Exhibit 99.1

FHLBANK TOPEKA ANNOUNCES 2020 FOURTH QUARTER AND ANNUAL RESULTS

February 23, 2021 - FHLBank Topeka (FHLBank) is reporting net income of $46.0 million computed in accordance with U.S. generally accepted accounting principles (GAAP) for the quarter ended December 31, 2020 compared to $52.3 million for the quarter ended December 31, 2019. For the year ended December 31, 2020, FHLBank is reporting net income of $118.1 million compared to $185.2 million for the year ended December 31, 2019. The $6.3 million decrease for the quarter was driven primarily by net losses on derivatives and hedging activities and trading securities, partially offset by an increase in net interest income. The $67.1 million decrease for the year was largely due to net losses on derivatives and hedging activities and trading securities, the majority of which occurred during the first quarter of 2020 due to the market disruption caused by the COVID-19 pandemic, although some stabilization was observed during the remainder of 2020 as the financial markets began a modest and uneven recovery.

Net interest income increased $5.1 million for the quarter, increasing from $69.4 million for the quarter ended December 31, 2019 to $74.5 million for the quarter ended December 31, 2020 mostly related to a significant decrease in FHLBank's cost of debt between periods. Net interest income decreased $5.1 million for the comparative annual periods, from $256.1 million for the year ended December 31, 2019 to $251.0 million for the year ended December 31, 2020. Net interest income for both the quarterly and annual periods was reduced by a decline in the average balance and average rate of advances, the change in net interest settlements on fair value hedges, and increased premium amortization on mortgage-related assets due to faster prepayments, but the reduction was partially offset for the annual period and more than fully offset for the current quarter by the significant decrease in FHLBank's cost of debt.

FHLBank expects to file its Form 10-K for the year ended December 31, 2020 with the Securities and Exchange Commission (SEC) on or about March 18, 2021.

Operating Highlights
Net interest income/margin: Net interest income of $74.5 million for the quarter ended December 31, 2020 increased $5.1 million compared to the same period in 2019. Net interest margin of 55 basis points for the quarter ended December 31, 2020 increased 8 basis points compared to the prior year period due primarily to the decrease in our cost of debt. A 16 basis point increase in net interest spread for the quarter ended December 31, 2020 compared to the prior year period was also a result of the decrease in funding costs. The decrease in long-term market interest rates allowed FHLBank to replace approximately $13 billion of callable debt at a lower cost during 2020, which has reduced funding costs for current and future periods. The low interest rate environment has also allowed FHLBank to shift debt composition from discount notes to floating rate term debt, which more closely matches asset composition and reprices to the market more quickly than discount notes.
Total assets: Total assets declined from $63.3 billion as of December 31, 2019 to $52.6 billion as of December 31, 2020, driven mostly by the $9.0 billion decline in advances between those periods.
Advances: Advances declined from $30.2 billion as of December 31, 2019 to $21.2 billion as of December 31, 2020. Advance demand by members has dropped significantly since the beginning of the second quarter of 2020 as many members have experienced significant deposit inflows and excess liquidity as a result of economic stimulus packages passed by Congress along with the Federal Reserve Bank’s easing of monetary policy, security purchase programs, and newly created lending facilities in response to the COVID-19 pandemic. The average balance of advances declined $3.7 billion, or 13.4 percent, and $3.4 billion, or 12.2 percent, for the quarterly and annual periods ended December 31, 2020, respectively, when compared to the prior year periods.
Mortgage loans: Mortgage loans decreased by $1.4 billion during 2020, representing 17.5 percent of total assets as of December 31, 2020, compared to 16.8 percent as of December 31, 2019. Mortgage loans increased as a percent of total assets due to the larger decline in advance balances during 2020. The average balance of mortgage loans decreased $0.6 billion, or 6.2 percent, for the quarter ended December 31, 2020, and increased $1.2 billion, or 13.1 percent, for the year ended December 31, 2020, respectively, when compared to the prior year periods. Despite the increase in average mortgage loan balances for the year ended December 31, 2020, accelerated premium amortization from prepayments and new mortgage loan purchases at lower interest rates caused interest income to decline compared to the prior year period.
Performance ratios: Return on average equity (ROE) decreased to 6.75 percent for the quarter ended December 31, 2020 compared to 7.82 percent for the prior year period due to the aforementioned declines caused by pandemic-related market volatility and balance sheet contraction, while average capital increased. An increase in average assets partially funded by an increase in average equity combined with the decrease in net income resulted in an ROE of 4.50 percent for the year ended December 31, 2020 compared to 7.32 percent for the prior year period.


The following information was filed by Federal Home Loan Bank Of Topeka on Tuesday, February 23, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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