Thu, May 8, 4:21 PM (9 days ago)
**Federal Home Loan Bank of Chicago (FHLBC) - Q1 2025 Financial Performance** **Financial Health and Performance Metrics:** - **Revenue:** Interest income decreased to $1,488 million from $1,775 million in Q1 2024, primarily due to lower market interest rates. Net interest income after provision for credit losses was $237 million, down from $247 million. - **Profit Margins:** Net income was $158 million, a decrease of $24 million compared to Q1 2024, driven by declining interest rates and increased noninterest expenses. - **Cash Flow:** Net cash provided by (used in) operating activities was $(315) million, contrasting with $786 million in Q1 2024. Investing activities provided $3,917 million, while financing activities used $(3,611) million. **Earnings Changes and Quarterly Performance:** - **Net Interest Income:** Decreased due to lower market interest rates and reduced volume in advances and securities. - **Noninterest Income:** Decreased to $19 million from $24 million, primarily due to losses from derivatives and hedging activities. - **Noninterest Expense:** Increased to $80 million from $69 million, driven by higher contributions to housing and community development initiatives. **Trends and Uncertainties:** - **Advances:** Remained stable at $56.0 billion, with new acquisition volume outpacing paydown activity. - **MPF Loans:** Increased to $13.5 billion, driven by new acquisitions. - **Investment Debt Securities:** Increased to $30.3 billion, primarily due to investments in U.S. Treasuries. - **Liquidity:** Decreased to $25.6 billion, with the bank maintaining sufficient liquidity to support member demand. - **Total Assets:** Decreased to $126.1 billion, primarily due to a reduction in the liquidity portfolio. **Future Operations Impact:** - **Dividends:** The bank declared a 9.25% dividend for Class B1 activity stock and a 4.35% dividend for Class B2 membership stock, totaling $72 million. - **Community Investment:** Allocated $52 million for the 2025 Affordable Housing Program and $46 million for the Downpayment Plus grant programs. - **Regulatory Compliance:** Remained in compliance with all regulatory capital requirements. **Ticker:** FHLBC