The Federal Home Loan Bank of Topeka (FHLBank) announced unaudited financial results for the quarter ended September 30, 2026. The filing details a significant expansion in total assets, a decline in net income, and specific changes in the bank's investment and lending portfolios.
FHLBank reported total assets of $85.6 billion as of September 30, 2026, representing an increase of $8.1 billion, or 10.4 percent, compared to the prior year end. This growth was driven by increases in advances, short-term liquidity investments, and investment securities. Advances rose to $48.6 billion, a $4.9 billion increase, while investment securities grew to $16.1 billion, largely due to purchases of multifamily mortgage-backed securities.
Net income for the quarter ended September 30, 2026, was $73.0 million. This figure represents a decrease of $20.9 million, or 22.2 percent, compared to the prior year quarter. The decline in net income was attributed to a $19.6 million decrease in net interest income, which was driven by fair value hedge accounting adjustments on investment securities. Consequently, the net interest margin decreased to 0.51 percent, and the return on average equity decreased to 6.3 percent.
In terms of housing and community development, FHLBank is subject to a regulatory assessment that commits 10 percent of net income before assessments to affordable housing initiatives. The bank has also voluntarily committed an additional $25.5 million to support these programs. The bank expects to file its Form 10-Q for the quarter ended September 30, 2026, with the SEC on or about November 10, 2026.
