Federal Home Loan Bank of Cincinnati

The Federal Home Loan Bank of Cincinnati (FHLB) reported total assets of $129.41B as of December 31, 2025, down from $132.33B in 2024, primarily due to a $9.20B reduction in advances to $70.14B and lower consolidated obligations. Net income for FY 2025 was $575.0M, a 5.5% decline from $608.3M in 2024, driven by lower net interest income of $768.5M (down from $799.8M) amid reduced interest income on advances ($3.69B vs. $4.16B) and higher non-interest expenses ($162.0M vs. $159.7M). Key drivers included net cash used in operating activities of $66.3M, offset by $3.52B provided by investing activities from net advances repayment. Capital stood at $6.54B, with retained earnings at $1.99B. The bank maintained strong liquidity with $21.49B in short-term investments (cash, deposits, resells, federal funds). No credit losses recorded on advances or securities, reflecting robust collateralization. Forward significance lies in stable funding via $120.77B consolidated obligations and focus on member advances and mortgage purchases amid interest rate management via derivatives.

Key Takeaways