Federal Home Loan Bank of Des Moines Reports Impressive Q3 Results

Financial Overview from the Federal Home Loan Bank

The Federal Home Loan Bank of Des Moines has recently shared its financial results for the third quarter of 2025, showcasing significant achievements. These results play a crucial role in highlighting the Bank's ongoing commitment to support community development while maintaining financial stability.

Highlights of Q3 Performance

During the third quarter of 2025, the Bank reported a net income of $259 million, illustrating robust financial health. Key highlights from this quarter include:

• Affordable Housing Program (AHP) assessments amounting to $29 million.
• Voluntary contributions to the community and housing initiatives that reached $13 million.
• Advances totaling $110.0 billion.
• Mortgage loans held for portfolio netted $13.9 billion.
• Letters of credit reaching $17.4 billion.
• Total retained earnings standing at $3.7 billion.

Dividend Declaration

The Board of Directors has approved a dividend for the third quarter of 2025, maintaining an annualized rate of 9.75% on average activity-based stock and 6.00% on average membership stock. These dividends amount to an expected total of $159 million, scheduled for payment on November 12, 2025.

Liquidity and Community Mission

The Federal Home Loan Bank prioritizes liquidity as a core mission, ensuring members have access to funds needed for housing and community development. This commitment is evident as members collateralize mortgage loans and engage with core liquidity products such as advances, letters of credit, and mortgage loans. The average advance balances throughout the first nine months of 2025 stood at $108.7 billion, with mortgage loan balances and letter of credit averages at $12.8 billion and $18.6 billion, respectively.

Community Contribution through Housing Initiatives

The Bank's dedication to community development is apparent in its Affordable Housing Program, which contributes 10% of net income annually. This fund supports projects aimed at the creation and preservation of affordable housing. For the respective periods, the Bank recorded AHP assessments of $29 million and $73 million. Additionally, contributions supporting local housing initiatives totaled $13 million in the last quarter.

• The Bank provided $23 million in advances at a 0% interest rate, benefiting Habitat for Humanity affiliates.
• Home mortgages funded reached $344 million, offering lower interest rates than the market, including a $30 million grant for affordable homeownership.
• $26 million was contributed to its Member Impact Fund to amplify local housing donations.

Detailed Financial Results

The Bank's net income for the nine months ending September 30, 2025, reached $658 million, compared to $708 million during the same period in 2024. This reflects the dynamic economic landscape influencing interest rates and financial performance:

• Net Interest Income: Reported at $335 million for the last quarter, reflecting a slight increase from 2024.
• Other Income: Saw an increase to $12 million, largely due to changes in the fair value of trading securities.
• Assets: The total assets increased significantly to $189.3 billion, up from $165.3 billion, attributed to enhanced advances and investments.
• Capital Growth: Total capital rose to $10.2 billion, indicating a solid foundation for continued growth.

Performance Ratios

Key performance ratios painted a promising picture of the Bank's financial standing:

• Net interest spread was recorded at 0.43% for Q3 2025.
• The net interest margin reflects a healthy 0.67% as of the report date.
• Return on average assets was established at 0.51%, suggesting efficient capital utilization.
• Return on average equity stands at an impressive 9.71%, reinforcing confident management.

Conclusion

The financial outcomes of the Federal Home Loan Bank of Des Moines for Q3 2025 indicate a strong position to support community needs while ensuring consistent growth. Their commitment to affordable housing and community impact continues to solidify their place within the financial landscape. As the Bank looks toward the future, these positive results set a strong foundation for ongoing member support and strategic development.

Frequently Asked Questions

What were the key financial highlights for Q3 2025?

The Bank reported a net income of $259 million, advances of $110 billion, and significant contributions to community initiatives.

What is the dividend rate for Q3 2025?

The dividend is set at an annualized rate of 9.75% for activity-based stock and 6.00% for membership stock.

What are the Bank's contributions to community housing?

The Bank contributes 10% of its net income to its Affordable Housing Program.

How much did the Bank's total assets increase by?

Total assets grew to $189.3 billion as of September 30, 2025, increasing significantly from the previous year.

Who can access the Bank's liquidity products?

The Bank provides liquidity products to its members, including commercial banks, credit unions, and insurance companies.

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