The FHLBanks, along with the Office of Finance are collectively referred to as the FHLBank System.  The System was created in 1932 by the Federal Home Loan Bank Act to stimulate mortgage financing and provide liquidity to credit markets that had been adversely affected by the Great Depression.  In 1989, Congress expanded the FHLBank System's public policy mission to include affordable housing and community development lending.

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The FHLBanks provide long- and short-term loans (advances) to their members.  Overall, access to FHLBank advances enables members to hold lesser amounts of low-yielding liquid assets than they otherwise would be required to hold.  In addition, members may use  long-term advances only to support residential housing finance and, in the case of a community financial institution, to support lending to small businesses, small farms, and small agricultural businesses.

The FHLBanks also offer mortgage purchase programs in which they buy qualifying mortgage loans.  Under these programs, the FHLBank manages the market risk associated with the loans, while the member bears most of the credit risk.

Members have access to a broad array of community investment advances and grants to support targeted affordable housing and community investment initiatives.  Each FHLBank is required to allocate 10 percent of its prior year’s net income to fund a program known as the Affordable Housing Program (AHP).  Under the terms of the AHP, a member may submit an application to its FHLBank for funds to be used to finance the purchase, construction or rehabilitation of housing for very  low-, low-, and moderate-income households.

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The FHLBanks' Office of Finance prepares and issues combined quarterly and annual financial reports for the FHLBanks. 

Click here to access the latest financial report of the FHLBank System.