v3.26.1
Available-for-Sale Securities (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Major Security Types The following tables provide major security types (in thousands):
June 30, 2026
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair       
Value
Housing and U.S. Obligations(a)
$2,221,048
$1,472
$(4,978)
$2,217,542
Mortgage-backed securities
Floating
CMO
267,848
652
(745)
267,755
Pass-through
2,385
75
—
2,460
Total Floating
270,233
727
(745)
270,215
Fixed
CMBS
10,729,804
20,888
(518,318)
10,232,374
Total Fixed
10,729,804
20,888
(518,318)
10,232,374
MBS AFS Before Hedging Adjustments
11,000,037
21,615
(b)
(519,063)
(b)
10,502,589
Hedging Basis Adjustments (c)
(457,461)
457,461
—
—
Total Available-for-sale securities (MBS)
10,542,576
479,076
(519,063)
10,502,589
Total Available-for-sale securities
$12,763,624
$480,548
$(524,041)
$12,720,131
December 31, 2025
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair       
Value
Housing and U.S. Obligations(a)
$2,223,460
$2,599
$(1,264)
$2,224,795
Mortgage-backed securities
Floating
CMO
291,061
509
(1,402)
290,168
Pass-through
2,552
84
—
2,636
Total Floating
293,613
593
(1,402)
292,804
Fixed
CMBS
10,224,167
55,871
(451,792)
9,828,246
Total Fixed
10,224,167
55,871
(451,792)
9,828,246
MBS AFS Before Hedging Adjustments
10,517,780
56,464
(b)
(453,194)
(b)
10,121,050
Hedging Basis Adjustments (c)
(363,915)
363,915
—
—
Total Available-for-sale securities (MBS)
10,153,865
420,379
(453,194)
10,121,050
Total Available-for-sale securities
$12,377,325
$422,978
$(454,458)
$12,345,845
(a)Amounts represent state and local housing finance agency obligations ("HFA") and U.S. Treasury Securities.
(b)Amounts represent specialized third-party pricing vendors’ estimates of gains/losses of AFS securities; market pricing is based
on historical amortized cost adjusted for pay downs and amortization of premiums and discounts; fair value unrealized gains
and losses are before adjusting book values for hedge basis adjustments and will equal market values of AFS securities recorded
in AOCI. Fair value hedges were executed to mitigate the interest rate risk of the hedged fixed-rate securities due to changes in
the designated benchmark rate.
(c)Amounts represent fair value hedging basis due to changes in the benchmark rate and were recorded as an adjustment to the
carrying values of hedged securities; the adjustments impacted the unrealized market value gains and losses. In the table above,
the benchmark hedging basis adjustments were reported separately from the market-based prices of ASC 815 qualifying hedges
to provide greater clarity to market-based pricing of the securities.
Schedule of Available-for-sale Securities with Estimated Fair Values Below their Amortized Cost Basis The following table summarizes available-for-sale securities with estimated fair values below their amortized cost basis (in
thousands):
June 30, 2026
Less than 12 months
12 months or more
Total
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
MBS Investment Securities and State and
local housing finance agency obligations
MBS-Other U.S. Obligations
$—
$—
$2,328
$(11)
$2,328
$(11)
MBS-GSE
3,628,201
(51,899)
5,053,341
(467,152)
8,681,542
(519,052)
Total MBS Temporarily Impaired
3,628,201
(51,899)
5,055,669
(467,163)
8,683,870
(519,063)
Housing and U.S. Obligations
926,340
(4,978)
—
—
926,340
(4,978)
Total Temporarily Impaired
$4,554,541
$(56,877)
$5,055,669
$(467,163)
$9,610,210
$(524,041)
December 31, 2025
Less than 12 months
12 months or more
Total
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
Estimated
Fair Value
Unrealized
Losses
MBS Investment Securities and State and
local housing finance agency obligations
MBS-Other U.S. Obligations
$—
$—
$2,481
$(19)
$2,481
$(19)
MBS-GSE
493,323
(2,353)
6,300,383
(450,822)
6,793,706
(453,175)
Total MBS Temporarily Impaired
493,323
(2,353)
6,302,864
(450,841)
6,796,187
(453,194)
Housing and U.S. Obligations
1,214,511
(1,264)
—
—
1,214,511
(1,264)
Total Temporarily Impaired
$1,707,834
$(3,617)
$6,302,864
$(450,841)
$8,010,698
$(454,458)
Schedule of Amortized Cost and Estimated Fair Value of Investments by Contractual Maturity The following tables present redemption terms of the major types of trading securities (dollars in thousands):
Redemption Terms
June 30, 2026
Due in one year or
less
Due after one year
through five years
Total Fair Value
U.S. Treasury notes
$4,077,916
$6,355,606
$10,433,522
Total trading securities
$4,077,916
$6,355,606
$10,433,522
Yield on trading securities
3.39
%
2.87
%
3.07
%
December 31, 2025
Due in one year
or less
Due after one year
through five years
Total Fair Value
U.S. Treasury notes
$2,305,878
$5,081,309
$7,387,187
Total trading securities
$2,305,878
$5,081,309
$7,387,187
Yield on trading securities
1.41
%
2.53
%
2.18
%
The amortized cost and estimated fair value (a) of investments classified as AFS, by contractual
maturity, were as follows (in thousands):
June 30, 2026
December 31, 2025
Amortized
Cost (b)
Estimated Fair
Value
Amortized
Cost (b)
Estimated Fair
Value
Housing and U.S. Obligations
Due in one year or less
$251,436
$250,864
$—
$—
Due after one year through five years
205,910
203,289
458,799
461,229
Due after five years through ten years
98,972
97,215
98,886
99,043
Due after ten years
1,664,730
1,666,174
1,665,775
1,664,523
Housing and U.S. Obligations
$2,221,048
$2,217,542
$2,223,460
$2,224,795
Mortgage-backed securities
Due in one year or less
$574,871
$571,581
$492,677
$488,360
Due after one year through five years
2,617,079
2,592,712
2,348,575
2,338,486
Due after five year through ten years
6,511,883
6,508,698
6,464,250
6,456,546
Due after ten years
838,743
829,598
848,363
837,658
Mortgage-backed securities
$10,542,576
$10,502,589
$10,153,865
$10,121,050
Total Available-for-Sale securities
$12,763,624
$12,720,131
$12,377,325
$12,345,845
(a)The carrying value of AFS securities equals fair value.
(b)Amortized cost is unpaid principal balance ("UPB") after adjusting for net unamortized discounts of $59.1 million at June 30,
2026 and net unamortized discounts of $44.7 million at December 31, 2025. Additionally, historical amortized cost in the table
above is after adjustment for hedging basis.The amortized cost and estimated fair value of held-to-maturity securities, arranged by
contractual maturity, were as follows (in thousands):
June 30, 2026
December 31, 2025
Amortized Cost
(a)
Estimated Fair
Value
Amortized Cost
(a)
Estimated Fair
Value
State and local housing finance agency obligations
Due after one year through five years
$25,100
$25,098
$100
$100
Due after five years through ten years
24,805
24,306
25,920
25,648
Due after ten years
122,810
119,280
125,660
121,037
State and local housing finance agency obligations
$172,715
$168,684
$151,680
$146,785
Mortgage-backed securities
Due in one year or less
$893,356
$887,148
$914,538
$907,705
Due after one year through five years
4,242,261
4,136,991
4,565,613
4,490,399
Due after five years through ten years
1,768,974
1,752,787
1,766,708
1,749,324
Due after ten years
4,884,788
4,880,155
3,091,704
3,090,167
Mortgage-backed securities
$11,789,379
$11,657,081
$10,338,563
$10,237,595
Total Held-to-Maturity Securities
$11,962,094
$11,825,765
$10,490,243
$10,384,380
(a)Amortized cost is UPB after adjusting for net unamortized discounts of $21.0 million at June 30, 2026 and $22.1 million at
December 31, 2025 and before adjustments for allowance for credit losses.
Schedule of Interest Rate Payment Terms For Investments The following table summarizes interest rate payment terms of investments in Mortgage-backed securities and State and local
housing finance agency obligations classified as AFS securities (in thousands):
June 30, 2026
December 31, 2025
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Mortgage-backed securities
Floating
CMO
$267,848
$267,755
$291,061
$290,168
Pass-through
2,385
2,460
2,552
2,636
Total Floating
270,233
270,215
293,613
292,804
Fixed
CMBS
10,272,343
10,232,374
9,860,252
9,828,246
Total Fixed
10,272,343
10,232,374
9,860,252
9,828,246
Total Mortgage-backed securities
10,542,576
10,502,589
10,153,865
10,121,050
Housing and U.S. Obligations
Floating
1,664,730
1,666,174
1,665,775
1,664,523
Fixed
556,318
551,368
557,685
560,272
Total Available-for-Sale securities
$12,763,624
$12,720,131
$12,377,325
$12,345,845