| Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis |
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 are summarized as follows:
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Fair Value Measurements as of June 30, 2026 |
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Description |
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Assets and Liabilities
at Fair Value |
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Quoted Prices in
Active Markets for
Identical Assets
(Level 1) |
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Significant Other
Observable Inputs
(Level 2) |
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Significant
Unobservable
Inputs
(Level 3) |
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Assets and Liabilities |
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Mortgage revenue bonds |
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$ |
890,980,554 |
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$ |
- |
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|
$ |
- |
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|
$ |
890,980,554 |
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Bond purchase commitments (reported within other assets) |
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3,843,321 |
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|
- |
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- |
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3,843,321 |
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Taxable mortgage revenue bonds (reported within other assets) |
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80,450,736 |
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- |
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- |
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80,450,736 |
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Derivative instruments (reported within other assets) |
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3,284,738 |
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- |
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3,284,738 |
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- |
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Derivative instruments (reported within other liabilities) |
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(446,228 |
) |
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- |
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(446,228 |
) |
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- |
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Total Assets and Liabilities at Fair Value, net |
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$ |
978,113,121 |
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$ |
- |
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$ |
2,838,510 |
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$ |
975,274,611 |
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Assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 are summarized as follows:
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Fair Value Measurements as of December 31, 2025 |
|
Description |
|
Assets and Liabilities
at Fair Value |
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|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) |
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|
Significant Other
Observable Inputs
(Level 2) |
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|
Significant
Unobservable
Inputs
(Level 3) |
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Assets and Liabilities |
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Mortgage revenue bonds |
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$ |
1,007,904,386 |
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$ |
- |
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$ |
- |
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|
$ |
1,007,904,386 |
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Bond purchase commitments (reported within other assets) |
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3,323,510 |
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- |
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- |
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3,323,510 |
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Taxable mortgage revenue bonds (reported within other assets) |
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43,162,714 |
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- |
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- |
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43,162,714 |
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Derivative instruments (reported within other assets) |
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1,338,175 |
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- |
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1,338,175 |
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- |
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Derivative instruments (reported within other liabilities) |
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(1,843,464 |
) |
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- |
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(1,843,464 |
) |
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- |
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Total Assets and Liabilities at Fair Value, net |
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$ |
1,053,885,321 |
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$ |
- |
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$ |
(505,289 |
) |
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$ |
1,054,390,610 |
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| Summary of Activity Related to Level 3 Assets and Liabilities |
The following table summarizes the activity related to Level 3 assets for the three and six months ended June 30, 2026:
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For the Three Months Ended June 30, 2026 |
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Fair Value Measurements Using Significant |
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Unobservable Inputs (Level 3) |
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Mortgage
Revenue Bonds |
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Bond Purchase
Commitments |
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Taxable Mortgage
Revenue Bonds |
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Total |
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Beginning Balance April 1, 2026 |
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$ |
889,692,902 |
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$ |
2,955,173 |
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$ |
48,756,731 |
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$ |
941,404,806 |
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Total gains (losses) (realized/unrealized) |
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Included in earnings (interest income and
interest expense) |
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12,038 |
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- |
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(12,763 |
) |
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(725 |
) |
Included in earnings (provision for credit losses) |
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(39,418 |
) |
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- |
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- |
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(39,418 |
) |
Included in other comprehensive income |
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2,717,808 |
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888,148 |
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(381,988 |
) |
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3,223,968 |
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Purchases and advances |
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153,714 |
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- |
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32,312,500 |
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32,466,214 |
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Settlements and redemptions |
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(1,595,908 |
) |
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- |
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(223,744 |
) |
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(1,819,652 |
) |
Allowance for credit loss written off upon deed
in lieu of foreclosure |
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39,418 |
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- |
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- |
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39,418 |
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Ending Balance June 30, 2026 |
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$ |
890,980,554 |
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$ |
3,843,321 |
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$ |
80,450,736 |
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$ |
975,274,611 |
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Total amount of losses for the
period included in earnings attributable
to the change in unrealized losses relating to assets or
liabilities held on June 30, 2026 |
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$ |
(27,895 |
) |
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$ |
- |
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$ |
- |
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$ |
(27,895 |
) |
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For the Six Months ended June 30, 2026 |
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Fair Value Measurements Using Significant |
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Unobservable Inputs (Level 3) |
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Mortgage
Revenue Bonds |
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Bond Purchase
Commitments |
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Taxable Mortgage
Revenue Bonds |
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Total |
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Beginning Balance January 1, 2026 |
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$ |
1,007,904,386 |
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$ |
3,323,510 |
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$ |
43,162,714 |
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$ |
1,054,390,610 |
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Total gains (losses) (realized/unrealized) |
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Included in earnings (interest income and
interest expense) |
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(25,220 |
) |
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- |
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(19,150 |
) |
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(44,370 |
) |
Included in earnings (provision for credit losses) |
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1,970,235 |
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- |
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77,205 |
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2,047,440 |
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Included in other comprehensive income |
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(5,350,793 |
) |
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519,811 |
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(340,024 |
) |
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(5,171,006 |
) |
Purchases and advances |
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305,038 |
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- |
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40,612,500 |
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40,917,538 |
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Settlements and redemptions |
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(6,070,823 |
) |
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- |
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(447,404 |
) |
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(6,518,227 |
) |
Principal redeemed via deed in lieu of foreclosure |
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(114,221,934 |
) |
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- |
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(2,785,000 |
) |
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(117,006,934 |
) |
Allowance for credit loss written off upon deed
in lieu of foreclosure |
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6,469,665 |
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- |
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189,895 |
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|
6,659,560 |
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Ending Balance June 30, 2026 |
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$ |
890,980,554 |
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$ |
3,843,321 |
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$ |
80,450,736 |
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$ |
975,274,611 |
|
Total amount of gains for the
period included in earnings attributable
to the change in unrealized gains relating to assets or
liabilities held on June 30, 2026 |
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$ |
1,992,878 |
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$ |
- |
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$ |
77,205 |
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$ |
2,070,083 |
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The following table summarizes the activity related to Level 3 assets and liabilities for the three and six months ended June 30, 2025:
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For the Three Months ended June 30, 2025 |
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Fair Value Measurements Using Significant |
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Unobservable Inputs (Level 3) |
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Mortgage
Revenue Bonds |
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Bond Purchase Commitments |
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Taxable Mortgage
Revenue Bonds |
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Total |
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Beginning Balance April 1, 2025 |
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$ |
1,022,563,964 |
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$ |
- |
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$ |
34,416,164 |
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$ |
1,056,980,128 |
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Total gains (losses) (realized/unrealized) |
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Included in earnings (interest income and
interest expense) |
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(272,081 |
) |
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- |
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(1,738 |
) |
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(273,819 |
) |
Included in earnings (provision for credit losses) |
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(8,439,900 |
) |
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- |
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(267,100 |
) |
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(8,707,000 |
) |
Included in other comprehensive income |
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(2,654,338 |
) |
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1,833,078 |
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13,553 |
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(807,707 |
) |
Purchases and advances |
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22,711,764 |
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- |
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|
800,000 |
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23,511,764 |
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Settlements and redemptions |
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(29,445,949 |
) |
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- |
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(218,422 |
) |
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(29,664,371 |
) |
Ending Balance June 30, 2025 |
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$ |
1,004,463,460 |
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$ |
1,833,078 |
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$ |
34,742,457 |
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$ |
1,041,038,995 |
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Total amount of losses for the
period included in earnings attributable
to the change in unrealized losses relating to assets or
liabilities held on June 30, 2025 |
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$ |
(8,519,091 |
) |
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$ |
- |
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$ |
(267,100 |
) |
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$ |
(8,786,191 |
) |
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For the Six Months Ended June 30, 2025 |
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Fair Value Measurements Using Significant |
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|
Unobservable Inputs (Level 3) |
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Mortgage
Revenue Bonds |
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Bond Purchase
Commitments |
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Taxable Mortgage
Revenue Bonds |
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Total |
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Beginning Balance January 1, 2025 |
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$ |
1,026,483,796 |
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$ |
- |
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|
$ |
26,671,085 |
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$ |
1,053,154,881 |
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Total gains (losses) (realized/unrealized) |
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|
|
|
|
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|
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|
|
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Included in earnings (interest income and
interest expense) |
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|
(250,022 |
) |
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|
- |
|
|
|
(5,050 |
) |
|
|
(255,072 |
) |
Included in earnings (provision for credit losses) |
|
|
(8,439,900 |
) |
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|
- |
|
|
|
(267,100 |
) |
|
|
(8,707,000 |
) |
Included in other comprehensive income |
|
|
(8,776,135 |
) |
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|
1,833,078 |
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|
500,291 |
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(6,442,766 |
) |
Purchases and advances |
|
|
36,812,807 |
|
|
|
- |
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|
8,200,000 |
|
|
|
45,012,807 |
|
Settlements and redemptions |
|
|
(41,367,086 |
) |
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|
- |
|
|
|
(356,769 |
) |
|
|
(41,723,855 |
) |
Ending Balance June 30, 2025 |
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$ |
1,004,463,460 |
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|
$ |
1,833,078 |
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$ |
34,742,457 |
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$ |
1,041,038,995 |
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Total amount of losses for the
period included in earnings attributable
to the change in unrealized losses relating to assets or
liabilities held on June 30, 2025 |
|
$ |
(8,502,124 |
) |
|
$ |
- |
|
|
$ |
(267,100 |
) |
|
$ |
(8,769,224 |
) |
|