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

Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold.

At March 31, 2025, and December 31, 2024, all investments in interest-bearing deposits and federal funds sold were repaid or expected to be repaid according to the relevant contractual terms. No allowance for credit losses was recorded for these assets at March 31, 2025, and December 31, 2024. Carrying values of interest-bearing deposits and federal funds sold exclude accrued interest receivable of $14 million and $1 million, respectively, as of March 31, 2025, and $15 million and a de minimis amount, respectively, as of December 31, 2024.

Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at March 31, 2025, and December 31, 2024. The carrying value of securities purchased under agreements to resell excludes $1 million of accrued interest receivable as of March 31, 2025, and December 31, 2024.

Available-for-Sale Securities. The amortized cost and fair value of AFS securities by major security type as of March 31, 2025, and December 31, 2024, were as follows:


March 31, 2025
(In millions)	Amortized Cost(1)		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

U.S. Treasury obligations	$	6,451	$	—	$	3	$	(1)	$	6,453


State housing agency obligations	11		—		—		—		11
MBS:
Government-Sponsored Enterprises (GSEs) – multifamily	12,913		—		77		(3)		12,987



Private-label residential mortgage-backed securities (PLRMBS)	961		(30)		31		(20)		942



Total mortgage-backed securities (MBS)	13,874		(30)		108		(23)		13,929
Total	$	20,336	$	(30)	$	111	$	(24)	$	20,393


December 31, 2024
(In millions)	Amortized Cost(1)		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasury obligations	$	6,506	$	—	$	4	$	—	$	6,510
MBS:
GSEs – multifamily	12,790		—		62		(7)		12,845
PLRMBS	978		(30)		31		(22)		957
Total MBS	13,768		(30)		93		(29)		13,802
Total	$	20,274	$	(30)	$	97	$	(29)	$	20,312

(1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable of $93 million and $92 million at March 31, 2025, and December 31, 2024, respectively.

At March 31, 2025, and December 31, 2024, $537 million and $504 million of AFS securities, respectively, were pledged as collateral that may be repledged. At March 31, 2025, the amortized cost of the Bank’s MBS classified as AFS included premiums of $48 million, discounts of $168 million, and previous credit losses related to the prior methodology of evaluating credit losses of $289 million for PLRMBS. At December 31, 2024, the amortized cost of the Bank’s MBS classified as AFS included premiums of $51 million, discounts of $175 million, and previous credit losses related to the prior methodology of evaluating credit losses of $293 million for PLRMBS.

The following tables summarize the AFS securities with unrealized losses as of March 31, 2025, and December 31, 2024. The unrealized losses are aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position.


March 31, 2025
	Less Than 12 Months				12 Months or More				Total
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. obligations – Treasury notes	$	2,066	$	1	$	—	$	—	$	2,066	$	1




MBS – GSEs – multifamily	720		2		433		1		1,153		3



PLRMBS	47		1		250		19		297		20

Total	$	2,833	$	4	$	683	$	20	$	3,516	$	24


December 31, 2024
	Less Than 12 Months				12 Months or More				Total
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

MBS – GSEs – multifamily	$	1,350	$	3	$	668	$	4	$	2,018	$	7
PLRMBS	62		3		244		19		306		22



Total	$	1,412	$	6	$	912	$	23	$	2,324	$	29

Redemption Terms – The amortized cost and estimated fair value of U.S. Treasury securities and state housing agency obligations classified as AFS by contractual maturity (based on contractual final principal payment) and of MBS classified as AFS as of March 31, 2025, and December 31, 2024, are shown below. Expected maturities of MBS classified as AFS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees.


March 31, 2025
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	2,891	$	2,892
Due after 1 year through 5 years	3,560		3,561


Total U.S. Treasury obligations	6,451		6,453
State housing agency obligations: due after 5 through 10 years	11		11


MBS	13,874		13,929
Total	$	20,336	$	20,393


December 31, 2024
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	3,181	$	3,183
Due after 1 year through 5 years	3,325		3,327


Total U.S. Treasury obligations	6,506		6,510
MBS	13,768		13,802
Total	$	20,274	$	20,312

Held-to-Maturity Securities. The Bank classifies the following securities as HTM because the Bank has the positive intent and ability to hold these securities to maturity:


March 31, 2025
(In millions)	Amortized Cost(1)		Gross Unrecognized Holding Gains(2)		Gross Unrecognized Holding Losses(2)		Estimated Fair Value





MBS – Other U.S. obligations – single-family	$	25	$	—	$	(1)	$	24
MBS – GSEs:


MBS – GSEs – single-family	470		2		(11)		461



MBS – GSEs – multifamily	863		—		(3)		860
Subtotal MBS – GSEs	1,333		2		(14)		1,321



PLRMBS	96		—		(5)		91

Total	$	1,454	$	2	$	(20)	$	1,436


December 31, 2024
(In millions)	Amortized Cost(1)		Gross Unrecognized Holding Gains(2)		Gross Unrecognized Holding Losses(2)		Estimated Fair Value





MBS – Other U.S. obligations – single-family	$	29	$	—	$	(1)	$	28
MBS – GSEs:


MBS – GSEs – single-family	495		2		(13)		484



MBS – GSEs – multifamily	864		—		(2)		862
Subtotal MBS – GSEs	1,359		2		(15)		1,346



PLRMBS	101		—		(6)		95

Total	$	1,489	$	2	$	(22)	$	1,469

(1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $5 million at March 31, 2025, and December 31, 2024.

At March 31, 2025, the amortized cost of the Bank’s MBS classified as HTM included premiums of $2 million and discounts of $2 million. At December 31, 2024, the amortized cost of the Bank’s MBS classified as HTM included premiums of $2 million and discounts of $2 million.

Allowance for Credit Losses on AFS and HTM Securities. The following table presents a rollforward of the allowance for credit losses on PLRMBS classified as AFS for the three months ended March 31, 2025 and 2024. The Bank recorded no allowance for credit losses associated with HTM securities during the three months ended March 31, 2025 and 2024.


	Three Months Ended
(In millions)		March 31, 2025		March 31, 2024
Balance, beginning of the period		$	30	$	31
(Charge-offs)/recoveries		(1)		(1)
Provision for/(reversal of) credit losses		1		(4)
Balance, end of the period		$	30	$	26

To evaluate investment securities for expected credit loss at March 31, 2025, and December 31, 2024, the Bank employed the following methodologies, based on the type of security.

AFS and HTM Securities (Excluding PLRMBS) – There have been no significant changes in the credit quality, ratings distribution, or unrealized loss position of the Bank’s AFS and HTM securities (excluding PLRMBS investments) since December 31, 2024. As a result, no allowance for credit losses was recorded on these AFS or HTM securities at March 31, 2025, and December 31, 2024. For more information on the Bank’s AFS and HTM securities, see “Item 8. Financial Statements and Supplementary Data – Note 4 – Investments” in the Bank’s 2024 Form 10-K.

Private-Label Residential Mortgage-Backed Securities – There have been no significant changes in the composition, credit quality, or valuation methodology for the Bank’s PLRMBS portfolio since December 31, 2024. The Bank continues to assess expected credit losses on these securities using cash flow analyses incorporating assumptions such as prepayment rates, default rates, and loss severities. There were no transfers of PLRMBS from the Bank’s HTM portfolio to its AFS portfolio during the three months ended March 31, 2025 or 2024.