DES MOINES, Iowa, July 24, 2026 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of Des Moines (the Bank) reported robust financial performance for the second quarter of 2026, with net income of $251 million, and declared a quarterly dividend at an increased rate.

The results reflect the Federal Home Loan Bank System's continued role as a critical liquidity backstop for U.S. financial institutions following a period of elevated system-wide advance usage that began during the 2023 regional banking disruptions. The Des Moines bank, one of 11 congressionally chartered cooperative banks in the system, serves one of the largest geographic districts among its peers.

Second Quarter 2026 Highlights

• Net income of $251 million
• Affordable Housing Program (AHP) assessments of $28 million
• Voluntary housing and community contributions of $30 million
• Advances totaled $124.5 billion
• Mortgage loans held for portfolio, net totaled $15.5 billion
• Letters of credit totaled $21.0 billion
• Retained earnings totaled $4.0 billion

CEO Commentary

"The Bank's earnings remained robust during the first half of 2026 as a result of members' continued usage of the Bank's core liquidity products," said Kris Williams, president and chief executive officer. "We continue to leverage our earnings to benefit our members and their communities by paying a strong dividend and contributing to our affordable housing and community investment initiatives. This year, as a result of our financial performance, we plan to contribute more than $200 million to advance affordable housing and address critical housing and community development needs across our district, reinforcing our mission to support the communities we serve."

The planned $200 million in housing and community contributions comes amid a persistent national housing affordability challenge that has made the FHLBanks' AHP grants an increasingly important funding source for affordable housing developers and prospective homeowners.

Dividend

The Board of Directors approved a second quarter 2026 dividend at an annualized rate of 9.95% on average activity-based stock and 6.95% on average membership stock, representing an increase from the prior quarter. The Bank expects to distribute dividend payments totaling $189 million on August 11, 2026.

Liquidity Mission

The Bank provides liquidity to its members to support housing, business, and economic development needs in their communities. Members pledge mortgage loans and other collateral to access the Bank's core liquidity products — advances, letters of credit, and mortgage loans held for portfolio under the Mortgage Partnership Finance® Program.

During the six months ended June 30, 2026, advance balances averaged $133.5 billion, letters of credit averaged $18.8 billion, and mortgage loan balances averaged $15.0 billion. The Bank also held an average of $29.7 billion in short-term assets as a ready source of liquidity for its members.

Affordable Housing and Community Impact

The Bank's housing and community development programs are central to its mission. Each year, the Bank contributes 10% of its net income to its AHP, a grant program supporting the creation, rehabilitation, or purchase of affordable housing. The program encompasses a competitive AHP alongside two down payment assistance products: Home$tart and the Native American Homeownership Initiative.

During the three and six months ended June 30, 2026, the Bank accrued statutory AHP assessments of $28 million and $54 million, respectively, and voluntarily accrued an additional $3 million and $5 million to be awarded through the program.

Beyond the AHP, the Bank offers voluntary programs to further its housing mission. For the three and six months ended June 30, 2026, the Bank recorded total voluntary housing and community contributions of $30 million and $55 million, respectively, including the voluntary AHP contribution.

Through its voluntary programs in 2026, the Bank achieved the following:

• Housing Affordability Advances: Provided $43 million in 0% rate advances to members that originated or purchased mortgage loans from a Habitat for Humanity® affiliate or a non-depository community development financial institution, recording $9 million in subsidy expense, including $1 million during the second quarter.
• Mortgage Rate Relief Program: Funded $275 million in home mortgages at interest rates below the prevailing market rate, providing $24 million in grants — including $22 million during the second quarter — for those seeking affordable homeownership.
• Member Impact Fund: Recorded $17 million in contributions, including $4 million during the second quarter, to match member donations to local housing and community development organizations.

Financial Results Discussion

Net Income: For the three and six months ended June 30, 2026, the Bank recorded net income of $251 million and $487 million, respectively, compared to $194 million and $399 million for the same periods in 2025.

Net Interest Income: The Bank recorded net interest income of $339 million and $664 million for the three and six months ended June 30, 2026, increases of $50 million and $127 million, respectively, over the same periods in 2025. The growth was primarily attributable to advance portfolio expansion.

Other Income (Loss): Other income totaled $17 million and $28 million for the three and six months ended June 30, 2026, representing a $1 million increase for the quarter and a $29 million decrease for the six-month period compared to 2025. These changes were primarily driven by net fair value changes on the Bank's trading securities, fair value option instruments, and economic derivatives, including related interest settlements.

Other Expense: For the three months ended June 30, 2026, other expense was $77 million, a $13 million decrease compared to the same period in 2025, primarily due to the timing of voluntary housing and community contributions. Other expense remained relatively stable for the six months ended June 30, 2026, compared to the prior year period.

Assets: Total assets grew to $212.6 billion at June 30, 2026, from $186.5 billion at December 31, 2025, driven primarily by increases in advances and investments. Advances rose $14.3 billion, mainly due to increased borrowings by insurance company and certain depository institution members. Insurance companies have been growing users of FHLB advances as a funding source for investment portfolios in recent years, a trend reflected in the Bank's member mix. Investments increased $10.8 billion, primarily reflecting growth in federal funds sold, securities purchased under agreements to resell, and interest-bearing deposits.

Capital: Total capital increased to $11.5 billion at June 30, 2026, from $10.5 billion at December 31, 2025, primarily due to an increase in activity-based capital stock resulting from higher advance balances.

Total regulatory capital includes capital stock, mandatorily redeemable capital stock, and retained earnings. The regulatory capital ratio is calculated as regulatory capital as a percentage of period-end assets.

Preliminary Results and Filings

The financial results reported in this earnings release for the second quarter of 2026 are preliminary until the Bank announces unaudited financial results in its Second Quarter 2026 Form 10-Q filed with the Securities and Exchange Commission, expected to be available next month at www.fhlbdm.com and www.sec.gov.

About the Bank

The Bank is a member-owned cooperative whose mission is to be a reliable provider of funding, liquidity, and services for its members so they can meet the housing, business, and economic development needs of the communities they serve. The Bank is wholly owned by over 1,200 members, including commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions.

The Bank serves Alaska, Hawaii, Idaho, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. It is one of 11 regional banks that comprise the Federal Home Loan Bank System, government-sponsored enterprises created by Congress in 1932 to provide a stable source of funding for housing and community lending.

Forward-Looking Statements

Statements contained in this announcement, including those describing the objectives, projections, estimates, or future predictions in the Bank's operations, may be forward-looking statements. These may be identified by the use of forward-looking terminology such as "believes," "projects," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "could," "should," "may," and "will," or their negatives or other variations. By their nature, forward-looking statements involve risk or uncertainty, and actual results could differ materially from those expressed or implied. A detailed discussion of the more important risks and uncertainties can be found in the "Risk Factors" section of the Bank's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC. These forward-looking statements apply only as of the date they are made, and the Bank undertakes no obligation to update or revise them publicly, whether as a result of new information, future events, or otherwise.