MANAGEMENT OVERVIEW
August 31, 2026
Balance Sheet
Assets: Total assets were approximately $1.04 billion as of August 2026 consisting of cash, U.S. Treasury securities, and associated interest receivable.
Liabilities: Total liabilities for August were nearly $39 million, inclusive of $30.9 million in member deposits, $6.0 million of accrued capital dividends and Liquidity Reserve and Clearing account interest, accounts payable of $0.3 million, and other liabilities of $1.7 million for stock redemption payable.
Capital Stock: Capital stock shares were unchanged from the prior month, remaining at $954.9 million in August 2026.
Equity: As of August 31, 2026, about $1.6 million has been added to current calendar year retained earnings.
Statements of Revenues, Expenses, and Changes in Fund Balance
Investment Income: Investment earnings for the month totaled about $3.4 million. The current month's average yield of 3.84% is higher than prior month's average yield.
Expense: Operating expenses for the month were approximately $97,000.
Net Income: Monthly net income before dividends rose slightly from $3.17 million in July to $3.19 million in August primarily due to higher investment earnings.
Dividends: Dividend expense for the month was $2.9 million.
Borrowing Authority, Investment Activity, Membership and Loans
Borrowing Authority: As of August 31, 2026, the CLF's statutory borrowing authority was $23.5 billion.
Investment Purchases: $100,000,000.
Maturities of Treasury Notes: $16,500,000.
Outstanding Investments (Treasury securities listed at carrying amount): U.S. Treasury Bills and Notes $996,363,320 and U.S. Treasury Cash $42,273,164.
Regular Membership: 452. Agent Membership: 0.
Loans: $0. Borrowing Activity: $0.
BALANCE SHEETS
As of August 31, 2026 and August 31, 2025 (Dollars in thousands)
| ASSETS | August 2026 | August 2025 |
|---|---|---|
| Cash and Cash Equivalents | $42,273 | $200,581 |
| Investments, Net U.S. Treasury Securities | 996,363 | 803,461 |
| Accrued Interest Receivable | 5,258 | 3,397 |
| TOTAL ASSETS | $1,043,894 | $1,007,439 |
| LIABILITIES | August 2026 | August 2025 |
|---|---|---|
| Accounts Payable | $286 | $584 |
| Dividends and Interest Payable | 6,035 | 5,906 |
| Member Deposits | 30,861 | 27,520 |
| Other Liabilities | 1,713 | 33,278 |
| TOTAL LIABILITIES | $38,895 | $67,288 |
| MEMBERS' EQUITY | August 2026 | August 2025 |
|---|---|---|
| Capital Stock Regular Members | $954,856 | $892,204 |
| Retained Earnings Prior Year | 48,557 | 45,009 |
| Retained Earnings Current Year | 1,586 | 2,938 |
| TOTAL MEMBERS' EQUITY | $1,004,999 | $940,151 |
| TOTAL LIABILITIES AND EQUITY | $1,043,894 | $1,007,439 |
STATEMENTS OF OPERATIONS
For the Periods Ended August 31, 2026 and August 31, 2025 (Dollars in thousands)
| REVENUES | August 2026 | Year-to-Date August 2026 | Year-to-Date August 2025 |
|---|---|---|---|
| Investment Income | $3,382 | $25,380 | $27,069 |
| Total Revenues | 3,382 | 25,380 | 27,069 |
| EXPENSES | August 2026 | Year-to-Date August 2026 | Year-to-Date August 2025 |
|---|---|---|---|
| Employee Wages and Benefits, Net | 67 | 590 | 1,055 |
| Rent, Communications, and Utilities | 2 | 17 | 24 |
| Other General and Administrative Expenses | 28 | 126 | 180 |
| Total Operating Expenses | 97 | 733 | 1,259 |
| Interest - Member Deposits | 94 | 757 | 762 |
| Total Expenses | 191 | 1,490 | 2,021 |
| NET INCOME BEFORE DIVIDENDS | 3,191 | 23,890 | 25,048 |
| Dividends | 2,923 | 22,304 | 22,110 |
| NET AMOUNT AFTER DIVIDENDS | 268 | 1,586 | 2,938 |
DIVIDENDS, RATIOS AND SHARES OUTSTANDING
| DIVIDEND RATES | 2026 | 2025 | 2024 |
|---|---|---|---|
| Dividend Rate First Quarter | 3.60% | 3.65% | 4.54% |
| Dividend Rate Second Quarter | 3.60% | 3.65% | 4.56% |
| Dividend Rate Third Quarter | 3.65% | 4.46% | |
| Dividend Rate Fourth Quarter | 3.65% | 3.90% |
| SELECTED RATIOS | 8/31/2026 | 8/31/2025 |
|---|---|---|
| Stock & Retained Earnings/Total Assets | 96.27% | 93.32% |
| Loans/Total Assets | 0.00% | 0.00% |
| Loans/Stock & Retained Earnings | 0.00% | 0.00% |
| Total Liabilities/Stock & Retained Earnings | 3.87% | 7.16% |
| SELECTED RATIOS | 8/31/2026 Month | 8/31/2026 YTD | 8/31/2025 YTD |
|---|---|---|---|
| Annualized Operating Expenses/Average Total Assets | 0.11% | 0.11% | 0.19% |
| Total Operating Expenses/Total Revenue | 2.85% | 2.89% | 4.65% |
| Net Income(before Divds)/Total Revenue | 94.36% | 94.13% | 92.53% |
| Loan Income/Total Revenue | 0.00% | 0.00% | 0.00% |
CAPITAL STOCK: Required ($50 par value; authorized: 38,194,258 shares; issued and outstanding: 19,097,129 shares)
The balances in the statement above are preliminary and unaudited.
The information in the supplement above are preliminary and unaudited.