The Federal Home Loan Bank of Chicago reported preliminary, unaudited financial results for the third quarter of 2026, showing a decline in net income compared to the same period in 2025. For the quarter ended September 30, 2026, the Bank recorded net income of $145 million. This represents a decrease of $40 million, or 22%, from the $185 million reported in the third quarter of 2025.
The reduction in earnings was primarily attributed to increased noninterest expenses. The Bank noted that costs rose due to higher Community Advance subsidies and additional funding allocated for the Downpayment Plus (DPP) Programs and the Affordable Housing Program (AHP) General Fund.
Despite the lower net income, the Bank’s total assets grew to $151.6 billion as of September 30, 2026, an increase from $141.2 billion at the end of 2025. This growth was driven by a 18% rise in advances outstanding to $72.4 billion, reflecting increased borrowing by depository institution members and, to a lesser extent, insurance company members.
The Bank also reported growth in its portfolio of mortgage loans held through the Mortgage Partnership Finance (MPF) Program, which increased to $15.6 billion from $14.7 billion at December 31, 2025. This increase was due to acquisition volume outpacing principal paydowns.
FHLBank Chicago manages its operations in accordance with statutory requirements to support affordable housing. Through the first nine months of 2026, the Bank recognized an AHP assessment of $55 million. Additionally, the Bank provided $49 million in community investment grants and Community Advance subsidies during this period.
Management stated that the results reflect continued member demand for liquidity and mortgage solutions. The full Form 10-Q for the quarter ended September 30, 2026, is expected to be filed with the SEC next month.
