# EDGAR Filing Document

**Accession Number:** 0001325814
**File Stem:** 0001628280-25-050473
**Filing Date:** 2025-11
**Character Count:** 254185
**Document Hash:** 50fc5133bf4e1c8fb56695f73ab9e368
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-050473.hdr.sgml**: 20251107

**ACCESSION NUMBER**: 0001628280-25-050473

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251107

**DATE AS OF CHANGE**: 20251107

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federal Home Loan Bank of Des Moines
- **CENTRAL INDEX KEY:** 0001325814
- **STANDARD INDUSTRIAL CLASSIFICATION:** FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 426000149
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51999
- **FILM NUMBER:** 251461074

**BUSINESS ADDRESS:**
- **STREET 1:** 909 LOCUST STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50309
- **BUSINESS PHONE:** 515-412-2100

**MAIL ADDRESS:**
- **STREET 1:** 909 LOCUST STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50309

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

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 10-Q** 

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

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

**OR**

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

**Commission File Number: 000-51999** 

**FEDERAL HOME LOAN BANK OF DES MOINES** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Federally chartered corporation of the United States** | **42-6000149** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |

---

**909 Locust Street** 

**Des Moines, IA** 

(Address of principal executive offices)

**50309** 

(Zip code)

Registrant's telephone number, including area code: (**515) 412-2100** 

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>   

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

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

---

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

---

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

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

---

| | |
|:---|:---|
| | Shares outstanding as of October 31, 2025 |
| Class B Stock, par value $100 | 60775601 |

---

------

---

| | | |
|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | **Table of Contents** |
| **Part I - Financial Information** | **Part I - Financial Information** | |
| Item 1. | [Financial Statements (Unaudited)](#ic2daaf281fcb421c950a3a035a26a343_16) | [3](#ic2daaf281fcb421c950a3a035a26a343_16) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Statements of Condition](#ic2daaf281fcb421c950a3a035a26a343_19) | [3](#ic2daaf281fcb421c950a3a035a26a343_19) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Statements of Income](#ic2daaf281fcb421c950a3a035a26a343_22) | [4](#ic2daaf281fcb421c950a3a035a26a343_22) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Statements of Comprehensive Income](#ic2daaf281fcb421c950a3a035a26a343_25) | [5](#ic2daaf281fcb421c950a3a035a26a343_25) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Statements of Capital](#ic2daaf281fcb421c950a3a035a26a343_28) | [6](#ic2daaf281fcb421c950a3a035a26a343_28) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Statements of Cash Flows](#ic2daaf281fcb421c950a3a035a26a343_31) | [7](#ic2daaf281fcb421c950a3a035a26a343_31) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Condensed Notes to the Unaudited Financial Statements](#ic2daaf281fcb421c950a3a035a26a343_34) | [9](#ic2daaf281fcb421c950a3a035a26a343_34) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Background Information](#ic2daaf281fcb421c950a3a035a26a343_37) | [9](#ic2daaf281fcb421c950a3a035a26a343_37) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 1 - Basis of Presentation](#ic2daaf281fcb421c950a3a035a26a343_40) | [9](#ic2daaf281fcb421c950a3a035a26a343_40) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 2 - Recently Adopted and Issued Accounting Guidance](#ic2daaf281fcb421c950a3a035a26a343_43) | [10](#ic2daaf281fcb421c950a3a035a26a343_43) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 3 - Investments](#ic2daaf281fcb421c950a3a035a26a343_52) | [10](#ic2daaf281fcb421c950a3a035a26a343_52) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 4 - Advances](#ic2daaf281fcb421c950a3a035a26a343_58) | [15](#ic2daaf281fcb421c950a3a035a26a343_58) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 5 - Mortgage Loans Held for Portfolio](#ic2daaf281fcb421c950a3a035a26a343_64) | [17](#ic2daaf281fcb421c950a3a035a26a343_64) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 6 - Derivatives and Hedging Activities](#ic2daaf281fcb421c950a3a035a26a343_70) | [19](#ic2daaf281fcb421c950a3a035a26a343_70) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 7 - Consolidated Obligations](#ic2daaf281fcb421c950a3a035a26a343_76) | [23](#ic2daaf281fcb421c950a3a035a26a343_76) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 8 - Capital](#ic2daaf281fcb421c950a3a035a26a343_82) | [25](#ic2daaf281fcb421c950a3a035a26a343_82) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 9 - Fair Value](#ic2daaf281fcb421c950a3a035a26a343_94) | [27](#ic2daaf281fcb421c950a3a035a26a343_94) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 10 - Commitments and Contingencies](#ic2daaf281fcb421c950a3a035a26a343_97) | [33](#ic2daaf281fcb421c950a3a035a26a343_97) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 11 - Activities with Stockholders](#ic2daaf281fcb421c950a3a035a26a343_103) | [34](#ic2daaf281fcb421c950a3a035a26a343_103) |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Note 12 - Activities with Other FHLBanks](#ic2daaf281fcb421c950a3a035a26a343_106) | [35](#ic2daaf281fcb421c950a3a035a26a343_106) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic2daaf281fcb421c950a3a035a26a343_112) | [37](#ic2daaf281fcb421c950a3a035a26a343_112) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#ic2daaf281fcb421c950a3a035a26a343_196) | [65](#ic2daaf281fcb421c950a3a035a26a343_196) |
| Item 4. | [Controls and Procedures](#ic2daaf281fcb421c950a3a035a26a343_199) | [66](#ic2daaf281fcb421c950a3a035a26a343_199) |
| **Part II - Other Information** | **Part II - Other Information** | |
| Item 1. | [Legal Proceedings](#ic2daaf281fcb421c950a3a035a26a343_205) | [66](#ic2daaf281fcb421c950a3a035a26a343_205) |
| Item 1A. | [Risk Factors](#ic2daaf281fcb421c950a3a035a26a343_208) | [66](#ic2daaf281fcb421c950a3a035a26a343_208) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#ic2daaf281fcb421c950a3a035a26a343_211) | [66](#ic2daaf281fcb421c950a3a035a26a343_211) |
| Item 3. | [Defaults Upon Senior Securities](#ic2daaf281fcb421c950a3a035a26a343_214) | [66](#ic2daaf281fcb421c950a3a035a26a343_214) |
| Item 4. | [Mine Safety Disclosures](#ic2daaf281fcb421c950a3a035a26a343_217) | [66](#ic2daaf281fcb421c950a3a035a26a343_217) |
| Item 5. | [Other Information](#ic2daaf281fcb421c950a3a035a26a343_220) | [66](#ic2daaf281fcb421c950a3a035a26a343_220) |
| Item 6. | [Exhibits](#ic2daaf281fcb421c950a3a035a26a343_223) | [67](#ic2daaf281fcb421c950a3a035a26a343_223) |
| [Glossary of Terms](#ic2daaf281fcb421c950a3a035a26a343_226) | [Glossary of Terms](#ic2daaf281fcb421c950a3a035a26a343_226) | [68](#ic2daaf281fcb421c950a3a035a26a343_226) |
| [Signatures](#ic2daaf281fcb421c950a3a035a26a343_229) | [Signatures](#ic2daaf281fcb421c950a3a035a26a343_229) | [69](#ic2daaf281fcb421c950a3a035a26a343_229) |

---

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**<u>PART I - FINANCIAL INFORMATION</u>**

**<u>ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)</u>**

**FEDERAL HOME LOAN BANK OF DES MOINES** 

**STATEMENTS OF CONDITION** 

**(dollars in millions, except capital stock par value)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| **ASSETS** |  |  |
| Cash and due from banks | $73 | $41 |
| Interest-bearing deposits (Note 3) | 4391 | 4096 |
| Securities purchased under agreements to resell (Note 3) | 16100 | 11950 |
| Federal funds sold (Note 3) | 8790 | 5175 |
| Investment securities (Note 3) |  |  |
| &nbsp;&nbsp;Trading securities (includes $1,442 and $533 pledged as collateral that may be repledged) | 6805 | 4720 |
| &nbsp;&nbsp;Available-for-sale securities (amortized cost of $27,542 and $25,358) | 27580 | 25331 |
| &nbsp;&nbsp;Held-to-maturity securities (fair value of $697 and $757)  | 694 | 760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | 35079 | 30811 |
| Advances (Note 4) | 109981 | 99951 |
| Mortgage loans held for portfolio, net of allowance for credit losses of $5 and $5 (Note 5) | 13948 | 11896 |
| Loans to other FHLBanks | 300 |  |
| Accrued interest receivable | 490 | 400 |
| Derivative assets, net (Note 6) | 1 | 804 |
| Other assets, net | 138 | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $189291 | $165253 |
| **LIABILITIES** |  |  |
| Deposits |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing | $1177 | $1195 |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing | 142 | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1319 | 1314 |
| Consolidated obligations (Note 7) |  |  |
| &nbsp;&nbsp;Discount notes (includes $36,090 and $52,349 at fair value held under fair value option) | 68220 | 64680 |
| &nbsp;&nbsp;&nbsp;Bonds | 108134 | 88571 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | 176354 | 153251 |
| Mandatorily redeemable capital stock (Note 8) | 31 | 9 |
| Accrued interest payable | 816 | 717 |
| Affordable Housing Program payable | 286 | 262 |
| Derivative liabilities, net (Note 6) | 41 | 6 |
| Other liabilities | 203 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES** | 179050 | 155802 |
| Commitments and contingencies (Note 10) |  |  |
| **CAPITAL (Note 8)** |  |  |
| Capital stock - Class B putable ($100 par value); 64,734,089 and 59,886,959 issued and outstanding shares | 6474 | 5989 |
| Retained earnings |  |  |
| &nbsp;&nbsp;&nbsp;Unrestricted | 2521 | 2413 |
| &nbsp;&nbsp;&nbsp;Restricted | 1210 | 1078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total retained earnings | 3731 | 3491 |
| Accumulated other comprehensive income (loss) | 36 | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL CAPITAL** | 10241 | 9451 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND CAPITAL** | $189291 | $165253 |

---

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

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

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES** 

**STATEMENTS OF INCOME** 

**(dollars in millions)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended  | For the Nine Months Ended  |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| **INTEREST INCOME** |  |  |  |  |
| Advances | $1413 | $1476 | $3883 | $4707 |
| Prepayment fees on advances, net | 4 |  | 7 | 1 |
| Interest-bearing deposits | 49 | 69 | 150 | 209 |
| Securities purchased under agreements to resell | 157 | 116 | 386 | 427 |
| Federal funds sold | 157 | 172 | 434 | 500 |
| Trading securities | 60 | 30 | 153 | 73 |
| Available-for-sale securities | 369 | 394 | 1053 | 1144 |
| Held-to-maturity securities | 9 | 10 | 26 | 31 |
| Mortgage loans held for portfolio | 158 | 117 | 436 | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 2376 | 2384 | 6528 | 7418 |
| **INTEREST EXPENSE** |  |  |  |  |
| Consolidated obligations - Discount notes | 748 | 905 | 2039 | 2630 |
| Consolidated obligations - Bonds | 1280 | 1137 | 3581 | 3749 |
| Deposits | 12 | 14 | 34 | 42 |
| Borrowings from other FHLBanks |  |  |  | 1 |
| Mandatorily redeemable capital stock | 1 | 1 | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 2041 | 2057 | 5656 | 6423 |
| **NET INTEREST INCOME** | 335 | 327 | 872 | 995 |
| Provision (reversal) for credit losses on mortgage loans |  |  |  | (2) |
| **NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES** | 335 | 327 | 872 | 997 |
| **OTHER INCOME (LOSS)** |  |  |  |  |
| Net gains (losses) on trading securities | 17 | 87 | 86 | 70 |
| Net gains (losses) on financial instruments held under fair value option | (20) | (110) | 7 | (63) |
| Net gains (losses) on derivatives | 3 | (2) | (56) | (58) |
| Other, net | 12 | 11 | 32 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (loss) | 12 | (14) | 69 | (19) |
| **OTHER EXPENSE** |  |  |  |  |
| Compensation and benefits | 20 | 18 | 62 | 58 |
| Contractual services | 7 | 7 | 20 | 20 |
| Professional fees | 3 | 5 | 10 | 14 |
| Other operating expenses | 6 | 6 | 17 | 16 |
| Voluntary community and housing contributions | 13 | 40 | 68 | 49 |
| Federal Housing Finance Agency | 3 | 3 | 11 | 10 |
| Office of Finance | 3 | 2 | 7 | 7 |
| Other, net | 4 | 5 | 15 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 59 | 86 | 210 | 191 |
| **NET INCOME BEFORE ASSESSMENTS** | 288 | 227 | 731 | 787 |
| Affordable Housing Program assessments | 29 | 23 | 73 | 79 |
| **NET INCOME** | $259 | $204 | $658 | $708 |

---

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

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES** 

**STATEMENTS OF COMPREHENSIVE INCOME** 

**(dollars in millions)** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended  | For the Nine Months Ended  |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Net income | $259 | $204 | $658 | $708 |
| Other comprehensive income (loss) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on available-for-sale securities | 88 | (49) | 65 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | 88 | (49) | 65 | 150 |
| **TOTAL COMPREHENSIVE INCOME (LOSS)** | $347 | $155 | $723 | $858 |

---

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

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES** 

**STATEMENTS OF CAPITAL** 

**(dollars and shares in millions)**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Capital Stock Class B (putable) | Capital Stock Class B (putable) | Retained Earnings | Retained Earnings | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total<br>Capital |
| | Shares | Par Value | Unrestricted | Restricted | Total | Accumulated Other Comprehensive Income (Loss) | Total<br>Capital |
| **BALANCE, JUNE 30, 2024** | 62 | $6185 | $2363 | $996 | $3359 | $19 | $9563 |
| Comprehensive income (loss) |  |  | 163 | 41 | 204 | (49) | 155 |
| Proceeds from issuance of capital stock | 21 | 2130 |  |  |  |  | 2130 |
| Repurchases/redemptions of capital stock | (24) | (2423) |  |  |  |  | (2423) |
| Cash dividends on capital stock |  |  | (141) |  | (141) |  | (141) |
| **BALANCE, SEPTEMBER 30, 2024** | 59 | $5892 | $2385 | $1037 | $3422 | $(30) | $9284 |
| **BALANCE, JUNE 30, 2025** | 67 | $6660 | $2459 | $1158 | $3617 | $(52) | $10225 |
| Comprehensive income (loss) |  |  | 207 | 52 | 259 | 88 | 347 |
| Proceeds from issuance of capital stock | 27 | 2755 |  |  |  |  | 2755 |
| Repurchases/redemptions of capital stock | (29) | (2890) |  |  |  |  | (2890) |
| Net stock reclassified (to) from mandatorily redeemable capital stock |  | (51) |  |  |  |  | (51) |
| Cash dividends on capital stock |  |  | (145) |  | (145) |  | (145) |
| **BALANCE, SEPTEMBER 30, 2025** | 65 | $6474 | $2521 | $1210 | $3731 | $36 | $10241 |
| **BALANCE, DECEMBER 31, 2023** | 69 | $6873 | $2242 | $896 | $3138 | $(180) | $9831 |
| Comprehensive income (loss) |  |  | 567 | 141 | 708 | 150 | 858 |
| Proceeds from issuance of capital stock | 66 | 6595 |  |  |  |  | 6595 |
| Repurchases/redemptions of capital stock | (76) | (7576) |  |  |  |  | (7576) |
| Cash dividends on capital stock |  |  | (424) |  | (424) |  | (424) |
| **BALANCE, SEPTEMBER 30, 2024** | 59 | $5892 | $2385 | $1037 | $3422 | $(30) | $9284 |
| **BALANCE, DECEMBER 31, 2024** | 60 | $5989 | $2413 | $1078 | $3491 | $(29) | $9451 |
| Comprehensive income (loss) |  |  | 526 | 132 | 658 | 65 | 723 |
| Proceeds from issuance of capital stock | 81 | 8150 |  |  |  |  | 8150 |
| Repurchases/redemptions of capital stock | (75) | (7525) |  |  |  |  | (7525) |
| Net stock reclassified (to) from mandatorily redeemable capital stock | (1) | (140) |  |  |  |  | (140) |
| Cash dividends on capital stock |  |  | (418) |  | (418) |  | (418) |
| **BALANCE, SEPTEMBER 30, 2025** | 65 | $6474 | $2521 | $1210 | $3731 | $36 | $10241 |

---

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

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES**

**STATEMENTS OF CASH FLOWS**

**(dollars in millions)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | For the Nine Months Ended  | For the Nine Months Ended  |
| | September 30, | September 30, |
| | 2025 | 2024 |
| **OPERATING ACTIVITIES** |  |  |
| Net income | $658 | $708 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization/(accretion) | (623) | 383 |
| &nbsp;&nbsp;&nbsp;Net (gains) losses on trading securities | (86) | (70) |
| &nbsp;&nbsp;&nbsp;Net (gains) losses on financial instruments held under fair value option | (7) | 63 |
| &nbsp;&nbsp;&nbsp;Net change in derivatives and hedging activities | (1504) | (979) |
| &nbsp;&nbsp;&nbsp;Other adjustments, net | 7 | 14 |
| &nbsp;&nbsp;&nbsp;Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | (309) | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (13) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | 99 | (248) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 14 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments | (2422) | (841) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (1764) | (133) |
| **INVESTING ACTIVITIES** |  |  |
| Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 519 | (338) |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | (4150) | 3200 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | (3615) | (1000) |
| &nbsp;&nbsp;&nbsp;Loans to other FHLBanks | (300) |  |
| Trading securities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sales | 347 | 596 |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns | 5 | 8 |
| &nbsp;&nbsp;&nbsp;Purchases | (2351) | (1513) |
| Available-for-sale securities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns | 1866 | 1703 |
| &nbsp;&nbsp;&nbsp;Purchases | (3147) | (2475) |
| Held-to-maturity securities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities and paydowns | 62 | 65 |
| Advances |  |  |
| &nbsp;&nbsp;&nbsp;Repaid | 548342 | 335641 |
| &nbsp;&nbsp;&nbsp;Originated | (557534) | (311355) |
| Mortgage loans held for portfolio |  |  |
| &nbsp;&nbsp;&nbsp;Principal collected | 944 | 732 |
| &nbsp;&nbsp;&nbsp;Purchased | (3007) | (2168) |
| Other investing activities, net | (1) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | (22020) | 23091 |

---

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

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES**

**STATEMENTS OF CASH FLOWS (continued from previous page)**

**(dollars in millions)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | For the Nine Months Ended  | For the Nine Months Ended  |
| | September 30, | September 30, |
| | 2025 | 2024 |
| **FINANCING ACTIVITIES** |  |  |
| Net change in deposits | 107 | 28 |
| Net proceeds (payments) on derivative contracts with financing elements | 2 | 1 |
| Net proceeds from issuance of consolidated obligations |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | 1175700 | 1352170 |
| &nbsp;&nbsp;&nbsp;Bonds | 86948 | 35456 |
| Payments for maturing and retiring consolidated obligations |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | (1171553) | (1347732) |
| &nbsp;&nbsp;&nbsp;Bonds | (67477) | (61468) |
| Proceeds from issuance of capital stock | 8150 | 6595 |
| Payments for repurchases/redemptions of capital stock | (7525) | (7576) |
| Payments for repurchases/redemptions of mandatorily redeemable capital stock | (118) | (3) |
| Cash dividends paid | (418) | (424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 23816 | (22953) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and due from banks | 32 | 5 |
| Cash and due from banks at beginning of the period | 41 | 31 |
| Cash and due from banks at end of the period | $73 | $36 |
| **SUPPLEMENTAL DISCLOSURES** |  |  |
| Cash Transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $6205 | $6265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Affordable Housing Program disbursements, net | 56 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voluntary housing and community investment disbursements | 56 | 43 |
| Non-Cash Transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized interest on reverse mortgage investment securities | 217 | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital stock reclassified to (from) mandatorily redeemable capital stock, net | 140 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Traded but not settled investment security purchases | 131 |  |

---

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

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FEDERAL HOME LOAN BANK OF DES MOINES** 

**CONDENSED NOTES TO THE UNAUDITED FINANCIAL STATEMENTS**

These unaudited Notes to the Financial Statements do not include all of the disclosures required by Generally Accepted Accounting Principles for annual financial statements and should be read in conjunction with the audited financial statements for the year ended December 31, 2024, which are contained in the Bank's 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2025. Throughout this Form 10-Q, acronyms and terms used are defined in the <u>[Glossary of Terms](#ic2daaf281fcb421c950a3a035a26a343_226)</u>. Unless the context otherwise requires, the term "Bank" refers to the Federal Home Loan Bank of Des Moines or its management.

**Background Information** 

The Bank is a federally chartered corporation that is exempt from all federal, state, and local taxation (except real property taxes and certain employer taxes) and is one of 11 district FHLBanks. The FHLBanks are GSEs and were created under the authority of the FHLBank Act in order to serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank is regulated by the Finance Agency.

The Bank is a cooperative, meaning it is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain capital stock to support business activities with the Bank. In return, the Bank provides a readily available source of funding and liquidity to its member institutions and eligible housing associates in Alaska, Hawaii, Idaho, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. Commercial banks, savings institutions, credit unions, insurance companies, and CDFIs may apply for membership. State and local housing associates that meet certain statutory criteria may also borrow from the Bank; while eligible to borrow, housing associates are not members of the Bank and, as such, are not permitted to hold capital stock. All stockholders, including current and former members, may receive dividends on their capital stock investment to the extent declared by the Bank's Board of Directors.

**Note 1 — Basis of Presentation**

The accompanying unaudited financial statements have been prepared in accordance with GAAP for interim financial information. In the opinion of management, the unaudited interim financial information is complete and reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of results for the interim periods. The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2025.

SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Bank's significant accounting policies during the nine months ended September 30, 2025. Descriptions of all significant accounting policies are included in "Item 8. Financial Statements and Supplementary Data — Note 1 — Summary of Significant Accounting Policies" in the 2024 Form 10-K.

SEGMENT REPORTING

The Bank engages in business activities to provide funding, liquidity, and services to members. The Bank manages these operations as one operating segment.

The Bank's primary business activities are providing advances to members and housing associates and acquiring residential mortgage loans from members. In addition, the Bank maintains a portfolio of investments. The primary source of funding and liquidity is the issuance of consolidated obligations in the capital markets. The Bank is capitalized through the purchase of capital stock by members. The Bank's net income is primarily attributable to the difference between the interest income earned on advances, mortgage loans, and investments, and the interest expense paid on consolidated obligations. The Bank manages risk and monitors financial performance across the entire balance sheet and income statement, including income concentrations with members.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

The Bank's CODM is the President and CEO. The CODM assesses performance and allocation of resources primarily based on net interest income (derived from total assets and total liabilities as reported on the Statements of Condition), and net income (as reported on the Bank's Statements of Income). These measures are used for benchmarking and budget analysis. Other items, including significant expenses, reported to the CODM include those reported on the Bank's Statements of Income, Statements of Condition, and footnotes to the financial statements.

**Note 2 — Recently Adopted and Issued Accounting Guidance**

*Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06)*

On September 18, 2025, the FASB issued guidance that updates the accounting for internal-use software costs, removing all references to development stages and clarifying when capitalization may begin. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2028. Early adoption of this guidance is permitted. The Bank is in the process of evaluating this guidance, and the effect on its financial condition, results of operations, or cash flows has not yet been determined.

*Disaggregation of Income Statement Expenses (ASU 2024-03)*

On November 4, 2024, the FASB issued guidance requiring disaggregated disclosure of income statement expenses. This guidance becomes effective for the Bank for the annual period ending December 31, 2027, and the interim periods thereafter. While early adoption of this guidance is permitted, the Bank does not intend to early adopt. The adoption of this guidance is not expected to have any effect on the Bank's financial condition, results of operations, or cash flows; however, it may require certain enhanced disclosures.

**Note 3 — Investments** 

The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold, and makes other investments in debt securities, which are classified as either trading, AFS, or HTM.

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 to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by an NRSRO. At September 30, 2025 and December 31, 2024, none of these investments were with counterparties rated below triple-B; however, as of September 30, 2025 and December 31, 2024, approximately 39 percent and 34 percent were secured securities purchased under agreements to resell with unrated counterparties. NRSRO ratings may differ from any internal ratings of the investments by the Bank.

Federal funds sold are unsecured loans that 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 September 30, 2025 and December 31, 2024, no allowance for credit losses was recorded for interest-bearing deposits and federal funds sold, as all assets were repaid or expected to be repaid according to their contractual terms. The carrying values of interest-bearing deposits and federal funds sold exclude accrued interest receivable of $17 million at both September 30, 2025 and December 31, 2024.

Securities purchased under agreements to resell are secured, short-term, and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreased below the market value required as collateral (i.e. subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at September 30, 2025 and December 31, 2024. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $2 million and $1 million at September 30, 2025 and December 31, 2024.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

DEBT SECURITIES

The Bank invests in debt securities, which are classified as either trading, AFS, or HTM. 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. A security is considered to be investment quality if it has adequate financial backing so that full and timely payment of principal and interest is expected and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security. Exceptions are allowed for certain investments targeted at low-income persons or communities, and instruments that experienced credit deterioration after their purchase by the Bank.

*Trading Securities* 

Trading securities by major security type were as follows (dollars in millions):

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Non-mortgage-backed securities |  |  |
| &nbsp;&nbsp;U.S. Treasury obligations<sup>1</sup> | $6592 | $4508 |
| &nbsp;&nbsp;Other U.S. obligations<sup>1</sup> | 56 | 59 |
| &nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority obligations | 48 | 47 |
| &nbsp;&nbsp;Other<sup>2</sup> | 109 | 106 |
| Total fair value | $6805 | $4720 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

2&nbsp;&nbsp;&nbsp;&nbsp;Consists of taxable municipal bonds.

<u>Net Gains (Losses) on Trading Securities</u>

The following table summarizes the components of "Net gains (losses) on trading securities" as presented on the Statements of Income (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Net unrealized gains (losses) on trading securities held at period-end | $17 | $87 | $79 | $70 |
| Net gains (losses) on trading securities no longer held at period-end |  |  | 7 |  |
| Net gains (losses) on trading securities | $17 | $87 | $86 | $70 |

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*AFS Securities* 

AFS securities by major security type were as follows (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Amortized<br>Cost<sup>1</sup> | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | <br>Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;Other U.S. obligations<sup>2</sup> | $30 | $— | $— | $30 |
| &nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority obligations | 284 | 25 |  | 309 |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 372 | 2 | (2) | 372 |
| &nbsp;&nbsp;Other<sup>3</sup> | 22 | 1 |  | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 708 | 28 | (2) | 734 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>2</sup> | 5700 | 18 | (1) | 5717 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 225 |  | (1) | 224 |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 20909 | 62 | (66) | 20905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 26834 | 80 | (68) | 26846 |
| Total | $27542 | $108 | $(70) | $27580 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Amortized<br>Cost<sup>1</sup> | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | <br>Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;Other U.S. obligations<sup>2</sup> | $102 | $— | $— | $102 |
| &nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority obligations | 285 | 24 |  | 309 |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 504 | 1 | (6) | 499 |
| &nbsp;&nbsp;Other<sup>3</sup> | 41 | 1 |  | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 932 | 26 | (6) | 952 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>2</sup> | 5192 | 13 | (5) | 5200 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 197 |  | (2) | 195 |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 19037 | 45 | (98) | 18984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 24426 | 58 | (105) | 24379 |
| Total | $25358 | $84 | $(111) | $25331 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $87 million and $86 million at September 30, 2025 and December 31, 2024.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

3&nbsp;&nbsp;&nbsp;&nbsp;Consists of taxable municipal bonds.

The Bank had no sales of AFS securities during the three and nine months ended September 30, 2025 and 2024.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

<u>Unrealized Losses</u>

The following tables summarize AFS securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Less than 12 Months | Less than 12 Months | 12 Months or More | 12 Months or More | Total | Total |
| | Fair<br>Value | Gross Unrealized<br>Losses | Fair<br>Value | Gross Unrealized<br>Losses | Fair<br>Value | Gross Unrealized<br>Losses |
| Non-mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Other U.S. obligations<sup>1</sup> | $4 | $— | $3 | $— | $7 | $— |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 95 | (1) | 123 | (1) | 218 | (2) |
| Total non-mortgage-backed securities | 99 | (1) | 126 | (1) | 225 | (2) |
| Mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>1</sup> | 809 | (1) | 379 |  | 1188 | (1) |
| &nbsp;&nbsp;&nbsp;GSE single-family | 99 |  | 74 | (1) | 173 | (1) |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 2674 | (7) | 7286 | (59) | 9960 | (66) |
| Total mortgage-backed securities | 3582 | (8) | 7739 | (60) | 11321 | (68) |
| Total | $3681 | $(9) | $7865 | $(61) | $11546 | $(70) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 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 | 12 Months or More | 12 Months or More | Total | Total |
| | Fair<br>Value | Gross Unrealized<br>Losses | Fair<br>Value | Gross Unrealized<br>Losses | Fair<br>Value | Gross Unrealized<br>Losses |
| Non-mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;Other U.S. obligations<sup>1</sup> | $— | $— | $21 | $— | $21 | $— |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 108 | (1) | 347 | (5) | 455 | (6) |
| Total non-mortgage-backed securities | 108 | (1) | 368 | (5) | 476 | (6) |
| Mortgage-backed securities |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>1</sup> | 995 | (4) | 808 | (1) | 1803 | (5) |
| &nbsp;&nbsp;&nbsp;GSE single-family | 45 |  | 85 | (2) | 130 | (2) |
| &nbsp;&nbsp;&nbsp;GSE multifamily | 3325 | (10) | 7587 | (88) | 10912 | (98) |
| Total mortgage-backed securities | 4365 | (14) | 8480 | (91) | 12845 | (105) |
| Total | $4473 | $(15) | $8848 | $(96) | $13321 | $(111) |

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1&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

<u>Contractual Maturity</u>

The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Contractual Maturity | Amortized<br>Cost | Fair <br>Value | Amortized<br>Cost | Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $25 | $25 | $88 | $88 |
| &nbsp;&nbsp;&nbsp;Due after one year through five years | 53 | 55 | 234 | 236 |
| &nbsp;&nbsp;&nbsp;Due after five years through ten years | 226 | 228 | 212 | 210 |
| &nbsp;&nbsp;&nbsp;Due after ten years | 404 | 426 | 398 | 418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 708 | 734 | 932 | 952 |
| Mortgage-backed securities | 26834 | 26846 | 24426 | 24379 |
| Total | $27542 | $27580 | $25358 | $25331 |

---

*HTM Securities* 

HTM securities by major security type were as follows (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Amortized<br>Cost<sup>1</sup> | Gross<br>Unrecognized<br>Gains | Gross<br>Unrecognized<br>Losses | Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority obligations | $354 | $8 | $— | $362 |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 22 |  |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 376 | 8 |  | 384 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>2</sup> | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 315 |  | (5) | 310 |
| &nbsp;&nbsp;&nbsp;Private-label | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 318 |  | (5) | 313 |
| Total | $694 | $8 | $(5) | $697 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Amortized<br>Cost<sup>1</sup> | Gross<br>Unrecognized<br>Gains | Gross<br>Unrecognized<br>Losses | Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE and Tennessee Valley Authority obligations | $358 | $6 | $(2) | $362 |
| &nbsp;&nbsp;&nbsp;State or local housing agency obligations | 29 |  |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 387 | 6 | (2) | 391 |
| Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;U.S. obligations single-family<sup>2</sup> | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;GSE single-family | 369 |  | (7) | 362 |
| &nbsp;&nbsp;&nbsp;Private-label | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total mortgage-backed securities | 373 |  | (7) | 366 |
| Total | $760 | $6 | $(9) | $757 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $10 million and $5 million at September 30, 2025 and December 31, 2024.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

The Bank had no sales of HTM securities during the three and nine months ended September 30, 2025 and 2024.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

<u>Contractual Maturity</u>

The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Contractual Maturity | Amortized<br>Cost | Fair <br>Value | Amortized<br>Cost | Fair <br>Value |
| Non-mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in one year or less | $233 | $233 | $233 | $233 |
| &nbsp;&nbsp;&nbsp;Due after one year through five years | 28 | 28 | 12 | 12 |
| &nbsp;&nbsp;&nbsp;Due after five years through ten years | 68 | 73 | 72 | 73 |
| &nbsp;&nbsp;&nbsp;Due after ten years | 47 | 50 | 70 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-mortgage-backed securities | 376 | 384 | 387 | 391 |
| Mortgage-backed securities | 318 | 313 | 373 | 366 |
| Total | $694 | $697 | $760 | $757 |

---

ALLOWANCE FOR CREDIT LOSSES ON AFS AND HTM SECURITIES

The Bank evaluates AFS and HTM investment securities for credit losses on a quarterly basis. At September 30, 2025 and December 31, 2024, the Bank had no allowance for credit losses recorded on its AFS or HTM securities. For additional details on the Bank's allowance methodology, refer to "Item 8. Financial Statements and Supplementary Data — Note 4 — Investments" in the 2024 Form 10-K.

**Note 4 — Advances** 

REDEMPTION TERM

The following table summarizes the Bank's advances outstanding by redemption term (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| Redemption Term | Amount<sup>1</sup> | Weighted<br>Average<br>Interest<br>Rate | Amount<sup>1</sup> | Weighted<br>Average<br>Interest<br>Rate |
| Overdrawn demand deposit accounts<sup>2</sup> | $— | 5.83% | $1 | 6.12% |
| Due in one year or less | 52123 | 4.25 | 45738 | 4.44 |
| Due after one year through two years | 15651 | 3.74 | 16105 | 3.84 |
| Due after two years through three years | 15752 | 4.17 | 12751 | 4.19 |
| Due after three years through four years | 11342 | 4.21 | 13328 | 4.30 |
| Due after four years through five years | 10658 | 4.10 | 7787 | 4.33 |
| Thereafter | 4396 | 4.41 | 5020 | 4.25 |
| Total par value | 109922 | 4.16% | 100730 | 4.27% |
| Premiums | 2 |  | 3 |  |
| Discounts | (24) |  | (21) |  |
| Fair value hedging adjustments | 81 |  | (761) |  |
| Total | $109981 |  | $99951 |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Excludes accrued interest receivable of $211 million and $180 million at September 30, 2025 and December 31, 2024.

2&nbsp;&nbsp;&nbsp;&nbsp;The Bank's overdrawn demand deposit accounts were less than $1 million at September 30, 2025.

The Bank offers advances to members and eligible housing associates that may be prepaid on predetermined dates (call dates) prior to maturity without incurring prepayment fees (callable advances). Other advances may require a prepayment fee or credit that makes the Bank financially indifferent to the prepayment of the advance. At September 30, 2025 and December 31, 2024, the Bank had callable advances outstanding totaling $10.6 billion and $10.4 billion.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

The following table summarizes advances by year of redemption term or next call date for callable advances (dollars in millions):

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| | | |
|:---|:---|:---|
| | Redemption Term <br>or Next Call Date | Redemption Term <br>or Next Call Date |
| | September 30,<br>2025 | December 31,<br>2024 |
| Overdrawn demand deposit accounts<sup>1</sup> | $— | $1 |
| Due in one year or less | 61889 | 54893 |
| Due after one year through two years | 14296 | 14474 |
| Due after two years through three years | 13606 | 10312 |
| Due after three years through four years | 8812 | 11080 |
| Due after four years through five years | 6972 | 4990 |
| Thereafter | 4347 | 4980 |
| Total par value | $109922 | $100730 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;The Bank's overdrawn demand deposit accounts were less than $1 million at September 30, 2025.

PREPAYMENT FEES

The Bank generally charges a prepayment fee for advances that a borrower elects to terminate prior to the stated maturity or outside of a predetermined call date. The fees charged are priced to make the Bank financially indifferent to the prepayment of the advance. For certain advances with symmetrical prepayment features, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. Prepayment fees and credits are recorded net of the hedged item basis adjustments, if applicable, in advance interest income on the Statements of Income.

ADVANCE CONCENTRATIONS

The Bank's advances are primarily concentrated in commercial banks and insurance companies. The following table summarizes advances outstanding to members exceeding 10 percent of total advances outstanding at September 30, 2025, (dollars in millions):

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| | | |
|:---|:---|:---|
| | Amount | % of Total Advances |
| Athene Annuity and Life Company | $20971 | 19% |
| Wells Fargo Bank, N.A. | 15000 | 14 |

---

ALLOWANCE FOR CREDIT LOSSES

The Bank evaluates advances for credit losses on a quarterly basis. At September 30, 2025 and December 31, 2024, none of the Bank's advances were past due, on non-accrual status, or considered impaired. The Bank considers an advance past due if a default of contractual principal or interest exists for a period of 30 days or more. In addition, there were no modifications related to advances resulting from a borrower experiencing financial difficulties during the nine months ended September 30, 2025 and 2024.

The Bank has never experienced a credit loss on its advances. Based upon the Bank's collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on its advances at September 30, 2025 and December 31, 2024. For additional information on the Bank's allowance methodology, including eligible collateral types, see "Item 8. Financial Statements and Supplementary Data — Note 5 — Advances" in the 2024 Form 10-K.

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**Note 5 — Mortgage Loans Held for Portfolio** 

Mortgage loans held for portfolio include conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained primarily through the MPF program. The Bank's mortgage loan program involves investment by the Bank in single-family mortgage loans held for portfolio, defined as one-to-four family residential properties, that are purchased from PFIs. Mortgage loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank's PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. PFIs participating in the servicing release program do not service the loans owned by the Bank. The servicing on these loans is sold concurrently by the PFI to a designated mortgage service provider.

The following table presents information on the Bank's mortgage loans held for portfolio (dollars in millions):

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Fixed rate, long-term<sup>1</sup> single-family mortgage loans | $12991 | $10961 |
| Fixed rate, medium-term<sup>2</sup> single-family mortgage loans | 876 | 856 |
| Total unpaid principal balance | 13867 | 11817 |
| Premiums | 151 | 130 |
| Discounts | (55) | (33) |
| Basis adjustments from mortgage loan purchase commitments | (10) | (13) |
| Total mortgage loans held for portfolio<sup>3</sup> | 13953 | 11901 |
| Allowance for credit losses | (5) | (5) |
| Total mortgage loans held for portfolio, net | $13948 | $11896 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Long-term is defined as an original term of greater than 15 years and up to 30 years.

2&nbsp;&nbsp;&nbsp;&nbsp;Medium-term is defined as an original term of 15 years or less.

3&nbsp;&nbsp;&nbsp;&nbsp;Excludes accrued interest receivable of $98 million and $78 million at September 30, 2025 and December 31, 2024.

The following table presents the Bank's mortgage loans held for portfolio by collateral or guarantee type (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Conventional mortgage loans | $13510 | $11452 |
| Government-guaranteed or - insured mortgage loans | 357 | 365 |
| Total unpaid principal balance | $13867 | $11817 |

---

PAYMENT STATUS OF MORTGAGE LOANS

Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor borrower performance. Past due loans are those where the borrower has failed to make contractual principal and/or interest payments for a period of 30 days or more. Other delinquency statistics include non-accrual loans and loans in process of foreclosure.

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The following tables present the payment status for conventional mortgage loans (dollars in millions):

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| | | | |
|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Origination Year | Origination Year | |
| | Prior to 2021 | 2021 to 2025 |<br>Total |
| Past due 30 - 59 days | $32 | $36 | $68 |
| Past due 60 - 89 days | 7 | 15 | 22 |
| Past due 90 - 179 days | 5 | 11 | 16 |
| Past due 180 days or more | 4 | 5 | 9 |
| Total past due mortgage loans | 48 | 67 | 115 |
| Total current mortgage loans | 3345 | 10132 | 13477 |
| Total amortized cost of mortgage loans<sup>1</sup> | $3393 | $10199 | $13592 |

---

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Origination Year | Origination Year | |
| | Prior to 2020 | 2020 to 2024 |<br>Total |
| Past due 30 - 59 days | $28 | $41 | $69 |
| Past due 60 - 89 days | 8 | 11 | 19 |
| Past due 90 - 179 days | 5 | 7 | 12 |
| Past due 180 days or more | 4 | 4 | 8 |
| Total past due mortgage loans | 45 | 63 | 108 |
| Total current mortgage loans | 2347 | 9076 | 11423 |
| Total amortized cost of mortgage loans<sup>1</sup> | $2392 | $9139 | $11531 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, price adjustment fees, basis adjustments, and direct write-downs. Amortized cost excludes accrued interest receivable.

The following tables present other delinquency statistics for mortgage loans (dollars in millions):

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| | | | |
|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| Amortized Cost | Conventional | Government-Insured | Total |
| In process of foreclosure<sup>1</sup> | $4 | $2 | $6 |
| Serious delinquency rate<sup>2</sup> | —% | 2% | —% |
| Past due 90 days or more and still accruing interest<sup>3</sup> | $— | $8 | $8 |
| Non-accrual mortgage loans<sup>4</sup> | $58 | $— | $58 |

---

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| Amortized Cost | Conventional | Government- Insured | Total |
| In process of foreclosure<sup>1</sup> | $4 | $1 | $5 |
| Serious delinquency rate<sup>2</sup> | —% | 2% | —% |
| Past due 90 days or more and still accruing interest<sup>3</sup> | $— | $7 | $7 |
| Non-accrual mortgage loans<sup>4</sup> | $49 | $— | $49 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. Serious delinquency rate on conventional loans was less than one percent at both September 30, 2025 and December 31, 2024.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents government-insured mortgage loans that are 90 days or more past due.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents conventional mortgage loans that are 90 days or more past due or for which the collection of interest or principal is doubtful. At September 30, 2025 and December 31, 2024, $27 million and $25 million of conventional mortgage loans on non-accrual status were evaluated individually and did not have a related allowance for credit losses because these loans were either previously charged off to the expected recoverable value and/or the fair value of the underlying collateral was greater than the amortized cost of the loans.

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ALLOWANCE FOR CREDIT LOSSES

The Bank evaluates mortgage loans for credit losses on a quarterly basis. At both September 30, 2025 and December 31, 2024, the Bank's allowance for credit losses on conventional mortgage loans was $5 million. The Bank recorded no credit losses on its government-insured mortgage loans at September 30, 2025 and December 31, 2024. For additional information on the Bank's allowance methodology, refer to "Item 8. Financial Statements and Supplementary Data — Note 6 — Mortgage Loans Held for Portfolio" in the 2024 Form 10-K.

**Note 6 — Derivatives and Hedging Activities** 

NATURE OF BUSINESS ACTIVITY

The Bank enters into derivative contracts to manage the interest rate risk exposures inherent in its otherwise unhedged assets and funding positions. Finance Agency regulations and the Bank's risk management policies establish guidelines for derivatives, prohibit trading in or the speculative use of derivatives, and limit credit risk arising from derivatives.

For additional information on the Bank's derivative and hedging accounting policies, see "Item 8. Financial Statements and Supplementary Data — Note 1 — Summary of Significant Accounting Policies" in the 2024 Form 10-K. For additional information on the types of derivatives and hedged items utilized by the Bank, see "Item 8. Financial Statements and Supplementary Data — Note 7 — Derivatives and Hedging Activities" in the 2024 Form 10-K.

FINANCIAL STATEMENT EFFECT AND ADDITIONAL FINANCIAL INFORMATION

The notional amount of derivatives serves as a factor in determining periodic interest payments and cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk. 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.

The following table summarizes the Bank's notional amount and fair value of derivative instruments and total derivative 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 (dollars in millions):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Notional <br>Amount | Derivative<br>Assets | Derivative<br> Liabilities | Notional <br>Amount | Derivative<br>Assets | Derivative<br> Liabilities |
| Derivatives designated as hedging instruments (fair value hedges) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | $141004 | $282 | $60 | $99170 | $200 | $60 |
| Derivatives not designated as hedging instruments (economic hedges) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | 41846 | 1 | 3 | 55732 | 1 |  |
| &nbsp;&nbsp;&nbsp;Forward settlement agreements | 152 |  |  | 91 | 1 |  |
| &nbsp;&nbsp;&nbsp;Mortgage loan purchase commitments | 165 |  |  | 101 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total derivatives not designated as hedging instruments | 42163 | 1 | 3 | 55924 | 2 |  |
| Total derivatives before netting and collateral adjustments | $183167 | 283 | 63 | $155094 | 202 | 60 |
| Netting adjustments and cash collateral<sup>1</sup> |  | (282) | (22) |  | 602 | (54) |
| Total derivative assets and derivative liabilities |  | $1 | $41 |  | $804 | $6 |

---

1 &nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At September 30, 2025 and December 31, 2024, cash collateral, including accrued interest, posted by the Bank was $1 million and $815 million. At September 30, 2025 and December 31, 2024, the Bank held cash collateral, including accrued interest, from clearing agents or counterparties of $261 million and $159 million.

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The following tables summarize the net gains (losses) on qualifying fair value hedging relationships and the amortization of basis adjustments on discontinued fair value hedging relationships recorded in net interest income, including the net interest settlements on derivatives, as well as total income (expense) by hedged product recorded on the Statements of Income (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30, 2025  | For the Three Months Ended September 30, 2025  | For the Three Months Ended September 30, 2025  | For the Three Months Ended September 30, 2025  |
| | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) |
| | Advances | AFS Securities | Consolidated Obligation Discount Notes | Consolidated Obligation Bonds |
| Total interest income (expense) recorded on the Statements of Income<sup>1</sup> | $1417 | $369 | $(748) | $(1280) |
| Gains (losses) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>2</sup> | $26 | $(20) | $4 | $8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items<sup>3</sup> | 99 | 81 | (10) | (12) |
| Net gains (losses) on fair value hedging relationships | $125 | $61 | $(6) | $(4) |

---

---

| | | | |
|:---|:---|:---|:---|
| | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 |
| | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) |
| | Advances | AFS Securities | Consolidated Obligation Bonds |
| Total interest income (expense) recorded on the Statements of Income<sup>1</sup> | $1476 | $394 | $(1137) |
| Gains (losses) on fair value hedging relationships |  |  |  |
| &nbsp;&nbsp;Interest rate contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>2</sup> | $(830) | $(637) | $172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items<sup>3</sup> | 1070 | 745 | (225) |
| Net gains (losses) on fair value hedging relationships | $240 | $108 | $(53) |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | For the Nine Months Ended September 30, 2025  | For the Nine Months Ended September 30, 2025  | For the Nine Months Ended September 30, 2025  | For the Nine Months Ended September 30, 2025  |
| | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) |
| | Advances | AFS Securities | Consolidated Obligation Discount Notes | Consolidated Obligation Bonds |
| Total interest income (expense) recorded on the Statements of Income<sup>1</sup> | $3890 | $1053 | $(2039) | $(3581) |
| Gains (losses) on fair value hedging relationships |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>2</sup> | $(472) | $(537) | $4 | $72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedged items<sup>3</sup> | 842 | 698 | (10) | (89) |
| Net gains (losses) on fair value hedging relationships | $370 | $161 | $(6) | $(17) |

---

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| | | | |
|:---|:---|:---|:---|
| | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 |
| | Interest Income (Expense) | Interest Income (Expense) | Interest Income (Expense) |
| | Advances | AFS Securities | Consolidated Obligation Bonds |
| Total interest income (expense) recorded on the Statements of Income<sup>1</sup> | $4708 | $1144 | $(3749) |
| Gains (losses) on fair value hedging relationships |  |  |  |
| &nbsp;&nbsp;Interest rate contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives<sup>2</sup> | $(11) | $2 | $(29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedged items<sup>3</sup> | 697 | 290 | (138) |
| Net gains (losses) on fair value hedging relationships | $686 | $292 | $(167) |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships.

2&nbsp;&nbsp;&nbsp;&nbsp;Includes changes in fair value and net interest settlements on derivatives.&nbsp;&nbsp;&nbsp;&nbsp;

3&nbsp;&nbsp;&nbsp;&nbsp;Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships.

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The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Advances | AFS Securities | Consolidated Obligation Discount Notes | Consolidated Obligation Bonds |
| Amortized cost of hedged asset/ liability<sup>1</sup> | $59741 | $20135 | $28394 | $28270 |
| Fair value hedging adjustments |  |  |  |  |
| &nbsp;&nbsp;Changes in fair value for active hedging relationships included in amortized cost | $93 | $(206) | $10 | $68 |
| &nbsp;&nbsp;Basis adjustments for discontinued hedging relationships included in amortized cost | (12) | (43) |  |  |
| Total amount of fair value hedging adjustments | $81 | $(249) | $10 | $68 |

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| | | | |
|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Advances | AFS Securities | Consolidated Obligation Bonds |
| Amortized cost of hedged asset/ liability<sup>1</sup> | $57580 | $17631 | $22166 |
| Fair value hedging adjustments |  |  |  |
| &nbsp;&nbsp;Changes in fair value for active hedging relationships included in amortized cost | $(733) | $(922) | $(21) |
| &nbsp;&nbsp;Basis adjustments for discontinued hedging relationships included in amortized cost | (28) | (26) | (1) |
| Total amount of fair value hedging adjustments | $(761) | $(948) | $(22) |

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1&nbsp;&nbsp;&nbsp;&nbsp;Represents the portion of amortized cost designated as a hedged item in an active or discontinued fair value hedging relationship. Amortized cost includes fair value hedging adjustments.

The following table summarizes the components of "Net gains (losses) on derivatives" as presented on the Statements of Income (dollars in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Derivatives not designated as hedging instruments (economic hedges) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | $8 | $22 | $(68) | $— |
| &nbsp;&nbsp;&nbsp;Forward settlement agreements | (1) | (5) | (3) | (4) |
| &nbsp;&nbsp;&nbsp;Mortgage loan purchase commitments | 1 | 5 | 3 | 3 |
| &nbsp;&nbsp;&nbsp;Net interest settlements | (6) | (25) | 11 | (59) |
| Total net gains (losses) related to derivatives not designated as hedging instruments | 2 | (3) | (57) | (60) |
| &nbsp;&nbsp;&nbsp;&nbsp;Price alignment amount<sup>1</sup> | 1 | 1 | 1 | 2 |
| Net gains (losses) on derivatives | $3 | $(2) | $(56) | $(58) |

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1&nbsp;&nbsp;&nbsp;&nbsp;Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract. The price alignment amount on variation margin for daily settled derivative contracts designated as hedging instruments is recorded in the same line item as the earnings effect of the hedged item.

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MANAGING CREDIT RISK ON DERIVATIVES

The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative contracts. The Bank manages credit risk through credit analysis of derivative counterparties, collateral requirements, and adherence to the requirements set forth in the Bank's policies, CFTC regulations, and Finance Agency regulations.

The Bank transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty, referred to as uncleared derivatives, or cleared through a clearing agent with a clearinghouse, referred to as cleared derivatives. Once a derivative transaction has been accepted for clearing by a clearinghouse, the derivative transaction is novated and the executing counterparty is replaced with the clearinghouse. The Bank is not a derivative dealer and does not trade derivatives for short-term profit.

For uncleared derivatives, the degree of credit risk is impacted by the extent to which master netting arrangements are included in the derivative contracts to mitigate the risk. The Bank requires collateral agreements on its uncleared derivatives.

Uncleared derivative transactions executed on or after September 1, 2022 are subject to two-way initial margin requirements as mandated by the Dodd-Frank Act, if the Bank's aggregate uncleared derivative transactions exposure to a counterparty exceeds a specified threshold. The initial margin is required to be held at a third-party custodian and does not change ownership. Rather, the party in respect of which the initial margin has been posted to the third-party custodian will have a security interest in the amount of initial margin required under the uncleared margin rules and can only take ownership upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding. As of September 30, 2025, the Bank was not required to post initial margin on its uncleared derivative transactions in accordance with the noted regulation.

For uncleared transactions, the derivative agreements are fully collateralized with a zero unsecured threshold in accordance with variation margin requirements issued by the U.S. federal bank regulatory agencies and the CFTC.

For cleared derivatives, the clearinghouse is the Bank's counterparty. The Bank utilizes two clearinghouses, CME Clearing and LCH Ltd., for all cleared derivative transactions. CME Clearing and LCH Ltd. notify the clearing agent of the required initial margin and daily variation margin requirements, and the clearing agent in turn notifies the Bank.

Each clearinghouse determines initial margin requirements which can be either cash or securities collateral. Generally credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including, but not limited to, credit rating downgrades. The Bank was not required to post additional initial margin by its clearing agent, based on credit considerations, at September 30, 2025. Variation margin requirements with each clearinghouse are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, rather than cash collateral.

The requirement that the Bank post initial and variation margin through the clearing agent, to the clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral/payments for changes in the fair value of cleared derivatives is posted daily through a clearing agent.

OFFSETTING OF DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES

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 when it has met the netting requirements. Additional information regarding these agreements is provided in "Item 8. Financial Statements and Supplementary Data — Note 1 — Summary of Significant Accounting Policies" in the 2024 Form 10-K.

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

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The following tables present the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | | | | |
| | Gross Amount Recognized<sup>1</sup> | Gross Amounts of Netting Adjustments and Cash Collateral |<br>Derivative Instruments Not Meeting Netting Requirements<sup>2</sup> |<br>Total Derivative Assets and Total Derivative Liabilities |<br>Non-cash Collateral Not Offset - Can be Sold or Repledged |<br>Net Amount<sup>3</sup> |
| Derivative Assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives | $279 | $(278) | $— | $1 | $— | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives | 4 | (4) |  |  |  |  |
| Total | $283 | $(282) | $— | $1 | $— | $1 |
| Derivative Liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives | $22 | $(17) | $— | $5 | $— | $5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives | 41 | (5) |  | 36 | 36 |  |
| Total | $63 | $(22) | $— | $41 | $36 | $5 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | |
| | Derivative Instruments Meeting Netting Requirements | Derivative Instruments Meeting Netting Requirements | | | |
| | Gross Amount Recognized<sup>1</sup> | Gross Amounts of Netting Adjustments and Cash Collateral |<br>Derivative Instruments Not Meeting Netting Requirements<sup>2</sup> |<br>Total Derivative Assets and Total Derivative Liabilities |<br>Net Amount<sup>3</sup> |
| Derivative Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives | $181 | $(180) | $— | $1 | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives | 21 | 782 |  | 803 | 803 |
| Total | $202 | $602 | $— | $804 | $804 |
| Derivative Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives | $57 | $(51) | $— | $6 | $6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives | 3 | (3) |  |  |  |
| Total | $60 | $(54) | $— | $6 | $6 |

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1&nbsp;&nbsp;&nbsp;&nbsp;Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents mortgage loan purchase commitments not subject to enforceable master netting requirements.

3&nbsp;&nbsp;&nbsp;&nbsp;Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. At September 30, 2025 and December 31, 2024, the Bank had additional net credit exposure of $1.4 billion and $0.5 billion due to instances where the Bank's non-cash collateral to a counterparty exceeded the Bank's net derivative position.

**Note 7 — Consolidated Obligations**

&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations consist of bonds and discount notes. The FHLBanks issue consolidated obligations through the Office of Finance as their agent. Bonds are issued primarily to raise intermediate- and long-term funds for the Bank and are not subject to any statutory or regulatory limits on their maturity. Discount notes are issued primarily to raise short-term funds for the Bank and have original maturities of up to one year. Discount notes sell at or below their face amount and are redeemed at par value when they mature.

&nbsp;&nbsp;&nbsp;&nbsp;Although the Bank is primarily liable for the portion of consolidated obligations issued on its behalf, it is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all FHLBank System consolidated obligations. The Finance Agency, at its discretion, may require any FHLBank to make principal and/or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that consolidated obligation. The Finance Agency has never exercised this discretionary authority. At September 30, 2025 and December 31, 2024, the total par value of outstanding consolidated obligations of the FHLBanks was $1,184.1 billion and $1,193.0 billion.

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DISCOUNT NOTES

The following table summarizes the Bank's discount notes (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | Amount | Weighted<br>Average<br>Interest<br>Rate | Amount | Weighted<br>Average<br>Interest<br>Rate |
| Par value | $68868 | 4.02% | $65250 | 4.51% |
| Discounts and concessions<sup>1</sup> | (666) |  | (586) |  |
| Fair value hedging adjustments | 10 |  |  |  |
| Fair value option adjustments | 8 |  | 16 |  |
| Total | $68220 |  | $64680 |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes.

BONDS

The following table summarizes the Bank's bonds outstanding by contractual maturity (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| Year of Contractual Maturity | Amount | Weighted<br>Average<br>Interest<br>Rate | Amount | Weighted<br>Average<br>Interest<br>Rate |
| Due in one year or less | $62571 | 4.18% | $43287 | 4.53% |
| Due after one year through two years | 27778 | 4.19 | 28333 | 4.45 |
| Due after two years through three years | 3797 | 4.05 | 2712 | 3.85 |
| Due after three years through four years | 2775 | 3.94 | 2957 | 4.19 |
| Due after four years through five years | 3195 | 3.65 | 4021 | 4.01 |
| Thereafter | 7944 | 4.42 | 7278 | 4.11 |
| Total par value | 108060 | 4.17% | 88588 | 4.41% |
| Premiums | 29 |  | 30 |  |
| Discounts and concessions<sup>1</sup> | (23) |  | (25) |  |
| Fair value hedging adjustments | 68 |  | (22) |  |
| Total | $108134 |  | $88571 |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds.

The following table summarizes the Bank's bonds outstanding by call features (dollars in millions):

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Non-callable or non-putable | $61394 | $56373 |
| Callable | 46666 | 32215 |
| Total par value | $108060 | $88588 |

---

The following table summarizes the Bank's bonds outstanding by year of contractual maturity or next call date (dollars in millions):

---

| | | |
|:---|:---|:---|
| Year of Contractual Maturity or Next Call Date | September 30,<br>2025 | December 31,<br>2024 |
| Due in one year or less | $96747 | $69363 |
| Due after one year through two years | 5744 | 12793 |
| Due after two years through three years | 2790 | 2531 |
| Due after three years through four years | 1406 | 1952 |
| Due after four years through five years | 948 | 1399 |
| Thereafter | 425 | 550 |
| Total par value | $108060 | $88588 |

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**Note 8 — Capital**

CAPITAL STOCK

The Bank's capital stock has a par value of $100 per share, and all shares are issued, redeemed, and repurchased only at the stated par value. The Bank issues a single class of capital stock (Class B capital stock) and has two subclasses of Class B capital stock: membership and activity-based. Each member must purchase and hold membership capital stock in an amount equal to 0.06 percent of its total assets as of the preceding December 31<sup>st</sup>, subject to a cap of $10 million and a floor of $10,000. Each member is also required to purchase activity-based capital stock equal to 4.50 percent of its outstanding advances, 4.00 percent of its outstanding mortgage loans, and 0.10 percent of its outstanding standby letters of credit. All capital stock issued is subject to a notice of redemption period of five years.

The capital stock requirements established in the Bank's Capital Plan are designed so that the Bank can remain adequately capitalized as member activity changes. The Bank's Board of Directors may make adjustments to the capital stock requirements within ranges established in the Capital Plan.

EXCESS STOCK

Capital stock owned by members in excess of their investment requirement is deemed excess capital stock. Under its Capital Plan, the Bank, at its discretion and upon 15 days written notice, may repurchase excess membership capital stock. The Bank, at its discretion, may also repurchase excess activity-based capital stock to the extent that (i) the excess capital stock balance exceeds an operational threshold set forth in the Capital Plan, which is currently set at zero, or (ii) a member submits a notice to redeem all or a portion of the excess activity-based capital stock. At September 30, 2025 and December 31, 2024, the Bank had no excess capital stock outstanding.

MANDATORILY REDEEMABLE CAPITAL STOCK

The Bank reclassifies capital stock subject to redemption from equity to a liability, which represents MRCS, at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of intention to withdraw from membership, becomes ineligible for continuing membership, or attains non-member status by merger or consolidation, charter termination, or other involuntary termination from membership. Dividends on MRCS are classified as interest expense on the Statements of Income.

The following table summarizes changes in MRCS (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30,  | For the Three Months Ended September 30,  | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Balance, beginning of period | $34 | $10 | $9 | $12 |
| &nbsp;&nbsp;&nbsp;Capital stock reclassified to (from) MRCS, net | 51 |  | 140 |  |
| &nbsp;&nbsp;&nbsp;Net payments for repurchases/redemptions of MRCS | (54) | (1) | (118) | (3) |
| Balance, end of period | $31 | $9 | $31 | $9 |

---

The following table summarizes the Bank's MRCS by year of contractual redemption (dollars in millions):

---

| | | |
|:---|:---|:---|
| Year of Contractual Redemption<sup>1</sup> | September 30,<br>2025 | December 31,<br>2024 |
| Due in one year or less | $4 | $— |
| Due after one year through two years |  | 5 |
| Due after four years through five years | 23 |  |
| Past contractual redemption date due to outstanding activity with the Bank | 4 | 4 |
| Total | $31 | $9 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;At the Bank's election, MRCS may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption.

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RESTRICTED RETAINED EARNINGS

The Bank entered into a JCE Agreement with all of the other FHLBanks in 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the Bank over time. Under the JCE Agreement, each FHLBank is required to allocate 20 percent of its quarterly net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of its average balance of outstanding consolidated obligations for the calendar quarter. The restricted retained earnings are not available to pay dividends. At September 30, 2025 and December 31, 2024, the Bank's restricted retained earnings account totaled $1.2 billion and $1.1 billion.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes changes in AOCI (dollars in millions):

---

| | | | |
|:---|:---|:---|:---|
| | Net unrealized gains (losses) on AFS securities (Note 3) | Postretirement benefits | Total AOCI |
| **Balance, June 30, 2024** | $21 | $(2) | $19 |
| Other comprehensive income (loss) before reclassifications |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on AFS securities | (49) |  | (49) |
| Net current period other comprehensive income (loss) | (49) |  | (49) |
| **Balance, September 30, 2024** | $(28) | $(2) | $(30) |
| **Balance, June 30, 2025** | $(50) | $(2) | $(52) |
| Other comprehensive income (loss) before reclassifications |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on AFS securities | 88 |  | 88 |
| Net current period other comprehensive income (loss) | 88 |  | 88 |
| **Balance, September 30, 2025** | $38 | $(2) | $36 |
| **Balance, December 31, 2023** | $(178) | $(2) | $(180) |
| Other comprehensive income (loss) before reclassifications |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on AFS securities | 150 |  | 150 |
| Net current period other comprehensive income (loss) | 150 |  | 150 |
| **Balance, September 30, 2024** | $(28) | $(2) | $(30) |
| **Balance, December 31, 2024** | $(27) | $(2) | $(29) |
| Other comprehensive income (loss) before reclassifications |  |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses) on AFS securities | 65 |  | 65 |
| Net current period other comprehensive income (loss) | 65 |  | 65 |
| **Balance, September 30, 2025** | $38 | $(2) | $36 |

---

REGULATORY CAPITAL REQUIREMENTS

The Bank is subject to three regulatory capital requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk-based capital*. The Bank must maintain at all times permanent capital greater than or equal to the sum of its credit, market, and operational risk capital requirements, all calculated in accordance with Finance Agency regulations. Only permanent capital, defined as the amounts paid-in for Class B capital stock (including MRCS), and retained earnings can satisfy this risk-based capital requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Regulatory capital*. The Bank is required to maintain a minimum four percent capital-to-asset ratio, which is defined as total regulatory capital divided by total assets. Total regulatory capital includes Class B stock (including MRCS) and retained earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Leverage capital*. The Bank is required to maintain a minimum five percent leverage ratio, which is defined as the sum of permanent capital weighted 1.5 times and nonpermanent capital weighted 1.0 times, divided by total assets. The Bank did not hold any nonpermanent capital at September 30, 2025 and December 31, 2024.

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In addition to the requirements previously discussed, the Capital Stock AB requires each FHLBank to maintain at all times a ratio of at least two percent of capital stock to total assets. For purposes of the Capital Stock AB, capital stock includes MRCS. The capital stock to total assets ratio is measured on a daily average basis at month end.

If the Bank's capital falls below the required levels, the Finance Agency has authority to take actions necessary to return it to levels that it deems to be consistent with safe and sound business operations.

The following table shows the Bank's compliance with the Finance Agency's regulatory capital requirements (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | Required | Actual | Required | Actual |
| Regulatory capital requirements |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Risk-based capital | $1939 | $10236 | $1499 | $9489 |
| &nbsp;&nbsp;&nbsp;Regulatory capital | $7572 | $10236 | $6610 | $9489 |
| &nbsp;&nbsp;&nbsp;Leverage capital | $9465 | $15354 | $8263 | $14233 |
| &nbsp;&nbsp;&nbsp;Capital-to-assets ratio | 4.00% | 5.41% | 4.00% | 5.74% |
| &nbsp;&nbsp;&nbsp;Capital stock-to-assets ratio | 2.00% | 3.33% | 2.00% | 3.53% |
| &nbsp;&nbsp;&nbsp;Leverage ratio | 5.00% | 8.11% | 5.00% | 8.61% |

---

**Note 9 — Fair Value**

Fair value amounts are determined by the Bank using available market information and reflect the Bank's best judgment of appropriate valuation methods. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit price). The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Level 1 Inputs.* Quoted prices (unadjusted) for identical assets or liabilities in an active market that the Bank can access on the measurement date. An active market for an 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;&nbsp;&nbsp;&nbsp;&nbsp;*• Level 2 Inputs.* Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, (iii) 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 (iv) market-corroborated inputs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Level 3 Inputs.* Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which may include pricing models, discounted cash flow models, or similar techniques.

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. The Bank had no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy during the nine months ended September 30, 2025 and 2024.

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The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, financial instruments held under the fair value option, and certain other assets at fair value on a recurring basis, and on occasion certain impaired mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. The fair values do not represent an estimate of the overall market value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value |
| Financial Instruments | Carrying Value | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral<sup>1</sup> | Total |
| Assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $73 | $73 | $— | $— | $— | $73 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 4391 |  | 4391 |  |  | 4391 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 16100 |  | 16100 |  |  | 16100 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 8790 |  | 8790 |  |  | 8790 |
| &nbsp;&nbsp;&nbsp;Trading securities | 6805 |  | 6805 |  |  | 6805 |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities | 27580 |  | 27580 |  |  | 27580 |
| &nbsp;&nbsp;&nbsp;Held-to-maturity securities | 694 |  | 695 | 2 |  | 697 |
| &nbsp;&nbsp;&nbsp;Advances | 109981 |  | 110063 |  |  | 110063 |
| &nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio, net | 13948 |  | 13327 | 34 |  | 13361 |
| &nbsp;&nbsp;&nbsp;Loans to other FHLBanks | 300 |  | 300 |  |  | 300 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 490 |  | 490 |  |  | 490 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net | 1 |  | 283 |  | (282) | 1 |
| &nbsp;&nbsp;&nbsp;Other assets | 49 | 49 |  |  |  | 49 |
| Liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | (1319) |  | (1319) |  |  | (1319) |
| &nbsp;&nbsp;&nbsp;Consolidated obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>2</sup> | (68220) |  | (68218) |  |  | (68218) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | (108134) |  | (107641) |  |  | (107641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | (176354) |  | (175859) |  |  | (175859) |
| &nbsp;&nbsp;&nbsp;MRCS | (31) | (31) |  |  |  | (31) |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | (816) |  | (816) |  |  | (816) |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net | (41) |  | (63) |  | 22 | (41) |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.

2&nbsp;&nbsp;&nbsp;&nbsp;Includes $36.1 billion of consolidated obligation discount notes recorded under fair value option at September 30, 2025.

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The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments (dollars in millions):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value |
| Financial Instruments | Carrying Value | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral<sup>1</sup> | Total |
| Assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and due from banks | $41 | $41 | $— | $— | $— | $41 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 4096 |  | 4096 |  |  | 4096 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 11950 |  | 11950 |  |  | 11950 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 5175 |  | 5175 |  |  | 5175 |
| &nbsp;&nbsp;&nbsp;Trading securities | 4720 |  | 4720 |  |  | 4720 |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities | 25331 |  | 25331 |  |  | 25331 |
| &nbsp;&nbsp;&nbsp;Held-to-maturity securities | 760 |  | 755 | 2 |  | 757 |
| &nbsp;&nbsp;&nbsp;Advances | 99951 |  | 100040 |  |  | 100040 |
| &nbsp;&nbsp;&nbsp;Mortgage loans held for portfolio, net | 11896 |  | 10940 | 32 |  | 10972 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 400 |  | 400 |  |  | 400 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net | 804 |  | 202 |  | 602 | 804 |
| &nbsp;&nbsp;&nbsp;Other assets | 44 | 44 |  |  |  | 44 |
| Liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | (1314) |  | (1314) |  |  | (1314) |
| &nbsp;&nbsp;&nbsp;Consolidated obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>2</sup> | (64680) |  | (64682) |  |  | (64682) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds | (88571) |  | (87778) |  |  | (87778) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consolidated obligations | (153251) |  | (152460) |  |  | (152460) |
| &nbsp;&nbsp;&nbsp;MRCS | (9) | (9) |  |  |  | (9) |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | (717) |  | (717) |  |  | (717) |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net | (6) |  | (60) |  | 54 | (6) |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.

2&nbsp;&nbsp;&nbsp;&nbsp;Includes $52.3 billion of consolidated obligation discount notes recorded under fair value option at December 31, 2024.

SUMMARY OF VALUATION TECHNIQUES AND PRIMARY INPUTS

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 non-recurring basis on the Statements of Condition are disclosed in "Item 8. Financial Statements and Supplementary Data — Note 12 — Fair Value" in the 2024 Form 10-K. There have been no significant changes in the valuation methodologies during the nine months ended September 30, 2025.

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FAIR VALUE ON A RECURRING AND NON-RECURRING BASIS

The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value on the Statements of Condition (dollars in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral<sup>1</sup> | Total |
| Recurring fair value measurements |  |  |  |  |  |
| Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trading securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $— | $6592 | $— | $— | $6592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations |  | 56 |  |  | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 48 |  |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-MBS |  | 109 |  |  | 109 |
| &nbsp;&nbsp;&nbsp;Total trading securities |  | 6805 |  |  | 6805 |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations |  | 30 |  |  | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 309 |  |  | 309 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local housing agency obligations |  | 372 |  |  | 372 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-MBS |  | 23 |  |  | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family MBS |  | 5717 |  |  | 5717 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family MBS |  | 224 |  |  | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily MBS |  | 20905 |  |  | 20905 |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities |  | 27580 |  |  | 27580 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-rate related |  | 283 |  | (282) | 1 |
| &nbsp;&nbsp;&nbsp;Total derivative assets, net |  | 283 |  | (282) | 1 |
| &nbsp;&nbsp;&nbsp;Other assets | 49 |  |  |  | 49 |
| Total recurring assets at fair value | $49 | $34668 | $— | $(282) | $34435 |
| Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;Discount notes<sup>2</sup> | $— | $(36090) | $— | $— | $(36090) |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-rate related |  | (63) |  | 22 | (41) |
| &nbsp;&nbsp;&nbsp;Total derivative liabilities, net |  | (63) |  | 22 | (41) |
| Total recurring liabilities at fair value | $— | $(36153) | $— | $22 | $(36131) |
| Non-recurring fair value measurements |  |  |  |  |  |
| Assets |  |  |  |  |  |
| &nbsp;&nbsp;Impaired mortgage loans held for portfolio<sup>3</sup> | $— | $— | $3 | $— | $3 |
| Total non-recurring assets at fair value | $— | $— | $3 | $— | $3 |

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1&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents financial instruments recorded under the fair value option.

3&nbsp;&nbsp;&nbsp;&nbsp;These assets are subject to fair value adjustments in certain circumstances. The fair value information presented is as of the date the fair value adjustment was recorded during the nine months ended September 30, 2025.

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The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value on the Statements of Condition (dollars in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral<sup>1</sup> | Total |
| Recurring fair value measurements |  |  |  |  |  |
| Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trading securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations | $— | $4508 | $— | $— | $4508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations |  | 59 |  |  | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 47 |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-MBS |  | 106 |  |  | 106 |
| &nbsp;&nbsp;&nbsp;Total trading securities |  | 4720 |  |  | 4720 |
| &nbsp;&nbsp;&nbsp;Available-for-sale securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations |  | 102 |  |  | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 309 |  |  | 309 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local housing agency obligations |  | 499 |  |  | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-MBS |  | 42 |  |  | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family MBS |  | 5200 |  |  | 5200 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family MBS |  | 195 |  |  | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily MBS |  | 18984 |  |  | 18984 |
| &nbsp;&nbsp;&nbsp;Total available-for-sale securities |  | 25331 |  |  | 25331 |
| &nbsp;&nbsp;&nbsp;Derivative assets, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-rate related |  | 201 |  | 602 | 803 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forward settlement agreements |  | 1 |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Total derivative assets, net |  | 202 |  | 602 | 804 |
| &nbsp;&nbsp;&nbsp;Other assets | 44 |  |  |  | 44 |
| Total recurring assets at fair value | $44 | $30253 | $— | $602 | $30899 |
| Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;Discount notes<sup>2</sup> | $— | $(52349) | $— | $— | $(52349) |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-rate related |  | (60) |  | 54 | (6) |
| &nbsp;&nbsp;&nbsp;Total derivative liabilities, net |  | (60) |  | 54 | (6) |
| Total recurring liabilities at fair value | $— | $(52409) | $— | $54 | $(52355) |
| Non-recurring fair value measurements |  |  |  |  |  |
| Assets |  |  |  |  |  |
| &nbsp;&nbsp;Impaired mortgage loans held for portfolio<sup>3</sup> | $— | $— | $5 | $— | $5 |
| Total non-recurring assets at fair value | $— | $— | $5 | $— | $5 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents financial instruments recorded under the fair value option.

3&nbsp;&nbsp;&nbsp;&nbsp;These assets are subject to fair value adjustments in certain circumstances. The fair value information presented is as of the date the fair value adjustment was recorded during the year ended December 31, 2024.

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

FAIR VALUE OPTION

The fair value option provides an irrevocable option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, and unrecognized firm commitments. It requires entities to display the fair value of those assets and liabilities for which it has chosen to use fair value on the face of the Statements of Condition. Fair value is used for both the initial and subsequent measurement of the designated assets, liabilities, and commitments, with the changes in fair value recognized in net income.

The Bank elects the fair value option for certain financial instruments when a hedge relationship does not qualify for hedge accounting. These fair value elections are made primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not.

For financial instruments recorded under the fair value option, the related contractual interest income, interest expense, and the discount amortization on fair value option discount notes are recorded as part of net interest income on the Statements of Income. The remaining changes are recorded as "Net gains (losses) on financial instruments held under fair value option" on the Statements of Income.

For the three and nine months ended September 30, 2025, the Bank recorded net losses of $20 million and net gains of $7 million on financial instruments held under fair value option (i.e., discount notes) compared to net losses of $110 million and $63 million for the same periods in 2024, and the Bank determined no credit risk adjustments for nonperformance were necessary. In determining that no credit risk adjustments were necessary, the Bank considered the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank is a federally chartered GSE, and as a result of this status, the Bank's consolidated obligations have historically received the same credit rating as the government bond credit rating of the United States, even though they are not obligations of the United States and are not guaranteed by the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all consolidated obligations of the FHLBanks.

The following tables summarize the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions):

---

| | | | |
|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal |
| Discount Notes | $36351 | $36090 | $(261) |

---

---

| | | | |
|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal |
| Discount Notes | $52848 | $52349 | $(499) |

---

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**Note 10 — Commitments and Contingencies** 

The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | December 31, 2024 |
| | Expire <br>within one year | Expire <br>after one year | Total | Total |
| Standby letters of credit<sup>1,2</sup> | $17298 | $134 | $17432 | $20150 |
| Standby bond purchase agreements<sup>2</sup> | 100 | 1128 | 1228 | 1024 |
| Commitments to purchase mortgage loans | 165 |  | 165 | 101 |
| Commitment to issue bonds<sup>3</sup> | 5920 |  | 5920 | 665 |
| Commitments to issue discount notes<sup>3</sup> | 5074 |  | 5074 |  |
| Commitments to fund advances<sup>2,4</sup> | 302 |  | 302 | 227 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Excludes commitments to issue standby letters of credit, when applicable. At both September 30, 2025 and December 31, 2024, the Bank had no commitments to issue standby letters of credit.

2&nbsp;&nbsp;&nbsp;&nbsp;The Bank has deemed it unnecessary to record any liability for credit losses on these agreements at September 30, 2025 and December 31, 2024, based on its credit extension and collateral policies.

3&nbsp;&nbsp;&nbsp;&nbsp;The Bank enters into commitments to issue consolidated obligations in the normal course of its business, that generally settle within 30 calendar days.

4&nbsp;&nbsp;&nbsp;&nbsp;The Bank enters into commitments to fund advances up to 24 months in the future.

*Standby Letters of Credit*. The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed with members for a fee. If the Bank is required to make payment for a beneficiary's draw, the member either reimburses the Bank for the amount drawn or, subject to the Bank's discretion, the amount drawn may be converted into a collateralized advance to the member. The maturities of standby letters of credit outstanding at September 30, 2025, are currently no later than 2038. The carrying value of guarantees related to standby letters of credit are recorded in "Other liabilities" on the Statements of Condition and amounted to $8 million and $7 million at September 30, 2025 and December 31, 2024.

The Bank monitors the creditworthiness of its members and non-member housing associates that have standby letters of credit. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit. All 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.

*Standby Bond Purchase Agreements*. The Bank has entered into standby bond purchase agreements with state housing finance agencies within its district pursuant to which, for a fee, it agrees to serve as a standby liquidity provider if required, to purchase and hold the bonds until the designated marketing agent can find a suitable investor or the state housing finance agency repurchases the bonds according to a schedule established by the agreement. Each standby bond purchase agreement includes the provisions under which the Bank would be required to purchase the bonds and typically allows the Bank to terminate the agreement upon the occurrence of a default event of the issuer. At September 30, 2025, the Bank had standby bond purchase agreements with eight state housing finance agencies. The maturities of standby bond purchase agreements outstanding at September 30, 2025, are currently no later than 2030. During the nine months ended September 30, 2025 and 2024, the Bank was not required to purchase any bonds under these agreements.

*Commitments to Purchase Mortgage Loans*. The Bank enters into commitments that unconditionally obligate it to purchase mortgage loans from its members. These commitments are considered derivatives and their estimated fair value at September 30, 2025 and December 31, 2024, is reported in "<u>[Note 6 — Derivatives and Hedging Activities](#ic2daaf281fcb421c950a3a035a26a343_70)</u>" as mortgage loan purchase commitments.

*Joint and Several Liability*. The FHLBanks have joint and several liability for all consolidated obligations issued. Accordingly, if an FHLBank were unable to repay any consolidated obligation for which it is the primary obligor, each of the other FHLBanks could be called upon by the Finance Agency to repay all or part of such obligations. No FHLBank has ever been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank. At September 30, 2025 and December 31, 2024, the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which the Bank is jointly and severally liable was $1,007.2 billion and $1,039.2 billion.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

*Other Commitments.* For each MPF master commitment, the Bank's potential loss exposure prior to the PFI's credit enhancement obligation is estimated and tracked in a FLA. For absorbing certain losses in excess of the FLA, PFIs are paid a credit enhancement fee, a portion of which may be performance-based. To the extent the Bank experiences losses under the FLA, it may be able to recapture performance-based credit enhancement fees paid to the PFI to offset these losses. The FLA balance for all MPF master commitments with a PFI credit enhancement obligation was $216 million and $197 million at September 30, 2025 and December 31, 2024.

*Pledged Collateral.* The Bank pledged securities, as collateral, related to derivatives. See "<u>[Note 6 — Derivatives and Hedging Activities](#ic2daaf281fcb421c950a3a035a26a343_70)</u>" for additional information about the Bank's pledged collateral.

*Legal Proceedings*. The Bank is subject to various pending legal proceedings arising in the normal course of business. The Bank is not currently aware of any pending or threatened legal proceedings to which it is a party that it believes could have a material impact on its financial condition, results of operations, or cash flows.

**Note 11 — Activities with Stockholders** 

The Bank is a cooperative. This means the Bank is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain membership capital stock based on a percentage of their total assets, subject to a minimum and maximum amount, as of the preceding December 31<sup>st</sup>. Each member is also required to purchase and maintain activity-based capital stock to support certain business activities with the Bank. All transactions with stockholders are entered into in the ordinary course of business. Refer to "<u>[Note 8 — Capital](#ic2daaf281fcb421c950a3a035a26a343_82)</u>" for more information on our capital stock requirements.

TRANSACTIONS WITH DIRECTORS' FINANCIAL INSTITUTIONS

In the normal course of business, the Bank extends credit to its members whose directors and officers serve as Bank directors (Directors' Financial Institutions). Finance Agency regulations require that transactions with Directors' Financial Institutions be made on the same terms and conditions as those with any other member.

The following table summarizes the Bank's outstanding transactions with Directors' Financial Institutions (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | Amount | % of Total | Amount | % of Total |
| Advances | $823 | 1 | $1127 | 1 |
| Mortgage loans | 574 | 4 | 190 | 2 |
| Deposits | 19 | 1 | 12 | 1 |
| Capital stock | 71 | 1 | 78 | 1 |

---

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

BUSINESS CONCENTRATIONS

The Bank considers itself to have business concentrations with stockholders owning 10 percent or more of total capital stock outstanding (including MRCS). At September 30, 2025 and December 31, 2024, the Bank had the following business concentrations with stockholders (dollars in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Capital Stock | Capital Stock | | Mortgage | Interest |
| Stockholder | Amount | % of Total<sup>1</sup> | Advances | Loans | Income<sup>2</sup> |
| Athene Annuity and Life Company<sup>3</sup> | $954 | 15 | $20971 | $— | $627 |
| Wells Fargo, N.A.<sup>4</sup> | 696 | 11 | 15000 | 5 | 251 |
| Superior Guaranty Insurance Company<sup>5</sup> | 4 |  |  | 98 |  |
| Total | $1654 | 26 | $35971 | $103 | $878 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| | Capital Stock | Capital Stock | | Interest |
| Stockholder | Amount | % of Total<sup>1</sup> | Advances | Income<sup>2</sup> |
| Athene Annuity and Life Company<sup>3</sup> | $711 | 12 | $15571 | $473 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to applicable Finance Agency regulations, the Bank's voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank's capital stock.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents interest income earned on advances during the nine months ended September 30, 2025 and the year ended December 31, 2024.

3&nbsp;&nbsp;&nbsp;&nbsp;Athene Annuity and Life Company had no standby letters of credit outstanding as of September 30, 2025 and December 31, 2024.

4&nbsp;&nbsp;&nbsp;&nbsp;Wells Fargo, N.A. had standby letters of credit outstanding totaling $10.9 billion as of September 30, 2025.

5&nbsp;&nbsp;&nbsp;&nbsp;Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. Superior Guaranty Insurance Company had no standby letters of credit outstanding as of September 30, 2025.

**Note 12 — Activities with Other FHLBanks** 

&nbsp;&nbsp;&nbsp;&nbsp;*Overnight Funds*. The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. The following table summarizes loan activity to other FHLBanks during the nine months ended September 30, 2025 and 2024 (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| Other FHLBank | Beginning<br>Balance | Loans | Principal<br>Repayment | Ending<br>Balance |
| 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Boston | $— | $300 | $(300) | $— |
| &nbsp;&nbsp;&nbsp;Chicago |  | 10 | (10) |  |
| &nbsp;&nbsp;&nbsp;Indianapolis |  | 500 | (500) |  |
| &nbsp;&nbsp;&nbsp;San Francisco |  | 800 | (500) | 300 |
|  | $— | $1610 | $(1310) | $300 |
| 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Boston | $— | $200 | $(200) | $— |
| &nbsp;&nbsp;&nbsp;Chicago |  | 5 | (5) |  |
|  | $— | $205 | $(205) | $— |

---

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

The following table summarizes borrowing activity from other FHLBanks during the nine months ended September 30, 2025 and 2024 (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| Other FHLBank | Beginning Balance | Borrowing | Principal Payment | Ending Balance |
| 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cincinnati | $— | $250 | $(250) | $— |
| &nbsp;&nbsp;&nbsp;New York |  | 700 | (700) |  |
| &nbsp;&nbsp;&nbsp;San Francisco |  | 500 | (500) |  |
| &nbsp;&nbsp;&nbsp;Topeka |  | 250 | (250) |  |
|  | $— | $1700 | $(1700) | $— |
| 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Chicago | $— | $2000 | $(2000) | $— |
| &nbsp;&nbsp;&nbsp;Cincinnati |  | 500 | (500) |  |
|  | $— | $2500 | $(2500) | $— |

---

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**<u>ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>**

Our Management's Discussion and Analysis (MD&A) of Financial Condition and Results of Operations should be read in conjunction with our financial statements and condensed notes at the beginning of this Form 10-Q and in conjunction with our MD&A and Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on March 7, 2025. Our MD&A is designed to provide information that will help the reader develop a better understanding of our financial statements, key financial statement changes from quarter to quarter, and the primary factors driving those changes. Throughout this Form 10-Q, acronyms and terms used are defined in the <u>[Glossary of Terms](#ic2daaf281fcb421c950a3a035a26a343_226)</u>. Unless the context otherwise requires, the terms "we," "us," and "our" refer to the Federal Home Loan Bank of Des Moines or its management. Our MD&A is organized as follows:

---

| | |
|:---|:---|
| **CONTENTS** | **CONTENTS** |
| [Forward-Looking Information](#ic2daaf281fcb421c950a3a035a26a343_115) | [38](#ic2daaf281fcb421c950a3a035a26a343_115) |
| [Executive Overview](#ic2daaf281fcb421c950a3a035a26a343_118) | [39](#ic2daaf281fcb421c950a3a035a26a343_118) |
| [Conditions in the Financial Markets](#ic2daaf281fcb421c950a3a035a26a343_124) | [40](#ic2daaf281fcb421c950a3a035a26a343_124) |
| [Selected Financial Data](#ic2daaf281fcb421c950a3a035a26a343_127) | [41](#ic2daaf281fcb421c950a3a035a26a343_127) |
| [Results of Operations](#ic2daaf281fcb421c950a3a035a26a343_130) | [42](#ic2daaf281fcb421c950a3a035a26a343_130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Net Interest Income](#ic2daaf281fcb421c950a3a035a26a343_136) | [42](#ic2daaf281fcb421c950a3a035a26a343_136) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Other Income (Loss)](#ic2daaf281fcb421c950a3a035a26a343_139) | [45](#ic2daaf281fcb421c950a3a035a26a343_139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Hedging Activities](#ic2daaf281fcb421c950a3a035a26a343_142) | [45](#ic2daaf281fcb421c950a3a035a26a343_142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Other Expense](#ic2daaf281fcb421c950a3a035a26a343_148) | [50](#ic2daaf281fcb421c950a3a035a26a343_148) |
| [Statements of Condition](#ic2daaf281fcb421c950a3a035a26a343_151) | [51](#ic2daaf281fcb421c950a3a035a26a343_151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Financial Highlights](#ic2daaf281fcb421c950a3a035a26a343_154) | [51](#ic2daaf281fcb421c950a3a035a26a343_151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Advances](#ic2daaf281fcb421c950a3a035a26a343_160) | [51](#ic2daaf281fcb421c950a3a035a26a343_160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Mortgage Loans](#ic2daaf281fcb421c950a3a035a26a343_163) | [52](#ic2daaf281fcb421c950a3a035a26a343_163) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Investments](#ic2daaf281fcb421c950a3a035a26a343_166) | [53](#ic2daaf281fcb421c950a3a035a26a343_166) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Obligations](#ic2daaf281fcb421c950a3a035a26a343_169) | [54](#ic2daaf281fcb421c950a3a035a26a343_169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Capital](#ic2daaf281fcb421c950a3a035a26a343_178) | [55](#ic2daaf281fcb421c950a3a035a26a343_178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Derivatives](#ic2daaf281fcb421c950a3a035a26a343_181) | [55](#ic2daaf281fcb421c950a3a035a26a343_181) |
| [Liquidity and Capital Resources](#ic2daaf281fcb421c950a3a035a26a343_184) | [55](#ic2daaf281fcb421c950a3a035a26a343_184) |
| [Critical Accounting Estimates](#ic2daaf281fcb421c950a3a035a26a343_187) | [59](#ic2daaf281fcb421c950a3a035a26a343_187) |
| [Legislative and Regulatory Developments](#ic2daaf281fcb421c950a3a035a26a343_190) | [59](#ic2daaf281fcb421c950a3a035a26a343_190) |
| [Risk Management](#ic2daaf281fcb421c950a3a035a26a343_193) | [59](#ic2daaf281fcb421c950a3a035a26a343_193) |

---

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**FORWARD-LOOKING INFORMATION** 

Statements contained in this report, including statements describing the objectives, projections, estimates, or future predictions in our operations, may be forward-looking statements. These statements may be identified by the use of forward-looking terminology, such as *believes*, *projects*, *expects*, *anticipates*, *estimates*, *intends*, *strategy*, *plan*, *could*, *should, may*, and *will* or their negatives or other variations on these terms. By their nature, forward-looking statements involve risk or uncertainty, and actual results could differ materially from those expressed or implied or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. As a result, you are cautioned not to place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political or economic events, including legislative, regulatory, monetary, judicial, or other developments that affect us, our members, our counterparties, and/or our investors in the consolidated obligations of the 11 FHLBanks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to meet capital and other regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competitive forces, including without limitation, other sources of funding available to our borrowers that could impact the demand for our advances, other entities purchasing mortgage loans in the secondary mortgage market, and other entities borrowing funds in the capital markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reliance on a relatively small number of member institutions for a large portion of our advance business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• member consolidations and failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions in the credit and debt markets and the effect on future funding costs, sources, and availability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and market conditions that could impact the business we do with our members, including, but not limited to, the timing and volatility of market activity, inflation/deflation, employment rates, geopolitical instability or conflicts, housing market activity and housing prices, the level of mortgage prepayments, the valuation of pledged collateral, and the condition of the capital markets and the impact it has on our consolidated obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ineffective use of hedging strategies or the availability of derivative instruments in the types and quantities needed for risk management purposes from acceptable counterparties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the volatility of reported results due to changes in the fair value of certain assets, liabilities, and derivative instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to the other FHLBanks that could trigger our joint and several liability for debt issued by the other FHLBanks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the relative attractiveness of consolidated obligations due to actual or perceived changes in the FHLBanks' credit ratings or ratings outlook as well as the U.S. Government's long-term credit rating or rating outlook;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in delinquency or loss estimates on mortgage loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to develop and support internal controls, business processes, information systems, and other operating technologies that effectively manage the risks we face, including but not limited to, cyber-attacks, widespread health emergencies, and other business interruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant business interruptions resulting from third-party failures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the volatility of credit quality, market prices, interest rates, and other factors that could affect the value of collateral held by us as security for borrower and counterparty obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to attract and retain key personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural disasters.

For additional information regarding these and other risks and uncertainties that could cause our actual results to differ materially from the expectations reflected in our forward-looking statements, see "<u>[Item 1A. Risk Factors](#ic2daaf281fcb421c950a3a035a26a343_208)</u>" in this quarterly report and in our 2024 Form 10-K. Forward-looking statements apply only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statement.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**EXECUTIVE OVERVIEW**

Our Bank is a member-owned cooperative serving shareholder members in our district. Our mission is to be a reliable provider of funding, liquidity, and services for our members so that they can meet the housing, business, and economic development needs of the communities they serve. In addition, we help to meet the economic and housing needs of our communities through our affordable housing and community investment initiatives. Our operating model balances the trade-off between attractively priced products, reasonable returns on capital stock, maintaining an adequate level of capital to meet regulatory capital requirements, and maintaining adequate retained earnings to preserve the par value of member-owned capital stock. Our members include commercial banks, savings institutions, credit unions, insurance companies, and CDFIs.

**Liquidity Mission**

We provide liquidity to our members to support the housing, business, and economic development needs of their communities. Members pledge mortgage loans and other collateral to access our core liquidity products of advances, letters of credit, and mortgage loans held for portfolio under the MPF program. During the nine months ended September 30, 2025, advance balances averaged $108.7 billion, letters of credit averaged $18.6 billion, mortgage loan balances averaged $12.8 billion, and we held an average of $29.5 billion of short-term assets as a ready source of liquidity for our members.

**Affordable Housing and Community Impact**

Our housing and community development programs are central to our mission. We contribute 10 percent of our net income each year to our AHP, a grant program that supports the creation, preservation, or purchase of affordable housing. This program includes a competitive AHP and two down payment assistance products called Home$tart and the Native American Homeownership Initiative. During the three and nine months ended September 30, 2025, we accrued statutory AHP assessments of $29 million and $73 million and voluntarily accrued $1 million and $7 million, to be awarded in 2026 through this program.

In addition to our AHP, we offer our members voluntary programs to further our housing mission. During the three and nine months ended September 30, 2025, we recorded a total of $13 million and $68 million in voluntary community and housing contributions, including the voluntary AHP contribution. Through our voluntary programs during the first nine months of 2025, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provided $23 million in 0% rate advances to members that originated or purchased mortgage loans from a Habitat for Humanity<sup>®</sup> affiliate and recorded $5 million in subsidy expense, including $1 million during the third quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• funded $344 million of home mortgages with an interest rate lower than the current market rate under the Mortgage Rate Relief program, which provided $30 million in grants to those seeking affordable homeownership, including $11 million during the third quarter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recorded contributions of $26 million to our Member Impact Fund to match member donations to local housing and community development organizations.

**Financial Results**

Our financial condition and results of operations are influenced by global and national economies, local economies within our district, and the conditions in the financial, housing, and credit markets, all of which impact the interest rate environment. The interest rate environment significantly impacts our profitability. FOMC actions in response to inflation, as well as trade disruptions, such as those arising from tariffs imposed or proposed by the U.S. or its trading partners, impact the interest rate environment, and in turn, our net interest income. Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Conditions in the Financial Markets](#ic2daaf281fcb421c950a3a035a26a343_124)</u>" for additional discussion on economic conditions, including interest rates, impacting our financial results.

For the three and nine months ended September 30, 2025, we recorded net income of $259 million and $658 million compared to $204 million and $708 million for the same periods in 2024.

Net interest income increased $8 million and decreased $123 million during the three and nine months ended September 30, 2025, when compared to the same periods last year. The increase during the three months ended September 30, 2025 was due to advance, mortgage loan, and MBS portfolio growth. The increase was offset in part by the yield on our interest-earning assets declining quicker than the cost of our interest-bearing liabilities, driven primarily by changes in interest rates, which also reduced earnings on invested capital.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

Net interest income during the nine months ended September 30, 2025 decreased due to the yield on interest-earning assets declining quicker than the cost of interest-bearing liabilities driven primarily by changes in interest rates, which also reduced earnings on invested capital, and a decrease in longer-term advances. The decline in net interest income was offset in part by MBS and mortgage loan portfolio growth, as well as the call of higher-costing consolidated obligation bonds.

Other income (loss) increased $26 million and $88 million during the three and nine months ended September 30, 2025, when compared to the same periods last year, primarily due to the net changes in fair value on our trading securities, fair value option instruments, and economic derivatives.

Other expense decreased $27 million and increased $19 million during the three and nine months ended September 30, 2025, when compared to the same periods last year, primarily driven by the timing of our voluntary community and housing contributions.

Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations](#ic2daaf281fcb421c950a3a035a26a343_130)</u>" for additional discussion on our results of operations.

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

Our total assets increased to $189.3 billion at September 30, 2025, from $165.3 billion at December 31, 2024, driven primarily by an increase in advances and investments. Advances increased $10.0 billion mainly due to an increase in borrowings by large depository institution members and insurance companies. Investments increased $12.3 billion due in part to an increase in short-term investments, mainly securities purchased under agreements to resell and federal funds sold, as well as the purchase of agency MBS and U.S. Treasury obligations.

Total capital increased to $10.2 billion at September 30, 2025, from $9.5 billion at December 31, 2024, primarily due to an increase in activity-based capital stock resulting from an increase in advance balances. Our regulatory capital ratio decreased to 5.41 percent at September 30, 2025, from 5.74 percent at December 31, 2024, but remained above the required regulatory limit at each period end. Regulatory capital includes capital stock, MRCS, and retained earnings.

Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Statements of Condition](#ic2daaf281fcb421c950a3a035a26a343_151)</u>" for additional discussion on our financial condition.

**CONDITIONS IN THE FINANCIAL MARKETS**

**Economy and Financial Markets**

In September 2025, the FOMC reduced the target range for the federal funds rate by 0.25 percent, and an additional 0.25 percent in October 2025, to a range of 3.75 to 4.00 percent. Recent indicators suggest that economic activity has been expanding at a moderate pace. Job gains have slowed this year, and the unemployment rate has edged up but remains low. In addition, inflation has moved up and remains somewhat elevated. The FOMC stated that it will conclude the reduction of its aggregate securities holdings in December 2025.

The following table shows information on key market interest rates<sup>1</sup>:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | 3-Month Average | 3-Month Average | 9-Month Average | 9-Month Average | Period End | Period End |
| | September 30,<br>2025 | September 30,<br>2024 | September 30,<br>2025 | September 30,<br>2024 | September 30,<br>2025 | December 31,<br>2024 |
| Federal funds | 4.30% | 5.27% | 4.32% | 5.31% | 4.09% | 4.33% |
| SOFR | 4.33 | 5.28 | 4.33 | 5.30 | 4.24 | 4.49 |
| 2-year U.S. Treasury | 3.72 | 4.05 | 3.91 | 4.45 | 3.60 | 4.25 |
| 10-year U.S. Treasury | 4.26 | 3.96 | 4.36 | 4.19 | 4.16 | 4.58 |
| 30-year residential mortgage note | 6.58 | 6.54 | 6.73 | 6.76 | 6.30 | 6.85 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Source: Bloomberg.

**Mortgage Markets**

During the first nine months of 2025, mortgage rates were relatively stable, on average, when compared to the same period last year, and lower when compared to the prior year-end. The primary driver of activity within the mortgage markets during 2025 was home purchases, as mortgage rates remained elevated. New and existing home sales decreased relative to the prior year. Home prices and prepayment activity increased relative to the same period last year.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**SELECTED FINANCIAL DATA**

&nbsp;&nbsp;&nbsp;&nbsp;The following tables present selected financial data for the periods indicated (dollars in millions):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statements of Condition** | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 |
| Cash and due from banks | $73 | $30 | $71 | $41 | $36 |
| Investments<sup>1</sup> | 64360 | 61353 | 60775 | 52032 | 49649 |
| Advances | 109981 | 114845 | 93790 | 99951 | 98923 |
| Mortgage loans held for portfolio, net<sup>2</sup> | 13948 | 13197 | 12263 | 11896 | 11398 |
| Total assets | 189291 | 190022 | 167471 | 165253 | 161979 |
| Consolidated obligations |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Discount notes | 68220 | 55977 | 50350 | 64680 | 59465 |
| &nbsp;&nbsp;&nbsp;Bonds | 108134 | 120793 | 105488 | 88571 | 91067 |
| Total consolidated obligations<sup>3</sup> | 176354 | 176770 | 155838 | 153251 | 150532 |
| Mandatorily redeemable capital stock | 31 | 34 | 9 | 9 | 9 |
| Total liabilities | 179050 | 179797 | 158142 | 155802 | 152695 |
| Capital stock — Class B putable | 6474 | 6660 | 5730 | 5989 | 5892 |
| Retained earnings | 3731 | 3617 | 3558 | 3491 | 3422 |
| Accumulated other comprehensive income (loss) | 36 | (52) | 41 | (29) | (30) |
| Total capital | 10241 | 10225 | 9329 | 9451 | 9284 |
| Regulatory capital ratio<sup>4</sup> | 5.41 | 5.43 | 5.55 | 5.74 | 5.76 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended |
| **Statements of Income** | September 30,<br>2025 | June 30,<br>2025 | March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 |
| Net interest income | $335 | $289 | $248 | $241 | $327 |
| Provision (reversal) for credit losses on mortgage loans |  |  |  | 1 |  |
| Other income (loss)<sup>5</sup> | 12 | 16 | 41 | 56 | (14) |
| Voluntary community and housing contributions | 13 | 43 | 12 | 19 | 40 |
| All other expense<sup>6</sup> | 46 | 47 | 49 | 48 | 46 |
| AHP assessments | 29 | 21 | 23 | 23 | 23 |
| Net income | 259 | 194 | 205 | 206 | 204 |
| **Selected Financial Ratios** |  |  |  |  |  |
| Net interest spread<sup>7</sup> | 0.43% | 0.38% | 0.32% | 0.26% | 0.48% |
| Net interest margin<sup>8</sup> | 0.67 | 0.64 | 0.59 | 0.56 | 0.77 |
| Return on average equity (annualized) | 9.71 | 7.86 | 8.56 | 8.76 | 8.40 |
| Return on average capital stock (annualized) | 15.07 | 12.27 | 13.87 | 13.64 | 13.31 |
| Return on average assets (annualized) | 0.51 | 0.42 | 0.48 | 0.47 | 0.47 |
| Average equity to average assets | 5.27 | 5.37 | 5.57 | 5.38 | 5.58 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Investments include interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, trading securities, AFS securities, and HTM securities.

2&nbsp;&nbsp;&nbsp;&nbsp;Includes an allowance for credit losses of $5 million, $5 million, $5 million, $5 million, and $4 million at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024.

3&nbsp;&nbsp;&nbsp;&nbsp;The total par value of outstanding consolidated obligations of the 11 FHLBanks was $1,184.1 billion, $1,232.1 billion, $1,154.9 billion, $1,193.0 billion, and $1,172.8 billion at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents period-end regulatory capital expressed as a percentage of period-end total assets. Regulatory capital includes Class B capital stock (including MRCS) and retained earnings.

5&nbsp;&nbsp;&nbsp;&nbsp;Other income (loss) includes, among other things, net gains (losses) on investment securities, net gains (losses) on derivatives, net gains (losses) on financial instruments held under fair value option, and standby letter of credit fees.

6&nbsp;&nbsp;&nbsp;&nbsp;All other expense includes, among other things, compensation and benefits, professional fees, and contractual services.

7&nbsp;&nbsp;&nbsp;&nbsp;Represents annualized yield on total interest-earning assets minus annualized cost of total interest-bearing liabilities.

8&nbsp;&nbsp;&nbsp;&nbsp;Represents net interest income expressed as a percentage of average interest-earning assets.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**RESULTS OF OPERATIONS**

**Net Interest Income**

Our net interest income is impacted by changes in average interest-earning asset and interest-bearing liability balances, and the related yields and costs. The following table presents average balances and annualized yields/costs of major asset and liability categories (dollars in millions):&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Three Months Ended September 30, |
| | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| | Average<br>Balance<sup>1</sup> | Yield/Cost<sup>2</sup> | Interest<br>Income/<br>Expense<sup>3</sup> | Average<br>Balance<sup>1</sup> | Yield/Cost<sup>2</sup> | Interest<br>Income/<br>Expense<sup>3</sup> |
| Interest-earning assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $4397 | 4.38% | $49 | $5222 | 5.25% | $69 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 14183 | 4.40 | 157 | 8544 | 5.41 | 116 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 14307 | 4.36 | 157 | 12708 | 5.35 | 172 |
| &nbsp;&nbsp;&nbsp;MBS<sup>4,5,6</sup> | 27056 | 5.31 | 362 | 23524 | 6.49 | 384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments<sup>4,5,6,7</sup> | 7673 | 3.94 | 76 | 5338 | 3.73 | 50 |
| &nbsp;&nbsp;&nbsp;Advances<sup>5,8</sup> | 117921 | 4.77 | 1417 | 102813 | 5.71 | 1476 |
| &nbsp;&nbsp;&nbsp;Mortgage loans<sup>9</sup> | 13630 | 4.61 | 158 | 11133 | 4.20 | 117 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans to other FHLBanks | 20 | 4.35 |  | 7 | 5.43 |  |
| Total interest-earning assets | 199187 | 4.73 | 2376 | 169289 | 5.60 | 2384 |
| Non-interest-earning assets | 1860 |  |  | 3781 |  |  |
| Total assets | $201047 | 4.69% | $2376 | $173070 | 5.48% | $2384 |
| Interest-bearing liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | $1418 | 3.47% | $12 | $1219 | 4.47% | $14 |
| &nbsp;&nbsp;&nbsp;Consolidated obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>5</sup> | 69930 | 4.25 | 748 | 70697 | 5.10 | 905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds<sup>5</sup> | 116807 | 4.35 | 1280 | 87910 | 5.14 | 1137 |
| &nbsp;&nbsp;&nbsp;Other interest-bearing liabilities<sup>10</sup> | 33 | 9.76 | 1 | 21 | 7.51 | 1 |
| Total interest-bearing liabilities | 188188 | 4.30 | 2041 | 159847 | 5.12 | 2057 |
| Non-interest-bearing liabilities | 2272 |  |  | 3572 |  |  |
| Total liabilities | 190460 | 4.25 | 2041 | 163419 | 5.01 | 2057 |
| Capital | 10587 |  |  | 9651 |  |  |
| Total liabilities and capital | $201047 | 4.03% | $2041 | $173070 | 4.73% | $2057 |
| Net interest income and spread<sup>11</sup> |  | 0.43% | $335 |  | 0.48% | $327 |
| Net interest margin<sup>12</sup> |  | 0.67% |  |  | 0.77% |  |
| Average interest-earning assets to interest-bearing liabilities |  | 105.84% |  |  | 105.91% |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Average balances are calculated on a daily weighted average basis and do not reflect the effect of derivative master netting arrangements with counterparties and/or clearing agents.

2&nbsp;&nbsp;&nbsp;&nbsp;In instances where the average balance and/or related income/expense is less than $1 million, the yield/cost will continue to be presented, based on numbers in actuals.

3&nbsp;&nbsp;&nbsp;&nbsp;Interest income and expense amounts reported for advances, MBS, other investments, and consolidated obligation bonds include gains (losses) on hedged items and derivatives in qualifying fair value hedge relationships.

4&nbsp;&nbsp;&nbsp;&nbsp;The average balance of AFS and HTM securities is reflected at amortized cost.

5&nbsp;&nbsp;&nbsp;&nbsp;Average balances reflect the impact of fair value hedging adjustments and/or fair value option adjustments.

6&nbsp;&nbsp;&nbsp;&nbsp;Interest income on investment securities includes prepayment fees, net of related amortization, of less than $1 million for both the three months ended September 30, 2025 and 2024.

7&nbsp;&nbsp;&nbsp;&nbsp;Other investments primarily include U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, and taxable municipal bonds.

8&nbsp;&nbsp;&nbsp;&nbsp;Interest income includes net prepayment fees on advances.

9&nbsp;&nbsp;&nbsp;&nbsp;Non-accrual loans are included in the average balance used to determine the average yield.

10&nbsp;&nbsp;&nbsp;&nbsp;Other interest-bearing liabilities consist primarily of MRCS and/or borrowings from other FHLBanks.

11&nbsp;&nbsp;&nbsp;&nbsp;Represents annualized yield on total interest-earning assets minus annualized yield on total interest-bearing liabilities.

12&nbsp;&nbsp;&nbsp;&nbsp;Represents net interest income expressed as a percentage of average interest-earning assets.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, |
| | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| | Average<br>Balance<sup>1</sup> | Yield/Cost<sup>2</sup> | Interest<br>Income/<br>Expense<sup>3</sup> | Average<br>Balance<sup>1</sup> | Yield/Cost<sup>2</sup> | Interest<br>Income/<br>Expense<sup>3</sup> |
| Interest-earning assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $4492 | 4.46% | $150 | $5230 | 5.34% | $209 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 11725 | 4.41 | 386 | 10512 | 5.43 | 427 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 13234 | 4.38 | 434 | 12373 | 5.39 | 500 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities<sup>,4,5,6</sup> | 26274 | 5.23 | 1029 | 23543 | 6.29 | 1108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments<sup>4,5,6,7</sup> | 7140 | 3.81 | 203 | 4845 | 3.85 | 140 |
| &nbsp;&nbsp;&nbsp;Advances<sup>5,8</sup> | 108709 | 4.78 | 3890 | 109670 | 5.73 | 4708 |
| &nbsp;&nbsp;&nbsp;Mortgage loans<sup>9</sup> | 12812 | 4.55 | 436 | 10629 | 4.10 | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans to other FHLBanks | 10 | 4.36 |  | 2 | 5.44 |  |
| Total interest-earning assets | 184396 | 4.73 | 6528 | 176804 | 5.60 | 7418 |
| Non-interest-earning assets | 2172 |  |  | 3907 |  |  |
| Total assets | $186568 | 4.68% | $6528 | $180711 | 5.48% | $7418 |
| Interest-bearing liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | $1314 | 3.46% | $34 | $1250 | 4.52% | $42 |
| &nbsp;&nbsp;&nbsp;Consolidated obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes<sup>5</sup> | 63173 | 4.32 | 2039 | 68189 | 5.15 | 2630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds<sup>5</sup> | 109129 | 4.39 | 3581 | 97138 | 5.15 | 3749 |
| &nbsp;&nbsp;&nbsp;Other interest-bearing liabilities<sup>10</sup> | 36 | 8.62 | 2 | 34 | 6.70 | 2 |
| Total interest-bearing liabilities | 173652 | 4.35 | 5656 | 166611 | 5.15 | 6423 |
| Non-interest-bearing liabilities | 2853 |  |  | 4421 |  |  |
| Total liabilities | 176505 | 4.29 | 5656 | 171032 | 5.02 | 6423 |
| Capital | 10063 |  |  | 9679 |  |  |
| Total liabilities and capital | $186568 | 4.05% | $5656 | $180711 | 4.75% | $6423 |
| Net interest income and spread<sup>11</sup> |  | 0.38% | $872 |  | 0.45% | $995 |
| Net interest margin<sup>12</sup> |  | 0.63% |  |  | 0.75% |  |
| Average interest-earning assets to interest-bearing liabilities |  | 106.19% |  |  | 106.12% |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Average balances are calculated on a daily weighted average basis and do not reflect the effect of derivative master netting arrangements with counterparties and/or clearing agents.

2&nbsp;&nbsp;&nbsp;&nbsp;In instances where the average balance and/or related income/expense is less than $1 million, the yield/cost will continue to be presented, based on numbers in actuals.

3&nbsp;&nbsp;&nbsp;&nbsp;Interest income and expense amounts reported for advances, MBS, other investments, and consolidated obligation bonds include gains (losses) on hedged items and derivatives in qualifying fair value hedge relationships.

4&nbsp;&nbsp;&nbsp;&nbsp;The average balance of AFS and HTM securities is reflected at amortized cost.

5&nbsp;&nbsp;&nbsp;&nbsp;Average balances reflect the impact of fair value hedging adjustments and/or fair value option adjustments.

6&nbsp;&nbsp;&nbsp;&nbsp;Interest income on investment securities includes prepayment fees, net of related amortization, of less than $1 million and $6 million for the nine months ended September 30, 2025 and 2024.

7&nbsp;&nbsp;&nbsp;&nbsp;Other investments primarily include U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, and taxable municipal bonds.

8&nbsp;&nbsp;&nbsp;&nbsp;Interest income includes net prepayment fees on advances.

9&nbsp;&nbsp;&nbsp;&nbsp;Non-accrual loans are included in the average balance used to determine the average yield.

10&nbsp;&nbsp;&nbsp;&nbsp;Other interest-bearing liabilities consist primarily of MRCS and/or borrowings from other FHLBanks.

11&nbsp;&nbsp;&nbsp;&nbsp;Represents annualized yield on total interest-earning assets minus annualized yield on total interest-bearing liabilities.

12&nbsp;&nbsp;&nbsp;&nbsp;Represents net interest income expressed as a percentage of average interest-earning assets.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

The following table presents changes in interest income and interest expense. Changes in interest income and interest expense that are not identifiable as either volume-related or rate-related, but rather attributable to both volume and rate changes, are allocated to the volume and rate categories based on the proportion of the absolute value of the volume and rate changes (dollars in millions).

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | Nine Months Ended |
| | September 30, 2025 vs. September 30, 2024 | September 30, 2025 vs. September 30, 2024 | September 30, 2025 vs. September 30, 2024 | September 30, 2025 vs. September 30, 2024 | September 30, 2025 vs. September 30, 2024 | September 30, 2025 vs. September 30, 2024 |
| | Total Increase <br>(Decrease) Due to | Total Increase <br>(Decrease) Due to | Total Increase<br>(Decrease) | Total Increase <br>(Decrease) Due to | Total Increase <br>(Decrease) Due to | Total Increase<br>(Decrease) |
| | Volume | Rate | Total Increase<br>(Decrease) | Volume | Rate | Total Increase<br>(Decrease) |
| Interest income |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $(10) | $(10) | $(20) | $(27) | $(32) | $(59) |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 66 | (25) | 41 | 45 | (86) | (41) |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 20 | (35) | (15) | 33 | (99) | (66) |
| &nbsp;&nbsp;&nbsp;MBS | 53 | (75) | (22) | 120 | (199) | (79) |
| &nbsp;&nbsp;&nbsp;Other investments | 23 | 3 | 26 | 64 | (1) | 63 |
| &nbsp;&nbsp;&nbsp;Advances | 202 | (261) | (59) | (41) | (777) | (818) |
| &nbsp;&nbsp;&nbsp;Mortgage loans | 29 | 12 | 41 | 72 | 38 | 110 |
| Total interest income | 383 | (391) | (8) | 266 | (1156) | (890) |
| Interest expense |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 2 | (4) | (2) | 2 | (10) | (8) |
| &nbsp;&nbsp;&nbsp;Consolidated obligations |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discount notes | (10) | (147) | (157) | (185) | (406) | (591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds | 336 | (193) | 143 | 431 | (599) | (168) |
| Total interest expense | 328 | (344) | (16) | 248 | (1015) | (767) |
| Net interest income | $55 | $(47) | $8 | $18 | $(141) | $(123) |

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

NET INTEREST SPREAD AND MARGIN

Net interest spread represents the annualized yield on total interest-earning assets minus the annualized cost of total interest-bearing liabilities. Our net interest spread decreased during the three and nine months ended September 30, 2025, when compared to the same periods in 2024 due to the yield on our interest-earning assets declining quicker than the cost of our interest-bearing liabilities, driven primarily by changes in interest rates and a decline in longer-term advances. The decline in net interest spread was offset in part by mortgage loan and mortgage-backed security portfolio growth, as well as the call of higher-costing consolidated obligation bonds. Our cost of funds does not include net interest settlements on economic hedges, which are recorded in other income (loss). As a result, our net interest spread does not reflect the full impact of our funding and hedging strategies and may experience volatility as interest rates change.

Net interest margin equals net interest income expressed as a percentage of average interest-earning assets. Our net interest margin decreased during the three and nine months ended September 30, 2025, when compared to the same periods in 2024 due primarily to lower net interest spread and lower interest rates, which reduced our earnings on invested capital. Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Executive Overview — Financial Results](#ic55ec74b83424810be7eb5929fc736c8_5998)</u>" for additional discussion on our net interest income.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

ADVANCE PREPAYMENT FEES

The following table summarizes our advance prepayment fees (dollars in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Prepayment fees on advances, gross<sup>1,2</sup> | $6 | $— | $9 | $1 |
| Basis adjustment amortization<sup>2</sup> | (2) |  | (1) |  |
| Deferred prepayment fees on modified advances<sup>2</sup> |  |  | (1) |  |
| Prepayment fees on advances, net | $4 | $— | $7 | $1 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Includes symmetrical fees on advances for which we may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates.

2&nbsp;&nbsp;&nbsp;&nbsp;Prepayment fees on advances, gross were less than $1 million during the three months ended September 30, 2024. Basis adjustment amortization was less than $1 million during the three and nine months ended September 30, 2024. Deferred prepayment fees on modified advances were less than $1 million during the three months ended September 30, 2025 and three and nine months ended September 30, 2024.

**Other Income (Loss)**

&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the components of other income (loss) (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Net gains (losses) on trading securities | $17 | $87 | $86 | $70 |
| Net gains (losses) on financial instruments held under fair value option | (20) | (110) | 7 | (63) |
| Net gains (losses) on derivatives | 3 | (2) | (56) | (58) |
| Other, net | 12 | 11 | 32 | 32 |
| Total other income (loss) | $12 | $(14) | $69 | $(19) |

---

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

Other income (loss) increased $26 million and $88 million during the three and nine months ended September 30, 2025, when compared to the same periods in 2024, primarily due to the net changes in fair value on our trading securities, fair value option instruments, and economic derivatives, including the related interest settlements. We utilize economic derivatives to hedge certain instruments held at fair value that do not qualify for fair value hedge accounting. These fair value elections are made primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. As a result, we review the related gains (losses) on these items on a net basis. During the three and nine months ended September 30, 2025, we recorded net combined gains of less than $1 million and $37 million on our trading securities, fair value option instruments, and the related economic derivatives, compared to net combined losses of $25 million and $51 million for the same periods in 2024. The net increase during the three and nine months ended September 30, 2025 was primarily driven by changes in interest rates. Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Hedging Activities](#i442311fa512647efb5384ebf90a6cefc_5138)</u>" for additional discussion on our economic derivatives.

**Hedging Activities** 

We use derivatives to manage interest rate risk. Accounting rules affect the timing and recognition of income and expense on derivatives and therefore we may be subject to income statement volatility. If a hedging activity qualifies for hedge accounting treatment (fair value hedge), the net interest settlements of interest receivables or payables related to the derivative are recognized as interest income or expense in the relevant income statement line item consistent with the hedged asset or liability. The net fair value gains and losses of derivatives and hedged items designated in fair value hedge relationships are also recognized as interest income or expense. Amortization of basis adjustments from terminated hedges is also recorded in interest income or expense.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

If a hedging activity does not qualify for hedge accounting treatment (economic hedge), the net interest settlements of interest receivables or payables related to the derivative as well as the fair value gains and losses on the derivative are recorded as a component of other income (loss) in "Net gains (losses) on derivatives;" however, there is no fair value adjustment for the corresponding asset or liability being hedged unless changes in the fair value of the asset or liability are normally marked to fair value through earnings (i.e., trading securities and fair value option instruments).

The following tables categorize the net effect of hedging activities on net income by product (dollars in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2025 |
| Net Effect of Hedging Activities | Advances | Investments | Mortgage<br>Loans | Discount Notes | Bonds | Other | Total |
| Net interest income: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net amortization/accretion<sup>1</sup> | $2 | $1 | $1 | $— | $— | $— | $4 |
| &nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives and hedged items | (1) | 2 |  | (1) | 10 |  | 10 |
| &nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> | (1) | (3) |  |  |  |  | (4) |
| &nbsp;&nbsp;Net interest settlements on derivatives<sup>3</sup> | 125 | 61 |  | (5) | (14) |  | 167 |
| Total impact to net interest income | 125 | 61 | 1 | (6) | (4) |  | 177 |
| Other income (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net gains (losses) on derivatives |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) related to derivatives not designated as hedging instruments<sup>4</sup> |  | 5 | (1) | (2) |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> |  |  |  |  |  | 1 | 1 |
| &nbsp;&nbsp;Total net gains (losses) on derivatives |  | 5 | (1) | (2) |  | 1 | 3 |
| &nbsp;&nbsp;Net gains (losses) on trading securities<sup>5</sup> |  | 17 |  |  |  |  | 17 |
| &nbsp;&nbsp;Net gains (losses) on financial instruments held under fair value option<sup>5</sup> |  |  |  | (20) |  |  | (20) |
| Total impact to other income (loss) |  | 22 | (1) | (22) |  | 1 |  |
| Total net effect of hedging activities<sup>6</sup> | $125 | $83 | $— | $(28) | $(4) | $1 | $177 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents the amortization/accretion of basis adjustments on closed hedge relationships.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract, which fluctuates with changes in the interest rate environment. The price alignment amount on derivatives that qualify for fair value hedge accounting is recorded in net interest income. The price alignment amount on economic derivatives is recorded in other income (loss) as "Net gains (losses) on derivatives" on the Statements of Income.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest component on derivatives that qualify for fair value hedge accounting.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents net gains (losses) on economic derivatives and the related interest settlements.

5&nbsp;&nbsp;&nbsp;&nbsp;Represents the net gains (losses) on those trading securities and fair value option instruments for which we are utilizing economic derivatives to hedge the risk of changes in fair value.

6&nbsp;&nbsp;&nbsp;&nbsp;The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 | For the Three Months Ended September 30, 2024 |
| Net Effect of Hedging Activities | Advances | Investments | Mortgage<br>Loans | Discount Notes | Bonds | Other | Total |
| Net interest income: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net amortization/accretion<sup>1</sup> | $9 | $7 | $2 | $— | $(1) | $— | $17 |
| &nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives and hedged items | (1) | 5 |  |  | 5 |  | 9 |
| &nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> | (6) | (4) |  |  | (2) |  | (12) |
| &nbsp;&nbsp;Net interest settlements on derivatives<sup>3</sup> | 238 | 100 |  |  | (55) |  | 283 |
| Total impact to net interest income | 240 | 108 | 2 |  | (53) |  | 297 |
| Other income (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net gains (losses) on derivatives |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) related to derivatives not designated as hedging instruments<sup>4</sup> |  | (66) |  | 62 |  |  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> |  |  |  |  |  | 1 | 1 |
| &nbsp;&nbsp;Total net gains (losses) on derivatives |  | (66) |  | 62 |  | 1 | (3) |
| &nbsp;&nbsp;Net gains (losses) on trading securities<sup>5</sup> |  | 87 |  |  |  |  | 87 |
| &nbsp;&nbsp;Net gains (losses) on financial instruments held under fair value option<sup>5</sup> |  |  |  | (110) |  |  | (110) |
| Total impact to other income (loss) |  | 21 |  | (48) |  | 1 | (26) |
| Total net effect of hedging activities<sup>6</sup> | $240 | $129 | $2 | $(48) | $(53) | $1 | $271 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents the amortization/accretion of basis adjustments on closed hedge relationships.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract, which fluctuates with changes in the interest rate environment. The price alignment amount on derivatives that qualify for fair value hedge accounting is recorded in net interest income. The price alignment amount on economic derivatives is recorded in other income (loss) as "Net gains (losses) on derivatives" on the Statements of Income.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest component on derivatives that qualify for fair value hedge accounting.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents net gains (losses) on economic derivatives and the related interest settlements.

5&nbsp;&nbsp;&nbsp;&nbsp;Represents the net gains (losses) on those trading securities and fair value option instruments for which we are utilizing economic derivatives to hedge the risk of changes in fair value.

6&nbsp;&nbsp;&nbsp;&nbsp;The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 |
| Net Effect of Hedging Activities | Advances | Investments | Mortgage<br>Loans | Discount Notes | Bonds | Other | Total |
| Net interest income: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net amortization/accretion<sup>1</sup> | $17 | $3 | $1 | $— | $— | $— | $21 |
| &nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives and hedged items | 1 | (4) |  | (1) | (2) |  | (6) |
| &nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> | (10) | (16) |  |  | (2) |  | (28) |
| &nbsp;&nbsp;Net interest settlements on derivatives<sup>3</sup> | 362 | 178 |  | (5) | (13) |  | 522 |
| Total impact to net interest income | 370 | 161 | 1 | (6) | (17) |  | 509 |
| Other income (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) related to derivatives not designated as hedging instruments<sup>4</sup> |  | (35) | (1) | (21) |  |  | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> |  |  |  |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net gains (losses) on derivatives |  | (35) | (1) | (21) |  | 1 | (56) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on trading securities<sup>5</sup> |  | 86 |  |  |  |  | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on financial <br>instruments held under fair value option<sup>5</sup> |  |  |  | 7 |  |  | 7 |
| Total impact to other income (loss) |  | 51 | (1) | (14) |  | 1 | 37 |
| Total net effect of hedging activities<sup>6</sup> | $370 | $212 | $— | $(20) | $(17) | $1 | $546 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents the amortization/accretion of basis adjustments on closed hedge relationships.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract, which fluctuates with changes in the interest rate environment. The price alignment amount on derivatives that qualify for fair value hedge accounting is recorded in net interest income. The price alignment amount on economic derivatives is recorded in other income (loss) as "Net gains (losses) on derivatives" on the Statements of Income.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest component on derivatives that qualify for fair value hedge accounting.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents net gains (losses) on economic derivatives and the related interest settlements.

5&nbsp;&nbsp;&nbsp;&nbsp;Represents the net gains (losses) on those trading securities and fair value option instruments for which we are utilizing economic derivatives to hedge the risk of changes in fair value.

6&nbsp;&nbsp;&nbsp;&nbsp;The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2024 |
| Net Effect of Hedging Activities | Advances | Investments | Mortgage<br>Loans | Discount Notes | Bonds | Other | Total |
| Net interest income: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Net amortization/accretion<sup>1</sup> | $28 | $11 | $1 | $— | $(7) | $— | $33 |
| &nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives and hedged items | (1) | 2 |  |  | 20 |  | 21 |
| &nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> | (36) | (25) |  |  | (1) |  | (62) |
| &nbsp;&nbsp;Net interest settlements on derivatives<sup>3</sup> | 695 | 304 |  |  | (179) |  | 820 |
| Total impact to net interest income | 686 | 292 | 1 |  | (167) |  | 812 |
| Other income (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on derivatives |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains (losses) related to derivatives not designated as hedging instruments<sup>4</sup> |  | (8) | (1) | (51) |  |  | (60) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Price alignment amount on derivatives<sup>2</sup> |  |  |  |  |  | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net gains (losses) on derivatives |  | (8) | (1) | (51) |  | 2 | (58) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on trading securities<sup>5</sup> |  | 70 |  |  |  |  | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gains (losses) on financial <br>instruments held under fair value option<sup>5</sup> |  |  |  | (63) |  |  | (63) |
| Total impact to other income (loss) |  | 62 | (1) | (114) |  | 2 | (51) |
| Total net effect of hedging activities<sup>6</sup> | $686 | $354 | $— | $(114) | $(167) | $2 | $761 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents the amortization/accretion of basis adjustments on closed hedge relationships.

2&nbsp;&nbsp;&nbsp;&nbsp;Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract, which fluctuates with changes in the interest rate environment. The price alignment amount on derivatives that qualify for fair value hedge accounting is recorded in net interest income. The price alignment amount on economic derivatives is recorded in other income (loss) as "Net gains (losses) on derivatives" on the Statements of Income.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents the interest component on derivatives that qualify for fair value hedge accounting.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents net gains (losses) on economic derivatives and the related interest settlements.

5&nbsp;&nbsp;&nbsp;&nbsp;Represents the net gains (losses) on those trading securities and fair value option instruments for which we are utilizing economic derivatives to hedge the risk of changes in fair value.

6&nbsp;&nbsp;&nbsp;&nbsp;The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

NET AMORTIZATION/ACCRETION

Net amortization/accretion varies from period to period depending on our hedge relationship termination activities and the maturity, call, or prepayment of assets or liabilities previously in hedge relationships.

NET GAINS (LOSSES) ON DERIVATIVES AND HEDGED ITEMS

Net gains and losses on derivatives and hedged items designated in fair value hedge relationships are recorded in net interest income. Gains (losses) on derivatives and hedged items fluctuate with changes in market conditions and are based on a range of factors, including current and projected levels of interest rates and volatility.

NET INTEREST SETTLEMENTS ON DERIVATIVES

Net interest settlements represent the interest component on derivatives that qualify for fair value hedge accounting. These amounts vary from period to period depending on our hedging activities and interest rates and are partially offset by the interest component on the related hedged item within net interest income. The hedging activity tables do not include the impact of the interest component on the related hedged item.

NET GAINS (LOSSES) ON DERIVATIVES

We utilize economic derivatives to manage certain risks on our Statements of Condition. Gains and losses on economic derivatives include interest settlements and price alignment amounts. Interest settlements represent the interest component on economic derivatives. These amounts vary from period to period depending on our hedging activities and interest rates.

**Other Expense**

The following table shows the components of other expense (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended September 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Nine Months Ended September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Compensation and benefits | $20 | $18 | $62 | $58 |
| Contractual services | 7 | 7 | 20 | 20 |
| Professional fees | 3 | 5 | 10 | 14 |
| Other operating expenses | 6 | 6 | 17 | 16 |
| Total operating expenses | 36 | 36 | 109 | 108 |
| Voluntary community and housing contributions | 13 | 40 | 68 | 49 |
| Federal Housing Finance Agency | 3 | 3 | 11 | 10 |
| Office of Finance | 3 | 2 | 7 | 7 |
| Other, net | 4 | 5 | 15 | 17 |
| Total other expense | $59 | $86 | $210 | $191 |

---

Other expense decreased $27 million and increased $19 million during the three and nine months ended September 30, 2025, when compared to the same periods last year. The changes during the three and nine months ended September 30, 2025, were primarily due to the timing of our voluntary community and housing contributions.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**STATEMENTS OF CONDITION**

**Financial Highlights** 

&nbsp;&nbsp;&nbsp;&nbsp;Our total assets increased to $189.3 billion at September 30, 2025, from $165.3 billion at December 31, 2024. Our total liabilities increased to $179.1 billion at September 30, 2025, from $155.8 billion at December 31, 2024. Total capital increased to $10.2 billion at September 30, 2025, from $9.5 billion at December 31, 2024. See further discussion of changes in our financial condition in the appropriate sections that follow.

**Advances** 

The following table summarizes our advances by type of institution (dollars in millions):

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Commercial banks | $47880 | $43653 |
| Savings institutions | 1013 | 1770 |
| Credit unions | 10671 | 12941 |
| Insurance companies | 49805 | 42235 |
| CDFIs | 14 | 8 |
| Total member advances | 109383 | 100607 |
| Housing associates | 16 | 108 |
| Non-member borrowers | 523 | 15 |
| Total par value | $109922 | $100730 |

---

Our total advance par value increased $9.2 billion or nine percent at September 30, 2025, when compared to December 31, 2024, primarily due to an increase in borrowings by large depository institution members and insurance companies.

The following table summarizes our advances by interest rate payment terms (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | Amount | % of Total | Amount | % of Total |
| Fixed rate | $74196 | 68 | $78228 | 78 |
| Variable rate | 24333 | 22 | 11202 | 11 |
| Variable rate, callable<sup>1</sup> | 10300 | 9 | 10143 | 10 |
| Other<sup>2</sup> | 1093 | 1 | 1156 | 1 |
| Overdrawn demand deposit accounts<sup>3</sup> |  |  | 1 |  |
| Total advance par value | 109922 | 100 | 100730 | 100 |
| Premiums | 2 |  | 3 |  |
| Discounts | (24) |  | (21) |  |
| Fair value hedging adjustments<sup>4</sup> | 81 |  | (761) |  |
| Total | $109981 |  | $99951 |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Callable advances are those advances that may be contractually prepaid by the borrower on predetermined dates without incurring prepayment or termination fees.

2&nbsp;&nbsp;&nbsp;&nbsp;Includes fixed rate amortizing and fixed rate callable advances.

3&nbsp;&nbsp;&nbsp;&nbsp;The Bank's overdrawn demand deposit accounts were less than $1 million at September 30, 2025.

4&nbsp;&nbsp;&nbsp;&nbsp;Primarily represents fair value hedging adjustments on active hedging relationships driven by changes in interest rates.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

At September 30, 2025 and December 31, 2024, advances outstanding to our top five borrowers totaled $48.6 billion and $31.3 billion, which represented 44 percent and 31 percent of our total advances outstanding. The following table summarizes our top five borrowers based on advances outstanding at September 30, 2025 (dollars in millions):

---

| | | |
|:---|:---|:---|
| | Amount | % of Total Advances |
| Athene Annuity and Life Company | $20971 | 19 |
| Wells Fargo Bank, N.A. | 15000 | 14 |
| EquiTrust Life Insurance Company | 4600 | 4 |
| UBS Bank USA | 4101 | 4 |
| Symetra Life Insurance Company | 3952 | 3 |
| Total par value | $48624 | 44 |

---

We evaluate advances for credit losses on a quarterly basis and have never experienced a credit loss on our advances. For additional discussion on our advance credit risk, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Advances.](#i2345610e27b44a709073ee97e9b1cc2d_17818)</u>"

**Mortgage Loans** 

&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes information on our mortgage loans held for portfolio (dollars in millions):

---

| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Fixed rate conventional loans | $13510 | $11452 |
| Fixed rate government-insured loans | 357 | 365 |
| Total unpaid principal balance | 13867 | 11817 |
| Premiums | 151 | 130 |
| Discounts | (55) | (33) |
| Basis adjustments from mortgage loan purchase commitments | (10) | (13) |
| Total mortgage loans held for portfolio | 13953 | 11901 |
| Allowance for credit losses | (5) | (5) |
| Total mortgage loans held for portfolio, net | $13948 | $11896 |

---

Our total mortgage loans increased $2.1 billion or 17 percent at September 30, 2025, when compared to December 31, 2024. The increase was primarily due to new loan purchases exceeding principal paydowns, driven in part by low prepayment activity as mortgage rates remain elevated.

We evaluate mortgage loans for credit losses on a quarterly basis. For additional discussion on our mortgage loan credit risk, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Mortgage Loans.](#i2345610e27b44a709073ee97e9b1cc2d_17821)</u>"

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**Investments**

The following table summarizes the carrying value of our investments (dollars in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2024 |
| | Amount | % of Total | Amount | % of Total |
| Short-term investments<sup>1</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | $4391 | 7 | $4096 | 8 |
| &nbsp;&nbsp;&nbsp;Securities purchased under agreements to resell | 16100 | 25 | 11950 | 23 |
| &nbsp;&nbsp;&nbsp;Federal funds sold | 8790 | 14 | 5175 | 10 |
| Total short-term investments | 29281 | 46 | 21221 | 41 |
| Long-term investments<sup>2</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MBS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSE single-family | 539 | 1 | 564 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily | 20905 | 32 | 18984 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family<sup>3</sup> | 5718 | 9 | 5202 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private-label residential | 2 |  | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total MBS | 27164 | 42 | 24752 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-MBS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations<sup>3</sup> | 6592 | 10 | 4508 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations<sup>3</sup> | 86 |  | 161 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations | 711 | 1 | 714 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State or local housing agency obligations | 394 | 1 | 528 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other<sup>4</sup> | 132 |  | 148 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-MBS | 7915 | 12 | 6059 | 12 |
| Total long-term investments | 35079 | 54 | 30811 | 59 |
| Total investments | $64360 | 100 | $52032 | 100 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments have original maturities equal to or less than one year.

2&nbsp;&nbsp;&nbsp;&nbsp;Long-term investments have original maturities of greater than one year.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

4&nbsp;&nbsp;&nbsp;&nbsp;Consists of taxable municipal bonds.

Our investments increased $12.3 billion, or 24 percent at September 30, 2025, when compared to December 31, 2024, due in part to an increase in short-term investments, mainly securities purchased under agreements to resell and federal funds sold, as well as the purchase of agency MBS and U.S. Treasury obligations. At September 30, 2025 and December 31, 2024, we had GSE and/or other U.S. obligation MBS purchases with a total par value of $132 million and $162 million that were traded but not yet settled. These investments were recorded as "Available-for-sale" on our Statements of Condition with a corresponding payable recorded in "Other liabilities."

The Finance Agency limits our investments in MBS by requiring that the balance of our MBS not exceed three times regulatory capital at the time of purchase. Our ratio of MBS to regulatory capital was 2.67 and 2.71 at September 30, 2025 and December 31, 2024.

We evaluate investments for credit losses on a quarterly basis. For additional discussion on our investment credit risk, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Investments](#i2345610e27b44a709073ee97e9b1cc2d_17824)</u>."

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**Consolidated Obligations** 

&nbsp;&nbsp;&nbsp;&nbsp;Consolidated obligations, which include bonds and discount notes, are the primary source of funds to support our advances, mortgage loans, and investments. At September 30, 2025 and December 31, 2024, the carrying value of consolidated obligations for which we are primarily liable totaled $176.4 billion and $153.3 billion.

DISCOUNT NOTES

The following table summarizes our discount notes, all of which are due within one year (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Par value | $68868 | $65250 |
| Discounts and concession fees<sup>1</sup> | (666) | (586) |
| Fair value hedging adjustments | 10 |  |
| Fair value option adjustments | 8 | 16 |
| Total | $68220 | $64680 |

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1&nbsp;&nbsp;&nbsp;&nbsp;Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes.

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

Our discount notes increased $3.5 billion or five percent at September 30, 2025, when compared to December 31, 2024. During the nine months ended September 30, 2025, we continued to utilize discount notes in an effort to capture attractive funding and/or meet our liquidity requirements and began electing fair value hedge accounting for certain discount notes.

BONDS

The following table summarizes information on our bonds (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Par value | $108060 | $88588 |
| Premiums | 29 | 30 |
| Discounts and concession fees<sup>1</sup> | (23) | (25) |
| Fair value hedging adjustments | 68 | (22) |
| Total | $108134 | $88571 |

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1&nbsp;&nbsp;&nbsp;&nbsp;Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds.

Our bonds increased $19.6 billion or 22 percent at September 30, 2025, when compared to December 31, 2024. We increased our utilization of callable bonds in an effort to capture attractive funding and/or meet our liquidity requirements. Fair value hedging adjustments changed $90 million at September 30, 2025, when compared to December 31, 2024, driven primarily by volume and the interest rate environment.

For additional information on our consolidated obligations, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Liquidity — Sources of Liquidity.](#if8959a5f3fcf4bb4a8ebb893d66ab7c6_12808)</u>"

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**Capital**

The following table summarizes information on our capital (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Capital stock | $6474 | $5989 |
| Retained earnings | 3731 | 3491 |
| Accumulated other comprehensive income (loss) | 36 | (29) |
| Total capital | $10241 | $9451 |

---

Our capital increased $0.8 billion, or eight percent at September 30, 2025, when compared to December 31, 2024, primarily due to an increase in activity-based capital stock resulting from an increase in advance balances. Refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Capital](#if8959a5f3fcf4bb4a8ebb893d66ab7c6_12810)</u>" for additional information on our capital.

**Derivatives** 

&nbsp;&nbsp;&nbsp;&nbsp;We use derivatives to manage interest rate risk. The notional amount of derivatives serves as a factor in determining periodic interest payments and cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor our overall exposure to credit and market risk.

The following table categorizes the notional amount of our derivatives by type (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Interest rate swaps |  |  |
| &nbsp;&nbsp;&nbsp;Non-callable | $168404 | $146567 |
| &nbsp;&nbsp;&nbsp;Callable by counterparty | 14429 | 8335 |
| &nbsp;&nbsp;&nbsp;Callable by the Bank | 17 |  |
| Total interest rate swaps | 182850 | 154902 |
| Forward settlement agreements | 152 | 91 |
| Mortgage loan purchase commitments | 165 | 101 |
| Total notional amount | $183167 | $155094 |

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

The notional amount of our derivative contracts increased $28.1 billion, or eighteen percent, at September 30, 2025, when compared to December 31, 2024. The increase was primarily due to the utilization of interest rate swaps to hedge the growth in our consolidated obligations. During 2025, we increased our utilization of non-callable swaps on discount notes and advances, and callable swaps on consolidated obligation bonds in an effort to capture attractive funding and/or meet our liquidity requirements. For additional discussion regarding our use of derivatives, see "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Derivatives](#i2345610e27b44a709073ee97e9b1cc2d_17825)</u>."

**LIQUIDITY AND CAPITAL RESOURCES**

Our liquidity and capital positions are actively managed in an effort to preserve stable, reliable, and cost-effective sources of funds to meet current and projected operating financial commitments, as well as regulatory, liquidity, and capital requirements.

**Liquidity**

SOURCES OF LIQUIDITY

We utilize several sources of liquidity to carry out our business activities. These include, but are not limited to, proceeds from the issuance of consolidated obligations, payments collected on advances and mortgage loans, proceeds from investment securities, member deposits, the issuance of capital stock, and current period earnings.

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Our primary source of liquidity is proceeds from the issuance of consolidated obligations (bonds and discount notes) in the capital markets. During the nine months ended September 30, 2025, proceeds from the issuance of bonds and discount notes were $86.9 billion and $1,175.7 billion compared to $35.5 billion and $1,352.2 billion for the same period in 2024. During the nine months ended September 30, 2025, although we increased our utilization of callable consolidated obligation bonds, we continued to issue discount notes in an effort to capture attractive funding and/or meet our liquidity requirements.

Access to debt markets has been reliable because investors, driven by increased liquidity preference and our GSE status, have sought the FHLBanks' debt as an asset of choice. However, due to the short-term maturity of the debt, we may be exposed to additional risks associated with refinancing and our ability to access the capital markets.

We are focused on maintaining an adequate liquidity balance and a funding balance between our financial assets and financial liabilities and work collectively with the other FHLBanks to manage the system-wide liquidity and funding needs. We monitor our debt refinancing risk and liquidity position primarily by tracking the maturities of financial assets and financial liabilities. In managing and monitoring the amounts of assets that require refunding, we consider contractual maturities of our financial assets and liabilities, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments). 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. Refer to "<u>[Item 1. Financial Statements — Condensed Notes to the Unaudited Financial Statements](#ic2daaf281fcb421c950a3a035a26a343_34)</u>" for additional information regarding the contractual maturities of certain of our financial assets and liabilities.

Our ability to raise funds in the capital markets as well as our cost of borrowing may be affected by our credit ratings. As of October 31, 2025, our consolidated obligations were rated AA+/A-1+ with a stable outlook by S&P. In May 2025, Moody's downgraded the long-term U.S. sovereign rating to Aa1 with a stable outlook. Following this action, Moody's also downgraded our long-term rating to Aa1 with a stable outlook and affirmed our P-1 short-term issuer rating. For further discussion of how credit rating changes and our ability to access the capital markets may impact us in the future, refer to "Item 1A. Risk Factors" in our 2024 Form 10-K.

Although we are primarily liable for the portion of consolidated obligations that are issued on our behalf, we are also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all consolidated obligations issued by the FHLBank System. At September 30, 2025 and December 31, 2024, the total par value of outstanding consolidated obligations for which we are primarily liable was $176.9 billion and $153.8 billion. At September 30, 2025 and December 31, 2024, the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which we are jointly and severally liable was $1,007.2 billion and $1,039.2 billion.

The Office of Finance and FHLBanks have contingency plans in place that prioritize the allocation of proceeds from the issuance of consolidated obligations during periods of financial distress if consolidated obligations cannot be issued in sufficient amounts to satisfy all FHLBank demand. In the event of significant market disruptions or local disasters, our President and CEO or designee is authorized to establish interim borrowing relationships with other FHLBanks. To provide further access to funding, the FHLBank Act also authorizes the U.S. Treasury to directly purchase new issue consolidated obligations of the GSEs, including FHLBanks, up to an aggregate principal amount of $4.0 billion. As of October 31, 2025, no purchases had been made by the U.S. Treasury under this authorization.

USES OF LIQUIDITY

&nbsp;&nbsp;&nbsp;&nbsp;We use our available liquidity, including proceeds from the issuance of consolidated obligations, primarily to repay consolidated obligations, fund advances, and purchase investments. During the nine months ended September 30, 2025, repayments of consolidated obligations totaled $1,239.0 billion compared to $1,409.2 billion for the same period in 2024.

During the nine months ended September 30, 2025, advance disbursements (excluding daily reset advances) totaled $557.5 billion compared to $311.4 billion for the same period in 2024. Advance disbursements vary from period to period depending on member needs. In addition, during the second quarter of 2024, we began offering an overnight advance with a one day maturity. The increase during the nine months ended September 30, 2025 was primarily due to member utilization of overnight advances. During both the nine months ended September 30, 2025 and 2024, investment purchases (excluding overnight investments) totaled $5.5 billion.

We also use liquidity to purchase mortgage loans, redeem member deposits, pledge collateral to derivative counterparties, redeem or repurchase capital stock, pay expenses, and pay dividends.

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LIQUIDITY REQUIREMENTS

We are subject to certain liquidity requirements set forth by the Finance Agency and maintain a liquidity contingency funding plan designed to enable us to meet our obligations and the liquidity needs of our members in the event of short-term capital market disruptions, or operational disruptions at our Bank and/or the Office of Finance. For additional details on these liquidity requirements, refer to our 2024 Form 10-K. Our primary liquidity requirement is discussed further below.

*Liquidity Guidance AB* – This guidance requires us to maintain sufficient liquidity for a period of 10 to 30 calendar days. The base case scenario requires 20 days of positive daily cash balances and assumes that we cannot access the capital markets to issue debt, and during that time we will automatically renew maturing and called advances for all members, including large, highly-rated members, and we hold additional liquid assets equal to one percent of our letters of credit balances. At September 30, 2025 and December 31, 2024, we were in compliance with this base case liquidity guidance.

The Liquidity Guidance AB also specifies appropriate funding gap limits to address the risks associated with an FHLBank having too large a mismatch between the contractual maturities of its assets and liabilities. A funding gap measures the difference between assets and liabilities that are scheduled to mature during a specified period and is expressed as a percentage of total assets. The guidance provides recommended funding gap maximums of negative 15 percent at the three-month horizon and negative 30 percent at the one-year horizon. At September 30, 2025 and December 31, 2024, we adhered to these funding gap requirements.

**Capital** 

CAPITAL REQUIREMENTS

&nbsp;&nbsp;&nbsp;&nbsp;We are subject to certain regulatory capital requirements. First, the FHLBank Act requires that we maintain at all times permanent capital greater than or equal to the sum of our credit, market, and operational risk capital requirements, all calculated in accordance with Finance Agency regulations. Only permanent capital, defined as the amounts paid-in for Class B capital stock (including MRCS), and retained earnings, can satisfy this risk-based capital requirement. Second, the FHLBank Act requires a minimum four percent capital-to-asset ratio, which is defined as total regulatory capital divided by total assets. Total regulatory capital includes Class B capital stock (including MRCS) and retained earnings. Third, the FHLBank Act imposes a five percent minimum leverage ratio, which is defined as the sum of permanent capital weighted 1.5 times and nonpermanent capital weighted 1.0 times, divided by total assets. At September 30, 2025 and December 31, 2024, we did not hold any nonpermanent capital. At September 30, 2025 and December 31, 2024, we were in compliance with all three of the Finance Agency's regulatory capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;In addition to the requirements previously discussed, the Capital Stock AB requires each FHLBank to maintain at all times a ratio of at least two percent of capital stock to total assets. For purposes of the Capital Stock AB, capital stock includes MRCS. The capital stock to total assets ratio is measured on a daily average basis at month end. At September 30, 2025 and December 31, 2024, we were in compliance with the Capital Stock AB.

Refer to "<u>[Item 1. Financial Statements — Note 8 — Capital](#ic22ef7503b884254b4102efa37a7dfc0_5239)</u>" for additional information on our regulatory capital requirements.

CAPITAL STOCK

Our capital stock has a par value of $100 per share, and all shares are issued, redeemed, and repurchased only at the stated par value. We issue a single class of capital stock (Class B capital stock) and have two subclasses of Class B capital stock: membership and activity-based. Each member must purchase and hold membership capital stock in an amount equal to 0.06 percent of its total assets as of the preceding December 31<sup>st</sup>, subject to a cap of $10.0 million and a floor of $10,000. Each member is also required to purchase activity-based capital stock equal to 4.50 percent of its advances, 4.00 percent of mortgage loans outstanding, and 0.10 percent of its standby letters of credit. All Class B capital stock issued is subject to a notice of redemption period of five years.

The capital stock requirements established in our Capital Plan are designed so that we can remain adequately capitalized as member activity changes. Our Board of Directors may make adjustments to the capital stock requirements within ranges established in our Capital Plan.

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The following table summarizes our regulatory capital stock by type of member (dollars in millions):

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| | | |
|:---|:---|:---|
| | September 30,<br>2025 | December 31,<br>2024 |
| Commercial banks | $3041 | $2804 |
| Savings institutions | 95 | 122 |
| Credit unions | 858 | 928 |
| Insurance companies | 2479 | 2134 |
| CDFIs | 1 | 1 |
| Total GAAP capital stock | 6474 | 5989 |
| MRCS | 31 | 9 |
| Total regulatory capital stock | $6505 | $5998 |

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The increase in regulatory capital stock held at September 30, 2025, when compared to December 31, 2024, was due primarily to an increase in activity-based capital stock resulting from an increase in advance balances. For additional information on our capital stock, refer to "<u>[Item 1. Financial Statements — Note 8 — Capital](#ic2daaf281fcb421c950a3a035a26a343_82)</u>."

**Retained Earnings**

Our risk management policies outline a targeted level of retained earnings based on the amount we believe necessary to help protect the redemption value of capital stock, facilitate safe and sound operations, maintain regulatory capital ratios, and support our ability to pay a relatively stable dividend. We monitor our achievement of this targeted level and may utilize tools such as restructuring our balance sheet, generating additional income, reducing our risk exposures, increasing capital stock requirements, or reducing our dividends to achieve this level of retained earnings. At September 30, 2025 and December 31, 2024, our actual retained earnings exceeded our targeted level of retained earnings.

We entered into a JCE Agreement with all of the other Federal Home Loan Banks in 2011. Under the JCE Agreement, we are required to allocate 20 percent of our quarterly net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of our average balance of outstanding consolidated obligations for the calendar quarter. The restricted retained earnings are not available to pay dividends and are presented separately on our Statements of Condition. At September 30, 2025 and December 31, 2024, our restricted retained earnings balance totaled $1.2 billion and $1.1 billion. One percent of our average balance of outstanding consolidated obligations for the three months ended September 30, 2025, was $1.9 billion.

**Dividends** 

Our dividend philosophy is to pay a consistent dividend equal to or greater than the current market rate for a highly-rated investment (i.e. SOFR), and at a rate that the Board of Directors believes is sustainable under current and projected earnings to maintain an appropriate level of capital and retained earnings. Our dividend is determined quarterly by our Board of Directors, based on policies, regulatory requirements, actual performance, and other considerations that the Board of Directors determines to be appropriate.

The following table summarizes dividend-related information (dollars in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | For the Three Months Ended | For the Three Months Ended | For the Nine Months Ended | For the Nine Months Ended |
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| Aggregate cash dividends paid<sup>1</sup> | $145 | $141 | $418 | $424 |
| Effective combined annualized dividend rate paid on capital stock<sup>2</sup> | 9.16% | 8.96% | 9.15% | 8.55% |
| Annualized dividend rate paid on membership capital stock | 6.00% | 6.00% | 6.00% | 5.19% |
| Annualized dividend rate paid on activity-based capital stock | 9.75% | 9.50% | 9.75% | 9.25% |
| Average SOFR | 4.33% | 5.28% | 4.33% | 5.30% |

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1&nbsp;&nbsp;&nbsp;&nbsp;Includes aggregate cash dividends paid during the period. Amount excludes cash dividends paid on MRCS. For financial reporting purposes, these dividends were recorded as interest expense on our Statements of Income.

2&nbsp;&nbsp;&nbsp;&nbsp;Effective combined annualized dividend rate is paid on total capital stock, including MRCS.

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**CRITICAL ACCOUNTING ESTIMATES**

For a discussion of our critical accounting estimates, refer to our 2024 Form 10-K. There have been no material changes to our critical accounting estimates during the nine months ended September 30, 2025.

For a discussion of recently adopted or issued accounting standards, refer to "<u>[Item 1. Financial Statements — Note 2 — Recently Adopted and Issued Accounting Guidance](#ic2daaf281fcb421c950a3a035a26a343_43)</u>."

**LEGISLATIVE AND REGULATORY DEVELOPMENTS** 

**Regulatory Environment**

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

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

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory actions and the ultimate impact they may have on us and the FHLBank System. For a discussion of related risks, see "Item 1A. Risk Factors" in our 2024 Form 10-K.

**RISK MANAGEMENT**

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

We have risk management policies, established by our Board of Directors, that allow us to monitor and control our exposure to various risks, including interest rate, liquidity, credit, operational, model, information security, legal, regulatory and compliance, strategic, and reputational, as well as capital adequacy. Our primary risk management objective is to manage our assets and liabilities in ways that ensure liquidity is available to our members and protect the par redemption value of our capital stock. We periodically evaluate our risk management policies in order to respond to changes in our financial position and general market conditions. The following sections outline our interest rate and credit risks. For additional details on all other risks noted above, please refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management" in our 2024 Form 10-K.

**Interest Rate Risk** 

We define interest rate risk as the risk that changes in interest rates or spreads will adversely affect our financial condition (market value) or performance (income). Interest rate risk is the principal type of risk to which we are exposed, as our cash flows, and therefore earnings and equity value, can change significantly as interest rates change. Our general approach toward managing interest rate risk is to acquire and maintain a portfolio of assets, liabilities, and derivatives which, taken together, limit our expected exposure to interest rate risk. Our key interest rate risk measures are MVE and Projected 24-Month Income. Management regularly monitors these key measures, as discussed further in the sections below.

MARKET VALUE OF EQUITY

MVE measures the net present value of the Bank by either marking positions to market or discounting all future cash flows using market discount rates. MVE is measured as the market value of our assets minus the market value of our liabilities (excluding MRCS). MVE is an estimate of the Bank's value and takes into account short-term market price fluctuations.

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We monitor and manage to MVE policy limits in an effort to ensure the stability of the Bank's value. Our policy limits are based on declines from the base case in parallel and non-parallel interest rate change scenarios. Any policy limit breach must be reported to the Enterprise Risk Committee of the Bank and the Risk and Compliance Committee of the Board of Directors and be remediated in a timely manner. At September 30, 2025 and December 31, 2024, our base case MVE was $10.3 billion and $9.4 billion, and the increase between periods was primarily due to an increase in activity-based capital stock. At September 30, 2025 and December 31, 2024, we were in compliance with all MVE policy limits.

MVCS represents our MVE divided by the total outstanding shares of our capital stock (including MRCS). To ensure we remain adequately capitalized, we must ensure our MVCS remains at or above our $100 par value. Our base case MVCS was $159.0 at September 30, 2025, compared to $156.7 at December 31, 2024. The increase in our base case MVCS was primarily attributable to the increase in retained earnings and improved valuations of multifamily MBS.

For more information on this risk measure, including policy limits, refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Market Value of Equity" in our 2024 Form 10-K.

PROJECTED 24-MONTH INCOME

The projected 24-month income simulation measures our short-term earnings forecast over a two-year horizon based on forward interest rates and business assumptions. Our primary measure of profitability is the spread between projected AROCS and average SOFR. In this measure, AROCS adjusts GAAP net income for certain non-routine or unpredictable items, including, but not limited to, market adjustments relating to derivative and hedging activities and instruments held at fair value, net asset prepayment fee income, MRCS interest expense, and other non-routine items, if applicable.

We monitor and manage to policy limits, which are based on the spread between our projected AROCS and average SOFR in parallel and non-parallel interest rate change scenarios. Additionally, there is a limit on the decline in projected AROCS from base case AROCS for certain basis shock scenarios to limit basis risk exposure. Any policy limit breach must be reported to the Enterprise Risk Committee of the Bank and the Risk and Compliance Committee of the Board of Directors and be remediated in a timely manner.

Effective January 1, 2025, our policy limit for the decline in projected AROCS from base case AROCS for the basis shock scenarios was updated from 175 to 100 basis points over a 24-month horizon. We were in compliance with all projected 24-month income policy limits at September 30, 2025 and December 31, 2024.

For more information on this risk measure, refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Projected 24-Month Income" in our 2024 Form 10-K.

CAPITAL ADEQUACY

An adequate capital position is necessary for facilitating safe and sound business operations, protecting the redemption value of our capital stock, maintaining regulatory capital ratios, and supporting our ability to pay dividends and redeem excess capital stock. To ensure capital adequacy, we maintain a targeted level of retained earnings to achieve business imperatives and cover unexpected losses. Our key capital adequacy measures are regulatory capital and targeted retained earnings in order to maintain capital levels in accordance with Finance Agency regulations. In addition, our risk management policies require that we maintain MVCS at or above our $100 par value.

For additional information on our compliance with regulatory capital requirements as well as our targeted retained earnings, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Capital.](#if8959a5f3fcf4bb4a8ebb893d66ab7c6_12810)</u>"

For additional information on MVCS, refer to "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Market Value of Equity.](#i2345610e27b44a709073ee97e9b1cc2d_17823)</u>"

**Credit Risk**

&nbsp;&nbsp;&nbsp;&nbsp;We define credit risk as the risk that a member or counterparty will fail to meet its financial obligations. Our primary credit risks arise from our ongoing lending, investing, and hedging activities. Our overall objective in managing credit risk is to operate a sound credit granting process and to maintain appropriate credit administration, measurement, and monitoring practices.

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ADVANCES

&nbsp;&nbsp;&nbsp;&nbsp;We manage our credit exposure to advances through a lending policy that provides for an established credit limit for each borrower, ongoing reviews of each borrower's financial condition and ability to repay, and detailed collateral and lending policies to limit risk of loss while balancing borrowers' needs for a reliable source of funding. In addition, we lend to our borrowers in accordance with the FHLBank Act, Finance Agency regulations, and other applicable laws.

We are required by regulation to evaluate our members' creditworthiness and ability to repay, and to obtain sufficient collateral to fully secure our advances, standby letters of credit, and other extensions of credit to borrowers (collectively, credit products). The estimated value of the collateral required to secure each borrower's credit products is calculated by applying loan-to-value discounts, or haircuts, to the unpaid principal or market value, as applicable, of the collateral. We also have policies and procedures for validating the reasonableness of our collateral valuations. In addition, we perform collateral verifications and on-site reviews based on the risk profile of the borrower. Management believes that these policies effectively manage our credit risk from advances.

At September 30, 2025 and December 31, 2024, borrowers pledged $408.2 billion and $388.8 billion of collateral (net of applicable discounts) to support activity with us, including advances. At September 30, 2025 and December 31, 2024, all of our advances met the requirement to be collateralized at a minimum of 100 percent, net of applicable discounts. Borrowers pledge collateral in excess of their collateral requirement mainly to demonstrate available liquidity and to borrow additional amounts in the future.&nbsp;&nbsp;&nbsp;&nbsp;

We evaluate advances for credit losses on a quarterly basis. We have never experienced a credit loss on our advances. Based upon our collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on our advances as of September 30, 2025 and December 31, 2024. Refer to "<u>[Item 1. Financial Statements — Note 4 — Advances](#ic2daaf281fcb421c950a3a035a26a343_58)</u>" for additional information on our allowance for credit losses.

MORTGAGE LOANS

Mortgage loan credit risk is the risk that we will not receive timely payments of principal and interest due from mortgage borrowers because of borrower defaults. Credit risk on mortgage loans is affected by a number of factors, including loan type, borrower's credit history, and other factors such as home price fluctuations, unemployment levels, and other economic factors in the local market or nationwide.

The following table presents the unpaid principal balance of our mortgage loans by product type (dollars in millions):

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| | | |
|:---|:---|:---|
| Product Type | September 30,<br>2025 | December 31,<br>2024 |
| Conventional | $13510 | $11452 |
| Government | 357 | 365 |
| Total unpaid principal balance | $13867 | $11817 |

---

We manage the credit risk on mortgage loans by (i) adhering to our underwriting standards, (ii) using agreements to establish credit risk sharing responsibilities with our PFIs, and (iii) monitoring the performance of the mortgage loan portfolio and creditworthiness of PFIs.

We evaluate mortgage loans for credit losses on a quarterly basis and establish an allowance for credit losses to reflect management's estimate of expected credit losses inherent in the portfolio. At both September 30, 2025 and December 31, 2024, we had an allowance for credit losses of $5 million on our conventional mortgage loans. At September 30, 2025, over 99 percent of our conventional loan portfolio was performing (i.e. current payment status) and charge-offs recorded during the nine months ended September 30, 2025, were less than one percent of the total conventional portfolio.

We have never experienced a credit loss on our government-insured mortgage loans. At September 30, 2025 and December 31, 2024, we determined no allowance for credit losses was necessary on our government-insured mortgage loans. Refer to "<u>[Item 1. Financial Statements — Note 5 — Mortgage Loans Held for Portfolio](#ic2daaf281fcb421c950a3a035a26a343_64)</u>" for additional information on our allowance for credit losses and the payment status of our conventional mortgage loans.

------

<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

INVESTMENTS

&nbsp;&nbsp;&nbsp;&nbsp;We maintain an investment portfolio primarily to provide liquidity as well as investment income. Our primary credit risk on investments is the counterparties' ability to meet repayment terms. We mitigate this credit risk by purchasing investment quality securities. We define investment quality as a security with adequate financial backing so that full and timely payment of principal and interest on such security is expected and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security. We consider a variety of credit quality factors when analyzing potential investments, including collateral performance, marketability, asset class or sector considerations, local and regional economic conditions, NRSRO credit ratings, and/or the financial health of the underlying issuer. We limit our purchases of MBS to those guaranteed by the U.S. Government or issued by a GSE. We perform ongoing analysis on these investments to determine potential credit issues.

Finance Agency regulations also limit the type of investments we may purchase. We are prohibited from investing in financial instruments issued by non-U.S. entities other than those issued by U.S. branches and agency offices of foreign commercial banks, unless otherwise approved by the Finance Agency. At September 30, 2025, we were in compliance with the regulation and did not own any financial instruments issued by non-U.S. entities, other than those issued by U.S. branches and agency offices of foreign commercial banks, and those approved by the Finance Agency.

In addition, Finance Agency regulations include limits on the amount of unsecured credit we may extend to a counterparty or to a group of affiliated counterparties. These limits are based on a percentage of regulatory capital and the counterparty's overall credit rating. At September 30, 2025, we were in compliance with the regulatory limits established for unsecured credit.

Refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk" in our 2024 Form 10-K for additional information on these regulatory limits.

Our short-term portfolio may include, but is not limited to, interest-bearing deposits, federal funds sold, securities purchased under agreements to resell, certificates of deposit, commercial paper, and U.S. Treasury obligations. Our long-term portfolio may include, but is not limited to, U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, taxable municipal bonds, and agency MBS. We consider our long-term investments issued or guaranteed by the U.S. Government, an agency or instrumentality of the U.S. Government, or the Federal Deposit Insurance Corporation to be of the highest credit quality and therefore those exposures are not monitored with other unsecured investments. Given the credit quality of our unsecured long-term investments, our unsecured credit risk is primarily in the short-term portfolio.

We limit short-term unsecured credit exposure primarily to the following overnight investment types:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Federal funds sold.* Unsecured loans of reserve balances at the Federal Reserve Banks between financial institutions.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

At September 30, 2025, our unsecured short-term investment exposure consisted of overnight interest-bearing deposits and federal funds sold. The following table presents our unsecured short-term investment exposure by counterparty credit rating and domicile (dollars in millions):

---

| | | | |
|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Credit Rating<sup>1,2</sup> | Credit Rating<sup>1,2</sup> | Credit Rating<sup>1,2</sup> |
| Domicile of Counterparty | AA | A | Total |
| Domestic | $1200 | $3190 | $4390 |
| U.S. branches and agency offices of foreign commercial banks |  |  |  |
| &nbsp;&nbsp;&nbsp;Australia | 1390 |  | 1390 |
| &nbsp;&nbsp;&nbsp;Canada |  | 2200 | 2200 |
| &nbsp;&nbsp;&nbsp;Finland | 850 |  | 850 |
| &nbsp;&nbsp;&nbsp;France |  | 300 | 300 |
| &nbsp;&nbsp;&nbsp;Germany | 1500 |  | 1500 |
| &nbsp;&nbsp;&nbsp;Netherlands |  | 750 | 750 |
| &nbsp;&nbsp;&nbsp;Norway | 600 |  | 600 |
| &nbsp;&nbsp;&nbsp;Sweden | 600 |  | 600 |
| &nbsp;&nbsp;&nbsp;United Kingdom |  | 600 | 600 |
| Total U.S. branches and agency offices of foreign commercial banks | 4940 | 3850 | 8790 |
| Total unsecured short-term investment exposure | $6140 | $7040 | $13180 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents either the lowest credit rating available for each counterparty based on an NRSRO, or the guarantor credit rating, if applicable. In instances where an NRSRO rating or guarantor rating is not available for the investment, the investment is classified as unrated.

2&nbsp;&nbsp;&nbsp;&nbsp;Table excludes investments issued or guaranteed by the U.S. Government, U.S. government agencies, government instrumentalities, GSEs, and supranational entities, and does not include related accrued interest.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

*Investment Ratings*

The following table summarizes the carrying value of our investments by credit rating (dollars in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| | Credit Rating<sup>1</sup> | Credit Rating<sup>1</sup> | Credit Rating<sup>1</sup> | Credit Rating<sup>1</sup> | Credit Rating<sup>1</sup> |
| | AAA | AA | A | Unrated | Total |
| Interest-bearing deposits<sup>2</sup> | $— | $1201 | $3190 | $— | $4391 |
| Securities purchased under agreements to resell |  |  | 4700 | 11400 | 16100 |
| Federal funds sold |  | 4940 | 3850 |  | 8790 |
| Investment securities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;MBS |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE single-family |  | 539 |  |  | 539 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE multifamily |  | 20905 |  |  | 20905 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. obligations single-family<sup>3</sup> |  | 5718 |  |  | 5718 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private-label residential |  |  |  | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total MBS |  | 27162 |  | 2 | 27164 |
| &nbsp;&nbsp;&nbsp;Non-MBS |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury obligations<sup>3</sup> |  | 6592 |  |  | 6592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other U.S. obligations<sup>3</sup> |  | 86 |  |  | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE and TVA obligations |  | 711 |  |  | 711 |
| &nbsp;&nbsp;&nbsp;&nbsp;State or local housing agency obligations | 260 | 134 |  |  | 394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other<sup>4</sup> | 113 | 19 |  |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-MBS | 373 | 7542 |  |  | 7915 |
| Total investments | $373 | $40845 | $11740 | $11402 | $64360 |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents either the lowest credit rating available for each investment based on an NRSRO, or the guarantor credit rating, if applicable. In instances where an NRSRO rating or guarantor rating is not available for the investment, the investment is classified as unrated.

2&nbsp;&nbsp;&nbsp;&nbsp;Balance includes $1 million of interest-bearing deposits with another FHLBank. These investments are rated AA, based on the credit rating of the FHLBank System.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents investment securities backed by the full faith and credit of the U.S. Government.

4&nbsp;&nbsp;&nbsp;&nbsp;Consists of taxable municipal bonds.

We evaluate investments for credit losses on a quarterly basis. At September 30, 2025 and December 31, 2024, we determined no allowance for credit losses was necessary on our investments. Refer to "<u>[Item 1. Financial Statements — Note 3 — Investments](#ic2daaf281fcb421c950a3a035a26a343_52)</u>" for additional information on our allowance for credit losses.

DERIVATIVES

&nbsp;&nbsp;&nbsp;&nbsp;We execute most of our derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty, referred to as uncleared derivatives, or cleared through a clearing agent with a clearinghouse, referred to as cleared derivatives.

We are subject to credit risk due to the risk of nonperformance by counterparties to our derivative agreements. The amount of credit risk on derivatives depends on the extent to which netting procedures and collateral requirements are used and are effective in mitigating the risk. We manage credit risk through credit analysis of derivative counterparties, collateral requirements, and adherence to the requirements set forth in our policies, CFTC regulations, and Finance Agency regulations.

Uncleared derivative transactions executed on or after September 1, 2022 are subject to two-way initial margin requirements as mandated by the Dodd-Frank Act, if our aggregate uncleared derivative transactions exposure to a counterparty exceeds a specified threshold. The initial margin is required to be held at a third-party custodian and does not change ownership. Rather, the party in respect of which the initial margin has been posted to the third-party custodian will have a security interest in the amount of initial margin required under the uncleared margin rules and can only take ownership upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding. As of October 31, 2025, we were not required to post initial margin on our uncleared derivative transactions in accordance with the noted regulations.

For uncleared transactions, the derivative agreements are fully collateralized with a zero unsecured threshold in accordance with variation margin requirements issued by the U.S. federal bank regulatory agencies and the CFTC.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

The contractual or notional amount of derivatives reflects our involvement in the various classes of financial instruments. Our maximum credit risk is the estimated cost of replacing derivatives if there is a default, minus the value of any related collateral. In determining maximum credit risk, we consider accrued interest receivables and payables as well as our ability to net settle positive and negative positions with the same counterparty and/or clearing agent when netting requirements are met.

The following table shows our derivative counterparty credit exposure (dollars in millions):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 |
| Credit Rating<sup>1</sup> | Notional Amount | Net Derivatives<br>Fair Value Before Collateral | Cash Collateral Pledged <br>To (From) Counterparty | Non-cash Collateral Pledged To (From) Counterparty | Net Credit Exposure<br> to Counterparties |
| Non-member counterparties: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset positions with credit exposure |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Uncleared derivatives |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA<sup>2</sup> | $172 | $11 | $(11) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A | 2873 | 28 | (27) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB<sup>2</sup> | 4452 | 19 | (19) |  |  |
| &nbsp;&nbsp;&nbsp;Liability positions with credit exposure |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleared derivatives<sup>3</sup> | 159613 | (37) | 1 | 1442 | 1406 |
| Total derivative positions with credit exposure to non-member counterparties | 167110 | 21 | (56) | 1442 | 1407 |
| Member institutions<sup>2,4</sup> | 62 |  |  |  |  |
| Total | 167172 | $21 | $(56) | $1442 | $1407 |
| Derivative positions without credit exposure | 15995 |  |  |  |  |
| Total notional | $183167 |  |  |  |  |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Represents either the lowest credit rating available for each counterparty based on an NRSRO, or the guarantor credit rating, if applicable.

2&nbsp;&nbsp;&nbsp;&nbsp;Net credit exposure is less than $1 million.

3&nbsp;&nbsp;&nbsp;&nbsp;Represents derivative transactions cleared with CME Clearing and LCH Ltd., our clearinghouses. CME Clearing is not rated, but its parent, CME Group Inc. was rated Aa3 by Moody's and AA- by S&P at September 30, 2025. LCH Ltd. was rated AA- by S&P at September 30, 2025.

4&nbsp;&nbsp;&nbsp;&nbsp;Represents mortgage loan purchase commitments with our member institutions.

Refer to "<u>[Item 1. Financial Statements — Note 6 — Derivatives and Hedging Activities](#ic2daaf281fcb421c950a3a035a26a343_70)</u>" for additional information on our derivatives and hedging activities.

**<u>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>**

See "<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk](#i2345610e27b44a709073ee97e9b1cc2d_17822)</u>" and the sections referenced therein for quantitative and qualitative disclosures about market risk.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**<u>ITEM 4. CONTROLS AND PROCEDURES</u>**

**Evaluation of Disclosure Controls and Procedures** 

Management is responsible for establishing and maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms; and (ii) accumulated and communicated to our management, including our President and CEO, and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management, with the participation of our President and CEO, and CFO, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the quarterly period covered by this report. Based on that evaluation, our President and CEO, and CFO have concluded that our disclosure controls and procedures were effective as of September 30, 2025.

**Changes in Internal Control over Financial Reporting**

During the quarter ended September 30, 2025, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**<u>PART II - OTHER INFORMATION</u>**

**<u>ITEM 1. LEGAL PROCEEDINGS</u>**

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

Refer to "<u>[Item 1. Financial Statements — Note 10 — Commitments and Contingencies](#ic2daaf281fcb421c950a3a035a26a343_97)</u>" for information regarding legal proceedings.

**<u>ITEM 1A. RISK FACTORS</u>**

For a discussion of our risk factors, refer to our 2024 Form 10-K. There have been no material changes to our risk factors during the nine months ended September 30, 2025.

**<u>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</u>**

Not applicable.

**<u>ITEM 3. DEFAULTS UPON SENIOR SECURITIES</u>**

None.

**<u>ITEM 4. MINE SAFETY DISCLOSURES</u>**

Not applicable.

**<u>ITEM 5. OTHER INFORMATION</u>**

None.

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**<u>ITEM 6. EXHIBITS</u>**

---

| | |
|:---|:---|
| 3.1 | <u>[Organization Certificate of the Federal Home Loan Bank of Des Moines, as amended and restated effective May 31, 2015](https://www.sec.gov/Archives/edgar/data/1325814/000132581415000102/exhibit31organizationalcer.htm)</u><sup>1</sup> |
| 3.2 | <u>[Bylaws of the Federal Home Loan Bank of Des Moines, as amended and restated effective December 8, 2021](https://www.sec.gov/Archives/edgar/data/1325814/000132581425000046/bylawsofthefederalhomelo.htm)</u><sup>2</sup> |
| 4.1 | <u>[Federal Home Loan Bank of Des Moines Capital Plan, as amended and approved by the Federal Housing Finance Agency on May 31, 2015](https://www.sec.gov/Archives/edgar/data/1325814/000132581424000046/capitalplan12-2023.htm)</u><sup>3</sup> |
| 31.1 | <u>[Certification of the President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q325exhibit311ceo302.htm)</u> |
| 31.2 | <u>[Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q325exhibit312cfo302.htm)</u> |
| 32.1 | <u>[Certification of the President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q325exhibit321ceo906.htm)</u> |
| 32.2 | <u>[Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q325exhibit322cfo906.htm)</u> |
| 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. |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |

---

1&nbsp;&nbsp;&nbsp;&nbsp;Incorporated by reference from our Form 8-K filed with the SEC on June 1, 2015 (Commission File No. 000-51999).

2&nbsp;&nbsp;&nbsp;&nbsp;Incorporated by reference from our Form 10-K filed with the SEC on March 7, 2025 (Commission File No. 000-51999).

3&nbsp;&nbsp;&nbsp;&nbsp;Incorporated by reference from our Form 10-K filed with the SEC on March 7, 2024 (Commission File No. 000-51999).

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**Glossary of Terms**

---

| |
|:---|
| **2024 Form 10-K**: The Bank's 2024 Annual Report on Form 10-K filed with the SEC on March 7, 2025 |
| **AB**: Advisory Bulletin |
| **AFS**: Available-for-Sale |
| **AHP**: Affordable Housing Program |
| **AOCI**: Accumulated Other Comprehensive Income (Loss) |
| **AROCS**: Adjusted Return on Capital Stock |
| **ASU**: Accounting Standards Update |
| **Capital Stock AB**: Finance Agency Advisory Bulletin on Capital Stock 2019-03 |
| **CDFI**: Community Development Financial Institution |
| **CEO**: Chief Executive Officer |
| **CFO**: Chief Financial Officer |
| **CFTC**: U.S. Commodity Futures Trading Commission |
| **CODM**: Chief Operating Decision Maker |
| **Dodd-Frank Act:** Dodd-Frank Wall Street Reform and Consumer Protection Act  |
| **Exchange Act**: Securities Exchange Act of 1934, as amended |
| **FASB**: Financial Accounting Standards Board |
| **FHLBank Act**: Federal Home Loan Bank Act of 1932 |
| **FHLBanks**: The 11 Federal Home Loan Banks or a subset thereof |
| **Finance Agency**: Federal Housing Finance Agency |
| **FLA**: First Loss Account |
| **FOMC**: Federal Open Markets Committee |
| **GAAP**: Generally Accepted Accounting Principles |
| **GSE**: Government-Sponsored Enterprise |
| **HTM**: Held-to-Maturity |
| **JCE Agreement**: Joint Capital Enhancement Agreement entered into by the FHLBanks in 2011, as amended |
| **LCH**: London Clearing House |
| **Liquidity Guidance AB**: Finance Agency Advisory Bulletin on FHLBank Liquidity 2018-07 |
| **MBS**: Mortgage-Backed Securities |
| **MD&A**: Management's Discussion and Analysis |
| **Moody's**: Moody's Investors Service, Inc. |
| **MPF**: Mortgage Partnership Finance (a federally registered trademark of the Federal Home Loan Bank of Chicago) |
| **MRCS**: Mandatorily Redeemable Capital Stock |
| **MVCS**: Market Value of Capital Stock |
| **MVE**: Market Value of Equity |
| **NRSRO**: Nationally Recognized Statistical Rating Organization |
| **PFI:** Participating Financial Institution |
| **S&P**: S&P Global Ratings |
| **SEC**: Securities and Exchange Commission |
| **SOFR**: Secured Overnight Financing Rate |
| **TVA**: Tennessee Valley Authority |

---

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<u>[**Table of Contents**](#ic2daaf281fcb421c950a3a035a26a343_10)</u>

**<u>SIGNATURES</u>**

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

---

| | |
|:---|:---|
| **FEDERAL HOME LOAN BANK OF DES MOINES** | **FEDERAL HOME LOAN BANK OF DES MOINES** |
| *(Registrant)* | *(Registrant)* |
| Date: | November 7, 2025 |
| By: | */s/ Kristina K. Williams* |
|  | Kristina K. Williams<br>President and Chief Executive Officer |
| By: | */s/ James G. Livingston* |
|  | James G. Livingston<br>Chief Financial Officer <br>(Principal Financial and Accounting Officer) |

---

## Exhibit 31.1

**EXHIBIT 31.1**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

**for the President and Chief Executive Officer**

&nbsp;&nbsp;&nbsp;&nbsp;I, Kristina K. Williams, certify that:

---

| | |
|:---|:---|
| 1 | I have reviewed this quarterly report on Form 10-Q of the Federal Home Loan Bank of Des Moines; |
| 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(s) 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 15(d)-15(f)) for the registrant and 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, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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 registrants 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(s) 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: November 7, 2025 | */s/ Kristina K. Williams* |
| | Kristina K. Williams |
| | President and Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

**for the Chief Financial Officer**

&nbsp;&nbsp;&nbsp;&nbsp;I, James G. Livingston, certify that:

1 I have reviewed this quarterly report on Form 10-Q of the Federal Home Loan Bank of Des Moines;

---

| | |
|:---|:---|
| 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(s) 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 15(d)-15(f)) for the registrant and 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, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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(s) 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: November 7, 2025 | */s/ James G. Livingston* |
| | James G. Livingston |
| | Chief Financial Officer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**Certification by the President and Chief Executive Officer**

**Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** 

I, Kristina K. Williams, President and Chief Executive Officer of the Federal Home Loan Bank of Des Moines ("Registrant") certify that, to the best of my knowledge:

1 The Registrant's Quarterly Report on Form 10-Q for the period ended September 30, 2025 ("Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

---

| | |
|:---|:---|
| Date: November 7, 2025 | */s/ Kristina K. Williams* |
| | Kristina K. Williams |
| | President and Chief Executive Officer |

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## Exhibit 32.2

**EXHIBIT 32.2**

**Certification by the Chief Financial Officer**

**Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** 

I, James G. Livingston, Chief Financial Officer of the Federal Home Loan Bank of Des Moines ("Registrant") certify that, to the best of my knowledge:

1 The Registrant's Quarterly Report on Form 10-Q for the period ended September 30, 2025 ("Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

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| | |
|:---|:---|
| Date: November 7, 2025 | */s/ James G. Livingston* |
| | James G. Livingston |
| | Chief Financial Officer |

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