10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

    ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-51845

 ____________________________________ 

FEDERAL HOME LOAN BANK OF ATLANTA

(Exact name of registrant as specified in its charter)

Federally chartered corporation	56-6000442
United States
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1475 Peachtree Street, NE, Atlanta, GA

(Address of principal executive offices)

30309

(Zip Code)

Registrant’s telephone number, including area code: (404) 888-8000

_____________________________________  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Securities registered pursuant to Section 12(g) of the Act:

Class B Stock, par value $100

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    ¨  Yes    x  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    ¨  Yes   x  No

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 for the past 90 days.    x  Yes   ☐ No

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).    x  Yes   ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an 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.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	x	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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☑  

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    ☐  Yes   ☒  No

Registrant’s stock is not publicly traded and is only issued to members of the registrant. Such stock is issued and redeemed at par value, $100 per share, subject to certain regulatory and statutory limits. As of June 30, 2024, the aggregate par value of the stock held by current and former members of the registrant was $5,547,632,800. As of February 28, 2025, 57,324,212 total shares were outstanding, including mandatorily redeemable capital stock.

Table of Contents

	PART I.
Item 1.	Business	7
Item 1A.	Risk Factors	21
Item 1B.	Unresolved Staff Comments	28
Item 1C.	Cybersecurity	29
Item 2.	Properties	30
Item 3.	Legal Proceedings	30
Item 4.	Mine Safety Disclosure	31
	PART II.
Item 5.	Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	31
Item 6.	[Reserved]	31
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
	Executive Summary	32
	Financial Condition	34
	Results of Operations	38
	Additional Financial Data	45
	Liquidity and Capital Resources	45
	Critical Accounting Estimates	49
	Legislative and Regulatory Developments	50
	Risk Management	51
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 8.	Financial Statements and Supplementary Data	65
	STATEMENTS OF CONDITION	67
	STATEMENTS OF INCOME	68
	STATEMENTS OF COMPREHENSIVE INCOME	69
	STATEMENTS OF CAPITAL	70
	STATEMENTS OF CASH FLOWS	71
	Note 1—Nature of Operations	73
	Note 2—Summary of Significant Accounting Policies	74
	Note 3—Recently Issued But Not Yet Adopted Accounting Standards	81
	Note 4—Cash and Due from Banks	81
	Note 5—Investments in Debt Securities	81
	Note 6—Advances	84
	Note 7—Mortgage Loans Held for Portfolio	86
	Note 8—Consolidated Obligations	87
	Note 9—Affordable Housing Program and Voluntary Contributions	90
	Note 10—Capital	91
	Note 11—Accumulated Other Comprehensive Income (Loss)	94
	Note 12—Pension and Postretirement Benefit Plans	94
	Note 13—Derivatives and Hedging Activities	95
	Note 14—Estimated Fair Values	101
	Note 15—Commitments and Contingencies	104
	Note 16—Transactions with Shareholders	105
	Note 17—Transactions with Other FHLBanks	106

	Note 18—Subsequent Events	107
Item 9	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	108
Item 9A.	Controls and Procedures	108
Item 9B.	Other Information	108
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	108
	PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	109
Item 11.	Executive Compensation	121
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	142
Item 13.	Certain Relationships and Related Transactions, and Director Independence	143
Item 14.	Principal Accountant Fees and Services	144
	PART IV.
Item 15.	Exhibits and Financial Statement Schedules	145
Item 16.	Form 10-K Summary	147
SIGNATURES		147

Important Notice About Information in this Annual Report

In this annual report on Form 10-K (Report), unless the context suggests otherwise, references to the “Bank” mean the Federal Home Loan Bank of Atlanta. “FHLBanks” means the 11 district Federal Home Loan Banks, including the Bank, and “FHLBank System” means the FHLBanks and the Federal Home Loan Banks Office of Finance (Office of Finance), as regulated by the Federal Housing Finance Agency (Finance Agency). “FHLBank Act” means the Federal Home Loan Bank Act of 1932, as amended.

The information contained in this Report is accurate only as of the date of this Report or as of the dates specified herein.

The product and service names used in this Report are the property of the Bank and, in some cases, the other FHLBanks. Where the context suggests otherwise, the products, services, and company names mentioned in this Report are the property of their respective owners.

Special Cautionary Notice Regarding Forward-looking Statements

This Report includes statements describing anticipated developments, projections, estimates, or future predictions of the Bank that are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided by the same regulations. These statements may use forward-looking terminology such as, but not limited to, “anticipates,” “believes,” “expects,” “plans,” “intends,” “may,” “could,” “estimates,” “assumes,” “should,” “will,” ”likely,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements are subject to a number of risks or uncertainties, including the risk factors set forth in Item 1A—Risk Factors and the risks set forth below. Accordingly, the Bank cautions that actual results could differ materially from those expressed or implied in forward-looking statements or could impact the extent to which a particular objective, projection, estimate, or prediction is realized. As a result, the reader is cautioned not to place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Bank does not undertake to update any forward-looking statement herein or that may be made from time to time on its behalf.

Forward-looking statements in this report may include, among others, the Bank’s expectations for:

•the Bank’s business strategy and changes in operations, including, without limitation, product growth and change in product mix;

•future performance, including profitability, dividends, retained earnings, developments, or market forecasts;

•repurchases of stock in excess of a member’s total stock investment requirement (excess stock);

•credit losses on advances and investments in mortgage loans and mortgage-backed securities (MBS);

•balance sheet changes and components thereof, such as changes in advances balances and the size of the Bank’s portfolio of investments in mortgage assets;

•the Bank’s liquidity and retained earnings target;

•the interest rate environment in which the Bank does business;

•forward-looking accounting and financial statement effects; and

•other factors identified and discussed in the Bank’s public filings with the Securities and Exchange Commission (SEC).

Actual results may differ from forward-looking statements for many reasons including, but not limited to:

•future economic and market conditions, including, for example, inflation and deflation, the timing and volume of market activity; general consumer confidence and spending habits; the strength of local economies in which the Bank or its members conducts its business; housing prices, employment rates, and interest-rate changes;

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•changes in the demand for the Bank’s advances and other products and services resulting from changes in members’ deposit flows and credit demands, as well as from changes in other sources of funding and liquidity available to members;

•changes in the financial health of the Bank’s members;

•volatility of market prices, rates, and indices that could affect the value of collateral held by the Bank as security for the obligations of Bank members and counterparties to derivatives and similar agreements;

•the risk of changes in market interest rates on the Bank’s interest-rate sensitive assets and liabilities;

•changes in various governmental monetary or fiscal policies, as well as legislative and regulatory changes, including changes in accounting principles generally accepted in the United States of America (GAAP) and related industry practices and standards, or the application thereof;

•changes in the credit ratings of the U.S. government and/or the FHLBanks;

•political, national, and world events, including acts of war, terrorism, natural disasters, global pandemics or other catastrophic events, and legislative, regulatory, judicial, or other developments (including changes to the United States Executive Branch as a result of elections) that affect the economy, the Bank’s market area, the Bank, its members, counterparties, its federal regulators, and/or investors in the consolidated obligations of the FHLBanks;

•competitive forces, including other sources of funding available to Bank members, and other entities borrowing funds in the capital markets;

•the ability to attract and retain skilled individuals, including qualified directors and executive officers;

•the Bank’s ability to develop, implement, promote the efficient performance of, and support and safeguard, technology and information systems, including those provided by third-parties, sufficient to measure and effectively manage the cybersecurity risks and risks of the Bank’s business without significant interruption;

•changes in investor demand for consolidated obligations of the FHLBanks and/or the terms of derivatives and similar agreements, including changes in investor preference and demand for certain terms of these instruments, which may be less attractive to the Bank, or which the Bank may be unable to offer;

•the Bank’s ability to introduce, support, and manage the growth of new products and services and to successfully manage the risks associated with those products and services;

•the Bank’s ability to successfully manage the credit and other risks associated with any new types of collateral securing advances;

•the Bank’s ability to identify, manage, mitigate, and/or remedy internal control weaknesses and other operational risks;

•the availability from acceptable counterparties, upon acceptable terms, of swaps, options, and other derivative financial instruments of the types and in the quantities needed for investment funding and risk-management purposes;

•the uncertainty and costs of litigation, including litigation filed against one or more of the FHLBanks;

•membership changes, including the willingness of the Bank’s members to do business with the Bank whether or not the Bank is paying dividends or repurchasing excess capital stock and changes resulting from mergers or changes in the principal place of business of Bank members, which could result in decreased advances or other business from such members;

•the reliability of the Bank’s projections, assumptions, and models on its future financial performance and condition, including dividend projections;

•changes in the FHLBank Act or Finance Agency regulations that affect FHLBank operations and regulatory oversight or changes in other statutes or regulations applicable to the FHLBanks or their members, including those that may result from the Finance Agency’s comprehensive review and analysis of the FHLBank System that began in 2022;

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•adverse developments or events affecting or involving one or more other FHLBanks or the FHLBank System in general, and

•other factors and risks described under “Risk Factors” herein and in any of the Bank’s subsequent reports filed with the SEC and available on its website.

These risk factors are not exhaustive. New risk factors may emerge from time to time. The Bank cannot predict such new risk factors nor can it assess the impact, if any, of such new risk factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those implied by any forward-looking statements.

PART I

Item 1. Business.

Overview

General. The Bank is a federally chartered corporation that was organized in 1932 and is one of 11 district FHLBanks. The FHLBanks, along with the Office of Finance, comprise the FHLBank System. The FHLBanks are U.S. government-sponsored enterprises (GSEs) organized under the authority of the FHLBank Act. Each FHLBank operates as a separate entity within a defined geographic district and has its own management, employees, and board of directors. The Bank’s defined geographic district includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The Bank is supervised and regulated by the Finance Agency, an independent federal agency in the executive branch of the U.S. government.

Cooperative. The Bank is a cooperative owned by member institutions that are required to meet certain eligibility criteria and purchase capital stock in the Bank in order to become members of the Bank. Federally insured depository institutions, insurance companies, privately insured state-chartered credit unions, and community development financial institutions (CDFIs) with principal place of business located in the Bank’s defined geographic district and engaged in residential housing finance can be eligible to apply for membership. The Bank’s capital stock is not publicly traded and is owned entirely by current or former members and certain non-members that own the Bank’s capital stock as a result of a merger with or acquisition of a Bank member. The Bank’s membership totaled 788 financial institutions, comprised of 417 commercial banks, 250 credit unions, 59 insurance companies, 48 savings institutions, and 14 CDFIs as of December 31, 2024.

Business Model. As a cooperative, the Bank’s customers are also its owners. The Bank strategically focuses on enhancing membership value in the cooperative by providing readily available, competitively priced funding, a potential return on investments, support for community investment activities, and other credit and noncredit products and services, including education opportunities on a range of topics to its member institutions. The Bank serves the public by providing its member institutions with a source of liquidity, thereby primarily enhancing the availability of credit for residential mortgages and targeted community developments. The Bank primarily supports this mission by offering collateralized loans, known as advances, to its members.

The Bank’s primary source of funds is proceeds from the sale of FHLBank debt instruments to the public. These debt instruments, known as “consolidated obligations,” are the joint and several obligations of all the FHLBanks. Because of the FHLBanks’ GSE status, the FHLBanks are generally able to raise funds at favorable rates. The Bank’s cooperative ownership structure allows the Bank to pass along the benefit of these low funding rates to its members. The U.S. government does not guarantee the debt securities or other obligations of the Bank or the FHLBank System.

Business. The Bank manages its business as one operating segment. The president and chief executive office is the chief operating decision maker and reviews enterprise-wide financial information to allocate resources and assess performance.

Based on the applicable regulation, the mission of the Bank is to provide to its members and housing associates financial products and services, including but not limited to advances, that assist and enhance such members' and housing associates' financing of: (1) housing, including single-family and multi-family housing serving consumers at all income levels; and (2) community lending. As part of its mission, the Bank serves as a reliable source of liquidity to its members throughout the economic cycle. The Finance Agency issued an Advisory Bulletin providing further guidance on FHLBank core mission achievement. The Advisory Bulletin provides that when developing its strategic business plan with respect to core mission, FHLBanks should consider the guidelines established in the Advisory Bulletin. Pursuant to the Advisory Bulletin, the Finance

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Agency will assess each FHLBank’s core mission achievement by evaluating its core mission asset ratio, calculated as the ratio of primary mission assets, which include advances and acquired member assets, to consolidated obligations, less U.S. Treasury securities held for liquidity purposes and classified as trading or available for sale. This ratio is calculated annually at year-end, using annual average par values. Based on this ratio, the Finance Agency has provided the following expectations and framework for each FHLBank’s strategic plan:

•when the ratio is at least 70 percent or higher, the strategic plan should include an assessment of the FHLBank’s prospects for maintaining this level;

•when the ratio is at least 55 percent but less than 70 percent, the strategic plan should explain the FHLBank’s plan to bring the ratio closer to the preferred ratio; and

•when the ratio is below 55 percent, the strategic plan should include an explanation of the circumstances that caused the ratio to be at that level and detailed plans to increase the ratio. If the FHLBank maintains a ratio below 55 percent over the course of several consecutive reviews, then the board of directors should consider possible strategic alternatives.

The Bank’s core mission activities primarily include the issuance of advances. The Bank’s core mission asset ratio was 71.6 percent and 75.8 percent as of December 31, 2024 and 2023, respectively.

The Bank’s mission activities also include the Bank’s Affordable Housing Program (AHP) which provides low to no cost funding to finance rental and for-sale housing for very low-, low-, and moderate-income households. Each FHLBank must set aside 10 percent of its income subject to assessment for AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100 million. In addition to the required AHP assessment, the Bank’s board of directors may, from time to time, authorize additional voluntary housing contributions to further the Bank’s affordable housing mission. These programs will be discussed in more detail in Item 1. Business—Community Investment Services.

Under the FHLBank Act, the Bank is exempt from ordinary federal, state, and local taxation, except employment and real property taxes. It does not have any subsidiaries nor does it sponsor any off-balance sheet special purpose entities.

For additional information regarding the Bank’s financial condition, changes in financial condition, and results of operations, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Products and Services

The Bank’s products and services include the following:

•Credit Products;

•Community Investment Services; and

•Cash Management and Other Services.

Credit Products

The credit products that the Bank offers to its members include advances and standby letters of credit.

Advances

Advances are the Bank’s primary product. Advances are fully secured loans made to members and eligible housing finance agencies, authorities, and organizations called “housing associates” (non-members that are approved mortgagees under Title II of the National Housing Act). The carrying value of the Bank’s outstanding advances was $85.8 billion and $96.6 billion as of December 31, 2024 and 2023, respectively, and advances represented 58.4 percent and 63.4 percent of total assets as of December 31, 2024 and 2023, respectively. Advances generated 65.4 percent, 71.0 percent, and 69.6 percent of total interest income for the years ended December 31, 2024, 2023, and 2022, respectively.

Advances serve as a funding source used by the Bank’s members for a variety of conforming and nonconforming mortgages. Thus, advances provide financial support to housing markets, including low- and moderate-income households. Advances can also supply interim funding for members that choose to sell or securitize their mortgages.

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Generally, member institutions use the Bank’s advances for one or more of the following purposes:

•providing funding for mortgages held in the member’s portfolio, including both conforming and nonconforming mortgages;

•providing temporary funding during the origination, packaging, and sale of mortgages into the secondary market;

•providing funding for commercial real estate loans;

•assisting with asset-liability management by matching the maturity and prepayment characteristics of mortgage loans or adjusting the sensitivity of the member’s balance sheet to interest-rate changes;

•providing a cost-effective alternative to meet contingent liquidity needs and adhere to liquidity management strategies; and

•providing funding for community investment and economic development.

Pursuant to statutory and regulatory requirements, the Bank’s long-term advances, other than a Community Investment Cash Advance (CICA), must be for the purpose of enabling a member to purchase or fund new or existing residential housing finance assets. The Bank uses the proxy test authorized by Finance Agency regulations to make this determination, by confirming, in connection with each long-term advance, that the principal amount of all long-term advances currently held by the member does not exceed the total book value of residential housing finance assets held by such member.

Eligible collateral is defined by the FHLBank Act, Finance Agency regulations, and the Bank’s credit and collateral policy. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower, thereby obtaining a security interest in eligible collateral to secure an advance prior to the time that the Bank originates or renews an advance. The Bank also perfects its security interest in collateral prior to making an advance to the borrower. As additional security for a member’s indebtedness, the Bank has a statutory and contractual lien on the member’s capital stock in the Bank. The Bank may also require additional or substitute collateral from a borrower, as provided in the FHLBank Act and the financing documents between the Bank and its borrowers.

The Bank has processes in place to continuously monitor and assess member creditworthiness and financial condition to determine credit availability to a member that includes considerations on the term and maximum dollar amount of advances that the Bank will lend to a particular member. In addition, the Bank has processes in place for collateral evaluation which will provide for discounts to eligible collateral and for the periodic revaluations of the collateral pledged by each member to secure its outstanding advances. The Bank has never experienced a credit loss on an advance.

The FHLBank Act affords any security interest granted to the Bank by any member of the Bank, or any affiliate of any such member, priority over the claims and rights of any party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), other than the claims and rights of a party that (1) would be entitled to priority under otherwise applicable law; and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with applicable state law. Most members provide the Bank with a blanket lien covering substantially all of the member’s real estate-related assets and their consent for the Bank to file a financing statement evidencing the blanket lien. The Bank requires delivery of cash and securities pledged to the Bank as collateral. Delivery of loan collateral is also required when pledged by insurance companies, CDFIs, and housing associates. For most commercial bank

and credit union members, delivery of loan collateral is not required. The Bank periodically works with commercial bank and credit union members to release collateral from the Bank’s lien to permit such members to pledge those assets to support borrowings, or potential borrowings, from the Federal Reserve Banks’ discount window.

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The Bank offers standard and customized advances to fit a variety of member needs. Generally, subject to a member’s financial condition and available funding, the Bank offers maturities as described below, but longer maturities are available. The Bank’s advances include, among other products, the following:

Adjustable- or variable-rate indexed advances. Adjustable- or variable-rate indexed advances include the following:

•Daily Rate Credit Advance (DRC Advance). The DRC Advance provides overnight or short-term funding with rate resets on a daily basis, similar to federal funds lines. The DRC Advance is available generally from one day to 12 months.

•Adjustable Rate Credit Advance (ARC Advance). The ARC Advance is an advance that floats to an index and provides intermediate and long-term funding with rate resets at specified intervals. The ARC Advance is available for a term generally of up to 10 years.

•Callable SOFR Floater. This is an advance that provides intermediate funding at a variable rate, tied to Secured Overnight Financing Rate (SOFR) with the option to repay the advance on specified dates with no prepayment fee. The call option may be Bermudan (quarterly) or European (one-time). The interest rate resets at periodic intervals, so pricing adjusts automatically to changing market conditions. Members can choose the advance term and rate reset period.

Fixed-rate advances. Fixed-rate advances include the following:

•Fixed Rate Credit Advance (FRC Advance). The FRC Advance offers fixed-rate funds with principal due at maturity generally from one month to 20 years. The Bank allows for the inclusion of interest-rate caps and/or floors in certain FRC Advances with terms of 12 months or greater and a par value of $1 million or more.

•Callable Advance. The callable advance is a fixed-rate advance with a fixed maturity and the option for the borrower to repay the advance on an option exercise date(s) before maturity without a fee. The options can be Bermudan or European. The Bank offers this product with a maturity generally of up to 10 years with options generally from three months to 10 years.

•Expander Advance. The expander advance is a fixed-rate advance with a fixed maturity and an option by the borrower to increase the amount of the advance on a predetermined future date at a predetermined interest rate. The option may only be European. The Bank has established internal limits on the amount of such options that may be sold based upon which quarter they will mature. The Bank offers this product with a maturity generally of two years to 20 years with an option exercise date that can be set generally from one month to 10 years.

•Principal Reducing Credit Advance (PRC Advance). The PRC Advance is a fixed-rate advance with a final maturity generally of up to 20 years that have predetermined principal reductions on specific dates. The reduction schedule is predetermined by the borrower and may be scheduled on a monthly, quarterly, semi-annual, or annual basis. Amortization options include equal payments or structures similar to a mortgage.

Convertible advances. In a convertible advance, the Bank purchases an option from the borrower that allows the Bank to modify the interest rate on the advance from fixed to variable on certain specified dates. The Bank’s option can be Bermudan or European. The Bank offers this product with a maturity generally of up to 15 years with options exercise dates generally from three months to 15 years.

Forward starting advances. With the forward starting advance, the borrower may enter into the terms of any structured advance, including the FRC Advance, ARC Advance, or Expander Advance, with a future settlement date. Interest begins to accrue on the settlement date. A termination fee applies if the borrower voluntarily terminates the advance prior to the settlement date.

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The following table presents the par value of outstanding advances by product characteristics (dollars in millions). See Note 6—Advances to the Bank’s 2024 audited financial statements for further information on the distinction between par value and carrying value of outstanding advances.

	As of December 31,
	2024			2023
	Amount		Percent of Total	Amount		Percent of Total
Adjustable or variable-rate indexed	$	49,512	57.36	$	57,686	59.50
Fixed rate (1)	32,608		37.78	36,187		37.33
Convertible	3,916		4.54	2,693		2.78
Principal reducing credit	272		0.32	382		0.39
Total par value	$	86,308	100.00	$	96,948	100.00

 ____________

(1) Includes convertible advances whose conversion options have expired.

The Bank establishes interest rates on advances using the Bank’s cost of funds on consolidated obligations and the interest-rate swap market. The Bank establishes an interest rate applicable to each type of advance each day and then adjusts those rates during the day to reflect changes in the cost of funds and interest rates.

The Bank includes prepayment fee provisions in most advance transactions. With respect to callable advances, prepayment fees apply to prepayments on dates other than option exercise dates. The Bank also offers variable-rate prepayable advances, in which prepayment fees apply to prepayments made on dates other than certain specified dates. As required by Finance Agency regulations, the prepayment fee is intended to make the Bank financially indifferent to a borrower’s decision to prepay an advance before maturity or, with respect to a callable advance, on a date other than an option exercise date.

The following table presents information on the Bank’s 10 largest borrowers of advances (dollars in millions):

		As of December 31, 2024
Institution	State of Membership	Advances  Par Value		Percent of Total Advances	Weighted-average Interest Rate (%) (1)
Truist Bank	North Carolina	$	19,801	22.94	4.71
Bank of America, National Association	North Carolina	12,849		14.89	4.78
Navy Federal Credit Union	Virginia	8,765		10.15	4.38
EverBank, N.A.	Florida	4,385		5.08	4.70
Brighthouse Life Insurance Company	North Carolina	4,300		4.98	3.83
BankUnited, National Association	Florida	2,930		3.40	4.60
Fidelity & Guaranty Life Insurance Co.	Maryland	2,842		3.29	3.89
City National Bank of Florida	Florida	2,725		3.16	4.40
Regions Bank	Alabama	2,500		2.90	4.88
VyStar Credit Union	Florida	2,220		2.57	4.53
Subtotal (10 largest borrowers)		63,317		73.36	4.56
Subtotal (all other borrowers)		22,991		26.64	4.20
Total par value		$	86,308	100.00	4.47

 ____________

(1) The average interest rate of the member’s advance portfolio weighted by each advance’s outstanding balance.

A description of the Bank’s credit risk management and collateral valuation methodology as it relates to its advance activity is contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Advances.

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Standby Letters of Credit

The Bank issues irrevocable standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Members may use standby letters of credit for residential housing financing and community lending, for liquidity and asset-liability management or to provide members with liquidity or other funding. In particular, members often use standby letters of credit as collateral for deposits from public sector entities. Standby letters of credit are generally available for nonrenewable terms of up to five years or for one-year terms that are renewable annually with a final expiration date of up to 10 years after issuance. The Bank requires members to fully collateralize the face amount of any standby letter of credit issued by the Bank during the term of the standby letter of credit. The Bank also charges members a fee based on the face amount of the standby letter of credit. If the Bank is required to make a payment for a beneficiary’s draw, the amount must be reimbursed by the member or, subject to the Bank’s discretion, may be converted into an advance to the member. The Bank’s underwriting and collateral requirements for standby letters of credit are the same as they are for advances.

The Bank has never experienced a credit loss related to a standby letter of credit reimbursement obligation. Unlike advances, standby letters of credit are accounted for as financial guarantees because a standby letter of credit may expire in accordance with its terms without being drawn upon by the beneficiary. The Bank had $18.3 billion and $15.6 billion of outstanding standby letters of credit as of December 31, 2024 and 2023, respectively.

Advances and Standby Letters of Credit Combined

The following table presents information on the Bank’s 10 largest borrowers of advances and standby letters of credit combined (dollars in millions):

		As of December 31, 2024
Institution	State of Membership	Advances Par Value and Standby Letters of Credit Balance		Percent of Total Advances Par Value and Standby Letters of Credit
Truist Bank	North Carolina	$	25,301	24.18
Bank of America, National Association	North Carolina	13,494		12.90
Navy Federal Credit Union	Virginia	8,767		8.38
Regions Bank	Alabama	5,500		5.26
EverBank, N.A.	Florida	4,385		4.19
Brighthouse Life Insurance Company	North Carolina	4,300		4.11
BankUnited, National Association	Florida	3,830		3.66
City National Bank of Florida	Florida	3,228		3.09
Fidelity & Guaranty Life Insurance Co.	Maryland	2,842		2.72
VyStar Credit Union	Florida	2,220		2.12
Subtotal (10 largest borrowers)		73,867		70.61
Subtotal (all other borrowers)		30,751		29.39
Total advances par value and standby letters of credit		$	104,618	100.00

Community Investment Services

The Bank’s AHP provides no-cost or low-cost funds in the form of a direct subsidy or a subsidized advance to members to support the financing of purchase, construction or rehabilitation of rental and owner-occupied housing for very low-, low-, and moderate-income households. The Bank offers the AHP General Fund and AHP Homeownership Set-aside programs. Additionally, the CICA program is offered to members in the form of a discounted advance program that supports projects that provide affordable housing and economic development benefiting those households. The Bank also funds other housing and community initiatives such as the Workforce Housing Plus+, Heirs Property Family Wealth Protection Fund, and Multifamily Housing Bridge Fund (Bridge Fund). A description of each program is as follows:

•the AHP General Fund is offered annually through a competitive application process and provides funds for purchase, construction or rehabilitation for rental or owner-occupied real estate projects, submitted through member financial institutions;

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•the AHP Homeownership Set-aside program provides funds that can be used by homebuyers for down payment, closing costs, and other costs associated with the purchase, purchase/rehabilitation, or rehabilitation of homes for households at or below 80 percent of the area median income. The funds are available to eligible parties through member financial institutions and through the following distinct products: First-time Homebuyer, Community Partners, and Community Rebuild and Restore;

•the CICA program consists of the Community Investment Program and the Economic Development Program. These programs provide the Bank’s members with access to low-cost funding to create affordable rental and homeownership opportunities and to engage in commercial and economic development activities that benefit low- and moderate-income individuals and neighborhoods;

•the Workforce Housing Plus+ program was created in response to economic dynamics across the Bank’s district. The program was launched in June 2024 to support affordable housing providing prospective homebuyers with incomes between 80.01 percent to 120 percent of area median income up to $15,000 each to put towards the purchase of a primary home. The purchased properties also must be located in the Bank’s district.

•the Heirs’ Property Family Wealth Protection Fund was launched in October 2024. Through this fund, organizations working to address the challenge of heirs’ property were invited to apply for up to $500,000 in grant funding through the Bank’s members to assist property owners located in low-to-moderate income areas within communities in the Bank’s district. Heirs’ property issues arise when there is a lack of a clear title or documentation of home ownership, when a property owner passes away without a will designating a new owner, the heirs fail to properly vest title to the property in their names, or when a property is left to multiple beneficiaries without a plan to manage the property, resulting in fractured or tangled title.

•the Bridge Fund helps close funding gaps for affordable multifamily rental housing projects caused by the steep rise in interest rates and construction costs. The Bridge Fund was approved by the board in 2023 and offered up to $500,000 per project to the Bank’s member financial institutions and their community housing partners in a competitive application process. Eligible projects for the Bridge Fund include multifamily and mixed-use rental housing projects targeted to households earning up to 120 percent of the area median income. Projects must be at least fifty percent complete at the time of application and demonstrate a financing gap related to an increase in construction hard costs, such as construction materials and labor. Projects also must be located in the Bank’s district.

Each FHLBank must set aside 10 percent of its income subject to assessment for AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100 million. The aggregate annual contribution of the FHLBanks exceeded $100 million for the years ended December 31, 2024, 2023, and 2022. For purposes of the AHP calculation, each FHLBank’s income subject to assessment is defined as the individual FHLBank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The assessment for AHP is further discussed under the Taxation/Assessments heading below. The Bank’s AHP assessments were $77 million, $72 million, and $21 million for the years ended December 31, 2024, 2023, and 2022, respectively.

In addition to the required AHP assessment, the Bank’s board of directors may, from time to time, authorize additional voluntary contributions. In 2024, the Bank’s board of directors authorized $49 million of additional voluntary contributions. This included $23 million in voluntary non-statutory AHP contributions and $26 million in voluntary non-AHP contributions.

A description of the Bank's funding of these programs is contained in Item 7 MD&A - Results of Operations - Noninterest Expense and Assessments.

Cash Management and Other Services

The Bank provides a variety of services to help members meet day-to-day cash management needs. These services include cash management services that support member advance activity, such as daily investment accounts, automated clearing house transactions, and custodial mortgage accounts. In addition to cash management services, the Bank provides other noncredit services, including wire transfer services and safekeeping services. These cash management, wire transfer, and safekeeping services do not generate material amounts of income and are performed primarily as ancillary services for the Bank’s members.

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The Bank also acts as an intermediary to meet certain derivatives needs of its smaller members that have limited or no access to the capital markets. This service assists members with asset-liability management by giving them indirect access to the capital markets. These intermediary transactions involve the Bank entering into a derivative with a member and then entering into a mirror-image derivative with one of the Bank’s approved counterparties. The derivatives entered into by the Bank as a result of its intermediary activities do not qualify for hedge accounting treatment and are separately marked to fair value through earnings. The Bank attempts to earn income from this service sufficient to cover its operating expenses through the minor difference in rates on these mirror-image derivatives. The net result of the accounting for these derivatives is not material to the operating results of the Bank. The Bank may require both the member and the counterparty to post collateral for any market value exposure that may exist during the life of the transaction.

Mortgage Loan Purchase Programs

The Bank’s mortgage loan purchase programs provided members an alternative to holding mortgage loans in a portfolio or selling them into the secondary market. Prior to 2008, the Bank purchased loans directly from member participating financial institutions (PFIs) through the Mortgage Partnership Finance® (MPF®) Program, a program developed by FHLBank Chicago and the Mortgage Purchase Program (MPP), a program separately established by the Bank. The Bank ceased directly purchasing new mortgage assets under these mortgage programs in 2008. However, the Bank continues to support its existing MPP and MPF Program mortgage loan portfolios. The Bank may also acquire fixed-rate residential mortgage loans through participation in eligible mortgage loans purchased from other FHLBanks.

From time to time, the Bank had offered various products to members through the MPF Program. FHLBank Chicago, as the MPF Program provider, is responsible for providing transaction processing services, as well as developing and maintaining the underwriting criteria and program servicing guide. The Bank pays FHLBank Chicago a fee for providing these services. Conventional loans purchased from PFIs under the MPF Program are subject to varying levels of loss allocation and credit enhancement structures. Federal Housing Administration (FHA)-insured and Department of Veterans Affairs (VA)-guaranteed loans are not subject to the credit enhancement obligations applicable to conventional loans under the MPF Program. The PFI may retain the right and responsibility for servicing the loans or sell the servicing rights, and the PFI may be required to repurchase a loan in the event of a breach of eligibility requirement or other warranty.

One of the Bank’s PFIs under the MPF Program, Truist Bank, was among the Bank’s top 10 borrowers as of December 31, 2024.

The Bank’s MPP is independent of other FHLBanks’ mortgage loan programs. There were no MPP PFIs that were among the Bank’s top 10 borrowers as of December 31, 2024.

The MPF Program and MPP are authorized under applicable regulations. Regulatory interpretive guidance provides that an FHLBank may sell loans acquired through its mortgage loan purchase programs so long as it also sells the related credit enhancement obligation. The Bank currently is not selling loans it has acquired through these mortgage loan purchase programs. The Bank maintains a portfolio of mortgage loans that were historically purchased directly from PFIs and are recorded on the balance sheet. The contractual maturity dates of some of the purchased loans extend out to 2047.

Investments

The Bank maintains a portfolio of investment securities and other investments for liquidity purposes to provide for the availability of funds to meet member credit needs and to provide additional earnings for the Bank. As of December 31, 2024, the Bank’s investment securities consisted of MBS issued by GSEs or U.S. government agencies; securities issued by the U.S. government or U.S. government agencies; and state and local housing agency obligations. The investment securities portfolio generally provides the Bank with higher returns than those available in other permissible investments. The Bank’s other investments may consist of interest-bearing deposits, overnight and term federal funds sold, and securities purchased under agreements to resell. U.S. Treasury obligations, U.S. agency, and GSE securities were 50.3 percent and 57.5 percent of the Bank’s total investments as of December 31, 2024 and 2023, respectively, as discussed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition—Investments. Investments generated 34.5 percent, 28.9 percent, and 30.1 percent of total interest income for the years ended December 31, 2024, 2023, and 2022, respectively.

The Bank’s MBS investment practice is to purchase MBS from a group of Bank-approved dealers, which may include “primary dealers.” Primary dealers are banks and securities brokerages that trade in U.S. government securities with the Federal Reserve System. The Bank does not purchase MBS from its members, except in the case in which a member or its affiliate is on the Bank’s list of approved dealers. In all cases, the Bank bases its investment decisions on the relative rates of return of competing

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investments and does not consider whether an MBS is being purchased from or issued by a member or an affiliate of a member. The Bank’s MBS balance did not include any investments that were issued by the Bank’s members or an affiliate of a member as of December 31, 2024 and 2023.

Finance Agency regulations prohibit the Bank from investing in certain types of securities. These restrictions are discussed in more detail in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Investments.

Finance Agency regulations prohibit an FHLBank from purchasing MBS and asset-backed securities if its investment in such securities exceeds 300 percent of the FHLBank’s previous month-end regulatory capital on the day it purchases the securities. Regulatory capital is defined as the sum of permanent capital, the amount paid-in for Class A stock (if any), the amount of the Bank’s general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. For discussion regarding the Bank’s compliance with this regulatory requirement, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition—Investments.

The Bank is subject to credit and market risk on its investments. For discussion as to how the Bank manages these risks, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Investments.

Funding Sources

Deposits

The FHLBank Act allows the Bank to accept deposits from its members, any institution for which it is providing correspondent services, other FHLBanks, or other governmental instrumentalities. Deposits provide some of the Bank’s funding resources while also giving members a low-risk earning asset that satisfies their regulatory liquidity requirements. The Bank had demand and overnight deposits of $2.3 billion and $1.6 billion as of December 31, 2024 and 2023, respectively.

To support its member deposits, the FHLBank Act requires the Bank to have an amount equal to or greater than the current deposits received from its members as a reserve. These reserves are required to be invested in obligations of the United States, deposits in eligible banks or trust companies, or advances with maturities not exceeding five years. The Bank had excess deposit reserves of $92.0 billion and $104.0 billion as of December 31, 2024 and 2023, respectively.

Consolidated Obligations

Consolidated obligations, consisting of bonds and discount notes, are the joint and several obligations of the FHLBanks, backed only by the financial resources of the FHLBanks. Consolidated obligations are not obligations of the U.S. government, and the U.S. does not guarantee the consolidated obligations. The Office of Finance has responsibility for facilitating and executing the issuance of consolidated obligations for all the FHLBanks. It also services all outstanding debt. The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf); however, the Bank is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on consolidated obligations of all the FHLBanks. Pursuant to other arrangements to which the Bank is bound by, an FHLBank may also be required to make payment of principal or interest payments due on any consolidated obligation of any other FHLBank upon failure of such FHLBank to meet an obligation. If the principal or interest on any consolidated obligation issued on behalf of the Bank is not paid in full when due, the Bank may not pay any extraordinary expenses or pay dividends to, or redeem or repurchase shares of capital stock from, any member of the Bank. At any time, the Finance Agency may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation.

To the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank, the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank. However, if the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its obligations, the Finance Agency may allocate the outstanding liability among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding or on any other basis the Finance Agency may determine.

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Finance Agency regulations also state that the Bank must maintain the following types of assets that are free from any lien or pledge in an aggregate amount at least equal to the amount of the Bank’s portion of the consolidated obligations outstanding and equal to such Bank’s participation in all such consolidated obligations, provided that any assets that are subject to a lien or pledge for the benefit of the holders of any issue of consolidated obligations shall be treated as if they were assets free from any lien or pledge for purposes of this negative pledge requirement:

•cash;

•obligations of, or fully guaranteed by, the United States;

•secured advances;

•mortgages that have any guaranty, insurance, or commitment from the U.S. or any agency of the U.S.; and

•investments described in Section 16(a) of the FHLBank Act that allow an FHLBank to carry portions of its net earnings in a reserve account, which, among other items, can include securities that a fiduciary or trust fund may invest in under the laws of the state in which the FHLBank is located.

The Bank was in compliance with this Finance Agency regulation as of December 31, 2024 and 2023.

Consolidated obligations are issued with either fixed- or variable-rate coupon payment terms that may use a variety of indices, such as SOFR and Overnight Index Swap (OIS). The Bank, working through the Office of Finance, is able to customize consolidated obligations to meet investor demands. Customized features can include different indices and embedded derivatives. The Bank offsets these customized features predominantly by derivatives to reduce the market risk associated with the consolidated obligations.

Consolidated Obligation Bonds. Consolidated obligation bonds satisfy longer-term funding requirements. Typically, the maturity of these securities ranges from one year to 10 years, but the maturity is not subject to any statutory or regulatory limit. Consolidated obligation bonds can be issued and distributed through negotiated or competitively bid transactions with approved underwriters or selling group members. The FHLBanks also use the TAP Issue Program for fixed-rate, noncallable bonds. Under this program, the FHLBanks offer debt obligations at specific maturities that may be reopened daily, generally during a three-month period through competitive auctions. The goal of the TAP Issue Program is to aggregate frequent smaller issues into a larger bond issue that may have greater market liquidity.

Consolidated Obligation Discount Notes. Through the Office of Finance, the FHLBanks also issue consolidated obligation discount notes to provide short-term funds for advances to members, for the Bank’s other investments, and for the Bank’s variable-rate and convertible advance programs. These securities have maturities up to 366 days and are offered daily through a consolidated obligation discount note selling group. Discount notes are issued at a discount and mature at par.

Certification and Reporting Obligations. Under Finance Agency regulations, before the end of each calendar quarter and before paying any dividends for that quarter, the president of the Bank must certify to the Finance Agency that, based upon known current facts and financial information, the Bank will remain in compliance with applicable liquidity requirements and will remain capable of making full and timely payments of all current obligations (which includes the Bank’s obligation to pay principal and interest on consolidated obligations issued on its behalf through the Office of Finance) coming due during the next quarter. The Bank is required to provide notice to the Finance Agency upon the occurrence of any of the following:

•the Bank is unable to provide the required certification;

•the Bank projects, at any time, that it will fail to comply with its liquidity requirements or will be unable to meet all of its current obligations due during the quarter;

•the Bank actually fails to comply with its liquidity requirements or to meet all of its current obligations due during the quarter; or

•the Bank negotiates to enter or enters into an agreement with one or more other FHLBanks to obtain financial assistance to meet its current obligations due during the quarter.

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The Bank must file a consolidated obligation payment plan for Finance Agency approval upon the occurrence of any of the following:

•the Bank becomes a noncomplying FHLBank as a result of failing to provide a required certification related to liquidity requirements and ability to meet all current obligations;

•the Bank becomes a noncomplying FHLBank as a result of being required to provide notice to the Finance Agency of certain matters related to liquidity requirements or inability to meet current obligations; or

•the Finance Agency determines that the Bank will cease to be in compliance with its statutory or regulatory liquidity requirements or will lack the capacity to meet all of its current obligations due during the quarter.

Regulations permit a noncompliant FHLBank to continue to incur and pay normal operating expenses in the regular course of business. However, a noncompliant FHLBank may not incur or pay any extraordinary expenses, declare or pay dividends, or redeem any capital stock until the Finance Agency has approved the FHLBank’s consolidated obligation payment plan or inter-FHLBank assistance agreement or has ordered another remedy, and the noncompliant FHLBank has paid all its direct obligations.

Capital and Capital Rules

The Bank must comply with regulatory requirements for total regulatory capital, leverage capital, and risk-based capital. To satisfy these capital requirements, the Bank maintains a capital plan. Each member’s minimum stock requirement is an amount equal to the sum of a “membership” stock component and an “activity-based” stock component under the capital plan. The FHLBank Act and applicable regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum leverage and risk-based capital requirements. If necessary, the Bank may adjust the minimum stock requirement from time to time within the ranges established in the capital plan. Each member is required to comply promptly with any adjustment to the minimum stock requirement.

As of December 31, 2024, the membership stock requirement was 0.07 percent (seven basis points) of the member’s total assets, subject to a cap of $18 million.

As of December 31, 2024, the activity-based stock requirement was the sum of the following:

•4.75 percent of the member’s outstanding par value of advances;

•8.00 percent of any outstanding targeted debt or equity investment (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004; and

•0.10 percent (ten basis points) of members’ outstanding standby letters of credit.

In addition, the activity-based stock requirement may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets), which was set at zero as of December 31, 2024. Since the Bank did not have any multifamily residential mortgage loan assets purchased from members or other targeted debt or equity investments outstanding, the targeted debt or equity investment stock requirement was inapplicable as of December 31, 2024.

Although applicable regulations allow the Bank to issue Class A stock, Class B stock, or both in any combination, to its members, the Bank’s capital plan allows it to issue only Class B stock.

The Bank’s financial management policy contains provisions to help preserve the value of the members’ investment in the Bank and reasonably mitigate the effect on capital of unanticipated operating and accounting events. For additional information regarding the Bank’s capital and capital requirements, as well as information regarding the Bank’s retained earnings and dividends, refer to Item 5. Market for Registrant’s Common Equity—Related Stockholder Matters and Issuer Purchases of Equity Securities; Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition—Capital; and Note 10—Capital to the Bank’s 2024 audited financial statements.

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Derivatives

Finance Agency regulations and the Bank’s Risk Management Policy establish guidelines for derivatives. These policies and regulations prohibit the trading or speculative use of these instruments and limit permissible credit risk arising from these instruments. The Bank enters into derivatives to manage the exposure to interest-rate risk inherent in otherwise unhedged assets and funding positions, to achieve the Bank’s risk management objectives, and to act as an intermediary between its members and counterparties. These derivatives consist of interest-rate swaps (including callable and putable swaps), swaptions, interest-rate cap and floor agreements, and forward contracts. Generally, the Bank uses derivatives in its overall interest-rate risk management to accomplish one or more of the following objectives:

•preserve a favorable interest-rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps;

•reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond;

•reduce the interest-rate sensitivity and repricing gaps of assets and liabilities;

•mitigate the adverse earnings effects of the shortening or lengthening of certain assets (e.g., mortgage assets) and liabilities;

•protect the value of existing asset or liability positions;

•manage embedded options in assets and liabilities; and

•achieve overall asset/liability management objectives.

The total notional amount of the Bank’s outstanding derivatives was $100.6 billion and $111.6 billion as of December 31, 2024 and 2023, respectively. The contractual or notional amount of a derivative is not a measure of the amount of credit risk from that transaction; rather, the notional amount serves as a basis for calculating periodic interest payments or cash flows.

The Bank may enter into derivatives concurrently with the issuance of consolidated obligations with embedded options. When issuing bonds, the Bank generally simultaneously enters into derivatives to, in effect, convert fixed-rate liabilities into variable-rate liabilities. The continued attractiveness of such debt depends on price relationships in both the bond and derivatives markets. If conditions in these markets change, the Bank may alter the types or terms of the bonds issued. Similarly, the Bank may enter into derivatives in conjunction with the origination of advances with embedded options. Issuing fixed-rate advances while simultaneously entering into derivatives, in effect, converts fixed-rate advances into variable-rate earning assets.

The Bank is subject to credit risk in all derivatives due to potential nonperformance by the derivative counterparty. For further discussion as to how the Bank manages its credit risk and market risk on its derivatives, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management.

Competition

Advances. A number of factors affect demand for the Bank’s advances, including, but not limited to, the availability and cost of other sources of liquidity for the Bank’s members, such as demand deposits, brokered deposits, and the repurchase market. The Bank individually competes with other suppliers of secured and unsecured wholesale funding. Such other suppliers may include the U.S. government, investment banks, commercial banks, and in certain circumstances, other FHLBanks. Smaller members may have access to alternative funding sources through sales of securities under agreements to repurchase, while larger members may have access to all the alternatives listed above. Larger members also may have independent access to the national and global credit markets. The availability of alternative funding sources to members can significantly influence the demand for the Bank’s advances and can vary as a result of a number of factors, including market conditions, member liquidity levels, members’ creditworthiness, and availability of collateral.

Debt Issuance. The Bank competes with Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), other GSEs, and the U.S. Treasury, as well as corporate and supranational entities for funds raised through the issuance of unsecured debt in the national and global debt markets. Increases in the supply of competing debt products may, in the absence of increases in demand, result in higher debt costs or lesser amounts of debt issued at the same cost than otherwise would be the case. In addition, the availability and cost of funds raised through the issuance of certain types

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of unsecured debt may be affected adversely by regulatory initiatives that tend to reduce investments by certain depository institutions in unsecured debt with greater price volatility or interest-rate sensitivity than fixed-rate, fixed-maturity instruments of the same maturity. Further, a perceived or actual higher level of government support for other GSEs may increase demand for their debt securities relative to similar FHLBank securities.

Interest-rate Exchange Agreements. The sale of callable debt and the simultaneous execution of callable interest-rate swaps that mirror the debt have been important sources of competitive funding for the Bank. As such, the availability of markets for callable debt and interest-rate swaps may be an important determinant of the Bank’s relative cost of funds. There is considerable competition among high credit quality issuers in the markets for these instruments.

Regulatory Oversight, Audits, and Examinations

The Bank’s business is subject to extensive regulation and supervision. The laws and regulations to which the Bank is subject cover all key aspects of its business, and directly and indirectly affect the Bank’s product and service offerings, pricing, competitive position and strategic plan, relationship with members and third parties, capital structure, cash needs and uses, and information security. As discussed throughout this Report, such laws and regulations may have a significant effect on key drivers of the Bank’s results of operations, including, for example, the Bank’s capital and liquidity, product and service offerings, risk management, and costs of compliance.

The Finance Agency supervises and regulates the FHLBanks. The Finance Agency is responsible for ensuring that (1) the FHLBanks operate in a safe and sound manner, including maintenance of adequate capital and internal controls; (2) the operations and activities of the FHLBanks foster liquid, efficient, competitive, and resilient national housing finance markets; (3) the FHLBanks comply with applicable laws and regulations; and (4) the FHLBanks carry out their housing finance mission through authorized activities that are consistent with the public interest. In this capacity, the Finance Agency issues regulations and policies that govern, among other things, the permissible activities, powers, investments, risk-management practices, and capital requirements of the FHLBanks, and the authority and duties of FHLBank directors. The Finance Agency conducts annual, on-site examinations of the Bank, as well as periodic off-site reviews. The Bank is subject to ongoing reporting obligations to the Finance Agency, including submission of monthly financial information on its statements of condition and results of operations. The Bank is also subject to regulation by the SEC, the Financial Crimes Enforcement Network, and the Commodity Futures Trading Commission.

The Government Corporation Control Act provides that, before a government corporation (which includes each of the FHLBanks) issues and offers obligations to the public, the Secretary of the Treasury shall prescribe (1) the form, denomination, maturity, interest rate, and conditions of the obligations; (2) the time and manner in which issued; and (3) the selling price. Under the FHLBank Act, the Secretary of the Treasury has the authority, at their discretion, to purchase consolidated obligations up to an aggregate principal amount of $4.0 billion. No borrowings under this authority have been outstanding since 1977.

The Comptroller General has authority under the FHLBank Act to audit or examine the Finance Agency and the Bank and to decide the extent to which they fairly and effectively fulfill the purposes of the FHLBank Act. Furthermore, the Government Corporation Control Act provides that the Comptroller General may review any audit of the financial statements conducted by an independent registered public accounting firm. If the Comptroller General conducts such a review, they must report the results and provide his or her recommendations to Congress, the Office of Management and Budget, and the FHLBank in question. The Comptroller General also may conduct their own audit of any financial statements of the Bank. The Bank was not reviewed or audited by the Comptroller General in 2024.

The Bank has an internal audit department; the Bank’s board of directors has an audit committee; and an independent registered public accounting firm audits the annual financial statements of the Bank. The independent registered public accounting firm conducts these audits following the standards of the Public Company Accounting Oversight Board (United States) and Government Auditing Standards issued by the Comptroller General. The Finance Agency receives the Bank’s Report and audited financial statements. The Bank must submit annual management reports to Congress, the President of the United States, the Office of Management and Budget, and the Comptroller General. These reports include audited financial statements, a statement of internal accounting and administrative control systems, and the report of the independent registered public accounting firm on the financial statements.

Available Information

The Bank maintains a website located at www.fhlbatl.com. The Bank files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, certain Current Reports filed on Form 8-K, and amendments to those reports with the SEC, pursuant to Section

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13(a) or 15(d) of the Securities Exchange Act of 1934. The SEC maintains a website that contains these reports and other information regarding the Bank’s electronic filings located at http://www.sec.gov. Unless otherwise noted, information on these websites, or that can be accessed through these websites, does not constitute a part of this annual report.

Human Capital Resources

The Bank’s human capital is a significant contributor to the achievement of the Bank’s strategic business objectives. In managing the Bank’s human capital, the Bank focuses on its workforce profile and the various programs and philosophies described below.

Workforce Profile

The Bank’s workforce is primarily comprised of corporate employees, with the Bank’s principal operations in one location. As of December 31, 2024, the Bank had 347 full-time employees and 1 part-time employee. The Bank’s workforce is sufficiently staffed, and historically has included a number of longer-tenured employees. As of December 31, 2024, the average tenure of the Bank’s employees was 10.1 years. The Bank strives to both develop talent from within the organization and supplement with external merit-based hires. The Bank believes that developing talent internally results in institutional strength and continuity and promotes loyalty and commitment in the Bank’s employee base, which furthers its success, while adding new employees contributes to new ideas and continuous improvement. There are no collective bargaining agreements with the Bank’s employees. All of the Bank’s employees are chosen on the basis of their qualifications and merit.

Employee Value Proposition

The Bank seeks to attract, develop, engage, and retain a diverse group of talented employees to achieve its strategic business initiatives, enhance business performance and increase member value. The Bank’s Employer of Choice strategy is supported by delivering a competitive employee value proposition focused on five components: culture, career, environment, compensation, and benefits. Specifically, the Bank’s programs include:

•Cash based compensation – base salary, performance based incentives, service awards, and spot bonus program;

•Benefits – retirement plan benefits, health insurance coverage, flexible spending accounts, life and accidental death and dismemberment insurance, supplemental life insurance, and disability insurance;

•Learning and development programs –internal and external programs focused on career growth, leadership development, skills-based training, and educational and professional certification assistance;

•Culture and Community Support – internal groups with various opportunities for participation, transparent communication, sharing, learning, visibility and recognition, community and cultural initiatives, community involvement including a charitable contribution matching program and volunteer hours;

•Succession planning – the Bank’s board of directors and leadership actively engage in succession planning, with defined plans for executive level positions and positions reporting directly to department leaders, as well as identified critical roles;

•Work/Life balance – time away from work including time off for vacation, wellness, holidays, voting, jury duty and bereavement, parental and military leave and flexible work arrangements including a hybrid work model, reduced workweek and flexible schedules; and

•Wellness – onsite fitness center, employee assistance program, health coaching and interactive financial, physical and mental well-being programs and support.

The Bank’s Performance Management program provides a framework for managing and developing employee performance. Annual ratings are based on established competencies and a consistent rating scale. The use of both a qualitative and quantitative rating scale allow managers to align pay and discuss performance and development.

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Community Impact

The Bank is committed to implementing a governance and risk management framework designed to measure its community impact and mission achievement. The community impact program is overseen by a Bank management committee, which is composed of representatives from various areas within the Bank. The community impact program is focused on the development of processes and reporting mechanisms to identify risks and opportunities, and measure the Bank’s impact on identified issues related to the Bank’s mission, members, stakeholders, and communities. The Bank recognizes that identifying, assessing and measuring its impact on community concerns and the effectiveness of its governance structure, are conducive to the Bank’s short- and long-term success. The Bank’s program continues to focus on inclusion of differing experiences and perspectives among its stakeholders, affordable housing, community and economic development, disaster recovery and resiliency in the Bank’s region, and strong corporate governance.

Taxation/Assessments

The Bank is exempt from ordinary federal, state, and local taxation, except employment and real property taxes. However, each FHLBank must set aside 10 percent of their income subject to assessment for the AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100 million. The aggregate annual contribution of the FHLBanks exceeded $100 million for the years ended December 31, 2024, 2023, and 2022. For purposes of the AHP calculation, each FHLBank’s income subject to assessment is defined as the individual FHLBank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. If an FHLBank experiences a net loss for a full year, the FHLBank would have no obligation to the AHP for that year since each FHLBank’s required annual AHP contribution is limited to its annual income subject to assessment. AHP assessments for the Bank were $77 million, $72 million, and $21 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Item 1A. Risk Factors.

The following discussion summarizes some of the more important risks that the Bank faces. This discussion is not exhaustive, and there may be other risks that the Bank faces, which are not described below. These risks should be read in conjunction with the other information included in this Report, including, without limitation, in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, the Financial Statements and Supplemental Data, and “Special Cautionary Notice Regarding Forward-looking Statements.” The risks described below, if realized, could negatively impact the Bank’s business operations, financial condition, and future results of operations and, among other things, could result in the Bank’s inability to pay dividends on, and/or repurchase or redeem, its capital stock.

Business and Regulatory Risk

Continuing inflation, potential changes in monetary and fiscal policies, and broadening geopolitical conflicts could have a significant impact on the economy and to the Bank

In 2024, inflation levels above monetary policy targets, implementation of U.S. monetary and fiscal policies to address inflation, changes in U.S. trade policy, and the ongoing geopolitical conflicts posed risks to the global economy, to the Bank, its members, and counterparties. Uncertainty in the economic environment and changes in monetary and fiscal policies, including the impact resulting from the change in federal executive administration, could increase certain risks faced by the Bank and Bank members and adversely affect the Bank’s results of operations and financial condition. The Bank continues to monitor the impact of these risks and take appropriate actions as needed.

A prolonged downturn in the economy, including the U.S. housing market and related U.S. government monetary policies, could adversely affect the Bank’s business activities and results of operations.

The Bank’s business and results of operations are sensitive to the U.S. economy and the U.S. housing market. A prolonged period of slow growth in the U.S. economy, deterioration in general economic conditions, or a downturn in the housing market could adversely affect the Bank’s members, particularly those whose businesses are concentrated in the mortgage industry. For example, if home prices decline, the value of collateral securing member credit to the Bank may decline, which could in turn increase the possibility of under-collateralization and the risk of loss if the Bank member defaults. Deterioration in the residential or commercial mortgage markets could also affect the value of collateral securing the Bank’s assets.

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Unfavorable economic and market conditions can be caused by many factors. Volatility and uncertainty in global economic and political conditions can affect U.S. economic conditions and financial markets and therefore the Bank’s business activities by changing member borrowing activity and the Bank’s lending and investments patterns. Additionally, natural disasters, pandemics, and other widespread health emergencies, terrorist attacks, cyberattacks, civil unrest, geopolitical instability, or conflicts, trade disruptions, tariffs, economic or other sanctions, or other unanticipated or catastrophic events could create economic and financial disruptions, and uncertainties, which could adversely impact the Bank’s business activities, ability to pay dividends, results of operations, as well as lead to operational difficulties.

The Bank is subject to a complex body of laws and regulations, which could change or be applied in a manner detrimental to the Bank’s operations.

The FHLBanks are GSEs, organized under the authority of the FHLBank Act, and governed by federal laws and regulations as adopted and applied by the Finance Agency. Congress may amend the FHLBank Act or amend or adopt other statutes in ways that significantly affect the rights and obligations of the FHLBanks and the way the FHLBanks carry out their housing finance mission and business operations. Finance Agency, within its statutory authority, may issue regulations that impact the Bank’s securities, businesses and/or operations. New or modified legislation enacted by Congress or regulatory requirements applied or imposed by the Finance Agency or other financial services regulators could have a negative effect on the Bank’s debt securities, ability to conduct business and on the cost of doing business. Reform of the federal support of U.S. housing finance and changes to requirements impacting FHLBank members, including capital requirements, asset composition tests and collateralization of advances, may, if implemented, directly and indirectly impact FHLBanks and other GSEs that support the U.S. housing market. Legislation and regulations affecting the Bank’s investors, dealers of consolidated obligations, and Bank’s members, including related to capital, liquidity and asset requirements, changes relating to credit underwriting standards and member credit risk management requirements may also potentially impact the Bank’s business and earnings ability. Changes to valuation methods of Bank-issued debt securities and its collateralization by Bank members, and other measures targeting Fannie Mae and Freddie Mac, including an end to the ongoing conservatorship of those institutions by the Finance Agency, may, if implemented, directly and indirectly impact FHLBanks and other GSEs that support the U.S.

Changes or inconsistency in statutory or regulatory requirements, or their application, could result in an increase in the Bank’s cost of funding and regulatory compliance; a change in membership or permissible business activities; Bank’s or member additional liquidity and capital requirements (including whether a member meets required tangible capital levels to access advances, or maintains certain asset levels in residential mortgage loans); and/or a decrease in the size, scope, or nature of the Bank’s lending or investment activities, any of which could negatively impact the Bank’s financial condition and results of operations.

Certain executive orders issued by the new current federal executive administration would impact government activity, including the Finance Agency, which suggest the Bank’s regulatory environment is changing. The Bank is not able to predict what changes, if any, will ultimately result from the changing regulatory environment or from the implementation of those relevant executive orders.

A November 2023 Finance Agency report on the FHLBank System is a potential source of important regulatory changes. The report focused on the FHLBank System's: (i) mission; (ii) role as a stable and reliable source of liquidity; (iii) role in housing and community development; and (iv) operational efficiency, structure and governance. The report is discussed in greater detail in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Legislative and Regulatory Developments.

The Bank is not able to predict what changes, if any, will ultimately result from the Finance Agency's recommendations in the report nor is the Bank able to predict the extent or timing of such changes, particularly in light of the changes in the Finance Agency leadership and subsequent potential changes in the Bank’s regulatory environment, as discussed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Legislative and Regulatory Developments. However, any such changes as well as any resulting increased scrutiny of the Bank and the FHLBank System and its mission and activities could affect the Bank’s business operations, results of operations and reputation, and the value of FHLBank membership.

The Bank is also not able to predict the impact resulting from ongoing changes in federal administration, including from any resulting changes to Finance Agency actions and regulatory activity, along with impacts to the FHLBank System and Bank members. Potential changes to Finance Agency regulatory expectations, other political changes, policy changes, trends, government or government advisory committee actions or inaction, new or modified legislation, or government actions

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impacting our members and counterparties, could increase Bank’s operational costs and expenses, result in heightened scrutiny of the Bank, and/or impact the Bank’s business, strategy and operations, which may affect the Bank’s financial condition, or results of operations, or the value of membership in the Bank. These changes may include changes relating to the FHLBanks’ mission, liquidity role, membership and lending requirements, affordable housing contributions, voluntary programs and support for community investment, or changes to our operations, structure, regulated diversity, equity and inclusion programs, and governance. We also cannot predict the new federal administration’s actions relating to U.S. housing finance, including regarding the conservatorship of Fannie Mae and Freddie Mac and potential reforms to their structure, along with any corresponding impacts to the FHLBank System or the mortgage industry.

Refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Legislative and Regulatory Developments for a discussion of recent legislative and regulatory activity that could affect the Bank.

Competition for advances and refinancing risk on short-term advances could have an adverse effect on earnings.

The Bank operates in a highly competitive environment. Advances are the Bank’s primary product offering and represented 58.4 percent of the Bank’s total assets for the year ended December 31, 2024. Demand for advances is affected by, among other factors, the cost and availability of other sources of liquidity for the Bank’s members, including deposits. The Bank competes with other suppliers of wholesale funding, both secured and unsecured. Such other suppliers may include the U.S. government, investment banks, commercial banks and, in certain circumstances, other FHLBanks with which members have a relationship through affiliates. Large institutions may also have independent access to the national and global credit markets. From time to time, these alternative funding sources may offer more favorable lending terms and collateralization practices than the Bank does on its advances. Changes made by the Bank to lower pricing of its advances or to its collateralization practices to compete with these alternative funding sources may decrease the Bank’s profitability on advances, while pricing increases used to help sustain income may render the Bank less competitive. A failure by the Bank to adequately manage pricing could have a material adverse impact on the Bank’s financial condition and results of operations, including dividend yields to members.

The Bank is exposed to risks because of member concentration.

The Bank is subject to member concentration risk as a result of the Bank’s reliance on a relatively small number of member institutions for a large portion of the Bank’s total advances and resulting interest income. The Bank may only accept members within the Bank’s regulatory district that meet regulatory eligibility criteria, which restricts its ability to expand its membership. The Bank’s largest borrower as of December 31, 2024, was Truist Bank, which accounted for $19.8 billion, or 22.9 percent of the Bank’s total advances then outstanding. In addition, as of December 31, 2024, 10 of the Bank’s member institutions (which includes Truist Bank) collectively accounted for $63.3 billion, or 73.4 percent, of the Bank’s total advances then outstanding. The financial services industry continues to experience consolidation, which may impact Bank’s members. If one or more of the Bank’s largest borrowers ceased membership, or if the Bank were to experience a decrease in the amount of business with one or more of its largest borrowers, whether as the result of a merger or other transaction that displaces advance demand, or as a result of other market conditions, competition or otherwise, the Bank’s financial condition and results of operations could be negatively affected.

Liquidity Risk

The Bank’s funding depends upon its ability to regularly access the capital markets.

The Bank’s primary source of funds is from the sale of consolidated obligations in the capital markets, including the short-term discount note market. The Bank’s ability to obtain funds through the sale of consolidated obligations depends in part on prevailing conditions in the capital markets (including investor demand), such as the effects of any reduced liquidity in financial markets, which are beyond the Bank’s control. The failure to obtain such funds on terms and conditions favorable to the Bank could adversely impact the Bank’s ability to manage its liquidity. Moreover, if the Bank is unable to issue consolidated obligations and other sources of contingent liquidity were either not available or were not available in sufficient quantities, the Bank’s ability to meet its obligations and otherwise conduct its operations would be compromised.

The Bank also competes with Fannie Mae, Freddie Mac, other GSEs, and the U.S. Treasury, as well as corporate and supranational entities for funds raised through the issuance of debt. Increases in the supply of competing debt products may, in the absence of increased investor demand, result in higher debt costs, which could negatively affect the Bank’s financial condition and results of operations.

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Compliance with regulatory contingency liquidity guidance could restrict investment activities and adversely impact net interest income.

Liquidity is necessary to satisfy members’ borrowing needs on a timely basis, repay maturing and called consolidated obligations, and meet other obligations and operating requirements. Many members rely on the Bank as a source of standby liquidity, so the Bank attempts to be in a position to meet member funding needs on a timely basis. The Bank complies with regulatory liquidity requirements, which are designed to provide sufficient liquidity and to protect against temporary disruptions in the capital markets that affect the FHLBank System's access to funding. Additionally, the Finance Agency increased liquidity requirements aimed at enabling the Bank to provide advances and letters of credit for members during a sustained capital markets disruption and which therefore may require the Bank to hold an increased amount of liquid assets, which could hinder the Bank’s ability to meet its core mission asset ratio, and could reduce the Bank’s ability to invest in higher-yielding assets and adversely impact net interest income. Refer to Item 1. Business. Overview for further discussion of the Bank’s core mission asset ratio.

Market Risk

Changes in interest rates or inability to successfully manage interest-rate risk could have a significant adverse effect in the Bank’s earnings.

Like many financial institutions, the Bank realizes income primarily from the spread between interest earned on the Bank’s outstanding advances and investments and interest paid on the Bank’s borrowings and other liabilities. Although the Bank uses a number of measures to monitor and manage changes in interest rates, the Bank may experience “gaps” in the interest-rate sensitivities of its assets and liabilities resulting from duration mismatches and the unpredictability of the financial markets. The existence of gaps in interest-rate sensitivities means that either the Bank’s interest-bearing liabilities will be more sensitive to changes in interest rates than its interest-earning assets, or vice versa. In either case, if interest rates move contrary to the Bank’s position, any such gap could adversely affect the net present value of the Bank’s interest-sensitive assets and liabilities, which could negatively affect the Bank’s financial condition and results of operations.

The Bank’s businesses and results of operations are affected by the fiscal and monetary policies of the U.S. government, foreign governments and their agencies. The Federal Reserve Board’s policies directly and indirectly influence interest rates and the yield on the Bank’s interest-earning assets and the cost of interest-bearing liabilities, and Bank’s cost of funding, which could affect the success of the Bank’s asset and liability management activities and negatively affect the Bank’s financial condition and results of operations. In addition, the FHLBanks currently play a predominant role as lenders in the federal funds market; therefore, disruption in the federal funds market or any related regulatory or policy change may adversely affect the Bank’s cash management activities, results of operations, and reputation. Refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations—Net Interest Income for further discussion of the Bank’s yield on assets and interest-rate spread.

The Bank relies upon derivative instruments to reduce its interest-rate risk associated with certain assets and liabilities on the Bank's balance sheet, including MBS and advances, and the Bank may be required to change its investment strategies and advance product offerings if it is not able to enter into effective derivative instruments on acceptable terms.

The Bank uses derivative instruments to attempt to reduce its interest-rate risk. The Bank determines the nature and quantity of hedging transactions based on various factors, including market conditions and the expected volume and terms of advances. As a result, the Bank's effective use of these instruments depends on the ability of the Bank to determine the appropriate hedging positions in light of the Bank's assets, liabilities, and prevailing and anticipated market conditions. In addition, the effectiveness of the Bank's hedging strategy depends upon the Bank's ability to enter into these instruments with acceptable parties, upon terms satisfactory to the Bank, and in the quantities necessary to hedge the Bank's corresponding financial instruments.

If the Bank is unable to manage its hedging positions properly or is unable to enter into hedging instruments on acceptable terms, the Bank may be unable to manage its interest-rate and other risks or may be required to change its investment strategies and advance product offerings, which could affect the Bank's financial condition and results of operations. The Bank’s financial condition and results of operations could also be adversely affected if derivative counterparties to whom the Bank has exposure fail.

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Prepayment or refinancing of mortgage assets could affect earnings.

The Bank invests in MBS and has at times invested in whole mortgage loans. Changes in interest rates can significantly increase prepayment and the velocity of prepayment of these assets, which could affect the Bank’s earnings. In the Bank’s experience, it is difficult to hedge prepayment risk in mortgage loans. Therefore, prepayments of mortgage assets could have an adverse effect on the income of the Bank.

The Bank may not be able to pay dividends or to repurchase or redeem members’ capital stock consistent with past practice.

The Bank’s board of directors may declare dividends on the Bank’s capital stock, payable to members, from the Bank’s unrestricted retained earnings and current net earnings. The Bank’s ability to pay dividends and to repurchase or redeem capital stock is subject to compliance with statutory and regulatory liquidity and capital requirements. The Bank’s financial management policy addresses regulatory guidance issued to all FHLBanks regarding retained earnings. It requires the Bank to establish a target amount of retained earnings by considering factors such as forecasted income, mark-to-market adjustments on derivatives, market risk, operational risk, and credit risk, all of which may be influenced by events beyond the Bank’s control. The Bank’s capital plan addresses minimum regulatory capital requirements. Events such as changes in interest rates, collateral value, credit quality of members, changes to regulatory capital requirements, and any future credit losses, may affect the adequacy of the Bank’s retained earnings and may require the Bank to reduce its dividends, suspend dividends altogether, or limit capital stock repurchases and redemptions to achieve and maintain the targeted amount of retained earnings or regulatory capital requirements. These actions could cause a reduction in members’ demand for advances or make it difficult for the Bank to retain existing members or to attract new members.

Credit Risk

The Bank’s exposure to credit risk from secured and unsecured transactions could have an adverse effect on the Bank’s financial condition and results of operations.

The Bank faces credit risk on advances, standby letters of credit, investments, derivatives, and mortgage loan assets. The Bank requires advances and standby letters of credit to be fully secured with eligible collateral. The Bank evaluates the types of collateral pledged by the member and assigns a borrowing capacity to the collateral, based on the risk associated with that type of collateral. If the Bank has insufficient collateral or is unable to liquidate the collateral for the value assigned to it upon payment default or failure of a member, the Bank could experience a credit loss on advances or standby letters of credit, which could adversely affect its financial condition and results of operations.

The Bank assumes secured and unsecured credit risk exposure associated with securities transactions, money market transactions, supplemental mortgage insurance agreements, and derivative contracts. The Bank routinely executes transactions with counterparties in the financial services industry, including commercial banks, brokers and dealers, investment banks, and other institutional clients. The insolvency or other inability of a significant counterparty to perform its obligations under a derivative contract or other agreement could have an adverse effect on the Bank’s financial condition and results of operations. The Bank’s credit risk may be exacerbated based on market movements that impact the value of the derivative or collateral positions, the failure of a counterparty to return collateral to the Bank, or when the collateral pledged to the Bank cannot be realized upon or is liquidated at prices not sufficient to recover the full amount of the credit or derivative exposure due to the Bank. Any failure to properly perfect the Bank’s security interest in collateral or any disruption in the servicing of collateral in the event of a default could create credit losses for the Bank.

The Bank uses master derivative contracts that contain provisions that require the Bank to net the exposure under all transactions with a counterparty to one amount in order to calculate collateral requirements. Primary exposures to institutional counterparty credit risk are with unsecured money market transactions, including federal funds sold, or short-term investments with domestic and foreign counterparties; derivative counterparties, including Derivative Clearing Organizations and Futures Commission Merchants; and mortgage servicers that service loans purchased under the MPF Program and the Bank’s MPP. The Bank has both direct and indirect exposure to foreign credit risk through their various counterparties. Adverse economic, political, or other trends that may occur within, across, or among various regions or countries could have direct adverse effects on a Bank’s institutional counterparties and on the U.S. economy. Although the Bank attempts to monitor the creditworthiness of all counterparties, it is possible that the Bank may not be able to terminate the agreement with a foreign commercial bank before the counterparty would become subject to an insolvency proceeding.

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The Bank is jointly and severally liable for payment of principal and interest on the consolidated obligations issued by the other FHLBanks and for jointly maintaining a minimum aggregate amount of AHP contributions

Each of the FHLBanks relies upon the issuance of consolidated obligations as a primary source of funds. Consolidated obligations are the joint and several obligations of all the FHLBanks, backed only by the collective financial resources of the FHLBanks. Accordingly, the Bank is jointly and severally liable with the other FHLBanks for the consolidated obligations issued by the FHLBanks through the Office of Finance.

Although it has never occurred, the Finance Agency may at any time, pursuant to regulation, order an FHLBank to make principal or interest payments due on any consolidated obligation, including of another FHLBank. Pursuant to other arrangements to which the Bank is bound by, an FHLBank may be required to make payment of principal or interest payments due on any consolidated obligation of any other FHLBank upon failure of such FHLBank to meet an obligation. Although the Bank would be entitled to reimbursement from a non-complying FHLBank, the Bank could incur significant liability beyond its primary obligation under consolidated obligations which could negatively impact the Bank’s financial condition and results of operations.

If the aggregate AHP contributions of all FHLBanks were to fall below $100 million, the Finance Agency would prorate the remaining sums among the FHLBanks, subject to certain conditions, as may be required to meet the minimum $100 million annual contribution. Moreover, if the FHLBanks are required by law to increase the minimum required annual AHP contributions, it would reduce the Bank’s net income and could limit growth in the Bank’s retained earnings and potentially reduce the level of dividends paid to the Bank’s members.

Changes in the Bank’s credit ratings may adversely affect the Bank’s ability to issue consolidated obligations on acceptable terms, and such changes may be outside the Bank’s control due to changes in the U.S. sovereign ratings.

As of December 31, 2024, the Bank has an issuer credit rating of Aaa/P-1 by Moody's Investors Service (Moody’s) and AA+/A-1+ by Standard and Poor's Ratings Services (S&P). The consolidated obligations of the FHLBanks (consolidated bonds and consolidated discount notes) carry credit ratings of Aaa/P-1 by Moody’s with negative outlook and AA+/A-1+ by S&P with stable outlook. Because of the FHLBanks’ GSE status, the credit ratings of the FHLBank System and the FHLBanks are directly influenced by the sovereign credit of the U.S., which is beyond the Bank’s control. Downgrades or changes in outlook to the U.S. sovereign credit rating have in the past and would likely result in downgrades in the credit ratings and outlook on the Bank and the consolidated obligations of the FHLBanks even though the consolidated obligations are not obligations of the United States. If the U.S. fails to address, based on the credit rating agencies’ criteria, its statutory debt ceiling in a timely manner and continued uncertainty persists relating to the debt limit, these factors individually or collectively could increase the possibility of potential credit-rating downgrades to the U.S. sovereign credit.

These ratings are subject to revision or withdrawal at any time by the rating agencies; therefore, the Bank may not be able to maintain these credit ratings. Negative ratings actions or negative guidance for the Bank, including as a consequence of U.S. debt levels, the U.S. fiscal budget process, and other uncertainties may adversely affect the Bank’s cost of funding and ability to issue consolidated obligations or other financial instruments on acceptable terms, trigger additional collateral requirements under the Bank’s derivative contracts, and reduce the attractiveness of the Bank’s standby letters of credit. This could have a negative impact on the Bank’s financial condition and results of operations, including the Bank’s ability to make advances on acceptable terms, pay dividends, or redeem or repurchase capital stock.

Operational Risk

The financial models and the underlying assumptions used to value financial instruments and manage risk may materially differ from actual results.

The Bank makes significant use of business and financial models for managing risk. For example, the Bank uses models to measure and monitor exposures to various risks, including interest rate, prepayment, and other market risks, as well as credit risk. The Bank also uses models in determining the fair value of certain financial instruments when independent price quotations are not available or reliable. The degree of judgment in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market parameters. If market quotes are not available, fair values are based on discounted cash flows using market estimates of interest rates and volatility, dealer prices or prices of similar instruments. Pricing models and their underlying assumptions are based on the Bank’s best estimates for discount rates, prepayments, market volatility, and other factors. These assumptions may have a significant effect on the reported fair values of

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assets and liabilities, including derivatives, the related income and expense, and the expected future behavior of assets and liabilities.

While models used by the Bank to value instruments and measure risk exposures are subject to periodic validation by the Bank’s staff and independent parties, rapid changes in market conditions could impact the value of the Bank’s instruments beyond model forecasts, as well as the Bank’s financial condition and results of operations. Models are inherently imperfect predictors of actual results because they are based on assumptions about future performance. Actual results may differ from modeled results primarily due to the timing, magnitude, and frequency of interest rate changes and changes in market conditions and management strategies. Changes in business or financial models or in any of the assumptions, judgments, or estimates used in the models may also cause the results generated by the model to be materially different from actual results.

The Bank employs various strategies to attempt to manage the risks associated with the use of models. If the models are not reliable or the Bank does not use them appropriately, the Bank could make unintended business decisions, including asset and liability management decisions, which could result in a materially adverse financial impact for the Bank.

The Bank relies heavily upon information systems and other technology. Any disruption, failure, cybersecurity incident or threat of the Bank’s information systems or other technology or those of critical vendors and third parties, such as the Federal Reserve Banks, could adversely impact the Bank’s business, reputation, financial condition, or results of operations.

The Bank relies heavily upon information systems and other technology to conduct and manage its business. The Bank owns some of these systems and technology, and third parties own and provide to the Bank some of those systems and technology. The Bank’s information systems rely on certain critical vendors to provide technology solutions. Computer systems, software, and networks can be vulnerable to failures and interruptions, including as the result of any cybersecurity threats or incidents (e.g., breaches, unauthorized access, misuse, computer viruses or other malicious code, and other events) or other breaches of technology security, that may derive from human error or malfeasance on the part of employees or third parties, other disruptions during the process of upgrading or replacing computer software or hardware, failure to implement key information technology initiatives, or accidental technological failure. At times, there may be an increased risk of cyberattacks, including as a result of increased capabilities of artificial intelligence or as a result of geopolitical conflicts. These failures, interruptions, or cyberattacks could jeopardize the confidentiality or integrity of information, including personally identifiable information, result in fraudulent wire transfers, or otherwise interrupt the Bank’s ability to conduct and manage its business effectively, including, without limitation, its deposit account management, hedging activities, and advances activities. The Bank can make no assurance that it or its third-party vendors will be able to prevent, timely and adequately address, or mitigate the negative effects of any such failure, interruption, or cybersecurity threats or incidents.

Like many financial institutions, the Bank has seen an increase in cybersecurity risk. For the Bank, cybersecurity threats have predominantly occurred through phishing, social engineering scams, and ransomware. The Bank’s operations rely on the availability and functioning of its main office and off-site backup facilities. The Bank devotes substantial resources and deploys preventive measures to secure the Bank’s systems, including firewalls, email security, and anti-virus solutions. These measures, or the Bank’s system redundancies and other business continuity measures, may be ineffective or insufficient, and the Bank’s business continuity and disaster recovery planning may not be sufficient for all eventualities. A failure or interruption in the Bank’s business continuity, disaster recovery or certain information systems, or a cybersecurity event, could significantly harm the Bank’s reputation, its customer relations, risk management, and profitability, and could result in financial losses, legal and regulatory sanctions, increased costs, reputation or other harm. While the Bank maintains insurance coverage that is intended to address certain aspects of data security risks, such insurance may be insufficient to cover all losses or types of claims that may arise. As cybersecurity threats continue to evolve, the Bank may be required to expend significant additional resources to continue to modify or enhance its layers of defense, to investigate and remediate any information security vulnerabilities, or to comply with regulatory requirements.

Additionally, the Bank relies on the Office of Finance to facilitate the issuance and servicing of its consolidated obligations. A failure or interruption of the Office of Finance's operating systems or other adverse technology incidents could disrupt the Bank’s access to funds, and could significantly harm the Bank’s reputation, its customer relations, risk management, and profitability, and could result in financial losses, legal and regulatory sanctions, increased costs, or other harm. Refer to Item 1C. Cybersecurity for further discussion of the Bank’s cybersecurity risk management and strategy and governance.

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The Bank’s controls and procedures may fail or be circumvented, and risk management policies and procedures may be inadequate.

The Bank may fail to identify and manage risks related to a variety of aspects of its business, including operational risk, legal and compliance risk, interest-rate risk, liquidity risk, market risk, and credit risk. The Bank has adopted controls, procedures, policies, and systems to monitor and manage these risks. The Bank’s management cannot provide complete assurance that those controls, procedures, policies, and systems are adequate to identify and manage the risks inherent in the Bank’s business, at all times. In addition, because the Bank’s business continues to evolve, the Bank may fail to fully understand the implications of changes in the business, and therefore, it may fail to enhance the Bank’s risk governance framework to timely or adequately address those changes. Failed or inadequate controls and risk management practices could have an adverse effect on the Bank’s financial condition and results of operations.

Natural disasters, including those resulting from climate change, in the Bank’s region could adversely affect the Bank’s operations, profitability and financial condition.

Portions of the Bank’s district, member and collateral locations are subject to risks from hurricanes, tornadoes, floods, wildfires, drought and other natural disasters. The Bank’s district, member and collateral locations include areas designated as Special Flood Hazard Areas (SFHAs) which are deemed particularly vulnerable. Climate change contributes to the increasing unpredictability, occurrence and intensity of major natural disasters, which could negatively affect the Bank’s ability to predict losses from such events.

Natural disasters could disrupt, damage or dislocate the facilities or the underlying business of the Bank or Bank’s members, may damage or destroy collateral that members have pledged to secure advances or the mortgages the Bank holds for portfolio, may impact the livelihood of borrowers of the Bank’s members, or otherwise could cause significant economic dislocation in the affected areas. These disasters can also create imbalances on insurance such as inadequate insurance, insurance shortfalls, premium increases, and insurance availability. Natural disasters could disrupt the Bank’s operations or the operations of third parties on which the Bank relies. Steps to address the risk of more frequent or severe weather events resulting from climate change could result in a potentially disruptive transition away from carbon-intense industries and create additional transitional risks and costs that include those to adapt to new regulation to address climate change risks. Such a transition could negatively impact certain regions and regional economies, affecting the members’ businesses and impacting the ability of borrowers in those industries or regions to pay their mortgage loans. Legal or regulatory changes to address concerns about global climate change may lead to higher costs of compliance and increasing direct and indirect expenses and lending costs for the Bank’s members.

The inability to attract and retain skilled key personnel could adversely affect the Bank's business and financial result.

The Bank relies on key personnel for many of its functions and has a relatively small workforce, given the size and complexity of its business. The Bank’s ability to attract and retain such personnel is important for it to conduct its operations and measure and maintain risk and financial controls. Additionally, the Bank must continue to recruit, retain and motivate a qualified and diverse pool of employees, both to maintain the Bank’s current business and to execute its strategic initiatives, including succession planning. Like many organizations, the Bank has experienced increased competition in its recruitment and retention of employees. If the Bank is unable to recruit, retain and motivate such employees, its business and financial performance may be adversely affected.

Each FHLBank’s board of directors has the statutory authority and responsibility to select, employ and fix the compensation of its officers and employees in order to help ensure the hiring and retention of qualified staff. However, as the regulator of the FHLBanks, the Finance Agency has the authority to determine whether compensation paid to any executive officer or director is in its view not reasonable and comparable with compensation for such services in other similar businesses involving similar duties and responsibilities. Depending on how such authority is exercised, the Bank’s ability to recruit and retain qualified executive officers and directors could be adversely affected.

Item 1B. Unresolved Staff Comments.

None.

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Item 1C. Cybersecurity.

Cybersecurity Risk Management and Strategy

The Bank has implemented processes for assessing, identifying, and managing risks from cybersecurity threats or incidents that may directly or indirectly impact the Bank’s business strategy, results of operations, or financial condition. Please refer to Item 1A. Risk Factors for a description of cybersecurity incident and threat risk.

The Bank’s cybersecurity risk management framework for assessing, identifying, and managing risks from cybersecurity threats is designed to protect the confidentiality, integrity, and availability of the Bank’s information technology assets and data and include specific controls for the monitoring, mitigation, and reporting on cybersecurity risk management. Those processes include information security policies, incident response and business continuity plans focusing on the Bank’s appropriate response to threats and incidents and operations and business continuance.

The Bank’s board annually reviews and approves the Bank’s risk management policies. The Bank develops mitigation plans, monitors tactical implementation, and engages in detailed gap analysis, risk assessments and monitors remediation plans to close any outstanding gaps, all of which are overseen by the Bank’s Security Governance Committee. Cybersecurity risk management is integrated with the Bank’s overall risk management framework overseen by the Bank’s board. Bank policies establish administrative, technical, and physical safeguards designed to protect the security, confidentiality, and integrity of Bank information in accordance with Finance Agency regulations and applicable laws. The Bank’s cyber incident response plan determines how cybersecurity threats and incidents are identified, classified, escalated, and reported to senior management and the board. The cyber incident response plan also stipulates management’s materiality assessment of the threat or incident for the purposes of public disclosure. The Bank’s cyber incident response plan includes third party cybersecurity incidents and threats.

The business continuity management program is designed to oversee and implement resilience, continuity, and response capabilities to safeguard employees, products and services, minimize financial losses and the impact to service to members during a disruption event. A disruption event includes the unavailability of information technology assets due to cybersecurity threats or incidents and other unintentional events like fire, power loss, and other technical incidents such as hardware failures. The business continuity management program provides planning for the restoration of facilities, communications, information technology systems, personnel, and other components necessary for the continuity of critical Bank processes. The business continuity management policy is overseen by the board.

The Bank retains external consultants to assist in the development and monitoring processes for assessing, identifying, and managing cybersecurity incident and threat risk. The Bank engages third-party services to conduct evaluations of security controls, whether through penetration testing, independent audits or consulting on practices to address new challenges. These evaluations include testing both the design and operational effectiveness of security controls. The Bank also requires subcontractors to report on cybersecurity incidents so the Bank can assess their impact. As part of the Bank’s vendor management process, the Bank undertakes due diligence of third-party systems with whom the Bank will interact, including risk profiling and classification, in addition to requiring data protection covenants in its vendor agreements. The Bank’s vendor risk management program includes regular reviews and oversight of all service providers in accordance with a risk profile classification. The Bank reviews vendor performance, relevant technologies utilized by vendors and promotes escalation of any unsatisfactory reviews, as part of Bank’s continuous assessment of its vendors.

During the period covered by this report, risks from cybersecurity incidents or threats did not have a material impact on the Bank’s strategy, results of operations, or financial condition. The Bank has experienced cybersecurity incidents and threats in the past, none of which have had a material effect on the Bank’s financial condition or results of operations. Cybersecurity incidents may occur in the future and any such cybersecurity incident could result in significant adverse impact to the Bank, the Bank’s members, and their customers. The Bank is prepared to assess materiality of any such cybersecurity incident from several perspectives including, but not limited to, the Bank’s ability to continue to service its members and protect the privacy of their data entrusted to the Bank, lost revenue, disruption of business operations, increased operating costs, litigation, and reputational harm.

Cybersecurity Governance

The Bank’s board of directors devotes significant time and attention to data and systems protection, including cybersecurity and information security risk. The board of directors Enterprise Risk and Operations Committee (EROC) oversees the Bank’s information security program through setting of policies and the Bank’s risk management framework and has oversight of the cybersecurity risk management efforts which include risks from cybersecurity threats and has assigned specific controls for the mitigation, monitoring and reporting associated with those risks. The board also oversees management’s approach to staffing,

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and processes and practices to gauge and address cybersecurity and information security risk. The board receives reports on management of cybersecurity risk and implementation of cybersecurity risk management as well as presentations and reports on cybersecurity effectiveness assessments and monitoring updates, along with management’s recommendations regarding Bank’s information security policies.

The Bank’s Security Governance Committee is led by the chief information security officer and has a cross-functional membership comprised of representatives from the Bank’s operational risk, information security, information technology, legal, operations, and other departments that provide both operational, specialized, technical and multidisciplinary expertise to the committee. The committee has integrated oversight of the information security program, the physical security program, and is responsible for reviewing security policies and procedures, security exceptions and violations, the processes and standards to implement the policies and procedures defined in the cybersecurity risk management program, the Bank’s cyber incident response plan, the security awareness program and implementation reports, and for providing guidance and monitor progress on major information security projects, and regulatory changes and requirements.

The Bank has a dedicated Information Security Department comprised of specialized professionals responsible for the day-to-day, hands-on management of cybersecurity risk and that handle the processes and procedures to mitigate and implement protective, proactive and reactive measures to protect the Bank against those risks, responsible for developing, documenting, and approving the Bank’s technical information security control standards, guidelines, and procedures designed to preserve the confidentiality, integrity, and availability of the Bank’s information technology assets and data under the Bank’s control.

The combined expertise of the Bank’s chief information officer and the chief information security officer in cybersecurity include graduation in Computer Science, Certification in Risk and Information Systems Control (CRISC), Certification in Information Systems Security Professional (CISSP), and Certification in Information Systems Auditor (CISA), along with decades of experience in computer science, information and records security, business continuity, technology governance and compliance, technology risk services, cyber risk assessments, security operations monitoring and response, incident response, security strategy and architecture, awareness training, threat intelligence, identity and access management, vulnerability and penetration testing, maturity assessment, impact analysis, disaster events, recovery response, business resiliency, third party systems due diligence, deep knowledge of software systems and platforms, implementation methodologies, and various technology systems servicing internal and external customers.

The Security Governance Committee meets regularly and receives prompt and periodic information, as needed or applicable pursuant to Bank policies and plans, from the Information Security Department which in turn provides periodic, regular and prompt reporting to senior management. Reports include topics such as threat intelligence, major cybersecurity risk areas, technologies and best practices, project development and implementation, any cybersecurity incidents or threats occurred, as well risk assessment, management and monitoring updates, as applicable and as needed.

Bank policies and processes are designed such that the board would receive prompt and periodic information from management or the Security Governance Committee on any cybersecurity or information security incident or threat that may pose significant risk to the Bank and would continue to receive regular reports on any incident or threat until its conclusion. The Bank’s Enterprise Risk and Operations Committee also receives regular presentations and reports throughout the year on cybersecurity and information security addressing a broad range of topics, including updates on technology trends, regulatory developments, legal issues, policies and practices, information security resources and organization, the threat environment and vulnerability assessments, and specific and ongoing efforts to prevent, detect, and respond to potential gaps, internal and external incidents and critical threats. At least quarterly, or more often, as necessary, the Enterprise Risk and Operations Committee discusses cybersecurity and information security risks with the Bank’s chief information officer and chief information security officer.

Item 2. Properties.

The Bank owns approximately 235,514 square feet of office space at 1475 Peachtree Street, NE, Atlanta, Georgia 30309. The Bank occupies approximately 220,017 square feet of this space and leases the remaining space to tenants. The Bank leases 2,993 square feet of office space located in Washington, D.C., which is shared with two other FHLBanks. The Bank also leases off-site backup facilities for the Bank’s disaster recovery office space. The Bank’s management believes these facilities are well maintained and are adequate for the Bank’s operations.

Item 3. Legal Proceedings.

The Bank may be subject to various legal proceedings and actions from time to time in the ordinary course of its business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of those matters presently known to the Bank will have a material adverse impact on the Bank’s financial condition or results of operations.

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Item 4. Mine Safety Disclosure.

Not applicable.

PART II

Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

The Bank’s members own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of the Bank’s member, own the remaining capital stock to support business transactions still carried on the Bank’s balance sheet. The Bank’s capital stock is not publicly traded or quoted, and there is no established marketplace for it, nor does the Bank expect a market to develop. The FHLBank Act and the Bank’s capital plan prohibit the trading of its capital stock, except in connection with merger or acquisition activity.

A member may request in writing that the Bank redeem its excess capital stock at par value. Excess capital stock is FHLBank capital stock not required to be held by the member to meet its minimum stock requirement under an FHLBank’s capital plan. Any such redemption request is subject to a five-year redemption period after the Bank receives the request, subject to certain regulatory requirements and to the satisfaction of any ongoing stock investment requirements applicable to the member. In addition, any member may withdraw from membership upon five years written notice to the Bank. Subject to the member’s satisfaction of any outstanding indebtedness and other statutory requirements, the Bank redeems the member’s capital stock at par value upon withdrawal from membership. The Bank, in its discretion, may repurchase shares held by a member in excess of its required stock holdings, subject to certain limitations and thresholds in the Bank’s capital plan. The par value of all capital stock is $100 per share, and the operating threshold for daily excess capital stock repurchases is $100 thousand. As of February 28, 2025, the Bank had 790 member and non-member shareholders and 57 million shares of its capital stock outstanding (including mandatorily redeemable shares).

Finance Agency regulations prohibit any FHLBank from issuing dividends in the form of capital stock or otherwise issuing new excess capital stock if that FHLBank has excess capital stock greater than one percent of that FHLBank’s total assets or if issuing such dividends or new excess capital stock would cause that FHLBank to exceed the one percent excess capital stock limitation. As of December 31, 2024, the Bank’s excess capital stock did not exceed one percent of its total assets. Historically, the Bank has not issued dividends in the form of capital stock or issued new excess capital stock, and a member’s existing excess activity-based stock is applied to activity-based stock requirements related to new advances or standby letters of credit, as applicable.

The Bank’s board of directors has adopted a financial management policy that includes a targeted amount of retained earnings separate and apart from the restricted retained earnings account. For further discussion of those provisions of the financial management policy, dividends, and the Amended Joint Capital Enhancement Agreement (Capital Agreement) pursuant to which the restricted retained earnings account was established, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Capital.

Because only members, former members, and certain non-member institutions, not individuals, may own the Bank’s capital stock, the Bank has no equity compensation plans.

The Bank also issues standby letters of credit in the ordinary course of its business. From time to time, the Bank provides standby letters of credit to support members’ obligations, members’ standby letters of credit, or obligations issued to support unaffiliated, third-party offerings of notes, bonds, or other securities. The Bank issued $8.9 billion, $11.6 billion, and $11.4 billion in standby letters of credit in 2024, 2023, and 2022, respectively. To the extent that these standby letters of credit are securities for purposes of the Securities Act of 1933, the issuance of the standby letter of credit by the Bank is exempt from registration pursuant to section 3(a)(2) thereof.

Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis relates to the Bank’s financial condition as of December 31, 2024 and 2023, and results of operations for the years ended December 31, 2024 and 2023. This section explains the changes in certain key items in the Bank’s financial statements from year to year, the primary factors driving those changes, the Bank’s risk management processes

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and results, known trends or uncertainties that the Bank believes may have a material effect on the Bank’s future performance, as well as how certain accounting principles affect the Bank’s financial statements. For a discussion on the comparison between the results of operations for the years ended 2023 and 2022, see the Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are contained in the Bank’s 2023 Annual Report on Form 10-K, as filed with the SEC on March 8, 2024.

This discussion should be read in conjunction with the Bank’s audited financial statements and related notes for the year ended December 31, 2024 included in Item 8. Financial Statements and Supplementary Data of this Report. Readers also should carefully review “Special Cautionary Notice Regarding Forward-looking Statements” and Item 1A. Risk Factors, for a description of the forward-looking statements in this Report and a discussion of the factors that might cause the Bank’s actual results to differ, perhaps materially, from these forward-looking statements.

Executive Summary

Business Overview

The Bank’s business model is focused on enhancing the total value of the cooperative for its members by serving as their trusted advisor. The Bank is focused on providing value to members by delivering solutions that meet their needs and the communities they serve and enhancing the availability of residential mortgage and community investment credit. The Bank focuses these efforts on offering readily available, competitively priced advances, a potential return on investment, support for community investment activities, and other credit and noncredit products and services. As part of the Bank’s cooperative structure, the Bank has chosen to operate with narrow margins, passing on its low funding costs to members, which causes the Bank’s profitability to be sensitive to changes in market conditions.

The state of the economy and the Bank’s regulatory environment are significant components in determining the Bank’s overall business outlook as they impact advance demand, asset and collateral values, member financial stability, funding costs, and many other facets of the Bank’s operations. External factors such as liquidity levels at member institutions, fiscal and monetary policies, performance of global economies, and regulatory changes could have a significant effect either positive or negative on the Bank’s financial performance.

Interest rates are also a significant factor on the Bank’s business outlook. Changes in interest rates can impact the Bank’s interest rate risk management, profitability, and return on equity (ROE). It can also impact member advance demand, as rate uncertainty can impact deposit levels at the Bank’s members.

Merger activity involving the Bank’s members can impact the Bank’s business outlook. As the financial industry continues to experience consolidation, the Bank’s membership base may decrease, and the Bank’s advance balance and other business could increase or decrease significantly depending upon the size of the financial institutions involved in the merger. While the Bank’s balance sheet is designed to expand and contract based upon advance demand, the Bank is vulnerable to member concentration, as such, the Bank’s business could be affected by this merger activity, including as a result of a single event causing the loss of a member’s business due to acquisition by a non-member.

Financial Condition

The following table presents the Bank’s total assets, total liabilities, and total capital (dollars in millions). These items are discussed in more detail below.

	As of December 31,				Change
	2024		2023		Amount		Percent
Total assets	$	147,091	$	152,370	$	(5,279)	(3.46)
Total liabilities	139,158		144,254		(5,096)		(3.53)
Total capital	7,933		8,116		(183)		(2.25)

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•Total assets decreased primarily due to a $10.8 billion, or 11.2 percent, decrease in advances, partially offset by a $5.9 billion, or 10.8 percent, increase in total investments. The increase in total investment was primarily related to additional liquidity investments that were held as of December 31, 2024.

•Total liabilities decreased primarily due to a $5.7 billion, or 4.04 percent, decrease in consolidated obligations as a result of decreased funding and liquidity needs during the year.

•Total capital decreased primarily due to a $449 million, or 8.01 percent, decrease in capital stock, partially offset by a $261 million, or 10.4 percent, increase in retained earnings.

Results of Operations

The following table presents the Bank’s significant income items for the years presented and provides information regarding the changes during those years (dollars in millions). These items are discussed in more detail below.

							Change
	For the Years Ended December 31,						2024 vs. 2023			2023 vs. 2022
	2024		2023		2022		Amount		Percent	Amount		Percent
Net interest income	$	966	$	889	$	327	$	77	8.57	$	562	172.41
Noninterest income	23		5		16		18		343.24	(11)		(68.84)
Noninterest expense	215		173		138		42		23.47	35		25.61
Affordable Housing Program assessment	77		72		21		5		7.38	51		251.68
Net income	$	697	$	649	$	184	$	48	7.38	$	465	251.80

•The increase in net interest income was primarily related to an increase in interest rates during the year which impacted income from interest-earning assets more than the expense from interest-bearing liabilities, partially offset by a decrease in average advance balances.

•Average advance balances were $98.8 billion for the year ended December 31, 2024, compared to $125.4 billion for 2023. The decrease in average advance balances was primarily due to market liquidity concerns that occurred during the first quarter of 2023, resulting in an increase in advance balances, and continued to impact advance balances through the third quarter of 2023.

•The increase in net income was primarily due to a $77 million increase in net interest income. Additionally, during 2024 the Bank had $49 million of voluntary housing and community investment expense, compared to $19 million during 2023.

The following table presents the Bank’s significant income ratios for the years presented. These items are discussed in more detail below.

	For the Years Ended December 31,						Change
	2024		2023		2022		2024 vs. 2023	2023 vs. 2022
ROE	8.31	%	7.43	%	3.18	%	0.88	4.25
Average daily SOFR	5.15		5.01		1.64		0.14	3.37
ROE spread to average daily SOFR	3.16		2.42		1.54		0.74	0.88
Net yield on interest-earning assets	0.64		0.50		0.28		0.14	0.22

•The increase in ROE for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due to the increase in net income.

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Financial Condition

The following table presents the distribution of the Bank’s total assets, liabilities, and capital by major class as of the dates indicated (dollars in millions). These items are discussed in more detail below.

	As of December 31,
	2024			2023			Change
	Amount		Percent of Total	Amount		Percent of Total	Amount		Percent
Advances	$	85,829	58.35	$	96,608	63.40	$	(10,779)	(11.16)
Investment securities	30,233		20.55	31,164		20.45	(931)		(2.99)
Other investments	29,851		20.30	23,043		15.12	6,808		29.55
Mortgage loans, net	89		0.06	103		0.07	(14)		(13.10)
Other assets	1,089		0.74	1,452		0.96	(363)		(25.08)
Total assets	$	147,091	100.00	$	152,370	100.00	$	(5,279)	(3.46)
Consolidated obligations, net:
Discount notes	$	32,152	23.10	$	25,972	18.00	$	6,180	23.80
Bonds	103,699		74.52	115,600		80.14	(11,901)		(10.29)
Deposits	2,312		1.66	1,568		1.09	744		47.44
Other liabilities	995		0.72	1,114		0.77	(119)		(10.81)
Total liabilities	$	139,158	100.00	$	144,254	100.00	$	(5,096)	(3.53)
Capital stock	$	5,148	64.90	$	5,597	68.96	$	(449)	(8.01)
Retained earnings	2,785		35.11	2,524		31.10	261		10.35
Accumulated other comprehensive loss	—		(0.01)	(5)		(0.06)	5		91.43
Total capital	$	7,933	100.00	$	8,116	100.00	$	(183)	(2.25)

Advances

The following table presents the Bank’s advances outstanding by year of maturity and the related weighted-average interest rate (dollars in millions):

	As of December 31,
	2024			2023
	Amount		Weighted-average Interest Rate (%)	Amount		Weighted-average Interest Rate (%)
Due in one year or less	$	59,497	4.64	$	70,501	5.53
Due after one year through two years	9,155		4.28	6,038		4.24
Due after two years through three years	4,768		4.08	5,375		4.36
Due after three years through four years	5,327		3.90	3,075		4.08
Due after four years through five years	2,730		4.04	7,544		3.92
Due after five years through 15 years	4,527		3.84	4,411		3.88
Thereafter	304		5.07	4		2.73
Total par value	86,308		4.47	96,948		5.14
Deferred prepayment fees	3			10
Discounts	(1)			(1)
Fair value hedging adjustments	(481)			(349)
Total	$	85,829		$	96,608

Total advances decreased by 11.2 percent as of December 31, 2024, compared to December 31, 2023. A significant percentage of advances originated during 2024 and 2023 were short-term advances.

As of December 31, 2024 and 2023, 42.6 percent and 40.5 percent, respectively, of the Bank’s advances were fixed rate. However, the Bank often simultaneously entered into derivatives with the issuance of advances to convert the rates, in effect,

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into short-term variable interest rates, primarily based on SOFR. As of December 31, 2024 and 2023, 68.3 percent and 64.9 percent, respectively, of the Bank’s fixed-rate advances were swapped. SOFR-indexed and OIS-indexed advances comprised 89.3 percent and 8.58 percent, respectively of the Bank’s variable-rate advances as of December 31, 2024. The Bank also offers variable-rate advances that may be tied to indices, such as the federal funds rate, prime rate, or constant maturity swap rates.

The Bank’s 10 largest borrowing member institutions had 73.4 percent of the Bank’s total advances outstanding as of December 31, 2024. Further information regarding the Bank’s 10 largest borrowing member institutions and breakdown of their individual advance balances as of December 31, 2024 is contained in Item 1. Business—Credit Products—Advances. The Bank monitors concentration risk and believes it holds sufficient collateral, on a member-specific basis, to secure the advances to all borrowers, including these 10 institutions, and the Bank does not expect to incur any credit losses on these advances.

Investments

The following table presents more detailed information regarding investments held by the Bank (dollars in millions).

	As of December 31,
	2024														2023		Change
	Due in one year or less			Due after one year through five years			Due after five through 10 years			Due after 10 years			Total				Amount		Percent
Investment securities:
Available-for-sale securities:
U.S. Treasury obligations	$	100		$	3,963		$	—		$	—		$	4,063	$	2,203	$	1,860	84.38
Mortgage-backed securities:
Government-sponsored enterprises commercial	—			334			393			—			727		247		480		194.28
Total available-for-sale securities	100			4,297			393			—			4,790		2,450		2,340		95.46
Held-to-maturity securities:
State or local housing agency debt obligations	—			1			—			—			1		1		—		—
Government-sponsored enterprises debt obligations	435			300			60			—			795		1,475		(680)		(46.10)
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	—			1			—			2,009			2,010		2,715		(705)		(25.98)
Government-sponsored enterprises residential	1			7			89			8,323			8,420		8,311		109		1.31
Government-sponsored enterprises commercial	215			6,385			7,202			415			14,217		16,212		(1,995)		(12.30)
Total mortgage-backed securities	216			6,393			7,291			10,747			24,647		27,238		(2,591)		(9.51)
Total held-to-maturity securities	651			6,694			7,351			10,747			25,443		28,714		(3,271)		(11.39)
Total investment securities	751			10,991			7,744			10,747			30,233		31,164		(931)		(2.99)
Interest-bearing deposits	1,493			—			—			—			1,493		1,833		(340)		(18.53)
Securities purchased under agreements to resell	21,200			—			—			—			21,200		12,500		8,700		69.60
Federal funds sold	7,158			—			—			—			7,158		8,710		(1,552)		(17.82)
Total other investments	29,851			—			—			—			29,851		23,043		6,808		29.55
Total investments	$	30,602		$	10,991		$	7,744		$	10,747		$	60,084	$	54,207	$	5,877	10.84
Weighted-average yields on (1):
Available-for-sale securities	4.31		%	4.35		%	5.02		%	—
Held-to-maturity securities	4.41		%	4.83		%	5.05		%	4.98		%

_________ 

(1) The weighted-average yields on available-for-sale securities and held-to-maturity securities are calculated as the sum of each debt security using the period- end balances multiplied by the coupon rate adjusted by the impact of amortization and accretion of premiums and discounts, divided by the total debt securities in the applicable available-for-sale securities and held-to-maturity securities portfolio.

The Finance Agency regulations prohibit an FHLBank from purchasing MBS and asset-backed securities if its investment in such securities would exceed 300 percent of the FHLBank’s previous month-end regulatory capital on the day it would purchase the securities. As of December 31, 2024, these investments were 320 percent of the Bank’s regulatory capital. These investments exceeded the 300 percent level due to a decrease in the amount of regulatory capital that resulted from a decrease in advances as of December 31, 2024. The Bank was in compliance with this regulatory requirement at the time of its MBS

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purchases and is not required to sell any previously purchased MBS. However, the Bank is precluded from purchasing additional MBS until its MBS to regulatory capital declines below 300 percent.

The amount held in other investments varies each day based on the Bank’s liquidity needs as a result of advances demand, the earnings rates, and the availability of high-quality counterparties in the federal funds market. The increase in other investments as of December 31, 2024, compared to December 31, 2023, primarily relates to an increase in securities purchased under agreements to resell as the Bank retained additional liquidity at year-end 2024.

Mortgage Loans Held for Portfolio

The Bank purchased fixed-rate residential mortgage loans directly from PFIs and through participation in eligible mortgage loans from other FHLBanks. The decrease in mortgage loans held for portfolio from December 31, 2023 to December 31, 2024 was primarily due to the maturity and prepayments of these assets during the year.

The following table presents the Bank’s mortgage loans outstanding by redemption terms (dollars in millions).

	As of December 31,
	2024		2023
Due in one year or less	$	7	$	8
Due in one year through five years	35		36
Due after five years through 15 years	42		52
Thereafter	5		7
Total unpaid principal balance	89		103
Other adjustment, net (1)	—		—
Total mortgage loans held for portfolio	89		103
Allowance for credit losses on mortgage loans	—		—
Mortgage loans held for portfolio, net	$	89	$	103

____________ 

(1) Consists of premiums, discounts, and hedging adjustments.

Members that sold mortgage loans to the Bank were located primarily in the southeastern United States; therefore, the Bank’s conventional mortgage loan portfolio was concentrated in that region as of December 31, 2024 and 2023. The following table presents the percentage of unpaid principal balance of conventional residential mortgage loans held for portfolio for the five largest state concentrations.

	As of December 31,
	2024	2023
	Percent of Total	Percent of Total
Florida	21.98	22.24
South Carolina	20.79	21.12
Virginia	11.37	11.55
Georgia	10.76	10.92
North Carolina	8.04	7.83
All other	27.06	26.34
Total	100.00	100.00

Deposits

The Bank offers demand and overnight deposit programs to members and qualifying non-members primarily as a liquidity management service. In addition, a member that services mortgage loans may deposit funds in the Bank that are collected in connection with the mortgage loans, pending disbursement of those funds. All the Bank’s deposits are uninsured. For demand deposits, the Bank pays interest at the overnight rate. Most of these deposits represent member liquidity investments, which members may withdraw on demand. Therefore, the total account balance of the Bank’s deposits may fluctuate significantly. As a matter of prudence, the Bank typically invests deposit funds in liquid short-term assets. Member loan demand, deposit flows, and liquidity management strategies influence the amount and volatility of deposit balances carried with the Bank.

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Consolidated Obligations

The Bank funds its assets primarily through the issuance of consolidated obligation bonds and consolidated obligation discount notes. The decrease in consolidated obligations from December 31, 2023 to December 31, 2024 was primarily a result of decreased funding and liquidity needs during the year. Consolidated obligation issuances financed 92.4 percent of the $147.1 billion in total assets as of December 31, 2024, a slight decrease from the financing ratio of 92.9 percent as of December 31, 2023.

The Bank often simultaneously entered into derivatives with the issuance of fixed-rate consolidated obligation bonds to convert the interest rates, in effect, into short-term variable interest rates, primarily based on SOFR. As of December 31, 2024 and 2023, 92.1 percent and 92.4 percent, respectively, of the Bank’s fixed-rate consolidated obligation bonds were swapped. None of the Bank’s variable-rate consolidated obligation bonds were swapped as of December 31, 2024 and 2023. As of December 31, 2024 and 2023, 64.3 percent and 26.6 percent, respectively, of the Bank’s fixed-rate consolidated obligation discount notes were swapped.

Capital

The FHLBank Act and Finance Agency regulations specify that each FHLBank must meet certain minimum regulatory capital standards. The Bank must maintain (1) total regulatory capital in an amount equal to at least four percent of its total assets; (2) leverage capital in an amount equal to at least five percent of its total assets; and (3) permanent capital in an amount equal to at least its regulatory risk-based capital requirement. Permanent capital is defined by the FHLBank Act and applicable regulations as the sum of paid-in capital for Class B stock and retained earnings. Mandatorily redeemable capital stock is considered capital for regulatory purposes. These regulatory capital requirements, and the Bank’s compliance with these requirements, are presented in detail in Note 10—Capital to the Bank’s 2024 audited financial statements.

Finance Agency regulations establish criteria for four capital classifications, based on the amount and type of capital held by an FHLBank, as follows:

•Adequately Capitalized - FHLBank meets or exceeds both risk-based and minimum capital requirements;

•Undercapitalized - FHLBank does not meet one or both of its risk-based or minimum capital requirements;

•Significantly Undercapitalized - FHLBank has less than 75 percent of one or both of its risk-based or minimum capital requirements; and

•Critically Undercapitalized - FHLBank total capital is two percent or less of total assets.

The Director of the Finance Agency (Director) will make a capital classification for each FHLBank at least quarterly and notify the FHLBank in writing of any proposed action and provide an opportunity for the FHLBank to submit information relevant to such action. The Director is permitted to make discretionary reclassifications. An FHLBank must provide written notice to the Finance Agency within 10 days of any event or development that has caused or is likely to cause its permanent or total capital to fall below the level required to maintain its most recent capital classification or reclassification. In the event that an FHLBank is not adequately capitalized, the regulations delineate the types of prompt corrective actions that the Director may order, including submission of a capital restoration plan by the FHLBank and restrictions on its dividends, stock redemptions, executive compensation, new business activities, or any other actions the Director determines will ensure safe and sound operations and capital compliance by the FHLBank. On December 10, 2024, the Bank received notification from the Finance Agency that, based on September 30, 2024 data, the Bank meets the definition of “adequately capitalized.”

Each FHLBank is required to maintain a ratio of at least two percent of capital stock to total assets, measured on a daily average basis at month end. As of December 31, 2024, the Bank was in compliance with this ratio.

The Capital Agreement provides that each FHLBank will, on a quarterly basis, contribute 20 percent of its net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of that FHLBank's average balance of outstanding consolidated obligations (excluding fair-value adjustments) for the calendar quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition.

Under the Bank’s financial management policy, the Bank’s targets were to maintain (1) a capital-to-assets ratio of 4.50 percent to 6.00 percent; (2) a retained earnings account balance equal to the restricted retained earnings account balance, plus extremely stressed scenario losses; and (3) unrestricted retained earnings greater than the retained earnings target. The Bank believes that daily excess stock repurchases and reasonable quarterly dividends give members greater certainty of a return of their principal

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or the receipt of a dividend, which in turn may have a positive impact on members’ appetite for advances. The Bank seeks to pay an amount of dividends each quarter that are consistent with an attractive rate of return on capital to its member shareholders relative to an established benchmark after providing for retained earnings as discussed above. Beginning in 2021, the Bank began using SOFR as the index for its dividend spreads. The Bank’s ability to maintain dividends depends on the Bank’s actual performance, its ability to maintain adequate retained earnings, other factors described in Item 1A. Risk Factors, and the discretion of the Bank’s board of directors. Information about dividends paid by the Bank during 2024, 2023, and 2022, is contained in Note 10—Capital to the Bank’s 2024 audited financial statements.

Results of Operations

The following is a discussion and analysis of the Bank’s results of operations for the years ended December 31, 2024 and 2023.

Net Interest Income

The primary source of the Bank’s earnings is net interest income. Net interest income equals interest earned on assets (including member advances, mortgage loans, MBS held in portfolio, and other investments), less the interest expense incurred on liabilities (including consolidated obligations, deposits, and other borrowings). Also included in net interest income are miscellaneous related items such as prepayment fees, the amortization of debt issuance discounts, concession fees, and certain derivative instruments and hedging activities related adjustments.

When an advance is prepaid, the Bank could suffer lower future income if the principal portion of the prepaid advance is reinvested in lower-yielding assets. To protect against this risk, the Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity, which makes it financially indifferent to a borrower’s decision to prepay an advance. The Bank records prepayment fees net of basis adjustments, which are primarily related to hedging activities included in the carrying value of the advance, as interest income on advances on the Statements of Income.

The following table presents the components of net advances prepayment fees for the years presented (dollars in millions):

	For the Years Ended December 31,
	2024		2023		2022
Gross advances prepayment fees	$	(23)	$	(90)	$	(223)
Hedging fair value adjustments on prepaid advances	37		88		237
Other	—		5		(12)
Net advances prepayment fees	$	14	$	3	$	2

The gross prepayment fees are the result of the fair value of the advances at the time of prepayment, which is generally offset by the fair value of the hedge.

The following table presents key components of net interest income for the years presented (dollars in millions):

	For the Years Ended December 31,
	2024		2023		2022
Interest income:
Advances	$	5,467	$	6,681	$	1,748
Investments	2,881		2,719		755
Mortgage loans	5		6		7
Loans to other FHLBanks	—		—		1
Total interest income	8,353		9,406		2,511
Interest expense:
Consolidated obligations	7,286		8,415		2,150
Interest-bearing deposits	101		102		34
Total interest expense	7,387		8,517		2,184
Net interest income	$	966	$	889	$	327

As discussed above, net interest income includes components of hedging activity. When hedging relationships qualify for hedge accounting, the interest components of the hedging derivatives will be reflected in interest income or expense. Fair value gains

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and losses of derivatives and hedged items designated in fair value hedging relationships are also recognized in interest income or interest expense. When a hedging relationship is discontinued, the cumulative fair value adjustment on the hedged item will be amortized into interest income or expense over the remaining life of the asset or liability. The impact of hedging on net interest income were decreases of $638 million, $852 million, and $211 million during the years ended December 31, 2024, 2023, and 2022, respectively.

Below are the primary factors that impacted net interest income and net income for the years ended December 31, 2024 and 2023:

•The increase in net interest income was primarily related to an increase in interest rates during the year which impacted income from interest-earning assets more than the expense from interest-bearing liabilities, partially offset by a decrease in average advance balances.

•Average advance balances were $98.8 billion for the year ended December 31, 2024, compared to $125.4 billion for 2023. The decrease in average advance balances was primarily due to market liquidity concerns that occurred during the first quarter of 2023, resulting in an increase in advance balances, and continued to impact advance balances through the third quarter of 2023.

•The increase in net income was primarily due to a $77 million increase in net interest income. Additionally, during 2024 the Bank had $49 million of voluntary housing and community investment expense, compared to $19 million during 2023.

•Average consolidated obligation balances were $140.4 billion for the year ended December 31, 2024, compared to $166.3 billion for 2023.

The following tables present the change in interest income and expense due to volume or rate variance for the years ended December 31, 2024, 2023, and 2022 (dollars in millions). The interest-rate spread is affected by the inclusion or exclusion of net interest income or expense associated with the Bank’s derivatives. If the derivatives do not qualify for fair-value hedge accounting under GAAP, the interest income or expense associated with the derivatives is excluded from net interest income and from the calculation of interest-rate spread and is recorded in Noninterest income (loss) as “Net gains (losses) on derivatives.” Amortization associated with some hedging-related basis adjustments is also reflected in net interest income, which affects interest-rate spread.

The net yield on interest-earning assets was 64 basis points, 50 basis points, and 28 basis points for 2024, 2023, and 2022, respectively.

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	For the Years Ended December 31,										Change due to
	2024					2023
	Average Balance		Interest		Yield/     Rate (%)	Average Balance		Interest		Yield/     Rate (%)	Volumes(6)		Rate (6)		Net Change
Assets
Interest-bearing deposits (1)	$	3,155	$	168	5.33	$	4,274	$	222	5.18	$	(60)	$	6	$	(54)
Securities purchased under agreements to resell	6,241		324		5.18	6,910		347		5.03	(34)		11		(23)
Federal funds sold	13,148		686		5.22	14,035		717		5.11	(46)		15		(31)
Investment securities (2)	30,298		1,703		5.62	28,249		1,433		5.07	108		162		270
Advances (3)	98,834		5,467		5.53	125,385		6,681		5.33	(1,460)		246		(1,214)
Mortgage loans (4)	96		5		5.35	111		6		5.45	(1)		—		(1)
Loans to other FHLBanks	—		—		—	8		—		4.64	—		—		—
Total interest-earning assets	151,772		8,353		5.50	178,972		9,406		5.26	(1,493)		440		(1,053)
Noninterest-earning assets	1,694					1,771
Total assets	$	153,466				$	180,743
Liabilities and Capital
Interest-bearing deposits (5)	$	2,006	101		5.04	$	2,047	102		4.97	(2)		1		(1)
Consolidated obligations, net:
Discount notes	23,573		1,210		5.13	35,727		1,798		5.03	(624)		36		(588)
Bonds	116,794		6,076		5.20	130,579		6,617		5.07	(713)		172		(541)
Other borrowings	4		—		4.67	1		—		8.81	—		—		—
Total interest-bearing liabilities	142,377		7,387		5.19	168,354		8,517		5.06	(1,339)		209		(1,130)
Noninterest-bearing liabilities	2,706					3,653
Total capital	8,383					8,736
Total liabilities and capital	$	153,466				$	180,743
Interest-rate spread					0.31					0.20
Average interest-earning assets to interest-bearing liabilities					106.60					106.31
Net yield on interest-earning assets(7)	$	151,772	$	966	0.64	$	178,972	$	889	0.50
Changes in net interest income											$	(154)	$	231	$	77

____________ 

(1)Includes amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

(2)Includes available-for-sale securities at amortized cost.

(3)Interest income and average yield include net prepayment fees on advances that were not material for the reported periods.

(4)Nonperforming mortgage loans are included in average balances used to determine average rate.

(5)Includes amounts recognized for the right to return cash collateral received under master netting agreements with derivative counterparties.

(6) Volume change is calculated as the change in volume multiplied by the previous rate, while rate change is calculated as the change in rate multiplied by the

previous volume. The rate/volume change, calculated as the change in rate multiplied by the change in volume, is allocated between volume change and rate

change at the ratio each component bears to the absolute value of its total.

(7) Calculated as interest earnings divided by total-earning assets, with net interest earnings equaling the difference between total interest earned and total

interest paid.

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	For the Years Ended December 31,										Change due to
	2023					2022
	Average Balance		Interest		Yield/     Rate (%)	Average Balance		Interest		Yield/     Rate (%)	Volumes(6)		Rate (6)		Net Change
Assets
Interest-bearing deposits (1)	$	4,274	$	222	5.18	$	2,869	$	62	2.17	$	42	$	118	$	160
Securities purchased under agreements to resell	6,910		347		5.03	6,940		143		2.06	(1)		205		204
Federal funds sold	14,035		717		5.11	10,124		173		1.71	88		456		544
Investment securities (2)	28,249		1,433		5.07	19,752		377		1.91	218		838		1,056
Advances (3)	125,385		6,681		5.33	75,780		1,748		2.31	1,643		3,290		4,933
Mortgage loans (4)	111		6		5.45	132		7		5.17	(1)		—		(1)
Loans to other FHLBanks	8		—		4.64	28		1		2.67	(1)		—		(1)
Total interest-earning assets	178,972		9,406		5.26	115,625		2,511		2.17	1,988		4,907		6,895
Noninterest-earning assets	1,771					825
Total assets	$	180,743				$	116,450
Liabilities and Capital
Interest-bearing deposits (5)	$	2,047	102		4.97	$	2,111	34		1.63	(1)		69		68
Consolidated obligations, net:
Discount notes	35,727		1,798		5.03	43,530		805		1.85	(168)		1,161		993
Bonds	130,579		6,617		5.07	62,955		1,345		2.14	2,315		2,957		5,272
Other borrowings	1		—		8.81	13		—		1.08	—		—		—
Total interest-bearing liabilities	168,354		8,517		5.06	108,609		2,184		2.01	2,146		4,187		6,333
Noninterest-bearing liabilities	3,653					2,038
Total capital	8,736					5,803
Total liabilities and capital	$	180,743				$	116,450
Interest-rate spread					0.20					0.16
Average interest-earning assets to interest-bearing liabilities					106.31					106.46
Net yield on interest-earning assets(7)	$	178,972	$	889	0.50	$	115,625	$	327	0.28
Changes in net interest income											$	(158)	$	720	$	562

____________ 

(1)Includes amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

(2)Includes available-for-sale securities at amortized cost.

(3)Interest income and average yield include net prepayment fees on advances that were not material for the reported periods.

(4)Nonperforming mortgage loans are included in average balances used to determine average rate.

(5)Includes amounts recognized for the right to return cash collateral received under master netting agreements with derivative counterparties.

(6) Volume change is calculated as the change in volume multiplied by the previous rate, while rate change is calculated as the change in rate multiplied by the

previous volume. The rate/volume change, calculated as the change in rate multiplied by the change in volume, is allocated between volume change and rate

change at the ratio each component bears to the absolute value of its total.

(7) Calculated as interest earnings divided by total-earning assets, with net interest earnings equaling the difference between total interest earned and total

interest paid.

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Derivatives and Hedging Activity

The following tables present the net effect of derivatives and hedging activity on the Bank’s results of operations for the years presented (dollars in millions):

	For the Year Ended December 31, 2024
	Advances		Investments		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes		Total
Net interest income:
Amortization or accretion of hedging activities	$	1	$	—	$	(466)	$	—	$	(465)
Net changes in fair value hedges	8		—		475		—		483
Net interest settlements on derivatives (1)	472		28		(1,120)		(6)		(626)
Price alignment amount (2)	(27)		2		(2)		(11)		(38)
Amortization or accretion of inactive hedging relationships	13		—		(5)		—		8
Total effect on net interest income	$	467	$	30	$	(1,118)	$	(17)	$	(638)
Effect on noninterest income:
Gains on derivatives not receiving hedge accounting including net interest settlements	$	1	$	—	$	—	$	—	$	1

	For the Year Ended December 31, 2023
	Advances		Investments		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes		Balance Sheet		Total
Net interest income:
Amortization or accretion of hedging activities	$	10	$	—	$	(456)	$	—	$	—	$	(446)
Net changes in fair value hedges	(9)		—		456		(2)		—		445
Net interest settlements on derivatives (1)	499		5		(1,314)		(3)		—		(813)
Price alignment amount (2)	(39)		—		(1)		(3)		—		(43)
Amortization or accretion of inactive hedging relationships	9		—		(4)		—		—		5
Total effect on net interest income	$	470	$	5	$	(1,319)	$	(8)	$	—	$	(852)
Effect on noninterest income:
(Losses) gains on derivatives not receiving hedge accounting including net interest settlements	$	(4)	$	—	$	—	$	1	$	(1)	$	(4)

	For the Year Ended December 31, 2022
	Advances		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes		Total
Net interest income:
Amortization or accretion of hedging activities	$	(185)	$	(12)	$	—	$	(197)
Net changes in fair value hedges	213		4		1		218
Net interest settlements on derivatives (1)	(17)		(187)		(32)		(236)
Price alignment amount (2)	(10)		—		—		(10)
Amortization or accretion of inactive hedging relationships	14		—		—		14
Total effect on net interest income	$	15	$	(195)	$	(31)	$	(211)
Effect on noninterest income:
Gains on derivatives not receiving hedge accounting including net interest settlements	$	—	$	2	$	—	$	2

____________ 

(1)Represents interest income or expense on derivatives included in net interest income.

(2)This amount is for derivatives for which variation margin is characterized as daily settled contract.

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Noninterest Income (Loss)

The following table presents the components of noninterest income (loss) for the years presented (dollars in millions): 

							Change
	For the Years Ended December 31,						2024 vs. 2023			2023 vs. 2022
	2024		2023		2022		Amount		Percent	Amount		Percent
Net gains (losses) on derivatives	1		(4)		2		5		117.33	(6)		(308.43)
Standby letters of credit fees	17		10		8		7		65.77	2		25.33
Gain on litigation settlements, net	—		—		4		—		—	(4)		(99.34)
Other	5		(1)		2		6		440.72	(3)		(159.22)
Total noninterest income	$	23	$	5	$	16	$	18	343.24	$	(11)	(68.84)

During 2022, the Bank received a $4 million net litigation settlement related to certain investments in London Interbank Offered Rate (LIBOR)-based financial instruments claim.

Noninterest Expense and AHP Assessment

The following table presents noninterest expense and AHP assessment for the years presented (dollars in millions): 

	For the Years Ended December 31,						Change
	2024		2023		2022		2024 vs. 2023		2023 vs. 2022
Noninterest expense:
Compensation and benefits	$	85	$	80	$	65	$	5	$	15
Cost of quarters	9		7		4		2		3
Other operating expenses	46		44		43		2		1
Total operating expenses	140		131		112		9		19
Finance Agency and Office of Finance	22		21		18		1		3
Voluntary housing and community investment	49		19		5		30		14
Other	4		2		3		2		(1)
Total noninterest expense	215		173		138		42		35
Affordable Housing Program assessment	77		72		21		5		51
Total noninterest expense and AHP assessment	$	292	$	245	$	159	$	47	$	86

The Bank records statutory AHP assessment expense at a rate of 10 percent of income before assessment, excluding interest expense on mandatorily redeemable capital stock.

In addition to the statutory AHP assessment, the Bank may make voluntary contributions to the AHP or other housing and community initiatives, collectively referred to as voluntary contributions. In connection with that, and in recognition that additional funding would be beneficial in meeting community needs in affordable housing as well as business and community development, the Bank began increasing its voluntary contributions levels in late 2023.

Beginning in 2024, the Bank set a commitment to attain voluntary contributions at a minimum of five percent of its prior year’s annual income subject to assessment and prior year’s voluntary contributions. Income subject to assessment is defined as the Bank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. Voluntary contributions reduce net income subject to assessments, and therefore reduce statutory AHP expense. As such, the FHLBanks have committed to make supplemental voluntary contributions to AHP by an amount that equals what the statutory AHP assessment would be in the absence of these effects.

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The following table presents the calculation of the net income subject to assessment, adjusted for voluntary contributions fulfillment to show how the bank’s supplemental voluntary AHP contribution restores the AHP amounts to 10% of the Bank’s earnings absent the Bank’s voluntary commitment fulfillment (dollars in millions):

	For the Year Ended December 31, 2024
Net income subject to statutory assessment	$	774
Adjustment:
Voluntary housing and community investment recognized in Statements of Income (1)	44
Supplemental voluntary AHP contributions for the current year (2)	5
Net income subject to assessment, as adjusted (3)	$	823
10% of net income subject to assessment, as adjusted	$	82
Statutory AHP assessment	$	77
Supplemental voluntary AHP contributions for the current year (2)	5
Total statutory AHP assessment and supplemental voluntary AHP contributions for the current year	$	82

__________

(1) Excludes supplemental AHP contributions for the current year.

(2) Equals 10 percent of voluntary housing and community investment.

(3) Represents the calculated amount of earnings that would be available for AHP assessment if the Bank had not made the voluntary contributions,

which reduce net income before assessments which, in turn, reduces the statutory AHP assessment.

The following table presents the calculation of the voluntary contribution target of the Bank (dollars in millions):

	For the Year Ended December 31, 2024
Prior year’s net income subject to statutory assessment	$	721
Voluntary commitment percentage	5.00		%
Unadjusted voluntary contribution commitment	$	36
Adjustment for supplemental voluntary AHP contributions for the prior year	1
Voluntary contribution commitment target	$	37

The following table presents the fulfillment of voluntary contribution target of the Bank (dollars in millions):

	For the Year Ended December 31, 2024
Voluntary housing and community investment recognized in Statements of Income	$	49
Supplemental voluntary AHP contributions for the current year (1)	(5)
Voluntary contribution fulfillment	$	44
Prior year’s net income subject to statutory assessment	$	721
Prior year’s voluntary housing and community investment	19
Total prior year’s income subject to five percent commitment target	$	740
Actual fulfillment percentage (2)	5.95		%

__________

(1) Equals 10 percent of voluntary housing and community investment.

(2) Calculated as voluntary contribution fulfillment divided by total prior year’s income subject to five percent commitment target.

The following table presents voluntary contributions reported in noninterest expense as “Voluntary housing and community investment” on the Statements of Income which were allocated as follows:

	For the Year Ended December 31, 2024
Voluntary non-statutory AHP contributions:
AHP Homeownership Set-aside Program	$	15
AHP General Fund	8
Total voluntary non-statutory AHP contributions	23
Voluntary non-AHP contributions:
Workforce Housing Plus+ Program	20
Heirs’ Property Family Wealth Protection Fund	6
Total voluntary non-AHP contributions	26
Total voluntary housing and community investment	$	49

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Refer to Note 9—Affordable Housing Program and Voluntary Contributions to the Bank’s 2024 audited financial statements for additional information about the Bank’s voluntary programs.

Additional Financial Data.

The following table presents additional financial data for the last five fiscal years (dollars in millions).

	As of or for the Years Ended December 31,
	2024		2023		2022		2021		2020
Statements of Condition (as of year end)
Total assets	$	147,091	$	152,370	$	151,622	$	78,746	$	92,295
Advances	85,829		96,608		109,595		45,415		52,168
Investments (1)	60,084		54,207		40,902		31,821		36,380
Mortgage loans held for portfolio, net	89		103		120		149		218
Consolidated obligations, net (2)	135,851		141,572		141,510		71,692		84,764
Total capital stock Class B putable	5,148		5,597		5,397		2,383		3,078
Retained earnings	2,785		2,524		2,283		2,228		2,198
Accumulated other comprehensive (loss) income	—		(5)		(34)		(16)		(16)
Total capital	7,933		8,116		7,646		4,595		5,260
Statements of Income (for the year ended)
Net interest income	966		889		327		281		333
Standby letters of credit fees	17		10		8		11		19
Net income	697		649		184		133		255
Performance Ratios (%)
Return on equity (3)	8.31		7.43		3.18		2.79		3.95
Return on assets (4)	0.45		0.36		0.16		0.16		0.19
Net yield on interest-earning assets	0.64		0.50		0.28		0.34		0.26
Interest-rate spread	0.31		0.20		0.16		0.34		0.22
Regulatory capital ratio (as of year end) (5)	5.39		5.33		5.07		5.86		5.72
Total average equity to average assets	5.46		4.83		4.98		5.74		4.90
Dividend payout ratio (6)	62.52		62.86		70.11		77.27		93.86

____________

(1) Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, and securities classified as trading, available-for-sale, and held-to-maturity.

(2) The amounts presented are the Bank’s primary obligations on consolidated obligations outstanding. The par value of the other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was as follows (dollars in millions):

December 31, 2024	$	1,056,184
December 31, 2023	1,061,022
December 31, 2022	1,037,537
December 31, 2021	580,909
December 31, 2020	662,051

(3) Calculated as net income, divided by average total equity.

(4) Calculated as net income, divided by average total assets.

(5) Regulatory capital ratio is regulatory capital, which does not include accumulated other comprehensive (loss) income, but does include mandatorily redeemable capital stock, as a percentage of total assets as of year end.

(6) Calculated as dividends declared during the year, divided by net income during the year.

Liquidity and Capital Resources

Liquidity is necessary to satisfy members’ borrowing needs on a timely basis, repay maturing and called consolidated obligations, and meet other obligations and operating requirements. Many members rely on the Bank as a source of standby liquidity, so the Bank attempts to be in a position to meet member funding needs on a timely basis. The Bank is required to maintain liquidity in accordance with the FHLBank Act, Finance Agency regulations, and policies established by the Bank’s management and board of directors. In addition, the Finance Agency, at times, has issued guidance and expectations to the FHLBanks related to liquidity.

Sources of Liquidity. The Bank’s principal source of liquidity is consolidated obligation debt instruments. To provide additional liquidity, the Bank also may use other short-term borrowings, such as federal funds purchased, securities sold under agreements

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to repurchase, and loans from other FHLBanks. The Bank’s consolidated obligations are not obligations of the U.S. and are not guaranteed by either the U.S. or any government agency, but have historically received the same credit rating as the government bond credit rating of the United States. As a result, the Bank generally has comparatively stable access to funding through a diverse investor base at relatively favorable spreads to U.S. Treasury rates. The Bank’s income and liquidity would be adversely affected if it were not able to access the capital markets at competitive rates for an extended period.

The Bank’s short-term funding is generally driven by member advance demand and is achieved through the issuance of consolidated discount notes and short-term consolidated bonds. Access to short-term debt markets has been reliable because investors, driven by increased liquidity preferences and risk aversion, including the effects of the SEC money market fund reform in 2023, have often sought the Bank’s short-term debt as an asset of choice.

The Bank is focused on maintaining an adequate liquidity balance and a funding balance between its financial assets and financial liabilities. The Bank monitors the funding balance between financial assets and financial liabilities and is committed to prudent risk management practices. In managing and monitoring the amounts of assets that require refunding, the Bank considers contractual maturities of its financial assets, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments and scheduled amortizations). External factors including Bank member borrowing needs, supply and demand in the debt markets, and other factors may also affect the liquidity balances and the funding balance between financial assets and financial liabilities.

Contingency plans are in place that prioritize the allocation of liquidity resources in the event of operational disruptions at the Bank or the Office of Finance. Under the FHLBank Act, the Secretary of Treasury has the authority, at their discretion, to purchase consolidated obligations up to an aggregate amount of $4.0 billion. No borrowings under this authority have been outstanding since 1977.

Liquidity Reserves for Deposits. Finance Agency regulations require the Bank to hold a total amount of obligations of the United States, deposits in eligible banks or trust companies, or advances with maturities not exceeding five years, in an amount not less than the amount of total member deposits. The Bank has complied with this requirement throughout 2024.

Operational Liquidity. In order to ensure adequate operational liquidity (generally, the ready cash and borrowing capacity available to meet the Bank’s intraday needs) each day, Bank policy establishes a daily liquidity target based upon member deposit levels and current day liability maturities and asset settlements. The Bank has met this liquidity requirement throughout 2024.

Additional Liquidity Guidance. The Finance Agency issued an Advisory Bulletin on FHLBank liquidity (Liquidity Guidance AB) that communicates the Finance Agency’s expectations with respect to the maintenance of sufficient liquidity to enable the Bank to provide advances and standby letters of credit for members during a sustained capital market disruption, assuming no access to capital markets and assuming renewal of all maturing advances for a period of between ten to thirty calendar days. The Finance Agency periodically issues supervisory letters that identify thresholds for measures of liquidity within the established ranges set forth in the Liquidity Guidance AB.

The Liquidity Guidance AB’s measurements of liquidity include a cash flow scenario, on a daily basis, that projects forward the number of days for which the Bank should maintain positive cash balances assuming the renewal of all maturing advances and the maintenance of a liquidity reserve for outstanding letters of credit. The measurements of liquidity also include a funding gap measurement of the difference between assets and liabilities that are scheduled to mature during a specified period, expressed as a percentage of the Bank’s total assets to reduce the liquidity risks associated with a mismatch in asset and liability maturities, including an undue reliance on short-term debt funding, which may increase debt rollover risk. The Liquidity Guidance AB permits an FHLBank to temporarily decrease its liquidity position, in a safe and sound manner, below the stated regulatory levels, as necessary for providing unanticipated extensions of advances to members or draws on letters of credit to beneficiaries. The Bank has met this liquidity requirement as directed by the Finance Agency throughout 2024.

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Summary of Cash Flows

The following table presents a summary of net cash provided by (used in) the Bank’s operating, investing, and financing activities (dollars in millions):

		For the Years Ended December 31,
		2024		2023		2022
Net cash provided by (used in):
	Operating activities	$	826	$	455	$	1,487
	Investing activities	5,640		950		(76,664)
	Financing activities	(6,573)		(1,404)		74,439
	Net (decrease) increase in cash and due from banks	$	(107)	$	1	$	(738)

The primary drivers that can impact net operating cash flows are fluctuations in net income and changes in certain adjustments to net income which may include amortization, accretion, derivative and hedging activities, and other adjustments.

•The Bank recorded net income of $697 million and $649 million for the years ended December 31, 2024 and 2023, respectively.

•The Bank recorded net accretion of $58 million and $10 million for the years ended December 31, 2024 and 2023, respectively. The change was primarily driven by changes in interest rates related to investments and consolidated obligation discount notes.

•The Bank recorded a net positive change of $132 million in derivative and hedging activities for the year ended December 31, 2024 compared to a net negative change of $470 million in derivative and hedging activities for the same period in 2023. The change in derivative and hedging activities was primarily driven by the change in interest rates.

•The Bank recorded a positive change of $189 million and a negative change of $196 million for the years ended December 31, 2024 and 2023, respectively, in accrued interest receivable. The change in accrued interest receivable was primarily driven by lower advance balances during the year ended December 31, 2024 compared to the same period in 2023.

•The Bank recorded a negative change of $182 million and a positive change of $421 million for the years ended December 31, 2024 and 2023, respectively, in accrued interest payable. The change in accrued interest payable was primarily driven by the changes in interest rates related to consolidated obligations.

Net cash provided by investing activities fluctuate primarily based on advances and investing activities.

•The Bank originated a total of $311.4 billion of advances and collected $322.0 billion of advances principal for the year ended December 31, 2024 compared to $470.0 billion and $483.4 billion, respectively, for the same period in 2023.

•The Bank purchased investment securities of $3.8 billion and received proceeds from principal collected of $4.7 billion for the year ended December 31, 2024 compared to $10.8 billion and $5.1 billion, respectively, for the same period in 2023. The Bank recorded a net change of negative $5.9 billion related to liquidity investments for the year ended December 31, 2024 compared to a net change of negative $6.7 billion for the same period in 2023.

Net cash used in financing activities fluctuate primarily based on the issuance and payments for maturing and retiring consolidated obligations.

•The Bank issued $398.3 billion in consolidated obligations and paid $404.7 billion for maturing and retiring consolidated obligations for the year ended December 31, 2024, compared to $413.2 billion and $414.2 billion, respectively, for the same period in 2023.

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Anticipated Cash Expenditures

The following table presents the payment due date or expiration terms of the Bank’s significant anticipated cash expenditures as of December 31, 2024 (dollars in millions).

	One year or less		After one year through three years		After three years through five years		After five years		Total
Consolidated obligations(1)	$	115,532	$	16,934	$	3,358	$	960	$	136,784
Pension and post-retirement contributions(2)	2		14		1		11		28
Total	$	115,534	$	16,948	$	3,359	$	971	$	136,812

____________ 

(1) Does not include contractual interest payments related to bonds. Total is based on contractual maturities; the actual timing of payments could be impacted by factors affecting redemption.

(2) Includes future funding contributions for the qualified pension plan and scheduled benefit payments for the nonqualified defined benefit plans and postretirement health benefit plan.

Refer to the respective footnote in Item 8. Financial Statements and Supplementary Data for more information on each of the

contractual obligations listed in the above table.

Off-balance Sheet Commitments

The Bank’s primary off-balance sheet commitments are as follows:

•the Bank’s joint and several liability for all FHLBank consolidated obligations; and

•the Bank’s outstanding commitments arising from standby letters of credit.

Should an FHLBank be unable to satisfy its payment obligation under a consolidated obligation for which it is the primary obligor, any of the other FHLBanks, including the Bank, could be called upon to repay all or any part of such payment obligation, as determined or approved by the Finance Agency. As of December 31, 2024, none of the other FHLBanks defaulted on their consolidated obligations; the Finance Agency was not required to allocate any obligation among the FHLBanks; and no amount of the joint and several obligation was fixed. Accordingly, the Bank has not recognized a liability for its joint and several obligations related to other FHLBanks’ consolidated obligations as of December 31, 2024 and 2023. As of December 31, 2024, the FHLBanks had $1,193.0 billion in aggregate par value of consolidated obligations issued and outstanding, $136.8 billion of which was attributable to the Bank. No FHLBank has ever defaulted on its principal or interest payments under any consolidated obligation, and the Bank has never been required to make payments under any consolidated obligation as a result of the failure of another FHLBank to meet its obligations.

The Bank generally requires standby letters of credit to contain language permitting the Bank, upon annual renewal dates and prior notice to the beneficiary, to choose not to renew the standby letter of credit, which effectively terminates the standby letter of credit prior to its scheduled final expiration date. Based on the creditworthiness of the member applicant and appropriate additional fees, the Bank may issue standby letters of credit that have terms longer than one year without annual renewals or that have no stated maturity and are subject to renewal on an annual basis.

Commitments to extend credit, including standby letters of credit, are agreements to lend. The Bank issues a standby letter of credit on behalf of a member in exchange for a fee. A member may use these standby letters of credit to facilitate a financing arrangement. Management regularly reviews its standby letter of credit pricing in light of several factors, including the Bank’s potential liquidity needs related to draws on its standby letters of credit. Based on management’s credit analyses and collateral requirements, the Bank did not deem it necessary to have an allowance for credit losses for these unfunded standby letters of credit as of December 31, 2024.

Refer to Note 15—Commitments and Contingencies to the Bank’s 2024 audited financial statements for more information about the Bank’s outstanding standby letters of credit.

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Critical Accounting Estimates

The preparation of the Bank’s financial statements in accordance with GAAP requires management to make a number of judgments and assumptions that impacts the Bank’s financial condition and results of operations. Several of the Bank’s accounting estimates are inherently subject to valuation assumptions and other subjective assessments and are more critical than others to the Bank’s results. The critical accounting estimates relating to the fair value measurement of interest-rate related derivatives and associated hedged items are generally considered to be the most critical because it requires management’s subjective and complex judgments about matters, including forward interest-rate assumptions, that are inherently uncertain. Management bases its judgments 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.

Derivative instruments are carried at fair value on the Statements of Condition. Any change in the fair value of a derivative is recorded each period in current period earnings. Therefore, the assumptions and judgment most critical to the application of this accounting policy are those affecting the estimation of fair values of derivative instruments and the related hedged items, which may have a significant impact on the Bank’s financial condition and results of operations. A majority of the Bank’s derivatives are structured to offset some or all of the risk exposure inherent in its lending, investment, and funding activities. The Bank seeks to utilize hedging techniques that are effective under the hedge accounting requirements; however, in some cases, the Bank has elected to enter into derivatives that are economically effective at reducing risk but do not meet hedge accounting requirements (non-qualifying hedge). Non-qualifying hedges introduce the potential for considerable income variability from period to period. Specifically, a mismatch can exist between the timing of income and expense recognition from assets or liabilities and the income effects of derivative instruments positioned to mitigate market risk and cash flow variability. Therefore, during periods of significant changes in interest rates and other market factors, reported earnings may exhibit considerable variability. The total notional amount of derivatives was $100.6 billion as of December 31, 2024, of which 99.9 percent were designated as hedging instruments, and the fair value of derivative assets and liabilities as of December 31, 2024 was $445 million and $12 million, respectively.

The Bank bases the fair values of derivatives on instruments with similar terms or market prices, when available. However, active markets do not exist for many of the Bank’s derivatives. Consequently, fair values for these instruments are generally estimated using standard valuation techniques such as comparisons to similar instruments and/or discounted cash flow analysis, which uses observable market inputs, such as discount rate, forward interest rates, and volatility assumptions. Observable market inputs are actively quoted and can be validated to external sources. Refer to Note 14—Estimated Fair Values to the Bank’s 2024 audited financial statements for further discussion regarding valuation methodologies and primary inputs used to develop the fair value measurement for these instruments.

A hedging relationship is created from the designation of a derivative financial instrument as hedging the Bank’s exposure to changes in the fair value of a financial instrument. Fair value hedge accounting allows for the offsetting fair value of the hedged risk in the hedged item to also be recorded in current period earnings. Perfectly effective hedges that use interest-rate swaps as the hedging instrument and that meet certain stringent criteria can qualify for “shortcut” fair value hedge accounting. Shortcut hedge accounting allows for the assumption of no ineffectiveness, which means that the change in fair value of the hedged item can be assumed to be equal to the change in fair value of the derivative. The Bank does not apply shortcut hedge accounting.

For derivative transactions that potentially qualify for long-haul fair value hedge accounting treatment, management must assess how effective the derivatives have been, and are expected to be, in hedging offsetting changes in the estimated fair values attributable to the risks being hedged in the hedged items. Quantitative hedge effectiveness testing is performed at the inception of the hedging relationship and on an ongoing basis for long-haul fair value hedges. The Bank performs testing at hedge inception based on regression analysis of the hypothetical performance of the hedging relationship using historical market data. The Bank then perform regression testing on an ongoing basis using accumulated actual values in conjunction with hypothetical values. For the hedging relationship to be considered effective, results must fall within established tolerances. If the hedge fails effectiveness testing, the hedge no longer qualifies for hedge accounting and the derivative is marked to estimated fair value through current period earnings without any offsetting change in estimated fair value related to the hedged item.

Recently Issued But Not Yet Adopted Accounting Standards

See Note 3—Recently Issued But Not Yet Adopted Accounting Standards to the Bank’s 2024 audited financial statements for a discussion of recently issued but not yet adopted accounting standards.

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Legislative and Regulatory Developments

Certain significant legislative and regulatory actions and developments are summarized below.

The Bank is subject to various legal and regulatory requirements and regulatory expectations. Certain early actions by the new federal executive administration indicate the Bank’s regulatory environment is changing. Changes in the regulatory environment under the current federal executive administration, including regulatory priorities and areas of focus, could affect the Bank’s business operations, results of operations and reputation. For example, on January 20, 2025, the federal executive administration ordered all 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. This applies to proposed rules, among other regulatory actions, including those discussed in this Legislative and Regulatory Developments section. As a result, there is uncertainty with respect to the ultimate result of the impacted regulatory actions and their ultimate effects on the Bank and the FHLBank System.

Finance Agency’s Review and Analysis of the FHLBank System. On November 7, 2023, the Finance Agency issued a written report titled “FHLBank System at 100: Focusing on the Future,” (System at 100 Report) presenting its review and analysis of the FHLBank System and the actions and recommendations that it planned to pursue in service of its vision for the future of the FHLBank System. The report focused on four broad themes as part of a multi-year collaborative effort with the FHLBanks, their member institutions, and other stakeholders to: (1) update and clarify its regulatory statement of the FHLBanks’ mission; (2) clarify the FHLBanks’ liquidity role; (3) expand the FHLBanks’ housing and community development focus; and (4) promote the FHLBanks’ operational efficiency. The Finance Agency has since issued rulemakings and requests for input, and made legislative recommendations for the FHLBank System in its 2023 Report to Congress issued on June 14, 2024 consistent with proposed plans and actions included in the System at 100 Report. Given the current regulatory environment, the Bank is not able to predict what actions, if any, will ultimately result from the Finance Agency’s recommendations in the report, the timing of any such actions, the extent of any changes to the Bank or the FHLBank System, or the ultimate effect on the Bank or the FHLBank System of any such actions. For discussion of the related risks, see Item 1A. Risk Factors.

Finance Agency Final Rule on Fair Lending, Fair Housing, and Equitable Housing Finance Plans. On May 16, 2024, the Finance Agency published in the Federal Register its final rule that specifies requirements related to FHLBanks’ compliance with fair housing and fair lending laws and related regulations, including the Fair Housing Act and the Equal Credit Opportunity Act, and prohibitions on unfair or deceptive acts or practices under the Federal Trade Commission Act (the FTC Act). The final rule (i) addresses the enforcement authority of the Finance Agency; (ii) articulates standards related to boards of directors’ oversight of fair housing, fair lending, and the prohibitions on unfair or deceptive acts or practices under the FTC Act; and (iii) requires each FHLBank to annually report actions it voluntarily takes to address barriers to sustainable housing opportunities for underserved communities (Equitable Housing Report Requirements). The final rule became effective on July 15, 2024 except that the Equitable Housing Report Requirements will become effective on February 15, 2026. The Finance Agency has since issued advisory bulletins setting forth its expectations regarding the FHLBanks’ compliance with the final rule. The Bank is continuing its review of the final rule and evaluating the impact it may have on the Bank and its operations.

Advisory Bulletin 2024-03 on FHLBank Member Credit Risk Management. On September 27, 2024, the Finance Agency issued an advisory bulletin setting forth the Finance Agency’s expectations that an FHLBank’s underwriting and credit decisions should reflect a member’s financial condition and not rely solely on the collateral securing the member’s credit obligations. The advisory bulletin provides guidance for the FHLBanks to implement policies for credit risk governance, member credit assessment and monitoring of credit conditions, among other considerations. It also provides guidance on the oversight of members in financial distress by recommending implementation of escalation policies, processes for coordination with members’ prudential regulators, and management policies addressing default, failure, and insolvency situations. The Bank is evaluating this advisory bulletin versus its current member credit risk management policies and procedures to assess its potential impact on the Bank, its operations and its members.

Advisory Bulletin AB 2024-04 Federal Home Loan Bank System Climate-Related Risk Management. On September 30, 2024, the Finance Agency issued an advisory bulletin setting forth the Finance Agency’s expectation that each FHLBank should integrate climate-related risk management into its existing enterprise risk management framework over time. The advisory bulletin provides that an effective framework should address climate-related risk governance, such as selection of the related risk appetite and setting strategy and objectives, establishing and implementing plans to mitigate and monitor and report material exposures to such risks, and establishing roles and responsibilities for the board of directors and management. The advisory bulletin requires the FHLBanks to establish metrics that track exposure to climate-related risks and collect related data to quantify risk exposures, conduct climate-related scenario analyses, implement processes to report and communicate climate-related risks to internal stakeholders, and have a plan to respond to natural disasters and support climate resiliency. The

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advisory bulletin also requires the Bank to identify and incorporate climate-related legal and compliance risk into its existing enterprise risk management framework, including applicable climate-related regulations and federal and state disclosure requirements. Relatedly, the Bank continues to monitor developments relevant to the SEC’s final rule on the enhancement and standardization of climate-related disclosures and notes recent statements from the Acting Commission of the SEC that indicate that the SEC could take steps to rescind the rule. The Bank also continues to monitor the status of certain climate-related state laws to assess their possible impacts on the Bank.

Proposed Rule on FHLBank System Boards of Directors and Executive Management. On November 4, 2024, the Finance Agency published a notice of proposed rulemaking in the Federal Register that would revise regulations addressing boards of directors and overall corporate governance of the FHLBanks and the Office of Finance. If adopted as proposed, it would, among other things: (1) affect director compensation by allowing the Director of the Finance Agency to establish an annual amount of director compensation that the Director determines is reasonable; (2) require the Bank to complete and submit background checks to the Finance Agency on every nominee for a directorship; (3) change public interest independent director qualifications, in part, by requiring a person to have advocated for, or otherwise acted primarily on behalf of or for the direct benefit of, consumers or the community to meet the representation requirement; (4) expand the list of qualifying experiences for all Bank independent directors to include artificial intelligence, information technology and security, climate-related risk, Community Development Financial Institutions business models, and modeling; and (5) establish a review process for director performance and participation, together with a process for removing Bank directors for cause. Other proposed revisions address, among other things, Bank conflicts of interest policies, covering all Bank employees, including specific limitations on executive officers and senior management, and record retention. Several of the proposed revisions could result in significant changes to the nomination, election, and retention of the Bank’s board of directors. Additional director eligibility requirements and limitations on, and potential reductions or limitations to, director compensation resulting from the proposed rule could hinder the Bank’s ability to recruit and retain the talent and expertise that are critical to the Bank’s ability to satisfy its mission, particularly given the growing complexities of the finance industry. The Bank continues to consider the effect that the proposed rule could have on it.

Agreements Regarding Process to End the Conservatorships of Fannie Mae and Freddie Mac (the Enterprises). The Enterprises have been in conservatorship since September 2008. On January 2, 2025, the Finance Agency and the U.S. Department of the Treasury entered into certain agreements one of which, among other things, sets out a process that would govern the resolution of the conservatorships of the Enterprises other than in the instances of receivership of the Enterprises. This can have implications for FHLBanks’ investment programs to the extent that they invest in Enterprises unsecured debt. Also, the Bank also competes with Enterprises for funds raised through the issuance of debt. To the extent that changes to the management of the Enterprises can result in increases in the supply of competing debt products, higher debt costs could negatively affect the Bank’s financial condition and results of operations.

The Bank continues to monitor these actions and guidance as they evolve and to evaluate their potential impact on the Bank.

Risk Management

The Bank’s lending, investment and funding activities, and use of derivative hedge instruments expose the Bank to a number of risks. The Bank’s robust risk management framework is designed to align risk-taking activities with the Bank’s strategies and risk appetite and to appropriately balance risks and rewards. The Bank’s risk management framework consists of risk governance, risk appetite, and risk management policies.

The Bank’s board of directors and management recognize that risks are inherent to the Bank’s business model and that the process of establishing a risk appetite does not imply that the Bank seeks to mitigate or eliminate all risk. By defining and managing to a specific risk appetite, the board of directors and management ensure that there is a common understanding of the Bank’s desired risk profile, which enhances strategic and tactical decisions. Additionally, the Bank aspires to (1) sustain a diverse, equitable and inclusive corporate culture of transparency, integrity, and adherence to legal and ethical obligations: and (2) achieve best practices in governance, ethics, and compliance.

The Bank’s board of directors and management have established a risk appetite statement and risk metrics for controlling and escalating actions based on the following eight continuing objectives in 2024 that represent the foundation of the Bank’s strategic and tactical planning:

•Capital Adequacy - maintain adequate levels of capital components (retained earnings and capital stock) that protect against the risks inherent in the Bank’s business activities and provide sufficient resiliency to withstand potential stressed scenarios.

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•Credit and Concentration Risk - minimize credit losses by managing credit and collateral risk exposures within acceptable parameters. Achieve this objective through data-driven analysis and counterparty-specific analysis (and when appropriate, perform member-specific analysis), monitoring and verification, including new collateral policy expansions to ensure appropriate controls and that monitoring is consistent with managing existing credit and collateral risk exposures. Monitor through enhanced reporting any elevated risk concentrations, and when appropriate, manage and mitigate the increased risk.

•Market Risk/Earnings - produce a competitive return on equity, while providing attractive funding for advance products, consistent payment of dividends, reliable access to funding, and maintenance of retained earnings in excess of stressed retained earnings targets within a conservative risk management framework.

•Liquidity Risk - maintain sufficient liquidity and funding sources to allow the Bank to meet its operational and member liquidity needs under all reasonable economic and operational situations.

•Governance/Compliance/Legal - comply fully with all applicable laws and regulations and manage all legal risk effectively and efficiently.

•Reputation - recognize the importance of and advance positive awareness and perception of the Bank and its mission among key external stakeholders impacting the Bank’s ability to achieve its mission.

•Mission/Business Model - deliver financial services and consistent access to liquidity in the size, cost and structure members desire, helping them to manage risk and extend credit in their communities, while achieving the Bank’s affordable housing mission goals; achieve the Bank’s Diversity, Equity, and Inclusion goals and meet regulatory requirements; and provide value through the consistent payment of dividends and the repurchasing of excess stock.

•Operations - deliver an employee value proposition that allows the Bank to attract, retain, engage and develop staff to meet the evolving needs of the Bank’s key stakeholders and effectively manage enterprise-wide risks. Manage the key risks associated with operational availability and resiliency of critical systems and services, the integrity and security of the Bank's information, and the alignment of technology investment with key business objectives through enterprise-wide risk management practices and governance based on industry standards. Manage the key risks associated with cyber security threats.

The board and management recognize that risk and risk producing events are dynamic and ever-present. Accordingly, reporting, analyzing and mitigating risks are paramount to successful corporate governance. The board utilizes risk appetite metrics and monitoring analysis that reflect the board’s risk appetite statement and the appropriate thresholds for action and reporting.

The Risk Management Policy (RMP) also governs the Bank’s approach to managing the above risks. The Bank’s board of directors reviews the RMP annually and approves amendments to the RMP from time to time as necessary. To promote compliance with the RMP, the Bank has established internal management committees to provide oversight of these risks. The Bank produces a comprehensive risk assessment report on an annual basis that is reviewed by the board of directors. In addition to the established risk appetite and the RMP, the Bank is also subject to Finance Agency regulations and policies regarding risk management.

Market Risk

General

The Bank is exposed to market risk because changes in interest rates and spreads can have a direct effect on the value of the Bank’s assets and liabilities. As a result of the volume of its interest-earning assets and interest-bearing liabilities, the interest-rate risk component of market risk has the greatest impact on the Bank’s financial condition and results of operations.

Interest rates are impacted by various factors, including the economic environment and other aspects affecting the financial and banking industry.

Interest-rate risk represents the risk that the aggregate market value or estimated fair value of the Bank’s asset, liability, and derivative portfolios will decline as a result of interest-rate volatility or that net earnings will be affected significantly by interest-rate changes. Interest-rate risk can occur in a variety of forms including repricing risk, yield-curve risk, basis risk, and option risk. The Bank faces repricing risk whenever an asset and a liability reprice at different times and with different rates,

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resulting in interest-margin sensitivity to changes in market interest rates. Yield-curve risk reflects the possibility that changes in the shape of the yield curve may affect the market value of the Bank’s assets and liabilities differently because a liability used to fund an asset may be short-term, while the asset is long-term, or vice versa. Basis risk occurs when yields on assets and costs on liabilities are based on different bases, such SOFR versus the Bank’s cost of funds. Different bases can move at different rates or in different directions, which can cause erratic changes in revenues and expenses. Option risk is presented by the optionality that is embedded in some assets and liabilities. Mortgage assets represent the primary source of option risk.

The primary goal of the Bank’s interest-rate risk measurement and management efforts is to control the above risks through prudent asset-liability management strategies so that the Bank may provide members with dividends that are consistently competitive with existing market interest rates on alternative short-term and variable-rate investments. The Bank attempts to manage interest-rate risk exposure by using appropriate funding instruments and hedging strategies. Hedging may occur at the micro level, for one or more specifically identified transactions, or at the macro level. Management evaluates the Bank’s macro hedge position and funding strategies on a daily basis and makes adjustments as necessary.

The Bank measures its potential market risk exposure in a number of ways. These include asset, liability, and equity duration analyses; and earnings forecast scenario analyses that reflect repricing gaps. The Bank establishes tolerance limits for these financial metrics and uses internal models to measure each of these risk exposures at least monthly.

Use of Derivatives

The Bank enters into derivatives to reduce the interest-rate risk exposure inherent in otherwise unhedged assets and funding positions and attempts to do so in the most cost-efficient manner. The Bank does not engage in speculative trading of these instruments. The Bank’s derivative positions may include interest-rate swaps, options, swaptions, interest-rate cap and floor agreements, and forward contracts. These derivatives are used to adjust the effective maturity, repricing frequency, or option characteristics of financial instruments to achieve risk-management objectives. Within its risk management strategy, the Bank uses derivative financial instruments in the following two ways:

•As a fair-value hedge of an underlying financial instrument or a firm commitment. For example, the Bank uses derivatives to reduce the interest-rate net sensitivity of consolidated obligations, advances, and investments by, in effect, converting them to a short-term interest rate. The Bank also uses derivatives to manage embedded options in assets and liabilities and to hedge the market value of existing assets and liabilities. The Bank’s management reevaluates its hedging strategies from time to time and may change the hedging techniques used or adopt new strategies as deemed prudent.

•As an asset-liability management tool, for which hedge accounting is not applied (non-qualifying hedge). The Bank may enter into derivatives that do not qualify for hedge accounting. As a result, the Bank recognizes the change in fair value and interest income or expense of these derivatives in the “Noninterest income (loss)” section of the Statements of Income as “Net gains (losses) on derivatives” with no offsetting fair-value adjustments of the hedged asset, liability, or firm commitment. Consequently, these transactions can introduce earnings volatility.

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The following table presents the notional amounts of derivative financial instruments (dollars in millions). The category “Fair value hedges” represents hedge strategies for which hedge accounting is achieved. The category “Non-qualifying hedges” represents hedge strategies for which the derivatives are not in designated hedging relationships that formally meet the hedge accounting requirements under GAAP.

			As of December 31,
			2024		2023
Hedged Item / Hedging Instrument	Hedging Objective	Hedge Accounting Designation	Notional Amount		Notional Amount
Advances
Pay fixed, receive variable interest-rate swap (without options)	Converts the advance’s fixed rate to a variable-rate index.	Fair value hedges	$	20,982	$	21,270
		Non-qualifying hedges	—		2
Pay fixed, receive variable interest-rate swap (with options)	Converts the advance’s fixed rate to a variable-rate index and offsets option risk in the advance.	Fair value hedges	3,916		2,693
		Non-qualifying hedges	—		5
Pay fixed with embedded features, receive variable interest-rate swap (non-callable)	Reduces interest-rate sensitivity and repricing gaps by converting the advance’s fixed rate to a variable-rate index and/or offsets embedded option risk in the advance.	Fair value hedges	223		1,502
		Total	25,121		25,472
Investments
Pay fixed, receive variable interest-rate swap	Converts the investment’s fixed rate to a variable-rate index.	Fair value hedges	4,253		2,350
Pay fixed, receive variable interest-rate swap (with options)	Converts the investment’s fixed rate to a variable-rate index.	Fair value hedges	680		239
		Total	4,933		2,589
Consolidated Obligation Bonds
Receive fixed, pay variable interest-rate swap (without options)	Converts the bond’s fixed rate to a variable-rate index.	Fair value hedges	11,050		9,103
Receive fixed, pay variable interest-rate swap (with options)	Converts the bond’s fixed rate to a variable-rate index and offsets option risk in the bond.	Fair value hedges	39,142		63,671
		Total	50,192		72,774
Consolidated Obligation Discount Notes
Receive fixed, pay variable interest-rate swap	Converts the discount note’s fixed rate to a variable-rate index.	Fair value hedges	20,283		6,750
Balance Sheet
Interest-rate cap or floor	Protects against changes in income of certain assets due to changes in interest rates.	Non-qualifying hedges	—		4,000
Pay variable, receive fixed interest rate swap	Interest-rate swap not linked to specific assets, liabilities or forecasted transactions.	Non-qualifying hedges	20		20
Pay fixed, receive variable interest rate swap	Interest-rate swap not linked to specific assets, liabilities or forecasted transactions.	Non-qualifying hedges	20		20
		Total	40		4,040
Intermediary Positions and Other
Pay fixed, receive variable interest-rate swap, and receive fixed, pay variable interest-rate swap	To offset interest-rate swaps executed with members by executing interest-rate swaps with derivatives counterparties.	Non-qualifying hedges	20		22
Total notional amount			$	100,589	$	111,647

Interest-rate Risk Exposure Measurement

The Bank measures interest-rate risk exposure by various methods. The primary methods used are (1) calculating the effective duration of assets, liabilities, and equity under various scenarios; and (2) calculating the theoretical market value of equity. Effective duration, normally expressed in years or months, measures the price sensitivity of the Bank’s interest-bearing assets and liabilities to changes in interest rates. As effective duration lengthens, market-value changes become more sensitive to interest-rate changes. The Bank employs sophisticated modeling systems to measure effective duration.

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Effective duration of equity aggregates the estimated sensitivity of market value for each of the Bank’s financial assets and liabilities to changes in interest rates. Effective duration of equity is computed by taking the market value-weighted effective duration of assets, less the market value-weighted effective duration of liabilities, and dividing the remainder by the market value of equity. Market value of equity is not indicative of the market value of the Bank as a going concern or the value of the Bank in a liquidation scenario. An effective duration gap is the measure of the difference between the estimated effective durations of portfolio assets and liabilities and summarizes the extent to which the estimated cash flows for assets and liabilities are matched, on average, over time and across interest-rate scenarios.

A positive effective duration of equity or a positive effective duration gap results when the effective duration of assets is greater than the effective duration of liabilities. A negative effective duration of equity or a negative effective duration gap results when the effective duration of assets is less than the effective duration of liabilities. A positive effective duration of equity or a positive effective duration gap generally indicates that the Bank has some exposure to interest-rate risk in a rising rate environment, and a negative effective duration of equity or a negative effective duration gap generally indicates some exposure to interest-rate risk in a declining interest-rate environment. Higher effective duration numbers, whether positive or negative, indicate greater volatility of market value of equity in response to changing interest rates.

Bank policy requires the Bank to maintain its effective duration of equity within a range of plus five years to minus five years, assuming current interest rates, and within a range of plus seven years to minus seven years, assuming an instantaneous parallel increase or decrease in market interest rates of 200 basis points.

The following table presents the Bank’s effective duration exposure measurements as calculated in accordance with Bank policy (in years).

	As of December 31,
	2024			2023
	Down 200 Basis  Points	Base Case	Up 200 Basis  Points	Down 200 Basis  Points	Base Case	Up 200 Basis  Points
Assets	0.12	0.17	0.24	0.17	0.17	0.24
Liabilities	0.11	0.11	0.09	0.13	0.12	0.10
Equity	0.35	1.33	3.03	0.92	1.20	2.97
Effective duration gap	0.01	0.06	0.15	0.04	0.05	0.14

The Bank uses both sophisticated computer models and an experienced professional staff to measure the amount of interest-rate risk in the balance sheet, thus allowing management to monitor the risk against policy and regulatory limits. Management regularly reviews the major assumptions and methodologies used in the Bank’s models and will make adjustments to the Bank’s assumptions and methodologies in response to rapid changes in economic conditions.

The prepayment risk in both advances and investment assets can significantly affect the Bank’s effective duration of equity and effective duration gap. Current regulations require the Bank to mitigate advance prepayment risk by establishing prepayment fees that make the Bank financially indifferent to a borrower’s decision to prepay an advance unless the advance contains explicit par value prepayment options. Bank policy establishes these prepayment fees.

The prepayment options embedded in mortgage loan and mortgage security assets may shorten or lengthen both the actual and expected cash flows when interest rates change. Current Finance Agency policies limit this source of interest-rate risk by limiting the types of MBS the Bank may own to those with defined estimated average life changes under specific interest-rate shock scenarios. These limits do not apply to mortgage loans purchased from members. The Bank typically hedges mortgage prepayment uncertainty by using callable debt as a funding source and by using interest-rate cap, floor, and swaption transactions. The Bank also uses derivatives to reduce effective duration and option risks for investment securities other than MBS. Effective duration and option risk exposures are measured on a regular basis for all investment assets under alternative rate scenarios.

The Bank also analyzes its interest-rate risk and market exposure by evaluating the theoretical market value of equity. The market value of equity represents the net result of the present value of future cash flows discounted to arrive at the theoretical market value of each balance sheet item. By using the discounted present value of future cash flows, the Bank is able to factor in the various maturities of assets and liabilities, similar to the effective duration analysis discussed above. The Bank determines the theoretical market value of assets and liabilities utilizing a pricing approach that is more fully described in Note 14—Estimated Fair Values to the Bank’s 2024 audited financial statements. The difference between the market value of total assets and the market value of total liabilities is the market value of equity. A more volatile market value of equity under

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different shock scenarios tends to result in a higher effective duration of equity, indicating increased sensitivity to interest rate changes.

The following table presents the Bank’s market value of equity measurements as calculated in accordance with Bank policy (dollars in millions). 

	As of December 31,
	2024						2023
	Down 200 Basis  Points		Base Case		Up 200 Basis  Points		Down 200 Basis  Points (1)		Base Case		Up 200 Basis  Points
Assets	$	148,389	$	147,971	$	147,358	$	153,624	$	153,132	$	152,509
Liabilities	140,497		140,192		139,915		145,932		145,574		145,253
Equity	7,892		7,779		7,443		7,692		7,558		7,256

Under the Bank’s RMP, the Bank’s market value of equity must not decline by more than 15 percent, assuming an immediate, parallel, and sustained interest-rate shock of 200 basis points in either direction.

If effective duration of equity or market value of equity is approaching the boundaries of the Bank’s RMP ranges, management will initiate remedial action or review alternative strategies at the next meeting of the board of directors or appropriate committee thereof.

The scenarios above generally include numerous assumptions, including those related to changes in the balance sheet, interest rates, and prepayment trends. Such assumptions may change through time as a result of a host of factors, including changes in the balance sheet as well as the interest-rate environment. The modeling process is performed in a manner consistent with the Bank’s policies and procedures with results reviewed on an on-going basis by the Bank. While all of the above estimates are reflective of the general interest-rate sensitivity of the Bank, market conditions, the realized growth and remixing of the balance sheet, as well as the broader macroeconomic environment could all have a significant impact on the Bank’s assets, liabilities and equity.

Liquidity Risk

Liquidity risk is the risk that the Bank will be unable to meet its obligations as they come due or meet the credit needs of its members and borrowers in a timely and cost-efficient manner. The Bank’s objective is to meet operational and member liquidity needs under all reasonable economic and operational situations. The Bank uses liquidity to absorb fluctuations in asset and liability balances and to provide an adequate reservoir of funding to support attractive and stable advance pricing. The Bank meets its liquidity needs from both asset and liability sources.

To address liquidity risk, the Bank uses cash flow scenario analysis and maturity gap analysis in compliance with regulatory requirements to confirm that the Bank has sufficient liquidity reserves, as discussed in further detail in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources above.

Credit Risk

The Bank faces credit risk primarily with respect to its advances, investments, derivatives, and mortgage loan assets.

Advances

Secured advances to member financial institutions account for the largest category of Bank assets; thus, advances are a major source of the Bank’s credit risk exposure. The Bank uses a risk-focused approach to credit and collateral underwriting. The Bank attempts to reduce credit risk on advances by monitoring the financial condition of borrowers and the quality and value of the assets that borrowers pledge as eligible collateral.

The Bank determines credit risk rating for its members by evaluating each institution’s overall financial health, taking into account the quality of assets, earnings, liquidity, and capital position. The Bank assigns each borrower that is an insured depository institution a credit risk rating from 101 to 104 by utilizing an internal model (101 being the least amount of credit risk and 104 the greatest amount of credit risk). The Bank assigns each borrower that is an insurance company a credit risk rating from 101 to 104 by utilizing an external model. The Bank assigns each borrower that is not an insured depository institution or an insurance company (including housing associates, CDFIs, and corporate credit unions) a credit risk rating from 101 to 104 based on an internal risk matrix developed for each entity type.

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In general, borrowers with the greatest amount of credit risk may have more restrictions on the types of collateral they may use to secure advances, may be required to maintain higher collateral maintenance levels and deliver loan collateral, may be restricted from obtaining further advances, and may face more stringent collateral reporting requirements. At times, based upon the Bank’s assessment of a borrower and its collateral, the Bank may place more restrictive requirements on a borrower than those generally applicable to borrowers with the same rating. Management and the board also monitor the Bank’s concentration in secured credit and standby letters of credit exposure to individual borrowers.

The following table presents the number of borrowers and the par value of advances outstanding to borrowers with the specified ratings as of the specified dates (dollars in millions).

	As of December 31,
	2024			2023
Rating	Number of Borrowers	Par Value of Outstanding Advances		Number of Borrowers	Par Value of Outstanding Advances
101	275	$	67,495	323	$	84,969
102	57	17,703		51	11,577
103	16	1,076		14	318
104	2	34		3	84
Total	350	$	86,308	391	$	96,948

The Bank establishes a credit limit for each borrower. The credit limit is not a committed line of credit, but rather an indication of the borrower’s general borrowing capacity with the Bank. The Bank determines the credit limit in its sole and absolute discretion by evaluating a wide variety of factors that indicate the borrower’s overall creditworthiness. The credit limit is generally expressed as a percentage of the borrower’s total assets. Credit exposure is defined as the borrower’s total liabilities to the Bank, which includes the face amount of outstanding standby letters of credit, the par value of outstanding advances, and the total exposure of the Bank to the borrower under any derivative contract. Generally, borrowers are held to a credit limit of no more than 30 percent. However, the Bank’s board of directors may approve a higher limit at its discretion, and such borrowers may be subject to certain additional collateral reporting and maintenance requirements. Five borrowers have been approved for a credit limit higher than 30 percent, however, none of these borrowers exceeded the 30 percent credit limit as of December 31, 2024, and their total outstanding advance and standby letters of credit balance was $14.3 billion and $2 million, respectively, as of December 31, 2024.

The Bank obtains collateral on advances to protect against losses, but Finance Agency regulations permit the Bank to accept only certain types of collateral. Each borrower must maintain an amount of qualifying collateral that, when discounted to the lendable collateral value (LCV), is equal to at least 100 percent of the borrower’s outstanding par value of all advances and other liabilities from the Bank. The LCV is the value that the Bank assigns to each type of qualifying collateral for purposes of determining the amount of credit that such qualifying collateral will support. For each type of qualifying collateral, the Bank discounts the market value of the qualifying collateral to calculate the LCV. The Bank regularly reevaluates the appropriate level of discounting. The Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extension of credit as of December 31, 2024 and December 31, 2023. The following table presents information about the types of collateral held for the Bank’s advances (dollars in millions).

	Total Par Value of Outstanding  Advances		LCV of Collateral Pledged by Members		First Mortgage Collateral (%)	Securities Collateral (%)	Other Real Estate Related Collateral (%)
As of December 31, 2024	$	86,308	$	403,961	58.25	19.60	22.15
As of December 31, 2023	96,948		392,828		60.22	17.89	21.89

For purposes of determining each member’s LCV, the Bank estimates the current market value of all residential first mortgage loans, commercial real estate loans, home equity loans, and lines of credit pledged as collateral based on information provided by the member on its loan portfolio or on individual loans through the regular collateral reporting process. The estimated market value is discounted to account for the (1) price volatility of loans, (2) model data uncertainty, and (3) estimated liquidation and servicing costs in the event of the member’s default. Market values, and thus LCVs, change monthly. The use of this market-based valuation methodology allows the Bank to establish its collateral discounts with greater precision and to provide greater transparency with respect to the valuation of collateral pledged for advances and other credit products offered by the Bank.

The FHLBank Act affords any security interest granted to the Bank by any member of the Bank, or any affiliate of any such member, priority over the claims and rights of any party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), other than the claims and rights of a party that (1) would be entitled to priority under otherwise

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applicable law; and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with applicable state law. Most members provide the Bank with a blanket lien covering substantially all of the member’s real estate-related assets and their consent for the Bank to file a financing statement evidencing the blanket lien. The Bank requires delivery of cash and securities pledged to the Bank as collateral. Delivery of loan collateral is also required when pledged by insurance company, CDFI, or housing associate members. For most commercial bank and credit union members, delivery of loan collateral is not required. The Bank periodically works with commercial bank and credit union members to release collateral from the Bank’s lien to permit such members to pledge those assets to support borrowings, or potential borrowings, from the Federal Reserve Banks’ discount window.

In its history, the Bank has never experienced a credit loss on an advance. In consideration of this and the Bank’s policies and practices detailed above, the Bank has not established an allowance for credit losses on advances as of December 31, 2024 and 2023.

Investments

The Bank is subject to credit risk on investments consisting of investment securities, interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. These investments are generally transacted with government agencies and large financial institutions that are considered to be of investment quality. The Finance Agency defines investment quality as a security with adequate financial backing, so that full and timely payment of principal and interest on such security is expected, and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security.

In addition to Finance Agency regulations, the Bank has established guidelines approved by its board of directors regarding unsecured extensions of credit, with respect to term limits and eligible counterparties.

Finance Agency regulations prohibit the Bank from investing in any of the following securities:

•instruments, such as common stock, that represent an ownership interest in an entity, other than stock in small business investment companies, or certain investments targeted to low-income people or communities;

•instruments issued by non-U.S. entities, other than those issued by U.S. branches and agency offices of foreign commercial banks;

•debt instruments that are not of investment quality, other than certain investments targeted to low-income people or communities and instruments that the Bank determined became less than investment quality because of developments or events that occurred after purchase by the Bank;

•whole mortgages or other whole loans, other than the following: (1) those acquired under the Bank’s mortgage purchase programs; (2) certain investments targeted to low-income people or communities; (3) certain marketable direct obligations of state, local, or tribal government units or agencies that are of investment quality; (4) MBS or asset-backed securities that are backed by manufactured housing loans or home equity loans; and (5) certain foreign housing loans that are authorized under section 12(b) of the FHLBank Act;

•interest-only or principal-only stripped MBS, collateralized mortgage obligations (CMOs), collateralized debt obligations, and real estate mortgage investment conduits (REMICs);

•residual-interest or interest-accrual classes of CMOs and REMICs;

•fixed-rate or variable-rate MBS, CMOs, and REMICs that are at rates equal to their contractual cap on the trade date and that have average lives that vary by more than six years under an assumed instantaneous interest-rate change of 300 basis points; and

•non-U.S. dollar denominated securities.

Finance Agency regulations do not permit the Bank to rely exclusively on Nationally Recognized Statistical Rating Organization (NRSRO) ratings with respect to its investments. The Bank is required to make a determination of whether a security is of investment quality based on its own documented analysis, which includes the NRSRO rating as one of the factors that is assessed to determine investment quality. The Bank monitors the financial condition of investment counterparties to ensure that they are in compliance with the Bank’s RMP and Finance Agency regulations. Unsecured credit exposure to any counterparty is limited by the credit quality and capital of the counterparty and by the capital of the Bank. On a regular basis, management produces financial monitoring reports detailing the financial condition of the Bank’s counterparties. These reports

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are reviewed by the Bank’s board of directors. In addition to the Bank’s RMP and regulatory requirements, the Bank may limit or suspend overnight and term trading. Limiting or suspending counterparties limits the pool of available counterparties, shifts the geographical distribution of counterparty exposure, and may reduce the Bank’s overall investment opportunities.

The Bank only enters into investments with U.S. counterparties or U.S. branch offices of foreign banks that have been approved by the Bank through its internal approval process, but the Bank may still have exposure to foreign entities if a counterparty’s parent entity is located in another country. The following tables present the Bank’s gross exposure, by instrument type, according to the location of the parent company of the counterparty (dollars in millions).

 

	As of December 31, 2024
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure  (1)		Total
Australia	$	900	$	—	$	—	$	900
Canada	1,200		—		—		1,200
Finland	1,498		—		—		1,498
France	550		—		—		550
Germany	1,325		—		—		1,325
Japan	—		—		12		12
Netherlands	150		—		—		150
Sweden	200		—		—		200
United States of America	1,335		1,493		5		2,833
Total	$	7,158	$	1,493	$	17	$	8,668

	As of December 31, 2023
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure (1)		Total
Australia	$	900	$	—	$	—	$	900
Canada	3,085		—		—		3,085
Finland	800		—		—		800
France	500		—		—		500
Germany	750		—		—		750
United Kingdom	500		—		—		500
United States of America	2,175		1,833		8		4,016
Total	$	8,710	$	1,833	$	8	$	10,551

____________

(1) Amounts do not reflect collateral; see the table under Risk Management–Credit Risk–Derivatives below for a breakdown of the credit ratings of and the Bank’s credit exposure to derivative counterparties, including net exposure after collateral.

The Bank experienced a decrease in unsecured credit exposure in its investment portfolio related to non-U.S. government and non-U.S. government agency counterparties to $8.6 billion as of December 31, 2024 from $10.5 billion as of December 31, 2023. As of December 31, 2024, Australia & New Zealand Banking Grp (Australia), Landesbank Baden-Wuerttemberg (Germany), Nordea Bank Abp (Finland), Northern Trust Company (United States), and Toronto Dominion Bank (Canada) each presented greater than 10.0 percent and collectively represented 69.1 percent of the total unsecured credit exposure to non-U.S. government or non-U.S. government agency counterparties. As of December 31, 2024, total unsecured credit portfolio consisted primarily of federal funds sold with overnight maturities.

The Bank’s RMP permits the Bank to invest in U.S. government or any U.S. government agency (i.e., Fannie Mae, Freddie Mac and Ginnie Mae) obligations including the following: (1) CMOs and REMICS that are backed by U.S. agencies; and (2) other MBS, CMOs, and REMICS that are of sufficient investment quality, which typically have the highest ratings issued by S&P or Moody’s at the time of purchase. In addition to NRSRO ratings, the Bank considers a variety of credit quality factors when analyzing potential investments, such as collateral performance, marketability, asset class considerations, local and regional economic conditions, and the financial health of the underlying issuer.

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The following table presents information on the credit ratings of the Bank’s investments held as of December 31, 2024 (dollars in millions), based on their credit ratings as of December 31, 2024. The credit ratings reflect the lowest long-term credit ratings as reported by an NRSRO.

	As of December 31, 2024
	Investment Grade
	AAA		AA		A		BBB		Total
Investment securities:
State or local housing agency debt obligations	$	—	$	1	$	—	$	—	$	1
Government-sponsored enterprises debt obligations	—		795		—		—		795
U.S. Treasury obligations	—		4,063		—		—		4,063
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	—		2,010		—		—		2,010
Government-sponsored enterprises residential	—		8,420		—		—		8,420
Government-sponsored enterprises commercial	492		14,452		—		—		14,944
Total mortgage-backed securities	492		24,882		—		—		25,374
Total investment securities	492		29,741		—		—		30,233
Other investments:
Interest-bearing deposits	—		603		890		—		1,493
Securities purchased under agreements to resell	—		19,200		1,000		1,000		21,200
Federal funds sold	—		3,923		3,150		85		7,158
Total other investments	—		23,726		5,040		1,085		29,851
Total carrying value	$	492	$	53,467	$	5,040	$	1,085	$	60,084

Securities Purchased Under Agreements to Resell

Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans transacted with counterparties that the Bank considers to be of investment quality. The terms of these loans are structured such that if the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings.

Available-for-sale Securities

Available-for-sale securities are evaluated at the individual security level for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. In the case of U.S. obligations, they carry an explicit U.S. government guarantee and GSE securities are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs. Thus, the Bank considers the risk of nonpayment to be zero. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded as net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss). The Bank has not established an allowance for credit loss on any of its available-for-sale securities as of December 31, 2024.

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Held-to-maturity Securities

Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense). The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately.

The Bank evaluates its 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. The Bank has not established an allowance for credit loss on any of its held-to-maturity securities as of December 31, 2024 because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee such that the Bank considers the risk of nonpayment to be zero, and (4) in the case of GSE securities, they are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Derivatives

The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions. The amount of credit risk on derivatives depends on the extent to which netting procedures, collateral requirements, and other credit enhancements are used and are effective in mitigating the risk. The Bank manages credit risk through credit analysis, collateral management, and other credit enhancements. The Bank is also required to follow the requirements set forth by applicable regulations.

The Bank’s over-the-counter derivative transactions may either be (1) uncleared derivatives, which are executed bilaterally with a counterparty; or (2) cleared derivatives, which are cleared through a clearing agent with a Clearinghouse. Once a derivative transaction has been accepted for clearing by a Clearinghouse, the derivative transaction is novated, and the executing counterparty is replaced with the Clearinghouse as the counterparty.

For uncleared derivatives, the Bank is subject to nonperformance by counterparties. The Bank generally requires collateral on uncleared derivative transactions. A counterparty must deliver collateral to the Bank if the total market value of the Bank’s exposure to that counterparty rises above a specific trigger point. As a result of these risk mitigation initiatives, the Bank does not anticipate any credit losses on its uncleared derivatives as of December 31, 2024.

If the counterparty has an NRSRO rating, the net exposure after collateral is treated as unsecured credit, consistent with the Bank’s RMP and Finance Agency regulations. If the counterparty does not have an NRSRO rating, the Bank requires collateral for the full amount of the exposure.

For cleared derivatives, the Bank is subject to credit risk due to nonperformance by the Clearinghouse and clearing agent. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk in the event that the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives mitigates credit risk exposure because a central counterparty is substituted for individual counterparties, and collateral is posted daily for changes in the value of cleared derivatives through a clearing agent. This does introduce, however, a risk of concentration among the limited number of Clearinghouses and clearing agents. The Bank actively monitors Clearinghouses and clearing agents. An annual review of the Bank’s Clearinghouses is performed, and the Bank also monitors its exposure to Clearinghouses on a monthly basis. The Bank currently utilized two approved Clearinghouses, CME Clearing and LCH Ltd. The Bank also monitors the clearing agents through its unsecured credit system, and the Bank subjects these clearing agents to the same limits as other bilateral derivative counterparties. The parent companies of the clearing agents are monitored through annual reviews, as well as through the Bank’s daily monitoring tools, which include reviewing equity triggers, debt triggers, and credit default swap spread triggers. In addition, exposures to the clearing agents are monitored daily on a swap counterparty report. The Bank currently has two approved clearing agents, Morgan Stanley & Co. LLC and Goldman Sachs & Co. The Bank does not anticipate any credit losses on its cleared derivatives as of December 31, 2024.

The contractual or notional amount of derivative transactions reflects the involvement of the Bank in the various classes of financial instruments; however, the Bank’s maximum credit risk with respect to derivative transactions, is the estimated cost of replacing the derivative transactions if there is default, less the value of any related collateral, including initial and variation margin. In determining maximum credit risk, the Bank considers accrued interest receivables and payables, as well as the netting requirements to net assets and liabilities.

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The following tables present information on the credit ratings of, and the Bank’s credit exposure to, its derivative counterparties (dollars in millions). The credit ratings reflect the lowest long-term credit rating by an NRSRO.

	As of December 31, 2024
	Notional Amount		Net Derivatives Fair Value Before Collateral		Cash Collateral Pledged To (From) Counterparty		Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	$	9,351	$	12	$	(6)	$	6
Cleared derivatives	50,964		5		432		437
Liability positions with credit exposure:
Single-A	7,746		(114)		115		1
Triple-B	7,868		(252)		253		1
Total derivative positions with non-member counterparties to which the Bank had credit exposure	75,929		(349)		794		445
Member institutions (1)	10		—		—		—
Total	$	75,939	$	(349)	$	794	$	445

	As of December 31, 2023
	Notional Amount		Net Derivatives Fair Value Before Collateral		Cash Collateral Pledged To (From) Counterparty		Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	255		3		(3)		—
Cleared derivatives	35,269		5		508		513
Liability positions with credit exposure:
Single-A	39,344		(658)		662		4
Triple-B	13,517		(359)		365		6
Cleared derivatives	54		—		—		—
Total derivative positions with non-member counterparties to which the Bank had credit exposure	88,439		(1,009)		1,532		523
Member institutions (1)	11		—		—		—
Total	$	88,450	$	(1,009)	$	1,532	$	523

____________

(1) Collateral held with respect to derivatives with member institutions when the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank.

Mortgage Loan Programs

The Bank seeks to manage the credit risk associated with the MPP and the MPF Program by maintaining underwriting and eligibility standards and structuring possible losses into several layers to be shared with the PFIs.

Mortgage loans purchased under the MPP and MPF Program must comply with the underwriting and eligibility standards set forth in applicable MPP guidelines or MPF Program guidelines. In both MPP and MPF Program, the Bank and PFIs share the risk of losses on mortgage loans by structuring potential losses on conventional mortgage loans into layers with respect to each master commitment and in compliance with the applicable regulations governing the purchase of mortgage loans by the Bank.

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The following table presents the Bank’s credit ratios for mortgage loans held for portfolio, along with each component of the ratio’s calculation (dollars in millions):

	As of December 31,
	2024		2023
Average mortgage loans held for portfolio outstanding during the year (1)	$	96	$	111
Mortgage loans held for portfolio (1)	$	89	$	103
Nonaccrual loans (1)	$	2	$	2
Allowance for credit losses on mortgage loans held for portfolio	$	—	$	—
Net charge-offs	$	—	$	—
Ratios (%)
Net charge-offs to average mortgage loans held for portfolio outstanding during the year	—		0.07
Allowance for credit losses to mortgage loans held for portfolio	—		0.02
Nonaccrual loans to mortgage loans held for portfolio	2.08		1.98
Allowance for credit losses to nonaccrual loans	—		0.97

____________

(1) Represents unpaid principal balance.

Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events. Operational risk for the Bank also includes reputation and legal risks associated with business practices or market conduct that the Bank may undertake. Operational risk inherently is greatest where transaction processes include numerous processing steps, require greater subjectivity, or are non-routine. The Bank operates in a complex business environment and is subject to numerous regulatory requirements.

The Bank identifies risk through daily operational monitoring, independent reviews, and the strategic planning and risk assessment programs that both consider the operational risk ramifications of the Bank’s business strategies and environment. The Bank has established comprehensive financial and operating policies and procedures to mitigate the likelihood of loss resulting from the identified operational risks. In addition, the Bank’s Operational Risk Committee is responsible for overseeing the Bank’s risk management policies, procedures, strategies, and activities related to operational risks, including overseeing the monitoring process and review of risk assessments. This oversight also includes compliance risk and reputational risk. The Bank effects related changes in processes, information systems, lines of communication, and other internal controls as deemed appropriate in response to identified or anticipated increases in operational risk.

The board of directors, through EROC, oversees enterprise risk management, operations, information technology, and other related matters. In addition, the Bank’s internal Enterprise Risk Committee (ERC) is responsible for the management and oversight of the Bank’s risk management programs and practices. Additionally, the Bank’s Internal Audit department, which reports directly to the Audit Committee of the Bank’s board of directors, regularly tests compliance with the policies and procedures related to managing operational risks.

Cyber-Related Risks. The efficiencies offered by information technology (IT) are necessary components of Bank operations. The IT architecture supports multiple operating systems, database structures, and virtualized servers to support business applications that are a mixture of vendor-licensed and in-house developed. Cyber-attacks are increasing globally across all business sectors and cyber attackers are finding more ways to penetrate organizations’ systems. Cybersecurity threats can result in damage to the Bank’s physical facilities, technology systems, and/or the Bank’s intangible assets. Successful attacks can have a financial, legal, and reputational impact on the Bank as well as disrupt the Bank’s ability to serve its members.

The Bank’s board of directors, through EROC, oversees the major dimensions of the Bank’s information technology program including management of information systems through specialized management committees and other policies and procedures to ensure alignment with the Bank’s strategic plan, risk management activities, and operational performance standards, as discussed in further detail in Item 1C. Cybersecurity.

63

Business Risk

Business risk is the risk of an adverse effect on the Bank’s profitability resulting from external factors that may occur in both the short- and the long-term. Business risk includes political, strategic, reputation, and regulatory events that are beyond the Bank’s control. In particular, during 2024 and continuing into 2025, the Bank faces business risk, which may include changes in:

•the overall economy;

•the financial services industry or the Bank’s competitive environment; and

•legislation, regulation, or congressional scrutiny affecting the Bank or its members.

For discussion of the Bank’s competition for advances, see Item 1. Business—Competition above. For discussion of recent regulatory activity that may have a material impact on the Bank’s operations, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Legislative and Regulatory Developments. The Bank attempts to mitigate these risks through long-term strategic planning and through continually monitoring economic indicators and the external environment.

Cyclicality and Seasonality

The Bank’s business and the demand for advances from the Bank are generally not subject to the effects of cyclical or seasonal variations, although the Bank’s advance demand may vary based upon fluctuations of its members’ consumer credit liquidity needs.

Effects of Inflation

The majority of the Bank’s assets and liabilities are, and will continue to be, monetary in nature. Although interest rates do not necessarily move in the same direction, or to the same extent, as the prices of goods and services, higher rates of inflation generally result in corresponding increases in interest rates. Inflation, coupled with increasing interest rates, generally has the following effects on the Bank:

•the cost of the Bank’s funds and operating overhead increases;

•the yield on variable-rate assets held by the Bank increases;

•the fair value of fixed-rate investments and mortgage loans held in portfolio decreases; and

•mortgage loan prepayment rates decrease and result in lower levels of mortgage loan refinance activity, which may result in the reduction of Bank advances to members as increased rates tend to slow home sales.

Conversely, lower rates of inflation or deflation have the opposite effects of the above on the Bank and its holdings.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

A discussion of the Bank’s market risk is contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Market Risk.

64

Item 8. Financial Statements and Supplementary Data.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of the

Federal Home Loan Bank of Atlanta

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying statements of condition of the Federal Home Loan Bank of Atlanta (the "FHLBank") as of December 31, 2024 and 2023, and the related statements of income, of comprehensive income, of capital and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "financial statements"). We also have audited the FHLBank’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the FHLBank as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the FHLBank maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The FHLBank’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the FHLBank’s financial statements and on the FHLBank’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the FHLBank in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

65

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Interest-Rate Related Derivatives and Hedged Items

As described in Notes 13 and 14 to the financial statements, the FHLBank uses derivatives to reduce funding costs and to manage its exposure to interest-rate risks, among other objectives. The total notional amount of derivatives as of December 31, 2024 was $101 billion, of which 99.94% were designated as hedging instruments, and the fair value of derivative assets and liabilities as of December 31, 2024 was $445 million and $12 million, respectively. The fair values of interest-rate related derivatives and hedged items are calculated using a discounted cash flow analysis, which utilizes market-observable inputs. The significant assumptions used in the model include discount rates, market indices, and market volatility. The principal considerations for our determination that performing procedures relating to the valuation of interest-rate related derivatives and hedged items is a critical audit matter are the significant audit effort in evaluating the discount rates, market indices, and market volatility assumptions used to fair value these derivatives and hedged items, and the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to the valuation of interest-rate related derivatives and hedged items, including controls over the model, data and assumptions. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in developing an independent range of prices for a sample of interest-rate related derivatives and hedged items and comparison of management’s estimate to the independently developed ranges. Developing the independent range of prices involved testing the completeness and accuracy of data provided by management and independently developing the discount rates, market indices, and market volatility assumptions.

/s/PricewaterhouseCoopers LLP

Atlanta, Georgia

March 7, 2025

We have served as the FHLBank’s auditor since 1990.

66

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CONDITION

(Dollars in millions, except par value)

	As of December 31,
	2024		2023
Assets
Cash and due from banks	$	35	$	142
Interest-bearing deposits (including deposits with other FHLBanks of $3 as of December 31, 2024 and 2023)	1,493		1,833
Securities purchased under agreements to resell	21,200		12,500
Federal funds sold	7,158		8,710
Investment securities:
Available-for-sale securities (amortized cost of $4,791 and $2,455 as of December 31, 2024 and 2023, respectively)	4,790		2,450
Held-to-maturity securities (fair value of $25,140 and $28,335 as of December 31, 2024 and 2023, respectively)	25,443		28,714
Total investment securities	30,233		31,164
Advances	85,829		96,608
Mortgage loans held for portfolio, net	89		103
Accrued interest receivable	490		673
Derivative assets	445		523
Other assets, net	119		114
Total assets	$	147,091	$	152,370
Liabilities
Interest-bearing deposits	$	2,312	$	1,568
Consolidated obligations, net:
Discount notes	32,152		25,972
Bonds	103,699		115,600
Total consolidated obligations, net	135,851		141,572
Mandatorily redeemable capital stock	1		—
Accrued interest payable	721		902
Affordable Housing Program payable	157		108
Derivative liabilities	12		5
Other liabilities	104		99
Total liabilities	139,158		144,254
Commitments and contingencies (Note 15)
Capital
Capital stock Class B putable ($100 par value) issued and outstanding shares:
Subclass B1 issued and outstanding shares: 10,435,821 and 9,908,193 as of December 31, 2024 and 2023, respectively	1,043		991
Subclass B2 issued and outstanding shares: 40,858,424 and 45,897,094 as of December 31, 2024 and 2023, respectively	4,086		4,590
Subclass B3 issued and outstanding shares: 189,559 and 159,192 as of December 31, 2024 and 2023, respectively	19		16
Total capital stock Class B putable	5,148		5,597
Retained earnings:
Restricted	920		781
Unrestricted	1,865		1,743
Total retained earnings	2,785		2,524
Accumulated other comprehensive loss	—		(5)
Total capital	7,933		8,116
Total liabilities and capital	$	147,091	$	152,370

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

67

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF INCOME

(Dollars in millions)

	For the Years Ended December 31,
	2024		2023		2022
Interest income
Advances	$	5,467	$	6,681	$	1,748
Interest-bearing deposits	168		222		62
Securities purchased under agreements to resell	324		347		143
Federal funds sold	686		717		173
Available-for-sale securities	179		79		26
Held-to-maturity securities	1,524		1,354		351
Mortgage loans	5		6		7
Loans to other FHLBanks	—		—		1
Total interest income	8,353		9,406		2,511
Interest expense
Consolidated obligations:
Discount notes	1,210		1,798		805
Bonds	6,076		6,617		1,345
Interest-bearing deposits	101		102		34
Total interest expense	7,387		8,517		2,184
Net interest income	966		889		327
Noninterest income (loss)
Net gains (losses) on derivatives	1		(4)		2
Standby letters of credit fees	17		10		8
Gain on litigation settlements, net	—		—		4
Other, net	5		(1)		2
Total noninterest income	23		5		16
Noninterest expense
Compensation and benefits	85		80		65
Other operating expenses	55		51		47
Finance Agency	13		13		10
Office of Finance	9		8		8
Voluntary housing and community investment	49		19		5
Other, net	4		2		3
Total noninterest expense	215		173		138
Income before assessment	774		721		205
Affordable Housing Program assessment	77		72		21
Net income	$	697	$	649	$	184

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

68

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions)

	For the Years Ended December 31,
	2024		2023		2022
Net income	$	697	$	649	$	184
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	4		29		(25)
Pension and postretirement benefits	1		—		7
Total other comprehensive income (loss)	5		29		(18)
Total comprehensive income	$	702	$	678	$	166

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

69

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CAPITAL

(Dollars and shares in millions)

	Capital Stock Class B Putable			Retained Earnings						Accumulated Other Comprehensive Income (Loss)		Total Capital
	Shares	Par Value		Restricted		Unrestricted		Total
Balance, December 31, 2021	24	$	2,383	$	615	$	1,613	$	2,228	$	(16)	$	4,595
Issuance of capital stock	94	9,420		—		—		—		—		9,420
Repurchase/redemption of capital stock	(64)	(6,367)		—		—		—		—		(6,367)
Net stock reclassified to mandatorily redeemable capital stock	—	(39)		—		—		—		—		(39)
Comprehensive income (loss)	—	—		36		148		184		(18)		166
Cash dividends on capital stock	—	—		—		(129)		(129)		—		(129)
Balance, December 31, 2022	54	5,397		651		1,632		2,283		(34)		7,646
Issuance of capital stock	125	12,477		—		—		—		—		12,477
Repurchase/redemption of capital stock	(123)	(12,274)		—		—		—		—		(12,274)
Net stock reclassified to mandatorily redeemable capital stock	—	(3)		—		—		—		—		(3)
Comprehensive income	—	—		130		519		649		29		678
Cash dividends on capital stock	—	—		—		(408)		(408)		—		(408)
Balance, December 31, 2023	56	5,597		781		1,743		2,524		(5)		8,116
Issuance of capital stock	88	8,790		—		—		—		—		8,790
Repurchase/redemption of capital stock	(93)	(9,238)		—		—		—		—		(9,238)
Net stock reclassified to mandatorily redeemable capital stock	—	(1)		—		—		—		—		(1)
Comprehensive income	—	—		139		558		697		5		702
Cash dividends on capital stock	—	—		—		(436)		(436)		—		(436)
Balance, December 31, 2024	51	$	5,148	$	920	$	1,865	$	2,785	$	—	$	7,933

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

70

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CASH FLOWS

(Dollars in millions)

	For the Years Ended December 31,
	2024		2023		2022
Operating activities
Net income	$	697	$	649	$	184
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization (accretion)	(58)		(10)		266
Net change in derivative and hedging activities	132		(470)		1,066
Net change in:
Accrued interest receivable	189		(196)		(429)
Other assets	(6)		(6)		(5)
Affordable Housing Program payable	49		48		(3)
Accrued interest payable	(182)		421		409
Other liabilities	5		19		(1)
Total adjustments	129		(194)		1,303
Net cash provided by operating activities	826		455		1,487
Investing activities
Net change in:
Interest-bearing deposits	1,210		237		(2,533)
Securities purchased under agreements to resell	(8,700)		(6,250)		750
Federal funds sold	1,552		(674)		(1,616)
Available-for-sale securities:
Purchases of long-term	(2,337)		(2,284)		(98)
Proceeds from maturities and paydowns	—		2,650		—
Held-to-maturity securities:
Purchases of long-term	(1,450)		(8,514)		(11,150)
Proceeds from maturities and paydowns	4,727		2,429		3,431
Advances, net	10,633		13,347		(65,463)
Mortgage loans:
Proceeds from principal collected	13		17		29
Purchases of premises, equipment, and software	(8)		(8)		(14)
Net cash provided by (used in) investing activities	5,640		950		(76,664)

71

FEDERAL HOME LOAN BANK OF ATLANTA STATEMENTS OF CASH FLOWS—(Continued) (Dollars in millions)
	For the Years Ended December 31,
	2024		2023		2022
Financing activities
Net change in interest-bearing deposits	762		(237)		(233)
Net payments on derivatives containing a financing element	—		—		(4)
Proceeds from issuance of consolidated obligations:
Discount notes	237,402		227,126		785,489
Discount notes transferred from other FHLBanks	6		—		—
Bonds	160,855		186,086		90,873
Payments for debt issuance costs	(6)		(8)		(6)
Payments for maturing and retiring consolidated obligations:
Discount notes	(231,211)		(229,776)		(771,446)
Discount notes transferred to other FHLBanks	(2)		(11,158)		—
Bonds	(173,494)		(172,979)		(33,118)
Bonds transferred to other FHLBank	—		(250)		—
Proceeds from issuance of capital stock	8,790		12,477		9,420
Payments for repurchase/redemption of capital stock	(9,238)		(12,274)		(6,367)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(1)		(3)		(40)
Cash dividends paid	(436)		(408)		(129)
Net cash (used in) provided by financing activities	(6,573)		(1,404)		74,439
Net (decrease) increase in cash and due from banks	(107)		1		(738)
Cash and due from banks at beginning of the year	142		141		879
Cash and due from banks at end of the year	$	35	$	142	$	141
Supplemental disclosures of cash flow information:
Cash paid for:
Interest	$	7,109	$	7,642	$	1,516
Affordable Housing Program assessments, net	$	51	$	34	$	28
Noncash investing and financing activities:
Net stock reclassified to mandatorily redeemable capital stock	$	1	$	3	$	39

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

72

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Note 1—Nature of Operations

The Federal Home Loan Bank of Atlanta (Bank) is a federally chartered corporation and is one of 11 district Federal Home Loan Banks (FHLBanks). Each FHLBank operates as a separate entity within a defined geographic district and has its own management, employees, and board of directors. The Bank’s defined geographic district includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The FHLBanks are government-sponsored enterprises (GSEs) that were organized under the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), to serve the public by enhancing the availability of credit for residential mortgages and targeted community developments. The primary function of the Bank is to provide readily available, competitively priced funding to its member institutions.

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock are entitled to receive dividends on their capital stock, to the extent declared by the Bank’s board of directors.

Federally-insured depository institutions, insurance companies, privately-insured state-chartered credit unions, and community development financial institutions that are located in the Bank’s defined geographic district and engaged in residential housing finance are eligible to apply for membership. All members must purchase and hold capital stock of the Bank. A member’s stock requirement is based on the amount of its total assets, as well as the amount of certain of its business activities with the Bank. Housing associates (including state and local housing authorities) that meet certain statutory criteria may also borrow from the Bank. While they are eligible to borrow, housing associates are not members of the Bank and are not allowed to hold capital stock. The Bank does not sponsor any special purpose entities or any other types of off-balance sheet conduits.

The Bank operates one reportable segment that makes advances (loans) to and provides other limited financial services to its members to meet the housing, business, and economic development needs of the communities they serve, in accordance with its housing finance and community development mission. In addition, the Bank maintains a portfolio of investments. The primary source of funding and liquidity is the issuance of consolidated obligations in the capital markets. The Bank is capitalized through the purchase of capital stock by its members. The Bank manages risk and monitors financial performance across the entire balance sheet. Descriptions of all significant accounting policies related to the Bank’s activities are included in “Item 8. Financial Statements and Supplementary Data – Note 2 – Summary of Significant Accounting Policies” in the 2024 Form 10-K. The president and chief executive officer is the chief operating decision maker (CODM).

Net interest income and net income before assessment, which are reported on the statements of income, are the primary performance metrics used by the CODM in that they are a consideration in the return of capital to the Bank’s members in the form of dividends, they are used to determine the annual commitment to the Bank’s Affordable Housing and Community Investment programs, and used as a measure of product utilization. These performance measures are also used for benchmarking and budget analysis. The CODM also reviews significant expenses, including those that are presented in the Statements of Income. All financial segment information required by the authoritative accounting guidance, including the primary performance metrics used by the CODM, can be found in the Statements of Income and Statements of Condition.

The Bank’s major customers include members with revenue in excess of 10 percent of the Bank’s total revenue, which includes interest income and noninterest income. The Bank had two major customers with total revenue of $2,465, $3,120, and $513 for the years ended December 31, 2024, 2023, and 2022, respectively.

The Federal Housing Finance Agency (Finance Agency), an independent agency in the executive branch of the U.S. government, supervises and regulates the FHLBanks and is responsible for ensuring that the FHLBanks (1) operate in a safe and sound manner, including that they maintain adequate capital and internal controls; (2) foster liquid, efficient, competitive, and resilient national housing finance markets through their operations and activities; (3) comply with applicable laws and regulations; and (4) carry out their housing finance mission through authorized activities that are consistent with the public interest. The Finance Agency also establishes policies and regulations covering the operations of the FHLBanks.

The Federal Home Loan Banks Office of Finance (Office of Finance), a joint office of the FHLBanks, facilitates the issuance and servicing of the FHLBanks’ debt instruments, known as consolidated obligations, and prepares the combined quarterly and annual financial reports of the FHLBanks. As provided by the FHLBank Act and applicable regulations, the Bank’s consolidated obligations are backed only by the financial resources of the FHLBanks. Consolidated obligations are the primary

73

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

source of funds for the Bank in addition to deposits, other borrowings, and capital stock issued to members. The Bank primarily uses these funds to provide advances to members. The Bank also provides members and non-members with correspondent banking services, such as safekeeping, wire transfer, and cash management services.

Note 2—Summary of Significant Accounting Policies

Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank’s management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could differ significantly from these estimates.

Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank’s best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates.

Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented.

The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 13—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented.

Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. Interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold provide liquidity and are carried at amortized cost. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO) including the following: Standard and Poor’s (S&P), Moody’s Investors Service (Moody’s), and Fitch Ratings. All of these investments were with counterparties rated investment grade as of December 31, 2024 and 2023. These investments are evaluated at least quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank uses the collateral maintenance provision practical expedient to evaluate potential credit losses related to securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly 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 equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2024 and 2023. The carrying value of securities purchased under agreements excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

74

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Federal funds sold are unsecured loans that are generally transacted on an overnight term. All investments in interest-bearing deposits and federal funds sold were repaid or expected to be repaid according to the contractual terms as of December 31, 2024 and 2023. No allowance for credit losses was recorded for these assets as of December 31, 2024 and 2023. The carrying values of interest-bearing deposits and federal funds sold excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

Investments in Debt Securities. The Bank classifies investment securities as trading, available-for-sale, or held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis.

The Bank classifies certain investments in debt securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank’s liquidity position. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net (losses) gains on investment securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not have any investment securities classified as trading as of December 31, 2024 and 2023.

The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these securities not in qualifying fair value hedging relationships in other comprehensive income (loss).

For available-for-sale securities in hedging relationships that qualify as fair value hedges, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income on available-for-sale securities together with the related change in fair value of the derivative, and records the remainder of the change in the fair value of the investment in other comprehensive income (loss) as net unrealized gains (losses) on available-for-sale securities.

For investments in debt securities classified as available-for-sale, the Bank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded as net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss).

For improvements in impaired available-for-sale securities with an allowance for credit losses, the allowance for credit losses associated with recoveries may be derecognized up to its full amount.

The Bank has not established an allowance for credit losses on its available-for-sale securities as of December 31, 2024 and 2023 because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Investments in debt securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and carried at amortized cost, which is original cost net of periodic principal repayments and amortization of premiums and

75

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior.

Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense). The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately.

The Bank’s held-to-maturity securities consist of GSE debt obligations, state or local housing agency debt obligations, and mortgage-backed securities (MBS) issued by the Government National Mortgage Association (Ginnie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae) that are backed by single-family or multifamily mortgage loans. The Bank only purchases securities considered investment quality. All of these securities were rated double-A, or above, by a NRSRO as of December 31, 2024 and 2023, based on the lowest long-term credit rating for each security.

The Bank has not established an allowance for credit loss on any of its held-to-maturity securities as of December 31, 2024 and 2023, because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Advances. The Bank reports advances (secured loans to members, former members, or housing associates) at amortized cost. Amortized cost is original cost net of periodic principal repayments and amortization of premiums and accretion of discounts (including discounts related to the Affordable Housing Program (AHP) and Community Investment Cash Advance program), net deferred fees or costs, and fair value hedge adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Accrued interest receivable is recorded separately on the Statements of Condition.

Advances are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank manages its credit exposure to advances through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower’s financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower’s needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated fair value of the collateral required to secure each borrower’s advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank’s capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank’s overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances.

Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien

76

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law.

The Bank considers each borrower’s payment status, as well as financial strength and creditworthiness to be the primary indicators of credit quality on its advances. The Bank also had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2024 and 2023.

The Bank continues to evaluate and make changes to its credit and collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2024 and 2023. In addition, there were no modifications related to advances with borrowers experiencing financial difficulties during the year ended December 31, 2024.

Based upon the Bank’s credit analysis, credit and collateral policies, collateral held as security, and the repayment history on advances, the Bank did not expect any credit losses on advances as of December 31, 2024 and 2023. Accordingly, the Bank has not recorded any allowance for credit losses on advances as of December 31, 2024 and 2023.

Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as part of the advances line item in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the terms of the modified advance are at least as favorable to the lender as the terms offered to borrowers with similar collection risks for comparable advances and the modification to the terms of the advance is more than minor, the advance meets the accounting criteria for a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as prepayment fees on advances, which is included in the advances line item in the interest income section of the Statements of Income.

Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. These mortgage loans are reported at amortized cost, which is original cost, net of periodic principal repayments and amortization of premiums and accretion of discounts, fair value hedge adjustments on loans initially classified as mortgage loan commitments, and direct write-downs. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs at least quarterly an assessment of its mortgage loans held for portfolio to estimate expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method.

A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status if it is determined that either (1) the collection of interest or principal is doubtful or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancement) and in the process of collection. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal, or (2) it otherwise becomes well secured and in the process of collection. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of (1) the U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met.

77

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Finance Agency regulations require that mortgage loans held in the Bank’s portfolios be credit enhanced. For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses.

At least quarterly, the Bank performs an assessment of its mortgage loans held for portfolio to estimate expected credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. If a loan was purchased at a discount, the discount does not offset the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status.

The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. The servicer provides and maintains insurance or a guarantee from the applicable government agency. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees, but in such instance, the Bank would have recourse against the servicer for such failure. Based on the Bank’s assessment of its servicers and the collateral backing these loans, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2024 and 2023.

R

Derivatives and Hedging Activities. All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with a derivative are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative.

Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify as, a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk (including changes that reflect losses or gains on firm commitments), are recorded in net interest income in the same line as the earnings effect of the hedged item. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank’s risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income.

The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank’s results of operations.

The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables

78

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains (losses) on derivatives” on the Statements of Income.

The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be highly effective in offsetting changes in the fair value of a hedged risk, including hedged items such as firm commitments; (2) the derivative and/or the hedged item expires or is sold, terminated, or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) the bank determines that designating the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued due to the Bank’s determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative, or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings.

The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to a non-qualifying hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current-period earnings (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument.

Premises, Equipment, and Software. Premises, equipment, and the cost of purchased software and certain costs incurred in developing computer software for internal use are recorded in “Other assets” on the Statements of Condition. The Bank records these items at cost, less accumulated depreciation or amortization. The Bank computes depreciation and amortization using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware—three; capitalized computer software cost—three; office equipment—eight; office furniture and building improvements—10; and building—40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Premises, equipment, and capital computer software cost and related depreciation and amortization expense were not material to the Bank’s financial condition and results of operations for the reported periods.

Deposits. The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds. The Bank records these items in “Interest-bearing deposits” on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate.

Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation.

79

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a merger or acquisition, charter termination, or involuntary termination from membership since the member’s shares will then meet the definition of a mandatorily redeemable financial instrument. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows.

If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense.

Off-Balance Sheet Credit Exposures. The Bank evaluates its off-balance sheet credit exposure on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that result in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account the quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral that they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on the Statements of Condition for these commitments as of December 31, 2024 or 2023.

Restricted Retained Earnings. The Joint Capital Enhancement Agreement, as amended (Capital Agreement), provides that each FHLBank will, on a quarterly basis, allocate 20 percent of its net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of that FHLBank’s average balance of outstanding consolidated obligations for the calendar quarter. Additionally, the Capital Agreement provides that amounts in restricted retained earnings in excess of 150 percent of the Bank’s restricted retained earnings minimum (i.e., one percent of the Bank’s average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter) may be released from restricted retained earnings. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition.

Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks’ portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank’s minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank’s proportionate share of the Office of Finance’s operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation.

Voluntary Housing and Community Investment. The Banks’ voluntary contributions to AHP and other housing and community investment initiatives are recorded in a separate line within non-interest expense on the Statements of Income.

Voluntary AHP is expensed when the Bank’s board approves the terms of the irrevocable award and the likelihood of award is probable and the amount is estimable. The amount is subject to the same regulatory requirements as AHP assessments.

Other voluntary housing and community investment initiatives primarily consist of voluntary grants and contributions and subsidized advances. Voluntary grants and contributions are recognized as an expense in the period in which the grant or contribution is considered an unconditional promise to give. Subsidized advances are advances that have an interest rate below the customary interest rate for non-subsidized advances with similar terms. For a subsidized advance, at the time of disbursement, the Bank will determine the present value of the advance using the imputed market interest rate as the discount rate. In addition, the Bank records a discount on the advance with a corresponding voluntary housing and community investment expense related to the inherent contribution made at the time the Bank issues the advance. The discount on a subsidized advance is accreted to interest income on advances using a level-yield methodology over the life of the advance.

80

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP that provides subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low and low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP subsidized advances that have interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank’s related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the contractual interest method over the life of the advance.

Note 3—Recently Issued But Not Yet Adopted Accounting Standards

The following table provides a summary of the Financial Accounting Standards Board’s recently issued accounting standards not yet adopted by the Bank.

Accounting Standard Update (ASU)	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
Disaggregation of Income Statement Expenses (ASU 2024-03)	The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses.	This guidance becomes effective for the annual period ended December 31, 2027, and the interim periods thereafter.	The adoption of this guidance will not have an impact on the Bank's results of operations, but may impact future financial statement disclosures.

Note 4—Cash and Due from Banks

The Bank maintains a collected cash balance with a commercial bank, which is a member, in return for certain services, and the average collected cash balance was $8 and $9 for the years ended December 31, 2024 and 2023, respectively. There are no legal restrictions regarding the withdrawal of these funds.

Note 5—Investments in Debt Securities

Available-for-sale Securities

The following table presents available-for-sale securities. All investment securities classified as available-for-sale are fixed-rate securities.

	As of December 31,
	2024								2023
	Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value		Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value
U.S. Treasury obligations	$	4,063	$	1	$	(1)	$	4,063	$	2,208	$	—	$	(5)	$	2,203
Mortgage-backed securities:
Government-sponsored enterprises commercial	728		1		(2)		727		247		—		—		247
Total	$	4,791	$	2	$	(3)	$	4,790	$	2,455	$	—	$	(5)	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

81

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents available-for-sale securities with gross unrealized losses. The gross unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position. There were no available-for-sale securities with a continuous unrealized loss greater than 12 months as of December 31, 2024 and 2023.

	As of December 31, 2024
	Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations	$	1,441	$	(1)
Mortgage-backed securities:
Government-sponsored enterprises commercial	487		(2)
Total	$	1,928	$	(3)

	As of December 31, 2023
		Less than 12 Months
		Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations		$	2,105	$	(5)
Mortgage-backed securities:
Government-sponsored enterprises commercial		247		—
		$	2,352	$	(5)

The following table presents the amortized cost and estimated fair value of available-for-sale securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Due in one year or less	$	100	$	100	$	—	$	—
Due after one year through five years	3,963		3,963		2,208		2,203
Total non-mortgage-backed securities	4,063		4,063		2,208		2,203
Mortgage-backed securities (2)	728		727		247		247
Total	$	4,791	$	4,790	$	2,455	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

82

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

(Held-to-maturity Securities

The following table presents held-to-maturity securities.

	As of December 31,
	2024								2023
	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
State or local housing agency debt obligations	$	1	$	—	$	—	$	1	$	1	$	—	$	—	$	1
Government-sponsored enterprises debt obligations	795		3		—		798		1,475		4		(12)		1,467
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	2,010		2		(36)		1,976		2,715		9		(32)		2,692
Government-sponsored enterprises residential	8,420		13		(151)		8,282		8,311		18		(185)		8,144
Government-sponsored enterprises commercial	14,217		15		(149)		14,083		16,212		9		(190)		16,031
Total	$	25,443	$	33	$	(336)	$	25,140	$	28,714	$	40	$	(419)	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	435	$	436	$	680	$	668
Due after one year through five years	301		303		736		740
Due after five years through 10 years	60		60		60		60
Total non-mortgage-backed securities	796		799		1,476		1,468
Mortgage-backed securities (2)	24,647		24,341		27,238		26,867
Total	$	25,443	$	25,140	$	28,714	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

83

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents interest-rate payment terms for investment securities classified as held-to-maturity.

	As of December 31,
	2024		2023
Non-mortgage-backed securities:
Fixed-rate	$	1	$	551
Variable-rate	795		925
Total non-mortgage-backed securities	796		1,476
Mortgage-backed securities:
Fixed-rate	2,850		3,341
Variable-rate	21,797		23,897
Total mortgage-backed securities	24,647		27,238
Total amortized cost (1)	$	25,443	$	28,714

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

For information related to the Bank’s credit risk on investments in debt securities and allowance for credit losses, see Note 2—Summary of Significant Accounting Policies.

Note 6—Advances

The Bank offers a wide range of fixed- and variable-rate advance products with different maturities, interest rates, payment characteristics, and optionality. Fixed-rate advances generally have maturities ranging from one day to 30 years. Variable-rate advances generally have maturities ranging from less than 30 days to 20 years, where the interest rates reset periodically at a fixed spread to Secured Overnight Financing Rate (SOFR) or other specified indices.

Redemption Terms. The following table presents the Bank’s advances outstanding by redemption terms.

	As of December 31,
	2024		2023
Due in one year or less	$	59,497	$	70,501
Due after one year through two years	9,155		6,038
Due after two years through three years	4,768		5,375
Due after three years through four years	5,327		3,075
Due after four years through five years	2,730		7,544
Due after five years	4,831		4,415
Total par value	86,308		96,948
Deferred prepayment fees	3		10
Discounts	(1)		(1)
Fair value hedging adjustments	(481)		(349)
Total (1)	$	85,829	$	96,608

___________

(1) Carrying amounts exclude accrued interest receivable of $375 and $577 as of December 31, 2024 and 2023, respectively.

The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $6,469 and $2,789 as of December 31, 2024 and 2023, respectively.

84

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents advances by year of contractual maturity or next call date for callable advances.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	62,240	$	72,792
Due or callable after one year through two years	7,724		5,968
Due or callable after two years through three years	4,205		4,053
Due or callable after three years through four years	4,907		2,621
Due or callable after four years through five years	2,426		7,124
Due or callable after five years	4,806		4,390
Total par value	$	86,308	$	96,948

Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $3,916 and $2,693 as of December 31, 2024 and 2023, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date.

	As of December 31,
	2024		2023
Due or convertible in one year or less	$	63,194	$	72,951
Due or convertible after one year through two years	8,683		6,154
Due or convertible after two years through three years	3,994		5,117
Due or convertible after three years through four years	4,870		3,040
Due or convertible after four years through five years	1,526		5,584
Due or convertible after five years	4,041		4,102
Total par value	$	86,308	$	96,948

Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances.

	As of December 31,
	2024		2023
Fixed-rate:
Due in one year or less	$	15,669	$	17,162
Due after one year	21,127		22,100
Total fixed-rate	36,796		39,262
Variable-rate:
Due in one year or less	43,828		53,339
Due after one year	5,684		4,347
Total variable-rate	49,512		57,686
Total par value	$	86,308	$	96,948

Advance Concentrations. The Bank’s advances are concentrated in commercial banks, credit unions, savings institutions, and insurance companies, and further is concentrated in certain larger borrowing relationships. The concentration of the Bank’s advances to its 10 largest borrowers was $63,317, or 73.4 percent of total advances, and $70,499, or 72.7 percent of total advances, as of December 31, 2024 and 2023, respectively.

For information related to the Bank’s credit risk on advances and allowance for credit losses, see Note 2—Summary of Significant Accounting Policies.

85

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Note 7—Mortgage Loans Held for Portfolio

The Bank purchased fixed-rate residential mortgage loans directly from PFIs, who service and credit enhance the residential mortgage loans that they sold to the Bank. The Bank ceased purchasing these loans directly from PFIs in 2008. The Bank may also acquire fixed-rate residential mortgage loans through participation in eligible mortgage loans purchased from other FHLBanks.

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase.

	As of December 31,
	2024		2023
Medium-term (15 years or less)	$	1	$	1
Long-term (greater than 15 years)	88		102
Total unpaid principal balance	89		103
Total mortgage loans held for portfolio (1)	89		103
Allowance for credit losses on mortgage loans	—		—
Mortgage loans held for portfolio, net	$	89	$	103

____________

(1) Amortized cost, excluding accrued interest receivable that was not material for the reported periods.

The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type.

	As of December 31,
	2024		2023
Conventional mortgage loans	$	82	$	94
Government-guaranteed or insured mortgage loans	7		9
Total unpaid principal balance	$	89	$	103

Payment status is a key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following tables present the payment status for conventional mortgage loans. All of the Bank’s conventional mortgage loans were originated prior to 2018.

	As of December 31,
	2024		2023
Payment status, at amortized cost:(1)
Past due 30-59 days	$	2	$	2
Past due 60-89 days	1		1
Past due 90 days or more	2		2
Total past due mortgage loans	5		5
Current mortgage loans	77		89
Total conventional mortgage loans	$	82	$	94

___________

(1) Amortized cost excludes accrued interest receivable that was not material for the reported periods.

86

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following tables present the other delinquency statistics for all mortgage loans.

	As of December 31, 2024
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at amortized cost:
In process of foreclosure (1)	$	—		$	—		$	—
Seriously delinquent rate (2)	2.28		%	1.54		%	2.22		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

	As of December 31, 2023
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at recorded investment:
In process of foreclosure (1)	$	1		$	—		$	1
Seriously delinquent rate (2)	2.17		%	2.43		%	2.19		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

____________

(1) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported.

(2) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment.

(3) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

(4) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2024 and 2023, none of conventional mortgage loans on nonaccrual status had an associated allowance for credit losses because either these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, was greater than the amortized cost of the loans.

For information related to mortgage loan modifications, see Note 2—Summary of Significant Accounting Policies.

Note 8—Consolidated Obligations

Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the FHLBanks and are backed only by the financial resources of the FHLBanks.

The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf) and also is jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the consolidated obligation represents a primary liability of such FHLBank. Although it has never occurred, to the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank that is primarily liable for such consolidated obligation, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank for any payments made on its behalf and any other associated costs (including interest to be determined by the Finance Agency). However, if the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its repayment obligations, the Finance Agency may allocate the outstanding liabilities of the noncomplying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding. The Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of the FHLBanks’ outstanding consolidated obligations, including consolidated obligations issued by the Bank, was $1,192,968 and $1,204,316 as of December 31, 2024 and 2023, respectively.

87

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Regulations require each FHLBank to maintain, in the aggregate, unpledged qualifying assets equal to that FHLBank’s consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; mortgages guaranteed or insured by the U.S. or its agencies; participations, mortgages, or other securities of or issued by certain government-sponsored enterprises; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. The Bank held unpledged qualifying assets of $146,523 and $151,730 as of December 31, 2024 and 2023, respectively, compared to a book value of $135,851 and $141,572 in consolidated obligations as of December 31, 2024 and 2023, respectively.

General Terms. Consolidated obligations are issued with either fixed- or variable-rate coupon payment terms and may use a variety of indices for interest-rate resets including the SOFR and others. To meet the expected specific needs of certain investors in consolidated obligations, both fixed- and variable-rate consolidated obligation bonds may contain certain features, which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank generally enters into derivatives containing offsetting features that, in effect, convert the terms of the consolidated obligation bond to those of a simple variable-rate consolidated obligation bond.

These consolidated obligations, beyond having fixed-rate or simple variable-rate coupon payment terms, may also have the following broad term regarding either principal repayment or coupon payment terms:

Optional Principal Redemption Consolidated Obligation Bonds (callable bonds) that the Bank may redeem in whole or in part at its discretion on predetermined call dates according to the terms of the consolidated obligation bond offerings.

With respect to interest payments, consolidated obligation bonds may have the following term in addition to fixed-rate and simple variable-rate payment terms:

Step-up/down Consolidated Obligation Bonds have coupons at fixed rates for specified intervals over the lives of the consolidated obligation bonds. At the end of each specified interval, the coupon rate increases (or decreases) or steps up (or steps down). These consolidated obligation bond issues generally contain call provisions enabling the bonds to be called at the Bank’s discretion.

Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type.

	As of December 31,
	2024		2023
Fixed-rate	$	51,471	$	74,641
Simple variable-rate	49,905		38,288
Step up/down	3,040		4,124
Total par value	$	104,416	$	117,053

88

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity.

	As of December 31,
	2024			2023
	Amount		Weighted- average Interest Rate (%)	Amount		Weighted- average Interest Rate (%)
Due in one year or less	$	83,164	4.17	$	84,908	4.77
Due after one year through two years	10,341		1.78	12,584		2.71
Due after two years through three years	6,593		2.83	9,736		1.66
Due after three years through four years	2,197		2.62	6,172		2.70
Due after four years through five years	1,161		3.96	2,552		3.06
Due after five years	960		4.13	1,101		3.07
Total par value	104,416		3.82	117,053		4.13
Premiums	7			12
Discounts	(13)			(13)
Fair value hedging adjustments	(711)			(1,452)
Total	$	103,699		$	115,600

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature.

	As of December 31,
	2024		2023
Noncallable	$	65,259	$	52,117
Callable	39,157		64,936
Total par value	$	104,416	$	117,053

The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	99,033	$	110,423
Due or callable after one year through two years	2,249		2,691
Due or callable after two years through three years	1,362		1,776
Due or callable after three years through four years	1,307		451
Due or callable after four years through five years	70		1,307
Due or callable after five years	395		405
Total par value	$	104,416	$	117,053

Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds and have original contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature.

89

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents the Bank’s participation in consolidated obligation discount notes.

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of December 31, 2024	$	32,152	$	32,368	4.44
As of December 31, 2023	$	25,972	$	26,241	5.25

Note 9—Affordable Housing Program and Voluntary Contributions

Affordable Housing Program. Annually, each FHLBank must set aside 10 percent of its income subject to assessment for the AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100. For purposes of the statutory AHP calculation, each FHLBank’s income subject to assessment is defined as the individual FHLBank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The Bank accrues this expense monthly based on its income subject to assessment. The Bank reduces the AHP liability when it makes grant disbursements or as members use advance subsidies.

If the Bank experienced a net loss during a quarter but had income subject to assessment in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation based on the Bank’s year-to-date income subject to assessment. If the Bank experienced a net loss for a full year, the Bank would have no obligation to the AHP for the year since each FHLBank’s required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate of 10 percent of income subject to assessment for all FHLBanks was less than $100, each FHLBank would be required to contribute additional amounts so that the aggregate contribution of the FHLBanks equals the required $100. Each FHLBanks’ prorated contribution would be determined based on its income in relation to the income of all FHLBanks for the previous year. There was no shortfall in the years ended December 31, 2024, 2023, or 2022. If an FHLBank finds that its required contributions are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. No FHLBank made such an application in the years ended December 31, 2024, 2023, or 2022. The Bank had outstanding principal in AHP-related advances of $7 and $8 as of December 31, 2024 and 2023, respectively.

The following table presents a rollforward of the Bank’s AHP liability, including voluntary non-statutory AHP contributions:

	For the Years Ended December 31,
	2024		2023		2022
AHP liability balance, at beginning of year	$	108	$	59	$	61
Statutory AHP assessment	77		72		21
Voluntary AHP expense	23		11		5
Direct grant disbursements	(52)		(35)		(31)
Recapture amounts and other	1		1		3
AHP liability balance, at end of year	$	157	$	108	$	59

Voluntary Housing and Community Investment. In addition to the statutory AHP assessment, the Bank’s board of directors may, from time to time, authorize voluntary contributions to the AHP or other housing and community investment initiatives. The following table presents the amount of such voluntary contributions authorized by the Bank:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions	$	23	$	11	$	5
Voluntary non-AHP contributions	26		8		—
Total authorized voluntary housing and community investment	$	49	$	19	$	5

90

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Voluntary housing and community investment may be utilized through existing AHP programs or other voluntary programs may be established by the Bank to distribute those funds. The Bank funded the following voluntary non-AHP housing programs during 2024:

•Workforce Housing Plus+ Program. This program was created in response to economic dynamics across the Bank’s district. The program was launched in June 2024. Under this program, eligible homebuyers with household incomes between 80.01 percent to 120 percent of area median income can apply for funding to put towards housing downpayments and closing costs. The properties also must be in the Bank’s district.

•Heirs’ Property Family Wealth Protection Fund. This program was launched in October 2024. Through this fund, organizations working to address the challenge of heirs’ property were invited to apply for funding through the Bank’s members to assist property owners located in low-to-moderate income areas within communities in the Bank’s district. Heirs’ property issues arise when there is a lack of a clear title or documentation of home ownership, when a property owner passes away without a will designating a new owner, the heirs fail to properly vest title to the property in their names, or when a property is left to multiple beneficiaries without a plan to manage the property, creating a tangled title.

•Multifamily Housing Bridge Fund (Bridge Fund). The board approved the Bridge Fund in 2023, and funded the awards in 2024 to help close funding gaps for affordable multifamily rental housing projects caused by the steep rise in interest rates and construction costs. The Bridge Fund offers funding to the Bank’s member financial institutions and their community housing partners in a competitive application process. Eligible projects for the Bridge Fund include multifamily and mixed-use rental housing projects targeted to households earning up to 120 percent of the area median income. Projects must be at least fifty percent complete at the time of application and demonstrate a financing gap related to an increase in construction hard costs, such as construction materials and labor. Projects also must be in the Bank’s district.

The following table presents voluntary contributions reported in noninterest expense as “Voluntary housing and community investment” on the Statements of Income which were allocated as follows:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions:
AHP Homeownership Set-aside Program	$	15	$	11	$	5
AHP General Fund	8		—		—
Total Voluntary non-statutory AHP contributions	23		11		5
Voluntary non-AHP contributions:
Workforce Housing Plus+ Program	20		—		—
Heirs’ Property Family Wealth Protection Fund	6		—		—
Bridge Fund	—		8		—
Total Voluntary non-AHP contributions	26		8		—
Total voluntary housing and community investment	$	49	$	19	$	5

Voluntary contributions that are not disbursed, excluding voluntary non-statutory AHP contributions, are included within “Other liabilities” on the Statements of Condition. The following table presents a rollforward of the Bank’s voluntary non-AHP contributions liability:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-AHP contributions liability,      at beginning of year	$	8	$	—	$	—
Voluntary non-AHP expense	26		8		—
Payments made	(28)		—		—
Voluntary non-AHP contributions liability,      at end of year	$	6	$	8	$	—

91

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Note 10—Capital

Capital. The Bank is subject to the following three regulatory capital requirements under its capital plan, the FHLBank Act, and Finance Agency regulations.

Risk-Based Capital. The Bank must maintain, at all times, permanent capital in an amount at least equal to the sum of its credit risk capital requirement, its market risk capital requirement, and its operational risk capital requirement, calculated in accordance with the rules and regulations of the Finance Agency. Permanent capital is defined by the FHLBank Act and regulations as the sum of retained earnings and the amounts paid-in for Class B stock. Only permanent capital satisfies the risk-based capital requirement. The Finance Agency may require the Bank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined.

Total Regulatory Capital. The FHLBank Act requires the Bank to maintain total regulatory capital in an amount equal to at least four percent of total assets at all times. Total regulatory capital is defined as the sum of permanent capital, the amounts paid-in for Class A stock (if any), the amount of the Bank’s general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. The Bank has not issued any Class A stock, has no general allowance for losses, and has no other instruments identified in the capital plan and approved by the Finance Agency; therefore, the Bank’s total regulatory capital is equal to its permanent capital as of December 31, 2024 and 2023. Total regulatory capital does not include accumulated other comprehensive income (loss) but does include mandatorily redeemable capital stock.

Leverage Capital. The FHLBank Act requires the Bank to maintain leverage capital in an amount equal to at least five percent of total assets at all times. Leverage capital is defined as the sum of permanent capital weighted 1.5 times and all other components of total capital. Although mandatorily redeemable capital stock is not included in capital for financial reporting purposes, such outstanding stock is considered capital for determining compliance with these regulatory capital requirements.

The following table presents the Bank’s compliance with the Finance Agency’s regulatory capital rules and requirements.

	As of December 31,
	2024						2023
	Required			Actual			Required			Actual
Risk-based capital	$	1,312		$	7,935		$	1,288		$	8,121
Total regulatory capital ratio	4.00		%	5.39		%	4.00		%	5.33		%
Total regulatory capital	$	5,884		$	7,935		$	6,095		$	8,121
Leverage capital ratio	5.00		%	8.09		%	5.00		%	7.99		%
Leverage capital	$	7,355		$	11,902		$	7,619		$	12,182

The Bank’s capital plan provides for three subclasses of Class B stock, as follows:

•shares of subclass B1 capital stock are issued to meet the membership stock requirement under the capital plan;

•shares of subclass B2 capital stock are issued to meet the advances activity-based stock requirement under the capital plan; and

•shares of subclass B3 capital stock are issued to meet the standby letters of credit activity-based stock requirement under the capital plan.

Each subclass of Class B stock is issued, redeemed, and repurchased at a par value of $100 per share. Member shares cannot be purchased or sold except between the Bank and its members at $100 per share par value. The minimum stock requirement for each member is the sum of the membership stock requirement and the activity-based stock requirements. The capital plan permits the Bank’s board of directors to set the membership and activity-based stock requirements within a range as set forth in the capital plan. Activity-based stock held by a member is that amount of subclass B2 or B3 capital stock that the member is required to own for as long as certain transactions between the Bank and the member remain outstanding. The manner in which the activity-based stock requirement is determined under the capital plan is set forth below.

92

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Subclass B1 capital stock. As of December 31, 2024, the membership stock requirement was an amount of subclass B1 capital stock equal to 0.07 percent (seven basis points) of a member’s total assets as of December 31, 2023, subject to a cap of $18. The membership stock requirement is recalculated using the member’s total assets as of the preceding calendar year-end at least annually by March 31.

Subclass B2 capital stock. As of December 31, 2024, the advances activity-based stock requirement was an amount of subclass B2 capital stock equal to the sum of the following:

•4.75 percent of the member’s outstanding par value of advances; and

•8.00 percent of any outstanding targeted debt or equity investments (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004, although none of these investments were outstanding as of December 31, 2024.

The advances activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets) although this percentage was set at zero as of December 31, 2024 and 2023.

Subclass B3 capital stock. As of December 31, 2024, the standby letters of credit activity-based requirement was an amount equal to 0.10 percent (10 basis points) of members’ outstanding standby letters of credit.

The FHLBank Act and Finance Agency regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum regulatory capital requirement. Therefore, from time to time, the Bank’s board of directors may adjust the membership stock requirement and the activity-based stock requirement within specified ranges set forth in the capital plan. Any adjustment outside the ranges would require an amendment to the capital plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the minimum stock requirement.

The FHLBank Act provides that the Bank may repurchase, at its sole discretion, any member’s capital stock investment that exceeds the required minimum amount (excess capital stock). Under certain circumstances, Finance Agency regulations limit the ability of the Bank to create member excess stock. The Bank may not pay dividends in the form of capital stock or issue excess capital stock to any member if the Bank’s excess capital stock exceeds one percent of its total assets or if the issuance of excess capital stock would cause the Bank’s excess capital stock to exceed one percent of its total assets. As of December 31, 2024 and 2023, the Bank’s excess capital stock did not exceed one percent of its total assets.

A member may redeem its excess Class B capital stock at par value payable in cash five years after providing written notice to the Bank. The Bank, at its option, may repurchase a member’s excess capital stock before expiration of the five-year notice period. The Bank’s authority to redeem or repurchase capital stock is subject to a number of limitations.

Under Finance Agency regulations, the Bank’s board of directors may, but is not required to, declare and pay non-cumulative dividends in cash or capital stock from unrestricted retained earnings and current earnings. All shares of capital stock share in any dividend without preference. Dividends are computed on the average daily balance of capital stock outstanding during the relevant time period. The Bank may not pay a dividend if the Bank is not in compliance with any of its regulatory capital requirements or if a payment would cause the Bank to fail to meet any of its regulatory capital requirements.

The Bank declares and pays any dividends only after net income is calculated for the preceding quarter. The following table presents the Bank’s declared and paid quarterly cash dividends in 2024, 2023, and 2022.

	2024			2023			2022
	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)
First quarter	$	117	7.35	$	78	6.37	$	22	3.70
Second quarter	108		7.35	99		6.50	23		3.74
Third quarter	112		7.35	127		6.97	33		4.11
Fourth quarter	99		7.35	104		7.25	51		5.30
Total	$	436	7.35	$	408	6.79	$	129	4.34

93

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Note 11—Accumulated Other Comprehensive Income (Loss)

The following table presents the components comprising accumulated other comprehensive loss.

	Net Unrealized Gains (Losses) on Available-for-sale Securities		Pension and Postretirement Benefits		Total  Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2021	$	(9)	$	(7)	$	(16)
Other comprehensive income before reclassifications:
Net unrealized losses on available-for-sale securities	(25)		—		(25)
Actuarial gain	—		6		6
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	—		1		1
Net current period other comprehensive (loss) income	(25)		7		(18)
Balance, December 31, 2022	(34)		—		(34)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	29		—		29
Net current period other comprehensive income	29		—		29
Balance, December 31, 2023	(5)		—		(5)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	4		—		4
Actuarial gain	—		1		1
Net current period other comprehensive income	4		1		5
Balance, December 31, 2024	$	(1)	$	1	$	—

____________ 

(1) Included in Noninterest expense - Other on the Statements of Income.

Note 12—Pension and Postretirement Benefit Plans

The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Plan), a tax-qualified defined-benefit pension plan. The Pentegra Plan is treated as a multiemployer plan for accounting purposes but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra Plan. Under the Pentegra Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Plan covers substantially all officers and employees of the Bank hired before March 1, 2011.

The Pentegra Plan operates on a fiscal year from July 1 through June 30. The Pentegra Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888, and the three-digit plan number is 333. There are no collective bargaining agreements in place at the Bank.

The Pentegra Plan’s annual valuation process includes separately calculating the plan’s funded status and the funded status of each participating employer. The funded status is defined as the fair value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the fair value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30.

The most recent Form 5500 available for the Pentegra Plan is for the year ended June 30, 2023. The contributions made by the Bank during 2024 were not more than five percent of the total contributions for the Pentegra Plan year ended June 30, 2023, and contributions made during 2023 were not more than five percent of the total contributions for the Pentegra Plan year ended June 30, 2022.

94

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents information on the net pension costs and funded status of the Pentegra Plan.

	2024			2023			2022
Net pension cost charged to compensation and benefit expense for the year ended December 31	$	1		$	1		$	5
Pentegra Plan funded status as of July 1(1) (2)	111.97		%	113.99		%	119.09		%
Bank’s funded status as of July 1	131.40		%	137.29		%	145.40		%

____________

(1) The Pentegra Plan’s funded status as of July 1, 2024, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2024 through March 15, 2025. Contributions made on or before March 15, 2025, and designated for the plan year ended June 30, 2024, will be included in the final valuation as of July 1, 2024. The final funded status as of July 1, 2024, will not be available until the Form 5500 for the plan year July 1, 2024 through June 30, 2025, is filed (this Form 5500 is due to be filed no later than April 2026).

(2) The Pentegra Plan’s funded status as of July 1, 2023, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2023 through March 15, 2024. Contributions made on or before March 15, 2024, and designated for the plan year ended June 30, 2023, will be included in the final valuation as of July 1, 2023. The final funded status as of July 1, 2023, will not be available until the Form 5500 for the plan year July 1, 2023 through June 30, 2024, is filed (this Form 5500 is due to be filed no later than April 2025).

In addition to the above multiemployer pension plan, the Bank has a qualified defined contribution plan, a nonqualified defined contribution plan, a nonqualified deferred compensation plan, a supplemental nonqualified defined benefit plan and a postretirement medical and life insurance plan. The financial amounts related to these plans were not material for the reported periods.

Note 13—Derivatives and Hedging Activities

Nature of Business Activity

The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and on its interest-bearing liabilities that finance these assets. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes that it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of its interest-earning assets and funding sources. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits.

The Bank enters into derivatives to manage the interest-rate risk exposure that is inherent in its otherwise unhedged assets and funding sources, to achieve the Bank’s risk management objectives, and to act as an intermediary between its members and counterparties. Finance Agency regulations and the Bank’s risk management policy prohibit the trading or speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of the Bank’s financial management strategy.

The most common ways in which the Bank uses derivatives are to:

•preserve a favorable interest-rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps;

•reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond;

•reduce the interest-rate sensitivity and repricing gaps of assets and liabilities;

•mitigate the adverse earnings effects from the shortening or lengthening of certain assets (e.g., mortgage assets) and liabilities;

•protect the value of existing asset or liability positions;

•manage embedded options in assets and liabilities; and

95

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

•achieve overall asset/liability management objectives.

Application of Derivatives

General. The Bank designates derivative instruments in the following three ways: (1) as a fair value hedge of an underlying financial instrument or a firm commitment; (2) as an intermediary transaction; or (3) as a non-qualifying hedge for purposes of asset or liability management.

The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies.

The Bank transacts most of its derivatives with counterparties that are large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. The Bank’s over-the-counter derivatives transactions may either be (1) uncleared derivatives, which are executed bilaterally with a counterparty; or (2) cleared derivatives, which are cleared through a Futures Commission Merchant (clearing agent) with a Derivatives Clearing Organization (Clearinghouse).

Once a derivatives transaction has been accepted for clearing by a Clearinghouse, the derivatives transaction is novated, and the executing counterparty is replaced with the Clearinghouse as the counterparty. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit.

The Bank uses derivatives when they are considered to be the most cost-effective alternative to achieve the Bank’s long-term financial and risk management objectives. Accordingly, the Bank may enter into derivatives that do not qualify for hedge accounting (non-qualifying hedges).

Types of Derivatives

The Bank may use the following types of derivatives to reduce funding costs and to manage its exposure to interest-rate risks inherent in the normal course of business.

Interest-Rate Swaps. An interest-rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest-rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional principal amount at a variable rate for the same period of time. The variable rate received or paid by the Bank in most derivative transaction agreements is SOFR or the overnight indexed swap rate.

Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest-rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes when it is planning to lend or borrow funds in the future. The Bank may enter into both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date, and a receiver swaption is the option to receive fixed interest payments at a later date.

Interest-Rate Cap and Floor Agreements. In an interest-rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest-rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps may be used in conjunction with liabilities, and floors may be used in conjunction with assets. Caps and floors are designed to protect against the interest rate on a variable-rate asset or liability rising above or falling below a certain level.

Types of Hedged Items

At inception, the Bank documents all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition; or (2) firm commitments. The Bank also formally assesses (both at the hedge’s inception and at least quarterly on an ongoing basis) whether the derivatives that it uses in hedging relationships have been effective in

96

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges.

Investments. Investment securities may be classified as trading, available-for-sale, or held-to-maturity. The interest-rate and prepayment risk associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest-rate risks by funding investment securities with consolidated obligations that have call features, by hedging the prepayment risk with caps or floors, or by adjusting the duration of the securities by using derivatives to modify the cash flows of the securities. Derivatives held by the Bank that are associated with trading and held-to-maturity securities are designated as a non-qualifying hedge and derivatives held by the Bank associated with available-for-sale securities may qualify as either a fair value hedge or a cash flow hedge, or may be designated as a non-qualifying hedge.

Advances. The Bank offers a variety of advance structures to meet members’ funding needs. These advances may have maturities of up to 30 years with variable or fixed rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and/or options characteristics of advances in order to more closely match the characteristics of the Bank’s funding liabilities. In general, whenever a member executes a fixed- or a variable-rate advance with embedded options, the Bank simultaneously will execute a derivative with terms that offset the terms and embedded options in the advance. For example, the Bank may hedge a fixed-rate advance with an interest-rate swap in which the Bank pays a fixed-rate coupon and receives a variable-rate coupon, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair-value hedge.

Mortgage Assets. The Bank has invested in mortgage assets. The prepayment options embedded in mortgage assets may shorten or lengthen the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest-rate and prepayment risk associated with mortgages through a combination of debt issuance and derivatives. The Bank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may use derivatives to match the expected prepayment characteristics of the mortgages.

Options (interest-rate caps, interest-rate floors and/or options) also may be used to hedge prepayment risk on the mortgages. Many options are not identified to specific mortgages and therefore, do not receive fair-value or cash-flow hedge accounting treatment. The Bank also may purchase interest-rate caps and floors, swaptions, callable swaps, calls, and puts to minimize the prepayment risk embedded in the mortgage loans. Although these derivatives are valid non-qualifying hedges against the prepayment risk of the loans, they do not receive either fair-value or cash-flow hedge accounting. These derivatives are marked-to-market through earnings.

Consolidated Obligations. While consolidated obligations are the joint and several obligations of the FHLBanks, each FHLBank has consolidated obligations for which it is the primary obligor. The Bank enters into derivatives to hedge the interest-rate risk associated with its specific debt issuances in conjunction with the associated interest-rate risk on advances. The Bank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation. For instance, in a typical transaction, fixed-rate consolidated obligations are issued for the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows to the Bank designed to mirror cash outflows that the Bank pays on the consolidated obligation in timing and amount. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances. These transactions are typically treated as fair-value hedges. This intermediation between the capital and swap markets permits the Bank to raise funds at lower costs than otherwise would be available through the issuance of simple fixed-rate consolidated obligations in the capital markets.

Firm Commitments. Certain mortgage loan purchase commitments are considered derivatives. Mortgage purchase commitments are recorded on the balance sheet at fair value, with changes in fair value recognized in current-period earnings. When the mortgage purchase commitment derivative settles, the current fair value of the commitment is included with the basis of the mortgage loan and amortized accordingly.

The Bank also may enter into a fair value hedge of a firm commitment for a forward starting advance through the use of an interest-rate swap. In this case, the swap functions as the hedging instrument for both the firm commitment and the subsequent advance. The basis movement associated with the firm commitment is recorded as a basis adjustment of the advance at the time the commitment is terminated and the advance is issued. The basis adjustment is then amortized into interest income over the life of the advance using the level-yield method.

97

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Financial Statement Effect and Additional Financial Information

Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged.

The following table presents the notional amount, fair value of derivative instruments, and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of December 31,
	2024						2023
	Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities		Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities
Derivatives in hedging relationships:
Interest-rate swaps	$	100,529	$	196	$	777	$	107,578	$	215	$	1,603
Derivatives not designated as hedging instruments:
Interest-rate swaps	60		2		1		69		2		1
Interest-rate caps or floors	—		—		—		4,000		—		—
Total derivatives not designated as hedging instruments	60		2		1		4,069		2		1
Total derivatives before netting and collateral adjustments	$	100,589	198		778		$	111,647	217		1,604
Netting adjustments and cash collateral (1)			247		(766)				306		(1,599)
Derivative assets and derivative liabilities			$	445	$	12			$	523	$	5

___________

(1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

The following tables present the net gains (losses) on fair value hedging relationships.

	For the Year Ended December 31, 2024
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	5,467	$	179	$	(6,076)	$	(1,210)
Changes in fair value:
Hedged items (2)	$	(147)	$	(65)	$	(270)	$	(2)
Derivatives	155		65		745		2
Net changes in fair value	8		—		475		—
Net interest settlements on derivatives (1) (2)	472		28		(1,120)		(6)
Amortization/accretion of active hedging relationships	1		—		(466)		—
Other	(14)		2		(7)		(11)
Total net interest income effect from fair value hedging relationships	$	467	$	30	$	(1,118)	$	(17)

98

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

	For the Year Ended December 31, 2023
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	6,681	$	79	$	(6,617)	$	(1,798)
Changes in fair value:
Hedged items (2)	$	348	$	59	$	(555)	$	(14)
Derivatives	(357)		(59)		1,011		12
Net changes in fair value	(9)		—		456		(2)
Net interest settlements on derivatives (1) (2)	499		5		(1314)		(3)
Amortization/accretion of active hedging relationships	10		—		(456)		—
Other	(30)		—		(5)		(3)
Total net interest income effect from fair value hedging relationships	$	470	$	5	$	(1,319)	$	(8)

	For the Year Ended December 31, 2022
	Interest Income (Expense)
	Advances		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	1,748	$	(1,345)	$	(805)
Changes in fair value:
Hedged items (2)	$	(1,105)	$	2,226	$	10
Derivatives	1,318		(2,222)		(9)
Net changes in fair value	213		4		1
Net interest settlements on derivatives (1) (2)	(17)		(187)		$	(32)
Amortization/accretion of active hedging relationships	(185)		(12)		—
Other	4		—		—
Total net interest income effect from fair value hedging relationships	$	15	$	(195)	$	(31)

____________

(1) 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.

(2) Excludes the interest income/expense of the respective hedged items.

The following tables present the total basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items.

	As of December 31, 2024
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	24,840	$	4,791	$	49,795	$	20,654
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(478)	$	(5)	$	(700)	$	5
Basis adjustments for discontinued hedging relationships included in amortized cost	(3)		—		(11)		—
Total amounts of fair value hedging basis adjustments	$	(481)	$	(5)	$	(711)	$	5

99

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

100

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

	As of December 31, 2023
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	25,175	$	2,455	$	71,637	$	6,862
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(339)	$	59	$	(1,436)	$	3
Basis adjustments for discontinued hedging relationships included in amortized cost	(10)		—		(16)		—
Total amounts of fair value hedging basis adjustments	$	(349)	$	59	$	(1,452)	$	3

____________ 

(1) Includes only the portion of amortized cost representing the hedged items in active or discontinued fair value hedging relationships. Amortized cost includes fair value hedging adjustments.

The following table presents net gains (losses) on derivatives recorded in noninterest income on the Statements of Income.

	For the Years Ended December 31,
	2024		2023		2022
Derivatives not designated as hedging instruments:
Interest-rate swaps	$	1	$	(3)	$	—
Interest-rate caps or floors	—		(1)		—
Net interest settlements	—		—		2
Net gains (losses) on derivatives	$	1	$	(4)	$	2

Managing Credit Risk on Derivatives

The Bank is subject to credit risk to its derivative transactions due to the risk of nonperformance by counterparties and manages this risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations.

For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank.

For cleared derivatives, the Clearinghouse is the Bank’s counterparty. The Clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent notifies the Bank. The Bank utilizes two Clearinghouses for all cleared derivative transactions, CME Clearing and LCH Ltd. At both Clearinghouses, variation margin is characterized as daily settlement payments, and initial margin is considered cash collateral. Because the Bank is required to post initial and variation margin through the clearing agent to the Clearinghouse, it exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties, and collateral/payments is posted daily through a clearing agent for changes in the fair value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default, including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

The Bank presents derivative instruments and the related cash collateral that is received or pledged, plus the associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements.

101

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties.

	As of December 31,
	2024				2023
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Gross recognized amount:
Uncleared derivatives	$	185	$	770	$	200	$	1,592
Cleared derivatives	13		8		17		12
Total gross recognized amount	198		778		217		1,604
Gross amounts of netting adjustments and cash collateral:
Uncleared derivatives	(177)		(758)		(190)		(1,587)
Cleared derivatives	424		(8)		496		(12)
Total gross amounts of netting adjustments and cash collateral:	247		(766)		306		(1,599)
Net amounts after netting adjustments and cash collateral:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net amounts after netting adjustments and cash collateral	445		12		523		5
Non-cash collateral received or pledged not offset- cannot be sold or repledged:
Uncleared derivatives	—		—		—		—
Cleared derivatives	—		—		—		—
Total cannot be sold or repledged	—		—		—		—
Net unsecured amounts:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net unsecured amount	$	445	$	12	$	523	$	5

________ 

(1)T

Note 14—Estimated Fair Values

The Bank records available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is defined under GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. In general, the transaction price will equal the exit price and therefore, represents the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction, the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market.

A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated, and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability and defines the level of disclosure. In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy.

Outlined below is the application of the “fair value hierarchy” to the Bank’s financial assets and liabilities that are carried at fair value or disclosed in the notes to the financial statements.

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

102

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models, or similar techniques. The Bank did not carry any financial assets or liabilities, measured on a recurring basis, at fair value Level 3 as of December 31, 2024 and 2023.

The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities within the fair value hierarchy. There were no such transfers during the periods presented.

Described below are the Bank’s fair value measurement methodologies applied for financial assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition and categorized within the fair value hierarchy.

Investment securities. The Bank obtains prices from multiple designated third-party pricing vendors, when available, to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to, the following: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information as applicable, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank.

The Bank conducts periodic reviews of its pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies, and control procedures for U.S. agency MBS.

The Bank’s valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security.

All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “resultant” price. All prices that are outside the threshold (outliers) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the resultant price. Alternatively, if the analysis does not provide evidence that an outlier (or some other price identified in the analysis) is more representative of the fair value, and the resultant price is the best estimate, then the resultant price is used as the final price. If all prices received for a security are outside the tolerance threshold level of the median price, then there is no resultant price, and the final price is determined by an evaluation of all outlier prices as described above. In all cases, the final price is used to determine the fair value of the security.

Multiple third-party vendor prices were received for a majority of the Bank’s investment securities holdings, and the final prices for those securities were computed by averaging the prices received as of December 31, 2024 and 2023. Based on the Bank’s review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or the Bank’s additional analysis in those instances in which there were outliers or significant yield variances), the Bank believes that its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further, that the fair value measurements are classified appropriately in the fair value hierarchy.

Derivative assets and liabilities. The Bank calculates the fair values of interest-rate related derivatives using a discounted cash flow analysis which utilizes market-observable inputs. The significant assumptions used in this model are based on management’s best estimate of discount rates, market indices, and market volatility. The inputs for interest-rate related derivatives uses the SOFR swap curve for the discounting of cleared derivatives and the Overnight Index Swap curve for the discounting of collateralized derivatives.

103

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank’s derivatives should obviate the need to provide such a credit valuation adjustment. The fair values of the Bank’s derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis.

The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of December 31, 2024 and 2023. Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology. For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would need to take into account future business opportunities and the net profitability of assets versus liabilities.

	As of December 31, 2024
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	35	$	35	$	35	$	—	$	—
Interest-bearing deposits	1,493		1,493		—		1,493		—
Securities purchased under agreements to resell	21,200		21,200		—		21,200		—
Federal funds sold	7,158		7,158		—		7,158		—
Available-for-sale securities (1)	4,790		4,790		—		4,790		—
Held-to-maturity securities	25,443		25,140		—		25,140		—
Advances	85,829		85,862		—		85,862		—
Mortgage loans held for portfolio, net	89		85		—		85		—
Accrued interest receivable	490		490		—		490		—
Derivative assets (1)	445		445		—		198		247
Grantor trust assets (included in Other assets) (1)	29		29		29		—		—
Liabilities:
Interest-bearing deposits	2,312		2,312		—		2,312		—
Consolidated obligations, net:
Discount notes	32,152		32,147		—		32,147		—
Bonds	103,699		103,570		—		103,570		—
Mandatorily redeemable capital stock	1		1		1		—		—
Accrued interest payable	721		721		—		721		—
Derivative liabilities (1)	12		12		—		778		(766)

(F.

104

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

	As of December 31, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	142	$	142	$	142	$	—	$	—
Interest-bearing deposits	1,833		1,833		—		1,833		—
Securities purchased under agreements to resell	12,500		12,500		—		12,500		—
Federal funds sold	8,710		8,710		—		8,710		—
Available-for-sale securities (1)	2,450		2,450		—		2,450		—
Held-to-maturity securities	28,714		28,335		—		28,335		—
Advances	96,608		96,599		—		96,599		—
Mortgage loans held for portfolio, net	103		101		—		101		—
Accrued interest receivable	673		673		—		673		—
Derivative assets (1)	523		523		—		217		306
Grantor trust assets (included in Other assets) (1)	26		26		26		—		—
Liabilities:
Interest-bearing deposits	1,568		1,568		—		1,568		—
Consolidated obligations, net:
Discount notes	25,972		25,968		—		25,968		—
Bonds	115,600		115,280		—		115,280		—
Accrued interest payable	902		902		—		902		—
Derivative liabilities (1)	5		5		—		1,604		(1,599)

____________ 

(1) Financial instruments measured at fair value on a recurring basis. 

(2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

Note 15—Commitments and Contingencies

Consolidated obligations are backed only by the financial resources of the FHLBanks. At any time, the Finance Agency may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank.

The par value of the other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $1,056,184 and $1,061,022 as of December 31, 2024 and 2023, respectively, exclusive of the Bank’s own outstanding consolidated obligations. None of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed as of December 31, 2024 and 2023. Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks’ consolidated obligations as of December 31, 2024 and 2023.

105

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations.

	As of December 31,
	2024						2023
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	10,251	$	8,059	$	18,310	$	8,086	$	7,557	$	15,643

____________

(1)“Expire Within One Year” includes 26 standby letters of credit for a total of $59 and 21 standby letters of credit for a total of $30 as of December 31, 2024 and 2023, respectively, which have no stated maturity date and are subject to renewal on an annual basis.

The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If the Bank is required to make a payment for a beneficiary's draw, the member either reimburses the Bank for the amount drawn or, subject to the Bank's discretion, the amount drawn may be converted into a collateralized advance to the member and will require a corresponding activity-based capital stock purchase. However, standby letters of credit usually expire without being drawn upon.

The carrying value of the guarantees related to standby letters of credit is recorded in “Other liabilities” on the Statements of Condition and amounted to $29 and $26 as of December 31, 2024 and 2023, respectively.

The Bank’s operating expenses include net rental costs that were not material for the years ended December 31, 2024, 2023 and 2022. Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from increases in property taxes and maintenance expenses. Such increases are not expected to have a material effect on the Bank’s results of operations.

The Bank may be subject to various legal proceedings and actions from time to time in the ordinary course of its business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of those matters presently known to the Bank will have a material effect on the Bank’s financial condition or results of operations.

Note 16—Transactions with Shareholders

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments as declared by the Bank’s board of directors. All advances are issued to members and eligible housing associates under the FHLBank Act, and mortgage loans held for portfolio were purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loans purchased. Transactions with any member that has an officer or director who is also a director of the Bank are subject to the same Bank policies as transactions with other members.

Related Parties. In accordance with GAAP, financial statements are required to disclose material related-party transactions other than compensation arrangements, expense allowances, or other similar items that occur in the ordinary course of business. Under GAAP, related parties include owners of more than 10 percent of the voting interests of the Bank. Due to limits on member voting rights under the FHLBank Act and Finance Agency regulations, no member owned more than 10 percent of the total voting interests. Therefore, the Bank had no such related party transactions required to be disclosed for the periods presented.

Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank’s total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding.

106

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS

(Dollars in millions, except per share amounts)

	As of December 31, 2024
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	964	18.72	$	19,801	22.94	$	—	—
Bank of America, NA	629		12.21	12,849		14.89	—		0.01

	As of December 31, 2023
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	1,197	21.38	$	24,701	25.48	$	—	—
Bank of America, NA	850		15.19	17,504		18.05	—		0.01

Note 17—Transactions with Other FHLBanks

The Bank’s activities with other FHLBanks are summarized below.

Loans to and Borrowings from Other FHLBanks. Occasionally, the Bank loans short-term funds to or borrows short-term funds from the other FHLBanks. All such transactions are at current market interest rates. There were no outstanding loans to or borrowings from the other FHLBanks as of December 31, 2024 and 2023. Interest income on loans to and interest expense on borrowings from the other FHLBanks were not material during each of the years ended December 31, 2024, 2023, and 2022.

The following table presents the cash flow activities for loans to and borrowings from other FHLBanks.

	For the Years Ended December 31,
	2024		2023		2022
Investing activities:
Loans to other FHLBanks	$	—	$	(1,005)	$	(4,300)
Principal collected on loans to other FHLBanks	—		1,005		4,300
Net change in loans to other FHLBanks	$	—	$	—	$	—
Financing activities:
Proceeds from short-term borrowings from other FHLBanks	$	4,200	$	300	$	4,080
Payments of short-term borrowings from other FHLBanks	(4,200)		(300)		(4,080)
Net change in borrowings from other FHLBanks	$	—	$	—	$	—

Mortgage Loan Purchases of Participation Interests from Other FHLBanks. In December 2016, the Bank agreed to purchase a 90 percent participating interest in a $100 master commitment of certain newly acquired mortgage loans from the FHLBank Indianapolis. The Bank’s outstanding balance related to these mortgage loans was $19 and $21 as of December 31, 2024 and 2023, respectively.

107

Transfer Consolidated Obligations with other FHLBanks. Occasionally, one FHLBank may transfer to another FHLBank the consolidated obligations for which the transferring FHLBank was originally the primary obligor but upon transfer the assuming FHLBank becomes the primary obligor. The transfers of consolidated obligations between FHLBanks are at market terms and help facilitate the balance sheet management by the individual FHLBanks. The following table presents the par value of consolidated obligations transfers with other FHLBanks. The aggregate gains (losses) on these debt transfers were not material.

	For the Years Ended December 31,
	2024		2023
Transfer to other FHLBanks:
FHLBank Boston	$	2	$	—
FHLBank New York	—		6,080
FHLBank Chicago	—		4,320
FHLBank Indianapolis	—		960
FHLBank Cincinnati	—		250
Total transfers to other FHLBanks	$	2	$	11,610
Transfer from other FHLBanks:
FHLBank Boston	$	5	$	—
FHLBank Cincinnati	1		—
Total transfers from other FHLBanks	$	6	$	—

Note 18— Subsequent Events

On January 30, 2025, the Bank’s board of directors approved a fourth quarter 2024 cash dividend at an annualized rate of 7.10 percent. The Bank paid the fourth quarter 2024 dividend on February 5, 2025 in the amount of $100.

108

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

The Bank’s President and Chief Executive Officer and the Bank’s Executive Vice President and Chief Financial Officer (Certifying Officers) are responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure that information required to be disclosed by the Bank in the reports filed or submitted under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Bank in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure.

As of December 31, 2024, the Bank’s management, with the participation of the Certifying Officers, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures. Based on that evaluation, the Certifying Officers have concluded that the Bank’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to provide reasonable assurance that information required to be disclosed by the Bank in the reports that it files or submits under the Exchange Act (1) is accumulated and communicated to the Bank’s management, including the Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure; and (2) is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms.

In designing and evaluating the Bank’s disclosure controls and procedures, the Bank’s Certifying Officers recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Management’s Report on Internal Control Over Financial Reporting

The Bank’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Bank, as defined in Rule 13a-15(f) under the Exchange Act. The Bank’s management assessed the effectiveness of the Bank’s internal control over financial reporting as of December 31, 2024. In making this assessment, the Bank’s management utilized the criteria set forth by COSO in Internal Control-Integrated Framework (2013). Based upon that evaluation, management has concluded that the Bank’s internal control over financial reporting was effective as of December 31, 2024.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. The effectiveness of the Bank’s internal control over financial reporting as of December 31, 2024, has been audited by PricewaterhouseCoopers LLP (PwC), an independent registered public accounting firm, as stated in their report which appears within.

Changes in Internal Control Over Financial Reporting

During the fourth quarter of 2024, there were no changes in the Bank’s internal control over financial reporting that have affected materially, or are reasonably likely to affect materially, the Bank’s internal control over financial reporting.

Item 9B. Other Information.

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable

PART III

109

Item 10. Directors, Executive Officers and Corporate Governance.

Directors

The FHLBank Act provides that an FHLBank’s board of directors is to comprise 13 directors, or such other number as the Director of the Finance Agency determines appropriate. For 2025, the Director has designated 14 directorships for the Bank, eight of which are member directorships and six of which are independent directorships. In 2024, the Bank’s board of directors was comprised of eight member directors and six independent directors. As of the date of this Report, the Bank has 13 directors, eight of whom are member directors and five of whom are independent directors under Finance Agency Regulations. The current independent directorship vacancy will be filled in accordance with Finance Agency regulations.

The FHLBank Act stipulates that all individuals serving as Bank directors must be U.S. citizens. At least a majority of the directors must be member directors and not less than two-fifths must be independent directors. Under the FHLBank Act, as amended by the Housing and Economic Recovery Act, and Finance Agency regulations, the term of office of each director is four years, subject to certain adjustments to achieve a staggered board. Any director that has been elected to three consecutive full terms is not eligible for election to directorship for any term that begins within two years of the expiration of the third term.

Finance Agency regulations stipulate the rules and process applicable to the election of board directors of the FHLBanks, therefore the board of directors does not solicit proxies, nor are member institutions permitted to solicit or use proxies in order to cast their votes in an election. The Bank prepares and delivers a ballot to each member that was a member as of the record date.

Member Directors

FHLBank boards are not permitted to nominate or elect member directors, except for vacant member directorships. Candidates for member directorships in a particular state are nominated by members in that state. Finance Agency regulations require that:

•a member directorship be held only by an officer or director of a member institution located within the Bank’s district;

•the member institution meet all minimum capital requirements established by its regulator(s); and

•the member institution be a member as of the record date established for the election of the member director.

The Bank is not permitted to establish additional eligibility criteria or qualifications for member directorships. With respect to member directors, under Finance Agency regulations, no director, officer, employee, attorney, or agent of the Bank (except in their personal capacity) may, directly or indirectly, support the nomination or election of a particular individual for a member directorship.

For each member director position to be filled, an eligible member in that state may cast one vote for each share of capital stock it was required to hold as of the record date, except that an eligible member’s votes for each member director position to be filled may not exceed the average number of shares of capital stock required to be held by all of the members in that state as of the record date.

Finance Agency regulations permit, but do not require, the board of directors to conduct an annual assessment of the skills and experience possessed by the members of its board of directors and to determine whether the capabilities of the board would be enhanced through the addition of individuals with particular skills and experience. The Bank may identify those qualifications and inform the members as part of its election notification process, however, the Bank may not exclude a member director candidate from the election ballot on the basis of such qualifications. In 2024, the board of directors conducted an assessment of its directors, but did not identify any particular qualifications as part of its 2024 election notification process.

110

Independent Directors

Candidates for independent directorships are nominated by the Bank’s board of directors. Finance Agency regulations require that an independent directorship be held only by an individual:

•who is a bona fide resident of the Bank’s district;

•who is not a director, officer, or employee of a member institution or of any recipient of advances from the Bank; and

•who is not an officer of any FHLBank.

At least two of the independent directors must be public interest directors. Finance Agency regulations define a public interest independent director as someone having more than four years of experience representing consumer or community interests in banking services, credit needs, housing or consumer financial protection. The other independent directors must have experience in, or knowledge of, one or more of the following areas: auditing and accounting, derivatives, financial management, organizational management, project development, risk management practices, and the law.

Any individual may submit an application form and request to be considered by the Bank to be an independent director candidate. Before nominating any individual for an independent directorship, other than for a public interest directorship, the Board must determine that the candidate’s knowledge or experience is commensurate with that needed to oversee a financial institution with a size and complexity that is comparable to the Bank’s. Finance Agency regulations require the board to consult with the Bank’s Affordable Housing Advisory Council with respect to the independent directorship candidates. Further, the Bank must submit information about independent directorship candidates to the Finance Agency for its review prior to their nomination. After the independent director candidates are nominated by the board, the candidates are then presented to the Bank’s membership for a district-wide vote. Finance Agency regulations permit the Bank’s directors, officers, attorneys, employees, agents, and Advisory Council members to support the candidacy of the board’s candidates for independent directorships.

For independent directorships, candidates are elected on a district-wide basis, and the candidate(s) receiving the most votes is declared the winner. Candidates running unopposed must receive at least 20 percent of the number of votes eligible to be cast. If an unopposed candidate receives less than 20 percent of eligible votes, a new election must be conducted.

Board Vacancies

When the board has a vacancy, Finance Agency regulations require the board to elect a director to fill the vacancy by a majority vote of the remaining directors.

The Bank has determined that all directors meet the regulatory eligibility requirements for directors. Because of the laws and regulations governing member directorship elections that are described above, the Bank is not in a position to know what specific factors the Bank’s member institutions may consider in selecting member director candidates or electing member directors. For the Bank’s independent directors and the directors who hold their current directorship due to vacancy and appointment by the board, other than examining eligibility, the board considered the experience, qualifications, attributes or skills described in the biographical paragraphs provided below in determining to nominate that person as a director for the Bank. In addition, when making nominations, the board has at times considered the importance of maintaining a continuity of relevant knowledge, leadership and experience on the board and the diversity of thought, perspective, and experience the candidate would bring to the board.

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The following table presents information regarding each of the Bank’s directors, and all persons nominated or chosen to become directors, as of the date of this Report. Except as otherwise indicated, each director has been engaged in the principal occupation described below for at least five years. No director has any family relationship with any other director or executive officer of the Bank.

Name	Age	Director Since	Expiration of Current Term as Director	Board Committees
Eduardo J. Arriola(1)	52	2022	12/31/2026	(5)(8)(10)(11)
James M. Burke(1)	56	2023	12/31/2026	(6)(8)(9)(11)
Kimberly A. Casiano(2)	67	2024	12/31/2027	(5)(7)(8)(10)
Suzanne S. DeFerie(1)	68	2015	12/31/2028	(12)
Susan F. Dewey(2)(3)	68	2024	12/31/2028	(5)(8)(9)(11)
R. Thornwell Dunlap, III(1)	67	2016	12/31/2027	(13)
Scott C. Harvard(1)(4)	70	2017	12/31/2028	(6)(7)(8)(10)
William L. Lusk, Jr.(1)	56	2022	12/31/2025	(5)(7)(8)(9)
Kathleen C. McKinney(2)	70	2023	12/31/2026	(5)(8)(9)(11)
Brian P. McLaughlin(2)(3)	51	2022	12/31/2025	(6)(8)(10)(11)
John B. Rucker(2)	73	2017	12/31/2027	(6)(8)(10)(11)
James M. Stubbs(1)	62	2022	12/31/2025	(6)(7)(8)(9)
Richard A. Whaley(1)	65	2013	12/31/2026	(6)(7)(8)(10)

____________

(1)Member Director

(2)Independent Director

(3)Public Interest Director

(4)Mr. Harvard previously served as a director from 2003-2012.

(5)Member of Audit Committee

(6)Member of Credit and Member Services Committee

(7)Member of Enterprise Risk and Operations Committee

(8)Member of Executive Committee

(9)Member of Finance Committee

(10)Member of Governance and Compensation Committee

(11)Member of Housing and Community Investment Committee

(12)Vice chair of Executive Committee and ex officio member of all other board committees

(13)Chair of Executive Committee and ex officio member of all board committees

Chair of the board, R. Thornwell Dunlap, III has served as president and chief executive officer of Countrybank since 1995 and chair of its holding company, TCB Corporation (TCB), since 2001. In his capacity as chair of TCB, Mr. Dunlap is a director of Greenwood Capital Associates, LLC, a registered investment advisory firm, owned by TCB. He is past chair of the South Carolina Banks Association (2017 to 2018) and is a past president of the Independent Banks of South Carolina (2011 to 2012). Mr. Dunlap is the past chair of Greenwood Partnership Alliance and served on the Piedmont Technical College Foundation Board of Directors. He has served on the Ten at the Top Board of Directors since 2009 and is a founding director. Mr. Dunlap is a member and past chair of the Greenwood Rotary Club. He currently serves as chair of the Executive Committee and ex officio member of the other committees of the Bank’s board of directors.

Vice chair of the board, Suzanne S. DeFerie has served as a member of the board of directors of First Bank, a subsidiary of First Bancorp in Southern Pines, North Carolina (NASDAQ: FBNC) since October 1, 2017. She served as president and chief executive officer of Asheville Savings Bank, S.S.B. in Asheville, North Carolina, from 2008 and its holding company, ASB Bancorp, Inc. (NASDAQ: ASBB), from 2011 until October 1, 2017, when the bank and holding company were acquired by First Bancorp. Ms. DeFerie also serves as a member of the board of directors for First Bancorp and was named audit committee chair in 2023. She formerly served as senior audit manager with Deloitte. Ms. DeFerie is a past member of the Community Depository Advisory Council of the Federal Reserve Bank of Richmond, past chair of the Asheville Area Chamber of Commerce and United Way of Asheville and Buncombe County, as well as past board member for the Economic Development Coalition of Asheville-Buncombe County, Mission Health System and Asheville Area Habitat for Humanity. Ms. DeFerie currently serves the Asheville, NC community on the boards of the Community Betterment Foundation, ANC Health Care and the Asheville Merchants’ Fund. Ms. DeFerie is a certified public accountant. She currently serves as vice chair of the Executive Committee and ex officio member of the other committees of the Bank’s board.

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Eduardo J. (“Eddy”) Arriola serves as a member of the board of directors of Seacoast Banking Corporation of Florida (NASDAQ: SBCF), based in Stuart, FL and is chief executive officer of Arriola & Co., a consulting and advisory company based in Coral Gables, FL. Most recently, he served as executive vice president and market executive of Seacoast National Bank (the principal subsidiary of Seacoast Banking Corporate of Florida) from October 2022 when it acquired Apollo Bank to June 2024, when he was appointed to the Seacoast Banking Corporation of Florida board of directors. He was the founder, the chair of the board, and chief executive officer of Apollo Bank, a community bank in Miami focused on serving entrepreneurs, small businesses, family owned businesses, and professionals. Mr. Arriola acted as chair of the board and chief executive officer, until its acquisition by Seacoast National Bank. He served two terms a board member of the Miami Branch of the Federal Reserve Bank of Atlanta from 2017 to 2022 and is a past board member of the Florida Bankers Association and BankServ. Mr. Arriola served as an investor and member of the board of directors of Total Bank from 2002 to 2007, and prior to founding Apollo Bank in 2010, he was involved in several entrepreneurial businesses in the technology and business service industries. He is the co-founder of Inktel, a 3,000 employee call center firm based in Miami, served as director of creative services for Avanti Case-Hoyt, a national graphic arts and printing firm, and served as a board member for gMed, a leading firm in the medical office automation space. Mr. Arriola has been a leader in matters involving international policy and commerce. He serves as the chair of the board of the Inter-American Foundation (IAF), an independent U.S. government agency created to support grassroots development in Latin America and the Caribbean. He was appointed to the IAF board by the president and confirmed by the U.S. Senate in 2012 and has continued in the role since then. Mr. Arriola has supported many local community programs and served on the board of several organizations. He received his bachelor of arts in history from Boston College and is a graduate of the Owner/President Management Program of Harvard Business School. He is also a nearly 20-year member of the Young President’s Organization. Mr. Arriola currently serves as vice chair of the Governance and Compensation Committee of the Bank’s board.

James M. Burke joined Shore United Bank and Shorebanc Shares, Inc. (NASDAQ: SHBI) as a member of the board, president and chief executive officer in 2023, following its merger with The Community Financial Corporation (NASDAQ:TCFC), of which he was a member of the board since 2021. In 2005 Mr. Burke joined Community Bank of the Chesapeake where he served as executive vice president, chief risk officer becoming president of the bank in 2016 and chief executive officer of the bank and holding company The Community Financial Corporation in 2022. Prior to joining Community Bank of the Chesapeake, Mr. Burke served as executive vice president and senior loan officer of Mercantile Southern Maryland Bank. Mr. Burke has over 30 years of banking experience. Mr. Burke is the former chair of the board of directors of University of Maryland Charles Regional Medical Center, chair of the board of directors for St. Mary’s Ryken High School, former trustee for Historic Sotterley and is active in other civic groups. Mr. Burke is a Maryland Bankers School graduate and holds a Bachelor of Arts from High Point University. He is also a graduate of the East Carolina Advanced School of Commercial Lending and attended the Harvard Business School Program on Negotiation. Mr. Burke serves as vice chair of the Finance Committee of the Bank’s board.

Kimberly A. Casiano is currently a director of the Ford Motor Company (NYSE:F), where she was elected to the board of directors in 2003, and a director of Mutual of America Life Insurance Company, where she was elected to the board of directors in 2006. She is a former director of Mead Johnson Nutrition Company from 2010 to 2017 and Scotiabank of Puerto Rico from 2013 to 2019. Ms. Casiano has experience in financial, organizational, and risk management, having served on the audit committees of Ford Motor Company, Mutual of America Life Insurance Company, Mead Johnson Nutrition Company, and Scotiabank of Puerto Rico. Ms. Casiano’s responsibilities on the audit committee at Ford Motor Company include oversight of Ford Credit, a financial entity with over $140 billion in assets. From 2010 to the present, Ms. Casiano has been a pro bono consultant to non-profits, small companies, and C-Suite executives of major corporations on environmental, social, and governance (ESG) topics, including diversity, equality, and inclusion, board governance, and business strategies, further contributing to her knowledge of organizational management. Ms. Casiano’s role as an Executive Fellow in the Harvard Business School involves teaching in both the MBA and Executive Education programs on topics such as Women in Boards, Board Preparedness, Board Dilemmas, and Board Governance. Ms. Casiano received her MBA from Harvard Business School and her undergraduate degree from Princeton University. Ms. Casiano’s extensive experience in financial, organizational, and risk management along with her service as a board member to several large companies supported her nomination as an independent director. Ms. Casiano currently serves as vice chair of the Audit Committee of the Bank’s board.

Susan F. Dewey served over 24 years as chief executive officer of the Virginia Housing Development Authority (Virginia Housing) and retired on December 31, 2023. During her tenure at Virginia Housing, Ms. Dewey served on the Bank’s Affordable Housing Advisory Council, the Fannie Mae Housing Impact Advisory Committee and the National Association of Realtors Housing Opportunity Advisory Board. Ms. Dewey previously served as the State Treasurer of Virginia from 1996 to 1999, where she was responsible for all operations of the Department of Treasury and Treasury board as well as serving on

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numerous state authorities and boards including the Virginia Port Authority and the College Savings Authority. She served on the board of the Virginia Department of Housing and Community Development and the National Council of State Housing Agencies (past chair and member of the Board) until she retired in December 2023. She is currently serving on the board of the Virginia Commonwealth University Real Estate Circle of Excellence (past president and Conference Committee); the William and Mary Real Estate Foundation Board (secretary); the National Housing Conference (NHC) National Advisory Council and Policy/Research Committee; board of VCDC. Ms. Dewey is a certified public accountant and earned her B.B.A. and M.B.A from the College of William and Mary in Williamsburg, Virginia. Ms. Dewey’s extensive experience in public finance and housing development supported her nomination as an independent and public interest director. Ms. Dewey currently serves as vice chair of the Housing and Community Investment Committee of the Bank’s board.

Scott C. Harvard has served as president, chief executive officer and director of First National Corporation (NASDAQ: FXNC) since 2011. He served as president, chief executive officer and director of First Bank from 2011 to 2015 and has served as chief executive officer and director of First Bank since 2015. He previously served as a director of the Bank from 2003 to 2012, serving as chair from 2007 to 2012. He also served on the Council of Federal Home Loan Banks. He is a director of Community Bankers Bank Financial Corp. and its subsidiary, Community Bankers Bank in Richmond, Virginia. Mr. Harvard served as president, chief executive officer and as a director of Shore Bank from 1985 to 2008 and as president, chief executive officer and director of its parent, Shore Financial Corporation, from 1997 to 2008. He served as executive vice president and director of Hampton Roads Bankshares from 2008 to 2009 and as a vice president of Virginia Savings Bank from 2009 to 2011. He previously served on the board of the Virginia Association of Community Banks from 2012 to 2014 and as a member of the executive committee of the Virginia Bankers Association, serving as its chair in 2018 to 2019. He also served as board chair of the Virginia Bankers Association Education Foundation until 2024. Mr. Harvard has served on numerous nonprofit boards over his career, including most recently the United Way of Northern Shenandoah Valley, Shenandoah Valley Westminster Canterbury and the Shenandoah Valley Westminster Canterbury Foundation, the Top of Virginia Chamber of Commerce, and Shrine Mont. Mr. Harvard currently serves as chair of the Enterprise Risk and Operations Committee of the Bank’s board of directors.

William L. (“Chip”) Lusk, Jr. has served as chief executive officer of the IDB Global Federal Credit Union since 2016. Prior to leading IDB Global, Mr. Lusk was chief operating officer and chief financial officer for Georgia’s Own Credit Union from 2011 to 2015. From 1999 to 2011, he served as chief financial officer, executive vice president, and secretary of the board of First Security Group, Inc. (NASDQ: FSGI) and FSGBank, NA. From 1991 to 1999, he served in various roles, including vice president, controller, and director of strategic planning, for Pioneer Bancshares, Inc., an SEC registrant, and Pioneer Bank. He is currently a member of the District of Columbia Financial Literacy Council. Previously, Mr. Lusk served on the Finastra Phoenix Client Advisory Board, the DC Credit Union Foundation Board, Habitat for Humanity Board, the YoungLife Committee, the Episcopal Migration Ministries and the Rotary Club. Mr. Lusk currently serves as chair of the Audit Committee of the Bank’s board of directors.

Kathleen C. McKinney is Senior Counsel, Public Finance, of Haynsworth Sinkler Boyd, P.A. She has been an attorney with Haynsworth Sinkler Boyd since 1995 and was previously associated with the McNair Law firm from 1981 until 1995. She served as an independent director of the FHLBanks Office of Finance Board of Directors from 2010 until 2022. Ms. McKinney assists healthcare and educational institutions in mergers, acquisitions, expansions and affiliations, with a focus on addressing legal strategies for taxable and tax-exempt debt and other financing options. She has also been bond, issuers’, disclosure and underwriters’ counsel in revenue bond issues, resulting in $4 billion of capital investment in South Carolina in the past three years. She serves as bond counsel for many of South Carolina’s leading hospitals. Ms. McKinney also serves as bond counsel for colleges and universities, charter schools, foundations and continuing care retirement and life care projects. She served as president of the National Association of Bond Lawyers and is ranked in Chambers USA and has been elected to Super Lawyers in South Carolina. She has assisted in establishing best practices in corporate governance for public and nonprofit institutions. She is immediate past chair of Spartanburg Methodist College Board of Trustees and immediate past chair of Furman University Board of Trustees and an immediate past chair of the Woodlands at Furman and serves on the Endowment Committee of the Metropolitan Arts Council in Greenville. Ms. McKinney’s extensive legal and regulatory experience on financing transactions as well as her experience on board of directors of the Office of Finance for 12 years in which she was a member of the audit and governance committees supported her nomination as an independent director. Ms. McKinney currently serves as chair of the Finance Committee of the Bank’s board of directors.

Brian P. McLaughlin is the co-founder and Managing Director of PlanitWorks, LLC, a vertically integrated planning, engineering, and investment firm specializing in sustainable affordable housing and distributed renewable energy system development in underserved communities. Mr. McLaughlin is also a Principal of b3advisory, LLC, a boutique consulting firm specializing in real estate project design and capitalization. Prior to these roles, he served as the inaugural president of Enterprise Community Development, Inc. from 2019 to 2023 establishing the company as one of the 10 largest nonprofit

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providers of affordable housing in the United States. In 2014 Mr. McLaughlin co-founded Lantian Development, Inc, a Maryland real estate investment and development firm, where he served as founding CEO and later as chief investment officer until his departure in 2019. Across his 27-year career, Mr. McLaughlin served in various technical and leadership roles in mission driven organizations seeking to expand housing and economic opportunity, including eight years in various roles at Fannie Mae (from 2000 to 2003 and again later from 2006 to 2011). From 2003 to 2006, Mr. McLaughlin was Assistant Secretary of the Maryland Department of Housing and Community Development, where he led its division responsible for neighborhood revitalization programs and investment. He has served on the boards of Neighborhood Housing Services of Baltimore, the Fund for Educational Excellence, the Community Preservation and Development Corporation, and currently serves on the board of Northern Virginia Affordable Housing Alliance since 2022 and the Baltimore Branch Board of the Federal Reserve Bank of Richmond since 2022. Mr. McLaughlin’s expertise in the area of affordable housing, his breadth of experience and deep understanding of the inequities in the housing market, his regulatory and credit experience, as well as his experience with government sponsored enterprises, supported his nomination as an independent and public interest director. Mr. McLaughlin currently serves as chair of the Housing and Community Investment Committee of the Bank’s board.

John B. Rucker has served as managing director of Stifel, Nicolaus & Company, Incorporated (Stifel), an investment banking firm, since 2015, and manages Stifel’s affordable housing business. Mr. Rucker was a founding partner and managing director of Merchant Capital, L.L.C., a public finance investment banking firm, from 1987 to 2015, which was acquired by Stifel in 2015. He is also a registered municipal advisor. He was a member of Fannie Mae’s Southeast Regional Housing Advisory Council and Fannie Mae’s National Housing Impact Advisory Council in 2004 and 2005. He has also served on the board of directors of the National Housing & Rehabilitation Association since 2003. Mr. Rucker served on the Bank’s Affordable Housing Advisory Council from 2012 to 2016, serving as its vice chair from 2014 to 2015 and as its chair in 2016. Mr. Rucker also serves on the board of CAHEC since 2022, an affordable housing tax-credit syndicator. In November 2023, Mr. Rucker was inducted into the affordable housing hall of fame by AHF Live. Mr. Rucker’s experience in derivatives/hedging, affordable housing, letters of credit, large commercial banks, and information technology supported his nomination as an independent director. Mr. Rucker currently serves as the chair of the Governance and Compensation Committee of the Bank’s board of directors.

James M. (“Jimmy”) Stubbs has served as chief executive officer and director of River Bank & Trust since its formation in 2006, and as a director of its holding company, River Financial Corporation (OTC: RVRF), since 2006. Mr. Stubbs is the past chair of the Alabama Bankers Association from June 2020 to June 2021. He currently serves as a board member for the Business Council of Alabama, the Montgomery Chamber Committee of 100, the YMCA of Montgomery Endowment Foundation. Mr. Stubbs is a Leadership Alabama Class of 2007 alumnus and a member of the River Region United Way’s Tocqueville Society and the Wetumpka Lions Club. He is a lifetime member of the Auburn Alumni Association and the Alabama Cattlemen’s Association. He graduated from Auburn University with a BS degree in 1985 and obtained an executive MBA degree from Troy University in 2005. He currently serves as vice chair of the Credit and Member Services Committee and as vice chair of the Enterprise Risk and Operations Committee of the Bank’s board of directors.

Richard A. Whaley has served as president, chief executive officer, and director of Citizens Bank of Americus in Americus, Georgia, since 2001. From 1989 to 2001, he served as market manager and commercial lender for Wachovia Bank. Mr. Whaley served as chair of the Georgia Bankers Association from October 2010 to June 2012. Mr. Whaley also served as chair of the South Georgia Technical College Foundation from 2008 to 2010. He currently serves as chair of the Georgia Bankers Association Insurance Trust, Inc. and is a veteran of the U.S. Army. Mr. Whaley served as Chair of the Council of FHLBanks in 2020. He currently serves as chair of the Credit and Member Services Committee of the Bank’s board of directors.

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Code of Conduct

The board has adopted a Code of Conduct that applies to the Bank’s principal executive officer, principal financial officer, and principal accounting officer or controller, or persons performing similar functions, in each case, who are employees of the Bank. The Code of Conduct is posted on the Who We Are - Investor Relations - Governance section of the Bank’s Internet website at http://corp.fhlbatl.com/who-we-are/investor-relations/. Any amendments to, or waivers under, the Bank’s Code of Conduct that are required to be disclosed pursuant to the SEC’s rules will be disclosed on the Bank’s website.

Insider Trading Policy

As a cooperative, the Bank shares are not publicly traded and are solely owned by its member institutions (or, in limited instances, by former member institutions) for the purposes of capitalizing the Bank in support of their borrowing. Directors of the Bank include representatives of member institutions. Purchases, sales and/or other dispositions of the Bank’s shares by its members are governed by regulatory requirements applicable to the Bank and by the Bank’s capital plan (for more information on the Bank’s capital plan, see Item 1. Business - Capital and Capital Rules). The FHLBanks source their funding by issuing debt securities, consolidated obligations issued as bonds and discount notes, that are sold by dealers to investors in the public (for more information see Item 1. Business Consolidated Obligations). In addition to its capital plan, the Bank has adopted an Insider Trading Policy to promote compliance with insider trading laws, rules, regulations and applicable listing standards. A copy of the Bank’s Insider Trading Policy is filed as Exhibit 19.1 to this Form 10-K.

Director Independence, Compensation Committee, Audit Committee, and Audit Committee Financial Expert

General

The board of directors of the Bank is required to evaluate the independence of the directors as described under the Independent Directors heading above, and under two distinct director independence standards. First, Finance Agency regulations establish independence criteria for directors who serve as members of the Bank’s Audit Committee. Second, SEC rules require that the Bank’s board of directors apply the independence criteria of a national securities exchange or automated quotation system in assessing the independence of its directors.

As of the date of this Report, the Bank has 13 directors, eight of whom are member directors and five of whom are independent directors under Finance Agency Regulations. None of the Bank’s directors is an “inside” director. That is, none of the Bank’s directors is a Bank employee or officer. Further, as the Bank’s capital stock may only be owned by members, former members, and certain non-members, the Bank’s directors cannot personally own stock or stock options in the Bank. However, each of the member directors is an officer or director of an institution that is a member of the Bank and that is encouraged to, and does, engage in transactions with the Bank on a regular basis.

Finance Agency Regulations Regarding Independence for Audit Committee composition

The Finance Agency’s director independence standards prohibit an individual from serving as a member of the Bank’s Audit Committee if he or she has one or more disqualifying relationships with the Bank or its management that would interfere with the exercise of that individual’s independent judgment. Disqualifying relationships considered by the board are: employment with the Bank at any time during the last five years; acceptance of compensation from the Bank other than for service as a director; being a consultant, advisor, promoter, underwriter, or legal counsel for the Bank at any time within the last five years; and being an immediate family member of an individual who is or who has been within the past five years, a Bank executive officer. The board assesses the independence of each director under the Finance Agency’s independence standards, regardless of whether he or she serves on the Audit Committee. As of March 7, 2025, each of the Bank’s directors was independent under these criteria.

SEC Rules Regarding Independence

SEC rules require the Bank’s board of directors to adopt a standard of independence to evaluate its directors. The board has adopted the independence standards of the New York Stock Exchange (NYSE) to determine which of its directors are independent, including members of its Governance and Compensation Committee and Audit Committee, and whether the Bank’s Audit Committee’s financial experts are independent.

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After applying the NYSE independence standards, the board determined that, as of March 7, 2025, directors Casiano, Dewey, McKinney, McLaughlin, and Rucker are each an independent director. Based upon the fact that each member director is a senior official of an institution that is a member of the Bank (and thus is an equity holder in the Bank), that each such institution may routinely engage in transactions with the Bank, and that such transactions occur frequently and are encouraged, the board determined that none of the member directors presently meets the independence criteria under the NYSE independence standards.

It is possible that under the NYSE objective criteria for independence (particularly the criterion regarding the amount of business conducted with the Bank by the director’s institution), a member director could meet the independence standard on a particular day. However, because the amount of business conducted by a member director’s institution may change frequently, and because the Bank generally desires to increase the amount of business it conducts with each member, the directors deemed it inappropriate to draw distinctions among the member directors based upon the amount of business conducted with the Bank by any director’s institution at a specific time.

Compensation Committee

The board has a Governance and Compensation Committee, composed of directors Dunlap, DeFerie, Rucker, Arriola, Casiano, Harvard, McLaughlin and Whaley. As the Bank’s Governance and Compensation Committee may only recommend actions to the full board regarding governance practices and compensation and benefits programs, which the full board may approve or disapprove, the board assesses the independence of the full board under the NYSE’s standards for compensation committees. The board determined that, as of March 7, 2025, each of directors Casiano, Dewey, McKinney, McLaughlin, and Rucker was independent under the NYSE independence standards for compensation committee members, but for the reasons noted above, none of the member directors are independent under such standards.

Audit Committee

The board has a standing Audit Committee, composed of directors Dunlap, DeFerie, Lusk, Casiano, Arriola, Dewey, and McKinney. The board determined that, as of March 7, 2025, each of directors Casiano, Dewey, McKinney was independent under the NYSE independence standards for audit committee members, but, for the reasons noted above, none of the member directors serving on the Audit Committee was independent under such standards. The board also determined that each of directors Dunlap, DeFerie, Lusk, Casiano, Arriola, Dewey and McKinney is an “audit committee financial expert” within the meaning of the SEC rules.

The board also assesses the independence of the Audit Committee members under Section 10A(m)(3) of the Exchange Act. As of March 7, 2025, each of the Bank’s directors was independent under these criteria. As stated above, the board determined that each member of the Audit Committee was independent under the Finance Agency’s standards applicable to the Bank’s Audit Committee.

Board Leadership Structure and Risk Oversight

The directors are nominated and elected in accordance with applicable law and Finance Agency regulations. As required by applicable law, the chair and vice chair of the board are elected by a majority of all the directors of the Bank from among the directors of the Bank for two-year terms, and since Bank officers may not serve as directors of the Bank, neither the board chair or vice chair position can be filled by the president and chief executive officer of the Bank.

The board of directors establishes the Bank’s risk management culture, including risk tolerances and risk management philosophies, by establishing its risk management system, overseeing its risk management activities, and adopting its risk appetite and RMP. The board reviews the risk appetite report on a quarterly basis and approves any changes as appropriate. The board receives regular updates on the Bank’s key risks including an independent risk assessment. The board reviews the RMP at least annually and approves any amendments to it as appropriate. For further discussion of the risk appetite and the RMP, please see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Risk Management. The board works with management to align the Bank’s strategic activities and objectives within the parameters of the risk appetite framework and the RMP. The board utilizes committees as an integral part of overseeing risk management, including an audit committee, a credit and member services committee, an enterprise risk and operations committee, an executive committee, a finance committee, a governance and compensation committee, and a housing and community investment committee, with the following oversight responsibilities:

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•Audit Committee oversees the Bank’s financial reporting process, system of internal control, audit process, policies and procedures for assessing and monitoring implementation of the strategic plan, and the Bank’s process for monitoring compliance with laws and regulations.

•Credit and Member Services Committee oversees the Bank’s credit and collateral policies and related programs, services, products and documentation, and the Bank’s credit and collateral risk management program, strategies, and activities.

•Enterprise Risk and Operations Committee oversees the Bank’s enterprise risk management functions, operations, information technology, cybersecurity and other related matters.

•Executive Committee exercises most of the powers of the board in the management and direction of the affairs of the Bank during the intervals between board meetings.

•Finance Committee oversees matters affecting the Bank’s financial performance, capital management and other related matters, including the Bank’s market and liquidity risk management program, strategies, and activities.

•Governance and Compensation Committee oversees the Bank’s governance practices, compensation and benefits programs, and other related matters.

•Housing and Community Investment Committee oversees the Bank’s housing and community investment policies, programs, and other relevant matters, including any other Bank products, services, and programs that may provide grants, subsidies, or other forms of assistance to support affordable housing and community economic development for low- and moderate-income individuals and communities.

The Bank’s internal management is overseen by the president and chief executive officer and delegated to other senior managers and internal management committees. The Bank has determined that this leadership structure is the most effective means of actively engaging the board of directors in risk management oversight while utilizing Bank management to implement and maintain sound risk management practices.

Compensation Committee Interlocks and Insider Participation

The board has a Governance and Compensation Committee that recommends actions to the full board regarding governance practices and compensation and benefits programs, which the full board of directors may approve or disapprove. None of the directors serving on the board in 2024 has at any time been an officer or employee with the Bank. None of the Bank’s executive officers served during 2024 or is serving on the board of directors or the compensation committee of any entity whose executive officers served on the Bank’s board of directors.

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Executive Officers

The following table presents the names, ages, and titles of the executive officers of the Bank and all persons chosen to become executive officers as of the date of this Report. No executive officer has any family relationship with any other executive officer or director of the Bank.

Executive Officer	Age	Title
Kirk R. Malmberg	64	President and Chief Executive Officer
Haig H. Kazazian, III	59	Executive Vice President and Chief Financial Officer
Jefrino Afonso	61	Executive Vice President and Chief Information Officer
Alp E. Can	49	Executive Vice President and Chief Risk Officer
Dawn Gehring	52	Executive Vice President and Chief Human Resources Officer
K. Annette Hunter	60	Executive Vice President and Director of Business Operations
Reginald T. O’Shields	54	Executive Vice President and Chief Legal and Compliance Officer
Joel C. Badger	58	Senior Vice President and Chief Audit Officer
Scott M. Brennan	48	Senior Vice President and Director of Sales
James Canty	48	Senior Vice President and Treasurer
Cristina M. Cowan	55	Senior Vice President and Director of Enterprise Risk Management
Andrew S. Locker	52	Senior Vice President, General Counsel, Corporate Secretary and Director of Compliance
Leslie H. Schreiner	61	Senior Vice President and Chief Diversity, Equity, and Inclusion Officer
William T. Shaw	53	Senior Vice President and Controller
Tomeka L. Strickland	51	Senior Vice President and Director of Community Investment Services

Kirk R. Malmberg has served as president and chief executive officer since May 28, 2021. He previously served as executive vice president and chief operating officer from November 2019 to November 2020, overseeing the Bank’s member sales and outreach, community investment services, accounting, financial reporting, financial operations management, investment and derivatives operations, treasury and information technology. He served as executive vice president and chief financial officer from April 2011 to October 2019. From 2007 to 2011, he served as executive vice president and chief credit officer, overseeing collateral services, credit services, community investment services and mortgage program operations. Prior to that, Mr. Malmberg served as senior vice president responsible for the Bank’s mortgage programs. He joined the Bank in 2001 as senior vice president, asset-liability management, after having served for five years as senior vice president, treasury at FHLBank Chicago. Mr. Malmberg earned an M.B.A. from Rice University and a B.A. from Trinity University.

Haig H. Kazazian, III has served as chief financial officer since November 2019. He has served as executive vice president effective on January 1, 2022, having previously served as senior vice president since 2014, and as treasurer from 2013 to October 2019. Mr. Kazazian joined the Bank as a credit analyst in 1992 and earned promotions to manager of national accounts and product development in 2001, first vice president in 2005, manager of national accounts and capital markets trading in 2009, manager of treasury analysis and national accounts sales and trading in 2011, and senior vice president in 2014. Mr. Kazazian oversees the Bank’s business operations, accounting services, member sales, trading and education, and treasury function. He is a chartered financial analyst and earned an M.B.A. and a B.A. in economics, each from Emory University. Mr. Kazazian was an M.B.A. Fellowship Recipient.

Jefrino Afonso was promoted to executive vice president effective on January 1, 2025. He joined the Bank as senior vice president, chief information officer on April 25, 2022. In this role, he oversees all aspects of the Bank’s information technology, including information security, infrastructure, operations, support center, telephony, software development, and enterprise architecture. Prior to joining the Bank, Mr. Afonso spent 16 years with Elavon, a division of US Bank, where he was responsible for various technology systems servicing internal and external customers. Previously, in 2005 Mr. Afonso worked as an independent mergers and acquisitions consultant for CompuCredit, a financial services provider, and was chief information officer/executive director for Associated Hygienic Products, a paper product manufacturing company, from 2001 to 2004. Mr. Afonso earned a B.S. in mathematics from St. Xavier’s College in Mumbai, India, and a B.S. in computer science from Loyola University in New Orleans.

Alp E. Can has served as chief risk officer since 2017. He has served as executive vice president effective on January 1, 2020, having served as senior vice president since 2018. In his role, he directs the Bank's enterprise risk management function and

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oversees the Bank’s credit and collateral services and collateral risk management operations. He is responsible for overseeing enterprise-wide risk assessment and reporting functions, credit risk, financial risk modeling, as well as model validation efforts for the Bank. Mr. Can joined the Bank in 2005 as an asset liability analyst in the financial risk management and modeling department. He became first vice president and manager of financial risk modeling in 2013 and served as director of enterprise risk management of the Bank from 2014 to 2017. Mr. Can earned a bachelor’s degree in economics from the University of Istanbul, and an M.S. in mathematical risk management and M.B.A.- Finance, each from Georgia State University.

Dawn M. Gehring has served as chief human resources officer since 2021, having previously served as director of human resources since 2016. She has served as executive vice president effective on January 1, 2024 and as senior vice president since 2021. Ms. Gehring is responsible for executing the Bank’s human resources strategies to include: talent acquisition, total rewards, talent management, workforce diversity and inclusion, and human resources compliance. Ms. Gehring also leads the Bank’s staff services and property management functions, which include facilities operations, tenant leasing, security, print and mail services, and procurement. Prior to joining the Bank, Ms. Gehring served as vice president of global human resources for a multi-national service provider in the power and energy industry. In this role, she was a member of the Executive Leadership Team, and was compliance officer for the company, responsible for the strategic management of a variety of human resources functions. Ms. Gehring’s additional experience includes human resources roles in the manufacturing and consumer products industries. Ms. Gehring earned a B.A from the University of Iowa.

K. Annette Hunter has served as director of business operations since 2019, having previously served as director of accounting operations since 2006. Ms. Hunter was promoted from first vice president to senior vice president in 2015, and to executive vice president effective on January 1, 2023. Ms. Hunter is responsible for the daily accounting operations of the derivatives, investments, consolidated obligations, advances, stock and purchased mortgage portfolios, as well as managing the operations of wires, safekeeping and member support. Ms. Hunter joined the Bank in 2002 as manager of derivative and investment operations. Prior to joining the Bank, she served in various managerial accounting roles at Mirant Corporation, Louis Dreyfus Energy Corporation and Continental Hydraulic Hose. Ms. Hunter earned a B.S. in business administration from The Ohio State University and an M.B.A. from Kennesaw State University. She is a certified public accountant.

Reginald T. O’Shields has served as chief legal and compliance officer since February 14, 2022, and previously as director of enterprise solutions since 2019. He was promoted to executive vice president effective in 2020, having previously served as senior vice president since 2011. Mr. O’Shields manages the delivery of legal services by the Bank’s legal department covering a wide variety of corporate, securities, finance, compliance and regulatory matters. In addition, he is responsible for overseeing all Bank programs related to strategic planning, corporate communications, marketing, government and industry relations, and community investment services. Mr. O’Shields joined the Bank in 2003 as a senior attorney and earned promotions to assistant general counsel in 2005, associate general counsel in 2006, deputy general counsel in 2007 and deputy general counsel director of legal services in 2011. He served as general counsel since 2011 and chief compliance and ethics officer since 2018. Before joining the Bank, Mr. O’Shields was in private legal practice with Sutherland, Asbill & Brennan, LLP in Atlanta, Georgia, Haynsworth Sinkler Boyd in Greenville, South Carolina, and Simpson, Thacher & Bartlett in New York, New York. Mr. O’Shields earned a J.D. from Vanderbilt University and a B.A. in economics from Furman University.

Joel C. Badger has served as chief audit officer since 2019, having been promoted from first vice president to senior vice president effective on January 1, 2020. In his current role, he is responsible for providing an independent audit of the Bank by evaluating the internal control system and testing for compliance with internal policies and procedures as well as with applicable laws and directives from the Finance Agency. Mr. Badger reports directly to the audit committee of the board of directors. Mr. Badger joined the Bank in 2004 as vice president and senior financial risk auditor, was promoted to audit director of capital markets in 2006 and to first vice president in 2007. He gained audit responsibility for information technology in 2014 and has served as deputy chief audit officer since 2016. Mr. Badger earned a M.B.A in finance from Georgia State University and a B.S. degree in management with concentrations in accounting and economics from the Georgia Institute of Technology. Mr. Badger is a certified public accountant, certified investments and derivatives auditor, certified internal auditor, certified information systems auditor, certified in risk and information systems control, and a certified risk management auditor. Prior to joining the Bank, Mr. Badger was with Branch Banking and Trust, Wachovia Bank, and the Federal Reserve Bank of Atlanta.

Scott M. Brennan has served as director of sales since 2014, having been promoted from first vice president to senior vice president effective on January 1, 2019. He joined the Bank in 2001 in the Bank’s member sales and trading department as a relationship manager, serving as senior relationship manager from 2006 to 2013, having been promoted from vice president to first vice president in 2014. Mr. Brennan earned a B.S. from Franklin and Marshall College.

James Canty has served as treasurer since 2021, having been promoted from first vice president to senior vice president effective on January 1, 2024. He is responsible for directing the Bank’s funding, investment, liquidity, and interest rate risk management. Mr. Canty joined the Bank as first vice president and director of capital markets in 2014. Prior to joining the

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Bank, Mr. Canty was a director of Interest Rate Sales at Citigroup in New York and the Assistant Treasurer of the Federal Home Loan Bank of Chicago. Mr. Canty earned his Bachelor of Arts in Finance and Economics from National University of Ireland, Maynooth and a Master’s in Business Administration from Saint Ambrose University, Davenport, Iowa.

Cristina M. Cowan has served as director of enterprise risk management since 2023, having been promoted to senior vice president effective on January 1, 2024, having previously served as first vice president, director of enterprise risk management since 2019. She is responsible for the Bank’s enterprise risk management program and for providing oversight for many of the Bank’s governance programs including risk appetite and risk assessment. Ms. Cowan joined the Bank in 2007 as the enterprise operational risk project manager and earned promotions to assistant vice president and enterprise operational risk manager in 2013 and vice president and manager of enterprise risk governance and operations in 2014. Prior to joining the Bank, Ms. Cowan was senior vice president of operational risk reporting and analysis for Citigroup in New York. Ms. Cowan earned a master’s degree in information technology from American Intercontinental University and an undergraduate degree from the University of Georgia.

Andrew S. Locker has served as senior vice president, general counsel, corporate secretary and director of compliance since April 2023, having served as first vice president, general counsel and director of compliance since February 2022, and previously as deputy general counsel and director of compliance since 2018. He is responsible for leading the Bank’s legal department, which includes overseeing the Bank’s legal services, governance, and compliance functions. Mr. Locker joined the Bank in 2004 as a senior attorney and earned promotions to assistant general counsel in 2006, associate general counsel in 2009 and deputy general counsel in 2016. Prior to joining the Bank, Mr. Locker was a corporate finance attorney with Sutherland, Asbill & Brennan LLP in Atlanta. He obtained his law and undergraduate degrees from Georgetown University.

Leslie H. Schreiner has served as senior vice president, chief diversity, equity, and inclusion officer as of January 1, 2023, having previously served as first vice president, director of diversity and inclusion since July 2018. She is responsible for the oversight and implementation of the Bank’s diversity, equity, and inclusion program. Ms. Schreiner joined the Bank in 2007 as director of accounting automation and technical compliance. From 2016 to 2018, she served as director of strategic planning and accounting services, responsible for the Bank’s strategic planning and budgeting process, business intelligence initiatives, as well as accounts payable, fixed assets and expense reimbursement. Prior to joining the Bank, she held various senior accounting roles with Resources Global, Primis and Information America. Ms. Schreiner earned a B.A. in accounting from University of Georgia and M.B.A in Finance from Georgia State University. She is a certified public accountant, certified diversity professional and a certified diversity, equity, and inclusion coach.

William T. Shaw has served as controller of the Bank since 2014, being promoted from first vice president to senior vice president effective on January 1, 2019. Mr. Shaw oversees the Bank’s accounting, financial reporting, accounting policy, budgeting, and derivatives hedge accounting. Mr. Shaw joined the Bank in 2008 as manager of accounting policy and was subsequently promoted to director of accounting policy and financial reporting. Prior to joining the Bank, Mr. Shaw served as assistant controller for First Charter Corporation, Director of SEC reporting for Novelis Inc., manager of inspections with the Public Company Accounting Oversight Board, and was a manager with PricewaterhouseCoopers LLP. He received his B.S. in accounting and Master’s Degree in accountancy from Brigham Young University. He is also a certified public accountant.

Tomeka L. Strickland has served as senior vice president, director of community investment services since April 2023. Previously she served as first vice president and associate director of community investment services from January 2021 to April 2023. She served as interim vice president and associate director of community investment services from November 2019 to December 2021. In her role, she oversees the department’s daily operations, intake, underwriting, decisioning, funding, asset management, multifamily and homeownership real estate equity portfolios, technology, and reporting. As the community investment officer for the Bank, Ms. Strickland meets regularly with the Affordable Housing Advisory Council, member financial institutions, developers, and other community stakeholders to better understand the district’s community lending needs and to educate audiences on ways to leverage the Bank’s affordable housing and community lending products and services. She joined the Bank in 2001 as a systems specialist. From 2014 through 2019, she served as assistant vice president, systems and reporting manager, responsible for regulatory and governance reporting, technology projects, user acceptance testing, and records management. Prior to joining the Bank, Ms. Strickland worked for Bank of America and NationsBank from 1993 to 2000 serving in various treasury management services and project management roles.

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Item 11. Executive Compensation.

Compensation Discussion and Analysis

Introduction

This section describes and analyzes the Bank’s 2024 compensation program for:

•the chief executive officer;

•the chief financial officer; and

•the three other most highly-compensated executive officers who were serving as executive officers on December 31, 2024.

These executive officers are collectively referred to as the Bank’s “named executive officers.”

The Bank’s named executive officers during 2024 are identified in the following table.

Name	Title
Kirk R. Malmberg	President and Chief Executive Officer
Haig H. Kazazian, III	Executive Vice President and Chief Financial Officer
Alp E. Can	Executive Vice President and Chief Risk Officer
K. Annette Hunter	Executive Vice President and Director of Business Operations
Reginald T. O’Shields	Executive Vice President and Chief Legal and Compliance Officer

Philosophy and Objectives

The Bank’s compensation philosophy and objectives are to attract, motivate, and retain high caliber financial services executives capable of achieving strategic business initiatives, enhancing business performance and increasing member value. The Bank’s compensation program is designed to reward this performance and enhanced value and to offer competitive compensation elements that align its executives’ incentives with the interests of its members. To mitigate unnecessary or excessive risk-taking by executive management, the Bank’s incentive compensation plan contains overall Bank performance goals that are dependent on an aggregation of transactions throughout the Bank and that cannot be individually altered by executive management. The incentive compensation plan contains quantitative components that are evaluated by the board of directors. Additionally, the board of directors maintains discretionary authority over all incentive compensation awards, giving the board of directors the flexibility to review Bank performance throughout the year and to adjust incentive compensation accordingly.

Elements of Compensation

The Bank compensates its executive officers with a combination of base salary, incentive compensation, and benefits. The Bank is unable to offer equity-related compensation because it is a cooperative, and only member financial institutions may own its capital stock. Accordingly, the Bank offers other compensation elements, such as qualified and non-qualified defined benefit and defined contribution retirement plans, to motivate long-term performance and encourage retention. Because the Bank is exempt from federal taxes, the deductibility of compensation is not relevant to compensation plan design. The elements of the Bank’s compensation program for executive officers, and the objective of each compensation element, are described below.

Base salary. Base salary is established on the basis of the ongoing duties associated with managing a particular set of functions at the Bank and provides an amount of fixed compensation. Each executive’s base salary is also used as a basis in calculating the executive’s annual incentive award opportunity, as described below.

Incentive compensation. The Bank provides an annual cash award opportunity under its Incentive Compensation Plan (ICP) to executive officers based on the achievement of quantitative goals set and evaluated by the board of directors. To promote consistently high corporate performance on a long-term basis and enhance the retention of key senior executive officers, payment of fifty percent of any ICP granted to a named executive officer is deferred and distributed over a three-year period, together with positive or negative returns (Deferred Incentives). The named executive officers’ ICP awards and Deferred

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Incentives are subject to adjustment or forfeiture in certain events as described below under “2024 Weights and Awards-Incentive Compensation Plan Award Adjustment or Forfeiture.”

Benefits. The Bank provides retirement benefits to promote executive retention, and the executive officers are also eligible to participate in the same benefit plans that are made available to other employees of the Bank, such as health, group term life and long-term disability coverage. The Bank provides limited perquisites to executive officers.

Executive Compensation Process

Board and committee consideration of executive compensation. The Bank’s board of directors establishes the Bank’s executive compensation philosophy and objectives and has final approval of any compensation decisions related to the Bank’s chief executive officer (CEO), all officers reporting directly to the CEO who are senior vice presidents or higher, and any officer determined to be a named executive officer in the prior year. The governance and compensation committee of the board of directors advises and assists the board and makes recommendations to the board relating to compensation of such officers.

The CEO reviews and recommends to the board the base salary of the officers who report directly to him and who are senior vice president and higher level officers. The CEO also approves the base salary of all other senior vice president officers (other than the chief audit officer) within an overall budget approved by the board of directors.

Use of compensation consultant. The governance and compensation committee of the board of directors selected and engaged Aon plc (Aon) to provide assistance in evaluating the Bank’s executive compensation programs for 2024. Aon reported directly to the committee and the board with respect to executive compensation.

Consideration of competitive compensation levels. The Bank’s executive compensation program is designed to be appropriately competitive with prevailing practices in the broader financial services industry, consistent with the Bank’s business and risk profile. As part of each compensation review process for 2024, the board considered base salary, bonus compensation, total cash compensation, long-term compensation and total direct compensation at two peer groups consisting of (1) the other FHLBanks and (2) commercial banks with assets between $10 billion and $20 billion, consistent with guidance provided by the Finance Agency. The companies included in these peer groups are listed below in “Compensation Decisions for 2024 – Overview.” With respect to Mr. Malmberg and Mr. Kazazian, the board also considered the peer group of public proxy peers with assets between $10 billion and $20 billion. Generally, it is the Bank’s overall intent to provide executive officers with total direct compensation, comprised of base salary and targeted incentive opportunities, at or above the competitive market median for comparable positions, recognizing other comparable financial institutions provide equity awards that the Bank is unable to provide. However, when setting the compensation for the Bank’s executives, the board did not target any named executive officer’s compensation to a specific quartile of such executive officer’s comparable position in the peer groups.

The Bank is exempt from SEC proxy rules and certain compensation disclosure that is required in proxy statements and accordingly does not provide member advisory “say on pay” votes regarding executive compensation.

Finance Agency oversight of executive compensation. Pursuant to the Housing and Economic Recovery Act, the Director prohibits the FHLBanks from providing to any executive officer compensation that is not reasonable and comparable with compensation for employment in other similar businesses involving similar duties and responsibilities. FHLBanks may not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director. Pursuant to this authority and a Finance Agency final rule on executive compensation (12 CFR Part 1230), the FHLBanks are required to report to the Director all compensation actions relating to the president, the chief financial officer, and the three other most highly compensated officers at least 30 days in advance of any board decision with respect to those actions, and at least 60 days prior to entering into any written arrangement that provides incentive awards to any executive officer. At any time before an executive compensation action is taken, the Director may require an FHLBank to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, or prohibit the action. The Housing and Economic Recovery Act also sets rules on permissible “golden parachute” payments and authorizes the Director to prohibit the Bank from making any such payments to its officers, employees, and directors. The Director has the power to approve, disapprove, or modify the executive compensation of the FHLBanks.

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In addition, Finance Agency Advisory Bulletin 2009-AB-02 established five principles for executive compensation by the FHLBanks and the Office of Finance:

•executive compensation must be reasonable and comparable to that offered to executives in similar positions at other comparable financial institutions;

•executive incentive compensation should be consistent with sound risk management and preservation of the par value of the FHLBank’s capital stock;

•a significant percentage of an executive’s incentive-based compensation should be tied to longer-term performance and outcome indicators;

•a significant percentage of an executive’s incentive-based compensation should be deferred and made contingent upon the FHLBank’s financial performance over several years; and

•the FHLBank’s board of directors should promote accountability and transparency in the process of setting compensation.

The Finance Agency requires that the FHLBanks maintain a risk management program to assess and manage potential risks relating to management’s performance goals, objectives, and compensation structure. The Finance Agency may prohibit or restrict a significantly undercapitalized FHLBank from taking certain actions relating to the compensation of its executives, including paying any bonus to an executive officer or increasing an executive officer’s salary, without the prior written approval of the Director. The Bank was not undercapitalized during 2024.

Compensation Decisions for 2024

Overview

The board of directors bases its compensation decisions on both objective criteria related to the Bank’s performance and subjective criteria related to each executive’s performance. Among the various criteria the board considered in evaluating the named executive officers’ performance were:

•achievement of performance objectives for 2024 as determined by the board;

•fulfillment of the Bank’s public policy mission;

•demonstration of leadership and vision for the Bank;

•implementation and maintenance of effective business strategies and operations, legal and regulatory compliance programs, risk management activities, and internal controls commensurate with the Bank’s size, scope, and complexity;

•establishment and maintenance of strong relationships between the Bank and its customers, members, employees,

regulators, and other stakeholders; and

•the Bank’s 2024 financial results.

As part of the compensation review process for compensation to be paid in 2024, the board engaged Aon in 2023 to provide competitive market compensation ranges for Mr. Malmberg, Mr. Kazazian, Mr. Can, Mr. O’Shields, and Ms. Hunter (Aon Study). The Aon Study involved an analysis of total compensation for comparable positions in the following peer groups (i) all other FHLBanks and the Office of Finance and (ii) other 50 institutions, which are commercial banks with assets between $10 billion and

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$20 billion:

(i) First peer group:

Federal Home Loan Bank of Boston

Federal Home Loan Bank of Chicago

Federal Home Loan Bank of Cincinnati

Federal Home Loan Bank of Dallas

Federal Home Loan Bank of Des Moines

Federal Home Loan Bank of Indianapolis

Federal Home Loan Bank of New York

Federal Home Loan Bank of Pittsburgh

Federal Home Loan Bank of San Francisco

Federal Home Loan Bank of Topeka

Federal Home Loan Banks - The Office of Finance

(ii) Second peer group:

Apple Financial Holdings	Independent Bank - TX
Axos Financial, Inc.	Independent Bank Corp.
BancFirst Corporation	International Bancshares Corporation
Bank of North Dakota	Lakeland Bancorp, Inc.
Banner Bank	Mechanics Bank
Berkshire Bank	Merchants Bank of Indiana
Bremer Financial Corporation	Mutual of Omaha
Central Bancompany, Inc	NBT Bancorp Inc.
Columbia Bank – NJ	Northwest Bank – PA
Community Bank System, Inc.	OceanFirst Bank
CVB Financial Corp.	PlainsCapital Bank
Dime Community Bancshares, Inc.	Provident Financial Services
Eagle Bancorp Inc. - MD	Renasant Corporation
Enterprise Financial Services Corp.	Sandy Spring Bank
FB Financial Corporation	Seacoast Banking Corporation of Florida
First BanCorp – PR	ServisFirst Bancshares, Inc.
First Bancorp NC	State Bank & Trust
First Busey Corporation	Stellar Bancorp, Inc.
First Financial Bancorp - OH	TowneBank
First Financial Bankshares, Inc.	TriState Capital Bank
First Foundation Inc.	Trustmark Corporation
First Merchants Bank	Veritex Holdings, Inc.
First United Bank - OK	Washington Trust Bank
Hilltop Holdings Inc.	WesBanco, Inc.
Hope Bancorp, Inc.	WSFS Financial Corporation

The value of retirement plans and other benefits were not specifically considered as part of the Aon Study. To account for differences in the size and scope of the comparable positions included in the Aon Study, low quartile data (25th percentile), median data (50th percentile) or high quartile data (75th percentile) were selected for each of those jobs to develop a market composite comparison for each of the positions held by the applicable named executive officers. In the case of the other FHLBanks, executive to executive comparisons were made at the high quartile to account for the Bank’s size and scope. In the case of the commercial bank peers, comparisons were used to identify the jobs with the closest functional responsibilities to the applicable named executive officers, and executive comparisons were made at the median data. For purposes of the Bank’s comparative analysis, total direct compensation within +/- 15 percent of the median market composite compensation was considered to be within the competitive market range.

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2024 Base Salary

In setting the base salaries of the named executive officers for 2024, the board took into consideration the results of the Aon Study to provide market-competitive compensation levels, and other factors such as engagement and retention of a highly effective executive team, role responsibilities compared to the peer groups, individual experience and performance and overall Bank performance. After reviewing the Bank’s performance and the performance of each of the named executive officers during fiscal year 2023, the board set the named executive officers’ salaries at the following amounts for 2024:

Name	2024 Base Salary		Percent Change from 2023
Kirk R. Malmberg	$	1,023,750	5.00
Haig H. Kazazian, III	504,000		5.00
Alp E. Can	541,000		4.04
K. Annette Hunter	412,000		3.00
Reginald O'Shields	484,000		4.09

The board based these decisions, in part, on the following:

•Business results generated during 2023;

•Safe and sound operations during 2023; and

•Comparable compensation provided at similar organizations, as reflected in the Aon Study

Incentive Compensation

The following table presents the 2024 award opportunities, as established by the board under the ICP, expressed as a percentage of base pay earnings during the year.

2024 Award Opportunities

	Percent of Base Salary (%)
Title	Threshold	Target	Maximum
President and Chief Executive Officer	50.00	75.00	100.00
Executive Vice Presidents	35.00	60.00	85.00

For 2024, the board established six incentive goals under the ICP, which correlated to the member focus, affordable housing and community development focus, financial focus, risk management performance and diversity, equity, and inclusion priorities reflected in the Bank’s strategic plan. Each of these goals is described in more detail below. Awards for the chief risk officer also included individual and team goals. The board of directors established threshold, target, and maximum performance levels for each quantitative incentive goal. Each goal’s “target” performance level is consistent with the assumptions set forth in the Bank’s annual operating budget, forecasts, and strategic plan. The “threshold” and “maximum” performance levels are designed to reward partial attainment of the goal and performance beyond the forecasted levels, respectively. Factors considered in setting the various performance levels include management’s projections concerning economic conditions, interest rates, demand for advances products, and balance sheet structure.

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The following tables provide the weights and awards for each performance target as a percentage of base salary that the board established for 2024. A description of each of the performance metrics, and the performance against such metrics in 2024, is provided following the table.

2024 Weights and Awards

President and Chief Executive Officer
(Mr. Malmberg)		Percent of Base Salary
Goal	Weight (%)	Threshold (%)	Target (%)	Maximum (%)
Member Focus: Member Engagement	20.00	10.00	15.00	20.00
Housing Mission Focus: Community Investment Cash Advance Volume	15.00	7.50	11.25	15.00
Housing Mission Focus: Voluntary Program Launch and Commitment/Disbursement	15.00	7.50	11.25	15.00
Financial Focus: Return on Equity as a Spread to Average SOFR	20.00	10.00	15.00	20.00
Risk Management Focus: Risk Management Key Risk Indicators	20.00	10.00	15.00	20.00
Diversity, Equity, and Inclusion	10.00	5.00	7.50	10.00
Total	100.00	50.00	75.00	100.00
Executive Vice President
(Mr. Kazazian, Ms. Hunter, and Mr. O’Shields)		Percent of Base Salary
Goal	Weight (%)	Threshold (%)	Target (%)	Maximum (%)
Member Focus: Member Engagement	20.00	7.00	12.00	17.00
Housing Mission Focus: Community Investment Cash Advance Volume	15.00	5.25	9.00	12.75
Housing Mission Focus: Voluntary Program Launch and Commitment/Disbursement	15.00	5.25	9.00	12.75
Financial Focus: Return on Equity as a Spread to Average SOFR	20.00	7.00	12.00	17.00
Risk Management Focus: Risk Management Key Risk Indicators	20.00	7.00	12.00	17.00
Diversity, Equity, and Inclusion	10.00	3.50	6.00	8.50
Total	100.00	35.00	60.00	85.00
Executive Vice President and Chief Risk Officer
(Mr. Can)		Percent of Base Salary
Goal	Weight (%)	Threshold (%)	Target (%)	Maximum (%)
Risk Management Focus: Risk Management Key Risk Indicators	40.00	14.00	24.00	34.00
Diversity, Equity, and Inclusion	10.00	3.50	6.00	8.50
Individual and Team Goals	50.00	17.50	30.00	42.50
Total	100.00	35.00	60.00	85.00

The Member Focus - Member Engagement goal measured the average utilization of the Bank’s products and services by members during 2024. Performance under this measure was determined by calculating the total product utilization by members as of December 31, 2024, referred to as activity points, over the daily average number of members for each business day of 2024. The performance goals were 2.10 (threshold), 2.40 (target) and 2.75 (maximum) activity points per member. This goal was substantially the same for each named executive officer, with the exception of Mr. Can (who did not have this performance metric), and performance was determined on an overall Bank-wide basis. As of December 31, 2024, the Bank achieved a member activity performance score of 2.721 engagement points per member. Based on 2024 performance, the board awarded between the target and maximum level for this goal.

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The Housing Mission Focus - Community Investment Cash Advance Volume goal measured the disbursement of new advances to members under the Community Investment Program or Economic Development Program during 2024. Under this measure, the performance goals required disbursement of $350 million (threshold), $550 million (target), or $750 million (maximum) in advances under the Community Investment Program or Economic Development Program. This goal was substantially the same for each named executive officer, with the exception of Mr. Can (who did not have this performance metric), and performance was determined on an overall Bank-wide basis. As of December 31, 2024, $1.04 billion in advances were disbursed. Based on that achievement, the board awarded the maximum level for this goal.

The Housing Mission Focus – Voluntary Program Launch and Disbursement goal measured the launch and disbursement of the Workforce Housing Plus+ program to disburse downpayment assistance funds to qualifying homebuyers in 2024. Under this measure, the performance goals required disbursement and/or commitment of 25% (threshold), 50% (target), and 85% (maximum) of the funds allocated to the Workforce Housing Plus+ Voluntary Program. This goal was substantially the same for each named executive officer, with the exception of Mr. Can (who did not have this performance metric), and performance was determined on an overall Bank-wide basis. As of December 31, 2024, 100% of funds were disbursed and/or committed. Based on that achievement, the board awarded the maximum level for this goal.

The Risk Management Focus - Risk Management Key Risk Indicator goal involved managing the Bank’s key risks at appropriate tolerance levels. Under this measure, the board and management defined the Bank’s key risks and the tolerance levels with respect to those risks. The Bank then scored each key risk based upon whether the Bank was satisfying the defined tolerance level. If the Bank was performing at or better than the defined tolerance level for all key risks, a risk appetite performance score of 100 was achieved. A deduction was applied to the risk appetite performance score for each key risk performing below the defined tolerance level. The amount that was deducted depended upon the extent of the underperformance. The performance goals were 85.0 percent risk appetite performance score (threshold), 95.0 percent risk appetite performance score (target), and 100 percent risk appetite performance score (maximum). This goal was substantially the same for each named executive officer, with the exception of Mr. Can (whose overall weighting for this goal was higher, consistent with his role as chief risk officer), and performance was determined on an overall Bank-wide basis. As of December 31, 2024, the Bank achieved a risk appetite performance score of 98.68% percent. Based upon that score, the board awarded between the target and maximum level for this goal.

The Financial Focus - Return on Equity Spread to Average SOFR performance goal related to the Bank’s ROE amount in excess average SOFR. For ICP purposes, ROE is adjusted for additional voluntary housing contributions. This performance measure reflects the Bank’s ability to pay quarterly dividends to its members and was established with a sliding scale so that the spread performance metrics become smaller as SOFR increases and remained subject to certain accounting adjustments which were not deemed necessary. For 2024, the performance goals were 130 basis points (threshold), 160 basis points (target), and 180 basis points (maximum). This goal was substantially the same for each named executive officer, with the exception of Mr. Can (who did not have this performance metric), and performance was determined on an overall Bank-wide basis. In 2024, the Bank’s adjusted ROE spread to average SOFR was 369 basis points. Based upon that calculation, the board awarded the maximum level for this goal.

The Diversity, Equity, and Inclusion performance goal aligned with the Bank’s commitment to its diversity, equity, and inclusion program and measured the Bank’s ability to operate in accordance with its board approved diversity, equity, and inclusion strategy. This performance goal utilized the four quantitative goals contained in the Bank’s 2024 diversity, equity, and inclusion operational plan. These four goals are in the areas of workforce, supplier, capital markets and partnership. Under this measure, the performance goals required achievement of two (threshold), three (target), or four (maximum) of the four quantitative goals. In 2024, four of these goals were achieved. Based on that achievement, the board awarded the maximum level for this goal.

In 2024, the board of directors did not establish individual performance goals for Mr. Malmberg, Mr. Kazazian, Ms. Hunter, or Mr. O’Shields. Mr. Can’s individual and team goals included collateral system planning and risk assessment program design. Based upon performance in 2024, Mr. Can was awarded the maximum level for these goals.

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The following table presents the final award level associated with each performance goal and total award amounts for each named executive officer.

2024 Incentive Compensation Plan Awards

Name	Member Engagement %	Housing Mission Focus: Community Investment Cash Advance Volume	Housing Mission Focus: Voluntary Program Launch and Commitment/Disbursement	ROE Spread to average SOFR (%)	Risk Management: Key Risk Indicators (%)	Diversity, Equity and Inclusion (%)	Individual/Team Goals (%)	Total Award (%) of Base Salary	Overall Award Level	Total Calculated Award		Deferred Incentive
Kirk R. Malmberg	19.58	15.00	15.00	20.00	18.68	10.00	N/A	98.26	Target - Max	$	1,005,966	$	502,983
Haig H. Kazazian, III	16.58	12.75	12.75	17.00	15.68	8.50	N/A	83.26	Target - Max	419,646		209,823
Alp E. Can	N/A	N/A	N/A	N/A	31.36	8.50	42.50	82.36	Target - Max	445,561		222,781
K. Annette Hunter	16.58	12.75	12.75	17.00	15.68	8.50	N/A	83.26	Target - Max	343,044		171,522
Reginald T. O'Shields	16.58	12.75	12.75	17.00	15.68	8.50	N/A	83.26	Target - Max	402,993		201,497

The amount of incentive compensation earned by each of the named executive officers under the ICP, as shown in the “Total Calculated Award” column in the preceding table, is included in the “Non-Equity Incentive Compensation Plan” column in the Summary Compensation Table below, along with interest earned in 2024 on Deferred Incentives. For the Bank’s current named executive officers, the Deferred Incentive portion will be paid, together with positive or negative returns (equal to the Bank’s return on equity for the applicable year) over three years (2026-2028) on the following schedule, subject to certain adjustment and forfeiture provisions discussed below:

Deferred Incentive Payout Schedule

Payment Year	Payment
2026	1/3 of balance (± 1-year return)
2027	1/2 of balance (± 2-year return)
2028	Remaining balance (± 3-year return)

Incentive Compensation Plan Award Adjustment or Forfeiture. The named executive officers’ ICP awards and Deferred Incentives are subject to adjustment or forfeiture in certain events. Under the terms of the ICP, the board of directors has reserved the right to amend, modify or terminate the ICP, in whole or in part, and to increase, decrease, terminate without penalty or payment, or otherwise modify any ICP award, at any time for any reason or no reason.

The board of directors has the authority to (i) equitably adjust ICP performance measures for a particular year under the ICP to preserve the benefits or potential benefits intended to be made available to the participants for any merger, consolidation, rights offering, separation, reorganization or liquidation or any other change in the capital structure of the Bank and (ii) adjust Earned Awards (as defined in the ICP) for both current and prior years if the board determines in good faith that the amounts of any Earned Awards were based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria as defined in the ICP. The board may, in its sole discretion, decline to adjust the terms of any outstanding Award, as defined, if it determines that such adjustment would violate applicable law or result in adverse tax consequences to the participant or to the Bank.

If as of the time any payment of the Deferred Incentive otherwise would be due, the board of directors has made a good faith determination that the Bank has not achieved certain objective financial performance threshold measures such as retained earnings (net of accumulated other comprehensive income (loss)), market value of equity/par value of capital stock, regulatory capital to assets ratio, and positive annual net income, as determined at the board’s discretion, the board may in its sole discretion elect to reduce or eliminate such payment of the Deferred Incentive.

No adjustments to ICP performance measures or Earned Awards were made for ICP awards, nor reductions or eliminations of payments of Deferred Incentives were made for named executive officers in 2024.

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If a named executive officer’s employment with the Bank terminates for any reason prior to payment of any earned incentive compensation, all remaining payments will be forfeited, subject to certain limited exceptions if the named executive officer dies, becomes disabled, or retires with a combination of age and years of service to the Bank totaling at least 70.

Retirement Benefits

The named executive officers are eligible to participate in certain tax-qualified and non-qualified defined benefit, defined contribution, and deferred compensation plans. These plans are described in more detail below in the sections entitled “Executive Compensation — Retirement Benefits” and “— Deferred Compensation.”

The Bank’s retirement benefit plans are a vital component of the Bank’s retention strategy for executive officers, particularly because many other competing organizations provide executive officers with economic benefits based on equity interests in the employer, oftentimes in addition to similar retirement benefits. The Bank is unable to offer equity-related compensation because it is a cooperative, and only member financial institutions may own its capital stock.

Perquisites and Other Benefits

All named executive officers are eligible to participate in the benefit plans that are made available to all employees of the Bank, including medical, dental, and vision insurance coverage, group term life and long-term disability insurance coverage, paid vacation, and sick leave. The named executive officers generally participate in these plans on the same basis and terms as all other employees.

The Bank offers the named executive officers a limited number of perquisites, including an annual physical examination, reimbursement for guest activities at certain business functions, and financial planning services. For Mr. Malmberg, the Bank also provides an automobile allowance of up to $1,500 per month. Because perquisites generally are limited, the board does not specifically consider perquisites when reviewing total compensation for any of the named executive officers.

Employment Arrangements and Severance Benefits

Other than the specific contractual arrangements discussed below, all Bank employees are employed under an “at will” arrangement. Accordingly, an employee may resign employment at any time, and the Bank may terminate the employee’s employment at any time for any reason, with or without cause.

The board of directors may, in its discretion, provide severance benefits to an executive officer in the event of termination of their employment. In determining whether severance compensation is appropriate, the board of directors considers both the factors underlying the termination of employment and the employment history of the executive officer. The Bank does not provide a “gross up” benefit on taxes incurred with respect to any severance.

Employment Agreement. The Bank entered into an Employment Agreement with Mr. Malmberg effective on May 28, 2021 (Employment Agreement). Under the Employment Agreement, Mr. Malmberg’s employment with the Bank may be terminated by the Bank with or without “cause,” or by Mr. Malmberg with or without “good reason,” as defined in the Employment Agreement. Unless earlier terminated by either party as provided therein, the Employment Agreement had an initial three-year term and will continue to extend automatically for subsequent one-year periods unless either party elects not to renew. Mr. Malmberg is entitled to participate in all incentive, savings, and retirement plans and programs available to senior executives of the Bank. The Employment Agreement also provides for certain severance benefits for Mr. Malmberg separately from those under the Change in Control Severance Plan, which are discussed below under “Potential Payments upon Termination or Change in Control.” This severance arrangement was an integral and necessary component of the Bank’s strategy to recruit Mr. Malmberg to the president and CEO position.

Change in Control Severance Plan. Effective January 1, 2017, the Bank adopted an Executive Change in Control Severance Plan (Severance Plan). The purpose of the Severance Plan is to facilitate the hiring and retention of senior executives capable of executing the Bank’s strategic priorities, to ensure their continued dedication to the Bank notwithstanding the possibility of a change in control, and to provide them with certain protection and benefits in the event of certain termination events following a defined change in control of the Bank. The board has designated Mr. Malmberg, Mr. Kazazian, Mr. Can, Ms. Hunter, and Mr. O’Shields as eligible and they participate in the Severance Plan. The Severance Plan is discussed below under “Potential Payments upon Termination or Change in Control.”

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Report of the Board of Directors

The board of directors of the Bank has reviewed and discussed the Compensation Discussion and Analysis above with management, and based on such review and discussion, the board of directors has determined that the Compensation Discussion and Analysis above should be included in the Bank’s Annual Report on Form 10-K.

The board of directors of the Bank has primary responsibility for establishing and determining the Bank’s compensation program. Therefore, this report is submitted by all current directors who were serving during 2024.

BOARD OF DIRECTORS

R. Thornwell Dunlap, III, Chair	Suzanne S. DeFerie, Vice Chair
Eduardo J. Arriola	Kathleen C. McKinney
James M. Burke	Brian P. McLaughlin
Kimberly A. Casiano	John B. Rucker
Susan F. Dewey	James M. Stubbs
Scott C. Harvard	Richard A. Whaley
William L. Lusk, Jr.

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Executive Compensation

Summary Compensation Tables

The following table presents a summary of cash and other compensation earned by the named executive officers for the years ended December 31, 2024, 2023, and 2022. It is important to read this table, and the other tables that follow, closely and in conjunction with the Compensation Discussion and Analysis. The narratives following the tables and the footnotes accompanying each table are important parts of each table.

2024 Summary Compensation Table

Name and Principal Position (a)	Year (b)	Salary (c)		Bonus (d) (1)		Non-Equity Incentive Plan Compensation (e) (2)		Change in Pension Value and Nonqualified Deferred Compensation Earnings (f) (3)		All Other Compensation (g) (4)		Total (h)
Kirk R. Malmberg President and Chief Executive Officer	2024	$	1,023,750	$	200	$	1,076,813	$	204,594	$	363,974	$	2,669,331
	2023	975,000		100		984,581		391,594		313,224		2,664,499
	2022	910,000		100		849,961		1		243,870		2,003,932
Haig H. Kazazian, III Executive Vice President and Chief Financial Officer	2024	504,000		200		450,820		344,000		31,216		1,330,236
	2023	480,000		100		418,846		740,000		30,541		1,669,487
	2022	440,000		7,100		355,301		—		30,352		832,753
Alp E. Can Executive Vice President and Chief Risk Officer	2024	541,000		200		478,213		—		174,276		1,193,689
	2023	520,000		100		443,838		159,000		169,866		1,292,804
	2022	470,000		15,100		364,965		—		111,031		961,096
K. Annette Hunter Executive Vice President and Director of Business Operations	2024	412,000		200		366,353		348,000		25,864		1,152,417
	2023	400,000		100		344,731		500,000		26,858		1,271,689
	2022	358,938		2,100		239,219		—		23,863		624,120
Reginald O'Shields Executive Vice President and Chief Legal and Compliance Officer	2024	484,000		200		433,540		233,000		32,444		1,183,184
	2023	465,000		2,100		406,228		500,000		32,763		1,406,091
	2022	440,000		100		355,126		—		32,182		827,408

__________

(1) The amounts in column (d) reflect an annual $200 employee appreciation bonus provided to all employees of the Bank. The Bank provides all employees of the Bank, including the named executive officers, a tax gross-up on this bonus, which amount is included in column (g).

(2) The amounts in column (e) reflect the dollar value of all earnings for services performed during the fiscal years ended December 31, 2024, 2023, and 2022 pursuant to awards under the ICP, even though fifty percent of the ICP awards for each year were subject to mandatory deferral and distribution over three years. As discussed in the Compensation Discussion and Analysis, payment of the 2024 non-equity incentive compensation awards was subject to a 30-day review period and receipt of non-objection by the Finance Agency. The Bank received written non-objection from the Finance Agency on February 14, 2025. The amounts in column (e) also include the dollar value of all interest during each year earned on Deferred Incentive related to ICP awards for prior fiscal years, in the following amounts for 2024: $70,847 for Mr. Malmberg, $31,174 for Mr. Kazazian, $32,652 for Mr. Can, $23,309 for Ms. Hunter, and $30,547 for Mr. O’Shields.

(3) The amounts in column (f) reflects the aggregate change in the actuarial present value of the named executive officer’s aggregate pension benefits under the Bank’s Pension and Defined Benefit Equalization Plan (DBEP) during each fiscal year, computed as described in footnote (1) to the 2024 Pension Benefits table. For Mr. Malmberg, Mr. Kazazian, Ms. Hunter, and Mr. O’Shields the aggregate actuarial present value for pension benefits under the Bank’s Pension and DBEP Plans increased by $204,594, $344,000, $348,000, and $233,000, respectively. For Mr. Can, the aggregate actuarial present value for pension benefits under the Bank’s Pension Plan decreased by $20,000. There were no above-market earnings on nonqualified deferred compensation during 2024. These plans are described in greater detail below under “Pension Benefits” and “Deferred Compensation.”

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(4) The amounts in column (g) for 2024 consist of the following amounts:

Name	Bank Contributions under the 401(k) Plan		Matching contributions under the Bank’s non-qualified Defined Contribution Benefit Equalization Plan		Perquisite (1)		Tax Gross-ups (2)		Total
Kirk R. Malmberg	$	20,700	$	324,339	$	18,846	$	89	$	363,974
Haig H. Kazazian, III	20,700		9,540		864		112		31,216
Alp E. Can	20,700		153,441		23		112		174,276
K. Annette Hunter	9,508		15,212		1,023		121		25,864
Reginald T. O'Shields	9,651		19,389		3,294		110		32,444

____________

(1) Perquisites are valued at the actual amounts paid by the Bank, and the value of each perquisite for each executive was less than $25,000. The Bank paid premiums for each named executive officer for the Bank’s Business Travel Accidental Death and Dismemberment Policy. The Bank provided Mr. Malmberg a $1,500 per month car allowance. The Bank provided Mr. Malmberg and Mr. Kazazian reimbursement for certain activities at business functions. The Bank provided Mr. Malmberg, Mr. Kazazian and Mr. O’Shields reimbursement for guest activities at certain business functions. The Bank provided Ms. Hunter, and Mr. O’Shields matching contributions in the Bank’s charitable giving program.

(2) The tax gross-up amounts represent withholding taxes on the employee appreciation bonus provided to all employees of the Bank.

Awards of Incentive Compensation in 2024

The following table provides information concerning each grant of an award to a named executive officer in 2024 under the ICP.

2024 Grants of Plan-Based Awards

	Estimated Future Payouts Under Non-Equity Incentive Plan Awards
Name (a)	Threshold (b) (1)		Target (c) (1)		Maximum (d) (1)
Kirk R. Malmberg	$	511,875	$	767,813	$	1,023,750
Haig H. Kazazian, III	176,400		302,400		428,400
Alp E. Can	189,350		324,600		459,850
K. Annette Hunter	144,200		247,200		350,200
Reginald O'Shields	169,400		290,400		411,400

____________

(1) Columns (b-d) reflect threshold, target, and maximum payment opportunities under the Bank’s ICP for the fiscal year ended December 31, 2024. The actual amounts earned pursuant to the ICP during 2024 are reported under column (e) of the 2024 Summary Compensation Table. Fifty percent of the actual amount earned is subject to mandatory deferral. For information on these awards, see “Compensation Discussion and Analysis. Incentive Compensation.”

Retirement Benefits

Pension Benefits

The 2024 Pension Benefits table below provides information with respect to the Pentegra Plan, which is the Bank’s tax-qualified pension plan (Pension Plan), and the Bank’s non-qualified Defined Benefit Equalization Plan (DBEP). The table shows the actuarial present value of accumulated benefits as of December 31, 2024, for each of the named executive officers and the number of years of service credited to each named executive under each plan.

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Pension Plan

The pension benefits payable under the Pension Plan are based on a pre-established defined benefit formula that provides for an annual retirement allowance and a retirement death benefit. A participant’s benefit in the plan vests upon completion of five years of service with the Bank, and the payout amount depends on the date of the participant’s retirement, as described below.

Employees hired before July 1, 2005

For participants hired on or before July 1, 2005, the Pension Plan generally provides an annual retirement allowance equal to 2.50 percent of the participant’s highest consecutive three-year average compensation for each year of credited service under the plan (not to exceed 30 years). Average compensation is defined as base salary and annual short-term incentive compensation.

For these participants, the standard retirement age is 65, with reduced early retirement benefits available at age 45. If the participant continues to work for the Bank until the sum of the participant’s age and years of service with the Bank equals at least 70, the annual benefit payable following retirement is reduced by 1.50 percent for each year that retirement precedes normal retirement age. If the participant terminates employment before the participant’s age and years of service with the Bank total 70, the annual benefit payable following retirement is reduced by six percent for each year between age 64 and 60, by four percent for each year between age 59 and 55, and by three percent for each year between age 54 and 45, in each case, that retirement precedes normal retirement age. For these participants, lump sum payments are available beginning at age 50.

Mr. Kazazian, Mr. Can, Mr. O’Shields and Ms. Hunter participate in the Pension Plan on these terms because they were hired before July 1, 2005. Each of them has attained eligibility for immediate early retirement. Mr. Malmberg also participates in the Pension Plan on these terms and at a level consistent with his original date of hire. (Mr. Malmberg received a distribution from the Pension Plan following his retirement in 2020; but he re-entered the Pension Plan when he was appointed CEO in 2021.)

Employees hired between July 1, 2005, and February 28, 2011

For participants hired between July 1, 2005, and February 28, 2011, the Pension Plan generally provides an annual retirement allowance equal to 1.50 percent of the participant’s highest consecutive five-year average compensation for each year of credited service under the plan (not to exceed 30 years). Average compensation is defined as base salary only. For these participants, the standard retirement age is 65, with reduced early retirement benefits available at age 55. If the participant terminates employment before reaching age 65, the annual benefit payable following retirement is reduced by six percent for each year between age 65 and 60, and by four percent for each year between age 60 and 55, in each case, that retirement precedes normal retirement age. These payments are not available for the named executive officers.

Employees hired on or after March 1, 2011

The Pension Plan was closed to new participants effective March 1, 2011.

DBEP

Payments under the Pension Plan may be limited due to federal tax code limitations. The DBEP exists to restore those benefits that executives otherwise would forfeit due to these limitations. The DBEP operates using the same benefit formula and retirement eligibility provisions as described above under the Pension Plan. Because the DBEP is a non-qualified plan, the benefits received from this plan do not receive the same tax treatment and funding protection as the Pension Plan. Mr. Kazazian, Mr. O’Shields and Ms. Hunter participate in the DBEP. (Mr. Malmberg did not re-enter participation in the DBEP upon his appointment as CEO in 2021.)

Death Benefits

Death benefits, which do not vary based on date of hire, also are available under the Pension Plan and the DBEP. If an employee dies while in active service, their beneficiary is entitled to a lump sum amount equal to the commuted value of 120 monthly retirement payments. If a former employee dies while in retirement, having elected the normal form of retirement benefits, their beneficiary also is entitled to a lump sum amount equal to the commuted value of 120 monthly retirement payments less payments received before the former employee died.

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2024 Pension Benefits

Name (a)	Plan Name (b)	Number of Years of Credited Service (c)	Present Value of Accumulated Benefit (d) (1)		Payments during last fiscal year (e)
Kirk R. Malmberg (2)	Pension Plan	27.58	$	2,603,000	$	154,594
	DBEP	N/A	—		—
Haig H. Kazazian, III	Pension Plan	30.00	2,233,000		—
	DBEP	30.00	3,485,000		—
Alp E. Can	Pension Plan	19.58	844,000		—
	DBEP	N/A	—		—
K. Annette Hunter	Pension Plan	22.25	1,795,000		—
	DBEP	22.25	1,800,000		—
Reginald T. O'Shields	Pension Plan	21.58	1,187,000		—
	DBEP	21.58	1,888,000		—

____________

(1) The “Present Value of Accumulated Benefit” is the present value of the annual pension benefit that was earned as of December 31, 2024, assuming retirement at age 65. Benefits under the Pension Plan were calculated using a 5.54 percent discount rate; a 4.85 percent discount rate was used to calculate benefits under the DBEP.

(2) Mr. Malmberg did not re-enter participation in the DBEP upon his appointment as CEO in 2021.

Deferred Compensation

Each named executive officer of the Bank is eligible to participate in the Bank’s non-qualified, elective deferred compensation plan (DCP). Additionally, each named executive officer is also eligible to participate in the Bank’s consolidated non-qualified Benefit Equalization Plan (BEP). The BEP includes both a defined benefit component (DBEP) described above, and defined contribution component (DCBEP) described below. Directors are eligible to participate in the DCP but are not eligible to participate in the BEP.

The DCP permits a participant to defer all or a portion of their compensation, including base salary and awards under the ICP, and to select the method of determining the earnings on such deferred compensation, based on a range of mutual fund options designed to mirror the Bank’s 401(k) Plan. DCP participants also may select an interest crediting rate based on the Bank’s return on equity. Distributions from the DCP may be made either in a specific year, whether or not a participant’s employment has ended, or at a time that begins at or after the participant’s retirement or separation. Participants may elect to receive either a lump sum distribution or annual installment payments over periods ranging from two to five years. The Bank does not match contributions to the DCP.

Named executive officers are permitted to defer up to 40.0 percent of salary under the Bank’s 401(k) Plan and the DCBEP. The Bank matches the amount contributed by a participant up to six percent of base salary.

The DCBEP, like the 401(k) Plan, is self-directed and provides participants with a range of mutual fund options. Participants earn a market rate of return based on the mutual funds selected. Distributions from the DCBEP begin when a participant’s employment has ended. Participants may elect to receive either a lump sum distribution or annual installment payments over periods ranging from two to five years. These plans are designed to encourage additional voluntary savings and to offer a valuable financial planning tool. All Bank contributions to the DCBEP are subject to a two-year vesting period.

The board amended the BEP, effective January 1, 2018, to:

•provide that any executive hired or promoted to the level of senior vice president or higher after January 1, 2018 (“eligible executives”), will not be eligible to receive the defined benefit feature of the BEP;

•provide senior vice presidents hired or promoted after January 1, 2018 with a contribution equivalent to 10.0 percent of base pay offset by contributions to the 401(k) Plan; and

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•provide senior vice presidents hired or promoted after January 1, 2018 with a contribution equivalent to 10.0 percent of incentive compensation.

The board amended the BEP, effective April 1, 2021, to:

•define a new category of executives as eligible participants: those who were hired or promoted to chief executive officer on or after April 1, 2021 and regardless of participation in the Bank’s qualified pension plan but who are not eligible to accrue benefits under the Bank's non-qualified defined benefit equalization plan;

•provide eligible executives with a contribution equivalent to 20 percent of base pay offset by contributions to the 401(k) Plan; and

•provide eligible executives with a contribution equivalent to 20.0 percent of any bonuses paid in the current year.

The board further amended the BEP, effective July 2, 2022 to:

•define a new category of executives as eligible participants: those who occupy the chief risk officer role as of July 1, 2022 and regardless of participation in the Bank’s qualified pension plan but who are not eligible to accrue benefits under the Bank's non-qualified defined benefit equalization plan;

•provide eligible executives with a contribution equivalent to 20.0 percent of base pay offset by contributions to the 401(k) Plan; and

•provide eligible executives with a contribution equivalent to 20.0 percent of any bonuses paid in the current year.

As of February 1, 2023, the BEP was amended and restated to streamline administration of the plan and the eligibility for participation in the DCBEP, the DBEP, and other benefits applicable to the DCBEP. The amended and restated BEP has not changed the benefits awarded to the named executive officers nor the eligibility criteria applying to them.

The following table presents compensation earned and deferred in 2024, and earnings on, or distributions of, such amounts. In accordance with SEC rules, the amounts shown in the table do not include any amounts in respect of the 401(k) Plan.

2024 Nonqualified Deferred Compensation

Name (a)	Executive Contributions in Last Fiscal Year (b) (1)		Bank Contributions in Last Fiscal Year (c) (2)		Aggregate Earnings In Last Fiscal Year (d) (3)		Aggregate Withdrawals / Distributions (e)		Aggregate Balance at Last Fiscal Year End (f) (4)
Kirk R. Malmberg	$	51,542	$	324,339	$	151,319	$	(36,907)	$	1,265,681
Haig H. Kazazian, III	—		9,540		18,113		—		119,975
Alp E. Can	9,460		165,242		137,354		—		852,561
K. Annette Hunter	59,685		15,212		72,949		—		679,199
Reginald O'Shields	66,300		19,389		207,065		—		1,498,894

_________

(1) Amounts under column (b), if any, are included in salary reported for 2024 in column (c) of the 2024 Summary Compensation Table.

(2) Amounts under column (c), if any, are included in all other compensation amounts reported for 2024 in column (g) of the 2024 Summary Compensation Table.

(3) Amounts under column (d), if any, reflect actual market returns for mutual funds selected by participants.

(4) To the extent that a participant was a named executive officer in prior years, executive and Bank contributions included in the “Aggregate Balance at Last Fiscal Year End” column have been reported as compensation in the Summary Compensation Table for the applicable year.

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Potential Payments upon Termination or Change in Control

Malmberg Employment Agreement

Mr. Malmberg’s Employment Agreement provides that upon the Bank’s termination of his employment for any reason other than “cause,” or upon Mr. Malmberg’s termination of his employment for “good reason,” the Bank will pay a total of one year’s base salary in effect at the date of termination in a lump sum within 30 days after Mr. Malmberg executes and delivers a general release of claims to the Bank, plus an amount equal to the amount that would have been payable pursuant to Mr. Malmberg’s incentive compensation award for the year in which the date of termination occurs, prorated based upon the number of days Mr. Malmberg was employed that year. The incentive compensation award is based on the Bank’s actual performance for the year in which termination occurs and is payable at the time such incentive compensation awards are paid to other senior executives. In addition, Mr. Malmberg is entitled to receive certain healthcare replacement costs and other amounts required to be paid or provided under any other Bank plan, program, policy or practice or contract or agreement.

Under Mr. Malmberg’s Employment Agreement, “cause” is defined to include:

•Mr. Malmberg’s failure to perform substantially his duties;

•his engagement in illegal conduct or gross misconduct injurious to the Bank;

•a written request from the Finance Agency or any other regulatory agency or body requesting that the Bank terminate his employment;

•crimes involving a felony, fraud or other dishonest acts;

•certain other notices from or actions by the Finance Agency;

•his breach of fiduciary duty or breach of certain covenants in the Employment Agreement;

•his refusal to comply with a lawful directive from the Chair of the board of directors or from the board of directors; or

•his material breach of the Employment Agreement.

The Employment Agreement defines “good reason” to include:

•a material diminution in Mr. Malmberg’s base salary or in his authority;

•the Bank requiring Mr. Malmberg to be based at any office or location other than in Atlanta, Georgia; or

•a material breach of the Employment Agreement by the Bank.

137

The following table presents information about potential payments to Mr. Malmberg under his Employment Agreement in the event his employment had terminated on December 31, 2024 and a change in control of the Bank had not occurred. He is not entitled to any gross-up payments on taxes incurred with respect to any severance, whether under Section 280G of the tax code or otherwise.

Potential Payments upon Termination
Termination	Severance						Medical, Dental, and Vision Insurance Benefits		Pension Benefit Enhancements		Other Perquisites		Total
	2024 ICP Award		Deferred Incentive for Prior Periods		Salary
Resignation without Good Reason	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Involuntary Termination For Cause	—		—		—		—		—		—		—
Involuntary Termination Without Cause	1,005,966		923,253		1,023,750		45,981		—		—		2,998,950
Resignation For Good Reason	1,005,996		923,253		1,023,750		45,981		—		—		2,998,980

The other named executive officers are entitled to receive amounts earned during their terms of employment, regardless of the manner in which their employment terminated, on the same terms generally applicable to all employees of the Bank. These amounts include:

•Severance, if and as determined at the sole discretion of the board.

•Amounts accrued and vested through the Bank’s Pension Plan and the DBEP (the Bank’s qualified and non-qualified defined benefit plans).

•Up to three months of incremental service under the Bank’s Pension Plan may be granted, in the sole discretion of the board, if an employee is provided with severance pay.

•Amounts accrued and vested through the 401(k) Plan and the DCBEP (the Bank’s qualified and non-qualified defined contribution plans) and amounts contributed and associated earnings under the Bank’s DCP.

•Accrued vacation and applicable retiree medical benefits and applicable retiree life insurance.

In the event of the death or disability of an employee, including a named executive officer, in conjunction with the benefits above, the employee or their beneficiary may receive benefits under the Bank’s disability plan or payments under the Bank’s life insurance plan, as appropriate. Named executive officers also are entitled to receive death benefit payments under the Pension Plan and the Excess Plan, as described under “Retirement Benefits—Death Benefits.”

Change in Control Severance Plan

Effective January 1, 2017, the Bank adopted an Executive Change in Control Severance Plan (Severance Plan).

Overview of the Severance Plan

The Severance Plan provides certain protection and benefits in the event of a Qualifying Termination (as defined below) following a Change in Control (as defined below). The Severance Plan applies to employees or officers who are designated by the Bank’s board of directors as participants. The Bank’s board has designated Mr. Malmberg, Mr. Kazazian, Mr. Can, Mr. O’Shields and Ms. Hunter as participants in the Severance Plan.

Qualifying Termination

“Qualifying Termination” means any separation, termination or other discontinuation of the employment relationship between the Bank and a participant, (A) by the Bank, other than for “cause” (as defined in the Severance Plan); or (B) by the participant, for “good reason” (as defined in the Severance Plan), but does not include a termination resulting from the participant’s death or disability.

138

The Severance Plan defines “cause” to include:

•the participant’s failure to perform substantially their duties;

•the participant’s engagement in illegal conduct or willful misconduct injurious to the Bank;

•the participant’s material violation of law or regulation or of the Bank’s written policies or guidelines;

•a written request from the Finance Agency requesting that the Bank terminate the participant’s employment;

•crimes involving a felony, fraud or other dishonest acts;

•certain other notices from or actions by the Finance Agency;

•the participant’s breach of fiduciary duty or breach of certain covenants in the Severance Plan; and

•the participant’s refusal to comply with a lawful directive from the CEO or the board of directors.

The Severance Plan defines “good reason” to include:

•a material diminution in the participant’s base salary or in their duties or authority;

•the Bank requiring the participant to be based at any office or location other than in Atlanta, Georgia; or

•a material breach of the Severance Plan by the Bank.

Under the terms of the Severance Plan, if there is a Qualifying Termination during the period beginning on the earliest of the date a definitive agreement or order for a Change in Control has been entered, or the effective date of a Change of Control as prescribed by the Finance Agency, and ending, in all cases, twenty-four (24) months following the effective date of the Change in Control, the participant becomes entitled to certain severance payments and benefits.

These payments and benefits include the following:

•The CEO would receive a cash payment equal to 2.5 times their annual base salary amount.

•An executive vice president would receive a cash payment equal to 1.75 times their annual base salary amount.

•Participants would receive a lump sum cash payment equal to the amount that would have been payable pursuant to the participant’s incentive compensation award for the year in which the date of a Qualifying Termination occurs, prorated based on the number of days the participant was employed that year.

•Participants would receive a lump sum cash payment for outplacement assistance in the amount of $7,500.

In addition, the CEO would receive a cash payment equivalent to 24 months of health continuation coverage, and executive vice presidents would receive a cash payment equivalent to 18 months of health continuation coverage.

The Severance Plan defines a “Change in Control” as:

•the merger, reorganization, or consolidation of the Bank with or into, or acquisition of the Bank by, another Federal Home Loan Bank or other entity;

•the sale or transfer of all or substantially all of the business or assets of the Bank to another Federal Home Loan Bank or other entity; or

•a change in the composition of the Bank’s board that causes the combined number of member directors from the jurisdictions of Alabama, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, and Virginia to cease to constitute a majority of the Bank’s directors; or

139

•the Bank’s liquidation or dissolution.

The payments described above are payable in a lump sum within sixty (60) days following the participant’s employment termination date, except the prorated incentive compensation award, which is payable at the time such incentive compensation awards are paid to other senior executives. All payments and benefits are conditioned on the executive having delivered an irrevocable general release of claims against the Bank before payment occurs. In addition, all payments and benefits remain subject to the Bank’s compliance with any applicable statutory and regulatory requirements relating to the payment of amounts under the Severance Plan. The Severance Plan requires that an individual execute a participation agreement to become a participant in the Severance Plan. Each Mr. Malmberg, Mr. Kazazian, Mr. Can, Mr. O’Shields, and Ms. Hunter have executed a participation agreement to become participants in the Severance Plan.

The following table presents information about potential payments under the Severance Plan in the event that a Change in Control had occurred and their employment had terminated due to a Qualifying Termination on December 31, 2024. None of the participants would be entitled to any gross-up payments on taxes incurred with respect to any severance, whether under Section 280G of the tax code or otherwise.

Potential Payments upon Qualified Termination Following a Change in Control(1)
	2024 ICP Award		Separation Payment		Medical, Dental, and Vision Insurance Benefits		Outplacement Assistance		Total
Kirk R. Malmberg	$	1,005,966	$	2,559,375	$	45,981	$	7,500	$	3,618,822
Haig H. Kazazian, III	419,646		882,000		46,600		7,500		1,355,746
Alp E. Can	445,561		946,750		15,097		7,500		1,414,908
K Annette Hunter	343,044		721,000		16,235		7,500		1,087,779
Reginald T. O'Shields	402,993		847,000		46,600		7,500		1,304,093

____________

(1) Qualifying Termination means a termination without cause or a resignation for good reason. In order to receive severance under the Severance Plan, a Qualifying Termination must occur within 24 months following the effective date of a Change in Control.

CEO Pay Ratio Disclosure Rule

The following is a reasonable estimate, prepared under applicable SEC rules, of the ratio of the annual total compensation of the Bank’s president and CEO, Mr. Malmberg, to the median of the annual total compensation of the Bank’s other employees. The Bank identified the median employee in 2022 by examining the 2022 base pay for all 317 individuals, excluding the CEO, who were employed by the Bank on December 1, 2022 (annualized for any permanent full- or part-time employees that were not employed by the Bank for all of 2022). For 2024, the Bank determined to use the same median employee in its pay ratio calculation because there has not been a change in the Bank’s population or employee compensation arrangements that it believes would significantly impact the pay ratio disclosure. The Bank calculated the annual total compensation for such employee using the same methodology the Bank uses for its named executive officers as set forth in the 2024 Summary Compensation Table included earlier in this Executive Compensation section of the Report. For the year ended December 31, 2024, the Bank’s median employee total annual compensation was $179,608, the CEO’s total annual compensation was $2,669,331; and the ratio of CEO to median employee compensation was 14.86 to 1.

Under the SEC’s rules and guidance, there are numerous ways to determine the median employee for purposes of calculating the pay ratio, and companies may differ in the methods they use, including the employee population sampled, the elements of pay and benefits used, any assumptions made and the use of statistical sampling. In addition, no two companies have identical employee populations or compensation programs, and pay, benefits and retirement plans differ by country even within the same company. As such, the Bank’s pay ratio may not be comparable to the pay ratio reported by other companies.

140

Director Compensation

The FHLBank Act provides that each FHLBank may pay its directors reasonable compensation for the time required of them, and their necessary expenses, in the performance of their duties, subject to approval by the Director. In accordance with the FHLBank Act, the Bank has adopted a policy governing the compensation and travel expense reimbursement provided to its directors. Under this policy, directors receive fees paid for attendance at each meeting of the board of directors and meeting of a committee of the board of directors, as further described below. These fees are subject to the annual caps established under the policy. Directors do not receive separate retainers.

Directors are reimbursed for reasonable Bank-related travel expenses in accordance with Bank policy.

During 2024, directors received fees for attendance at each board and committee meeting as described below. The following table presents the annual compensation limits applied.

2024 Annual Director Compensation Limits

Title	Amount
Chair of the Board	$	155,000
Vice Chair of the Board	140,000
Chair of the Audit Committee	135,000
Other Committee Chair (excluding Audit and Executive)	130,000
All Other Directors	123,000

Under the 2024 Directors’ Compensation Policy, each director had an opportunity to receive a payment of approximately one-seventh of that director’s annual cap for attendance at no less than 75.0 percent of the board meeting and meetings of each committee of the board on which the director serves during each interim period. The first interim period began on December 11, 2023 and ended January 25, 2024 (the last day of the first scheduled in-person board meeting for 2024). Each successive interim period began on the calendar day immediately following a scheduled board meeting through and including the day of the next scheduled board meeting, with the seventh interim period ending on December 15, 2024 after the seventh scheduled in-person board meeting. Under the policy, after the end of the seventh interim period and before the seventh payment was made, the governance and compensation committee of the board reviews the cumulative attendance and performance of each director during the year and, in consultation with the chair of the board, may recommended to the board a reduction, elimination or increase in the final payment opportunity for each director, provided that no increase may exceed the applicable annual compensation cap. No such adjustment was made for 2024.

141

The following table presents the cash and other compensation earned or paid by the Bank to the members of the board of directors for all services in all capacities during 2024. Directors are eligible to participate in the Bank’s DCP. Directors Dunlap and Whaley elected to defer compensation for 2024.

2024 Director Compensation
Name	Fees Earned or Paid in Cash		Change in Pension Value and Nonqualified Deferred Compensation Earnings		All Other Compensation	Total
(a)	(b)		(c) (1)		(d)	(e)
Eduardo J. Arriola	$	123,000	$	5,537	*	$	128,537
James M. Burke	123,000		—		*	123,000
Kimberly A. Casiano	123,000		—		*	123,000
Susan F. Dewey	123,000		—		*	123,000
Suzanne S. Deferie	140,000		—		*	140,000
R. Thornwell Dunlap, III	155,000		11,235		*	166,235
Scott C. Harvard	130,000		—		*	130,000
William L. Lusk, Jr.	135,000		—		*	135,000
Kathleen C. McKinney	130,000		—		*	130,000
Brian P. McLaughlin	130,000		—		*	130,000
Edwina L. Payne	123,000		—		*	123,000
John B. Rucker	130,000		2,478		*	132,478
James M Stubbs	123,000		—		*	123,000
Richard A. Whaley	130,000		5,805		*	135,805

____________

(1) The amounts in column (c) represent “above market” earnings on deferred amounts.

* Director perquisites include premiums paid by the Bank for each director for the Bank’s Business Travel Accidental Death and Dismemberment Policy, certain activities at business functions, and matching contributions under the Bank’s charitable giving program. For each director, the aggregate amount of such perquisites was less than $10,000.

The board of directors approves the Directors’ Compensation Policy which determines the annual compensation limits applicable.

142

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The Bank is a cooperative whose members own substantially all of the outstanding capital stock of the Bank and elect the directors of the Bank. The voting right of members is generally limited to the election of the Bank’s board of directors. A member is eligible to vote for the number of open member director seats in the state in which its principal place of business is located, and all members are eligible to vote for the number of open independent director seats. Membership is voluntary, and a member must give notice of its intent to withdraw from membership. A member that withdraws from membership may not acquire shares of any FHLBank before the end of the five-year period beginning on the date of the completion of its divestiture of Bank stock.

The Bank does not offer any compensation plan under which equity securities of the Bank are authorized for issuance. The following table presents the ownership of the Bank’s capital stock, which is concentrated within the financial services industry and is stratified across various institution types (in millions).

	Commercial Banks		Credit Unions		Savings Institutions		Insurance Companies		CDFIs		Mandatorily Redeemable Capital Stock		Total
December 31, 2024	$	3,245	$	1,208	$	47	$	643	$	5	$	1	$	5,149
December 31, 2023	3,722		1,236		47		587		5		—		5,597
December 31, 2022	3,395		1,114		433		452		3		—		5,397
December 31, 2021	1,094		704		317		265		3		1		2,384
December 31, 2020	1,585		846		392		250		5		—		3,078

The following table presents information about those members that are beneficial owners of more than five percent of the Bank’s outstanding capital stock as of February 28, 2025.

Name and Address	Number of Shares Owned	Percent of Total Capital Stock
Bank of America, National Association	12,583,516	21.95
100 North Tryon Street
NC1-007-06-11
Charlotte, NC 28255
Truist	9,212,872	16.07
214 N Tryon Street
Charlotte, NC 28202
Navy Federal Credit Union	4,343,398	7.58
820 Follin Lane
Vienna, VA 22180

Additionally, member directors, which comprise a majority of the board of directors of the Bank, are officers or directors of member institutions that own the Bank’s capital stock. The following table presents these institutions as of February 28, 2025.

Member Name	City, State	Number of Shares Owned	Percent of Total Capital Stock
Seacoast National Bank	Stuart, FL	377,508	0.66
River Bank & Trust	Prattville, AL	95,634	0.17
First Bank	Southern Pines, NC	85,194	0.15
Shore United Bank, N.A.	Easton, MD	66,592	0.12
IDB Global Federal Credit Union	Washington, DC	26,284	0.05
First Bank	Strasburg, VA	14,669	0.03
Citizens Bank of Americus	Americus, GA	5,591	0.01
Countybank	Greenwood,SC	5,343	0.01
Community Bankers' Bank	Midlothian,VA	4,405	0.01

143

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Because the Bank is a cooperative, capital stock ownership is a prerequisite for a member to transact any business with the Bank. The Bank’s member directors are officers or directors of member institutions. All directors and any member that holds five percent or more of the Bank’s voting securities are classified as related parties under SEC regulations. In the ordinary course of its business, the Bank may transact business with each of the members that has an officer or director serving as a director of the Bank and members that hold five percent or more of the Bank’s voting securities. All such transactions:

•have been made in the ordinary course of the Bank’s business;

•have been made subject to the same Bank policies as transactions with the Bank’s members generally; and

•in the opinion of management, do not involve more than the normal risk of collection or present other unfavorable features.

The Bank has adopted a written related person transaction policy, which requires the Governance and Compensation Committee of the board of directors to review and, if appropriate, to approve certain transactions between the Bank and any related person (as defined by applicable SEC regulations). Pursuant to the policy, the committee will review any transaction the Bank would be required to disclose in filings with the SEC in which the Bank is or will be a participant and the amount involved exceeds $120,000, and in which any related person had, has, or will have a direct or indirect material interest. The Bank has exemptive relief, pursuant to an SEC no-action letter and by law, from disclosing related person transactions that arise in the ordinary course of the Bank’s business. The committee may approve those transactions that are in, or are not inconsistent with, the best interests of the Bank and its shareholders.

In addition, the Bank has a written Code of Conduct applicable to all employees and a Code of Conduct and Ethics for Directors as well as other written policies and procedures that also may apply to or prohibit certain related person transactions.

Director Independence

For a discussion of director independence, refer to Item 10. Directors, Executive Officers and Corporate Governance-Director Independence, Compensation Committee, Audit Committee and Audit Committee Financial Expert.

144

Item 14. Principal Accountant Fees and Services.

The following table presents the aggregate PwC fees billed to (or accrued by) the Bank (dollars in thousands).

	For the Years Ended December 31,
	2024		2023
Audit fees(1)	$	1,125	$	1,078
Audit-related fees(2)	71		78
All other fees(3)	2		4
Total fees	$	1,198	$	1,160

____________

(1) Audit fees and expenses for the years ended December 31, 2024 and 2023 were for professional services rendered by PwC in connection with the Bank’s annual audits and quarterly reviews of the Bank’s financial statements.

(2) Audit-related fees and expenses for the years ended December 31, 2024 and 2023 were for certain FHLBank System assurance and related services, as well as fees related to PwC’s participation at conferences.

(3) All other fees for the year ended December 31, 2024 and 2023 related to software license fees.

The Bank paid additional fees to PwC in the form of assessments paid to the Office of Finance. The Bank is assessed its proportionate share of the costs of operating the Office of Finance, which includes the expenses associated with the annual audits of the combined financial statements of the FHLBanks. These assessments, which totaled $75,252 and $78,067 in 2024 and 2023, respectively, are not included in the table above.

The Bank is exempt from ordinary federal, state, and local taxation, except employment and real property taxes. No tax-related fees were paid to PwC during the years ended December 31, 2024 and 2023.

The Audit Committee of the board of directors has adopted the Audit Committee Pre-Approval Policy (Pre-Approval Policy). In accordance with the Pre-Approval Policy and applicable law, the Audit Committee pre-approves audit services, audit-related services, tax services, and non-audit services to be provided by the Bank’s independent registered public accounting firm. The term of any pre-approval is 12 months from the date of pre-approval unless the Audit Committee specifically provides otherwise. On an annual basis, the Audit Committee reviews the list of specific services and projected fees for services to be provided for the next 12 months and pre-approves services as the Audit Committee deems necessary. Under the Pre-Approval Policy, the Audit Committee has granted pre-approval authority to the chair and the vice chair of the Audit Committee, subject to limitation as set forth in the Pre-Approval Policy. The chair or the vice chair must report any pre-approval decisions to the Audit Committee at its next regularly scheduled meeting. New services that have not been pre-approved by the Audit Committee that are in excess of the pre-approval fee level established by the Audit Committee must be presented to the entire Audit Committee for pre-approval. For the years ended December 31, 2024 and 2023, 100 percent of the audit fees, audit-related fees, and all other fees were pre-approved by the Audit Committee.

145

PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a)    Financial Statements. The following financial statements of the Federal Home Loan Bank of Atlanta, set forth in Item 8 above, are filed as part of this Report.

Report of Independent Registered Public Accounting Firm (PCAOB ID 238 )

Statements of Condition as of December 31, 2024 and 2023

Statements of Income for the Years Ended December 31, 2024, 2023, and 2022

Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023, and 2022

Statements of Capital Accounts for the Years Ended December 31, 2024, 2023, and 2022

Statements of Cash Flows for the Years Ended December 31, 2024, 2023, and 2022

Notes to Financial Statements

146

(b)    Exhibits. The exhibits listed below are being filed with or incorporated by reference as a part of this Report:

Exhibit No.	Exhibit Description	Form	Dated Filed
3.1	Amended and Restated Organization Certificate of the Federal Home Loan Bank of Atlanta.	8-K	10/26/12
3.2	Bylaws of the Federal Home Loan Bank of Atlanta (Revised and Restated through December 11, 2021).	8-K	12/11/21
4.1	Capital Plan of the Federal Home Loan Bank of Atlanta.	8-K	10/8/21
4.2	Description of the Bank’s Capital Stock.
10.1	Federal Home Loan Bank of Atlanta Benefit Equalization Plan (Amended and Restated effective as of February 1, 2023).*	10-Q	5/12/23
10.2	Federal Home Loan Bank of Atlanta Deferred Compensation Plan (2009 revision).*	8-K	1/9/09
10.3	Form of Officer and Director Indemnification Agreement.*	10-12G	3/17/06
10.4	Federal Home Loan Bank of Atlanta 2025 Directors’ Compensation Policy.*
10.5	Federal Home Loan Bank of Atlanta Omnibus Annual Incentive Compensation Plan (Amended and Restated as of January, 2022).*	10-Q	5/6/22
10.6	Employment Agreement effective as of May 28, 2021 between the Bank and Kirk R. Malmberg.*	8-K/A	4/21/21
10.7	Federal Home Loan Bank of Atlanta Executive Change in Control Severance Plan, effective January 1, 2017.*	10-K	3/9/17
10.8	Amended and Restated Federal Home Loan Banks P&I Funding and Contingency Plan Agreement, effective as of January 1, 2017, by and among the Office of Finance and each of the Federal Home Loan Banks.	10-K	3/9/17
10.9	Amended Joint Capital Enhancement Agreement by and among each of the Federal Home Loan Banks.	8-K	8/5/11
19.1	Insider Trading Policy
31.1	Certification of the President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 135, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.+
99.1	Audit Committee Report.+
101.INS	XBRL 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.SCH	XBRL Taxonomy Extension Schema Document.+
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.+
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.+
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.+
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.+
104	The cover page of this Annual Report on Form 10-K, formatted in inline XBRL and contained in Exhibit 101.
	* Denotes management contract or compensatory plan.
	+ Furnished herewith.

147

Item 16. Form 10-K Summary.

None.

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.

		Federal Home Loan Bank of Atlanta
Date:	March 7, 2025	By /s/ Kirk R. Malmberg
		Name: Kirk R. Malmberg      Title: President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date:	March 7, 2025	By /s/ Kirk R. Malmberg
		Name: Kirk R. Malmberg
		Title: President and Chief Executive Officer
Date:	March 7, 2025	By /s/ Haig H. Kazazian III
		Name: Haig H. Kazazian, III
		Title: Executive Vice President                  and Chief Financial Officer
Date:	March 7, 2025	By /s/ William T. Shaw
		Name: William T. Shaw
		Title: Senior Vice President
		and Controller
Date:	March 7, 2025	By /s/ R. Thornwell Dunlap, III
		Name: R. Thornwell Dunlap, III
		Title: Chair of the Board of Directors
Date:	March 7, 2025	By /s/ Suzanne S. DeFerie
		Name: Suzanne S. DeFerie
		Title: Vice Chair of the Board of Directors
Date:	March 7, 2025	By /s/ Eduardo J. Arriola
		Name: Eduardo J. Arriola
		Title: Director
Date:	March 7, 2025	By /s/ James M. Burke
		Name: James M. Burke
		Title: Director
Date:	March 7, 2025	By /s/ Kimberly A. Casiano
		Name: Kimberly A. Casiano
		Title: Director

148

Date:	March 7, 2025	By /s/ Susan F. Dewey
		Name: Susan F. Dewey
		Title: Director
Date:	March 7, 2025	By /s/ Scott C. Harvard
		Name: Scott C. Harvard
		Title: Director
Date:	March 7, 2025	By /s/ William L. Lusk, Jr
		Name: William L. Lusk, Jr
		Title: Director
Date:	March 7, 2025	By /s/ Kathleen C. McKinney
		Name: Kathleen C. McKinney
		Title: Director
Date:	March 7, 2025	By /s/ Brian P. McLaughlin
		Name: Brian P. McLaughlin
		Title: Director
Date:	March 7, 2025	By /s/ John B. Rucker
		Name: John B. Rucker
		Title: Director
Date:	March 7, 2025	By /s/ James M. Stubbs
		Name: James M. Stubbs
		Title: Director
Date:	March 7, 2025	By /s/ Richard A. Whaley
		Name: Richard A. Whaley
		Title: Director

EX-4.2

Exhibit 4.2

Description of the Bank’s Capital Stock

The Bank’s capital structure consists solely of Class B stock, par value $100 per share. The Class B stock contains three distinct subclasses, each of which is issued, redeemed, and repurchased at par value. Under the Bank’s Capital Plan, each member is required to maintain a certain minimum investment in Class B stock of the Bank. Each member’s minimum stock requirement is equal to the sum of a “membership” stock component and an “activity-based” stock component. Shares of Subclass B1 Class B stock are issued to meet the membership stock requirement and shares of Subclass B2 Class B stock and Subclass B3 Class B stock are issued to meet the activity-based stock requirement.

Subclass B1 Class B Stock

Each member is required to maintain a minimum investment in Subclass B1 shares sufficient to meet its membership stock requirement as long as the institution remains a member of the Bank.

From time to time the Bank’s board of directors may adjust the membership stock requirement, including the cap, within specified ranges set forth in the Capital Plan. Under the Capital Plan, the membership stock requirement can range from 0.01 percent (one basis points) to 0.40 percent (40 basis points) of the member’s total assets and the cap can range from $1 million to $35 million. Any adjustment by the board of directors outside these ranges would require an amendment to the Capital Plan and Finance Agency approval. Each member is required to comply with any adjustment to the membership stock requirement on its effective date. A member may not use shares of Subclass B2 Class B stock or Subclass B3 Class B stock to meet its membership stock requirement.

As of the date of this report, a member’s membership stock requirement is 0.07 percent (7 basis points) of the member’s total assets, subject to a cap of $18 million.

Subclass B2 Class B Stock and Subclass B3 Class B Stock

Each member is required to maintain a minimum investment in Subclass B2 shares and Subclass B3 shares sufficient to meet its activity-based stock requirement as long as the related assets continue to be carried on the Bank’s balance sheet.

From time to time, the board of directors may adjust the activity-based stock requirement within specified ranges set forth in the Capital Plan as follows:

•The advances stock requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 2.00 percent nor greater than 6.00 percent of the member’s outstanding advances;

•The acquired member assets stock requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 0.00 percent nor greater than 6.00 percent of any acquired member asset sold by the member and owned by the Bank;

•The targeted debt/equity investments stock requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 6.00 percent nor greater than 9.00 percent of any targeted debt/equity investment sold by the member and owned by the Bank, and

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•The standby letters of credit requirement, which shall equal an amount of Subclass B3 Capital Stock not less than 0.10 percent nor greater than 2.00 percent of the amount of standby letters of credit issued by the Bank on behalf of the member.

Any adjustment outside the ranges would require an amendment to the Capital Plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the activity-based stock requirement. A member may not use shares of Subclass B1 Class B stock to meet its activity-based stock requirement.

As of the date of this report, a member’s activity-based stock requirement is the sum of the following items

•4.75 percent of the member’s outstanding par value of advances;

•8.00 percent of any outstanding targeted debt/equity investment (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004; and

•0.10 percent of members’ outstanding standby letters of credit.

The activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets), which was set at zero as of the date of this report.

Dividend Rights

The Bank’s board of directors, in its sole discretion, may declare and direct the Bank to pay dividends on the Class B stock. All outstanding shares of Class B stock participate in any dividend without preference and without distinction between subclasses. Dividends may be paid in the form of cash or capital stock and will be computed based on the amount of time during the relevant quarter or other period that the Class B stock was outstanding. A former member of the Bank is entitled to receive any dividends attributable to its Class B stock through the date of redemption or repurchase of that stock by the Bank.

Dividend distributions may be limited or prohibited in some circumstances under regulatory requirements, Bank Policy, the Capital Plan or other commitments made by the Bank.

Dividends may be paid only from the Bank’s current net earnings or retained earnings. The board of directors may not declare a dividend under any one or more of the following circumstances:

•If the Bank’s capital position is below its minimum regulatory capital requirement;

•If the Bank’s capital position will be below its minimum regulatory capital requirement after paying the dividend;

•If the principal or interest due on any consolidated obligation issued through the Office of Finance has not been paid in full; or

•If the Bank becomes a noncomplying FHLBank under Finance Agency regulations as a result of its inability to comply with regulatory liquidity requirements or satisfy its current obligations.

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The Bank has adopted a retained earnings target. In addition, pursuant to the Amended Joint Capital Enhancement Agreement by and among each of the FHLBanks and the respective Bank’s Capital Plan provisions related to retained earnings enhancements, the Bank is required to contribute a percentage of its net income to a separate restricted retained earnings account.

Repurchase and Redemption Provisions

Excess Stock Repurchases Initiated by the Bank

A member may hold Class B stock in excess of its minimum stock requirement, called excess stock, to the extent it has the legal authority under applicable statutes and regulations, subject to the following provisions. The excess stock threshold amount for repurchases is currently set at $100,000.

Repurchases of Membership Stock – Subclass B1 Class B stock

The Bank will recalculate the membership stock requirement of each member at least annually, and no later than March 31 of each year, using financial data as of the prior calendar year-end. In its discretion, the Bank may recalculate any member’s membership stock requirement more frequently, using the most recently available financial data. The Bank also will recalculate each member’s membership stock requirement on the effective date of any adjustment to the percentage used in calculating this membership stock requirement. If any of these recalculations results in a decrease in the member’s membership stock requirement, the Bank, in its sole discretion, may, but is not required to, repurchase any excess shares of Subclass B1 Class B stock held by the member. Upon termination of membership, any Subclass B1 Class B stock that is not required to meet the former member’s membership stock retention requirement is excess stock subject to repurchase by the Bank, in its sole discretion.

Repurchases of Activity-Based Stock – Subclass B2 Class B stock and Subclass B3 Class B stock

The Bank will recalculate each member’s activity-based stock requirement at the time of any change in the amount of transactions outstanding between the Bank and the member, which can occur daily, and on the effective date of any adjustment to the percentages used in calculating the activity-based stock requirement. If this recalculation results in a decrease to the member’s activity-based stock requirement, and the par value of excess shares of Subclass B2 Class B stock and/or Subclass B3 Class stock held by a member exceeds the excess stock threshold amount, the Bank generally will, in its discretion, repurchase some or all of the excess shares of Subclass B2 Class B stock and/or Subclass B3 Class stock held by that member. For example, the Bank may stagger the purchase of excess shares for capital management purposes. The Bank may change this repurchase policy upon notice to the members.

Excess Stock Redemptions Initiated by Members

Under the Bank’s Capital Plan, a member may request redemption of its excess stock, payable in cash at par value, upon five years’ prior written notice to the Bank. The Bank may, in its sole discretion and at any time, repurchase shares of excess stock referenced in the member’s written notice of redemption.

The written notice must indicate the particular subclass(es) and number of shares to be redeemed. The five-year redemption period starts when the Bank receives written notice from the member. A member may not have more than one written notice of redemption outstanding at any one time for the same shares of Class B stock. Following the requested redemption, the member must continue to meet its minimum stock requirement under the Capital Plan.

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The member may cancel its redemption request before the end of the five-year redemption period by providing a written cancellation notice to the Bank, subject to a redemption cancellation fee.

If, at the end of the five-year redemption period, the member would fail to meet its minimum stock requirement, the Bank will not redeem the member’s Class B stock but will attempt the redemption on each of the following five business days following the expiration of the redemption period. If the Bank is prevented from redeeming a member’s Class B stock during this period for this reason, the redemption notice will be cancelled automatically and the member will be required to pay a redemption cancellation fee.

If the member meets the redemption requirements at the expiration of the five-year redemption period, the Bank will pay to the member in cash the par value of all shares requested to be redeemed, subject to the limitations on redemption discussed below.

Repurchases and Redemptions upon Termination of Membership

If a member’s membership is terminated, whether voluntarily, involuntarily, or through merger or relocation, the Class B stock generally will be subject to a five-year redemption period.

Limitations on Redemptions and Repurchases

The Bank’s authority to redeem or repurchase Class B stock is subject to a number of limitations. Specifically, the Bank will not redeem or repurchase Class B stock if, following the redemption or repurchase, the Bank would fail to meet its minimum regulatory capital requirement or the affected member would fail to meet its minimum stock requirement. Also, the Bank may not redeem or repurchase any Class B stock without the prior written approval of the Finance Agency, if the Finance Agency or the Bank’s board of directors has determined that the Bank has incurred, or is likely to incur, losses that result in, or are likely to result in, charges against capital creating an other-than-temporary decline in the Bank’s total capital that causes the value of the Bank’s total capital to fall below the Bank’s aggregate amount of Class B stock. This prohibition will apply even if the Bank is in compliance with its capital requirements and will remain in effect for however long the Bank continues to incur such charges or until the Finance Agency determines that such charges are not expected to continue.

The Bank’s board of directors, or a committee thereof, may temporarily suspend redemptions and repurchases of Class B stock if it reasonably believes that such continued redemption or repurchase of Class B stock would result in one of the following:

•Cause the Bank to fail to meet its minimum regulatory capital requirement

•Prevent the Bank from maintaining adequate capital against a potential risk that may not be adequately reflected in its minimum regulatory capital requirement or

•Otherwise prevent the Bank from operating in a safe and sound manner.

The Bank must notify the Finance Agency of any determination to suspend redemptions. The Bank will not repurchase any Class B stock without prior written approval of the Finance Agency during the period that redemptions are suspended under this provision.

The Bank may not redeem or repurchase shares of Class B stock from any member if the principal and interest due on any consolidated obligation issued through the Office of Finance has not been paid in full, or, under certain circumstances, if the Bank becomes a non-complying FHLBank under

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Finance Agency regulations as a result of its inability to comply with regulatory liquidity requirements or to satisfy its current obligations.

In addition, on any day that the sum of all repurchases of excess stock equals or exceeds an amount that would cause the Bank to fall below its minimum regulatory capital requirements, the Bank will suspend repurchase activities until either it can honor those repurchases in full or the board of directors establishes pro rata repurchase procedures.

Pursuant to Amended Joint Capital Enhancement Agreement by and among each of the FHLBanks and the respective Bank’s Capital Plan provisions related to retained earnings enhancements, the Bank is required to hold an amount of restricted retained earnings. Redemptions and repurchases of Class B stock are prohibited in the event the Bank’s total capital, defined as retained earnings, the amount paid-in for capital stock, the amount of any general allowance for losses, and the amount of other instruments that the Finance Agency has determined to be available to absorb losses incurred by the Bank, falls below the Bank’s aggregate paid-in amount of capital stock.

Voting Rights

The members are entitled to vote only in connection with the election of directors in accordance with the FHLBank Act and Finance Agency regulations. Voting rights in regard to the election of directors are set forth at 12 C.F.R. Section 1261. The Bank calculates annually each member’s minimum stock requirement for purposes of determining its voting shares based on the member’s total assets, outstanding activity, acquired member assets, and targeted debt/equity investments carried on the Bank’s balance sheet on the preceding December 31, which is the “record date” for such determination. Each member is eligible to vote for all open elective director seats in the state in which its principal place of business is located. Each member is entitled to cast one vote for each share of Class B stock that the member was required to hold as of the record date in each election for each open elective director seat in the state in which the member’s principal place of business is located. In cases in which there are multiple directorships to be filled for a voting state, a member may not aggregate all of its available votes for a single candidate. In a single directorship election, a member may not split its votes between director candidates but must cast all of its votes available election for a single candidate. The number of votes that each member may cast for each directorship may not exceed the average number of shares of Class B stock required to be held as of the record date by all members located in that state. For example, if a member holds 100 shares of Class B stock, but the average number of shares of Class B stock held by all members in such member’s state of residence is 75 shares, the member may vote only 75 shares in each open elective director seat election in the state in which its principal place of business is located. Excess stock is not “required stock” and thus is not counted in determining the number of votes that a member may cast. A former member that was a member as of the record date is entitled to vote in the election of directors in accordance with the FHLBank Act and regulations. There are no voting preferences associated with any class or subclass of Class B stock.

Classification of Board of Directors/Cumulative Voting

Each member of the Bank’s board of directors serves a four-year term, and the Board’s terms are staggered. There are no classes of directors, and there is no cumulative voting.

Liquidation Rights

Subject to the authority of the Finance Agency, in the event of liquidation of the Bank, after making provision for the payment of the Bank’s liabilities, the Bank will pay each member the par value of its Class B stock. However, if sufficient funds are not available to make payment for all of the Class B stock outstanding, payment will occur on a pro rata basis among the holders of Class B stock in proportion to the number of shares of Class B stock owned by each. In addition, upon liquidation,

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any undistributed retained earnings, paid-in surplus, undivided profits, equity reserves, and other assets not otherwise identified will be allocated in the same manner. In the event that the Bank merges with or consolidates into another FHLBank, the holders of Class B stock are entitled to the rights and benefits set forth in the agreement of merger or consolidation approved by the board of directors and the Finance Agency. None of the shares of Class B stock has any right of preference in liquidation.

Preemptive Rights

Members are not entitled to any preemptive rights.

Restrictions on Transfer

The Capital Plan prohibits transfers of Class B stock between members or any other parties except in connection with a merger or consolidation with another institution. Any such transfer will be at par value.

Amendment to the Capital Plan

Both the Bank’s board of directors and the Finance Agency must approve any amendment to the Capital Plan. Members’ consent is not required to amend the Capital Plan. The Bank will provide written notice to members at least five business days prior to the effective date of any amendment.

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EX-10.4

Exhibit 10.4

2025 DIRECTORS’ COMPENSATION POLICY OF THE

FEDERAL HOME LOAN BANK OF ATLANTA

As approved by the Board of Directors in January 2025

This policy is designed to set forth expectations for attendance by members of the board of directors of the Federal Home Loan Bank of Atlanta (Bank) at meetings of the board (including eight scheduled board meetings in 2025) and board committees and to ensure that each director is reasonably compensated for the time required of him or her in the performance of official Bank business.

A.    Director Compensation

1.Effective January 1, 2025, the following annual compensation limits shall apply:

a)Chair of the Board                          $160,000

b)Vice Chair of the Board                         $142,000

c)Chair of the Audit Committee                     $137,000

d)Chair of the Governance and Compensation Committee    $137,000

e)Chair of the Enterprise Risk Management Committee        $135,000

f)Other Committee Chairs                         $130,000

g)All Other Directors                          $123,000

2.Each director shall have the opportunity to be paid an amount equal to approximately one-seventh of such director’s annual limit for actual attendance at each scheduled in-person board meeting and board committee meetings, as further described in Section B. The seventh payment opportunity shall be subject to adjustment as further described in Section C. If a director serves in multiple roles, the director will have the opportunity to be paid up to the annual compensation limit for the highest compensated position held by the director. For example, if the Vice Chair of the board also serves as a committee chair, the Vice Chair’s compensation limit would be $142,000.

3.In determining the above director compensation levels, the board considered a comparative compensation study prepared by a third party with expertise in compensation matters, the compensation of directors of other Federal Home Loan Banks in 2024, including median compensation, and the provision for payment of certain expenses described in Section D. The board established the above director compensation levels after evaluating the foregoing data and considering the time that directors are expected to devote to Bank business and the need to ensure the Bank’s future ability to attract qualified directors. The compensation levels reflect the board’s assessment of appropriate and comparable pay that will allow the Bank to recruit and retain highly qualified directors and compensate them for the time required in performing their duties.

B.    Attendance

1.Each director is strongly encouraged to attend all meetings of the board and board committees on which the director serves and is expected to attend no less than 75 percent of all such meetings each year.

2.The Bank will pay a fee only for a director’s actual attendance at no less than 75 percent of the board meetings (including scheduled board meetings, new director orientation, joint meetings of the Affordable Housing Advisory Council and board or committee, board strategy sessions, and board meetings held remotely) and meetings of each committee of the board (including any ad hoc committee established by the board for a specific purpose) on which the director serves during each interim period, as identified below. In the event two or more committees on which a director serves are scheduled to meet concurrently, only one committee meeting will be required for the purpose of calculating the director’s attendance. Interested directors are not required to attend board or committee meetings that are devoted exclusively to director election matters. As ex officio members of all committees, the Chair and Vice Chair of the board are encouraged, but not required, to attend committee meetings held remotely and unscheduled committee meetings (meetings added after the 2025 board and committee meeting schedule is approved by the board).

3.The first interim period shall begin on December 16, 2024, and end on the last day of the first scheduled in-person board meeting for 2025. Each successive interim period shall begin on the calendar day immediately following a scheduled board meeting through and including the last day of the next scheduled board meeting, with the seventh interim period ending on December 14, 2025, after the seventh scheduled in-person board meeting, as follows:

Interim Period	Start Date	End Date
First	December 16, 2024	January 30, 2025
Second	January 31, 2025	April 24, 2025
Third	April 25, 2025	May 21, 2025
Fourth	May 22, 2025	July 24, 2025
Fifth	July 25, 2025	September 20, 2025
Sixth	September 21, 2025	October 23, 2025
Seventh	October 24, 2025	December 14, 2025

The foregoing start and end dates will be adjusted to correspond to any changes in the board meeting schedule.

4.Remote participation for in-person meetings is discouraged unless necessary to attain a quorum or the Chair determines that circumstances warrant such manner of participation. The Bank will not pay a separate fee for a director’s attendance at meetings other than those described above.

5.The Bank will not advance the payment of fees to any director.

C.    Performance

1.Compensation paid to directors must reflect the time required of them in the performance of official Bank business. The time required will be measured principally by attendance and participation at board and board committee meetings, as described above, and secondarily by performance of other duties. These other duties include time spent: (a) preparing for board meetings; (b) chairing meetings as appropriate; (c) reviewing materials sent to directors on a periodic basis; (d) attending other related events such as management conferences, FHLBank System meetings, and director training; and (e) fulfilling the responsibilities of directors.

2.Before the seventh payment is made, the Governance and Compensation Committee (GCC) shall review the cumulative attendance and performance of each director during 2025 and, in consultation with the Chair, recommend to the board a reduction, elimination or increase in the final payment opportunity. No increase shall exceed the applicable compensation limit. In the event a director serves on the board for only a portion of a calendar year, the final payment for such director shall be subject to the same cumulative attendance and performance review through the director’s final date of service. The GCC, in conducting its review, may designate a director’s absence from a scheduled meeting as an “excused absence” for good cause. An “excused absence” shall be recorded as a director in attendance for the 75% attendance standard. Examples of what may be an “excused absence” include, but are not limited to, a medical condition of the director or their immediate family.

D. Expenses

1.In accordance with the Bank’s normal reimbursement policy, the Bank will reimburse a director’s travel expenses and any registration fees incurred in connection with attendance at any board or board committee meeting, the Council of FHLBanks’ directors conference, Chicago risk/governance/audit forum, any seminar or event specifically identified in the director education plan, any meeting or event that Bank management invites a director to attend in order to engage with members or otherwise to represent the Bank’s interests, and provided the director is the Bank’s designated representative, meetings of the FHLBank Chairs/Vice Chairs and Council of FHLBanks’ board of representatives. Please consult the Bank’s Travel and Entertainment Policy for a more detailed explanation regarding expense reimbursement.

2.The Bank will reimburse a director’s registration fees and travel expenses incurred in connection with any other meeting, hearing, ceremony, continuing education seminar, or other event only if the Chair determines that the meeting is relevant to the Bank’s business activities or the director’s duties as a board member and the director attends the meeting at the request of, or with the approval of, the Chair. The Vice Chair shall approve all such fees and expenses for the Chair. These amounts will be reimbursable to the extent provided for such purpose in the Bank’s annual budget and in accordance with the Bank’s Travel and Entertainment Policy. Otherwise, the Bank will not pay a fee for a director’s participation in

these types of activities, and in accordance with 12 C.F.R. Part 1261, the Bank will not reimburse directors for entertainment expenses at these events.

3.The Bank will pay for a director’s guest expense incurred at group board dinners held at the off-site September and December board meetings and the Annual Member Conference. Other guest expenses related to these meetings will not be paid or reimbursed by the Bank.

4.The Bank may provide directors other limited benefits and limited travel perquisites as specified in advance by the Bank.

5.Amounts paid by the Bank for any of the foregoing director or guest expenses will be reported as compensation to the director to the extent of and in compliance with applicable Internal Revenue Service laws and regulations and such expenses are in addition to the compensation limits identified in Section A above. Therefore, a director’s total annual compensation limit shall consist of (1) annual compensation set forth in Section A above and (2) payment for other items set forth in Section D.

EX-19.1

Exhibit 19.1

INSIDER TRADING POLICY OF THE

FEDERAL HOME LOAN BANK OF ATLANTA

As approved by the Board of Directors in March 2024

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I.    Introduction	3
II.    Applicability	3
III.    Definitions/Explanations	3
A.    What is “Nonpublic” Information?	4
IV.    Bank Policy on Use of Material Nonpublic Information	5
B.    “Tipping” of Information to Others	5
1.    Transactions By Family Members	5
2.    Transactions By a Director’s Institution	6
3.    Inadvertent “Tipping”	6
C.    Trading in Securities of Members	7
D.    Trading in Securities of Vendors, Counterparties and Other Companies	7
E.    Twenty-Twenty Hindsight	7
V.    Trading Blackout	7
VI.    Certification	8
VII.    Bank Assistance	8
VIII.    Administration of the Policy	8
IX.    Consequences	9
A.    Civil and Criminal Sanctions	9
B.    Sanctions Imposed by the Bank	9

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I.Introduction

While performing their duties, directors, officers, employees and contractors of the Federal Home Loan Bank of Atlanta (the “Bank”) may learn material nonpublic information about the Bank, the Federal Home Loan Bank System (the “FHLBank System”), the Bank’s member institutions, counterparties or vendors or another company. Directors, officers, employees, and contractors of the Bank must maintain the confidentiality of such information, except when disclosure of such information is expressly authorized by the Bank or is legally mandated.

The misuse of material nonpublic information (i.e., any use of that information for other than the Bank’s necessary purposes) may violate federal, state and certain international securities laws. Directors should consider the effects of this Policy on their member institutions and other affiliates. To the extent that there are any questions or concerns regarding this Policy or its applicability, they should be discussed with the Bank’s General Counsel.

II.Applicability

This Policy applies to all directors, officers, employees of the Bank and to all Bank contract workers who have agreed to be bound by this Policy (all such persons, collectively, “Covered Persons”). This Policy applies with respect to material nonpublic information about the Bank, the FHLBank System, any member institution, counterparty, vendor or other company, which came to a Covered Person through their relationship with the Bank.

III.Definitions/Explanations

What is “Material” Information?

Under the federal securities laws, information is generally regarded as “material” if there is a substantial likelihood that a reasonable investor would consider the information important in deciding whether to purchase, sell or hold a security, or if the information would significantly alter the total mix of publicly available information considered by the reasonable investor in making an investment decision. Material information can be positive or negative and can relate to virtually any aspect of an entity’s business or to any type of security, debt or equity. For example only, in most cases, information concerning the following events should be presumed to be “material:”

•dividend announcements;

•earnings information and quarterly and annual results;

•earnings or dividend guidance;

•changes in an entity’s credit rating;

•the launch of a significant new product or business;

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•significant changes in operations;

•undisclosed material data breaches and other significant cybersecurity events and incidents;

•gain or loss of a significant member, customer, counterparty or supplier;

•entry into or termination of a material agreement;

•changes in senior management or the board of directors;

•compensation matters related to an entity’s senior officers;

•changes to the rights of an entity’s securityholders;

•changes in previously disclosed financial information;

•a determination that previously issued financial statements may not be relied upon because of an error in such financial statements;

•changes in auditors or auditor notification that an entity may no longer rely on an audit report;

•significant litigation, including government investigations;

•significant regulatory actions or developments affecting an entity;

•impending financial liquidity problems;

•corporate reorganization, liquidation or similar transactions or events; and

•events relating to other FHLBanks, the Office of Finance, the FHLBank System or the Bank’s or the System’s members that significantly affect the Bank or consolidated obligations of the FHLBank System.

The above list is only illustrative; many other types of information may be considered “material” depending on the circumstances. The materiality of particular information is subject to reassessment on a regular basis.

A.What is “Nonpublic” Information?

Information is “public” only if it is has been widely disseminated in a non-exclusionary fashion. The three ways information can be made public are:

•News Releases on a widely circulated wire service.

•SEC Filings on EDGAR.

•Certain Conference Calls. Information disclosed orally on a conference call that the public may listen to by telephone or through internet webcasting, provided that the public receives, via a press release and posting on the website, reasonable prior notice (preferably a week in advance) of the conference call, announcing the date, time, telephone number and webcast URL for the call.

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In addition, even after a public announcement of material information, a reasonable period of time must elapse in order for the market to react to the information. For purposes of this Policy, information is presumed to be nonpublic unless and until 24 hours have elapsed since the public announcement of such information. When in doubt, the information involved should be presumed to be both material and nonpublic.

IV.Bank Policy on Use of Material Nonpublic Information

A.Restrictions on Trading

When in the possession of material nonpublic information about an issuer of securities, which information came to a Covered Person through their relationship with the Bank, such Covered Person is not permitted to engage in any transaction in any security (debt or equity) of such issuer.

In the case of consolidated obligations of the FHLBank System listed for trading on the Luxembourg Stock Exchange or other exchange within the European Union, including those described on Appendix A of this Policy (the “Lux Bonds”), no Covered Person of the Bank is permitted on or after December 15, 2017 to purchase or sell, directly or indirectly, any Lux Bond, without first notifying the Bank’s General Counsel in the case of a sale and receiving appropriate approval of the Bank to engage in such transaction. Any Covered Person owning any Lux Bond prior to December 15, 2017, should notify the Bank’s General Counsel of such holdings.

B.“Tipping” of Information to Others

A Covered Person who improperly reveals material nonpublic information to another person can be held liable for the trading activities of their “tippee” and any other person with whom the tippee shares the information. The liability can apply whether or not an insider benefits financially from such trades and whether or not an insider knew or intended that another person would trade in the relevant security on the basis of the information revealed.

A Covered Person is not permitted to disclose material nonpublic information concerning an issuer of securities, which information was obtained through such Covered Person’s relationship with the Bank, to another person who may subsequently use that information to their profit. To reduce the chances of inadvertent tipping of material nonpublic information, except as required by law, no such information is to be disclosed to anyone except Bank directors, personnel and representatives (such as accountants, attorneys and agents) who have a valid business reason for receiving such information (i.e., who have a “need to know” the information in order to serve the business purposes of the Bank).

1.Transactions By Family Members

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To the extent set forth in this paragraph, the restrictions in this Policy apply to a Covered Person’s family members and others living in their household. Except as required by law, Covered Persons are not permitted to disclose to anyone outside of the Bank, including their family or household members, material nonpublic information about an issuer of securities, which information came to such Covered Person through their relationship with the Bank.

Notwithstanding the foregoing, if a Covered Person’s family or household member comes into possession of material nonpublic information about an issuer of securities, which information came to such individual through the Covered Person’s relationship with the Bank, such family or household member is not permitted to (1) engage in any transaction in the securities of such issuer or (2) except as required by law, disclose such information to anyone. Covered Persons are expected to be responsible for the compliance of their family members and others in their household with this restriction.

2.Transactions By a Director’s Institution

To the extent set forth in this paragraph, the restrictions in this Policy apply to the member institution(s) or other entities where a Bank director serves as a director, officer or employee. Except as permitted in the Bank’s Regulation FD Policy, directors are not permitted to use in connection with their activities at their institution(s) or entities, or to disclose to any individuals at their institution(s) or entities, material nonpublic information about an issuer of securities, which information came to such director through their relationship with the Bank. Notwithstanding the foregoing, if a director’s institution or entity comes into possession of material nonpublic information about an issuer of securities, which information came to such institution or entity through the director’s relationship with the Bank, such institution or entity is not permitted to (1) engage in any transaction in the securities of such issuer or (2) except as required by law, disclose such information to anyone.

A director should not take part in any discussions or decisions by its institution or entity relating to any investment decision regarding any Lux Bond without first consulting with the Bank’s General Counsel for guidance on any applicable blackout periods for trading due to possession of inside information related to the FHLBank System.

3.Inadvertent “Tipping”

Covered Persons should take care that material nonpublic information is secure. For example, files containing such information should be sealed and access to computer files containing such information should be restricted. In addition, Covered Persons should not discuss such information in public places where it can be overheard, such as elevators, restaurants, taxis and airplanes.

No Covered Person is permitted to give trading advice of any kind about the securities of an issuer to anyone while possessing material nonpublic information about such issuer, which

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information came to such Covered Person through their relationship with the Bank, except to advise others not to trade if doing so might violate the law or this Policy. In addition, no Covered Person is permitted to give trading advice concerning the securities of the Bank, the FHLBank System or any member to third parties, even when such Covered Person does not possess material nonpublic information about such entities.

C.Trading in Securities of Members

The prohibitions on insider trading in this Policy apply equally to material nonpublic information concerning member institutions obtained by a Covered Persons through their relationship with the Bank.

D.Trading in Securities of Vendors, Counterparties and Other Companies

The prohibitions on insider trading in this Policy apply equally to material nonpublic information concerning vendors, counterparties and other companies (including other FHLBanks) obtained by a Covered Person through their relationship with the Bank.

E.Twenty-Twenty Hindsight

If securities transactions become the subject of scrutiny, they are likely to be viewed after- the-fact with the benefit of hindsight. As a result, before engaging in any transaction, a Covered Person should carefully consider how regulators and others might view the transaction in hindsight.

V.Trading Blackout

In order to avoid even the appearance of improper trading, at the discretion of management, event-specific blackout periods may be established from time to time when certain material nonpublic information is shared with the board of directors. Such blackout periods will stay in effect until 24 hours have elapsed since the date that information is made public, or until such other time as may be established by the Bank.

During a blackout period, with respect to a member institution where a Bank director serves as a director, officer or employee of such member (i.e., a director institution), the Bank will not (unless otherwise approved by the Board of Directors):

•redeem any shares of the Bank’s capital stock from a director institution, other than pursuant to a redemption notice submitted to the Bank when a blackout period was not in effect and whose redemption period has expired in accordance with the Bank’s capital plan; or

•repurchase a director institution’s Subclass B2 Excess Stock (as defined in the Bank’s Capital Plan) resulting from an advance prepayment made during the blackout period, even if the Excess Stock Threshold Amount (as defined in the Bank’s Capital Plan) is exceeded. The Bank will provide notice to a

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director institution of the suspension of repurchases in accordance with the Capital Plan. The Bank also will provide notice to a director institution of the resumption of repurchases in accordance with the Capital Plan.

Further, during a blackout period, a director institution may not submit, and the Bank will not accept, a redemption request or voluntary withdrawal notice.

The Bank will notify the Bank director at each director institution regarding the establishment of any event-specific blackout period. The existence of an event-specific blackout period will not be announced publicly, and any person made aware of the existence of an event-specific blackout period should not disclose the existence of the blackout period to any other person.

During a blackout period, a director institution may continue to engage with the Bank in any of the transactions listed above if such transactions are carried out pursuant to a written plan submitted to the Bank at a time when the director’s institution is otherwise not restricted from trading (e.g., not during a blackout period or when the member has material nonpublic information about the Bank). Such plan, in any event, must meet the requirements of 1934 Exchange Act Rule 10b5-1.

At the discretion of management and depending on the materiality of any material nonpublic information, any event-specific blackout period may be extended to prohibit the purchase or sale of consolidated obligations of the FHLBank System by a director institution and/or by some or all individual directors, officers, employees, or contractors of the Bank.

VI.Certification

Each Covered Person will be required to certify that he or she understands and will comply with this Policy. Also, each Covered Person will be required to certify annually that he or she has complied with this Policy during the preceding year.

VII.Bank Assistance

This Policy only briefly summarizes the key provisions of some of the laws affecting the Bank’s Covered Persons and does not purport to be a complete summary of all laws, including state laws and foreign laws, relating to the use of material nonpublic information. Any person who has any questions about specific transactions or general questions about this Policy may obtain additional guidance from the Bank’s Chief Legal Officer or General Counsel.

VIII.Administration of the Policy

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This policy has been approved by the Board of Directors. Any amendments hereto shall be subject to approval by the Board of Directors. This Policy shall be reviewed by the General Counsel or their delegate every two years, or more often if a change in law warrants, who shall recommend any changes to the Board of Directors (or appropriate committee thereof).

IX.Consequences

A.Civil and Criminal Sanctions

An individual who uses or allows the use of information obtained as a result of their relationship with the Bank, but which is not available to the general public, in order to engage in any financial transaction or to further a private interest may be subject to prosecution and/or liability under federal, state and certain international banking and/or securities laws and other legal and regulatory provisions. The consequences of insider trading violations alone can be staggering:

For individuals who trade on inside information (or disclose inside information to others who trade), penalties under U.S. law may include:

•A bar on serving as a director or officer of a public company;

•Disgorgement of any profit gained or loss avoided;

•A civil penalty (in addition to disgorgement) of up to three times the profit gained or loss avoided;

•A criminal fine (no matter how small the profit) of up to $5 million; and

•A jail term of up to 20 years.

For the Bank (as well as possibly any supervisory person) that fails to take appropriate steps to prevent illegal insider trading, penalties under U.S. law may include:

•A civil penalty of the greater of $1 million or three times the profit gained or loss avoided as a result of violation; and

•A criminal penalty of up to $25 million.

Any of the above consequences, or even an SEC investigation that ultimately does not result in prosecution, can tarnish one’s reputation and irreparably damage a career.

B.Sanctions Imposed by the Bank

Violations of this Policy by directors will be addressed by the disinterested members of the Bank’s Board of Directors. Violations of this Policy by officers, employees, or contract workers will be addressed by the General Counsel and Director of Human Resources. If required by law or otherwise appropriate, such violations will be reported to the Federal Housing Finance Agency, the Financial Crimes Enforcement Network, the SEC, or other appropriate authorities.

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Appendix A

FHLBank System Consolidated ObligationsListed on the Luxembourg Stock Exchange

Cusip Number	Series Number	Original Issue Date	Maturity Date
3133XGAY0	677	7/17/2006	7/15/2036

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EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kirk R. Malmberg, certify that:

1.I have reviewed this annual report on Form 10-K of the Federal Home Loan Bank of Atlanta;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 7, 2025	/s/ Kirk R. Malmberg
		Kirk R. Malmberg
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Haig H. Kazazian III, certify that:

1.I have reviewed this annual report on Form 10-K of the Federal Home Loan Bank of Atlanta;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	March 7, 2025	/s/ Haig H. Kazazian III
		Haig H. Kazazian III
		Executive Vice President and
		Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the annual report on Form 10-K of the Federal Home Loan Bank of Atlanta (the “Registrant”) for the period ended December 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Kirk R. Malmberg, as President and Chief Executive Officer of the Bank, and Haig H. Kazazian III, as Executive Vice President and Chief Financial Officer of the Bank, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	March 7, 2025	/s/ Kirk R. Malmberg
		Kirk R. Malmberg
		President and Chief Executive Officer
Date:	March 7, 2025	/s/ Haig H. Kazazian III
		Haig H. Kazazian III
		Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

Exhibit 99.1

Audit Committee Report

March 7, 2025

The Audit Committee operates under a written charter adopted by the Board of Directors. The Audit Committee Charter is available on the Who We Are - Investor Relations - Governance section of the Bank’s Internet website at http://corp.fhlbatl.com/who-we-are/investor-relations/.

The Audit Committee assists the Board of Directors in fulfilling its responsibility to oversee management’s implementation of the Bank's financial reporting process and the audits of the Bank’s financial statements and internal control over financial reporting.

The Bank’s management is responsible for preparing the Bank's financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) and applicable laws and regulations, establishing and maintaining internal controls over financial reporting, and evaluating the effectiveness of such internal controls over financial reporting. The Bank’s independent registered public accounting firm (independent auditor) is responsible for auditing the Bank's financial statements in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) and the U.S. Government Accountability Office, and for expressing an opinion on the conformity of the financial statements with such standards. The Bank’s independent auditor is also responsible for auditing the Bank’s internal controls over financial reporting in accordance with such standards and for expressing an opinion on the Bank’s internal controls over financial reporting.

The Audit Committee assists the Board of Directors in fulfilling its responsibility to oversee management's implementation of the Bank’s financial reporting process and the audits of the Bank’s financial statements and its internal controls over financial reporting. In this regard, the Audit Committee meets periodically with management and the Bank’s internal auditor and independent auditor. The Audit Committee discusses with the Bank’s internal auditor and the independent auditor the overall scope and plans for their respective audits. The Audit Committee meets with the Bank’s internal auditor and the independent auditor, with and without management present, to discuss the results of their examinations, their evaluations of the Bank's internal controls, and the overall quality of the Bank's financial reporting. The Audit Committee reviews significant audit findings, if any, together with management's responses thereto.

The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the Bank’s independent auditor. As part of fulfilling this responsibility, the Audit Committee engages in an

1 of 4

annual evaluation of, among other things, the independent auditor’s qualifications, competence, integrity, expertise, performance, independence and communications with the Audit Committee, and whether such firm should be retained for the upcoming year's audit.

The Bank is one of 11 district Federal Home Loan Banks (FHLBanks) that, together with the Federal Home Loan Banks Office of Finance (Office of Finance), comprise the Federal Home Loan Bank System (FHLBank System). Each FHLBank operates as a separate entity with its own management, employees and board of directors, and each is regulated by the Federal Housing Finance Agency. The Office of Finance has responsibility for the issuance of consolidated obligations on behalf of the FHLBanks, and for publishing combined financial reports of the FHLBanks. Accordingly, the FHLBank System has determined that it is optimal to have the same independent registered public accounting firm to coordinate and perform the separate audits of the Office of Finance and annual financial statements of each FHLBank and the Office of Finance’s annual combined financial report. The FHLBanks and Office of Finance cooperate in selecting and evaluating the performance of the independent auditor, but the responsibility for the appointment of and oversight of the independent auditor remains solely with the audit committees of each FHLBank and the Office of Finance.

PricewaterhouseCoopers LLP (PwC) has been the independent auditor for the FHLBank System and the Bank since 1990. In connection with the appointment of the Bank’s independent auditor, the Audit Committee’s evaluation included consultation with the audit committees of the other FHLBanks and the Office of Finance. Specific considerations included:

•an analysis of the risks and benefits of retaining the same firm as independent auditor versus engaging a different firm, including consideration of:

•PwC’s engagement audit partner, engagement quality review partner and audit team rotation;

•PwC’s tenure as the Bank’s and the FHLBank System’s independent auditor;

•benefits associated with engaging a different firm as independent auditor; and

•potential disruption and risks associated with changing the Bank’s independent auditor.

•the firm’s depth and breadth of understanding of the Bank's business, operations, and accounting policies and practices;

•PwC’s historical and recent performance on the Bank’s audit, including the results of an internal survey of PwC service and quality;

•an analysis of PwC’s known legal risks and significant proceedings;

•external data relating to audit quality and performance, including recent PCAOB audit quality inspection reports on PwC and its peer firms; and

•the appropriateness of PwC’s fees, on both an absolute basis and as compared to its peer firms.

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Audit fees represent fees for professional services provided in connection with the audit of the Bank’s annual financial statements and internal control over financial reporting and reviews of the Bank’s quarterly financial statements, regulatory filings, consents and other SEC matters. The Audit Committee has reviewed and approved the fees paid to the independent auditor for audit, audit-related and other services, and has determined that PwC is independent.

In its oversight role, the Audit Committee reviewed and discussed the Bank’s audited financial statements and its internal controls over financial reporting with management and with PwC as the Bank’s independent auditor for the year ended December 31, 2024. Management and PwC indicated that the Bank’s financial statements as of and for the year ended December 31, 2024 were fairly stated in accordance with GAAP and that the Bank’s internal controls over financial reporting were effective as of December 31, 2024. The Audit Committee discussed with PwC and management the significant accounting policies used and significant estimates made by management in the preparation of the Bank’s audited financial statements, and the overall quality of the Bank’s financial statements and management's financial reporting process. The Audit Committee and PwC also discussed any issues deemed significant by PwC or the Audit Committee, including the matters required to be discussed pursuant to PCAOB Auditing Standard No. 1301: Communications with Audit Committees, the rules of the Securities Exchange Commission (SEC), and other applicable regulations.

PwC has provided to the Audit Committee written disclosures and the letter required by applicable requirements of the PCAOB regarding the independent auditor's communications with the Audit Committee concerning independence, and the Audit Committee discussed with PwC the firm’s independence.

Based on its review of the audited financial statements and the various discussions referred to above, the Audit Committee recommended to the Board of Directors that the Bank’s audited financial statements be included in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for filing with the SEC.

Submitted by the Audit Committee,

INCUMBENT AUDIT COMMITTEE MEMBERS:

William L. Lusk, Chair

Kimberly Casiano, Vice Chair

Eduardo J. Arriola

Susan F. Dewey

Suzanne S. DeFerie

R. Thorwell Dunlap, III

Kathleen C. McKinney

3 of 4

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2024	Feb. 28, 2025	Jun. 30, 2024
Document and Entity Information [Abstract]
Entity Tax Identification Number	56-6000442
Entity File Number	000-51845
City Area Code	404
Entity Address, Address Line One	1475 Peachtree Street, NE
Local Phone Number	888-8000
Entity Address, City or Town	Atlanta
Entity Registrant Name	FEDERAL HOME LOAN BANK OF ATLANTA
Entity Central Index Key	0001331465
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		57,324,212
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Voluntary Filing Status	No
Entity Well Known Seasoned Issuer	No
Entity Public Float			$ 0
Common Stock, Value, Outstanding			$ 5,547,632,800
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Entity Incorporation, State or Country Code	X1
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30309
Entity Interactive Data Current	Yes
Document Financial Statement Error Correction [Flag]	false

XML

Audit Information	12 Months Ended
	Dec. 31, 2024
Audit Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Atlanta, Georgia
Auditor Firm ID	238

XML

Statements of Condition - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Assets [Abstract]
Cash and due from banks		$ 35	$ 142
Interest-bearing deposits (including deposits with other FHLBanks of $3 as of December 31, 2024 and 2023)		1,493	1,833
Securities purchased under agreements to resell		21,200	12,500
Federal funds sold		7,158	8,710
Investment securities:
Available-for-sale securities (amortized cost of $4,791 and $2,455 as of December 31, 2024 and 2023, respectively)		4,790	2,450
Held-to-maturity securities (fair value of $25,140 and $28,335 as of December 31, 2024 and 2023, respectively)	[1]	25,443	28,714
Total investment securities		30,233	31,164
Advances	[2]	85,829	96,608
Mortgage loans held for portfolio, net		89	103
Accrued interest receivable		490	673
Derivative assets		445	523
Other assets, net		119	114
Total assets		147,091	152,370
Liabilities [Abstract]
Interest-bearing deposits		2,312	1,568
Consolidated obligations, net:
Discount notes		32,152	25,972
Bonds		103,699	115,600
Total consolidated obligations, net		135,851	141,572
Mandatorily redeemable capital stock		1	0
Accrued interest payable		721	902
Affordable Housing Program payable		157	108
Derivative liabilities		12	5
Other liabilities		104	99
Total liabilities		139,158	144,254
Commitments and contingencies (Note 15)
Capital
Total capital stock Class B putable		5,148	5,597
Retained earnings:
Restricted		920	781
Unrestricted		1,865	1,743
Total retained earnings		2,785	2,524
Accumulated other comprehensive loss		0	(5)
Total capital		7,933	8,116
Total liabilities and capital		147,091	152,370
Subclass B1 [Member]
Capital
Total capital stock Class B putable		1,043	991
Subclass B2 [Member]
Capital
Total capital stock Class B putable		4,086	4,590
Subclass B3
Capital
Total capital stock Class B putable		$ 19	$ 16

[1] (1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

[2] Carrying amounts exclude accrued interest receivable of $375 and $577 as of December 31, 2024 and 2023, respectively.

XML

Statements of Condition (Parenthetical) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Deposits with other FHLBanks		$ 3	$ 3
Available-for-sale, amortized cost	[1]	4,791	2,455
Held-to-maturity securities, fair value		$ 25,140	$ 28,335
Capital stock Class B putable par value (per share)		$ 100	$ 100
Subclass B1 [Member]
Capital stock, shares issued		10,435,821	9,908,193
Capital stock, shares outstanding		10,435,821	9,908,193
Subclass B2 [Member]
Capital stock, shares issued		40,858,424	45,897,094
Capital stock, shares outstanding		40,858,424	45,897,094
Subclass B3
Capital stock, shares issued		189,559	159,192
Capital stock, shares outstanding		189,559	159,192

[1] Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

XML

Statements of Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Interest income
Advances	$ 5,467	$ 6,681	$ 1,748
Interest-bearing deposits	168	222	62
Securities purchased under agreements to resell	324	347	143
Federal funds sold	686	717	173
Available-for-sale securities	179	79	26
Held-to-maturity securities	1,524	1,354	351
Mortgage loans	5	6	7
Loans to other FHLBanks		0	1
Total interest income	8,353	9,406	2,511
Interest expense
Consolidated obligation discount notes	1,210	1,798	805
Consolidated obligation bonds	6,076	6,617	1,345
Interest-bearing deposits	101	102	34
Interest Expense, Operating, Total	7,387	8,517	2,184
Net interest income	966	889	327
Noninterest income (loss)
Net gains (losses) on derivatives	1	(4)	2
Standby letters of credit fees	17	10	8
Gain on litigation settlements, net	0	0	4
Other, net	5	(1)	2
Total noninterest income	23	5	16
Noninterest expense
Compensation and benefits	85	80	65
Other operating expenses	55	51	47
Finance Agency	13	13	10
Office of Finance	9	8	8
Voluntary housing contribution	49	19	5
Other, net	4	2	3
Total noninterest expense	215	173	138
Income before assessment	774	721	205
Affordable Housing Program assessment	77	72	21
Net income	$ 697	$ 649	$ 184

XML

Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 697	$ 649	$ 184
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	4	29	(25)
Pension and postretirement benefits	1	0	7
Total other comprehensive income (loss)	5	29	(18)
Total comprehensive income	$ 702	$ 678	$ 166

XML

Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Capital Stock Class B Putable [Member]	Retained Earnings [Member]	Retained Earnings, Restricted [Member]	Retained Earnings, Unrestricted [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance (shares) at Dec. 31, 2021		24
Beginning balance at Dec. 31, 2021	$ 4,595	$ 2,383	$ 2,228	$ 615	$ 1,613	$ (16)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of capital stock (shares)		94
Issuance of capital stock	9,420	$ 9,420
Repurchase/redemption of capital stock (shares)		(64)
Repurchase/redemption of capital stock	(6,367)	$ (6,367)
Net shares reclassified to mandatorily redeemable capital stock (shares)		0
Net stock reclassified to mandatorily redeemable capital stock	(39)	$ (39)
Comprehensive income (loss)	166		184	36	148	(18)
Cash dividends on capital stock	(129)		(129)		(129)
Ending balance (shares) at Dec. 31, 2022		54
Ending balance at Dec. 31, 2022	7,646	$ 5,397	2,283	651	1,632	(34)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of capital stock (shares)		125
Issuance of capital stock	12,477	$ 12,477
Repurchase/redemption of capital stock (shares)		(123)
Repurchase/redemption of capital stock	(12,274)	$ (12,274)
Net shares reclassified to mandatorily redeemable capital stock (shares)		0
Net stock reclassified to mandatorily redeemable capital stock	(3)	$ (3)
Comprehensive income (loss)	678		649	130	519	29
Cash dividends on capital stock	(408)		(408)	0	(408)
Ending balance (shares) at Dec. 31, 2023		56
Ending balance at Dec. 31, 2023	8,116	$ 5,597	2,524	781	1,743	(5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of capital stock (shares)		88
Issuance of capital stock	8,790	$ 8,790
Repurchase/redemption of capital stock (shares)		(93)
Repurchase/redemption of capital stock	(9,238)	$ (9,238)
Net shares reclassified to mandatorily redeemable capital stock (shares)		0
Net stock reclassified to mandatorily redeemable capital stock	(1)	$ (1)
Comprehensive income (loss)	702		697	139	558	5
Cash dividends on capital stock	(436)		(436)	0	(436)
Ending balance (shares) at Dec. 31, 2024		51
Ending balance at Dec. 31, 2024	$ 7,933	$ 5,148	$ 2,785	$ 920	$ 1,865	$ 0

XML

Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Operating activities
Net income	$ 697	$ 649	$ 184
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization (accretion)	(58)	(10)	266
Net change in derivative and hedging activities	132	(470)	1,066
Net change in:
Accrued interest receivable	189	(196)	(429)
Other assets	(6)	(6)	(5)
Affordable Housing Program payable	49	48	(3)
Accrued interest payable	(182)	421	409
Other liabilities	5	19	(1)
Total adjustments	129	(194)	1,303
Net cash provided by (used in) operating activities	826	455	1,487
Investing activities
Interest-bearing deposits	1,210	237	(2,533)
Securities purchased under agreements to resell	(8,700)	(6,250)	750
Federal funds sold	1,552	(674)	(1,616)
Available-for-sale securities
Proceeds from principal collected	0	2,650	0
Purchases of long-term	(2,337)	(2,284)	(98)
Held-to-maturity securities:
Proceeds from maturities and paydowns	4,727	2,429	3,431
Purchases of long-term	(1,450)	(8,514)	(11,150)
Advances, net	(10,633)	(13,347)	65,463
Mortgage loans:
Proceeds from principal collected	13	17	29
Purchases of premises, equipment, and software	(8)	(8)	(14)
Net cash provided by (used in) investing activities	5,640	950	(76,664)
Financing activities
Net change in interest-bearing deposits	762	(237)	(233)
Net payments on derivatives containing a financing element	0	0	(4)
Proceeds from issuance of consolidated obligations:
Discount notes	237,402	227,126	785,489
Discount notes transferred from other FHLBanks	6	0	0
Bonds	160,855	186,086	90,873
Payments for debt issuance costs	(6)	(8)	(6)
Payments for maturing and retiring consolidated obligations:
Discount notes	(231,211)	(229,776)	(771,446)
Discount notes transferred to other FHLBanks	(2)	(11,158)	0
Bonds	(173,494)	(172,979)	(33,118)
Bonds Transferred to Other FHLBanks	0	(250)	0
Proceeds from issuance of capital stock	8,790	12,477	9,420
Payments for repurchase/redemption of capital stock	(9,238)	(12,274)	(6,367)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(1)	(3)	(40)
Cash dividends paid	(436)	(408)	(129)
Net cash provided by (used in) financing activities	(6,573)	(1,404)	74,439
Net increase (decrease) in cash and due from banks	(107)	1	(738)
Cash and due from banks at beginning of the year	142	141	879
Cash and due from banks at end of the year	35	142	141
Cash paid for:
Interest	7,109	7,642	1,516
Affordable Housing Program assessments, net	51	34	28
Noncash investing and financing activities:
Net stock reclassified to mandatorily redeemable capital stock	$ 1	$ 3	$ 39

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Nature of Operations

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

The Federal Home Loan Bank of Atlanta (Bank) is a federally chartered corporation and is one of 11 district Federal Home Loan Banks (FHLBanks). Each FHLBank operates as a separate entity within a defined geographic district and has its own management, employees, and board of directors. The Bank’s defined geographic district includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The FHLBanks are government-sponsored enterprises (GSEs) that were organized under the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), to serve the public by enhancing the availability of credit for residential mortgages and targeted community developments. The primary function of the Bank is to provide readily available, competitively priced funding to its member institutions.

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock are entitled to receive dividends on their capital stock, to the extent declared by the Bank’s board of directors.

Federally-insured depository institutions, insurance companies, privately-insured state-chartered credit unions, and community development financial institutions that are located in the Bank’s defined geographic district and engaged in residential housing finance are eligible to apply for membership. All members must purchase and hold capital stock of the Bank. A member’s stock requirement is based on the amount of its total assets, as well as the amount of certain of its business activities with the Bank. Housing associates (including state and local housing authorities) that meet certain statutory criteria may also borrow from the Bank. While they are eligible to borrow, housing associates are not members of the Bank and are not allowed to hold capital stock. The Bank does not sponsor any special purpose entities or any other types of off-balance sheet conduits.

The Bank operates one reportable segment that makes advances (loans) to and provides other limited financial services to its members to meet the housing, business, and economic development needs of the communities they serve, in accordance with its housing finance and community development mission. In addition, the Bank maintains a portfolio of investments. The primary source of funding and liquidity is the issuance of consolidated obligations in the capital markets. The Bank is capitalized through the purchase of capital stock by its members. The Bank manages risk and monitors financial performance across the entire balance sheet. Descriptions of all significant accounting policies related to the Bank’s activities are included in “Item 8. Financial Statements and Supplementary Data – Note 2 – Summary of Significant Accounting Policies” in the 2024 Form 10-K. The president and chief executive officer is the chief operating decision maker (CODM).

Net interest income and net income before assessment, which are reported on the statements of income, are the primary performance metrics used by the CODM in that they are a consideration in the return of capital to the Bank’s members in the form of dividends, they are used to determine the annual commitment to the Bank’s Affordable Housing and Community Investment programs, and used as a measure of product utilization. These performance measures are also used for benchmarking and budget analysis. The CODM also reviews significant expenses, including those that are presented in the Statements of Income. All financial segment information required by the authoritative accounting guidance, including the primary performance metrics used by the CODM, can be found in the Statements of Income and Statements of Condition.

The Bank’s major customers include members with revenue in excess of 10 percent of the Bank’s total revenue, which includes interest income and noninterest income. The Bank had two major customers with total revenue of $2,465, $3,120, and $513 for the years ended December 31, 2024, 2023, and 2022, respectively.

The Federal Housing Finance Agency (Finance Agency), an independent agency in the executive branch of the U.S. government, supervises and regulates the FHLBanks and is responsible for ensuring that the FHLBanks (1) operate in a safe and sound manner, including that they maintain adequate capital and internal controls; (2) foster liquid, efficient, competitive, and resilient national housing finance markets through their operations and activities; (3) comply with applicable laws and regulations; and (4) carry out their housing finance mission through authorized activities that are consistent with the public interest. The Finance Agency also establishes policies and regulations covering the operations of the FHLBanks.

The Federal Home Loan Banks Office of Finance (Office of Finance), a joint office of the FHLBanks, facilitates the issuance and servicing of the FHLBanks’ debt instruments, known as consolidated obligations, and prepares the combined quarterly and annual financial reports of the FHLBanks. As provided by the FHLBank Act and applicable regulations, the Bank’s consolidated obligations are backed only by the financial resources of the FHLBanks. Consolidated obligations are the primary

source of funds for the Bank in addition to deposits, other borrowings, and capital stock issued to members. The Bank primarily uses these funds to provide advances to members. The Bank also provides members and non-members with correspondent banking services, such as safekeeping, wire transfer, and cash management services.

Segment Reporting Disclosure

The Bank operates one reportable segment that makes advances (loans) to and provides other limited financial services to its members to meet the housing, business, and economic development needs of the communities they serve, in accordance with its housing finance and community development mission. In addition, the Bank maintains a portfolio of investments. The primary source of funding and liquidity is the issuance of consolidated obligations in the capital markets. The Bank is capitalized through the purchase of capital stock by its members. The Bank manages risk and monitors financial performance across the entire balance sheet. Descriptions of all significant accounting policies related to the Bank’s activities are included in “Item 8. Financial Statements and Supplementary Data – Note 2 – Summary of Significant Accounting Policies” in the 2024 Form 10-K. The president and chief executive officer is the chief operating decision maker (CODM).

Net interest income and net income before assessment, which are reported on the statements of income, are the primary performance metrics used by the CODM in that they are a consideration in the return of capital to the Bank’s members in the form of dividends, they are used to determine the annual commitment to the Bank’s Affordable Housing and Community Investment programs, and used as a measure of product utilization. These performance measures are also used for benchmarking and budget analysis. The CODM also reviews significant expenses, including those that are presented in the Statements of Income. All financial segment information required by the authoritative accounting guidance, including the primary performance metrics used by the CODM, can be found in the Statements of Income and Statements of Condition.

The Bank’s major customers include members with revenue in excess of 10 percent of the Bank’s total revenue, which includes interest income and noninterest income. The Bank had two major customers with total revenue of $2,465, $3,120, and $513 for the years ended December 31, 2024, 2023, and 2022, respectively.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank’s management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could differ significantly from these estimates.

Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank’s best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates.

Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented.

The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 13—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented.

Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. Interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold provide liquidity and are carried at amortized cost. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO) including the following: Standard and Poor’s (S&P), Moody’s Investors Service (Moody’s), and Fitch Ratings. All of these investments were with counterparties rated investment grade as of December 31, 2024 and 2023. These investments are evaluated at least quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank uses the collateral maintenance provision practical expedient to evaluate potential credit losses related to securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly 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 equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2024 and 2023. The carrying value of securities purchased under agreements excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. All investments in interest-bearing deposits and federal funds sold were repaid or expected to be repaid according to the contractual terms as of December 31, 2024 and 2023. No allowance for credit losses was recorded for these assets as of December 31, 2024 and 2023. The carrying values of interest-bearing deposits and federal funds sold excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

Investments in Debt Securities. The Bank classifies investment securities as trading, available-for-sale, or held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis.

The Bank classifies certain investments in debt securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank’s liquidity position. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net (losses) gains on investment securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not have any investment securities classified as trading as of December 31, 2024 and 2023.

The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these securities not in qualifying fair value hedging relationships in other comprehensive income (loss).

For available-for-sale securities in hedging relationships that qualify as fair value hedges, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income on available-for-sale securities together with the related change in fair value of the derivative, and records the remainder of the change in the fair value of the investment in other comprehensive income (loss) as net unrealized gains (losses) on available-for-sale securities.

For investments in debt securities classified as available-for-sale, the Bank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded as net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss).

For improvements in impaired available-for-sale securities with an allowance for credit losses, the allowance for credit losses associated with recoveries may be derecognized up to its full amount.

The Bank has not established an allowance for credit losses on its available-for-sale securities as of December 31, 2024 and 2023 because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Investments in debt securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and carried at amortized cost, which is original cost net of periodic principal repayments and amortization of premiums and

accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior.

Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense). The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately.

The Bank’s held-to-maturity securities consist of GSE debt obligations, state or local housing agency debt obligations, and mortgage-backed securities (MBS) issued by the Government National Mortgage Association (Ginnie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae) that are backed by single-family or multifamily mortgage loans. The Bank only purchases securities considered investment quality. All of these securities were rated double-A, or above, by a NRSRO as of December 31, 2024 and 2023, based on the lowest long-term credit rating for each security.

The Bank has not established an allowance for credit loss on any of its held-to-maturity securities as of December 31, 2024 and 2023, because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Advances. The Bank reports advances (secured loans to members, former members, or housing associates) at amortized cost. Amortized cost is original cost net of periodic principal repayments and amortization of premiums and accretion of discounts (including discounts related to the Affordable Housing Program (AHP) and Community Investment Cash Advance program), net deferred fees or costs, and fair value hedge adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Accrued interest receivable is recorded separately on the Statements of Condition.

Advances are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank manages its credit exposure to advances through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower’s financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower’s needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated fair value of the collateral required to secure each borrower’s advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank’s capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank’s overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances.

Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien

creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law.

The Bank considers each borrower’s payment status, as well as financial strength and creditworthiness to be the primary indicators of credit quality on its advances. The Bank also had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2024 and 2023.

The Bank continues to evaluate and make changes to its credit and collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2024 and 2023. In addition, there were no modifications related to advances with borrowers experiencing financial difficulties during the year ended December 31, 2024.

Based upon the Bank’s credit analysis, credit and collateral policies, collateral held as security, and the repayment history on advances, the Bank did not expect any credit losses on advances as of December 31, 2024 and 2023. Accordingly, the Bank has not recorded any allowance for credit losses on advances as of December 31, 2024 and 2023.

Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as part of the advances line item in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the terms of the modified advance are at least as favorable to the lender as the terms offered to borrowers with similar collection risks for comparable advances and the modification to the terms of the advance is more than minor, the advance meets the accounting criteria for a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as prepayment fees on advances, which is included in the advances line item in the interest income section of the Statements of Income.

Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. These mortgage loans are reported at amortized cost, which is original cost, net of periodic principal repayments and amortization of premiums and accretion of discounts, fair value hedge adjustments on loans initially classified as mortgage loan commitments, and direct write-downs. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs at least quarterly an assessment of its mortgage loans held for portfolio to estimate expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method.

A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status if it is determined that either (1) the collection of interest or principal is doubtful or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancement) and in the process of collection. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal, or (2) it otherwise becomes well secured and in the process of collection. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of (1) the U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met.

Finance Agency regulations require that mortgage loans held in the Bank’s portfolios be credit enhanced. For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses.

At least quarterly, the Bank performs an assessment of its mortgage loans held for portfolio to estimate expected credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. If a loan was purchased at a discount, the discount does not offset the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status.

The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. The servicer provides and maintains insurance or a guarantee from the applicable government agency. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees, but in such instance, the Bank would have recourse against the servicer for such failure. Based on the Bank’s assessment of its servicers and the collateral backing these loans, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2024 and 2023.

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Derivatives and Hedging Activities. All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with a derivative are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative.

Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify as, a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk (including changes that reflect losses or gains on firm commitments), are recorded in net interest income in the same line as the earnings effect of the hedged item. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank’s risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income.

The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank’s results of operations.

The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables

and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains (losses) on derivatives” on the Statements of Income.

The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be highly effective in offsetting changes in the fair value of a hedged risk, including hedged items such as firm commitments; (2) the derivative and/or the hedged item expires or is sold, terminated, or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) the bank determines that designating the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued due to the Bank’s determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative, or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings.

The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to a non-qualifying hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current-period earnings (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument.

Premises, Equipment, and Software. Premises, equipment, and the cost of purchased software and certain costs incurred in developing computer software for internal use are recorded in “Other assets” on the Statements of Condition. The Bank records these items at cost, less accumulated depreciation or amortization. The Bank computes depreciation and amortization using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware—three; capitalized computer software cost—three; office equipment—eight; office furniture and building improvements—10; and building—40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Premises, equipment, and capital computer software cost and related depreciation and amortization expense were not material to the Bank’s financial condition and results of operations for the reported periods.

Deposits. The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds. The Bank records these items in “Interest-bearing deposits” on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate.

Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation.

Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a merger or acquisition, charter termination, or involuntary termination from membership since the member’s shares will then meet the definition of a mandatorily redeemable financial instrument. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows.

If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense.

Off-Balance Sheet Credit Exposures. The Bank evaluates its off-balance sheet credit exposure on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that result in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account the quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral that they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on the Statements of Condition for these commitments as of December 31, 2024 or 2023.

Restricted Retained Earnings. The Joint Capital Enhancement Agreement, as amended (Capital Agreement), provides that each FHLBank will, on a quarterly basis, allocate 20 percent of its net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of that FHLBank’s average balance of outstanding consolidated obligations for the calendar quarter. Additionally, the Capital Agreement provides that amounts in restricted retained earnings in excess of 150 percent of the Bank’s restricted retained earnings minimum (i.e., one percent of the Bank’s average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter) may be released from restricted retained earnings. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition.

Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks’ portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank’s minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank’s proportionate share of the Office of Finance’s operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation.

Voluntary Housing and Community Investment. The Banks’ voluntary contributions to AHP and other housing and community investment initiatives are recorded in a separate line within non-interest expense on the Statements of Income.

Voluntary AHP is expensed when the Bank’s board approves the terms of the irrevocable award and the likelihood of award is probable and the amount is estimable. The amount is subject to the same regulatory requirements as AHP assessments.

Other voluntary housing and community investment initiatives primarily consist of voluntary grants and contributions and subsidized advances. Voluntary grants and contributions are recognized as an expense in the period in which the grant or contribution is considered an unconditional promise to give. Subsidized advances are advances that have an interest rate below the customary interest rate for non-subsidized advances with similar terms. For a subsidized advance, at the time of disbursement, the Bank will determine the present value of the advance using the imputed market interest rate as the discount rate. In addition, the Bank records a discount on the advance with a corresponding voluntary housing and community investment expense related to the inherent contribution made at the time the Bank issues the advance. The discount on a subsidized advance is accreted to interest income on advances using a level-yield methodology over the life of the advance.

Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP that provides subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low and low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP subsidized advances that have interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank’s related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the contractual interest method over the life of the advance.

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Recently Issued and Adopted Accounting Guidance

12 Months Ended

Dec. 31, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recently Issued And Adopted Accounting Guidance

Recently Issued But Not Yet Adopted Accounting Standards

The following table provides a summary of the Financial Accounting Standards Board’s recently issued accounting standards not yet adopted by the Bank.

Accounting Standard Update (ASU)	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
Disaggregation of Income Statement Expenses (ASU 2024-03)	The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses.	This guidance becomes effective for the annual period ended December 31, 2027, and the interim periods thereafter.	The adoption of this guidance will not have an impact on the Bank's results of operations, but may impact future financial statement disclosures.

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Cash and Due from Banks

12 Months Ended

Dec. 31, 2024

Cash and Cash Equivalents [Abstract]

Cash and Due from Banks

Cash and Due from Banks

The Bank maintains a collected cash balance with a commercial bank, which is a member, in return for certain services, and the average collected cash balance was $8 and $9 for the years ended December 31, 2024 and 2023, respectively. There are no legal restrictions regarding the withdrawal of these funds.

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Investments Debt Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments in Debt Securities

Investments in Debt Securities

Available-for-sale Securities

The following table presents available-for-sale securities. All investment securities classified as available-for-sale are fixed-rate securities.

	As of December 31,
	2024								2023
	Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value		Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value
U.S. Treasury obligations	$	4,063	$	1	$	(1)	$	4,063	$	2,208	$	—	$	(5)	$	2,203
Mortgage-backed securities:
Government-sponsored enterprises commercial	728		1		(2)		727		247		—		—		247
Total	$	4,791	$	2	$	(3)	$	4,790	$	2,455	$	—	$	(5)	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

The following table presents available-for-sale securities with gross unrealized losses. The gross unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position. There were no available-for-sale securities with a continuous unrealized loss greater than 12 months as of December 31, 2024 and 2023.

	As of December 31, 2024
	Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations	$	1,441	$	(1)
Mortgage-backed securities:
Government-sponsored enterprises commercial	487		(2)
Total	$	1,928	$	(3)

	As of December 31, 2023
		Less than 12 Months
		Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations		$	2,105	$	(5)
Mortgage-backed securities:
Government-sponsored enterprises commercial		247		—
		$	2,352	$	(5)

The following table presents the amortized cost and estimated fair value of available-for-sale securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Due in one year or less	$	100	$	100	$	—	$	—
Due after one year through five years	3,963		3,963		2,208		2,203
Total non-mortgage-backed securities	4,063		4,063		2,208		2,203
Mortgage-backed securities (2)	728		727		247		247
Total	$	4,791	$	4,790	$	2,455	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

(Held-to-maturity Securities

The following table presents held-to-maturity securities.

	As of December 31,
	2024								2023
	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
State or local housing agency debt obligations	$	1	$	—	$	—	$	1	$	1	$	—	$	—	$	1
Government-sponsored enterprises debt obligations	795		3		—		798		1,475		4		(12)		1,467
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	2,010		2		(36)		1,976		2,715		9		(32)		2,692
Government-sponsored enterprises residential	8,420		13		(151)		8,282		8,311		18		(185)		8,144
Government-sponsored enterprises commercial	14,217		15		(149)		14,083		16,212		9		(190)		16,031
Total	$	25,443	$	33	$	(336)	$	25,140	$	28,714	$	40	$	(419)	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	435	$	436	$	680	$	668
Due after one year through five years	301		303		736		740
Due after five years through 10 years	60		60		60		60
Total non-mortgage-backed securities	796		799		1,476		1,468
Mortgage-backed securities (2)	24,647		24,341		27,238		26,867
Total	$	25,443	$	25,140	$	28,714	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

The following table presents interest-rate payment terms for investment securities classified as held-to-maturity.

	As of December 31,
	2024		2023
Non-mortgage-backed securities:
Fixed-rate	$	1	$	551
Variable-rate	795		925
Total non-mortgage-backed securities	796		1,476
Mortgage-backed securities:
Fixed-rate	2,850		3,341
Variable-rate	21,797		23,897
Total mortgage-backed securities	24,647		27,238
Total amortized cost (1)	$	25,443	$	28,714

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

For information related to the Bank’s credit risk on investments in debt securities and allowance for credit losses, see Note 2—Summary of Significant Accounting Policies.

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Advances

12 Months Ended

Dec. 31, 2024

Advances [Abstract]

Advances

Advances

The Bank offers a wide range of fixed- and variable-rate advance products with different maturities, interest rates, payment characteristics, and optionality. Fixed-rate advances generally have maturities ranging from one day to 30 years. Variable-rate advances generally have maturities ranging from less than 30 days to 20 years, where the interest rates reset periodically at a fixed spread to Secured Overnight Financing Rate (SOFR) or other specified indices.

Redemption Terms. The following table presents the Bank’s advances outstanding by redemption terms.

	As of December 31,
	2024		2023
Due in one year or less	$	59,497	$	70,501
Due after one year through two years	9,155		6,038
Due after two years through three years	4,768		5,375
Due after three years through four years	5,327		3,075
Due after four years through five years	2,730		7,544
Due after five years	4,831		4,415
Total par value	86,308		96,948
Deferred prepayment fees	3		10
Discounts	(1)		(1)
Fair value hedging adjustments	(481)		(349)
Total (1)	$	85,829	$	96,608

___________

(1) Carrying amounts exclude accrued interest receivable of $375 and $577 as of December 31, 2024 and 2023, respectively.

The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $6,469 and $2,789 as of December 31, 2024 and 2023, respectively.

The following table presents advances by year of contractual maturity or next call date for callable advances.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	62,240	$	72,792
Due or callable after one year through two years	7,724		5,968
Due or callable after two years through three years	4,205		4,053
Due or callable after three years through four years	4,907		2,621
Due or callable after four years through five years	2,426		7,124
Due or callable after five years	4,806		4,390
Total par value	$	86,308	$	96,948

Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $3,916 and $2,693 as of December 31, 2024 and 2023, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date.

	As of December 31,
	2024		2023
Due or convertible in one year or less	$	63,194	$	72,951
Due or convertible after one year through two years	8,683		6,154
Due or convertible after two years through three years	3,994		5,117
Due or convertible after three years through four years	4,870		3,040
Due or convertible after four years through five years	1,526		5,584
Due or convertible after five years	4,041		4,102
Total par value	$	86,308	$	96,948

Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances.

	As of December 31,
	2024		2023
Fixed-rate:
Due in one year or less	$	15,669	$	17,162
Due after one year	21,127		22,100
Total fixed-rate	36,796		39,262
Variable-rate:
Due in one year or less	43,828		53,339
Due after one year	5,684		4,347
Total variable-rate	49,512		57,686
Total par value	$	86,308	$	96,948

Advance Concentrations. The Bank’s advances are concentrated in commercial banks, credit unions, savings institutions, and insurance companies, and further is concentrated in certain larger borrowing relationships. The concentration of the Bank’s advances to its 10 largest borrowers was $63,317, or 73.4 percent of total advances, and $70,499, or 72.7 percent of total advances, as of December 31, 2024 and 2023, respectively.

For information related to the Bank’s credit risk on advances and allowance for credit losses, see Note 2—Summary of Significant Accounting Policies.

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Mortgage Loans Held for Portfolio

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Mortgage Loans Held for Portfolio

Mortgage Loans Held for Portfolio

The Bank purchased fixed-rate residential mortgage loans directly from PFIs, who service and credit enhance the residential mortgage loans that they sold to the Bank. The Bank ceased purchasing these loans directly from PFIs in 2008. The Bank may also acquire fixed-rate residential mortgage loans through participation in eligible mortgage loans purchased from other FHLBanks.

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase.

	As of December 31,
	2024		2023
Medium-term (15 years or less)	$	1	$	1
Long-term (greater than 15 years)	88		102
Total unpaid principal balance	89		103
Total mortgage loans held for portfolio (1)	89		103
Allowance for credit losses on mortgage loans	—		—
Mortgage loans held for portfolio, net	$	89	$	103

____________

(1) Amortized cost, excluding accrued interest receivable that was not material for the reported periods.

The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type.

	As of December 31,
	2024		2023
Conventional mortgage loans	$	82	$	94
Government-guaranteed or insured mortgage loans	7		9
Total unpaid principal balance	$	89	$	103

Payment status is a key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following tables present the payment status for conventional mortgage loans. All of the Bank’s conventional mortgage loans were originated prior to 2018.

	As of December 31,
	2024		2023
Payment status, at amortized cost:(1)
Past due 30-59 days	$	2	$	2
Past due 60-89 days	1		1
Past due 90 days or more	2		2
Total past due mortgage loans	5		5
Current mortgage loans	77		89
Total conventional mortgage loans	$	82	$	94

___________

(1) Amortized cost excludes accrued interest receivable that was not material for the reported periods.

The following tables present the other delinquency statistics for all mortgage loans.

	As of December 31, 2024
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at amortized cost:
In process of foreclosure (1)	$	—		$	—		$	—
Seriously delinquent rate (2)	2.28		%	1.54		%	2.22		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

	As of December 31, 2023
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at recorded investment:
In process of foreclosure (1)	$	1		$	—		$	1
Seriously delinquent rate (2)	2.17		%	2.43		%	2.19		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

____________

(1) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported.

(2) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment.

(3) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

(4) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2024 and 2023, none of conventional mortgage loans on nonaccrual status had an associated allowance for credit losses because either these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, was greater than the amortized cost of the loans.

For information related to mortgage loan modifications, see Note 2—Summary of Significant Accounting Policies.

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Consolidated Obligations

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Consolidated Obligations

Consolidated Obligations

Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the FHLBanks and are backed only by the financial resources of the FHLBanks.

The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf) and also is jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the consolidated obligation represents a primary liability of such FHLBank. Although it has never occurred, to the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank that is primarily liable for such consolidated obligation, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank for any payments made on its behalf and any other associated costs (including interest to be determined by the Finance Agency). However, if the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its repayment obligations, the Finance Agency may allocate the outstanding liabilities of the noncomplying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding. The Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of the FHLBanks’ outstanding consolidated obligations, including consolidated obligations issued by the Bank, was $1,192,968 and $1,204,316 as of December 31, 2024 and 2023, respectively.

Regulations require each FHLBank to maintain, in the aggregate, unpledged qualifying assets equal to that FHLBank’s consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; mortgages guaranteed or insured by the U.S. or its agencies; participations, mortgages, or other securities of or issued by certain government-sponsored enterprises; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. The Bank held unpledged qualifying assets of $146,523 and $151,730 as of December 31, 2024 and 2023, respectively, compared to a book value of $135,851 and $141,572 in consolidated obligations as of December 31, 2024 and 2023, respectively.

General Terms. Consolidated obligations are issued with either fixed- or variable-rate coupon payment terms and may use a variety of indices for interest-rate resets including the SOFR and others. To meet the expected specific needs of certain investors in consolidated obligations, both fixed- and variable-rate consolidated obligation bonds may contain certain features, which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank generally enters into derivatives containing offsetting features that, in effect, convert the terms of the consolidated obligation bond to those of a simple variable-rate consolidated obligation bond.

These consolidated obligations, beyond having fixed-rate or simple variable-rate coupon payment terms, may also have the following broad term regarding either principal repayment or coupon payment terms:

Optional Principal Redemption Consolidated Obligation Bonds (callable bonds) that the Bank may redeem in whole or in part at its discretion on predetermined call dates according to the terms of the consolidated obligation bond offerings.

With respect to interest payments, consolidated obligation bonds may have the following term in addition to fixed-rate and simple variable-rate payment terms:

Step-up/down Consolidated Obligation Bonds have coupons at fixed rates for specified intervals over the lives of the consolidated obligation bonds. At the end of each specified interval, the coupon rate increases (or decreases) or steps up (or steps down). These consolidated obligation bond issues generally contain call provisions enabling the bonds to be called at the Bank’s discretion.

Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type.

	As of December 31,
	2024		2023
Fixed-rate	$	51,471	$	74,641
Simple variable-rate	49,905		38,288
Step up/down	3,040		4,124
Total par value	$	104,416	$	117,053

Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity.

	As of December 31,
	2024			2023
	Amount		Weighted- average Interest Rate (%)	Amount		Weighted- average Interest Rate (%)
Due in one year or less	$	83,164	4.17	$	84,908	4.77
Due after one year through two years	10,341		1.78	12,584		2.71
Due after two years through three years	6,593		2.83	9,736		1.66
Due after three years through four years	2,197		2.62	6,172		2.70
Due after four years through five years	1,161		3.96	2,552		3.06
Due after five years	960		4.13	1,101		3.07
Total par value	104,416		3.82	117,053		4.13
Premiums	7			12
Discounts	(13)			(13)
Fair value hedging adjustments	(711)			(1,452)
Total	$	103,699		$	115,600

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature.

	As of December 31,
	2024		2023
Noncallable	$	65,259	$	52,117
Callable	39,157		64,936
Total par value	$	104,416	$	117,053

The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	99,033	$	110,423
Due or callable after one year through two years	2,249		2,691
Due or callable after two years through three years	1,362		1,776
Due or callable after three years through four years	1,307		451
Due or callable after four years through five years	70		1,307
Due or callable after five years	395		405
Total par value	$	104,416	$	117,053

Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds and have original contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature.

The following table presents the Bank’s participation in consolidated obligation discount notes.

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of December 31, 2024	$	32,152	$	32,368	4.44
As of December 31, 2023	$	25,972	$	26,241	5.25

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Affordable Housing Program

12 Months Ended

Dec. 31, 2024

Federal Home Loan Banks [Abstract]

Affordable Housing Program

Affordable Housing Program and Voluntary Contributions

Affordable Housing Program. Annually, each FHLBank must set aside 10 percent of its income subject to assessment for the AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100. For purposes of the statutory AHP calculation, each FHLBank’s income subject to assessment is defined as the individual FHLBank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The Bank accrues this expense monthly based on its income subject to assessment. The Bank reduces the AHP liability when it makes grant disbursements or as members use advance subsidies.

If the Bank experienced a net loss during a quarter but had income subject to assessment in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation based on the Bank’s year-to-date income subject to assessment. If the Bank experienced a net loss for a full year, the Bank would have no obligation to the AHP for the year since each FHLBank’s required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate of 10 percent of income subject to assessment for all FHLBanks was less than $100, each FHLBank would be required to contribute additional amounts so that the aggregate contribution of the FHLBanks equals the required $100. Each FHLBanks’ prorated contribution would be determined based on its income in relation to the income of all FHLBanks for the previous year. There was no shortfall in the years ended December 31, 2024, 2023, or 2022. If an FHLBank finds that its required contributions are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. No FHLBank made such an application in the years ended December 31, 2024, 2023, or 2022. The Bank had outstanding principal in AHP-related advances of $7 and $8 as of December 31, 2024 and 2023, respectively.

The following table presents a rollforward of the Bank’s AHP liability, including voluntary non-statutory AHP contributions:

	For the Years Ended December 31,
	2024		2023		2022
AHP liability balance, at beginning of year	$	108	$	59	$	61
Statutory AHP assessment	77		72		21
Voluntary AHP expense	23		11		5
Direct grant disbursements	(52)		(35)		(31)
Recapture amounts and other	1		1		3
AHP liability balance, at end of year	$	157	$	108	$	59

Voluntary Housing and Community Investment. In addition to the statutory AHP assessment, the Bank’s board of directors may, from time to time, authorize voluntary contributions to the AHP or other housing and community investment initiatives. The following table presents the amount of such voluntary contributions authorized by the Bank:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions	$	23	$	11	$	5
Voluntary non-AHP contributions	26		8		—
Total authorized voluntary housing and community investment	$	49	$	19	$	5

Voluntary housing and community investment may be utilized through existing AHP programs or other voluntary programs may be established by the Bank to distribute those funds. The Bank funded the following voluntary non-AHP housing programs during 2024:

•Workforce Housing Plus+ Program. This program was created in response to economic dynamics across the Bank’s district. The program was launched in June 2024. Under this program, eligible homebuyers with household incomes between 80.01 percent to 120 percent of area median income can apply for funding to put towards housing downpayments and closing costs. The properties also must be in the Bank’s district.

•Heirs’ Property Family Wealth Protection Fund. This program was launched in October 2024. Through this fund, organizations working to address the challenge of heirs’ property were invited to apply for funding through the Bank’s members to assist property owners located in low-to-moderate income areas within communities in the Bank’s district. Heirs’ property issues arise when there is a lack of a clear title or documentation of home ownership, when a property owner passes away without a will designating a new owner, the heirs fail to properly vest title to the property in their names, or when a property is left to multiple beneficiaries without a plan to manage the property, creating a tangled title.

•Multifamily Housing Bridge Fund (Bridge Fund). The board approved the Bridge Fund in 2023, and funded the awards in 2024 to help close funding gaps for affordable multifamily rental housing projects caused by the steep rise in interest rates and construction costs. The Bridge Fund offers funding to the Bank’s member financial institutions and their community housing partners in a competitive application process. Eligible projects for the Bridge Fund include multifamily and mixed-use rental housing projects targeted to households earning up to 120 percent of the area median income. Projects must be at least fifty percent complete at the time of application and demonstrate a financing gap related to an increase in construction hard costs, such as construction materials and labor. Projects also must be in the Bank’s district.

The following table presents voluntary contributions reported in noninterest expense as “Voluntary housing and community investment” on the Statements of Income which were allocated as follows:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions:
AHP Homeownership Set-aside Program	$	15	$	11	$	5
AHP General Fund	8		—		—
Total Voluntary non-statutory AHP contributions	23		11		5
Voluntary non-AHP contributions:
Workforce Housing Plus+ Program	20		—		—
Heirs’ Property Family Wealth Protection Fund	6		—		—
Bridge Fund	—		8		—
Total Voluntary non-AHP contributions	26		8		—
Total voluntary housing and community investment	$	49	$	19	$	5

Voluntary contributions that are not disbursed, excluding voluntary non-statutory AHP contributions, are included within “Other liabilities” on the Statements of Condition. The following table presents a rollforward of the Bank’s voluntary non-AHP contributions liability:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-AHP contributions liability,      at beginning of year	$	8	$	—	$	—
Voluntary non-AHP expense	26		8		—
Payments made	(28)		—		—
Voluntary non-AHP contributions liability,      at end of year	$	6	$	8	$	—

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Capital and Mandatorily Redeemable Capital Stock

12 Months Ended

Dec. 31, 2024

Banking Regulation, Total Capital [Abstract]

Capital and Mandatorily Redeemable Capital Stock

Capital

Capital. The Bank is subject to the following three regulatory capital requirements under its capital plan, the FHLBank Act, and Finance Agency regulations.

Risk-Based Capital. The Bank must maintain, at all times, permanent capital in an amount at least equal to the sum of its credit risk capital requirement, its market risk capital requirement, and its operational risk capital requirement, calculated in accordance with the rules and regulations of the Finance Agency. Permanent capital is defined by the FHLBank Act and regulations as the sum of retained earnings and the amounts paid-in for Class B stock. Only permanent capital satisfies the risk-based capital requirement. The Finance Agency may require the Bank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined.

Total Regulatory Capital. The FHLBank Act requires the Bank to maintain total regulatory capital in an amount equal to at least four percent of total assets at all times. Total regulatory capital is defined as the sum of permanent capital, the amounts paid-in for Class A stock (if any), the amount of the Bank’s general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. The Bank has not issued any Class A stock, has no general allowance for losses, and has no other instruments identified in the capital plan and approved by the Finance Agency; therefore, the Bank’s total regulatory capital is equal to its permanent capital as of December 31, 2024 and 2023. Total regulatory capital does not include accumulated other comprehensive income (loss) but does include mandatorily redeemable capital stock.

Leverage Capital. The FHLBank Act requires the Bank to maintain leverage capital in an amount equal to at least five percent of total assets at all times. Leverage capital is defined as the sum of permanent capital weighted 1.5 times and all other components of total capital. Although mandatorily redeemable capital stock is not included in capital for financial reporting purposes, such outstanding stock is considered capital for determining compliance with these regulatory capital requirements.

The following table presents the Bank’s compliance with the Finance Agency’s regulatory capital rules and requirements.

	As of December 31,
	2024						2023
	Required			Actual			Required			Actual
Risk-based capital	$	1,312		$	7,935		$	1,288		$	8,121
Total regulatory capital ratio	4.00		%	5.39		%	4.00		%	5.33		%
Total regulatory capital	$	5,884		$	7,935		$	6,095		$	8,121
Leverage capital ratio	5.00		%	8.09		%	5.00		%	7.99		%
Leverage capital	$	7,355		$	11,902		$	7,619		$	12,182

The Bank’s capital plan provides for three subclasses of Class B stock, as follows:

•shares of subclass B1 capital stock are issued to meet the membership stock requirement under the capital plan;

•shares of subclass B2 capital stock are issued to meet the advances activity-based stock requirement under the capital plan; and

•shares of subclass B3 capital stock are issued to meet the standby letters of credit activity-based stock requirement under the capital plan.

Each subclass of Class B stock is issued, redeemed, and repurchased at a par value of $100 per share. Member shares cannot be purchased or sold except between the Bank and its members at $100 per share par value. The minimum stock requirement for each member is the sum of the membership stock requirement and the activity-based stock requirements. The capital plan permits the Bank’s board of directors to set the membership and activity-based stock requirements within a range as set forth in the capital plan. Activity-based stock held by a member is that amount of subclass B2 or B3 capital stock that the member is required to own for as long as certain transactions between the Bank and the member remain outstanding. The manner in which the activity-based stock requirement is determined under the capital plan is set forth below.

Subclass B1 capital stock. As of December 31, 2024, the membership stock requirement was an amount of subclass B1 capital stock equal to 0.07 percent (seven basis points) of a member’s total assets as of December 31, 2023, subject to a cap of $18. The membership stock requirement is recalculated using the member’s total assets as of the preceding calendar year-end at least annually by March 31.

Subclass B2 capital stock. As of December 31, 2024, the advances activity-based stock requirement was an amount of subclass B2 capital stock equal to the sum of the following:

•4.75 percent of the member’s outstanding par value of advances; and

•8.00 percent of any outstanding targeted debt or equity investments (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004, although none of these investments were outstanding as of December 31, 2024.

The advances activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets) although this percentage was set at zero as of December 31, 2024 and 2023.

Subclass B3 capital stock. As of December 31, 2024, the standby letters of credit activity-based requirement was an amount equal to 0.10 percent (10 basis points) of members’ outstanding standby letters of credit.

The FHLBank Act and Finance Agency regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum regulatory capital requirement. Therefore, from time to time, the Bank’s board of directors may adjust the membership stock requirement and the activity-based stock requirement within specified ranges set forth in the capital plan. Any adjustment outside the ranges would require an amendment to the capital plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the minimum stock requirement.

The FHLBank Act provides that the Bank may repurchase, at its sole discretion, any member’s capital stock investment that exceeds the required minimum amount (excess capital stock). Under certain circumstances, Finance Agency regulations limit the ability of the Bank to create member excess stock. The Bank may not pay dividends in the form of capital stock or issue excess capital stock to any member if the Bank’s excess capital stock exceeds one percent of its total assets or if the issuance of excess capital stock would cause the Bank’s excess capital stock to exceed one percent of its total assets. As of December 31, 2024 and 2023, the Bank’s excess capital stock did not exceed one percent of its total assets.

A member may redeem its excess Class B capital stock at par value payable in cash five years after providing written notice to the Bank. The Bank, at its option, may repurchase a member’s excess capital stock before expiration of the five-year notice period. The Bank’s authority to redeem or repurchase capital stock is subject to a number of limitations.

Under Finance Agency regulations, the Bank’s board of directors may, but is not required to, declare and pay non-cumulative dividends in cash or capital stock from unrestricted retained earnings and current earnings. All shares of capital stock share in any dividend without preference. Dividends are computed on the average daily balance of capital stock outstanding during the relevant time period. The Bank may not pay a dividend if the Bank is not in compliance with any of its regulatory capital requirements or if a payment would cause the Bank to fail to meet any of its regulatory capital requirements.

The Bank declares and pays any dividends only after net income is calculated for the preceding quarter. The following table presents the Bank’s declared and paid quarterly cash dividends in 2024, 2023, and 2022.

	2024			2023			2022
	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)
First quarter	$	117	7.35	$	78	6.37	$	22	3.70
Second quarter	108		7.35	99		6.50	23		3.74
Third quarter	112		7.35	127		6.97	33		4.11
Fourth quarter	99		7.35	104		7.25	51		5.30
Total	$	436	7.35	$	408	6.79	$	129	4.34

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following table presents the components comprising accumulated other comprehensive loss.

	Net Unrealized Gains (Losses) on Available-for-sale Securities		Pension and Postretirement Benefits		Total  Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2021	$	(9)	$	(7)	$	(16)
Other comprehensive income before reclassifications:
Net unrealized losses on available-for-sale securities	(25)		—		(25)
Actuarial gain	—		6		6
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	—		1		1
Net current period other comprehensive (loss) income	(25)		7		(18)
Balance, December 31, 2022	(34)		—		(34)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	29		—		29
Net current period other comprehensive income	29		—		29
Balance, December 31, 2023	(5)		—		(5)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	4		—		4
Actuarial gain	—		1		1
Net current period other comprehensive income	4		1		5
Balance, December 31, 2024	$	(1)	$	1	$	—

____________ 

(1) Included in Noninterest expense - Other on the Statements of Income.

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Pension and Post Retirement Benefit Plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Pension and Post Retirement Benefit Plans

Pension and Postretirement Benefit Plans

The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Plan), a tax-qualified defined-benefit pension plan. The Pentegra Plan is treated as a multiemployer plan for accounting purposes but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra Plan. Under the Pentegra Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Plan covers substantially all officers and employees of the Bank hired before March 1, 2011.

The Pentegra Plan operates on a fiscal year from July 1 through June 30. The Pentegra Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888, and the three-digit plan number is 333. There are no collective bargaining agreements in place at the Bank.

The Pentegra Plan’s annual valuation process includes separately calculating the plan’s funded status and the funded status of each participating employer. The funded status is defined as the fair value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the fair value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30.

The most recent Form 5500 available for the Pentegra Plan is for the year ended June 30, 2023. The contributions made by the Bank during 2024 were not more than five percent of the total contributions for the Pentegra Plan year ended June 30, 2023, and contributions made during 2023 were not more than five percent of the total contributions for the Pentegra Plan year ended June 30, 2022.

The following table presents information on the net pension costs and funded status of the Pentegra Plan.

	2024			2023			2022
Net pension cost charged to compensation and benefit expense for the year ended December 31	$	1		$	1		$	5
Pentegra Plan funded status as of July 1(1) (2)	111.97		%	113.99		%	119.09		%
Bank’s funded status as of July 1	131.40		%	137.29		%	145.40		%

____________

(1) The Pentegra Plan’s funded status as of July 1, 2024, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2024 through March 15, 2025. Contributions made on or before March 15, 2025, and designated for the plan year ended June 30, 2024, will be included in the final valuation as of July 1, 2024. The final funded status as of July 1, 2024, will not be available until the Form 5500 for the plan year July 1, 2024 through June 30, 2025, is filed (this Form 5500 is due to be filed no later than April 2026).

(2) The Pentegra Plan’s funded status as of July 1, 2023, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2023 through March 15, 2024. Contributions made on or before March 15, 2024, and designated for the plan year ended June 30, 2023, will be included in the final valuation as of July 1, 2023. The final funded status as of July 1, 2023, will not be available until the Form 5500 for the plan year July 1, 2023 through June 30, 2024, is filed (this Form 5500 is due to be filed no later than April 2025).

In addition to the above multiemployer pension plan, the Bank has a qualified defined contribution plan, a nonqualified defined contribution plan, a nonqualified deferred compensation plan, a supplemental nonqualified defined benefit plan and a postretirement medical and life insurance plan. The financial amounts related to these plans were not material for the reported periods.

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Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Nature of Business Activity

The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and on its interest-bearing liabilities that finance these assets. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes that it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of its interest-earning assets and funding sources. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits.

The Bank enters into derivatives to manage the interest-rate risk exposure that is inherent in its otherwise unhedged assets and funding sources, to achieve the Bank’s risk management objectives, and to act as an intermediary between its members and counterparties. Finance Agency regulations and the Bank’s risk management policy prohibit the trading or speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of the Bank’s financial management strategy.

The most common ways in which the Bank uses derivatives are to:

•preserve a favorable interest-rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps;

•reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond;

•reduce the interest-rate sensitivity and repricing gaps of assets and liabilities;

•mitigate the adverse earnings effects from the shortening or lengthening of certain assets (e.g., mortgage assets) and liabilities;

•protect the value of existing asset or liability positions;

•manage embedded options in assets and liabilities; and

•achieve overall asset/liability management objectives.

Application of Derivatives

General. The Bank designates derivative instruments in the following three ways: (1) as a fair value hedge of an underlying financial instrument or a firm commitment; (2) as an intermediary transaction; or (3) as a non-qualifying hedge for purposes of asset or liability management.

The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies.

The Bank transacts most of its derivatives with counterparties that are large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. The Bank’s over-the-counter derivatives transactions may either be (1) uncleared derivatives, which are executed bilaterally with a counterparty; or (2) cleared derivatives, which are cleared through a Futures Commission Merchant (clearing agent) with a Derivatives Clearing Organization (Clearinghouse).

Once a derivatives transaction has been accepted for clearing by a Clearinghouse, the derivatives transaction is novated, and the executing counterparty is replaced with the Clearinghouse as the counterparty. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit.

The Bank uses derivatives when they are considered to be the most cost-effective alternative to achieve the Bank’s long-term financial and risk management objectives. Accordingly, the Bank may enter into derivatives that do not qualify for hedge accounting (non-qualifying hedges).

Types of Derivatives

The Bank may use the following types of derivatives to reduce funding costs and to manage its exposure to interest-rate risks inherent in the normal course of business.

Interest-Rate Swaps. An interest-rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest-rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional principal amount at a variable rate for the same period of time. The variable rate received or paid by the Bank in most derivative transaction agreements is SOFR or the overnight indexed swap rate.

Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest-rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes when it is planning to lend or borrow funds in the future. The Bank may enter into both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date, and a receiver swaption is the option to receive fixed interest payments at a later date.

Interest-Rate Cap and Floor Agreements. In an interest-rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest-rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps may be used in conjunction with liabilities, and floors may be used in conjunction with assets. Caps and floors are designed to protect against the interest rate on a variable-rate asset or liability rising above or falling below a certain level.

Types of Hedged Items

At inception, the Bank documents all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition; or (2) firm commitments. The Bank also formally assesses (both at the hedge’s inception and at least quarterly on an ongoing basis) whether the derivatives that it uses in hedging relationships have been effective in

offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges.

Investments. Investment securities may be classified as trading, available-for-sale, or held-to-maturity. The interest-rate and prepayment risk associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest-rate risks by funding investment securities with consolidated obligations that have call features, by hedging the prepayment risk with caps or floors, or by adjusting the duration of the securities by using derivatives to modify the cash flows of the securities. Derivatives held by the Bank that are associated with trading and held-to-maturity securities are designated as a non-qualifying hedge and derivatives held by the Bank associated with available-for-sale securities may qualify as either a fair value hedge or a cash flow hedge, or may be designated as a non-qualifying hedge.

Advances. The Bank offers a variety of advance structures to meet members’ funding needs. These advances may have maturities of up to 30 years with variable or fixed rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and/or options characteristics of advances in order to more closely match the characteristics of the Bank’s funding liabilities. In general, whenever a member executes a fixed- or a variable-rate advance with embedded options, the Bank simultaneously will execute a derivative with terms that offset the terms and embedded options in the advance. For example, the Bank may hedge a fixed-rate advance with an interest-rate swap in which the Bank pays a fixed-rate coupon and receives a variable-rate coupon, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair-value hedge.

Mortgage Assets. The Bank has invested in mortgage assets. The prepayment options embedded in mortgage assets may shorten or lengthen the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest-rate and prepayment risk associated with mortgages through a combination of debt issuance and derivatives. The Bank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may use derivatives to match the expected prepayment characteristics of the mortgages.

Options (interest-rate caps, interest-rate floors and/or options) also may be used to hedge prepayment risk on the mortgages. Many options are not identified to specific mortgages and therefore, do not receive fair-value or cash-flow hedge accounting treatment. The Bank also may purchase interest-rate caps and floors, swaptions, callable swaps, calls, and puts to minimize the prepayment risk embedded in the mortgage loans. Although these derivatives are valid non-qualifying hedges against the prepayment risk of the loans, they do not receive either fair-value or cash-flow hedge accounting. These derivatives are marked-to-market through earnings.

Consolidated Obligations. While consolidated obligations are the joint and several obligations of the FHLBanks, each FHLBank has consolidated obligations for which it is the primary obligor. The Bank enters into derivatives to hedge the interest-rate risk associated with its specific debt issuances in conjunction with the associated interest-rate risk on advances. The Bank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation. For instance, in a typical transaction, fixed-rate consolidated obligations are issued for the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows to the Bank designed to mirror cash outflows that the Bank pays on the consolidated obligation in timing and amount. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances. These transactions are typically treated as fair-value hedges. This intermediation between the capital and swap markets permits the Bank to raise funds at lower costs than otherwise would be available through the issuance of simple fixed-rate consolidated obligations in the capital markets.

Firm Commitments. Certain mortgage loan purchase commitments are considered derivatives. Mortgage purchase commitments are recorded on the balance sheet at fair value, with changes in fair value recognized in current-period earnings. When the mortgage purchase commitment derivative settles, the current fair value of the commitment is included with the basis of the mortgage loan and amortized accordingly.

The Bank also may enter into a fair value hedge of a firm commitment for a forward starting advance through the use of an interest-rate swap. In this case, the swap functions as the hedging instrument for both the firm commitment and the subsequent advance. The basis movement associated with the firm commitment is recorded as a basis adjustment of the advance at the time the commitment is terminated and the advance is issued. The basis adjustment is then amortized into interest income over the life of the advance using the level-yield method.

Financial Statement Effect and Additional Financial Information

Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged.

The following table presents the notional amount, fair value of derivative instruments, and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of December 31,
	2024						2023
	Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities		Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities
Derivatives in hedging relationships:
Interest-rate swaps	$	100,529	$	196	$	777	$	107,578	$	215	$	1,603
Derivatives not designated as hedging instruments:
Interest-rate swaps	60		2		1		69		2		1
Interest-rate caps or floors	—		—		—		4,000		—		—
Total derivatives not designated as hedging instruments	60		2		1		4,069		2		1
Total derivatives before netting and collateral adjustments	$	100,589	198		778		$	111,647	217		1,604
Netting adjustments and cash collateral (1)			247		(766)				306		(1,599)
Derivative assets and derivative liabilities			$	445	$	12			$	523	$	5

___________

(1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

The following tables present the net gains (losses) on fair value hedging relationships.

	For the Year Ended December 31, 2024
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	5,467	$	179	$	(6,076)	$	(1,210)
Changes in fair value:
Hedged items (2)	$	(147)	$	(65)	$	(270)	$	(2)
Derivatives	155		65		745		2
Net changes in fair value	8		—		475		—
Net interest settlements on derivatives (1) (2)	472		28		(1,120)		(6)
Amortization/accretion of active hedging relationships	1		—		(466)		—
Other	(14)		2		(7)		(11)
Total net interest income effect from fair value hedging relationships	$	467	$	30	$	(1,118)	$	(17)

	For the Year Ended December 31, 2023
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	6,681	$	79	$	(6,617)	$	(1,798)
Changes in fair value:
Hedged items (2)	$	348	$	59	$	(555)	$	(14)
Derivatives	(357)		(59)		1,011		12
Net changes in fair value	(9)		—		456		(2)
Net interest settlements on derivatives (1) (2)	499		5		(1314)		(3)
Amortization/accretion of active hedging relationships	10		—		(456)		—
Other	(30)		—		(5)		(3)
Total net interest income effect from fair value hedging relationships	$	470	$	5	$	(1,319)	$	(8)

	For the Year Ended December 31, 2022
	Interest Income (Expense)
	Advances		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	1,748	$	(1,345)	$	(805)
Changes in fair value:
Hedged items (2)	$	(1,105)	$	2,226	$	10
Derivatives	1,318		(2,222)		(9)
Net changes in fair value	213		4		1
Net interest settlements on derivatives (1) (2)	(17)		(187)		$	(32)
Amortization/accretion of active hedging relationships	(185)		(12)		—
Other	4		—		—
Total net interest income effect from fair value hedging relationships	$	15	$	(195)	$	(31)

____________

(1) 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.

(2) Excludes the interest income/expense of the respective hedged items.

The following tables present the total basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items.

	As of December 31, 2024
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	24,840	$	4,791	$	49,795	$	20,654
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(478)	$	(5)	$	(700)	$	5
Basis adjustments for discontinued hedging relationships included in amortized cost	(3)		—		(11)		—
Total amounts of fair value hedging basis adjustments	$	(481)	$	(5)	$	(711)	$	5

	As of December 31, 2023
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	25,175	$	2,455	$	71,637	$	6,862
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(339)	$	59	$	(1,436)	$	3
Basis adjustments for discontinued hedging relationships included in amortized cost	(10)		—		(16)		—
Total amounts of fair value hedging basis adjustments	$	(349)	$	59	$	(1,452)	$	3

____________ 

(1) Includes only the portion of amortized cost representing the hedged items in active or discontinued fair value hedging relationships. Amortized cost includes fair value hedging adjustments.

The following table presents net gains (losses) on derivatives recorded in noninterest income on the Statements of Income.

	For the Years Ended December 31,
	2024		2023		2022
Derivatives not designated as hedging instruments:
Interest-rate swaps	$	1	$	(3)	$	—
Interest-rate caps or floors	—		(1)		—
Net interest settlements	—		—		2
Net gains (losses) on derivatives	$	1	$	(4)	$	2

Managing Credit Risk on Derivatives

The Bank is subject to credit risk to its derivative transactions due to the risk of nonperformance by counterparties and manages this risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations.

For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank.

For cleared derivatives, the Clearinghouse is the Bank’s counterparty. The Clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent notifies the Bank. The Bank utilizes two Clearinghouses for all cleared derivative transactions, CME Clearing and LCH Ltd. At both Clearinghouses, variation margin is characterized as daily settlement payments, and initial margin is considered cash collateral. Because the Bank is required to post initial and variation margin through the clearing agent to the Clearinghouse, it exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties, and collateral/payments is posted daily through a clearing agent for changes in the fair value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default, including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

The Bank presents derivative instruments and the related cash collateral that is received or pledged, plus the associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements.

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties.

	As of December 31,
	2024				2023
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Gross recognized amount:
Uncleared derivatives	$	185	$	770	$	200	$	1,592
Cleared derivatives	13		8		17		12
Total gross recognized amount	198		778		217		1,604
Gross amounts of netting adjustments and cash collateral:
Uncleared derivatives	(177)		(758)		(190)		(1,587)
Cleared derivatives	424		(8)		496		(12)
Total gross amounts of netting adjustments and cash collateral:	247		(766)		306		(1,599)
Net amounts after netting adjustments and cash collateral:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net amounts after netting adjustments and cash collateral	445		12		523		5
Non-cash collateral received or pledged not offset- cannot be sold or repledged:
Uncleared derivatives	—		—		—		—
Cleared derivatives	—		—		—		—
Total cannot be sold or repledged	—		—		—		—
Net unsecured amounts:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net unsecured amount	$	445	$	12	$	523	$	5

________ 

(1)T

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Estimated Fair Values

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Estimated Fair Values

Estimated Fair Values

The Bank records available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is defined under GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. In general, the transaction price will equal the exit price and therefore, represents the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction, the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market.

A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated, and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability and defines the level of disclosure. In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy.

Outlined below is the application of the “fair value hierarchy” to the Bank’s financial assets and liabilities that are carried at fair value or disclosed in the notes to the financial statements.

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models, or similar techniques. The Bank did not carry any financial assets or liabilities, measured on a recurring basis, at fair value Level 3 as of December 31, 2024 and 2023.

The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities within the fair value hierarchy. There were no such transfers during the periods presented.

Described below are the Bank’s fair value measurement methodologies applied for financial assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition and categorized within the fair value hierarchy.

Investment securities. The Bank obtains prices from multiple designated third-party pricing vendors, when available, to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to, the following: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information as applicable, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank.

The Bank conducts periodic reviews of its pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies, and control procedures for U.S. agency MBS.

The Bank’s valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security.

All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “resultant” price. All prices that are outside the threshold (outliers) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the resultant price. Alternatively, if the analysis does not provide evidence that an outlier (or some other price identified in the analysis) is more representative of the fair value, and the resultant price is the best estimate, then the resultant price is used as the final price. If all prices received for a security are outside the tolerance threshold level of the median price, then there is no resultant price, and the final price is determined by an evaluation of all outlier prices as described above. In all cases, the final price is used to determine the fair value of the security.

Multiple third-party vendor prices were received for a majority of the Bank’s investment securities holdings, and the final prices for those securities were computed by averaging the prices received as of December 31, 2024 and 2023. Based on the Bank’s review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or the Bank’s additional analysis in those instances in which there were outliers or significant yield variances), the Bank believes that its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further, that the fair value measurements are classified appropriately in the fair value hierarchy.

Derivative assets and liabilities. The Bank calculates the fair values of interest-rate related derivatives using a discounted cash flow analysis which utilizes market-observable inputs. The significant assumptions used in this model are based on management’s best estimate of discount rates, market indices, and market volatility. The inputs for interest-rate related derivatives uses the SOFR swap curve for the discounting of cleared derivatives and the Overnight Index Swap curve for the discounting of collateralized derivatives.

Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank’s derivatives should obviate the need to provide such a credit valuation adjustment. The fair values of the Bank’s derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis.

The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of December 31, 2024 and 2023. Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology. For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would need to take into account future business opportunities and the net profitability of assets versus liabilities.

	As of December 31, 2024
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	35	$	35	$	35	$	—	$	—
Interest-bearing deposits	1,493		1,493		—		1,493		—
Securities purchased under agreements to resell	21,200		21,200		—		21,200		—
Federal funds sold	7,158		7,158		—		7,158		—
Available-for-sale securities (1)	4,790		4,790		—		4,790		—
Held-to-maturity securities	25,443		25,140		—		25,140		—
Advances	85,829		85,862		—		85,862		—
Mortgage loans held for portfolio, net	89		85		—		85		—
Accrued interest receivable	490		490		—		490		—
Derivative assets (1)	445		445		—		198		247
Grantor trust assets (included in Other assets) (1)	29		29		29		—		—
Liabilities:
Interest-bearing deposits	2,312		2,312		—		2,312		—
Consolidated obligations, net:
Discount notes	32,152		32,147		—		32,147		—
Bonds	103,699		103,570		—		103,570		—
Mandatorily redeemable capital stock	1		1		1		—		—
Accrued interest payable	721		721		—		721		—
Derivative liabilities (1)	12		12		—		778		(766)

(F.

	As of December 31, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	142	$	142	$	142	$	—	$	—
Interest-bearing deposits	1,833		1,833		—		1,833		—
Securities purchased under agreements to resell	12,500		12,500		—		12,500		—
Federal funds sold	8,710		8,710		—		8,710		—
Available-for-sale securities (1)	2,450		2,450		—		2,450		—
Held-to-maturity securities	28,714		28,335		—		28,335		—
Advances	96,608		96,599		—		96,599		—
Mortgage loans held for portfolio, net	103		101		—		101		—
Accrued interest receivable	673		673		—		673		—
Derivative assets (1)	523		523		—		217		306
Grantor trust assets (included in Other assets) (1)	26		26		26		—		—
Liabilities:
Interest-bearing deposits	1,568		1,568		—		1,568		—
Consolidated obligations, net:
Discount notes	25,972		25,968		—		25,968		—
Bonds	115,600		115,280		—		115,280		—
Accrued interest payable	902		902		—		902		—
Derivative liabilities (1)	5		5		—		1,604		(1,599)

____________ 

(1) Financial instruments measured at fair value on a recurring basis. 

(2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Consolidated obligations are backed only by the financial resources of the FHLBanks. At any time, the Finance Agency may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank.

The par value of the other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $1,056,184 and $1,061,022 as of December 31, 2024 and 2023, respectively, exclusive of the Bank’s own outstanding consolidated obligations. None of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed as of December 31, 2024 and 2023. Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks’ consolidated obligations as of December 31, 2024 and 2023.

The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations.

	As of December 31,
	2024						2023
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	10,251	$	8,059	$	18,310	$	8,086	$	7,557	$	15,643

____________

(1)“Expire Within One Year” includes 26 standby letters of credit for a total of $59 and 21 standby letters of credit for a total of $30 as of December 31, 2024 and 2023, respectively, which have no stated maturity date and are subject to renewal on an annual basis.

The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If the Bank is required to make a payment for a beneficiary's draw, the member either reimburses the Bank for the amount drawn or, subject to the Bank's discretion, the amount drawn may be converted into a collateralized advance to the member and will require a corresponding activity-based capital stock purchase. However, standby letters of credit usually expire without being drawn upon.

The carrying value of the guarantees related to standby letters of credit is recorded in “Other liabilities” on the Statements of Condition and amounted to $29 and $26 as of December 31, 2024 and 2023, respectively.

The Bank’s operating expenses include net rental costs that were not material for the years ended December 31, 2024, 2023 and 2022. Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from increases in property taxes and maintenance expenses. Such increases are not expected to have a material effect on the Bank’s results of operations.

The Bank may be subject to various legal proceedings and actions from time to time in the ordinary course of its business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of those matters presently known to the Bank will have a material effect on the Bank’s financial condition or results of operations.

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Transactions with Shareholders

12 Months Ended

Dec. 31, 2024

Transactions With Shareholders [Abstract]

TransactionsWithShareholders

Transactions with Shareholders

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments as declared by the Bank’s board of directors. All advances are issued to members and eligible housing associates under the FHLBank Act, and mortgage loans held for portfolio were purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loans purchased. Transactions with any member that has an officer or director who is also a director of the Bank are subject to the same Bank policies as transactions with other members.

Related Parties. In accordance with GAAP, financial statements are required to disclose material related-party transactions other than compensation arrangements, expense allowances, or other similar items that occur in the ordinary course of business. Under GAAP, related parties include owners of more than 10 percent of the voting interests of the Bank. Due to limits on member voting rights under the FHLBank Act and Finance Agency regulations, no member owned more than 10 percent of the total voting interests. Therefore, the Bank had no such related party transactions required to be disclosed for the periods presented.

Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank’s total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding.

	As of December 31, 2024
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	964	18.72	$	19,801	22.94	$	—	—
Bank of America, NA	629		12.21	12,849		14.89	—		0.01

	As of December 31, 2023
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	1,197	21.38	$	24,701	25.48	$	—	—
Bank of America, NA	850		15.19	17,504		18.05	—		0.01

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Transactions with Other FHLBanks

12 Months Ended

Dec. 31, 2024

Transactions with Other FHLBanks [Abstract]

Transactions With Other FHLBanks

Transactions with Other FHLBanks

The Bank’s activities with other FHLBanks are summarized below.

Loans to and Borrowings from Other FHLBanks. Occasionally, the Bank loans short-term funds to or borrows short-term funds from the other FHLBanks. All such transactions are at current market interest rates. There were no outstanding loans to or borrowings from the other FHLBanks as of December 31, 2024 and 2023. Interest income on loans to and interest expense on borrowings from the other FHLBanks were not material during each of the years ended December 31, 2024, 2023, and 2022.

The following table presents the cash flow activities for loans to and borrowings from other FHLBanks.

	For the Years Ended December 31,
	2024		2023		2022
Investing activities:
Loans to other FHLBanks	$	—	$	(1,005)	$	(4,300)
Principal collected on loans to other FHLBanks	—		1,005		4,300
Net change in loans to other FHLBanks	$	—	$	—	$	—
Financing activities:
Proceeds from short-term borrowings from other FHLBanks	$	4,200	$	300	$	4,080
Payments of short-term borrowings from other FHLBanks	(4,200)		(300)		(4,080)
Net change in borrowings from other FHLBanks	$	—	$	—	$	—

Mortgage Loan Purchases of Participation Interests from Other FHLBanks. In December 2016, the Bank agreed to purchase a 90 percent participating interest in a $100 master commitment of certain newly acquired mortgage loans from the FHLBank Indianapolis. The Bank’s outstanding balance related to these mortgage loans was $19 and $21 as of December 31, 2024 and 2023, respectively.

Transfer Consolidated Obligations with other FHLBanks. Occasionally, one FHLBank may transfer to another FHLBank the consolidated obligations for which the transferring FHLBank was originally the primary obligor but upon transfer the assuming FHLBank becomes the primary obligor. The transfers of consolidated obligations between FHLBanks are at market terms and help facilitate the balance sheet management by the individual FHLBanks. The following table presents the par value of consolidated obligations transfers with other FHLBanks. The aggregate gains (losses) on these debt transfers were not material.

	For the Years Ended December 31,
	2024		2023
Transfer to other FHLBanks:
FHLBank Boston	$	2	$	—
FHLBank New York	—		6,080
FHLBank Chicago	—		4,320
FHLBank Indianapolis	—		960
FHLBank Cincinnati	—		250
Total transfers to other FHLBanks	$	2	$	11,610
Transfer from other FHLBanks:
FHLBank Boston	$	5	$	—
FHLBank Cincinnati	1		—
Total transfers from other FHLBanks	$	6	$	—

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Subsequent Events

12 Months Ended

Dec. 31, 2024

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

On January 30, 2025, the Bank’s board of directors approved a fourth quarter 2024 cash dividend at an annualized rate of 7.10 percent. The Bank paid the fourth quarter 2024 dividend on February 5, 2025 in the amount of $100.

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Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Insider Trading Policies and Procedures	12 Months Ended
	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

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Cybersecurity Risk Management and Strategy Disclosure

12 Months Ended

Dec. 31, 2024

Cybersecurity Risk Management, Strategy, and Governance [Line Items]

Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Cybersecurity Risk Management and Strategy

The Bank has implemented processes for assessing, identifying, and managing risks from cybersecurity threats or incidents that may directly or indirectly impact the Bank’s business strategy, results of operations, or financial condition. Please refer to Item 1A. Risk Factors for a description of cybersecurity incident and threat risk.

The Bank’s cybersecurity risk management framework for assessing, identifying, and managing risks from cybersecurity threats is designed to protect the confidentiality, integrity, and availability of the Bank’s information technology assets and data and include specific controls for the monitoring, mitigation, and reporting on cybersecurity risk management. Those processes include information security policies, incident response and business continuity plans focusing on the Bank’s appropriate response to threats and incidents and operations and business continuance.

The Bank’s board annually reviews and approves the Bank’s risk management policies. The Bank develops mitigation plans, monitors tactical implementation, and engages in detailed gap analysis, risk assessments and monitors remediation plans to close any outstanding gaps, all of which are overseen by the Bank’s Security Governance Committee. Cybersecurity risk management is integrated with the Bank’s overall risk management framework overseen by the Bank’s board. Bank policies establish administrative, technical, and physical safeguards designed to protect the security, confidentiality, and integrity of Bank information in accordance with Finance Agency regulations and applicable laws. The Bank’s cyber incident response plan determines how cybersecurity threats and incidents are identified, classified, escalated, and reported to senior management and the board. The cyber incident response plan also stipulates management’s materiality assessment of the threat or incident for the purposes of public disclosure. The Bank’s cyber incident response plan includes third party cybersecurity incidents and threats.

The business continuity management program is designed to oversee and implement resilience, continuity, and response capabilities to safeguard employees, products and services, minimize financial losses and the impact to service to members during a disruption event. A disruption event includes the unavailability of information technology assets due to cybersecurity threats or incidents and other unintentional events like fire, power loss, and other technical incidents such as hardware failures. The business continuity management program provides planning for the restoration of facilities, communications, information technology systems, personnel, and other components necessary for the continuity of critical Bank processes. The business continuity management policy is overseen by the board.

The Bank retains external consultants to assist in the development and monitoring processes for assessing, identifying, and managing cybersecurity incident and threat risk. The Bank engages third-party services to conduct evaluations of security controls, whether through penetration testing, independent audits or consulting on practices to address new challenges. These evaluations include testing both the design and operational effectiveness of security controls. The Bank also requires subcontractors to report on cybersecurity incidents so the Bank can assess their impact. As part of the Bank’s vendor management process, the Bank undertakes due diligence of third-party systems with whom the Bank will interact, including risk profiling and classification, in addition to requiring data protection covenants in its vendor agreements. The Bank’s vendor risk management program includes regular reviews and oversight of all service providers in accordance with a risk profile classification. The Bank reviews vendor performance, relevant technologies utilized by vendors and promotes escalation of any unsatisfactory reviews, as part of Bank’s continuous assessment of its vendors.

During the period covered by this report, risks from cybersecurity incidents or threats did not have a material impact on the Bank’s strategy, results of operations, or financial condition. The Bank has experienced cybersecurity incidents and threats in the past, none of which have had a material effect on the Bank’s financial condition or results of operations. Cybersecurity incidents may occur in the future and any such cybersecurity incident could result in significant adverse impact to the Bank, the Bank’s members, and their customers. The Bank is prepared to assess materiality of any such cybersecurity incident from several perspectives including, but not limited to, the Bank’s ability to continue to service its members and protect the privacy of their data entrusted to the Bank, lost revenue, disruption of business operations, increased operating costs, litigation, and reputational harm.

Cybersecurity Risk Management Processes Integrated [Flag]

true

Cybersecurity Risk Management Processes Integrated [Text Block]

The Bank retains external consultants to assist in the development and monitoring processes for assessing, identifying, and managing cybersecurity incident and threat risk. The Bank engages third-party services to conduct evaluations of security controls, whether through penetration testing, independent audits or consulting on practices to address new challenges. These evaluations include testing both the design and operational effectiveness of security controls. The Bank also requires subcontractors to report on cybersecurity incidents so the Bank can assess their impact. As part of the Bank’s vendor management process, the Bank undertakes due diligence of third-party systems with whom the Bank will interact, including risk profiling and classification, in addition to requiring data protection covenants in its vendor agreements. The Bank’s vendor risk management program includes regular reviews and oversight of all service providers in accordance with a risk profile classification. The Bank reviews vendor performance, relevant technologies utilized by vendors and promotes escalation of any unsatisfactory reviews, as part of Bank’s continuous assessment of its vendors

Cybersecurity Risk Management Third Party Engaged [Flag]

true

Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]

true

Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]

true

Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block]

During the period covered by this report, risks from cybersecurity incidents or threats did not have a material impact on the Bank’s strategy, results of operations, or financial condition. The Bank has experienced cybersecurity incidents and threats in the past, none of which have had a material effect on the Bank’s financial condition or results of operations. Cybersecurity incidents may occur in the future and any such cybersecurity incident could result in significant adverse impact to the Bank, the Bank’s members, and their customers. The Bank is prepared to assess materiality of any such cybersecurity incident from several perspectives including, but not limited to, the Bank’s ability to continue to service its members and protect the privacy of their data entrusted to the Bank, lost revenue, disruption of business operations, increased operating costs, litigation, and reputational harm.

Cybersecurity Risk Board of Directors Oversight [Text Block]

Cybersecurity Governance

The Bank’s board of directors devotes significant time and attention to data and systems protection, including cybersecurity and information security risk. The board of directors Enterprise Risk and Operations Committee (EROC) oversees the Bank’s information security program through setting of policies and the Bank’s risk management framework and has oversight of the cybersecurity risk management efforts which include risks from cybersecurity threats and has assigned specific controls for the mitigation, monitoring and reporting associated with those risks. The board also oversees management’s approach to staffing,

and processes and practices to gauge and address cybersecurity and information security risk. The board receives reports on management of cybersecurity risk and implementation of cybersecurity risk management as well as presentations and reports on cybersecurity effectiveness assessments and monitoring updates, along with management’s recommendations regarding Bank’s information security policies.

The Bank’s Security Governance Committee is led by the chief information security officer and has a cross-functional membership comprised of representatives from the Bank’s operational risk, information security, information technology, legal, operations, and other departments that provide both operational, specialized, technical and multidisciplinary expertise to the committee. The committee has integrated oversight of the information security program, the physical security program, and is responsible for reviewing security policies and procedures, security exceptions and violations, the processes and standards to implement the policies and procedures defined in the cybersecurity risk management program, the Bank’s cyber incident response plan, the security awareness program and implementation reports, and for providing guidance and monitor progress on major information security projects, and regulatory changes and requirements.

The Bank has a dedicated Information Security Department comprised of specialized professionals responsible for the day-to-day, hands-on management of cybersecurity risk and that handle the processes and procedures to mitigate and implement protective, proactive and reactive measures to protect the Bank against those risks, responsible for developing, documenting, and approving the Bank’s technical information security control standards, guidelines, and procedures designed to preserve the confidentiality, integrity, and availability of the Bank’s information technology assets and data under the Bank’s control.

The combined expertise of the Bank’s chief information officer and the chief information security officer in cybersecurity include graduation in Computer Science, Certification in Risk and Information Systems Control (CRISC), Certification in Information Systems Security Professional (CISSP), and Certification in Information Systems Auditor (CISA), along with decades of experience in computer science, information and records security, business continuity, technology governance and compliance, technology risk services, cyber risk assessments, security operations monitoring and response, incident response, security strategy and architecture, awareness training, threat intelligence, identity and access management, vulnerability and penetration testing, maturity assessment, impact analysis, disaster events, recovery response, business resiliency, third party systems due diligence, deep knowledge of software systems and platforms, implementation methodologies, and various technology systems servicing internal and external customers.

The Security Governance Committee meets regularly and receives prompt and periodic information, as needed or applicable pursuant to Bank policies and plans, from the Information Security Department which in turn provides periodic, regular and prompt reporting to senior management. Reports include topics such as threat intelligence, major cybersecurity risk areas, technologies and best practices, project development and implementation, any cybersecurity incidents or threats occurred, as well risk assessment, management and monitoring updates, as applicable and as needed.

Bank policies and processes are designed such that the board would receive prompt and periodic information from management or the Security Governance Committee on any cybersecurity or information security incident or threat that may pose significant risk to the Bank and would continue to receive regular reports on any incident or threat until its conclusion. The Bank’s Enterprise Risk and Operations Committee also receives regular presentations and reports throughout the year on cybersecurity and information security addressing a broad range of topics, including updates on technology trends, regulatory developments, legal issues, policies and practices, information security resources and organization, the threat environment and vulnerability assessments, and specific and ongoing efforts to prevent, detect, and respond to potential gaps, internal and external incidents and critical threats. At least quarterly, or more often, as necessary, the Enterprise Risk and Operations Committee discusses cybersecurity and information security risks with the Bank’s chief information officer and chief information security officer.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]

The Bank’s board of directors devotes significant time and attention to data and systems protection, including cybersecurity and information security risk. The board of directors Enterprise Risk and Operations Committee (EROC) oversees the Bank’s information security program through setting of policies and the Bank’s risk management framework and has oversight of the cybersecurity risk management efforts which include risks from cybersecurity threats and has assigned specific controls for the mitigation, monitoring and reporting associated with those risks. The board also oversees management’s approach to staffing,

and processes and practices to gauge and address cybersecurity and information security risk. The board receives reports on management of cybersecurity risk and implementation of cybersecurity risk management as well as presentations and reports on cybersecurity effectiveness assessments and monitoring updates, along with management’s recommendations regarding Bank’s information security policies.

Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]

The Bank’s Security Governance Committee is led by the chief information security officer and has a cross-functional membership comprised of representatives from the Bank’s operational risk, information security, information technology, legal, operations, and other departments that provide both operational, specialized, technical and multidisciplinary expertise to the committee. The committee has integrated oversight of the information security program, the physical security program, and is responsible for reviewing security policies and procedures, security exceptions and violations, the processes and standards to implement the policies and procedures defined in the cybersecurity risk management program, the Bank’s cyber incident response plan, the security awareness program and implementation reports, and for providing guidance and monitor progress on major information security projects, and regulatory changes and requirements.

Cybersecurity Risk Role of Management [Text Block]

The Bank has a dedicated Information Security Department comprised of specialized professionals responsible for the day-to-day, hands-on management of cybersecurity risk and that handle the processes and procedures to mitigate and implement protective, proactive and reactive measures to protect the Bank against those risks, responsible for developing, documenting, and approving the Bank’s technical information security control standards, guidelines, and procedures designed to preserve the confidentiality, integrity, and availability of the Bank’s information technology assets and data under the Bank’s control.

Cybersecurity Risk Management Positions or Committees Responsible [Flag]

true

Cybersecurity Risk Management Positions or Committees Responsible [Text Block]

The Security Governance Committee meets regularly and receives prompt and periodic information, as needed or applicable pursuant to Bank policies and plans, from the Information Security Department which in turn provides periodic, regular and prompt reporting to senior management. Reports include topics such as threat intelligence, major cybersecurity risk areas, technologies and best practices, project development and implementation, any cybersecurity incidents or threats occurred, as well risk assessment, management and monitoring updates, as applicable and as needed.

Cybersecurity Risk Management Expertise of Management Responsible [Text Block]

The combined expertise of the Bank’s chief information officer and the chief information security officer in cybersecurity include graduation in Computer Science, Certification in Risk and Information Systems Control (CRISC), Certification in Information Systems Security Professional (CISSP), and Certification in Information Systems Auditor (CISA), along with decades of experience in computer science, information and records security, business continuity, technology governance and compliance, technology risk services, cyber risk assessments, security operations monitoring and response, incident response, security strategy and architecture, awareness training, threat intelligence, identity and access management, vulnerability and penetration testing, maturity assessment, impact analysis, disaster events, recovery response, business resiliency, third party systems due diligence, deep knowledge of software systems and platforms, implementation methodologies, and various technology systems servicing internal and external customers.

Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

he Security Governance Committee meets regularly and receives prompt and periodic information, as needed or applicable pursuant to Bank policies and plans, from the Information Security Department which in turn provides periodic, regular and prompt reporting to senior management. Reports include topics such as threat intelligence, major cybersecurity risk areas, technologies and best practices, project development and implementation, any cybersecurity incidents or threats occurred, as well risk assessment, management and monitoring updates, as applicable and as needed.

Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]

true

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank’s management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. The most significant of these estimates include those used in conjunction with fair value estimates and derivatives and hedging activities. Actual results could differ significantly from these estimates.

Estimated Fair Values

Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank’s best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates.

Financial Instruments Meeting Netting Requirements

Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented.

The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 13—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented.

Investments

Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. Interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold provide liquidity and are carried at amortized cost. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO) including the following: Standard and Poor’s (S&P), Moody’s Investors Service (Moody’s), and Fitch Ratings. All of these investments were with counterparties rated investment grade as of December 31, 2024 and 2023. These investments are evaluated at least quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank uses the collateral maintenance provision practical expedient to evaluate potential credit losses related to securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly 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 equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2024 and 2023. The carrying value of securities purchased under agreements excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. All investments in interest-bearing deposits and federal funds sold were repaid or expected to be repaid according to the contractual terms as of December 31, 2024 and 2023. No allowance for credit losses was recorded for these assets as of December 31, 2024 and 2023. The carrying values of interest-bearing deposits and federal funds sold excludes accrued interest receivable that was not material as of December 31, 2024 and 2023.

Investments in Debt Securities. The Bank classifies investment securities as trading, available-for-sale, or held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis.

The Bank classifies certain investments in debt securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank’s liquidity position. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net (losses) gains on investment securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not have any investment securities classified as trading as of December 31, 2024 and 2023.

The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these securities not in qualifying fair value hedging relationships in other comprehensive income (loss).

For available-for-sale securities in hedging relationships that qualify as fair value hedges, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income on available-for-sale securities together with the related change in fair value of the derivative, and records the remainder of the change in the fair value of the investment in other comprehensive income (loss) as net unrealized gains (losses) on available-for-sale securities.

For investments in debt securities classified as available-for-sale, the Bank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded as net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss).

For improvements in impaired available-for-sale securities with an allowance for credit losses, the allowance for credit losses associated with recoveries may be derecognized up to its full amount.

The Bank has not established an allowance for credit losses on its available-for-sale securities as of December 31, 2024 and 2023 because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Investments in debt securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and carried at amortized cost, which is original cost net of periodic principal repayments and amortization of premiums and

accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior.

Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense). The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately.

The Bank’s held-to-maturity securities consist of GSE debt obligations, state or local housing agency debt obligations, and mortgage-backed securities (MBS) issued by the Government National Mortgage Association (Ginnie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae) that are backed by single-family or multifamily mortgage loans. The Bank only purchases securities considered investment quality. All of these securities were rated double-A, or above, by a NRSRO as of December 31, 2024 and 2023, based on the lowest long-term credit rating for each security.

The Bank has not established an allowance for credit loss on any of its held-to-maturity securities as of December 31, 2024 and 2023, because the securities: (1) were all highly-rated and/or had short remaining terms to maturity, (2) had not experienced, nor did the Bank expect, any payment default on the instruments, and (3) in the case of U.S. obligations, they carry an explicit U.S. government guarantee, and (4) in the case of government-sponsored enterprise (GSE) securities, they are purchased under the assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Advances

Advances. The Bank reports advances (secured loans to members, former members, or housing associates) at amortized cost. Amortized cost is original cost net of periodic principal repayments and amortization of premiums and accretion of discounts (including discounts related to the Affordable Housing Program (AHP) and Community Investment Cash Advance program), net deferred fees or costs, and fair value hedge adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Accrued interest receivable is recorded separately on the Statements of Condition.

Advances are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank manages its credit exposure to advances through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower’s financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower’s needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated fair value of the collateral required to secure each borrower’s advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank’s capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank’s overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances.

Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien

creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law.

The Bank considers each borrower’s payment status, as well as financial strength and creditworthiness to be the primary indicators of credit quality on its advances. The Bank also had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2024 and 2023.

The Bank continues to evaluate and make changes to its credit and collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2024 and 2023. In addition, there were no modifications related to advances with borrowers experiencing financial difficulties during the year ended December 31, 2024.

Based upon the Bank’s credit analysis, credit and collateral policies, collateral held as security, and the repayment history on advances, the Bank did not expect any credit losses on advances as of December 31, 2024 and 2023. Accordingly, the Bank has not recorded any allowance for credit losses on advances as of December 31, 2024 and 2023.

Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as part of the advances line item in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the terms of the modified advance are at least as favorable to the lender as the terms offered to borrowers with similar collection risks for comparable advances and the modification to the terms of the advance is more than minor, the advance meets the accounting criteria for a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as prepayment fees on advances, which is included in the advances line item in the interest income section of the Statements of Income.

Mortgage Loans Held for Portfolio

Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. These mortgage loans are reported at amortized cost, which is original cost, net of periodic principal repayments and amortization of premiums and accretion of discounts, fair value hedge adjustments on loans initially classified as mortgage loan commitments, and direct write-downs. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs at least quarterly an assessment of its mortgage loans held for portfolio to estimate expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method.

A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status if it is determined that either (1) the collection of interest or principal is doubtful or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancement) and in the process of collection. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal, or (2) it otherwise becomes well secured and in the process of collection. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of (1) the U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met.

Finance Agency regulations require that mortgage loans held in the Bank’s portfolios be credit enhanced. For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses.

At least quarterly, the Bank performs an assessment of its mortgage loans held for portfolio to estimate expected credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. If a loan was purchased at a discount, the discount does not offset the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status.

The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. The servicer provides and maintains insurance or a guarantee from the applicable government agency. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees, but in such instance, the Bank would have recourse against the servicer for such failure. Based on the Bank’s assessment of its servicers and the collateral backing these loans, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2024 and 2023.

Derivatives

Derivatives and Hedging Activities. All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with a derivative are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative.

Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify as, a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk (including changes that reflect losses or gains on firm commitments), are recorded in net interest income in the same line as the earnings effect of the hedged item. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank’s risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income.

The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net (losses) gains on derivatives” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank’s results of operations.

The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables

and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains (losses) on derivatives” on the Statements of Income.

The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be highly effective in offsetting changes in the fair value of a hedged risk, including hedged items such as firm commitments; (2) the derivative and/or the hedged item expires or is sold, terminated, or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) the bank determines that designating the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued due to the Bank’s determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative, or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings.

Embedded Derivatives

The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to a non-qualifying hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current-period earnings (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument.

Premises and Equipment

Premises, Equipment, and Software. Premises, equipment, and the cost of purchased software and certain costs incurred in developing computer software for internal use are recorded in “Other assets” on the Statements of Condition. The Bank records these items at cost, less accumulated depreciation or amortization. The Bank computes depreciation and amortization using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware—three; capitalized computer software cost—three; office equipment—eight; office furniture and building improvements—10; and building—40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Premises, equipment, and capital computer software cost and related depreciation and amortization expense were not material to the Bank’s financial condition and results of operations for the reported periods.

Deposits

Deposits. The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds. The Bank records these items in “Interest-bearing deposits” on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate.

Consolidated Obligations

Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation.

Mandatorily Redeemable Capital Stock

Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a merger or acquisition, charter termination, or involuntary termination from membership since the member’s shares will then meet the definition of a mandatorily redeemable financial instrument. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows.

If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense.

Off-Balance Sheet Credit Exposures. The Bank evaluates its off-balance sheet credit exposure on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding credit loss expense (or reversal of credit loss expense).

The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that result in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account the quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral that they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on the Statements of Condition for these commitments as of December 31, 2024 or 2023.

Restricted Retained Earnings

Restricted Retained Earnings. The Joint Capital Enhancement Agreement, as amended (Capital Agreement), provides that each FHLBank will, on a quarterly basis, allocate 20 percent of its net income to a separate restricted retained earnings account until the balance of that account, calculated as of the last day of each calendar quarter, equals at least one percent of that FHLBank’s average balance of outstanding consolidated obligations for the calendar quarter. Additionally, the Capital Agreement provides that amounts in restricted retained earnings in excess of 150 percent of the Bank’s restricted retained earnings minimum (i.e., one percent of the Bank’s average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter) may be released from restricted retained earnings. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition.

Finance Agency and Office of Finance Expenses

Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks’ portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank’s minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank’s proportionate share of the Office of Finance’s operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation.

Affordable Housing Program

Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP that provides subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low and low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP subsidized advances that have interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank’s related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the contractual interest method over the life of the advance.

Federal Home Loan Bank Voluntary Housing and Community Investment

Voluntary Housing and Community Investment. The Banks’ voluntary contributions to AHP and other housing and community investment initiatives are recorded in a separate line within non-interest expense on the Statements of Income.

Voluntary AHP is expensed when the Bank’s board approves the terms of the irrevocable award and the likelihood of award is probable and the amount is estimable. The amount is subject to the same regulatory requirements as AHP assessments.

Other voluntary housing and community investment initiatives primarily consist of voluntary grants and contributions and subsidized advances. Voluntary grants and contributions are recognized as an expense in the period in which the grant or contribution is considered an unconditional promise to give. Subsidized advances are advances that have an interest rate below the customary interest rate for non-subsidized advances with similar terms. For a subsidized advance, at the time of disbursement, the Bank will determine the present value of the advance using the imputed market interest rate as the discount rate. In addition, the Bank records a discount on the advance with a corresponding voluntary housing and community investment expense related to the inherent contribution made at the time the Bank issues the advance. The discount on a subsidized advance is accreted to interest income on advances using a level-yield methodology over the life of the advance.

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Investments Debt Securities (Tables)

12 Months Ended

Dec. 31, 2024

Investment Holdings [Line Items]

Available-for-Sale by Contractual maturity

The following table presents the amortized cost and estimated fair value of available-for-sale securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Due in one year or less	$	100	$	100	$	—	$	—
Due after one year through five years	3,963		3,963		2,208		2,203
Total non-mortgage-backed securities	4,063		4,063		2,208		2,203
Mortgage-backed securities (2)	728		727		247		247
Total	$	4,791	$	4,790	$	2,455	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Interest Rate Payment Terms

(

Available-for-sale Securities [Member]

Investment Holdings [Line Items]

Available-for-sale Securities by Major Security Type [Table Text Block]

The following table presents available-for-sale securities. All investment securities classified as available-for-sale are fixed-rate securities.

	As of December 31,
	2024								2023
	Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value		Amortized     Cost (1)		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair Value
U.S. Treasury obligations	$	4,063	$	1	$	(1)	$	4,063	$	2,208	$	—	$	(5)	$	2,203
Mortgage-backed securities:
Government-sponsored enterprises commercial	728		1		(2)		727		247		—		—		247
Total	$	4,791	$	2	$	(3)	$	4,790	$	2,455	$	—	$	(5)	$	2,450

____________ 

(1) Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

Available-for-sale, Unrealized Loss Position [Table Text Block]

	As of December 31, 2024
	Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations	$	1,441	$	(1)
Mortgage-backed securities:
Government-sponsored enterprises commercial	487		(2)
Total	$	1,928	$	(3)

	As of December 31, 2023
		Less than 12 Months
		Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury obligations		$	2,105	$	(5)
Mortgage-backed securities:
Government-sponsored enterprises commercial		247		—
		$	2,352	$	(5)

Held-to-maturity Securities [Member]

Investment Holdings [Line Items]

Held-to-maturity by Major Security Type [Table Text Block]

The following table presents held-to-maturity securities.

	As of December 31,
	2024								2023
	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
State or local housing agency debt obligations	$	1	$	—	$	—	$	1	$	1	$	—	$	—	$	1
Government-sponsored enterprises debt obligations	795		3		—		798		1,475		4		(12)		1,467
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	2,010		2		(36)		1,976		2,715		9		(32)		2,692
Government-sponsored enterprises residential	8,420		13		(151)		8,282		8,311		18		(185)		8,144
Government-sponsored enterprises commercial	14,217		15		(149)		14,083		16,212		9		(190)		16,031
Total	$	25,443	$	33	$	(336)	$	25,140	$	28,714	$	40	$	(419)	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

Held-to-Maturity Securities by Contractual Maturity Date

The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity.

	As of December 31,
	2024				2023
	Amortized Cost (1)		Estimated Fair Value		Amortized Cost (1)		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	435	$	436	$	680	$	668
Due after one year through five years	301		303		736		740
Due after five years through 10 years	60		60		60		60
Total non-mortgage-backed securities	796		799		1,476		1,468
Mortgage-backed securities (2)	24,647		24,341		27,238		26,867
Total	$	25,443	$	25,140	$	28,714	$	28,335

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively.

(2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Interest Rate Payment Terms

The following table presents interest-rate payment terms for investment securities classified as held-to-maturity.

	As of December 31,
	2024		2023
Non-mortgage-backed securities:
Fixed-rate	$	1	$	551
Variable-rate	795		925
Total non-mortgage-backed securities	796		1,476
Mortgage-backed securities:
Fixed-rate	2,850		3,341
Variable-rate	21,797		23,897
Total mortgage-backed securities	24,647		27,238
Total amortized cost (1)	$	25,443	$	28,714

 ____________

(1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

[1] (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Advances (Tables)

12 Months Ended

Dec. 31, 2024

Advances [Abstract]

Federal Home Loan Bank, Advances

Redemption Terms. The following table presents the Bank’s advances outstanding by redemption terms.

	As of December 31,
	2024		2023
Due in one year or less	$	59,497	$	70,501
Due after one year through two years	9,155		6,038
Due after two years through three years	4,768		5,375
Due after three years through four years	5,327		3,075
Due after four years through five years	2,730		7,544
Due after five years	4,831		4,415
Total par value	86,308		96,948
Deferred prepayment fees	3		10
Discounts	(1)		(1)
Fair value hedging adjustments	(481)		(349)
Total (1)	$	85,829	$	96,608

___________

(1) Carrying amounts exclude accrued interest receivable of $375 and $577 as of December 31, 2024 and 2023, respectively.

The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $6,469 and $2,789 as of December 31, 2024 and 2023, respectively.

The following table presents advances by year of contractual maturity or next call date for callable advances.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	62,240	$	72,792
Due or callable after one year through two years	7,724		5,968
Due or callable after two years through three years	4,205		4,053
Due or callable after three years through four years	4,907		2,621
Due or callable after four years through five years	2,426		7,124
Due or callable after five years	4,806		4,390
Total par value	$	86,308	$	96,948

Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $3,916 and $2,693 as of December 31, 2024 and 2023, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date.

	As of December 31,
	2024		2023
Due or convertible in one year or less	$	63,194	$	72,951
Due or convertible after one year through two years	8,683		6,154
Due or convertible after two years through three years	3,994		5,117
Due or convertible after three years through four years	4,870		3,040
Due or convertible after four years through five years	1,526		5,584
Due or convertible after five years	4,041		4,102
Total par value	$	86,308	$	96,948

Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances.

	As of December 31,
	2024		2023
Fixed-rate:
Due in one year or less	$	15,669	$	17,162
Due after one year	21,127		22,100
Total fixed-rate	36,796		39,262
Variable-rate:
Due in one year or less	43,828		53,339
Due after one year	5,684		4,347
Total variable-rate	49,512		57,686
Total par value	$	86,308	$	96,948

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Mortgage Loans Held for Porfolio (Tables)

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Mortgage Loans Held for Portfolio

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase.

	As of December 31,
	2024		2023
Medium-term (15 years or less)	$	1	$	1
Long-term (greater than 15 years)	88		102
Total unpaid principal balance	89		103
Total mortgage loans held for portfolio (1)	89		103
Allowance for credit losses on mortgage loans	—		—
Mortgage loans held for portfolio, net	$	89	$	103

____________

(1) Amortized cost, excluding accrued interest receivable that was not material for the reported periods.

The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type.

	As of December 31,
	2024		2023
Conventional mortgage loans	$	82	$	94
Government-guaranteed or insured mortgage loans	7		9
Total unpaid principal balance	$	89	$	103

Past Due Financing Receivables

Payment status is a key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following tables present the payment status for conventional mortgage loans. All of the Bank’s conventional mortgage loans were originated prior to 2018.

	As of December 31,
	2024		2023
Payment status, at amortized cost:(1)
Past due 30-59 days	$	2	$	2
Past due 60-89 days	1		1
Past due 90 days or more	2		2
Total past due mortgage loans	5		5
Current mortgage loans	77		89
Total conventional mortgage loans	$	82	$	94

___________

(1) Amortized cost excludes accrued interest receivable that was not material for the reported periods.

The following tables present the other delinquency statistics for all mortgage loans.

	As of December 31, 2024
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at amortized cost:
In process of foreclosure (1)	$	—		$	—		$	—
Seriously delinquent rate (2)	2.28		%	1.54		%	2.22		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

	As of December 31, 2023
	Conventional Residential Mortgage Loans			Government-guaranteed or Insured Residential Mortgage Loans			Total
Other delinquency statistics, at recorded investment:
In process of foreclosure (1)	$	1		$	—		$	1
Seriously delinquent rate (2)	2.17		%	2.43		%	2.19		%
Past due 90 days or more and still accruing interest (3)	$	—		$	—		$	—
Mortgage loans on nonaccrual status (4)	$	2		$	—		$	2

____________

(1) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported.

(2) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment.

(3) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

(4) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2024 and 2023, none of conventional mortgage loans on nonaccrual status had an associated allowance for credit losses because either these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, was greater than the amortized cost of the loans.

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Consolidated Obligations (Tables)

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Consolidated Obligation Bonds By Interest Rate Payment

Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type.

	As of December 31,
	2024		2023
Fixed-rate	$	51,471	$	74,641
Simple variable-rate	49,905		38,288
Step up/down	3,040		4,124
Total par value	$	104,416	$	117,053

Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity

Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity.

	As of December 31,
	2024			2023
	Amount		Weighted- average Interest Rate (%)	Amount		Weighted- average Interest Rate (%)
Due in one year or less	$	83,164	4.17	$	84,908	4.77
Due after one year through two years	10,341		1.78	12,584		2.71
Due after two years through three years	6,593		2.83	9,736		1.66
Due after three years through four years	2,197		2.62	6,172		2.70
Due after four years through five years	1,161		3.96	2,552		3.06
Due after five years	960		4.13	1,101		3.07
Total par value	104,416		3.82	117,053		4.13
Premiums	7			12
Discounts	(13)			(13)
Fair value hedging adjustments	(711)			(1,452)
Total	$	103,699		$	115,600

Callable and Noncallable Consolidated Obligations Bonds Outstanding

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature.

	As of December 31,
	2024		2023
Noncallable	$	65,259	$	52,117
Callable	39,157		64,936
Total par value	$	104,416	$	117,053

Summary of Callable Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity

The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date.

	As of December 31,
	2024		2023
Due or callable in one year or less	$	99,033	$	110,423
Due or callable after one year through two years	2,249		2,691
Due or callable after two years through three years	1,362		1,776
Due or callable after three years through four years	1,307		451
Due or callable after four years through five years	70		1,307
Due or callable after five years	395		405
Total par value	$	104,416	$	117,053

Consolidated Obligation Discount Notes

The following table presents the Bank’s participation in consolidated obligation discount notes.

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of December 31, 2024	$	32,152	$	32,368	4.44
As of December 31, 2023	$	25,972	$	26,241	5.25

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Affordable Housing Program (Tables)

12 Months Ended

Dec. 31, 2024

Federal Home Loan Banks [Abstract]

Schedule of Activity in Affordable Housing Program Obligation

The following table presents a rollforward of the Bank’s AHP liability, including voluntary non-statutory AHP contributions:

	For the Years Ended December 31,
	2024		2023		2022
AHP liability balance, at beginning of year	$	108	$	59	$	61
Statutory AHP assessment	77		72		21
Voluntary AHP expense	23		11		5
Direct grant disbursements	(52)		(35)		(31)
Recapture amounts and other	1		1		3
AHP liability balance, at end of year	$	157	$	108	$	59

Allocation of Authorized Voluntary Housing Contributions

Voluntary Housing and Community Investment. In addition to the statutory AHP assessment, the Bank’s board of directors may, from time to time, authorize voluntary contributions to the AHP or other housing and community investment initiatives. The following table presents the amount of such voluntary contributions authorized by the Bank:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions	$	23	$	11	$	5
Voluntary non-AHP contributions	26		8		—
Total authorized voluntary housing and community investment	$	49	$	19	$	5

Allocation of Voluntary Housing Contributions

The following table presents voluntary contributions reported in noninterest expense as “Voluntary housing and community investment” on the Statements of Income which were allocated as follows:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-statutory AHP contributions:
AHP Homeownership Set-aside Program	$	15	$	11	$	5
AHP General Fund	8		—		—
Total Voluntary non-statutory AHP contributions	23		11		5
Voluntary non-AHP contributions:
Workforce Housing Plus+ Program	20		—		—
Heirs’ Property Family Wealth Protection Fund	6		—		—
Bridge Fund	—		8		—
Total Voluntary non-AHP contributions	26		8		—
Total voluntary housing and community investment	$	49	$	19	$	5

Activity in the voluntary non-AHP Contributions

Voluntary contributions that are not disbursed, excluding voluntary non-statutory AHP contributions, are included within “Other liabilities” on the Statements of Condition. The following table presents a rollforward of the Bank’s voluntary non-AHP contributions liability:

	For the Years Ended December 31,
	2024		2023		2022
Voluntary non-AHP contributions liability,      at beginning of year	$	8	$	—	$	—
Voluntary non-AHP expense	26		8		—
Payments made	(28)		—		—
Voluntary non-AHP contributions liability,      at end of year	$	6	$	8	$	—

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Capital and Mandatorily Redeemable Capital Stock (Tables)

12 Months Ended

Dec. 31, 2024

Banking Regulation, Total Capital [Abstract]

Schedule of Compliance With Regulatory Capital Requirements

The following table presents the Bank’s compliance with the Finance Agency’s regulatory capital rules and requirements.

	As of December 31,
	2024						2023
	Required			Actual			Required			Actual
Risk-based capital	$	1,312		$	7,935		$	1,288		$	8,121
Total regulatory capital ratio	4.00		%	5.39		%	4.00		%	5.33		%
Total regulatory capital	$	5,884		$	7,935		$	6,095		$	8,121
Leverage capital ratio	5.00		%	8.09		%	5.00		%	7.99		%
Leverage capital	$	7,355		$	11,902		$	7,619		$	12,182

Schedule of Declared Quarterly Cash Dividends

The Bank declares and pays any dividends only after net income is calculated for the preceding quarter. The following table presents the Bank’s declared and paid quarterly cash dividends in 2024, 2023, and 2022.

	2024			2023			2022
	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)	Amount		Annualized Rate (%)
First quarter	$	117	7.35	$	78	6.37	$	22	3.70
Second quarter	108		7.35	99		6.50	23		3.74
Third quarter	112		7.35	127		6.97	33		4.11
Fourth quarter	99		7.35	104		7.25	51		5.30
Total	$	436	7.35	$	408	6.79	$	129	4.34

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components Comprising Accumulated Other Comprehensive Income

The following table presents the components comprising accumulated other comprehensive loss.

	Net Unrealized Gains (Losses) on Available-for-sale Securities		Pension and Postretirement Benefits		Total  Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2021	$	(9)	$	(7)	$	(16)
Other comprehensive income before reclassifications:
Net unrealized losses on available-for-sale securities	(25)		—		(25)
Actuarial gain	—		6		6
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	—		1		1
Net current period other comprehensive (loss) income	(25)		7		(18)
Balance, December 31, 2022	(34)		—		(34)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	29		—		29
Net current period other comprehensive income	29		—		29
Balance, December 31, 2023	(5)		—		(5)
Other comprehensive income before reclassifications:
Net unrealized gains on available-for-sale securities	4		—		4
Actuarial gain	—		1		1
Net current period other comprehensive income	4		1		5
Balance, December 31, 2024	$	(1)	$	1	$	—

____________ 

(1) Included in Noninterest expense - Other on the Statements of Income.

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Pension and Post Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Schedule of Multiemployer Plan

The following table presents information on the net pension costs and funded status of the Pentegra Plan.

	2024			2023			2022
Net pension cost charged to compensation and benefit expense for the year ended December 31	$	1		$	1		$	5
Pentegra Plan funded status as of July 1(1) (2)	111.97		%	113.99		%	119.09		%
Bank’s funded status as of July 1	131.40		%	137.29		%	145.40		%

____________

(1) The Pentegra Plan’s funded status as of July 1, 2024, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2024 through March 15, 2025. Contributions made on or before March 15, 2025, and designated for the plan year ended June 30, 2024, will be included in the final valuation as of July 1, 2024. The final funded status as of July 1, 2024, will not be available until the Form 5500 for the plan year July 1, 2024 through June 30, 2025, is filed (this Form 5500 is due to be filed no later than April 2026).

(2) The Pentegra Plan’s funded status as of July 1, 2023, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2023 through March 15, 2024. Contributions made on or before March 15, 2024, and designated for the plan year ended June 30, 2023, will be included in the final valuation as of July 1, 2023. The final funded status as of July 1, 2023, will not be available until the Form 5500 for the plan year July 1, 2023 through June 30, 2024, is filed (this Form 5500 is due to be filed no later than April 2025).

In addition to the above multiemployer pension plan, the Bank has a qualified defined contribution plan, a nonqualified defined contribution plan, a nonqualified deferred compensation plan, a supplemental nonqualified defined benefit plan and a postretirement medical and life insurance plan. The financial amounts related to these plans were not material for the reported periods.

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Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table presents the notional amount, fair value of derivative instruments, and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of December 31,
	2024						2023
	Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities		Notional Amount of Derivatives		Derivative Assets		Derivative Liabilities
Derivatives in hedging relationships:
Interest-rate swaps	$	100,529	$	196	$	777	$	107,578	$	215	$	1,603
Derivatives not designated as hedging instruments:
Interest-rate swaps	60		2		1		69		2		1
Interest-rate caps or floors	—		—		—		4,000		—		—
Total derivatives not designated as hedging instruments	60		2		1		4,069		2		1
Total derivatives before netting and collateral adjustments	$	100,589	198		778		$	111,647	217		1,604
Netting adjustments and cash collateral (1)			247		(766)				306		(1,599)
Derivative assets and derivative liabilities			$	445	$	12			$	523	$	5

___________

(1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

Net Gains (Losses) on Fair Value Hedging Relationships

The following tables present the net gains (losses) on fair value hedging relationships.

	For the Year Ended December 31, 2024
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	5,467	$	179	$	(6,076)	$	(1,210)
Changes in fair value:
Hedged items (2)	$	(147)	$	(65)	$	(270)	$	(2)
Derivatives	155		65		745		2
Net changes in fair value	8		—		475		—
Net interest settlements on derivatives (1) (2)	472		28		(1,120)		(6)
Amortization/accretion of active hedging relationships	1		—		(466)		—
Other	(14)		2		(7)		(11)
Total net interest income effect from fair value hedging relationships	$	467	$	30	$	(1,118)	$	(17)

	For the Year Ended December 31, 2023
	Interest Income (Expense)
	Advances		Available-for-sale Securities		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	6,681	$	79	$	(6,617)	$	(1,798)
Changes in fair value:
Hedged items (2)	$	348	$	59	$	(555)	$	(14)
Derivatives	(357)		(59)		1,011		12
Net changes in fair value	(9)		—		456		(2)
Net interest settlements on derivatives (1) (2)	499		5		(1314)		(3)
Amortization/accretion of active hedging relationships	10		—		(456)		—
Other	(30)		—		(5)		(3)
Total net interest income effect from fair value hedging relationships	$	470	$	5	$	(1,319)	$	(8)

	For the Year Ended December 31, 2022
	Interest Income (Expense)
	Advances		Consolidated Obligation Bonds		Consolidated Obligation Discount Notes
Total interest income (expense) recorded in the Statements of Income	$	1,748	$	(1,345)	$	(805)
Changes in fair value:
Hedged items (2)	$	(1,105)	$	2,226	$	10
Derivatives	1,318		(2,222)		(9)
Net changes in fair value	213		4		1
Net interest settlements on derivatives (1) (2)	(17)		(187)		$	(32)
Amortization/accretion of active hedging relationships	(185)		(12)		—
Other	4		—		—
Total net interest income effect from fair value hedging relationships	$	15	$	(195)	$	(31)

____________

(1) 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.

(2) Excludes the interest income/expense of the respective hedged items.

Cumulative Basis Adjustments for Fair Value Hedges

The following tables present the total basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items.

	As of December 31, 2024
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	24,840	$	4,791	$	49,795	$	20,654
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(478)	$	(5)	$	(700)	$	5
Basis adjustments for discontinued hedging relationships included in amortized cost	(3)		—		(11)		—
Total amounts of fair value hedging basis adjustments	$	(481)	$	(5)	$	(711)	$	5

	As of December 31, 2023
	Advances		Available-for-sale Securities		Consolidated Obligations Bonds		Consolidated Obligations Discount Notes
Amortization cost of hedged asset or liability(1)	$	25,175	$	2,455	$	71,637	$	6,862
Fair value hedging adjustments
Basis adjustments for active hedging relationships included in amortized cost	$	(339)	$	59	$	(1,436)	$	3
Basis adjustments for discontinued hedging relationships included in amortized cost	(10)		—		(16)		—
Total amounts of fair value hedging basis adjustments	$	(349)	$	59	$	(1,452)	$	3

____________ 

(1) Includes only the portion of amortized cost representing the hedged items in active or discontinued fair value hedging relationships. Amortized cost includes fair value hedging adjustments.

Derivatives Not Designated as Hedging Instruments [Table Text Block]

The following table presents net gains (losses) on derivatives recorded in noninterest income on the Statements of Income.

	For the Years Ended December 31,
	2024		2023		2022
Derivatives not designated as hedging instruments:
Interest-rate swaps	$	1	$	(3)	$	—
Interest-rate caps or floors	—		(1)		—
Net interest settlements	—		—		2
Net gains (losses) on derivatives	$	1	$	(4)	$	2

Offsetting of derivative assets and liabilities

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties.

	As of December 31,
	2024				2023
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Gross recognized amount:
Uncleared derivatives	$	185	$	770	$	200	$	1,592
Cleared derivatives	13		8		17		12
Total gross recognized amount	198		778		217		1,604
Gross amounts of netting adjustments and cash collateral:
Uncleared derivatives	(177)		(758)		(190)		(1,587)
Cleared derivatives	424		(8)		496		(12)
Total gross amounts of netting adjustments and cash collateral:	247		(766)		306		(1,599)
Net amounts after netting adjustments and cash collateral:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net amounts after netting adjustments and cash collateral	445		12		523		5
Non-cash collateral received or pledged not offset- cannot be sold or repledged:
Uncleared derivatives	—		—		—		—
Cleared derivatives	—		—		—		—
Total cannot be sold or repledged	—		—		—		—
Net unsecured amounts:
Uncleared derivatives	8		12		10		5
Cleared derivatives	437		—		513		—
Total net unsecured amount	$	445	$	12	$	523	$	5

________ 

(1)T

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Estimated Fair Values (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Carrying Values and Estimated Fair Values

The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would need to take into account future business opportunities and the net profitability of assets versus liabilities.

	As of December 31, 2024
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	35	$	35	$	35	$	—	$	—
Interest-bearing deposits	1,493		1,493		—		1,493		—
Securities purchased under agreements to resell	21,200		21,200		—		21,200		—
Federal funds sold	7,158		7,158		—		7,158		—
Available-for-sale securities (1)	4,790		4,790		—		4,790		—
Held-to-maturity securities	25,443		25,140		—		25,140		—
Advances	85,829		85,862		—		85,862		—
Mortgage loans held for portfolio, net	89		85		—		85		—
Accrued interest receivable	490		490		—		490		—
Derivative assets (1)	445		445		—		198		247
Grantor trust assets (included in Other assets) (1)	29		29		29		—		—
Liabilities:
Interest-bearing deposits	2,312		2,312		—		2,312		—
Consolidated obligations, net:
Discount notes	32,152		32,147		—		32,147		—
Bonds	103,699		103,570		—		103,570		—
Mandatorily redeemable capital stock	1		1		1		—		—
Accrued interest payable	721		721		—		721		—
Derivative liabilities (1)	12		12		—		778		(766)

(F.

	As of December 31, 2023
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Netting Adjustments and Cash Collateral (2)
Assets:
Cash and due from banks	$	142	$	142	$	142	$	—	$	—
Interest-bearing deposits	1,833		1,833		—		1,833		—
Securities purchased under agreements to resell	12,500		12,500		—		12,500		—
Federal funds sold	8,710		8,710		—		8,710		—
Available-for-sale securities (1)	2,450		2,450		—		2,450		—
Held-to-maturity securities	28,714		28,335		—		28,335		—
Advances	96,608		96,599		—		96,599		—
Mortgage loans held for portfolio, net	103		101		—		101		—
Accrued interest receivable	673		673		—		673		—
Derivative assets (1)	523		523		—		217		306
Grantor trust assets (included in Other assets) (1)	26		26		26		—		—
Liabilities:
Interest-bearing deposits	1,568		1,568		—		1,568		—
Consolidated obligations, net:
Discount notes	25,972		25,968		—		25,968		—
Bonds	115,600		115,280		—		115,280		—
Accrued interest payable	902		902		—		902		—
Derivative liabilities (1)	5		5		—		1,604		(1,599)

____________ 

(1) Financial instruments measured at fair value on a recurring basis. 

(2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Off Balance Sheet Commitments [Table Text Block]

The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations.

	As of December 31,
	2024						2023
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	10,251	$	8,059	$	18,310	$	8,086	$	7,557	$	15,643

____________

(1)“Expire Within One Year” includes 26 standby letters of credit for a total of $59 and 21 standby letters of credit for a total of $30 as of December 31, 2024 and 2023, respectively, which have no stated maturity date and are subject to renewal on an annual basis.

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Transactions with Shareholders (Tables)

12 Months Ended

Dec. 31, 2024

Transactions With Shareholders [Abstract]

Schedule of Transactions with Shareholders [Table Text Block]

Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank’s total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding.

	As of December 31, 2024
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	964	18.72	$	19,801	22.94	$	—	—
Bank of America, NA	629		12.21	12,849		14.89	—		0.01

	As of December 31, 2023
	Regulatory Capital Stock Outstanding		Percent of Total Regulatory Capital Stock Outstanding	Par Value of Advances		Percent of Total Par Value of Advances	Interest-bearing Deposits		Percent of Total Interest-bearing Deposits
Truist Bank	$	1,197	21.38	$	24,701	25.48	$	—	—
Bank of America, NA	850		15.19	17,504		18.05	—		0.01

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Transaction with Other FHLBanks (Tables)

12 Months Ended

Dec. 31, 2024

Transactions with Other FHLBanks [Abstract]

Schedule of Loans to and From Other Federal Home Loan Banks

The following table presents the cash flow activities for loans to and borrowings from other FHLBanks.

	For the Years Ended December 31,
	2024		2023		2022
Investing activities:
Loans to other FHLBanks	$	—	$	(1,005)	$	(4,300)
Principal collected on loans to other FHLBanks	—		1,005		4,300
Net change in loans to other FHLBanks	$	—	$	—	$	—
Financing activities:
Proceeds from short-term borrowings from other FHLBanks	$	4,200	$	300	$	4,080
Payments of short-term borrowings from other FHLBanks	(4,200)		(300)		(4,080)
Net change in borrowings from other FHLBanks	$	—	$	—	$	—

Mortgage Loan Purchases of Participation Interests from Other FHLBanks. In December 2016, the Bank agreed to purchase a 90 percent participating interest in a $100 master commitment of certain newly acquired mortgage loans from the FHLBank Indianapolis. The Bank’s outstanding balance related to these mortgage loans was $19 and $21 as of December 31, 2024 and 2023, respectively.

Transfer Consolidated Obligations with other FHLBanks. Occasionally, one FHLBank may transfer to another FHLBank the consolidated obligations for which the transferring FHLBank was originally the primary obligor but upon transfer the assuming FHLBank becomes the primary obligor. The transfers of consolidated obligations between FHLBanks are at market terms and help facilitate the balance sheet management by the individual FHLBanks. The following table presents the par value of consolidated obligations transfers with other FHLBanks. The aggregate gains (losses) on these debt transfers were not material.

	For the Years Ended December 31,
	2024		2023
Transfer to other FHLBanks:
FHLBank Boston	$	2	$	—
FHLBank New York	—		6,080
FHLBank Chicago	—		4,320
FHLBank Indianapolis	—		960
FHLBank Cincinnati	—		250
Total transfers to other FHLBanks	$	2	$	11,610
Transfer from other FHLBanks:
FHLBank Boston	$	5	$	—
FHLBank Cincinnati	1		—
Total transfers from other FHLBanks	$	6	$	—

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Nature of Operations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) bank numberOfReportableSegments	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Federal Home Loan Banks | bank	11
Number of Reportable Segments | numberOfReportableSegments	1
Segment Reporting, Disclosure of Major Customers	two
Federal Home Loan Bank of Atlanta Segment Major Customer Revenuse | $	$ 2,465	$ 3,120	$ 513

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Significant Accounting Policies [Line Items]
Joint Capital Enhancement Agreement percentage	20.00%
Federal Funds domain [Domain]
Significant Accounting Policies [Line Items]
Financing Receivable, Allowance for Credit Loss	$ 0	$ 0
Securities Purchased under agreements to resell [Domain]
Significant Accounting Policies [Line Items]
Financing Receivable, Allowance for Credit Loss	0	0
Securities purchased under agreements [Domain]
Significant Accounting Policies [Line Items]
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss	0	0
Federal Home Loan Bank Advance [Domain]
Significant Accounting Policies [Line Items]
Financing Receivable, Allowance for Credit Loss	0	0
Other Assets [Member]
Significant Accounting Policies [Line Items]
Real estate owned, acquired through foreclosure	$ 0	$ 0
Automobiles and Computer Hardware [Member]
Significant Accounting Policies [Line Items]
Useful life of premises and equipment (in years)	3 years
Computer Software [Member]
Significant Accounting Policies [Line Items]
Useful life of premises and equipment (in years)	3 years
Office Equipment [Member]
Significant Accounting Policies [Line Items]
Useful life of premises and equipment (in years)	8 years
Office Furniture and Building Improvements [Member]
Significant Accounting Policies [Line Items]
Useful life of premises and equipment (in years)	10 years
Building [Member]
Significant Accounting Policies [Line Items]
Useful life of premises and equipment (in years)	40 years

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Cash and Due from Banks (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash and Cash Equivalents [Line Items]
Average collected cash balances	$ 8	$ 9

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Available-for-sale Securities (Available-for-sale by Major Security Type) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1]	$ 4,791	$ 2,455
Gross unrealized gains		2	0
Gross unrealized losses		(3)	(5)
Available-for-Sale, Estimated Fair Value		4,790	2,450
Accrued Interest on Available-for sale		30	11
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1]	4,063	2,208
Gross unrealized gains		1	0
Gross unrealized losses		(1)	(5)
Available-for-Sale, Estimated Fair Value		4,063	2,203
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1],[2]	728	247
Gross unrealized gains		1	0
Gross unrealized losses		(2)	0
Available-for-Sale, Estimated Fair Value	[2]	727	247
Total non Mortgage Backed Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1]	4,063	2,208
Available-for-Sale, Estimated Fair Value		$ 4,063	$ 2,203

[1] Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

[2] (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Available-for-sale Securities (Summary of Available-for-sale Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months	$ 1,928	$ 2,352
Gross Unrealized losses ,Continuous Unrealized Loss Position, Less than 12 Months	(3)	(5)
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months	1,441	2,105
Gross Unrealized losses ,Continuous Unrealized Loss Position, Less than 12 Months	(1)	(5)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Debt Securities, Available-for-sale [Line Items]
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months	487	247
Gross Unrealized losses ,Continuous Unrealized Loss Position, Less than 12 Months	$ (2)	$ 0

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Available-for-sale Securities (Redemption Terms) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1]	$ 4,791	$ 2,455
Available-for-Sale, Estimated Fair Value		4,790	2,450
Accrued Interest on Available-for sale		30	11
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost - Due in one year or less	[1]	100	0
Fair Value - Due in one year or less		100	0
Amortized Cost - Due after Year One Through Five	[1]	3,963	2,208
Fair Value, - Due after Year One Through Five		3,963	2,203
Available-for-sale, amortized cost	[1]	4,063	2,208
Available-for-Sale, Estimated Fair Value		4,063	2,203
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1],[2]	728	247
Available-for-Sale, Estimated Fair Value	[2]	727	247
Total non Mortgage Backed Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, amortized cost	[1]	4,063	2,208
Available-for-Sale, Estimated Fair Value		$ 4,063	$ 2,203

[1] Amortized cost includes adjustments made to the cost basis for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $30 and $11 as of December 31, 2024 and 2023, respectively.

[2] (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Held-to-maturity Securities (Held-to-maturity by Major Security Type) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost	[1]	$ 25,443	$ 28,714
Held-to-maturity securities Gross Unrealized Gains		33	40
Gross Unrealized Losses on held-to-maturity securities		(336)	(419)
Held-to -maturity Securities accrued interest receivable		58	72
Held-to-maturity securities, fair value		25,140	28,335
State or local housing agency debt obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		1	1
Held-to-maturity securities Gross Unrealized Gains		0	0
Gross Unrealized Losses on held-to-maturity securities		0	0
Held-to-maturity securities, fair value		1	1
Government-sponsored enterprises debt obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		795	1,475
Held-to-maturity securities Gross Unrealized Gains		3	4
Gross Unrealized Losses on held-to-maturity securities		0	(12)
Held-to-maturity securities, fair value		798	1,467
Residential [Member] | U.S. agency obligations-guaranteed residential [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		2,010	2,715
Held-to-maturity securities Gross Unrealized Gains		2	9
Gross Unrealized Losses on held-to-maturity securities		(36)	(32)
Held-to-maturity securities, fair value		1,976	2,692
Residential [Member] | Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		8,420	8,311
Held-to-maturity securities Gross Unrealized Gains		13	18
Gross Unrealized Losses on held-to-maturity securities		(151)	(185)
Held-to-maturity securities, fair value		8,282	8,144
Commercial [Member] | Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		14,217	16,212
Held-to-maturity securities Gross Unrealized Gains		15	9
Gross Unrealized Losses on held-to-maturity securities		(149)	(190)
Held-to-maturity securities, fair value		$ 14,083	$ 16,031

[1] (1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

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Held-to-maturity Securities (Redemption Terms) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-Maturity,	[1]	$ 25,443	$ 28,714
Estimated fair value of held-to-maturity securites		25,140	28,335
Held-to -maturity Securities accrued interest receivable		58	72
Non-mortgage backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity, Amortized Cost, Due in one year or less.		435	680
Held-to-maturity, Amortized Cost, Due after one year through five years		301	736
Held-to-maturity, Amortized Cost, Due after after five years through 10 years		60	60
Debt Securities, Held-to-Maturity,		796	1,476
Estimated fair value of held-to-maturity securities due in one year or less		436	668
Estimated fair value of held-to-maturity securities due after one year through five years		303	740
Estimated fair value of Held-to-maturity securities due after five years through ten years		60	60
Held-to-Maturity, Maturity, without Single Maturity Date, Fair Value		799	1,468
Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-Maturity,	[2]	24,647	27,238
Estimated fair value of held-to-maturity securites	[2]	$ 24,341	$ 26,867

[1] (1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

[2] (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Held-to-maturity Securities (Interest-rate Payment Terms) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Held-to -maturity Securities accrued interest receivable		$ 58	$ 72
Held-to-Maturity - Amortized Cost	[1]	25,443	28,714
Non-mortgage backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		796	1,476
Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost	[2]	24,647	27,238
Fixed-rate [Member] | Non-mortgage backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		1	551
Fixed-rate [Member] | Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		2,850	3,341
Variable-rate [Member] | Non-mortgage backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		795	925
Variable-rate [Member] | Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-Maturity - Amortized Cost		$ 21,797	$ 23,897

[1] (1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

[2] (2) MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

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Advances (Redemption Terms) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Advances [Abstract]
Due in one year or less		$ 59,497	$ 70,501
Due after one year through two years		9,155	6,038
Due after two years through three years		4,768	5,375
Due after three years through four years		5,327	3,075
Due after four years through five years		2,730	7,544
Due after five years		4,831	4,415
Federal Home Loan Bank Advances at par value		86,308	96,948
Deferred Prepayment Fees on Advances		3	10
Discounts		(1)	(1)
Hedging adjustments		(481)	(349)
Federal Home Loan Bank Advances	[1]	85,829	96,608
Accrued Interest Receivable, Advances Disclosure		$ 375	$ 577

[1] Carrying amounts exclude accrued interest receivable of $375 and $577 as of December 31, 2024 and 2023, respectively.

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Advances (Advances by Year of Contractual Maturity or Next Call Date for Callable Advances) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Advances [Abstract]
Due or callable in one year or less	$ 62,240	$ 72,792
Due or callable after one year through two years	7,724	5,968
Due or callable after two years through three years	4,205	4,053
Due or callable after three years through four years	4,907	2,621
Due or callable after four years through five years	2,426	7,124
Due or callable after five years	4,806	4,390
Federal Home Loan Bank Advances at par value	$ 86,308	$ 96,948

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Advances (Advances by Year of Contracutal Maturity for Convertible Advances) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Advances [Abstract]
Due or convertible in one year or less	$ 63,194	$ 72,951
Due or convertible after one year through two years	8,683	6,154
Due or convertible after two years through three years	3,994	5,117
Due or convertible after three years through four years	4,870	3,040
Due or convertible after four years through five years	1,526	5,584
Due or convertible after five years	4,041	4,102
Federal Home Loan Bank Advances at par value	$ 86,308	$ 96,948

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Advances (Interest-rate Payment Terms) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Advances [Abstract]
Fixed-rate, due in one year or less	$ 15,669	$ 17,162
Fixed-rate, due after one year	21,127	22,100
Total fixed-rate	36,796	39,262
Variable-rate, due in one year or less	43,828	53,339
Variable-rate, due after one year	5,684	4,347
Total variable-rate	49,512	57,686
Federal Home Loan Bank Advances at par value	$ 86,308	$ 96,948

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Advances (Narrative) (Details) $ in Millions	Dec. 31, 2024 USD ($) Institutions	Dec. 31, 2023 USD ($) Institutions
Advances (Textual) [Abstract]
Federal Home Loan Bank Advances at par value	$ 86,308	$ 96,948
Number of Top Advances Borrowers | Institutions	10	10
Federal Home Loan Bank Advances to Ten Largest Borrowers	$ 63,317	$ 70,499
Federal Home Loan Bank Advances Ten Largest Borrowers Percent of Total	73.40%	72.70%
Allowance for credit losses on advances		$ 0
Advances past due		0
Federal Home Loan Bank, Advances, Callable Option [Member]
Advances (Textual) [Abstract]
Federal Home Loan Bank Advances at par value	$ 6,469	2,789
Federal Home Loan Bank, Advances, Convertible Option [Member]
Advances (Textual) [Abstract]
Federal Home Loan Bank Advances at par value	$ 3,916	$ 2,693

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Mortgage Loans Held for Portfolio (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance		$ 89	$ 103
Total mortgage loans held for portfolio	[1]	89	103
Allowance for credit losses on mortgage loans		0	0
Mortgage loans held for portfolio, net		89	103
Accrued Interest on Mortgage Loans			1
Fixed-rate medium-term residential mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance		$ 1	$ 1
Mortgage loans on real estate, original contract terms		15 years	15 years
Fixed-rate long-term residential mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance		$ 88	$ 102
Conventional Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance		82	94
Government-guaranteed or insured mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance		$ 7	$ 9

[1] Amortized cost, excluding accrued interest receivable that was not material for the reported periods.

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Mortgage Loans Held for Portfolio Credit Quality Indicators (Details) - Residential Portfolio Segment [Member] - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
In Process of Foreclosure at Amortized Cost	[1]	$ 0	$ 1
Financing Receivable, Percent Past Due	[2]	2.22%	2.19%
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing	[3]	$ 0	$ 0
Financing Receivable, Excluding Accrued Interest, Nonaccrual	[4]	2	2
Government-guaranteed or insured mortgage loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
In Process of Foreclosure at Amortized Cost	[1]	$ 0	$ 0
Financing Receivable, Percent Past Due	[2]	1.54%	2.43%
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing	[3]	$ 0	$ 0
Financing Receivable, Excluding Accrued Interest, Nonaccrual	[4]	0	0
Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year	[5]	82	94
In Process of Foreclosure at Amortized Cost	[1]	$ 0	$ 1
Financing Receivable, Percent Past Due	[2]	2.28%	2.17%
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing	[3]	$ 0	$ 0
Financing Receivable, Excluding Accrued Interest, Nonaccrual	[4]	2	2
Mortgage Loans Amortzied Cost on Nonaccrual Status with an Associated Allowance for Credit Losses		0	0
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		2	2
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		1	1
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		2	2
Financial Asset, Past Due | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		5	5
Financial Asset, Not Past Due | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year		$ 77	$ 89

[1] Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported.

[2] Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage loan portfolio segment.

[3] Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

[4] Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. As of December 31, 2024 and 2023, none of conventional mortgage loans on nonaccrual status had an associated allowance for credit losses because either these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, was greater than the amortized cost of the loans.

[5] Amortized cost excludes accrued interest receivable that was not material for the reported periods.

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Consolidated Obligations (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) bank	Dec. 31, 2023 USD ($)
Schedule of Short-term and Long-term Debt [Line Items]
Number of Federal Home Loan Banks | bank	11
Par Value FHLBanks' Outstanding Consolidated Obligations	$ 1,192,968	$ 1,204,316
Unpledged qualifying assets held by the Bank	146,523	151,730
Federal Home Loan Bank, Consolidated Obligations	$ 135,851	$ 141,572
Maximum contractual maturity period of discount notes (up to one year)	1 year
Other FHLBanks [Member]
Schedule of Short-term and Long-term Debt [Line Items]
Number of Federal Home Loan Banks | bank	10

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Consolidated Obligations (Interest-rate Payment Terms) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items]
Bonds par value	$ 104,416	$ 117,053
Simple variable-rate [Member]
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items]
Bonds par value	49,905	38,288
Fixed-rate [Member]
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items]
Bonds par value	51,471	74,641
Step up/down [Member]
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items]
Bonds par value	$ 3,040	$ 4,124

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Consolidated Obligations (Redemption Terms) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Federal Home Loan Bank, Consolidated Obligations, Bonds	$ 103,699	$ 115,600
Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	83,164	84,908
Bonds, Due after one year through two years	10,341	12,584
Bonds, Due after two years through three years	6,593	9,736
Bonds, Due after three years through four years	2,197	6,172
Bonds, Due after four years through five years	1,161	2,552
Bonds, Due after five years	960	1,101
Bonds par value	104,416	117,053
Premiums	7	12
Discounts	(13)	(13)
Hedging adjustments	(711)	(1,452)
Federal Home Loan Bank, Consolidated Obligations, Bonds	$ 103,699	$ 115,600
Bonds, Due in one year or less, weighted average interest rate	4.17%	4.77%
Bonds, Due after one year through two years, weighted average interest rate	1.78%	2.71%
Bonds, Due after two years through three years, weighted average interest rate	2.83%	1.66%
Bonds, Due after three years through four years, weighted average interest rate	2.62%	2.70%
Bonds, Due after four years through five years, weighted average interest rate	3.96%	3.06%
Bonds, Due after five years, weighted average interest rate	4.13%	3.07%
Total, weighted average interest rate	3.82%	4.13%

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Consolidated Obligations (Bonds by Callable Feature) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Bonds par value	$ 104,416	$ 117,053
Noncallable [Member]
Debt Instrument [Line Items]
Bonds par value	65,259	52,117
Callable [Member]
Debt Instrument [Line Items]
Bonds par value	$ 39,157	$ 64,936

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Consolidated Obligations (Bonds by Maturity or Call Date) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Bonds, Due in one year or less	$ 83,164	$ 84,908
Bonds, Due after one year through two years	10,341	12,584
Bonds, Due after two years through three years	6,593	9,736
Bonds, Due after three years through four years	2,197	6,172
Bonds, Due after four years through five years	1,161	2,552
Bonds, Due after five years	960	1,101
Bonds par value	104,416	117,053
Earlier of Contractual Maturity or Next Call Date [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	99,033	110,423
Bonds, Due after one year through two years	2,249	2,691
Bonds, Due after two years through three years	1,362	1,776
Bonds, Due after three years through four years	1,307	451
Bonds, Due after four years through five years	70	1,307
Bonds, Due after five years	$ 395	$ 405

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Consolidated Obligations (Discount Notes) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Short-term Debt [Line Items]
Discount notes	$ 32,152	$ 25,972
Discount Notes
Short-term Debt [Line Items]
Discount notes	32,152	25,972
Discount notes par value	$ 32,368	$ 26,241
Discount notes weighted average interest rate	4.44%	5.25%

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Affordable Housing Program (Roll-forward) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Affordable Housing Program [Roll Forward]
AHP liability balance, at beginning of year	$ 108	$ 59	$ 61
Statutory AHP assessment	77	72	21
Voluntary AHP expense	23	11	5
Direct grant disbursements	(52)	(35)	(31)
Recapture amounts and other	(1)	(1)	3
AHP liability balance, at end of year	$ 157	$ 108	$ 59

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Authorized Voluntary Housing Contributions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Affordable Housing Program [Roll Forward]
Authorized Voluntary Non-statutory AHP Contributions	$ 23	$ 11	$ 5
Authorized Voluntary Non-AHP Contributions	26	8	0
Authorized Voluntary Housing Contributions	$ 49	$ 19	$ 5

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Allocation of voluntary housing contributions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Voluntary housing contributions [Abstract]
AHP Homeownership Set-aside Program	$ 15	$ 11	$ 5
AHP General Fund	8	0	0
Voluntary AHP expense	23	11	5
Workforce Housing Plus	20	0	0
Heirs’ Property Family Wealth Protection Fund	6	0	0
Other voluntary non-AHP contribution	0	8	0
Voluntary non-AHP expense	26	8	0
Voluntary housing contribution	$ 49	$ 19	$ 5

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Non-AHP Roll Forward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Affordable Housing Program [Roll Forward]
Voluntary non-AHP contributions liability, at beginning of year	$ 8	$ 0
Voluntary non-AHP expense	26	8	$ 0
Payments made	(28)	0	0
Voluntary non-AHP contributions liability, at end of year	$ 6	$ 8	$ 0

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Affordable Housing Program (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Federal Home Loan Banks [Abstract]
Affordable Housing Program required contribution percentage	10.00%
Affordable Housing Program required aggregate contribution amount	$ 100
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding	$ 7	$ 8

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Capital and Mandatorily Redeemable Capital Stock (Narrative) (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) class $ / shares Rate	Dec. 31, 2023 $ / shares
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract]
Number of Finance Agency Regulatory Capital Requirements	3
Total regulatory capital ratio, Required	4.00%	4.00%
Required leverage ratio	5.00%	5.00%
Weight applied to permanent capital in computing leverage ratio	1.5
Number of subclasses of capital stock | class	3
Capital stock Class B putable par value (per share) | $ / shares	$ 100	$ 100
B1 Membership stock requirement percentage	0.07%
Membership stock requirement, maximum | $	$ 18
Percent of the member's outstanding par value of advances.	4.75%
Activity based capital stock required by members as a percent of targeted debt or equity investments sold by member to the bank	8.00%
Activity based capital stock required by member as a percentage of outstanding balance of acquired member assets	0.00%
Redemption period for excess capital stock (in years)	5 years
B3 Membership Stock Requirement Percentage | Rate	0.10%
RegulatoryStockDividendPaymentRestrictionThreshold	0.01

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Capital and Mandatorily Redeemable Capital Stock (Regulatory Capital Rules and Requirements) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Banking Regulation, Total Capital [Abstract]
Risk based capital, Required	$ 1,312	$ 1,288
Risk based capital, Actual	$ 7,935	$ 8,121
Total regulatory capital ratio, Required	4.00%	4.00%
Total regulatory capital ratio, Actual	5.39%	5.33%
Total regulatory capital, Required	$ 5,884	$ 6,095
Total regulatory capital, Actual	$ 7,935	$ 8,121
Leverage capital ratio, Required	5.00%	5.00%
Leverage capital ratio, Actual	8.09%	7.99%
Leverage Capital, Required	$ 7,355	$ 7,619
Leverage Capital, Actual	$ 11,902	$ 12,182

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Capital and Mandatorily Redeemable Capital Stock Schedule of Declared quarterly Cash Dividends (Details) - USD ($) $ in Millions	3 Months Ended												12 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Declared Quarterly Cash Dividends [Abstract]
Dividends, Common Stock, Cash	$ 99	$ 112	$ 108	$ 117	$ 104	$ 127	$ 99	$ 78	$ 51	$ 33	$ 23	$ 22	$ 436	$ 408	$ 129
Common Stock Dividend-Annualized Rate	7.35%	7.35%	7.35%	7.35%	7.25%	6.97%	6.50%	6.37%	5.30%	4.11%	3.74%	3.70%	7.35%	6.79%	4.34%

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income		$ 0	$ (5)
Net unrealized losses on available-for-sale securities		4	29	$ (25)
Pension and postretirement benefits		1	0	7
Pension and Postretirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income		1	0	0	$ (7)
Net change in fair value		0		0
Actuarial (loss) gain		1		6
Pension and postretirement benefits	[1]			1
Net current period other comprehensive income (loss)		1	0	7
Noncredit Portion of Other Than Temporary Impairment Losses [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income		(1)	(5)	(34)	(9)
Net unrealized losses on available-for-sale securities		4	29	(25)
Actuarial (loss) gain		0		0
Net current period other comprehensive income (loss)		4	29	(25)
Total Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income		0	(5)	(34)	$ (16)
Net unrealized losses on available-for-sale securities		4	29
Net change in fair value				(25)
Actuarial (loss) gain		1		6
Pension and postretirement benefits	[1]			1
Net current period other comprehensive income (loss)		$ 5	$ 29	$ (18)

[1] Included in Noninterest expense - Other on the Statements of Income.

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Pension and Post Retirement Benefit Plans (Multi-employer Plan) (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jul. 01, 2024	Jul. 01, 2023	Jul. 01, 2022
Multiemployer Plans [Line Items]
Multiemployer plan number		333
Entity Tax Identification Number		56-6000442
Pentegra Defined Benefit Plan [Member]
Multiemployer Plans [Line Items]
Pension Cost (Reversal of Cost)		$ 1	$ 1	$ 5
Pentegra Plan funded status as of July 1	[1],[2]				111.97%	113.99%	119.09%
Bank's funded status as of the plan year end					131.40%	137.29%	145.40%
Entity Tax Identification Number		13-5645888

[1] The Pentegra Plan’s funded status as of July 1, 2024, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2024 through March 15, 2025. Contributions made on or before March 15, 2025, and designated for the plan year ended June 30, 2024, will be included in the final valuation as of July 1, 2024. The final funded status as of July 1, 2024, will not be available until the Form 5500 for the plan year July 1, 2024 through June 30, 2025, is filed (this Form 5500 is due to be filed no later than April 2026).

[2] The Pentegra Plan’s funded status as of July 1, 2023, is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2023 through March 15, 2024. Contributions made on or before March 15, 2024, and designated for the plan year ended June 30, 2023, will be included in the final valuation as of July 1, 2023. The final funded status as of July 1, 2023, will not be available until the Form 5500 for the plan year July 1, 2023 through June 30, 2024, is filed (this Form 5500 is due to be filed no later than April 2025).

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Derivatives and Hedging Activities (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Derivative, Notional Amount		$ 100,589	$ 111,647
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		198	217
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		778	1,604
Derivative Asset, Netting Adjustments and Cash Collateral	[1],[2]	247	306
Derivative Liability, Fair Value, Netting Adjustments and Cash Collateral	[1],[2]	(766)	(1,599)
Derivative assets		445	523
Derivative liabilities (1)		12	5
Derivative Liability, Collateral, Right to Reclaim Cash, Offset		1,046	1,921
Derivative Asset, Collateral, Obligation to Return Cash, Offset		33
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Derivative, Notional Amount		100,529	107,578
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		196	215
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		777	1,603
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount		60	4,069
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		2	2
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		1	1
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member]
Derivative [Line Items]
Derivative, Notional Amount		60	69
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		2	2
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		1	1
Not Designated as Hedging Instrument [Member] | Interest Rate Caps or Floors [Member]
Derivative [Line Items]
Derivative, Notional Amount		0	4,000
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		0	0
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		$ 0	$ 0

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

[2] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty

XML

Derivatives and Hedging Activities (Net Gains (Losses) on Derivatives and Hedging Activities) (Details) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2024		Dec. 31, 2023		Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income, Federal Home Loan Bank Advances		$ 5,467		$ 6,681		$ 1,748
Available-for-sale securities		179		79		26
Interest Expense, Other Long-term Debt		(6,076)		(6,617)		(1,345)
Interest Expense, Other Short-term Borrowings		(1,210)		(1,798)		(805)
Interest Income [Member] | Advances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
GainLossonFairValueHedgesRecognizedinNetInterestIncomeBeforePriceAlignmentInterest		8		(9)		213
Net Interest Settlements	[1],[2]	472		499		(17)
Amortization Accretion of Active Hedging Relationships		1		10		(185)
Other Effects from Fair Value Hedging Relationships		(14)		(30)		4
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income		467		470		15
Interest Income [Member] | Advances [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	[1]	(147)		348		(1,105)
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		155		(357)		1,318
Interest Income [Member] | Available-for-sale Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
GainLossonFairValueHedgesRecognizedinNetInterestIncomeBeforePriceAlignmentInterest		0		0
Net Interest Settlements		28	[1],[2]	5
Amortization Accretion of Active Hedging Relationships		0		0
Other Effects from Fair Value Hedging Relationships		2		0
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income		30		5
Interest Income [Member] | Available-for-sale Securities [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		(65)	[1]	59
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		65		(59)
Interest Expense [Member] | Bonds
Derivative Instruments, Gain (Loss) [Line Items]
GainLossonFairValueHedgesRecognizedinNetInterestIncomeBeforePriceAlignmentInterest		475		456		4
Net Interest Settlements	[1],[2]	(1,120)		(1,314)		(187)
Amortization Accretion of Active Hedging Relationships		(466)		(456)		(12)
Other Effects from Fair Value Hedging Relationships		(7)		(5)		0
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income		(1,118)		(1,319)		(195)
Interest Expense [Member] | Bonds | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge	[1]	(270)		(555)		2,226
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		745		1,011		(2,222)
Interest Expense [Member] | Discount Notes
Derivative Instruments, Gain (Loss) [Line Items]
GainLossonFairValueHedgesRecognizedinNetInterestIncomeBeforePriceAlignmentInterest		0				1
Net Interest Settlements		(6)	[1],[2]	(3)	[1],[2]	(32)
Amortization Accretion of Active Hedging Relationships		0		0		0
Other Effects from Fair Value Hedging Relationships		(11)		(3)		0
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income		(17)		(8)		(31)
Interest Expense [Member] | Discount Notes | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		(2)	[1]	(14)	[1]	10
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		$ 2		12		$ (9)
GainLossonFairValueHedgesRecognizedinNetInterestIncomeBeforePriceAlignmentInterest				$ (2)

[1] Excludes the interest income/expense of the respective hedged items.

[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.

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Derivatives and Hedging Activities Derivatives and Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Advances [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amortization cost of asset hedged in fair value hedging relationship		$ 24,840	$ 25,175	[1]
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease)		(478)	(339)
Hedged Asset, Deferred Gain (loss) on discontinuation of interest rate fair value hedge		(3)	(10)
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease)		(481)	(349)
Available-for-sale Securities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amortization cost of asset hedged in fair value hedging relationship	[1]	4,791	2,455
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease)		(5)	59
Hedged Asset, Deferred Gain (loss) on discontinuation of interest rate fair value hedge		0	0
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease)		(5)	59
Bonds
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amortization cost of liability hedged in fair value hedging relationship	[1]	49,795	71,637
Hedged Liability,Active Fair Value Hedge, Cumulative Increase (Decrease)		(700)	(1,436)
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease)		(11)	(16)
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)		(711)	(1,452)
Discount Notes
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amortization cost of liability hedged in fair value hedging relationship	[1]	20,654	6,862
Hedged Liability,Active Fair Value Hedge, Cumulative Increase (Decrease)		5	3
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease)		0	0
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)		$ 5	$ 3

[1] Includes only the portion of amortized cost representing the hedged items in active or discontinued fair value hedging relationships. Amortized cost includes fair value hedging adjustments.

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Derivatives and Hedging Activities Derivatives and Hedging Activities (Net Gains (Losses) on Derivatives and Hedging Activities Recorded in Non-interest Income) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net gains (losses) on derivatives	$ 1	$ (4)	$ 2
Interest Rate Swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	1	(3)	0
Interest Rate Caps or Floors [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	0	(1)	0
Net Interest Settlements [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 0	$ 0	$ 2

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Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset		$ 198	$ 217
Derivative Liability, Fair Value, Gross Liability		778	1,604
Derivative Asset, Netting Adjustments and Cash Collateral	[1],[2]	247	306
Derivative Liability, Fair Value, Netting Adjustments and Cash Collateral	[1],[2]	(766)	(1,599)
Derivative assets (1)		445	523
Derivative liabilities (1)		12	5
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged		0	0
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged		0	0
Derivative Asset, Fair Value, Amount Offset Against Collateral		445	523
Derivative Liability, Fair Value, Amount Offset Against Collateral		12	5
Exchange Cleared [Member]
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset		13	17
Derivative Liability, Fair Value, Gross Liability		8	12
Derivative Asset, Netting Adjustments and Cash Collateral		424	496
Derivative Liability, Fair Value, Netting Adjustments and Cash Collateral		(8)	(12)
Derivative assets (1)		437	513
Derivative liabilities (1)		0	0
Derivative, Collateral, Obligation to Return Securities		0	0
Derivative, Collateral, Right to Reclaim Securities		0	0
Derivative Asset, Fair Value, Amount Offset Against Collateral		437	513
Derivative Liability, Fair Value, Amount Offset Against Collateral		0	0
Over the Counter [Member]
Offsetting Assets [Line Items]
Derivative Asset, Fair Value, Gross Asset		185	200
Derivative Liability, Fair Value, Gross Liability		770	1,592
Derivative Asset, Netting Adjustments and Cash Collateral		(177)	(190)
Derivative Liability, Fair Value, Netting Adjustments and Cash Collateral		(758)	(1,587)
Derivative assets (1)		8	10
Derivative liabilities (1)		12	5
Derivative, Collateral, Obligation to Return Securities		0	0
Derivative, Collateral, Right to Reclaim Securities		0	0
Derivative Asset, Fair Value, Amount Offset Against Collateral		8	10
Derivative Liability, Fair Value, Amount Offset Against Collateral		$ 12	$ 5

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

[2] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty

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Derivatives and Hedging Activities (Narrative) (Details)	12 Months Ended
	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Federal Home Loan Bank, Advances, Maximum Contractual Maturity Period	30 years

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Estimated Fair Values (Fair Value Summary) (Details) - USD ($) $ in Millions		Dec. 31, 2024	Dec. 31, 2023
Assets:
Cash and due from banks		$ 35	$ 142
Available-for-Sale, Estimated Fair Value		4,790	2,450
Held-to-Maturity - Amortized Cost	[1]	25,443	28,714
Held-to-maturity securities, fair value		25,140	28,335
Accrued Interest Receivable		490	673
Derivative assets (1)		445	523
Derivative Asset, Netting Adjustments and Cash Collateral	[2],[3]	247	306
Liabilities:
Accrued interest payable		721	902
Derivative liabilities (1)		12	5
Derivative Liability, Fair Value, Netting Adjustments and Cash Collateral	[2],[3]	(766)	(1,599)
Estimate of Fair Value Measurement [Member]
Assets:
Cash and due from banks		35	142
Interest-bearing deposits		1,493	1,833
Securities purchased under agreements to resell		21,200	12,500
Federal funds sold		7,158	8,710
Held-to-maturity securities, fair value		25,140	28,335
Advances		85,862	96,599
Mortgage loans held for portfolio, net		85	101
Accrued Interest Receivable		490	673
Grantor trust assets (included in Other assets) (1)	[4]	29	26
Liabilities:
Interest-bearing deposits		2,312	1,568
Mandatory Redeemable Capital Stock		1
Accrued interest payable		721	902
Estimate of Fair Value Measurement [Member] | Discount Notes
Liabilities:
Discount notes		32,147	25,968
Carrying Value [Member]
Assets:
Cash and due from banks		35	142
Interest-bearing deposits		1,493	1,833
Securities purchased under agreements to resell		21,200	12,500
Federal funds sold		7,158	8,710
Held-to-Maturity - Amortized Cost		25,443	28,714
Advances		85,829	96,608
Mortgage loans held for portfolio, net		89	103
Accrued Interest Receivable		490	673
Grantor trust assets (included in Other assets) (1)	[4]	29	26
Liabilities:
Interest-bearing deposits		2,312	1,568
Mandatory Redeemable Capital Stock		1
Accrued interest payable		721	902
Carrying Value [Member] | Discount Notes
Liabilities:
Discount notes		32,152	25,972
Consolidated Obligation Bonds [Member] | Estimate of Fair Value Measurement [Member]
Liabilities:
Bonds		103,570	115,280
Consolidated Obligation Bonds [Member] | Carrying Value [Member]
Liabilities:
Bonds		103,699	115,600
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and due from banks		35	142
Interest-bearing deposits		0	0
Securities purchased under agreements to resell		0	0
Federal funds sold		0	0
Held-to-maturity securities, fair value		0	0
Advances		0	0
Mortgage loans held for portfolio, net		0	0
Accrued Interest Receivable		0	0
Grantor trust assets (included in Other assets) (1)	[4]	29	26
Liabilities:
Interest-bearing deposits		0	0
Mandatory Redeemable Capital Stock		1
Accrued interest payable		0	0
Fair Value, Inputs, Level 1 [Member] | Discount Notes
Liabilities:
Discount notes		0	0
Fair Value, Inputs, Level 1 [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Bonds		0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and due from banks		0	0
Interest-bearing deposits		1,493	1,833
Securities purchased under agreements to resell		21,200	12,500
Federal funds sold		7,158	8,710
Held-to-maturity securities, fair value		25,140	28,335
Advances		85,862	96,599
Mortgage loans held for portfolio, net		85	101
Accrued Interest Receivable		490	673
Grantor trust assets (included in Other assets) (1)	[4]	0	0
Liabilities:
Interest-bearing deposits		2,312	1,568
Mandatory Redeemable Capital Stock		0
Accrued interest payable		721	902
Fair Value, Inputs, Level 2 [Member] | Discount Notes
Liabilities:
Discount notes		32,147	25,968
Fair Value, Inputs, Level 2 [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Bonds		103,570	115,280
Fair Value, Recurring [Member] | Estimate of Fair Value Measurement [Member]
Assets:
Available-for-Sale, Estimated Fair Value	[4]	4,790	2,450
Derivative assets (1)	[4]	445	523
Liabilities:
Derivative liabilities (1)	[4]	12	5
Fair Value, Recurring [Member] | Carrying Value [Member]
Assets:
Available-for-Sale, Estimated Fair Value	[4]	4,790	2,450
Derivative assets (1)	[4]	445	523
Liabilities:
Derivative liabilities (1)	[4]	12	5
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Available-for-Sale, Estimated Fair Value	[4]	0	0
Derivative assets (1)	[4]	0	0
Liabilities:
Derivative liabilities (1)	[4]	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Available-for-Sale, Estimated Fair Value	[4]	4,790	2,450
Derivative assets (1)	[4]	198	217
Liabilities:
Derivative liabilities (1)	[4]	$ 778	$ 1,604

[1] (1) Excludes accrued interest receivable of $58 and $72 as of December 31, 2024 and 2023, respectively

[2] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. Cash collateral posted, including accrued interest, was $1,046 and $1,921 as of December 31, 2024 and 2023, respectively. Cash collateral received including accrued interest, was $33 and $15 as of December 31, 2024 and 2023, respectively.

[3] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty

[4] Financial instruments measured at fair value on a recurring basis. 

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Commitments and Contingencies (Details) - Standby Letters of Credit [Member] $ in Millions	Dec. 31, 2024 USD ($) letter_of_credit	Dec. 31, 2023 USD ($) letter_of_credit
Loss Contingencies [Line Items]
Number Of Outstanding Standby Letters Of Credit Renewable Annually | letter_of_credit	26	21
Standby Letters Of Credit Issued Renewable Annually	$ 59	$ 30
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	10,251	8,086
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	8,059	7,557
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 18,310	$ 15,643

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable	$ 1,056,184	$ 1,061,022
Carrying value guarantees related to standby letters of credit	104	99
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Carrying value guarantees related to standby letters of credit	$ 29	$ 26

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Transactions with Shareholders (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Minimum
RelatedPartyTransactionDefinitionOfRelatedPartyCapitalStockPercentage	10.00%
Definition of shareholder concentration, percentage	10.00%
Federal Home Loan Bank, Regulatory Capital, Actual	$ 7,935	$ 8,121
Federal Home Loan Bank, Advances, Par Value	86,308	96,948
Bank of America [Member]
Minimum
Federal Home Loan Bank, Regulatory Capital, Actual	$ 629	$ 850
Percent of Total Regulatory Capital Stock Outstanding	12.21%	15.19%
Federal Home Loan Bank, Advances, Par Value	$ 12,849	$ 17,504
Percent of Total Par Value Advances	14.89%	18.05%
Interest-bearing Deposits	$ 0	$ 0
Percent of Total Interest-bearing Deposits	0.01%	0.01%
Truist
Minimum
Federal Home Loan Bank, Regulatory Capital, Actual	$ 964	$ 1,197
Percent of Total Regulatory Capital Stock Outstanding	18.72%	21.38%
Federal Home Loan Bank, Advances, Par Value	$ 19,801	$ 24,701
Percent of Total Par Value Advances	22.94%	25.48%
Interest-bearing Deposits	$ 0	$ 0
Percent of Total Interest-bearing Deposits	0.00%	0.00%

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Transaction with Other FHLBanks (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule of Other Transactions [Line Items]
Loans to Other Federal Home Loan Banks			$ 0
Percent of Total Master Commitment Acquired from a Member of FHLBank Indianapolis	90.00%
Dollar Value of Master Commitment Agreement Executed between An FHLBank and A Member	$ 100
Loans to other FHLBanks		$ 0	(1,005)	$ (4,300)
Principal collected on loans to other FHLBanks		0	1,005	4,300
Net change in loans to other FHLBanks		0	0	0
Proceeds from short-term borrowings from other FHLBanks		4,200	300	4,080
Payments of short-term borrowings from other FHLBanks		(4,200)	(300)	(4,080)
Net change in borrowings from other FHLBanks		0	0	$ 0
Outstanding Balance of Mortgage Loans Purchased under Master Commitment Agreement between A Member and An FHLBank		19	21
Par Amount of Consolidated Obligations Transfer		2	11,610
Par Amount of Consolidated Obligations Assumed		6	0
Federal Home Loan Bank of Boston
Schedule of Other Transactions [Line Items]
Par Amount of Consolidated Obligations Transfer		2	0
Par Amount of Consolidated Obligations Assumed		5	0
Federal Home Loan Bank of New York [Member]
Schedule of Other Transactions [Line Items]
Par Amount of Consolidated Obligations Transfer		0	6,080
Federal Home Loan Bank of Chicago [Member]
Schedule of Other Transactions [Line Items]
Par Amount of Consolidated Obligations Transfer		0	4,320
Federal Home Loan Bank of Indianapolis [Member]
Schedule of Other Transactions [Line Items]
Par Amount of Consolidated Obligations Transfer		0	960
Federal Home Loan Bank of Cincinnati [Member]
Schedule of Other Transactions [Line Items]
Par Amount of Consolidated Obligations Transfer		0	250
Par Amount of Consolidated Obligations Assumed		$ 1	$ 0

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Subsequent Events (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 05, 2025	Dec. 31, 2024
Subsequent Event [Line Items]
Common Stock Dividend Subsequent Event -Annualized Rate		7.10%
Subsequent Event
Subsequent Event [Line Items]
Payments of Dividends	$ 100