Investments

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 3 - Investments

Short-term Investments. We invest in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide liquidity. At March 31, 2025 and December 31, 2024, 95% 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, 2025 and December 31, 2024, based on our evaluations, no allowance for credit losses on any of our short-term investments was deemed necessary.

Investment Securities.

Trading Securities.

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


Security Type	March 31, 2025		December 31, 2024

U.S. Treasury obligations	$	1,094,852	$	1,087,930









Total trading securities at estimated fair value	$	1,094,852	$	1,087,930

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,
		2025		2024
Net gains (losses) on trading securities held at period end		$	6,921	$	(5,040)
Net gains on trading securities that matured/sold during the period		—		469
Net gains (losses) on trading securities		$	6,921	$	(4,571)

Available-for-Sale Securities.

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


	March 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Security Type	Cost (1)		Gains		Losses		Fair Value
U.S. Treasury obligations	$	5,798,288	$	9,613	$	(230)	$	5,807,671
GSE and TVA debentures	1,498,937		11,972		(27)		1,510,882
GSE multifamily MBS	7,199,864		18,091		(27,434)		7,190,521
Total AFS securities	$	14,497,089	$	39,676	$	(27,691)	$	14,509,074

	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
Security Type	Cost (1)		Gains		Losses		Fair Value
U.S. Treasury obligations	$	5,691,550	$	5,827	$	(2,172)	$	5,695,205
GSE and TVA debentures	1,568,805		13,976		(135)		1,582,646
GSE multifamily MBS	7,077,866		21,841		(27,669)		7,072,038
Total AFS securities	$	14,338,221	$	41,644	$	(29,976)	$	14,349,889

1 At March 31, 2025 and December 31, 2024, includes net unamortized discounts of $(213,614) and $(222,607), respectively, and fair-value hedging basis adjustments of $(643,741) and $(910,114), respectively. Excludes accrued interest receivable at March 31, 2025 and December 31, 2024 of $65,760 and $58,333, respectively.

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, 2025
	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	$	740,742	$	(230)	$	—	$	—	$	740,742	$	(230)
GSE and TVA debentures	28,242		(27)		—		—		28,242		(27)
GSE multifamily MBS	1,745,922		(8,085)		2,044,599		(19,349)		3,790,521		(27,434)
Total impaired AFS securities	$	2,514,906	$	(8,342)	$	2,044,599	$	(19,349)	$	4,559,505	$	(27,691)

	December 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
U.S. Treasury obligations	$	2,227,597	$	(2,172)	$	—	$	—	$	2,227,597	$	(2,172)
GSE and TVA debentures	60,961		(135)		—		—		60,961		(135)
GSE multifamily MBS	762,267		(4,621)		2,569,237		(23,048)		3,331,504		(27,669)
Total impaired AFS securities	$	3,050,825	$	(6,928)	$	2,569,237	$	(23,048)	$	5,620,062	$	(29,976)

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, 2025				December 31, 2024
	Amortized		Estimated		Amortized		Estimated
Year of Contractual Maturity	Cost		Fair Value		Cost		Fair Value
Non-MBS:
Due in 1 year or less	$	258,468	$	259,724	$	143,724	$	144,049
Due after 1 year through 5 years	6,684,231		6,702,704		6,733,016		6,749,255
Due after 5 years through 10 years	354,526		356,125		383,615		384,547

Total non-MBS	7,297,225		7,318,553		7,260,355		7,277,851
Total MBS	7,199,864		7,190,521		7,077,866		7,072,038
Total AFS securities	$	14,497,089	$	14,509,074	$	14,338,221	$	14,349,889

Realized Gains and Losses. The following table presents our proceeds from, and gross gains and losses on, sales of AFS securities. All of the sales were for strategic and economic reasons. Gross gains and losses exclude swap termination fees received and were determined by the specific identification method.


	Three Months Ended March 31,
		2025		2024
Proceeds from sales		$	221,292	$	—

Gross gains on sales		$	2,704	$	—
Gross (losses) on sales		—		—
Net gains on sales of AFS securities		$	2,704	$	—

Allowance for Credit Losses. At March 31, 2025 and December 31, 2024, 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.

Held-to-Maturity Securities.

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


	March 31, 2025
			Gross		Gross
			Unrecognized		Unrecognized		Estimated
	Amortized		Holding		Holding		Fair
Security Type	Cost (1)		Gains		Losses		Value
Non-MBS:

State housing agency obligations	$	59,620	$	416	$	(759)	$	59,277
MBS:
Other U.S. obligations - guaranteed single-family	3,498,594		7,696		(18,932)		3,487,358
GSE single-family	2,005,128		8,764		(26,954)		1,986,938
GSE multifamily	540,240		—		(3,468)		536,772
Total MBS	6,043,962		16,460		(49,354)		6,011,068
Total HTM securities	$	6,103,582	$	16,876	$	(50,113)	$	6,070,345

	December 31, 2024
			Gross		Gross
			Unrecognized		Unrecognized		Estimated
	Amortized		Holding		Holding		Fair
Security Type	Cost (1)		Gains		Losses		Value
Non-MBS:

State housing agency obligations	$	47,735	$	—	$	(2,107)	$	45,628
MBS:
Other U.S. obligations - guaranteed single-family	3,598,725		9,868		(19,107)		3,589,486
GSE single-family	1,652,532		3,493		(31,998)		1,624,027
GSE multifamily	540,385		—		(2,734)		537,651
Total MBS	5,791,642		13,361		(53,839)		5,751,164
Total HTM securities	$	5,839,377	$	13,361	$	(55,946)	$	5,796,792

1 Carrying value equals amortized cost, which includes net unamortized premium at March 31, 2025 and December 31, 2024 of $13,959 and $15,905, respectively. Excludes accrued interest receivable at March 31, 2025 and December 31, 2024 of $10,757 and $10,508, respectively.

Contractual Maturity. Our investments in state housing agency obligations mature in 2055. 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.

Allowance for Credit Losses. At March 31, 2025 and December 31, 2024, based on our evaluation of expected credit losses, no allowance for credit losses on any of our HTM securities was deemed necessary.