Financial Annual Report 2007

Financial Highlights 2007 Statement of Condition (In Millions) 2006 2005 2004 2003 (as restated) (as restated) Advances Mortgage Loans, net Total Assets Capital Stock - Class B Putable Retained Earnings Capital-to-Asset Ratio $40,412 10,802 60,767 2,717 361 5.02% $21,855 11,775 42,041 1,906 344 5.35% $22,283 13,018 45,722 1,932 329 4.94% $27,175 15,193 49,048 2,232 163 4.88% $23,272 16,052 45,073 2,117 109 4.94% Operating Results and Performance Ratios (In Millions) Net Interest Income Net Income Return on Average Assets Return on Average Total Capital Return on Average Capital Stock Net Interest Margin Operating Expenses to Average Assets Dividend Rate (annualized) Cash Dividends paid $171 101 0.21% 4.25% 4.97% 0.37% 0.08% 4.31% 84 $154 89 0.20% 3.91% 4.61% 0.35% 0.09% 3.83% 74 $294 228 0.48% 9.57% 10.68% 0.62% 0.08% 2.82% 61 $499 100 0.21% 4.30% 4.59% 1.03% 0.06% 2.13% 46 $303 136 0.32% 6.80% 7.08% 0.72% 0.06% 3.00% 57 The selected ﬁnancial data above should be read in conjunction with the ﬁnancial statements and notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” included in the Bank’s 2007 Annual Report on Form 10-K ﬁled with the Securities and Exchange Commission and available at www.fhlbdm.com or www.sec.gov. FHLB Des Moines assets and advances reached record levels in 2007. Total assets increased to $60.8 billion at December 31, 2007 compared to $42.0 billion at December 31, 2006. The advances portfolio increased significantly in light of the extraordinar y events affecting the mortgage credit markets during the last half of 2007. Members increased their advance borrowings from the FHLB Des Moines by 84.9 percent from $21.9 billion at December 31, 2006 to $40.4 billion at December 31, 2007. The year-end advance balance was the largest in the 75-year histor y of FHLB Des Moines and demonstrates the important role the Bank plays in providing a reliable source of stable funding during the continuing liquidity and credit crisis. As a result of its unique capital structure, whereby members provide capital to suppor t their business activity, FHLB Des Moines has the ability to expand and contract to meet the funding needs of our members. We expect advances to decline from these record levels as credit markets stabilize. Net income totaled $101 million for the year ended December 31, 2007 compared with $89 million for the same period in 2006, an increase of 13.5 percent. The improvement in net income for the year was driven primarily by an increase in net interest income caused by growth in earning assets and an improved net interest spread. Net interest income was $171 million for the year ended December 31, 2007 compared with $154 million for the same period in 2006, an increase of approximately 11 percent. Retained ear nings grew $17 million or approximately 5 percent to $361 million at year end 2007 compared to $344 million at December 31, 2006. 11 http://www.fhlbdm.com http://www.sec.gov

Table of Contents Feed for the Digital Edition of Financial Annual Report 2007

Financial Annual Report 2007 Contents Introduction Letter To Our Members Financial Highlights Member Highlight: Chillicothe, MO Member Highlight: Bloomington, MN Statements of Condition Statements of Income Board of Directors

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