Fair Value (Tables)

12 Months Ended

Dec. 31, 2025

The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, financial instruments held under the fair value option, and certain other assets at fair value on a recurring basis, and on occasion certain impaired mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. The fair values do not represent an estimate of the overall market value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities.


	December 31, 2025
			Fair Value
Financial Instruments	Carrying Value		Level 1		Level 2		Level 3		Netting Adjustment 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)

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.

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


	December 31, 2024
			Fair Value
Financial Instruments	Carrying Value		Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Assets
Cash and due from banks	$	41	$	41	$	—	$	—	$	—	$	41
Interest-bearing deposits	4,096		—		4,096		—		—		4,096
Securities purchased under agreements to resell	11,950		—		11,950		—		—		11,950
Federal funds sold	5,175		—		5,175		—		—		5,175
Trading securities	4,720		—		4,720		—		—		4,720
Available-for-sale securities	25,331		—		25,331		—		—		25,331
Held-to-maturity securities	760		—		755		2		—		757
Advances	99,951		—		100,040		—		—		100,040
Mortgage loans held for portfolio, net	11,896		—		10,940		32		—		10,972
Accrued interest receivable	400		—		400		—		—		400
Derivative assets, net	804		—		202		—		602		804
Other assets	44		44		—		—		—		44
Liabilities
Deposits	(1,314)		—		(1,314)		—		—		(1,314)

Consolidated obligations
Discount notes2	(64,680)		—		(64,682)		—		—		(64,682)
Bonds	(88,571)		—		(87,778)		—		—		(87,778)
Total consolidated obligations	(153,251)		—		(152,460)		—		—		(152,460)
MRCS	(9)		(9)		—		—		—		(9)
Accrued interest payable	(717)		—		(717)		—		—		(717)
Derivative liabilities, net	(6)		—		(60)		—		54		(6)

2 Includes $52.3 billion of consolidated obligation discount notes recorded under fair value option at December 31, 2024.

Recurring Fair Value

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.

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.

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, 2024
	Level 1		Level 2		Level 3		Netting Adjustments and Cash Collateral1		Total
Recurring fair value measurements
Assets
Trading securities
U.S Treasury obligations	$	—	$	4,508	$	—	$	—	$	4,508
Other U.S. obligations	—		59		—		—		59
GSE and TVA obligations	—		47		—		—		47
Other non-MBS	—		106		—		—		106

Total trading securities	—		4,720		—		—		4,720
Available-for-sale securities
Other U.S. obligations	—		102		—		—		102
GSE and TVA obligations	—		309		—		—		309
State or local housing agency obligations	—		499		—		—		499
Other non-MBS	—		42		—		—		42
U.S. obligations single-family MBS	—		5,200		—		—		5,200
GSE single-family MBS	—		195		—		—		195
GSE multifamily MBS	—		18,984		—		—		18,984
Total available-for-sale securities	—		25,331		—		—		25,331

Derivative assets, net
Interest-rate related	—		201		—		602		803
Forward settlement agreements (TBAs)	—		1		—		—		1

Total derivative assets, net	—		202		—		602		804
Other assets	44		—		—		—		44
Total recurring assets at fair value	$	44	$	30,253	$	—	$	602	$	30,899
Liabilities
Discount Notes2	$	—	$	(52,349)	$	—	$	—	$	(52,349)
Derivative liabilities, net
Interest-rate related	—		(60)		—		54		(6)


Total derivative liabilities, net	—		(60)		—		54		(6)
Total recurring liabilities at fair value	$	—	$	(52,409)	$	—	$	54	$	(52,355)

Non-recurring fair value measurements
Assets
Impaired mortgage loans held for portfolio3	$	—	$	—	$	5	$	—	$	5
Total non-recurring assets at fair value	$	—	$	—	$	5	$	—	$	5

2 Represents financial instruments recorded under the fair value option.

Fair Value Option, Disclosures

The following table summarizes 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):


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


	December 31, 2024
	Unpaid Principal Balance		Fair Value		Fair Value Over (Under) Unpaid Principal
Discount Notes	$	52,848	$	52,349	$	(499)