FHLBANK TOPEKA ANNOUNCES 2025 THIRD QUARTER RESULTS (Form 8-K)

FHLBANK TOPEKA ANNOUNCES 2025 THIRD QUARTER RESULTS

October 23, 2025 - Federal Home Loan Bank of Topeka (FHLBank) is reporting net income of $93.9 million for the quarter ended September 30, 2025 compared to $101.1 million for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, FHLBank is reporting net income of $288.0 million compared to $323.4 million for the same period in the prior year. The decrease in net income for the current quarter was driven by lower interest rates and higher voluntary contributions to housing and community investment programs. The decrease in net income for the current year-to-date period was driven by lower interest rates, higher voluntary contributions, and fair value fluctuations on economic hedges. All measures are calculated in accordance with U.S. generally accepted accounting principles (GAAP).

FHLBank expects to file its Form 10-Q for the quarter ended September 30, 2025 with the Securities and Exchange Commission (SEC) on or about November 6, 2025.

Operating Highlights

•Total assets: Total assets were $79.9 billion as of September 30, 2025, an increase of $4.0 billion, or 5.2 percent, from $75.9 billion as of December 31, 2024. The increase in total assets was primarily driven by a $2.3 billion increase in advances and a $1.2 billion increase in long-term investments.

•Primary Mission Assets: Advances to members and housing associates and mortgage loans purchased from members are Primary Mission Assets because they are fundamental to the business and mission of FHLBank. The Primary Mission Asset ratio, as defined by the Federal Housing Finance Agency under its core mission achievement guidance, is calculated as year-to-date averages of advances and mortgage loans to consolidated obligations (less certain U.S. Treasury securities). As of September 30, 2025, our Primary Mission Asset ratio was 77 percent, compared to 78 percent at December 31, 2024.

•Advances: Advances were $44.0 billion at September 30, 2025, an increase of $2.3 billion, or 5.7 percent, compared to $41.7 billion at December 31, 2024 primarily as a result of increased utilization among large depository members. Advances represented 55.1 percent of total assets as of September 30, 2025, compared to 54.9 percent as of December 31, 2024. The average balance of advances increased $0.5 billion, or 1.0 percent, to $46.8 billion for the quarter ended September 30, 2025 compared to $46.3 billion for the quarter ended September 30, 2024. During the first nine months of 2025, the majority of the advance portfolio growth was in adjustable rate advances.

•Mortgage loans: Mortgage loans were $9.3 billion at September 30, 2025, an increase of $0.4 billion, or 3.7 percent, compared to $8.9 billion at December 31, 2024. Mortgage loans represented 11.6 percent of total assets at September 30, 2025, compared to 11.8 percent at December 31, 2024. The average balance of mortgage loans increased $0.4 billion, or 4.8 percent, for the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. Originations at interest rates higher than the weighted average rate of the existing portfolio continue to have a positive impact on interest income.

•Investment securities: Investment securities were $14.9 billion at September 30, 2025, an increase of $1.2 billion, or 8.7 percent, compared to $13.7 billion at December 31, 2024. Investment securities represented 18.7 percent of total assets at September 30, 2025 compared to 18.1 percent at December 31, 2024. The increase in investment securities was due primarily to purchases of multifamily agency commercial mortgage-backed securities.

•Net interest income/margin: Net interest income was $131.7 million for the quarter ended September 30, 2025, a decrease of $3.6 million, or 2.7 percent, compared to $135.3 million for the quarter ended September 30, 2024. The decrease in net interest income between periods was due primarily to the impact of the decrease in short-term interest rates and hedging adjustments on interest-earning assets, partially offset by an increase in the average balance of interest-earning assets. Net interest margin decreased three basis points, from 0.67 percent for the quarter ended September 30, 2024 to 0.64 percent for the quarter ended September 30, 2025. Net interest spread increased one basis point to 0.39 percent for the quarter ended September 30, 2025 compared to 0.38 percent for the quarter ended September 30, 2024. The decrease in net interest margin was due to the decrease in net interest income and shifts in balance sheet composition and spreads.

•Performance ratios: Return on average equity decreased to 8.9 percent for the quarter ended September 30, 2025 compared to 9.9 percent for the quarter ended September 30, 2024. The decrease was due to the decrease in net income combined with an increase in the average balance of capital stock resulting from increased advance utilization.

•Dividends: The Class A Common Stock dividend rate of 4.25 percent per annum and the Class B Common Stock dividend rate of 9.25 percent per annum combined for a weighted average dividend rate for the quarter ended September 30, 2025 of 8.65 percent.

Housing and Community Development Programs

FHLBank's housing and community development programs are central to its mission to make a difference by providing reliable liquidity and funding to help its members build strong communities. The success of the FHLBank cooperative means more funding is allocated to support members in these community-building initiatives. FHLBank is subject to a regulatory assessment that commits 10 percent of its net income before assessments to funding affordable housing initiatives in FHLBank's district. In 2025, the $48.1 million regulatory assessment from the prior year will be contributed to FHLBank's Affordable Housing Program (AHP). FHLBank has voluntarily committed an additional $26.5 million, or five percent of its 2024 net income before assessments and voluntary contributions, to support Homeownership Possibilities Expanded, Native American Housing Initiatives, Lending Enhancement Advance Program, Mortgage Rate Reduction Program, Community Assistance Recovery Effort, and the FHLBank Topeka Affordable Housing Institute at Metropolitan State University of Denver. In partnership with our members, FHLBank will support and sustain affordable housing and community lending through programs designed to address housing challenges within the unique footprint of the Tenth District through the commitment or distribution of $74.6 million.

Financial Highlights

Attached are highlights of FHLBank's financial position as of September 30, 2025 and December 31, 2024, and results of operations for the quarterly periods ended September 30, 2025 and 2024.

The information contained in this announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements describing the objectives, projections, estimates or future predictions of FHLBank's operations. These statements may be identified by the use of forward-looking terminology such as "anticipates," "believes," "may," "is likely," "could," "estimate," "expect," "will," "intend," "probable," "project," "should" or their negatives or other variations on these terms. FHLBank cautions that by their nature forward-looking statements involve risks or uncertainties and that actual results may differ materially from those expressed in any forward-looking statements as a result of such risks and uncertainties, including but not limited to: changes in the general economy and capital markets, the rate of inflation or deflation, employment rates, housing market activity and pricing, the size and volatility of the residential mortgage market, geopolitical events, and global economic uncertainty; governmental actions, including legislative, regulatory, judicial or other developments that affect FHLBank, our members, counterparties or investors, housing government-sponsored enterprises, or the FHLBank System in general; external events, such as economic, financial, or political disruptions, and/or wars, pandemics, and natural disasters, including disasters caused by climate change, which could damage our facilities or the facilities of our members, damage or destroy collateral pledged to secure advances or mortgages held for portfolio, which could increase our risk exposure or loss experience; effects of derivative accounting treatment and other accounting rule requirements, or changes in such requirements; competitive forces, including competition for loan demand, purchases of mortgage loans and access to funding; the ability of FHLBank to introduce new products and services to meet market demand and to manage successfully the risks associated with all products and services; changes in demand for FHLBank products and services or consolidated obligations of the FHLBank System; membership changes, including changes resulting from member failures or mergers, changes due to member eligibility, or changes in the principal place of business of members; changes in the U.S. government's long-term debt rating and the long-term credit rating of the senior unsecured debt issues of the FHLBank System; soundness of other financial institutions, including FHLBank members, non-member borrowers, counterparties and the other FHLBanks; the ability of each of the other FHLBanks to repay the principal and interest on consolidated obligations for which it is the primary obligor and with respect to which FHLBank has joint and several liability; the volume and quality of eligible mortgage loans originated and sold by participating members to FHLBank through its various mortgage finance products; changes in the fair value and economic value of, impairment of, and risks associated with FHLBank's investments in mortgage loans and mortgage-backed securities or other assets and the related credit enhancement protections; changes in the value or liquidity of collateral underlying advances to FHLBank members or nonmember borrowers or collateral pledged by reverse repurchase and derivative counterparties; volatility of market prices, changes in interest rates and indices and the timing and volume of market activity, including the effects of these factors on amortization/accretion; gains/losses on derivatives or on trading investments and the ability to enter into effective derivative instruments on acceptable terms; changes in FHLBank's capital structure; FHLBank's ability to declare dividends or to pay dividends at rates consistent with past practices; the ability of FHLBank to keep pace with technological changes and the ability to develop and support technology and information systems, including the ability to manage cybersecurity risks and securely access the internet and internet-based systems and services, sufficient to effectively manage the risks of FHLBank's business; and the ability of FHLBank to attract and retain skilled individuals, including qualified executive officers. Additional risks that might cause FHLBank's results to differ from these forward-looking statements are provided in detail in FHLBank's filings with the SEC, which are available at www.sec.gov.

All forward-looking statements contained in this announcement are expressly qualified in their entirety by reference to this cautionary notice. The reader should not place undue reliance on such forward-looking statements, since the statements speak only as of the date that they are made, and FHLBank has no obligation and does not undertake publicly to update, revise or correct any forward-looking statement for any reason to reflect events or circumstances after the date of this announcement.

FHLBANK TOPEKA

Financial Highlights (unaudited)

Selected Financial Data (dollar amounts in thousands):

			09/30/2025			12/31/2024
Financial Position
Liquidity portfolio1			$	10,910,963		$	10,867,423
Investment securities			14,908,747			13,717,408
Advances			44,029,112			41,652,081
Mortgage loans held for portfolio, net			9,284,317			8,949,433
Total assets			79,872,254			75,900,980
Deposits			1,046,036			989,021
Consolidated obligations, net			74,106,526			70,281,553
Total liabilities			75,724,983			71,801,251
Total capital stock			2,555,364			2,631,605
Retained earnings			1,726,021			1,608,086
Total capital			4,147,271			4,099,729
Regulatory capital2			4,287,308			4,242,916

			Three Months Ended						Nine Months Ended
			09/30/2025			09/30/2024			09/30/2025			09/30/2024
Results of Operations
Interest income			$	948,082		$	1,092,928		$	2,780,635		$	3,142,441
Interest expense			816,368			957,617			2,376,678			2,733,031
Net interest income before loan loss provision (reversal)			131,714			135,311			403,957			409,410
Provision (reversal) for credit losses on mortgage loans			(850)			(78)			10			(1,141)
Net gains (losses) on trading securities			911			10,264			5,278			15,993
Net gains (losses) on derivatives			433			(10,404)			(4,591)			(198)
Other income			3,633			3,697			10,626			10,939
Other expenses			33,195			26,603			95,223			77,921
Income before assessments			104,346			112,343			320,037			359,364
AHP assessments			10,447			11,241			32,029			35,949
Net income			93,899			101,102			288,008			323,415
Weighted average dividend rate3			8.65%			8.90%			8.68%			8.82%

1 Includes interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold.

2 Regulatory capital is defined as the sum of FHLBank's permanent capital, plus the amounts paid in by its stockholders for Class A Common Stock; any general loss allowance, if consistent with GAAP and not established for specific assets; and other amounts from sources determined by the Federal Housing Finance Agency as available to absorb losses. Permanent capital is defined as the amount paid in for Class B Common Stock plus the amount of FHLBank's retained earnings, as determined in accordance with GAAP. Regulatory capital includes all capital stock subject to mandatory redemption that has been reclassified to a liability.

3 Weighted average dividend rates are dividends paid in cash and stock on both classes of stock divided by the average capital stock eligible for dividends.

Average Balances and Yields (dollar amounts in thousands):

			Three Months Ended												Nine Months Ended
			09/30/2025						09/30/2024						09/30/2025						09/30/2024
			Average Balance			Yield			Average Balance			Yield			Average Balance			Yield			Average Balance			Yield
Interest-earning assets:
Liquidity portfolio1			$	10,845,179		4.41		%	$	10,949,056		5.36		%	$	10,585,253		4.40		%	$	10,219,636		5.40		%
Investment securities2,3,4			14,850,910			4.86			13,889,757			6.05			14,481,214			5.08			13,586,514			6.05
Advances3,4			46,770,546			4.67			46,324,602			5.59			46,075,771			4.66			44,665,703			5.61
Mortgage loans5,6			9,249,358			4.05			8,828,912			3.75			9,116,497			4.02			8,613,299			3.66
Other interest-earning assets			35,000			1.98			35,217			2.01			35,916			2.07			35,219			2.03
Total earning assets			$	81,750,993		4.60		%	$	80,027,544		5.43		%	$	80,294,651		4.63		%	$	77,120,371		5.44		%
Interest-bearing liabilities:
Deposits			$	983,202		4.04		%	$	850,192		5.06		%	$	914,577		4.08		%	$	801,818		5.11		%
Consolidated obligations3,7			75,948,338			4.21			74,547,306			5.05			74,599,272			4.21			71,666,221			5.03
Other borrowings			47,623			3.65			44,783			3.28			46,153			3.50			44,195			3.18
Total interest-bearing liabilities			$	76,979,163		4.21		%	$	75,442,281		5.05		%	$	75,560,002		4.21		%	$	72,512,234		5.04		%
Net interest spread8						0.39		%				0.38		%				0.42		%				0.40		%
Net interest margin8						0.64		%				0.67		%				0.67		%				0.71		%

1 Liquidity portfolio includes interest-bearing deposits, Federal funds sold and securities purchased under agreements to resell.

2 Investment securities include held-to-maturity securities, available-for-sale securities, and trading securities.

3 Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

4 Interest income includes prepayment/yield maintenance fees.

5 Credit enhancement fee payments are netted against interest earnings on the mortgage loans.

6 Mortgage loans average balances include outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

7 Consolidated obligations are bonds and discount notes that FHLBank is primarily liable to repay.

8 Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. Net interest margin is defined as net interest income as a percentage of average earning assets.