v3.26.1
Fair Value
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value [Text Block] 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.
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 InstrumentsCarrying ValueLevel 1Level 2Level 3
Netting Adjustments and Cash Collateral1
Total
Assets
Cash and due from banks$58 $58 $— $— $— $58 
Interest-bearing deposits5,213 — 5,213 — — 5,213 
Securities purchased under agreements to resell19,300 — 19,300 — — 19,300 
Federal funds sold12,050 — 12,050 — — 12,050 
Trading securities6,067 — 6,067 — — 6,067 
Available-for-sale securities28,775 — 28,775 — — 28,775 
Held-to-maturity securities413 — 413 2 — 415 
Advances124,489 — 124,606 — — 124,606 
Mortgage loans held for portfolio, net15,518 — 14,864 45 — 14,909 
Accrued interest receivable508 — 508 — — 508 
Derivative assets, net88 — 269 — (181)88 
Other assets54 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.
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 InstrumentsCarrying ValueLevel 1Level 2Level 3
Netting Adjustments and Cash Collateral1
Total
Assets
Cash and due from banks$44 $44 $— $— $— $44 
Interest-bearing deposits3,726 — 3,726 — — 3,726 
Securities purchased under agreements to resell17,090 — 17,090 — — 17,090 
Federal funds sold5,930 — 5,930 — — 5,930 
Trading securities6,303 — 6,303 — — 6,303 
Available-for-sale securities27,519 — 27,519 — — 27,519 
Held-to-maturity securities447 — 450 2 — 452 
Advances110,230 — 110,441 — — 110,441 
Mortgage loans held for portfolio, net14,540 — 13,996 38 — 14,034 
Accrued interest receivable461 — 461 — — 461 
Derivative assets, net80 — 240 — (160)80 
Other assets50 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)
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 $17.4 billion of consolidated obligation discount notes recorded under fair value option at December 31, 2025.
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 1Level 2Level 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 assets54 — — — 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 $— $4 
1    Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty.
2    Represents financial instruments recorded under the fair value option.
3    These assets are subject to fair value adjustments in certain circumstances. The fair value information presented is as of the date the fair value adjustment was recorded during the six months ended June 30, 2026.
The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value on the Statements of Condition (dollars in millions):
December 31, 2025
Level 1Level 2Level 3
Netting Adjustments and Cash Collateral1
Total
Recurring fair value measurements
Assets
Trading securities
U.S. Treasury obligations$— $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 assets50 — — — 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 
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    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 year ended December 31, 2025.
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 BalanceFair ValueFair Value Over (Under) Unpaid Principal
Discount Notes$4,795 $4,755 $(40)

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