DES MOINES, Iowa, Feb. 16, 2024 (GLOBE NEWSWIRE) —
Fourth Quarter 2023 Financial Highlights
Net income of $256 million
Affordable Housing Program (AHP) assessments of $28 million
Advances totaled $122.5 billion
Mortgage loans held for portfolio, net totaled $10.0 billion
Letters of credit totaled $9.4 billion
Retained earnings totaled $3.1 billion
Capital Stock Requirement Changes
Effective December 15, 2023, the Federal Home Loan Bank of Des Moines (the Bank) reduced its membership stock requirement from 0.12 percent to 0.06 percent of a member’s total assets, with no change to the cap of $10 million and floor of $10,000. In addition, the Bank increased its activity stock requirement on advances from 4.00 percent to 4.50 percent.
Dividend
The Board of Directors approved a fourth quarter 2023 dividend to be paid at an annualized rate of 9.00 percent on average activity-based stock, an increase of 0.50 percent from the prior quarter, and 3.55 percent on average membership stock, an increase of 0.55 percent from the prior quarter. Dividend payments totaling $136 million are expected to be paid on February 23, 2024.
Affordable Housing and Community Impact
During the fourth quarter of 2023, the Bank disbursed $14 million of AHP funds through its Competitive and Set-Aside down payment assistance programs as a part of its ongoing mission to support members’ affordable housing and community development needs. The Bank also recorded various discretionary community and housing contributions during the fourth quarter of 2023, including a $25 million contribution to its Member Impact Fund, a discretionary program in which the Bank matches member donations to local housing and community development organizations, and a $5 million voluntary AHP contribution.
2023 Financial Results Discussion
Net Income – The Bank recorded net income of $962 million in 2023 compared to $430 million in the prior year.
Net Interest Income – The Bank recorded net interest income of $1.3 billion in 2023, an increase of $0.6 billion when compared to the prior year, primarily driven by higher short-term interest rates, which improved earnings on invested capital, and growth in advance balances.
Other Income (Loss) – The Bank recorded other losses of $15 million in 2023, an improvement of $25 million when compared to the prior year, primarily driven by changes in the fair value of the Bank’s trading securities, fair value option instruments, economic derivatives, and non-qualified benefit plan assets.
Other Expense – The Bank recorded other expense of $221 million, an increase of $60 million when compared to the prior year, primarily due to an increase in discretionary community and housing contributions of $44 million.
Assets – The Bank’s total assets increased to $184.4 billion at December 31, 2023, from $164.2 billion at December 31, 2022, driven primarily by an increase in advances and investments. Advances increased $11.3 billion due mainly to an increase in borrowings by large depository institution members. Investments increased $6.4 billion primarily driven by the purchase of agency mortgage-backed securities, partially offset by a decline in short-term investments, specifically federal funds sold and securities purchased under agreements to resell. In addition, mortgage loans increased $1.6 billion due to new loan purchases exceeding paydowns.
Capital – Total capital increased to $9.8 billion at December 31, 2023, from $8.8 billion at December 31, 2022, primarily due to an increase in activity-based capital stock resulting from an increase in advance balances, and an increase in retained earnings.
Federal Home Loan Bank of Des Moines
Financial Highlights
(preliminary and unaudited)
Dollars in millions
Selected Balance Sheet Items
December 31,
2023
December 31,
2022
Investments
$
49,828
$
43,381
Advances
122,530
111,202
Mortgage loans held for portfolio, net
9,967
8,348
Total assets
184,406
164,169
Consolidated obligations
171,498
153,507
Capital stock – Class B putable
6,873
6,250
Retained earnings
3,138
2,618
Total capital
9,831
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