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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2024

OR

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

Commission File Number:  000-51404

FEDERAL HOME LOAN BANK OF INDIANAPOLIS

(Exact name of registrant as specified in its charter)

Federally Chartered Corporation						35-6001443
(State or other jurisdiction of incorporation)						(IRS employer identification number)
8250 Woodfield Crossing Blvd. Indianapolis, IN						46240
(Address of principal executive offices)						(Zip code)

(317) 465-0200

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

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

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
None			None			None

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 for the past 90 days.

x  Yes            o  No

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

x   Yes            o  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

☐

Emerging growth company

x

Non-accelerated filer

☐

Smaller reporting company

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

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

☐  Yes            x  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 April 30, 2024
Class A Stock, par value $100			—
Class B Stock, par value $100			27,357,111

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Table of Contents						Page
						Number
			Special Note Regarding Forward-Looking Statements			3
PART I.			FINANCIAL INFORMATION
Item 1.			FINANCIAL STATEMENTS (unaudited)
			Statements of Condition as of March 31, 2024 and December 31, 2023			4
			Statements of Income for the Three Months Ended March 31, 2024 and 2023			5
			Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023			6
			Statements of Capital for the Three Months Ended March 31, 2024 and 2023			7
			Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023			8
			Notes to Financial Statements:
			Note 1 - Summary of Significant Accounting Policies			10
			Note 2 - Recently Adopted and Issued Accounting Guidance			10
			Note 3 - Investments			10
			Note 4 - Advances			14
			Note 5 - Mortgage Loans Held for Portfolio			15
			Note 6 - Derivatives and Hedging Activities			16
			Note 7 - Consolidated Obligations			19
			Note 8 - Affordable Housing Program			21
			Note 9 - Capital			21
			Note 10 - Accumulated Other Comprehensive Income			23
			Note 11 - Segment Information			23
			Note 12 - Estimated Fair Values			24
			Note 13 - Commitments and Contingencies			28
			Note 14 - Related Party and Other Transactions			29
			Defined Terms			30
Item 2.			MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
			Presentation			31
			Executive Summary			31
			Results of Operations and Changes in Financial Condition			33
			Operating Segments			38
			Analysis of Financial Condition			39
			Liquidity			47
			Capital Resources			47
			Critical Accounting Estimates			49
			Recent Accounting and Regulatory Developments			50
			Risk Management			51
Item 3.			QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			54
Item 4.			CONTROLS AND PROCEDURES			55
PART II.			OTHER INFORMATION
Item 1.			LEGAL PROCEEDINGS			56
Item 1A.			RISK FACTORS			56
Item 2.			UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			56
Item 3.			DEFAULTS UPON SENIOR SECURITIES			56
Item 4.			MINE SAFETY DISCLOSURES			56
Item 5.			OTHER INFORMATION			56
Item 6.			EXHIBITS			57

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As used in this Form 10-Q, unless the context otherwise requires, the terms "we," "us," "our," and "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout that are defined herein or in the Defined Terms in Part I Item 1.

Special Note Regarding Forward-Looking Statements

Statements in this Form 10-Q, including statements describing our objectives, projections, estimates or predictions, may be considered to be "forward-looking statements." These statements may use forward-looking terminology, such as "anticipates," "believes," "could," "estimates," "may," "should," "expects," "will," or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty and that actual results either could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the following:

•economic and market conditions, including the timing and volume of market activity, inflation or deflation, changes in the value of global currencies, and changes in the financial condition of market participants;

•volatility of market prices, interest rates, and indices or the availability of suitable interest rate indices, or other factors, resulting from the effects of, and changes in, various monetary or fiscal policies and regulations, including those of the Federal Reserve, the Finance Agency and the Federal Deposit Insurance Corporation, or a decline in liquidity in the financial markets, that could affect the value of investments, or collateral we hold as security for the obligations of our members and counterparties;

•changes in demand for our advances and purchases of mortgage loans resulting from:

◦changes in our members' deposit flows and credit demands;

◦changes in products or services we are able to provide;

◦federal or state regulatory developments impacting suitability or eligibility of membership classes;

◦membership changes, including, but not limited to, mergers, acquisitions and consolidations of charters;

◦changes in the general level of housing activity in the United States and particularly our district states of Michigan and Indiana, the level of refinancing activity and consumer product preferences;

◦competitive forces, including, without limitation, other sources of funding available to our members; and

◦changes in the terms and conditions of ownership of our capital stock;

•changes in mortgage asset prepayment patterns, delinquency rates and housing values or improper or inadequate mortgage originations and mortgage servicing;

•ability to introduce and successfully manage new products and services, including new types of collateral securing advances;

•political events, including federal government shutdowns, administrative, legislative, regulatory, or other developments, including the Finance Agency report on the FHLBank System, changes in international political structures and alliances, and judicial rulings that affect us, our status as a secured creditor, our members (or certain classes of members), prospective members, counterparties, GSE's generally, one or more of the FHLBanks and/or investors in the consolidated obligations of the FHLBanks;

•national or international crises, including a pandemic, war, acts of terrorism or natural disasters, and the effects of such crises on our and our counterparties' operations, member demand, market liquidity, and the global funding markets, and the governmental, regulatory, and fiscal interventions undertaken to stabilize local, national, and global economic conditions;

•ability to access the capital markets and raise capital market funding on acceptable terms;

•changes in our credit ratings or the credit ratings of the other FHLBanks and the FHLBank System;

•changes in the level of government guarantees provided to other United States and International financial institutions;

•dealer commitment to supporting the issuance of our consolidated obligations;

•ability of one or more of the FHLBanks to repay its portion of the consolidated obligations, or otherwise meet its financial obligations;

•ability to attract and retain skilled personnel;

•ability to develop, implement and support technology and information systems sufficient to manage our business effectively and prevent or mitigate the impact of cyber attacks;

•nonperformance of counterparties to uncleared and cleared derivative transactions;

•changes in terms of derivative agreements and similar agreements;

•loss arising from natural disasters, acts of war, riots, insurrection or acts of terrorism;

•changes in or differing interpretations of accounting guidance; and

•other risk factors identified in our filings with the SEC.

Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, additional disclosures may be made through reports filed with the SEC in the future, including our reports on Forms 10-K, 10-Q and 8-K.

3

Table of Contents

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PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

Federal Home Loan Bank of Indianapolis

Statements of Condition

(Unaudited, $ amounts in thousands, except par value)

			March 31, 2024						December 31, 2023
Assets:
Cash and due from banks			$	73,579					$	58,844
Interest-bearing deposits (Note 3)			807,084						892,049
Securities purchased under agreements to resell (Note 3)			2,500,000						6,500,000
Federal funds sold (Note 3)			3,068,000						4,101,000
Trading securities (Note 3)			582,336						600,063
Available-for-sale securities (amortized cost of $14,076,897 and $14,254,103) (Note 3)			14,118,436						14,194,326
Held-to-maturity securities (estimated fair values of $5,213,892 and $5,179,399) (Note 3)			5,270,884						5,256,803
Advances (Note 4)			35,296,762						35,561,844
Mortgage loans held for portfolio, net (Note 5)			8,853,285						8,613,844
Accrued interest receivable			202,349						203,809
Derivative assets, net (Note 6)			489,534						521,164
Other assets			107,974						104,658
Total assets			$	71,370,223					$	76,608,404
Liabilities:
Deposits			$	532,413					$	628,811
Consolidated obligations (Note 7):
Discount notes			16,925,552						22,621,837
Bonds			48,813,044						48,431,566
Total consolidated obligations, net			65,738,596						71,053,403
Accrued interest payable			288,300						327,237
Affordable Housing Program payable (Note 8)			77,586						68,301
Derivative liabilities, net (Note 6)			605						6,940
Mandatorily redeemable capital stock (Note 9)			367,444						369,041
Other liabilities			397,694						410,774
Total liabilities			67,402,638						72,864,507
Commitments and contingencies (Note 13)
Capital (Note 9):
Capital stock (putable at par value of $100 per share):
Class B issued and outstanding shares: 23,567,081 and 22,852,579			2,356,708						2,285,258
Retained earnings:
Unrestricted			1,165,835						1,134,132
Restricted			417,014						398,039
Total retained earnings			1,582,849						1,532,171
Total accumulated other comprehensive income (loss) (Note 10)			28,028						(73,532)
Total capital			3,967,585						3,743,897
Total liabilities and capital			$	71,370,223					$	76,608,404

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

4

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Federal Home Loan Bank of Indianapolis

Statements of Income

(Unaudited, $ amounts in thousands)

									Three Months Ended March 31,
															2024						2023
Interest Income:
Advances															$	514,856					$	434,229
Interest-bearing deposits															30,380						26,253
Securities purchased under agreements to resell															21,982						31,950
Federal funds sold															67,486						45,487
Trading securities															5,167						3,077
Available-for-sale securities															220,367						171,719
Held-to-maturity securities															77,746						48,425
Mortgage loans held for portfolio															77,991						57,755
Total interest income															1,015,975						818,895
Interest Expense:
Consolidated obligation discount notes															250,255						256,776
Consolidated obligation bonds															621,413						446,674
Deposits															9,566						7,686
Mandatorily redeemable capital stock															5,342						4,110
Total interest expense															886,576						715,246
Net interest income															129,399						103,649
Provision for (reversal of) credit losses															(25)						2
Net interest income after provision for (reversal of) credit losses															129,424						103,647
Other Income:
Net gains (losses) on trading securities															(4,571)						8,314
Net gains (losses) on derivatives															9,125						(1,363)
Net gains on extinguishment of debt															—						19,846
Other, net															4,804						3,350
Total other income															9,358						30,147
Other Expenses:
Compensation and benefits															16,541						16,835
Other operating expenses															8,285						7,400
Federal Housing Finance Agency															1,396						1,711
Office of Finance															1,524						1,073
Other, net															5,027						4,451
Total other expenses															32,773						31,470
Income before assessments															106,009						102,324
Affordable Housing Program assessments															11,135						10,643
Net income															$	94,874					$	91,681

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

5

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Federal Home Loan Bank of Indianapolis

Statements of Comprehensive Income

(Unaudited, $ amounts in thousands)

									Three Months Ended March 31,
															2024						2023
Net income															$	94,874					$	91,681
Other Comprehensive Income:
Net change in unrealized gains (losses) on available-for-sale securities															101,316						(47,977)
Pension benefits, net															244						340
Total other comprehensive income (loss)															101,560						(47,637)
Total comprehensive income															$	196,434					$	44,044

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

6

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Federal Home Loan Bank of Indianapolis

Statements of Capital

Three Months Ended March 31, 2024 and 2023

(Unaudited, $ amounts and shares in thousands)

						Capital Stock												Retained Earnings																		Accumulated Other Comprehensive Income (Loss)						Total Capital
						Shares						Par Value						Unrestricted						Restricted						Total
Balance, December 31, 2023						22,852						$	2,285,258					$	1,134,132					$	398,039					$	1,532,171					$	(73,532)					$	3,743,897
Comprehensive income																		75,899						18,975						94,874						101,560						196,434
Proceeds from issuance of capital stock						715						71,450																														71,450
Cash dividends on capital stock (7.79% annualized)																		(44,196)						—						(44,196)												(44,196)
Balance, March 31, 2024						23,567						$	2,356,708					$	1,165,835					$	417,014					$	1,582,849					$	28,028					$	3,967,585
Balance, December 31, 2022						21,231						$	2,123,125					$	963,812					$	322,552					$	1,286,364					$	(25,791)					$	3,383,698
Comprehensive income (loss)																		73,345						18,336						91,681						(47,637)						44,044
Proceeds from issuance of capital stock						1,691						169,080																														169,080
Shares reclassified to mandatorily redeemable capital stock, net						—						(13)																														(13)
Cash dividends on capital stock (4.41% annualized)																		(25,966)						—						(25,966)												(25,966)
Balance, March 31, 2023						22,922						$	2,292,192					$	1,011,191					$	340,888					$	1,352,079					$	(73,428)					$	3,570,843

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

7

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Federal Home Loan Bank of Indianapolis

Statements of Cash Flows

(Unaudited, $ amounts in thousands)

			Three Months Ended March 31,
			2024						2023
Operating Activities:
Net income			$	94,874					$	91,681
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation			17,575						34,639
Changes in net derivative and hedging activities			304,402						(256,942)
Net gains on extinguishment of debt			—						(19,846)
Provision for (reversal of) credit losses			(25)						2
Net losses (gains) on trading securities			4,571						(8,314)
Other adjustments			—						71
Changes in:
Accrued interest receivable			1,511						(3,443)
Other assets			(3,633)						(6,430)
Accrued interest payable			(38,761)						54,877
Other liabilities			(7,726)						17,603
Total adjustments, net			277,914						(187,783)
Net cash provided by (used in) operating activities			372,788						(96,102)
Investing Activities:
Net change in:
Interest-bearing deposits			147,562						342,487
Securities purchased under agreements to resell			4,000,000						(1,075,000)
Federal funds sold			1,033,000						435,000
Trading securities:
Proceeds from maturities			250,000						1,350,000
Proceeds from sales			—						494,063
Purchases			(236,844)						—
Available-for-sale securities:
Proceeds from paydowns and maturities			—						78,980
Purchases			(64,815)						(966,760)
Held-to-maturity securities:
Proceeds from paydowns and maturities			114,267						79,707
Proceeds from sales			—						9,769
Purchases			(129,434)						(365,143)
Advances:
Principal repayments			62,361,098						94,663,252
Disbursements to members			(62,308,688)						(94,691,618)
Mortgage loans held for portfolio:
Principal collections			177,978						151,096
Purchases from members			(418,065)						(196,239)
Purchases of premises, software, and equipment			(1,674)						(576)
Loans to other Federal Home Loan Banks:
Principal repayments			37,000						—
Disbursements			(37,000)						—
Net cash provided by investing activities			4,924,385						309,018

(continued)

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

8

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Federal Home Loan Bank of Indianapolis

Statements of Cash Flows, continued

(Unaudited, $ amounts in thousands)

			Three Months Ended March 31,
			2024						2023
Financing Activities:
Net change in deposits			(44,008)						(39,660)
Net proceeds on derivative contracts with financing elements			2,526						1,997
Net proceeds from issuance of consolidated obligations:
Discount notes			184,586,293						121,635,570
Bonds			11,180,968						7,961,817
Payments for matured and retired consolidated obligations:
Discount notes			(190,291,599)						(125,876,733)
Bonds			(10,742,275)						(4,497,468)
Loans from other Federal Home Loan Banks:
Proceeds from borrowings			—						500,000
Proceeds from issuance of capital stock			71,450						169,080
Payments for redemption/repurchase of mandatorily redeemable capital stock			(1,597)						(29)
Dividend payments on capital stock			(44,196)						(25,966)
Net cash provided by (used in) financing activities			(5,282,438)						(171,392)
Net increase in cash and due from banks			14,735						41,524
Cash and due from banks at beginning of period			58,844						21,161
Cash and due from banks at end of period			$	73,579					$	62,685
Supplemental Disclosures:
Cash activities:
Interest payments			$	923,632					$	614,841
Affordable Housing Program payments			1,850						2,198
Non-cash activities:
Purchases of investment securities, traded but not yet settled			—						120,995

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

9

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Notes to Financial Statements

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 1 - Summary of Significant Accounting Policies

Unless the context otherwise requires, the terms "we," "us," "our" and "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout these Notes to Financial Statements that are defined in the Defined Terms.

Basis of Presentation. The accompanying interim financial statements have been prepared in accordance with GAAP and SEC requirements for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Certain disclosures that would have substantially duplicated the disclosures in the financial statements, and notes thereto, included in our 2023 Form 10-K have been omitted unless the information contained in those disclosures materially changed. Therefore, these interim financial statements should be read in conjunction with our audited financial statements, and notes thereto, included in our 2023 Form 10-K.

The financial statements contain all adjustments that are, in the opinion of management, necessary for a fair statement of the Bank's financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full calendar year or any other interim period.

Use of Estimates. When preparing financial statements in accordance with GAAP, we are required to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates. The most significant estimates pertain to the fair values of financial instruments, specifically our derivatives and associated hedged items.

Significant Accounting Policies. Our significant accounting policies and certain other disclosures are set forth in our 2023 Form 10-K in Note 1 - Summary of Significant Accounting Policies. There have been no significant changes to these policies through March 31, 2024.

Note 2 - Recently Adopted and Issued Accounting Guidance

Recently Adopted Accounting Guidance

We did not adopt any new accounting guidance during the three months ended March 31, 2024.

Recently Issued Accounting Guidance

Since the filing of our 2023 Form 10-K, the Financial Accounting Standards Board (FASB) has not issued any new accounting standards that will have any impact on our financial condition, results of operations, or cash flows.

Note 3 - Investments

Short-term Investments. We invest in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide short-term liquidity. At March 31, 2024 and December 31, 2023, 94% and 97%, respectively, of these investments, based on amortized cost, were with counterparties rated by an NRSRO as investment grade (BBB or higher). The remaining investments were with unrated counterparties. The NRSRO ratings may differ from any internal ratings of the investments, if applicable.

Allowance for Credit Losses. At March 31, 2024 and December 31, 2023, based on our evaluations, no allowance for credit losses on any of our short-term investments was deemed necessary.

10

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Investment Securities.

Trading Securities.

Major Security Types. The following table presents our trading securities by type of security.

Security Type						March 31, 2024						December 31, 2023
U.S. Treasury obligations						$	582,336					$	600,063
Total trading securities at estimated fair value						$	582,336					$	600,063

Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.

												Three Months Ended March 31,
																		2024						2023
Net gains (losses) on trading securities held at period end																		$	(5,040)					$	2,310
Net gains on trading securities that matured/sold during the period																		469						6,004
Net gains (losses) on trading securities																		$	(4,571)					$	8,314

Available-for-Sale Securities.

Major Security Types. The following table presents our AFS securities by type of security.

						March 31, 2024
												Gross						Gross
						Amortized						Unrealized						Unrealized						Estimated
Security Type						Cost1						Gains						Losses						Fair Value
U.S. Treasury obligations						$	5,607,291					$	19,405					$	—					$	5,626,696
GSE and TVA debentures						1,781,775						18,980						—						1,800,755
GSE multifamily MBS						6,687,831						27,078						(23,924)						6,690,985
Total AFS securities						$	14,076,897					$	65,463					$	(23,924)					$	14,118,436
						December 31, 2023
												Gross						Gross
						Amortized						Unrealized						Unrealized						Estimated
Security Type						Cost1						Gains						Losses						Fair Value
U.S. Treasury obligations						$	5,708,713					$	738					$	(12,595)					$	5,696,856
GSE and TVA debentures						1,792,310						14,628						—						1,806,938
GSE multifamily MBS						6,753,080						7,571						(70,119)						6,690,532
Total AFS securities						$	14,254,103					$	22,937					$	(82,714)					$	14,194,326

1    Includes adjustments made to the cost basis for purchase discount or premium and related accretion or amortization, and, if applicable, fair-value hedging basis adjustments. At March 31, 2024 and December 31, 2023, net unamortized discounts totaled $(267,625) and $(278,669), respectively, and the applicable fair-value hedging basis adjustments totaled net losses of $(1,033,373) and $(778,882), respectively. Excludes accrued interest receivable at March 31, 2024 and December 31, 2023 of $73,335 and $72,005, respectively.

11

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Unrealized Loss Positions. The following table presents our impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

						March 31, 2024
						Less than 12 months												12 months or More												Total
						Estimated						Unrealized						Estimated						Unrealized						Estimated						Unrealized
Security Type						Fair Value						Losses						Fair Value						Losses						Fair Value						Losses
GSE multifamily MBS						$	41,364					$	(18)					$	3,208,535					$	(23,906)					$	3,249,899					$	(23,924)
Total impaired AFS securities						$	41,364					$	(18)					$	3,208,535					$	(23,906)					$	3,249,899					$	(23,924)
						December 31, 2023
						Less than 12 months												12 months or More												Total
						Estimated						Unrealized						Estimated						Unrealized						Estimated						Unrealized
Security Type						Fair Value						Losses						Fair Value						Losses						Fair Value						Losses
U.S. Treasury obligations						$	4,785,547					$	(11,716)					$	239,902					$	(879)					$	5,025,449					$	(12,595)
GSE multifamily MBS						2,163,506						(14,970)						2,982,742						(55,149)						5,146,248						(70,119)
Total impaired AFS securities						$	6,949,053					$	(26,686)					$	3,222,644					$	(56,028)					$	10,171,697					$	(82,714)

Contractual Maturity. The amortized cost and estimated fair value of our non-MBS AFS securities are presented below by contractual maturity. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.

						March 31, 2024												December 31, 2023
						Amortized						Estimated						Amortized						Estimated
Year of Contractual Maturity						Cost						Fair Value						Cost						Fair Value
Non-MBS:
Due in 1 year or less						$	390,384					$	391,562					$	305,208					$	306,380
Due after 1 through 5 years						4,982,591						5,013,342						4,628,067						4,636,683
Due after 5 through 10 years						2,016,091						2,022,547						2,567,748						2,560,731
Total non-MBS						7,389,066						7,427,451						7,501,023						7,503,794
Total MBS						6,687,831						6,690,985						6,753,080						6,690,532
Total AFS securities						$	14,076,897					$	14,118,436					$	14,254,103					$	14,194,326

Realized Gains and Losses. There were no sales during the three months ended March 31, 2024 or 2023.

Allowance for Credit Losses. At March 31, 2024 and December 31, 2023, certain of our AFS securities were in an unrealized loss position; however, no allowance for credit losses was deemed necessary because those losses were considered temporary and recovery of the entire amortized cost basis on these securities at maturity was expected.

12

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Held-to-Maturity Securities.

Major Security Types. The following table presents our HTM securities by type of security.

						March 31, 2024
												Gross						Gross
												Unrecognized						Unrecognized
						Amortized						Holding						Holding						Estimated
Security Type						Cost1						Gains						Losses						Fair Value
MBS:
Other U.S. obligations - guaranteed single-family						$	3,918,620					$	6,155					$	(25,470)					$	3,899,305
GSE single-family						793,309						2,003						(35,014)						760,298
GSE multifamily						558,955						—						(4,666)						554,289
Total HTM securities						$	5,270,884					$	8,158					$	(65,150)					$	5,213,892
						December 31, 2023
												Gross						Gross
												Unrecognized						Unrecognized
						Amortized						Holding						Holding						Estimated
Security Type						Cost1						Gains						Losses						Fair Value
MBS:
Other U.S. obligations - guaranteed single-family						$	4,009,493					$	1,836					$	(39,223)					$	3,972,106
GSE single-family						683,944						1,454						(36,334)						649,064
GSE multifamily						563,366						—						(5,137)						558,229
Total HTM securities						$	5,256,803					$	3,290					$	(80,694)					$	5,179,399

1    Carrying value equals amortized cost, which includes adjustments made to the cost basis for purchase discount or premium and related accretion or amortization. Net unamortized premium at March 31, 2024 and December 31, 2023 totaled $20,947 and $21,942, respectively.

Contractual Maturity. HTM securities are not presented by contractual maturity because they consisted entirely of MBS, whose actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.

Realized Gains and Losses. There were no sales of HTM securities during the three months ended March 31, 2024. During the three months ended March 31, 2023, we sold a portion of our HTM MBS for which we had previously collected at least 85% of the principal outstanding at the time of acquisition. As such, the sales were considered maturities for purposes of security classification. Proceeds from the sales totaled $9,769, resulting in a net realized loss of $(71) determined by the specific identification method.

Allowance for Credit Losses. At March 31, 2024 and December 31, 2023, based on our evaluation of expected credit losses, no allowance for credit losses on any of our HTM securities was deemed necessary.

13

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 4 - Advances

The following table presents our advances outstanding by redemption term.

						March 31, 2024												December 31, 2023
Redemption Term						Amount						WAIR %						Amount						WAIR %
Overdrawn demand and overnight deposit accounts						$	151					7.71						$	2					7.76
Due in 1 year or less						9,337,671						4.70						9,780,116						4.88
Due after 1 through 2 years						4,530,755						3.44						4,362,389						3.33
Due after 2 through 3 years						2,484,414						3.52						2,683,356						3.25
Due after 3 through 4 years						5,167,115						4.35						4,573,456						4.37
Due after 4 through 5 years						5,555,750						4.25						5,531,135						4.30
Thereafter						8,748,803						3.54						8,946,614						3.44
Total advances, par value						35,824,659						4.05						35,877,068						4.06
Fair-value hedging basis adjustments, net						(531,860)												(319,721)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees						3,963												4,497
Total advances1						$	35,296,762											$	35,561,844

1    Carrying value equals amortized cost, which excludes accrued interest receivable at March 31, 2024 and December 31, 2023 of $63,444 and $63,775, respectively.

The following table presents our advances outstanding by the earlier of the redemption date or the next call date and next put date.

						Earlier of Redemption or Next Call Date												Earlier of Redemption or Next Put Date
Term						March 31, 2024						December 31, 2023						March 31, 2024						December 31, 2023
Overdrawn demand and overnight deposit accounts						$	151					$	2					$	151					$	2
Due in 1 year or less						14,465,093						14,901,928						13,807,071						13,910,616
Due after 1 through 2 years						3,720,155						3,641,289						5,410,755						5,102,289
Due after 2 through 3 years						2,207,214						2,370,466						3,182,414						3,581,356
Due after 3 through 4 years						3,836,255						3,328,746						5,397,215						4,808,556
Due after 4 through 5 years						4,708,947						4,502,482						4,348,750						4,661,135
Thereafter						6,886,844						7,132,155						3,678,303						3,813,114
Total advances, par value						$	35,824,659					$	35,877,068					$	35,824,659					$	35,877,068

Advance Concentrations. At March 31, 2024 and December 31, 2023, our top borrower held 12% of total advances outstanding at par and our top five borrowers held 35%.

Allowance for Credit Losses. At March 31, 2024 and December 31, 2023, based upon the collateral held as security, our credit extension and collateral policies, our credit analysis and the repayment history on advances, no allowance for credit losses on advances was deemed necessary.

14

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 5 - Mortgage Loans Held for Portfolio

The following tables present information on our mortgage loans held for portfolio by term and type.

Term						March 31, 2024						December 31, 2023
Fixed-rate long-term mortgages						$	7,974,232					$	7,711,709
Fixed-rate medium-term1 mortgages						712,843						740,859
Total mortgage loans held for portfolio, UPB						8,687,075						8,452,568
Unamortized premiums						184,145						179,499
Unamortized discounts						(11,797)						(11,844)
Hedging basis adjustments, net						(6,013)						(6,254)
Total mortgage loans held for portfolio						8,853,410						8,613,969
Allowance for credit losses						(125)						(125)
Total mortgage loans held for portfolio, net2						$	8,853,285					$	8,613,844

1    Defined as a term of 15 years or less at origination.

2    Excludes accrued interest receivable at March 31, 2024 and December 31, 2023 of $44,154 and $41,403, respectively.

Type						March 31, 2024						December 31, 2023
Conventional						$	8,498,570					$	8,298,188
Government-guaranteed or -insured						188,505						154,380
Total mortgage loans held for portfolio, UPB						$	8,687,075					$	8,452,568

Credit Quality Indicators for Conventional Mortgage Loans. Amounts past due 30 days or more on conventional mortgage loans at March 31, 2024 and December 31, 2023 totaled $58,807 and $61,300, respectively. Amounts are based on amortized cost, which excludes accrued interest receivable.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 6 - Derivatives and Hedging Activities

Managing Credit Risk on Derivatives. We are subject to credit risk due to the risk of nonperformance by the counterparties to our derivative transactions.

Uncleared Derivatives. At March 31, 2024 and December 31, 2023, our securities pledged as collateral totaled $0 and $15,670, respectively.

Cleared Derivatives. At March 31, 2024 and December 31, 2023, we were not required by our clearing agents to post any additional margin.

Financial Statement Effect and Additional Financial Information. We record derivative instruments, related cash collateral received or pledged/posted and associated accrued interest on a net basis by the clearing agent and/or by counterparty when the netting requirements have been met.

The following table presents the notional amount and estimated fair value of our derivative assets and liabilities.

						March 31, 2024																		December 31, 2023
						Notional						Derivative						Derivative						Notional						Derivative						Derivative
						Amount						Assets						Liabilities						Amount						Assets						Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps						$	70,277,506					$	835,406					$	1,542,531					$	75,336,530					$	736,648					$	1,533,144
Derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps						675,000						275						73						610,000						100						319
Interest-rate caps/floors						811,000						777						—						811,000						887						—
Interest-rate forwards						98,700						14						6						57,300						—						337
MDCs						89,652						157						25						57,270						207						12
Total derivatives not designated as hedging instruments						1,674,352						1,223						104						1,535,570						1,194						668
Total derivatives before adjustments						$	71,951,858					836,629						1,542,635						$	76,872,100					737,842						1,533,812
Netting adjustments and cash collateral1												(347,095)						(1,542,030)												(216,678)						(1,526,872)
Total derivatives, net, at estimated fair value												$	489,534					$	605											$	521,164					$	6,940

1    Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty. Cash collateral pledged to counterparties at March 31, 2024 and December 31, 2023, including accrued interest, totaled $1,388,773 and $1,451,464, respectively. Cash collateral received from counterparties and held at March 31, 2024 and December 31, 2023, including accrued interest, totaled $193,838 and $141,271, respectively.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents separately the estimated fair value of our derivative instruments meeting and not meeting netting requirements, including the effect of the related collateral.

						March 31, 2024												December 31, 2023
						Derivative Assets						Derivative Liabilities						Derivative Assets						Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared						$	833,128					$	1,540,521					$	736,071					$	1,521,576
Cleared						3,330						2,083						1,564						11,887
Total gross recognized amount						836,458						1,542,604						737,635						1,533,463
Gross amounts of netting adjustments and cash collateral
Uncleared						(827,413)						(1,539,947)						(727,850)						(1,514,985)
Cleared						480,318						(2,083)						511,172						(11,887)
Total gross amounts of netting adjustments and cash collateral						(347,095)						(1,542,030)						(216,678)						(1,526,872)
Net amounts after netting adjustments and cash collateral
Uncleared						5,715						574						8,221						6,591
Cleared						483,648						—						512,736						—
Total net amounts after netting adjustments and cash collateral						489,363						574						520,957						6,591
Derivative instruments not meeting netting requirements1						171						31						207						349
Total derivatives, net, at estimated fair value						$	489,534					$	605					$	521,164					$	6,940

1    Includes MDCs and certain interest-rate forwards.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents the impact of our qualifying fair-value hedging relationships on net interest income by hedged item, excluding any offsetting interest income/expense of the associated hedged items.

						Three Months Ended March 31, 2024
						Advances						AFS Securities						CO Bonds						Total
Net impact of fair-value hedging relationships on net interest income:
Net interest settlements on derivatives1						$	147,350					$	129,866					$	(249,220)					$	27,996
Net gains (losses) on derivatives²						158,180						63,761						(53,660)						168,281
Net gains (losses) on hedged items³						(162,925)						(84,330)						55,651						(191,604)
Net impact on net interest income						$	142,605					$	109,297					$	(247,229)					$	4,673
Total interest income (expense) recorded in the statement of income4						$	514,851					$	220,367					$	(621,413)					$	113,805

						Three Months Ended March 31, 2023
						Advances						AFS Securities						CO Bonds						Total
Net impact of fair-value hedging relationships on net interest income:
Net interest settlements on derivatives1						$	117,894					$	97,272					$	(207,053)					$	8,113
Net gains (losses) on derivatives²						(183,311)						(89,198)						384,376						111,867
Net gains (losses) on hedged items³						176,507						67,230						(384,670)						(140,933)
Net impact on net interest income						$	111,090					$	75,304					$	(207,347)					$	(20,953)
Total interest income (expense) recorded in the statement of income4						$	434,229					$	171,719					$	(446,674)					$	159,274

1    Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.

2    Includes increases (decreases) in estimated fair value, price alignment interest and swap termination fees.

3    Includes increases (decreases) in estimated fair value and amortization of net losses on ineffective and discontinued fair-value hedging relationships.

4    For advances, AFS securities and CO bonds only.

The following table presents the components of our net gains (losses) on derivatives reported in other income.

												Three Months Ended March 31,
Type of Hedge																		2024						2023
Net gains (losses) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps																		$	7,286					$	(10,074)
Interest-rate caps/floors																		(97)						(945)
Interest-rate forwards																		(156)						(665)
Net interest settlements1																		2,038						9,817
MDCs																		54						504
Net gains (losses) on derivatives in other income																		$	9,125					$	(1,363)

1    Relates to derivatives that are not in qualifying fair-value hedging relationships. The interest income/expense of the associated hedged items is recorded in net interest income.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents the amortized cost of, and the related cumulative basis adjustments on, our hedged items in qualifying fair-value hedging relationships.

						March 31, 2024
						Advances						AFS Securities						CO Bonds
Amortized cost of hedged items1						$	21,954,672					$	14,076,897					$	31,030,453
Cumulative basis adjustments included in amortized cost:
For active fair-value hedging relationships2						$	(531,860)					$	(1,254,048)					$	(1,466,162)
For discontinued fair-value hedging relationships						—						220,675						—
Total cumulative fair-value hedging basis adjustments on hedged items						$	(531,860)					$	(1,033,373)					$	(1,466,162)

						December 31, 2023
						Advances						AFS Securities						CO Bonds
Amortized cost of hedged items1						$	21,624,453					$	14,254,103					$	36,682,911
Cumulative basis adjustments included in amortized cost:
For active fair-value hedging relationships2						$	(319,721)					$	(1,013,707)					$	(1,410,511)
For discontinued fair-value hedging relationships						—						234,825						—
Total cumulative fair-value hedging basis adjustments on hedged items						$	(319,721)					$	(778,882)					$	(1,410,511)

1    Includes the amortized cost of the hedged items in active or discontinued fair-value hedging relationships.

2    Includes effective and ineffective fair-value hedging relationships. Excludes any offsetting effect of the net estimated fair value of the associated derivatives.

Note 7 - Consolidated Obligations

In addition to being the primary obligor for all consolidated obligations issued on our behalf, we are jointly and severally liable with each of the other FHLBanks for the payment of the principal and interest on all of the FHLBanks' consolidated obligations outstanding. The par values of the FHLBanks' consolidated obligations outstanding at both March 31, 2024 and December 31, 2023 totaled $1.2 trillion. As provided by the Federal Home Loan Bank Act of 1932 and Finance Agency regulations, consolidated obligations are backed only by the financial resources of all FHLBanks.

Discount Notes. The following table presents our discount notes outstanding, all of which are due within one year of issuance.

Discount Notes						March 31, 2024						December 31, 2023
Par value						$	17,020,249					$	22,737,397
Unamortized discounts						(94,494)						(115,297)
Unamortized concessions						(203)						(263)
Book value						$	16,925,552					$	22,621,837
Weighted average effective interest rate						5.34		%				5.35		%

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

CO Bonds. The following table presents the par value of our CO bonds outstanding by interest-rate payment type.

Interest-Rate Payment Type						March 31, 2024						December 31, 2023
Fixed-rate						$	39,605,910					$	45,009,050
Simple variable-rate						9,312,500						3,389,500
Step-up						1,348,500						1,428,500
Total CO bonds, par value						$	50,266,910					$	49,827,050

The following table presents our CO bonds outstanding by contractual maturity.

						March 31, 2024												December 31, 2023
Year of Contractual Maturity						Amount						WAIR%						Amount						WAIR%
Due in 1 year or less						$	15,062,245					2.43						$	20,137,240					3.76
Due after 1 through 2 years						17,370,000						4.04						10,415,280						2.96
Due after 2 through 3 years						6,171,015						1.75						7,537,350						1.48
Due after 3 through 4 years						1,642,480						2.20						2,356,530						1.85
Due after 4 through 5 years						2,627,370						3.90						2,254,120						3.06
Thereafter						7,393,800						2.92						7,126,530						2.81
Total CO bonds, par value						50,266,910						3.05						49,827,050						2.99
Unamortized premiums						31,254												33,792
Unamortized discounts						(9,490)												(10,093)
Unamortized concessions						(9,468)												(8,672)
Fair-value hedging basis adjustments, net						(1,466,162)												(1,410,511)
Total CO bonds						$	48,813,044											$	48,431,566

The following tables present the par value of our CO bonds outstanding by redemption feature and the earlier of the year of contractual maturity or next call date.

Call Feature						March 31, 2024						December 31, 2023
Non-callable / non-putable						$	20,399,910					$	14,027,225
Callable						29,867,000						35,799,825
Total CO bonds, par value						$	50,266,910					$	49,827,050

Year of Contractual Maturity or Next Call Date						March 31, 2024						December 31, 2023
Due in 1 year or less						$	35,487,745					$	42,512,740
Due after 1 through 2 years						12,042,500						4,389,780
Due after 2 through 3 years						771,515						895,850
Due after 3 through 4 years						353,480						327,530
Due after 4 through 5 years						964,870						1,051,620
Thereafter						646,800						649,530
Total CO bonds, par value						$	50,266,910					$	49,827,050

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 8 - Affordable Housing Program

The following table summarizes the activity in our AHP funding obligation.

												Three Months Ended March 31,
AHP Activity																		2024						2023
Liability at beginning of period																		$	68,301					$	38,170
Assessments																		11,135						10,643
Subsidy usage, net1																		(1,850)						(2,198)
Liability at end of period																		$	77,586					$	46,615

1    Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

Note 9 - Capital

Classes of Capital Stock. The following table presents our capital stock outstanding by sub-series.

Capital Stock Sub-Series						March 31, 2024						December 31, 2023
Class B-1 1						$	650,022					$	581,687
Class B-2 2						1,706,686						1,703,571
Total Class B						$	2,356,708					$	2,285,258

1    Non-activity-based stock.

2    Activity-based stock.

Mandatorily Redeemable Capital Stock. The following table presents the activity in our MRCS.

												Three Months Ended March 31,
MRCS Activity																		2024						2023
Liability at beginning of period																		$	369,041					$	372,503
Reclassification from capital stock																		—						13
Redemptions/repurchases																		(1,597)						(29)
Liability at end of period																		$	367,444					$	372,487

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents our MRCS by contractual year of redemption. The year of redemption is the later of (i) the final year of the five-year redemption period, or (ii) the first year in which a non-member no longer has an activity-based stock requirement.

MRCS Contractual Year of Redemption						March 31, 2024						December 31, 2023
Past contractual redemption date1						$	1,133					$	738
Year 1 2						13,054						15,047
Year 2						19,179						19,179
Year 3						3,674						3,674
Year 4						329,245						329,232
Year 5						1,159						1,171
Total MRCS						$	367,444					$	369,041

1    Balance represents Class B stock that will not be redeemed until the associated credit products or mortgage loans are no longer outstanding.

2    Balance at March 31, 2024 and December 31, 2023 includes $4,050 and $5,175 of Class B stock held by one captive insurance company whose membership was terminated on February 19, 2021. The stock is not past its contractual redemption date, but will be redeemed as soon as the associated credit products are no longer outstanding.

The following table presents the distributions related to our MRCS.

												Three Months Ended March 31,
MRCS Distributions																		2024						2023
Recorded as interest expense																		$	5,342					$	4,110
Recorded as distributions from retained earnings																		—						706
Total																		$	5,342					$	4,816

Capital Requirements. We are subject to three capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 12 - Capital in our 2023 Form 10-K. As presented in the following table, we were in compliance with these Finance Agency capital requirements at March 31, 2024 and December 31, 2023.

						March 31, 2024												December 31, 2023
Regulatory Capital Requirements						Required						Actual						Required						Actual
Risk-based capital						$	1,115,647					$	4,307,001					$	1,277,258					$	4,186,470
Total regulatory capital						$	2,854,809					$	4,307,001					$	3,064,336					$	4,186,470
Total regulatory capital-to-assets ratio						4.00%						6.03%						4.00%						5.46%
Leverage capital						$	3,568,511					$	6,460,501					$	3,830,420					$	6,279,705
Leverage ratio						5.00%						9.05%						5.00%						8.20%

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 10 - Accumulated Other Comprehensive Income

The following table presents a summary of the changes in the components of our AOCI.

AOCI Rollforward						Unrealized Gains (Losses) on AFS Securities						Pension Benefits						Total AOCI (Loss)
Balance, December 31, 2023						$	(59,777)					$	(13,755)					$	(73,532)
OCI before reclassifications:
Net change in unrealized gains						101,316						—						101,316
Reclassifications from OCI to net income:
Pension benefits, net						—						244						244
Total other comprehensive income						101,316						244						101,560
Balance, March 31, 2024						$	41,539					$	(13,511)					$	28,028
Balance, December 31, 2022						$	(9,939)					$	(15,852)					$	(25,791)
OCI before reclassifications:
Net change in unrealized gains (losses)						(47,977)						—						(47,977)
Reclassifications from OCI to net income:
Pension benefits, net						—						340						340
Total other comprehensive income (loss)						(47,977)						340						(47,637)
Balance, March 31, 2023						$	(57,916)					$	(15,512)					$	(73,428)

Note 11 - Segment Information

The following table presents our financial performance by operating segment.

						Three Months Ended March 31, 2024																		Three Months Ended March 31, 2023
						Traditional						Mortgage Loans						Total						Traditional						Mortgage Loans						Total
Net interest income						$	115,380					$	14,019					$	129,399					$	90,669					$	12,980					$	103,649
Provision for (reversal of) credit losses						—						(25)						(25)						—						2						2
Other income (loss)						9,239						119						9,358						30,251						(104)						30,147
Other expenses						28,961						3,812						32,773						27,417						4,053						31,470
Income before assessments						95,658						10,351						106,009						93,503						8,821						102,324
Affordable Housing Program assessments						10,100						1,035						11,135						9,761						882						10,643
Net income						$	85,558					$	9,316					$	94,874					$	83,742					$	7,939					$	91,681

The following table presents our asset balances by operating segment.

Date						Traditional						Mortgage Loans						Total
March 31, 2024						$	62,516,938					$	8,853,285					$	71,370,223
December 31, 2023						67,994,560						8,613,844						76,608,404

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 12 - Estimated Fair Values

The following tables present the carrying value and estimated fair value of each of our financial instruments. The total of the estimated fair values does not represent an estimate of our overall market value as a going concern, which would take into account, among other considerations, future business opportunities and the net profitability of assets and liabilities.

						March 31, 2024
												Estimated Fair Value
						Carrying																														Netting
Financial Instruments						Value						Total						Level 1						Level 2						Level 3						Adjustments1
Assets:
Cash and due from banks						$	73,579					$	73,579					$	73,579					$	—					$	—					$	—
Interest-bearing deposits						807,084						807,084						807,043						41						—						—
Securities purchased under agreements to resell						2,500,000						2,500,000						—						2,500,000						—						—
Federal funds sold						3,068,000						3,068,000						—						3,068,000						—						—
Trading securities						582,336						582,336						—						582,336						—						—
AFS securities						14,118,436						14,118,436						—						14,118,436						—						—
HTM securities						5,270,884						5,213,892						—						5,213,892						—						—
Advances						35,296,762						35,169,057						—						35,169,057						—						—
Mortgage loans held for portfolio, net						8,853,285						8,044,682						—						8,039,215						5,467						—
Accrued interest receivable						202,349						202,349						—						202,349						—						—
Derivative assets, net						489,534						489,534						—						836,629						—						(347,095)
Grantor trust assets2						64,989						64,989						64,989						—						—						—
Liabilities:
Deposits						532,413						532,413						—						532,413						—						—
Consolidated obligations:
Discount notes						16,925,552						16,919,503						—						16,919,503						—						—
Bonds						48,813,044						48,003,814						—						48,003,814						—						—
Accrued interest payable						288,300						288,300						—						288,300						—						—
Derivative liabilities, net						605						605						—						1,542,635						—						(1,542,030)
MRCS						367,444						367,444						367,444						—						—						—

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

						December 31, 2023
												Estimated Fair Value
						Carrying																														Netting
Financial Instruments						Value						Total						Level 1						Level 2						Level 3						Adjustments1
Assets:
Cash and due from banks						$	58,844					$	58,844					$	58,844					$	—					$	—					$	—
Interest-bearing deposits						892,049						892,049						892,007						42						—						—
Securities purchased under agreements to resell						6,500,000						6,500,000						—						6,500,000						—						—
Federal funds sold						4,101,000						4,101,000						—						4,101,000						—						—
Trading securities						600,063						600,063						—						600,063						—						—
AFS securities						14,194,326						14,194,326						—						14,194,326						—						—
HTM securities						5,256,803						5,179,399						—						5,179,399						—						—
Advances						35,561,844						35,368,737						—						35,368,737						—						—
Mortgage loans held for portfolio, net						8,613,844						7,940,218						—						7,936,147						4,071						—
Accrued interest receivable						203,809						203,809						—						203,809						—						—
Derivative assets, net						521,164						521,164						—						737,842						—						(216,678)
Grantor trust assets2						61,227						61,227						61,227						—						—						—
Liabilities:
Deposits						628,811						628,811						—						628,811						—						—
Consolidated obligations:
Discount notes						22,621,837						22,620,613						—						22,620,613						—						—
Bonds						48,431,566						47,570,879						—						47,570,879						—						—
Accrued interest payable						327,237						327,237						—						327,237						—						—
Derivative liabilities, net						6,940						6,940						—						1,533,812						—						(1,526,872)
MRCS						369,041						369,041						369,041						—						—						—

1    Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty.

2    Included in other assets on the statement of condition.

Summary of Valuation Techniques and Significant Inputs. A description of the valuation techniques, significant inputs, and levels of fair value hierarchy is disclosed in Note 16 - Estimated Fair Values in our 2023 Form 10-K. No significant changes have been made in the current year.

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(Unaudited, $ amounts in thousands unless otherwise indicated)

Estimated Fair Value Measurements. The following tables present, by level within the fair value hierarchy, the estimated fair value of our financial assets and liabilities that are recorded at estimated fair value on a recurring or non-recurring basis on our statement of condition.

						March 31, 2024
																														Netting
Financial Instruments						Total						Level 1						Level 2						Level 3						Adjustments1
Trading securities:
U.S. Treasury obligations						$	582,336					$	—					$	582,336					$	—					$	—
Total trading securities						582,336						—						582,336						—						—
AFS securities:
U.S. Treasury obligations						5,626,696						—						5,626,696						—						—
GSE and TVA debentures						1,800,755						—						1,800,755						—						—
GSE multifamily MBS						6,690,985						—						6,690,985						—						—
Total AFS securities						14,118,436						—						14,118,436						—						—
Derivative assets:
Interest-rate related						489,377						—						836,472						—						(347,095)
MDCs						157						—						157						—						—
Total derivative assets, net						489,534						—						836,629						—						(347,095)
Other assets:
Grantor trust assets						64,989						64,989						—						—						—
Total assets at recurring estimated fair value						$	15,255,295					$	64,989					$	15,537,401					$	—					$	(347,095)
Derivative liabilities:
Interest-rate related						$	580					$	—					$	1,542,610					$	—					$	(1,542,030)
MDCs						25						—						25						—						—
Total derivative liabilities, net						605						—						1,542,635						—						(1,542,030)
Total liabilities at recurring estimated fair value						$	605					$	—					$	1,542,635					$	—					$	(1,542,030)

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

						December 31, 2023
																														Netting
Financial Instruments						Total						Level 1						Level 2						Level 3						Adjustments1
Trading securities:
U.S. Treasury obligations						$	600,063					$	—					$	600,063					$	—					$	—
Total trading securities						600,063						—						600,063						—						—
AFS securities:
U.S. Treasury obligations						5,696,856						—						5,696,856						—						—
GSE and TVA debentures						1,806,938						—						1,806,938						—						—
GSE multifamily MBS						6,690,532						—						6,690,532						—						—
Total AFS securities						14,194,326						—						14,194,326						—						—
Derivative assets:
Interest-rate related						520,957						—						737,635						—						(216,678)
MDCs						207						—						207						—						—
Total derivative assets, net						521,164						—						737,842						—						(216,678)
Other assets:
Grantor trust assets						61,227						61,227						—						—						—
Total assets at recurring estimated fair value						$	15,376,780					$	61,227					$	15,532,231					$	—					$	(216,678)
Derivative liabilities:
Interest-rate related						$	6,928					$	—					$	1,533,800					$	—					$	(1,526,872)
MDCs						12						—						12						—						—
Total derivative liabilities, net						6,940						—						1,533,812						—						(1,526,872)
Total liabilities at recurring estimated fair value						$	6,940					$	—					$	1,533,812					$	—					$	(1,526,872)

1    Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 13 - Commitments and Contingencies

The following table presents our off-balance-sheet commitments at their notional amounts.

						March 31, 2024																		December 31, 2023
Type of Commitment						Expire within one year						Expire after one year						Total						Total
Standby letters of credit outstanding1						$	258,284					$	322,391					$	580,675					$	511,923
Commitments for standby bond purchases						—						234,960						234,960						184,960
Unused lines of credit - advances2						1,197,082						—						1,197,082						1,196,988
Commitments to fund additional advances3						53,642						3,045						56,687						9,965
Commitments to purchase mortgage loans, net4						89,652						—						89,652						57,270
Unsettled CO bonds, at par						45,000						—						45,000						—
Unsettled discount notes, at par						400,630						—						400,630						—

1    There were no unconditional commitments to issue standby letters of credit at March 31, 2024 and December 31, 2023.

2    Maximum line of credit amount per member is $100,000.

3    Generally for periods up to six months.

4    Generally for periods up to 91 days.

Pledged Collateral. Cash pledged as collateral to counterparties and clearing agents at March 31, 2024 and December 31, 2023 totaled $1,384,621 and $1,447,218, respectively. Securities pledged as collateral to counterparties at March 31, 2024 and December 31, 2023 totaled $0 and $15,670, respectively.

Standby Bond Purchase Agreements. We have entered into multiple agreements with a state housing authority within our district whereby we could be required under the terms of the agreements to purchase and hold the state housing authority's bonds until its designated marketing agent can find a suitable investor or the state housing authority repurchases the bond according to a schedule established by the standby agreements. At March 31, 2024, the agreements outstanding expire no later than 2028, although some may be renewable at our option. We were not required to purchase any bonds under these agreements as of March 31, 2024.

Legal Proceedings. We are subject to legal proceedings arising in the normal course of business. We record an accrual for a loss contingency when it is probable that a loss for which we could be liable has been incurred and the amount can be reasonably estimated. After consultation with legal counsel, management is not aware of any such proceedings where the ultimate liability, if any, could have a material effect on our financial condition, results of operations or cash flows.

Additional discussion of other commitments and contingencies is provided in Note 4 - Advances; Note 5 - Mortgage Loans Held for Portfolio; Note 6 - Derivatives and Hedging Activities; Note 7 - Consolidated Obligations; and Note 9 - Capital.

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Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 14 - Related Party and Other Transactions

Transactions with Directors Financial Institutions. The following table presents our transactions with directors' financial institutions, taking into account the beginning and ending dates of the directors' terms, merger activity and other changes in the composition of directors' financial institutions.

Transactions with Directors' Financial Institutions												Three Months Ended March 31,
																		2024						2023
Net capital stock issuances (redemptions and repurchases)																		$	318					$	2,403
Net advances (repayments)																		(88,303)						(51,294)
Mortgage loan purchases																		12,874						3,123

The following table presents the aggregate balances of capital stock and advances outstanding for our directors' financial institutions and their balances as a percent of the total balances on our statement of condition.

						March 31, 2024												December 31, 2023
Balances with Directors' Financial Institutions						Par Value						% of Total						Par Value						% of Total
Capital stock						$	60,108					2		%				$	56,763					2		%
Advances						701,432						2		%				753,234						2		%

The composition of our directors' financial institutions changed due to changes in board membership on January 1, 2024 resulting from the 2023 board of directors' election and on January 16, 2024 resulting from a director's resignation.

Transactions with Other FHLBanks. Occasionally, we loan or borrow short-term funds to/from other FHLBanks in order to manage FHLBank System-wide liquidity. These loans and borrowings are transacted at current market rates when traded. On March 31, 2023, the Bank borrowed $500,000 from another FHLBank and repaid it on the next business day. There were no loans to or borrowings from other FHLBanks that remained outstanding at March 31, 2024 or December 31, 2023.

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DEFINED TERMS

advance: Secured loan to member, former member or Housing Associate

AFS: Available-for-Sale

Agency: GSE and Ginnie Mae

AHP: Affordable Housing Program

AOCI: Accumulated Other Comprehensive Income (Loss)

bps: basis points

CDFI: Community Development Financial Institution

Clearinghouse: A United States Commodity Futures Trading Commission-registered derivatives clearing organization

CO bond: Consolidated Obligation bond

EFFR: Effective Federal Funds Rate

Exchange Act: Securities Exchange Act of 1934, as amended

Fannie Mae: Federal National Mortgage Association

FHLBank: A Federal Home Loan Bank

FHLBanks: The 11 Federal Home Loan Banks or a subset thereof

FHLBank System: The 11 Federal Home Loan Banks and the Office of Finance

Finance Agency: Federal Housing Finance Agency

FOMC: Federal Open Market Committee

Form 8-K: Current Report on Form 8-K as filed with the SEC under the Exchange Act

Form 10-K: Annual Report on Form 10-K as filed with the SEC under the Exchange Act

Form 10-Q: Quarterly Report on Form 10-Q as filed with the SEC under the Exchange Act

Freddie Mac: Federal Home Loan Mortgage Corporation

GAAP: Generally Accepted Accounting Principles in the United States of America

Ginnie Mae: Government National Mortgage Association

GSE: United States Government-Sponsored Enterprise

Housing Associate: Approved lender under Title II of the National Housing Act of 1934 that is either a government agency or is chartered under federal or state law with rights and powers similar to those of a corporation

HTM: Held-to-Maturity

LRA: Lender Risk Account

MBS: Mortgage-Backed Securities

MDC: Mandatory Delivery Commitment

Moody's: Moody's Investor Services

MPP: Mortgage Purchase Program, including Original and Advantage unless indicated otherwise

MRCS: Mandatorily Redeemable Capital Stock

MVE: Market Value of Equity

NRSRO: Nationally Recognized Statistical Rating Organization

OCI: Other Comprehensive Income (Loss)

S&P: Standard & Poor's Rating Service

SEC: Securities and Exchange Commission

Securities Act: Securities Act of 1933, as amended

SERP: Collectively, the 2005 FHLBank of Indianapolis Supplemental Executive Retirement Plan, as amended, and the FHLBank of Indianapolis Supplemental Executive Retirement Plan, frozen effective December 31, 2004

SOFR: Secured Overnight Financing Rate

TBA: To Be Announced, a forward contract for the purchase or sale of MBS at a future agreed-upon date for an established price

TVA: Tennessee Valley Authority

UPB: Unpaid Principal Balance

WAIR: Weighted-Average Interest Rate

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Presentation 

This discussion and analysis by management of the Bank's financial condition and results of operations should be read in conjunction with our 2023 Form 10-K and the interim Financial Statements and related Notes to Financial Statements contained in Item 1. Financial Statements.

Unless otherwise stated, amounts disclosed in this Item are rounded to the nearest million; therefore, dollar amounts of less than one million may not be reflected or, due to rounding, may not appear to agree to the amounts presented in thousands in the Financial Statements and related Notes to Financial Statements. Amounts used to calculate dollar and percentage changes are based on numbers in the thousands. Accordingly, calculations based upon the disclosed amounts (millions) may not produce the same results.

Executive Summary

 

Overview. As an FHLBank, we are a regional wholesale bank that serves as a financial intermediary between the capital markets and our members. The Bank is structured as a financial cooperative, which allows our business to be scalable and self-capitalizing without taking undue risks, diminishing capital adequacy or jeopardizing profitability. Therefore, the Bank is generally designed to expand and contract in asset size as the needs of our members and their communities change.

We primarily make secured loans in the form of advances to our members and purchase whole mortgage loans from our members. Additionally, we purchase other investments and provide other financial services to our members.

Our principal source of funding is the proceeds from the sale to the public of FHLBank debt instruments, called consolidated obligations, which are the joint and several obligation of all FHLBanks. We obtain additional funds from deposits, other borrowings, and by issuing capital stock to our members.

Our primary source of revenue is interest earned on advances, mortgage loans, and investments, including MBS.

 

Our net interest income is primarily determined by the size of our balance sheet and the spread between the interest rate earned on our assets and the interest rate paid on our share of the consolidated obligations. A substantial portion of net interest income may also be derived from deploying our capital which has no associated interest cost, i.e., interest-free capital. We use funding and hedging strategies to manage the related interest-rate risk.

Due to our cooperative ownership structure and wholesale nature, we typically earn a narrow interest spread. Accordingly, our net income is relatively low compared to our total assets and capital.

In addition, as a cooperative, some members utilize our products more heavily and own more capital stock than others. As a result, we must achieve a balance in generating membership value from rates we charge on advances or prices we pay to purchase mortgage loans and paying a competitive dividend rate.

We group our products and services within two operating segments: traditional and mortgage loans.

Business Environment. The Bank’s financial performance is influenced by several key national economic and market factors, including fiscal and monetary policies, the conditions in the housing markets and the level and volatility of market interest rates.

Economy and Financial Markets. The U.S. economy grew in the first quarter of 2024 as U.S. real gross domestic product, according to the U.S. Commerce Department, grew at a seasonally- and inflation-adjusted annual rate of 1.6%, a pullback from last year’s pace. However, the report indicated that consumer spending was still strong after years of hiring and wage growth. Job gains remained strong and the labor market remained tight as unemployment rates remained near historic lows.

In March 2024, for the third straight month, inflation proved firmer than expected after a cooling in the second half of 2023. The personal-consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose in March at an annual rate of 2.6%, according to the Commerce Department. The associated measure of core prices, which excludes volatile food and energy prices, rose 3.7% during the quarter and 2.9% compared to a year earlier.

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The resilient consumer continues to spark hopes that the economy will experience a soft landing, where inflation ebbs without causing a recession. However, stalled business development, the ongoing geopolitical instability and the prospect of higher interest rates remaining for a longer time are all potential factors that could have an adverse impact on the economy during 2024.

Conditions in U.S. Housing Markets. The actions by the Federal Reserve to curb inflation by raising interest rates have most directly affected consumers through the housing market. In 2023, home sales dropped to the lowest level in nearly three decades as elevated mortgage interest rates kept many buyers out of the market due to a lack of affordability, which reduced housing demand. At the same time, high mortgage rates discouraged homeowners from selling as many were reluctant to give up their existing low mortgage rates, reducing the available inventory of homes for sale.

The result of lower demand and lower supply was declining existing-home sales and stubbornly high prices. Existing-home sales, which comprise most of the housing market, posted their biggest drop in March 2024 in more than a year, according to the National Association of Realtors ("NAR"). Mortgage rates started to rise again in February, weighing on March sales. Home prices remained near record highs.

Housing affordability, particularly for first-time home buyers, remains an economic burden. The NAR affordability index remained well below historic norms.

Interest Rate Levels and Volatility. The Federal Reserve seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. In support of these goals, at its meeting on March 20, 2024, the FOMC decided to maintain the target range at 5.25% to 5.50%, repeating that it "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation (now close to 3%) is moving sustainably toward" the Fed’s 2% goal.

The following table presents certain key interest rates.

						Average for Three Months Ended																		Period End
						March 31,																		March 31,						December 31,
						2024						2023																		2024						2023
Federal Funds Effective						5.33		%				4.52		%																5.33		%				5.33		%
SOFR						5.31		%				4.50		%																5.34		%				5.38		%
1-week Overnight-Indexed Swap						5.33		%				4.55		%																5.33		%				5.33		%
3-month U.S. Treasury yield						5.38		%				4.71		%																5.37		%				5.34		%
2-year U.S Treasury yield						4.49		%				4.36		%																4.62		%				4.25		%
10-year U.S. Treasury yield						4.15		%				3.65		%																4.20		%				3.88		%

Source: Bloomberg

The level and volatility of interest rates, including the shape of the yield curve, were affected by several factors, principally efforts by the Federal Reserve beginning in late March 2022 to raise interest rates and tighten monetary policy to combat high inflation.

As the FOMC raised short-term rates, portions of the Treasury yield curve became inverted. The 2-year rate was consistently higher than the 10-year rate. Investors use the 10-year Treasury yield as an indicator of investor confidence. With the rise in the 10-year rate in 2023 and 2024, the yield curve became less inverted.

At its meeting on May 1, 2024, noting that in recent months there has been a lack of further progress toward the Committee’s 2% inflation objective, the FOMC decided to maintain the target range for the federal funds rate at 5.25% to 5.50%.

The FOMC stated that "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks."

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"In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency MBS. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion."

"In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals."

Impact on Operating Results. Lending and investing activity by our member institutions is a key driver for our balance sheet and income growth. Such activity is a function of both prevailing interest rates and economic activity, including local economic factors, particularly relating to the housing and mortgage markets. Positive economic trends tend to increase demand by our members for advances to support their funding needs but can drive market interest rates higher, which can impair activity in the mortgage market. A less active mortgage market can affect demand for advances and activity levels in our Advantage MPP. However, member demand for liquidity, particularly during stressed market conditions, can also lead to advances growth. Borrowing patterns between our insurance company and depository members can differ during various economic and market conditions, thereby easing the potential magnitude of core business fluctuations during business cycles.

The level and trends of market interest rates and and the shape of the U.S. Treasury yield curve affect our yields and margins on earning assets, including advances, purchased mortgage loans, and our investment portfolio, which contribute to our overall profitability. Additionally, trends in market interest rates drive mortgage origination and prepayment activity, which can lead to net interest margin volatility in our MPP and MBS portfolios. A flat or inverted yield curve, in which the difference between short-term interest rates and long-term interest rates is low, or negative, respectively, may have an unfavorable impact on our net interest margins. A steep yield curve, in which the difference between short-term and long-term interest rates is high, may have a favorable impact on our net interest margins. The level of interest rates also directly affects our earnings on assets funded by our interest-free capital.

Results of Operations and Changes in Financial Condition

 

Results of Operations for the Three Months Ended March 31, 2024 and 2023. The following table presents the comparative highlights of our results of operations ($ amounts in millions).

												Three Months Ended March 31,
Condensed Statements of Comprehensive Income																														2024						2023						$ Change						% Change
Net interest income																														$	129					$	104					$	25					25		%
Provision for (reversal of) credit losses																														—						—						—
Net interest income after provision for (reversal of) credit losses																														129						104						25						25		%
Other income																														9						30						(21)
Other expenses																														32						31						1
Income before assessments																														106						103						3						4		%
Affordable Housing Program assessments																														11						11						—
Net income																														95						92						3						3		%
Total other comprehensive income (loss)																														101						(47)						148
Total comprehensive income																														$	196					$	45					$	151					346		%

The increase in net income for the three months ended March 31, 2024 compared to the corresponding period in the prior year was primarily due to higher earnings on the portion of the Bank's assets funded by its capital, driven substantially by the increase in market interest rates. However, such increase was substantially offset by net gains on the extinguishment of consolidated obligations in the corresponding period that did not occur in the current period.

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The changes in total OCI for the three months ended March 31, 2024 compared to the corresponding period in the prior year were substantially due to unrealized gains on AFS securities.

The following table presents the returns on average assets and returns on average equity.

												Three Months Ended March 31,
Ratios																		2024						2023
Return on average assets																		0.52		%				0.53		%
Return on average equity																		9.80		%				10.86		%

Changes in Financial Condition for the Three Months Ended March 31, 2024. The following table presents the comparative highlights of our changes in financial condition ($ amounts in millions).

Condensed Statements of Condition						March 31, 2024						December 31, 2023						$ Change						% Change
Advances						$	35,297					$	35,562					$	(265)					(1)		%
Mortgage loans held for portfolio, net						8,853						8,614						239						3		%
Liquidity investments1						7,031						12,152						(5,121)						(42)		%
Other investment securities2						19,389						19,451						(62)						—		%
Other assets						800						829						(29)						(4)		%
Total assets						$	71,370					$	76,608					$	(5,238)					(7)		%
Consolidated obligations						$	65,739					$	71,053					$	(5,314)					(7)		%
MRCS						367						369						(2)						—		%
Other liabilities						1,296						1,442						(146)						(10)		%
Total liabilities						67,402						72,864						(5,462)						(7)		%
Capital stock						2,357						2,285						72						3		%
Retained earnings3						1,583						1,532						51						3		%
AOCI (loss)						28						(73)						101						138		%
Total capital						3,968						3,744						224						6		%
Total liabilities and capital						$	71,370					$	76,608					$	(5,238)					(7)		%
Total regulatory capital4						$	4,307					$	4,186					$	121					3		%

1    Includes cash, interest-bearing deposits, securities purchased under agreements to resell, federal funds sold and U.S. Treasury obligations classified as trading securities.

2    Includes AFS and HTM securities.

3    Includes restricted retained earnings at March 31, 2024 and December 31, 2023 of $417 million and $398 million, respectively.

4    Total capital less AOCI plus MRCS.

Total assets at March 31, 2024 were $71.4 billion, a net decrease of $5.2 billion, or 7%, from December 31, 2023, primarily due to decreases in investments.

Advances outstanding at March 31, 2024, at carrying value, totaled $35.3 billion, a net decrease of $265 million, or 1%, from December 31, 2023. The par value of advances outstanding decreased by 0.1% to $35.8 billion, which included a net decrease in short-term advances of 5% and a net increase in long-term advances of 1%. At March 31, 2024, long-term advances composed 74% of advances outstanding, while short-term advances composed 26%. The par value of advances outstanding to depository institutions — comprising commercial banks, savings institutions and credit unions — increased by 1%, while advances outstanding to insurance companies decreased by 2%.

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Mortgage loans held for portfolio at March 31, 2024 totaled $8.9 billion, a net increase of $239 million, or 3%, from December 31, 2023, as the Bank's purchases from its members exceeded principal repayments by borrowers. Purchases of mortgage loans for the three months ended March 31, 2024 totaled $418 million.

Liquidity investments at March 31, 2024 totaled $7.0 billion, a net decrease of $5.1 billion, or 42%, from December 31, 2023, primarily as a result of market conditions and the lack of availability of short-term investments at attractive interest rates relative to our cost of funds. As a result of this activity, cash and short-term investments represented 92% of the total liquidity investments at March 31, 2024, while U.S. Treasury obligations represented 8%.

Other investment securities, which consist substantially of MBS and U.S. Treasury obligations classified as HTM or AFS, at March 31, 2024 totaled $19.4 billion, a net decrease of $62 million, or 0.3%, from December 31, 2023.

The Bank's consolidated obligations outstanding at March 31, 2024 totaled $65.7 billion, a net decrease of $5.3 billion, or 7%, from December 31, 2023, which reflected lower funding needs associated with the net decrease in the Bank's total assets.

Total capital at March 31, 2024 was $4.0 billion, a net increase of $224 million, or 6%, from December 31, 2023. The net increase resulted from the increase in accumulated other comprehensive income, issuances of capital stock to support advance activity and growth of retained earnings.

The Bank's regulatory capital-to-assets ratio at March 31, 2024 was 6.03%, which exceeds all applicable regulatory capital requirements.

Outlook. We believe that our financial performance will continue to provide sufficient, risk-adjusted returns for our members across a wide range of business, financial and economic environments.

The ultimate effects of economic and financial markets activity, including fiscal and monetary policies, the strength of the housing markets and the level and volatility of market interest rates, and legislative and regulatory actions continue to evolve and are highly uncertain and, therefore, the future impact on our business is difficult to predict.

Analysis of Results of Operations for the Three Months Ended March 31, 2024 and 2023.

Interest Income. Interest income for the three months ended March 31, 2024 totaled $1.0 billion, an increase of $197 million compared to the corresponding period in the prior year, primarily driven by an increase in yields resulting from the increase in market interest rates and an increase in the average balances outstanding of interest-earning assets, primarily MBS and other investment securities.

Interest Expense. Interest expense for the three months ended March 31, 2024 totaled $887 million, an increase of $171 million compared to the corresponding period in the prior year, primarily driven by an increase in our cost of funds resulting from the increase in market interest rates and an increase in the average balances outstanding of interest-bearing liabilities, substantially CO bonds.

Net Interest Income. As a result, net interest income is our primary source of earnings and is generated from the net interest spread on assets funded by liabilities and the yield on assets funded by interest-free capital. The increase in net interest income for the three months ended March 31, 2024 compared to the corresponding period in the prior year was substantially due to higher earnings on the portion of the Bank's assets funded by its capital, driven substantially by the increase in market interest rates.

For our hedging relationships that qualified for hedge accounting, the differences between the changes in fair value of the hedged items and the associated derivatives (i.e. hedge ineffectiveness) are recorded in net interest income and resulted in net hedging gains of $4.0 million for the three months ended March 31, 2024, compared to net hedging gains of $0.3 million for the corresponding period in the prior year.

Our net gains (losses) on derivatives fluctuate due to volatility in the overall interest-rate environment as we hedge our asset or liability risk exposures. In general, we hold derivatives and associated hedged items to the maturity, call, or put date. Therefore, due to timing, nearly all of the cumulative net gains and losses for these financial instruments will generally reverse over the remaining contractual terms of the hedged item. However, there may be instances when we terminate these instruments prior to the maturity, call or put date, which may result in a realized gain or loss. For additional information, see Notes to Financial Statements - Note 8 - Derivatives and Hedging Activities in our 2023 Form 10-K.

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The following table presents average daily balances, interest income/expense, and average yields/cost of funds of our major categories of interest-earning assets and their funding sources ($ amounts in millions).

			Three Months Ended March 31,
			2024																		2023
			Average Balance						Interest Income/ Expense1						Average Yield/ Cost of Funds1,2						Average Balance						Interest Income/ Expense1						Average Yield/ Cost of Funds1,2
Assets:
Securities purchased under agreements to resell			$	1,634					$	22					5.41		%				$	2,826					$	32					4.59		%
Federal funds sold			5,013						68						5.42		%				4,052						45						4.55		%
MBS3,4			11,938						189						6.36		%				10,724						141						5.32		%
Other investment securities3,4			8,008						114						5.76		%				7,511						83						4.45		%
Advances4			35,976						515						5.76		%				36,630						434						4.81		%
Mortgage loans held for portfolio4,5			8,721						78						3.60		%				7,710						58						3.04		%
Other assets (interest-earning)6			2,300						30						5.31		%				2,388						26						4.46		%
Total interest-earning assets			73,590						1,016						5.55		%				71,841						819						4.62		%
Other assets, net7			(485)																		(1,093)
Total assets			$	73,105																	$	70,748
Liabilities and Capital:
Interest-bearing deposits			$	739					11						5.20		%				$	722					7						4.28		%
Discount notes			18,767						250						5.36		%				23,328						257						4.46		%
CO bonds4			48,659						621						5.14		%				42,224						447						4.29		%
MRCS			368						5						5.83		%				372						4						4.47		%
Other borrowings			—						—						—		%				6						—						4.87		%
Total interest-bearing liabilities			68,533						887						5.20		%				66,652						715						4.35		%
Other liabilities			678																		673
Capital stock			2,318																		2,174
All other components of capital			1,576																		1,249
Total liabilities and capital			$	73,105																	$	70,748
Net interest income									$	129																	$	104
Net spread on interest-earning assets less interest-bearing liabilities2															0.35		%																0.27		%
Net interest margin8															0.71		%																0.59		%
Average interest-earning assets to interest-bearing liabilities			1.07																		1.08

1    Includes hedging gains (losses) on qualifying fair-value hedging relationships. Excludes impact of purchase discount (premium) recorded through mark-to-market gains (losses) on trading securities and net interest settlements on derivatives hedging trading securities.

2    Annualized. 

3    The average balances of AFS securities are based on amortized cost; therefore, the resulting yields do not reflect changes in the estimated fair value that are a component of OCI.

4    Except for AFS securities, interest income/expense and average yield/cost of funds include all components of interest, including the impact of net interest payments or receipts on derivatives in qualifying hedge relationships, amortization of hedge accounting basis adjustments, and prepayment fees on advances. Excludes net interest payments or receipts on derivatives in economic hedging relationships, including those hedging trading securities.

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5    Includes non-accrual loans.

6    Consists of interest-bearing deposits and loans to other FHLBanks (if applicable). Includes the rights or obligations to cash collateral, except for variation margin payments characterized as daily settled contracts.

7    Includes cumulative changes in the estimated fair value of AFS securities and grantor trust assets.

8    Annualized net interest income expressed as a percentage of the average balance of interest-earning assets.

Average Balances. The average balances outstanding of interest-earning assets for the three months ended March 31, 2024 increased by 2% compared to the corresponding period in 2023. The average balances of MBS and other investment securities increased by 9%, reflecting our goal to maintain investments in MBS near the 300% regulatory limit. The average balances outstanding of interest-bearing liabilities for the three months ended March 31, 2024 increased by 3% compared to the corresponding period in 2023. The average balances of discount notes decreased by 20%, while the average balances of CO bonds increased by 15%, reflecting a change in the mix of funding. As a result, the average balances of total interest-earning assets, net of interest-bearing liabilities, decreased by 3%.

Yields/Cost of Funds. The average yield on total interest-earning assets, including the impact of hedging gains/losses but excluding certain impacts of trading securities, for the three months ended March 31, 2024 was 5.55%, an increase of 93 bps compared to the corresponding period in 2023, resulting primarily from increases in market interest rates that led to higher yields on our interest-earning assets. Such increase contributed to the increase in interest income on the portion of the Bank's assets funded by its interest-free capital. The average cost of funds of total interest-bearing liabilities, including the impact of hedging gains and losses but excluding certain impacts of trading securities, for the three months ended March 31, 2024 was 5.20%, an increase of 85 bps due to higher funding costs on all of our interest-bearing liabilities. The net effect was a increase in the overall net interest spread of 8 bps compared to the corresponding period in 2023.

Other Income. The following table presents a comparison of the components of other income ($ amounts in millions).

												Three Months Ended March 31,
Components																		2024						2023
Net unrealized gains (losses) on trading securities¹																		$	(3)					$	12
Net realized gains (losses) on trading securities²																		(2)						(4)
Net gains (losses) on trading securities																		(5)						8
Net gains (losses) on derivatives hedging trading securities																		7						(11)
Net gains (losses) on other derivatives not designated as hedging instruments³																		—						—
Net interest settlements on economic derivatives4																		2						10
Net gains (losses) on derivatives																		9						(1)
Net gains on extinguishment of debt																		—						20
Change in fair value of investments indirectly funding the liabilities under the SERP																		3						2
Other, net																		2						1
Total other income																		$	9					$	30

1    Includes impact of purchase discount (premium) recorded through mark-to-market gains (losses). Excludes impact of associated derivatives.

2    Includes, at maturity, 100% of original discount (premium) as gain (loss). Excludes impact of associated derivatives.

3    Includes swap termination fees received (paid) associated with sales of AFS securities.

4    Generally offsetting interest income on trading securities or interest expense on the associated funding is included in net interest income.

The decrease in total other income for the three months ended March 31, 2024 compared to the corresponding period in 2023 was due substantially to net gains on the extinguishment of consolidated obligations in 2023 that did not occur in 2024.

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Other Expenses. The following table presents a comparison of the components of other expenses ($ amounts in millions).

												Three Months Ended March 31,
Components																		2024						2023
Compensation and benefits																		$	16					$	17
Other operating expenses																		8						7
Finance Agency and Office of Finance																		3						3
Voluntary allocations to AHP and/or related programs																		4						3
Other																		1						1
Total other expenses																		$	32					$	31

The net increase in total other expenses for the three months ended March 31, 2024 compared to the corresponding period in 2023 was due to several factors, none of which were significant.

Our voluntary allocations to our AHP or other affordable housing, small business and community investment programs are based on the Bank's commitment to allocate voluntary funding in 2024 equal to 5% of its net earnings for 2023, but the timing of the recognition of such allocations in other expenses can vary due to applicable accounting requirements.

AHP Assessments. For the three months ended March 31, 2024, our required AHP expense was $11 million. Our AHP expense fluctuates in accordance with our net earnings.

As a result, the Bank's combined required and voluntary allocation for the three-month period totaled $15 million, an increase of $1 million, or 8%, compared to the corresponding period in 2023.

Total Other Comprehensive Income (Loss). Total OCI for the three months ended March 31, 2024 consisted substantially of net unrealized gains on AFS securities, compared to net unrealized losses on AFS securities for the corresponding period in 2023. These amounts represent the portion of the changes in fair value that are not attributable to the risks being hedged in fair-value hedge relationships and were primarily impacted by changes in interest rates, credit spreads and volatility.

Operating Segments

 

Our products and services are grouped within two operating segments: traditional and mortgage loans.

 

Traditional. The following table presents the financial performance of our traditional segment ($ amounts in millions). 

												Three Months Ended March 31,
Traditional																		2024						2023
Net interest income																		$	115					$	91
Provision for (reversal of) credit losses																		—						—
Other income																		9						30
Other expenses																		28						27
Income before assessments																		96						94
Affordable Housing Program assessments																		10						10
Net income																		$	86					$	84

The increase in net income for the traditional segment for the three months ended March 31, 2024 compared to the corresponding period in 2023 was primarily due to higher earnings on the portion of the Bank's assets funded by its capital, driven substantially by the increase in market interest rates. However, such increase was substantially offset by net gains on the extinguishment of consolidated obligations in 2023 that did not occur in 2024.

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Mortgage Loans. The following table presents the financial performance of our mortgage loans segment ($ amounts in millions). 

												Three Months Ended March 31,
Mortgage Loans																		2024						2023
Net interest income																		$	14					$	13
Provision for (reversal of) credit losses																		—						—
Other income																		—						—
Other expenses																		4						4
Income before assessments																		10						9
Affordable Housing Program assessments																		1						1
Net income																		$	9					$	8

There was no meaningful change in net income for the mortgage loans segment for the three months ended March 31, 2024 compared to the corresponding period in 2023.

Analysis of Financial Condition

 

Total Assets. The table below presents the comparative highlights of our major asset categories ($ amounts in millions).

						March 31, 2024												December 31, 2023
Major Asset Categories						Carrying Value						% of Total						Carrying Value						% of Total
Advances						$	35,297					49		%				$	35,562					46		%
Mortgage loans held for portfolio, net						8,853						12		%				8,614						11		%
Cash and short-term investments						6,449						9		%				11,552						15		%
Trading securities						582						1		%				600						1		%
MBS						11,962						17		%				11,947						16		%
Other investment securities						7,427						11		%				7,504						10		%
Other assets1						800						1		%				829						1		%
Total assets						$	71,370					100		%				$	76,608					100		%

1    Includes accrued interest receivable, premises, software and equipment, derivative assets and other miscellaneous assets.

The mix of our assets at March 31, 2024 changed compared to December 31, 2023 primarily due to the decrease in cash and short-term investments due to market conditions and the lack of availability of short-term investments at attractive rates relative to our cost of funds.

Advances. In general, advances fluctuate in accordance with our members' funding needs, primarily determined by their deposit levels, mortgage pipelines, loan growth, investment opportunities, available collateral, other balance sheet strategies, and the cost of alternative funding options.

Advances at March 31, 2024 at carrying value totaled $35.3 billion, a net decrease of $265 million, or 0.7%, compared to December 31, 2023. Advances outstanding to our insurance company members slightly decreased due to paydowns by a single member. Otherwise, insurance advances outstanding slightly increased. Advances outstanding to our depository members slightly increased due to higher demand for advances to support their liquidity needs and manage their balance sheets in the current economic environment. The rise in market interest rates has had an adverse impact on depository members' ability to liquidate their investment portfolios and maintain or increase their deposit levels.

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Our advances portfolio is well-diversified with advances to commercial banks and savings institutions, credit unions, and insurance companies. As a percent of total advances outstanding at par value, at March 31, 2024, advances to commercial banks and savings institutions were 49% and advances to credit unions were 14%, resulting in total advances to depository institutions of 63%, while advances to insurance companies were 37%.

The table below presents advances outstanding by type of financial institution ($ amounts in millions).

						March 31, 2024												December 31, 2023
Borrower Type						Par Value						% of Total						Par Value						% of Total
Depository institutions:
Commercial banks and savings institutions						$	15,957					45		%				$	15,282					42		%
Credit unions						5,023						14		%				5,471						15		%
Former members						1,612						4		%				1,617						5		%
Total depository institutions						22,592						63		%				22,370						62		%
Insurance companies:
Captive insurance company1						90						—		%				115						—		%
Other insurance companies						13,137						37		%				13,386						38		%
Former members2						5						—		%				5						—		%
Total insurance companies						13,232						37		%				13,506						38		%
CDFIs						1						—		%				1						—		%
Total advances outstanding						$	35,825					100		%				$	35,877					100		%

1    Captive insurance companies that were admitted as FHLBank members prior to September 12, 2014, and did not meet the definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership under the Final Rule on FHLBank Membership, had their memberships terminated on February 19, 2021. The outstanding advances to one captive insurer are not required to be repaid prior to their various maturity dates in 2024.

2    Other than captive insurance companies.

Our advances portfolio includes fixed- and variable-rate advances, as well as callable or prepayable and putable advances. Prepayable advances may be prepaid on specified dates without incurring repayment or termination fees. All other advances may only be prepaid by the borrower paying a fee that is sufficient to make us financially indifferent to the prepayment.

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The following table presents the par value of advances outstanding by product type and redemption term, some of which contain call or put options ($ amounts in millions).

						March 31, 2024												December 31, 2023
Product Type and Redemption Term						Par Value						% of Total						Par Value						% of Total
Fixed-rate:
Without call or put options
Due in 1 year or less						$	8,083					23		%				$	9,099					26		%
Due after 1 through 5 years						12,560						35		%				12,309						34		%
Due after 5 through 15 years						1,754						5		%				1,935						5		%
Thereafter						12						—		%				14						—		%
Total						22,409						63		%				23,357						65		%
Callable or prepayable
Due after 1 through 5 years						55						—		%				55						—		%
Due after 5 through 15 years						36						—		%				36						—		%
Total						91						—		%				91						—		%
Putable
Due after 1 through 5 years						1,367						4		%				1,041						3		%
Due after 5 through 15 years						5,071						14		%				5,134						15		%
Total						6,438						18		%				6,175						18		%
Total fixed-rate						28,938						81		%				29,623						83		%
Variable-rate:
Without call or put options
Due in 1 year or less						173						1		%				311						1		%
Due after 1 through 5 years						510						1		%				410						1		%
Due after 5 through 15 years						50						—		%				50						—		%
Total						733						2		%				771						2		%
Callable or prepayable
Due in 1 year or less						1,082						3		%				370						1		%
Due after 1 through 5 years						3,246						9		%				3,335						9		%
Due after 5 through 15 years						1,445						4		%				1,412						4		%
Thereafter						381						1		%				366						1		%
Total						6,154						17		%				5,483						15		%
Total variable-rate						6,887						19		%				6,254						17		%
Overdrawn demand and overnight deposit accounts						—						—		%				—						—		%
Total advances						$	35,825					100		%				$	35,877					100		%

At March 31, 2024 and December 31, 2023, fixed-rate advances included $22.5 billion and $22.0 billion, respectively, that are swapped to effectively create variable-rate advances, consistent with our balance sheet strategies to manage interest-rate risk.

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During the three months ended March 31, 2024, the par value of advances due in one year or less decreased by 5%, while advances due after one year increased by 1%. As a result, advances due in one year or less, as a percentage of the total outstanding at par, totaled 26% at March 31, 2024, a decrease from 27% at December 31, 2023. However, based on the earlier of the redemption or next put date, advances due in one year or less, as a percentage of the total outstanding, at par, at March 31, 2024 and December 31, 2023 totaled 39%. For additional information, see Notes to Financial Statements - Note 4 - Advances.

The following table presents our variable-rate advances outstanding by the associated interest-rate index ($ amounts in millions).

Variable Interest-Rate Index						March 31, 2024						December 31, 2023
SOFR						$	2,770					$	2,856
FHLBanks cost of funds						3,082						3,151
Other						1,035						247
Total variable-rate advances, at par value						$	6,887					$	6,254

Mortgage Loans Held for Portfolio. Mortgage loans held for portfolio at March 31, 2024, at carrying value, totaled $8.9 billion, a net increase of $239 million, or 3%, from December 31, 2023, as the Bank's purchases from its members exceeded principal repayments by borrowers.

The following table summarizes the activity in the UPB of mortgage loans held for portfolio ($ amounts in millions).

												Three Months Ended March 31,
Mortgage Loans Activity																		2024						2023
Balance, beginning of period																		$	8,453					$	7,533
Purchases																		408						194
Principal repayments																		(174)						(146)
Balance, end of period																		$	8,687					$	7,581

All of our mortgage loans have fixed interest rates. Rising mortgage interest rates resulted in lower levels of prepayments by our borrowers. However, purchases increased due to strong demand by our members to participate in our Advantage MPP.

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Liquidity and Other Investment Securities. The following table presents a comparison of the components of our liquidity investments and other investment securities at carrying value ($ amounts in millions).

						March 31, 2024												December 31, 2023
Components						Carrying Value						% of Total						Carrying Value						% of Total
Liquidity investments:
Cash and short-term investments:
Cash and due from banks						$	74					—		%				$	59					—		%
Interest-bearing deposits						807						3		%				892						3		%
Securities purchased under agreements to resell						2,500						10		%				6,500						20		%
Federal funds sold						3,068						12		%				4,101						13		%
Total cash and short-term investments						6,449						25		%				11,552						36		%
Trading securities:
U.S. Treasury obligations						582						2		%				600						2		%
Total trading securities						582						2		%				600						2		%
Total liquidity investments						7,031						27		%				12,152						38		%
Other investment securities:
AFS securities:
U.S. Treasury obligations						5,626						21		%				5,697						18		%
GSE and TVA debentures						1,801						7		%				1,807						6		%
GSE multifamily MBS						6,691						25		%				6,690						21		%
Total AFS securities						14,118						53		%				14,194						45		%
HTM securities:
Other U.S. obligations single-family MBS						3,919						15		%				4,010						13		%
GSE single-family MBS						793						3		%				684						2		%
GSE multifamily MBS						559						2		%				563						2		%
Total HTM securities						5,271						20		%				5,257						17		%
Total other investment securities						19,389						73		%				19,451						62		%
Total cash and investments, carrying value						$	26,420					100		%				$	31,603					100		%

Liquidity Investments. The total outstanding balance and composition of our liquidity investments are influenced by our liquidity needs, regulatory requirements, actual and anticipated member advance activity, market conditions, and the availability of short-term investments at attractive interest rates, relative to our cost of funds.

Cash and short-term investments at March 31, 2024 totaled $6.4 billion, a decrease of $5.1 billion, or 44%, from December 31, 2023. As a result, cash and short-term investments as a percent of total assets declined to 9% at March 31, 2024 from 15% at December 31, 2023.

The Bank purchases U.S. Treasury obligations as trading securities to enhance its liquidity. Such securities outstanding at March 31, 2024 totaled $582 million, a decrease of $18 million, or 3%, from December 31, 2023.

Liquidity investments at March 31, 2024 totaled $7.0 billion, a decrease of $5.1 billion, or 42%, from December 31, 2023.

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Other Investment Securities. AFS securities at March 31, 2024 totaled $14.1 billion, a net decrease of $76 million, or 1%, from December 31, 2023.

Net unrealized gains on AFS securities, excluding the portion of the changes in fair value that are attributable to the risks being hedged in fair-value hedging relationships, at March 31, 2024 totaled $42 million, compared to net unrealized losses at December 31, 2023 of $(60) million, primarily due to changes in interest rates, credit spreads and volatility.

HTM securities at March 31, 2024 totaled $5.3 billion, a net increase of $14 million, or 0.3%, from December 31, 2023.

Net unrecognized losses on HTM securities at March 31, 2024 totaled $(57) million, a decrease in the net losses of $20 million compared to December 31, 2023, primarily due to changes in interest rates, credit spreads and volatility.

Interest-Rate Payment Terms. Our other investment securities are presented below by interest-rate payment terms ($ amounts in millions).

    

						March 31, 2024												December 31, 2023
Interest-Rate Payment Terms						Amortized Cost						% of Total						Amortized Cost						% of Total
AFS Securities1:
Total non-MBS fixed-rate						$	7,389					52		%				$	7,501					53		%
Total MBS fixed-rate						6,688						48		%				6,753						47		%
Total AFS securities						$	14,077					100		%				$	14,254					100		%
HTM Securities:
Total MBS fixed-rate						$	199					4		%				$	199					4		%
Total MBS variable-rate						5,072						96		%				5,058						96		%
Total HTM securities						$	5,271					100		%				$	5,257					100		%
AFS and HTM securities:
Total fixed-rate						$	14,276					74		%				$	14,453					74		%
Total variable-rate						5,072						26		%				5,058						26		%
Total AFS and HTM securities						$	19,348					100		%				$	19,511					100		%

1    Carrying value for AFS is equal to estimated fair value.

The mix of fixed- vs. variable-rate AFS and HTM securities at March 31, 2024 remained the same from December 31, 2023. However, all of the fixed-rate AFS securities are swapped to effectively create variable-rate securities, consistent with our balance sheet strategies to manage interest-rate risk. All of our variable-rate MBS are indexed to SOFR.

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Total Liabilities. Total liabilities at March 31, 2024 were $67.4 billion, a net decrease of $5.5 billion, or 7%, from December 31, 2023.

Deposits (Liabilities). Total deposits at March 31, 2024 were $532 million, a net decrease of $96 million, or 15%, from December 31, 2023. These deposits provide a relatively small portion of our funding but can fluctuate from period to period and vary depending upon such factors as the attractiveness of our deposit pricing relative to the rates available on alternative money market instruments, members' preferences with respect to the maturity of their investments, and members' liquidity. The balances of these accounts are uninsured.

Consolidated Obligations. The overall balance of our consolidated obligations fluctuates in relation to our total assets. The carrying value of consolidated obligations outstanding at March 31, 2024 totaled $65.7 billion, a net decrease of $5.3 billion, or 7%, from December 31, 2023, which reflected lower funding needs associated with the net decrease in the Bank's total assets.

The following table presents a breakdown by term of our consolidated obligations outstanding ($ amounts in millions).

						March 31, 2024												December 31, 2023
Term						Par Value						% of Total						Par Value						% of Total
Consolidated obligations due in 1 year or less:
Discount notes						$	17,020					25		%				$	22,737					31		%
CO bonds						15,062						23		%				20,137						28		%
Total due in 1 year or less						32,082						48		%				42,874						59		%
Long-term CO bonds						35,205						52		%				29,690						41		%
Total consolidated obligations						$	67,287					100		%				$	72,564					100		%

The mix of our funding changed from December 31, 2023 as discount notes outstanding decreased, consistent with the decrease in short-term investments. We continue to seek to maintain a sufficient liquidity and funding balance between our financial assets and financial liabilities.

At March 31, 2024 and December 31, 2023, callable CO bonds were 59% and 72%, respectively, of total CO bonds outstanding.

At March 31, 2024 and December 31, 2023, 79% and 82%, respectively, of our fixed-rate CO bonds were swapped using derivative instruments to effectively create variable-rate CO bonds, consistent with our balance sheet strategies to manage interest-rate risk. All of our variable-rate CO bonds outstanding at March 31, 2024 and December 31, 2023 were indexed to SOFR.

Derivatives. The volume of derivative hedges is often expressed in terms of notional amounts, which is the amount upon which interest payments are calculated. The following table presents the notional amounts by type of hedged item regardless of whether it is in a qualifying hedge relationship ($ amounts in millions).

Hedged Item						March 31, 2024						December 31, 2023
Advances						$	22,487					$	21,950
Investments						16,780						16,713
Mortgage loans MDCs						188						115
CO bonds						32,497						38,094
Total notional outstanding						$	71,952					$	76,872

The decrease in the total notional amount outstanding from December 31, 2023 of $4.9 billion, or 6%, was substantially due to a decrease in derivatives hedging CO bonds, driven primarily by a decrease in callable CO bonds outstanding.

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The following table presents the notional amounts of derivatives (cleared and uncleared) by pay or receive leg ($ amounts in millions).

						March 31, 2024												December 31, 2023
Interest rate swaps outstanding						Pay Leg						Receive Leg						Pay Leg						Receive Leg
Fixed rate						$	39,455					$	33,497					$	38,778					$	39,019
SOFR						26,448						32,052						31,879						31,390
EFFR						6,049						6,403						6,215						6,463
Total notional						$	71,952					$	71,952					$	76,872					$	76,872

The following table presents the cumulative impact of fair-value hedging basis adjustments on our statement of condition ($ amounts in millions).

						March 31, 2024
						Advances						AFS Securities						CO Bonds						Total
Cumulative fair-value hedging basis gains (losses) on hedged items						$	(532)					$	(1,033)					$	1,466					$	(99)
Estimated fair value of associated derivatives, net						531						1,227						(1,458)						300
Net cumulative fair-value hedging gains (losses)						$	(1)					$	194					$	8					$	201

The cumulative gains on AFS securities resulted from our strategy of terminating certain interest-rate swaps associated with certain MBS and entering into hedging relationships with new interest-rate swaps in connection with our London Interbank Offered Rate (LIBOR) transition. The net cumulative fair-value hedging gains on AFS securities includes losses on the terminated swaps that are being amortized into earnings as interest expense over the life of the original swap, but are generally being offset by the lower interest expense on the new swaps.

Total Capital. Total capital at March 31, 2024 was $4.0 billion, a net increase of $224 million, or 6%, from December 31, 2023. The net increase resulted from the increase in accumulated other comprehensive income, issuances of capital stock to support advance activity and growth of retained earnings.

The following table presents a percentage breakdown of the components of GAAP capital.

Components						March 31, 2024						December 31, 2023
Capital stock						59		%				61		%
Retained earnings						40		%				41		%
AOCI						1		%				(2)		%
Total GAAP capital						100		%				100		%

The changes in the components of GAAP capital at March 31, 2024 compared to December 31, 2023 were primarily due to an increase in AOCI.

The following table presents a reconciliation of GAAP capital to regulatory capital ($ amounts in millions).

Reconciliation						March 31, 2024						December 31, 2023
Total GAAP capital						$	3,968					$	3,744
Exclude: Accumulated other comprehensive (gain) loss						(28)						73
Add: MRCS						367						369
Total regulatory capital						$	4,307					$	4,186

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Liquidity

 

Our primary sources of liquidity are holdings of liquid assets, comprised of cash, short-term investments, and trading securities, as well as the issuance of consolidated obligations.

During the three months ended March 31, 2024, we maintained sufficient access to funding; our net proceeds from the issuance of consolidated obligations totaled $195.8 billion.

Changes in Cash Flow. Net cash provided by operating activities for the three months ended March 31, 2024 was $373 million, compared to net cash used in operating activities for the three months ended March 31, 2023 of $(96) million. The net increase in cash provided of $469 million was substantially due to the fluctuation in variation margin payments on cleared derivatives. Such payments are treated by the Clearinghouses as daily settled contracts.

Capital Resources

Total Regulatory Capital Stock. The following table provides a breakdown of our outstanding capital stock and MRCS by type of member ($ amounts in millions).

						March 31, 2024												December 31, 2023
Type of Member						Amount						% of Total						Amount						% of Total
Capital Stock:
Depository institutions:
Commercial banks and savings institutions						$	1,074					40		%				$	1,031					39		%
Credit unions						472						17		%				461						17		%
Total depository institutions						1,546						57		%				1,492						56		%
Insurance companies						811						30		%				793						30		%
CDFIs						—						—		%				—						—		%
Total capital stock, putable at par value						2,357						87		%				2,285						86		%
MRCS:
Captive insurance company1						4						—		%				5						—		%
Other former members						363						13		%				364						14		%
Total MRCS						367						13		%				369						14		%
Total regulatory capital stock						$	2,724					100		%				$	2,654					100		%

1    Represents a captive insurance company whose membership was terminated on February 19, 2021. On that date, we repurchased its excess stock of $18 million. The remaining balance will not be fully redeemed until the associated credit products are no longer outstanding.

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Required and Excess Capital Stock. The following table presents the composition of our regulatory capital stock ($ amounts in millions).

Components						March 31, 2024						December 31, 2023
Required capital stock:
Member capital stock						$	1,804					$	1,800
MRCS						77						79
Total required capital stock						1,881						1,879
Excess capital stock:
Member capital stock not subject to outstanding redemption requests						553						485
Member capital stock subject to outstanding redemption requests						—						—
MRCS						290						290
Total excess capital stock						843						775
Total regulatory capital stock						$	2,724					$	2,654
Excess stock as a percentage of regulatory capital stock						31		%				29		%

The net increase in required capital stock and total regulatory capital stock was due to issuances of capital stock to support disbursements of advances during the three-month period. However, as a result of paydowns of advances during the period, a portion of required stock was automatically reclassified to excess stock in accordance with our capital plan.

On April 25, 2024, the Bank announced that it will repurchase, on a voluntary basis and for a limited time, up to $100 million in par value of excess Class B-1 capital stock from its current members no sooner than May 13, 2024.

Capital Distributions. The total amount of the dividend to be paid is based on the declared dividend rate for each sub-series of Class B capital stock and the average number of shares of each sub-series held by members during the dividend payment period (applicable quarter). The following table summarizes our weighted-average dividend rate and dividend payout ratio.

												Three Months Ended March 31,
																		2024						2023
Weighted-average dividend rate1																		7.41		%				4.84		%
Dividend payout ratio2																		46.58		%				27.55		%

1    Dividends paid in cash during the period (annualized) divided by the average amount of Class B stock eligible for dividends under our capital plan, including MRCS, for that same period.

2    Dividends paid in cash during the period divided by net income for that same period.

On April 25, 2024, our board of directors declared a cash dividend on Class B-2 activity-based stock at an annualized rate of 9.50% and on Class B-1 non-activity-based stock at an annualized rate of 4.50%, resulting in a spread between the rates of 5.00 percentage points. The overall weighted-average annualized rate paid on capital stock, including MRCS, was 7.87%. The dividends were paid in cash on April 26, 2024.

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Adequacy of Capital. We must maintain sufficient permanent capital to meet the combined credit risk, market risk and operational risk components of the risk-based capital requirement. The following table presents our risk-based capital requirement in relation to our permanent capital at March 31, 2024 and December 31, 2023 ($ amounts in millions).

Risk-Based Capital Components						March 31, 2024						December 31, 2023
Credit risk						$	169					$	211
Market risk						689						771
Operational risk						258						295
Total risk-based capital requirement						$	1,116					$	1,277
Permanent capital						$	4,307					$	4,186
Permanent capital as a percentage of required risk-based capital						386		%				328		%

The decrease in our total risk-based capital requirement was primarily caused by a decrease in the market risk component due to changes in the market environment, including changes in interest rates, CO-swap basis, volatility and option-adjusted spreads, and balance sheet composition. The operational risk component is calculated as 30% of the credit and market risk components. Our permanent capital at March 31, 2024 remained well in excess of our total risk-based capital requirement.

Critical Accounting Estimates

A full discussion of our critical accounting estimates is included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates in our 2023 Form 10-K. 

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Recent Accounting and Regulatory Developments

 

Accounting Developments. For a description of how recent accounting developments may impact our financial condition, results of operations or cash flows, see Notes to Financial Statements - Note 2 - Recently Adopted and Issued Accounting Guidance.

Legislative and Regulatory Developments. The following is a summary of significant regulatory actions and developments for the period covered by this report that have not been previously disclosed.

Finance Agency’s Review and Analysis of the Federal Home Loan Bank System. On November 7, 2023, the Finance Agency issued a written report titled "FHLBank System at 100: Focusing on the Future," presenting its review and analysis of the FHLBank System and the actions and recommendations that it plans to pursue in service of its vision for the future of the FHLBank System. The report focused on four broad themes: (i) the mission of the FHLBank System; (ii) the FHLBank System as a stable and reliable source of liquidity; (iii) housing and community development; and (iv) FHLBank System operational efficiency, structure, and governance. The Finance Agency expects to continue a multi-year, collaborative effort with the FHLBanks, their member institutions, and other stakeholders to address the recommended actions in the report and has stated that it can implement some of the recommendations from the report through ongoing supervision, guidance, or rulemaking, as well as through statutory changes by proposing specific requests for Congressional action.

In April 2024, the Finance Agency provided an update on its plan to implement the report’s recommendations and announced key priorities for 2024. Among others, these priorities include (i) clarifying the FHLBank System mission; (ii) aligning eligibility requirements for different types of FHLBank members; and (iii) streamlining requirements related to the AHP. The Finance Agency stated that it would maintain transparency and continue robust stakeholder engagement during the implementation process, including seeking input on FHLBank mission achievement and members’ connection to housing and community development.

The Bank continues to monitor the Finance Agency’s efforts to implement the recommendations from the report, and we are not able to predict what actions will ultimately result, the timing or extent of any actions or changes, or the ultimate effect on the Bank or the FHLBank System in the future. We plan to continue to engage with the Finance Agency and other stakeholders in an effort to ensure that the FHLBank System remains well positioned to serve our members and their communities. For a further discussion of the report and related risks, see, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Legislative and Regulatory Developments and Item 1A. Risk Factors - Business Risk - Legislative and Regulatory - Changes in the Legislative and Regulatory Environment for FHLBanks, Our Members, Our Debt Underwriters and Investors, or Other Housing GSEs May Adversely Affect Our Business, Demand for Products, the Cost of Debt Issuance, and the Value of FHLBank Membership of the Bank’s 2023 Form 10-K.

Finance Agency Final Rule on Fair Lending, Fair Housing, and Equitable Housing Finance Plans. On April 29, 2024, the Finance Agency released its final rule that specifies requirements related to FHLBanks’ compliance with fair housing and fair lending laws and related regulations, including the Fair Housing Act and the Equal Credit Opportunity Act, and prohibitions on unfair or deceptive acts or practices under the Federal Trade Commission Act. The final rule (i) addresses the enforcement authority of the Finance Agency; (ii) articulates standards related to the board of directors' oversight of fair housing, fair lending, and principles of equitable housing; and (iii) requires each FHLBank to annually report actions it voluntarily takes to address barriers to sustainable housing opportunities for underserved communities ("Equitable Housing Report Requirements"). The final rule will become effective 60 days after the date it is published in the Federal Register, except that the Equitable Housing Report Requirements will become effective on February 15, 2026. We continue to review the final rule and evaluate its impact on our operations.

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Risk Management

We have exposure to a number of risks in pursuing our business objectives. These risks may be broadly classified as market, credit, liquidity, operational, and business. Market risk is discussed in Item 3. Quantitative and Qualitative Disclosures about Market Risk. For additional information, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management in our 2023 Form 10-K.

Credit Risk Management. We face credit risk on advances and other credit products, investments, mortgage loans, derivative financial instruments, and AHP grants.

Advances and Other Credit Products. 

Concentration. Our credit risk is magnified due to the concentration of advances in a few borrowers. As of March 31, 2024, our top borrower held 12% of total advances outstanding, at par, and our top five borrowers held 35% of total advances outstanding, at par. Because of this concentration in advances, we perform frequent credit and collateral reviews on our largest borrowers. In addition, we regularly analyze the implications to our financial management and profitability if we were to lose the business of one or more of these borrowers. The following table presents the par value of advances outstanding to our largest borrowers ($ amounts in millions).

						March 31, 2024
Borrower						Amount						% of Total
Old National Bank						$	4,225					12		%
The Lincoln National Life Insurance Company						2,900						8		%
Jackson National Life Insurance Company						2,050						6		%
First National Bank of America						1,880						5		%
Delaware Life Insurance Company						1,588						4		%
Subtotal - five largest borrowers						12,643						35		%
Next five largest borrowers						7,236						20		%
Remaining borrowers						15,946						45		%
Total advances, par value						$	35,825					100		%

Investments. We are also exposed to credit risk through our investment portfolio. Our policies restrict the acquisition of investments to high-quality, short-term money market instruments and high-quality long-term securities.

The following table presents the unsecured investment credit exposure to private counterparties, categorized by the domicile of the counterparty's ultimate parent, based on the lowest of the counterparty's NRSRO long-term credit ratings, stated in terms of the S&P equivalent. The table does not reflect the foreign sovereign government's credit rating ($ amounts in millions).

						March 31, 2024
Country						AA						A						Total
Domestic						$	—					$	1,160					$	1,160
Australia						1,300						—						1,300
Canada						—						50						50
Germany						865						—						865
Netherlands						—						500						500
Total unsecured credit exposure						$	2,165					$	1,710					$	3,875

Trading Securities. Our liquidity portfolio includes shorter-term U.S. Treasury obligations, which are direct obligations of the U.S. government and are classified as trading securities.

Other Investment Securities. Our long-term investments include MBS guaranteed by the housing GSEs (Fannie Mae and Freddie Mac), other U.S. obligations - guaranteed MBS (Ginnie Mae), longer-term U.S. Treasury obligations, and debentures issued by Fannie Mae, Freddie Mac, the TVA and the Federal Farm Credit Banks.

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A Finance Agency regulation provides that the total amount of our investments in MBS, calculated using amortized historical cost excluding the impact of certain derivatives adjustments, must not exceed 300% of our total regulatory capital, as of the day we purchase the securities, based on the capital amount most recently reported to the Finance Agency. If our outstanding investments in MBS exceed the limitation at any time, but were in compliance at the time we purchased the investments, we would not be considered out of compliance with the regulation, but we would not be permitted to purchase additional investments in MBS until these outstanding investments were within the limitation. Generally, our goal is to maintain investments in MBS near the 300% regulatory limit in order to enhance earnings and capital for our members and diversify our revenue stream. At March 31, 2024, these investments totaled 293% of total regulatory capital.

The following table presents the carrying values of our investments, excluding accrued interest, grouped by credit rating and investment category. Applicable rating levels are determined using the lowest relevant long-term rating from S&P and Moody's, each stated in terms of the S&P equivalent. Rating modifiers are ignored when determining the applicable rating level for a given counterparty. Amounts reported do not reflect any subsequent changes in ratings, outlook, or watch status ($ amounts in millions).

												March 31, 2024
Investment												AA						A												Unrated1						Total
Short-term investments:
Interest-bearing deposits												$	—					$	807											$	—					$	807
Securities purchased under agreements to resell												—						2,100												400						2,500
Federal funds sold												2,165						903												—						3,068
Total short-term investments												2,165						3,810												400						6,375
Trading securities:
U.S. Treasury obligations												582						—												—						582
Total trading securities												582						—												—						582
Other investment securities:
U.S. Treasury obligations												5,626						—																		5,626
GSE and TVA debentures												1,801						—												—						1,801
GSE MBS												8,043						—												—						8,043
Other U.S. obligations single-family MBS												3,919						—												—						3,919
Total other investment securities												19,389						—												—						19,389
Total investments, carrying value												$	22,136					$	3,810											$	400					$	26,346
Percentage of total												84		%				14		%										2		%				100		%

1    Although the counterparty is unrated, the underlying collateral supporting these investments are U.S. Treasury obligations with a rating of AA.

Mortgage Loans Held for Portfolio. The following table presents the changes in the LRA ($ amounts in millions).

																																				Three Months Ended
LRA Activity																																				March 31, 2024
Liability, beginning of period																																				$	243
Additions																																				5
Claims paid																																				—
Distributions to Participating Financial Institutions																																				(7)
Liability, end of period																																				$	241

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Derivatives. The following table presents key information on derivative positions with counterparties on a settlement date basis using the lower credit rating from S&P and Moody's, stated in terms of the S&P equivalent ($ amounts in millions).

						March 31, 2024
Counterparty and Credit Rating						Notional Amount						Net Estimated Fair Value Before Collateral						Cash Collateral Pledged To (From) Counterparties						Net Credit Exposure
Non-member counterparties:
Asset positions with credit exposure
Uncleared derivatives - A						$	8,273					$	75					$	(75)					$	—
Uncleared derivatives - BBB						560						5						(5)						—
Cleared derivatives1						27,934						1						483						484
Liability positions with credit exposure
Uncleared derivatives - A						30,924						(854)						860						6
Total derivative positions with credit exposure to non-member counterparties						67,691						(773)						1,263						490
Total derivative positions with credit exposure to member institutions2						48						—						—						—
Subtotal - derivative positions with credit exposure						67,739						$	(773)					$	1,263					$	490
Derivative positions without credit exposure						4,213
Total derivative positions						$	71,952

1    Represents derivative transactions cleared by two Clearinghouses, each rated AA-.

2    Includes MDCs from member institutions under our MPP.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Measuring Market Risks

 

To evaluate market risk, we utilize multiple risk measurements, including Value-at-Risk, duration of equity, convexity, changes in MVE, duration gap, and earnings at risk. Periodically, we conduct stress tests to measure and analyze the effects that extreme movements in the level of interest rates and the shape of the yield curve would have on our risk position.

Key Metrics. The following table presents certain market and interest-rate metrics under different interest-rate scenarios ($ amounts in millions).

						March 31, 2024
Key Metric						Down 200						Down 100						Base						Up 100						Up 200
MVE						$	4,322					$	4,303					$	4,265					$	4,211					$	4,145
Percent change in MVE from base						1.3		%				0.9		%				—		%				(1.3)		%				(2.8)		%
MVE/book value of equity						99.7		%				99.3		%				98.4		%				97.1		%				95.6		%
Duration of equity						0.2						0.7						1.1						1.5						1.7

						December 31, 2023
Key Metric						Down 200						Down 100						Base						Up 100						Up 200
MVE						$	4,134					$	4,153					$	4,143					$	4,108					$	4,055
Percent change in MVE from base						(0.2)		%				0.3		%				—		%				(0.8)		%				(2.1)		%
MVE/book value of equity						100.5		%				101.0		%				100.7		%				99.9		%				98.6		%
Duration of equity						(0.9)						(0.1)						0.5						1.1						1.4

The changes in these key metrics from December 31, 2023 resulted primarily from the change in market value of the Bank's assets and liabilities in response to changes in the market environment, changes in portfolio composition and our hedging strategies.

Duration Gap. The base case duration gap at March 31, 2024 and December 31, 2023 was 0.04% and 0.00% , respectively.

For additional information about our use of derivative hedges, see Item 7A. Quantitative and Qualitative Disclosures About Market Risk - Use of Derivative Hedges in our 2023 Form 10-K.

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Item 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

We are responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in our reports filed under the Exchange Act is: (a) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms; and (b) accumulated and communicated to our management, including our principal executive officer, principal financial officer, and principal accounting officer, to allow timely decisions regarding required disclosures.

As of March 31, 2024, we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (the principal executive officer), Chief Financial Officer (the principal financial officer) and Chief Accounting Officer (the principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. In making this assessment, our management used the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer concluded that our disclosure controls and procedures were effective as of March 31, 2024.

 

Internal Control Over Financial Reporting

Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting, as defined in rules 13a-15(f) and 15(d)-15(f) of the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls. We do not expect that our disclosure controls and procedures and other internal controls will prevent all error and fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can only be reasonable assurance that any design will succeed in achieving its stated goals under all potential future conditions. Additionally, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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Part II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

In the ordinary course of business, we may from time to time become a party to lawsuits involving various business matters. We are unaware of any lawsuits presently pending which, individually or in the aggregate, could have a material effect on our financial condition or results of operations.

Item 1A. RISK FACTORS

There have been no material changes in the risk factors described in Item 1A. Risk Factors of our 2023 Form 10-K.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

Item 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Item 5. OTHER INFORMATION

None.

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Item 6. EXHIBITS

 

EXHIBIT INDEX

Exhibit Number						Description
31.1						Certification of the President - Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2						Certification of the Executive Vice President - Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3						Certification of the Senior Vice President - Chief Accounting Officer pursuant to Section 302 of the Sarbanes - Oxley Act of 2002
32						Certification of the President - Chief Executive Officer, Executive Vice President - Chief Financial Officer, and Senior Vice President - Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS						XBRL Instance Document
101.SCH						XBRL Taxonomy Extension Schema Document
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB						XBRL Taxonomy Extension Label Linkbase Document
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document
104						Cover Page Interactive Data File (formatted as inline XBRL)

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SIGNATURES

 

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

			FEDERAL HOME LOAN BANK OF INDIANAPOLIS
May 9, 2024			By:			/s/ K. LOWELL SHORT, JR.
			Name:			K. Lowell Short, Jr.
			Title:			Senior Vice President - Chief Accounting Officer

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ATTACHMENTS / EXHIBITS

EX-31.1

EX-31.2

EX-31.3

EX-32

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