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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2025
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ________ TO ________ .
Commission file number: 000-51402
FEDERAL HOME LOAN BANK OF BOSTON
(Exact name of registrant as specified in its charter)
Federally chartered corporation of the United States
04-6002575
(State or other jurisdiction of incorporation or organization)(I.R.S. employer identification number)
800 Boylston Street,BostonMA02199
(Address of principal executive offices)(Zip code)
(617) 292-9600
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x    No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o
 
Accelerated filer o
 Non-accelerated filerx 
Smaller reporting company 
☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐    No x
  Shares outstanding as of April 30, 2025
 (in thousands)
Class B Stock, par value$100  22,955
1

FEDERAL HOME LOAN BANK OF BOSTON
Form 10-Q
Table of Contents







2
Table of Contents



PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF CONDITION
(dollars and shares in thousands, except par value)
(unaudited)
 March 31, 2025December 31, 2024
ASSETS
Cash and due from banks$26,697 $5,149 
Interest-bearing deposits1,541,322 1,958,353 
Securities purchased under agreements to resell3,750,000 1,500,000 
Federal funds sold5,067,000 2,505,000 
Investment securities: 
Trading securities1,482 1,489 
Available-for-sale securities (amortized cost of $16,819,143 and $16,792,153 at March 31, 2025, and December 31, 2024, respectively)
16,545,645 16,470,908 
Held-to-maturity securities (a)60,119 63,318 
Total investment securities16,607,246 16,535,715 
Advances45,427,914 45,163,175 
Mortgage loans held for portfolio, net of allowance for credit losses of $2,200 at March 31, 2025, and December 31, 2024
3,765,267 3,679,150 
Accrued interest receivable257,974 262,203 
Derivative assets, net276,454 301,873 
Other assets74,284 82,348 
Total Assets$76,794,158 $71,992,966 
LIABILITIES  
Deposits
Interest-bearing$778,434 $842,062 
Non-interest-bearing31,819 35,019 
Total deposits810,253 877,081 
Consolidated obligations (COs): 
Bonds57,203,139 48,192,171 
Discount notes14,301,193 18,546,504 
Total consolidated obligations71,504,332 66,738,675 
Mandatorily redeemable capital stock4,471 5,086 
Accrued interest payable366,601 328,596 
Affordable Housing Program (AHP) payable112,288 104,300 
Derivative liabilities, net5,263 4,746 
Other liabilities70,060 81,637 
Total liabilities72,873,268 68,140,121 
Commitments and contingencies (Note 12)
CAPITAL  
Capital stock – Class B – putable ($100 par value), 22,074 shares and 21,952 shares issued and outstanding at March 31, 2025, and December 31, 2024, respectively
2,207,384 2,195,167 
Retained earnings:
Unrestricted1,407,846 1,403,455 
Restricted520,643 509,245 
Total retained earnings1,928,489 1,912,700 
Accumulated other comprehensive loss(214,983)(255,022)
Total capital3,920,890 3,852,845 
Total Liabilities and Capital$76,794,158 $71,992,966 
_______________________________________
(a)    Fair values of held-to-maturity securities were $60,194 and $63,197 at March 31, 2025, and December 31, 2024, respectively.

The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF OPERATIONS
(dollars in thousands)
(unaudited)
For the Three Months Ended March 31,
20252024
INTEREST INCOME
Advances$515,265 $528,497 
Prepayment fees on advances, net199 49 
Interest-bearing deposits27,084 36,326 
Securities purchased under agreements to resell23,679 14,311 
Federal funds sold60,518 49,218 
Investment securities:
Trading securities19 18 
Available-for-sale securities193,732 233,171 
Held-to-maturity securities843 1,126 
Total investment securities194,594 234,315 
Mortgage loans held for portfolio39,452 28,587 
Total interest income860,791 891,303 
INTEREST EXPENSE
Consolidated obligations:
Bonds574,214 507,136 
Discount notes187,162 264,603 
Total consolidated obligations761,376 771,739 
Deposits6,497 9,577 
Mandatorily redeemable capital stock86 127 
Other borrowings43 18 
Total interest expense768,002 781,461 
NET INTEREST INCOME92,789 109,842 
Provision for credit losses— 600 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES92,789 109,242 
OTHER INCOME (LOSS)
Service fees3,104 2,993 
Other, net798 (385)
Total other income3,902 2,608 
OTHER EXPENSE
Compensation and benefits13,308 12,588 
Other operating expenses7,170 7,092 
AHP voluntary contribution 4,434 — 
Discretionary housing and community investment programs4,817 2,304 
Federal Housing Finance Agency (the FHFA)1,556 1,189 
Office of Finance1,233 1,074 
Other840 1,093 
Total other expense33,358 25,340 
INCOME BEFORE ASSESSMENTS63,333 86,510 
AHP assessments6,342 8,664 
NET INCOME$56,991 $77,846 

The accompanying notes are an integral part of these financial statements.
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FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF COMPREHENSIVE INCOME
(dollars in thousands)
(unaudited)
For the Three Months Ended March 31,
20252024
Net income$56,991 $77,846 
Other comprehensive income:
Net unrealized gains on available-for-sale securities47,747 32,931 
Net unrealized (losses) gains relating to hedging activities(7,319)18,696 
Pension and postretirement benefits(389)— 
Total other comprehensive income40,039 51,627 
Comprehensive income$97,030 $129,473 

The accompanying notes are an integral part of these financial statements.
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FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF CAPITAL
THREE MONTHS ENDED MARCH 31, 2025 and 2024
(dollars and shares in thousands)
(unaudited)
 Capital Stock Class B – PutableRetained EarningsAccumulated Other Comprehensive Loss
 SharesPar ValueUnrestrictedRestrictedTotalTotal
Capital
BALANCE, DECEMBER 31, 202320,425 $2,042,453 $1,339,546 $451,154 $1,790,700 $(294,539)$3,538,614 
Comprehensive income62,277 15,569 77,846 51,627 129,473 
Proceeds from issuance of capital stock6,183 618,309 618,309 
Repurchase/redemption of capital stock(6,777)(677,659)(677,659)
Cash dividends on capital stock(41,450)(41,450)(41,450)
BALANCE, MARCH 31, 202419,831 $1,983,103 $1,360,373 $466,723 $1,827,096 $(242,912)$3,567,287 
BALANCE, DECEMBER 31, 202421,952 $2,195,167 $1,403,455 $509,245 $1,912,700 $(255,022)$3,852,845 
Comprehensive income45,593 11,398 56,991 40,039 97,030 
Proceeds from issuance of capital stock6,517 651,742 651,742 
Repurchase/redemption of capital stock(6,395)(639,525)(639,525)
Cash dividends on capital stock(41,202)(41,202)(41,202)
BALANCE, MARCH 31, 202522,074 $2,207,384 $1,407,846 $520,643 $1,928,489 $(214,983)$3,920,890 

The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
For the Three Months Ended March 31,
 20252024
OPERATING ACTIVITIES  
Net income$56,991 $77,846 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation and amortization(39,915)15,496 
Provision for credit losses— 600 
Net change in derivatives and hedging activities(202,350)112,077 
Other adjustments, net2,824 543 
Net change in: 
Market value of trading securities7 (172)
Accrued interest receivable4,229 (16,566)
Other assets6,160 6,484 
Accrued interest payable38,020 14,127 
Other liabilities(4,568)12,561 
Total adjustments(195,593)145,150 
Net cash (used in) provided by operating activities(138,602)222,996 
INVESTING ACTIVITIES  
Net change in:  
Interest-bearing deposits553,263 (76,062)
Securities purchased under agreements to resell(2,250,000)(150,000)
Federal funds sold(2,562,000)(551,000)
Advances to members(203,113)1,955,311
Available-for-sale securities:  
Proceeds155,333 358,628 
Purchases— (439,674)
Held-to-maturity securities:  
Proceeds3,025 4,584 
Mortgage loans held for portfolio:  
Proceeds74,427 58,328 
Purchases(161,631)(147,151)
Other investing activities, net(349)(207)
Net cash (used in) provided by investing activities(4,391,045)1,012,757 
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FEDERAL HOME LOAN BANK OF BOSTON
STATEMENTS OF CASH FLOWS — (Continued)
(dollars in thousands)
(unaudited)
For the Three Months Ended March 31,
20252024
FINANCING ACTIVITIES  
Net change in deposits(61,277)10,143 
Net payments on derivatives with a financing element(8,981)19,167 
Net proceeds from issuance of consolidated obligations:  
Discount notes16,225,726 24,337,549 
Bonds20,978,989 6,685,488 
Payments for maturing and retiring consolidated obligations:  
Discount notes(20,446,237)(26,303,060)
Discount notes transferred to other FHLBanks— (4,866)
Bonds(12,107,415)(5,862,155)
Payment of financing lease(10)(15)
Proceeds from issuance of capital stock651,742 618,309 
Payments for repurchase of capital stock(639,525)(677,659)
Payments for redemption of mandatorily redeemable capital stock(615)— 
Cash dividends paid(41,202)(41,450)
Net cash provided by (used in) financing activities4,551,195 (1,218,549)
Net increase in cash and due from banks21,548 17,204 
Cash and due from banks at beginning of the period5,149 53,412 
Cash and due from banks at end of the period$26,697 $70,616 
Supplemental disclosures:  
Interest paid$759,174 $777,972 
Noncash transfers of mortgage loans held for portfolio to other assets$347 $— 

The accompanying notes are an integral part of these financial statements.

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FEDERAL HOME LOAN BANK OF BOSTON
NOTES TO FINANCIAL STATEMENTS

Note 1 — Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. In the opinion of management, all adjustments considered necessary have been included. All such adjustments consist of normal recurring accruals. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2025. These interim financial statements do not include all the information and footnotes required by GAAP for complete annual financial statements and accordingly should be read in conjunction with the Federal Home Loan Bank of Boston's audited financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the SEC) on March 14, 2025 (the 2024 Annual Report). Unless otherwise indicated or the context requires otherwise, all references in this discussion to “the Bank,” "we," "us," "our," or similar references mean the Federal Home Loan Bank of Boston.

Note 2 — Investments

Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold

We invest in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide liquidity. These investments are generally transacted with counterparties that have received, or whose guarantors have received, a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO), or the equivalent. At March 31, 2025, and December 31, 2024, none of these investments were made to counterparties or, if applicable, guaranteed by entities rated below single-A or the equivalent.

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated daily to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e. subject to collateral maintenance provisions). If so, the counterparty must place an amount of additional securities as collateral or remit an equivalent amount of cash sufficient to comply with collateral maintenance provisions, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with our counterparties, we determined that no allowance for credit losses was needed for our securities purchased under agreements to resell at March 31, 2025, and December 31, 2024.

Federal funds sold are unsecured loans that are transacted on an overnight term or short-term basis. FHFA regulations include a limit on the amount of unsecured credit we may extend to a counterparty. All investments in interest-bearing deposits and federal funds sold outstanding as of March 31, 2025, and December 31, 2024, have been repaid according to the contractual terms. No allowance for credit losses was recorded for these assets at March 31, 2025, and December 31, 2024.

Debt Securities

We invest in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. We are prohibited by FHFA regulations from investing in certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities. We are not required to divest instruments that experience credit deterioration after their purchase.

Trading Securities

Table 2.1 - Trading Securities by Major Security Type
(dollars in thousands)
 March 31, 2025 December 31, 2024
Corporate bonds$1,482 $1,489 

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For the three months ended March 31, 2025 and 2024, net (losses) gains on trading securities held at period end were $(7) thousand and $172 thousand, respectively.

We do not participate in speculative trading practices and typically hold these investments for longer periods of time.

Available-for-sale Securities

Table 2.2 - Available-for-Sale Securities by Major Security Type
(dollars in thousands)
March 31, 2025
 Amounts Recorded in Accumulated Other Comprehensive Income
 
Amortized
Cost (1)
Unrealized
Gains		 Unrealized
Losses		Fair
 Value
U.S. Treasury obligations$5,896,229 $1,456 $(4,536)$5,893,149 
State housing-finance-agency obligations (HFA securities)6,645 2 — 6,647 
Supranational institutions340,352 3  (2,997)337,358 
U.S. government-owned corporations240,821 —  (14,214)226,607 
Government-sponsored enterprise (GSE)99,885 —  (3,353)96,532 
 6,583,932 1,461  (25,100)6,560,293 
Mortgage-backed securities (MBS)     
U.S. government guaranteed – single-family158,328 326  (1,722)156,932 
U.S. government guaranteed – multifamily507,352 —  (46,163)461,189 
GSE – single-family1,918,179 6,173  (40,326)1,884,026 
GSE – multifamily7,651,352 9,835 (177,982)7,483,205 
 10,235,211 16,334  (266,193)9,985,352 
Total$16,819,143 $17,795  $(291,293)$16,545,645 

December 31, 2024
  Amounts Recorded in Accumulated Other Comprehensive Income
 
Amortized
Cost (1)
 Unrealized
Gains		 Unrealized
Losses		Fair
 Value
U.S. Treasury obligations$5,811,806 $1,415 $(5,556)$5,807,665 
HFA securities6,645 6 — 6,651 
Supranational institutions340,228  15  (2,891)337,352 
U.S. government-owned corporations235,839  —  (14,070)221,769 
GSE98,280  —  (3,666)94,614 
 6,492,798  1,436  (26,183)6,468,051 
MBS      
U.S. government guaranteed – single-family180,674  283  (1,905)179,052 
U.S. government guaranteed – multifamily509,859 — (45,036)464,823 
GSE – single-family1,999,159  3,403  (49,409)1,953,153 
GSE – multifamily7,609,663  8,800  (212,634)7,405,829 
 10,299,355  12,486  (308,984)10,002,857 
Total$16,792,153  $13,922  $(335,167)$16,470,908 
_______________________
(1)    Amortized cost of available-for-sale securities includes adjustments made to the cost basis of an investment for accretion, amortization, collection of cash, and fair-value hedge accounting adjustments. Amortized cost excludes accrued interest receivable of $38.0 million and $45.2 million at March 31, 2025, and December 31, 2024, respectively.

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Table 2.3 - Available-for-Sale Securities in a Continuous Unrealized Loss Position
(dollars in thousands)
March 31, 2025
 Continuous Unrealized Loss Less than 12 MonthsContinuous Unrealized Loss 12 Months or MoreTotal
 Fair
 Value		Unrealized
 Losses		Fair
 Value		Unrealized
 Losses		Fair
 Value		Unrealized
 Losses
U.S. Treasury obligations$— $— $3,212,758 $(4,536)$3,212,758 $(4,536)
Supranational institutions— — 325,120 (2,997)325,120 (2,997)
U.S. government-owned corporations— — 226,607 (14,214)226,607 (14,214)
GSE— — 96,532 (3,353)96,532 (3,353)
— — 3,861,017 (25,100)3,861,017 (25,100)
MBS      
U.S. government guaranteed – single-family— — 12,720 (1,722)12,720 (1,722)
U.S. government guaranteed – multifamily— — 461,189 (46,163)461,189 (46,163)
GSE – single-family123,435 (59)493,868 (40,267)617,303 (40,326)
GSE – multifamily461,999 (173)5,365,268 (177,809)5,827,267 (177,982)
585,434 (232)6,333,045 (265,961)6,918,479 (266,193)
Total$585,434 $(232)$10,194,062 $(291,061)$10,779,496 $(291,293)

December 31, 2024
 Continuous Unrealized Loss Less than 12 MonthsContinuous Unrealized Loss 12 Months or MoreTotal
 Fair
 Value		Unrealized
 Losses		Fair
 Value		Unrealized
 Losses		Fair
 Value		Unrealized
 Losses
U.S. Treasury obligations$464,479 $(140)$3,153,111 $(5,416)$3,617,590 $(5,556)
Supranational institutions— — 325,028 (2,891)325,028 (2,891)
U.S. government-owned corporations— — 221,769 (14,070)221,769 (14,070)
GSE— — 94,614 (3,666)94,614 (3,666)
 464,479 (140)3,794,522 (26,043)4,259,001 (26,183)
MBS      
U.S. government guaranteed – single-family— — 12,963 (1,905)12,963 (1,905)
U.S. government guaranteed – multifamily— — 464,823 (45,036)464,823 (45,036)
GSE – single-family627,702 (1,598)510,158 (47,811)1,137,860 (49,409)
GSE – multifamily828,243 (2,737)5,237,505 (209,897)6,065,748 (212,634)
1,455,945 (4,335)6,225,449 (304,649)7,681,394 (308,984)
Total$1,920,424 $(4,475)$10,019,971 $(330,692)$11,940,395 $(335,167)

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Table 2.4 - Available-for-Sale Securities by Contractual Maturity
(dollars in thousands)
 March 31, 2025 December 31, 2024
Year of MaturityAmortized
Cost		 Fair
 Value		 Amortized
Cost		 Fair
 Value
Due in one year or less$2,058,706  $2,059,597  $1,803,427 $1,804,492 
Due after one year through five years4,222,963  4,215,903  4,393,367 4,385,160 
Due after five years through 10 years—  —  — — 
Due after 10 years302,263  284,793  296,004 278,399 
 6,583,932  6,560,293  6,492,798 6,468,051 
MBS (1)
10,235,211  9,985,352  10,299,355 10,002,857 
Total$16,819,143  $16,545,645  $16,792,153 $16,470,908 
_______________________
(1)    MBS are not presented by contractual maturity because their expected maturities will likely differ from contractual maturities since borrowers of the underlying loans may have the right to call or prepay obligations with or without call or prepayment fees.

Held-to-Maturity Securities

Table 2.5 - Held-to-Maturity Securities by Major Security Type
(dollars in thousands)
March 31, 2025
 
Amortized Cost(1)
Gross Unrecognized Holding GainsGross Unrecognized Holding LossesFair Value
MBS    
U.S. government guaranteed – single-family$2,660 $14 $— $2,674 
GSE – single-family57,459 520 (459)57,520 
Total$60,119 $534 $(459)$60,194 

December 31, 2024
 
Amortized Cost(1)
Gross Unrecognized Holding GainsGross Unrecognized Holding LossesFair Value
MBS
U.S. government guaranteed – single-family$2,738 $13 $— $2,751 
GSE – single-family60,580 435 (569)60,446 
Total$63,318 $448 $(569)$63,197 
_______________________
(1)    Amortized cost of held-to-maturity securities includes adjustments made to the cost basis of an investment for accretion, amortization, and collection of cash. Amortized cost excludes accrued interest receivable of $328 thousand and $359 thousand at March 31, 2025, and December 31, 2024, respectively.

Allowance for Credit Losses on Available-for-Sale Securities and Held-to-Maturity Securities

We evaluate available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. Our available-for-sale and held-to-maturity securities are principally debt securities of the U.S. Treasury, GSEs, U.S. government-owned corporations, supranational institutions, state housing finance agency obligations, and MBS issued by Government National Mortgage Association (Ginnie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal National Mortgage Association (Fannie Mae) that are backed by single-family or multifamily mortgage loans. We only purchase investment-grade securities. At March 31, 2025, and December 31, 2024, all available-for-sale securities and held-to-maturity securities were rated double-A, or above, by an NRSRO, based on the lowest long-term credit rating for each security.
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We evaluate individual available-for-sale securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e. in an unrealized loss position). At March 31, 2025, and December 31, 2024, certain available-for-sale securities were in an unrealized loss position. These losses are considered temporary as we expect to recover the entire amortized cost basis on these available-for-sale investment securities and we neither intend to sell these securities nor do we consider it more likely than not that we will be required to sell these securities before the anticipated recovery of each security's remaining amortized cost basis. Further, we have not experienced any material payment defaults on the instruments.

We evaluate held-to-maturity securities for impairment on a collective or pooled basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. We have not experienced and do not anticipate any payment defaults on these securities.

Based on our assessment of the credit worthiness of the issuers or guarantors, no allowance for credit losses was recorded on available-for-sale securities or held-to-maturity securities at March 31, 2025, and December 31, 2024.

Note 3 — Advances

General Terms. At both March 31, 2025, and December 31, 2024, we had advances outstanding with interest rates ranging from 0.00 percent to 6.23 percent.

Table 3.1 - Advances Outstanding by Year of Contractual Maturity
(dollars in thousands)
 March 31, 2025December 31, 2024
AmountWeighted
Average
Rate		AmountWeighted
Average
Rate
Overdrawn demand-deposit accounts$885 4.73 %$4,709 4.73 %
Due in one year or less31,011,779 4.43 30,382,356 4.54 
Due after one year through two years3,872,308 4.12 4,110,784 4.08 
Due after two years through three years3,901,847 3.91 3,216,983 4.22 
Due after three years through four years2,870,759 3.84 3,551,070 3.59 
Due after four years through five years2,213,353 3.74 2,288,069 3.80 
Due after five years through fifteen years1,582,619 3.41 1,694,930 3.40 
Thereafter41,790 1.90 43,325 1.85 
Total par value45,495,340 4.25 %45,292,226 4.32 %
Discounts(39,479) (38,695) 
Fair value hedging adjustments(27,947) (90,356) 
Total (1)
$45,427,914  $45,163,175  
_________________________
(1)    Excludes accrued interest receivable of $190.3 million and $188.6 million at March 31, 2025, and December 31, 2024, respectively.

We offer advances to members and eligible nonmembers that provide the borrower the right, based upon predetermined option exercise dates, to repay the advance prior to maturity without incurring prepayment or termination fees (callable advances). We also offer certain floating-rate advances that may be contractually prepaid by the borrower on a floating-rate reset date without incurring prepayment or termination fees. Other advances may only be prepaid by paying a fee (prepayment fee) that makes us financially indifferent to the prepayment of the advance.

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Table 3.2 - Advances Outstanding by Year of Contractual Maturity or Next Call Date
(dollars in thousands)
March 31, 2025December 31, 2024
Overdrawn demand-deposit accounts$885 $4,709 
Due in one year or less32,369,837 31,664,678 
Due after one year through two years3,500,744 3,739,220 
Due after two years through three years3,210,406 2,602,744 
Due after three years through four years2,779,663 3,478,578 
Due after four years through five years2,098,300 2,158,154 
Due after five years through fifteen years1,493,715 1,600,818 
Thereafter41,790 43,325 
Total par value$45,495,340 $45,292,226 

We currently hold putable advances that provide us with the right to require repayment prior to maturity of the advance (and thereby extinguish the advance) on predetermined exercise dates (put dates). Generally, we would exercise the put options when interest rates increase relative to contractual rates.

Table 3.3 - Advances Outstanding by Year of Contractual Maturity or Next Put Date
(dollars in thousands)
March 31, 2025December 31, 2024
Overdrawn demand-deposit accounts$885 $4,709 
Due in one year or less37,730,000 37,096,726 
Due after one year through two years2,362,158 2,686,484 
Due after two years through three years2,653,276 1,886,413 
Due after three years through four years1,373,259 2,175,570 
Due after four years through five years552,853 579,569 
Due after five years through fifteen years781,119 819,430 
Thereafter41,790 43,325 
Total par value$45,495,340 $45,292,226 

Table 3.4 - Advances by Current Interest Rate Terms
(dollars in thousands)
March 31, 2025 December 31, 2024
Fixed-rate$31,591,049 $33,207,447 
Variable-rate13,904,291 12,084,779 
Total par value$45,495,340  $45,292,226 

Credit Risk Exposure and Security Terms. Our advances are primarily made to our members, including commercial banks, insurance companies, savings institutions, and credit unions. We manage our credit exposure to secured member credit products through an integrated approach that generally includes credit limits for borrowers based on ongoing reviews of each borrower's financial condition, the amount and value of available collateral, and collateral and lending policies that are intended to limit risk of loss while balancing borrowers' needs for a reliable source of funding. For additional information on credit risk exposure and security terms see Part II — Item 8 — Financial Statements — Note 5 — Advances in the 2024 Annual Report.

The Bank’s decision to lend is based principally on our analysis of each borrower’s financial condition and outlook, though we consider payment status as well as the types and level of collateral as additional factors. At March 31, 2025, and December 31, 2024, we had rights to collateral, on a borrower-by-borrower basis, with an estimated value greater than our outstanding extensions of credit.
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We continue to evaluate and make changes to our collateral guidelines based on market conditions. At March 31, 2025, and December 31, 2024, none of our advances were past due, on nonaccrual status, or considered impaired. In addition, there were no modifications for borrowers experiencing financial difficulties related to advances during the three months ended March 31, 2025 and 2024.

Based upon the collateral held as security, our credit extension and collateral policies, management's credit analysis, and the repayment history on advances, we have not recorded any allowance for credit losses on our advances at March 31, 2025, and December 31, 2024.

Note 4 — Mortgage Loans Held for Portfolio

We invest in mortgage loans through the Mortgage Partnership Finance® (MPF®) program. These mortgage loans are either guaranteed or insured by federal agencies, as is the case with government mortgage loans, or are credit-enhanced, directly or indirectly, by the related entity that sold the loan (a participating financial institution), as is the case with conventional mortgage loans. All such investments are held for portfolio.

Table 4.1 - Mortgage Loans Held for Portfolio
(dollars in thousands)
 March 31, 2025December 31, 2024
Real estate  
Fixed-rate 15-year single-family mortgages
$150,676 $158,349 
Fixed-rate 20- and 30-year single-family mortgages
3,578,343 3,485,188 
Premiums
45,476 44,801 
Discounts
(6,218)(5,921)
Deferred derivative losses, net(810)(1,067)
Total mortgage loans held for portfolio(1)
3,767,467 3,681,350 
Less: allowance for credit losses(2,200)(2,200)
Total mortgage loans, net of allowance for credit losses$3,765,267 $3,679,150 
________________________
(1)    Excludes accrued interest receivable of $24.7 million and $23.8 million at March 31, 2025, and December 31, 2024, respectively.

Table 4.2 - Mortgage Loans Held for Portfolio by Collateral/Guarantee Type
(dollars in thousands)
 March 31, 2025December 31, 2024
Conventional mortgage loans$3,597,848  $3,509,254 
Government mortgage loans131,171  134,283 
Total par value$3,729,019  $3,643,537 

Credit-Enhancements. Our allowance for credit losses factors in the credit-enhancements associated with conventional mortgage loans under the MPF Program. These credit-enhancements apply after the homeowner's equity is exhausted and can include primary and/or supplemental mortgage insurance or other kinds of credit-enhancement. The credit risk analysis of our conventional loans is performed at the individual master commitment level to determine the credit-enhancements available to recover losses on loans under each individual master commitment. For additional information on credit enhancements see Part II — Item 8 — Financial Statements — Note 6 — Mortgage Loans Held for Portfolio — Credit-Enhancements in the 2024 Annual Report.

Payment Status of Mortgage Loans. Payment status is a key credit quality indicator for conventional mortgage loans and allows us to monitor borrower performance. A past due loan is one for which the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure. Tables 4.3 and 4.4 present the payment status for conventional mortgage loans and other delinquency statistics for all mortgage loans at March 31, 2025, and December 31, 2024.

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Table 4.3 - Credit Quality Indicator for Conventional Mortgage Loans
(dollars in thousands)
March 31, 2025
Year of Origination
Payment Status at Amortized Cost(1)
Prior to 20212021 to 2025Total
Past due 30-59 days delinquent$13,309 $6,901 $20,210 
Past due 60-89 days delinquent4,573 772 5,345 
Past due 90 days or more delinquent6,308 1,141 7,449 
Total past due24,190 8,814 33,004 
Total current loans1,740,433 1,860,623 3,601,056 
Total conventional mortgage loans$1,764,623 $1,869,437 $3,634,060 
December 31, 2024
Year of Origination
Payment Status at Amortized Cost(1)
Prior to 20202020 to 2024Total
Past due 30-59 days delinquent$18,396 $6,605 $25,001 
Past due 60-89 days delinquent4,808 1,851 6,659 
Past due 90 days or more delinquent5,419 692 6,111 
Total past due28,623 9,148 37,771 
Total current loans1,279,577 2,227,402 3,506,979 
Total conventional mortgage loans$1,308,200 $2,236,550 $3,544,750 
_________________________
(1)    Amortized cost excludes accrued interest receivable.

Table 4.4 - Other Delinquency Statistics of Mortgage Loans
(dollars in thousands)
March 31, 2025
Amortized Cost in Conventional Mortgage Loans Amortized Cost in Government Mortgage LoansTotal
In process of foreclosure (1)
$1,116 $1,025 $2,141 
Serious delinquency rate (2)
0.21 %1.60 %0.26 %
Past due 90 days or more still accruing interest$— $2,130 $2,130 
Loans on nonaccrual status (3)
$7,703 $— $7,703 
December 31, 2024
Amortized Cost in Conventional Mortgage LoansAmortized Cost in Government Mortgage LoansTotal
In process of foreclosure (1)
$1,144 $771 $1,915 
Serious delinquency rate (2)
0.17 %1.51 %0.22 %
Past due 90 days or more still accruing interest$— $2,060 $2,060 
Loans on nonaccrual status (3)
$6,111 $— $6,111 
_______________________
(1)    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu of foreclosure has been reported.
(2)    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the amortized cost of the total loan portfolio class.
(3)    As of March 31, 2025, and December 31, 2024, $3.0 million and $3.2 million, respectively, of conventional mortgage loans on nonaccrual status did not have an associated allowance for credit losses because either these loans were charged off or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans.
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Allowance for Credit Losses for Mortgage Loans.

Conventional Mortgage Loans. Conventional mortgage loans are evaluated collectively when similar risk characteristics exist. Conventional mortgage loans that do not share risk characteristics with other mortgage loans are evaluated for expected credit losses on an individual basis. We determine our allowance for credit losses on conventional mortgage loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. We use a discounted cash flow model to project our expected losses. We use a third-party model to project cash flows to estimate the expected credit losses over the life of the loans. The model relies on several inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior. We incorporate associated credit-enhancements and expected recoveries, if any, to determine our estimate of expected credit losses.

Certain conventional mortgage loans may be evaluated for credit losses by using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be made substantially through the sale of the underlying collateral. We estimate the fair value of this collateral by using a third-party property valuation model. The expected credit loss of a collateral dependent conventional mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. We reserve for these estimated losses or record a direct charge-off of the loan balance if certain triggering criteria are met.

Table 4.5 presents a roll forward of the allowance for credit losses on conventional mortgage loans for the three months ended March 31, 2025 and 2024.

Table 4.5 - Allowance for Credit Losses on Conventional Mortgage Loans
(dollars in thousands)
For the Three Months Ended March 31,
20252024
Allowance for credit losses (1)
Balance, beginning of period$2,200 $2,000 
Provision for credit losses— 600 
Balance, end of period$2,200 $2,600 
_________________________
(1)    These amounts exclude government mortgage loans because we make no allowance for credit losses based on our investments in government mortgage loans, as discussed below under — Government Mortgage Loans Held for Portfolio.

Government Mortgage Loans Held for Portfolio. We invest in government mortgage loans secured by one- to four-family residential properties. Government mortgage loans are mortgage loans insured or guaranteed by the Federal Housing Administration (the FHA), the U.S. Department of Veterans Affairs (the VA), the Rural Housing Service of the U.S. Department of Agriculture (RHS), or the U.S. Department of Housing and Urban Development (HUD).

Any losses incurred on these loans that are not recovered from the insurer or guarantor are absorbed by the related servicer. Therefore, we only have credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees, but in such instances, we will have recourse against the servicer for such failure. Due to government guarantees or insurance on our government loans, there is no allowance for credit losses for the government mortgage loan portfolio as of March 31, 2025, and December 31, 2024. Additionally, government mortgage loans are not placed on nonaccrual status due to the government guarantee or insurance on these loans and the contractual obligation of the loan servicers to repurchase their related loans when certain criteria are met.

"Mortgage Partnership Finance," "MPF," "eMPF" and "MPF Xtra" are registered trademarks of the Federal Home Loan Bank of Chicago.

Note 5 — Derivatives and Hedging Activities

Table 5.1 - Fair Value of Derivative Instruments
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(dollars in thousands)
March 31, 2025December 31, 2024
 Notional
Amount of
Derivatives		Derivative
Assets		Derivative
Liabilities		Notional
Amount of
Derivatives		Derivative
Assets		Derivative
Liabilities
Derivatives designated as hedging instruments   
Interest-rate swaps$45,511,056 $60,291 $(535,424)$46,232,807 $59,871 $(651,429)
Forward-start interest-rate swaps641,000 38 (70)741,000 224 — 
Total derivatives designated as hedging instruments46,152,056 60,329 (535,494)46,973,807 60,095 (651,429)
Derivatives not designated as hedging instruments
Interest-rate swaps2,783,851 1 (96)2,987,274 — (32)
Mortgage-delivery commitments (1)
70,674 158 (56)32,729 8 (108)
Total derivatives not designated as hedging instruments2,854,525 159 (152)3,020,003 8 (140)
Total notional amount of derivatives$49,006,581   $49,993,810   
Total derivatives before netting and collateral adjustments 60,488 (535,646)60,103 (651,569)
Netting adjustments and cash collateral, including related accrued interest (2)
 215,966 530,383 241,770 646,823 
Derivative assets and derivative liabilities $276,454 $(5,263)$301,873 $(4,746)
_______________________
(1)    Mortgage-delivery commitments are classified as derivatives with changes in fair value recorded in other income.
(2)    Amounts represent the effect of master-netting agreements intended to allow us to settle positive and negative positions with the same counterparty. Cash collateral posted, including accrued interest, was $761.3 million and $898.0 million at March 31, 2025, and December 31, 2024, respectively. The change in cash collateral posted is included in the net change in interest-bearing deposits in the statement of cash flows. Cash collateral received, including accrued interest, was $15.0 million and $9.4 million at March 31, 2025, and December 31, 2024.

Changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair-value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item. For designated cash-flow hedges, the entire change in the fair value of the hedging instrument (assuming it is included in the assessment of hedge effectiveness) is reported in other comprehensive income until the hedged transaction affects earnings. At that time, this amount is reclassified from other comprehensive income and recorded in net interest income in the same line as the earnings effect of the hedged item.

Table 5.2 presents the net gains (losses) on qualifying fair-value hedging relationships. Gains (losses) on derivatives include unrealized changes in fair value as well as net interest settlements.

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Table 5.2 - Net Gains (Losses) on Fair Value Hedging Relationships
(dollars in thousands)
For the Three Months Ended March 31, 2025
AdvancesAvailable-for-sale SecuritiesCO Bonds
Total interest income (expense) presented on the statements of operations$515,265 $193,732 $(574,214)
Gains (losses) on fair value hedging relationships
Changes in fair value:
Derivatives
$(63,777)$(169,500)$142,414 
Hedged items
62,645 167,297 (142,039)
Net changes in fair value before price alignment interest(1,132)(2,203)375 
Price alignment interest(1)
(1,254)(5,370)160 
Net interest settlements on derivatives(2)(3)
27,009 70,685 (81,591)
Net gains (losses) on qualifying hedging relationships24,623 63,112 (81,056)
Amortization/accretion of discontinued hedging relationships(224)10,035 564 
Net gains (losses) on derivatives and hedging activities recorded in net interest income$24,399 $73,147 $(80,492)

For the Three Months Ended March 31, 2024
AdvancesAvailable-for-sale SecuritiesCO Bonds
Total interest income (expense) presented on the statements of operations$528,497 $233,171 $(507,136)
Gains (losses) on fair value hedging relationships
Changes in fair value:
Derivatives
$100,432 $140,222 $(46,641)
Hedged items
(98,147)(137,177)46,384 
Net changes in fair value before price alignment interest2,285 3,045 (257)
Price alignment interest(1)
(860)(14,154)481 
Net interest settlements on derivatives(2)(3)
58,344 124,319 (162,260)
Net gains (losses) on qualifying hedging relationships59,769 113,210 (162,036)
Amortization/accretion of discontinued hedging relationships(351)— (1,506)
Net gains (losses) on derivatives and hedging activities recorded in net interest income$59,418 $113,210 $(163,542)
_______________________
(1)    Relates to derivatives for which variation margin payments are characterized as daily settled contracts.
(2)    Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.
(3)    Excludes the interest income/expense of the respective hedged items recorded in net interest income.

Table 5.3 presents the net gains (losses) on qualifying cash flow hedging relationships.

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Table 5.3 - Net (Losses) Gains on Cash Flow Hedging Relationships
(dollars in thousands)
For the Three Months Ended March 31,
 20252024
Forward-start interest rate swaps - CO Bonds
Gains (losses) reclassified from accumulated other comprehensive loss into interest expense$3,059 $(1,026)
(Losses) gains recognized in other comprehensive income(4,260)17,670 

For the three months ended March 31, 2025 and 2024, there were no reclassifications from accumulated other comprehensive income into earnings as a result of the discontinuance of cash-flow hedges because the original forecasted transactions were not expected to occur by the end of the originally specified period or within a two-month period thereafter. As of March 31, 2025, the maximum length of time over which we are hedging our exposure to the variability in future cash flows for forecasted transactions is six years.

As of March 31, 2025, the amount of deferred net gains (losses) on derivatives accumulated in other comprehensive income related to cash flow hedges expected to be reclassified to earnings during the next 12 months is $8.5 million.

Table 5.4 - Cumulative Basis Adjustments for Fair-Value Hedges
(dollars in thousands)

March 31, 2025
Line Item in Statement of Condition
Amortized Cost of Hedged Asset/ Liability(1)
Basis Adjustments for Active Hedging Relationships Included in Amortized CostBasis Adjustments for Discontinued Hedging Relationships Included in Amortized CostCumulative Amount of Fair Value Hedging Basis Adjustments
Advances$11,905,517 $(32,821)$4,875 $(27,946)
Available-for-sale securities11,068,511 (318,806)(320,054)(638,860)
Consolidated obligation bonds21,337,717 (444,993)24,610 (420,383)
_______________________
(1)    Includes only the amortized cost of hedged items in active fair-value hedging relationships.

Impacts on Statement of Cash Flows. Cash paid or received for cleared derivatives variation margin is included on the statement of cash flows in either net change in derivatives and hedging activities as an operating activity or net payments on derivatives with a financing element as a financing activity. The table below shows the impact of variation margin for cleared derivatives on the statement of cash flows:

Table 5.5 - Impact of Variation Margin for Cleared Derivatives on the Statement of Cash Flows
(dollars in thousands)
Increase (decrease) on Cash Flow Statement
For the Three Months Ended March 31,
20252024
Operating activity - net change in derivatives and hedging activities$(416,328)$173,602 
Financing activity - net receipts on derivatives with a financing element(7,665)20,553 
Total variation margin (paid) received on cleared derivatives$(423,993)$194,155 

Managing Credit Risk on Derivatives. We enter into derivatives that we clear (cleared derivatives) with a derivatives clearing organization (DCO), our counterparty for such derivatives. We also enter into derivatives that are not cleared (uncleared derivatives) under master-netting agreements. Derivatives that we use containing any optionality are not currently eligible for clearing. Accordingly, such derivatives, including the derivatives used to hedge issuance of callable CO bonds, are executed with our uncleared derivatives counterparties.

Certain of our uncleared derivatives master-netting agreements contain provisions that require us to post additional collateral with our uncleared derivatives counterparties if our credit rating is lowered to a certain level by Moody's Investors Service Inc.
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(Moody's) or Standard & Poor's Financial Services LLC (S&P). In the event of a split between such credit ratings, the lower rating governs. The aggregate fair value of all uncleared derivatives with these provisions that were in a net-liability position (before cash collateral and related accrued interest) at March 31, 2025, was $490.5 million for which we had delivered collateral with a post-haircut value of $487.1 million in accordance with the terms of the master-netting agreements. Securities collateral is subject to valuation haircuts in accordance with the terms of the master-netting arrangements. Table 5.6 sets forth the post-haircut value of incremental collateral that certain uncleared derivatives counterparties could have required us to deliver based on incremental credit rating downgrades at March 31, 2025.

Table 5.6 - Post Haircut Value of Incremental Collateral to be Delivered as of March 31, 2025
(dollars in thousands)
Ratings Downgrade (1)
FromToIncremental Collateral
AA+AA or AA-$— 
AA-A+, A or A-— 
A-below A-70,453 
_______________________
(1)    Ratings are expressed in this table according to S&P's conventions but include the equivalent of such rating by Moody's. If there is a split rating, the lower rating is used.

Cleared Derivatives. For cleared derivatives, the DCO is our counterparty. The DCO notifies the clearing member of the required initial and variation margin and our agent (clearing member) in turn notifies us. We utilize one of two DCOs, for each cleared derivative transaction, Chicago Mercantile Exchange, Inc. (CME Inc.) or LCH Limited (LCH Ltd). Based upon their rulebooks, we characterize variation margin payments as daily settlement payments, rather than as collateral. At both DCOs, posted initial margin is considered collateral. We post initial margin and exchange variation margin through a clearing member of the DCO which clears our trades, acts as our agent to the DCO, and guarantees our performance to the DCO, subject to the terms of relevant agreements. These arrangements expose us to credit risk in the event that one of our clearing members or one of the DCOs fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because the DCO, which is fully secured at all times through margin received from its clearing members, is substituted for the credit risk exposure of individual counterparties in uncleared derivatives, and collateral is posted at least once daily for changes in the fair value of cleared derivatives through a clearing member.

For cleared derivatives, the DCO determines initial margin requirements. Our clearing members, which are U.S. Commodity Futures Trading Commission-registered futures commission merchants, may require us to post margin in excess of DCO requirements based on our credit or other considerations, including but not limited to, credit rating downgrades.

Offsetting of Certain Derivatives. We present derivatives, any related cash collateral received or pledged, and associated accrued interest, on a net basis by counterparty.

We have analyzed the rights, rules, and regulations governing our cleared and uncleared derivatives and determined that those rights, rules, and regulations should result in a net claim with each of our counterparties (which, in the context of cleared derivatives is through each of our clearing members with the related DCO) upon an event of default of our counterparty (solely in the case of uncleared derivatives) or the bankruptcy, insolvency, or a similar proceeding involving our counterparty (and/or one of our clearing members, in the case of cleared derivatives). For this purpose, "net claim" generally means a single net amount reflecting the aggregation of all amounts owed by us to the relevant counterparty and payable to us from the relevant counterparty.

Table 5.7 presents separately the fair value of derivatives that are subject to netting due to a legal right of offset based on the terms of our master netting arrangements or similar agreements as of March 31, 2025, and December 31, 2024, which includes cleared and uncleared interest rate swaps, and the fair value of derivatives that are not subject to such netting, which includes mortgage delivery commitments and CO bond firm commitments. Derivatives subject to netting include any related cash collateral received from or pledged to counterparties.

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Table 5.7 - Netting of Derivative Assets and Derivative Liabilities
(dollars in thousands)
March 31, 2025
Derivative Instruments Meeting Netting Requirements
Gross Recognized AmountGross Amounts of Netting Adjustments and Cash CollateralDerivative Instruments Not Meeting Netting RequirementsTotal Derivative Assets and Total Derivative Liabilities
Derivative Assets
Interest-rate swaps
Uncleared$57,481 $(56,405)$1,076 
Cleared2,850 272,370 275,220 
Mortgage delivery commitments$158 158 
Total$276,454 
Derivative Liabilities
Interest-rate swaps
Uncleared$(533,746)$528,539 $(5,207)
Cleared(1,844)1,844 — 
Mortgage delivery commitments$(56)(56)
Total$(5,263)

December 31, 2024
Derivative Instruments Meeting Netting Requirements
Gross Recognized AmountGross Amounts of Netting Adjustments and Cash CollateralDerivative Instruments Not Meeting Netting RequirementsTotal Derivative Assets and Total Derivative Liabilities
Derivative Assets
Interest-rate swaps
Uncleared$56,360 $(55,375)$985 
Cleared3,735 297,145 300,880 
Mortgage delivery commitment$8 8 
Total$301,873 
Derivative Liabilities
Interest-rate swaps
Uncleared$(651,106)$646,468 $(4,638)
Cleared(355)355 — 
Mortgage delivery commitment$(108)(108)
Total$(4,746)

Note 6 — Deposits

We offer demand and overnight deposits for members and qualifying nonmembers. Members that service mortgage loans may deposit funds collected in connection with mortgage loans pending disbursement of such funds, which we classify as "other" in the following table.

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Table 6.1 - Deposits
(dollars in thousands)
 March 31, 2025 December 31, 2024
Interest-bearing  
Demand and overnight$778,434  $842,062 
Noninterest-bearing   
Other31,819  35,019 
Total deposits$810,253  $877,081 

None of the deposits are federally insured.

Note 7 — Consolidated Obligations

CO Bonds. CO bonds for which we have received issuance proceeds and are primarily liable were as follows:

Table 7.1 - CO Bonds Outstanding by Contractual Maturity
(dollars in thousands)
 March 31, 2025December 31, 2024
Amount 
Weighted
Average
Rate (1)
Amount
Weighted
Average
Rate (1)
Due in one year or less$36,577,100  4.00 %$27,884,310  4.08 %
Due after one year through two years8,193,750  2.57 7,948,755  2.15 
Due after two years through three years3,159,250  3.47 3,545,350  3.31 
Due after three years through four years3,454,605  3.45 3,889,675  3.40 
Due after four years through five years2,649,165  4.44 2,151,145 4.10 
Thereafter3,580,590 3.59 3,322,820  3.45 
Total par value57,614,460  3.73 %48,742,055 3.62 %
Premiums21,948   24,852  
Discounts(12,886) (12,877) 
Hedging adjustments(420,383)  (561,859) 
Total$57,203,139   $48,192,171  
_______________________
(1)    The CO bonds' weighted-average rate excludes concession fees.

Table 7.2 - CO Bonds Outstanding by Early Redemption Feature
(dollars in thousands)
March 31, 2025 December 31, 2024
Noncallable and nonputable$38,787,460  $30,786,555 
Callable18,827,000  17,955,500 
Total par value$57,614,460  $48,742,055 

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Table 7.3 - CO Bonds Outstanding by Earlier of Contractual Maturity or Next Call Date
(dollars in thousands)
March 31, 2025December 31, 2024
Due in one year or less$48,045,100 $39,328,810 
Due after one year through two years4,097,750 3,976,755 
Due after two years through three years1,875,250 1,639,850 
Due after three years through four years1,858,605 2,024,675 
Due after four years through five years434,165 346,145 
Thereafter1,303,590 1,425,820 
Total par value$57,614,460 $48,742,055 

Table 7.4 - CO Bonds by Interest Rate-Payment Type
(dollars in thousands)
March 31, 2025 December 31, 2024
Fixed-rate$28,371,960  $29,530,555 
Simple variable-rate24,545,500  14,194,500 
Step-up (1)
4,697,000  5,017,000 
Total par value$57,614,460  $48,742,055 
_______________________
(1)    Step-up bonds pay interest at increasing fixed rates for specified intervals over the life of the CO bond and can be called at our option on the step-up dates.

CO Discount Notes. Outstanding CO discount notes for which we were primarily liable, all of which are due within one year, were as follows:

Table 7.5 - CO Discount Notes Outstanding
(dollars in thousands)
 Book Value Par Value 
Weighted Average
Rate (1)
March 31, 2025$14,301,193  $14,402,471  4.26 %
December 31, 2024$18,546,504  $18,661,769  4.49 %
_______________________
(1)    CO discount notes' weighted-average rate represents a yield to maturity excluding concession fees.

Note 8 — Affordable Housing Program and Discretionary Contributions

Table 8.1 - AHP Liability
(dollars in thousands)
For the Three Months Ended March 31,
20252024
Balance at beginning of year$104,300 $87,164 
AHP expense for the period6,342 8,664 
AHP voluntary contribution4,434 — 
AHP direct grant disbursements(2,686)(1,927)
AHP subsidy for AHP advance disbursements(102)(639)
Balance at end of period$112,288 $93,262 

Other discretionary housing and community investment programs consist of grants and subsidies to support other housing and community investment initiatives (non-AHP) and are recorded in other liabilities in the statement of condition.

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Table 8.2 - Discretionary Housing and Community Investments Liability
(dollars in thousands)
For the Three Months Ended March 31,
20252024
Balance at beginning of period$2,390 $— 
Discretionary housing and community investment expense for the period4,817 2,304 
Direct grant disbursements(479)— 
Subsidy for advance disbursements(2,599)(332)
Balance at end of period$4,129 $1,972 

Note 9 — Capital

Regulatory Capital Requirements. We are subject to three capital requirements at all times under our Capital Plan, the Federal Home Loan Bank Act of 1932 (as amended, the FHLBank Act), and FHFA regulations and guidance:

1.    Risk-based capital. We are required to maintain permanent capital, defined as the amounts paid-in for Class B stock and retained earnings, in an amount at least equal to the sum of our credit-risk, market-risk, and operational-risk capital requirements, all of which are calculated in accordance with FHFA rules and regulations, referred to herein as the risk-based capital requirement.

2.    Total regulatory capital. We are required to maintain a total capital-to-assets ratio of at least four percent. Regulatory capital is the sum of permanent capital, the amount of any general loss allowance if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses.

3.    Leverage capital. We are required to maintain a leverage capital-to-assets ratio of at least five percent. Leverage capital is defined as the sum of permanent capital weighted 1.5 times and all other components of total capital.

The FHFA has authority to require us to maintain greater minimum capital levels than are required based on FHFA rules and regulations.

Table 9.1 - Regulatory Capital Requirements
(dollars in thousands)
 March 31, 2025December 31, 2024
 RequiredActualRequiredActual
Risk-based capital$664,440 $4,140,344 $640,669 $4,112,953 
Regulatory capital$3,071,766 $4,140,344 $2,879,719 $4,112,953 
Capital-to-asset ratio4.0 %5.4 %4.0 %5.7 %
Leverage capital$3,839,708 $6,210,516 $3,599,648 $6,169,430 
Leverage capital-to-assets ratio5.0 %8.1 %5.0 %8.6 %

We are a cooperative whose members own most of our capital stock. Former members, including certain nonmembers that own our capital stock as a result of merger or acquisition, relocation, or involuntary termination of membership, own the remaining capital stock to support business transactions still carried on our statement of condition or, for a small amount of capital stock held by former members, until the five-year redemption period applicable to their membership stock is complete. Shares of capital stock cannot be purchased or sold except between us and our members at $100 per share par value. Each member is required to purchase Class B stock equal to 0.05 percent of the value of the member's total assets measured as of December 31 of the preceding year, subject to a current minimum balance of $10 thousand and a current maximum balance of $5 million (the membership stock investment requirement), and 3.00 percent for overnight advances, 4.00 percent for all other advances, 0.25 percent for outstanding standby letters of credit, and 4.50 percent of the par value of certain mortgage loans we purchased through the MPF Program (collectively, the activity-based stock-investment requirement). The sum of the membership stock investment requirement and the activity-based stock investment requirement, rounded up to the nearest whole share, represents the total stock investment requirement.
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Mandatorily Redeemable Capital Stock. 

Table 9.2 - Mandatorily Redeemable Capital Stock by Expiry of Redemption Notice Period
(dollars in thousands)
March 31, 2025December 31, 2024
Past redemption date (1)
$2,489 $2,669 
Due in one year or less689 435 
Due after one year through two years— 689 
Due after two years through three years960 960 
Due after three years through four years333 333 
Due after four years through five years— — 
Total$4,471 $5,086 
_______________________
(1)    Amount represents mandatorily redeemable capital stock that has reached the end of the five-year redemption-notice period but the member-related activity (for example, advances) remains outstanding. Accordingly, these shares of capital stock will not be redeemed until the activity is no longer outstanding.

Restricted Retained Earnings. At March 31, 2025, our restricted retained earnings contribution requirement totaled $716.9 million. At March 31, 2025, and December 31, 2024, restricted retained earnings totaled $520.6 million and $509.2 million, respectively. These restricted retained earnings are not available to pay dividends.

Note 10 — Accumulated Other Comprehensive Income (Loss)
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Table 10.1 - Accumulated Other Comprehensive Income (Loss)
(dollars in thousands)
Net Unrealized Gain (Loss) on Available-for-sale SecuritiesNet Unrealized Gain (Loss) Relating to Hedging ActivitiesPension and Postretirement BenefitsTotal Accumulated Other Comprehensive Gain (Loss)
Balance, December 31, 2023$(341,252)$45,964 $749 $(294,539)
Cumulative effect of change in accounting principle
Other comprehensive income (loss) before reclassifications:
Net unrealized gains32,931 17,670 — 50,601 
Reclassifications from other comprehensive income to net income
Amortization - hedging activities (1)
— 1,026 — 1,026 
Other comprehensive income32,931 18,696 — 51,627 
Balance, March 31, 2024$(308,321)$64,660 $749 $(242,912)
Balance, December 31, 2024$(321,245)$64,526 $1,697 $(255,022)
Other comprehensive income (loss) before reclassifications:
Net unrealized gains (losses)47,747 (4,260)— 43,487 
Reclassifications from other comprehensive income to net income
Amortization - hedging activities (1)
— (3,059)— (3,059)
Amortization - pension and postretirement benefits (2)
— — (389)(389)
Other comprehensive income (loss)47,747 (7,319)(389)40,039 
Balance, March 31, 2025$(273,498)$57,207 $1,308 $(214,983)
_______________________
(1)    Recorded in CO bond interest expense in the statement of operations.
(2)    Recorded in other expenses in the statement of operations.

Note 11 — Fair Values

A fair-value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. A description of the application of the fair-value hierarchy, valuation techniques, and significant inputs is disclosed in Part II — Item 8 — Financial Statements — Note 14 — Fair Values in the 2024 Annual Report. There have been no material changes in the fair-value hierarchy classification of financial assets and liabilities, valuation techniques, or significant inputs during the three months ended March 31, 2025.

Table 11.1 presents the carrying value, fair value, and fair value hierarchy of our financial assets and liabilities at March 31, 2025, and December 31, 2024. We record trading securities, available-for-sale securities, derivative assets, derivative liabilities, and certain other assets at fair value on a recurring basis and certain mortgage loans at fair value on a non-recurring basis. We record all other financial assets and liabilities at amortized cost. Refer to Table 11.2 for further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis.

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Table 11.1 - Fair Value Summary
(dollars in thousands)
 March 31, 2025
 Carrying
Value		Total Fair ValueLevel 1Level 2Level 3
Netting Adjustments and Cash Collateral(2)
Financial instruments  
Assets:  
Cash and due from banks$26,697 $26,697 $26,697 $— $— $— 
Interest-bearing deposits1,541,322 1,541,322 1,541,322 — — — 
Securities purchased under agreements to resell3,750,000 3,749,996 — 3,749,996 — — 
Federal funds sold5,067,000 5,066,995 — 5,066,995 — — 
Trading securities(1)
1,482 1,482 — 1,482 — — 
Available-for-sale securities(1)
16,545,645 16,545,645 — 16,538,998 6,647 — 
Held-to-maturity securities60,119 60,194 — 60,194 — — 
Advances45,427,914 45,393,111 — 45,393,111 — — 
Mortgage loans, net3,765,267 3,503,316 — 3,487,181 16,135 — 
Accrued interest receivable257,974 257,974 — 257,974 — — 
Derivative assets(1)
276,454 276,454 — 60,488 — 215,966 
Other assets (1)
28,068 28,068 16,372 11,696 — — 
Liabilities: 
Deposits(810,253)(810,230)— (810,230)— — 
COs:
Bonds(57,203,139)(57,050,960)— (57,050,960)— — 
Discount notes(14,301,193)(14,300,020)— (14,300,020)— — 
Mandatorily redeemable capital stock(4,471)(4,471)(4,471)— — — 
Accrued interest payable(366,601)(366,601)— (366,601)— — 
Derivative liabilities(1)
(5,263)(5,263)— (535,646)— 530,383 
Other:
Commitments to extend credit for advances— (1,342)— (1,342)— — 
Standby letters of credit(1,347)(1,347)— (1,347)— — 


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December 31, 2024
 Carrying
Value		Total Fair
Value		Level 1Level 2Level 3
Netting Adjustments and Cash Collateral(2)
Financial instruments  
Assets:  
Cash and due from banks$5,149 $5,149 $5,149 $— $— $— 
Interest-bearing deposits1,958,353 1,958,353 1,958,353 — — — 
Securities purchased under agreements to resell1,500,000 1,500,003 — 1,500,003 — — 
Federal funds sold2,505,000 2,504,990 — 2,504,990 — — 
Trading securities(1)
1,489 1,489 — 1,489 — — 
Available-for-sale securities(1)
16,470,908 16,470,908 — 16,464,257 6,651 — 
Held-to-maturity securities63,318 63,197 — 63,197 — — 
Advances45,163,175 45,080,045 — 45,080,045 — — 
Mortgage loans, net3,679,150 3,355,769 — 3,343,100 12,669 — 
Accrued interest receivable262,203 262,203 — 262,203 — — 
Derivative assets(1)
301,873 301,873 — 60,103 — 241,770 
Other assets(1)
32,738 32,738 20,742 11,996 — — 
Liabilities:  
Deposits(877,081)(877,035)— (877,035)— — 
COs:
Bonds(48,192,171)(47,928,851)— (47,928,851)— — 
Discount notes(18,546,504)(18,549,008)— (18,549,008)— — 
Mandatorily redeemable capital stock(5,086)(5,086)(5,086)— — — 
Accrued interest payable(328,596)(328,596)— (328,596)— — 
Derivative liabilities(1)
(4,746)(4,746)— (651,569)— 646,823 
Other:
Commitments to extend credit for advances— (1,264)— (1,264)— — 
Standby letters of credit(1,266)(1,266)— (1,266)— — 
_______________________
(1)Carried at fair value and measured on a recurring basis.
(2)These amounts represent the effect of master-netting agreements intended to allow us to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing member and/or counterparty.

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Fair Value Measured on a Recurring and Nonrecurring Basis.

Table 11.2 - Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis
(dollars in thousands)
March 31, 2025
 Level 1Level 2Level 3
Netting Adjustments and Cash Collateral (1)
Total
Assets:     
Carried at fair value on a recurring basis
Trading securities:
Corporate bonds$— $1,482 $— $— $1,482 
Available-for-sale securities:     
U.S. Treasury obligations— 5,893,149 — — 5,893,149 
HFA securities— — 6,647 — 6,647 
Supranational institutions— 337,358 — — 337,358 
U.S. government-owned corporations— 226,607 — — 226,607 
GSE— 96,532 — — 96,532 
U.S. government guaranteed – single-family MBS— 156,932 — — 156,932 
U.S. government guaranteed – multifamily MBS— 461,189 — — 461,189 
GSE – single-family MBS— 1,884,026 — — 1,884,026 
GSE – multifamily MBS— 7,483,205 — — 7,483,205 
Total available-for-sale securities— 16,538,998 6,647 — 16,545,645 
Derivative assets:     
Interest-rate-exchange agreements— 60,330 — 215,966 276,296 
Mortgage delivery commitments— 158 — — 158 
Total derivative assets— 60,488 — 215,966 276,454 
Other assets16,372 11,696 — — 28,068 
Total assets carried at fair value on a recurring basis$16,372 $16,612,664 $6,647 $215,966 $16,851,649 
Liabilities:     
Carried at fair value on a recurring basis
Derivative liabilities     
Interest-rate-exchange agreements$— $(535,590)$— $530,383 $(5,207)
Mortgage delivery commitments— (56)— — (56)
Total liabilities carried at fair value on a recurring basis$— $(535,646)$— $530,383 $(5,263)


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December 31, 2024
 Level 1Level 2Level 3
Netting
Adjustments and Cash Collateral(1)
Total
Assets:     
Carried at fair value on a recurring basis
Trading securities:
Corporate bonds$— $1,489 $— $— $1,489 
Available-for-sale securities:     
U.S. Treasury obligations— 5,807,665 — — 5,807,665 
HFA securities— — 6,651 — 6,651 
Supranational institutions— 337,352 — — 337,352 
U.S. government-owned corporations— 221,769 — — 221,769 
GSE— 94,614 — — 94,614 
U.S. government guaranteed – single-family MBS— 179,052 — — 179,052 
U.S. government guaranteed – multifamily MBS— 464,823 — — 464,823 
GSE – single-family MBS— 1,953,153 — — 1,953,153 
GSE – multifamily MBS— 7,405,829 — — 7,405,829 
Total available-for-sale securities— 16,464,257 6,651 — 16,470,908 
Derivative assets:     
Interest-rate-exchange agreements— 60,095 — 241,770 301,865 
Mortgage delivery commitments— 8 — — 8 
Total derivative assets— 60,103 — 241,770 301,873 
Other assets20,742 11,996 — — 32,738 
Total assets carried at fair value on a recurring basis$20,742 $16,537,845 $6,651 $241,770 $16,807,008 
Liabilities:     
Carried at fair value on a recurring basis
Derivative liabilities     
Interest-rate-exchange agreements$— $(651,461)$— $646,823 $(4,638)
Mortgage delivery commitments— (108)— — (108)
Total liabilities carried at fair value on a recurring basis$— $(651,569)$— $646,823 $(4,746)
_______________________
(1)    These amounts represent the effect of master-netting agreements intended to allow us to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing member and/or counterparty.

Table 11.3 presents a reconciliation of available-for-sale securities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2025 and 2024.

Table 11.3 - Roll Forward of Level 3 Available-for-Sale HFA Securities
(dollars in thousands)
For the Three Months Ended March 31,
20252024
Balance at beginning of period$6,651 $21,805 
Total (losses) gains included in other comprehensive income
Net unrealized (losses) gains(4)163 
Balance at end of period$6,647 $21,968 
Total amount of unrealized (losses) gains for the period included in other comprehensive income relating to securities held at period end$(4)$163 

Note 12 — Commitments and Contingencies
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Joint and Several Liability. COs are backed by the financial resources of the 11 district Federal Home Loan Banks (the FHLBanks). The FHFA has authority to require any FHLBank to repay all or a portion of the principal and interest on COs for which another FHLBank is the primary obligor. No FHLBank has ever been asked or required to repay the principal or interest on any CO on behalf of another FHLBank. We evaluate the financial condition of the other FHLBanks primarily based on known regulatory actions, publicly available financial information, and individual long-term credit-rating action as of each period-end presented. Based on this evaluation, as of March 31, 2025, and through the filing of this report, we do not believe it is likely that we will be required to repay the principal or interest on any CO on behalf of another FHLBank.

We have considered applicable FASB guidance and determined it is not necessary to recognize a liability for the fair value of our joint and several liability for all of the COs. The joint and several obligation is mandated by the FHLBank Act, as implemented by FHFA regulations, and is not the result of an arms-length transaction among the FHLBanks. The FHLBanks have no control over the amount of the guaranty or the determination of how each FHLBank would perform under the joint and several obligation. Because the FHLBanks are subject to the authority of the FHFA as it relates to decisions involving the allocation of the joint and several liability for the FHLBanks' COs, the FHLBanks' joint and several obligation is excluded from the initial recognition and measurement provisions. Accordingly, we have not recognized a liability for our joint and several obligation related to other FHLBanks' COs at March 31, 2025, and December 31, 2024. The par amounts of other FHLBanks' outstanding COs for which we are jointly and severally liable totaled $1.1 trillion at both March 31, 2025, and December 31, 2024. See Note 7 — Consolidated Obligations for additional information.

Off-Balance-Sheet Commitments

Table 12.1 - Off-Balance Sheet Commitments (1)
(dollars in thousands)
March 31, 2025December 31, 2024
Expire within one yearExpire after one yearTotalTotal
Standby letters of credit outstanding (2)
$7,955,243 $336,094 $8,291,337 $8,117,979 
Commitments for unused lines of credit - advances (3)
1,107,549 — 1,107,549 1,101,205 
Commitments to make additional advances112,900 32,405 145,305 92,925 
Commitments to invest in mortgage loans70,674 — 70,674 32,729 
Unsettled CO bonds, at par597,750 — 597,750 967,000 
Unsettled CO discount notes, at par— — — 314,000 
__________________________
(1)    We have determined that it is unnecessary to record any liability for credit losses on these agreements based on our credit extension and collateral policies.
(2)    The amount of standby letters of credit outstanding excludes commitments to issue standby letters of credit. At March 31, 2025, and December 31, 2024, commitments to issue standby letters of credit that expire within one year totaled $59.9 million and $30.4 million, respectively.
(3)    Commitments for unused line-of-credit advances are generally for periods of up to 12 months. Since many of these commitments are not expected to be drawn upon, the total commitment amount does not necessarily indicate future liquidity requirements.

Standby Letters of Credit. At March 31, 2025, the outstanding standby letters of credit issued expire no later than 2039. Currently, we offer new standby letters of credit with terms typically up to 10 years, while terms greater than 10 years may be available on an exception basis. Unearned fees for the value of the guarantees related to standby letters of credit are recorded in other liabilities and totaled $1.3 million at both March 31, 2025, and December 31, 2024.

Commitments to Invest in Mortgage Loans. Commitments to invest in mortgage loans are generally for periods not to exceed 60 business days. Such commitments are recorded as derivatives at their fair values on the statement of condition.

Pledged Collateral. We have pledged securities as collateral related to derivatives. See Note 5 — Derivatives and Hedging Activities for additional information about our pledged collateral and other credit-risk-related contingent features.

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Legal Proceedings. We are subject to various legal proceedings arising in the normal course of business from time to time. We would record an accrual for a loss contingency when it is probable that a loss has been incurred and the amount can be reasonably estimated. Management does not anticipate that the ultimate liability, if any, arising out of these matters will have a material effect on our financial condition, results of operations, or cash flows.

Note 13 — Transactions with Shareholders

Shareholder Concentrations. We consider shareholder concentrations as holdings of capital stock (including mandatorily redeemable capital stock) by individual members or nonmembers in excess of 10 percent of total capital stock outstanding.

Table 13.1 - Shareholder Concentrations, Balance Sheet
(dollars in thousands)
Capital Stock
Outstanding		 Percent
of Total Capital Stock		Par
Value of
Advances		 Percent of Total Par Value
of Advances		Total Accrued
Interest
Receivable		 Percent of Total
Accrued Interest
Receivable on
Advances
March 31, 2025
State Street Bank and Trust Company$477,600 21.6 %$11,815,000 26.0 %$90,670 47.7 %
December 31, 2024
State Street Bank and Trust Company$400,600 18.2 %$9,815,000 21.7 %$75,756 40.2 %

We held sufficient collateral to support the advances to the above institution such that we do not expect to incur any credit losses on these advances.

Transactions with Directors' Institutions. We provide, in the ordinary course of business, products and services to members whose officers or directors serve on our board of directors. In accordance with FHFA regulations, transactions with directors' institutions are conducted on the same terms as those with any other member.

Table 13.2 - Transactions with Directors' Institutions
(dollars in thousands)
Capital Stock
Outstanding		 Percent
of Total Capital Stock		Par
Value of
Advances		 Percent of Total Par Value
of Advances		Total Accrued
Interest
Receivable		 Percent of Total
Accrued Interest
Receivable on
Advances
March 31, 2025$10,199 0.5 %$131,314 0.3 %$289 0.2 %
December 31, 202429,365 1.3 180,954 0.4 528 0.3 

Note 14 — Subsequent Events

On April 25, 2025, the board of directors declared a cash dividend at an annualized rate of 7.39 percent based on daily average capital stock balances outstanding during the first quarter of 2025. The dividend, including dividends classified as interest on mandatorily redeemable capital stock, amounted to $40.8 million and was paid on May 2, 2025.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Index to Management's Discussion and Analysis of Financial Condition and Results of Operations
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Forward-Looking Statements

This report includes statements describing anticipated developments, projections, estimates, or predictions of ours that are “forward-looking statements.” These statements may involve matters related to, but not limited to, projections of revenues, income, earnings, capital expenditures, dividends, capital structure, or other financial items; repurchases of excess stock, our minimum retained earnings target, or the interest-rate environment in which we do business; statements of management’s plans or objectives for future operations; expectations of effects or changes in fiscal and monetary policies and our future economic performance; or statements of assumptions underlying certain of the foregoing types of statements. These statements may use forward-looking terminology such as, but not limited to, “anticipates,” “believes,” “continued,” “expects,” “plans,” “intends,” “may,” “could,” “estimates,” “assumes,” “should,” “will,” “likely,” or their negatives or other variations of these terms. We caution that, by their nature, forward-looking statements are subject to a number of risks or uncertainties, including the risk factors set forth in Part I — Item 1A — Risk Factors in the 2024 Annual Report and Part II — Item 1A — Risk Factors of this report and the risks set forth below. Actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. As a result, you are cautioned not to place undue reliance on such statements.

These forward-looking statements involve risks and uncertainties including, but not limited to, the following:

•the effects of economic, financial, credit, and market conditions on our financial and regulatory condition and results of operations, including changes in economic growth, general liquidity conditions, inflation and deflation, employment rates, interest rates, interest-rate spreads, interest-rate volatility, mortgage originations, prepayment activity, housing prices, asset delinquencies, members’ deposit flows, liquidity needs, and loan demand; changes in the general economy, including changes resulting from U.S. fiscal and monetary policy, including international trade policy and tariffs, actions of the Federal Open Market Committee (FOMC), or changes in credit ratings of the U.S. federal government; and the condition of the mortgage and housing markets on our mortgage-related assets; and the condition of the capital markets on our COs;
•political events, including legislative, regulatory, judicial, government actions, including executive orders, or other developments that affect the Bank, its members, investors in the consolidated obligations of the FHLBanks, the FHFA, the organization and structure of the FHLBank System, our ability to access the capital markets, or our counterparties, such as any GSE legislative reforms, any changes resulting from the FHFA’s comprehensive review and analysis of the FHLBank System, changes to the FHLBank Act, or changes to other statutes or regulations applicable to the FHLBanks;
•our ability to declare and pay dividends consistent with past practices as well as any plans to repurchase excess capital stock, and any amendments to our Capital Plan;
•competitive forces including, without limitation, other sources of funding available to our members and other entities borrowing funds in the capital markets;
•changes in the value and liquidity of collateral we hold as security for obligations of our members and counterparties;
•the impact of new accounting standards and the application of accounting rules, including the impact of regulatory guidance on our application of such standards and rules;
•changes in the fair value and economic value of, impairments of, and risks associated with the Bank’s investments in mortgage loans and MBS or other assets and the related credit-enhancement protections;
•membership conditions and changes, including changes resulting from member failures, mergers or changing financial health, changes due to member eligibility, changes in the principal place of business of members, or the addition of new members;
•external events, such as general economic and financial instabilities, political instability, wars, pandemics and other health emergencies, and natural disasters, including disasters caused by significant climate change, which, among other things, could damage our facilities or the facilities of our members, damage or destroy collateral that members have pledged to
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secure advances or mortgages that we hold for our portfolio, and which could cause us to experience losses or be exposed to a greater risk that pledged collateral would be inadequate in the event of a default;
•the pace of technological change and our ability to develop and support internal controls, information systems, and other operating technologies that effectively manage the risks we face including, but not limited to, failures, interruptions, or security breaches and other cybersecurity incidents; and
•our ability to attract and retain skilled employees, including our key personnel.

These forward-looking statements speak only as of the date they are made, and we do not undertake to update any forward- looking statement herein or that may be made from time to time on our behalf.

The Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our interim financial statements and notes, which begin on page three, and the 2024 Annual Report.

EXECUTIVE SUMMARY

Net income decreased $20.9 million to $57.0 million for the three months ended March 31, 2025, from $77.8 million for 2024. The decrease in net income was primarily due to a decrease of $16.5 million in net interest income after provision for credit losses and a $4.4 million increase in AHP voluntary contributions.

Net interest income after provision for credit losses for the three months ended March 31, 2025, was $92.8 million, compared with $109.2 million for the corresponding period in 2024. The $16.5 million decrease in net interest income after provision for credit losses was primarily driven by the decrease in yields during the three months ended March 31, 2025, along with an $8.0 million unfavorable variance in net unrealized gains and losses on fair value hedge ineffectiveness, and a $5.1 million increase in mortgage-backed security net amortization, both attributable to a decrease in intermediate- and long-term interest rates during the three months ended March 31, 2025. Partially offsetting these decreases were increases to net interest income resulting from increases of $6.2 billion, $923.5 million, and $623.3 million in our average advances, average mortgage-backed securities and average mortgage loan portfolios, respectively. Additionally, a $426.9 million increase in average capital contributed to the growth in net interest income.

Total assets increased $4.8 billion to $76.8 billion over the three months ended March 31, 2025. Advances totaled $45.4 billion at March 31, 2025, an increase of $264.7 million from December 31, 2024. At March 31, 2025, investment securities and short-term money-market investments totaled $27.0 billion, an increase of $4.5 billion from December 31, 2024, comprised primarily of a $4.4 billion increase in short-term investments, as we bolstered our liquidity position in the first quarter of 2025 when market volatility and uncertainty were heightened. Mortgage loans totaled $3.8 billion, an increase of $86.1 million from December 31, 2024.

Our retained earnings grew to $1.9 billion at March 31, 2025, an increase of $15.8 million from December 31, 2024, equaling 2.5 percent of total assets at March 31, 2025. We continue to satisfy all regulatory capital requirements as of March 31, 2025.

On April 25, 2025, our board of directors declared a cash dividend that was equivalent to an annual yield of 7.39 percent on the average daily balance of capital stock outstanding during the first quarter of 2025. The yield is equivalent to the approximate daily average of secured overnight financing rate (SOFR) for the first quarter of 2025 plus 300 basis points.

Our overall results of operations are influenced by the economy, interest rates, members’ demand for liquidity, and our ability to maintain sufficient access to funding at relatively favorable costs.

Generally, investor demand for high credit quality, fixed-income investments, including COs, continued to be strong relative to other investments. Yield spreads on CO debt relative to benchmark yields for comparable debt remained relatively stable during the period covered by this report. Our flexibility in utilizing various funding tools, in combination with a diverse investor base and our status as a government-sponsored enterprise, have helped provide reliable market access and demand for COs throughout fluctuating market environments and regulatory changes affecting dealers of and investors in COs. The Bank has continued to meet all funding needs during the three months ended March 31, 2025.

Net Interest Margin and Spread

Net interest spread was 0.22 percent for the three months ended March 31, 2025, a decrease of nine basis points from the three months ended March 31, 2024, and net interest margin was 0.49 percent, a decrease of 18 basis points from the three months
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ended March 31, 2024. The decrease in net interest spread and margin was primarily attributable to the decline in net interest income after provision for credit losses discussed above, resulting from a decrease in yields.

Housing and Community Investment Programs

In addition to providing a readily available, competitively-priced source of funds to members, one of our core missions is to support affordable housing and community investment. We administer a number of programs that are targeted to fulfill that mission, some of which are statutory, and some are discretionary. For additional information on these specific programs, see Part I — Item 1 — Business — Targeted Housing and Community Investment Programs in the 2024 Annual Report.

We are required to annually set aside a portion of our earnings for our Affordable Housing Program. These funds assist members serving very low-, low-, and moderate-income households and support community economic development. The Bank's net income for the three months ended March 31, 2025, resulted in an accrual of $6.3 million to the AHP pool of funds that will be available to members in 2026. Contributions made to our discretionary housing and community investment program reduce the Bank’s net income for the year, therefore reducing our statutory accrual of funds to the AHP pool. The Bank's board of directors continued its commitment to affordable housing by making a voluntary AHP contribution of $4.4 million for the three months ended March 31, 2025.

Table 1 - Statutory AHP Assessment and Voluntary AHP Contributions
(dollars in thousands)
For the Three Months Ended March 31, 2025
Net income subject to AHP statutory assessment$63,419 
Statutory AHP percentage10 %
Statutory AHP assessment6,342 
AHP voluntary contributions4,434 
Total contribution to the AHP$10,776 

The combined amounts of our required AHP assessments and voluntary contributions to AHP totaled $10.8 million and $8.7 million for the three months ended March 31, 2025 and 2024, respectively.

Discretionary housing and community investment program expenses are shown in the table below, by program.

Table 2 - Discretionary Housing and Community Investment Program Expenses
(dollars in thousands)
Program
For the Three Months Ended March 31, 2025
Affordable housing
MPF permanent rate buy-down program$404 
Economic development
JNE program2,353 
CDFIs
CDFI advance program2,060 
Total discretionary housing and community investment program expenses$4,817 

Legislative and Regulatory Developments

Legislation has been proposed or enacted, and the FHFA and others with authority over the economy, our industry, and our business activities have taken action during 2025 as described in Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Legislative and Regulatory Developments. Such developments affect the way we conduct business and could impact how we satisfy our mission as well as the value of membership in the Bank.

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ECONOMIC CONDITIONS

Economic Environment

Real gross domestic product (GDP) contracted at an annual rate of 0.3 percent in the first quarter of 2025. This contraction was driven mainly by an increase in imports and a decrease in government spending.

Employment increased each month of the first quarter with job gains of 111,000, 102,000, and 185,000 in January, February, and March 2025, respectively. In April 2025, employment grew by 177,000 jobs and the unemployment rate was 4.2 percent. The unemployment rate for the New England region in March 2025 was 4.0 percent, ranging from 2.6 percent in Vermont to 4.8 percent in Rhode Island.

In March 2025, the Consumer Price Index (CPI) excluding food and energy increased 0.1 percent from the preceding month, representing a year-over- year increase of 2.8 percent. The core CPI increase was driven mainly by the cost of personal care, medical care, and education. The FHFA reported that housing prices rose 3.9 percent across the U.S. from February 2024 to February 2025. Over the same period, housing prices in New England rose 6.1 percent.

Interest-Rate Environment

On May 7, 2025, the FOMC announced that it would maintain the federal funds rate in a target range of 425 to 450 basis points. The FOMC stated that in considering any additional adjustments to the target range for the federal funds rate, the FOMC will carefully assess incoming data, the evolving outlook, and the balance of risks. The FOMC also stated that it would continue reducing its holdings of U.S. Treasury securities, agency debt, and agency mortgage-backed securities, and is strongly committed to supporting maximum employment and returning inflation to its two percent objective.

In the first quarter of 2025, short-term rates remained elevated, consistent with the FOMC’s target range for the federal funds rate. Meanwhile, intermediate- and long-term interest rates declined during the quarter, primarily reflecting concerns over the economic outlook. Beginning in late February 2025, and persisting through the end of the first quarter, the yield curve inverted as the difference between 10-year and 3-month U.S. Treasury yields became negative.

Table 3 - Key Interest Rates(1)
Three Month Daily AverageEnding Rate
March 31, 2025March 31, 2024March 31, 2025December 31, 2024
SOFR4.33%5.31%4.41%4.49%
Federal funds effective rate4.33%5.33%4.33%4.33%
3-month U.S. Treasury yield4.30%5.37%4.29%4.31%
2-year U.S. Treasury yield4.16%4.49%3.88%4.24%
5-year U.S. Treasury yield4.25%4.12%3.95%4.38%
10-year U.S. Treasury yield4.45%4.15%4.21%4.57%
________________
(1)    Source: Bloomberg

SELECTED FINANCIAL DATA

The following financial highlights for the statement of condition and statement of operations for December 31, 2024, have been derived from our audited financial statements. Financial highlights for the quarter-ends have been derived from our unaudited financial statements.
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Table 4 - Selected Financial Data
(dollars in thousands)
 March 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Statement of Condition 
Total assets$76,794,158 $71,992,966 $72,396,841 $68,769,378 $66,030,276 
Investments(1)
26,965,568 22,499,068 26,137,824 22,436,579 22,263,743 
Advances45,427,914 45,163,175 42,006,806 42,294,369 39,905,499 
Mortgage loans held for portfolio, net(2)
3,765,267 3,679,150 3,543,560 3,345,541 3,146,391 
Deposits and other borrowings810,253 877,081 765,831 891,137 921,774 
Consolidated obligations:
Bonds
57,203,139 48,192,171 52,338,590 42,651,455 41,023,055 
Discount notes
14,301,193 18,546,504 14,941,067 21,040,550 20,055,973 
Total consolidated obligations
71,504,332 66,738,675 67,279,657 63,692,005 61,079,028 
Mandatorily redeemable capital stock4,471 5,086 5,086 5,085 6,083 
Class B capital stock outstanding-putable(3)
2,207,384 2,195,167 2,161,471 2,094,276 1,983,103 
Unrestricted retained earnings1,407,846 1,403,455 1,380,713 1,375,438 1,360,373 
Restricted retained earnings520,643 509,245 492,833 480,759 466,723 
Total retained earnings1,928,489 1,912,700 1,873,546 1,856,197 1,827,096 
Accumulated other comprehensive loss(214,983)(255,022)(227,659)(268,507)(242,912)
Total capital3,920,890 3,852,845 3,807,358 3,681,966 3,567,287 
For the Three Months Ended
Results of OperationsMarch 31, 2025December 31, 2024September 30, 2024June 30, 2024March 31, 2024
Net interest income after provision for credit losses$92,789 $125,598 $89,791 $108,655 $109,242 
Other income, net3,902 1,144 5,483 3,212 2,608 
Other expense33,358 35,553 28,185 33,878 25,340 
AHP assessments6,342 9,129 6,720 7,809 8,664 
Net income$56,991 $82,060 $60,369 $70,180 $77,846 
Other Information
Dividends declared$41,202 $42,906 $43,020 $41,079 $41,450 
Dividend payout ratio72.30 %52.29 %71.26 %58.53 %53.25 %
Weighted-average dividend rate(4)
7.74 8.36 8.41 8.40 8.40 
Return on average equity(5)
5.88 8.69 6.57 7.75 8.94 
Return on average assets0.30 0.45 0.34 0.40 0.47 
Net interest margin(6)
0.49 0.70 0.52 0.63 0.67 
Average equity to average assets5.08 5.21 5.22 5.16 5.22 
Total regulatory capital ratio(7)
5.39 5.71 5.58 5.75 5.78 
_______________________
(1)Investments include available-for-sale securities, held-to-maturity securities, trading securities, interest-bearing deposits, securities purchased under agreements to resell and federal funds sold.
(2)The allowance for credit losses for mortgage loans amounted to $2.2 million at March 31, 2025, $2.2 million at December 31, 2024, $2.2 million at September 30, 2024, $2.2 million at June 30, 2024, and $2.6 million at March 31, 2024.
(3)Capital stock is putable at the option of a member upon five years' written notice, subject to applicable restrictions.
(4)Weighted-average dividend rate is the dividend amount declared divided by the average daily balance of capital stock eligible for dividends.
(5)Return on average equity is net income divided by the total of the average daily balance of outstanding Class B capital stock, accumulated other comprehensive income and total retained earnings.
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(6)Net interest margin is net interest income before provision for credit losses as a percentage of average earning assets.
(7)Total regulatory capital ratio is capital stock (including mandatorily redeemable capital stock) plus total retained earnings as a percentage of total assets. See Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 9 — Capital.

RESULTS OF OPERATIONS

The following table presents the Bank’s significant statements of operations line items for three months ended March 31, 2025 and 2024, and provides information regarding the changes during those quarters. These items are discussed in more detail below as well as in the Executive Summary.

Table 5 - Statements of Operations Summary
(dollars in thousands)
Change
For the The Months Ended March 31,2025 vs. 2024
20252024AmountPercent
Net Interest Income after provision for credit losses
$92,789 $109,242 $(16,453)(15.06)%
Noninterest income
3,902 2,608 1,294 49.62 
Noninterest expense
33,358 25,340 8,018 31.64 
AHP assessment
6,342 8,664 (2,322)(26.80)
Net Income
$56,991 $77,846 $(20,855)(26.79)%

Net income decreased $20.9 million to $57.0 million for the three months ended March 31, 2025, from $77.8 million for the same period in 2024. The primary reasons for the decrease are discussed under Executive Summary.

Net interest income after provision for credit losses for the three months ended March 31, 2025, was $92.8 million, compared with $109.2 million for the corresponding period in 2024. The primary reasons for the decrease are discussed under Executive Summary.

Table 6 presents major categories of average balances, related interest income/expense, and average yields/rates for interest-earning assets and interest-bearing liabilities. Our primary source of earnings is net interest income, which is the interest earned on advances, mortgage loans, and investments less interest paid on COs, deposits, and other sources of funds.
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Table 6 - Net Interest Spread and Margin
(dollars in thousands)
 For the Three Months Ended March 31,
 20252024
 Average
Balance		Interest
Income /
Expense
Average
Yield/Rate(1)
Average
Balance		Interest
Income /
Expense
Average
Yield/Rate(1)
Assets      
Advances$45,812,695 $515,464 4.56 %$39,641,233 $528,546 5.36 %
Interest-bearing deposits2,496,629 27,084 4.40 2,690,980 36,326 5.43 
Securities purchased under agreements to resell2,186,711 23,679 4.39 1,061,538 14,311 5.42 
Federal funds sold5,585,367 60,518 4.39 3,650,428 49,218 5.42 
Investment securities(2)
16,843,055 194,594 4.69 15,783,431 234,315 5.97 
Mortgage loans(2)(3)
3,719,545 39,452 4.30 3,096,228 28,587 3.71 
Total interest-earning assets76,644,002 860,791 4.55 65,923,838 891,303 5.44 
Other non-interest-earning assets959,933 1,439,946 
Fair-value adjustments on investment securities(295,869)(333,089)
Total assets$77,308,066 $860,791 4.52 %$67,030,695 $891,303 5.35 %
Liabilities and capital   
Consolidated obligations   
Discount notes$17,276,377 $187,162 4.39 %$19,843,709 $264,603 5.36 %
Bonds53,898,530 574,214 4.32 40,653,328 507,136 5.02 
Other interest-bearing liabilities748,452 6,626 3.59 826,748 9,722 4.73 
Total interest-bearing liabilities71,923,359 768,002 4.33 61,323,785 781,461 5.13 
Other non-interest-bearing liabilities1,457,128 2,206,257 
Total capital3,927,579 3,500,653 
Total liabilities and capital$77,308,066 $768,002 4.03 %$67,030,695 $781,461 4.69 %
Net interest income $92,789  $109,842 
Net interest spread  0.22 %  0.31 %
Net interest margin  0.49 %  0.67 %
_________________________
(1)    Yields are annualized
(2)    Average balances are reflected at amortized cost.
(3)    Nonaccrual loans are included in the average balances used to determine average yield.

Rate and Volume Analysis

Changes in both average balances (volume) and interest rates influence changes in net interest income and net interest margin. Table 7 summarizes changes in interest income and interest expense for the three months ended March 31, 2025 and 2024. Changes in interest income and interest expense that are not identifiable as either volume or rate-related, but equally attributable to both volume and rate changes, have been allocated to the volume and rate categories based upon the proportion of the absolute value of the volume and rate changes.

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Table 7 - Rate and Volume Analysis
(dollars in thousands)
 For the Three Months Ended March 31, 2025 vs 2024
 Increase (Decrease) due to
 VolumeRateTotal
Interest income
Advances$75,872 $(88,954)$(13,082)
Interest-bearing deposits(2,485)(6,757)(9,242)
Securities purchased under agreements to resell12,651 (3,283)9,368 
Federal funds sold22,350 (11,050)11,300 
Investment securities14,920 (54,641)(39,721)
Mortgage loans6,247 4,618 10,865 
Total interest income129,555 (160,067)(30,512)
Interest expense
Consolidated obligations
Discount notes(31,612)(45,829)(77,441)
Bonds148,572 (81,494)67,078 
Other interest-bearing liabilities(858)(2,238)(3,096)
Total interest expense116,102 (129,561)(13,459)
Change in net interest income$13,453 $(30,506)$(17,053)

Average Balance of Advances

The average balance of total advances increased by $6.2 billion, or 15.6 percent, for the three months ended March 31, 2025, compared with the same period in 2024. This increase in the average balance of advances was primarily concentrated in variable-rate advances, partially offset by a decrease in short-term fixed rate and long-term fixed rate advances. We cannot predict future member demand for advances.

Average Balance of Investments

Average short-term money-market investments, consisting of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, and loans to other FHLBanks, increased $2.9 billion, or 38.7 percent, for the three months ended March 31, 2025, compared with the same period in 2024, as we bolstered our liquidity position in the first quarter of 2025 when market volatility and uncertainty were heightened. The yield earned on short-term money-market investments is highly correlated to short-term market interest rates. As a result of decreases in the FOMC's target range for the federal funds rate, average yields on overnight federal funds sold decreased from 5.42 percent during the three months ended March 31, 2024, to 4.39 percent during the three months ended March 31, 2025, while average yields on securities purchased under agreements to resell decreased from 5.42 percent for the three months ended March 31, 2024, to 4.39 percent for the three months ended March 31, 2025. These investments are used for liquidity management.

Average investment-securities balances increased $1.1 billion, or 6.7 percent for the three months ended March 31, 2025, compared with the same period in 2024. The increase was primarily the result of a $923.5 million increase in average MBS.

Average Balance of COs

Average CO balances increased $10.7 billion, or 17.7 percent, for the three months ended March 31, 2025, compared with the same period in 2024. This increase consisted of a $13.2 billion increase in CO bonds, offset by a $2.6 billion decline in CO discount notes.

The average balance of CO discount notes represented approximately 24.3 percent of total average COs for the three months ended March 31, 2025, compared with 32.8 percent of total average COs for the three months ended March 31, 2024. The average balance of CO bonds represented 75.7 percent and 67.2 percent of total average COs outstanding during the three months ended March 31, 2025 and 2024, respectively.

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Impact of Derivatives and Hedging Activities

Net interest income includes interest accrued on interest-rate-exchange agreements that are associated with advances, investments, and debt instruments that qualify for hedge accounting. The fair value gains and losses of derivatives and hedged items designated in fair-value hedge relationships are also recognized as interest income or interest expense. We enter into derivatives to manage the interest-rate-risk exposures inherent in otherwise unhedged assets and liabilities and to achieve our risk-management objectives. We generally use derivative instruments that qualify for hedge accounting as interest-rate risk-management tools. These derivatives serve to stabilize net income when interest rates fluctuate by better matching the rate repricing characteristics of financial assets and liabilities. Accordingly, the impact of derivatives on net interest income and net interest margin, as well as other income, should be viewed in the overall context of our risk-management strategy.

Table 8 provides a summary of the impact of derivatives and hedging activities on our earnings.

Table 8 - Effect of Derivative and Hedging Activities
(dollars in thousands)

For the Three Months Ended March 31, 2025
Net Effect of Derivatives and Hedging ActivitiesAdvancesInvestmentsMortgage LoansCO BondsCO Discount NotesTotal
Net interest income
Amortization / accretion of hedging activities (1)
$(224)$10,035 $42 $3,623 $— $13,476 
(Losses) gains on designated fair-value hedges(1,132)(2,203)— 375 — (2,960)
Net interest settlements (2)
27,009 70,685 — (81,591)— 16,103 
Price alignment interest (3)
(1,254)(5,370)— 160 — (6,464)
Total net interest income24,399 73,147 42 (77,433)— 20,155 
Net gains (losses) on derivatives and hedging activities
Losses on derivatives not receiving hedge accounting— — — — (425)(425)
Mortgage delivery commitments— — 417 — — 417 
Price alignment interest (3)
— — — — 334 334 
Net gains (losses) on derivatives and hedging activities— — 417 — (91)326 
Total net effect of derivatives and hedging activities$24,399 $73,147 $459 $(77,433)$(91)$20,481 

For the Three Months Ended March 31, 2024
Net Effect of Derivatives and Hedging ActivitiesAdvancesInvestmentsMortgage LoansCO BondsCO Discount NotesTotal
Net interest income
Amortization / accretion of hedging activities (1)
$(351)$— $— $(2,532)$— $(2,883)
Gains (losses) on designated fair-value hedges2,285 3,045 — (257)— 5,073 
Net interest settlements (2)
58,344 124,319 — (162,260)— 20,403 
Price alignment interest (3)
(860)(14,154)— 481 — (14,533)
Total net interest income59,418 113,210 — (164,568)— 8,060 
Net gains (losses) on derivatives and hedging activities
Gains (losses) on derivatives not receiving hedge accounting23 — — — (32)(9)
Mortgage delivery commitments— — (456)— — (456)
Price alignment interest (3)
— — — — 15 15 
Net gains (losses) on derivatives and hedging activities23 — (456)— (17)(450)
Total net effect of derivatives and hedging activities$59,441 $113,210 $(456)$(164,568)$(17)$7,610 
________________________
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(1)    Represents the amortization/accretion of hedging fair-value adjustments and cash-flow hedge amortization reclassified from accumulated other comprehensive income.
(2)    Represents interest income/expense on derivatives included in net interest income.
(3)    Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

FINANCIAL CONDITION

Advances

At March 31, 2025, the advances portfolio totaled $45.4 billion, an increase of $264.7 million from $45.2 billion at December 31, 2024.

Table 9 - Advances Outstanding by Product Type
(dollars in thousands)
 
 March 31, 2025December 31, 2024
 Par Value Percent of TotalPar ValuePercent of Total
Fixed-rate advances     
Long-term$11,250,340  24.7 %$11,909,336 26.3 %
Short-term10,195,557  22.4 10,604,134 23.4 
Putable7,348,920  16.2 7,488,170 16.5 
Overnight1,816,658 4.0 2,221,057 4.9 
Amortizing979,574  2.2 984,750 2.2 
31,591,049 69.5 33,207,447 73.3 
Variable-rate advances     
Simple variable (1)
13,888,406  30.5 12,065,070 26.7 
Putable15,000 — 15,000 — 
All other variable-rate indexed advances885 — 4,709 — 
 13,904,291  30.5 12,084,779 26.7 
Total par value$45,495,340  100.0 %$45,292,226 100.0 %
________________________
(1)    Includes floating-rate advances that may be contractually prepaid by the borrower on a floating-rate reset date without incurring prepayment or termination fees.

See Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 3 — Advances for disclosures relating to redemption terms of advances.

Advances Credit Risk

We manage credit risk on advances by monitoring the financial condition of our borrowers and by holding sufficient collateral to protect the Bank from credit losses. The Bank has an internal credit rating methodology that estimates each borrower’s credit risk utilizing call report data and other quantitative factors as well as qualitative considerations including, but not limited to, regulatory examination reports. Based on its rating, we assign each member and non-member housing associate to one of the four credit categories below to allow the Bank to leverage risk mitigation strategies across groups of similarly rated members. Each credit category reflects increasing limitations on borrowing capacity and terms to maturity, as well as our increasing level of Bank control over the collateral pledged by the borrower.

•Credit category one (Credit Category-1) a borrower is generally in a satisfactory financial condition.
•Credit category two (Credit Category-2) a borrower shows financial weakness or weakening financial trends.
•Credit category three (Credit Category-3) a borrower demonstrates financial weaknesses that present an elevated level of concern.
•Credit category four (Credit Category-4) a borrower shows significant financial weaknesses and an increased likelihood of failure over the next 12 months.
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The Bank may impose different borrowing capacity limitations or collateral pledging requirements on a borrower if the Bank determines that doing so mitigates risks to the Bank and/or the borrower.

The following table presents a summary of the status of the credit outstanding and overall collateral borrowing capacity of the Bank’s borrowers as of March 31, 2025.

Table 10 - Credit Outstanding and Collateral Borrowing Capacity by Credit Category
(dollars in thousands)
March 31, 2025
Borrowers with Credit Outstanding
Number
Other Credit Outstanding(1)
Total Credit Outstanding
Collateral Borrowing Capacity(2)
Borrower Credit CategoryAdvancesTotalUsed
Member borrowers(3)
Credit Category-1288 $43,820,264 $9,591,879 $53,412,143 $150,105,348 35.6 %
Credit Category-237 1,244,926 50,927 1,295,853 3,217,086 40.3 
Credit Category-38 333,418 7,528 340,946 637,160 53.5 
Credit Category-41 — 45,517 45,517 108,435 42.0 
Nonmember borrowers(4)
Former members7 59,220 2,063 61,283 140,266 43.7 
Housing associates5 37,512 40 37,552 45,141 83.2 
Total346 $45,495,340 $9,697,954 $55,193,294 $154,253,436 35.8 %
_______________________
(1)    Includes accrued interest on advances, letters of credit, unused line of credit, and the credit enhancement obligation on purchased mortgage loans.
(2)    Collateral borrowing capacity does not represent any commitment to lend on the part of the Bank.
(3)    Because they are subject to different laws and regulations than depository institutions, non-depository members are obligated to deliver eligible collateral regardless of their assigned credit category.
(4)    Nonmember borrowers, consisting of housing associates and institutions that are former members or have acquired former members, are obligated to deliver all required collateral. Other than housing associates, nonmember borrowers may not request new advances and are not permitted to extend or renew any advances they have assumed.

The Bank may adjust the credit category of a member from time to time based on the financial reviews and other information pertinent to that member.

We have not recorded any allowance for credit losses on advances as of March 31, 2025, and December 31, 2024, for the reasons discussed in Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 3 — Advances.

Table 11 - Top Five Advance-Borrowing Institutions
(dollars in thousands)
 March 31, 2025
Name Par Value of Advances Percent of Total Par Value of Advances
Weighted-Average Rate (1)
State Street Bank and Trust Company $11,815,000  26.0 %4.59 %
Webster Bank, N.A. 2,910,011  6.4 4.46 
Massachusetts Mutual Life Insurance Company2,100,000 4.6 1.78 
Hingham Institution for Savings1,471,000 3.2 4.26 
Institution for Savings in Newburyport and its Vicinity1,340,682 3.0 3.77 
Total of top five advance-borrowing institutions$19,636,693 43.2 %
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 December 31, 2024
Name Par Value of Advances Percent of Total Par Value of Advances
Weighted-Average Rate (1)
State Street Bank and Trust Company$9,815,000 21.7 %4.84 %
Webster Bank, N.A.2,110,108 4.7 4.51 
Massachusetts Mutual Life Insurance Company2,100,000 4.6 1.78 
Hingham Institution for Savings1,497,000 3.3 4.34 
Institution for Savings in Newburyport and its Vicinity1,321,080 2.9 3.77 
Total of top five advance-borrowing institutions$16,843,188 37.2 %
_______________________
(1)    Weighted-average rates are based on the contract rate of each advance without taking into consideration the effects of interest-rate-exchange agreements that we may use as hedging instruments.

Investments

At March 31, 2025, investment securities and short-term money-market instruments totaled $27.0 billion, an increase of $4.5 billion from $22.5 billion at December 31, 2024.

Short-term money-market investments increased $4.4 billion to $10.4 billion at March 31, 2025, compared with December 31, 2024. The increase was attributable to an increase of $2.6 billion in federal funds sold and a $2.3 billion increase in securities purchased under agreements to resell, offset by a $417.0 million decrease in interest bearing deposits.

Investment securities increased $71.5 million to $16.6 billion at March 31, 2025, compared with $16.5 billion at December 31, 2024.

Investments Credit Risk

We are subject to credit risk on unsecured investments consisting primarily of short-term (meaning one year or less to maturity) money-market instruments issued by high-quality financial institutions and long-term (original maturity greater than one year) debentures issued or guaranteed by U.S. agencies, U.S government-owned corporations, GSEs, and supranational institutions.

We place short-term funds with large, high-quality financial institutions that must be rated in at least the third-highest internal rating category on a rating scale of FHFA1 through FHFA7, reflecting progressively lower credit quality. The internal rating categories of FHFA1 through FHFA4 are considered to be investment quality. As of March 31, 2025, all of these placements either expired within one day or were payable upon demand. See Part I — Item 1 — Business — Business Lines — Investments in the 2024 Annual Report for additional information.

In addition to these unsecured investments, we also make secured investments in the form of securities purchased under agreements to resell secured by U.S. Treasury, U.S. government guaranteed, or agency obligations with current term limits of up to 95 days to maturity and in the form of MBS and HFA securities that are directly or indirectly supported by underlying mortgage loans.

We actively monitor our investment credit exposures and the credit quality of our counterparties, including assessments of each counterparty's financial performance, capital adequacy, sovereign support, and collateral quality and performance, as well as related market signals such as equity prices and credit default swap spreads. We may reduce or suspend credit limits and/or seek to reduce existing exposures, as appropriate, as a result of these monitoring activities.

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Table 12 - Credit Ratings of Investments at Carrying Value
(dollars in thousands)
As of March 31, 2025
Long-Term Credit Rating
Investment CategoryTriple-A Double-A Single-A Unrated
Money-market instruments: (1)
      
Interest-bearing deposits$— $546,151 $995,171 $— 
Securities purchased under agreements to resell— 1,000,000 2,750,000 — 
Federal funds sold— 800,000 4,267,000 — 
Total money-market instruments— 2,346,151 8,012,171 — 
Investment securities:(2)
Non-MBS:      
U.S. Treasury obligations— 5,893,149  —  — 
Corporate bonds— — — 1,482 
U.S. government-owned corporations— 226,607  —  — 
GSE— 96,532  —  — 
Supranational institutions337,358 —  —  — 
HFA securities6,647 —  —  — 
Total non-MBS344,005 6,216,288 — 1,482 
MBS:
U.S. government guaranteed - single-family— 159,592 — — 
U.S. government guaranteed - multifamily— 461,189 — — 
GSE – single-family— 1,941,485 — — 
GSE – multifamily— 7,483,205 — — 
Total MBS— 10,045,471 — — 
Total investment securities344,005 16,261,759 — 1,482 
Total investments$344,005  $18,607,910  $8,012,171  $1,482 
_______________________
(1)    The counterparty NRSRO rating is used for money-market instruments. Counterparty ratings are obtained from Moody's, Fitch, Inc. (Fitch), and S&P and are each as of March 31, 2025. If there is a split rating, the lowest rating is used. In certain instances where a counterparty is unrated, the Bank may assign a deemed rating to the counterparty and that deemed rating is used.
(2)    The issue rating is used for investment securities. Issue ratings are obtained from Moody’s, Fitch, and S&P. If there is a split rating, the lowest rating is used.

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Table 13 - Unsecured Credit Related to Money-Market Instruments and Debentures by Carrying Value
(dollars in thousands)
Carrying Value
March 31, 2025December 31, 2024
Federal funds sold$5,067,000 $2,505,000 
Interest bearing deposits1,541,322 1,958,353 
Supranational institutions337,358 337,352 
U.S. government-owned corporations226,607 221,769 
GSEs96,532 94,614 
Corporate bonds1,482 1,489 
FHFA regulations include limits on the amount of unsecured credit we may extend to a counterparty or to a group of affiliated counterparties based on a percentage of regulatory capital and an internal credit rating determined by each FHLBank. See Part 1 — Item 1 — Business — Business Lines — Investments in the 2024 Annual Report for additional information. Under these regulations, the level of regulatory capital is determined as the lesser of our total regulatory capital or the regulatory capital of the counterparty. The applicable regulatory capital is then multiplied by a specified percentage for each counterparty, the product of which is the maximum amount of unsecured credit exposure we may extend to that counterparty. The percentage that we may offer for extensions of unsecured credit other than overnight sales of federal funds ranges from one to 15 percent based on the counterparty's credit rating. Extensions of unsecured credit for overnight sales of federal funds range from one to 30 percent based on the counterparty’s credit rating. From time to time, we may establish internal credit limits lower than permitted by regulation for individual counterparties.

Mortgage Loans

We invest in mortgages through the MPF Program. The MPF Program is further described under — Mortgage Loans Credit Risk and in Part I — Item 1 — Business — Business Lines — Mortgage Loan Finance in the 2024 Annual Report.

As of March 31, 2025, our mortgage loan investment portfolio totaled $3.8 billion, an increase of $86.1 million from December 31, 2024. This increase is the result of an increase in mortgage loan purchase volume during 2025. We expect continued competition from Fannie Mae and Freddie Mac, as well as from private mortgage loan acquirers, for loan investment opportunities.

Mortgage Loans Credit Risk

We are subject to credit risk from the mortgage loans in which we invest due to our exposure to the credit risk of the underlying borrowers and the credit risk of the participating financial institutions when the participating financial institutions retain credit-enhancement and/or servicing obligations. For additional information on the credit risks arising from our participation in the MPF Program, see Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition — Mortgage Loans — Mortgage Loans Credit Risk in the 2024 Annual Report. For information on the credit performance of our mortgage loan portfolio as of March 31, 2025, see Part I — Item 1 — Financial Statements — Notes to Financial Statements — Note 4 — Mortgage Loans Held for Portfolio in this report.

Although our mortgage loan portfolio includes loans throughout the U.S., concentrations of 5 percent or greater of the par value of our conventional mortgage loan portfolio are shown in Table 14.

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Table 14 - State Concentrations by Par Value
Percentage of Total Par Value of Conventional Mortgage Loans
 March 31, 2025December 31, 2024
Massachusetts57 %58 %
Maine17 16 
Vermont8 7 
Connecticut6 6 
All others12 13 
Total100 %100 %

We place conventional mortgage loans on nonaccrual status when the collection of interest or principal is doubtful or contractual principal or interest is 90 days or more past due. Accrued interest on nonaccrual loans is excluded from interest income. We monitor the delinquency levels of the mortgage loan portfolio on a monthly basis.

Table 15 - Mortgage Loans - Risk Elements and Credit Losses
(dollars in thousands)
For the Three Months Ended March 31,
 20252024
Average par value of mortgage loans outstanding during the period ending$3,681,490 $3,058,116 
Net recoveries— — 
Net charge-offs to average loans outstanding during the year ending— %— %
As of March 31, 2025As of December 31, 2024
Mortgage loans held for portfolio, par value$3,729,019 $3,643,537 
Nonaccrual loans, par value7,658 6,083 
Allowance for credit losses on mortgage loans2,200 2,200 
Allowance for credit losses to mortgage loans held for portfolio0.06 %0.06 %
Nonaccrual loans to mortgage loans held for portfolio0.21 0.17 
Allowance for credit losses to nonaccrual loans28.73 36.17 

Consolidated Obligations

See Liquidity and Capital Resources for information regarding our COs.

Derivative Instruments

All derivatives are recorded on the statement of condition at fair value and classified as either derivative assets or derivative liabilities. Bilateral and cleared derivatives outstanding are classified as assets or liabilities according to the net fair value of derivatives aggregated by each counterparty. Derivative assets' net fair value, net of cash collateral and accrued interest, totaled $276.5 million and $301.9 million as of March 31, 2025, and December 31, 2024, respectively. Derivative liabilities' net fair value, net of cash collateral and accrued interest, totaled $5.3 million and $4.7 million as of March 31, 2025, and December 31, 2024, respectively.

The following table presents a summary of the notional amounts and estimated fair values of our outstanding derivatives, excluding accrued interest, and related hedged item by product and type of accounting treatment as of March 31, 2025, and December 31, 2024. The notional amount represents the hypothetical principal basis used to determine periodic interest payments received and paid. However, the notional amount does not represent an actual amount exchanged or our overall exposure to credit and market risk.

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Table 16 - Derivatives and Hedge-Accounting Treatment
(dollars in thousands)
      March 31, 2025December 31, 2024
Hedged Item Derivative 
Designation(1)
 Notional
Amount		 Fair
 Value		Notional
Amount		Fair
Value
Advances Swaps Fair value $11,938,338  $(79,168)$12,157,089 $(83,874)
Available-for-sale securitiesSwaps Fair value11,790,008  (120,336)11,790,008 (154,592)
COs Swaps Fair value 21,782,710  (446,135)22,285,710 (595,614)
SwapsEconomic2,783,851 695 2,987,274 723 
Forward starting swapsCash Flow641,000 (32)741,000 224 
Total associated with COs25,207,561 (445,472)26,013,984 (594,667)
Total     48,935,907  (644,976)49,961,081 (833,133)
Mortgage delivery commitments     70,674  102 32,729 (100)
Total derivatives     $49,006,581  (644,874)$49,993,810 (833,233)
Accrued interest       169,716  241,767 
Cash collateral, including related accrued interest746,349 888,593 
Net derivatives       $271,191  $297,127 
Derivative asset       $276,454  $301,873 
Derivative liability       (5,263) (4,746)
Net derivatives       $271,191  $297,127 
 _______________________
(1)    The hedge designation “fair value” represents the hedge classification for transactions that qualify for hedge-accounting treatment and hedge changes in fair value attributable to changes in the designated benchmark interest rate. The hedge designation "cash flow" represents the hedge classification for transactions that qualify for hedge-accounting treatment and hedge the exposure to variability in expected future cash flows. The hedge designation “economic” represents derivatives hedging specific or nonspecific assets, liabilities, or firm commitments that do not qualify or were not documented as fair-value or cash-flow hedges but are documented as serving a non-speculative use and are hedging strategies under our risk-management policy.

Derivative Instruments Credit Risk. We are subject to credit risk on derivatives, which is the risk of counterparty default on the derivative contract. The amount of unsecured credit exposure to derivative counterparty default is the amount by which the replacement cost of the defaulted derivative contract exceeds the value of any collateral held by us (if the counterparty is the net obligor on the derivative contract) or is exceeded by the value of collateral pledged by us to counterparties (if we are the net obligor on the derivative contract). We accept cash and securities collateral in accordance with the terms of the applicable master netting agreement for uncleared derivatives (principal-to-principal derivatives that are not centrally cleared) from counterparties with whom we are in a current positive fair-value position. We pledge cash and securities collateral in accordance with the terms of the applicable master netting agreement for uncleared derivatives to counterparties with whom we are in a current negative fair-value position. We currently pledge only cash collateral, including initial and variation margin, for cleared derivatives, but may also pledge securities for initial margin as allowed by the applicable DCO and clearing member.

Our daily average aggregate notional amount for uncleared derivatives transactions between June 2024 and August 2024 exceeded $8 billion and, as a result, we remained subject to two-way initial margin obligations as required by the Wall Street Reform and Consumer Protection Act. For uncleared derivatives transactions executed on or after September 1, 2022, a party whose initial margin requirement exceeds a specified threshold (which may not exceed $50 million) would be required to deliver collateral in the amount by which the initial margin requirement exceeds such specified threshold. Initial margin is required to be held at a third-party custodian for the benefit of the secured party, which can only assert ownership of such collateral upon the occurrence of certain events, which may include an event of default due to bankruptcy, insolvency, or similar proceeding. As of March 31, 2025, all initial margin requirements owed to our uncleared derivative counterparties by us or owed to us by our uncleared derivative counterparties were less than specified delivery thresholds.

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From time to time, due to timing differences or derivatives-valuation differences, between our calculated derivatives values and those of our counterparties, and to the contractual haircuts applied to securities, we receive from (or pledge to) our counterparties cash or securities collateral whose fair value is less (or more) than the current net positive (or net negative) fair-value of derivatives positions outstanding with them.

Table 17 - Credit Exposure to Derivatives Counterparties
(dollars in thousands)
As of March 31, 2025
Notional AmountNet Derivatives Fair Value Before CollateralCash Collateral Pledged to Counterparty Net Credit Exposure to Counterparties
Asset positions with credit exposure:
Cleared derivatives$20,141,487 $1,005 $274,215 $275,220 
Liability positions with credit exposure:
Uncleared derivatives
Single-A4,392,600 (173,483)174,559 1,076 
Total interest-rate swap positions with nonmember counterparties to which we had credit exposure24,534,087 (172,478)448,774 276,296 
Mortgage delivery commitments (1)
70,674 158 — 158 
Total$24,604,761 $(172,320)$448,774 $276,454 
_______________________
(1)    Total fair-value exposures related to commitments to invest in mortgage loans are offset by certain pair-off fees. Commitments to invest in mortgage loans are reflected as derivatives. We do not collateralize these commitments. However, should the participating financial institution fail to deliver the mortgage loans as agreed, the participating financial institution is charged a fee to compensate us for the nonperformance.

For information on our approach to the credit risks arising from our use of derivatives, see Part II — Item 7 — Management’s Discussion and Analysis and Results of Operations — Financial Condition — Derivative Instruments — Derivative Instruments Credit Risk in the 2024 Annual Report.

LIQUIDITY AND CAPITAL RESOURCES

Our financial structure is designed to enable us to expand and contract our assets, liabilities, and capital in response to changes in membership composition and member credit needs. Our primary source of liquidity is our access to the capital markets through CO issuance, which is described in Part I — Item 1 — Business — Consolidated Obligations of the 2024 Annual Report. Outstanding COs and the condition of the market for COs are discussed below under — Debt Financing — Consolidated Obligations. Our equity capital resources are governed by our Capital Plan, certain portions of which are described under — Capital below as well as by applicable legal and regulatory requirements.

Liquidity

We are required to maintain liquidity in accordance with the FHLBank Act, FHFA regulations and guidance, and policies established by our management and board of directors. We seek to be in a position to meet the credit and liquidity needs of our members and all current and future financial commitments by managing liquidity positions to maintain stable, reliable, and cost-effective sources of funds while taking into account market conditions, member demand, and the maturity profile of our assets and liabilities.

We are unable to predict future trends in member credit needs because they are driven by complex interactions among several factors, including, but not limited to, increases and decreases in members assets and deposits, and the attractiveness of advances compared to other sources of wholesale funding. We regularly monitor current trends and anticipate future debt issuance needs and maintain a portfolio of highly liquid assets to be prepared to fund member credit needs and investment opportunities. We are generally able to expand our CO debt issuance in response to members' increased need for advances and to increase our acquisitions of mortgage loans. Alternatively, in response to reduced member credit needs, we may shrink our balance sheet by allowing our COs to mature without replacement, transferring debt to another FHLBank, repurchasing and retiring outstanding COs, or redeeming callable COs on eligible redemption dates.
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Sources and Uses of Liquidity. Our primary sources of liquidity are proceeds from the issuance of COs and advance repayments, and maturing short-term investments, as well as cash and investment holdings that are primarily high-quality, short- and intermediate-term financial instruments that can be sold or pledged as collateral under a repurchase agreement. During the three months ended March 31, 2025, we maintained continuous access to funding and adapted our debt issuance to meet the needs of our members.

Secondary sources of liquidity include payments collected on mortgage loans, proceeds from the issuance of capital stock, and member deposits. In addition, under the FHLBank Act, the U.S. Treasury may purchase up to $4 billion of FHLBank COs. The terms, conditions, and interest rates in such a purchase would be determined by the U.S. Treasury. This authority may be exercised at the discretion of the U.S. Treasury with the agreement of the FHFA only if alternative means cannot be effectively employed to permit members of the FHLBanks to continue to supply reasonable amounts of funds to the mortgage market, and the ability to supply such funds is substantially impaired because of monetary stringency and high interest rates. There were no such purchases by the U.S. Treasury during the three months ended March 31, 2025.

Our uses of liquidity are advance originations and consolidated obligation principal and interest payments. Other uses of liquidity are mortgage loan and investment purchases, dividend payments, general operating expenses, and other contractually obligated payments. We also maintain liquidity to redeem or repurchase excess capital stock, through our daily excess stock repurchases, upon the request of a member or as required under our Capital Plan.

For information and discussion of our guarantees and other commitments we may have, see Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 12 — Commitments and Contingencies. For further information and discussion of the joint and several liability for FHLBank COs, see below — Debt Financing — Consolidated Obligations.

Internal Liquidity Sources / Liquidity Management

Projected Net Cash Flow. We define projected net cash flow as projected sources of funds less projected uses of funds based on contractual maturities or expected option exercise periods, and settlement of committed assets and liabilities, as applicable. For mortgage-related cash flows and callable debt, we incorporate projected prepayments and call exercise.

Liquidity Management. We maintain our liquidity so that if projected net cash flow falls below zero on or before the 21st day following the measurement date, then management of the Bank is notified and determines whether any corrective action is necessary. We did not breach this threshold at any time during the three months ended March 31, 2025. Table 18 below shows this calculation as of March 31, 2025.

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Table 18 - Projected Net Cash Flow
(dollars in thousands)
As of March 31, 2025
21 Days
Uses of funds
Interest payable$190,583 
Maturing or expected option exercise of liabilities5,889,664 
Committed asset settlements50,000 
Capital outflow40,325 
MPF delivery commitments70,674 
Projected Calls80,000 
Other1,264 
Gross uses of funds6,322,510 
Sources of funds
Interest receivable212,260 
Maturing or projected amortization of assets17,887,062 
Committed liability settlements598,057 
Cash and due from banks and interest bearing deposits1,567,817 
Gross sources of funds20,265,196 
Projected net cash flow$13,942,686 

Base Case Liquidity Requirement. The Bank is subject to FHFA guidance on liquidity, including Advisory Bulletin 2018-07 (Liquidity Guidance AB), which communicates the FHFA’s expectations with respect to the maintenance of sufficient liquidity to enable us to provide advances and fund standby letters of credit for members for a specified time without access to the capital markets or other unsecured funding sources.

The Liquidity Guidance AB provides guidance on the level of on-balance sheet liquid assets related to base case liquidity. As part of the base case liquidity measure, the guidance also includes a separate provision covering off-balance sheet commitments from standby letters of credit. In addition, the Liquidity Guidance AB provides guidance related to asset/liability maturity funding gap limits.

Under the Liquidity Guidance AB, FHLBanks are required to maintain sufficient liquid assets to achieve positive projected net cash flow while rolling over maturing advances to all members and assuming no access to capital markets for a period of time between 10 and 30 calendar days, with a specific measurement period set forth in a supervisory letter. The Liquidity Guidance AB also sets forth the initial cash flow assumptions and formula to calculate base case liquidity. With respect to standby letters of credit, the guidance states that FHLBanks should maintain a liquidity reserve of between one percent and 20 percent of its outstanding standby letters of credit commitments, as specified in a supervisory letter.

We were in compliance with the Base Case Liquidity Requirement at all times during the three months ended March 31, 2025.

Balance Sheet Funding Gap Policy. We may use a portion of the short-term COs issued to fund assets with longer terms, including longer-term floating-rate assets. Funding longer-term floating-rate assets with shorter-term liabilities generally does not expose us to significant interest-rate risk because the interest rates on both the floating-rate assets and liabilities typically reset similarly (either through rate resets or re-issuance of the obligations). However, deviations in the cost of our short-term liabilities relative to resetting assets can cause fluctuations in our net interest margin.

Additionally, the Bank is exposed to refinancing risk since, over certain time horizons, it has more liabilities than assets maturing. In order to manage the Bank’s refinancing risk, we maintain a policy that limits the potential difference between the amount of financial assets and the amount of financial liabilities expected to mature within three-month and one-year time horizons inclusive of projected mortgage-related prepayment activity. We measure this difference, or gap, as a percentage of
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total assets over three-month and one-year time horizons. In conformity with the provisions of the Liquidity Guidance AB, the Bank has instituted a limit framework around these metrics as follows:

Table 19 - Funding Gap Metric
Funding Gap Metric (1)
LimitThree-Month Average
March 31, 2025		Three-Month Average
December 31, 2024
3-month Funding Gap15%(1.7)%4.9%
1-year Funding Gap30%8.1%11.1%
_______________________
(1)    The funding gap metric is a positive value when maturing liabilities exceed maturing assets, as defined, within the given period. Compliance with Limits are evaluated against the rolling three-month average of the month-end funding gaps.

External Sources of Liquidity

Amended and Restated FHLBanks P&I Funding Contingency Plan Agreement. We have a source of emergency external liquidity through the Amended and Restated FHLBanks P&I Funding Contingency Plan Agreement. Under the terms of that agreement, in the event we do not fund principal and interest payments due with respect to any CO for which issuance proceeds were allocated to us within deadlines established in the agreement, the other FHLBanks will be obligated to fund any shortfall to the extent that any of the other FHLBanks has a net positive settlement balance (that is, the amount by which end-of-day proceeds received by such FHLBank from the sale of COs exceeds payments by such FHLBank on COs on the same day) in its account with the Office of Finance on the day the shortfall occurs. We would then be required to repay the funding to the other FHLBanks. We have never drawn funding under this agreement, nor have we ever been required to provide funding to another FHLBank under this agreement.

Debt Financing — Consolidated Obligations

At March 31, 2025, and December 31, 2024, outstanding COs for which we are primarily liable, including both CO bonds and CO discount notes, totaled $71.5 billion and $66.7 billion, respectively. CO bonds outstanding for which we are primarily liable at March 31, 2025, and December 31, 2024, include issued callable bonds totaling $18.8 billion and $18.0 billion, respectively.

CO discount notes comprised 20.0 percent and 27.8 percent of the outstanding COs for which we are primarily liable at March 31, 2025, and December 31, 2024, respectively, but accounted for 43.6 percent and 78.4 percent of the proceeds from the issuance of such COs during the three months ended March 31, 2025 and 2024, respectively.

Overall, we continued to experience strong demand for COs among investors. During the period covered by this report, the capital markets have supported our funding needs and we have been able to issue debt in the amounts and structures required to satisfy the demand for advances and meet our funding and risk-management needs.

Capital

Total capital was $3.9 billion at both March 31, 2025, and December 31, 2024.

The FHLBank Act and FHFA regulations specify that each FHLBank is required to satisfy certain minimum regulatory capital requirements. We were in compliance with these requirements at March 31, 2025, as discussed in Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 9 — Capital.

Capital Rule

The FHFA's regulation on FHLBank capital classification and critical capital levels (the Capital Rule), among other things, establishes criteria for capital classifications and corrective action requirements for FHLBanks that are classified in any classification other than adequately capitalized. The Capital Rule requires the Director of the FHFA to determine on no less than a quarterly basis the capital classification of each FHLBank. By letter dated March 31, 2025, the Director of the FHFA notified us that, based on financial information as of December 31, 2024, we met the definition of adequately capitalized under the Capital Rule.

Internal Capital Practices and Policies

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We also take steps as we believe prudent beyond legal or regulatory requirements in an effort to ensure capital adequacy, reflected in our internal minimum capital requirement, which exceeds regulatory requirements, our minimum retained earnings target, and limitations on our dividends.

Internal Minimum Capital Requirement in Excess of Regulatory Requirements

In an effort to provide protection for our capital base, we maintain an internal minimum capital requirement whereby the amount of paid-in capital stock and retained earnings (together, our actual regulatory capital) must be at least equal to the sum of 4 percent of our total assets plus an amount we measure as our risk exposure with 99 percent confidence using our economic capital model (together, our internal minimum capital requirement). As of March 31, 2025, this internal minimum capital requirement equaled $3.7 billion, which was satisfied by our actual regulatory capital of $4.1 billion.

Minimum Retained Earnings Target

Our limit for our minimum level of retained earnings is determined monthly using rolling three-month averages. Retained earnings must be at least 4.0 percent of our total assets less outstanding capital stock plus the higher of (a) the risk-based capital requirement or (b) the economic capital requirement.

At March 31, 2025, we had total retained earnings of $1.9 billion, which exceeded the limit of $1.5 billion. This method for determining our minimum amount of retained earnings replaced our previous target of $700.0 million in July 2024. In the event that the Bank’s balance of retained earnings is below the limit, dividends may not exceed 40 percent of the prior quarter’s net income.

Repurchases of Excess Stock

We have the authority, but are not obliged, to repurchase excess stock, as discussed under Part I — Item 1 — Business — Capital Resources — Repurchase of Excess Stock in the 2024 Annual Report.

Table 20 - Capital Stock Requirements and Excess Capital Stock
(dollars in thousands)
 Membership Stock
Investment
Requirement		 Activity-Based
Stock Investment
Requirement		 
Total Stock
Investment
Requirement (1)
 
Outstanding Class B
Capital Stock (2)
 Excess Class B
Capital Stock
March 31, 2025$355,124  $1,821,583  $2,171,530  $2,211,855  $40,325 
December 31, 2024348,504  1,808,806  2,157,331  2,200,253  42,922 
_______________________
(1)    Total stock investment requirement is rounded up to the nearest $100 on an individual member basis.
(2)    Class B capital stock outstanding includes mandatorily redeemable capital stock.

To facilitate our ability to maintain a prudent level of capitalization and an efficient capital structure, while providing for an equitable allocation of excess stock ownership among members, we conduct daily repurchases of excess stock from any shareholder whose excess stock exceeds the lesser of $3 million or 3 percent of the shareholder’s total stock investment requirement, subject to the minimum repurchase of $100,000. We plan to continue this practice, subject to regulatory requirements and our liquidity or capital management needs, although repurchase decisions remain at our sole discretion, and we retain authority to adjust our excess stock repurchase practices subject to notice requirements defined in our Capital Plan, or to suspend repurchases of excess stock from any shareholder or all shareholders without prior notice.

Restricted Retained Earnings and the Joint Capital Agreement

At March 31, 2025, our total required contribution to the restricted retained earnings account was $716.9 million compared with the current restricted retained earnings account balance of $520.6 million.

Off-Balance-Sheet Arrangements

Our significant off-balance-sheet arrangements consist of the following:

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 •    commitments that obligate us for additional advances;
 •    standby letters of credit;
 •    commitments for unused lines-of-credit advances; and
 •    unsettled COs.

Off-balance-sheet arrangements are more fully discussed in Part I — Item 1 — Financial Statements — Notes to the Financial Statements — Note 12 — Commitments and Contingencies.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with GAAP requires management to make a number of judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, income and expense. To understand the Bank's financial position and results of operations, it is important to understand the Bank's most significant accounting policies and the extent to which management uses judgment, estimates and assumptions in applying those policies. The Bank's critical accounting estimates include:

•Estimation of Fair Values, for derivatives, hedged items in a fair-value hedge relationship, and available-for-sale investment securities; and
•Amortization of Premiums and Accretion of Discounts Associated with Prepayable MBS.

Management considers these policies to be critical because they require us to make subjective and complex judgments about matters that are inherently uncertain. Management bases its judgment and estimates on current market conditions and industry practices, historical experience, changes in the business environment and other factors that it believes to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions and/or conditions. The Audit Committee of our board of directors has reviewed these estimates. The assumptions involved in applying these policies are discussed in Part II — Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates in the 2024 Annual Report.

As of March 31, 2025, we have not made any significant changes to the estimates and assumptions used in applying our critical accounting policies and estimates from those used to prepare our audited financial statements.

LEGISLATIVE AND REGULATORY DEVELOPMENTS

We are subject to various legal and regulatory requirements and priorities. Certain actions by the current federal executive administration are changing the regulatory environment. Changes in the regulatory environment, including regulatory priorities and areas of focus such as deregulation, have affected, and likely will continue to affect, certain aspects of our business operations, and could have impacts on our results of operations and reputation. For example, on January 20, 2025, the federal executive administration ordered all federal executive departments and agencies to, among other things, not propose or issue any rule until a department or agency head appointed or designated by the president reviews and approves the rule.

Beginning in March 2025, the FHFA has rescinded several advisory bulletins (ABs) applicable to us, including the ABs which had set out expectations related to: (i) fair lending and fair housing compliance, (ii) unfair or deceptive acts or practices compliance, (iii) climate-related risk management, (iv) diversity and inclusion examination ratings, (v) Board diversity and (vi) Board diversity data collection.

Considering the changes in the regulatory environment, there is uncertainty with respect to the ultimate nature and result of future regulatory actions and their ultimate impact on us and the FHLBank System. For further discussion of related risks, see Risk Factors starting on page 20 in the 2024 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Sources and Types of Market and Interest-Rate Risk

Our balance sheet is comprised of different portfolios that require different market- and interest-rate-risk management strategies. The majority of our balance sheet is comprised of assets that can be funded individually or collectively without imposing significant residual interest-rate risk on ourselves. Sources and types of market and interest-rate risk are described in Part II — Item 7A — Quantitative and Qualitative Disclosures About Market Risk — Sources and Types of Market and Interest-Rate Risk in the 2024 Annual Report.
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Strategies to Manage Market and Interest-Rate Risk

General

We use various strategies and techniques to manage our market- and interest-rate risk including the following and combinations of the following:

•the issuance of COs that can be used to match interest-rate-risk exposures of our assets;
•the issuance of COs with embedded call options to mitigate interest-rate and prepayment risks of our mortgage loans and certain MBS;
•the issuance of COs together with interest-rate swaps (either cleared if no optionality or uncleared if containing optionality) that receive a coupon rate that offsets the cost of the debt and any optionality embedded in the debt, thereby effectively creating a floating-rate liability;
•the issuance of advances together with interest-rate swaps that pay a coupon rate that offsets the advance coupon rate and any optionality embedded in the advance, thereby effectively creating a floating-rate asset;
•the purchase of available-for-sale securities together with interest-rate swaps that pay a coupon rate that offsets the security’s coupon rate, thereby effectively creating a floating-rate asset;
•contractual provisions for certain advances that require borrowers to pay us prepayment fees, to make us financially indifferent if the borrower prepays such advances prior to maturity; and
•the use of derivatives to hedge the interest-rate risk of anticipated future CO debt issuance.

The following table provides the outstanding balances for the strategies to manage market and interest-rate risk noted above.

Table 21 - Interest-Rate Risk Management
(dollars in thousands)
Outstanding Par Value/Notional Balance as of
March 31, 2025December 31, 2024
Fixed-rate noncallable debt, not hedged by interest-rate swaps$9,713,250 $10,740,345 
Fixed-rate callable debt not hedged by interest-rate swaps1,646,000 1,521,500 
CO debt hedged by interest-rate-exchange agreements, including both fair-value hedge relationships and economic hedge relationships(1)
24,566,561 25,272,984 
Advances hedged by interest-rate-exchange agreements, including both fair-value hedge relationships and economic hedge relationships11,938,338 12,157,089 
Available-for-sale securities (non-MBS) hedged by interest-rate-exchange agreements6,861,915 6,861,915 
Available-for-sale securities (MBS) hedged by interest-rate-exchange agreements4,928,093 4,928,093 
Total hedged available-for-sale securities 11,790,008 11,790,008 
Notional principal balance of forward starting interest-rate swaps hedging the anticipated future issuance of CO debt641,000 741,000 
_______________________
(1)    The amount for March 31, 2025, includes unsettled CO bonds with a par value of $73.0 million.

Measurement of Market and Interest-Rate Risk and Related Policy Constraints

We measure our exposure to market and interest-rate risk using several techniques applied to the balance sheet and to certain portfolios within the balance sheet. Principal among these measurements as applied to the balance sheet is the potential change in market value of equity (MVE) and interest income due to potential changes in interest rates, interest-rate volatility, spreads, and market prices. We also measure Value at Risk (VaR), duration of equity, MVE sensitivity, and the other metrics discussed below.

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MVE is the net economic value of total assets and liabilities, including any derivative transactions. In contrast to the GAAP-based shareholders' equity account, MVE represents the shareholders' equity account in present-value terms. Specifically, MVE equals the difference between the estimated market value of our assets and the estimated market value of our liabilities, net of derivative transactions.

MVE and, in particular, the ratio of MVE to the book value of equity (BVE), is a measure of the current value of shareholder investment based on market rates, spreads, prices, and volatility at the reporting date. However, these valuations may not be fully representative of future realized prices. Valuations are based on market yields and prices of individual assets, liabilities, and derivatives, and therefore embed elements of option, credit, and liquidity risk which may not be representative of future net income to be earned from the spread between asset yields and funding costs. Further, MVE does not consider future new business activities, or income or expense derived from sources other than financial assets or liabilities. For purposes of measuring this ratio, the BVE is equal to the par value of capital stock including mandatorily redeemable capital stock, retained earnings, and accumulated other comprehensive (loss) income.

We measure our exposure to market and interest-rate risk using several metrics, including:

•the ratio of MVE to BVE;
•the ratio of MVE to the par value of our Class B Stock (Par Stock), which we refer to as the MVE to Par Stock ratio;
•the ratio of MVE to the market value of assets, which we refer to as the economic capital ratio;
•the ratio of MVE to Par Stock subjected to a +/- 2 standard deviation basis shock of the overnight-index swap rate based on the federal funds effective rate (Federal Funds-OIS), SOFR, Treasury and CO curves;
•VaR, which measures the potential change in our MVE, based on a set of stress scenarios (VaR Stress Scenarios) using historically-based interest-rate, volatility, and Option Adjusted Spread (OAS) movements starting at the most recent month-end and going back monthly to 1998. For risk-based capital purposes and compliance with our internal policies, VaR is reported as the average of the five worst case scenarios.
•the duration of equity, which is calculated as the estimated percentage change to MVE for a 100 basis point parallel shift in rates;
•MVE sensitivity, which is the estimated percent change in MVE in various shocked interest rate scenarios versus base case MVE;
•the duration gap of our assets and liabilities, which is the difference between the estimated durations (percentage change in market value for a 100 basis point shift in rates) of assets and liabilities (including the effect of related hedges) and reflects the extent to which estimated sensitivities to market changes, including, but not limited to, maturity and repricing cash flows for assets and liabilities are matched; and
•the use of an income-simulation model that projects net interest income over a range of potential interest-rate scenarios, including parallel interest-rate shocks, nonparallel interest-rate shocks, and basis changes.

We maintain limits in connection with some of the foregoing metrics. Those limits, and the foregoing market and interest-rate risk metrics are more fully discussed under Part II — Item 7A — Quantitative and Qualitative Disclosures About Market Risk — Measurement of Market and Interest-Rate Risk and Related Policy Constraints in the 2024 Annual Report.

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Table 22 - Interest-Rate / Market-Rate Risk Metrics

March 31, 2025December 31, 2024Limit
MVE$3.8 billion$3.7 billionNone
MVE/BVE96%95%None
MVE/Par Stock170%167%Maintain above 125%
Economic Capital Ratio4.9%5.1%Maintain above 4.0%
MVE/Par StockNone
  + 2 standard deviation shock161%159%
  - 2 standard deviation shock177%174%
VaR
10.7% of MVE
10.8% of MVE
None
Duration of Equity (1)
+1.38 years+1.25 yearsMaintain between +/- 4.0 years
MVE Sensitivity: (1)
   Down 200 basis point parallel rate shock2.2%1.5%Maintain above -15%
   Up 200 basis point parallel rate shock(3.6)%(3.5)%
Duration Gap (1)
+0.81 months+0.76 monthsNone
_______________________
(1)    Metrics for measuring against the limits are calculated using a methodology which does not constrain interest rates to a minimum of zero percent. Additional metrics are calculated in accordance with guidance from the FHFA, which requires that we constrain projected future interest rates and discounting yields to a minimum of zero percent. For the periods ended March 31, 2025, and December 31, 2024, the results of the constrained and unconstrained metrics were the same.

Value at Risk. VaR, which measures the potential change in our MVE, is based on a set of stress scenarios using historically based interest-rate, volatility, and option-adjusted spread (OAS) movements starting at the most recent month-end and going back monthly to 1998. For risk-based capital purposes and compliance with our internal policies, VaR is reported as the average of the five worst scenarios.

The table below presents the VaR estimate as of March 31, 2025, and December 31, 2024, and represents the estimates of potential reduction to our MVE from potential future changes in interest rates and other market factors, as described above. Estimated potential market value loss exposures are expressed as a percentage of the current MVE. The table is intended to represent a statistically based range of VaR exposures.

Table 23 - Value-at-Risk
(dollars in millions)
 Value-at-Risk
(Gain) Loss Exposure
 March 31, 2025December 31, 2024
Confidence Level
% of
MVE (1)
Amount
% of
MVE (1)
Amount
50%5.81 %$218.1 5.89 %$216.7 
75%6.78 254.7 6.85 252.0 
95%8.59 322.6 8.67 318.8 
99%10.25 385.1 10.23 376.3 
Average of five worst scenarios - as of period end10.69 401.6 10.75 395.3 
_____________________________
(1)    Loss exposure is expressed as a percentage of base MVE.

Income Simulation. To provide an additional perspective on market and interest-rate risks, we have an income-simulation model that projects adjusted net income over the ensuing 12-month period using a range of potential interest-rate scenarios, including parallel interest-rate shocks, nonparallel interest-rate shocks, and changes in basis risk. The income simulation metric is based on projections of adjusted net income divided by capital stock (including mandatorily redeemable capital stock). Projections of adjusted net income exclude: a) projected prepayment of advances and prepayment penalties; b) loss on early extinguishment of debt; c) changes in fair values from hedging activities; and d) changes in fair values of trading securities. The simulations are
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solely based on simulated movements in interest rates and do not reflect potential impacts of credit events, including, but not limited to, potential provision for credit losses.

Certain Market and Interest-Rate Risk Metrics under Potential Interest-Rate Scenarios

We also monitor the sensitivities of MVE and the duration of equity to potential interest-rate scenarios. The following table presents certain market and interest-rate risk metrics under different interest-rate scenarios.

Table 24 - Market and Interest-Rate Risk Metrics
(dollars in millions)
March 31, 2025
Down 300(1)
Down 200(1)
Down 100(1)
BaseUp 100Up 200Up 300
MVE$3,877$3,839$3,801$3,756$3,696$3,619$3,532
Percent change in MVE from base3.2%2.2%1.2%—%(1.6)%(3.6)%(6.0)%
MVE/BVE99%98%97%96%94%92%90%
MVE/Par Stock175%174%172%170%167%164%160%
Duration of Equity+1.33 years+0.97 years+1.05 years+1.38 years+1.88 years+2.26 years+2.56 years
Return on Capital Stock less SOFR3.17%3.73%4.27%4.89%5.19%5.48%5.75%
Net income percent change from base(53.25)%(35.60)%(18.25)%—%14.44%28.81%42.95%
December 31, 2024
Down 300(1)
Down 200(1)
Down 100(1)
BaseUp 100Up 200Up 300
MVE$3,748$3,734$3,714$3,678$3,624$3,550$3,464
Percent change in MVE from base1.9%1.5%1.0%—%(1.5)%(3.5)%(5.8)%
MVE/BVE97%97%96%95%94%92%90%
MVE/Par Stock170%170%169%167%165%161%157%
Duration of Equity+0.50 years+0.44 years+0.71 years+1.25 years+1.78 years+2.26 years+2.61 years
Return on Capital Stock less SOFR2.74%3.60%4.66%5.65%6.13%6.81%7.42%
Net income percent change from base(60.06)%(41.16)%(20.15)%—%14.98%31.83%48.02%
____________________________
(1)    In an environment of low interest rates, downward rate shocks are floored as they approach zero, and therefore may not be fully representative of the indicated rate shock.

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Senior management is responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure information required to be disclosed by us in the reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of controls and procedures.

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Our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures, with the participation of the president and chief executive officer and chief financial officer, as of March 31, 2025. Based on that evaluation, our president and chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025.

Changes in Internal Control over Financial Reporting

During the quarter ended March 31, 2025, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to various legal proceedings arising in the normal course of business. After consultation with legal counsel, we do not anticipate that the ultimate liability, if any, arising out of these matters will have a material adverse effect on our financial condition or results of operations.

ITEM 1A. RISK FACTORS

In addition to the information presented in this report, readers should carefully consider the risk factors set forth in the 2024 Annual Report, which could materially impact our business, financial condition, or future results. These risks are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also materially impact us.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS
NumberExhibit DescriptionReference
10Federal Home Loan Bank of Boston 2025 Executive Incentive Plan
31.1Certification of the president and chief executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2Certification of the chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1Certification of the president and chief executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2Certification of the chief financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INSXBRL Instance Document The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema DocumentFiled within this Form 10-Q
101.CALInline XBRL Taxonomy Extension Calculation Linkbase DocumentFiled within this Form 10-Q
101.LABInline XBRL Taxonomy Extension Label Linkbase DocumentFiled within this Form 10-Q
101.PREInline XBRL Taxonomy Extension Presentation Linkbase DocumentFiled within this Form 10-Q
101.DEFInline XBRL Taxonomy Extension Definition Linkbase DocumentFiled within this Form 10-Q
104The cover page of the Bank’s Quarterly report on Form 10-Q, formatted in Inline XBRL Included within the Exhibit 101 attachments
* Management contract or compensatory plan. Portions of this exhibit have been omitted.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DateFEDERAL HOME LOAN BANK OF BOSTON (Registrant)
May 8, 2025By:/s/Timothy J. Barrett
Timothy J. Barrett
President and Chief Executive Officer
May 8, 2025By:/s/Frank Nitkiewicz
Frank Nitkiewicz
Executive Vice President, Chief Operating Officer
and Chief Financial Officer

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