The Federal Home Loan Bank of Cincinnati (FHLB) released unaudited financial results for the third quarter ended September 30, 2026, reporting a net income of $126 million. This figure represents a decrease of $18 million compared to the same period in 2025.
For the first nine months of 2026, the FHLB reported total net income of $354 million, a decrease of $84 million from the first nine months of 2025. The bank attributes the decline in earnings to lower average interest rates, which reduced the earnings generated from interest-earning assets, and lower spreads earned on Advances and mortgage loans held for portfolio. These factors were partially offset by fair value adjustments on derivatives and related financial instruments.
As of September 30, 2026, the FHLB reported total assets of $124.3 billion, a decrease of $5.1 billion (four percent) from year-end 2025. Total investments stood at $42.3 billion, a decrease of $7.7 billion (15 percent) from the previous year-end, driven by a reduction in liquidity investments.
Regarding capital, GAAP capital was reported at $6.6 billion, an increase of less than 1 percent from year-end 2025. The GAAP and regulatory capital-to-assets ratios were 5.29 percent and 5.36 percent, respectively, both exceeding the regulatory minimum of four percent. The bank paid a cash dividend to stockholders on September 17, 2026, at an annualized rate of 7.00 percent.
In terms of community investment, the FHLB's net income for the first nine months of 2026 resulted in an accrual of $40 million to the Affordable Housing Program (AHP) pool. Additionally, the bank made voluntary contributions totaling $32 million to housing and community investment programs during the first nine months of 2026.
