Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of June 30, 2025, approximately 23 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. Federal Housing Finance Agency (FHFA) regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of June 30, 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 contractual terms. No allowance for credit losses was recorded for these assets as of June 30, 2025 and December 31, 2024. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $3,039,000 and $471,000, respectively, as of June 30, 2025, and $2,938,000 and $431,000, respectively, as of December 31, 2024.

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions requiring the counterparty pledge additional securities as collateral or remit an equivalent amount of cash sufficient to comply with the required collateral value). Based upon the collateral held as security and collateral maintenance provisions with its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of June 30, 2025 and December 31, 2024. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $538,000 and $638,000 as of June 30, 2025 and December 31, 2024, respectively.

Debt Securities: FHLBank invests in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. FHLBank is prohibited by FHFA regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities, but FHLBank is not required to divest instruments that experience credit deterioration after their purchase.

▪GSE debentures - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government;

▪U.S. obligation mortgage-backed securities (MBS) - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and


	Fair Value
	06/30/2025		12/31/2024
Non-mortgage-backed securities:



GSE debentures	$	—	$	17,884
Non-mortgage-backed securities	—		17,884
Mortgage-backed securities:

GSE MBS	153,520		422,079
Mortgage-backed securities	153,520		422,079
TOTAL	$	153,520	$	439,963



	Three Months Ended				Six Months Ended
	06/30/2025		06/30/2024		06/30/2025		06/30/2024
Net gains (losses) on trading securities held as of June 30, 2025	$	621	$	311	$	1,802	$	(113)
Net gains (losses) on trading securities sold or matured prior to June 30, 2025	1,207		3,627		2,565		5,842
NET GAINS (LOSSES) ON TRADING SECURITIES	$	1,828	$	3,938	$	4,367	$	5,729

Available-for-sale Securities: Available-for-sale securities by major security type as of June 30, 2025 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $39,178,000 as of June 30, 2025.


	06/30/2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	3,396,987	$	—	$	(95,075)	$	3,301,912
State or local housing agency obligations	48,210		41		(13)		48,238
Non-mortgage-backed securities	3,445,197		41		(95,088)		3,350,150
Mortgage-backed securities:
U.S. obligation MBS	68,509		—		(1,022)		67,487
GSE MBS	10,786,119		25,812		(110,991)		10,700,940
Mortgage-backed securities	10,854,628		25,812		(112,013)		10,768,427
TOTAL	$	14,299,825	$	25,853	$	(207,101)	$	14,118,577

Available-for-sale securities by major security type as of December 31, 2024 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $35,778,000 as of December 31, 2024.


	12/31/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	3,313,012	$	6	$	(75,795)	$	3,237,223
State or local housing agency obligations	24,465		—		(286)		24,179
Non-mortgage-backed securities	3,337,477		6		(76,081)		3,261,402
Mortgage-backed securities:
U.S. obligation MBS	78,046		—		(783)		77,263
GSE MBS	9,782,201		31,461		(94,708)		9,718,954
Mortgage-backed securities	9,860,247		31,461		(95,491)		9,796,217
TOTAL	$	13,197,724	$	31,467	$	(171,572)	$	13,057,619

Table 3.5 summarizes the available-for-sale securities with gross unrealized losses as of June 30, 2025 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.


	06/30/2025
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	715,040	$	(474)	$	2,586,872	$	(94,601)	$	3,301,912	$	(95,075)
State or local housing agency obligations	24,337		(13)		—		—		24,337		(13)
Non-mortgage-backed securities	739,377		(487)		2,586,872		(94,601)		3,326,249		(95,088)
Mortgage-backed securities:
U.S. obligation MBS	—		—		67,487		(1,022)		67,487		(1,022)
GSE MBS	3,706,493		(27,465)		4,061,481		(83,526)		7,767,974		(110,991)
Mortgage-backed securities	3,706,493		(27,465)		4,128,968		(84,548)		7,835,461		(112,013)
TOTAL	$	4,445,870	$	(27,952)	$	6,715,840	$	(179,149)	$	11,161,710	$	(207,101)

Table 3.6 summarizes the available-for-sale securities with gross unrealized losses as of December 31, 2024 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.


	12/31/2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	244,268	$	(1,144)	$	2,754,861	$	(74,652)	$	2,999,129	$	(75,796)
State or local housing agency obligations	24,179		(286)		—		—		24,179		(286)
Non-mortgage-backed securities	268,447		(1,430)		2,754,861		(74,652)		3,023,308		(76,082)
Mortgage-backed securities:
U.S. obligation MBS	—		—		77,263		(783)		77,263		(783)
GSE MBS	2,880,112		(14,624)		3,638,445		(80,083)		6,518,557		(94,707)
Mortgage-backed securities	2,880,112		(14,624)		3,715,708		(80,866)		6,595,820		(95,490)
TOTAL	$	3,148,559	$	(16,054)	$	6,470,569	$	(155,518)	$	9,619,128	$	(171,572)

The amortized cost and fair values of available-for-sale securities by contractual maturity as of June 30, 2025 and December 31, 2024 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.


	06/30/2025				12/31/2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	1,219,860	$	1,177,703	$	457,610	$	440,483
Due after one year through five years	2,177,127		2,124,209		2,855,402		2,796,740
Due after five years through ten years	—		—		—		—
Due after ten years	48,210		48,238		24,465		24,179
Non-mortgage-backed securities	3,445,197		3,350,150		3,337,477		3,261,402
Mortgage-backed securities	10,854,628		10,768,427		9,860,247		9,796,217
TOTAL	$	14,299,825	$	14,118,577	$	13,197,724	$	13,057,619

Held-to-maturity Securities: Held-to-maturity securities by major security type as of June 30, 2025 are summarized in Table 3.8 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $414,000 as of June 30, 2025.


	06/30/2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	29,755	$	—	$	(377)	$	29,378
Non-mortgage-backed securities	29,755		—		(377)		29,378
Mortgage-backed securities:

GSE MBS	174,140		252		(1,646)		172,746
Mortgage-backed securities	174,140		252		(1,646)		172,746
TOTAL	$	203,895	$	252	$	(2,023)	$	202,124

Held-to-maturity securities by major security type as of December 31, 2024 are summarized in Table 3.9 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $476,000 as of December 31, 2024.


	12/31/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	30,895	$	—	$	(445)	$	30,450
Non-mortgage-backed securities	30,895		—		(445)		30,450
Mortgage-backed securities:

GSE MBS	188,931		359		(2,264)		187,026
Mortgage-backed securities	188,931		359		(2,264)		187,026
TOTAL	$	219,826	$	359	$	(2,709)	$	217,476

The amortized cost and fair values of held-to-maturity securities by contractual maturity as of June 30, 2025 and December 31, 2024 are shown in Table 3.10 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.


	06/30/2025				12/31/2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	—		—		—		—
Due after five years through ten years	29,755		29,378		30,895		30,450
Due after ten years	—		—		—		—
Non-mortgage-backed securities	29,755		29,378		30,895		30,450
Mortgage-backed securities	174,140		172,746		188,931		187,026
TOTAL	$	203,895	$	202,124	$	219,826	$	217,476

Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. During the three- and six-months ended June 30, 2025 and 2024, FHLBank did not recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments.

FHLBank considers the unrealized losses on certain available-for-sale securities in unrealized loss positions to be temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis.