Financial Highlights

This financial data should be read in conjunction with the Bank's Form 10-K filed with the Securities and Exchange Commission on March 25, 2010.

(Dollars in millions)

Selected Balance Sheet Items at Yearend

	2009	2008	2007	2006	2005
Total Assets ⁽¹⁾	$192,862	$321,244	$322,446	$244,915	$223,602
Advances	133,559	235,664	251,034	183,669	162,873
Mortgage Loans Held for Portfolio, Net	3,037	3,712	4,132	4,630	5,214
Investments ⁽²⁾	47,006	60,671	64,913	55,391	54,465
Consolidated Obligations:⁽³⁾
Bonds	162,053	213,114	225,328	199,300	182,625
Discount Notes	18,246	91,819	78,368	30,128	27,618
Mandatorily Redeemable Capital Stock ⁽⁴⁾	4,843	3,747	229	106	47
Capital Stock - Class B - Putable ⁽⁴⁾	8,575	9,616	13,403	10,616	9,520
Retained Earnings	1,239	176	227	143	131
Accumulated Other Comprehensive Loss	(3,584)	(7)	(3)	(5)	(3)
Total Capital	6,230	9,785	13,627	10,754	9,648

Selected Operating Results for the Year

	2009	2008	2007	2006	2005
Net Interest Income	$1,782	$1,431	$931	$839	$683
Provision for Credit Losses on Mortgage Loans	1	—	—	—	—
Other (Loss)/Income	(948)	(690)	55	(10)	(100)
Other Expense	132	112	98	90	81
Assessments	186	168	236	197	133
Net Income	$515	$461	$652	$542	$369

Selected Other Data for the Year

	2009	2008	2007	2006	2005
Net Interest Margin ⁽⁵⁾	0.73%	0.44%	0.36%	0.37%	0.34%
Operating Expenses as a Percentage of Average Assets	0.04	0.03	0.03	0.03	0.04
Return on Average Assets	0.21	0.14	0.25	0.23	0.18
Return on Average Equity	5.83	3.54	5.80	5.40	4.22
Dividend Rate⁽⁶⁾	0.28	3.93	5.20	5.41	4.44
Spread of Dividend Rate to Dividend Benchmark⁽⁷⁾	(1.61)	0.97	0.75	1.24	1.22
Dividend Payout Ratio ⁽⁸⁾	5.36	114.32	87.14	97.70	102.36

Selected Other Data at Yearend

	2009	2008	2007	2006	2005
Regulatory Capital Ratio ^(1) (9)	7.60%	4.21%	4.30%	4.44%	4.34%
Average Equity to Average Assets Ratio	3.57	3.93	4.25	4.33	4.29
Duration Gap (in months)	4	3	2	1	1

Effective January 1, 2008, the Bank changed its accounting policy to offset fair value amounts for cash collateral against fair value amounts recognized for derivative instruments executed with the same counterparty. The Bank recognized the effects as a change in accounting principle through retrospective application for all prior periods presented.
Investments consist of Federal funds sold, trading securities, available-for-sale securities, held-to-maturity securities, securities purchased under agreements to resell, and loans to other Federal Home Loan Banks (FHLBanks).
As provided by the Federal Home Loan Bank Act of 1932, as amended, or regulations governing the operations of the FHLBanks, all of the FHLBanks have joint and several liability for FHLBank consolidated obligations, which are backed only by the financial resources of the FHLBanks. The joint and several liability regulation authorizes the Federal Housing Finance Agency to require any FHLBank to repay all or a portion of the principal or interest on consolidated obligations for which another FHLBank is the primary obligor. The Bank has never been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank, and as of December 31, 2009, and through March 25, 2010, does not believe that it is probable that it will be asked to do so. The par amount of the outstanding consolidated obligations of all 12 FHLBanks was as follows:

Yearend Par amount

2009 $930,617

2008 1,251,542

2007 1,189,706

2006 951,990

2005 937,460
During 2008 and 2009, several members were placed into receivership or merged with nonmember institutions, including three large members. IndyMac Bank, F.S.B., and Washington Mutual Bank were placed into receivership during 2008, and Wachovia Mortgage, FSB, merged into Wells Fargo Bank, N.A., a nonmember institution, in 2009. The Bank reclassified the capital stock of these institutions from Class B capital stock to mandatorily redeemable capital stock (a liability).
Net interest margin is net interest income divided by average interest-earning assets.
On February 22, 2010, the Bank’s Board of Directors declared a cash dividend for the fourth quarter of 2009 at an annualized dividend rate of 0.27%. The Bank recorded and paid the fourth quarter dividend during the first quarter of 2010.
The dividend benchmark is calculated as the combined average of (i) the daily average of the overnight Federal funds effective rate and (ii) the four-year moving average of the U.S. Treasury note yield (calculated as the average of the three-year and five-year U.S. Treasury note yields).
This ratio is calculated as dividends per share divided by net income per share.
This ratio is calculated as regulatory capital divided by total assets. Regulatory capital includes mandatorily redeemable capital stock (which is classified as a liability) and excludes accumulated other comprehensive income.

Yearend	Par amount
2009	$930,617
2008	1,251,542
2007	1,189,706
2006	951,990
2005	937,460