Declines in advances and investments drove total Federal Home Loan Bank (FHLBank) assets to fall 11% from $878.1 billion at the end of last year to $778.3 billion at the end of the third quarter, according to preliminary and unaudited data reported by the FHLBank Office of Finance.
According to the report, advances fell 13% during the first nine months of the year to approximately $414 billion at the end of September. Advances are lower due to the sustained high level of liquidity in the market and low loan demand experienced at FHLBank member institutions, the Office of Finance says.
Investments declined 12%, primarily over that time period, to approximately $290.25 billion because of reductions in federal funds sold and certificates of deposit.
Mortgage loans declined 10% as a result of low purchase volumes, principal repayments and the sale of mortgage loans.
Consolidated obligations declined 12%, consistent with the decline in total assets, the report says.