Federal Home Loan Bank of Cincinnati Reports Strong Third Quarter 2024 Results, Boosting Affordable Housing and Community Investments
The Federal Home Loan Bank of Cincinnati (FHLB) today announced impressive unaudited financial results for the third quarter ended September 30, 2024. These results highlight the FHLB’s ongoing commitment to its dual mission of providing crucial liquidity funding to its member financial institutions while significantly expanding support for affordable housing and community development.
Significant Growth in Affordable Housing and Community Investments
Throughout the first nine months of 2024, the FHLB has demonstrated its unwavering dedication to making a tangible difference in the communities it serves. The FHLB’s commitment to affordable housing is evident in its remarkable $89 million contribution to support these critical needs in the first nine months of 2024. This figure encompasses $51 million allocated to the mandatory Affordable Housing Program (AHP) and an additional $38 million provided through the FHLB’s voluntary housing programs. The FHLB’s proactive approach to exceeding its statutory AHP obligations is noteworthy, with a voluntary commitment to increase support by at least 50 percent above the required level for 2024.
Strong Financial Performance Underpins Continued Growth
The FHLB’s strong financial performance provides the foundation for its expanded community investments. For the third quarter, net income reached $164 million, with a return on average equity (ROE) of 10.01 percent. While these figures represent a slight decrease compared to the same period in 2023, the FHLB’s overall financial health remains robust. Over the first nine months of 2024, net income totaled $454 million, with an ROE of 9.46 percent. The decrease in net income, both quarterly and year-to-date, can be attributed to factors such as lower spreads earned on mortgage loans held for portfolio and the increased voluntary housing contributions outlined above.
Key Financial Highlights:
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Total assets at September 30, 2024
reached $127.8 billion, representing a three percent increase from year-end 2023.*
Mission Assets and Activities
, which encompass core products offered to members, including Advances, Letters of Credit, and the Mortgage Purchase Program, totaled $134.8 billion at September 30, 2024. This reflects a five percent increase from year-end 2023, driven primarily by a surge in demand for liquidity.*
Total investments
at September 30, 2024 amounted to $39.8 billion, a seven percent decrease from year-end 2023. This decline was primarily driven by a reduction in liquidity investments.*
GAAP capital
reached $6.6 billion at September 30, 2024, an increase of three percent from year-end 2023. The FHLB exceeded all minimum regulatory capital and liquidity requirements.*
Retained earnings
stood at $1.8 billion at September 30, 2024, representing an eight percent increase from year-end 2023.Continued Support for Affordable Housing and Community Development
The FHLB’s commitment to affordable housing extends beyond its mandatory AHP obligations. The Board of Directors has approved total minimum voluntary housing contributions of $42 million for 2024, with $38 million contributed in the first nine months of the year. These funds are allocated to various initiatives, including the Carol M. Peterson (CMP) Housing Fund, the Welcome Home program, the Rise Up program, and the Disaster Reconstruction Program. These programs provide vital support for homebuyers, homeowners, and communities in need.
Looking Ahead
The FHLB’s strong financial performance and commitment to affordable housing and community development position it for continued success in the coming quarters. The FHLB is poised to continue playing a vital role in supporting its member financial institutions and making a positive impact on the communities it serves.
About the Federal Home Loan Bank of Cincinnati
The Federal Home Loan Bank of Cincinnati (FHLB) is a AA+ rated wholesale cooperative bank owned by 607 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies, and community development financial institutions in Kentucky, Ohio, and Tennessee. The FHLB provides its members with access to various products and services, including Advances, Letters of Credit, and the Mortgage Purchase Program, and offers a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services through private-sector capital raised from member-stockholders and, in collaboration with other Federal Home Loan Banks (FHLBanks) in the FHLBank System, by issuing high-quality debt in the global capital markets. The FHLB is dedicated to supporting its members and promoting community economic development through its robust community investment programs.
