FHLBANK TOPEKA ANNOUNCES 2026 FIRST QUARTER RESULTS (Form 8-K)

FHLBANK TOPEKA ANNOUNCES 2026 FIRST QUARTER RESULTS

April 23, 2026 - Federal Home Loan Bank of Topeka (FHLBank) announced unaudited financial results for the quarter ended March 31, 2026. All measures are calculated in accordance with U.S. generally accepted accounting principles (GAAP).

FHLBank expects to file its Form 10-Q for the quarter ended March 31, 2026 with the Securities and Exchange Commission (SEC) on or about May 7, 2026.

Performance Highlights

•Total Assets: Total assets increased to $81.3 billion driven by a $3.6 billion increase in advances.

•Primary Mission Assets: The Primary Mission Asset ratio measures year-to-date average advances and mortgage loans relative to consolidated obligations (excluding certain U.S. Treasury securities). The ratio was 77 percent at both March 31, 2026 and December 31, 2025.

•Advances: Advances increased to $47.3 billion driven by increased utilization among large depository and insurance company members, with the majority of the growth in adjustable and line of credit products. Advances represented 58.2 percent of total assets, compared to 56.3 percent at prior year end.

•Mortgage loans: Mortgage loans increased slightly to $9.4 billion, representing 11.6 percent of total assets, compared to 12.1 percent at prior year end.

•Investment securities: Investment securities increased to $15.1 billion, driven by purchases of multifamily mortgage-backed securities. Investment securities represented 18.5 percent of total assets compared to 19.1 percent at prior year end.

•Net Income: Net income was relatively flat year over year despite the increase in assets, decreasing $0.9 million to $98.4 million for the quarter ended March 31, 2026 compared to $99.3 million for the prior year quarter.

•Net interest income/margin: Net interest income was $132.5 million for the quarter ended March 31, 2026, $0.2 million lower than the prior year quarter. The decline in net interest income was driven by the impact of lower short-term interest rates on fair value hedges and variable rate instruments, almost entirely offset by higher average balances of interest-earning assets. Net interest margin decreased three basis points to 0.66 percent for the quarter, while net interest spread remained unchanged at 0.44 percent between quarterly periods. The margin decline reflects the increase in lower-spread assets during the quarter.

•Performance ratios: Return on average equity decreased to 9.1 percent for the current quarter compared to 9.9 percent for the prior year quarter. The decrease reflects lower net income and higher average balance of capital stock resulting from increased advance utilization.

Housing and Community Development Programs

FHLBank's housing and community development programs are central to its mission to make a difference by providing reliable liquidity and funding to help its members build strong communities. The success of the FHLBank cooperative means more funding to support members in these community-building initiatives. FHLBank is subject to a regulatory assessment that commits 10 percent of its net income before assessments to funding affordable housing initiatives in FHLBank's district. In 2026, the $42.2 million regulatory assessment from the prior year will be contributed to FHLBank's Affordable Housing Program (AHP). FHLBank has voluntarily committed an additional $25.5 million, or five percent of its 2025 net income before assessments and voluntary contributions, to support housing and community development programs. In partnership with our members, FHLBank will support and sustain affordable housing and community lending through programs designed to address housing challenges within the unique footprint of FHLBank's district through the commitment or distribution of $67.7 million.

Financial Highlights

Attached are highlights of FHLBank's financial position as of March 31, 2026 and December 31, 2025, and results of operations for the quarterly periods ended March 31, 2026 and 2025.

The information contained in this announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements describing the objectives, projections, estimates or future predictions of FHLBank's operations. These statements may be identified by the use of forward-looking terminology such as "anticipates," "believes," "may," "is likely," "could," "estimate," "expect," "will," "intend," "probable," "project," "should" or their negatives or other variations on these terms. FHLBank cautions that by their nature forward-looking statements involve risks or uncertainties and that actual results may differ materially from those expressed in any forward-looking statements as a result of such risks and uncertainties, including but not limited to: changes in the general economy, political events, including legislative, regulatory, and judicial events and actions that affect FHLBank, its members, counterparties, other FHLBanks or investors in the consolidated obligations of the FHLBanks, such as any government-sponsored enterprise (GSE) reforms, any changes resulting from FHFA's review and analysis of the FHLBank System, changes in the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), changes in applicable sections of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, or changes in other statutes or regulations applicable to the FHLBanks, natural disasters, including those related to climate change, severe weather, public health crises, acts of war or terrorism or other external events, governmental responses to an economic downturn, recession, inflation or other macro-level events or conditions, the uncertain, complex body of laws and regulations applicable to the FHLBanks, competition from alternative loan and funding providers, membership changes, including changes resulting from member creditworthiness, member failures or mergers, changes due to member eligibility or housing mission focus, or changes in the principal place of business of members, a high concentration of advances and capital with a few members, changes in credit ratings of FHLBank Topeka, the other FHLBanks and the U.S. government, joint and several liability of all or a portion of the consolidated obligations for which one or more of the other FHLBanks are the primary obligors, declines in U.S. home prices or weaknesses in activity in the U.S. housing and mortgage markets undermining the need for wholesale funding, thus impairing the volume and quality of mortgage loans originated and sold by members, defaults by, and the soundness of financial institutions, including clearinghouses, FHLBank members, non-member borrowers, counterparties and the other FHLBanks and their members, non-member borrowers and counterparties, changes in the fair value and economic value of pledged collateral securing advances or other extensions of credit to FHLBank members or non-member borrowers or collateral pledged by reverse repurchase and derivative counterparties, interruptions in FHLBank's access to the capital markets, changes and volatility in interest rates and indices and FHLBank's ability to manage interest rate risk, the ability to enter into effective derivative instruments on acceptable terms, FHLBank's ability to meet obligations as they come due or meet the credit and liquidity needs of our members in a timely and cost-effective manner, FHLBank's ability to declare dividends or to pay dividends at rates consistent with past practices, the lack of a public market and restrictions on transferring our capital stock and associated illiquidity, volatile market conditions impairing the ability of FHLBank's financial models to produce reliable results, reliance on counterparties and third-parties to provide accurate and complete information, potential costs and effects of litigation, regulatory actions, investigations or similar matters, or adverse facts and developments related thereto, the ability of FHLBank to keep pace with technological changes and innovation such as artificial intelligence (AI), and the ability to develop and support technology and information systems, cybersecurity threats, cybersecurity risk management and FHLBank's ability to respond to cybersecurity incidents, judgments, assumptions and estimates in the preparation of our financial statements, effectiveness of FHLBank's risk management framework in mitigating risks of losses, effectiveness of FHLBank's internal control over financial reporting to report accurate and timely financial results, employee error and member, employee and third-party misconduct, fraudulent activity, third-party service providers fail to provide services, terminate their services or fail to comply with banking regulations, the ability of FHLBank to attract, onboard and retain skilled individuals, including qualified executive officers, and reliance on FHLBank Chicago as Mortgage Partnership Finance® (MPF®) Program Provider. "Mortgage Partnership Finance," "MPF," "MPF Xtra," and "MPF Direct" are registered trademarks of FHLBank Chicago.

Additional risks that might cause FHLBank's results to differ from these forward-looking statements are provided in detail in FHLBank's filings with the SEC, which are available at www.sec.gov.

All forward-looking statements contained in this announcement are expressly qualified in their entirety by reference to this cautionary notice. The reader should not place undue reliance on such forward-looking statements, since the statements speak only as of the date that they are made, and FHLBank has no obligation and does not undertake publicly to update, revise or correct any forward-looking statement for any reason to reflect events or circumstances after the date of this announcement.

FHLBANK TOPEKA

Financial Highlights (unaudited)

Selected Financial Data (dollar amounts in thousands):

			03/31/2026			12/31/2025			Change
Financial Position
Liquidity portfolio1			$	8,736,707		$	8,910,137		(1.9)		%
Investment securities			15,055,808			14,834,298			1.5		%
Advances			47,314,100			43,667,540			8.4		%
Mortgage loans held for portfolio, net			9,423,774			9,351,305			0.8		%
Total Assets			81,254,233			77,505,029			4.8		%
Deposits			1,410,778			909,553			55.1		%
Consolidated obligations, net			74,893,362			71,857,035			4.2		%
Total Liabilities			76,826,416			73,317,391			4.8		%
Total Capital Stock			2,713,586			2,510,362			8.1		%
Retained earnings			1,806,347			1,763,624			2.4		%
Total Capital			4,427,817			4,187,638			5.7		%
Primary Mission Asset ratio			77		%	77		%	-		%

			Three Months Ended
			03/31/2026			03/31/2025			Change
Results of Operations
Net interest income			$	132,492		$	132,727		(0.2)		%
Other income			4,496			3,520			27.7		%
Other expenses			27,651			25,916			6.7		%
Income before assessments			109,337			110,331			(0.9)		%
AHP assessments			10,945			11,039			(0.9)		%
Net income			98,392			99,292			(0.9)		%
Net interest margin			0.66		%	0.69		%	(0.03)		%
Return on average equity			9.12		%	9.86		%	(0.74)		%
Weighted average dividend rate2			8.57		%	8.81		%	(0.24)		%
Average SOFR			3.66		%	4.33		%	(0.67)		%

1 Includes interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold.

2 Weighted average dividend rates are dividends paid in cash and stock on both classes of stock divided by the average capital stock eligible for dividends.

Average Balances and Yields (dollar amounts in thousands):

			Three Months Ended
			03/31/2026						03/31/2025
			Average Balance			Yield			Average Balance			Yield
Interest-earning assets:
Liquidity portfolio1			$	10,935,088		3.70		%	$	10,429,484		4.40		%
Investment securities2,3,4			14,953,314			4.50			14,174,509			5.21
Advances3,4			46,594,106			4.02			44,182,977			4.66
Mortgage loans5,6			9,373,695			4.20			8,982,286			4.00
Other interest-earning assets			35,000			2.03			37,778			2.20
Total earning assets			$	81,891,203		4.08		%	$	77,807,034		4.65		%
Interest-bearing liabilities:
Deposits			$	1,164,279		3.38		%	$	867,812		4.11		%
Consolidated obligations3,7			75,841,949			3.65			72,256,099			4.21
Other borrowings			53,593			3.72			45,750			3.47
Total interest-bearing liabilities			$	77,059,821		3.64		%	$	73,169,661		4.21		%
Net interest spread8						0.44		%				0.44		%
Net interest margin8						0.66		%				0.69		%

1 Liquidity portfolio includes interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold.

2 Investment securities include held-to-maturity securities, available-for-sale securities, and trading securities.

3 Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

4 Interest income includes prepayment/yield maintenance fees.

5 Credit enhancement fee payments are netted against interest earnings on the mortgage loans.

6 Mortgage loans average balances include outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

7 Consolidated obligations are bonds and discount notes that FHLBank is primarily liable to repay.

8 Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. Net interest margin is defined as net interest income as a percentage of average earning assets.