Recently, the FHFA released its annual combined operating highlights for 2023 which were prepared from the unaudited financial statements of the Federal Home Loan Bank system (FHLBank). Administered by the FHFA, the FHLBank system was created to provide lending institutions with liquidity. In 2023, FHLBanks' annual net income grew from $3.16 billion to $6.69 billion—a 111 percent increase—while advances increased from $13.2 billion to $48.5 billion, representing a 266 percent increase. This change in pace was due in part to the stresses placed on banking and financial markets in March 2023. The operating highlights follow FHFA’s comprehensive report on the FHLBank system published in late 2023, previously covered by InfoBytes here. More information on the FHFA’s operating statements can be found in its 8-K filing with the SEC.