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 trading, AFS, or HTM.

Available-for-Sale Securities. The amortized cost and fair value of AFS securities by major security type were as follows:


March 31, 2026
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

U.S. Treasury obligations	$	6,502	$	—	$	7	$	(1)	$	6,508
State housing agency obligations	54		—		—		(1)		53
MBS:
Government-Sponsored Enterprises (GSEs) – multifamily	12,617		—		139		(1)		12,755
Private-label residential mortgage-backed securities (PLRMBS)	875		(32)		27		(20)		850
Total mortgage-backed securities (MBS)	13,492		(32)		166		(21)		13,605
Total	$	20,048	$	(32)	$	173	$	(23)	$	20,166


December 31, 2025
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasury obligations	$	6,384	$	—	$	9	$	—	$	6,393
State housing agency obligations	42		—		—		—		42
MBS:
GSEs – multifamily	12,819		—		118		—		12,937
PLRMBS	899		(32)		31		(17)		881
Total MBS	13,718		(32)		149		(17)		13,818
Total	$	20,144	$	(32)	$	158	$	(17)	$	20,253

Amortized cost excludes accrued interest receivable of $106 million and $105 million at March 31, 2026, and December 31, 2025, respectively. At March 31, 2026, and December 31, 2025, $571 million and $501 million of AFS securities, respectively, were pledged as collateral that may be repledged.

The following tables summarize unrealized losses by length of time that individual AFS securities in each security type had been in a continuous loss position.


March 31, 2026
	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. Treasury obligations	$	1,090	$	(1)	$	124	$	—	$	1,214	$	(1)
State housing agency obligations	36		(1)		—		—		36		(1)
MBS – GSEs – multifamily	158		(1)		—		—		158		(1)
PLRMBS	240		(3)		192		(17)		432		(20)
Total	$	1,524	$	(6)	$	316	$	(17)	$	1,840	$	(23)


December 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. Treasury obligations	$	348	$	—	$	124	$	—	$	472	$	—
State housing agency obligations	14		—		—		—		14		—
MBS – GSEs – multifamily	28		—		150		—		178		—
PLRMBS	174		(1)		230		(16)		404		(17)
Total	$	564	$	(1)	$	504	$	(16)	$	1,068	$	(17)

Redemption Terms – The amortized cost and estimated fair value of U.S. Treasury obligations and state housing agency obligations by contractual maturity, and MBS are shown below. Expected maturities of MBS 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, 2026
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	1,931	$	1,932
Due after 1 year through 5 years	4,571		4,576


Total U.S. Treasury obligations	6,502		6,508
State housing agency obligations:
Due after 1 year through 5 years	2		1
Due after 5 years through 10 years	52		52
Total state housing agency obligations	54		53
MBS	13,492		13,605
Total	$	20,048	$	20,166


December 31, 2025
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	1,776	$	1,777
Due after 1 year through 5 years	4,608		4,616


Total U.S. Treasury obligations	6,384		6,393
State housing agency obligations:
Due after 1 year through 5 years	2		2
Due after 5 years through 10 years	40		40
Total state housing agency obligations	42		42
MBS	13,718		13,818
Total	$	20,144	$	20,253

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, 2026
(In millions)	Amortized Cost		Gross Unrecognized Holding Gains (1)		Gross Unrecognized Holding Losses (1)		Estimated Fair Value
MBS – Other U.S. obligations – single-family	$	16	$	—	$	—	$	16
MBS – GSEs:
Single-family	382		1		(8)		375
Multifamily	206		—		—		206
Subtotal MBS – GSEs	588		1		(8)		581
PLRMBS	77		—		(4)		73
Total	$	681	$	1	$	(12)	$	670


December 31, 2025
(In millions)	Amortized Cost		Gross Unrecognized Holding Gains (1)		Gross Unrecognized Holding Losses (1)		Estimated Fair Value
MBS – Other U.S. obligations – single-family	$	18	$	—	$	—	$	18
MBS – GSEs:
Single-family	401		2		(8)		395
Multifamily	404		—		(1)		403
Subtotal MBS – GSEs	805		2		(9)		798
PLRMBS	80		—		(4)		76
Total	$	903	$	2	$	(13)	$	892

(1) Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value.

Amortized cost excludes accrued interest receivable of $2 million and $3 million at March 31, 2026, and December 31, 2025, respectively.

Private-Label Residential Mortgage-Backed Securities – There have been no significant changes in the composition, credit quality, or valuation methodology of the Bank’s PLRMBS portfolio since December 31, 2025.

As a result of credit impairments recognized prior to the adoption of the current expected credit loss methodology, certain PLRMBS continue to accrete previously recognized credit losses into interest income. The remaining balance of these credit losses totaled $275 million and $278 million at March 31, 2026, and December 31, 2025, respectively. Accretion related to these amounts increased interest income by $3 million for the three months ended March 31, 2026 and 2025.

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, 2025. As a result, no allowance for credit losses was recorded on these AFS or HTM securities at March 31, 2026, and December 31, 2025.