Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments in Statement of Financial Position

The following table summarizes the Bank’s notional amount and fair value of derivative instruments and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest (dollars in millions):

	December 31, 2025						December 31, 2024
	Notional Amount		Derivative Assets		Derivative  Liabilities		Notional Amount		Derivative Assets		Derivative  Liabilities
Derivatives designated as hedging instruments (fair value hedges)
Interest rate swaps	$	162,769	$	237	$	29	$	99,170	$	200	$	60
Derivatives not designated as hedging instruments (economic hedges)
Interest rate swaps	23,176		3		—		55,732		1		—
Forward settlement agreements	111		—		—		91		1		—
Mortgage loan purchase commitments	106		—		—		101		—		—
Total derivatives not designated as hedging instruments	23,393		3		—		55,924		2		—
Total derivatives before netting and collateral adjustments	$	186,162	240		29		$	155,094	202		60
Netting adjustments and cash collateral1			(160)		(26)				602		(54)
Total derivative assets and derivative liabilities			$	80	$	3			$	804	$	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, including accrued interest, held or placed with the same clearing agent and/or counterparty. At December 31, 2025 and 2024, cash collateral, including accrued interest, posted by the Bank was $3 million and $815 million. At December 31, 2025 and 2024, the Bank held cash collateral, including accrued interest, from clearing agents and/or counterparties of $137 million and $159 million.

Derivative Instrument Gain (Loss) [Table]

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 product recorded on the Statements of Income (dollars in millions):

	For the Year Ended December 31, 2025
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	5,080	$	1,390	$	(2,829)	$	(4,578)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	(381)		(397)		7		57
Hedged items3	834		591		(17)		(78)
Net gains (losses) on fair value hedging relationships	$	453	$	194	$	(10)	$	(21)

	For the Year Ended December 31, 2024
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	6,013	$	1,484	$	(4,821)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	921		866		(182)
Hedged items3	(65)		(521)		(3)
Net gains (losses) on fair value hedging relationships	$	856	$	345	$	(185)

	For the Year Ended December 31, 2023
	Interest Income (Expense)
	Advances		AFS Securities		Consolidated Obligation Bonds
Total interest income (expense) recorded on the Statements of Income1	$	6,533	$	1,203	$	(5,392)
Gains (losses) on fair value hedging relationships
Interest rate contracts
Derivatives2	328		119		(37)
Hedged items3	486		245		(243)
Net gains (losses) on fair value hedging relationships	$	814	$	364	$	(280)

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.

Derivative Instruments By Hedge Type in Statement of Financial Performance

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

	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

	December 31, 2024
	Advances		AFS Securities		Consolidated Obligation Bonds
Amortized cost of hedged asset/liability1	$	57,580	$	17,631	$	22,166
Fair value hedging adjustments
Changes in fair value for active hedging relationships included in amortized cost	$	(733)	$	(922)	$	(21)
Basis adjustments for discontinued hedging relationships included in amortized cost	(28)		(26)		(1)
Total amount of fair value hedging adjustments	$	(761)	$	(948)	$	(22)

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.

Offsetting Assets

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):

	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

	December 31, 2024
	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	$	181	$	(180)	$	—	$	1	$	—	$	1
Cleared derivatives	21		782		—		803		—		803
Total	$	202	$	602	$	—	$	804	$	—	$	804
Derivative Liabilities
Uncleared derivatives	$	57	$	(51)	$	—	$	6	$	—	$	6
Cleared derivatives	3		(3)		—		—		—		—
Total	$	60	$	(54)	$	—	$	6	$	—	$	6

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 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 December 31, 2025 and 2024, the Bank had additional net credit exposure of $1.4 billion and $0.5 billion due to instances where the Bank’s non-cash collateral to a counterparty exceeded the Bank’s net derivative position.

Offsetting Liabilities [Table Text Block]

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):

	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

	December 31, 2024
	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	$	181	$	(180)	$	—	$	1	$	—	$	1
Cleared derivatives	21		782		—		803		—		803
Total	$	202	$	602	$	—	$	804	$	—	$	804
Derivative Liabilities
Uncleared derivatives	$	57	$	(51)	$	—	$	6	$	—	$	6
Cleared derivatives	3		(3)		—		—		—		—
Total	$	60	$	(54)	$	—	$	6	$	—	$	6

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 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 December 31, 2025 and 2024, the Bank had additional net credit exposure of $1.4 billion and $0.5 billion due to instances where the Bank’s non-cash collateral to a counterparty exceeded the Bank’s net derivative position.

Derivatives Not Designated as Hedging Instruments

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

	For the Years Ended December 31,
	2025		2024		2023
Derivatives not designated as hedging instruments (economic hedges)
Interest rate swaps	$	(69)	$	44	$	45
Forward settlement agreements	(4)		1		2
Mortgage loan purchase commitments	4		(2)		(4)
Net interest settlements	17		(37)		(52)
Total net gains (losses) related to derivatives not designated as hedging instruments	(52)		6		(9)
Price alignment amount1	1		2		(32)
Net gains (losses) on derivatives	$	(51)	$	8	$	(41)

1    Represents the price alignment amount on derivatives for which variation margin is characterized as a daily settled contract. The price alignment amount on variation margin for daily settled derivative contracts designated as hedging instruments is recorded in the same line item as the earnings effect of the hedged item.