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

Available-for-Sale Securities. The amortized cost and fair value of AFS securities by major security type were as follows:


September 30, 2026
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

U.S. Treasury obligations	$	6,302	$	—	$	10	$	—	$	6,312
State housing agency obligations	67		—		—		(3)		64
MBS:
Government-Sponsored Enterprises (GSEs) – multifamily	12,502		—		138		(1)		12,639
Private-label residential mortgage-backed securities (PLRMBS)	833		(44)		22		(24)		787
Total mortgage-backed securities (MBS)	13,335		(44)		160		(25)		13,426
Total	$	19,704	$	(44)	$	170	$	(28)	$	19,802


December 31, 2025
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasury obligations	$	6,384	$	—	$	9	$	—	$	6,393
State housing agency obligations	42		—		—		—		42
MBS:
GSEs – multifamily	12,819		—		118		—		12,937
PLRMBS	899		(32)		31		(17)		881
Total MBS	13,718		(32)		149		(17)		13,818
Total	$	20,144	$	(32)	$	158	$	(17)	$	20,253

Amortized cost excludes accrued interest receivable of $110 million and $105 million at September 30, 2026, and December 31, 2025, respectively. At September 30, 2026, and December 31, 2025, $511 million and $501 million of AFS securities, respectively, were pledged as collateral that may be repledged. During the quarter, the Bank purchased $318 million of MBS that had not settled as of September 30, 2026. The Bank had no unsettled investment securities purchases as of September 30, 2025.

The following tables summarize unrealized losses by length of time that individual AFS securities in each security type had been in a continuous loss position.


September 30, 2026
	Less Than 12 Months				12 Months or More				Total
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations	$	616	$	—	$	—	$	—	$	616	$	—
State housing agency obligations	64		(3)		—		—		64		(3)
MBS – GSEs – multifamily	273		(1)		—		—		273		(1)
PLRMBS	336		(6)		181		(18)		517		(24)
Total	$	1,289	$	(10)	$	181	$	(18)	$	1,470	$	(28)


December 31, 2025
	Less Than 12 Months				12 Months or More				Total
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations	$	348	$	—	$	124	$	—	$	472	$	—
State housing agency obligations	14		—		—		—		14		—
MBS – GSEs – multifamily	28		—		150		—		178		—
PLRMBS	174		(1)		230		(16)		404		(17)
Total	$	564	$	(1)	$	504	$	(16)	$	1,068	$	(17)

Redemption Terms – The amortized cost and estimated fair value of U.S. Treasury obligations and state housing agency obligations by contractual maturity and of MBS are shown below. Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees.


September 30, 2026
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	1,644	$	1,645
Due after 1 year through 5 years	4,658		4,667


Total U.S. Treasury obligations	6,302		6,312
State housing agency obligations:
Due in 1 year or less	1		1

Due after 5 years through 10 years	66		63
Total state housing agency obligations	67		64
MBS	13,335		13,426
Total	$	19,704	$	19,802


December 31, 2025
(In millions)
Year of Contractual Maturity	Amortized Cost		Estimated Fair Value
U.S. Treasury obligations:
Due in 1 year or less	$	1,776	$	1,777
Due after 1 year through 5 years	4,608		4,616


Total U.S. Treasury obligations	6,384		6,393
State housing agency obligations:
Due after 1 year through 5 years	2		2
Due after 5 years through 10 years	40		40
Total state housing agency obligations	42		42
MBS	13,718		13,818
Total	$	20,144	$	20,253

Held-to-Maturity Securities. The Bank classifies the following securities as HTM because the Bank has the positive intent and ability to hold these securities to maturity:


September 30, 2026
(In millions)	Amortized Cost		Gross Unrecognized Holding Gains (1)		Gross Unrecognized Holding Losses (1)		Estimated Fair Value
MBS – Other U.S. obligations – single-family	$	12	$	—	$	—	$	12
MBS – GSEs:
Single-family	344		2		(10)		336
Multifamily	160		—		—		160
Subtotal MBS – GSEs	504		2		(10)		496
PLRMBS	68		—		(5)		63
Total	$	584	$	2	$	(15)	$	571


December 31, 2025
(In millions)	Amortized Cost		Gross Unrecognized Holding Gains (1)		Gross Unrecognized Holding Losses (1)		Estimated Fair Value
MBS – Other U.S. obligations – single-family	$	18	$	—	$	—	$	18
MBS – GSEs:
Single-family	401		2		(8)		395
Multifamily	404		—		(1)		403
Subtotal MBS – GSEs	805		2		(9)		798
PLRMBS	80		—		(4)		76
Total	$	903	$	2	$	(13)	$	892

(1) Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value.

Amortized cost excludes accrued interest receivable of $2 million and $3 million at September 30, 2026, and December 31, 2025, respectively.

Private-Label Residential Mortgage-Backed Securities – There have been no significant changes in the composition, credit quality, or valuation methodology of the Bank’s PLRMBS portfolio since December 31, 2025.

As a result of credit impairments recognized prior to the adoption of the current expected credit loss methodology, certain PLRMBS continue to accrete previously recognized credit losses into interest income. The remaining balance of these credit losses totaled $270 million and $278 million at September 30, 2026, and December 31, 2025, respectively. Accretion related to these amounts increased interest income by $2 million and $8 million for the three and nine months ended September 30, 2026, respectively, and $3 million and $10 million for the three and nine months ended September 30, 2025, respectively.

AFS and HTM Securities (Excluding PLRMBS) – There have been no significant changes in the credit quality, ratings distribution, or unrealized loss position of the Bank’s AFS and HTM securities (excluding PLRMBS investments) since December 31, 2025. As a result, no allowance for credit losses was recorded on these AFS or HTM securities at September 30, 2026, and December 31, 2025.