Federal Home Loan Banks

The Federal Home Loan Banks provide stable, on-demand, low-cost funding to American financial institions for home mortgage loans, small business, rural, agricultural, and economic development lending. With their members, the FHLBank System represents the largest collective source of home mortgage and community credit in the United States. The banks do not provide loans directly to individuals, only to other banks.
On August 13, 2008, the FHLBanks Office of Finance published the second quarter combined financial report. For Q208, the FHLBanks recorded net income of $718 million, up 14% from the same period one year before. For the six months ended June 30, total earnings were $1.415 billion, a 13% increase over the same period in 2007. Combined assets of the 12 Federal Home Loan Banks were $1,344 billion at the close of Q208. Of this total, secured loans equaled $914 billion, or about 68% of assets. Investments were the second largest component at $334 billion, or 25% of assets. Mortgage loans held in portfolio were $89 billion, or less than 7% of assets. The FHLBanks made affordable housing contributions of $176 million in the first half of 2008, up 25% from the year-ago period reflecting the increase in net income. Compared to year-end 2007, secured loans, investments, net income, capital and affordable housing contributions increased, while the mortgage loan portfolio decreased.