fhlbdm-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

Commission File Number: 000-51999

FEDERAL HOME LOAN BANK OF DES MOINES

(Exact name of registrant as specified in its charter)

Federally chartered corporation of the United States

42-6000149

(State or other jurisdiction of incorporation or organization)

(I.R.S. employer identification number)

909 Locust Street

Des Moines, IA

(Address of principal executive offices)

50309

(Zip code)

Registrant’s telephone number, including area code: (515) 412-2100

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


						Shares outstanding as of July 31, 2026
Class B Stock, par value $100						78,539,315


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Part I - Financial Information

Item 1.	Financial Statements (Unaudited)	3

	Statements of Condition	3

	Statements of Income	4

	Statements of Comprehensive Income	5

	Statements of Capital	6

	Statements of Cash Flows	7

	Condensed Notes to the Unaudited Financial Statements	9

	Background Information	9

	Note 1 - Basis of Presentation	9

	Note 2 - Recently Adopted and Issued Accounting Guidance	9

	Note 3 - Investments	10

	Note 4 - Advances	14

	Note 5 - Mortgage Loans Held for Portfolio	15

	Note 6 - Derivatives and Hedging Activities	16

	Note 7 - Deposits	19

	Note 8 - Consolidated Obligations	19

	Note 9 - Capital	21

	Note 10 - Fair Value	21

	Note 11 - Commitments and Contingencies	26

	Note 12 - Activities with Stockholders	27

	Note 13 - Activities with Other FHLBanks	28



Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52

Item 4.	Controls and Procedures	53

Part II - Other Information

Item 1.	Legal Proceedings	53

Item 1A.	Risk Factors	53

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	53

Item 5.	Other Information	53

Item 6.	Exhibits	54

Glossary of Terms		55

Signatures		56

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF CONDITION

(dollars in millions, except capital stock par value)

(Unaudited)




	June 30, 2026		December 31, 2025
ASSETS
Cash and due from banks	$	58	$	44
Interest-bearing deposits	5,213		3,726
Securities purchased under agreements to resell	19,300		17,090
Federal funds sold	12,050		5,930
Investment securities (Note 3)
Trading securities (includes $1,515 and $1,390 pledged as collateral that may be repledged)	6,067		6,303
Available-for-sale securities (amortized cost of $28,478 and $27,336)	28,775		27,519
Held-to-maturity securities (fair value of $415 and $452)	413		447
Total investment securities	35,255		34,269
Advances (Note 4)	124,489		110,230
Mortgage loans held for portfolio, net of allowance for credit losses of $6 and $6 (Note 5)	15,518		14,540

Accrued interest receivable	508		461
Derivative assets, net (Note 6)	88		80
Other assets, net	140		129
TOTAL ASSETS	$	212,619	$	186,499
LIABILITIES
Deposits (Note 7)
Interest-bearing	$	1,162	$	970
Non-interest-bearing	177		177
Total deposits	1,339		1,147
Consolidated obligations (Note 8)
Discount notes (includes $4,755 and $17,382 at fair value held under fair value option)	97,342		84,620
Bonds	100,762		89,249
Total consolidated obligations	198,104		173,869

Mandatorily redeemable capital stock	59		30
Accrued interest payable	677		589
Affordable Housing Program payable	307		301
Derivative liabilities, net (Note 6)	7		3
Other liabilities	635		73
TOTAL LIABILITIES	201,128		176,012
Commitments and contingencies (Note 11)
CAPITAL (Note 9)
Capital stock - Class B putable ($100 par value); 72,227,559 and 65,090,978 issued and outstanding shares	7,223		6,509
Retained earnings
Unrestricted	2,621		2,543
Restricted	1,352		1,254
Total retained earnings	3,973		3,797
Accumulated other comprehensive income (loss)	295		181
TOTAL CAPITAL	11,491		10,487
TOTAL LIABILITIES AND CAPITAL	$	212,619	$	186,499


The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF INCOME

(dollars in millions)

(Unaudited)


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
INTEREST INCOME
Advances	$	1,405	$	1,284	$	2,696	$	2,470
Prepayment fees on advances, net	1		2		3		3
Interest-bearing deposits	46		48		87		101
Securities purchased under agreements to resell	148		118		314		229
Federal funds sold	67		137		145		277
Trading securities	60		55		119		93
Available-for-sale securities	310		345		632		684
Held-to-maturity securities	4		8		9		17
Mortgage loans held for portfolio	179		144		352		278

Total interest income	2,220		2,141		4,357		4,152
INTEREST EXPENSE
Consolidated obligations - Discount notes	930		595		1,818		1,291
Consolidated obligations - Bonds	941		1,244		1,855		2,301
Deposits	9		12		17		22

Mandatorily redeemable capital stock	1		1		3		1
Total interest expense	1,881		1,852		3,693		3,615
NET INTEREST INCOME	339		289		664		537


OTHER INCOME (LOSS)
Net gains (losses) on trading securities	(42)		22		(91)		69
Net gains (losses) on financial instruments held under fair value option	—		7		6		27
Net gains (losses) on derivatives	44		(24)		90		(59)



Other, net	15		11		23		20
Total other income (loss)	17		16		28		57
OTHER EXPENSE
Compensation and benefits	20		20		41		42
Contractual services	7		6		14		13
Professional fees	3		4		6		7
Other operating expenses	6		6		12		11
Voluntary housing and community contributions	30		43		55		55
Federal Housing Finance Agency	4		4		7		8
Office of Finance	2		1		6		4
Other, net	5		6		10		11
Total other expense	77		90		151		151
NET INCOME BEFORE ASSESSMENTS	279		215		541		443
Affordable Housing Program assessments	28		21		54		44
NET INCOME	$	251	$	194	$	487	$	399


The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF COMPREHENSIVE INCOME

(dollars in millions)

(Unaudited)



	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Net income	$	251	$	194	$	487	$	399
Other comprehensive income (loss)
Net change in fair value of available-for-sale securities	84		(93)		114		(23)

Total other comprehensive income (loss)	84		(93)		114		(23)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	335	$	101	$	601	$	376


The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF CAPITAL

(dollars and shares in millions)

(Unaudited)


	Capital Stock Class B (putable)			Retained Earnings						Accumulated Other Comprehensive Income (Loss)		Total Capital
	Shares	Par Value		Unrestricted		Restricted		Total
BALANCE, MARCH 31, 2025	57	$	5,730	$	2,439	$	1,119	$	3,558	$	41	$	9,329
Comprehensive income (loss)	—	—		155		39		194		(93)		101
Proceeds from issuance of capital stock	34	3,369		—		—		—		—		3,369
Repurchases/redemptions of capital stock	(23)	(2,351)		—		—		—		—		(2,351)
Net stock reclassified (to) from mandatorily redeemable capital stock	(1)	(88)		—		—		—		—		(88)
Cash dividends on capital stock	—	—		(135)		—		(135)		—		(135)
BALANCE, JUNE 30, 2025	67	$	6,660	$	2,459	$	1,158	$	3,617	$	(52)	$	10,225

BALANCE, MARCH 31, 2026	73	$	7,286	$	2,585	$	1,302	$	3,887	$	211	$	11,384
Comprehensive income (loss)	—	—		201		50		251		84		335
Proceeds from issuance of capital stock	40	4,019		—		—		—		—		4,019
Repurchases/redemptions of capital stock	(41)	(4,082)		—		—		—		—		(4,082)

Cash dividends on capital stock	—	—		(165)		—		(165)		—		(165)
BALANCE, JUNE 30, 2026	72	$	7,223	$	2,621	$	1,352	$	3,973	$	295	$	11,491

BALANCE, DECEMBER 31, 2024	60	$	5,989	$	2,413	$	1,078	$	3,491	$	(29)	$	9,451
Comprehensive income (loss)	—	—		319		80		399		(23)		376
Proceeds from issuance of capital stock	54	5,395		—		—		—		—		5,395
Repurchases/redemptions of capital stock	(46)	(4,635)		—		—		—		—		(4,635)
Net stock reclassified (to) from mandatorily redeemable capital stock	(1)	(89)		—		—		—		—		(89)
Cash dividends on capital stock	—	—		(273)		—		(273)		—		(273)
BALANCE, JUNE 30, 2025	67	$	6,660	$	2,459	$	1,158	$	3,617	$	(52)	$	10,225

BALANCE, DECEMBER 31, 2025	65	$	6,509	$	2,543	$	1,254	$	3,797	$	181	$	10,487
Comprehensive income (loss)	—	—		389		98		487		114		601
Proceeds from issuance of capital stock	81	8,100		—		—		—		—		8,100
Repurchases/redemptions of capital stock	(73)	(7,333)		—		—		—		—		(7,333)
Net stock reclassified (to) from mandatorily redeemable capital stock	(1)	(53)		—		—		—		—		(53)
Cash dividends on capital stock	—	—		(311)		—		(311)		—		(311)
BALANCE, JUNE 30, 2026	72	$	7,223	$	2,621	$	1,352	$	3,973	$	295	$	11,491

The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF CASH FLOWS

(dollars in millions)

(Unaudited)



	For the Six Months Ended
	June 30,
	2026		2025
OPERATING ACTIVITIES
Net income	$	487	$	399
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization/(accretion)	101		(806)
Net (gains) losses on trading securities	91		(69)
Net (gains) losses on financial instruments held under fair value option	(6)		(27)
Net change in derivatives and hedging activities	713		(1,317)

Other adjustments, net	10		6
Net change in:
Accrued interest receivable	(178)		(193)
Other assets	(4)		(5)
Accrued interest payable	88		174
Other liabilities	3		(14)
Total adjustments	818		(2,251)
Net cash provided by (used in) operating activities	1,305		(1,852)
INVESTING ACTIVITIES
Net change in:
Interest-bearing deposits	(1,495)		1,487
Securities purchased under agreements to resell	(2,210)		(1,810)
Federal funds sold	(6,120)		(4,202)

Trading securities
Proceeds from sales	1,546		347
Proceeds from maturities and paydowns	3		3
Purchases	(1,404)		(1,896)
Available-for-sale securities
Proceeds from maturities and paydowns	732		1,260
Purchases	(1,466)		(2,815)
Held-to-maturity securities
Proceeds from maturities and paydowns	34		38
Advances
Repaid	332,247		378,772
Originated	(347,085)		(392,927)
Mortgage loans held for portfolio
Principal collected	993		580
Purchased	(1,989)		(1,890)
Other investing activities, net	(9)		(1)
Net cash provided by (used in) investing activities	(26,223)		(23,054)


The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

STATEMENTS OF CASH FLOWS (continued from previous page)

(dollars in millions)

(Unaudited)


	For the Six Months Ended
	June 30,
	2026		2025
FINANCING ACTIVITIES
Net change in deposits	201		210

Net proceeds (payments) on derivative contracts with financing elements	—		2
Net proceeds from issuance of consolidated obligations
Discount notes	623,561		784,560
Discount notes transferred from other FHLBanks	986		—
Bonds	61,584		62,731
Payments for maturing and retiring consolidated obligations
Discount notes	(611,886)		(792,444)
Bonds	(49,946)		(30,587)
Proceeds from issuance of capital stock	8,100		5,395

Payments for repurchases/redemptions of capital stock	(7,333)		(4,635)
Payments for repurchases/redemptions of mandatorily redeemable capital stock	(24)		(64)

Cash dividends paid	(311)		(273)
Net cash provided by (used in) financing activities	24,932		24,895
Net increase (decrease) in cash and due from banks	14		(11)
Cash and due from banks at beginning of the period	44		41
Cash and due from banks at end of the period	$	58	$	30

SUPPLEMENTAL DISCLOSURES
Cash Transactions:
Interest paid	$	3,572	$	4,314
Affordable Housing Program disbursements, net	54		44
Voluntary housing and community investment disbursements	43		45
Non-Cash Transactions:
Capitalized interest on reverse mortgage investment securities	131		142
Capital stock reclassified to (from) mandatorily redeemable capital stock, net	53		89

Traded but not settled investment security purchases	567		301


The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF DES MOINES

CONDENSED NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

These unaudited Notes to the Financial Statements do not include all of the disclosures required by Generally Accepted Accounting Principles for annual financial statements and should be read in conjunction with the audited financial statements for the year ended December 31, 2025, which are contained in the Bank’s 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2026. Throughout this Form 10-Q, acronyms and terms used are defined in the Glossary of Terms. Unless the context otherwise requires, the term “Bank” refers to the Federal Home Loan Bank of Des Moines or its management.

Background Information

The Bank is a federally chartered corporation that is exempt from all federal, state, and local taxation (except real property taxes and certain employer payroll taxes) and is one of 11 district FHLBanks. The FHLBanks are GSEs and were created under the authority of the FHLBank Act in order to serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank is regulated by the Finance Agency.

The Bank is a cooperative, meaning it is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain capital stock to support business activities with the Bank. In return, the Bank provides a readily available source of funding and liquidity to its member institutions and eligible housing associates in Alaska, Hawaii, Idaho, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. Commercial banks, savings institutions, credit unions, insurance companies, and CDFIs may apply for membership. State and local housing associates that meet certain statutory criteria may also borrow from the Bank; while eligible to borrow, housing associates are not members of the Bank and, as such, are not permitted to hold capital stock. All stockholders, including current and former members, may receive dividends on their capital stock investment to the extent declared by the Bank’s Board of Directors.

Note 1 — Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with GAAP for interim financial information. In the opinion of management, the unaudited interim financial information is complete and reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of results for the interim periods. The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2026.

SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Bank’s significant accounting policies during the six months ended June 30, 2026. Descriptions of all significant accounting policies are included in “Item 8. Financial Statements and Supplementary Data — Note 1 — Summary of Significant Accounting Policies” in the 2025 Form 10-K.

Note 2 — Recently Adopted and Issued Accounting Guidance

The Bank did not adopt any new accounting standards or update any conclusions related to recently issued accounting standards during the six months ended June 30, 2026. Accounting standards recently adopted and issued are included in “Item 8. Financial Statements and Supplementary Data — Note 2 — Recently Adopted and Issued Accounting Guidance” in the 2025 Form 10-K.

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Note 3 — Investments

The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. The Bank also makes other investments in debt securities, which are classified as either trading, AFS, or HTM.

Trading Securities

Trading securities by major security type were as follows (dollars in millions):




	June 30, 2026		December 31, 2025
Non-mortgage-backed securities
U.S. Treasury obligations1	$	5,874	$	6,104
Other U.S. obligations1	54		57
GSE and Tennessee Valley Authority obligations	46		48
Other2	93		94



Total fair value	$	6,067	$	6,303

1 Represents investment securities backed by the full faith and credit of the U.S. Government.

2 Consists of taxable municipal bonds.

Net Gains (Losses) on Trading Securities

The following table summarizes the components of “Net gains (losses) on trading securities” as presented on the Statements of Income (dollars in millions):


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Net unrealized gains (losses) on trading securities held at period-end	$	(41)	$	19	$	(91)	$	63
Net gains (losses) on trading securities no longer held at period-end	(1)		3		—		6
Net gains (losses) on trading securities	$	(42)	$	22	$	(91)	$	69

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AFS Securities

AFS securities by major security type were as follows (dollars in millions):


	June 30, 2026
	Amortized Cost1		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Non-mortgage-backed securities
Other U.S. obligations2	$	4	$	—	$	—	$	4
GSE and Tennessee Valley Authority obligations	276		28		—		304
State or local housing agency obligations	454		2		(2)		454
Other3	18		1		—		19
Total non-mortgage-backed securities	752		31		(2)		781
Mortgage-backed securities
U.S. obligations single-family2	6,759		48		—		6,807
GSE single-family	199		1		—		200
GSE multifamily	20,768		234		(15)		20,987
Total mortgage-backed securities	27,726		283		(15)		27,994
Total	$	28,478	$	314	$	(17)	$	28,775


	December 31, 2025
	Amortized Cost1		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Non-mortgage-backed securities
Other U.S. obligations2	$	14	$	—	$	—	$	14
GSE and Tennessee Valley Authority obligations	280		30		—		310
State or local housing agency obligations	369		2		(1)		370
Other3	18		1		—		19
Total non-mortgage-backed securities	681		33		(1)		713
Mortgage-backed securities
U.S. obligations single-family2	5,683		25		(1)		5,707
GSE single-family	217		1		(1)		217
GSE multifamily	20,755		152		(25)		20,882
Total mortgage-backed securities	26,655		178		(27)		26,806
Total	$	27,336	$	211	$	(28)	$	27,519

1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $89 million at both June 30, 2026 and December 31, 2025.

2 Represents investment securities backed by the full faith and credit of the U.S. Government.

3 Consists of taxable municipal bonds.

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Unrealized Losses

The following tables summarize AFS securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported.


	June 30, 2026
	Less than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities
Other U.S. obligations1	$	—	$	—	$	2	$	—	$	2	$	—

State or local housing agency obligations	108		(1)		147		(1)		255		(2)

Total non-mortgage-backed securities	108		(1)		149		(1)		257		(2)
Mortgage-backed securities

U.S. obligations single-family1	129		—		98		—		227		—
GSE single-family	6		—		56		—		62		—
GSE multifamily	508		(3)		1,938		(12)		2,446		(15)
Total mortgage-backed securities	643		(3)		2,092		(12)		2,735		(15)
Total	$	751	$	(4)	$	2,241	$	(13)	$	2,992	$	(17)


	December 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities
Other U.S. obligations1	$	7	$	—	$	3	$	—	$	10	$	—

State or local housing agency obligations	82		(1)		123		—		205		(1)
Total non-mortgage-backed securities	89		(1)		126		—		215		(1)
Mortgage-backed securities
U.S. obligations single-family1	181		—		488		(1)		669		(1)
GSE single-family	—		—		71		(1)		71		(1)
GSE multifamily	216		—		3,831		(25)		4,047		(25)
Total mortgage-backed securities	397		—		4,390		(27)		4,787		(27)
Total	$	486	$	(1)	$	4,516	$	(27)	$	5,002	$	(28)

1 Represents investment securities backed by the full faith and credit of the U.S. Government.

Contractual Maturity

The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):




	June 30, 2026				December 31, 2025
Year of Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities
Due in one year or less	$	2	$	2	$	11	$	11
Due after one year through five years	44		46		47		49
Due after five years through ten years	349		355		224		227
Due after ten years	357		378		399		426
Total non-mortgage-backed securities	752		781		681		713
Mortgage-backed securities	27,726		27,994		26,655		26,806
Total	$	28,478	$	28,775	$	27,336	$	27,519

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HTM Securities

HTM securities by major security type were as follows (dollars in millions):


	June 30, 2026
	Amortized Cost1		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities
GSE and Tennessee Valley Authority obligations	$	124	$	7	$	(1)	$	130
State or local housing agency obligations	17		—		—		17
Total non-mortgage-backed securities	141		7		(1)		147
Mortgage-backed securities
U.S. obligations single-family2	1		—		—		1

GSE single-family	269		—		(4)		265
Private-label	2		—		—		2
Total mortgage-backed securities	272		—		(4)		268
Total	$	413	$	7	$	(5)	$	415


	December 31, 2025
	Amortized Cost1		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities
GSE and Tennessee Valley Authority obligations	$	124	$	8	$	—	$	132
State or local housing agency obligations	21		1		—		22
Total non-mortgage-backed securities	145		9		—		154
Mortgage-backed securities
U.S. obligations single-family2	1		—		—		1

GSE single-family	299		—		(4)		295
Private-label	2		—		—		2
Total mortgage-backed securities	302		—		(4)		298
Total	$	447	$	9	$	(4)	$	452

1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $2 million at both June 30, 2026 and December 31, 2025.

2 Represents investment securities backed by the full faith and credit of the U.S. Government.

Contractual Maturity

The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):




	June 30, 2026				December 31, 2025
Year of Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities
Due in one year or less	$	—	$	—	$	3	$	3
Due after one year through five years	33		33		27		28
Due after five years through ten years	89		94		69		74
Due after ten years	19		20		46		49
Total non-mortgage-backed securities	141		147		145		154
Mortgage-backed securities	272		268		302		298
Total	$	413	$	415	$	447	$	452

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Note 4 — Advances

REDEMPTION TERM

The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions):




	June 30, 2026				December 31, 2025
Redemption Term	Amount1		Weighted Average Interest Rate		Amount1		Weighted Average Interest Rate

Due in one year or less	$	66,327	3.81		$	53,895	3.87
Due after one year through two years	15,840		3.90		14,770		3.84
Due after two years through three years	13,851		4.06		15,574		4.12
Due after three years through four years	12,221		3.87		11,013		3.93
Due after four years through five years	10,137		4.12		9,511		4.12
Thereafter	6,640		4.22		5,415		4.27
Total par value	125,016		3.90	%	110,178		3.95	%
Premiums	1				2
Discounts	(27)				(22)
Fair value hedging adjustments	(501)				72

Total	$	124,489			$	110,230

1 Excludes accrued interest receivable of $223 million and $192 million at June 30, 2026 and December 31, 2025.

The following table summarizes advances by year of redemption term or next call date for callable advances (dollars in millions):


	Redemption Term or Next Call Date
	June 30, 2026		December 31, 2025

Due in one year or less	$	77,392	$	63,698
Due after one year through two years	14,562		13,315
Due after two years through three years	11,632		13,455
Due after three years through four years	9,126		7,976
Due after four years through five years	5,705		6,361
Thereafter	6,599		5,373
Total par value	$	125,016	$	110,178

ADVANCE CONCENTRATIONS

The Bank’s advances are primarily concentrated in commercial banks and insurance companies. The following table summarizes advances outstanding to members exceeding 10 percent of total advances outstanding at June 30, 2026 (dollars in millions):


	Amount		% of Total Advances
Athene Annuity and Life Company	$	27,695	22	%
Wells Fargo Bank, N.A.	22,000		18

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ALLOWANCE FOR CREDIT LOSSES

The Bank evaluates advances for credit losses on a quarterly basis. At June 30, 2026 and December 31, 2025, none of the Bank’s advances were past due, on non-accrual status, or considered impaired. The Bank considers an advance past due if a default of contractual principal or interest exists for a period of 30 days or more. In addition, there were no modifications related to advances resulting from a borrower experiencing financial difficulties during the six months ended June 30, 2026 and 2025. The Bank has never experienced a credit loss on its advances. Based upon the Bank’s collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on its advances at June 30, 2026 and December 31, 2025. For additional information on the Bank’s allowance methodology, including eligible collateral types, see “Item 8. Financial Statements and Supplementary Data — Note 5 — Advances” in the 2025 Form 10-K.

Note 5 — Mortgage Loans Held for Portfolio

Mortgage loans held for portfolio include conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained primarily through the MPF program. The Bank’s mortgage loan program involves investment by the Bank in single-family mortgage loans held for portfolio, defined as one-to-four family residential properties, that are purchased from PFIs. Mortgage loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks.

The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions):


	June 30, 2026		December 31, 2025
Fixed rate, long-term1 single-family mortgage loans	$	14,522	$	13,549
Fixed rate, medium-term2 single-family mortgage loans	930		904
Total unpaid principal balance	15,452		14,453
Premiums	157		156
Discounts	(73)		(54)
Basis adjustments from mortgage loan purchase commitments	(12)		(9)
Total mortgage loans held for portfolio3	15,524		14,546
Allowance for credit losses	(6)		(6)
Total mortgage loans held for portfolio, net	$	15,518	$	14,540

1 Long-term is defined as an original term of greater than 15 years and up to 30 years.

2 Medium-term is defined as an original term of 15 years or less.

3 Excludes accrued interest receivable of $114 million and $107 million at June 30, 2026 and December 31, 2025.

The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions):


	June 30, 2026		December 31, 2025
Conventional mortgage loans	$	15,109	$	14,097
Government-guaranteed or -insured mortgage loans	343		356
Total unpaid principal balance	$	15,452	$	14,453

PAYMENT STATUS OF MORTGAGE LOANS

Amounts past due 30 days or more on conventional mortgage loans at June 30, 2026 and December 31, 2025 totaled $128 million and $146 million, and are based on amortized cost, which excludes accrued interest receivable. The serious delinquency rate of conventional mortgage loans as a percentage of total mortgage loans at both June 30, 2026 and December 31, 2025 was less than one percent. Seriously delinquent loans include all loans that are 90 days or more past due and in the process of foreclosure.

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Note 6 — Derivatives and Hedging Activities

The following table summarizes the Bank’s notional amount, fair value of derivative instruments, and total derivative assets and liabilities (dollars in millions):


	June 30, 2026						December 31, 2025
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments (fair value hedges)
Interest rate swaps	$	201,901	$	265	$	52	$	162,769	$	237	$	29
Derivatives not designated as hedging instruments (economic hedges)
Interest rate swaps	10,617		4		—		23,176		3		—

Interest rate caps or floors	1		—		—		—		—		—
Forward settlement agreements	130		—		—		111		—		—
Mortgage loan purchase commitments	127		—		—		106		—		—
Total derivatives not designated as hedging instruments	10,875		4		—		23,393		3		—
Total derivatives before netting and collateral adjustments	$	212,776	269		52		$	186,162	240		29
Netting adjustments and cash collateral1			(181)		(45)				(160)		(26)

Total derivative assets and derivative liabilities			$	88	$	7			$	80	$	3

1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At June 30, 2026 and December 31, 2025, cash collateral, including accrued interest, posted by the Bank was $12 million and $3 million. At June 30, 2026 and December 31, 2025, the Bank held cash collateral, including accrued interest, from clearing agents or counterparties of $148 million and $137 million.

The following tables summarize the net gains (losses) on qualifying fair value hedging relationships and the amortization of basis adjustments on discontinued fair value hedging relationships recorded in net interest income, including the net interest settlements on derivatives, as well as total income (expense) by hedged product recorded on the Statements of Income (dollars in millions):


	For the Three Months Ended June 30, 2026
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	1,406	$	310	$	(930)	$	(941)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	$	372	$	222	$	(15)	$	(33)
Hedged items3	(335)		(209)		17		49
Net gains (losses) on fair value hedging relationships	$	37	$	13	$	2	$	16


	For the Three Months Ended June 30, 2025
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	1,286	$	345	$	(595)	$	(1,244)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	$	(157)	$	(183)	$	—	$	15
Hedged items3	282		233		—		(23)
Net gains (losses) on fair value hedging relationships	$	125	$	50	$	—	$	(8)

1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships.

2 Includes changes in fair value and net interest settlements on derivatives.

3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships.

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	For the Six Months Ended June 30, 2026
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	2,699	$	632	$	(1,818)	$	(1,855)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	$	649	$	341	$	(30)	$	(100)
Hedged items3	(573)		(299)		42		126
Net gains (losses) on fair value hedging relationships	$	76	$	42	$	12	$	26


	For the Six Months Ended June 30, 2025
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	2,473	$	684	$	(1,291)	$	(2,301)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	$	(498)	$	(517)	$	—	$	64
Hedged items3	743		617		—		(77)
Net gains (losses) on fair value hedging relationships	$	245	$	100	$	—	$	(13)

2 Includes changes in fair value and net interest settlements on derivatives.

3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships.

The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions):


	June 30, 2026
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Amortized cost of hedged asset/ liability1	$	62,503	$	20,102	$	89,990	$	26,706
Fair value hedging adjustments
Changes in fair value for active hedging relationships included in amortized cost	$	(497)	$	(617)	$	(26)	$	(70)
Basis adjustments for discontinued hedging relationships included in amortized cost	(4)		(40)		—		—
Total amount of fair value hedging adjustments	$	(501)	$	(657)	$	(26)	$	(70)


	December 31, 2025
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Amortized cost of hedged asset/ liability1	$	58,516	$	19,983	$	61,439	$	20,546
Fair value hedging adjustments
Changes in fair value for active hedging relationships included in amortized cost	$	82	$	(315)	$	17	$	56
Basis adjustments for discontinued hedging relationships included in amortized cost	(10)		(42)		—		—
Total amount of fair value hedging adjustments	$	72	$	(357)	$	17	$	56

1 Represents the portion of amortized cost designated as a hedged item in an active or discontinued fair value hedging relationship. Amortized cost includes fair value hedging adjustments.

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The following table summarizes the components of “Net gains (losses) on derivatives” as presented on the Statements of Income (dollars in millions):



	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025


Derivatives not designated as hedging instruments (economic hedges)
Interest rate swaps	$	43	$	(23)	$	86	$	(76)

Forward settlement agreements	—		—		3		(2)
Mortgage loan purchase commitments	—		—		(3)		2
Net interest settlements	1		(1)		4		17


Net gains (losses) on derivatives	$	44	$	(24)	$	90	$	(59)

The following tables present the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions):


	June 30, 2026
	Derivative Instruments Meeting Netting Requirements
	Gross Amount Recognized1		Gross Amounts of Netting Adjustments and Cash Collateral		Derivative Instruments Not Meeting Netting Requirements2		Total Derivative Assets and Total Derivative Liabilities		Non-cash Collateral Not Offset - Can be Sold or Repledged		Net Amount3
Derivative Assets
Uncleared derivatives	$	177	$	(177)	$	—	$	—	$	—	$	—
Cleared derivatives	92		(4)		—		88		—		88
Total	$	269	$	(181)	$	—	$	88	$	—	$	88
Derivative Liabilities
Uncleared derivatives	$	48	$	(41)	$	—	$	7	$	—	$	7
Cleared derivatives	4		(4)		—		—		—		—
Total	$	52	$	(45)	$	—	$	7	$	—	$	7


	December 31, 2025
	Derivative Instruments Meeting Netting Requirements
	Gross Amount Recognized1		Gross Amounts of Netting Adjustments and Cash Collateral		Derivative Instruments Not Meeting Netting Requirements2		Total Derivative Assets and Total Derivative Liabilities		Non-cash Collateral Not Offset - Can be Sold or Repledged		Net Amount3
Derivative Assets
Uncleared derivatives	$	159	$	(158)	$	—	$	1	$	—	$	1
Cleared derivatives	81		(2)		—		79		—		79
Total	$	240	$	(160)	$	—	$	80	$	—	$	80
Derivative Liabilities
Uncleared derivatives	$	27	$	(24)	$	—	$	3	$	—	$	3
Cleared derivatives	2		(2)		—		—		—		—
Total	$	29	$	(26)	$	—	$	3	$	—	$	3

1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest.

2 Represents mortgage loan purchase commitments not subject to enforceable master netting requirements.

3 Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. At June 30, 2026 and December 31, 2025, the Bank had additional net credit exposure of $1.5 billion and $1.4 billion due to instances where the Bank’s non-cash collateral to a counterparty exceeded the Bank’s net derivative position.

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Note 7 — Deposits

The Bank offers demand and overnight deposits as well as short-term interest-bearing deposits to members and qualifying non-members.

The following table details the Bank’s interest-bearing and non-interest-bearing deposits (dollars in thousands):


	June 30, 2026		December 31, 2025
Interest-bearing
Demand and overnight	$	1,136	$	960
Term	26		10
Non-interest-bearing
Demand	177		177
Total	$	1,339	$	1,147

Note 8 — Consolidated Obligations

Consolidated obligations consist of bonds and discount notes. Although the Bank is primarily liable for the portion of consolidated obligations issued on its behalf, it is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all FHLBank System consolidated obligations. The Finance Agency, at its discretion, may require any FHLBank to make principal and/or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that consolidated obligation. The Finance Agency has never exercised this discretionary authority. At June 30, 2026 and December 31, 2025, the total par value of outstanding consolidated obligations of the FHLBanks was $1,330.8 billion and $1,151.8 billion.

DISCOUNT NOTES

The following table summarizes the Bank’s discount notes (dollars in millions):


	June 30, 2026				December 31, 2025
	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Par value	$	98,284	3.59	%	$	85,186	3.76	%
Discounts and concessions1	(914)				(586)
Fair value hedging adjustments	(26)				17
Fair value option adjustments	(2)				3
Total	$	97,342			$	84,620

1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes.

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BONDS

The following table summarizes the Bank’s bonds outstanding by contractual maturity (dollars in millions):




	June 30, 2026				December 31, 2025
Year of Contractual Maturity	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	57,222	3.68	%	$	38,808	3.76	%
Due after one year through two years	24,724		3.78		32,347		3.84
Due after two years through three years	3,306		4.08		3,577		4.11
Due after three years through four years	2,946		3.25		3,351		3.71
Due after four years through five years	3,337		3.87		2,399		3.44
Thereafter	9,291		4.55		8,706		4.52

Total par value	100,826		3.79	%	89,188		3.87	%
Premiums	27				28
Discounts and concessions1	(21)				(23)
Fair value hedging adjustments	(70)				56

Total	$	100,762			$	89,249

1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds.

The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions):




	June 30, 2026		December 31, 2025
Non-callable or non-putable	$	50,008	$	37,814
Callable	50,818		51,374
Total par value	$	100,826	$	89,188

The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions):




Year of Contractual Maturity or Next Call Date	June 30, 2026		December 31, 2025
Due in one year or less	$	91,757	$	79,984
Due after one year through two years	4,034		3,609
Due after two years through three years	2,581		2,901
Due after three years through four years	1,407		1,594
Due after four years through five years	631		685
Thereafter	416		415
Total par value	$	100,826	$	89,188

The following table summarizes the Bank’s bonds by interest rate payment terms (dollars in millions):


	June 30, 2026		December 31, 2025
Fixed rate	$	41,872	$	34,962
Simple variable rate	58,954		54,226


Total par value	$	100,826	$	89,188

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Note 9 — Capital

The Bank is subject to three regulatory capital requirements. In addition, the Capital Stock AB requires each FHLBank to maintain at all times a ratio of at least two percent of capital stock to total assets. The following table shows the Bank’s compliance with the Finance Agency’s regulatory capital requirements (dollars in millions):




	June 30, 2026						December 31, 2025
	Required			Actual			Required			Actual
Regulatory capital requirements
Risk-based capital	$	2,057		$	11,255		$	1,878		$	10,336
Regulatory capital1	$	8,505		$	11,255		$	7,460		$	10,336
Leverage capital	$	10,631		$	16,882		$	9,325		$	15,504
Capital-to-assets ratio	4.00		%	5.29		%	4.00		%	5.54		%
Capital stock-to-assets ratio	2.00		%	3.61		%	2.00		%	3.38		%
Leverage ratio	5.00		%	7.94		%	5.00		%	8.31		%

1 Total regulatory capital includes Class B stock (including MRCS) and retained earnings.

EXCESS STOCK

Capital stock owned by members in excess of their investment requirement is deemed excess capital stock. Under its Capital Plan, the Bank, at its discretion and upon 15 days written notice, may repurchase excess membership capital stock. The Bank, at its discretion, may also repurchase excess activity-based capital stock to the extent that (i) the excess capital stock balance exceeds an operational threshold set forth in the Capital Plan, which is currently set at zero, or (ii) a member submits a notice to redeem all or a portion of the excess activity-based capital stock. At June 30, 2026 and December 31, 2025, the Bank had no excess capital stock outstanding.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes changes in AOCI (dollars in millions):


	Total AOCI
Balance, March 31, 2025	$	41

Net change in fair value of AFS securities	(93)




Balance, June 30, 2025	$	(52)

Balance, March 31, 2026	$	211

Net change in fair value of AFS securities	84


Balance, June 30, 2026	$	295

Balance, December 31, 2024	$	(29)

Net change in fair value of AFS securities	(23)


Balance, June 30, 2025	$	(52)

Balance, December 31, 2025	$	181

Net change in fair value of AFS securities	114


Balance, June 30, 2026	$	295

Note 10 — Fair Value

Fair value amounts are determined by the Bank using available market information and reflect the Bank’s best judgment of appropriate valuation methods. The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability.

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The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments (dollars in millions).


	June 30, 2026
			Fair Value
Financial Instruments	Carrying Value		Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Assets
Cash and due from banks	$	58	$	58	$	—	$	—	$	—	$	58
Interest-bearing deposits	5,213		—		5,213		—		—		5,213
Securities purchased under agreements to resell	19,300		—		19,300		—		—		19,300
Federal funds sold	12,050		—		12,050		—		—		12,050
Trading securities	6,067		—		6,067		—		—		6,067
Available-for-sale securities	28,775		—		28,775		—		—		28,775
Held-to-maturity securities	413		—		413		2		—		415
Advances	124,489		—		124,606		—		—		124,606
Mortgage loans held for portfolio, net	15,518		—		14,864		45		—		14,909

Accrued interest receivable	508		—		508		—		—		508
Derivative assets, net	88		—		269		—		(181)		88
Other assets	54		54		—		—		—		54
Liabilities
Deposits	(1,339)		—		(1,339)		—		—		(1,339)
Consolidated obligations
Discount notes2	(97,342)		—		(97,318)		—		—		(97,318)
Bonds	(100,762)		—		(100,142)		—		—		(100,142)
Total consolidated obligations	(198,104)		—		(197,460)		—		—		(197,460)

MRCS	(59)		(59)		—		—		—		(59)
Accrued interest payable	(677)		—		(677)		—		—		(677)
Derivative liabilities, net	(7)		—		(52)		—		45		(7)

1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.

2 Includes $4.8 billion of consolidated obligation discount notes recorded under fair value option at June 30, 2026.

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The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments (dollars in millions):


	December 31, 2025
			Fair Value
Financial Instruments	Carrying Value		Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Assets
Cash and due from banks	$	44	$	44	$	—	$	—	$	—	$	44
Interest-bearing deposits	3,726		—		3,726		—		—		3,726
Securities purchased under agreements to resell	17,090		—		17,090		—		—		17,090
Federal funds sold	5,930		—		5,930		—		—		5,930
Trading securities	6,303		—		6,303		—		—		6,303
Available-for-sale securities	27,519		—		27,519		—		—		27,519
Held-to-maturity securities	447		—		450		2		—		452
Advances	110,230		—		110,441		—		—		110,441
Mortgage loans held for portfolio, net	14,540		—		13,996		38		—		14,034

Accrued interest receivable	461		—		461		—		—		461
Derivative assets, net	80		—		240		—		(160)		80
Other assets	50		50		—		—		—		50
Liabilities
Deposits	(1,147)		—		(1,147)		—		—		(1,147)

Consolidated obligations
Discount notes2	(84,620)		—		(84,617)		—		—		(84,617)
Bonds	(89,249)		—		(88,831)		—		—		(88,831)
Total consolidated obligations	(173,869)		—		(173,448)		—		—		(173,448)
MRCS	(30)		(30)		—		—		—		(30)
Accrued interest payable	(589)		—		(589)		—		—		(589)
Derivative liabilities, net	(3)		—		(29)		—		26		(3)

2 Includes $17.4 billion of consolidated obligation discount notes recorded under fair value option at December 31, 2025.

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FAIR VALUE ON A RECURRING AND NON-RECURRING BASIS

The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value on the Statements of Condition (dollars in millions):


	June 30, 2026
	Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Recurring fair value measurements
Assets
Trading securities
U.S. Treasury obligations	$	—	$	5,874	$	—	$	—	$	5,874
Other U.S. obligations	—		54		—		—		54
GSE and TVA obligations	—		46		—		—		46
Other non-MBS	—		93		—		—		93

Total trading securities	—		6,067		—		—		6,067
Available-for-sale securities
Other U.S. obligations	—		4		—		—		4
GSE and TVA obligations	—		304		—		—		304
State or local housing agency obligations	—		454		—		—		454
Other non-MBS	—		19		—		—		19
U.S. obligations single-family MBS	—		6,807		—		—		6,807
GSE single-family MBS	—		200		—		—		200
GSE multifamily MBS	—		20,987		—		—		20,987
Total available-for-sale securities	—		28,775		—		—		28,775
Derivative assets, net
Interest-rate related	—		269		—		(181)		88


Total derivative assets, net	—		269		—		(181)		88
Other assets	54		—		—		—		54
Total recurring assets at fair value	$	54	$	35,111	$	—	$	(181)	$	34,984
Liabilities
Discount notes2	$	—	$	(4,755)	$	—	$	—	$	(4,755)
Derivative liabilities, net
Interest-rate related	—		(52)		—		45		(7)


Total derivative liabilities, net	—		(52)		—		45		(7)
Total recurring liabilities at fair value	$	—	$	(4,807)	$	—	$	45	$	(4,762)

Non-recurring fair value measurements
Assets
Impaired mortgage loans held for portfolio3	$	—	$	—	$	4	$	—	$	4
Total non-recurring assets at fair value	$	—	$	—	$	4	$	—	$	4

2 Represents financial instruments recorded under the fair value option.

3 These assets are subject to fair value adjustments in certain circumstances. The fair value information presented is as of the date the fair value adjustment was recorded during the six months ended June 30, 2026.

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The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value on the Statements of Condition (dollars in millions):


	December 31, 2025
	Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Recurring fair value measurements
Assets
Trading securities
U.S. Treasury obligations	$	—	$	6,104	$	—	$	—	$	6,104
Other U.S. obligations	—		57		—		—		57
GSE and TVA obligations	—		48		—		—		48
Other non-MBS	—		94		—		—		94

Total trading securities	—		6,303		—		—		6,303
Available-for-sale securities
Other U.S. obligations	—		14		—		—		14
GSE and TVA obligations	—		310		—		—		310
State or local housing agency obligations	—		370		—		—		370
Other non-MBS	—		19		—		—		19
U.S. obligations single-family MBS	—		5,707		—		—		5,707
GSE single-family MBS	—		217		—		—		217
GSE multifamily MBS	—		20,882		—		—		20,882
Total available-for-sale securities	—		27,519		—		—		27,519
Derivative assets, net
Interest-rate related	—		240		—		(160)		80


Total derivative assets, net	—		240		—		(160)		80
Other assets	50		—		—		—		50
Total recurring assets at fair value	$	50	$	34,062	$	—	$	(160)	$	33,952
Liabilities
Discount notes2	$	—	$	(17,382)	$	—	$	—	$	(17,382)
Derivative liabilities, net
Interest-rate related	—		(29)		—		26		(3)


Total derivative liabilities, net	—		(29)		—		26		(3)
Total recurring liabilities at fair value	$	—	$	(17,411)	$	—	$	26	$	(17,385)

Non-recurring fair value measurements
Assets
Impaired mortgage loans held for portfolio3	$	—	$	—	$	6	$	—	$	6
Total non-recurring assets at fair value	$	—	$	—	$	6	$	—	$	6

2 Represents financial instruments recorded under the fair value option.

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FAIR VALUE OPTION

The fair value option provides an irrevocable option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, and unrecognized firm commitments. These fair value elections are made primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. For the three and six months ended June 30, 2026, the Bank recorded net gains on financial instruments held under fair value option (i.e., discount notes) of less than $1 million and $6 million compared to $7 million and $27 million for the same periods in 2025.

The following tables summarize the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected (dollars in millions):


	June 30, 2026
	Unpaid Principal Balance		Fair Value		Fair Value Over (Under) Unpaid Principal
Discount Notes	$	4,795	$	4,755	$	(40)


	December 31, 2025
	Unpaid Principal Balance		Fair Value		Fair Value Over (Under) Unpaid Principal
Discount Notes	$	17,504	$	17,382	$	(122)

Note 11 — Commitments and Contingencies

The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions):


	June 30, 2026						December 31, 2025
	Expire within one year		Expire after one year		Total		Total
Standby letters of credit1,2	$	20,840	$	123	$	20,963	$	18,263
Standby bond purchase agreements2	205		1,079		1,284		1,249
Commitments to purchase mortgage loans	127		—		127		106
Commitment to issue bonds3	4,505		—		4,505		1,000
Commitments to issue discount notes3	370		—		370		3,060
Commitments to fund advances2,4	65		—		65		151

1 Excludes commitments to issue standby letters of credit, when applicable. At both June 30, 2026 and December 31, 2025, the Bank had no commitments to issue standby letters of credit.

2 The Bank has deemed it unnecessary to record any liability for credit losses on these agreements at June 30, 2026 and December 31, 2025, based on its credit extension and collateral policies.

3 The Bank enters into commitments to issue consolidated obligations in the normal course of its business, that generally settle within 30 calendar days.

4 The Bank enters into commitments to fund advances up to 24 months in the future.

Joint and Several Liability. The FHLBanks have joint and several liability for all consolidated obligations issued. Accordingly, if an FHLBank were unable to repay any consolidated obligation for which it is the primary obligor, each of the other FHLBanks could be called upon by the Finance Agency to repay all or part of such obligations. No FHLBank has ever been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank. At June 30, 2026 and December 31, 2025, the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which the Bank is jointly and severally liable was $1,131.7 billion and $977.4 billion.

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Note 12 — Activities with Stockholders

TRANSACTIONS WITH DIRECTORS’ FINANCIAL INSTITUTIONS

In the normal course of business, the Bank extends credit to its members whose directors and officers serve as Bank directors (Directors’ Financial Institutions). Finance Agency regulations require that transactions with Directors’ Financial Institutions be made on the same terms and conditions as those with any other member.

The following table summarizes the Bank’s outstanding transactions with Directors’ Financial Institutions (dollars in millions):




	June 30, 2026			December 31, 2025
	Amount		% of Total	Amount		% of Total

Advances	$	430	—	$	667	1
Mortgage loans	527		3	606		4
Deposits	14		1	15		1
Capital stock	50		1	65		1

BUSINESS CONCENTRATIONS

The Bank considers itself to have business concentrations with stockholders owning 10 percent or more of total capital stock outstanding (including MRCS). At June 30, 2026 and December 31, 2025, the Bank had the following business concentrations with stockholders (dollars in millions):


	June 30, 2026
	Capital Stock					Mortgage		Interest
Stockholder	Amount		% of Total1	Advances		Loans		Income2
Athene Annuity and Life Company3	$	1,256	17	$	27,695	$	—	$	545
Wells Fargo, N.A.4	1,014		14	22,000		5		562
Superior Guaranty Insurance Company5	3		—	—		83		—
Total	$	2,273	31	$	49,695	$	88	$	1,107


	December 31, 2025
	Capital Stock					Mortgage		Interest
Stockholder	Amount		% of Total1	Advances		Loans		Income2
Athene Annuity and Life Company3	$	1,057	16	$	23,271	$	—	$	863
Wells Fargo, N.A.4	741		11	16,000		5		348
Superior Guaranty Insurance Company5	4		—	—		93		—
Total	$	1,802	27	$	39,271	$	98	$	1,211

1 Pursuant to applicable Finance Agency regulations, the Bank’s voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank’s capital stock.

2 Represents interest income earned on advances during the six months ended June 30, 2026 and the year ended December 31, 2025. Interest income on mortgage loans is excluded from these tables as this interest relates to the borrower, not to the stockholder.

3 Athene Annuity and Life Company had no standby letters of credit outstanding as of June 30, 2026 and December 31, 2025.

4 Wells Fargo, N.A. had standby letters of credit outstanding totaling $13.9 billion and $10.9 billion as of June 30, 2026 and December 31, 2025, which generated fee income of $7 million during the six months ended June 30, 2026 and $13 million during the year ended December 31, 2025.

5 Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. Superior Guaranty Insurance Company had no standby letters of credit outstanding as of June 30, 2026 and December 31, 2025.

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Note 13 — Activities with Other FHLBanks

Overnight Funds. The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. The following table summarizes loan activity to other FHLBanks during the six months ended June 30, 2026 and 2025 (dollars in millions):


Other FHLBank	Beginning Balance		Loans		Principal Repayment		Ending Balance
2026

Chicago	$	—	$	1	$	(1)	$	—

San Francisco	—		400		(400)		—
	$	—	$	401	$	(401)	$	—

2025
Boston	$	—	$	300	$	(300)	$	—
Chicago	—		5		(5)		—

San Francisco	—		500		(500)		—

	$	—	$	805	$	(805)	$	—

The following table summarizes borrowing activity from other FHLBanks during the six months ended June 30, 2026 and 2025 (dollars in millions):


Other FHLBank	Beginning Balance		Borrowing		Principal Payment		Ending Balance
2026

New York	$	—	$	1,500	$	(1,500)	$	—




2025


Cincinnati	$	—	$	250	$	(250)	$	—
New York	—		700		(700)		—
San Francisco	—		500		(500)		—
Topeka	—		250		(250)		—
	$	—	$	1,700	$	(1,700)	$	—

Consolidated Obligations. From time to time, one FHLBank may transfer consolidated obligations to another FHLBank, and upon transfer, the assuming FHLBank becomes the primary obligor. During the six months ended June 30, 2026, the Bank assumed a consolidated obligation discount note with a par value of $1.0 billion from the FHLBank of New York.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations should be read in conjunction with our financial statements and condensed notes at the beginning of this Form 10-Q and in conjunction with our MD&A and Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (SEC) on March 10, 2026. Our MD&A is designed to provide information that will help the reader develop a better understanding of our financial statements, key financial statement changes from quarter to quarter, and the primary factors driving those changes. Throughout this Form 10-Q, acronyms and terms used are defined in the Glossary of Terms. Unless the context otherwise requires, the terms “we,” “us,” and “our” refer to the Federal Home Loan Bank of Des Moines or its management. Our MD&A is organized as follows:


CONTENTS

Forward-Looking Information						30

Executive Overview						31

Conditions in the Financial Markets						32



Selected Financial Data						33

Results of Operations						34



Net Interest Income						34

Other Income (Loss)						37

Hedging Activities						38

Other Expense						40

Statements of Condition						41





Advances						41

Mortgage Loans						42

Investments						42



Consolidated Obligations						43





Capital						43

Derivatives						44

Liquidity and Capital Resources						44

Critical Accounting Estimates						47

Legislative and Regulatory Developments						47





Risk Management						48

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FORWARD-LOOKING INFORMATION

Statements contained in this report, including statements describing the objectives, projections, estimates, or future predictions in our operations, may be forward-looking statements. These statements may be identified by the use of forward-looking terminology, such as believes, projects, expects, anticipates, estimates, intends, strategy, plan, could, should, may, and will or their negatives or other variations on these terms. By their nature, forward-looking statements involve risk or uncertainty, and actual results could differ materially from those expressed or implied or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. As a result, you are cautioned not to place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following:

•political or economic events, including legislative, regulatory, monetary, judicial, or other developments that affect us, our members, our counterparties, and/or our investors in the consolidated obligations of the 11 FHLBanks;

•the ability to meet capital and other regulatory requirements;

•competitive forces, including without limitation, other sources of funding available to our borrowers that could impact the demand for our advances, other entities purchasing mortgage loans in the secondary mortgage market, and other entities borrowing funds in the capital markets;

•reliance on a relatively small number of member institutions for a large portion of our advance business;

•member consolidations and failures;

•disruptions in the credit and debt markets and the effect on future funding costs, sources, and availability;

•general economic and market conditions that could impact the business we do with our members, including, but not limited to, the timing and volatility of market activity, inflation/deflation, employment rates, geopolitical instability or conflicts, housing market activity and housing prices, the level of mortgage prepayments, the valuation of pledged collateral, and the condition of the capital markets and the impact it has on our consolidated obligations;

•ineffective use of hedging strategies or the availability of derivative instruments in the types and quantities needed for risk management purposes from acceptable counterparties;

•the volatility of reported results due to changes in the fair value of certain assets, liabilities, and derivative instruments;

•risks related to the other FHLBanks that could trigger our joint and several liability for debt issued by the other FHLBanks;

•changes in the relative attractiveness of consolidated obligations due to actual or perceived changes in the FHLBanks’ credit ratings or ratings outlook as well as the U.S. Government’s long-term credit rating or rating outlook;

•increases in delinquency or loss estimates on mortgage loans;

•the ability to develop and support internal controls, business processes, information systems, and other operating technologies that effectively manage the risks we face, including but not limited to, cyber-attacks, widespread health emergencies, and other business interruptions;

•significant business interruptions resulting from third-party failures;

•the volatility of credit quality, market prices, interest rates, and other factors that could affect the value of collateral held by us as security for borrower and counterparty obligations;

•the ability to attract and retain key personnel; and

•natural disasters.

For additional information regarding these and other risks and uncertainties that could cause our actual results to differ materially from the expectations reflected in our forward-looking statements, see “Item 1A. Risk Factors” in this quarterly report and in our 2025 Form 10-K. Forward-looking statements apply only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statement.

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EXECUTIVE OVERVIEW

Liquidity Mission

We provide liquidity to our members to support the housing, business, and economic development needs of their communities. Members pledge mortgage loans and other collateral to access our core liquidity products of advances, letters of credit, and mortgage loans held for portfolio under the MPF program. During the six months ended June 30, 2026, advance balances averaged $133.5 billion, letters of credit averaged $18.8 billion, mortgage loan balances averaged $15.0 billion, and we held an average of $29.7 billion of short-term assets as a ready source of liquidity for our members.

Affordable Housing and Community Impact

Our housing and community development programs are central to our mission. We contribute 10 percent of our net income each year to our AHP, a grant program that supports the creation, rehabilitation, or purchase of affordable housing. This program includes a competitive AHP and two down payment assistance products called Home$tart and the Native American Homeownership Initiative. During the three and six months ended June 30, 2026, we accrued statutory AHP assessments of $28 million and $54 million and voluntarily accrued $3 million and $5 million, to be awarded through this program.

In addition to our AHP, we offer our members voluntary programs to further our housing mission. During the three and six months ended June 30, 2026, we recorded a total of $30 million and $55 million in voluntary housing and community contributions, including the voluntary AHP contribution. Through our voluntary programs during the three and six months ended June 30, 2026, we:

•provided $43 million in 0% rate Housing Affordability Advances to members that originated or purchased mortgage loans from a Habitat for Humanity® affiliate or a non-depository CDFI and recorded $9 million in subsidy expense, including $1 million during the second quarter;

•funded $275 million of home mortgages with an interest rate lower than the current market rate under the Mortgage Rate Relief program, which provided $24 million in grants, including $22 million during the second quarter, to those seeking affordable homeownership; and

•recorded contributions of $17 million, including $4 million during the second quarter, to our Member Impact Fund to match member donations to local housing and community development organizations.

Financial Results

Our financial condition and results of operations are influenced by global and national economies, local economies within our district, member demand, FOMC actions, and the conditions in the financial, housing, and credit markets. These factors impact the interest rate environment and in turn, our net interest income. Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Conditions in the Financial Markets” for additional discussion on economic conditions, including interest rates, impacting our financial results.

For the three and six months ended June 30, 2026, we recorded net income of $251 million and $487 million compared to $194 million and $399 million for the same periods in 2025.

Net interest income increased $50 million and $127 million during the three and six months ended June 30, 2026, when compared to the same periods last year. The increases during the three and six months ended June 30, 2026 were primarily due to advance portfolio growth.

Other income (loss) increased $1 million and decreased $29 million during the three and six months ended June 30, 2026, when compared to the same periods last year, primarily due to the net changes in fair value on our trading securities, fair value option instruments, and economic derivatives, including the related interest settlements.

Other expense decreased $13 million during the three months ended June 30, 2026, when compared to the same period last year, primarily due to the timing of our voluntary housing and community contributions. Other expense remained relatively stable during the six months ended June 30, 2026, when compared to the same period last year.

Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations” for additional discussion on our results of operations.

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Our total assets increased to $212.6 billion at June 30, 2026, from $186.5 billion at December 31, 2025, driven primarily by an increase in advances and investments. Advances increased $14.3 billion mainly due to an increase in borrowings by insurance company and certain depository institution members. Investments increased $10.8 billion due primarily to an increase in short-term investments.

Total capital increased to $11.5 billion at June 30, 2026, from $10.5 billion at December 31, 2025, primarily due to an increase in activity-based capital stock resulting from an increase in advance balances. Our regulatory capital ratio decreased to 5.29 percent at June 30, 2026, from 5.54 percent at December 31, 2025, above the required regulatory limit at each period end. Regulatory capital includes capital stock, MRCS, and retained earnings.

Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Statements of Condition” for additional discussion on our financial condition.

CONDITIONS IN THE FINANCIAL MARKETS

Economy and Financial Markets

Throughout 2026, the FOMC has maintained the target for the federal funds rate at a range of 3.50 to 3.75 percent. During its July 2026 meeting, the FOMC stated recent indicators suggest that economic activity has been expanding at a solid pace, despite elevated uncertainty that stems, in part, to the conflict in the Middle East. Productivity growth and capital investment were strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little. In addition, inflation remains elevated, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. As a result, the FOMC is focused on delivering price stability.

The following table shows information on key market interest rates1:


	3-Month Average				6-Month Average				Period End
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025		June 30, 2026		December 31, 2025
Federal funds	3.63	%	4.33	%	3.64	%	4.33	%	3.63	%	3.64	%

SOFR	3.62		4.32		3.64		4.33		3.68		3.87
2-year U.S. Treasury	3.97		3.86		3.78		4.00		4.14		3.47
10-year U.S. Treasury	4.42		4.36		4.31		4.41		4.44		4.18
30-year residential mortgage note	6.41		6.78		6.26		6.81		6.49		6.15

1 Source: Bloomberg.

Mortgage Markets

During the first half of 2026, mortgage rates were lower, on average, when compared to the same period last year, and higher when compared to the prior year-end. Purchase activity was the primary driver of activity within the mortgage markets during the six months ended June 30, 2026. New home sales decreased relative to the prior year, while existing home sales, home prices, and prepayment activity increased.

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SELECTED FINANCIAL DATA

The following tables present selected financial data for the periods indicated (dollars in millions):



Statements of Condition	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Cash and due from banks	$	58	$	58	$	44	$	73	$	30
Investments1	71,818		59,599		61,015		64,360		61,353
Advances	124,489		127,032		110,230		109,981		114,845
Mortgage loans held for portfolio, net2	15,518		14,910		14,540		13,948		13,197

Total assets	212,619		202,213		186,499		189,291		190,022
Consolidated obligations
Discount notes	97,342		84,642		84,620		68,220		55,977
Bonds	100,762		103,417		89,249		108,134		120,793
Total consolidated obligations3	198,104		188,059		173,869		176,354		176,770
Mandatorily redeemable capital stock	59		72		30		31		34
Total liabilities	201,128		190,829		176,012		179,050		179,797
Capital stock — Class B putable	7,223		7,286		6,509		6,474		6,660
Retained earnings	3,973		3,887		3,797		3,731		3,617
Accumulated other comprehensive income (loss)	295		211		181		36		(52)
Total capital	11,491		11,384		10,487		10,241		10,225
Regulatory capital ratio4	5.29		5.56		5.54		5.41		5.43


	For the Three Months Ended
Statements of Income	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Net interest income	$	339		$	325		$	278		$	335		$	289
Provision (reversal) for credit losses on mortgage loans	—			—			1			—			—
Other income (loss)5	17			11			31			12			16
Voluntary housing and community contributions	30			25			10			13			43
All other expense6	47			49			50			46			47
AHP assessments	28			26			25			29			21
Net income	251			236			223			259			194
Selected Financial Ratios
Net interest spread7	0.40		%	0.43		%	0.36		%	0.43		%	0.38		%
Net interest margin8	0.63			0.64			0.59			0.67			0.64
Return on average equity (annualized)	8.11			8.42			8.64			9.71			7.86
Return on average capital stock (annualized)	12.82			13.18			14.04			15.07			12.27
Return on average assets (annualized)	0.46			0.46			0.47			0.51			0.42
Average equity to average assets	5.67			5.43			5.46			5.27			5.37

1 Investments include interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, trading securities, AFS securities, and HTM securities.

2 Includes an allowance for credit losses of $6 million, $6 million, $6 million, $5 million, and $5 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025.

3 The total par value of outstanding consolidated obligations of the 11 FHLBanks was $1,330.8 billion, $1,204.4 billion, $1,151.8 billion, $1,184.1 billion, and $1,232.1 billion at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025.

4 Represents period-end regulatory capital expressed as a percentage of period-end total assets. Regulatory capital includes Class B capital stock (including MRCS) and retained earnings.

5 Other income (loss) includes, among other things, net gains (losses) on investment securities, net gains (losses) on derivatives, net gains (losses) on financial instruments held under fair value option, and standby letter of credit fees.

6 All other expense includes, among other things, compensation and benefits, professional fees, and contractual services.

7 Represents annualized yield on total interest-earning assets minus annualized cost of total interest-bearing liabilities.

8 Represents net interest income expressed as a percentage of average interest-earning assets.

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RESULTS OF OPERATIONS

Net Interest Income

Our net interest income is impacted by changes in average interest-earning asset and interest-bearing liability balances, and the related yields and costs. The following table presents average balances and annualized yields/costs of major asset and liability categories (dollars in millions):


	For the Three Months Ended June 30,
	2026						2025
	Average Balance1		Yield/Cost		Interest Income/ Expense2		Average Balance1		Yield/Cost		Interest Income/ Expense2
Interest-earning assets
Interest-bearing deposits	$	5,025	3.72	%	$	46	$	4,337	4.43	%	$	48
Securities purchased under agreements to resell	16,009		3.70		148		10,728		4.42		118
Federal funds sold	7,212		3.68		67		12,469		4.39		137
MBS3,4,5	27,327		4.47		304		26,350		5.12		336
Other investments3,4,6	6,962		4.06		70		7,615		3.81		72
Advances4,7	139,085		4.05		1,406		107,831		4.78		1,286
Mortgage loans8	15,223		4.73		179		12,746		4.53		144

Total interest-earning assets	216,843		4.11		2,220		182,076		4.72		2,141
Non-interest-earning assets	2,182		—		—		1,841		—		—
Total assets	$	219,025	4.07	%	$	2,220	$	183,917	4.67	%	$	2,141
Interest-bearing liabilities
Deposits	$	1,228	2.74	%	$	9	$	1,306	3.51	%	$	12
Consolidated obligations
Discount notes4	101,804		3.66		930		56,120		4.25		595
Bonds4	100,640		3.75		941		113,654		4.39		1,244
Other interest-bearing liabilities9	82		8.08		1		50		9.00		1
Total interest-bearing liabilities	203,754		3.71		1,881		171,130		4.34		1,852
Non-interest-bearing liabilities	2,860		—		—		2,903		—		—
Total liabilities	206,614		3.65		1,881		174,033		4.27		1,852
Capital	12,411		—		—		9,884		—		—
Total liabilities and capital	$	219,025	3.45	%	$	1,881	$	183,917	4.04	%	$	1,852
Net interest income and spread10			0.40	%	$	339			0.38	%	$	289
Net interest margin11			0.63	%					0.64	%
Average interest-earning assets to interest-bearing liabilities			106.42	%					106.40	%

1 Average balances are calculated on a daily weighted average basis and do not reflect the effect of derivative master netting arrangements with counterparties and/or clearing agents.

2 Interest income and expense amounts reported for advances, MBS, other investments, and consolidated obligation bonds include gains (losses) on hedged items and derivatives in qualifying fair value hedge relationships.

3 The average balance of AFS and HTM securities is reflected at amortized cost.

4 Average balances reflect the impact of fair value hedging adjustments and/or fair value option adjustments.

5 Interest income on investment securities includes prepayment fees, net of related amortization, of $3 million and less than $1 million for the three months ended June 30, 2026 and 2025.

6 Other investments primarily include U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, and taxable municipal bonds.

7 Interest income includes net prepayment fees on advances.

8 Non-accrual loans are included in the average balance used to determine the average yield.

9 Other interest-bearing liabilities consist primarily of MRCS and/or borrowings from other FHLBanks.

10 Represents annualized yield on total interest-earning assets minus annualized yield on total interest-bearing liabilities. Amounts used to calculate net interest spread are based on unrounded numbers. Accordingly, recalculations using rounded numbers in millions may not produce the same results.

11 Represents net interest income expressed as a percentage of average interest-earning assets. Amounts used to calculate net interest margin are based on unrounded numbers. Accordingly, recalculations using rounded numbers in millions may not produce the same results.

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	For the Six Months Ended June 30,
	2026						2025
	Average Balance1		Yield/Cost2		Interest Income/ Expense3		Average Balance1		Yield/Cost2		Interest Income/ Expense3
Interest-earning assets
Interest-bearing deposits	$	4,742	3.71	%	$	87	$	4,540	4.50	%	$	101
Securities purchased under agreements to resell	17,080		3.71		314		10,476		4.42		229
Federal funds sold	7,910		3.69		145		12,689		4.39		277
MBS4,5,6	27,081		4.62		621		25,877		5.19		667
Other investments4,5,7	6,991		4.03		139		6,870		3.74		127
Advances5,8	133,538		4.08		2,699		104,026		4.79		2,473
Mortgage loans9	14,957		4.75		352		12,395		4.52		278
Loans to other FHLBanks	2		3.73		—		4		4.40		—
Total interest-earning assets	212,301		4.14		4,357		176,877		4.73		4,152
Non-interest-earning assets	1,965		—		—		2,331		—		—
Total assets	$	214,266	4.10	%	$	4,357	$	179,208	4.67	%	$	4,152
Interest-bearing liabilities
Deposits	$	1,226	2.72	%	$	17	$	1,261	3.46	%	$	22
Consolidated obligations
Discount notes5	99,808		3.67		1,818		59,738		4.36		1,291
Bonds5	98,819		3.79		1,855		105,226		4.41		2,301
Other interest-bearing liabilities10	77		8.65		3		38		8.11		1
Total interest-bearing liabilities	199,930		3.73		3,693		166,263		4.38		3,615
Non-interest-bearing liabilities	2,437		—		—		3,148		—		—
Total liabilities	202,367		3.68		3,693		169,411		4.30		3,615
Capital	11,899		—		—		9,797		—		—
Total liabilities and capital	$	214,266	3.48	%	$	3,693	$	179,208	4.07	%	$	3,615
Net interest income and spread11			0.41	%	$	664			0.35	%	$	537
Net interest margin12			0.63	%					0.61	%
Average interest-earning assets to interest-bearing liabilities			106.19	%					106.38	%

1 Average balances are calculated on a daily weighted average basis and do not reflect the effect of derivative master netting arrangements with counterparties and/or clearing agents.

2 In instances where the average balance and/or related income/expense is less than $1 million, the yield/cost will continue to be presented, based on numbers in actuals.

3 Interest income and expense amounts reported for advances, MBS, other investments, and consolidated obligation bonds include gains (losses) on hedged items and derivatives in qualifying fair value hedge relationships.

4 The average balance of AFS and HTM securities is reflected at amortized cost.

5 Average balances reflect the impact of fair value hedging adjustments and/or fair value option adjustments.

6 Interest income on investment securities includes prepayment fees, net of related amortization, of $10 million and less than $1 million for the six months ended June 30, 2026 and 2025.

7 Other investments primarily include U.S. Treasury obligations, other U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, and taxable municipal bonds.

8 Interest income includes net prepayment fees on advances.

9 Non-accrual loans are included in the average balance used to determine the average yield.

10 Other interest-bearing liabilities consist primarily of MRCS and/or borrowings from other FHLBanks.

11 Represents annualized yield on total interest-earning assets minus annualized yield on total interest-bearing liabilities. Amounts used to calculate net interest spread are based on unrounded numbers. Accordingly, recalculations using rounded numbers in millions may not produce the same results.

12 Represents net interest income expressed as a percentage of average interest-earning assets. Amounts used to calculate net interest margin are based on unrounded numbers. Accordingly, recalculations using rounded numbers in millions may not produce the same results.

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The following table presents changes in interest income and interest expense. Changes in interest income and interest expense that are not identifiable as either volume-related or rate-related, but rather attributable to both volume and rate changes, are allocated to the volume and rate categories based on the proportion of the absolute value of the volume and rate changes (dollars in millions).


	Three Months Ended						Six Months Ended
	June 30, 2026 vs. June 30, 2025						June 30, 2026 vs. June 30, 2025
	Total Increase (Decrease) Due to				Total Increase (Decrease)		Total Increase (Decrease) Due to				Total Increase (Decrease)
	Volume		Rate				Volume		Rate
Interest income
Interest-bearing deposits	$	7	$	(9)	$	(2)	$	4	$	(18)	$	(14)
Securities purchased under agreements to resell	51		(21)		30		127		(42)		85
Federal funds sold	(51)		(19)		(70)		(93)		(39)		(132)
MBS	12		(44)		(32)		30		(76)		(46)
Other investments	(7)		5		(2)		2		10		12
Advances	336		(216)		120		630		(404)		226
Mortgage loans	29		6		35		59		15		74

Total interest income	377		(298)		79		759		(554)		205
Interest expense

Deposits	(1)		(2)		(3)		(1)		(4)		(5)
Consolidated obligations
Discount notes	427		(92)		335		757		(230)		527
Bonds	(133)		(170)		(303)		(135)		(311)		(446)
Other interest-bearing liabilities	—		—		—		2		—		2

Total interest expense	293		(264)		29		623		(545)		78
Net interest income	$	84	$	(34)	$	50	$	136	$	(9)	$	127

NET INTEREST SPREAD AND MARGIN

Net interest spread represents the annualized yield on total interest-earning assets minus the annualized cost of total interest-bearing liabilities. Our net interest spread increased during the three and six months ended June 30, 2026, when compared to the same periods in 2025. The increase during the three and six months ended June 30, 2026 was primarily due to advance portfolio growth. Our cost of funds does not include net interest settlements on economic hedges, which are recorded in other income (loss). As a result, our net interest spread does not reflect the full impact of our funding and hedging strategies and may experience volatility as interest rates change. Net interest margin equals net interest income expressed as a percentage of average interest-earning assets and remained relatively stable during the three and six months ended June 30, 2026, when compared to the same periods in 2025.

ADVANCE PREPAYMENT FEES

The following table summarizes our advance prepayment fees (dollars in millions):


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,


	2026		2025		2026		2025

Prepayment fees on advances, gross1,2	$	—	$	2	$	5	$	3
Basis adjustment amortization	1		1		(2)		1
Deferred prepayment fees on modified advances2	—		(1)		—		(1)
Prepayment fees on advances, net	$	1	$	2	$	3	$	3

1 Includes symmetrical fees on advances for which we may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates.

2 Prepayment fees on advances, gross were less than $1 million during the three months ended June 30, 2026. Deferred prepayment fees on modified advances were less than $1 million during the three and six months ended June 30, 2026.

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Other Income (Loss)

The following table summarizes the components of other income (loss) (dollars in millions):



	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Net gains (losses) on trading securities	$	(42)	$	22	$	(91)	$	69

Net gains (losses) on financial instruments held under fair value option	—		7		6		27
Net gains (losses) on derivatives	44		(24)		90		(59)



Other, net	15		11		23		20
Total other income (loss)	$	17	$	16	$	28	$	57

Other income (loss) remained relatively stable during the three months ended June 30, 2026 and decreased $29 million during the six months ended June 30, 2026, when compared to the same periods in 2025. The decline during the six months ended June 30, 2026 was primarily due to the net change in fair value on our trading securities, fair value option instruments, and economic derivatives, including the related interest settlements. We utilize economic derivatives to hedge certain instruments held at fair value that do not qualify for fair value hedge accounting. These fair value elections are made primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. As a result, we review the related gains (losses) on these items on a net basis.

During the six months ended June 30, 2026, we recorded net combined gains of $5 million on our trading securities, fair value option instruments, and the related economic derivatives, compared to net combined gains of $37 million for the same period in 2025. The net decrease during the six months ended June 30, 2026 was primarily driven by the reversal of historic gains and losses on trading securities as they approach maturity and changes in the interest rate environment. Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Hedging Activities” for additional discussion on our economic derivatives.

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Hedging Activities

We use derivatives to manage interest rate risk. Accounting rules affect the timing and recognition of income and expense on derivatives and therefore we may be subject to income statement volatility. For additional discussion on hedging activities, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations — Hedging Activities” in our 2025 Form 10-K.

The following tables categorize the net effect of hedging activities on net income by product (dollars in millions):



	For the Three Months Ended June 30, 2026
Net Effect of Hedging Activities	Advances		Investments		Discount Notes		Bonds		Total
Net interest income:
Net amortization/accretion	$	2	$	3	$	—	$	—	$	5
Net gains (losses) on derivatives and hedged items	—		(9)		(2)		3		(8)
Price alignment amount on derivatives	(3)		(5)		—		—		(8)
Net interest settlements on derivatives	38		24		4		13		79
Total impact to net interest income	37		13		2		16		68
Other income (loss):
Net gains (losses) on derivatives
Gains (losses) related to derivatives not designated as hedging instruments	—		45		(1)		—		44

Total net gains (losses) on derivatives	—		45		(1)		—		44
Net gains (losses) on trading securities	—		(42)		—		—		(42)

Total impact to other income (loss)	—		3		(1)		—		2
Total net effect of hedging activities1	$	37	$	16	$	1	$	16	$	70


	For the Three Months Ended June 30, 2025
Net Effect of Hedging Activities	Advances		Investments		Discount Notes		Bonds		Total
Net interest income:
Net amortization/accretion	$	6	$	1	$	—	$	—	$	7
Net gains (losses) on derivatives and hedged items	1		(5)		—		(2)		(6)
Price alignment amount on derivatives	(2)		(5)		—		(1)		(8)
Net interest settlements on derivatives	120		59		—		(5)		174
Total impact to net interest income	125		50		—		(8)		167
Other income (loss):
Net gains (losses) on derivatives
Gains (losses) related to derivatives not designated as hedging instruments	—		(12)		(12)		—		(24)

Total net gains (losses) on derivatives	—		(12)		(12)		—		(24)
Net gains (losses) on trading securities	—		22		—		—		22
Net gains (losses) on financial instruments held under fair value option	—		—		7		—		7
Total impact to other income (loss)	—		10		(5)		—		5
Total net effect of hedging activities1	$	125	$	60	$	(5)	$	(8)	$	172

1 The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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	For the Six Months Ended June 30, 2026
Net Effect of Hedging Activities	Advances		Investments		Discount Notes		Bonds		Total
Net interest income:
Net amortization/accretion	$	3	$	9	$	—	$	—	$	12
Net gains (losses) on derivatives and hedged items	(1)		(9)		(2)		1		(11)
Price alignment amount on derivatives	(3)		(7)		—		(1)		(11)
Net interest settlements on derivatives	77		49		14		26		166
Total impact to net interest income	76		42		12		26		156
Other income (loss):
Net gains (losses) on derivatives
Gains (losses) related to derivatives not designated as hedging instruments	—		93		(3)		—		90

Total net gains (losses) on derivatives	—		93		(3)		—		90
Net gains (losses) on trading securities	—		(91)		—		—		(91)
Net gains (losses) on financial instruments held under fair value option	—		—		6		—		6
Total impact to other income (loss)	—		2		3		—		5
Total net effect of hedging activities1	$	76	$	44	$	15	$	26	$	161


	For the Six Months Ended June 30, 2025
Net Effect of Hedging Activities	Advances		Investments		Discount Notes		Bonds		Total
Net interest income:
Net amortization/accretion	$	15	$	2	$	—	$	—	$	17
Net gains (losses) on derivatives and hedged items	2		(6)		—		(12)		(16)
Price alignment amount on derivatives	(9)		(13)		—		(2)		(24)
Net interest settlements on derivatives	237		117		—		1		355
Total impact to net interest income	245		100		—		(13)		332
Other income (loss):
Net gains (losses) on derivatives
Gains (losses) related to derivatives not designated as hedging instruments	—		(40)		(19)		—		(59)

Total net gains (losses) on derivatives	—		(40)		(19)		—		(59)
Net gains (losses) on trading securities	—		69		—		—		69
Net gains (losses) on financial instruments held under fair value option	—		—		27		—		27
Total impact to other income (loss)	—		29		8		—		37
Total net effect of hedging activities1	$	245	$	129	$	8	$	(13)	$	369

1 The hedging activity tables do not include the interest component on the related hedged items or the gross prepayment fee income on terminated advance or investment hedge relationships.

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NET AMORTIZATION/ACCRETION

Net amortization/accretion of basis adjustments varies from period to period depending on our hedge relationship termination activities and the maturity, call, or prepayment of assets or liabilities previously in hedge relationships.

NET GAINS (LOSSES) ON DERIVATIVES AND HEDGED ITEMS

Net gains and losses on derivatives and hedged items designated in fair value hedge relationships are recorded in net interest income. Gains (losses) on derivatives and hedged items fluctuate with changes in market conditions and are based on a range of factors, including current and projected levels of interest rates and volatility.

PRICE ALIGNMENT AMOUNT ON DERIVATIVES

The price alignment amount on derivatives for which variation margin is characterized as a daily settled contract fluctuates with changes in the interest rate environment. The price alignment amount on derivatives that qualify for fair value hedge accounting is recorded in net interest income. The price alignment amount on economic derivatives is recorded in other income (loss) as “Net gains (losses) on derivatives” on our Statements of Income.

NET INTEREST SETTLEMENTS ON DERIVATIVES

Net interest settlements represent the interest component on derivatives that qualify for fair value hedge accounting. These amounts vary from period to period depending on our hedging activities and interest rates and are partially offset by the interest component on the related hedged item within net interest income. The hedging activity tables do not include the impact of the interest component on the related hedged item.

NET GAINS (LOSSES) ON DERIVATIVES

We utilize economic derivatives to manage certain risks on our Statements of Condition. Gains and losses on economic derivatives include interest settlements and price alignment amounts. Interest settlements represent the interest component on economic derivatives. These amounts vary from period to period depending on our hedging activities and interest rates.

Other Expense

The following table shows the components of other expense (dollars in millions):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Compensation and benefits	$	20	$	20	$	41	$	42
Contractual services	7		6		14		13
Professional fees	3		4		6		7

Other operating expenses	6		6		12		11
Total operating expenses	36		36		73		73
Voluntary housing and community contributions	30		43		55		55
Federal Housing Finance Agency	4		4		7		8
Office of Finance	2		1		6		4
Other, net	5		6		10		11
Total other expense	$	77	$	90	$	151	$	151

Other expense decreased $13 million during the three months ended June 30, 2026, and remained relatively stable during the six months ended June 30, 2026, when compared to the same periods last year. The decline during the three months ended June 30, 2026 was primarily due to the timing of our voluntary housing and community contributions.

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STATEMENTS OF CONDITION

Advances

The following table summarizes our advances by type of institution (dollars in millions):




	June 30, 2026		December 31, 2025
Commercial banks	$	56,700	$	47,532
Savings institutions	1,182		1,008
Credit unions	9,011		10,266
Insurance companies	57,136		50,861

CDFIs	32		14
Total member advances	124,061		109,681
Housing associates	90		—
Non-member borrowers	865		497
Total par value	$	125,016	$	110,178

Our total advance par value increased $14.8 billion or 13 percent at June 30, 2026, when compared to December 31, 2025, primarily due to an increase in borrowings by insurance company and certain depository institution members.

The following table summarizes our advances by interest rate payment terms (dollars in millions):




	June 30, 2026			December 31, 2025
	Amount		% of Total	Amount		% of Total
Fixed rate	$	80,699	64	$	73,457	67

Variable rate	31,979		26	25,282		23
Variable rate, callable1	11,291		9	10,382		9
Other2	1,047		1	1,057		1

Total advance par value	125,016		100	110,178		100
Premiums	1			2
Discounts	(27)			(22)
Fair value hedging adjustments3	(501)			72

Total	$	124,489		$	110,230

1 Callable advances are those advances that may be contractually prepaid by the borrower on predetermined dates without incurring prepayment or termination fees.

2 Includes fixed rate amortizing and fixed rate callable advances.

3 Primarily represents fair value hedging adjustments on active hedging relationships driven by changes in interest rates.

At June 30, 2026 and December 31, 2025, advances outstanding to our top five borrowers totaled $63.4 billion and $51.6 billion, which represented 51 percent and 47 percent of our total advances outstanding. The following table summarizes our top five borrowers based on advances outstanding at June 30, 2026 (dollars in millions):


	Amount		% of Total Advances
Athene Annuity and Life Company	$	27,695	22
Wells Fargo Bank, N.A.	22,000		18
Symetra Life Insurance Company	4,896		4
EquiTrust Life Insurance Company	4,550		4
Columbia Bank	4,250		3
Total par value	$	63,391	51

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Mortgage Loans

The following table summarizes information on our mortgage loans held for portfolio (dollars in millions):


	June 30, 2026		December 31, 2025
Fixed rate conventional loans	$	15,109	$	14,097
Fixed rate government-insured loans	343		356
Total unpaid principal balance	15,452		14,453
Premiums	157		156
Discounts	(73)		(54)
Basis adjustments from mortgage loan purchase commitments	(12)		(9)
Total mortgage loans held for portfolio	15,524		14,546
Allowance for credit losses	(6)		(6)
Total mortgage loans held for portfolio, net	$	15,518	$	14,540

Our total mortgage loans increased $1.0 billion or seven percent at June 30, 2026, when compared to December 31, 2025. The increase was due to new loan purchases exceeding principal paydowns.

Investments

The following table summarizes the carrying value of our investments (dollars in millions):




	June 30, 2026			December 31, 2025
	Amount		% of Total	Amount		% of Total
Short-term investments1
Interest-bearing deposits	$	5,213	7	$	3,726	6
Securities purchased under agreements to resell	19,300		27	17,090		28
Federal funds sold	12,050		17	5,930		10


Total short-term investments	36,563		51	26,746		44
Long-term investments2

MBS
GSE single-family	469		1	516		1
GSE multifamily	20,987		29	20,882		34
U.S. obligations single-family3	6,808		9	5,708		9

Private-label residential	2		—	2		—
Total MBS	28,266		39	27,108		44
Non-MBS
U.S. Treasury obligations3	5,874		8	6,104		10
Other U.S. obligations3	58		—	71		—
GSE and TVA obligations	474		1	482		1
State or local housing agency obligations	471		1	391		1
Other4	112		—	113		—
Total non-MBS	6,989		10	7,161		12
Total long-term investments	35,255		49	34,269		56
Total investments	$	71,818	100	$	61,015	100

1 Short-term investments have original maturities equal to or less than one year.

2 Long-term investments have original maturities of greater than one year.

3 Represents investment securities backed by the full faith and credit of the U.S. Government.

4 Consists of taxable municipal bonds.

Our investments increased $10.8 billion, or 18 percent at June 30, 2026, when compared to December 31, 2025, due primarily to an increase in short-term investments. At June 30, 2026, we had agency MBS and/or state or local housing agency obligation purchases with a total par value of $564 million that were traded but not yet settled. These investments were recorded as “Available-for-sale” on our Statements of Condition with a corresponding payable recorded in “Other liabilities.” At December 31, 2025, we had no investment purchases that were traded but not yet settled.

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The Finance Agency limits our investments in MBS by requiring that the balance of our MBS not exceed three times regulatory capital at the time of purchase. Our ratio of MBS to regulatory capital was 2.54 and 2.64 at June 30, 2026 and December 31, 2025.

Consolidated Obligations

Consolidated obligations, which include bonds and discount notes, are the primary source of funds to support our advances, mortgage loans, and investments.

DISCOUNT NOTES

The following table summarizes our discount notes, all of which are due within one year (dollars in millions):




	June 30, 2026		December 31, 2025
Par value	$	98,284	$	85,186
Discounts and concession fees1	(914)		(586)
Fair value hedging adjustments	(26)		17
Fair value option adjustments	(2)		3
Total	$	97,342	$	84,620

1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes.

Our discount notes increased $12.7 billion or 15 percent at June 30, 2026, when compared to December 31, 2025. We continued to utilize discount notes to support our growth in assets and to capture attractive funding and/or meet our liquidity requirements. Fair value hedging adjustments changed $43 million at June 30, 2026, when compared to December 31, 2025, driven primarily by the reversal of historic gains and losses on instruments as they approach maturity and changes in the interest rate environment.

BONDS

The following table summarizes information on our bonds (dollars in millions):




	June 30, 2026		December 31, 2025
Par value	$	100,826	$	89,188
Premiums	27		28
Discounts and concession fees1	(21)		(23)
Fair value hedging adjustments	(70)		56

Total	$	100,762	$	89,249

1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds.

Our bonds increased $11.5 billion or 13 percent at June 30, 2026, when compared to December 31, 2025. We continued to utilize bonds to support our growth in assets and to capture attractive funding and/or meet our liquidity requirements. Fair value hedging adjustments changed $126 million at June 30, 2026, when compared to December 31, 2025, driven primarily by the interest rate environment.

For additional information on our consolidated obligations, refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Liquidity — Sources of Liquidity.”

Capital

The following table summarizes information on our capital (dollars in millions):




	June 30, 2026		December 31, 2025
Capital stock	$	7,223	$	6,509
Retained earnings	3,973		3,797
Accumulated other comprehensive income (loss)	295		181
Total capital	$	11,491	$	10,487

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Our capital increased $1.0 billion, or 10 percent at June 30, 2026, when compared to December 31, 2025, primarily due to an increase in activity-based capital stock resulting from an increase in advance balances. Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Capital” for additional information on our capital.

Derivatives

We use derivatives to manage interest rate risk. The notional amount of derivatives serves as a factor in determining periodic interest payments and cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor our overall exposure to credit and market risk.

The following table categorizes the notional amount of our derivatives by type (dollars in millions):




	June 30, 2026		December 31, 2025
Interest rate swaps
Non-callable	$	191,571	$	171,040
Callable by counterparty	20,873		14,872
Callable by the Bank	74		33
Total interest rate swaps	212,518		185,945

Forward settlement agreements	130		111
Mortgage loan purchase commitments	127		106
Interest rate caps or floors	1		—
Total notional amount	$	212,776	$	186,162

The notional amount of our derivative contracts increased $26.6 billion, or 14 percent, at June 30, 2026, when compared to December 31, 2025. The increase was primarily due to the utilization of interest rate swaps to hedge increased assets and liabilities as our balance sheet has grown. During 2026, we increased our utilization of non-callable swaps on consolidated obligations and advances, and callable swaps on consolidated obligation bonds in an effort to capture attractive funding and/or meet our liquidity requirements. For additional discussion regarding our use of derivatives, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Derivatives” in our 2025 Form 10-K.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity position is actively managed in an effort to preserve stable, reliable, and cost-effective sources of funds to meet current and projected operating financial commitments. In addition, capital levels are managed to ensure compliance with regulatory and capital requirements.

Liquidity

SOURCES OF LIQUIDITY

We utilize several sources of liquidity to carry out our business activities. These include, but are not limited to, proceeds from the issuance of consolidated obligations, payments collected on advances and mortgage loans, proceeds from investment securities, member deposits, the issuance of capital stock, and current period earnings.

Our primary source of liquidity is proceeds from the issuance of consolidated obligations (bonds and discount notes) in the capital markets. During the six months ended June 30, 2026, proceeds from the issuance of bonds and discount notes were $61.6 billion and $624.5 billion compared to $62.7 billion and $784.6 billion for the same period in 2025. Our funding needs vary from period to period depending on member demand for advances and other liquidity needs. During the six months ended June 30, 2026, we continued to utilize consolidated obligation bonds and discount notes in an effort to capture attractive funding and/or meet our liquidity requirements.

Access to debt markets has been reliable because investors, driven by increased liquidity preference, have sought the FHLBanks’ debt as an asset of choice. However, due to the short-term maturity of the debt, we may be exposed to additional risks associated with refinancing and our ability to access the capital markets.

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We are focused on maintaining an adequate liquidity balance and a funding balance between our financial assets and financial liabilities and work collectively with the other FHLBanks to manage the system-wide liquidity and funding needs. We monitor our debt refinancing risk and liquidity position primarily by tracking the maturities of financial assets and financial liabilities. In managing and monitoring the amounts of assets that require refunding, we consider contractual maturities of our financial assets and liabilities, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments). External factors, including member borrowing needs, supply and demand in the debt markets, and other factors may affect liquidity balances and the funding balances between financial assets and financial liabilities. Refer to “Item 1. Financial Statements — Condensed Notes to the Unaudited Financial Statements” for additional information regarding the contractual maturities of certain of our financial assets and liabilities.

Our ability to raise funds in the capital markets as well as our cost of borrowing may be affected by our credit ratings. As of July 31, 2026, our consolidated obligations were rated AA+/A-1+ by S&P and Aa1/P-1 by Moody’s, with stable outlooks. For further discussion of how credit rating changes and our ability to access the capital markets may impact us in the future, refer to “Item 1A. Risk Factors” in our 2025 Form 10-K.

Although we are primarily liable for the portion of consolidated obligations that are issued on our behalf, we are also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all consolidated obligations issued by the FHLBank System. At June 30, 2026 and December 31, 2025, the total par value of outstanding consolidated obligations for which we were primarily liable was $199.1 billion and $174.4 billion. At June 30, 2026 and December 31, 2025, the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which we were jointly and severally liable was $1,131.7 billion and $977.4 billion.

The Office of Finance and FHLBanks have contingency plans in place that prioritize the allocation of proceeds from the issuance of consolidated obligations during periods of financial distress if consolidated obligations cannot be issued in sufficient amounts to satisfy all FHLBank demand. In the event of significant market disruptions or local disasters, our President and CEO or designee is authorized to establish interim borrowing relationships with other FHLBanks. To provide further access to funding, the FHLBank Act also authorizes the U.S. Treasury to directly purchase new issue consolidated obligations of the GSEs, including FHLBanks, up to an aggregate principal amount of $4.0 billion. As of July 31, 2026, no purchases had been made by the U.S. Treasury under this authorization.

USES OF LIQUIDITY

We use our available liquidity, including proceeds from the issuance of consolidated obligations, primarily to repay consolidated obligations, fund advances, and purchase investments. During the six months ended June 30, 2026, repayments of consolidated obligations totaled $661.8 billion compared to $823.0 billion for the same period in 2025.

During the six months ended June 30, 2026, advance disbursements (excluding daily reset advances) totaled $347.1 billion compared to $392.9 billion for the same period in 2025. Advance disbursements vary from period to period depending on member needs. During the six months ended June 30, 2026 and 2025, investment purchases (excluding overnight investments) totaled $2.9 billion and $4.7 billion, a decrease due primarily to fewer purchases of agency MBS.

We also use liquidity to purchase mortgage loans, redeem member deposits, pledge collateral to derivative counterparties, redeem or repurchase capital stock, pay expenses, and pay dividends.

LIQUIDITY REQUIREMENTS

We are subject to certain liquidity requirements set forth by the Finance Agency and maintain a liquidity contingency funding plan designed to enable us to meet our obligations and the liquidity needs of our members in the event of short-term capital market disruptions, or operational disruptions at our Bank and/or the Office of Finance. For additional details on these liquidity requirements, refer to our 2025 Form 10-K. Our primary liquidity requirement is discussed further below.

Liquidity Guidance AB – This guidance requires us to maintain sufficient liquidity for a period of 10 to 30 calendar days. The base case scenario requires 20 days of positive daily cash balances and assumes that we cannot access the capital markets to issue debt, and during that time we will automatically renew maturing and called advances for all members, including large, highly-rated members, and we hold additional liquid assets equal to one percent of our letters of credit balances. At June 30, 2026 and December 31, 2025, we were in compliance with this base case liquidity guidance.

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The Liquidity Guidance AB also specifies appropriate funding gap limits to address the risks associated with an FHLBank having too large a mismatch between the contractual maturities of its assets and liabilities. A funding gap measures the difference between assets and liabilities that are scheduled to mature during a specified period and is expressed as a percentage of total assets. The guidance provides recommended maximum funding gap limits of negative 15 percent at the three-month horizon and negative 30 percent at the one-year horizon. At June 30, 2026 and December 31, 2025, we adhered to these funding gap requirements.

Capital

CAPITAL REQUIREMENTS

We are subject to certain regulatory capital requirements imposed by the Finance Agency. At June 30, 2026 and December 31, 2025, we were in compliance with all Finance Agency regulatory capital requirements. Refer to “Item 1. Financial Statements — Note 9 — Capital” for information on our regulatory capital requirements.

CAPITAL STOCK

The capital stock requirements established in our Capital Plan are designed so that we can remain adequately capitalized as member activity changes. Our Board of Directors may make adjustments to the capital stock requirements within ranges established in our Capital Plan.

The following table summarizes our regulatory capital stock by type of member (dollars in millions):




	June 30, 2026		December 31, 2025
Commercial banks	$	3,487	$	3,036
Savings institutions	105		97
Credit unions	816		849
Insurance companies	2,813		2,526

CDFIs	2		1
Total GAAP capital stock	7,223		6,509
MRCS	59		30
Total regulatory capital stock	$	7,282	$	6,539

The increase in regulatory capital stock held at June 30, 2026, when compared to December 31, 2025, was due primarily to an increase in activity-based capital stock resulting from an increase in advance balances. For additional information on our capital stock, refer to “Item 1. Financial Statements — Note 9 — Capital.”

Retained Earnings

Our risk management policies outline a targeted level of retained earnings based on the amount we believe necessary to help protect the redemption value of capital stock, facilitate safe and sound operations, maintain regulatory capital ratios, and support our ability to pay a relatively stable dividend. We monitor our achievement of this targeted level and may utilize tools such as restructuring our balance sheet, generating additional income, reducing our risk exposures, increasing capital stock requirements, or reducing our dividends to achieve this level of retained earnings. At June 30, 2026 and December 31, 2025, our actual retained earnings exceeded our targeted level of retained earnings.

We entered into a JCE Agreement with all of the other Federal Home Loan Banks in 2011. Under the JCE Agreement, we are required to allocate 20 percent of our quarterly net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of our average balance of outstanding consolidated obligations for the calendar quarter. The restricted retained earnings are not available to pay dividends and are presented separately on our Statements of Condition. At June 30, 2026 and December 31, 2025, our restricted retained earnings balance totaled $1.4 billion and $1.3 billion. One percent of our average balance of outstanding consolidated obligations for the three months ended June 30, 2026, was $2.0 billion.

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Dividends

Our dividend philosophy is to pay a consistent dividend equal to or greater than the current market rate for a highly-rated investment (i.e. SOFR), and at a rate that the Board of Directors believes is sustainable under current and projected earnings to maintain an appropriate level of capital and retained earnings. Our dividend is determined quarterly by our Board of Directors, based on policies, regulatory requirements, actual performance, and other considerations that the Board of Directors determines to be appropriate.

The following table summarizes dividend-related information (dollars in millions):


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Aggregate cash dividends paid1	$	165		$	135		$	311		$	273
Effective combined annualized dividend rate paid on capital stock2	9.25		%	9.14		%	9.21		%	9.14		%
Annualized dividend rate paid on membership capital stock	6.00		%	6.00		%	6.00		%	6.00		%
Annualized dividend rate paid on activity-based capital stock	9.75		%	9.75		%	9.75		%	9.75		%

Average SOFR	3.62		%	4.32		%	3.64		%	4.33		%

1 Includes aggregate cash dividends paid during the period. Amount excludes cash dividends paid on MRCS. For financial reporting purposes, these dividends were recorded as interest expense on our Statements of Income.

2 Effective combined annualized dividend rate is paid on total capital stock, including MRCS.

CRITICAL ACCOUNTING ESTIMATES

For a discussion of our critical accounting estimates, refer to our 2025 Form 10-K. There have been no material changes to our critical accounting estimates during the six months ended June 30, 2026.

For a discussion of recently adopted or issued accounting standards, refer to “Item 8. Financial Statements and Supplementary Data — Note 2 — Recently Adopted and Issued Accounting Guidance” in our 2025 Form 10-K.

LEGISLATIVE AND REGULATORY DEVELOPMENTS

Regulatory Environment

We are subject to various legal and regulatory requirements and priorities. Certain actions, regulatory priorities, and areas of focus, such as deregulation, by the current administration have changed and continue to change the regulatory environment. These changes have affected, and likely will continue to affect, certain aspects of our business operations, and could affect our financial condition, results of operations, and reputation. For example, the Finance Agency rescinded guidance related to establishing our target ratio of advances and mortgage assets compared to our consolidated obligations, providing us more discretion for developing our strategic business plan with respect to core mission assets. Additionally, the Finance Agency proposed to repeal the new business activity rule, which currently requires the Finance Agency’s non-objection before we undertake certain new business activities.

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Prudential Banking Regulators’ Proposed Capital Rules. On March 27, 2026, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System published two joint notices of proposed rulemakings, and the Board of Governors of the Federal Reserve System separately published a third proposed rulemaking applicable to only GSIBs, that would revise the regulatory capital requirements for certain depository and banking institutions, generally consistent with the final global recommendations by the Basel Committee on Banking Supervision adopted in December 2017, known as the “Basel III Endgame”. Among other changes, the proposed rules would revise risk-based capital calculations, resulting in reduced capital requirements for certain mortgage assets, including those eligible to be sold to us as acquired member assets, including those eligible for purchase under the MPF program, and collateral eligible to be pledged as security for advances. Conversely, the proposed rules would modify the standardized approach for risk-based capital treatment with respect to collateralized transactions by modifying the market price volatility haircuts assigned to collateral in such transactions, including by reducing haircuts to certain forms of collateral relative to GSE debt (including FHLBank debt securities), which may adversely affect market liquidity and demand for FHLBank debt securities and result in increased funding costs for us. Finally, the proposed rules would revise the capital surcharge calculation for GSIBs and make material changes to the GSIB short-term wholesale funding reliance methodology, which may increase the capital surcharge attributable to a GSIB’s use of our advances and may disincentive GSIBs’ use of our advances. We continue to evaluate the potential impact of these proposed rules on our financial condition and results of operations.

21st Century ROAD to Housing Act. On July 11, 2026, the 21st Century ROAD to Housing Act (Housing Act) became law. The Housing Act contains a series of reforms designed to impact affordable housing which include a statutory prohibition barring large institutional investors from purchasing single-family homes, subject to certain specific exceptions, allowing community banks with under $10 billion in assets to exempt custodial deposits of up to 20 percent of total liabilities from brokered deposits regulations, and exempting a higher portion of reciprocal deposits of such community banks from the brokered deposit classification. We are reviewing how the various reforms brought by the Housing Act could impact collateral held by large institutional investors that is eligible to be pledged to us, demand for and use of our advances due to more relaxed regulation around brokered deposits, and other aspects of our business, operations, and financial condition overall.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate result of future regulatory actions and their ultimate impact on the housing market, our business and the FHLBank System. We continue to monitor these actions as they evolve and to evaluate their potential impact on us. For a discussion of related risks, please refer to “Item 1A. Risk Factors” in our 2025 Form 10-K.

RISK MANAGEMENT

We have risk management policies, established by our Board of Directors, that allow us to monitor and control our exposure to various risks, including interest rate, liquidity, credit, operational, model, information security, legal, regulatory and compliance, strategic, and reputational, as well as capital adequacy. Our primary risk management objective is to manage our assets and liabilities in ways that ensure liquidity is available to our members and protect the par redemption value of our capital stock. We periodically evaluate our risk management policies in order to respond to changes in our financial position and general market conditions. The following sections outline our interest rate and credit risks. For additional details on all other risks noted above, please refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in our 2025 Form 10-K.

Interest Rate Risk

We define interest rate risk as the risk that changes in interest rates or spreads will adversely affect our financial condition (market value) or performance (income). Interest rate risk is the principal type of risk to which we are exposed, as our cash flows, and therefore earnings and equity value, can change significantly as interest rates change. Our general approach toward managing interest rate risk is to acquire and maintain a portfolio of assets, liabilities, and derivatives which, taken together, limit our expected exposure to interest rate risk. Our key interest rate risk measures are MVE and Projected 24-Month Income. Management regularly monitors these key measures, as discussed further in the sections below.

MARKET VALUE OF EQUITY

MVE measures the net present value of the Bank by either marking positions to market or discounting all future cash flows using market discount rates. MVE is measured as the market value of our assets minus the market value of our liabilities (excluding MRCS). MVE is an estimate of the Bank’s value and takes into account short-term market price fluctuations.

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We monitor and manage to MVE policy limits in an effort to ensure the stability of the Bank’s value. Our policy limits are based on declines from the base case in parallel and non-parallel interest rate change scenarios. Any policy limit breach must be reported to the Enterprise Risk Committee of the Bank and the Risk and Compliance Committee of the Board of Directors and be remediated in a timely manner. At June 30, 2026 and December 31, 2025, our base case MVE was $11.8 billion and $10.7 billion, and the increase between periods was primarily due to higher asset balances and increased invested capital, specifically activity-based capital stock. At June 30, 2026 and December 31, 2025, we were in compliance with all MVE policy limits.

MVCS represents our MVE divided by the total outstanding shares of our capital stock (including MRCS). To ensure we remain adequately capitalized, we must ensure our MVCS remains at or above our $100 par value. Our base case MVCS was $162.1 at June 30, 2026, compared to $163.1 at December 31, 2025. The decrease in our base case MVCS was primarily attributable to the issuance of activity-based capital stock at par value, as a result of an increase in advance balances, which was below the MVCS value at the time of issuance.

For more information on this risk measure, including policy limits, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Market Value of Equity” in our 2025 Form 10-K.

PROJECTED 24-MONTH INCOME

The projected 24-month income simulation measures our short-term earnings forecast over a two-year horizon based on forward interest rates and business assumptions. Our primary measure of profitability is the spread between projected AROCS and average SOFR. In this measure, AROCS adjusts GAAP net income for certain non-routine or unpredictable items, such as market value adjustments, prepayment fee income, and other non-routine items.

We monitor and manage to policy limits, which are based on the spread between our projected AROCS and average SOFR in parallel and non-parallel interest rate change scenarios. Additionally, there is a limit on the decline in projected AROCS from base case AROCS for certain basis shock scenarios to limit basis risk exposure. Any policy limit breach must be reported to the Enterprise Risk Committee of the Bank and the Risk and Compliance Committee of the Board of Directors and be remediated in a timely manner. We were in compliance with all projected 24-month income policy limits at June 30, 2026 and December 31, 2025.

For more information on this risk measure, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Projected 24-Month Income” in our 2025 Form 10-K.

CAPITAL ADEQUACY

An adequate capital position is necessary for facilitating safe and sound business operations, protecting the redemption value of our capital stock, maintaining regulatory capital ratios, and supporting our ability to pay dividends and redeem excess capital stock. To ensure capital adequacy, we maintain a targeted level of retained earnings to achieve business imperatives and cover unexpected losses. Our key capital adequacy measures are regulatory capital and targeted retained earnings in order to maintain capital levels in accordance with Finance Agency regulations. For additional information on our compliance with regulatory capital requirements, refer to “Item 1. Financial Statements — Note 9 — Capital.” For additional information on our targeted retained earnings, refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Retained Earnings.”

In addition, our risk management policies require that we maintain MVCS at or above our $100 par value. For additional information on MVCS, refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk — Market Value of Equity.”

Credit Risk

We define credit risk as the risk that a member or counterparty will fail to meet its financial obligations. Our primary credit risks arise from our ongoing lending, investing, and hedging activities. Our overall objective in managing credit risk is to operate a sound credit granting process and to maintain appropriate credit administration, measurement, and monitoring practices.

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ADVANCES

We manage our credit exposure to advances through a lending policy that provides for an established credit limit for each borrower, ongoing reviews of each borrower’s financial condition and ability to repay, and detailed collateral and lending policies. During the three months ended June 30, 2026, we did not incur any credit loss on any of our advances, and management believes that it has adequate policies and procedures in place to manage our credit risk on advances effectively.

At June 30, 2026 and December 31, 2025, borrowers pledged $453.8 billion and $442.4 billion of collateral (net of applicable discounts) to support activity with us, including advances. At June 30, 2026 and December 31, 2025, all of our advances met the requirement to be collateralized at a minimum of 100 percent, net of applicable discounts. Borrowers pledge collateral in excess of their collateral requirement mainly to demonstrate available liquidity and to borrow additional amounts in the future.

We evaluate advances for credit losses on a quarterly basis. We have never experienced a credit loss on our advances. Based upon our collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on our advances as of June 30, 2026 and December 31, 2025. Refer to “Item 8. Financial Statements and Supplementary Data — Note 5 — Advances” in our 2025 Form 10-K for additional information on our collateral management and allowance for credit losses.

MORTGAGE LOANS

Mortgage loan credit risk is the risk that we will not receive timely payments of principal and interest due from mortgage borrowers because of borrower defaults. Credit risk on mortgage loans is affected by a number of factors, including loan type, borrower’s credit history, and other factors such as home price fluctuations, unemployment levels, and other economic factors in the local market or nationwide.

We manage the credit risk on mortgage loans by (i) adhering to our underwriting standards, (ii) using agreements to establish credit risk sharing responsibilities with our PFIs, and (iii) monitoring the performance of the mortgage loan portfolio and creditworthiness of PFIs. Management believes that it has adequate policies and procedures in place to manage credit risk on mortgage loans effectively. Refer to “Item 1. Financial Statements — Note 5 — Mortgage Loans Held for Portfolio” for additional information on the payment status of our conventional mortgage loans and “Item 8. Financial Statements and Supplementary Data — Note 6 — Mortgage Loans Held for Portfolio” in our 2025 Form 10-K for more information on our allowance for credit losses.

INVESTMENTS

We are subject to credit risk on investments consisting of investment securities, interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. To minimize credit risk on investments, we are prohibited by

Finance Agency regulations from investing in certain types of investments. We also seek to reduce the credit risk by investing in investment-quality securities.

In addition, Finance Agency regulations include limits on the amount of unsecured credit we may extend to a counterparty or to a group of affiliated counterparties. Refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Credit Risk — Investments” in our 2025 Form 10-K for additional information on these regulatory limits, risk mitigation efforts, and allowance for credit losses.

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At June 30, 2026, our unsecured short-term investment exposure consisted of overnight interest-bearing deposits and federal funds sold. The following table presents our unsecured short-term investment exposure by counterparty credit rating and domicile (dollars in millions):


	June 30, 2026
	Credit Rating1,2
Domicile of Counterparty	AA		A		Total
Domestic	$	1,035	$	4,575	$	5,610
U.S subsidiaries of foreign commercial banks	—		1,100		1,100
Total domestic and U.S. subsidiaries of foreign commercial banks	1,035		5,675		6,710
U.S. branches and agency offices of foreign commercial banks
Australia	1,000		—		1,000

Belgium	—		1,100		1,100
Canada	—		2,450		2,450
Finland	600		—		600
France	—		1,250		1,250
Germany	1,400		—		1,400
Japan	—		1,100		1,100
Netherlands	—		550		550


United Kingdom	—		1,100		1,100
Total U.S. branches and agency offices of foreign commercial banks	3,000		7,550		10,550
Total unsecured short-term investment exposure	$	4,035	$	13,225	$	17,260

1 Represents either the lowest credit rating available for each counterparty based on an NRSRO, or the guarantor credit rating, if applicable. In instances where an NRSRO rating or guarantor rating is not available for the investment, the investment is classified as unrated.

2 Table excludes investments issued or guaranteed by the U.S. Government, U.S. government agencies, government instrumentalities, GSEs, and supranational entities, and does not include related accrued interest.

Investment Ratings

The following table summarizes the carrying value of our investments by credit rating (dollars in millions):


	June 30, 2026
	Credit Rating1
	AAA		AA		A		Unrated		Total
Interest-bearing deposits2	$	—	$	1,038	$	4,175	$	—	$	5,213
Securities purchased under agreements to resell3	—		2,000		1,750		15,550		19,300
Federal funds sold	—		3,000		9,050		—		12,050
Investment securities:
MBS
GSE single-family	—		469		—		—		469
GSE multifamily	—		20,987		—		—		20,987
U.S. obligations single-family4	—		6,808		—		—		6,808

Private-label residential	—		—		—		2		2
Total MBS	—		28,264		—		2		28,266
Non-MBS
U.S. Treasury obligations4	—		5,874		—		—		5,874
Other U.S. obligations4	—		58		—		—		58
GSE and TVA obligations	—		474		—		—		474
State or local housing agency obligations	308		163		—		—		471
Other5	93		19		—		—		112
Total non-MBS	401		6,588		—		—		6,989
Total investments	$	401	$	40,890	$	14,975	$	15,552	$	71,818

1 Represents either the lowest credit rating available for each investment based on an NRSRO, or the guarantor credit rating, if applicable. In instances where an NRSRO rating or guarantor rating is not available for the investment, the investment is classified as unrated.

2 Balance includes $3 million of interest-bearing deposits with another FHLBank. These investments are rated AA, based on the credit rating of the FHLBank System.

3 Although a portion of the securities purchased under agreements to resell is with unrated counterparties, the underlying collateral supporting these investments is investment grade.

4 Represents investment securities backed by the full faith and credit of the U.S. Government.

5 Consists of taxable municipal bonds.

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DERIVATIVES

The following table shows our derivative counterparty credit exposure (dollars in millions):


	June 30, 2026
Credit Rating1	Notional Amount		Net Derivatives Fair Value Before Collateral		Cash Collateral Pledged To (From) Counterparty		Non-cash Collateral Pledged To (From) Counterparty		Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure
Uncleared derivatives

A2	$	1,652	$	60	$	(60)	$	—	$	—

Cleared derivatives3	189,353		87		1		1,515		1,603








Total derivative positions with credit exposure to non-member counterparties	191,005		147		(59)		1,515		1,603
Member institutions2,4	78		—		—		—		—
Total	191,083		$	147	$	(59)	$	1,515	$	1,603
Derivative positions without credit exposure	21,693
Total notional	$	212,776

1 Represents either the lowest credit rating available for each counterparty based on an NRSRO, or the guarantor credit rating, if applicable.

2 Net credit exposure is less than $1 million.

3 Represents derivative transactions cleared with CME Clearing and LCH Ltd., our clearinghouses. CME Clearing is not rated, but its parent, CME Group Inc. was rated Aa3 by Moody’s and AA- by S&P at June 30, 2026. LCH Ltd. was rated AA- by S&P at June 30, 2026.

4 Represents mortgage loan purchase commitments with our member institutions.

Refer to “Item 1. Financial Statements — Note 6 — Derivatives and Hedging Activities” for additional information on our derivatives and hedging activities.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Interest Rate Risk” and the sections referenced therein for quantitative and qualitative disclosures about market risk.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management is responsible for establishing and maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms; and (ii) accumulated and communicated to our management, including our President and CEO, and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management, with the participation of our President and CEO, and CFO, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the quarterly period covered by this report. Based on that evaluation, our President and CEO, and CFO have concluded that our disclosure controls and procedures were effective as of June 30, 2026.

Changes in Internal Control over Financial Reporting

During the quarter ended June 30, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are subject to various pending legal proceedings arising in the normal course of business. We are not currently aware of any pending or threatened legal proceedings to which we are a party that we believe could have a material impact on our financial condition, results of operations, or cash flows.

ITEM 1A. RISK FACTORS

For a discussion of our risk factors, refer to our 2025 Form 10-K. There have been no material changes to our risk factors during the six months ended June 30, 2026.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS


3.1			Organization Certificate of the Federal Home Loan Bank of Des Moines, as amended and restated effective May 31, 20151
3.2			Bylaws of the Federal Home Loan Bank of Des Moines, as amended and restated effective December 8, 20212
4.1			Federal Home Loan Bank of Des Moines Capital Plan, as amended and approved by the Federal Housing Finance Agency on May 31, 20153



31.1			Certification of the President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2			Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1			Certification of the President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2			Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH			XBRL Taxonomy Extension Schema Document
101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document
101.LAB			XBRL Taxonomy Extension Label Linkbase Document
101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

1 Incorporated by reference from our Form 8-K filed with the SEC on June 1, 2015 (Commission File No. 000-51999).

2 Incorporated by reference from our Form 10-K filed with the SEC on March 7, 2025 (Commission File No. 000-51999).

3 Incorporated by reference from our Form 10-K filed with the SEC on March 7, 2024 (Commission File No. 000-51999).

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Glossary of Terms


2025 Form 10-K: The Bank’s 2025 Annual Report on Form 10-K filed with the SEC on March 10, 2026
AB: Advisory Bulletin
AFS: Available-for-Sale
AHP: Affordable Housing Program
AOCI: Accumulated Other Comprehensive Income (Loss)
AROCS: Adjusted Return on Capital Stock

Capital Stock AB: Finance Agency Advisory Bulletin on Capital Stock 2019-03
CDFI: Community Development Financial Institution
CEO: Chief Executive Officer
CFO: Chief Financial Officer
CFTC: U.S. Commodity Futures Trading Commission



Exchange Act: Securities Exchange Act of 1934, as amended

FHLBank Act: Federal Home Loan Bank Act of 1932
FHLBanks: The 11 Federal Home Loan Banks or a subset thereof
Finance Agency: Federal Housing Finance Agency

FOMC: Federal Open Market Committee
GAAP: Generally Accepted Accounting Principles
GSE: Government-Sponsored Enterprise
GSIB: Global systemically important banks
HTM: Held-to-Maturity
JCE Agreement: Joint Capital Enhancement Agreement entered into by the FHLBanks in 2011, as amended
LCH: London Clearing House

Liquidity Guidance AB: Finance Agency Advisory Bulletin on FHLBank Liquidity 2018-07
MBS: Mortgage-Backed Securities
MD&A: Management’s Discussion and Analysis
Moody’s: Moody’s Investors Service, Inc.
MPF: Mortgage Partnership Finance (a federally registered trademark of the Federal Home Loan Bank of Chicago)
MRCS: Mandatorily Redeemable Capital Stock
MVCS: Market Value of Capital Stock
MVE: Market Value of Equity
NRSRO: Nationally Recognized Statistical Rating Organization
PFI: Participating Financial Institution
S&P: S&P Global Ratings

SEC: Securities and Exchange Commission
SOFR: Secured Overnight Financing Rate

TVA: Tennessee Valley Authority

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FEDERAL HOME LOAN BANK OF DES MOINES

(Registrant)

Date:

August 7, 2026

By:

/s/ Kristina K. Williams

Kristina K. Williams
President and Chief Executive Officer

By:

/s/ James G. Livingston

James G. Livingston
Chief Financial Officer
(Principal Financial and Accounting Officer)

ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS