interest rate of 5.25%. As of December 31, 2025, the benefit is valued using an interest rate of 5.61% for the age 65 present value factor and then the age 65 present value factor is discounted back to current age using an interest rate of 4.75%. The difference between the present value of the December 31, 2025 accrued benefit and the present value of the December 31, 2024 accrued benefit is the "change in pension value" for the Non-Qualified Plan.

The total change in pension value is the sum of the change in the Qualified Plan and the change in the Non-Qualified Plan.

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**Grants of Plan-Based Awards**

The following table is based on salary as of December 31, 2025 and shows the value of non-equity incentive plan awards granted to the CEO and other NEOs in 2025 or future periods, as applicable. Note that these amounts are based on the potential awards available under the terms of the 2025 Plan, not actual performance. Actual performance under the 2025 Plan is as reflected in the SCT and in the detailed incentive award tables set forth below the SCT.

***2025 Grants***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> |
| Name and Principal Position |  | Performance Achieved in 2025 | Amount Payable in 2026 | Amount Payable in 2027 | Amount Payable in 2028 | Amount Payable in 2029 |
| Name and Principal Position |  | Total Opportunity | 50% Payout | Deferred Amount | Deferred Amount | Deferred Amount |
| David G. Paulson<br>President and CEO | Threshold | $534000 | $267000 | $111250 | $111250 | $111250 |
| David G. Paulson<br>President and CEO | Target | $667500 | $333750 | $139063 | $139063 | $139063 |
| David G. Paulson<br>President and CEO | Max | $890000 | $445000 | $185417 | $185417 | $185417 |
| John P. Cassidy <sup>(3)</sup><br>Chief Technology and Operations Officer | Threshold | $273130 | $136565 | $56902 | $56902 | $56902 |
| John P. Cassidy <sup>(3)</sup><br>Chief Technology and Operations Officer | Target | $355069 | $177535 | $73973 | $73973 | $73973 |
| John P. Cassidy <sup>(3)</sup><br>Chief Technology and Operations Officer | Max | $437008 | $218504 | $91043 | $91043 | $91043 |
| Mark S. Evanco<br>Chief Banking Officer | Threshold | $212126 | $106063 | $44193 | $44193 | $44193 |
| Mark S. Evanco<br>Chief Banking Officer | Target | $275764 | $137882 | $57451 | $57451 | $57451 |
| Mark S. Evanco<br>Chief Banking Officer | Max | $339402 | $169701 | $70709 | $70709 | $70709 |
| Edward V. Weller<br>Chief Financial Officer | Threshold | $155834 | $77917 | $32466 | $32466 | $32466 |
| Edward V. Weller<br>Chief Financial Officer | Target | $214272 | $107136 | $44640 | $44640 | $44640 |
| Edward V. Weller<br>Chief Financial Officer | Max | $272710 | $136355 | $56815 | $56815 | $56815 |
| John A. Ott <sup>(2)</sup><br>General Counsel, Corporate Secretary and Ethics Officer | Threshold | $100502 | $70352 | $12563 | $12563 | $12563 |
| John A. Ott <sup>(2)</sup><br>General Counsel, Corporate Secretary and Ethics Officer | Target | $154037 | $107826 | $19255 | $19255 | $19255 |
| John A. Ott <sup>(2)</sup><br>General Counsel, Corporate Secretary and Ethics Officer | Max | $207572 | $145300 | $25946 | $25946 | $25946 |

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*<u>Notes:</u>* 

<sup>(1)</sup> As described above in the 2025 Plan, payment of each deferred incentive award installment is contingent on the participant meeting the required criteria and the Bank meeting the Stated Bank Performance Criteria described below. For the 2025 Plan, the first year payout is 50% of the award amount and then 33 1/3% of the remaining 50% in each deferral installment over the next three years based on whether or not the stated payment criteria were met. The deferred amount shown for each of the years 2027, 2028 and 2029 is 125% of the maximum deferred amount if both MV/CS and retained earnings levels are maintained, which the Bank has assumed are met in each year for purposes of this calculation.

<sup>(2)</sup> Mr. Ott's 2025 amount payable in 2026 is 70%, as he was subject to 30% deferral under the terms of the Key Employee Incentive Compensation Plan for deferral purposes in 2025.

<sup>(3)</sup> Mr. Cassidy retired from the Bank, effective January 27, 2026. As Mr. Cassidy is a retiree under the Bank's 2026 Plan, he is eligible to receive the above future payments at the same time, and in the same manner, that such payments are made to the CEO and other NEOs.

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***Stated Bank Performance Criteria, 2025.*** Payment of each deferred incentive award installment in 2027, 2028 and 2029 related to December 31, 2025 incentive is contingent on the Bank continuing to meet the following stated Bank performance criteria as well as being contingent on the participant continuing to meet his/her requirements. In no event shall the aggregate amount of any current incentive award and deferred incentive award installments paid to a participant in any payment year exceed 100% of the participant's base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MV/CS - The annual MV/CS must have an average above 105% (the annual average amount will be calculated using the ending amount of each month during the year); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Retained Earnings Level - Retained earnings must exceed the Bank's retained earnings target, defined as retaining earnings that cover both risk target and capital compliance, at each year-end of the applicable deferred payment period.

Each of the two stated criteria above is equal to 50% of the deferred incentive payment amount. At least one of these criteria above must have been met in the preceding year for any installment payment to be made. If both of these criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. The Board will also consider the following criteria and may exercise its discretion to adjust an award:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Remediation of Examination Findings. This criterion is defined as the Bank making sufficient progress, as determined by the Finance Agency and communicated to Bank management or the Board, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management attention; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Timeliness of Finance Agency, SEC, and OF Filings. This criterion is defined as the Bank's timely making SEC periodic filings, call report filings with the Finance Agency, and certain filings with the OF without material restatements of them.

***2026 Grants***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> | Estimated Future Payouts under Non-Equity Incentive Plan Awards <sup>(1)</sup> |
| Name and Principal Position |  | Performance Achieved in 2026 | Amount Payable 2027 | Amount Payable 2028 | Amount Payable 2029 | Amount Payable 2030 |
| Name and Principal Position |  | Total Opportunity | 50% Payout | Deferred Amount | Deferred Amount | Deferred Amount |
| David G. Paulson<br>President and CEO | Threshold | $571380 | $285690 |  |  |  |
| David G. Paulson<br>President and CEO | Target | $761840 | $380920 |  |  |  |
| David G. Paulson<br>President and CEO | Max | $952300 | $476150 | $198396 | $198396 | $198396 |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | Threshold | $20608 | $10304 |  |  |  |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | Target | $26791 | $13395 |  |  |  |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | Max | $32973 | $16487 | $6869 | $6869 | $6869 |
| Mark S. Evanco <br>Chief Banking Officer | Threshold | $256289 | $128145 |  |  |  |
| Mark S. Evanco <br>Chief Banking Officer | Target | $326186 | $163093 |  |  |  |
| Mark S. Evanco <br>Chief Banking Officer | Max | $396083 | $198042 | $82517 | $82517 | $82517 |
| Edward V. Weller <br>Chief Financial Officer | Threshold | $206481 | $103240 |  |  |  |
| Edward V. Weller <br>Chief Financial Officer | Target | $268425 | $134212 |  |  |  |
| Edward V. Weller <br>Chief Financial Officer | Max | $330369 | $165184 | $68827 | $68827 | $68827 |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | Threshold | $158620 | $79310 |  |  |  |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | Target | $218103 | $109051 |  |  |  |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | Max | $277585 | $138793 | $57830 | $57830 | $57830 |

---

*<u>Notes:</u>* 

<sup>(1)</sup> As described above in the 2026 Plan, payment of each deferred incentive award installment is contingent on the participant meeting the required criteria and the Bank meeting the Stated Bank Performance Criteria described below. For the 2026 Plan, the first year payout is 50% of the award amount and then 33 1/3% of the remaining 50% in each deferral installment over the next three years based on whether or not the stated payment criteria were met. The deferred amount shown for each of the years 2028, 2029, and 2030 is 125% of the maximum deferred amount if both MV/CS and retained earnings levels are maintained, which the Bank has assumed is met in each year for purposes of this calculation.

<sup>(2)</sup> Mr. Cassidy retired from the Bank, effective January 27, 2026. As Mr. Cassidy is a retiree under the Bank's 2026 Plan, he is eligible to receive future payments, calculated in accordance with the short term length of his service at the Bank during 2026, at the same time and in the same manner, that such payments are made to the CEO and other NEOs.

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Estimated future payouts presented above were calculated based on the NEO's base salary as of January 1, 2026. The actual amount of the payout will be based on the NEO's base salary at December 31, 2026.

Under the 2026 Plan, the actual annual award opportunity for January 1, 2026, through December 31, 2026, and payouts are based on a percentage of the NEO's base salary as of December 31, 2026. Each goal includes performance measures at threshold, target and maximum. The proposed performance goals and total weighting for each goal for the CEO and other NEOs are as follows and pending non-objection from the Finance Agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Optimize member use of core credit products and services by year-end. Core credit products and services include: advances, letters of credit, safekeeping and Mortgage Partnership Finance<sup>®</sup> (MPF<sup>®</sup>) Program products (20% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Optimize member use of community products in 2026. Community products include the Affordable Housing Program/Voluntary Housing Grant, Community Lending Program, Banking On Business, and First Front Door/Keys (15% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exceed the mortgage purchase housing goal requirement of 20% of mortgage purchases of loans made to low-income families and very low-income families or families in low-income areas (7.5% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increase the number of AHP units awarded in the 2026 funding round. The goal defines affordable housing units as all AHP-eligible project/unit types including new construction, preservation, and rental and owner-occupied rehabilitation (7.5% weighting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Profitability as measured by adjusted earnings relative to total GAAP capital in excess of full year average federal funds rate while remaining within identified risk parameters based on duration of equity and refunding risk operating targets (30% weighting); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology and resiliency objectives as measured by three critical strategic milestones (20% weighting).

Adjusted earnings and other measures referenced above are as defined in the 2026 Plan.

**Stated Bank Performance Criteria, 2026.** Payment of each deferred incentive award installment in 2028, 2029, and 2030 related to December 31, 2026 is contingent on the Bank continuing to meet the stated Bank performance criteria as well as being contingent on the participant continuing to meet his/her requirements. In no event shall the aggregate amount of any current incentive award and deferred incentive award installments paid to a participant in any payment year exceed 100% of the participant's base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MV/CS - The annual MV/CS must have an average above 105% (the annual average amount will be calculated using the ending amount of each month during the year); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Retained Earnings Level - Retained earnings must exceed the Bank's retained earnings target, defined as retaining earnings that cover both risk target and capital compliance, at each year-end of the applicable deferred payment period.

Each of the two stated criteria above is equal to 50% of the deferred incentive payment amount. At least one of these criteria above must have been met in the preceding year for any installment payment to be made. If both of these criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. The Board will also consider the following criteria and may exercise its discretion to adjust an award:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Remediation of Examination Findings. This criterion is defined as the Bank making sufficient progress, as determined by the Finance Agency and communicated to Bank management or the Board, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management attention; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Timeliness of Finance Agency, SEC, and OF Filings. This criterion is defined as the Bank's timely making SEC periodic filings, call report filings with the Finance Agency, and certain filings with the OF without material restatements of them.

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**Pension Benefits**

The following sets forth the NEOs' pension benefits under their applicable plans.

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| | | | | |
|:---|:---|:---|:---|:---|
| Name and Principal Position | Plan Name | Number of Years Credited Service | Present Value of Accumulated Benefit | Payments During Last Fiscal Year |
| David G. Paulson <br>President and CEO | Pentegra Defined Benefit Plan | **15.25** | $712000 | $— |
| David G. Paulson <br>President and CEO | SERP | **15.75** | $1353000 | $— |
| John P. Cassidy <sup>(1)</sup><br>Chief Technology and Operations<br>Officer | Pentegra Defined Benefit Plan | **25.75** | $1891000 | $— |
| John P. Cassidy <sup>(1)</sup><br>Chief Technology and Operations<br>Officer | SERP | **26.25** | $2691000 | $— |
| Mark S. Evanco<br>Chief Banking Officer | Pentegra Defined Benefit Plan | **11** | $521000 | $— |
| Mark S. Evanco<br>Chief Banking Officer | SERP | **11.5** | $365000 | $— |
| Edward V. Weller<br>Chief Financial Officer | Pentegra Defined Benefit Plan | **13.67** | $630000 | $— |
| Edward V. Weller<br>Chief Financial Officer | SERP | **14.17** | $386000 | $— |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | Pentegra Defined Benefit Plan | **20.42** | $702000 | $— |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | SERP | **20.92** | $356000 | $— |

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*<u>Note:</u>* 

<sup>(1)</sup> Mr. Cassidy retired from the Bank, effective January 27, 2026. As Mr. Cassidy is a retiree under the SERP, he is eligible to receive payments in accordance with his payment elections, with such payments commencing in 2026.

The description of the Pentegra Defined Benefit Plan contained in the Summary Plan Description for the Financial Institutions Retirement Fund and the description of the SERP contained in the Supplemental Executive Retirement Plan are included as Exhibit 10.5 to this Form 10-K and Exhibit 10.5.2 to the Bank's First Quarter 2015 Form 10-Q. See "Qualified and Non-Qualified Defined Benefit Plans" under "Compensation Discussion and Analysis" in this Item for the different purposes for each plan.

This table represents an estimate of retirement benefits payable at normal retirement age in the form of the actuarial present value of the accumulated benefit. The amounts were computed as of the same plan measurement date that the Bank uses for financial statement reporting purposes. The same assumptions were used that the Bank uses to derive amounts for disclosure for financial reporting, except the above information assumed normal retirement age as defined in the plan. See narrative discussion of the "Change in Pension Value" column under the SCT.

Compensation used in calculating the benefit for the Pentegra Defined Benefit Plan includes base salary only. Compensation used in calculating the benefit for the SERP includes the current incentive award portion of any award under the Bank's executive compensation plan. Benefits under the SERP vest after completion of 5 years of employment (the vesting requirement under the Pentegra Defined Benefit Plan) subject to the forfeiture for cause provisions of the SERP.

*<u>Normal Retirement</u>*: Upon termination of employment at or after age 65 where an NEO has met the vesting requirement of completing 5 years of employment, an executive hired prior to January 1, 2008 is entitled to a normal retirement benefit under the Pentegra Defined Benefit Plan equal to: 2% of his/her highest three-year average salary multiplied by his/her years' of benefit service. Under the SERP normal retirement benefit, the NEO also would receive 2% of his/her highest three-year average incentive payment (as defined in the SERP) for such same three-year period multiplied by his/her years of benefit service. An NEO hired on or after January 1, 2008 is entitled to a normal retirement benefit under the Pentegra Defined Benefit Plan equal to: 1.5% of his/her highest five-year average salary multiplied by his/her years of benefit service. Under the SERP normal retirement benefit, the NEO also would receive 1.5% of his/her highest five-year average incentive payment (as defined in the SERP) for such same five-year period multiplied by his/her years of benefit service. At December 31, 2025, Mr. Paulson was eligible for normal retirement benefits.

*<u>Early Retirement</u>*: Upon termination of employment prior to age 65, executives meeting the 5 year vesting and age 45 (age 55 if hired on or after January 1, 2008) early retirement eligibility criteria are entitled to an early retirement benefit. The early retirement benefit amount, for those hired prior to January 1, 2008, is calculated by taking the normal retirement benefit amount and reducing it by 3% times the difference between the age of the early retiree and age 65. For example, if an individual retires at age 61, the early retirement benefit amount would be 88% of the normal retirement benefit amount, a total reduction of 12%. The early retirement benefit amount, for those hired after January 1, 2008, is calculated by taking the normal retirement benefit

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amount and reducing it by 4% (for ages 55 through 59) and 6% (for ages 60 through 64) times the difference between the age of the early retiree and age 65. At December 31, 2025, Mr. Paulson, Mr. Cassidy, Mr. Evanco, and Mr. Weller were eligible for early retirement benefits.

**Non-Qualified Deferred Compensation**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name and Principal Position | Executive Contributions in 2025 | Registrant Contributions in 2025 | Aggregate Earnings (Losses) <br>in 2025 | Aggregate Withdrawals/Distributions | Aggregate Balance at December 31, 2025 |
| David G. Paulson <sup>(1)</sup><br>President and CEO | **$105122** | **$54205** | **$351304** | **$—** | $**2674578** |
| John P. Cassidy <sup>(2)</sup><br>Chief Technology and Operations Officer | **$41469** | **$30163** | **$339880** | **$(108951)** | $**2490090** |
| Mark S. Evanco <sup>(3)</sup><br>Chief Banking Officer | **$230184** | **$26893** | **$107845** | **$—** | $**853691** |
| Edward V. Weller <sup>(4)</sup><br>Chief Financial Officer | **$59235** | **$22807** | **$25146** | **$—** | $**418839** |
| John A. Ott <sup>(5)</sup><br>General Counsel, Corporate Secretary and Ethics Officer | **$25856** | **$7126** | **$14465** | **$—** | $**87829** |

---

*<u>Notes:</u>*

<sup>(1)</sup> For Mr. Paulson, balance as of December 31, 2025 includes further deferral of deferred incentive compensation of $12,320 and applicable investment earnings of $39,075.

<sup>(2)</sup> For Mr. Cassidy, balance as of December 31, 2025 includes applicable investment earnings of $120,414. Additionally, Mr. Cassidy retired from the Bank, effective January 27, 2026. As Mr. Cassidy is a retiree under the Bank's Supplemental Thrift Plan, he is eligible to receive payments in accordance with his payment elections, with such payments commencing in 2026.

<sup>(3)</sup> For Mr. Evanco, balance as of December 31, 2025 includes further deferral of deferred incentive compensation of $129,043 and applicable investment earnings of $58,015.

<sup>(4)</sup> For Mr. Weller, balance as of December 31, 2025 does not include further deferral of deferred incentive compensation.

<sup>(5)</sup> For Mr. Ott, balance as of December 31, 2025 includes further deferral of deferred incentive compensation of $19,918 and applicable investment earnings of $3,813.

See descriptions in the Qualified and Nonqualified Defined Contribution Plans section of this Item. A description of the Supplemental Thrift Plan is in Exhibit 10.1 to the Bank's Second Quarter 2019 Form 10-Q.

Amounts shown as "Executive Contributions in 2025" were deferred and reported as "Salary" and "Non-Equity Incentive Plan Compensation" in the SCT. Amounts shown as "Registrant Contributions in 2025" are reported as "All Other Compensation" in the SCT. Amounts shown as "Aggregate Earnings (Losses) in 2025" have not been reported in the SCT as none of the CEO or other NEOs received above-market preferential earnings. All contributions comprising a portion of the "Aggregate Balance at December 31, 2025" were included in the compensation reported in the SCT and in prior years' Summary Compensation Tables, as applicable.

The CEO and other NEOs may defer up to 80% of their total cash compensation (base salary and annual incentive compensation), less their contributions to the qualified thrift plan. All benefits are fully vested at all times and subject to the forfeiture for cause provisions of the Supplemental Thrift Plan.

The investment options available under the nonqualified deferred compensation plan are closely matched to those available under the qualified defined contribution plan. Investment options include stock funds, bond funds, money market funds and target retirement funds.

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**Post-Termination Compensation**

The CEO and other NEOs would have received the benefits below in accordance with the Bank's severance policy (or in the case of the CEO the terms of his separate agreement, as applicable) if their employment had been severed without cause during 2025.

**Post-Termination Compensation - Severance (Excluding Change-In-Control)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name and Principal Position | Base Salary | Base Salary | Medical Coverage <sup>(1)</sup> | Medical Coverage <sup>(1)</sup> | Executive<br>Outplacement <sup>(2)</sup> | Executive<br>Outplacement <sup>(2)</sup> | Total |
| Name and Principal Position | Length | Amount | Length | Amount | Length | Amount |  |
| David G. Paulson<br>President and CEO | 52 weeks | **$890000** | 52 weeks | $**16549** | 12 months | $**15000** | $**921549** |
| Mark S. Evanco<br>Chief Banking Officer | 44 weeks | **$379126** | 44 weeks | $**15981** | 12 months | $**15000** | $**410107** |
| Edward V. Weller<br>Chief Financial Officer | 52 weeks | **$389586** | 52 weeks | $**18886** | 12 months | $**15000** | $**423472** |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | 52 weeks | **$385000** | 52 weeks | **$18886** | 12 months | $**15000** | $**418886** |

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*<u>Notes:</u>*

<sup>(1)</sup> Additional taxable compensation equivalent to the Bank's share of medical coverage costs for its active employees.

<sup>(2)</sup> Estimated cost based on one year of individualized outplacement services with a firm of the Bank's choosing.

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Under the CIC Agreements, in the event of employment termination other than for cause (including constructive discharge) following a change in control event, in place of the severance benefits above, the CEO and other NEOs would instead receive the benefits below.

**Post-Termination Compensation - Change-In-Control**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Name and Principal Position | Base<br>Salary <sup>(1)</sup> | Potential Incentive<br>Award <sup>(2) (7)</sup> | Medical Coverage <sup>(3)</sup> | Outplace-<br>ment<br>Services and Financial Planning <sup>(4)</sup> | Additional Severance<br>Amount <sup>(5)\*</sup> | Accelerated Deferred Incentive Installment Amount <sup>(7)</sup> | Severance/<br>Defined Contribution Match Amount <sup>(6)\*</sup> | Total |
| David G. Paulson<br>President and CEO | $**2661100** | $**1995825** | $**24823** | $**30000** | **$1549000** | $**1144657** | $**280350** | $**7685755** |
| Mark S. Evanco<br>Chief Banking Officer | $**896116** | $**551528** | $**28329** | $**30000** | **$625000** | $**497299** | $**88715** | $**2716987** |
| Edward V. Weller<br>Chief Financial Officer | $**779172** | $**428545** | $**28329** | $**30000** | **$599000** | $**422889** | $**72463** | $**2360398** |
| John A. Ott<br>General Counsel, Corporate Secretary and Ethics Officer | $**770000** | $**308074** | $**28329** | $**30000** | **$581000** | $**273588** | $**66140** | $**2057131** |

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\* Includes both qualified and nonqualified plans

*<u>Notes:</u>*

<sup>(1)</sup> CIC agreements stipulate 2.99 times base salary (CEO) and two times base salary (other NEOs).

<sup>(2)</sup> CIC agreements stipulate an amount equal to 2.99 times (CEO) and two times (other NEOs) the payout award that could have been received at target payout amount.

<sup>(3)</sup> CIC agreements stipulate 18 months of additional taxable compensation equivalent to the Bank's share of medical coverage costs for its active employees.

<sup>(4)</sup> CIC agreements stipulate 12 months of outplacement services and $15,000 for financial planning for eligible participants.

<sup>(5)</sup> CIC agreements stipulate additional severance in an amount equivalent to the additional benefit that the CEO and other NEOs would receive for three (CEO) and two (other NEOs) additional years of both age and service at the same annual compensation at the time of separation from the Bank under the qualified and nonqualified defined benefit plans.

<sup>(6)</sup> CIC agreements stipulate additional severance in an amount equivalent to three (CEO) and two (other NEOs) years of defined contribution match. Note that compensation for the defined contribution match includes base compensation and annual incentive.

<sup>(7)</sup> The 2022, 2023, and 2024 Executive Officer Incentive Compensation Plans provide for vesting of the remaining unpaid deferred award installments that correspond to each participant's 2022, 2023, and 2024 current incentive award. The 2025 Executive Officer Incentive Compensation Plan also provides for vesting of deferred award installments in the event of a Change in Control. As a result, the unpaid deferred award installments for each participant that correspond to the 2025 current incentive award would also be paid out upon a CIC event along with the 2022, 2023, and 2024 Plans' unpaid deferred installments. This payment is in addition to any current incentive award payout reflected in the SCT. The unpaid deferred installments that would vest for each participant are as set forth above in the deferred installments table. See Exhibit 10.14 to the Bank's 2021 Form 10-K for the terms of the 2022 Plan. See Exhibit 10.13 to the Bank's 2022 Form 10-K for the terms of the 2023 Plan. See Exhibit 10.13 to the Bank's 2023 Form 10-K for the terms of the 2024 Plan. See Exhibit 10.14 to the Bank's 2024 Form 10-K for the terms of the 2025 Plan.

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**DIRECTOR COMPENSATION**

The Bank's directors were compensated in accordance with the 2025 Directors' Compensation Policy (2025 Compensation Policy) as adopted by the Bank's Board. Under the 2025 Compensation Policy, the total annual director fees were paid as a combination of a quarterly retainer fee and per meeting fees. The following table sets forth the maximum fees that Bank directors could earn in 2025.

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| | | | |
|:---|:---|:---|:---|
| | Retainer Fees | Meeting Fees | Total |
| Board Chair | $82500 | $82500 | $165000 |
| Board Vice Chair | $71000 | $71000 | $142000 |
| Audit Chair | $68500 | $68500 | $137000 |
| ERM, HR Committee Chair | $66000 | $66000 | $132000 |
| Other Committee Chair | $65104 | $65106 | $130210 |
| Director | $61500 | $61500 | $123000 |

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The 2025 Compensation Policy fee levels were as set forth in Exhibit 10.2 to the Bank's Quarterly Report on Form 10-Q filed with the SEC on May 6, 2025. The Finance Agency has determined that the payment of director compensation is subject to Finance Agency review. Compensation can exceed the guidelines under the 2025 Compensation Policy based on a director assuming additional responsibilities, such as chairing a Committee or Board meeting. The following table sets forth the compensation of the Bank's director's for services rendered in 2025.

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| | | | |
|:---|:---|:---|:---|
| Name | Fees Earned or Paid in Cash | All Other Compensation | Total Compensation |
| Brendan J. McGill (Chair) | $165004 | $15 | $165019 |
| Louise M. Herrle (Vice Chair) | 142008 | 15 | 142023 |
| Barbara M. Adams | 123000 | 15 | 123015 |
| Thomas Bailey | 22916 | 15 | 22931 |
| Nathaniel Bonnell | 123000 | 15 | 123015 |
| Glenn R. Brooks | 130204 | 15 | 130219 |
| Romulo L. Diaz, Jr., Esq. | 125275 | 15 | 125290 |
| James V. Dionise | 136996 | 15 | 137011 |
| Angel L. Helm | 130204 | 15 | 130219 |
| Thomas A. Hendry | 123000 | 15 | 123015 |
| Blanche L. Jackson | 123000 | 15 | 123015 |
| Sheryl S. Jordan | 123000 | 15 | 123015 |
| Joseph Major | 129915 | 15 | 129930 |
| Thomas H. Murphy | 130204 | 15 | 130219 |
| Dr. Howard B. Slaughter, Jr. | 130204 | 15 | 130219 |
| Jeane M. Vidoni | 132000 | 15 | 132015 |

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"Total Compensation" does not include previously deferred director fees for prior years' service and earnings on such fees for those directors participating in the Bank's nonqualified deferred compensation deferred fees plan for directors. The plan allows directors to defer their fees for the year in total and receive earnings based on returns available under or comparable to certain publicly available mutual funds, including equity funds and money market funds. No Bank matching contributions are made under the plan. Directors who attended all Board and applicable Committee meetings in 2025 received the maximum total fees. In 2025, the Bank had a total of 7 Board meetings and 46 Board Committee meetings. There was one Board Executive Committee meeting in 2025.

"All Other Compensation" for each includes $15 per director annual premium for director travel and accident insurance.

For 2026, the Bank's Board adopted and received non-objection from the Finance Agency on its 2026 Directors' Compensation Policy with the basis for fee payment being a combination of quarterly retainer and per-meeting fees, as was the case under the 2025 Directors' Compensation Policy. In general, the 2026 Directors' Compensation Policy provides for total fees

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as follows: 1) $165,000 for the Board Chair; 2) $142,000 for the Board Vice Chair; 3) $137,000 for the Audit Committee Chair; 4) $137,000 for the Governance and Public Policy Committee Chair; 5) $137,000 for the Human Resources and OMWI Committee Chair; 6) $137,000 for the Enterprise Risk Committee Chair; 7) $130,210 for each of the other Committee Chairs; and 8) $123,000 for each of the other directors.

**Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters** 

Generally, the Bank may issue capital stock only to members. As a result, the Bank does not offer any compensation plan under which equity securities of the Bank are authorized for issuance.

**Institutions Holding 5% or More of Outstanding Capital Stock**

**as of February 28, 2026**

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| | | | |
|:---|:---|:---|:---|
| Name | Address | Capital Stock | % of Total<br>Capital Stock |
| PNC Bank, N.A. <sup>(a)</sup> | 222 Delaware Avenue<br>Wilmington, Delaware 19899 | $**668097500** | **27.0%** |
| Ally Bank <sup>(b)</sup> | 200 West Civic Centre Drive<br>Sandy, Utah 84070 | **279000000** | **11.3%** |
| First National Bank of Pennsylvania <sup>(c)</sup> | 166 Main Street, <br>Greenville, Pennsylvania 16125 | **262575400** | **10.6%** |
| TD Bank, N.A. | 2035 Limestone Road<br>Wilmington, Delaware 19808 | **227105300** | **9.2%** |

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*Notes:*

<sup>(a)</sup> For Bank membership purposes, principal place of business is Pittsburgh, PA.

<sup>(b)</sup> For Bank membership purposes, principal place of business is Horsham, PA.

<sup>(c)</sup> For Bank membership purposes, principal place of business is Pittsburgh, PA.

Additionally, due to the fact that a majority of the Board of the Bank is elected from the membership of the Bank, these elected directors are officers and/or directors of member institutions that own the Bank's capital stock. These institutions are provided in the following table.

**Capital Stock Outstanding to Member Institutions**

**Whose Officers and/or Directors Served as a Director of the Bank**

**as of February 28, 2026**

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| | | | |
|:---|:---|:---|:---|
| Name | Address | Capital <sup>(1)</sup> | % of Total <br>Capital Stock |
| PNC Bank, N.A. | 222 Delaware Avenue<br>Wilmington, Delaware 19899 | $**668097500** | **27.0%** |
| Penn Community Bank | 3969 Durham Road<br>Doylestown, Pennsylvania 18902 | **12360500** | **0.5%** |
| Harleysville Bank | 271 Main Street<br>Harleysville, Pennsylvania 19438 | **7200500** | **0.3%** |
| NexTier Bank, N.A. | 222 Market Street <br>Kittanning, Pennsylvania 16201 | **7159000** | **0.3%** |
| Citizens Bank of West Virginia | 211 Third Street<br>Elkins, West Virginia 26241 | **5001000** | **0.2%** |
| Hyperion Bank | 199 West Girard Avenue Philadelphia, Pennsylvania 19123 | **1925300** | **0.1%** |
| The Victory Bank | 548 North Lewis Road<br>Limerick, Pennsylvania 19468 | **1281600** | **0.1%** |
| Stepping Stones Community Federal Credit Union | 603 N Church St<br>Wilmington, Delaware 19801 | **10000** | **\*** |

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*Notes:*

\*Less than 0.1%.

<sup>(1)</sup> In accordance with Section 10(c) of the FHLBank Act and the terms of the Bank's security agreement with each member, the capital stock held by each member is pledged to the Bank as additional collateral to secure that member's loans and other indebtedness to the Bank.

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**Item 13: Certain Relationships and Related Transactions, and Director Independence**

**Corporate Governance Guidelines** 

The Bank has adopted corporate governance guidelines titled "Corporate Governance Principles" which are available at *<u>www.fhlb-pgh.com</u>* by first clicking "About Us", then selecting "Corporate Governance" from the drop-down menu, and then clicking "Corporate Governance Principles". The Corporate Governance Principles are also available in print to any member upon written request to the Bank, 301 Grant Street, Suite 2000, Pittsburgh, Pennsylvania 15219, Attention: General Counsel. These principles were adopted by the Board to further the Board's independence from management in support of the Board's oversight of management and to help align the interests of the Board and management align with the interests of the Bank's members.

On an annual basis, each director and executive officer is obligated to complete a director and officer questionnaire, which requires disclosure of any transactions with the Bank in which the director or executive officer, or any member of his or her immediate family, has a direct or indirect material interest. All directors must adhere to the Bank's Code of Business Conduct which addresses conflicts of interest. Under the Code of Business Conduct, only the Board can grant a waiver of the Code's requirements in regard to a director or executive officer.

**Bank's Cooperative Structure** 

All members are required by law to purchase capital stock in the Bank. The capital stock of the Bank can be purchased only by members. As a cooperative, the Bank's products and services are provided almost exclusively to its members. In the ordinary course of business, transactions between the Bank and its members are carried out on terms that are established by the Bank, including pricing and collateralization terms that treat all similarly situated members on a nondiscriminatory basis. Loans included in such transactions did not involve more than the normal risk of collectability or present other unfavorable terms. Currently, eight of the Bank's 14 directors are officers or directors of members. In recognition of the Bank's status as a cooperative, in correspondence from the Office of Chief Counsel of the Division of Corporation Finance of the SEC, dated September 28, 2005, transactions in the ordinary course of the Bank's business with member institutions are excluded from SEC Related Person Transaction disclosure requirements.

**Related Person Transaction Policy** 

In addition to the Bank's Code of Business Conduct, which continues to govern potential director and executive officer conflicts of interest, originally effective January 31, 2007, most recently updated effective December 11, 2025, the Bank adopted a written Related Person Transaction Policy (Policy). The Policy is subject to annual review and approval and was most recently re-approved by the Board in February 2026. In accordance with the terms of the Policy, the Bank will enter into Related Person Transactions that are not in the ordinary course of Bank business only when the Governance and Public Policy Committee of the Board determines that the Related Person Transaction is in the best interests of the Bank and its investors. Ordinary course of Bank business is defined as providing the Bank's products and services, including affordable housing products, to member institutions on terms no more favorable than the terms of comparable transactions with similarly situated members. A Related Person Transaction subject to disclosure is a transaction, arrangement or relationship, including any indebtedness or guarantee of indebtedness (or a series of transactions, arrangements or relationships) in which the Bank was, is or will be a participant, the amount involved exceeds $120,000 and in which a Related Person had, has or will have a direct or indirect material interest. A Related Person is any director or executive officer of the Bank, any member of their immediate families or any person (other than a tenant or employee) sharing their households, any firm, corporation or other entity in which any of the foregoing is employed, is a general partner or principal or in a similar position, or in which such person has a 5 percent or greater beneficial ownership interest, or any holder of more than 5 percent of any class of the Bank's voting securities. A transaction with a company with which a Related Person is associated is deemed pre-approved where the Related Person: (1) serves only as a director of such company; (2) is only an employee (and not an executive officer) of such company; or (3) is the beneficial owner of less than 10 percent of such company's shares.

**Related Person Transactions** 

On February 19, 2009, the Governance and Public Policy Committee of the Board approved the Bank entering into interest bearing deposit, Federal funds, unsecured note purchase (including TLGP investments) and other money market transactions with Bank members, including 5 percent or greater shareholders of the Bank and Member Directors' institutions. Beginning in 2011, the Governance and Public Policy Committee continued re-authorization in regard to additional member money market

------

transactions annually. All such transactions must be in accordance with the terms of the Bank's investment and counterparty policy statements and limits.

In 2025, the Bank engaged in Federal funds and interest-bearing deposit transactions with the following Related Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First National Bank of Pennsylvania, a Bank member holding 5 percent or more of the Bank's outstanding capital stock. The largest principal amount of Federal funds outstanding with First National Bank of Pennsylvania in 2025 was $50.0 million and the total amount of interest paid on Federal funds was $6.0 thousand.

Under the terms of the Bank's Related Person Transaction Policy as most recently approved, the Governance and Public Policy Committee of the Board annually reviews previously approved Related Person Transactions to determine whether to authorize any new Related Person Transactions with each Related Person that the Governance and Public Policy Committee has previously approved. Such re-authorization applies solely to new Related Person Transactions with such entity(ies) and does not affect the authorized status of any existing and outstanding Related Person Transactions. In February 2026, the Governance and Public Policy Committee considered the previously approved member/stockholder money market transactions as described above and determined to continue the authorization of new such money market transactions with such entities.

**Director Independence** 

Under the FHLBank Act, Bank management is not allowed to serve on the Bank's Board. Consequently, all directors of the Bank are outside directors. As discussed in Item 10. Directors, Executive Officers and Corporate Governance in this Form 10-K, directors are classified under the FHLBank Act as either being a Member Director or an Independent Director. By statute, the Board cannot expand or reduce the number of directors that serve on the Board. Only the Finance Agency has the authority to determine how many seats exist on the Board, which is currently set at 14. As of February 28, 2026, the Board was comprised of 14 directors: eight Member Directors and six Independent Directors. Currently, the Board has its full complement of directors.

The Bank's directors are prohibited from personally owning stock in the Bank. In addition, the Bank is required to determine whether its directors are independent under two distinct director independence standards. First, the FHLBank Act and Finance Agency Regulations establish substantive independence criteria, including independence criteria for directors who serve on the Bank's Audit Committee. Second, the SEC rules require, for disclosure purposes, that the Bank's Board apply the independence criteria of a national securities exchange or automated quotation system in assessing the independence of its directors.

***The FHLBank Act and Finance Agency Regulations.*** Under the FHLBank Act and Finance Agency regulations, an individual is not eligible to be an Independent Bank Director if the individual serves as an officer, employee, or director of any member of the Bank, or of any recipient of loans from the Bank. During 2025 and through February 28, 2026, none of the Bank's Independent Directors was an officer, employee or director of any member or of any institution that received advances from the Bank.

Under the FHLBank Act and Finance Agency regulations, the FHLBanks are required to comply with certain substantive Audit Committee director independence standards under the Exchange Act. A relevant rule for those standards generally provides that in order to be considered to be independent, a member of an audit committee may not: a) accept directly or indirectly a compensatory fee (other than from the issuer for service on the Board) or b) be an affiliated person of the issuer, defined as someone who directly or indirectly controls the issuer. Relevant rules generally provide that a person will be deemed not to control an issuer if the person does not own directly or indirectly more than 10 percent of any class of voting equity securities. The rules do not create a presumption in any way that a person exceeding the ownership requirement controls or is otherwise an affiliate of a specified person. As a result, applicable law raises an issue whether a Member Director whose institution is a 10 percent or greater Bank shareholder could be viewed as an affiliate of the Bank, rendering such Member Director ineligible to serve on the Bank's Audit Committee. Because of the cooperative structure of the FHLBanks, the limited items on which FHLBank stockholders may vote and the statutory cap limiting the votes that any one member may cast for a director to the state average, it is not clear that the fact that a Member Director's institution that is a 10 percent or greater Bank shareholder is an affiliate of the Bank. Nevertheless, none of the Bank's current Audit Committee members nor those who served during 2025 were Member Directors from institutions that were 10 percent or greater Bank shareholders.

In addition, the Finance Agency director independence standards prohibit individuals from serving as members of the Bank's Audit Committee if they have one or more disqualifying relationships with the Bank or its management that would interfere with the exercise of that individual's independent judgment. Disqualifying relationships considered by the Board are: employment with the Bank at any time during the last five years; acceptance of compensation from the Bank other than for

------

service as a director; being a consultant, advisor, promoter, underwriter or legal counsel for the Bank at any time within the last five years; and being an immediate family member of an individual who is or who has been within the past five years, a Bank executive officer. As of February 28, 2026 and as of the date of this filing, all members of the Audit Committee were independent under these standards.

***SEC Rules.*** Pursuant to the SEC rules applicable to the Bank for disclosure purposes, the Bank's Board has adopted the independence standards of the New York Stock Exchange (NYSE) to determine which of its directors are independent, which members of its Human Resources and OMWI Committee are not independent, which members of its Audit Committee are not independent, and whether the Bank's Audit Committee financial expert is independent. As the Bank is not a listed company, the NYSE director independence standards are not substantive standards that are applied to determine whether individuals can serve as members of the Bank's Board, Human Resources and OMWI or Audit Committees.

After applying the NYSE independence standards, the Board determined that, for purposes of the SEC disclosure rules, as of February 28, 2026, all six of the Bank's Independent Directors, Brooks, Diaz, Helm, Herrle, Murphy, and Slaughter, are independent. In determining that Director Brooks was independent, the Board considered that Leon N. Weiner & Associates, Inc., the organization for which Director Brooks serves as President, received an AHP grant in the amount of $405,000 from the Bank in 2020 and that Leon N. Weiner Education Foundation, a charitable organization for which Mr. Brooks serves as Vice President, received an $8,000 charitable contribution in 2024 and $10,000 in 2025. In determining that Director Herrle was independent, the Board considered that Light of Light Rescue Mission, a non-profit organization for which Ms. Herrle has provided volunteer assistance, received an AHP grant in the amounts of $403,857 in 2023. The Board also considered that Light of Life Rescue Mission received charitable contributions of $8,000 in 2024 and $10,000 in 2025. Additionally, Girls Inc. of Greater Pittsburgh (formerly Strong Women, Strong Girls, Inc.), a non-profit organization to which Ms. Herrle provides volunteer assistance, serves as a director emeritus and has previously served on the organization's board received an $8,000 charitable contribution in 2024 and $10,000 in 2025.

The Board was unable to affirmatively determine that there are no material relationships (as defined in the NYSE rules) between the Bank and its eight Member Directors, and on February 12, 2026, concluded that none of the Bank's current Member Directors (Directors Messrs. Nathaniel S. Bonnell, Charles B. "Charlie" Crawford, Jr., James V. Dionise, Joseph W. Major, and Brendan J. McGill and Mses. Blanche L. Jackson, Sheryl S. Jordan, and Jeane M. Vidoni) was independent under the NYSE independence standards. In making this determination, the Board considered the cooperative relationship between the Bank and its Member Directors. Specifically, the Board considered the fact that each of the Bank's Member Directors is an officer or director of a Bank member institution, and each member institution has access to, and is encouraged to use, the Bank's products and services. Furthermore, the Board considered the appropriateness of making a determination of independence with respect to the Member Directors based on a member's given level of business as of a particular date, when the level of each member's business with the Bank is dynamic and the Bank's desire as a cooperative is to increase its level of business with each of its members. As the scope and breadth of a member's business with the Bank changes, such member's relationship with the Bank might, at any time, constitute a disqualifying transaction or business relationship under the NYSE's independence standards. For former Member Directors Messrs. Thomas Bailey and Thomas A. Hendry, who served on the Board in 2025, the Board determined that they were not independent.

The Board's Human Resources and OMWI Committee has responsibility for overseeing executive compensation. Applying the NYSE independence standards for compensation committee members, the Board determined that the current Member Directors serving on the Human Resources and OMWI Committee, Mr. Major and Mses. Jordan and Vidoni, are not independent. The Board determined that Independent Director Mr. Diaz is independent.

The Board has a standing Audit Committee. The Board determined that the Member Directors serving as members of the Bank's Audit Committee, Messrs. Bonnell, Crawford, and Dionise and Ms. Jackson, are not independent under the NYSE standards for Audit Committee members. The Board determined that Independent Director Ms. Helm, who is serving as a member of the Bank's Audit Committee, is independent under the NYSE standards. All of the Bank's Audit Committee members are independent under the Finance Agency independence standards.

------

**Item 14: Principal Accountant Fees and Services**

&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the aggregate fees billed to the Bank for 2025 and 2024 by its independent registered public accounting firm, PricewaterhouseCoopers LLP.

---

| | | |
|:---|:---|:---|
| (in thousands) | 2025 | 2024 |
| Audit fees | $**1076** | $1045 |
| Audit-related fees | **86** | 110 |
| All other fees | **2** | 2 |
| Total fees | $**1164** | $1157 |

---

Audit fees consist of fees billed for professional services rendered for the audits of the financial statements, reviews of interim financial statements, and audits of the Bank's internal controls over financial reporting for the years ended December 31, 2025 and 2024.

Audit-related fees consist of fees billed during 2025 and 2024 for assurance and related services reasonably related to the performance of the audit or review of the financial statements. Audit-related fees were for assurance and related services primarily for accounting consultations and fees related to participation in, and presentations at, conferences. All other fees were for the annual license of disclosure compliance checklist.

The Bank is exempt from all Federal, state and local income taxation with the exception of real estate property taxes and certain employer payroll taxes. There were no tax fees paid during 2025 and 2024.

The Audit Committee approves the annual engagement letter for the Bank's audit. All other services provided by the independent accounting firm are pre-approved by the Audit Committee. The Audit Committee delegates to the Chair of the Audit Committee the authority to pre-approve non-audit services not prohibited by law to be performed by the independent auditors, subject to any single request involving a fee of $100,000 or higher being circulated to all Audit Committee members for their information and comment. The Chair shall report any decision to pre-approve such services to the full Audit Committee at its next meeting.

The Bank paid additional fees to PricewaterhouseCoopers LLP in the form of assessments paid to the OF. These fees were approximately $64 thousand and $58 thousand for 2025 and 2024, respectively. These fees were classified as Other Expense - Office of Finance on the Statements of Income and were not included in the totals above.

**PART IV**

**Item 15: Exhibits and Financial Statement Schedules** 

**(a)(1) Financial Statements**

The following financial Statements of the Federal Home Loan Bank of Pittsburgh, set forth in Item 8 above, are filed as part of this Report.

Management's Report on Internal Control over Financial Reporting

Report of Independent Registered Public Accounting firms (PCAOB ID 238)

Statements of Income for each of the years ended December 31, 2025, 2024 and 2023

Statements of Comprehensive Income for each of the years ended December 31, 2025, 2024 and 2023

Statements of Condition as of December 31, 2025 and 2024

Statements of Cash Flows for each of the years ended December 31, 2025, 2024 and 2023

Statements of Changes in Capital for each of the years ended December 31, 2025, 2024 and 2023

Notes to Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Statement Schedules

------

The schedules required by the applicable accounting regulations of the Securities and Exchange Commission that would normally appear in Item 8. Financial Statements and Supplementary Data are included in the Earnings Performance and Financial Condition sections within Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

**(b) Index of Exhibits** 

The following is a list of the exhibits filed or furnished with the Bank's 2025 Form 10-K or incorporated herein by reference.

---

| | | |
|:---|:---|:---|
| **Exhibit No.** | **Description** | **Method of Filing +** |
| <u>[3.1](http://www.sec.gov/Archives/edgar/data/1330399/000095012806000096/j1946401exv3w1.htm)</u> | Certificate of Organization | Incorporated by reference to the correspondingly numbered Exhibit to the Bank's registration statement on Form 10 filed with the SEC on June 9, 2006. |
| <u>[3.2](http://www.sec.gov/Archives/edgar/data/1330399/000133039916000019/fhlbpitexh32110k2015.htm)</u> | The Bylaws of the Federal Home Loan Bank of Pittsburgh as amended effective March 10, 2016 | Incorporated by reference to Exhibit 3.2.1 to the Bank's Form 10-K filed with the SEC on March 10, 2016. |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/1330399/000133039922000010/fhlbpitex4110k2021.htm)</u> | Bank Capital Plan, as amended and restated effective October 6, 2014 | Incorporated by reference to Exhibit 4.1 to the Bank's Form 10-K filed with the SEC on March 9, 2022. |
| <u>[4.2](https://www.sec.gov/Archives/edgar/data/1330399/000133039920000008/fhlbpitex4210k2019.htm)</u> | Description of Registered Securities | Incorporated by reference to Exhibit 4.2 to the Bank's Form 10-K filed with the SEC on March 10, 2020. |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000010/fhlbpitex10122024severan.htm)</u> | 2024 Severance Policy\* | Incorporated by reference to Exhibit 10.1.2 to the Bank's Form 10-K filed with the SEC on March 5, 2025. |
| <u>[10.1.2](fhlbpitex10122025severan.htm)</u> | 2025 Severance Policy\* | Filed herewith. |
| <u>[10.2](http://www.sec.gov/Archives/edgar/data/1330399/000133039917000007/fhlbpitex10311q2017.htm)</u> | Amended and Restated Federal Home Loan Banks P&I Funding and Contingency Plan Agreement | Incorporated by reference to Exhibit 10.3.1 to the Bank's Form 10-Q filed with the SEC on May 9, 2017.  |
| <u>[1](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000017/fhlbpitex102-2025directo.htm)[0.3](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000017/fhlbpitex102-2025directo.htm)</u> | 2025 Directors' Compensation Policy\* | Incorporated by reference to Exhibit 10.2 to the Bank's Form 10-Q filed with the SEC on May 6, 2025. |
| <u>[1](https://www.sec.gov/Archives/edgar/data/1330399/000119312526013880/ck0001330399-ex10_1.htm)[0.3](https://www.sec.gov/Archives/edgar/data/1330399/000119312526013880/ck0001330399-ex10_1.htm)[.1](https://www.sec.gov/Archives/edgar/data/1330399/000119312526013880/ck0001330399-ex10_1.htm)</u> | 2026 Directors' Compensation Policy\* | Incorporated by reference to Exhibit 10.1 to the Bank's Form 8-K/A filed with the SEC on January 15, 2026. |
| <u>[10.4](https://www.sec.gov/Archives/edgar/data/1330399/000133039915000008/fhlbpitex10521q2015.htm)</u> | Supplemental Executive Retirement Plan Amended and Restated Effective June 26, 2007, Revised December 19, 2008, December 18, 2009, October 26, 2012 and March 26, 2015\* | Incorporated by reference to Exhibit 10.5.2 to the Bank's Form 10-Q filed with the SEC on May 7, 2015. |
| <u>[10.5](https://www.sec.gov/Archives/edgar/data/1330399/000133039924000008/fhlbpitex105.htm)</u> | Pentegra Defined Benefit Plan for Financial Institutions Summary Plan Description Dated January 1, 2019\* | Incorporated by reference to Exhibit 10.5 to the Bank's Form 10-K filed with the SEC on March 6, 2024. |
| <u>[10.6](https://www.sec.gov/Archives/edgar/data/1330399/000133039919000018/fhlbpitex1012q2019.htm)</u> | Supplemental Thrift Plan Amended and Restated Effective June 26, 2007, Revised September 26, 2007, December 19, 2008, December 18, 2009, October 26, 2012, March 26, 2015, and June 21, 2019\* | Incorporated by reference to Exhibit 10.1 to the Bank's Form 10-Q filed with the SEC on August 8, 2019. |
| <u>[10.6.1](fhlbpitex1061vanguardsumma.htm)</u> | Federal Home Loan Bank of Pittsburgh Defined Contribution Plan Summary Plan Description Dated January 1, 2022\* | Filed herewith. |
| <u>[10.7](https://www.sec.gov/Archives/edgar/data/1330399/000133039916000025/fhlbpitex10712q2016.htm)</u> | Mortgage Partnership Finance<sup>®</sup> Consolidated Interbank Agreement Dated July 22, 2016 | Incorporated by reference to Exhibit 10.7.1 to the Bank's Form 10-Q filed with the SEC on August 9, 2016. |
| <u>[10.7.1](https://www.sec.gov/Archives/edgar/data/1330399/000133039924000008/fhlbpitex1071.htm)</u> | Addendum to the Mortgage Partnership Finance<sup>®</sup> Consolidated Interbank Agreement Dated August 21, 2017 | Incorporated by reference to Exhibit 10.7.1 to the Bank's Form 10-K filed with the SEC on March 6, 2024. |

---

------

---

| | | |
|:---|:---|:---|
| **Exhibit No.** | **Description** | **Method of Filing +** |
| <u>[10.8](http://www.sec.gov/Archives/edgar/data/1330399/000133039916000025/fhlbpitex10912q2016.htm)</u> | August 2016 Form of Executive Officer Severance Agreement (CIC)\* | Incorporated by reference to Exhibit 10.9.1 to the Bank's Form 10-Q filed with the SEC on August 9, 2016. |
| <u>[10.9](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000010/fhlbpitex109prdlegal-10373.htm)</u> | December 2024 Executive Officer Severance Agreement for David G. Paulson\* | Incorporated by reference to Exhibit 10.9 to the Bank's Form 10-K filed with the SEC on March 5, 2025. |
| <u>[10.10](https://www.sec.gov/Archives/edgar/data/1330399/000133039922000010/fhlbpitex101410k2021.htm)</u> | 2022 Executive Officer Incentive Compensation Plan\* | Incorporated by reference to Exhibit 10.14 to the Bank's Form 10-K filed with the SEC on March 9, 2022. |
| <u>[10.11](https://www.sec.gov/Archives/edgar/data/1330399/000133039923000009/fhlbpitex101310k2022.htm)</u> | 2023 Executive Officer Incentive Compensation Plan\* | Incorporated by reference to Exhibit 10.13 to the Bank's Form 10-K filed with the SEC on March 8, 2023. |
| <u>[10.12](https://www.sec.gov/Archives/edgar/data/1330399/000133039924000008/fhlbpitex1013.htm)</u> | 2024 Executive Officer Incentive Compensation Plan\* | Incorporated by reference to Exhibit 10.13 to the Bank's Form 10-K filed with the SEC on March 6, 2024. |
| <u>[10.13](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000010/fhlbpitex1014exd-2025execu.htm)</u> | 2025 Executive Officer Incentive Compensation Plan\* | Incorporated by reference to Exhibit 10.14 to the Bank's Form 10-K filed with the SEC on March 5, 2025. |
| <u>[10.15](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000010/exhibit1015offerletterfo.htm)</u> | Offer Letter for David G. Paulson\* | Incorporated by reference to Exhibit 10.14 to the Bank's Form 10-K filed with the SEC on March 5, 2025. |
| <u>[10.16](http://www.sec.gov/Archives/edgar/data/1330399/000129993311000655/exhibit1.htm)</u> | Joint Capital Enhancement Agreement Dated February 28, 2011 | Incorporated by reference to Exhibit 99.1 of the Bank's Form 8-K filed with the SEC on March 1, 2011. |
| <u>[10.17](http://www.sec.gov/Archives/edgar/data/1330399/000129993311002441/exhibit1.htm)</u> | Amended Joint Capital Enhancement Agreement Dated August 5, 2011 | Incorporated by reference to Exhibit 99.1 of the Bank's Form 8-K filed with the SEC on August 5, 2011. |
| <u>[10.18](https://www.sec.gov/Archives/edgar/data/1330399/000133039919000010/fhlbpitex1011q2019.htm)</u> | Form of Director and Officer Indemnification Agreement\* | Incorporated by reference to Exhibit 10.1 to the Bank's Form 10-Q filed with the SEC on May 7, 2019. |
| <u>[1](fhlbpitex1019-agreement_.htm)[0.19](fhlbpitex1019-agreement_.htm)</u> | Agreement and General Release for Peggy Delinois Hamilton Dated November 11, 2025\* | Filed herewith. |
| <u>[10.21](fhlbpitex10212022_keyxempl.htm)</u> | 2022 Key Employee Incentive Compensation Plan\* | Filed herewith |
| <u>[1](fhlbpitex10222023_keyxempl.htm)[0.22](fhlbpitex10222023_keyxempl.htm)</u> | 2023 Key Employee Incentive Compensation Plan\* | Filed herewith |
| <u>[1](fhlbpitex10232024_keyxempl.htm)[0.23](fhlbpitex10232024_keyxempl.htm)</u> | 2024 Key Employee Incentive Compensation Plan\* | Filed herewith |
| <u>[1](fhlbpitex10242025_keyxempl.htm)[0.24](fhlbpitex10242025_keyxempl.htm)</u> | 2025 Key Employee Incentive Compensation Plan\* | Filed herewith |
| <u>[19.1](https://www.sec.gov/Archives/edgar/data/1330399/000133039925000010/fhlbpitex191prdlegal-10368.htm)</u> | Securities Trading Policy | Incorporated by reference to Exhibit 19.1 to the Bank's Form 10-K filed with the SEC on March 5, 2025. |
| <u>[24.0](fhlbpitex240directorpoas.htm)</u> | Power of Attorney | Filed herewith. |
| <u>[31.1](fhlbpitex3114q2025.htm)</u> | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for the Chief Executive Officer | Filed herewith. |
| <u>[31.2](fhlbpitex3124q2025.htm)</u> | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for the Principal Financial Officer | Filed herewith. |
| <u>[32.1](fhlbpitex3214q2025.htm)</u> | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief Executive Officer | Furnished herewith. |
| <u>[32.2](fhlbpitex3224q2025.htm)</u> | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the Principal Financial Officer | Furnished herewith. |
| <u>[99.1](fhlbpitex991auditcommitt.htm)</u> | Federal Home Loan Bank of Pittsburgh Board of Directors Audit Committee Charter | Filed herewith. |
| <u>[99.2](exhibit992auditcommitteere.htm)</u> | Report of the Audit Committee | Furnished herewith. |
| 101.INS | 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. | Filed herewith. |
| 101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith. |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith. |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith. |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith. |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed herewith. |

---

+ Incorporated document references to filings by the registrant are to SEC File No. 000-51395.

\* Denotes management contract or compensatory plan.

------

**Item 16: Form 10-K Summary**

None

------

 **GLOSSARY** 

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ABS**: Asset-Backed Securities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ACL:** Allowance for credit losses |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AMA:** Acquired member assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AMA Investment Grade:** A determination made by the Bank with respect to an asset or pool, based on documented analysis, including consideration of applicable insurance, credit enhancements, and other sources for repayment on the asset or pool, that the Bank has a high degree of confidence that it will be paid principal and interest in all material respects, even under reasonably likely adverse changes to expected economic conditions. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Annual Collateral Certification Report (ACCR):** The ACCR is a certification that the member maintains qualifying lending value equal to or greater than the collateral maintenance level, to secure all loans and other credit products, and certifies compliance with FHLBank guidance on subprime and nontraditional lending. Members that are required to file an ACCR are insurance company members, community development financial institutions (CDFIs) and members in listing status that derive an MBC from a loan-level listing template or through the physical delivery of loans or securities |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APBO:** Accumulated Post-retirement Benefit Obligation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Accumulated Other Comprehensive Income (Loss) (AOCI):** Represents gains and losses of the Bank that have not yet been realized; balance is presented in the Equity section of the Statements of Condition. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Advance:** Secured loan made to a member, former member, or housing associate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Affordable Housing Program (AHP):** Bank program that provides primarily direct grants and/or subsidized loans to assist members in meeting communities' affordable housing needs. Each FHLBank sets aside 10% of its pre-assessment income to fund the program with a minimum $100 million annual contribution by all 11 FHLBanks. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Banking On Business (BOB):** Bank program that assists eligible small businesses with start-up and expansion. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Capital stock:** The five-year redeemable stock issued by the Bank pursuant to its Capital Plan. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Clearing House**: Derivative Clearing Organizations |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**CODM**: Bank's chief operating decision maker |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collateral:** Property subject to a security interest that secures the discharge of an obligation (e.g., mortgage or debt obligation); a security interest that the Bank is required by statute to obtain and thereafter maintain beginning at the time of origination or renewal of a loan. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Collateralized mortgage obligations (CMO):** Type of bond that divides cash flows from a pool of mortgages into multiple classes with different maturities or risk profiles. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Committee on Uniform Securities Identification Procedures (CUSIP):** CUSIP-based identifiers provide a unique name for a wide range of global financial instruments including equity and debt issues, derivatives and syndicated loans. The CUSIP consists of a combination of nine characters, both letters and numbers, which identify a company or issuer and the type of security. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Community Development Financial Institution (CDFI):** Private institutions that provide financial services dedicated to economic development and community revitalization in underserved markets; include community development loan funds, venture capital funds and state-chartered credit unions without Federal deposit insurance. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Community Financial Institution (CFI):** Bank member that has deposits insured under the FDIC and is exempt from the requirement of having at least 10% of total assets in residential mortgage loans. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Community Lending Program (CLP):** Bank program that funds community and development projects. When loans are repaid, the money is available to be lent to other projects. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated Obligation (CO):** Bonds and discount notes that are the joint and several liability of all 11 FHLBanks and are issued and serviced through the OF. These instruments are the primary source of funds for the FHLBanks. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Conventional loan/mortgage:** Mortgage that is neither insured nor guaranteed by the FHA, VA or any other agency of the Federal government. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cost of funds:** Estimated cost of issuing FHLBank System consolidated obligations and discount notes. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Credit enhancement (CE) fee**: Fee payable monthly by an MPF Bank to a PFI in consideration of the PFI's obligation to fund the realized loss for a Master Commitment; based on fee rate applicable to such Master Commitment and subject to terms of the Master Commitment and applicable MPF mortgage product, which may include performance and risk participation features. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Delivery commitment:** Mandatory commitment of the parties, evidenced by a written, machine- or electronically generated transmission issued by an MPF Bank to a PFI accepting the PFI's oral mortgage loan delivery commitment offer. |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Demand Deposit Account (DDA):** The account each member maintains with the Bank. All incoming and outgoing wires, loan credits and debits, as well as any principal and interest payments from securities and loans are posted into the DDA. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Duration:** A common measure of the price sensitivity of an asset or liability to specified changes in interest rates. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**FFIEC:** Federal Financial Institutions Examination Council |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Deposit Insurance Corporation (FDIC):** Federal agency established in 1933 that guarantees (with limits) funds on deposit in member banks and performs other functions such as making loans to or buying assets from member banks to facilitate mergers or prevent failures. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Home Loan Bank Act of 1932 (the FHLBank Act):** Enacted by Congress in 1932 creating the FHLBank Board of Directors, whose role was to supervise a series of discount banks across the country. The intent was to increase the supply of money available to local institutions that made home loans and to serve them as a reserve credit resource. The FHLBank Board of Directors became the Federal Housing Board of Directors in 1989, which was replaced by the Federal Housing Finance Agency in 2008. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Home Loan Bank Office of Finance (OF):** FHLBank System's centralized debt issuance facility that also prepares combined financial statements, selects/evaluates underwriters, develops/maintains the infrastructure needed to meet FHLBank System goals and administers REFCORP. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC):** GSE chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Housing Administration (FHA):** Government agency established in 1934 and insures lenders against loss on residential mortgages. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Housing Finance Agency (Finance Agency):** Independent regulatory agency (established on enactment of the Housing Act) of the executive branch ensuring the FHLBanks, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation operate in a safe and sound manner, carry out their statutory missions and remain adequately capitalized and able to raise funds in the capital markets. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal National Mortgage Association (Fannie Mae or FNMA):** GSE established in 1938 to expand the flow of mortgage money by creating a secondary market. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Reserve Bank (FRB):** One part of the Federal Reserve System. There are a total of 12 regional privately-owned FRBs located in major cities throughout the U.S., which divide the nation into 12 districts. The FRBs act as fiscal agents for the U.S. Treasury; each have their own nine-member board of directors. The FRBs are located in Boston, New York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Reserve Board (Federal Reserve):** Governing body over the Federal Reserve System, the Federal Reserve is responsible for: (1) conducting the nation's monetary policy; (2) supervising and regulating banking institutions; (3) maintaining the stability of the financial system and containing systemic risk; and (4) providing financial services to depository institutions, the U.S. government and foreign official institutions. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Federal Reserve System:** Central banking system of the U.S. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**First Loss Account (FLA):** Notational account established by an MPF Bank for each Master Commitment based on and in the amount required under the applicable MPF mortgage product description and Master Commitment. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Generally Accepted Accounting Principles (GAAP):** Accounting term that encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. GAAP includes not only broad guidelines of general application, but also detailed practices and procedures. Those conventions, rules, and procedures provide a standard by which to measure financial presentations. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Government National Mortgage Association (Ginnie Mae or GNMA):** GSE established by Congress in 1968 that guarantees securities backed by a pool of mortgages. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Government-sponsored enterprise (GSE):** A private organization with a government charter whose function is to provide liquidity for the residential loan market or another identified government purpose. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**HELOC:** Home Equity Line of Credit |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Housing and Economic Recovery Act of 2008 (the Housing Act or HERA):** Enacted by Congress in 2008; designed primarily to address the subprime mortgage crisis. Established the Finance Agency, replacing the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Internal Credit Rating (ICR):** A scoring system used by the Bank to measure the financial condition of a member or housing associate and is based on quantitative and qualitative factors. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Joint and several liability:** Obligation for which multiple parties are each individually and all collectively liable for payment. |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loan to Value (LTV):** The loan-to-value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Master Servicer:** Financial institution that the MPF Provider has engaged to perform various master servicing duties on its behalf in connection with the MPF Program. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Maximum Borrowing Capacity (MBC):** Total possible borrowing limit for an individual member. This is determined based on the type and amount of collateral each member has available to pledge as security for Bank advances. It is computed using specific asset balances (market and/or book values) from qualifying collateral categories, which are discounted by applicable collateral weighting percentages. The MBC is equal to the aggregate collateral value net of any pledged assets. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Mortgage-backed securities (MBS):** Investment instruments backed by mortgage loans as security. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Mortgage Partnership Finance**<sup>®</sup> **(MPF**<sup>®</sup>**) Program:** FHLBank of Chicago program offered by select FHLBanks to their members to provide an alternative for funding mortgages through the creation of a secondary market. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Nationally Recognized Statistical Rating Organization (NRSRO)**: Credit rating agency registered with the SEC. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NYSE:** The New York Stock Exchange located in New York, New York. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OIS:** Overnight Index Swap rate based on the Federal Funds Effective rate |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OMWI:** Office of Minority and Women Inclusion |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ORERC:** Other real estate-related collateral. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other-than-Temporary Impairment (OTTI):** From an accounting standpoint, an "impairment" of a debt or equity security occurs when the fair value of the security is less than its amortized cost basis, i.e., whenever a security has an unrealized loss. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PMI**: Primary Mortgage Insurance |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Participating Financial Institution (PFI):** Bank member participating in the MPF Program, which is legally bound to originate, sell and/or service mortgages in accordance with the PFI Agreement, which it signs with the MPF Bank of which it is a member. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Permanent capital:** Retained earnings plus capital stock; capital stock includes mandatorily redeemable capital stock. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**QCR**: Qualifying Collateral Report |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**RBC**: Risk Based Capital |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ROE**: Return on Equity |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**RRE**: Restricted Retained Earnings |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Real Estate Owned (REO):** Mortgaged property acquired by a servicer on behalf of the mortgagee, through foreclosure or deed in lieu of foreclosure. |

| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SERP:** Supplemental Executive Retirement Plan. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Servicer:** Institution approved to service mortgages funded or purchased by an MPF Bank. The term servicer refers to the institution acting in the capacity of a servicer of mortgages for an MPF Bank under a PFI Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**SEC:** Securities and Exchange Commission |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Secured Overnight Financing Rate (SOFR):** A secured interbank overnight interest rate and reference rate established as an alternative to LIBOR. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Software-as-a-service (SaaS):** SaaS is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TAP auction debt:** Term used to address multiple FHLBank debt issuances within a given quarter which have the same terms. As an FHLBank issues debt with terms similar to other FHLBank debt already issued, the FHLBank 'taps' the original issuance and is assigned the same CUSIP; this creates one larger, more liquid issue. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Credit Exposure (TCE)**: In addition to total credit products, it includes accrued interest on all outstanding<br>advances and estimated potential prepayment fee amounts, where applicable, for advances to members in full delivery<br>collateral status. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Underlying:** A specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates or other variable. An underlying may be the price or rate of an asset or liability, but is not the asset or liability itself. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Veterans Affairs, Department of (VA):** Federal agency with oversight for programs created for veterans of the U.S. armed forces. Mortgage loans granted by a lending institution to qualified veterans or to their surviving spouses may be guaranteed by the VA. |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average coupon (WAC):** Weighted average of the interest rates of loans within a pool or portfolio. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Weighted average life (WAL):** The average amount of time that will elapse from the date of a security's issuance until each dollar of principal is repaid. The WAL of mortgage loans or MBS is only an assumption. The average amount of time that each dollar of principal is actually outstanding is influenced by, among other factors, the rate at which principal, both scheduled and unscheduled, is paid on the mortgage loans. |

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**SIGNATURE**

Pursuant to the requirements of Section 13 or 15(d) 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 Pittsburgh

&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)

By: <u>/s/David G. Paulson</u>

David G. Paulson

President and Chief Executive Officer

Date: March 4, 2026

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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| | | |
|:---|:---|:---|
| <u>Signature</u> | <u>Capacity</u> | <u>Date</u> |
| <u>/s/ David G. Paulson</u> <br>David G. Paulson | President and Chief Executive Officer (Principal Executive Officer) | March 4, 2026 |
| <u>/s/ Edward V. Weller</u> <br>Edward V. Weller | Chief Financial Officer (Principal Financial Officer) | March 4, 2026 |
| <u>/s/ Matthew A. Cooper</u><br>Matthew A. Cooper | Chief Accounting Officer (Principal Accounting Officer) | March 4, 2026 |
| <u>\*/s/ Brendan J. McGill</u><br>Brendan J. McGill | Chairman of the Board of Directors | March 4, 2026 |
| <u>\*/s/ Louise M. Herrle</u><br>Louise M. Herrle | Vice Chairman of the Board of Directors | March 4, 2026 |
| <u>\*/s/ Nathaniel S. Bonnell</u><br>Nathaniel S. Bonnell | Director | March 4, 2026 |
| <u>\*/s/ Glenn R. Brooks</u><br>Glenn R. Brooks | Director | March 4, 2026 |

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| | | |
|:---|:---|:---|
| <u>Signature</u> | <u>Capacity</u> | <u>Date</u> |
| <u>\*/s/ Charles B. Crawford, Jr.</u><br>Charles B. Crawford, Jr. | Director | March 4, 2026 |
| <u>\*/s/ Romulo L. Diaz, Jr., Esq.</u><br>Romulo L. Diaz, Jr., Esq. | Director | March 4, 2026 |
| <u>\*/s/ James V. Dionise</u> <br>James V. Dionise | Director | March 4, 2026 |
| <u>\*/s/ Angel L. Helm</u><br>Angel L. Helm | Director | March 4, 2026 |
| <u>\*/s/ Blanche L. Jackson</u><br>Blanche L. Jackson | Director | March 4, 2026 |
| <u>\*/s/ Sheryl S. Jordan</u><br>Sheryl S. Jordan | Director | March 4, 2026 |
| <u>\*/s/ Joseph W. Major</u><br>Joseph W. Major | Director | March 4, 2026 |
| <u>\*/s/ Thomas H. Murphy</u><br>Thomas H. Murphy | Director | March 4, 2026 |
| <u>\*/s/ Dr. Howard B. Slaughter, Jr.</u><br>Dr. Howard B. Slaughter, Jr. | Director | March 4, 2026 |
| <u>\*/s/ Jeane M. Vidoni</u><br>Jeane M. Vidoni | Director | March 4, 2026 |
| <u>\*By: /s/ John A. Ott</u><br>John A. Ott, Attorney-in-fact, pursuant to Power of Attorney filed herewith |  |  |

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## Exhibit 10.1

![](fhlbpitex10122025severan001.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 1 of 6 Version: 2022_01 OBJECTIVE The Bank provides for payment of severance benefits to Eligible Employees upon Involuntary Termination of employment. POLICY Eligibility Employees involuntarily terminated from employment as described in the definition of Eligible Employee set forth below. Notification Employees are provided a minimum of two weeks' notice in the event of the termination of their employment. The Bank may, at its discretion, provide salary continuation in lieu of notice. Separation and Release Agreement The Bank will require a signed separation and release agreement between the Bank and the employee relative to any salary, benefits or services offered through this policy. The agreement includes a description of the severance benefits and provides a general release by the employee for any claims against the Bank relative to the separation action as well as any other claims relating to employment with the Bank. Payments and Benefits Provided Salary Continuation The salary continuation benefit reflects the employee's current salary, position and length of Bank service. The benefit is calculated as follows: • Leadership (Executive Committee, Senior Directors, Directors and Analyst 7) 1 • 4 weeks base salary per year of service • 26-week minimum • 52-week maximum • Employees (Analyst 4 and above) • 3 weeks base salary per year of service • 12-week minimum • 36-week maximum 1 This also includes any employee who has ever been subject to a deferral of compensation under such Plan or the Chief Internal Auditor Incentive Compensation Plan.

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![](fhlbpitex10122025severan002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 2 of 6 Version: 2022_01 • Employees (Analyst 3 and below) • 2 weeks of base salary per year of service • 6 -week minimum • 26-week maximum Under certain circumstances the Bank may extend salary continuation beyond the described benefit levels, pending non-objection by the Federal Housing Finance Agency (the FHFA) when required. Years of Service Years of service are calculated based upon the employee's service years as of the most recent service anniversary. Any prior service within Bank system is included as service in the calculation of severance benefits. Payment Salary continuation payments shall be subject to all required withholdings. The payment schedule for salary continuation payments shall be set forth in the separation and release agreement between the Bank and the employee. Benefit Continuation During the salary continuation period, the Bank will make a monthly payment to the employee as taxable compensation in the amount equivalent to the amount the Bank contributes to its active employees' medical coverage. The employee may use this amount to apply toward the payment of continued medical coverage from the Bank. The employee is responsible for making payment to the Bank for continued medical coverage. In such case, the medical plan terms, requirements and level of coverage (single, two-party, and family) remain the same as the employee benefit election in effect at the time of the termination of employment. All terminating employees and their dependents who are participants in the Bank's dental and vision benefits have an option to continue coverage for a specified number of months following termination of their coverage. The employee is responsible for the full cost of such continuing coverage plus a 2% administrative fee. A letter outlining the option of benefit continuation is sent to employees following termination of their active employee coverage. Any vested retirement and/or thrift plan benefits are handled in the same manner as any employee who separates their employment from the Bank. All terminated employees, regardless of position, receive payment for earned, unused vacation. With respect to incentive compensation, the terms of any applicable incentive compensation plan(s) shall govern any incentive compensation and any incentive compensation payment will be governed by and made in accordance with the terms of such plan(s) not this policy. Tuition assistance approved and paid by the Bank prior to the termination date need not be

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![](fhlbpitex10122025severan003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 3 of 6 Version: 2022_01 reimbursed upon termination. Outplacement Services As part of this policy, the Bank may provide the following outplacement services: • Executive Committee and participants in the Bank's Key Employee Incentive Compensation Plan – formal individualized 12-month executive outplacement program • All Other Employees – appropriate career services or workshops as offered through the approved outplacement vendor Outplacement services are required to begin within 30 days of termination. The Bank will not pay cash in lieu of outplacement services.

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![](fhlbpitex10122025severan004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 4 of 6 Version: 2022_01 APPROVAL DATE: June 13, 2025 POLICY OWNER: Chief Human Resources Officer APPROVING MANAGEMENT COMMITTEE: Executive Committee APPROVAL FREQUENCY: Annual APPLICABILITY: Bank-wide APPROVING BOARD COMMITTEE: Human Resources and OMWI Committee POLICY ADMINISTRATION Approval of Exceptions. Any exceptions to this Policy must be approved by the President and in the case of any exception involving an executive officer by the Human Resources and OMWI Committee of the Board. Policy Interpretations. Overall responsibility for this Policy is assigned to the Chief Human Resources Officer including making Policy interpretations. Bank management is responsible for identifying and providing written documentation regarding any reduction in staff. Benefits provided to executive management under this Policy must be reviewed and approved by the Human Resources and OMWI Committee of the Board of Directors. Right to Amend or Terminate. The Bank reserves the right to amend, modify, or terminate this Policy at any time without notice. COMPLIANCE MONITORING As set forth in the Policy Governance Standards. APPLICABLE LAWS AND REGULATIONS 12 USC §4501 and 4502 12 C.F.R. Parts 1230 and 1231 26 U.S.C. §409A 26 C.F.R. Part 1.409A 26 U.C.C. Part 105(h) 26 C.F.R. Part 1.105 RELATED POLICIES; PROCEDURES Human Resources Employee Handbook Policy Governance Standards DEFINED TERMS

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![](fhlbpitex10122025severan005.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 5 of 6 Version: 2022_01 Executive Committee refers to the Bank's executive officers. Eligible Employees means full-time and part-time employees (>20 hours per week) with a minimum of 6 months of service whose employment with the Bank is discontinued due to, but not limited to, any of the following events: elimination of employee's position, misalignment of skills and/or business needs, general reduction in staff, substantial job modification resulting in employee's inability to qualify or perform the revised job, changing business needs, reorganization of Bank staff, or reassignment of staff requiring relocation of employee's primary residence. Eligible Employee does not include any employee who is terminated for cause [defined to include, without limitation, unsatisfactory job performance, misconduct or intentional neglect of job duties] Such employees are not eligible for benefits under this Policy. Involuntary Termination is intended to be interpreted consistent with the applicable 409A regulatory definition of "separation from service." POLICY HISTORY LOG Date Change Notes November 19, 2025 Non substantive wording changes Approval by Board and revision effective 11-19- 2025 June 13, 2025 Non substantive wording changes Annual approval by Board effective 6-13- 2025 June 14, 2024 Non substantive wording changes Annual approval by Board effective 6-14- 2024 August 18, 2023 Non substantive wording changes Annual approval by Board effective 8-18- 2023 June 16, 2022 Non substantive wording changes Annual approval by Board effective 7-1-2022 April 23, 2021 Non substantive wording changes Annual approval by Board effective 5-1-2021 June 19, 2020 Non substantive wording changes Annual approval by Board effective 6-19- 2020 June 21, 2019 Non substantive wording changes Annual approval by Board effective 6-21- 2019 June 21, 2018 No changes Annual approval by Board effective 6-21- 2018 June 22, 2017 Revisions to eligibility and minimum benefits Mid-year approval by Board and revision

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![](fhlbpitex10122025severan006.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;SEVERANCE POLICY Effective Date: November 19, 2025 Page 6 of 6 Version: 2022_01 effective 6-22-2017 December 14, 2016 Revisions to Committee name and Chief Human Resources Officer title Annual approval by Board and revision effective 1-1-2017 November 25, 2015 No changes Annual approval by Board effective 1-1-2016 December 18, 2014 Revised benefit continuation portion to comply with self-funding requirements Annual approval by Board and revision effective 1-1-2015

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## Exhibit 10.6

**SUMMARY PLAN DESCRIPTION FOR**

**Federal Home Loan Bank of Pittsburgh Defined Contribution Plan**

**January 1, 2022**

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**Table of Contents**

**Article 1&nbsp;&nbsp;&nbsp;&nbsp;Introduction**

**Article 2&nbsp;&nbsp;&nbsp;&nbsp;General Plan Information and Key Definitions**

**Article 3&nbsp;&nbsp;&nbsp;&nbsp;Description of Plan**

**Article 4&nbsp;&nbsp;&nbsp;&nbsp;Eligibility Requirements**

**Article 5&nbsp;&nbsp;&nbsp;&nbsp;Plan Contributions**

**Article 6&nbsp;&nbsp;&nbsp;&nbsp;Limit on Contributions**

**Article 7&nbsp;&nbsp;&nbsp;&nbsp;Determination of Vested Benefit**

**Article 8&nbsp;&nbsp;&nbsp;&nbsp;Participant Loans**

**Article 9&nbsp;&nbsp;&nbsp;&nbsp;Plan Distributions**

**Article 10&nbsp;&nbsp;&nbsp;&nbsp;Plan Administration and Investments**

**Article 11&nbsp;&nbsp;&nbsp;&nbsp;Plan Amendments and Termination**

**Article 12&nbsp;&nbsp;&nbsp;&nbsp;Plan Participant Rights and Claim Procedures**

**Addendum&nbsp;&nbsp;&nbsp;&nbsp;Additional SPD Provisions**

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**Federal Home Loan Bank of Pittsburgh Defined Contribution Plan SUMMARY PLAN DESCRIPTION**

![image_0a.jpg](image_0a.jpg)

Federal Home Loan Bank of Pittsburgh has adopted the Federal Home Loan Bank of Pittsburgh Defined Contribution Plan (the "Plan") to help its employees save for retirement. If you are an employee of Federal Home Loan Bank of Pittsburgh, you may be entitled to participate in the Plan, provided you satisfy the conditions for participation as described in this Summary Plan Description ("SPD").

This SPD is designed to help you understand the retirement benefits provided under the Plan and your rights and obligations with respect to the Plan. This SPD contains a summary of the major features of the Plan, including the conditions you must satisfy to participate under the Plan, the amount of benefits you are entitled to as a Plan participant, when you may receive distributions from the Plan, and other valuable information you should know to understand your Plan benefits. We encourage you to read this SPD and contact the Plan Administrator if you have any questions regarding your rights and obligations under the Plan. (See Article 2 below for the name and address of the Plan Administrator.)

This SPD does not replace the formal Plan document, which contains all of the legal and technical requirements applicable to the Plan. However, this SPD does attempt to explain the Plan language in a non-technical manner that will help you understand your retirement benefits. If the non-technical language under this SPD and the technical, legal language under the Plan document conflict, the Plan document always governs. If you have any questions regarding the provisions contained in this SPD or if you wish to receive a copy of the legal Plan document, please contact the Plan Administrator.

The Plan document may be amended or modified due to changes in law, to comply with pronouncements by the Internal Revenue Service (IRS) or Department of Labor (DOL), or due to other circumstances. If the Plan is amended or modified in a way that changes the provisions under this SPD, you will be notified of such changes.

This SPD does not create any contractual rights to employment nor does it guarantee the right to receive benefits under the Plan. Benefits are payable under the Plan only to individuals who have satisfied all of the conditions under the Plan document for receiving benefits. (See Article 12 - Plan Participant Rights and Claim Procedures for additional information.)

![image_1.jpg](image_1.jpg)

This Article 2 contains information regarding the day-to-day administration of the Plan as well as the definition of key terms used throughout this SPD.

**Plan Name:** Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Plan Number:** 001

**Employer:**

**Name:** Federal Home Loan Bank of Pittsburgh

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| | |
|:---|:---|
| **Address:** | 601 Grant Street |

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**City, State, Zip Code:** Pittsburgh, PA 15219-4455

**Telephone number:** (412) 288-3400

**Employer Identification Number (EIN):** 25-6001324

1

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Predecessor Employer(s):**

In applying the eligibility and allocation rules under Article 4 and the vesting rules under Article 7, all service you perform with us is taken into account. In addition, service may be credited with the following "predecessor" employers:

Federal Home Loan Banks

Office of Finance

Thus, if you performed any service for such predecessor employers, you may receive credit for such service under this Plan. Please contact the Plan Administrator if you have questions about the type of service that may be taken into account with such predecessor employers.

**Plan Administrator:**

The Plan Administrator is responsible for the day-to-day administration and operation of the Plan. For example, the Plan Administrator maintains the Plan records, provides you with forms necessary to request a distribution from the Plan, and directs the payment of your vested benefits when required under the Plan. The Plan Administrator may designate another person or persons to perform the duties of the Plan Administrator. The Plan Administrator or its delegate, as the case may be, has full discretionary authority to interpret the Plan, including the authority to resolve ambiguities in the Plan document and to interpret the Plan's terms, including who is eligible to participate under the Plan and the benefit rights of participants and beneficiaries. All interpretations, constructions and determinations of the Plan Administrator or its delegate shall be final and binding on all persons, unless found by a court of competent jurisdiction to be arbitrary and capricious. The Plan Administrator also will allow you to review the formal Plan document and other materials related to the Plan.

The Employer listed above is acting as Plan Administrator. The Plan Administrator may designate other persons to carry on the day-to-day operations of the Plan. If you have any questions about the Plan or your benefits under the Plan, you should contact the Plan Administrator or other Plan representative.

**Trustee:**

All amounts contributed to the Plan are held by the Plan Trustee in a qualified Trust. The Trustee is responsible for the safekeeping of the trust funds and must fulfill all Trustee duties in a prudent manner and in the best interest of you and your beneficiaries. The Employer has designated a separate Trustee to hold the assets under the Plan. The trust established on behalf of the Plan will be the funding medium used for the accumulation of assets from which Plan benefits will be distributed.

The following is the name and address of the Plan Trustee(s):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Name:** Vanguard Fiduciary Trust Company

**Address:** 100 Vanguard Blvd., Malvern, PA 19355

**Service of Legal Process:**

Service of legal process may be made upon the Plan Administrator at the address listed earlier in this Article 2. In addition, service of legal process may be made upon the Plan Trustee or your Employer, if different from the Plan Administrator.

**Effective Date of Plan:**

This Plan is a restatement of an existing Plan to comply with current law. This Plan was originally effective July 1, 2020. However, unless designated otherwise, the provisions of the Plan as set forth in this SPD are effective as of January 1, 2022.

2

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Plan Year:**

Many of the provisions of the Plan are applied on the basis of the Plan Year. For this purpose, the Plan Year is the calendar year running from January 1 – December 31.

**Plan Compensation:**

In applying the contribution formulas under the Plan (as described in Article 5 below), your contributions may be determined based on Plan Compensation earned during the Plan Year. However, in determining Plan Compensation, no amount will be taken into account to the extent such compensation exceeds the compensation dollar limit set forth under IRS rules. For 2021, the compensation dollar limit is $290,000 ($305,000 in 2022). Thus, for Plan Years beginning in 2021, no contribution may be made under the Plan with respect to Plan Compensation above $290,000 ($305,000 in 2022). For subsequent plan years, the compensation dollar limit may be adjusted for cost-of-living increases. Note that the compensation dollar limit described above does not apply to Salary Deferrals contributed to the Plan.

For purposes of determining Plan Compensation, your total taxable wages or salary is taken into account including any Salary Deferrals you make to this 401(k) plan and any pre-tax salary reduction contributions you may make under any other plans we may maintain, which may include any pre-tax contributions you make under a medical reimbursement plan or "cafeteria" plan. Plan Compensation also generally includes compensation for services that is paid after termination of employment, as long as such amounts are paid by the end of the year or within 2½ months following termination of employment, if later. However, for purposes of determining contributions under the Plan, Plan Compensation does not include the following types of compensation:

All fringe benefits (cash and noncash), reimbursements or other expense allowances, moving expenses, deferred compensation and welfare benefits

Bonuses

Commissions

Overtime payments

Deemed §125 compensation

Continuation payments to disabled Participants paid after severance of employment

**Period for determining Plan Compensation.** For purposes of determining Plan Compensation, only compensation you earn while you are a participant in the Plan will be taken into account. Thus, any compensation you earn while you are not eligible to participate in the Plan will not be considered in determining Plan Compensation.

**Special effective date provisions:** The rules for determining compensation under the Plan are effective as follows: Overtime payment exclusion effective 7-1-2020

**Normal Retirement Age:**

You will reach Normal Retirement Age under the Plan when you turn age 65.

**Disabled:**

For purposes of the Plan, Disabled is defined as: A Participant is considered disabled if they are eligible to receive (i) disability insurance benefits under Title II of the Federal Social Security Act or (ii) disability benefits under any other IRS qualified employee benefits plan or long-term disability plan of your employer

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

![image_3.jpg](image_3.jpg)

**Type of Plan.** This Plan is a special type of retirement plan commonly referred to as a 401(k) plan. Under the Plan, you may elect to have a portion of your salary deposited directly into a 401(k) account on your behalf. This pre-tax contribution is called a "Salary Deferral." As a pre-tax contribution, you do not have to pay any income tax while your Salary Deferrals are held in the Plan, and any earnings on your Salary Deferrals are not taxed while they stay in the Plan.

You also may choose to make contributions to the Plan on an after-tax basis, by designating your Salary Deferrals as Roth Deferrals. While you are taxed on a Roth Deferral in the year you contribute to the Plan, you will not be taxed on the contribution or earnings attributable to Roth Deferrals under the Plan when you elect to withdraw your Roth amounts from the Plan, as long as your withdrawal is a qualified distribution. See the discussion of Roth Deferrals under Article 5 below.

In addition to your own Salary Deferrals, if you satisfy the eligibility conditions described in Article 4 below, you may be eligible to receive an additional Employer Contribution under the Plan. If you are eligible to receive an Employer Contribution, we will deposit such contribution directly into the Plan on your behalf. Like the pre-tax Salary Deferrals discussed above, any Employer Contribution we make to the Plan on your behalf and any earnings on such amounts will not be subject to income tax as long as those amounts stay in the Plan. You will not be taxed on your Employer Contributions generally until you withdraw such amounts from the Plan. Article 5 below describes the Employer Contributions authorized under the Plan.

You also may make After-Tax Contributions to the Plan. If you elect to make After-Tax Contributions to the Plan, you make a contribution to the Plan out of your own compensation, after paying taxes on such amounts. When you take a distribution of your After-Tax Contributions, you will not be taxed on the amounts you actually contributed to the Plan as After-Tax Contributions (since you were already taxed on those amounts). Any earnings on your After-Tax Contributions will not be subject to income taxation as long as those amounts stay in the Plan. Upon distribution, you will be taxed on the earnings associated with your After-Tax Contributions. (See Article 9 below for a discussion of the distribution rules under the Plan.)

This Plan is a defined contribution plan, which is intended to qualify under Section 401(a) of the Internal Revenue Code. As a defined contribution plan, it is not covered under Title IV of ERISA and, therefore, benefits are not insured by the Pension Benefit Guaranty Corporation.

![image_4.jpg](image_4.jpg)

This Article sets forth the requirements you must satisfy to participate under the Plan. To qualify as a participant under the Plan, you must:

&nbsp;&nbsp;&nbsp;&nbsp;• be an Eligible Employee

&nbsp;&nbsp;&nbsp;&nbsp;• satisfy the Plan's minimum age and service conditions and

&nbsp;&nbsp;&nbsp;&nbsp;• satisfy any allocation conditions required under the Plan.

Employees who are residents of Puerto Rico may not participate in the Plan unless otherwise specifically included below.

**Eligible Employees**

To participate under the Plan, you must be an Eligible Employee. For this purpose, you are considered an Eligible Employee if you are an employee of Federal Home Loan Bank of Pittsburgh, provided you are not otherwise excluded from the Plan.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

For this purpose, if you worked for another Employer that we acquired in the past, you may be excluded from the Plan. If you have questions regarding your eligibility to participate in the Plan, please contact the Plan Administrator (or other Plan representative).

**Excluded Employees.** For purposes of determining whether you are an Eligible Employee, the Plan excludes from participation certain designated employees. If you fall under any of the excluded employee categories, you will not be eligible to receive the designated Plan contribution until such time as you no longer fall into an excluded employee category. [See below for a discussion of your rights upon changing to or from an excluded employee classification.]

The following describes the types of employees that are not eligible to participate with respect to the different types of contributions authorized under the Plan.

**Salary Deferrals.** The following employees are not eligible to make Salary Deferrals. If you fall under one of the following classes of employees, you may not make Salary Deferrals under the Plan.

Interns, short term (temporary) employees

**After-Tax Contributions.** The following employees are not eligible to make After-Tax Contributions. If you fall under one of the following classes of employees, you may not make After-Tax Contributions under the Plan.

Interns, short term (temporary) employees

**Matching Contributions.** The following employees are not eligible to receive Matching Contributions under the Plan. If you fall under one of the following classes of employees, you will not share in any Matching Contributions under the Plan.

Interns, short term (temporary) employees

**Employer Contributions.** The following employees are not eligible to receive Employer Contributions under the Plan. If you fall under one of the following classes of employees, you will not share in any Employer Contributions we make to the Plan.

Interns, short term (temporary) employees

all non-hourly employees hired before 1/1/2019

**Minimum Age and Service Requirements**

In order to participate in the Plan, you must satisfy certain age and service conditions under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Minimum age requirement.** There is no minimum age requirement for participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Minimum service requirement.** There is no minimum service requirement to participate under the Plan. Thus, you will be eligible to participate in the Plan (provided you are an Eligible Employee) as of the first Entry Date following your date of employment.

**Entry Date.** Once you have satisfied the eligibility conditions described above, you will be eligible to participate under the Plan on your Entry Date. For this purpose, your Entry Date is your date of employment. Thus, you will be eligible to participate immediately upon your date of hire, provided you are an Eligible Employee.

**Crediting eligibility service.** In determining whether you satisfy any minimum age or service conditions under the Plan, all service you perform during the year is counted. In addition, if you go on a maternity or paternity leave of absence (including a leave of absence under the Family Medical Leave Act) or a military leave of absence, you may receive credit for service during your period of absence for certain purposes under the Plan. You should contact the Plan Administrator to determine the effect of a maternity/paternity or military leave of absence on your eligibility to participate under the Plan. See Article 2 for a description of "predecessor" employers for whom service may be credited for eligibility purposes under the Plan.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Eligibility upon rehire or change in employment status.** If you terminate employment after satisfying the minimum age and service requirements under the Plan and you are subsequently rehired as an Eligible Employee, you will enter the Plan on the later of your rehire date or your Entry Date. If you terminate employment prior to satisfying the minimum age and service requirements, and you are subsequently rehired, you may have to re-satisfy the eligibility requirements in order to participate under the Plan. If you are rehired, see your Plan Administrator to determine when you may be eligible to participate in the Plan.

If you are not an Eligible Employee on your Entry Date, but you subsequently change status to an eligible class of Employee, you will be eligible to enter the Plan immediately (provided you have already satisfied the minimum age and service requirements). If you are an Eligible Employee and subsequently become ineligible to participate in the Plan, all contributions under the Plan will cease as of the date you become ineligible to participate. However, all service earned while you are employed, including service earned while you are ineligible, will be counted when calculating your vested percentage in your account balance.

**Allocation Conditions**

If you are an Eligible Employee and have satisfied the minimum age and service requirements described above, you are entitled to share in the contributions described in Article 5, provided you satisfy the allocation conditions described below.

**Salary Deferrals and After-Tax Contributions.** You do not need to satisfy any additional allocation conditions to make Salary Deferrals or After-Tax Contributions under the Plan. Thus, if you satisfy the eligibility conditions described above, you will be eligible to make Salary Deferrals and After-Tax Contributions, regardless of how many hours you work during the year or whether you terminate employment during the year. However, you may not continue to make Salary Deferrals or After-Tax Contributions after you terminate employment.

**Matching Contributions.** You will be entitled to share in any Matching Contributions we make to the Plan if you satisfy the eligibility conditions described above. You do not need to satisfy any additional allocation conditions to receive a Matching Contribution. You will receive your share of the Matching Contributions regardless of how many hours you work during the year or whether you terminate during the year.

**Employer Contributions.** You will be entitled to share in any Employer Contributions we make to the Plan only if you satisfy the following allocation conditions. Thus, even if you satisfy the eligibility conditions described above, you will not receive any Employer Contributions if you do not satisfy the following allocation conditions.

You must be employed on the last day of the Plan Year to receive an Employer Contribution for such Plan Year AND

You must work at least 1000 hours during the Plan Year.

If you are not employed on the last day of the Plan Year or if you do not work at least 1000 hours during the Plan Year, you will not be entitled to an Employer Contribution, even if you have satisfied all other conditions for receiving the Employer Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exceptions to allocation conditions.** The allocation conditions described above do not apply if

you die during the Plan Year

you terminate employment due to becoming disabled

you terminate employment after attaining Normal Retirement Age

**Special rules.** The following special rules apply for determining the allocation conditions applicable to Employer Contributions: The Employer discretionary Supplemental Contribution is not subject to any allocation conditions.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

![image_5.jpg](image_5.jpg)

The Plan provides for the contributions listed below. Article 4 discusses the requirements you must satisfy to receive the contributions described in this Article 5. Article 7 describes the vesting rules applicable to your plan benefits. Special rules also may apply if you leave employment to enter qualified military service. See your Plan Administrator if you have questions regarding the rules that apply if you are on military leave.

**Salary Deferrals**

If you have satisfied the conditions for participating under the Plan (as described in Article 4 above) you are eligible to make Salary Deferrals to the Plan. To begin making Salary Deferrals, you must complete a Salary Deferral election requesting that a portion of your compensation be contributed to the Plan instead of being paid to you as wages. However, see the discussion below regarding the application of the "automatic deferral" provisions under the Plan that may apply if you do not specifically elect to defer (or not defer) under the Plan. Any Salary Deferrals you make to the Plan will be invested in accordance with the Plan's investment policies.

**Pre-Tax Salary Deferrals.** If you make Salary Deferrals to the Plan, you will not have to pay income taxes on such amounts or on any earnings until you withdraw those amounts from the Plan.

Consider the following examples:

&nbsp;&nbsp;&nbsp;&nbsp;• If you earn $30,000 a year, are in the 12% tax bracket, are eligible to participate in the Plan and you elect to save 3% (or $900) of your salary under the 401(k) Plan this year, you would save $108 in Federal income taxes (12% of $900 = $108).

&nbsp;&nbsp;&nbsp;&nbsp;• If you earn $30,000 a year, are in the 12% tax bracket, are eligible to participate in the Plan, and you elect to save 5% (or $1,500) of your salary under the 401(k) Plan this year, you would save $180 in Federal income taxes (12% of $1,500 = $180).

&nbsp;&nbsp;&nbsp;&nbsp;• If you earn $42,000 a year, are in the 22% tax bracket, are eligible to participate in the Plan and you elect to save 5% (or $2,100) of your salary under the 401(k) Plan this year, you would save $462 in Federal income taxes (22% of $2,100 = $462).

As you can see, the more you are able to put away in the Plan and the higher your tax bracket, the greater your tax savings will be. In addition, if the amount of your Salary Deferrals grows due to investment earnings, you will not have to pay any Federal income taxes on those earnings until such time as you withdraw those amounts from the Plan.

**Roth Deferrals.** You also may be able to avoid taxation on earnings under the Plan by designating your Salary Deferrals as Roth Deferrals. Roth Deferrals are a form of Salary Deferral but, instead of being contributed on a pre-tax basis, you must pay income tax currently on such deferrals. However, provided you satisfy the distribution requirements applicable to Roth Deferrals (as discussed in Article 9 below), you will not have to pay any income taxes at the time you withdraw your Roth Deferrals from the Plan, including amounts attributable to earnings. Thus, if you take a qualified distribution (as described in Article 9) your entire distribution may be withdrawn tax-free. You should discuss the relative advantages of pre-tax Salary Deferrals and Roth Deferrals with a financial professional before deciding how much to designate as pre-tax Salary Deferrals and Roth Deferrals.

If you have made both pre-tax Salary Deferrals and Roth Deferrals under the Plan, you may designate the extent to which a distribution of Salary Deferrals is taken from your pre-tax Salary Deferral Account or your Roth Deferral Account. Any distribution of Salary Deferrals (including Roth Deferrals) must be authorized under the Plan distribution provisions.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Salary Deferral election.** You may not begin making Salary Deferrals under the Plan until you enter into a Salary Deferral election designating how much you wish to defer under the Plan. However, as described below,

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

Salary Deferrals may be automatically withheld from your paycheck if you do not specifically elect to defer (or not defer) under the Plan.

**Change of election.** You can increase or decrease the amount of your Salary Deferrals at least once a year. For this purpose, the designated election date(s) for changing or modifying your Salary Deferral election will be set forth under the Salary Deferral election or other written procedures describing the time period for changing Salary Deferral elections. If the available election date(s) change, you will be notified of any such change. Generally, you may revoke an existing Salary Deferral election and stop making Salary Deferrals at any time. Any change you make to a Salary Deferral election will become effective as soon as administratively feasible.

If you terminate employment, your election to defer (or not defer) will cease and you will need to make a new Salary Deferral election if you are rehired.

**Automatic deferral election.** To simplify the administrative requirements for making Salary Deferrals under the Plan, the Plan is set up with an "automatic" deferral feature. Under this feature, you do not have to make a Salary Deferral election to begin deferring under the Plan. Thus, if you have otherwise satisfied the eligibility requirements for Salary Deferrals described under Article 4 but have not made a Salary Deferral election, we will automatically withhold 6% of your Plan Compensation from each paycheck and deposit such amounts into the Plan as a Salary Deferral.

Any amounts that are automatically withheld from your paycheck will be invested in accordance with the Plan's investment policies and will be exempt from taxation just like any other pre-tax Salary Deferral. If you would like to modify your automatic deferral amount, you must make a Salary Deferral election indicating the amount you wish to defer. If you do not wish to defer under the Plan, you must make a Salary Deferral election indicating a zero-deferral rate.

**Application of automatic deferral provisions.** The automatic deferral provisions described above will apply only to Employees who become Participants on or after the effective date of the automatic deferral provisions or a Participant who was previously automatically enrolled as set forth under a prior Plan document maintained by the Employer, provided the Employee does not make a Salary Deferral election (including an election not to defer). Thus, if you become a Participant on or after the effective date of the automatic deferral provisions or if you were previously automatically enrolled under a prior plan document and do not make a Salary Deferral election or enter into an agreement specifically electing not to defer, the automatic deferral provisions will apply and Salary Deferrals will automatically be withheld from your paycheck as indicated above.

**Treatment of rehired Participant.** If you are rehired, you will be treated as a new Employee for automatic enrollment purposes.

**Limit on Salary Deferrals.** In addition to the IRS limits described in Article 6 below, the Plan limits the amount you may contribute as Salary Deferrals. Under this Plan limit, you may not defer an amount in excess of 50% of Plan Compensation for each payroll period during which you are eligible to participate under the Plan. In addition, if you elect to make Salary Deferrals under the Plan, your election must be for at least $1 or 1% of Plan Compensation for each payroll period.

**After-Tax Contributions**

If you have satisfied the conditions for participating under the Plan (as described in Article 4 above) you are eligible to make After-Tax Contributions to the Plan. To begin making After-Tax Contributions, you must elect to make contributions to the Plan on an after-tax basis. The After-Tax Contributions you make to the Plan are subject to current taxation but any earnings on such amounts are not taxed until you withdraw those amounts from the Plan. Your After-Tax Contributions will be invested in accordance with the Plan's investment policies. You may receive the forms necessary to make After-Tax Contributions from your Plan Administrator.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Limit on After-Tax Contributions.** In addition to the IRS limits described in Article 6 below, the Plan limits the amount you may contribute as After-Tax Contributions. Under this Plan limit, you may not contribute an amount in excess of 50% of Plan Compensation for each payroll period during which you are eligible to participate

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

under the Plan. In addition, if you elect to make After-Tax Contributions under the Plan, your election must be for at least $1 or 1% for each payroll period.

**Change of election.** You can increase or decrease the amount of your After-Tax Contributions at least once a year. For this purpose, the designated election date(s) for changing or modifying your After-Tax Contribution election will be set forth under the election form or other written procedures describing the time period for changing After-Tax Contribution elections. If the available election date(s) change, you will be notified in writing of any such change. Generally, you may revoke an existing election and stop making After-Tax Contributions at any time. Any change you make to an After-Tax Contribution election will become effective as soon as administratively reasonable.

**Special rules.** The following special rules apply with respect to After-Tax Contributions: Pre-tax, Roth, and After-tax contributions have a combined limit of 50% of compensation.

**Matching Contributions**

We are authorized under the Plan to make a Matching Contribution on behalf of eligible Plan participants. A Matching Contribution is an Employer Contribution that is made to participants who make Salary Deferrals or After-Tax Contributions to the Plan. If you satisfy all of the eligibility requirements described in Article 4 above for Matching Contributions and you make Salary Deferrals or After-Tax Contributions to the Plan, you will receive an allocation of any Matching Contributions we may make to the Plan, in accordance with the matching formula described below. For this purpose, any Matching Contribution will also apply with respect to any Roth Deferrals you make to the Plan. If you do not satisfy all of the eligibility requirements for receiving a Matching Contribution, you will not share in an allocation of such Matching Contributions for the period for which you do not satisfy the eligibility requirements. For purposes of determining the amount of Matching Contributions, the following contributions will not be eligible for regular Matching Contributions under the Plan:

Catch-up contributions (as described in Article 6 below)

Matching Contributions will be contributed to your Matching Contribution account under the Plan at such time as we deem appropriate. Matching Contributions may be contributed during the Plan Year or after the Plan Year ends. Any Matching Contributions we make will be made in accordance with the following Matching Contribution formula.

&nbsp;&nbsp;&nbsp;&nbsp;• **Fixed Matching Contribution formula.** We will make a fixed Matching Contribution on behalf of eligible participants who make Salary Deferrals or After-Tax Contributions to the Plan. The Matching Contribution will equal 100% of Salary Deferrals and After-Tax Contributions you make during each payroll period.

**Limit on Matching Contributions.** In addition to the overall limit on total contributions described in Article 6 below, the Plan imposes special limits on the amount a participant may receive as a Matching Contribution under the Plan for each payroll period.

&nbsp;&nbsp;&nbsp;&nbsp;• **Limit on Eligible Contributions.** In determining the amount of Matching Contributions you are entitled to under the Plan, only a certain amount of your contributions are taken into account. For this purpose, any contributions you make above 6% of Plan Compensation will not be eligible for a Matching Contribution. Thus, if you make contributions in excess of 6% of Plan Compensation, you will not receive a Matching Contribution with respect to those contributions.

**Employer Contributions**

We are authorized under the Plan to make Employer Contributions on behalf of our employees. In order to receive an Employer Contribution, you must satisfy all of the eligibility requirements described in Article 4 above for Employer Contributions. If you do not satisfy all of the conditions for receiving an Employer Contribution, you will not share in an allocation of such Employer Contributions for the period for which you do not satisfy the eligibility requirements.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Employer Contribution Formula.** Employer Contributions will be contributed to your Employer Contribution account under the Plan at such time as we deem appropriate. Generally, Employer Contributions may be

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

contributed during the Plan Year or after the Plan Year ends. Any Employer Contributions we make during the year will be made in accordance with the following formulas. You will be entitled to an Employer Contribution under each of the following formulas (to the extent you satisfy the eligibility requirements described in Article 4 above).

&nbsp;&nbsp;&nbsp;&nbsp;• **Fixed Employer Contribution formula.** We will make a contribution to the Plan on behalf of eligible participants equal to 4% of Plan Compensation. Such contribution will be placed in an account under the Plan on your behalf, provided you satisfy the eligibility conditions described in Article 4 above. We retain the right to amend the Plan to reduce or eliminate this contribution. If we amend the Plan to reduce or eliminate this fixed contribution, you will be notified of such change. (See Article 11 below for more information regarding Plan amendments.)

&nbsp;&nbsp;&nbsp;&nbsp;• **Special Employer Contribution formula.** We will make a contribution to the Plan under the following formula:

The Employer may make an additional discretionary Supplemental Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;• **Special employer allocation formula.** The following special rules apply in determining the amount of Employer Contributions to be provided under the Plan:

The discretionary Supplemental Employer Contributions, if any, will be allocated to each Participant as if Participant is his/her own allocation group.

**Top Heavy Benefits**

A plan that primarily benefits key employees is called a top heavy plan. For this purpose, key employees are defined as certain owners of an employer and officers with a specified level of compensation. A plan is generally a top heavy plan when more than 60% of all account balances under the plan are attributable to key employees. The Plan Administrator will determine each year whether the plan is a top heavy plan.

If the Plan becomes top heavy in any Plan Year, non-key employees who are eligible to receive a top heavy contribution under the Plan generally will receive a minimum contribution equal to the lesser of 3% of Plan Compensation or the highest percentage provided to any key employee (as defined in the Plan). This minimum contribution may be different if the Employer maintains another qualified plan. For this purpose, any Employer Contributions and Matching Contributions may be taken into account in determining whether the top heavy rules are satisfied. In applying the top heavy rules, any eligible non-key employee who is employed at the end of the year is entitled to the top heavy minimum, regardless how many hours the employee works during the year.

**Rollover Contributions**

If you have an account balance in another qualified retirement plan or an IRA, you may move those amounts into this Plan, without incurring any tax liability, by means of a "rollover" contribution. You may also rollover Roth contributions from another qualified plan to this Plan. Rollovers are not permitted from a Roth IRA. You are always 100% vested in any amounts you contribute to the Plan as a rollover from another qualified plan or IRA. This means that you will always be entitled to all amounts in your rollover account. Rollover contributions will be affected by any investment gains or losses under the Plan. See Article 9 below for a description of the distribution provisions applicable to rollover contributions.

Generally, the Plan will accept a rollover contribution from another qualified retirement plan or IRA. The Plan Administrator may adopt separate procedures limiting the type of rollover contributions it will accept. For example, the Plan Administrator may impose restrictions on the acceptance of after-tax contributions or Salary Deferrals (including Roth Deferrals) or may restrict rollovers from particular types of plans. In addition, the Plan Administrator may, in its discretion, accept rollover contributions from Employees who are not currently participants in the Plan. You also may make a rollover to the Plan if you are a former Employee and have an account under the Plan. Any procedures affecting the ability to make Rollover Contributions to the Plan will not be applied in a discriminatory manner.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

If you have questions about whether you can rollover a prior plan distribution, please contact the Plan Administrator or other designated Plan representative.

![image_6.jpg](image_6.jpg)

The IRS imposes limits on the amount of contributions you may receive under this Plan, as described below.

**IRS limits on Salary Deferrals.** The IRS imposes limits on the amount you can contribute as Salary Deferrals during a calendar year. For 2022, the maximum deferral limit is $20,500. For years after 2022, the maximum deferral limit may be adjusted for cost-of-living each year. The Plan Administrator will provide you with information regarding the adjusted deferral limits beginning after 2022. In addition, if you are at least age 50 by December 31 of the calendar year, you also may make a special catch-up contribution in addition to the maximum deferral limit described above. For 2022, the catch-up contribution limit is $6,500. For years after 2022, the catch-up contribution limit may be adjusted for cost-of living each year. The Plan Administrator will provide you with information concerning the catch-up contribution limit for years after 2022.

**Example:** If you are at least age 50 by December 31, 2022, the maximum Salary Deferral you may make for the 2022 calendar year would be $27,000 [i.e., $20,500 maximum deferral limit plus $6,500 catch-up contribution limit].

The IRS deferral limit applies to all Salary Deferrals you make in a given calendar year to this Plan or any other cash or deferred arrangement (including a cash or deferred arrangement maintained by an unrelated employer). For this purpose, cash or deferred arrangements include 401(k) plans, 403(b) plans, simplified employee pension (SEP) plans or SIMPLE plans. (Note: If you participate in both this Plan and a 457 eligible deferred compensation plan, special limits may apply under the 457 plan. You should contact the Plan Administrator of the 457 plan to find out how participation in this Plan may affect your limits under the 457 plan.)

If you make Salary Deferrals for a given year in excess of the deferral limit described above under this Plan or another plan maintained by the Employer (or any other employer maintaining this Plan), the Plan Administrator will automatically return the excess amount and associated earnings to you by April 15. If you make Salary Deferrals for a given year in excess of the deferral limit described above because you made Salary Deferrals under this Plan and a plan of an unrelated employer not maintaining this Plan, you must ask one of the plans to refund the excess amount to you. If you wish to take a refund from this Plan, you must notify the Plan Administrator, in writing, by March 1 of the next calendar year so the excess amount and related earnings may be refunded by April 15. The excess amount is taxable for the year in which you made the excess deferral. If you fail to request a refund, you will be subject to taxation in two separate years: once in the year of deferral and again in the year the excess amount is actually paid to you.

**IRS limit on total contributions under the Plan.** The IRS imposes a maximum limit on the total amount of contributions you may receive under this Plan. This limit applies to all contributions we make on your behalf, all contributions you contribute to the Plan, and any forfeitures allocated to any of your accounts during the year. Under this limit, the total of all contributions under the Plan cannot exceed a specific dollar amount or 100% of your annual compensation, whichever is less. For 2022, the dollar limit is $61,000. (For years after 2022, this amount may be increased for inflation.) For purposes of applying the 100% of compensation limit, your annual compensation includes all taxable compensation, increased for any Salary Deferrals you may make under a 401(k) plan and any pre-tax contributions you may make to any other plan we may maintain, such as a cafeteria health plan.

**Example:** Suppose in 2022 you earn compensation of $55,000 (after reduction for pre-tax 401(k) plan contributions of $5,000). Your compensation for purposes of the overall contribution limit is $60,000 ($55,000 + $5,000 of pre-tax deferrals). The maximum amount of contributions you may receive under the Plan for 2022 is $60,000 (the lesser of $61,000 or 100% of $60,000).

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

![image_7.jpg](image_7.jpg)

**Vested account balance.** When you take a distribution of your benefits under the Plan, you are only entitled to withdraw your *vested* account balance. For this purpose, your *vested* account balance is the amount held under the Plan on your behalf for which you have earned an ownership interest. You earn an ownership interest in your Plan benefits if you have earned enough service with us to become *vested* based on the Plan's vesting schedule. If you terminate employment before you become fully vested in any of your Plan benefits, those non-vested amounts may be forfeited. (See below for a discussion of the forfeiture rules that apply if you terminate with a non-vested benefit under the Plan.)

The following describes the vesting schedule applicable to contributions under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;• **Salary Deferrals and After-Tax Contributions.** You are always 100% vested in your Salary Deferrals and After-Tax Contributions. In other words, you have complete ownership rights to any Salary Deferrals or After-Tax Contributions under the Plan. Thus, you will never forfeit these contributions after they have been made to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;• **Matching Contributions.** You are always 100% vested in your Matching Contributions. In other words, you have complete ownership rights to your Matching Contributions under the Plan. Thus, you will never forfeit these contributions after they have been made to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;• **Employer Contributions.** You become *vested* in your Employer Contributions account under a "3-year cliff vesting schedule." Under this vesting schedule, you will have a complete ownership interest in your Employer Contributions once you have completed three (3) Years of Vesting Service. Prior to the completion of three Years of Vesting Service, you have no ownership interest in your Employer Contribution account.

&nbsp;&nbsp;&nbsp;&nbsp;• **Other contributions.** In addition, certain special contributions that are made to the Plan on your behalf will always be 100% vested. If any of these special contributions are made to the Plan, you will always have an immediate ownership interest in such contributions. Examples of special contributions that may be made to the Plan include:

Rollover Contributions

**Top heavy contributions.** If you are eligible to receive top heavy contributions (as described in Article 5 above), the vesting schedule with respect to such contributions will be the same as applies for Employer Contributions. If the Plan does not allow for Employer Contributions, for example because the Plan only provides for Salary Deferrals and/or Matching Contributions, the top heavy contributions will become vested under a 6-year graded schedule (i.e., 20% for each year of service over 2-years with 100% vesting after 6 years of service).

**Special vesting rules.** The following special rules apply for purposes of determining your vested percentage under the Plan: The Employer discretionary Supplemental Contribution is 100% immediately vested.

**Protection of vested benefit.** Once you are vested in your benefits under the Plan, you have an ownership right to those amounts. While you may not be able to immediately withdraw your vested benefits from the Plan due to the distribution restrictions described under Article 9 below, you generally will never lose your right to those vested amounts. However, it is possible that your benefits under the Plan will decrease as a result of investment losses. If your benefits decrease because of investment losses, you will only be entitled to the vested amount in your account at the time of distribution.

**Exception to vesting schedule.** The above vesting schedule no longer applies once you reach Normal Retirement Age under the Plan. Thus, if you are still employed with us at Normal Retirement Age, you will automatically become 100% vested in all contributions under the Plan. You also will be fully vested in your

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

entire account balance (regardless of the Plan's vesting schedule) if the plan is terminated. In addition, you will also automatically become 100% vested if, during your employment, you:

die

become Disabled

**Years of Vesting Service.** To calculate your vested benefit under the Plan, your Years of Vesting Service are used to determine where you are on the vesting schedule. The Plan contains different rules for determining Years of Vesting Service for Employer Contributions. The Plan Administrator will track your service and will calculate your years of service in accordance with the Plan requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Matching Contributions.** Years of Service do not apply for purposes of determining Matching Contributions under the Plan since such contributions are always 100% vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Employer Contributions.** You will be credited with a Year of Vesting Service for each full year of service you work for us. You also may be entitled to service earned during a period of severance if you are subsequently reemployed. If you have questions regarding your position on the vesting schedule, please contact the Plan Administrator.

In calculating your Years of Vesting Service, all of your service with us is taken into account, including service you may have earned before the Plan was adopted.

**Forfeiture of nonvested benefits.** If you terminate employment before you become fully vested in your Plan benefits, you will be entitled to receive a distribution of your *vested* benefits under the Plan. Your non-vested benefits will be *forfeited* as described below. You are not entitled to receive a distribution of your non-vested benefits.

If you terminate employment at a time when you are only partially-vested (or totally non-vested) in any of your Plan benefits, how the Plan treats your non-vested balance will depend on whether you take a distribution when you terminate employment.

**Forfeiture upon distribution.** If you take a distribution of your entire vested benefit when you terminate employment, your non-vested benefit will be forfeited in accordance with the terms of the Plan. If you are totally non-vested in any contributions we made on your behalf, you will be deemed to receive a distribution for purposes of applying these forfeiture rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Buy-back of forfeited benefits upon reemployment.** If you take a distribution of your entire vested benefit when you terminate employment, and as a result, some (or all) of your Plan benefits are forfeited, you have the right to repay the distributed amount to the Plan if you are rehired prior to incurring five consecutive Breaks in Service (as defined under "Forfeiture upon five consecutive Breaks in Service" below). If you repay the total amount of your distribution back to the Plan, we will restore the amount of your non-vested benefit which was forfeited as a result of that distribution. Please contact the Plan Administrator if you wish to buy-back prior benefits under the Plan. The Plan Administrator will inform you of the amount you must repay to buy-back your prior forfeited benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Timing of buy-back.** For us to restore your forfeited benefits, you must make repayment to the Plan no later than five years following your reemployment date. If you received a "deemed" distribution because you were totally non-vested, your non-vested benefit will automatically be restored within a reasonable time following your reemployment, provided you have not incurred five consecutive Breaks in Service prior to your reemployment.

**Forfeiture upon five consecutive Breaks in Service.** Depending on the value of your vested benefits, you may be able to keep your benefits in the Plan when you terminate employment. If you do not take a distribution of your entire vested benefit when you terminate employment, your non-vested benefit will remain in your account until you have incurred five consecutive Breaks in Service, at which time your non-vested benefit will be forfeited in accordance with the terms of the Plan. Your vested

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

benefits will not be forfeited under this forfeiture rule. If you have any questions regarding the application of these rules, you should contact the Plan Administrator.

**Treatment of forfeited benefits.** If any of your benefits are forfeited, we may decide in our discretion how to use those forfeited amounts. For example, we may use such forfeitures to pay Plan expenses. If any forfeitures are not used to pay Plan expenses, such forfeitures may be allocated as additional Employer contributions or we may use the forfeitures to reduce other Employer Contributions under the Plan. We will determine each year the amount of any forfeitures for such year and will use those forfeitures in the Plan Year for which the forfeiture occurs or in the following Plan Year.

![image_8.jpg](image_8.jpg)

The Plan permits Participants to take a loan from the Plan. Thus, you may take a loan from your vested benefits under the Plan. The Plan Administrator will develop procedures for administering Participant loans, including the establishment of procedures for applying for a loan and limits on the total amount of loan proceeds that may be outstanding at any time. For more information regarding the procedures for receiving a Participant loan, please contact the Plan Administrator.

![image_9.jpg](image_9.jpg)

The Plan contains detailed rules regarding when you can receive a distribution of your benefits from the Plan. As discussed in Article 7 above, if you qualify for a Plan distribution, you will only receive your vested benefits. This Article 9 describes when you may request a distribution and the tax effects of such a distribution.

**Distribution upon termination of employment.** When you terminate employment, you may be entitled to a distribution from the Plan. The availability of a distribution will depend on the amount of your vested account balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Vested account balance in excess of $5,000.** If your total vested account balance exceeds $5,000 as of the distribution date, you may receive a distribution from the Plan within a reasonable period after your termination of employment. If you do not consent to a distribution of your vested account balance, your balance will remain in the Plan. If you receive a distribution of your vested benefits when you are only partially-vested in your Plan benefits, your non-vested benefits will be forfeited.

You may elect to take your distribution in any of the following forms. In addition, in certain rare cases, you may be entitled to a distribution in the form of a joint and survivor annuity. Prior to receiving a distribution from the Plan, you will receive a distribution package that will describe the distribution options that are available to you. If you have any questions regarding your distribution options under the Plan, please contact the Plan Administrator.

**Lump sum.** You may elect to take a distribution of your entire vested account balance in a lump sum. If you take a lump sum distribution, you may elect to rollover all (or any portion) of your distribution to an IRA or to another qualified plan. See the *Special Tax Notice*, which you may obtain from the Plan Administrator, for more information regarding your ability to rollover your plan distribution.

**Partial lump sums.** You also may elect to take a partial lump sum of less than your entire vested benefit.

**Installment payments.** You may elect to receive a distribution in the form of a series of installment payments. If you elect distribution in the form of installments, your vested benefit will be paid out in equal installments over a set number of years at a frequency to be determined at the time payments begin. If the installment period is 10 years or greater, you may not rollover

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

any of the installment payments into an IRA or into another qualified plan. The Plan Administrator will provide you with forms necessary to elect an installment distribution under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Vested account balance of $5,000 or less.** If your total vested account balance under the Plan is

$5,000 or less as of the distribution date, you will be eligible to receive a distribution of your entire vested account balance as soon as administratively feasible following your termination of employment. If you receive a distribution of your vested benefits when you are partially-vested in your Plan benefits, your non-vested benefits will be forfeited.

You may elect to receive your distribution in cash or you may elect to rollover your distribution to an IRA or to another qualified plan. If your total vested account balance under the Plan is between $1,000 and $5,000 as of the distribution date and you do not consent to a distribution of your vested account balance, your vested benefit automatically will be rolled over to an IRA selected by the Plan Administrator. If your total vested account balance exceeds $5,000, no distribution will be made from the Plan without your consent. If your total vested account balance is $1,000 or less as of the distribution date, your entire vested benefit will be distributed to you in a lump sum, even if you do not consent to a distribution.

If your benefit is automatically rolled over to an IRA selected by the Plan Administrator, such amounts will be invested in a manner designed to preserve principal and provide a reasonable rate of return. Common types of investment vehicles that may be used include money market accounts, certificates of deposit or stable value funds. Reasonable expenses may be charged against the IRA account for expenses associated with the establishment and maintenance of the IRA. Any such expenses will be no greater than similar fees charged for other IRAs maintained by the IRA provider. For further information regarding the automatic rollover requirements, including further information regarding the IRA provider and the applicable fees and expenses associated with the automatic rollover IRA, please contact the Plan Administrator or other designated Plan representative.

**In-service distributions.** You may withdraw vested amounts from the Plan while you are still employed with us, but only if you satisfy the Plan's requirements for in-service distributions. Different in-service distribution options apply depending on the type of contribution being withdrawn from the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Salary Deferrals.** You may withdraw amounts attributable to Salary Deferrals while you are still employed upon any of the following events:

You are at least age 59½ at the time of the distribution.

You have incurred a hardship, as described below.

You are in certain qualified active military duty. Please contact your Plan Administrator if you have any questions regarding the availability of a distribution under this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **After-Tax Contributions.** You may take an in-service distribution of your After-Tax Contribution account at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Matching Contributions.** You may withdraw amounts attributable to Matching Contributions while you are still employed upon any of the following events:

You are at least age 59½ at the time of the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Employer Contributions.** You may withdraw amounts attributable to Employer Contributions while you are still employed upon any of the following events:

You are at least age 59½ at the time of the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Rollover Contributions.** If you have rolled money into this Plan from another qualified plan or IRA, you may take an in-service distribution of your Rollover Contribution account at any time.

**Hardship distribution.** To receive a distribution on account of hardship, you must demonstrate one of the following hardship events.

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

You need the distribution to pay unpaid medical expenses for yourself, your spouse or any dependent.

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)You need the distribution to pay for the purchase of your principal residence. You must use the hardship distribution for the *purchase* of your principal residence. You may not receive a hardship distribution solely to make mortgage payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)You need the distribution to pay tuition and related educational fees (including room and board) for the post-secondary education of yourself, your spouse, your children, or other dependent. You may take a hardship distribution to cover up to 12 months of tuition and related fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)You need the distribution to prevent your eviction or to prevent foreclosure on your mortgage. The eviction or foreclosure must be related to your principal residence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)You need the distribution to pay funeral or burial expenses for your deceased parent, spouse, child or dependent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)You need the distribution to pay expenses to repair damage to your principal residence (provided the expenses would qualify for a casualty loss deduction on your tax return, without regard to 10% adjusted gross income limit).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)You need the distribution to pay expenses and losses (including loss of income) incurred due to a federally-declared disaster. Your principal residence or principal place of employment at the time of the disaster must be located in a federally-declared disaster area designated for individual assistance.

Before you may receive a hardship distribution, you must represent, in writing, that you have insufficient cash or other liquid assets to satisfy your financial need.

In addition, if you have other distributions available under this Plan (or any other plan we may maintain) you must take such distributions *before* requesting a hardship distribution.

You may not receive a hardship distribution of more than you need to satisfy your hardship. In calculating your maximum hardship distribution, you may include any amounts necessary to pay federal, state or local income taxes or penalties reasonably anticipated to result from the distribution. See the Plan Administrator for more information regarding the maximum amount you may take from the Plan as a hardship distribution and the total amount you have available for a hardship distribution. The Plan Administrator will provide you with the appropriate forms for requesting a hardship distribution.

**Limits on in-service distributions.** In addition to the requirements described above for receiving an in-service distribution, the Plan contains additional limits which may limit your ability to take an in-service withdrawal. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The following special rules apply: There is a minimum of $1,000 on in-service distributions from a Participant's After-Tax account or Rollover account. There is a minimum of $1,000 on in-service distributions for hardship reasons. The Plan Administrator may impose additional limitations on in-service distributions as authorized under the Plan.

See Article 8 above for a discussion of the Plan's rules regarding the availability of a loan from the Plan.

**Required distributions.** If you have not begun taking distributions before you attain your Required Beginning Date, the Plan generally must commence distributions to you as of such date. For this purpose, your Required Beginning Date is April 1 following the end of the calendar year in which you attain age 70½ (or age 72, if you were born after June 30, 1949), or terminate employment, whichever is later. (For 5% owners, the Required Beginning Date is April 1 following the calendar year in which you attain age 70½ (or age 72, if you were born after June 30, 1949), even if you are still employed.)

Once you attain your Required Beginning Date, the Plan Administrator will commence distributions to you as required under the Plan. The Plan Administrator will inform you of the amount you are required to receive once you attain your Required Beginning Date.

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Distribution upon disability.** If you should terminate employment because you are Disabled, you will be eligible to receive a distribution of your vested account balance under the Plan's normal distribution rules.

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Distributions upon death.** If you should die before taking a distribution of your entire vested account balance, your remaining benefit will be distributed to your beneficiary or beneficiaries, as designated on the appropriate designated beneficiary election form. You may request a designated beneficiary election form from the Plan Administrator.

If you are married, your spouse generally is treated as your beneficiary, unless you and your spouse properly designate an alternative beneficiary to receive your benefits under the Plan. The Plan Administrator will provide you with information concerning the availability of death benefits under the Plan and your rights (and your spouse's rights) to designate an alternative beneficiary for such death benefits. For purposes of determining your beneficiary to receive death distributions under the Plan, any designation of your spouse as beneficiary is automatically revoked upon a formal divorce decree unless you re-execute a new beneficiary designation form or enter into a valid Qualified Domestic Relations Order (QDRO).

**Default beneficiaries.** If you do not designate a beneficiary to receive your benefits upon death, your benefits will be distributed to your surviving spouse and, if no spouse exists at the time of your death, then to your estate.

**Taxation of distributions.** Generally, you must include any Plan distribution in your taxable income in the year you receive the distribution. More detailed information on tax treatment of Plan distributions is contained in the "Special Tax Notice" which you may obtain from the Plan Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;• **Roth Deferrals.** If you make Roth Deferrals under the Plan, you will not be taxed on the amount of the Roth Deferrals taken as a distribution (because you pay taxes on such amounts when you contribute them to the Plan). In addition, you will not pay taxes on any earnings associated with the Roth Deferrals, provided you take the Roth Deferrals and earnings in a qualified distribution. For this purpose, a qualified distribution occurs only if you have had your Roth Deferral account in place for at least 5 years and you take the distribution on account of death, disability, or attainment of age 59½. If you have made both pre-tax Salary Deferrals and Roth Deferrals under the Plan, you may designate the extent to which a distribution of Salary Deferrals is taken from your pre-tax Salary Deferral Account or your Roth Deferral Account. Any distribution of Salary Deferrals (including Roth Deferrals) must be authorized under the Plan distribution provisions.

If you take a distribution that does not qualify as a qualified distribution, you will be taxed on the earnings associated with the Roth contributions. (You will never be taxed on the Roth contributions distributed since those amounts are taxed at the time you make the Roth contributions or Roth conversion.)

&nbsp;&nbsp;&nbsp;&nbsp;• **After-Tax Contributions.** If you have made After-Tax Contributions to the Plan, you will not be taxed on those contributions when they are distributed from the Plan. You will, however, be taxed on income attributable to such contributions.

**Non-assignment of benefits and Qualified Domestic Relations Orders (QDROs)** Your benefits cannot be sold, used as collateral for a loan, given away, or otherwise transferred, garnished, or attached by creditors, except as provided by law. However, if required by applicable state domestic relations law, certain court orders could require that part of your benefit be paid to someone else—your spouse or children, for example. This type of court order is known as a Qualified Domestic Relations Order (QDRO). As soon as you become aware of any court proceedings that might affect your Plan benefits, please contact the Plan Administrator. You may request a copy of the procedures concerning QDROs, including those procedures governing the qualification of a domestic relations order, without charge, from the Plan Administrator.

![image_10.jpg](image_10.jpg)

**Investment of Plan assets.** You have the right to direct the investment of Plan assets held under the Plan on your behalf. The Plan Administrator will provide you with information on the amounts available for direction, the

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

investment choices available to you, the frequency with which you can change your investment choices and other investment information. Periodically, you will receive a benefit statement that provides information

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

on your account balance and your investment returns. If you have any questions about the investment of your Plan accounts, please contact the Plan Administrator or other Plan representative.

This Plan is intended to comply with the requirements of ERISA §404(c). As such, to the extent you are permitted to direct the investment of your account, you are solely responsible for the investment decisions you make with respect to your Plan benefits. No other fiduciary, including the Trustee, Employer or Plan Administrator, will be responsible for any losses resulting from your direction of investments under the Plan. If you have questions regarding investment decisions or strategies with respect to the investment of your Plan benefits, you should consult an investment professional.

**Valuation Date.** To determine your share of any gains or losses incurred as a result of the investment of Plan assets, the Plan is valued on a regular basis. For this purpose, the Plan is valued on a daily basis. Thus, you will receive an allocation of gains or losses under the Plan at the end of each business day during which the New York Stock Exchange is open.

**Plan fees.** There may be fees or expenses related to the administration of the Plan or associated with the investment of Plan assets that will affect the amount of your Plan benefits. Any fees related to the administration of the Plan or associated with the investment of Plan assets may be paid by the Plan or by the Employer. If the Employer does not pay Plan-related expenses, such fees or expenses will generally be allocated to the accounts of Participants either proportionally based on the value of account balances or as an equal dollar amount based on the number of participants in the Plan. If you direct the investment of your benefits under the Plan, you will be responsible for any investment-related fees incurred as a result of your investment decisions. Prior to making any investment, you should obtain and read all available information concerning that particular investment, including financial statements, prospectuses, and other available information.

In addition to general administration and investment fees that are charged to the Plan, you may be assessed fees directly associated with the administration of your account. For example, if you terminate employment, your account may be charged directly for the pro rata share of the Plan's administration expenses, regardless of whether the Employer pays some of these expenses for current Employees. Other fees that may be charged directly against your account include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fees related to the processing of distributions upon termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fees related to the processing of in-service distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fees related to the processing of required minimum distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Participant loan origination fees and annual maintenance fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Charges related to processing of a Qualified Domestic Relation Order (QDRO) where a court requires that a portion of your benefits is payable to your ex-spouse or children as a result of a divorce decree.

If you are permitted to direct the investment of your benefits under the Plan, each year you will receive a separate notice describing the fees that may be charged under the Plan. In addition, you will also receive a separate notice describing any actual fees charged against your account. Please contact the Plan Administrator if you have any questions regarding the fees that may be charged against your account under the Plan.

![image_11.jpg](image_11.jpg)

**Plan amendments.** We have the authority to amend this Plan at any time. Any amendment, including the restatement of an existing Plan, may not decrease your vested benefit under the Plan, except to the extent permitted under the Internal Revenue Code, and may not reduce or eliminate any "protected benefits" (except as provided under the Internal Revenue Code or any regulation issued thereunder) determined immediately prior to

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

the adoption or effective date of the amendment (whichever is later). However, we may amend the Plan to increase, decrease or eliminate benefits on a prospective basis.

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

**Plan termination.** Although we expect to maintain this Plan indefinitely, we have the ability to terminate the Plan at any time. For this purpose, termination includes a complete discontinuance of contributions under the Plan or a partial termination. If the Plan is terminated, all amounts credited to your account shall become 100% vested, regardless of the Plan's current vesting schedule. In the event of the termination of the Plan, you are entitled to a distribution of your entire vested benefit. Such distribution shall be made directly to you or, at your direction, may be transferred directly to another qualified retirement plan or IRA. If you do not consent to a distribution of your benefit upon termination of the Plan, the Plan Administrator will transfer your vested benefit directly to an IRA that we will establish for your benefit. Except as permitted by Internal Revenue Service regulations, the termination of the Plan shall not result in any reduction of protected benefits.

A partial termination may occur if either a Plan amendment or severance from service excludes a group of employees who were previously covered by this Plan. Whether a partial termination has occurred will depend on the facts and circumstances of each case. If a partial termination occurs, only those Participants who cease participation due to the partial termination will become 100% vested. The Plan Administrator will advise you if a partial termination occurs and how such partial termination affects you as a Participant.

![image_12.jpg](image_12.jpg)

**Participant rights.** As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall be entitled to:

Examine, without charge, at the Plan Administrator's office, all documents governing the Plan, including insurance contracts and collective bargaining agreements (if applicable), and a copy of the latest annual report (Form 5500 series) filed by the Plan Administrator with the U.S. Department of Labor.

Obtain copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements (if applicable), and copies of the latest annual report (Form 5500 series) and updated SPD, upon written request to the Plan Administrator. The Plan Administrator may assess a reasonable charge for the copies.

Receive a summary of the Plan's annual financial report. The Plan Administrator is required by law to provide each participant with a copy of this summary annual report.

Obtain a statement telling you whether you have a right to receive benefits under the Plan and, if so, what your current benefits are. You must request this statement in writing and you may only request this statement once a year. The Plan Administrator will provide the statement free of charge.

File a claim for benefits.

**Prudent Actions by Plan Fiduciaries**. In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. These people, called "fiduciaries," have a duty to operate the Plan prudently and in the best interests of you, other Plan participants and beneficiaries. You may not be fired or otherwise discriminated against in any way solely to prevent you from obtaining a Plan benefit or exercising your rights under ERISA.

**Enforcement of Rights**. If you have a claim for benefits under the Plan that is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For example, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive the requested documents within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the documents and pay you up to $110 a day until you receive the documents, unless the documents were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

in a state or Federal court. In addition, if you disagree with the Plan's decision or lack thereof concerning the qualified status of a domestic relations order that affects the payment of benefits

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Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

under the Plan, you may file suit in federal court. If the Plan's fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

**Assistance with Questions.** If you have any questions about the Plan or this SPD, you should contact the Plan Administrator. If you have any questions about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

**Claim for Benefits.** Benefits will normally be payable under the Plan without the need for a formal claim. However, if you feel you are entitled to benefits under the Plan that have not been paid, you may submit to the Plan Administrator a written claim for benefits. Your request for Plan benefits will be considered a claim for Plan benefits, and it will be subject to a full and fair review. The Plan Administrator will evaluate your claim (including all relevant documents and records you submit to support your claim) to determine if benefits are payable to you under the terms of the Plan. The Plan Administrator may solicit additional information from you, if necessary, to evaluate the claim.

If the Plan Administrator determines the claim is valid, then you will receive a statement describing the amount of benefit, the method or methods of payment, the timing of distributions and other information relevant to the payment of the benefit.

If the Plan Administrator denies all or any portion of your claim, you (and your authorized representative, if applicable) will receive within a reasonable period of time (not to exceed 90 days after receipt of the claim form), a written or electronic notice setting forth the reasons for the denial (including references to the specific provisions of the Plan on which the decision is based), a description of any additional information needed to perfect your claim, and the steps you must take to submit the claim for review. If the Plan Administrator determines that special circumstances require an extension of time for processing your claim, it may extend the 90-day period described in the prior sentence to 180 days, provided the Plan Administrator provides you with written notice of the extension and prior to the expiration of the original 90-day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render its decision.

If the Plan Administrator denies your claim, you will have 60 days from the date you receive notice of the denial of your claim to appeal the adverse decision of the Plan Administrator. You may submit to the Plan Administrator written comments, documents, records and other information relating to your claim for benefits. You will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim. The Plan Administrator's review of the claim and of its denial of the claim shall take into account all comments, documents, records and other information relating to the claim, without regard to whether these materials were submitted or considered by the Plan Administrator in its initial decision on the claim.

If the Plan Administrator denies your claim for benefits after appeal, you will receive within a reasonable period of time (not to exceed 60 days after receipt of the appeal), a written or electronic notice setting forth the reasons for the denial (including references to the specific provisions of the Plan on which the decision is based), and a description of your right to bring an action under ERISA Section 502(a). If the Plan Administrator determines that special circumstances require an extension of time for processing your appeal, it may extend the 60-day period described in the prior sentence to 120 days, provided the Plan Administrator provides you with written notice of the extension and prior to the expiration of the original 60-day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

render its decision. If the Plan Administrator denies your claim for benefits upon review, in whole or in part, you may file suit in a state or Federal court.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

If the Plan Administrator makes a final written determination denying your claim for benefits, you may commence legal or equitable action with respect to the denied claim upon completion of the claims procedures outlined under the Plan. Any legal or equitable action must be commenced no later than the earlier of 180 days following the date of the final determination or three years following the proof of loss. If you fail to commence legal or equitable action with respect to a denied claim within the above timeframe, you will be deemed to have accepted the Plan Administrator's final decision with respect to the claim for benefits.

**Disability Claims Procedures.** If your claim is based on disability benefits, different claim procedures and deadlines will apply. If your disability benefits are provided or administered by a third party (such as Social Security Administration or an insurance company), that will be the entity to which claims are addressed.

The following disability claims procedures apply <u>only</u> to the determination under the Plan as to whether a Participant is entitled to a Plan benefit due to disability. These disability claims procedures do not apply if a third party (such as the Social Security Administration), rather than the Plan Administrator, makes the determination of disability. These disability claims procedures are intended to comply with the requirements of Department of Labor Regulation §2560.503-1 and will be interpreted accordingly.

These disability claims procedures are intended to ensure that disability claims procedures are reasonable, that "claimants" (which include Participants and Beneficiaries (and their authorized representatives, if applicable)) receive sufficient information explaining why disability benefits are denied and that the process is impartial.

If you have questions about the Plan's claims procedures, contact the Plan Administrator named under Article 2 of this SPD.

**Review of Initial Claim.** In the case of a claim for disability benefits, the Plan Administrator will notify the claimant of an adverse benefit determination within a reasonable period of time, but not later than 45 days after receipt of the claim by the Plan. This period may be extended by the Plan for up to 30 days, provided that the Plan Administrator both determines that such an extension is necessary due to matters beyond the control of the Plan and notifies the claimant, prior to the expiration of the initial 45-day period, of the circumstances requiring the extension of time and the date by which the Plan expects to render a decision.

If, prior to the end of the first 30-day extension period, the Plan Administrator determines that, due to matters beyond the control of the Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended for up to an additional 30 days, provided that the Plan Administrator notifies the claimant, prior to the expiration of the first 30-day extension period, of the circumstances requiring the extension and the date as of which the Plan expects to render a decision. In the case of any extension, the notice of extension shall specifically explain the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues. The claimant shall have at least 45 days within which to provide the specified information.

**Notice of Adverse Benefit Determination.** The Plan Administrator will provide a claimant with written or electronic notification (written in a culturally and linguistically appropriate and understandable manner) of any "adverse benefit determination." An adverse benefit determination includes a rescission of coverage (except for non-payment of premiums). The notice of adverse benefit determination will set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The specific reason or reasons for the adverse determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reference to the specific Plan provisions on which the determination is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary;

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

A description of the Plan's review procedures and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under ERISA §502(a) following an adverse benefit determination on review; and

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A discussion of the decision, including an explanation of the basis for disagreeing with or not following:

The views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and

A disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant's medical circumstances, or a statement that such explanation will be provided free of charge upon request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits.

The Plan Administrator will assist in language translation of a notice of adverse benefit determination, if necessary. Translation assistance can include recommending translation services, providing verbal assistance and providing the notice in a non-English language upon request.

**Appeals of Adverse Benefit Determinations.** A claimant shall have 180 days following receipt of a notification of an adverse benefit determination within which to appeal the determination. Any appeal will receive a full and fair review of the claim and the adverse benefit determination. With respect to such review:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Claimants will have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Claimants (upon request and free of charge) will have reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The review will take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As soon as possible and sufficiently in advance of the date on which any notice of an "adverse benefit determination on review," the Plan Administrator will provide the claimant, free of charge, with any new or additional evidence considered, relied upon, or generated by the person making the benefit determination in connection with the claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As soon as possible and sufficiently in advance of the "notice of adverse benefit determination on review," the Plan Administrator will provide the claimant, free of charge, with the rationale for the adverse decision.

In performing the review, the Plan will not afford deference to the initial adverse benefit determination and the review will be conducted by an appropriate named fiduciary of the Plan who is neither the individual who made the initial adverse benefit determination, nor the subordinate of such individual. If the appeal is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, the appropriate named fiduciary shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. Such health care professional will not be an individual (or a subordinate of such individual) who was consulted in connection with the initial adverse benefit determination.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

If the Plan obtained advice from medical or vocational experts in connection with a claimant's adverse benefit determination (without regard to whether the advice was relied upon in making the benefit determination), such experts will be identified.

The Plan Administrator shall notify the claimant of the Plan's benefit determination on review within a reasonable period of time, but not later than 45 days after receipt of the claimant's request for review by the Plan, unless the Plan Administrator determines that special circumstances (such as the need to hold a hearing) require an extension of time for processing the claim. If the Plan Administrator determines that an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 45-day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review.

**Notice of Adverse Benefit Determination on Review.** The Plan Administrator will provide a claimant with written or electronic notification (written in a culturally and linguistically appropriate and understandable manner) of any "adverse benefit determination." The notice of adverse benefit determination on review will set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The specific reason or reasons for the adverse determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reference to the specific Plan provisions on which the determination is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• That the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of any voluntary appeal procedures offered by the Plan and the claimant's right to obtain the information about such procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of the claimant's right to bring an action under ERISA §502(a) (including a description of any applicable contractual limitation period that applies to the claimant's right to bring such an action);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A discussion of the decision, including an explanation of the basis for disagreeing with or not following:

The views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant;

The views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant's adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and

A disability determination regarding the claimant presented by the claimant to the Plan made by the Social Security Administration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant's medical circumstances, or, alternatively, a statement that such explanation will be provided free of charge upon request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist.

The Plan Administrator will assist in language translation of a notice of adverse benefit determination on review, if necessary. Translation assistance can include recommending translation services, providing verbal assistance and providing the notice in a non-English language upon request.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

![image_13.jpg](image_13.jpg)

**Vanguard Administrative Services Information**

**Connect with Vanguard®:**

&nbsp;&nbsp;&nbsp;&nbsp;• Online. Log on to Vanguard.com for 24-hour access to information about your account, your Plan's funds, and Vanguard's financial planning and advice services.

&nbsp;&nbsp;&nbsp;&nbsp;• By phone. Get 24-hour access to your account and information about your funds through the automated VOICE® Network at 800-523-1188.

&nbsp;&nbsp;&nbsp;&nbsp;• **With personal assistance.** Vanguard Participant Services associates are available to assist you with transactions and answer your questions at **800-523-1188**, Monday through Friday from 8:30 a.m. to 9 p.m., EST.

**Self Direction of Investments.** All contributions to the Plan on your behalf will be credited to one or more separate accounts established in your name. Plan contributions are held in trust by the Trustee for the exclusive benefit of participating employees and their beneficiaries.

**Information About the Investment Options Available in the Plan.** When you are eligible to participate in the Plan, you will be provided with comprehensive information about the investment options available in the Plan, including an explanation of the investment objectives and policies, risk and return characteristics, past and current investment performance (net of expenses), operating expenses, and the type and diversification of assets that make up the portfolio of each fund. You will also receive ongoing updates of this information in the form of prospectuses and shareholder reports for each of the investment options that you have selected for the investment of your Plan contributions. If you have any questions or require more detailed information concerning any investment option, you can contact Vanguard. (See the section entitled "Connect with Vanguard®" for additional information).

**How to Change Investment Directions.** The general rule is that you may change your investment directions among the investment options available in your Plan with respect to your future Plan contributions or existing individual account balances at any time as long as you act in accordance with the investment fund's prospectus or investment guidelines. The Employer will establish uniform and nondiscriminatory policies describing how and when you may provide investment directions.

You are permitted to redeem shares from one fund to purchase shares of another fund under the Plan. Although every effort is made to maintain this exchange privilege, investment companies reserve the right to revise or terminate this privilege, limit the amount of an exchange, or reject any exchange, at any time, without notice. Because excessive exchanges can potentially disrupt the management of a fund and increase its transaction costs, certain limitations are placed on participant exchange activity. Note also, that certain investment options, particularly funds made up of company stock or investment contracts, may be subject to unique restrictions. Please see the prospectuses or investment guidelines for the funds you have selected for more details.

The transfer of existing balances will generally be made the same day if your transaction is received in complete and good order before the close of the New York Stock Exchange (generally 4 p.m., EST), or the earliest cut-off time of the funds involved. Vanguard will send a confirmation of your change to the address on file for you with Vanguard.

If you wish to make a change in investment directions, you can contact Vanguard. (See the section entitled "Connect with Vanguard®" for additional information).

**Responsibility for Investment Losses.** The Plan is intended to comply with Section 404(c) of ERISA (the Employee Retirement Income Security Act of 1974). If the Plan complies with Section 404(c), then the fiduciaries of the Plan, including the Employer, the Administrator and the Trustee, will be relieved of any legal liability for any losses which are the direct and necessary result of the investment directions that you give.

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![image_2.jpg](image_2.jpg)

Summary Plan Description Federal Home Loan Bank of Pittsburgh Defined Contribution Plan

Because your Plan allows and encourages you to direct your investments and to have access to all pertinent information concerning your investments, the fiduciaries of the Plan will be relieved of liability for the results of your investment decisions, as provided under Section 404(c) of ERISA.

When you direct investments, your accounts are segregated for purposes of determining the gains, earnings, or losses on these investments. Your account does not share in the investment performance for other participants who have directed their own investments.

You should remember that the amount of your benefits under the Plan will depend in part upon your choice of investments. Gains as well as losses can occur. There are no guarantees of performance, and neither the Employer, the Administrator, the Trustee, nor any of their representatives provide investment advice or insure or otherwise guarantee the value or performance of any investment you choose. You will be responsible for any expenses and losses resulting from your choice of investments.

**Keeping Track of Your Individual Accounts in the Plan.** You will be provided with quarterly statements showing the total amounts credited to your individual accounts under the Plan as of the end of each calendar quarter. These statements will reflect all Plan activities including contributions, earnings, investment exchanges, and distributions occurring within your individual accounts during the most recent calendar quarter.

**Rules Regarding Voting Rights in the Plan.** In the event of a mutual fund proxy, shares of mutual funds held in your individual accounts under the Plan will be voted by the Trustee on your behalf as directed by a fiduciary who has been identified to the Trustee (generally, the Employer). In making voting decisions on the fund shares, the identified fiduciary will direct the Trustee to vote the mutual fund shares in the long-term, economic best interests of Plan participants.

In the event of a proxy for any assets held by an Investment Manager, assets held in your individual accounts under the Plan will be voted by the Trustee on your behalf as directed by the Investment Manager. In making voting decisions on the fund shares, the Investment Manager will direct the Trustee to vote the assets in the long-term, economic best interests of Plan participants.

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## Exhibit 10.19

![](fhlbpitex1019-agreement_001.jpg)

AGREEMENT AND GENERAL RELEASE This Agreement and General Release ("Agreement") is entered into by and between the Federal Home Loan Bank of Pittsburgh ("Bank") and Peggy Delinois Hamilton ("Employee") (collectively referred to as the "Parties"), as of the last date set forth below (the "Execution Date"). WHEREAS, the Bank provided Employee with notice of termination ("Notice") on September 4, 2025; WHEREAS, the Notice provides for termination of the Employee's employment effective December 31, 2025; WHEREAS, Employee shall serve in the role of Executive Senior Advisor, reporting to the Chief Financial Officer, and devoting at least 25 percent of her working time in this role; WHEREAS, provided that the Employee's employment is not terminated by either Party earlier than December 31, 2025, then Employee shall receive severance/salary continuation, described herein, in exchange for Employee's execution of this Agreement, which contains a release and waiver of claims. WHEREAS, in conjunction with this separation, the Bank has offered Employee separation pay and benefits that are not otherwise owed to Employee, in exchange for Employee's waiver of rights as outlined in this Agreement; and WHEREAS, the Parties have agreed to the terms and conditions as outlined in this Agreement to resolve all outstanding matters between them as enumerated below. NOW, THEREFORE, in consideration of the promises and obligations set forth herein, and agreeing to be legally bound hereby, the Parties agree as follows: 1. Recitals. The recitals set forth above are incorporated into and made a part of this Agreement. 2. Executive Senior Advisor Role. As Executive Senior Advisor, Employee shall perform the following duties as reasonably requested by the Chief Financial Officer: Offer counsel and guidance to Bank executives as requested. Support knowledge transfer across key areas, ensuring continuity of the Legal & Corporate Secretary function. Prepare the August Board of Directors meeting minutes. Provide historical insight on legal or governance issues. Finalize open matters for the Retirement Plans Committee, including issues related to the Rabbi Trust. Finalize open matters, research, and legal memos relating to the CDFI working group. Support the Bank relating to the exam process as directed. Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;2 Support FHLBank System research or regulatory comment letter efforts. Provide advisory support on specific legal and regulatory matters, and special projects as requested. Last Day of Employment. Unless terminated earlier by either party, Employee's last day of employment with the Bank is December 31, 2025 ("Separation Date"). 3. Consideration. In consideration for signing this Agreement and General Release, and complying with its terms, the Bank agrees to pay Employee the following, as may be more fully described in Exhibit A, and other benefits outlined in Exhibit A (subject to the terms of Exhibit A, this Agreement and the applicable plans described therein): a. to pay to Employee thirty-two (32) weeks salary continuation payments. The amounts shall be paid in installments as set forth on Exhibit A attached hereto. Such installment amounts shall be subject to tax withholdings required by federal, state, and/or local laws; b. to pay to Employee a supplemental payment ("Supplemental Payment") in an amount set forth on Exhibit A, which is equivalent to the amount the Bank contributes to active employees' medical plan coverage, at employee's elected level of coverage, for a period of thirty-two (32) weeks. The Supplemental Payment shall be paid in semi-monthly installments through the Bank's payroll and shall be subject to tax withholdings required by federal, state, and/or local laws, as outlined in Exhibit A. To the extent that Employee desires to continue participating in the Bank's medical coverage program, Employee shall complete the medical continuation coverage documents to enroll in such coverage and make payments to the Bank as set forth in those documents. Employee shall be solely responsible for paying all the costs of such continuation coverage including the administrative fee; and c. to provide outplacement assistance as set forth on Exhibit A. 4. No Consideration Absent Execution of this Agreement. Employee understands and agrees that Employee would not receive the Salary Continuation and/or the Supplemental Payment specified in paragraph "3" above, except for Employee's execution of this Agreement and General Release and the fulfillment of the promises contained herein. This Agreement and General Release shall not affect Employee's rights to any retirement benefits, incentive compensation under the 2025 Executive Officer Incentive Compensation Plan ("2025 Plan"), deferred compensation installment payments under the Bank's 2024 Executive Officer Incentive Compensation Plan ("2024 Plan"), or Employee's rights under the Non Qualified Deferred Compensation Supplemental Thrift Plan, and its applicable Addendum, through Employee's termination of employment, as the Parties agree that any payments or benefits under the aforementioned plans are governed by the terms of the applicable plan and are not subject to waiver or modification under the terms of the Agreement. For the avoidance of doubt, the aforementioned plans govern all rights of the Parties with respect to the subject matter for which Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_003.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;3 they cover, and this Agreement does not confer any additional rights or benefits not otherwise conferred by the applicable plan. 5. General Release of Claims. Employee, on behalf of Employee and Employee's heirs, executors, administrators, successors, and assigns (collectively referred to as "Releasors") knowingly and voluntarily releases and forever discharges the Bank, its divisions, predecessors, insurers, successors and assigns, and their current and former employees, attorneys, officers, directors, insureds, and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement and General Release as "Releasees"), of and from any and all claims, known and unknown, asserted or unasserted, which the Employee has or may have against Releasees, as of the date of Employee's execution of this Agreement and General Release, including, but not limited to, any discrimination or retaliation claim arising from Employee's employment with the Bank, termination of employment with the Bank, or asserting that such separation is unlawful, and any alleged violation of the following contract or common law claims, statutes, laws and ordinances (as amended and their implementing regulations): Title VII of the Civil Rights Act of 1964; Sections 1981 through 1988 of Title 42 of the United States Code; The Employee Retirement Income Security Act of 1974 ("ERISA") with respect to unvested benefits; The Immigration Reform and Control Act; The Americans with Disabilities Act of 1990; The Age Discrimination in Employment Act of 1967 ("ADEA"); The Older Workers Benefit Protection Act ("OWBPA"); The Worker Adjustment and Retraining Notification Act; The Fair Credit Reporting Act; The Family and Medical Leave Act; The Equal Pay Act; The Genetic Information, Nondiscrimination Act of 2008; Pennsylvania Wage Payment and Collection Law; Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_004.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;4 As applicable, the Pennsylvania Human Relations Act and Pennsylvania Equal Pay Law; The Allegheny County Human Relations Ordinance; The Pittsburgh Human Relations Ordinance; Any other applicable federal, state, or local law, rule, regulation, or ordinance; Any public policy, contract, tort, or common law claim, including, but not limited to, claims of breach of contract (whether written or oral, express or implied), negligence; fraud; intentional or negligent misrepresentation; wrongful discharge or termination; estoppel; impairment of economic opportunity or loss of business opportunity; interference with contractual relations; negligent or intentional infliction of emotional distress; or defamation; or Any basis for recovering costs, fees, or other expenses including attorneys' fees incurred in these matters. This paragraph is intended to be a general release, but does not extend to: rights Employee is legally barred from releasing; vested rights Employee has under any retirement or welfare benefits plan; the right to challenge or enforce this Agreement and General Release; or any claim arising after Employee signs this Agreement and General Release (which does not include any claim that the termination of employment on the Separation Date is unlawful). It also does not prohibit the filing of a charge or complaint with, or testimony, assistance, or participation in any investigation, proceeding, or hearing conducted by any federal, state, or local government agency, including, but not limited to, the Equal Employment Opportunity Commission or the Securities and Exchange Commission. Employee agrees to waive the right to receive future monetary recovery directly from the Bank, including the Bank's payments that result from any complaints or charges that Employee files with any government agency or that are filed on Employee's behalf. This provision does not waive any Employee rights regarding receipt of any whistleblower awards. 6. Specific Release of ADEA/OWBPA Claims. In further consideration of the payments provided to the Employee in this Agreement, the Releasors hereby irrevocably and unconditionally fully and forever waive, release, and discharge the Releasees from any and all claims, whether known or unknown, from the beginning of time to the date of the Employee's execution of this Agreement arising under the Age Discrimination in Employment Act ("ADEA") and the Older Workers Benefit Protection Act ("OWBPA"), both as amended, and their implementing regulations. By signing this Agreement, Employee hereby acknowledges and confirms that: (i) the Employee has read this Agreement in its entirety and understands all of its terms; (ii) by this Agreement, the Employee has been advised in writing of the right to consult with an attorney of the Employee's choosing and has consulted with counsel as the Employee believed was necessary before executing this Agreement; (iii) the Employee knowingly, freely, Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_005.jpg)

and voluntarily assents to all of the terms and conditions set out in this Agreement including, without limitation, the waiver, release, and covenants contained in it; (iv) the Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which the Employee is otherwise entitled; (v) the Employee was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of the Employee's choice, although the Employee may sign it sooner if desired; (vi) the Employee has seven (7) days from signing this Agreement to revoke the release as outlined at the end of this Agreement; and (vii) the Employee understands that the release contained in this paragraph does not apply to rights and claims that may arise after the Employee signs this Agreement. This Agreement shall not become effective until the eighth (8th) day after the Employee executes this Agreement ("Effective Date"). No Payments due to the Employee under this Agreement shall be made or begin before the Effective Date and no Payments shall be made if the Employee revokes the Agreement. 7. Acknowledgments and Affirmations. Employee affirms that Employee has been paid and/or has received all compensation, bonuses, and/or benefits to which Employee may be entitled. Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or any applicable related state or local leave or disability accommodation laws. Employee further affirms that Employee has no known workplace injuries or occupational diseases. Employee also affirms that Employee has not divulged any proprietary or confidential information of the Bank and will continue to maintain the confidentiality of such information consistent with the Bank's policies and/or common law. Employee acknowledges and agrees that this provision does not limit Employee's ability to communicate with and disclose such proprietary or confidential information in connection with filing any charge or participating in any investigation or other proceeding conducted by any federal, state, or local government agency. Both Parties acknowledge that this Agreement and General Release does not limit either Party's right, where applicable, to file or participate in an administrative charge or investigative proceeding of any federal, state, or local government agency. Employee affirms that all of the Bank's decisions regarding Employee's pay and benefits through the date of Employee's execution of this Agreement and General Release were not discriminatory, based on age, disability, race, color, sex, religion, national origin, or any other classification protected by law. 8. Confidentiality, Non-Disparagement, and Return of Property. Employee agrees not to disclose the existence or substance of this Agreement and General Release, except to Employee's spouse, tax advisor, taxing authorities, and/or an attorney with whom Employee chooses to consult regarding Employee's consideration of this Agreement and General Release, or as otherwise permitted by law. Employee agrees that Employee will take no action, including disparaging remarks, which are intended, or would reasonably be expected, to harm the Bank or its reputation, or which would reasonably be expected to lead to unwanted or unfavorable 5 Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_006.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;6 publicity to it. It is expressly agreed that this provision does not limit Employee's ability to communicate with federal, state, or local government agencies in any administrative charge or investigative proceeding. Nothing in this Agreement is intended to or will be used in any way to limit Employee's rights to communicate with any government agency, as provided for, protected under or warranted by applicable law, including without limitation the Securities and Exchange Commission. The Bank agrees to provide a reference letter of Employee from the President, in a form substantially similar to the attached letter, with the final wording to be mutually agreed to by the Parties. Employee represents and warrants that Employee will return all of the Bank's property, documents, and/or any confidential information in Employee's possession or control as of the date of Employee's termination of employment. Employee also affirms that Employee is in possession of all of Employee's property that Employee had at the Bank's premises and that the Bank is not in possession of any of Employee's property. 9. Governing Law and Interpretation. This Agreement and General Release shall be governed and conformed in accordance with the laws of the Commonwealth of Pennsylvania without regard to its conflict of laws provision. In the event of a breach of any provision of this Agreement and General Release, either Party may institute an action specifically to enforce any term or terms of this Agreement and General Release and/or to seek any damages for breach. Should any provision of this Agreement and General Release be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement and General Release in full force and effect. 10. Non-Admission of Wrongdoing. The Parties agree that neither this Agreement and General Release nor the furnishing of the consideration for this Agreement and General Release shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence of any liability or unlawful conduct of any kind. 11. Amendment. This Agreement and General Release may not be modified, altered, or changed except in writing and signed by both Parties wherein specific reference is made to this Agreement and General Release. 12. Entire Agreement. This Agreement and General Release sets forth the entire agreement between the Parties hereto and fully supersedes any prior agreements or understandings between the Parties. Employee acknowledges that Employee has not relied on any representations, promises, or agreements of any kind made to Employee in connection with Employee's decision to accept this Agreement and General Release, except for those set forth in this Agreement and General Release. EMPLOYEE HAS BEEN ADVISED THAT EMPLOYEE HAS TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT AND GENERAL RELEASE. EMPLOYEE ALSO IS ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO EMPLOYEE'S SIGNING OF THIS AGREEMENT AND GENERAL RELEASE. Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_007.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;7 EMPLOYEE MAY REVOKE THIS AGREEMENT AND GENERAL RELEASE FOR A PERIOD OF SEVEN (7) CALENDAR DAYS FOLLOWING THE DAY EMPLOYEE SIGNS THIS AGREEMENT AND GENERAL RELEASE. ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO THE BANK'S CHIEF HUMAN RESOURCES OFFICER, KUYBA WASHINGTON AND STATE, "I HEREBY REVOKE MY ACCEPTANCE OF OUR AGREEMENT AND GENERAL RELEASE." THE REVOCATION MUST BE DELIVERED TO CHIEF HUMAN RESOURCES OFFICER, KUYBA WASHINGTON AT 301 GRANT STREET, SUITE 2000, PITTSBURGH, PA 15219, WITH A COPY TO KUYBA.WASHINGTON@FHLB- PGH.COM, NO LATER THAN 4:30 P.M. ON THE SEVENTH CALENDAR DAY AFTER EMPLOYEE SIGNS THIS AGREEMENT AND GENERAL RELEASE. THE AGREEMENT AND GENERAL RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE BEFORE THE SEVEN-DAY REVOCATION PERIOD HAS EXPIRED. A REVOCATION WOULD AUTOMATICALLY TERMINATE THIS AGREEMENT AND GENERAL RELEASE. EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL RELEASE, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD. EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE, AND RELEASE ALL CLAIMS EMPLOYEE HAS OR MIGHT HAVE AGAINST RELEASEES THAT CAN BE RELEASED UNDER LAW. The Parties knowingly and voluntarily sign this Agreement and General Release as of the date(s) set forth below: FEDERAL HOME LOAN BANK OF PITTSBURGH By: By: Signature Signature Name: Peggy Delinois Hamilton Name: Date: Title: Date: Employee was provided this Agreement, and its Exhibit A, on October 1, 2025 and provided again on October 9, 2025. Attachment – Exhibit A Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862 Kuyba Washington Chief Human Resources Officer 11/11/2025 \| 10:54 AM EST

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![](fhlbpitex1019-agreement_008.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;8 AGREEMENT AND GENERAL RELEASE EXHIBIT A Pursuant to Paragraph 3 of the Agreement: • Salary Continuation Payments: The Bank shall pay Employee salary continuation in the amount equivalent to thirty-two (32) weeks of Employee's current base salary. The total gross salary continuation shall equal and not exceed Two-Hundred, Fifty-Five Thousand, Three Hundred and Eighty-Four Dollars and Sixty-Four Cents ($255,384.64). The salary continuation shall be made in semi-monthly installments through the Bank's payroll system and shall commence with the next regularly scheduled pay date that occurs at least 14 days from the Effective Date of the Agreement. Such installment amounts shall be subject to tax withholdings required by federal, state, and/or local laws • Supplemental Payment: The Bank shall pay Employee a Supplemental Payment. The total gross Supplemental Payment shall equal and not exceed Thirteen Thousand, Nine Hundred Forty-Six Dollars and Seventy-Three Cents ($13,946.73). This Supplemental Payment shall be paid in semi- monthly installments through the Bank's payroll and shall commence with the next regularly scheduled pay date that occurs at least 14 days from the Effective Date of the Agreement. Such installment amounts shall be subject to tax withholdings required by federal, state, and/or local laws. • Outplacement Assistance Benefit: The Bank shall provide to Employee, at the Bank's own expense and selection, Executive outplacement services for a period of up to twelve months to assist in the Employee's transition. • All payments and benefits outlined above are conditioned upon Employee's execution and nonrevocation of the Agreement to which this Exhibit A is attached hereto and incorporated herein. // Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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![](fhlbpitex1019-agreement_009.jpg)

October __, 2025 Re: Peggy Delinois Hamilton, Reference To Whom It May Concern: The Federal Home Loan Bank of Pittsburgh (Bank) employed Ms. Delinois Hamilton for two years, serving as General Counsel and Corporate Secretary reporting to the President and CEO as well as Executive Senior Advisor. In her role, Ms. Delinois Hamilton was responsible to cultivate, lead and direct strategy and tactical execution in the Legal, Government Relations, Human Resources and Ethics departments driving operational efficiency and governance modernization as well as managing and selecting all outside counsel relationships. In addition, Ms. Delinois Hamilton served as the principal legal advisor and corporate secretary to the Bank's Board of Directors and the Bank's Executive Committee providing advice and counsel on legal, regulatory, corporate governance, risk and legislative matters. Ms. Delinois Hamilton has a significant breadth and depth of experience, and has exceptional legal expertise, analytical skills, banking knowledge, organizational and communication skills. Ms. Delinois Hamilton is a seasoned professional who exercises sound judgment, demonstrates a dedication to her work and is highly adept at handling complex and sensitive matters. She would be an asset to any organization. Sincerely, Docusign Envelope ID: 585661BB-0857-4567-A549-23CAFCAC7862

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## Exhibit 10.21

**FEDERAL HOME LOAN BANK OF PITTSBURGH**

**KEY EMPLOYEE INCENTIVE COMPENSATION PLAN** 

**Effective January 1, 2022**

**I.&nbsp;&nbsp;&nbsp;&nbsp;EFFECTIVE DATE**

This Key Employee Incentive Compensation Plan ("Key Employee Plan" or "Plan") of the Federal Home Loan Bank of Pittsburgh was originally established effective as of January 1, 2013. Incentive Awards ("Awards") may be paid for the Plan Year (January 1 to December 31 of each year) in accordance with the provisions of this Plan. The goals for the Plan Year and terms of the Awards shall be set forth in a separate Attachment to this Plan. This Plan shall continue until terminated.

**II.&nbsp;&nbsp;&nbsp;&nbsp;PURPOSE AND OBJECTIVES**

The Plan is designed to retain and motivate key employees and reward the: (i) achievement of annual Bank-wide goals, individual performance goals (as reflected in individual performance ratings) and (ii) maintenance of satisfactory financial condition and member value over the longer term. The Bank's benchmarking process includes incentive levels for each job, reflecting similar differentiation as in the marketplace, ensuring the Bank's compensation package remains competitive.

**III.&nbsp;&nbsp;&nbsp;&nbsp;PLAN ADMINISTRATION**

The Plan is administered by Human Resources, the President and subject to review of aggregate Award payments to be made to Plan participants by the Human Resources & D&I Committee of the Board of Directors (the "Committee")and the Board of Directors (the "Board").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Responsibilities of Human Resources

The Chief Human Resources Officer ("CHRO") and Manager Compensation and Benefits are responsible for overall administration of the Plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Responsibilities of the President

The President is responsible for approval of: Plan participation, setting annual Bank-wide performance goals, approving the measurement of Bank goal achievement, and Awards determined by individual performance and Bank-wide goal achievement for participants under this Plan. The President will review with the Committee and the Board the aggregate amount of Awards to be paid to Plan participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Responsibilities of the Committee

&nbsp;&nbsp;&nbsp;&nbsp;The Committee will review the aggregate amount of Awards to be paid to Plan participants recommendations from the President and present final recommendations to the Board for its acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Responsibilities of the Board

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The Board will review and accept (as it determines appropriate) recommendations from the Committee and the President.

**IV.&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY**

The Bank's key employees are eligible to participate on the terms described in this Key Employee Plan. Any new hire that meets the Plan eligibility requirements and with a start date prior to October 1 shall be eligible to participate in the Plan and receive a pro-rated Award for the applicable Plan Year. Existing employees who are determined to be eligible to participate in the Plan as a result of a promotion shall begin their participation on January 1 of the following applicable Plan Year, unless otherwise approved for the participation to retroactively begin on January 1 of the current plan year. Upon designation as a participant, each participant will be provided a copy of the Plan. Any participant that the Bank subsequently determines is no longer eligible to continue to participate in the Plan shall be moved to such other applicable Bank incentive award plan as the Bank determines effective on January 1 of the year following the year in which the Bank notifies the participant of the change. In some cases with management approval, a participant may be moved to the applicable Bank incentive plan retroactively January 1 of the current plan year

**V.&nbsp;&nbsp;&nbsp;&nbsp;KEY EMPLOYEE PLAN AWARD OPPORTUNITY LEVELS**

A summary of the Award levels is attached as Attachment A. Each participant shall be provided with a separate document showing his/her level of participation in the Plan.

**VI.&nbsp;&nbsp;&nbsp;&nbsp;PERFORMANCE MEASURES** 

The Plan Year for the Award opportunity shall mean the annual period ending December 31 (unless otherwise specifically stated in regard to a goal(s) in the applicable goal attachment to this Key Employee Plan for the Plan Year). The Plan goals can be both quantitative and qualitative. Overall performance of Bank-wide goals and overall performance rating as measured through the Bank's performance evaluation process, in aggregate, constitute the performance measures under the Plan that will be considered when determining overall actual performance and any individual Award payout amounts.

Certain positions have a greater and more direct impact than others on the achievement of Bank performance. Those differences are recognized by varying the incentive opportunity expressed as a percentage of a participant's base salary.

In general, Bank-wide goals requiring attainment of specified performance or completion of specified tasks and activities shall not be considered as having been met when the actual performance as measured by completion of the activities has not been attained. Interpolation of Award amounts is permissible for achieved performance (measured by completion of the stated goals) at levels between threshold and target, and target and maximum. The specific terms of an approved goal(s) may establish standards for interpolation.

**VII.&nbsp;&nbsp;&nbsp;&nbsp;AWARD DETERMINATION AND PAYMENT**

No participant has a vested right to any Award under the Plan until: (i) the determinations of Award payments have been made by the Board and the President as set forth below; (ii) the participant has met all applicable requirements for such Award and for receiving payment of such an Award, including, without limitation, any continued service and performance

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requirements as set forth in this Plan; and (iii) all the other conditions and criteria regarding payment of such Award as set forth in this Key Employee Plan are met.

At the conclusion of the applicable Plan Year, the CHRO, after considering the Bank's performance against the Bank goal(s), individual performance, actual overall Bank performance, and other factors, as deemed appropriate, shall recommend to the Committee and the Board the aggregate amount of Awards to be paid to participants under this Plan. Until such determinations of Award payments have been made and a participant has met all applicable requirements under the Plan, no participant has a vested right to any Award under the Plan.

A participant who is on formal corrective action for performance at any time during the Plan Year will be ineligible to receive any payment of any Award. In order for any Award payment to be made, the most recent examination by the Federal Housing Finance Agency ("Finance Agency") of the participant's area(s) of responsibility must not have identified any unsafe or unsound practice or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Assessment of Performance

Following December 31 of each Plan Year and the review by the Board of the aggregate Award amounts to be paid to the participants under this Plan for the Plan Year, each participant's individual Total Award will be determined. Then, such Total Award, if any, will be divided such that: 1) 70 percent of the Total Award shall be referred to as the "Current Incentive Award" and 2) the remaining 30 percent of the Total Award shall be referred to as the "Deferred Incentive Award." The following illustrates how the 2022 Current Incentive Award and Deferred Incentive Award would be paid:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| <u>Current Incentive Award</u> | 70% of the Total Award | 2023 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2024 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2025 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2026 |

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\*Payment will be made no later than March 15 in the year indicated.

All payments are subject to the terms of this Plan, including Section B below**.** 

Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Each Deferred Incentive Award Installment Contingent on the Bank Continuing to Meet Stated Criteria and Contingent on the Participant Meeting Stated Payment Criteria

&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Satisfactory Bank Performance

Except as set forth in Subsection 2., it is intended that a condition to payment of each Deferred Incentive Award installment is that in the annual period preceding the designated Payment

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Year for such installment, the Board determines that the Bank has met at least one (1) of the Deferred Incentive Award criteria set forth in Attachment B to this Plan. The Board's determinations regarding whether such criteria have been met for purposes of the Executive Officer Incentive Compensation Plan ("Executive Plan") shall also govern the payment of each Deferred Incentive Award installment due under this Plan. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Board Discretion—Strategic Transactions

If prior to the payout of all Deferred Incentive Award payments a Change in Control event occurs (as defined in the Executive Plan) then, in such case, all unpaid Deferred Incentive Awards: (i) shall vest 30 days after the Finance Agency issues its written approval of such a transaction and (ii) shall be paid to the participants 30 days after the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Termination of Employment; Pro-Rated and Deferred Incentive Award Payments; Participant Performance Condition

Participants who terminate employment with the Bank for any reason, other than death, disability, or retirement prior to the Current Incentive Award payout date will not be eligible for an Award. Notwithstanding the foregoing, a participant who is at the Director level who is an active Bank employee through March 15, 2022 who voluntarily terminates employment after March 15, 2022 shall be eligible to receive payout of previously Deferred Incentive Award installments at the same time as such payments are made to participants who are current Bank employees. The immediately foregoing provision regarding Director level employees amends and restates as to such Director level employees any and all prior Key Employee Incentive Compensation Plans under which such employees were granted Deferred Incentive Awards. Participants who are hired during the Plan Year or whose employment ends due to involuntary termination<sup>1</sup> (excluding involuntary termination for cause<sup>2</sup>), death, disability, or retirement prior to the Current Incentive Award payout date may be eligible to be considered for a pro-rated Current Incentive Award.<sup>3</sup> If such a participant is determined to be eligible for a Current Incentive Award in such case then such participant shall be eligible for the payment of correspondent Deferred Incentive installments as well at the same time as such payments are made to Plan participants who are current Bank employees.

<sup>1</sup> "Involuntary termination" shall be interpreted consistent with "separation from service" as defined in the IRS 409A Regulations and exclude termination for cause.

<sup>2</sup> For purposes of the Plan, "cause" means: (1) continued failure of the participant to perform his or her duties with the Bank (other than any such failure resulting from disability), after a demand for performance, pursuant to a resolution of the Board, is delivered to the participant by the chair of the board, which specifically identifies the manner in which the participant has not performed his or her duties; (2) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule, or regulation (other than routine traffic violations or similar offenses); or (3) removal of the participant by or at the direction of the Federal Housing Finance Agency pursuant to federal laws, rules, and regulations, including 12 U.S.C. §4501 et. seq. as amended or by any successor agency to the Federal Housing Finance Agency pursuant to a similar statute.

<sup>3</sup> "Retirement" for purposes of this Plan is defined as a participant meeting one of the following criteria: (1) 60 years of age or older with at least 5 years of service; (2) 65 years of age or older regardless of service; (3) age 55 or older with at least 10 years of service; or (4) the combination of the participant's age and years of service equals or exceeds 70; In all cases of retirement, the participant is required to enter into a non-solicitation agreement in the form required by the Bank regarding the Bank's customers and employees. "Disability" shall be interpreted consistent with IRS 409A Regulations.

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Participants who terminate employment due to retirement or involuntary termination (other than for cause) after the Current Incentive Award payout date but before completion of the payment of all corresponding Deferred Incentive Award installments (as set forth above) shall receive such Deferred Incentive Award installment payments at the same time as such payments are made to Plan participants who are current Bank employees. Participants who otherwise resign employment before the completion of the payment of all corresponding Deferred Incentive Award installments shall not receive payment of such installments. Any participant that is terminated by the Bank for cause (as defined in this Plan) prior to receiving payment of all corresponding Deferred Incentive Award installments shall not receive payment of any remaining unpaid Deferred Incentive Award installments. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

In the case of a participant whose employment terminates due to death or disability before completion of the payment of all corresponding Deferred Incentive Award installments, such installments shall promptly vest following the death or disability and the remaining installments shall be paid by the Bank within 90 days of the date of death or determination of disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Provisions Applicable to All Awards Under the Plan

Except as expressly set forth otherwise in this Plan, payments under the Plan are intended to satisfy the "short-term deferral" exception under Section 409A of the Internal Revenue Code ("Code"). Each payment under the Plan will be treated as a separate payment for purposes of Section 409A of the Code and corresponding IRS 409A Regulations. Appropriate provisions shall be made for any taxes that the Bank determines are required to be withheld from any Awards under the applicable laws or other regulations of any governmental authority, whether federal, state, or local. For the avoidance of doubt, participants will be solely responsible for any applicable taxes (including income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt of any Award under the Plan. The payment of any Award shall be subject to such obligations, terms, and conditions as the President, the Committee, or the Board may specify in making the Award and, in exercising their discretion to make any Award determinations hereunder. Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

**VIII.&nbsp;&nbsp;&nbsp;&nbsp;CLAWBACK AND REDUCTION OF AWARDS**

In the event of gross misconduct, gross negligence, materially inaccurate financial statements, erroneous performance metrics related to incentive goal calculation, or conviction of a felony, the President and the Board will have the authority to adjust Award amounts or reclaim Award payments. For the avoidance of doubt, the Bank may in its sole discretion, decline to adjust the terms of any outstanding Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to a participant or the Bank.

The President or the Board (as applicable) will utilize discretion to reduce the amount of any Current Incentive Award and Deferred Incentive Award installments if either determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Operational errors or omissions result in material revisions to the financial results, information submitted to the Finance Agency, or data used to determine Award payment amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The submission of information to the Securities and Exchange Commission ("SEC"), the Office of Finance ("OF"), and/or the Finance Agency has not been provided in a timely manner; or

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The Bank fails to make sufficient progress, as determined by the Finance Agency and communicated to Bank management and/or the Board by the Finance Agency, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention.

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**IX.&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION OR AMENDMENT**

The Plan, in whole or in part, may at any time or from time to time be amended, suspended, or reinstated and may at any time be terminated by action of the Board. The President has the power and authority to construe, interpret, and administer the Plan. Except as otherwise set forth in this Plan, any decision arising out of or in connection with the construction, interpretation, or administration of the Plan will lie within the President's absolute discretion and will be binding on all parties. No provision of this Plan shall create any right to continued employment.

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Attachments

**Attachment A—Award Levels**

**2022 Incentive Award Opportunity Levels (expressed as a percentage of base salary)**

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| | | | |
|:---|:---|:---|:---|
| ***Participant Level*** |  ***Threshold***<br>***Incentive Award Opportunity*** |  ***Target***<br>***Incentive Award Opportunity*** |  ***Maximum***<br>***Incentive Award Opportunity*** |
| Senior Director | 22.5% | 37.5% | 52.5% |

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****

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**Attachment B—** 

**<u>2022</u>**

**Criteria for Payment of Deferred Award Installments**

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Market Value of Equity to Par Value of Capital Stock (MV/CS) - Maintain MV/CS above 105% on average throughout the year. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Retained Earnings Level - Maintain enough retained earnings to exceed the Bank's retained earnings target at each year-end of deferred payment period. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board will consider the following criteria and may exercise its discretion to adjust an award based on such criteria:<br>Remediation of Examination Findings. Defined as the Bank making sufficient progress, as determined by the FHFA and communicated to Bank management or the Board of Directors by the FHFA, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention. Refers to examination findings from the examination during the applicable deferral year for the installment. For example, for the 2020 installment (payable in 20122), the applicable examination is the 2020 examination.<br>Timeliness of FHFA, SEC, and OF Filings. Filings defined as SEC periodic filings, call report filings with FHFA, and FRS filings with OF that are timely filed and no material restatement by the Bank is required. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes: at least one of the (1) and (2) stated quantifiable criteria above must have been met in the preceding year in order for any installment payment to be made. In the event that both of the (1) and (2) stated quantifiable criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. In no event shall the aggregate amount of any Current Incentive Award and Deferred Incentive Award installments paid to a participant in any payment year exceed 100 percent of the participant's base salary. |

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## Exhibit 10.22

**FEDERAL HOME LOAN BANK OF PITTSBURGH**

**KEY EMPLOYEE INCENTIVE COMPENSATION PLAN** 

**Effective January 1, 2023**

**I.&nbsp;&nbsp;&nbsp;&nbsp;EFFECTIVE DATE**

This Key Employee Incentive Compensation Plan ("Key Employee Plan" or "Plan") of the Federal Home Loan Bank of Pittsburgh was originally established effective as of January 1, 2013. Incentive Awards ("Awards") may be paid for the Plan Year (January 1 to December 31 of each year) in accordance with the provisions of this Plan. The goals for the Plan Year and terms of the Awards shall be set forth in a separate Attachment to this Plan. This Plan shall continue until terminated.

**II.&nbsp;&nbsp;&nbsp;&nbsp;PURPOSE AND OBJECTIVES**

The Plan is designed to retain and motivate key employees and reward the: (i) achievement of annual Bank-wide goals, individual performance goals (as reflected in individual performance ratings) and (ii) maintenance of satisfactory financial condition and member value over the longer term. The Bank's benchmarking process includes incentive levels for each job, reflecting similar differentiation as in the marketplace, ensuring the Bank's compensation package remains competitive.

**III.&nbsp;&nbsp;&nbsp;&nbsp;PLAN ADMINISTRATION**

The Plan is administered by Human Resources, the President and subject to review of aggregate Award payments to be made to Plan participants by the Human Resources Committee of the Board of Directors (the "Committee")and the Board of Directors (the "Board").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Responsibilities of Human Resources

The Chief Human Resources Officer ("CHRO") and Senior Manager Compensation and Benefits are responsible for overall administration of the Plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Responsibilities of the President

The President is responsible for approval of: Plan participation, setting annual Bank-wide performance goals, approving the measurement of Bank goal achievement, and Awards determined by individual performance and Bank-wide goal achievement for participants under this Plan. The President will review with the Committee and the Board the aggregate amount of Awards to be paid to Plan participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Responsibilities of the Committee

&nbsp;&nbsp;&nbsp;&nbsp;The Committee will review the aggregate amount of Awards to be paid to Plan participants recommendations from the President and present final recommendations to the Board for its acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Responsibilities of the Board

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The Board will review and accept (as it determines appropriate) recommendations from the Committee and the President.

**IV.&nbsp;&nbsp;&nbsp;&nbsp;ELIGIBILITY**

The Bank's key employees are eligible to participate on the terms described in this Key Employee Plan. Any new hire that meets the Plan eligibility requirements and with a start date prior to October 1 shall be eligible to participate in the Plan and receive a pro-rated Award for the applicable Plan Year. Existing employees who are determined to be eligible to participate in the Plan as a result of a promotion shall begin their participation on January 1 of the following applicable Plan Year, unless otherwise approved for the participation to retroactively begin on January 1 of the current plan year. Upon designation as a participant, each participant will be provided a copy of the Plan. Any participant that the Bank subsequently determines is no longer eligible to continue to participate in the Plan shall be moved to such other applicable Bank incentive award plan as the Bank determines effective on January 1 of the year following the year in which the Bank notifies the participant of the change. In some cases with management approval, a participant may be moved to the applicable Bank incentive plan retroactively January 1 of the current plan year

**V.&nbsp;&nbsp;&nbsp;&nbsp;KEY EMPLOYEE PLAN AWARD OPPORTUNITY LEVELS**

A summary of the Award levels is attached as Attachment A. Each participant shall be provided with a separate document showing his/her level of participation in the Plan.

**VI.&nbsp;&nbsp;&nbsp;&nbsp;PERFORMANCE MEASURES** 

The Plan Year for the Award opportunity shall mean the annual period ending December 31 (unless otherwise specifically stated in regard to a goal(s) in the applicable goal attachment to this Key Employee Plan for the Plan Year). The Plan goals can be both quantitative and qualitative. Overall performance of Bank-wide goals and overall performance rating as measured through the Bank's performance evaluation process, in aggregate, constitute the performance measures under the Plan that will be considered when determining overall actual performance and any individual Award payout amounts.

Certain positions have a greater and more direct impact than others on the achievement of Bank performance. Those differences are recognized by varying the incentive opportunity expressed as a percentage of a participant's base salary.

In general, Bank-wide goals requiring attainment of specified performance or completion of specified tasks and activities shall not be considered as having been met when the actual performance as measured by completion of the activities has not been attained. Interpolation of Award amounts is permissible for achieved performance (measured by completion of the stated goals) at levels between threshold and target, and target and maximum. The specific terms of an approved goal(s) may establish standards for interpolation.

**VII.&nbsp;&nbsp;&nbsp;&nbsp;AWARD DETERMINATION AND PAYMENT**

No participant has a vested right to any Award under the Plan until: (i) the determinations of Award payments have been made by the Board and the President as set forth below; (ii) the participant has met all applicable requirements for such Award and for receiving payment of such an Award, including, without limitation, any continued service and performance

------

requirements as set forth in this Plan; and (iii) all the other conditions and criteria regarding payment of such Award as set forth in this Key Employee Plan are met.

At the conclusion of the applicable Plan Year, the CHRO, after considering the Bank's performance against the Bank goal(s), individual performance, actual overall Bank performance, and other factors, as deemed appropriate, shall recommend to the Committee and the Board the aggregate amount of Awards to be paid to participants under this Plan. Until such determinations of Award payments have been made and a participant has met all applicable requirements under the Plan, no participant has a vested right to any Award under the Plan.

A participant who is on formal corrective action for performance at any time during the Plan Year will be ineligible to receive any payment of any Award. In order for any Award payment to be made, the most recent examination by the Federal Housing Finance Agency ("Finance Agency") of the participant's area(s) of responsibility must not have identified any unsafe or unsound practice or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Assessment of Performance

Following December 31 of each Plan Year and the review by the Board of the aggregate Award amounts to be paid to the participants under this Plan for the Plan Year, each participant's individual Total Award will be determined. Then, such Total Award, if any, will be divided such that: 1) 70 percent of the Total Award shall be referred to as the "Current Incentive Award" and 2) the remaining 30 percent of the Total Award shall be referred to as the "Deferred Incentive Award." The following illustrates how the 2023 Current Incentive Award and Deferred Incentive Award would be paid:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| <u>Current Incentive Award</u> | 70% of the Total Award | 2024 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2025 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2026 |
| <u>Deferred Incentive Award installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2027 |

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\*Payment will be made no later than March 15 in the year indicated.

All payments are subject to the terms of this Plan, including Section B below**.** 

Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Each Deferred Incentive Award Installment Contingent on the Bank Continuing to Meet Stated Criteria and Contingent on the Participant Meeting Stated Payment Criteria

&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Maintenance of Satisfactory Bank Performance

Except as set forth in Subsection 2., it is intended that a condition to payment of each Deferred Incentive Award installment is that in the annual period preceding the designated Payment

------

Year for such installment, the Board determines that the Bank has met at least one (1) of the Deferred Incentive Award criteria set forth in Attachment B to this Plan. The Board's determinations regarding whether such criteria have been met for purposes of the Executive Officer Incentive Compensation Plan ("Executive Plan") shall also govern the payment of each Deferred Incentive Award installment due under this Plan. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Board Discretion—Strategic Transactions

If prior to the payout of all Deferred Incentive Award payments a Change in Control event occurs (as defined in the Executive Plan) then, in such case, all unpaid Deferred Incentive Awards: (i) shall vest 30 days after the Finance Agency issues its written approval of such a transaction and (ii) shall be paid to the participants 30 days after the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Termination of Employment; Pro-Rated and Deferred Incentive Award Payments; Participant Performance Condition

Participants who terminate employment with the Bank for any reason, other than death, disability, or retirement prior to the Current Incentive Award payout date will not be eligible for an Award. Notwithstanding the foregoing, a participant who is at the Director level who is an active Bank employee through March 15, 2022 who voluntarily terminates employment after March 15, 2022 shall be eligible to receive payout of previously Deferred Incentive Award installments at the same time as such payments are made to participants who are current Bank employees. The immediately foregoing provision regarding Director level employees amends and restates as to such Director level employees any and all prior Key Employee Incentive Compensation Plans under which such employees were granted Deferred Incentive Awards. Participants who are hired during the Plan Year or whose employment ends due to involuntary termination<sup>1</sup> (excluding involuntary termination for cause<sup>2</sup>), death, disability, or retirement prior to the Current Incentive Award payout date may be eligible to be considered for a pro-rated Current Incentive Award.<sup>3</sup> If such a participant is determined to be eligible for a Current Incentive Award in such case then such participant shall be eligible for the payment of correspondent Deferred Incentive installments as well at the same time as such payments are made to Plan participants who are current Bank employees.

<sup>1</sup> "Involuntary termination" shall be interpreted consistent with "separation from service" as defined in the IRS 409A Regulations and exclude termination for cause.

<sup>2</sup> For purposes of the Plan, "cause" means: (1) continued failure of the participant to perform his or her duties with the Bank (other than any such failure resulting from disability), after a demand for performance, pursuant to a resolution of the Board, is delivered to the participant by the chair of the board, which specifically identifies the manner in which the participant has not performed his or her duties; (2) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule, or regulation (other than routine traffic violations or similar offenses); or (3) removal of the participant by or at the direction of the Federal Housing Finance Agency pursuant to federal laws, rules, and regulations, including 12 U.S.C. §4501 et. seq. as amended or by any successor agency to the Federal Housing Finance Agency pursuant to a similar statute.

<sup>3</sup> "Retirement" for purposes of this Plan is defined as a participant meeting one of the following criteria: (1) 60 years of age or older with at least 5 years of service; (2) 65 years of age or older regardless of service; (3) age 55 or older with at least 10 years of service; or (4) the combination of the participant's age and years of service equals or exceeds 70; In all cases of retirement, the participant is required to enter into a non-solicitation agreement in the form required by the Bank regarding the Bank's customers and employees. "Disability" shall be interpreted consistent with IRS 409A Regulations.

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Participants who terminate employment due to retirement or involuntary termination (other than for cause) after the Current Incentive Award payout date but before completion of the payment of all corresponding Deferred Incentive Award installments (as set forth above) shall receive such Deferred Incentive Award installment payments at the same time as such payments are made to Plan participants who are current Bank employees. Participants who otherwise resign employment before the completion of the payment of all corresponding Deferred Incentive Award installments shall not receive payment of such installments. Any participant that is terminated by the Bank for cause (as defined in this Plan) prior to receiving payment of all corresponding Deferred Incentive Award installments shall not receive payment of any remaining unpaid Deferred Incentive Award installments. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

In the case of a participant whose employment terminates due to death or disability before completion of the payment of all corresponding Deferred Incentive Award installments, such installments shall promptly vest following the death or disability and the remaining installments shall be paid by the Bank within 90 days of the date of death or determination of disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Provisions Applicable to All Awards Under the Plan

Except as expressly set forth otherwise in this Plan, payments under the Plan are intended to satisfy the "short-term deferral" exception under Section 409A of the Internal Revenue Code ("Code"). Each payment under the Plan will be treated as a separate payment for purposes of Section 409A of the Code and corresponding IRS 409A Regulations. Appropriate provisions shall be made for any taxes that the Bank determines are required to be withheld from any Awards under the applicable laws or other regulations of any governmental authority, whether federal, state, or local. For the avoidance of doubt, participants will be solely responsible for any applicable taxes (including income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt of any Award under the Plan. The payment of any Award shall be subject to such obligations, terms, and conditions as the President, the Committee, or the Board may specify in making the Award and, in exercising their discretion to make any Award determinations hereunder. Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

**VIII.&nbsp;&nbsp;&nbsp;&nbsp;CLAWBACK AND REDUCTION OF AWARDS**

In the event of gross misconduct, gross negligence, materially inaccurate financial statements, erroneous performance metrics related to incentive goal calculation, or conviction of a felony, the President and the Board will have the authority to adjust Award amounts or reclaim Award payments. For the avoidance of doubt, the Bank may in its sole discretion, decline to adjust the terms of any outstanding Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to a participant or the Bank.

The President or the Board (as applicable) will utilize discretion to reduce the amount of any Current Incentive Award and Deferred Incentive Award installments if either determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Operational errors or omissions result in material revisions to the financial results, information submitted to the Finance Agency, or data used to determine Award payment amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The submission of information to the Securities and Exchange Commission ("SEC"), the Office of Finance ("OF"), and/or the Finance Agency has not been provided in a timely manner; or

------

The Bank fails to make sufficient progress, as determined by the Finance Agency and communicated to Bank management and/or the Board by the Finance Agency, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention.

------

**IX.&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION OR AMENDMENT**

The Plan, in whole or in part, may at any time or from time to time be amended, suspended, or reinstated and may at any time be terminated by action of the Board. The President has the power and authority to construe, interpret, and administer the Plan. Except as otherwise set forth in this Plan, any decision arising out of or in connection with the construction, interpretation, or administration of the Plan will lie within the President's absolute discretion and will be binding on all parties. No provision of this Plan shall create any right to continued employment.

------

Attachments

**Attachment A—Award Levels**

**2023 Incentive Award Opportunity Levels (expressed as a percentage of base salary)**

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| | | | |
|:---|:---|:---|:---|
| ***Participant Level*** |  ***Threshold***<br>***Incentive Award Opportunity*** |  ***Target***<br>***Incentive Award Opportunity*** |  ***Maximum***<br>***Incentive Award Opportunity*** |
| Senior Director | 22.5% | 37.5% | 52.5% |

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****

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**Attachment B—** 

**<u>2023</u>**

**Criteria for Payment of Deferred Award Installments**

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Market Value of Equity to Par Value of Capital Stock (MV/CS) - Maintain MV/CS above 105% on average throughout the year. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Retained Earnings Level - Maintain enough retained earnings combined need, defined as retaining earnings that cover both risk target and capital compliance, to exceed the Bank's retained earnings target at each year-end of deferred payment period. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board will consider the following criteria and may exercise its discretion to adjust an award based on such criteria:<br>Remediation of Examination Findings. Defined as the Bank making sufficient progress, as determined by the FHFA and communicated to Bank management or the Board of Directors by the FHFA, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention. Refers to examination findings from the examination during the applicable deferral year for the installment. For example, for the 2021 installment (payable in 2023), the applicable examination is the 2021 examination.<br>Timeliness of FHFA, SEC, and OF Filings. Filings defined as SEC periodic filings, call report filings with FHFA, and FRS filings with OF that are timely filed and no material restatement by the Bank is required. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes: at least one of the (1) and (2) stated quantifiable criteria above must have been met in the preceding year in order for any installment payment to be made. In the event that both of the (1) and (2) stated quantifiable criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. In no event shall the aggregate amount of any Current Incentive Award and Deferred Incentive Award installments paid to a participant in any payment year exceed 100 percent of the participant's base salary. |

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## Exhibit 10.23

**FEDERAL HOME LOAN BANK OF PITTSBURGH KEY EMPLOYEE INCENTIVE COMPENSATION PLAN**

**Effective January 1, 2024**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.EFFECTIVE DATE**

This Key Employee Incentive Compensation Plan ("Key Employee Plan" or "Plan") of the Federal Home Loan Bank of Pittsburgh was originally established effective as of January 1, 2013. Incentive Awards ("Awards") may be paid for the Plan Year (January 1 to December 31 of each year) in accordance with the provisions of this Plan. The goals for the Plan Year and terms of the Awards shall be set forth in a separate Attachment to this Plan. This Plan shall continue until terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.PURPOSE AND OBJECTIVES**

The Plan is designed to retain and motivate key employees and reward the: (i) achievement of annual Bank-wide goals, individual performance goals (as reflected in individual performance ratings) and (ii) maintenance of satisfactory financial condition and member value over the longer term.&nbsp;&nbsp;&nbsp;&nbsp;The Bank's benchmarking process includes incentive levels for each job, reflecting similar differentiation as in the marketplace, ensuring the Bank's compensation package remains competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.PLAN ADMINISTRATION**

The Plan is administered by Human Resources, the President and subject to review of aggregate Award payments to be made to Plan participants by the Human Resources Committee of the Board of Directors (the "Committee")and the Board of Directors (the "Board").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Responsibilities of Human Resources

The Chief Human Resources Officer ("CHRO") and Senior Manager Compensation and Benefits are responsible for overall administration of the Plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Responsibilities of the President

The President is responsible for approval of: Plan participation, setting annual Bank-wide performance goals, approving the measurement of Bank goal achievement, and Awards determined by individual performance and Bank-wide goal achievement for participants under this Plan. The President will review with the Committee and the Board the aggregate amount of Awards to be paid to Plan participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Responsibilities of the Committee

The Committee will review the aggregate amount of Awards to be paid to Plan participants recommendations from the President and present final recommendations to the Board for its acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Responsibilities of the Board

The Board will review and accept (as it determines appropriate) recommendations from the Committee and the President.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.ELIGIBILITY**

The Bank's key employees are eligible to participate on the terms described in this Key Employee Plan. Any new hire that meets the Plan eligibility requirements and with a start date prior to October 1 shall be eligible to participate in the Plan and receive a pro-rated Award for the applicable Plan Year. Existing employees who are determined to be eligible to participate in the Plan as a result of a promotion shall begin their participation on January 1 of the following applicable Plan Year, unless otherwise approved for the participation to retroactively begin on January 1 of the current plan year. Upon designation as a participant, each participant will be provided a copy of the Plan. Any participant that the Bank subsequently determines is no longer eligible to continue to participate in the Plan shall be moved to such other applicable Bank incentive award plan as the Bank determines effective on January 1 of the year following the year in which the Bank notifies the participant of the change. In some cases with management approval, a participant may be moved to the applicable Bank incentive plan retroactively January 1 of the current plan year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.KEY EMPLOYEE PLAN AWARD OPPORTUNITY LEVELS**

A summary of the Award levels is attached as Attachment A. Each participant shall be provided with a separate document showing his/her level of participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.PERFORMANCE MEASURES**

The Plan Year for the Award opportunity shall mean the annual period ending December 31 (unless otherwise specifically stated in regard to a goal(s) in the applicable goal attachment to this Key Employee Plan for the Plan Year). The Plan goals can be both quantitative and qualitative. Overall performance of Bank-wide goals and overall performance rating as measured through the Bank's performance evaluation process, in aggregate, constitute the performance measures under the Plan that will be considered when determining overall actual performance and any individual Award payout amounts.

Certain positions have a greater and more direct impact than others on the achievement of Bank performance. Those differences are recognized by varying the incentive opportunity expressed as a percentage of a participant's base salary.

In general, Bank-wide goals requiring attainment of specified performance or completion of specified tasks and activities shall not be considered as having been met when the actual performance as measured by completion of the activities has not been attained. Interpolation of Award amounts is permissible for achieved performance (measured by completion of the stated goals) at levels between threshold and target, and target and maximum. The specific terms of an approved goal(s) may establish standards for interpolation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.AWARD DETERMINATION AND PAYMENT**

No participant has a vested right to any Award under the Plan until: (i) the determinations of Award payments have been made by the Board and the President as set forth below; (ii) the participant has met all applicable requirements for such Award and for receiving payment of such an Award, including, without limitation, any continued service and performance requirements as set forth in this Plan; and (iii) all the other conditions and criteria regarding payment of such Award as set forth in this Key Employee Plan are met.

At the conclusion of the applicable Plan Year, the CHRO, after considering the Bank's performance against the Bank goal(s), individual performance, actual overall Bank performance, and other factors, as deemed appropriate, shall recommend to the Committee

------

and the Board the aggregate amount of Awards to be paid to participants under this Plan. Until such determinations of Award payments have been made and a participant has met all applicable requirements under the Plan, no participant has a vested right to any Award under the Plan.

A participant who is on formal corrective action for performance at any time during the Plan Year will be ineligible to receive any payment of any Award. In order for any Award payment to be made, the most recent examination by the Federal Housing Finance Agency ("Finance Agency") of the participant's area(s) of responsibility must not have identified any unsafe or unsound practice or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Assessment of Performance

Following December 31 of each Plan Year and the review by the Board of the aggregate Award amounts to be paid to the participants under this Plan for the Plan Year, each participant's individual Total Award will be determined. Then, such Total Award, if any, will be divided such that: 1) 70 percent of the Total Award shall be referred to as the "Current Incentive Award" and 2) the remaining 30 percent of the Total Award shall be referred to as the "Deferred Incentive Award." The following illustrates how the 2024 Current Incentive Award and Deferred Incentive Award would be paid:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| <u>Current Incentive Award</u> | 70% of the Total Award | 2025 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2026 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2027 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2028 |

---

\*Payment will be made no later than March 15 in the year indicated.

All payments are subject to the terms of this Plan, including Section B below**.** Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Payment of Each Deferred Incentive Award Installment Contingent on the Bank Continuing to Meet Stated Criteria and Contingent on the Participant Meeting Stated Payment Criteria

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Maintenance of Satisfactory Bank Performance

Except as set forth in Subsection 2., it is intended that a condition to payment of each Deferred Incentive Award installment is that in the annual period preceding the designated Payment Year for such installment, the Board determines that the Bank has met at least one (1) of the Deferred Incentive Award criteria set forth in Attachment B to this Plan. The Board's determinations regarding whether such criteria have been met for purposes of the Executive Officer Incentive Compensation Plan ("Executive Plan") shall also govern the payment of each Deferred Incentive Award installment due under this Plan. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Board Discretion—Strategic Transactions

If prior to the payout of all Deferred Incentive Award payments a Change in Control event occurs (as defined in the Executive Plan) then, in such case, all unpaid Deferred Incentive Awards: (i) shall vest 30 days after the Finance Agency issues its written approval of such a transaction and (ii) shall be paid to the participants 30 days after the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Termination of Employment; Pro-Rated and Deferred Incentive Award Payments; Participant Performance Condition

Participants who terminate employment with the Bank for any reason, other than death, disability, or retirement prior to the Current Incentive Award payout date will not be eligible for an Award. Notwithstanding the foregoing, a participant who is at the Director level who is an active Bank employee through March 15, 2024 who voluntarily terminates employment after March 15, 2024 shall be eligible to receive payout of previously Deferred Incentive Award installments at the same time as such payments are made to participants who are current Bank employees. The immediately foregoing provision regarding Director level employees amends and restates as to such Director level employees any and all prior Key Employee Incentive Compensation Plans under which such employees were granted Deferred Incentive Awards. Participants who are hired during the Plan Year or whose employment ends due to involuntary termination<sup>1</sup> (excluding involuntary termination for cause<sup>2</sup>), death, disability, or retirement prior to the Current Incentive Award payout date may be eligible to be considered for a pro-rated Current Incentive Award.<sup>3</sup> If such a participant is determined to be eligible for a Current Incentive Award in such case then such participant shall be eligible for the payment of correspondent Deferred Incentive installments as well at the same time as such payments are made to Plan participants who are current Bank employees.

Participants who terminate employment due to retirement or involuntary termination (other than for cause) after the Current Incentive Award payout date but before completion of the payment of all corresponding Deferred Incentive Award installments (as set forth above) shall receive such Deferred Incentive Award installment payments at the same time as such payments are made to Plan participants who are current Bank employees. Participants who otherwise resign employment before the completion of the payment of all corresponding Deferred Incentive Award installments shall not receive payment of such installments. Any participant that is terminated by the Bank for cause (as defined in this Plan) prior to receiving

![image_0.jpg](image_0.jpg)

1 "Involuntary termination" shall be interpreted consistent with "separation from service" as defined in the IRS 409A Regulations and exclude termination for cause.

2 For purposes of the Plan, "cause" means: (1) continued failure of the participant to perform his or her duties with the Bank (other than any such failure resulting from disability), after a demand for performance, pursuant to a resolution of the Board, is delivered to the participant by the chair of the board, which specifically identifies the manner in which the participant has not performed his or her duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule, or regulation (other than routine traffic violations or similar offenses); or (3) removal of the participant by or at the direction of the Federal Housing Finance Agency pursuant to federal laws, rules, and regulations, including 12 U.S.C. §4501 et. seq. as amended or by any successor agency to the Federal Housing Finance Agency pursuant to a similar statute.

3 "Retirement" for purposes of this Plan is defined as a participant meeting one of the following criteria: (1) 60 years of age or older with at least 5 years of service; (2) 65 years of age or older regardless of service; (3) age 55 or older with at least 10 years of service; or (4) the combination of the participant's age and years of service equals or exceeds 70; In all cases of retirement, the participant is required to enter into a non-solicitation agreement in the form required by the Bank regarding the Bank's customers and employees. "Disability" shall be interpreted consistent with IRS 409A Regulations.

------

payment of all corresponding Deferred Incentive Award installments shall not receive payment of any remaining unpaid Deferred Incentive Award installments. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

In the case of a participant whose employment terminates due to death or disability before completion of the payment of all corresponding Deferred Incentive Award installments, such installments shall promptly vest following the death or disability and the remaining installments shall be paid by the Bank within 90 days of the date of death or determination of disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Provisions Applicable to All Awards Under the Plan

Except as expressly set forth otherwise in this Plan, payments under the Plan are intended to satisfy the "short-term deferral" exception under Section 409A of the Internal Revenue Code ("Code"). Each payment under the Plan will be treated as a separate payment for purposes of Section 409A of the Code and corresponding IRS 409A Regulations. Appropriate provisions shall be made for any taxes that the Bank determines are required to be withheld from any Awards under the applicable laws or other regulations of any governmental authority, whether federal, state, or local. For the avoidance of doubt, participants will be solely responsible for any applicable taxes (including income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt of any Award under the Plan.

The payment of any Award shall be subject to such obligations, terms, and conditions as the President, the Committee, or the Board may specify in making the Award and, in exercising their discretion to make any Award determinations hereunder. Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.CLAWBACK AND REDUCTION OF AWARDS**

In the event of gross misconduct, gross negligence, materially inaccurate financial statements, erroneous performance metrics related to incentive goal calculation, or conviction of a felony, the President and the Board will have the authority to adjust Award amounts or reclaim Award payments. For the avoidance of doubt, the Bank may in its sole discretion, decline to adjust the terms of any outstanding Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to a participant or the Bank.

The President or the Board (as applicable) will utilize discretion to reduce the amount of any Current Incentive Award and Deferred Incentive Award installments if either determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Operational errors or omissions result in material revisions to the financial results, information submitted to the Finance Agency, or data used to determine Award payment amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The submission of information to the Securities and Exchange Commission ("SEC"), the Office of Finance ("OF"), and/or the Finance Agency has not been provided in a timely manner; or

The Bank fails to make sufficient progress, as determined by the Finance Agency and communicated to Bank management and/or the Board by the Finance Agency, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.TERMINATION OR AMENDMENT**

The Plan, in whole or in part, may at any time or from time to time be amended, suspended, or reinstated and may at any time be terminated by action of the Board. The President has the power and authority to construe, interpret, and administer the Plan. Except as otherwise set forth in this Plan, any decision arising out of or in connection with the construction, interpretation, or administration of the Plan will lie within the President's absolute discretion and will be binding on all parties. No provision of this Plan shall create any right to continued employment.

------

Attachments

**Attachment A—Award Levels**

**2024Incentive Award Opportunity Levels (expressed as a percentage of base salary)**

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| | | | |
|:---|:---|:---|:---|
| ***Participant Level*** | ***Threshold Incentive Award***<br>***Opportunity*** | &nbsp;&nbsp;&nbsp;&nbsp;***Target Incentive Award***<br>***Opportunity*** | ***Maximum Incentive Award***<br>***Opportunity*** |
| Senior Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52.5% |

---

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**Attachment B—**

**<u>2024</u>**

**Criteria for Payment of Deferred Award Installments**

&nbsp;&nbsp;&nbsp;&nbsp;

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Market Value of Equity to Par Value of Capital Stock (MV/CS) - Maintain MV/CS above 105% on average throughout the year. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Retained Earnings Level - Maintain enough retained earnings combined need, defined as retaining earnings that cover both risk target and capital compliance, to exceed the Bank's retained earnings target at each year-end of deferred payment period. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board will consider the following criteria and may exercise its discretion to adjust an award based on such criteria:<br>Remediation of Examination Findings. Defined as the Bank making sufficient progress, as determined by the FHFA and communicated to Bank management or the Board of Directors by the FHFA, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention. Refers to examination findings from the examination during the applicable deferral year for the installment. For example, for the 2023 installment (payable in 2025), the applicable examination is the 2023 examination.<br>Timeliness of FHFA, SEC, and OF Filings. Filings defined as SEC periodic filings, call report filings with FHFA, and FRS filings with OF that are timely filed and no material restatement by the Bank is required. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes: at least one of the (1) and (2) stated quantifiable criteria above must have been met in the preceding year in order for any installment payment to be made. In the event that both of the (1) and<br>&nbsp;&nbsp;&nbsp;&nbsp;(2) stated quantifiable criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. In no event shall the aggregate amount of any Current Incentive Award and Deferred Incentive Award installments paid to a participant in any payment year exceed 100 percent of the participant's base salary. |

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## Exhibit 10.24

**FEDERAL HOME LOAN BANK OF PITTSBURGH KEY EMPLOYEE INCENTIVE COMPENSATION PLAN**

**Effective January 1, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.EFFECTIVE DATE**

This Key Employee Incentive Compensation Plan ("Key Employee Plan" or "Plan") of the Federal Home Loan Bank of Pittsburgh was originally established effective as of January 1, 2013. Incentive Awards ("Awards") may be paid for the Plan Year (January 1 to December 31 of each year) in accordance with the provisions of this Plan. The goals for the Plan Year and terms of the Awards shall be set forth in a separate Attachment to this Plan. This Plan shall continue until terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.PURPOSE AND OBJECTIVES**

The Plan is designed to retain and motivate key employees and reward the: (i) achievement of annual Bank-wide goals, individual performance goals (as reflected in individual performance ratings) and (ii) maintenance of satisfactory financial condition and member value over the longer term.&nbsp;&nbsp;&nbsp;&nbsp;The Bank's benchmarking process includes incentive levels for each job, reflecting similar differentiation as in the marketplace, ensuring the Bank's compensation package remains competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.PLAN ADMINISTRATION**

The Plan is administered by Human Resources, the President and subject to review of aggregate Award payments to be made to Plan participants by the Human Resources Committee of the Board of Directors (the "Committee")and the Board of Directors (the "Board").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Responsibilities of Human Resources

The Chief Human Resources Officer ("CHRO") and Senior Manager Compensation and Benefits are responsible for overall administration of the Plan provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Responsibilities of the President

The President is responsible for approval of: Plan participation, setting annual Bank-wide performance goals, approving the measurement of Bank goal achievement, and Awards determined by individual performance and Bank-wide goal achievement for participants under this Plan. The President will review with the Committee and the Board the aggregate amount of Awards to be paid to Plan participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Responsibilities of the Committee

The Committee will review the aggregate amount of Awards to be paid to Plan participants recommendations from the President and present final recommendations to the Board for its acceptance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Responsibilities of the Board

The Board will review and accept (as it determines appropriate) recommendations from the Committee and the President.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.ELIGIBILITY**

The Bank's key employees are eligible to participate on the terms described in this Key Employee Plan. Any new hire that meets the Plan eligibility requirements and with a start date prior to October 1 shall be eligible to participate in the Plan and receive a pro-rated Award for the applicable Plan Year. Existing employees who are determined to be eligible to participate in the Plan as a result of a promotion shall begin their participation on January 1 of the following applicable Plan Year, unless otherwise approved for the participation to retroactively begin on January 1 of the current plan year. Upon designation as a participant, each participant will be provided a copy of the Plan. Any participant that the Bank subsequently determines is no longer eligible to continue to participate in the Plan shall be moved to such other applicable Bank incentive award plan as the Bank determines effective on January 1 of the year following the year in which the Bank notifies the participant of the change. In some cases with management approval, a participant may be moved to the applicable Bank incentive plan retroactively January 1 of the current plan year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.KEY EMPLOYEE PLAN AWARD OPPORTUNITY LEVELS**

A summary of the Award levels is attached as Attachment A. Each participant shall be provided with a separate document showing his/her level of participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.PERFORMANCE MEASURES**

The Plan Year for the Award opportunity shall mean the annual period ending December 31 (unless otherwise specifically stated in regard to a goal(s) in the applicable goal attachment to this Key Employee Plan for the Plan Year). The Plan goals can be both quantitative and qualitative. Overall performance of Bank-wide goals and overall performance rating as measured through the Bank's performance evaluation process, in aggregate, constitute the performance measures under the Plan that will be considered when determining overall actual performance and any individual Award payout amounts.

Certain positions have a greater and more direct impact than others on the achievement of Bank performance. Those differences are recognized by varying the incentive opportunity expressed as a percentage of a participant's base salary.

In general, Bank-wide goals requiring attainment of specified performance or completion of specified tasks and activities shall not be considered as having been met when the actual performance as measured by completion of the activities has not been attained. Interpolation of Award amounts is permissible for achieved performance (measured by completion of the stated goals) at levels between threshold and target, and target and maximum. The specific terms of an approved goal(s) may establish standards for interpolation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.AWARD DETERMINATION AND PAYMENT**

No participant has a vested right to any Award under the Plan until: (i) the determinations of Award payments have been made by the Board and the President as set forth below; (ii) the participant has met all applicable requirements for such Award and for receiving payment of such an Award, including, without limitation, any continued service and performance requirements as set forth in this Plan; and (iii) all the other conditions and criteria regarding payment of such Award as set forth in this Key Employee Plan are met.

At the conclusion of the applicable Plan Year, the CHRO, after considering the Bank's performance against the Bank goal(s), individual performance, actual overall Bank performance, and other factors, as deemed appropriate, shall recommend to the Committee

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and the Board the aggregate amount of Awards to be paid to participants under this Plan. Until such determinations of Award payments have been made and a participant has met all applicable requirements under the Plan, no participant has a vested right to any Award under the Plan.

A participant who is on formal corrective action for performance at any time during the Plan Yearmay be eligible to receive a prorated incentive payment, based on the number of days they were not on formal correction action during the Plan Year. In order for any Award payment to be made, the most recent examination by the Federal Housing Finance Agency ("Finance Agency") of the participant's area(s) of responsibility must not have identified any unsafe or unsound practice or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Assessment of Performance

Following December 31 of each Plan Year and the review by the Board of the aggregate Award amounts to be paid to the participants under this Plan for the Plan Year, each participant's individual Total Award will be determined. Then, such Total Award, if any, will be divided such that: 1) 70 percent of the Total Award shall be referred to as the "Current Incentive Award" and 2) the remaining 30 percent of the Total Award shall be referred to as the "Deferred Incentive Award." The following illustrates how the 2025 Current Incentive Award and Deferred Incentive Award would be paid:

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| | | |
|:---|:---|:---|
| **Payment** | **Description** | **Payment Year\*** |
| <u>Current Incentive Award</u> | 70% of the Total Award | 2026 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2027 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2028 |
| <u>Deferred Incentive Award</u> <u>installment</u> | Up to 33 1/3% of the Deferred Incentive Award | 2029 |

---

\*Payment will be made no later than March 15 in the year indicated.

All payments are subject to the terms of this Plan, including Section B below**.** Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Payment of Each Deferred Incentive Award Installment Contingent on the Bank Continuing to Meet Stated Criteria and Contingent on the Participant Meeting Stated Payment Criteria

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Maintenance of Satisfactory Bank Performance

Except as set forth in Subsection 2., it is intended that a condition to payment of each Deferred Incentive Award installment is that in the annual period preceding the designated Payment Year for such installment, the Board determines that the Bank has met at least one (1) of the Deferred Incentive Award criteria set forth in Attachment B to this Plan. The Board's determinations regarding whether such criteria have been met for purposes of the Executive Officer Incentive Compensation Plan ("Executive Plan") shall also govern the payment of each

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Deferred Incentive Award installment due under this Plan. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Board Discretion—Strategic Transactions

If prior to the payout of all Deferred Incentive Award payments a Change in Control event occurs (as defined in the Executive Plan) then, in such case, all unpaid Deferred Incentive Awards: (i) shall vest 30 days after the Finance Agency issues its written approval of such a transaction and (ii) shall be paid to the participants 30 days after the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Termination of Employment; Pro-Rated and Deferred Incentive Award Payments; Participant Performance Condition

Participants who terminate employment with the Bank for any reason, other than death, disability, or retirement prior to the Current Incentive Award payout date will not be eligible for an Award. Notwithstanding the foregoing, a participant who is at the Director level who is an active Bank employee through March 15, 2025 who voluntarily terminates employment after March 15, 2025 shall be eligible to receive payout of previously Deferred Incentive Award installments at the same time as such payments are made to participants who are current Bank employees. The immediately foregoing provision regarding Director level employees amends and restates as to such Director level employees any and all prior Key Employee Incentive Compensation Plans under which such employees were granted Deferred Incentive Awards. Participants who are hired during the Plan Year or whose employment ends due to involuntary termination<sup>1</sup> (excluding involuntary termination for cause<sup>2</sup>), death, disability, or retirement prior to the Current Incentive Award payout date may be eligible to be considered for a pro-rated Current Incentive Award.<sup>3</sup> If such a participant is determined to be eligible for a Current Incentive Award in such case then such participant shall be eligible for the payment of correspondent Deferred Incentive installments as well at the same time as such payments are made to Plan participants who are current Bank employees.

Participants who terminate employment due to retirement or involuntary termination (other than for cause) after the Current Incentive Award payout date but before completion of the payment of all corresponding Deferred Incentive Award installments (as set forth above) shall receive such Deferred Incentive Award installment payments at the same time as such payments are made to Plan participants who are current Bank employees. Participants who otherwise resign employment before the completion of the payment of all corresponding Deferred Incentive Award installments shall not receive payment of such installments. Any participant that is terminated by the Bank for cause (as defined in this Plan) prior to receiving

![image_01.jpg](image_01.jpg)

1 "Involuntary termination" shall be interpreted consistent with "separation from service" as defined in the IRS 409A Regulations and exclude termination for cause.

2 For purposes of the Plan, "cause" means: (1) continued failure of the participant to perform his or her duties with the Bank (other than any such failure resulting from disability), after a demand for performance, pursuant to a resolution of the Board, is delivered to the participant by the chair of the board, which specifically identifies the manner in which the participant has not performed his or her duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule, or regulation (other than routine traffic violations or similar offenses); or (3) removal of the participant by or at the direction of the Federal Housing Finance Agency pursuant to federal laws, rules, and regulations, including 12 U.S.C. §4501 et. seq. as amended or by any successor agency to the Federal Housing Finance Agency pursuant to a similar statute.

3 "Retirement" for purposes of this Plan is defined as a participant meeting one of the following criteria: (1) 60 years of age or older with at least 5 years of service; (2) 65 years of age or older regardless of service; (3) age 55 or older with at least 10 years of service; or (4) the combination of the participant's age and years of service equals or exceeds 70; In all cases of retirement, the participant is required to enter into a non-solicitation agreement in the form required by the Bank regarding the Bank's customers and employees. "Disability" shall be interpreted consistent with IRS 409A Regulations.

------

payment of all corresponding Deferred Incentive Award installments shall not receive payment of any remaining unpaid Deferred Incentive Award installments. This provision shall not in any manner limit the President's and Board's authority under Articles VIII. and IX. of the Plan.

In the case of a participant whose employment terminates due to death or disability before completion of the payment of all corresponding Deferred Incentive Award installments, such installments shall promptly vest following the death or disability and the remaining installments shall be paid by the Bank within 90 days of the date of death or determination of disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Provisions Applicable to All Awards Under the Plan

Except as expressly set forth otherwise in this Plan, payments under the Plan are intended to satisfy the "short-term deferral" exception under Section 409A of the Internal Revenue Code ("Code"). Each payment under the Plan will be treated as a separate payment for purposes of Section 409A of the Code and corresponding IRS 409A Regulations. Appropriate provisions shall be made for any taxes that the Bank determines are required to be withheld from any Awards under the applicable laws or other regulations of any governmental authority, whether federal, state, or local. For the avoidance of doubt, participants will be solely responsible for any applicable taxes (including income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt of any Award under the Plan.

The payment of any Award shall be subject to such obligations, terms, and conditions as the President, the Committee, or the Board may specify in making the Award and, in exercising their discretion to make any Award determinations hereunder. Acceptance of any Award shall constitute agreement by the participant to all obligations, terms, conditions, and restrictions so imposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.CLAWBACK AND REDUCTION OF AWARDS**

In the event of gross misconduct, gross negligence, materially inaccurate financial statements, erroneous performance metrics related to incentive goal calculation, or conviction of a felony, the President and the Board will have the authority to adjust Award amounts or reclaim Award payments. For the avoidance of doubt, the Bank may in its sole discretion, decline to adjust the terms of any outstanding Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to a participant or the Bank.

The President or the Board (as applicable) will utilize discretion to reduce the amount of any Current Incentive Award and Deferred Incentive Award installments if either determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Operational errors or omissions result in material revisions to the financial results, information submitted to the Finance Agency, or data used to determine Award payment amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The submission of information to the Securities and Exchange Commission ("SEC"), the Office of Finance ("OF"), and/or the Finance Agency has not been provided in a timely manner; or

The Bank fails to make sufficient progress, as determined by the Finance Agency and communicated to Bank management and/or the Board by the Finance Agency, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.TERMINATION OR AMENDMENT**

The Plan, in whole or in part, may at any time or from time to time be amended, suspended, or reinstated and may at any time be terminated by action of the Board. The President has the power and authority to construe, interpret, and administer the Plan. Except as otherwise set forth in this Plan, any decision arising out of or in connection with the construction, interpretation, or administration of the Plan will lie within the President's absolute discretion and will be binding on all parties. No provision of this Plan shall create any right to continued employment.

------

Attachments

**Attachment A—Award Levels**

**2024Incentive Award Opportunity Levels (expressed as a percentage of base salary)**

---

| | | | |
|:---|:---|:---|:---|
| ***Participant Level*** | ***Threshold Incentive Award***<br>***Opportunity*** | &nbsp;&nbsp;&nbsp;&nbsp;***Target Incentive Award***<br>***Opportunity*** | ***Maximum Incentive Award***<br>***Opportunity*** |
| Senior Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52.5% |

---

------

**Attachment B—**

**<u>2025</u>**

**Criteria for Payment of Deferred Award Installments**

&nbsp;&nbsp;&nbsp;&nbsp;

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Market Value of Equity to Par Value of Capital Stock (MV/CS) - Maintain MV/CS above 105% on average throughout the year. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Retained Earnings Level - Maintain enough retained earnings combined need, defined as retaining earnings that cover both risk target and capital compliance, to exceed the Bank's retained earnings target at each year-end of deferred payment period. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board will consider the following criteria and may exercise its discretion to adjust an award based on such criteria:<br>Remediation of Examination Findings. Defined as the Bank making sufficient progress, as determined by the FHFA and communicated to Bank management or the Board of Directors by the FHFA, in the timely remediation of examination, monitoring, and other supervisory findings and matters requiring executive management's attention. Refers to examination findings from the examination during the applicable deferral year for the installment. For example, for the 2023 installment (payable in 2025), the applicable examination is the 2023 examination.<br>Timeliness of FHFA, SEC, and OF Filings. Filings defined as SEC periodic filings, call report filings with FHFA, and FRS filings with OF that are timely filed and no material restatement by the Bank is required. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes: at least one of the (1) and (2) stated quantifiable criteria above must have been met in the preceding year in order for any installment payment to be made. In the event that both of the (1) and<br>&nbsp;&nbsp;&nbsp;&nbsp;(2) stated quantifiable criteria are met in the preceding year, the payment will be made at 125% of the deferred amount. In no event shall the aggregate amount of any Current Incentive Award and Deferred Incentive Award installments paid to a participant in any payment year exceed 100 percent of the participant's base salary. |

---

## Exhibit 24.0

![](fhlbpitex240directorpoas001.jpg)

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![](fhlbpitex240directorpoas003.jpg)

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![](fhlbpitex240directorpoas004.jpg)

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## Exhibit 31.1

**Exhibit 31.1**

In accordance with Exchange Act Rules 13a-14(f) and 15d-14(f), this certification does not relate to Interactive Data Files as defined in Rule 11 of Regulation S-T.

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

for the Chief Executive Officer

I, David G. Paulson, certify that:

1. I have reviewed this annual report on Form 10-K for the Federal Home Loan Bank of Pittsburgh (the registrant);

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;

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;

4. The registrant's other certifying officer and I are 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 we have:

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 is made known to us, particularly during the period in which this report is being prepared;

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;

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

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

5. The registrant's other certifying officer and I have disclosed, based on our 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):

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

 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.

Date: &nbsp;&nbsp;&nbsp;&nbsp;March 4, 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ David G. Paulson</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;David G. Paulson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;President & Chief Executive Officer

## Exhibit 31.2

**Exhibit 31.2**&nbsp;&nbsp;&nbsp;&nbsp;

In accordance with Exchange Act Rules 13a-14(f) and 15d-14(f), this certification does not relate to Interactive Data Files as defined in Rule 11 of Regulation S-T.

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

for the Principal Financial Officer

I, Edward V. Weller, certify that:

1. I have reviewed this annual report on Form 10-K for the Federal Home Loan Bank of Pittsburgh (the registrant);

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;

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;

4. The registrant's other certifying officer and I are 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 we have:

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 is made known to us, particularly during the period in which this report is being prepared;

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;

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

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

5. The registrant's other certifying officer and I have disclosed, based on our 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):

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

 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.

Date: &nbsp;&nbsp;&nbsp;&nbsp;March 4, 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Edward V. Weller</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Edward V. Weller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer

## Exhibit 32.1

**Exhibit 32.1**&nbsp;&nbsp;&nbsp;&nbsp;

In accordance with Exchange Act Rules 13a-14(f) and 15d-14(f), this certification does not relate to Interactive Data Files as defined in Rule 11 of Regulation S-T.

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002 for the Chief Executive Officer

I, David G. Paulson, state and attest that:

1. I am the Chief Executive Officer of the Federal Home Loan Bank of Pittsburgh (the registrant).

2. I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

●  this Form 10-K of the registrant for the year ended December 31, 2025 (the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 ● the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.

Date: &nbsp;&nbsp;&nbsp;&nbsp;March 4, 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ David G. Paulson</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;David G. Paulson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;President & Chief Executive Officer

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

## Exhibit 32.2

**Exhibit 32.2**

In accordance with Exchange Act Rules 13a-14(f) and 15d-14(f), this certification does not relate to Interactive Data Files as defined in Rule 11 of Regulation S-T.

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002 for the Chief Financial Officer

I, Edward V. Weller, state and attest that:

1. I am the Chief Financial Officer of the Federal Home Loan Bank of Pittsburgh (the registrant).

2. I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

●  this Form 10-K of the registrant for the year ended December 31, 2025 (the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 ● the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.

Date: &nbsp;&nbsp;&nbsp;&nbsp;March 4, 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Edward V. Weller</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Edward V. Weller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer

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

## Exhibit 99.1

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FEDERAL HOME LOAN BANK OF PITTSBURGH CHARTER FOR THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS January 2026 Purpose and Authority The Audit Committee (Committee) is a committee of the Board of Directors (Board) of the Federal Home Loan Bank of Pittsburgh (Bank) that assists the Board in fulfilling its responsibilities for general oversight of: 1. The Bank's financial reporting processes and the audit of the Bank's financial statements, including the integrity of the Bank's financial statements; 2. The Bank's administrative, operating, and internal accounting controls; 3. The Bank's compliance with legal and regulatory requirements; 4. The internal audit and independent auditors' qualifications and independence 5. The performance of the Bank's internal audit function and independent auditors. The Committee has the authority to obtain advice and assistance from outside legal, accounting, or other advisors as the Committee deems necessary to carry out its duties and the Committee shall receive appropriate funding, as determined by the Committee, from the Bank for payment of compensation to the outside legal, accounting, or other advisors employed by the Committee and any administrative expenses necessary or appropriate for the Committee to carry out its duties. The Committee has the authority to seek any information it requires from the Bank officers and employees, all of whom are directed to cooperate with the Committee's requests, or external parties. Membership and Structure The Committee shall consist of at least five Directors of the Board as required by regulation 12 CFR 1239.32. The Committee shall include, to the extent practicable, a balance of representatives from community financial institutions and other members and will also include a balance of independent and member Directors. In order to provide continuity and experience, Committee members shall serve staggered terms. The Chairperson and Vice Chairperson of the Board are non-voting ex officio members of the Committee who may participate in discussion and debate, but do not count for quorum requirements. Each member of the Committee must meet the applicable financial literacy and expertise requirements. At least one member must have adequate accounting or related financial management experience to meet the applicable requirements for designation as "financial expert." The Committee shall consist of members of the Board, each of whom shall be independent. Any member of the Board shall be considered sufficiently independent if that Director does not have a disqualifying relationship with the Bank or its management that would interfere with the exercise of that Director's independent judgment. Such disqualifying relationships include, but are not limited to:

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a. Being employed by the Bank in the current year or any of the past five years; b. Accepting any compensation from the Bank other than compensation for service as a Board Director; c. Serving or having served in any of the past five years as a consultant, advisor, promoter, underwriter, or legal counsel of or to the Bank; or d. Being an immediate family member of an individual who is, or has been in any of the past five years, employed by the Bank as an executive officer. Meetings and Procedures The Committee shall convene at least four times each year, with additional meetings as the Committee deems appropriate. The Committee Chair is responsible for the agenda and minutes. The Committee shall meet as needed in separate executive sessions and also in private sessions with management, the internal auditors, and the independent auditors to facilitate full communication. The Committee shall meet at least quarterly with the Chief Internal Auditor. The Committee shall be given open access to the Bank's internal auditors, Board, the Bank executives, and independent auditors, as well as the Bank's books, records, facilities, and other personnel. Written minutes of the Committee will be prepared by the Committee liaisons for each meeting. Detailed minutes of any executive session of the Committee will not be maintained; however, topics discussed will be noted in the written minutes. The approved original minutes will be forwarded to the Corporate Secretary for distribution to the full Board and filing with the Federal Housing Finance Agency (FHFA). Charter The Committee and the Board shall annually review, assess the adequacy of and, where appropriate, amend the Committee charter; and re-adopt and re-approve the Committee charter no less often than every three years. The Committee shall prepare a written report to be included in the Bank's Annual Report on Form 10-K (Form 10-K) that will indicate that the Committee is governed by a charter, which will be included as an appendix to the Form 10-K at least once every three years, and that all the members of the Committee are independent as defined by the FHFA. The report will include that the Committee has complied with the requirements of the communication with Audit Committees and has received the written disclosures and letter from the independent auditors as required by Public Company Accounting Oversight Board (PCAOB) Rule 3526. Duties and Responsibilities Internal Audit: 1. Review and approve the Internal Audit Charter annually. 2. Select, evaluate at least annually, and determine the compensation of the Chief Internal Auditor. This includes an appropriate focus on performing audit activities and should only include incentives tied to actions and outcomes within the Chief Internal Auditor's control and influence. 3. Where appropriate, replace the Chief Internal Auditor. The Chief Internal Auditor may be removed only with the approval of the Committee. The Chief Internal Auditor shall report directly to the Committee on substantive matters and is ultimately accountable to the Committee and the Board in order to maintain independence and objectivity. 4. Provide that the Chief Internal Auditor shall have unrestricted access to the Committee without the need for any prior management knowledge or approval. 5. Review at least annually the overall scope,

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qualifications, training, resources, activities, organizational structure, significant accounting policies, and effectiveness of the internal audit function, including the quality and appropriateness of Chief Internal Auditor and staff training. 6. Review and approve the annual Internal Audit Plan and budget. 7. Oversee the internal audit function by reviewing the scope of audit services required, including information security, backup and recovery, the significant risks and exposures, and the internal audit activities and findings; including the adequacy and timeliness of follow-up on findings. 8. Periodically review and approve Internal Audit's methodology and any significant changes to the methodology. 9. Annually review the results of the internal Quality Assurance Reviews, and the results of the external Quality Assurance Review, when performed. 10. Meet in executive session at least quarterly with the Chief Internal Auditor. Annually and on behalf of the Board, the Committee should review the Committee's performance on consistency with requirements of laws, rules, and regulations that are applicable to its activities and duties, as required by AB 2020-04 Financial Reporting and Disclosure and External Audit. The support must be available to the FHFA Chief Accountant. Financial Statements: 1. Review the basis for the Bank's financial statements and the independent auditor's opinion rendered with respect to the financial statements, including the nature and extent of any significant changes in accounting principles or the application therein. 2. Ensure policies are in place that are designed to achieve disclosure and transparency regarding the Bank's true financial performance and governance practices. 3. Recommend to the Board, based on review and discussions, whether the audited financial statements should be included in the Form 10-K. 4. Review other sections of the Form 10-K, including Environmental, Social and Governance (ESG) and related regulatory filings before release and consider the accuracy and completeness of the information. 5. Discuss earnings press releases as well as corporate policies with respect to financial information. Internal Controls: 1. Ensure that senior management has established and is maintaining an adequate and effective internal control system within the Bank. This includes the review of the adequacy of the internal controls including the identification of significant changes to the internal control system, the resolution of identified material weaknesses and significant deficiencies, and the prevention or detection of management override or compromise of the internal control system. 2. Direct senior management to maintain the reliability and integrity of the accounting policies and financial reporting and disclosure practices of the Bank. 3. Review the adequacy of the Bank's SOX 404 process. 4. Review the adequacy and effectiveness of the internal controls regarding information security. Independent Auditors: 1. Oversee the work of any registered public accounting firm employed by the Bank for the purpose of preparing or issuing an audit report or related work and ensure that each such registered public accounting firm shall report directly to the Committee. 2. Be directly responsible for the appointment, compensation, retention, and oversight of the independent auditor and provide that the independent auditor reports directly to the

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Committee. Review the performance of the independent auditor annually, including its commitment to and practice of the principles of equal employment opportunity and non- discrimination in all of its business activities. Require the independent auditor to rotate the lead audit partner, and the partner responsible for reviewing the audit at least every five years or as required by applicable regulations. 3. Review and approve in advance the scope of the fiscal year's independent audit and the audit fee as documented in the engagement letter. 4. Establish policies for the independent auditors' activities and any fees beyond the core audit, approve in advance all non-audit services to be performed by the independent auditors that are not otherwise prohibited by law and associated fees, and monitor the usage and fees paid to the independent auditors. The Committee delegates to the Chair of the Committee the authority to pre-approve non-audit services not prohibited by law to be performed by the independent auditors, subject to any single request involving a fee of $100,000 or higher being circulated to all Committee members for their information and comment. The Chair shall report any decision to pre-approve such services to the full Committee at its next meeting. 5. Obtain annually a written statement from the independent auditors regarding their independence for compliance with PCAOB Rule 3526. 6. Discuss with the independent auditors the requirements under Auditing Standard No. 16, "Communications with Audit Committees," including uncorrected misstatements and the quality of the Bank's accounting principles and underlying estimates in the financial statements. 7. Review and discuss with the independent auditors their annual written statement delineating all relationships or services between the independent auditors and the Bank, or any other relationship or services that may impact their objectivity and independence. 8. Understand the extent of independent auditor review over the security for computer systems, facilities, and backup systems. 9. Set clear hiring policies for employees or former employees of the independent auditors and monitor compliance with such policies. 10. Review with management and the independent auditors: • The Bank's annual audited and quarterly financial statements, including the Bank's disclosures in "Management's Discussion and Analysis of Financial Condition and Results of Operations;" • The results of the independent auditors' audit and the independent auditors' opinion on the annual financial statements; • Changes in accounting principles or application thereof, significant judgment areas, and significant and complex transactions; and • Any disagreements between management and the independent auditors, about matters that individually or in the aggregate should be significant to the Bank's financial statements or the independent auditors' report, and any serious difficulties the independent auditors encountered in dealing with management related to the performance of the audit. 11. At least annually, obtain from and review a report by the independent auditors describing (a) the independent auditors' internal quality control procedures, and (b) any material issues raised by the most recent internal quality control review, or peer review, or by any governmental or professional inquiry or investigation within the preceding year regarding any audit performed by the independent auditors, and any steps taken to address such issues. 12. Review analysis and results from Audit Quality Indicators 13. Provide that the independent auditor shall have unrestricted access to the Committee without the need for any prior management knowledge or approval. 14. Meet in executive session at least annually with the independent auditors.

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Compliance: 1. Review the policies and procedures established by senior management designed to ensure compliance with applicable laws, regulations, and policies and monitor the results of these compliance efforts. 2. Review the results of significant investigations, examinations, or reviews performed by regulatory authorities and management's response. Other: 1. Review the policies and procedures established by senior management to assess and monitor implementation of the Bank's strategic business plan and the operating goals and objectives contained therein. 2. Oversee the Bank's internal fraud risk assessment and the concerns reporting process. 3. Oversee the Bank's travel and entertainment process. 4. Conduct or authorize investigations into any matters within the Committee's scope of responsibilities. 5. Consider such other matters regarding the Bank's financial affairs, diversity, its controls, and the internal and independent auditors of the Bank as the Committee, in its discretion, may determine to be advisable. 6. Report regularly to the Board with respect to the Committee's activities. 7. Provide an independent, direct channel of communication between the Board and the internal and independent auditors. 8. Evaluate the performance of the Committee annually. 9. Bi-annually consider the need for an independent consultant or accounting firm to conduct an evaluation of one or more accounting policy areas. 10. Establish a procedure for the receipt, retention, and treatment of complaints received regarding accounting, internal accounting controls, or auditing matters. This will include the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. 11. Provide oversight of management's actions and commitments for ensuring diversity and inclusion, as defined by statute and regulation, as appropriate, regarding workforce development and vendor opportunity. 12. The Human Resources and OMWI Committee and Audit Committee will monitor assessment and actions related to the Bank's culture for structural, behavioral, and operational elements, as applicable. 13. . Approved by the Board of Directors: December 11, 2025

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## Exhibit 99.2

**<u>Audit Committee</u>**

The Bank's Audit Committee is comprised of non-executive directors. The Audit Committee Charter is available in full on the Bank's website at https://www.fhlb-pgh.com/files/resources/724/audit.pdf

**Audit Committee Report**

March 4, 2026

The Audit Committee is composed of five non-executive directors, one of whom is a non-member director and operates under a written charter adopted by the Board of Directors that was last amended in January 2026. The Bank's Board of Directors determined that all Audit Committee members "Audit Committee financial experts" for purposes of SEC requirements. The Bank's Board of Directors elected to use the New York Stock Exchange definition of "independence" and, in doing so, concluded that four of the Directors on the Audit Committee, Directors Dionise, Jackson, Bonnell, and Crawford are not independent as they are officers or directors of member institutions which do business with the Bank, and one Director on the Audit Committee, Director Helm, is independent and does not serve as an officer or director of a Bank member. Under Federal Housing Finance Agency (FHFA) regulations applicable to members of the Audit Committee, each of the Audit Committee members is independent.

In accordance with its written charter adopted by the Board of Directors, the Audit Committee assists the Board of Directors in fulfilling its responsibility for oversight of the Bank's accounting, reporting and financial practices, including the integrity of its financial statements, among other areas. The Audit Committee is directly responsible for the appointment and oversight of the Bank's independent auditors, PricewaterhouseCoopers LLP (PwC), including review of their qualifications, independence and performance. Among other duties, the Audit Committee also oversees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the integrity of the Bank's financial statements, the Bank's accounting and financial reporting processes and systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• internal control over the Bank's financial reporting and safeguarding the Bank's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the programs, policies and systems of the Bank designed to ensure compliance with applicable laws, regulations, other legal and regulatory requirements and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the programs, policies and systems of the Bank designed to ensure the integrity and reliability of Bank operations and technology; including cybersecurity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• practices with respect to risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent auditor's qualifications and independence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of the internal audit function; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performance of the independent auditor.

The Bank is one of 11 district Federal Home Loan Banks (FHLBs) that together with the Office of Finance (OF), comprise the Federal Home Loan Bank System (System). Each FHLB operates as a separate entity with its own management, employees, and board of directors and each is regulated by the FHFA. The OF has responsibility for the issuance of consolidated obligations on behalf of the FHLBs, and for publishing combined financial reports (CFRs) of the FHLBs. Accordingly, the System has determined that it is optimal to have the same independent audit firm to coordinate and perform the separate audits of the OF and each FHLB. The FHLBs and OF collaborate in selecting, setting the compensation of, and evaluating the performance of the independent auditor, but the responsibility for the appointment and oversight of the independent auditor remains solely with the audit committees of each FHLB and the OF.

PwC has been the independent auditor for the System and the Bank since 1990. The Audit Committee engages in rigorous evaluations each year of the independent auditor. In connection with the appointment of the Bank's independent auditor, the Audit Committee's evaluation included consultation with the Audit Committees of the other FHLBs and the OF. Specific considerations included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of the risks and benefits of retaining the same firm as independent auditor versus engaging a different firm, including consideration of:

oPwC engagement audit partner, engagement quality review partner and audit team rotation;

oPwC's tenure as the Bank's and the System's independent auditor;

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obenefits associated with engaging a different firm as independent auditor; and

opotential disruption and risks associated with changing the independent auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PwC's depth and breadth of understanding of our business, operations, and accounting policies and practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PwC's historical and recent performance on the Bank's audit, including the results of an internal survey of PwC service and quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of PwC's known legal risks and significant proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• external data relating to audit quality and performance, including recent Public Company Accounting Oversight Board (PCAOB) audit quality inspection reports on PwC and its peer firms as well as metrics indicative of audit quality; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the appropriateness of PwC's fees, on both an absolute basis and as compared to its peer firms.

Audit Fees represent fees for professional services provided in connection with the audit of the Bank's annual financial statements and internal control over financial reporting and reviews of the Bank's quarterly financial statements, regulatory filings and other SEC matters.

The Audit Committee has reviewed and approved the fees paid to the independent auditor for audit, audit-related and non-audit services, and the Audit Committee has determined that PwC does not provide any non-audit services that would impair its independence. To the Audit Committee's knowledge, there are no other matters which cause the Audit Committee to believe PwC is not independent.

In accordance with SEC rules, audit partners are subject to rotation requirements to limit the number of consecutive years an individual partner may provide service to the Bank. For lead and concurring partners, the maximum number of consecutive years of service in that capacity is five years. The process for selection of the Bank's lead audit partner pursuant to this rotation policy involves a meeting between the Chairperson of the Audit Committee and the candidate for the role, as well as discussion by the full Audit Committee and management. The Bank's current lead partner has served since 2023.

Based on its reviews discussed above, the Audit Committee recommended to the Board of Directors the appointment of PwC as the Bank's independent registered public accounting firm for 2026.

The Audit Committee annually reviews its written charter and practices and has determined that its charter and practices are consistent with the applicable FHFA regulations and the provisions of the Sarbanes-Oxley Act of 2002.

Among other matters, the Audit Committee also:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed the scope of and overall plans for the external and internal audit program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussed with management and independent auditor the Bank's processes for risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussed with management and the independent auditor significant matters, including Critical Audit Matters, if any, arising during the audit and other areas of significant judgment or estimation in preparing the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed and challenged management and the independent auditor, as necessary, on new or changed accounting policy and policy alternatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed and challenged management and the independent auditor, as necessary, on how they have established materiality thresholds for establishing the controls over financial reporting and their audit process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussed with management the use of any non-GAAP measures in the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed and approved the Bank's policy with regard to the hiring of former employees of the independent auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed and approved the Bank's policy for the pre-approval of audit and permitted non-audit services by the independent auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• received reports pursuant to the Bank's policy for the submission and confidential treatment of communications from employees and others about accounting, internal controls and auditing matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed with management the scope and effectiveness of the Bank's disclosure controls and procedures, including for purposes of evaluating the accuracy and fair presentation of the Bank's financial statements in connection with

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certifications made by the Bank's President & Chief Executive Officer and Chief Financial Officer (principal financial officer); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewed significant legal developments and the Bank's processes for monitoring compliance with law and Bank policies.

The Audit Committee has established procedures for the receipt, retention and treatment, on a confidential basis, of any complaints we receive. The Bank encourages employees and third-party individuals and organizations to report concerns about the Bank's accounting controls, auditing matters or anything else that appears to involve financial or other wrongdoing.

Management has the primary responsibility for the preparation and integrity of the Bank's financial statements, accounting and financial reporting principles, and internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. The Bank's independent auditor, PwC, is responsible for performing an independent audit of the Bank's financial statements and of the effectiveness of internal control over financial reporting in accordance with the standards of the PCAOB (United States) and, with respect to the financial statements, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The internal auditors are responsible for preparing an annual audit plan and conducting internal audits under the control of the Chief Internal Auditor, who reports to the Audit Committee. The Audit Committee's responsibility is to monitor and oversee these processes. The Audit Committee met 10 times during 2025 and has regular executive sessions with both internal and independent auditors.

In this context, prior to their issuance, the Audit Committee reviewed and discussed the quarterly and annual earnings releases, financial statements (including the presentation of non-GAAP financial information) and disclosures under "Management's Discussion and Analysis of Financial Condition and Results of Operations" (including significant accounting policies and judgments) with management, the Bank's internal auditors and PwC. The Audit Committee also reviewed the Bank's policies and practices with respect to financial risk assessment, as well as its processes and practices with respect to enterprise risk assessment and management. The Audit Committee discussed with PwC matters required to be discussed by the applicable requirements of the PCAOB. The Audit Committee has also received the written disclosures and the letter from PwC required by the applicable requirements of the PCAOB regarding PwC's communications with the Audit Committee concerning independence, and has discussed with PwC its independence [Item 407(d)(3) of Reg. S-X]. The Audit Committee met with PwC and with the Bank's internal auditors, in each case, with and without other members of management present, to discuss the results of their respective examinations, the evaluations of the Bank's internal controls and the overall quality and integrity of the Bank's financial reporting. Management represented to the Audit Committee that the Bank's financial statements were prepared in accordance with accounting principles generally accepted in the United States of America.

Based on the reviews and discussions with management, the internal auditors, and PwC, as well as the review of the representations of management and PwC's report, the Audit Committee recommended to the Board of Directors, and the Board of Directors has approved, to include the audited financial statements in the Bank's Annual Report on Form 10-K for the year ended December 31, 2025, for filing with the Securities and Exchange Commission (SEC).

**The Audit Committee of the Board of Directors of the Federal Home Loan Bank of Pittsburgh**

James V. Dionise, Chair

Blanche L. Jackson, Vice Chair

Nathaniel S. Bonnell

Charles B. Crawford, Jr.

Angel L. Helm

<br>