Fri, May 9, 5:00 PM (13 days ago)
**FEDERAL HOME LOAN BANK OF DES MOINES (FHLBDM) - Q1 2025 Financial Performance Summary** **Ticker:** FHLBDM **Q1 2025 Financial Health:** - **Revenue:** $2.01 billion (down from $2.64 billion in Q1 2024) - **Profit Margins:** Net income of $205 million (down from $274 million in Q1 2024) - **Cash Flow:** Operating activities provided $1.47 billion (down from $754 million in Q1 2024) - **Earnings Changes:** Net interest income decreased by $101 million due to lower yields on interest-earning assets and changes in interest rates. **Q1 2025 Performance Metrics:** - **Total Assets:** $167.5 billion (up from $165.3 billion in Q4 2024) - **Total Liabilities:** $158.1 billion (up from $155.8 billion in Q4 2024) - **Total Capital:** $9.3 billion (down from $9.5 billion in Q4 2024) - **Regulatory Capital Ratio:** 5.55% (down from 5.74% in Q4 2024) **Trends and Uncertainties:** - **Interest Rate Environment:** The FOMC maintained the target range for the federal funds rate at 4.25 to 4.50%, impacting the bank's net interest income. - **Mortgage Market:** Higher mortgage rates led to increased home purchases but lower prepayment activity. - **Liquidity and Capital:** The bank remains focused on maintaining adequate liquidity and capital to meet regulatory requirements and support member activities. **Future Operations Impact:** - **Hedging Activities:** The bank uses derivatives to manage interest rate risk, which may impact income statement volatility. - **Credit Risk:** The bank monitors credit risk from advances, mortgage loans, and investments, with no significant credit losses reported. - **Regulatory Environment:** Changes in the regulatory environment may affect the bank's operations and results. **Conclusion:** FHLBDM faced challenges in Q1 2025 due to a declining interest rate environment and higher mortgage rates. However, the bank remains focused on maintaining liquidity, managing risk, and complying with regulatory requirements. The future outlook depends on the bank's ability to adapt to changing market conditions and regulatory developments.