v3.26.1
Capital
 3 Months Ended
Mar. 31, 2026
Banking Regulation, Total Capital [Abstract]  
Capital
Note 9 — Capital
Capital Requirements. The FHLBank Act and regulations governing the operations of the FHLBanks require that the Bank’s minimum capital stock requirement for shareholders must be sufficient to enable the Bank to meet its regulatory requirements for total regulatory capital, leverage capital, and risk-based capital.
The Bank complied with these capital rules and requirements as shown in the following table.
March 31, 2026December 31, 2025
(Dollars in millions)RequiredActualRequiredActual
Risk-based capital$969 $7,224 $1,004 $7,321 
Total regulatory capital$2,827 $7,224 $2,933 $7,321 
Total regulatory capital ratio4.00 %10.22 %4.00 %9.98 %
Leverage capital$3,534 $10,836 $3,666 $10,981 
Leverage ratio5.00 %15.33 %5.00 %14.97 %
Mandatorily Redeemable Capital Stock. The changes in mandatorily redeemable capital stock were as follows:
Three Months Ended
(In millions)March 31, 2026March 31, 2025
Balance at the beginning of the period$106 $331 
Repurchase/redemption
(18)(178)
Balance at the end of the period$88 $153 
Excess Stock Repurchase, Retained Earnings, and Dividend Framework. As disclosed in the Bank’s 2025 Form 10-K, effective January 2, 2026, the Bank’s outstanding Class B stock was converted into Class B-1 membership stock and Class B-2 activity-based stock. Class B-2 activity-based stock is equal to the Activity-Based Stock Requirement (as defined in the Capital Plan), and Class B-1 membership stock is calculated by subtracting Activity-Based Stock Requirement from total capital stock held. If a member has no activity requiring Class B-2 activity-based stock, such member will hold only Class B-1 membership stock based on the Membership Stock Requirement (as defined in the Capital Plan). The board of directors (Board) also approved an update to the dividend philosophy
that establishes a guideline for dividend rates for Class B-2 stock to be greater than or equal to Class B-1 stock. The decision to declare any dividend and any dividend rates are at the discretion of the Board and the Board may choose to follow or not follow the dividend philosophy in the declaration of any dividends.
Excess stock totaled $132 million, or 0.19% of total assets as of March 31, 2026. Excess stock totaled $154 million, or 0.21% of total assets as of December 31, 2025.
Dividend Payments – During the first quarter of 2026, the Bank paid a special cash dividend totaling $75 million on the average capital stock outstanding during the fourth quarter of 2025 at an annualized rate of 11.36%, including $72 million in dividends on capital stock and $3 million in dividends on mandatorily redeemable capital stock.
On April 23, 2026, the Bank’s Board declared quarterly cash dividends on the average Class B‑1 membership stock and Class B‑2 activity‑based stock outstanding during the post-conversion period of the first quarter of 2026 at annualized rates of 4.75% and 10.00%, respectively, and also declared dividends on the average outstanding Class B stock for the pre‑conversion period of January 1, 2026, at an annualized rate of 8.75%, with total dividends for the quarter amounting to $45 million. The Bank expects to pay these dividends on May 8, 2026.
Concentration. No institution held 10% or more of the Bank’s outstanding capital stock, including mandatorily redeemable capital stock, as of March 31, 2026, or December 31, 2025