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FOR IMMEDIATE RELEASE

Office of Finance Announces the Federal Home Loan Banks 2006 Preliminary Combined Operating Highlights

The FHLBanks Office of Finance is pleased to announce 2006 preliminary combined operating highlights for the Federal Home Loan Banks. These highlights have been prepared from unaudited 2006 financial information of each FHLBank and are subject to change. As all twelve FHLBanks have effective SEC registration statements, current individual financial reports and other SEC filings can be obtained by searching the SEC EDGAR database.

Balance Sheet Highlights: Combined total assets increased to $1.02 trillion at December 31, 2006 compared with $997 billion at the close of 2005. Advances (secured loans to members) increased 3% to $641 billion and represented 63% of total assets. Investments rose 2% to $271 billion, and member mortgage assets, at $98 billion, were down 7% from the prior year-end. The principal investments of the FHLBanks are mortgage-backed securities, overnight and term Federal funds sold, commercial paper and GSE securities.

Operating and Capital Results: Combined net income for 2006 increased approximately 3% to $2.6 billion, compared with $2.5 billion for 2005. Total combined capital rose to $45 billion at year-end 2006, a 1% increase from year-end 2005. FHLBank Affordable Housing Program contributions were approximately $295 million in 2006, up from $282 million in 2005, due to the increase in earnings.

Return to Scheduled Combined Financial Reporting: As of August 8, 2006, all twelve FHLBank SEC registrations were effective, and their periodic and current reports may be found on the SEC EDGAR database. The Office of Finance expects to publish the 2006 Combined Financial Report on March 30, 2007, which will mark a return to timely combined financial reporting.

About the FHLBanks: The primary purpose of the FHLBanks is to ensure the flow of credit and other services for housing and community development to member financial institutions. This liquidity serves the public by enhancing the availability of residential mortgage and community investment funds. As cooperatives, the FHLBanks seek to maintain a balance between their public policy mission and their obligation to provide adequate returns on the capital supplied by members. The FHLBanks achieve this balance by delivering low-cost financing, and providing members a viable alternative to the secondary mortgage market via the mortgage programs, while paying a dividend. The FHLBanks also help members with other local housing and community development needs through self-funded affordable housing programs.

The FHLBanks have delivered nearly 75 years of innovation and service to the U.S. housing market, and currently have over 8,100 members in all 50 states, the District of Columbia, American Samoa, Guam, Puerto Rico, and the Northern Mariana and U.S. Virgin Islands. Please contact Mike Ciota at 703-467-3608 (ciota@fhlb-of.com) for additional information.