The Federal Home Loan Bank of Des Moines (FHLB Des Moines) released its financial results for the third quarter ended September 30, 2026, and announced a dividend for the period. The Bank reported net income of $200 million for the quarter, compared to $259 million in the same period of 2025.
Net interest income for the quarter was $314 million, a decrease of $21 million from the prior year. The Bank attributed this decline to changes in interest rates and a decrease in market value adjustments on fair value hedge relationships. However, for the nine months ended September 30, 2026, net interest income totaled $978 million, an increase of $106 million compared to the same period in 2025. This growth was driven by increases in advances, mortgage-backed securities, and mortgage loan portfolio balances.
Other expenses for the quarter increased to $103 million, primarily due to higher voluntary housing and community contributions. The Bank also recorded $23 million in Affordable Housing Program (AHP) assessments during the quarter.
On the balance sheet, total assets increased to $217.4 billion as of September 30, 2026, from $186.5 billion at December 31, 2025. This growth was driven by a $25.9 billion increase in advances, largely due to borrowings by certain depository institution and insurance company members. Mortgage loans held for portfolio totaled $16.0 billion, and letters of credit totaled $21.1 billion.
The Bank’s Board of Directors approved a third quarter 2026 dividend with an annualized rate of 9.95% on average activity-based capital stock and 6.95% on average membership capital stock. These rates remain unchanged from the prior quarter. The Bank expects to make dividend payments totaling $194 million on November 10, 2026.
In addition to its core financial results, the Bank highlighted its community impact. During the quarter, it provided $43 million in 0% rate Housing Affordability Advances to members working with Habitat for Humanity affiliates or community development financial institutions. The Bank also funded $380 million in home mortgages under its Mortgage Rate Relief program and recorded $36 million in contributions to its Member Impact Fund.
