The dividends will be paid in cash on February 20, 2026.
Earnings Highlights
Three Months Ended December 31, 2025
Net interest income was $131 million, a net increase of $8 million compared to the corresponding period in the prior year. The increase was primarily due to higher interest spreads on interest-earning assets, net of interest-bearing liabilities, partially offset by lower earnings generated from investing our capital in interest-earning assets.
Net income was $73 million, a net increase of $6 million compared to the corresponding period in the prior year. The increase was primarily due to higher net interest income.
Year Ended December 31, 2025
Net interest income was $517 million, a net increase of $10 million compared to the prior year. The increase was primarily due to higher advance prepayment fees, net of swap termination fees, and higher interest spreads on interest-earning assets, net of interest-bearing liabilities, partially offset by lower earnings generated from investing our capital in interest-earning assets.
Net income was $324 million, a net decrease of $18 million compared to the prior year. The decrease was primarily due to valuation changes on our economic hedges resulting from interest rate volatility and an acceleration of the amortization of pension benefits from accumulated other comprehensive income to other expenses.
Affordable Housing Program Allocation
The Bank's Affordable Housing Program ("AHP") provides grant funding to support housing for low- and moderate-income families in communities served by its Michigan and Indiana members. Each year, the Bank is required to allocate to the AHP 10% of net income before assessments plus interest expense on mandatorily redeemable capital stock. For the year ended December 31, 2025, required AHP assessments totaled $38 million, which will be available to the Bank's members in 2026 to help address their communities' affordable housing needs, including construction, rehabilitation, accessibility improvements, and homebuyer down-payment assistance.
In addition, the Bank voluntarily contributed $36 million in 2025 as part of the Bank's commitment to further support its AHP and additional affordable housing and community investment programs, which has been recognized and reported in other expenses.
Condensed Statements of Income
The following table presents unaudited condensed statements of income ($ amounts in millions):
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024
Interest income
$
931
$
989
$
3,854
$
4,130
Interest expense
800
866
3,337
3,623
Provision for credit losses
—
—
—
—
Net interest income after provision for credit losses
131
123
517
507
Other income
4
6
21
32
Other expenses
53
