November 2014

Debt Investor Update

2

FORWARD-LOOKING STATEMENTS

Statements contained in this presentation may be “forward-looking statements,” including statements describing the objectives, projections, estimates, or future predictions of the FHLBanks and Office of Finance. These statements may use forward-looking terminology, such as “anticipates,” “believes,” “could,” “estimates,” “may,” “should,” “will,” or their negatives or other variations on these terms. Investors should note that, by their nature, forward-looking statements involve risks or uncertainties. Therefore, the actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized.

These forward-looking statements involve risks and uncertainties including, but not limited to, the following: changes in the general economy, employment rates, housing market activity and housing prices, and the size and volatility of the residential mortgage market; volatility of market prices, interest rates, and indices or other factors that could affect the value of investments or collateral held by the FHLBanks resulting from the effects of, and changes in, various monetary or fiscal policies and regulations, including those determined by the Federal Reserve Board and the FDIC, or a decline in liquidity in the financial markets; political events, including legislative, regulatory, judicial, or other developments that affect the FHLBanks, their members, counterparties or investors in the consolidated obligations of the FHLBanks, including changes in the FHLBank Act, housing GSE reform, Finance Agency actions or regulations that affect FHLBank operations, and regulatory oversight; competitive forces, including other sources of funding available to FHLBank members, and other entities borrowing funds in the capital markets; demand for FHLBank advances resulting from changes in FHLBank members’ deposit flows and credit demands; loss of large members and repayment of advances made to those members due to institutional failures, mergers, consolidations, or withdrawals from membership; changes in domestic and foreign investor demand for consolidated obligations or the terms of interest-rate exchange agreements and similar agreements, including changes in the relative attractiveness of consolidated obligations as compared to other investment opportunities and changes resulting from any modification of credit ratings; the availability, from acceptable counterparties, of derivative financial instruments of the types and in the quantities needed for risk management purposes; the ability to introduce new products and services and successfully manage the risks associated with those products and services, including new types of collateral used to secure advances; and the effect of new accounting guidance, including the development of supporting systems and related internal controls.

Investors are encouraged to consider these and other risks and uncertainties that are discussed in periodic combined financial reports and in reports filed by each FHLBank with the Securities and Exchange Commission. None of the FHLBanks or the Office of Finance undertakes any obligation to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, changed circumstances, or any other reason.

This is not an offer to sell. FHLBank debt is not an obligation of or guaranteed by the United States and may not be offered or sold in any jurisdiction requiring its registration. No recommendation is made concerning the securities described. Please refer to the offering documents before purchasing these securities.

This data has not been audited and has been prepared for informational purposes only. While it is believed to be correct, accuracy cannot be guaranteed.

3

The FHLBanks maintain issuance programs designed to meet changing investor needs, and continue to obtain a majority of fundingvia reverse inquiry.

FHLBanks are High-Quality, Low-Risk Housing GSEs

Solid Asset Quality

Dynamic Capital Base

Reverse Inquiry Issuance Model

The fully-collateralized lending model has shielded the FHLBanks from sustaining any credit losses on advances for over 80 years.

The flexible capital base is designed to expand and contract in response to members’ borrowing needs.

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FHLB System Overview

HAWAII

ALASKA

Atlanta

Cincinnati

Dallas

Des Moines

Indianapolis

PittsburghSan Francisco

Seattle

U.S. Territories

PuertoRicoVirginIslands

GuamAmerican Samoa

Topeka

Chicago

Boston

New York

The 12 FHLBanks are government-sponsored enterprises (GSEs) organized under an act of Congress (Federal Home Loan Bank Act of 1932)

FHLBanks serve the general public by providing readily available, low-cost funding to over 7,400 members, thereby increasing the availability of credit for residential mortgage lending and investment in housing and community development

FHLBanks fund their operations principally through the sale of debt securities through the Office of Finance

5

How the System Works

MembersInvestors

FHLBanks

Collateral

Advances

Debt Securities

Issuance Proceeds

IssuanceProceeds

All senior unsecured debt securities issued through

the Office of Finance (“Consolidated Obligations”) are the joint and several obligations of the entire FHLBank System.

Current ratings: S&P: AA+ / A-1+ / stable outlook Moody’s: Aaa / P-1 / stable outlook

Homeowners

Mortgage Lending & Community Investment

Investment Capital

Office of FinanceDealers

Debt Securities

The twelve regional FHLBanks are linked by:

A common mission to support housing A shared safety and soundness regulator

(FHFA) A shared responsibility to fully repay all

senior unsecured debt obligations

6

($ in billions) 2009 2010 2011 2012 2013 2Q14

Advances 631 479 418 426 499 537

Investments 284 330 271 266 243 263

Mortgage Loans Held for Portfolio(1) 71 61 53 50 45 43

Other 30 8 24 21 47 23

Total Assets 1,016 878 766 763 834 866

Retained Earnings 6.0 7.5 8.6 10.5 12.2 12.7

Total Capital (GAAP) 43 44 40 42.5 45 46

Regulatory Capital(2) 60 57 53 51 51 50

Regulatory Capital Ratio 5.92% 6.53% 6.91% 6.69% 6.06% 5.73%

Net Income 1.9 2.1 1.6 2.6 2.5 1.1(3)

Financial Highlights

Source: Historical Combined Financial Reports – subject to rounding

(1) MPF®/MPP

(2) The difference between total capital (GAAP) and regulatory capital relates primarily to accumulated other comprehensive income (loss), which is excluded from regulatory capital, and mandatorily redeemable capital stock, which is included in regulatory capital.

(3) YTD

7

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

0

10

20

30

40

50

60

70

0

100

200

300

400

500

600

700

800

900

A Self-Capitalizing ModelCapital Generally Tracks Advances Members are required to capitalize all

advances, typically at 4.0% to 5.0% of principal borrowed

FHLBanks typically repurchase capital stock once the associated advances have been repaid

Controlled Scalability: FHLBanks Have Ability to Hold Capital for up to 5 Years FHLBanks can manage the traditionally

variable capital base to preserve capital during periods of economic stress

Retained Earnings have grown over 300% since 2008 as the FHLBanks prudently strengthened this component of capital as a risk mitigant for both investors and members

Capital vs. Advances

Source: Historical Combined Financial Reports

FHFA regulation prohibits member stock redemption if it could result in FHLBank undercapitalization

($ in billions)

Regulatory Capital (right axis)

Retained Earnings (right axis)

Advances

8

Capital Preservation FHLBanks may voluntarily suspend or

eliminate dividends and/or early excess stock repurchases, and may increase the membership and/or activity-based stock requirements to preserve or create additional capital

FHFA-ordered prompt corrective action for undercapitalized FHLBanks may include:

Development and implementation of capital restoration plans, risk management controls, and/or placing limits on dividends and stock redemptions

Increasing capital requirements or temporary surcharges in excess of statutory or regulatory minimums

FHFA retains the ultimate authority to place any FHLBank into conservatorship, or merge FHLBanks

FHLBanks’ Joint Capital Enhancement Agreement will build retained earnings capital base

2009 2010 2011 2012 2013 2Q14

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Minimum Required Regulatory Capital Ratio Ratio Excess

5.92% 5.73%

Significantly

Undercapitalized

Undercapitalized

FHFA Capital

Classifications:

6.53%6.91%

6.69%

6.06%

Regulatory Capital Ratio Reflects Successful Preservation Efforts

Critically

Undercapitalized

Source: Historical Combined Financial Reports and subject to rounding

1.73% Ratio Excess

Equates to a $15 billion Regulatory

Capital Surplus at

2Q14

Regulatory Capital Ratio

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Collateral Securing Advances

Single-family mortgage

loans54%

Commercial real estate

loans17%

HEL/HELOC9%

Multifamily mortgage

loans8%

Agency MBS/CMO

5%

CMBS1%

Agency debt1% Private-label MBS/CMO

<1%

Other 5%

Type of Collateral Securing Advances and Other Credit Products Outstanding

Source: 2Q14 Combined Financial Report

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

420

618

1,033

1,843

Advances & Other Credit Oustanding Collateral Outstanding

2.5 Collateralization Ratio

3.0 Collateralization Ratio

Total Credit Exposure vs. Collateral Outstanding

At 2Q14, 78 Borrowers had Advances Outstanding of at Least $1 Billion, Representing $361 Billion, or Approximately 68% of Total Advances

($ in billions)

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A Full Range of Debt Products

FHLBanks Use Multiple Debt Programs and Issuance Methods

Programmatic calendar issuance of liquid “benchmark” size bullets

Reverse inquiry method utilized for callables, bullets, floaters, and structured notes

Auction method used to distribute bullet (TAP) and American option callable securities

Active window program with maturity and settlement flexibility

Globals

Medium-Term Notes (MTNs)

Discount Notes

Reverse Inquiry

Auction

Auction

Window

Twice weekly offerings of 1-, 2-, 3-, and 6- month maturities

Syndication

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Total Debt Outstanding

Source: FHLBanks Office of Finance – by settlement date – as of 10/31/14 and subject to rounding

Total Debt Outstanding Reflects Advance Demand from Members

2009 2010 2011 2012 2013 20140

100

200

300

400

500

600

700

800

900

1,000

631

479418 426

499545*

Globals Bullets/TAPs Floating Rate Notes Callable/Structured Discount Notes

932

692 688

767

Advances

806797

Debt Outstanding ---------------------------

Advances Outstanding

-320------------

-298

-135------------

-152

-105------------

-61

-4------------

8

79------------

73

39------------

46

YTD Net Change: ($ in billions)

($ in billions)

*At 9/30/14 – Preliminary and unaudited

12

Term Debt Issuance

Source: FHLBanks Office of Finance – by settlement date – as of 10/31/14 and subject to rounding

2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

39 20 14 13 12 10.5

168

129135 129

156 149

103

8230 65

64 47

196

302 230211

109 99

Globals Bullets/TAPs FRNs Callables/Structured

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

60%

65%

70%

75%

80%

85%

90%

95%

Reverse Inquiry as a % of Total Coupon Debt Issued

Issuance Mixture Reflects Shifts in Investor Preference

($ in billions)

Issuance is Flexible, Adaptable, & Investor-Driven

Gross Issuance: 505 533 409 418 341 306

13

Short-Term Debt

Source: FHLBanks Office of Finance – by settlement date – as of 10/31/14 and subject to rounding

Short-term Coupon Debt Issuance Short-term Debt* as a % of Total Outstanding

*All outstanding debt (incl DNs) with remaining maturity ≤ 397 days

Jan-

09

Jun-

09

Nov-0

9

Apr-1

0

Sep-1

0

Feb-1

1

Jul-1

1

Dec-1

1

May

-12

Oct-1

2

Mar

-13

Aug-1

3

Jan-

14

Jun-

1440%

45%

50%

55%

60%

65%

70%

75%

FHLBank Debt has Consistently Met Investors’ Needs for Safety and Liquidity

($ in billions)

2009 2010 2011 2012 2013 20140

50

100

150

200

250

300

0%

10%

20%

30%

40%

50%

60%

70%

11378

10780

128 120

34 90

74

25

2727

10380

29

65

6446

Bullets w/ Orig Mty ≤ 397 days

Callables/Structured w/ Orig Mty ≤ 397 days

Floaters w/ Orig Mty ≤ 730 days

% of Total Term Issuance (right axis)

14

Global Bond Program

Maturity, size, and dealer syndicate announced exclusively on predetermined dates

Issuance calendar available at www.fhlb-of.com

FHLBanks may issue one or more new Globals and/or one or more re-openings on announcement dates, or may forego issuance

2- through 3-year maturities are a minimum of $3 billion for new issues and $1 billion for re-openings

5- through 10-year maturities are a minimum of $2 billion for new issues and $500 million for re-openings

Source: FHLBanks Office of Finance – as of 10/31/14

Mandated Global Bullet Issuance

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

14 1512

17 17 18.75

10.25 11.257 6 7.5

6

14

7

915

19.5

103

3 6 3

9

6

113

14 0.75

3

3

8 6

1

3 3

1.5

2Yr 3Yr 5Yr 7yr 10Yr 30Yr

Total Issuance----------

# of New Issues

$135.75----------

37

$95.5----------

29

$46.75----------

14

$6----------

2

$18----------

5

2-Yr 3-Yr 5-Yr 7-Yr 10-Yr

Historical Global Bullet Issuance($ in billions – includes re-openings – 2004 to present)

($ in billions – includes re-openings)

15

TAP Program

The TAP program is designed to coordinate and standardize the issuance of non-Global bullet debt

New TAP securities are created on a quarterly basis and then re-opened via daily auction throughout a 90-day cycle

TAPs typically offer liquidity-adjusted yield over comparable FHLB Globals and other agency benchmarks

TAPs are available to investors through a 20 member dealer bidding group

Source: FHLBanks Office of Finance – as of 10/31/14

Recent TAP Issuance Cycles

Aug-

Oct09

Nov09

-Jan10

Feb-

Apr10

May-Jul10

Aug-

Oct10

Nov10

-Jan11

Feb-

Apr11

May-Jul11

Aug-

Oct11

Nov11

-Jan12

Feb-

Apr12

May-Jul12

Aug-

Oct12

Nov12

-Jan13

Feb-

Apr13

May-Jul13

Aug-

Oct13

Nov13

-Jan14

Feb-

Apr14

May-Jul14

Aug-

Oct14

$0

$2

$4

$6

$8

$10

$12

$14

>5 Years 2 to 5 Years Up to 2 Years

($ in billions – by trade date)

16Source: FHLBanks Office of Finance – by settlement date – 11/13 thru 10/14 and subject to rounding

Callable Bond Program

Essential component of FHLBank core funding, supporting both advances and investment portfolios

Callables offer enhanced yield over comparable bullets and allow investors to express views on volatility and/or the yield curve without sacrificing credit quality or utilizing derivatives

Flexible reverse inquiry process delivers a high degree of customization

Approximately 32% of fixed rate callable issuance in 2013 was SEC Rule 2a-7 eligible; 36% YTD ‘14

<3 Months47%

3-6 Months28%

6-12 Months22%

>1 Year3%

Bermudan59%

European29%American

9%

Canary4%

Callable Issuance by Lockout

Callable Issuance by Option Type

17

Discount Note Program

Source: FHLBanks Office of Finance – by settlement date – as of 10/31/14 and subject to rounding

2009 2010 2011 2012 2013 20140

200

400

600

800

1,000

1,200

1,400

1,600

0

5

10

15

20

25

640778 755

848771

959

848416

292 244

194

173

WindowAuction

Jan-

09

Jun-

09

Oct-0

9

Feb-1

0

Jun-

10

Oct-1

0

Feb-1

1

Jul-1

1

Nov-1

1

Mar

-12

Jul-1

2

Nov-1

2

Mar

-13

Jul-1

3

Nov-1

3

Apr-1

4

Aug-1

40

50

100

150

200

250

300

350

400

450

500

0

10

20

30

40

50

60

70

80

Discount Notes Outstanding Discount Note Issuance

($ in billions) ($ in billions)

WAM in Days (right axis)

Overnight Daily Average Outstanding (right axis)

1,488 1,194 1,047 1,092 965 1,132Gross DN Issuance:

18Source: FHLBanks Office of Finance – Excludes overnights – As of 9/30/14 – Reported by DN selling group members

Discount Note Investor Distribution

Asset Mgrs64%

Fi-nan-cial Cos6%

State/ Local Gov't5%

Ins/ Pension7%

Corps18%

Other<1%

Asset Mgrs72%

Fi-nan-cial Cos6%

State/ Local Gov't8%

Ins/ Pension8%

Corps6%

Asset Mgrs72%

Fi-nan-cial Cos5%

State/ Local Gov't9%

Ins/ Pension8%

Corps5% Other

1%

DN Window Trades ≥ $100 million

2012 2013 2014

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Conclusion

Self-capitalizing business model and capital preservation authority work together to provide a stable capital base

No public equity - FHLBank customers are also the owners, which fosters conservative management and a long-term view of financial performance

Fully-collateralized lending model combined with the “super lien” have shielded the FHLBanks from any credit losses on advances in the System’s 80+ year operational history

FHLBanks share joint & several liability to repay all senior debt obligations

Well Capitalized Fully Collateralized

Cooperatively Organized Joint & Several Support

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Investor Relations Contact Information

David Messerly(703) 467-3609

messerly@fhlb-of.com

Denise de Bombelles(703) 467-3677

debombelles@fhlb-of.com

Jonathan Hartley(703) 347-4751

jhartley@fhlb-of.com

FHLBanks - Office of Finance

www.fhlb-of.com

1818 Library StreetSuite 200

Reston, VA 20190(703) 467-3600