v3.26.1
Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Allowance for Credit Losses [Abstract]  
Allowance for Credit Losses [Text Block] Allowance for Credit Losses
As of the balance sheet date, an allowance for credit losses is separately established, if necessary, for each of the Bank’s financial instruments carried at amortized cost, its available-for-sale securities and its off-balance sheet credit exposures. Expected credit losses on these financial instruments are recorded through an allowance for credit losses.
Short-Term Investments. All investments in Federal Funds sold, interest-bearing deposits and securities purchased under agreements to resell as of March 31, 2026 (all of which were overnight investments) were subsequently repaid according to their contractual terms. Accordingly, no allowance for credit losses was recorded on these assets at March 31, 2026.
Long-Term Investments. At March 31, 2026, the gross unrealized losses on the Bank’s available-for-sale securities and held-to-maturity securities were $3,422,000 and $1,812,000, respectively, all of which related to securities that are issued and guaranteed by GSEs.
As of March 31, 2026, the issuers of the Bank’s holdings of GSE debentures, GSE CMBS and GSE residential MBS ("RMBS") were rated Aa by Moody’s Investors Service (“Moody’s”) and AA+ by S&P Global Ratings (“S&P”). Through March 31, 2026, the Bank has not experienced any defaults on its GSE RMBS and it has experienced only a limited number of defaults on its GSE CMBS. In the event of a default, the guarantor is required to repurchase the security at its par value and thus the Bank's exposure is limited to the amount of any unamortized premiums and/or positive fair value hedge accounting adjustments included in the amortized cost basis of the investment. Based upon the Bank's assessment of the strength of the GSEs' guarantees of the Bank's holdings of GSE CMBS and GSE RMBS and the credit ratings assigned by Moody's and S&P, the Bank expects that the amounts to be collected on its holdings of GSE MBS will not be less than the Bank’s amortized cost bases in these investments (or, in the infrequent circumstance of a default, the amount to be collected would not be expected to be significantly less than the Bank’s amortized cost basis in the investment). The Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases. Because the current market value deficits associated with the Bank's available-for-sale securities are not attributable to credit quality, and because the amount expected to be collected on its held-to-maturity securities is not less than the amortized cost of these investments, the Bank has determined that the credit losses on its GSE MBS investments, if any, would be insignificant and, therefore, the Bank did not provide an allowance for credit losses on these investments at March 31, 2026.
Standby Bond Purchase Agreements. The Bank has entered into standby bond purchase agreements with a state housing finance agency within its district whereby the Bank agrees to serve as a standby liquidity provider. To date, the Bank has never been required to purchase a bond under its standby bond purchase agreements. The agreements contain provisions that allow the Bank to terminate the agreement if the housing finance agency's credit rating, or the rating of the bonds underlying the agreements, decline to a level below investment grade. Based on these provisions, the high credit quality of the housing finance agency and the unlikelihood that the Bank will be required to repurchase the bonds, an allowance for credit losses on standby bond purchase agreements was not considered necessary at March 31, 2026.
Financing Receivables. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for the following portfolio segments: (1) advances and other secured extensions of credit to members/borrowers, collectively referred to as “secured extensions of credit to members”; (2) government-guaranteed/insured mortgage loans held for portfolio; (3) conventional mortgage loans held for portfolio and (4) unsecured loans to members under voluntary community investment programs.
Advances and Other Secured Extensions of Credit to Members. On at least a quarterly basis, the Bank evaluates all outstanding secured extensions of credit to members/borrowers for potential credit losses. Any outstanding extensions of credit that exhibit a potential credit weakness that could jeopardize the full collection of the outstanding obligations would be classified as substandard, doubtful or loss. The Bank did not have any advances or other secured extensions of credit to members/borrowers that were classified as substandard, doubtful or loss at March 31, 2026.
The Bank considers the amount, type and performance of collateral to be the primary indicator of credit quality with respect to its secured extensions of credit to members/borrowers. At March 31, 2026, the Bank had rights to collateral on a borrower-by-borrower basis with an estimated value in excess of each borrower’s outstanding secured extensions of credit.
The Bank continues to evaluate and, as necessary, modify its credit extension and collateral policies based on market conditions. At March 31, 2026, the Bank did not have any advances that were past due or on nonaccrual status.
The Bank has never experienced a credit loss on an advance or any other secured extension of credit to a member/borrower and, based on its credit extension and collateral policies, management currently does not anticipate any credit losses on its secured extensions of credit to members/borrowers. Accordingly, the Bank has not provided any allowance for credit losses on advances, nor has it recorded any liabilities to reflect an allowance for credit losses related to its off-balance sheet credit exposures to members.
Mortgage Loans — Government-guaranteed or Government-insured. Any losses from government-guaranteed or government-insured loans are expected to be recovered from the Federal Housing Administration or the Department of Veterans Affairs. Any losses from these loans that are not recovered from those entities are absorbed by the servicers. Therefore, the Bank has not established an allowance for credit losses on government-guaranteed or government-insured mortgage loans. Government-guaranteed or government-insured loans are not placed on nonaccrual status.
Mortgage Loans — Conventional Mortgage Loans. The allowance for credit losses on conventional mortgage loans is determined by an analysis that includes consideration of various data such as past performance, current performance, projected performance, loan portfolio characteristics, collateral-related characteristics, prevailing economic conditions and reasonable and supportable forecasts of expected economic conditions. The allowance for credit losses on conventional mortgage loans also factors in the credit enhancement under the MPF program. The Bank does not record an allowance for credit losses that are expected to be recovered from the credit enhancements.
At March 31, 2026 and December 31, 2025, interest payments received on nonaccrual loans and recorded as a reduction of principal totaled $7,604,000 and $7,119,000, respectively.
In certain circumstances, the Bank enters into loan modifications that allow borrowers who are experiencing financial difficulty to defer past due principal and interest payments until the earlier of the date on which the loan is prepaid or the end of the loan term. During the three months ended March 31, 2026 and 2025, both the aggregate unpaid principal balance of loans that were modified and payment defaults on loans that had been modified within the previous 12 months were insignificant.
The Bank considers the key credit quality indicator for conventional mortgage loans to be the payment status of each loan. The table below summarizes the amortized cost (excluding accrued interest receivable) by payment status for mortgage loans at March 31, 2026 and December 31, 2025 (dollars in thousands).
 March 31, 2026
Conventional Loans Originated
 Prior to 2022		Conventional Loans Originated
 in 2022-2026		Total Conventional Loans
Government-
Guaranteed/
Insured Loans (1)
Total
Mortgage loans:     
30-59 days delinquent$39,912 $46,499 $86,411$122$86,533
60-89 days delinquent10,057 12,755 22,8125322,865
90 days or more delinquent12,091 25,088 37,1792837,207
Total past due62,060 84,342 146,402203146,605
Total current loans2,211,554 4,372,714 6,584,2683,0876,587,355
Total mortgage loans$2,273,614 $4,457,056 $6,730,670$3,290$6,733,960
December 31, 2025
Conventional Loans Originated
 Prior to 2021		Conventional Loans Originated
 in 2021-2025		Total Conventional Loans
Government-
Guaranteed/
Insured Loans (1)
Total
Mortgage loans:
30-59 days delinquent$21,469  $57,423 $78,892$189$79,081
60-89 days delinquent6,327  17,258 23,5852123,606
90 days or more delinquent9,176  23,724 32,900—32,900
Total past due36,972 98,405 135,377210 135,587
Total current loans1,324,751 5,099,998 6,424,7493,349 6,428,098
Total mortgage loans$1,361,723 $5,198,403 $6,560,126$3,559$6,563,685
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(1)All of the Bank's government-guaranteed/insured loans were originated in years prior to 2004.

The table below summarizes other delinquency statistics for mortgage loans at March 31, 2026 and December 31, 2025 (dollars in thousands).
March 31, 2026December 31, 2025
 Total Conventional LoansGovernment-
Guaranteed/
Insured Loans		TotalTotal Conventional LoansGovernment-
Guaranteed/
Insured Loans		Total
In process of foreclosure (1)
$4,124$—$4,124$2,161$—$2,161
Serious delinquency rate (2)
0.6 %— %0.6 %0.5 %— %0.5 %
Past due 90 days or more and still accruing interest (3)
$—$—$—$—$—$—
Nonaccrual loans (4)
$52,141$—$52,141$43,692$—$43,692
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(1)Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been made.
(2)Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the loan portfolio.
(3)Only government-guaranteed/insured mortgage loans continue to accrue interest after they become 90 days or more past due.
(4)The Bank did not have any specific allowance for credit losses on nonaccrual loans at March 31, 2026 or December 31, 2025.
At March 31, 2026 and December 31, 2025, the Bank’s other assets included $8,497,000 and $4,582,000 of real estate owned.
The Bank individually reviews each seriously delinquent mortgage loan for credit losses. At March 31, 2026, the estimated value of the collateral securing each of these loans, plus the estimated amount that can be recovered through credit enhancements and mortgage insurance, if any, exceeded the amortized cost basis of the loans. Therefore, no allowance for credit losses was established for any of the individually reviewed mortgage loans. The remaining conventional mortgage loans were evaluated for credit losses on a pool basis. Based upon the current and past performance of these loans, current economic conditions, reasonable and supportable forecasts of expected economic conditions and expected recoveries from credit enhancements, the Bank's best estimate of the expected credit losses in its conventional mortgage loan portfolio at March 31, 2026 was $8,673,000.
The following table presents the activity in the allowance for credit losses on conventional mortgage loans held for portfolio during the three months ended March 31, 2026 and 2025 (in thousands):
 Three Months Ended
March 31,
 20262025
Balance, beginning of period$8,554 $7,187 
Provision for credit losses119 403 
Balance, end of period$8,673 $7,590 
Unsecured Loans to Members under Voluntary Community Investment Programs. The Bank offers a volume-limited Small Business Boost (“SBB”) Program, which is designed to provide recoverable assistance to small businesses by way of unsecured loans to participating member institutions. As of March 31, 2026 and December 31, 2025, SBB loans outstanding totaled $16,017,000 and $16,022,000, respectively. SBB loans are included in other assets and are presented net of an allowance for credit losses.
The following table presents the activity in the allowance for credit losses on SBB loans during the three months ended March 31, 2026 and 2025 (in thousands):
 Three Months Ended
March 31,
 20262025
Balance, beginning of period$2,094 $1,795 
Charge-offs(7)(57)
Provision for credit losses6 64 
Balance, end of period$2,093 $1,802 
In late 2024 and the first half of 2025, the Bank originated loans under the Community Advancement through New Opportunities & Partnerships Yielding Results Fund (“CANOPY”), which was developed to provide long-term, unsecured loans to non-depository Community Development Financial Institution members for use in supporting underserved, rural and low- to moderate-income communities and populations within the Bank’s district. As of both March 31, 2026 and December 31, 2025, CANOPY loans outstanding totaled $36,554,000. CANOPY loans are included in other assets and are presented net of an allowance for credit losses.
The following table presents the activity in the allowance for credit losses on CANOPY loans during the three months ended March 31, 2026 and 2025 (in thousands):
Three Months Ended
March 31,
20262025
Balance, beginning of period$5,849 $2,312 
Provision for credit losses— 1,697 
Balance, end of period$5,849 $4,009