Federal Home Loan Bank of Des Moines Reports Impressive Earnings
Financial Performance Overview
The Federal Home Loan Bank of Des Moines recently announced its financial results for the second quarter of 2025. The report highlights significant accomplishments and contributions to both its members and the communities they serve.
Second Quarter 2025 Highlights
A snapshot of key results reveals that the Bank achieved a net income of $194 million for the quarter. This demonstrates the Bank's robust operational efficiency and commitment to financial stability. Some notable figures include:
- Net income of $194 million.
- Affordable Housing Program assessments totaling $21 million.
- A commendable $43 million in voluntary community contributions.
- Total advances reaching $114.8 billion, supporting member activities.
- Mortgage loans held for portfolio amounting to $13.2 billion.
Dividend Declaration
The Board of Directors has approved a dividend for the second quarter of 2025, maintaining an annualized rate of 9.75% on average activity-based stock and 6.00% on average membership stock. The Bank plans to distribute a total of $145 million in dividends scheduled for payment on August 12, 2025. This consistent return showcases the Bank's dedication to providing value to its members.
Liquidity and Support Operations
Central to the Bank's mission is its commitment to delivering liquidity and support to its members for housing, business, and community development needs. The Bank's strategy involves members pledging mortgage loans as collateral to access services such as advances and letters of credit. For the six months ending June 30, 2025, average advance balances were $104.0 billion, demonstrating robust utilization of the Bank's liquidity products.
Impact on Affordable Housing and Communities
The Bank emphasizes its responsibility towards affordable housing through the Affordable Housing Program (AHP). Contributing 10% of its net income annually, the AHP supports the preservation and creation of affordable housing options. Within the first half of 2025, the Bank accrued $21 million in statutory AHP assessments. This commitment translates into various initiatives, including competitive grants and down payment assistance programs.
Collaborative Housing Efforts
In addition to statutory contributions, the Bank recorded voluntary community support of $43 million. This includes substantial funding towards programs like:
- Zero-interest rate advances to Habitat for Humanity affiliates.
- Lower-than-market-interest rates on mortgage loans through the Mortgage Rate Relief program, which assisted in providing affordable homeownership.
- Matching funds contributions to the Member Impact Fund that benefitted local housing development organizations.
Review of Financial Results
The financial results reflect not just numbers, but how the Federal Home Loan Bank is positioned to evolve amidst changing monetary landscapes. Compared to the same periods last year, the Bank’s net income has shown a consistent performance. Key financial metrics include:
- The net interest income for the quarter was recorded at $289 million.
- Other income increased to $16 million, showcasing growth in fair value changes.
- Total assets reached an impressive $190.0 billion by June 30, 2025.
Capital and Obligations
Surging capital figures underscore the Bank's financial health, with total capital rising to $10.2 billion. This is primarily attributed to an increase in activity-based capital stock driven by higher advance balances.
Concluding Thoughts
The Federal Home Loan Bank of Des Moines continues to play a pivotal role in enhancing economic stability and promoting affordable housing initiatives. As we transition through the year, the Bank remains committed to its mission of supporting its members and fostering positive community impacts.
Frequently Asked Questions
What is the recent net income reported by the Bank?
The recent net income reported for the second quarter of 2025 stands at $194 million.
When are the dividend payments scheduled?
Dividend payments are scheduled for August 12, 2025, amounting to a total of $145 million.
How does the Bank support affordable housing?
The Bank contributes annually to its Affordable Housing Program, supporting the creation and preservation of affordable housing.
What was the total assets figure at the end of June 2025?
The total assets of the Bank reached $190.0 billion by June 30, 2025.
How has the Bank's capital changed recently?
Total capital increased to $10.2 billion, reflecting a stronger financial foundation due to member activity.
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