FHLBank Chicago Reports 5% Net Income Growth in 2025, Driven by Lower Expenses and Asset Growth
Event summary
- Net income rose to $654 million in 2025, up from $620 million in 2024, driven by lower noninterest expenses.
- Total assets increased by 9% to $141.2 billion, primarily due to higher advances and investment debt securities.
- Advances outstanding grew by 9% to $61.1 billion, with increased borrowings from insurance company and depository members.
- Mortgage loans held through the MPF Program increased by 11% to $14.7 billion.
- FHLBank Chicago contributed $60 million to affordable housing and community investment grants and subsidies in 2025.
The big picture
FHLBank Chicago's 2025 results reflect its role as a key liquidity provider in the regional housing finance ecosystem. The bank's cooperative model continues to attract members seeking reliable funding, particularly in Illinois and Wisconsin. However, its performance is increasingly tied to broader economic trends, including inflation and recession risks, which could pressure its net interest margins.
What we're watching
- Liquidity Demand
- How sustained demand for advances from insurance and depository members will impact FHLBank Chicago's liquidity positioning.
- Regulatory Compliance
- Whether FHLBank Chicago can maintain its affordable housing contributions amid potential regulatory changes.
- Market Conditions
- The pace at which rising interest rates and economic instability could affect the bank's net interest income.
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