The 11 Federal Home Loan Banks were all profitable in 2025, and their retained earnings balance of $32.7 billion was the largest on record, the Federal Housing Finance Agency said in its annual report to Congress.
The report summarized the financial condition of the organizations under its jurisdiction, including the FHLBs, Fannie Mae and Freddie Mac. Among its findings:
- The FHLB system’s total assets were $1.25 trillion at the end of 2025, down from $1.28 trillion at year-end 2024. The FHLBs reported aggregate net income of $5.7 billion in 2025, down from $6.4 billion the year before. The FHLBs remained adequately capitalized throughout 2025, and at year-end they held the highest retained earnings balance in their history.
- Fannie Mae reported annual net income of $14.4 billion in 2025, compared to $17 billion in 2024. Pre-tax earnings were $3.3 billion lower year-over-year, with $1.8 billion attributable to an increase in the provision for credit losses and $1.5 billion resulting from a decrease in noninterest income. Total assets decreased 0.7%, primarily due to a reduction in mortgage securities investments.
- Freddie Mac reported annual net income of $10.7 billion in 2025, compared to $11.9 billion in 2024. Pre-tax earnings were $1.4 billion lower year-over-year on a $2.3 billion reduction in investment gains and an $800 million increase in the provision for credit losses. Those losses were partially offset by a $1.7 billion increase in net interest income. Freddie Mac’s total assets increased 3.3% in 2025, similar to the 3.2% increase in 2024.
