| Investments |
Note 3 - Investments Investment Securities.
Trading Securities.
Major Security Types. At June 30, 2026 and December 31, 2025, our trading securities consisted entirely of U.S. Treasury obligations with a total estimated fair value of $1,095,821 and $1,101,519, respectively.
Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | Net gains (losses) on trading securities held at period end | | $ | (2,021) | | | $ | 2,332 | | | $ | (5,697) | | | $ | 9,253 | | | Net gains (losses) on trading securities that matured/sold during the period | | — | | | — | | | — | | | — | | | Net gains (losses) on trading securities | | $ | (2,021) | | | $ | 2,332 | | | $ | (5,697) | | | $ | 9,253 | |
Available-for-Sale Securities.
Major Security Types. The following table presents our AFS securities by type of security.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | Gross | | Gross | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | | Security Type | | Cost 1 | | Gains | | Losses | | Fair Value | | U.S. Treasury obligations | | $ | 6,422,162 | | | $ | 17,369 | | | $ | — | | | $ | 6,439,531 | | | GSE and TVA debentures | | 949,552 | | | 4,842 | | | — | | | 954,394 | | | GSE multifamily MBS | | 8,174,301 | | | 78,544 | | | (3,852) | | | 8,248,993 | | | Total AFS securities | | $ | 15,546,015 | | | $ | 100,755 | | | $ | (3,852) | | | $ | 15,642,918 | | | | | | | | | | | | | December 31, 2025 | | | | | Gross | | Gross | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | | Security Type | | Cost 1 | | Gains | | Losses | | Fair Value | | U.S. Treasury obligations | | $ | 5,987,156 | | | $ | 21,148 | | | $ | — | | | $ | 6,008,304 | | | GSE and TVA debentures | | 1,466,126 | | | 8,094 | | | — | | | 1,474,220 | | | GSE multifamily MBS | | 7,798,086 | | | 45,154 | | | (6,719) | | | 7,836,521 | | | Total AFS securities | | $ | 15,251,368 | | | $ | 74,396 | | | $ | (6,719) | | | $ | 15,319,045 | |
1 At June 30, 2026 and December 31, 2025, includes net unamortized discounts of $(111,209) and $(129,980), respectively, and fair-value hedging basis adjustments of $(568,877) and $(406,176), respectively. Excludes accrued interest receivable at June 30, 2026 and December 31, 2025 of $74,179 and $69,614, respectively. Unrealized Loss Positions. The following table presents our impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Less than 12 months | | 12 months or more | | Total | | | Estimated | | Unrealized | | Estimated | | Unrealized | | Estimated | | Unrealized | | Security Type | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | GSE multifamily MBS | | $ | 266,884 | | | $ | (518) | | | $ | 591,021 | | | $ | (3,334) | | | $ | 857,905 | | | $ | (3,852) | | | Total | | $ | 266,884 | | | $ | (518) | | | $ | 591,021 | | | $ | (3,334) | | | $ | 857,905 | | | $ | (3,852) | | | | | | | | | | | | | | | | | December 31, 2025 | | | Less than 12 months | | 12 months or more | | Total | | | Estimated | | Unrealized | | Estimated | | Unrealized | | Estimated | | Unrealized | | Security Type | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | | | | | | | | | | | | | | | | | | | | | | | | | | | GSE multifamily MBS | | $ | 128,855 | | | $ | (316) | | | $ | 1,287,087 | | | $ | (6,403) | | | $ | 1,415,942 | | | $ | (6,719) | | | Total | | $ | 128,855 | | | $ | (316) | | | $ | 1,287,087 | | | $ | (6,403) | | | $ | 1,415,942 | | | $ | (6,719) | |
Contractual Maturity. The amortized cost and estimated fair value of our non-MBS AFS securities are presented below by contractual maturity. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Amortized | | Estimated | | Amortized | | Estimated | | Year of Contractual Maturity | | Cost | | Fair Value | | Cost | | Fair Value | | Non-MBS: | | | | | | | | | | Due in 1 year or less | | $ | 645,088 | | | $ | 646,347 | | | $ | 869,162 | | | $ | 871,341 | | | Due after 1 year through 5 years | | 4,472,345 | | | 4,488,924 | | | 5,199,156 | | | 5,219,250 | | | Due after 5 years through 10 years | | 2,254,281 | | | 2,258,654 | | | 1,384,964 | | | 1,391,933 | | | | | | | | | | | | Total non-MBS | | 7,371,714 | | | 7,393,925 | | | 7,453,282 | | | 7,482,524 | | | Total MBS | | 8,174,301 | | | 8,248,993 | | | 7,798,086 | | | 7,836,521 | | | Total AFS securities | | $ | 15,546,015 | | | $ | 15,642,918 | | | $ | 15,251,368 | | | $ | 15,319,045 | |
Realized Gains and Losses. The following table presents our proceeds from, and gross gains and losses on, sales of AFS securities. All of the sales were for strategic and economic reasons. Gross gains and losses exclude swap termination fees received and were determined by the specific identification method.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | Proceeds from sales | | $ | 145,430 | | | $ | — | | | $ | 391,152 | | | $ | 221,292 | | | | | | | | | | | | Gross gains on sales | | $ | 435 | | | $ | — | | | $ | 557 | | | $ | 2,704 | | | Gross (losses) on sales | | — | | | — | | | — | | | — | | | Net gains on sales of AFS securities | | $ | 435 | | | $ | — | | | $ | 557 | | | $ | 2,704 | |
Held-to-Maturity Securities.
Major Security Types. The following table presents our HTM securities by type of security.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | Gross | | Gross | | | | | | | Unrecognized | | Unrecognized | | Estimated | | | Amortized | | Holding | | Holding | | Fair | | Security Type | | Cost 1 | | Gains | | Losses | | Value | | Non-MBS: | | | | | | | | | | | | | | | | | | | State housing agency obligations | | $ | 71,959 | | | $ | 43 | | | $ | (3,247) | | | $ | 68,755 | | | MBS: | | | | | | | | | | Other U.S. obligations - guaranteed single-family | | 3,111,029 | | | 28,922 | | | (5,693) | | | 3,134,258 | | | GSE single-family | | 2,384,667 | | | 13,417 | | | (20,941) | | | 2,377,143 | | | GSE multifamily | | 425,240 | | | — | | | (2,055) | | | 423,185 | | | Total MBS | | 5,920,936 | | | 42,339 | | | (28,689) | | | 5,934,586 | | | Total HTM securities | | $ | 5,992,895 | | | $ | 42,382 | | | $ | (31,936) | | | $ | 6,003,341 | | | | | | | | | | | | | December 31, 2025 | | | | | Gross | | Gross | | | | | | | Unrecognized | | Unrecognized | | Estimated | | | Amortized | | Holding | | Holding | | Fair | | Security Type | | Cost 1 | | Gains | | Losses | | Value | | Non-MBS: | | | | | | | | | | | | | | | | | | | State housing agency obligations | | $ | 73,544 | | | $ | 551 | | | $ | (1,890) | | | $ | 72,205 | | | MBS: | | | | | | | | | | Other U.S. obligations - guaranteed single-family | | 3,159,733 | | | 14,468 | | | (11,472) | | | 3,162,729 | | | GSE single-family | | 2,323,569 | | | 3,894 | | | (20,802) | | | 2,306,661 | | | GSE multifamily | | 440,160 | | | — | | | (1,840) | | | 438,320 | | | Total MBS | | 5,923,462 | | | 18,362 | | | (34,114) | | | 5,907,710 | | | Total HTM securities | | $ | 5,997,006 | | | $ | 18,913 | | | $ | (36,004) | | | $ | 5,979,915 | |
1 Carrying value equals amortized cost, which includes net unamortized premiums at June 30, 2026 and December 31, 2025 of $5,939 and $8,480, respectively. Excludes accrued interest receivable at June 30, 2026 and December 31, 2025 of $8,207 and $8,906, respectively.
Contractual Maturity. The maturities of our investments in state housing agency obligations extend beyond 10 years. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.
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