The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced its preliminary and unaudited financial results for the first quarter of 2025.
“As we embark on a new year, we reaffirm our commitment to being a strong and reliable source of liquidity to our members and the communities they serve,” said Michael Ericson, president and chief executive officer of FHLBank Chicago. “Our financial success enables us to reinvest through our members back into our district with lending and grant programs that increase housing supply and affordability, stimulate local economies and create more resilient communities.”
First Quarter 2025 Financial Highlights
- Net income was $158 million, compared to $182 million for the first quarter of 2024 due, in part, to interest rates declining quarter-over-quarter, decreasing net interest income. Additionally, the rise in noninterest expense from increased contributions to housing and community development initiatives also contributed to the decline in net income.
- Total assets decreased to $126.1 billion, compared to $129.1 billion at December 31, 2024, with the change mostly due to a decrease in our liquidity portfolio.
- Advances outstanding remained stable at $56.0 billion, compared to $55.8 billion at December 31, 2024.
- Mortgage loans held for portfolio through the Mortgage Partnership Finance® (MPF®) Program increased to $13.5 billion, compared to $13.3 billion at December 31, 2024, primarily attributable to new acquisition volume that outpaced paydown activity.
Ongoing Commitment to Housing and Community Development
FHLBank Chicago has allocated $52 million toward its 2025 Affordable Housing Program (AHP) General Fund, to subsidize the acquisition, new construction, and/or rehabilitation of affordable rental or owner-occupied housing. The competitive round will be open May 12 through June 20, 2025.
The 2025 Downpayment Plus® (DPP®) grant programs opened this February with a budget of $46 million. These programs allow participating members to help their income-eligible borrowers with down payment and closing costs of up to $10,000.
To help members fund affordable housing and economic development needs in their communities, FHLBank Chicago offers Community Advances at below market rates and $365 million was funded in the first quarter of 2025.
The MPF Program has an impact on housing finance and affordability. During the first quarter of 2025, 39% of mortgages purchased for investment or securitized through MPF products at FHLBank Chicago were made to low-income borrowers or communities.
Additionally, FHLBank Chicago has committed more than $8 million to its Community First® grant programs in 2025 to target affordable housing development and expand access to financial education.
For more financial details, please refer to the Condensed Statements of Income and Statements of Condition below. The Form 10-Q for the quarter ending March 31, 2025, is expected to be filed with the Securities and Exchange Commission (SEC) next month.
Condensed Statements of Condition |
|||||||||
(Dollars in millions) |
|||||||||
(Preliminary and Unaudited) |
|||||||||
|
|
March 31, 2025 |
|
December 31, 2024 |
|
Change |
|||
Cash and due from banks, interest-bearing deposits, federal funds sold, and securities purchased under agreements to resell |
|
$ |
25,630 |
|
$ |
29,715 |
|
(14 |
)% |
Investment debt securities |
|
|
30,333 |
|
|
29,560 |
|
3 |
% |
Advances |
|
|
55,990 |
|
|
55,847 |
|
— |
% |
MPF Loans held in portfolio, net of allowance for credit losses |
|
|
13,532 |
|
|
13,320 |
|
2 |
% |
Other |
|
|
649 |
|
|
670 |
|
(3 |
)% |
Assets |
|
$ |
126,134 |
|
$ |
129,112 |
|
(2 |
)% |
|
|
|
|
|
|
|
|||
Consolidated obligation discount notes |
|
$ |
35,083 |
|
$ |
36,739 |
|
(5 |
)% |
Consolidated obligation bonds |
|
|
80,015 |
|
|
81,859 |
|
(2 |
)% |
Other |
|
|
2,180 |
|
|
1,894 |
|
15 |
% |
Liabilities |
|
|
117,278 |
|
|
120,492 |
|
(3 |
)% |
Capital stock |
|
|
3,383 |
|
|
3,267 |
|
4 |
% |
Retained earnings |
|
|
5,397 |
|
|
5,311 |
|
2 |
% |
Accumulated other comprehensive income (loss) |
|
|
76 |
|
|
42 |
|
81 |
% |
Capital |
|
|
8,856 |
|
|
8,620 |
|
3 |
% |
Total liabilities and capital |
|
$ |
126,134 |
|
$ |
129,112 |
|
(2 |
)% |
|
|
|
|
|
|
|
|||
Member standby letters of credit - off-balance sheet |
|
$ |
11,833 |
|
$ |
12,908 |
|
(8 |
)% |
Condensed Statements of Income |
||||||||||
(Dollars in millions) |
||||||||||
(Preliminary and Unaudited) |
||||||||||
|
Three months ended March 31, |
|||||||||
|
|
2025 |
|
|
|
2024 |
|
|
Change |
|
Interest income |
$ |
1,488 |
|
|
$ |
1,775 |
|
|
(16 |
)% |
Interest expense |
|
(1,252 |
) |
|
|
(1,528 |
) |
|
(18 |
)% |
Net interest income |
|
236 |
|
|
|
247 |
|
|
(4 |
)% |
Reversal of (provision for) credit losses |
|
1 |
|
|
|
— |
|
|
— |
% |
Net interest income after reversal of (provision for) credit losses |
|
237 |
|
|
|
247 |
|
|
(4 |
)% |
Noninterest income (loss) |
|
19 |
|
|
|
24 |
|
|
(21 |
)% |
Noninterest expense |
|
(80 |
) |
|
|
(69 |
) |
|
16 |
% |
Income before assessments |
|
176 |
|
|
|
202 |
|
|
(13 |
)% |
Affordable Housing Program assessment |
|
(18 |
) |
|
|
(20 |
) |
|
(10 |
)% |
Net income |
$ |
158 |
|
|
$ |
182 |
|
|
(13 |
)% |
|
|
|
|
|
|
|||||
Average interest-earning assets |
$ |
127,060 |
|
|
$ |
127,659 |
|
|
— |
% |
Net interest income yield on average interest-earning assets |
|
0.74 |
% |
|
|
0.77 |
% |
|
(0.03 |
)% |
About the Federal Home Loan Bank of Chicago
FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.
“Community First,” “Downpayment Plus Program,” “DPP,” “Mortgage Partnership Finance,” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.
Forward-Looking Information: This announcement uses forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than statements of historical fact, including statements with respect to beliefs, plans, objectives, projections, estimates, or predictions. These statements are based on FHLBank Chicago’s expectations as of the date hereof. The words “believe,” “estimate,” “expect,” “preliminary,” “continue,” “remain,” “commit,” and similar statements and their plural and negative forms are used to identify some, but not all, of such forward-looking statements. For example, statements about future dividends and expectations for financial commitments are forward-looking statements. FHLBank Chicago cautions that, by their nature, forward-looking statements involve risks and uncertainties, including, but not limited to: legislative and regulatory developments that affect FHLBank Chicago, its members, or counterparties; instability in the credit and debt markets; economic conditions (including banking industry developments and liquidity in the financial system); prolonged inflation or recession; maintaining compliance with regulatory and statutory requirements (including relating to dividend payments and retained earnings); any decrease in levels of business which may negatively impact results of operations or financial condition; the reliability of projections, assumptions, and models on future financial performance and condition; political, national and world events; changes in demand for advances or consolidated obligations; membership changes; changes in mortgage interest rates and prepayment speeds on mortgage assets; FHLBank Chicago’s ability to execute its business model and pay future dividends (including enhanced dividends on activity stock);FHLBank Chicago’s ability to protect the security of information systems and manage any failures, interruptions, or breaches in its technology, controls or operating processes; and the risk factors set forth in FHLBank Chicago’s periodic filings with the Securities and Exchange Commission (SEC), which are available through the SEC’s reporting website. FHLBank Chicago assumes no obligation to update any forward-looking statements made herein. In addition, the FHLBank Chicago reserves the right to change its business plan or plans for any programs for any reason, including but not limited to, legislative or regulatory changes, changes in membership or member usage of programs, or changes at the discretion of the board of directors. Accordingly, FHLBank Chicago cautions that actual results could differ materially from those expressed or implied in these forward-looking statements or could impact the extent to which a particular plan, objective, projection, estimate or prediction is realized. New factors may emerge, and it is not possible to predict the nature of each new factor or assess its potential impact. Given these uncertainties, undue reliance should not be placed on forward-looking statements.
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“Our financial success enables us to reinvest through our members back into our district with lending and grant programs that increase housing supply and affordability, stimulate local economies and create more resilient communities.” - Michael Ericson
Contacts
Heather Bockstruck, 312.565.5282
hbockstruck@fhlbc.com
