Definition: The spread between: # GAAP net income divided by the daily average total regulatory capital; and # the Fed Effective rate.

FHLBank shall maintain a daily average Total Regulatory Capital of 4.75 percent for 2021. If FHLBank’s daily average Total Regulatory Capital is below 4.75 percent for 2021, the Total Base Opportunity available to Participants for the Financial Performance Goals shall be adjusted as reflected in the table below. The Finanical Performance Goals include the Adjusted Return Spread on Total Regulatory Capital, GAAP Return Spread on Total Regulatory Capital, Adjusted Net Income after Capital Charge, and GAAP Net Income after Capital Charge goals, which represent 40% of the Base Opportunity Metric Weights.

Definition: The spread between # adjusted net income divided by the daily average total regulatory capital and # the average daily Overnight Federal funds effective rate (Fed Effective).

Definition: The spread between: # GAAP net income divided by the daily average total regulatory capital; and # the Fed Effective rate.

Measure: GAAP net income, less required return on capital. The required return on capital is the sum of the outstanding regulatory Class B Common Stock times the average of three-month LIBOR plus 1.00 percent for each day during the year plus the sum of regulatory Class A Common Stock and retained earnings times the average of three-month LIBOR for each day during the year.

JFC’s partnership capital subject to mandatory redemption, net of reserves for anticipated withdrawals and partnership loans, as determined in accordance with GAAP​

Measure: GAAP net income, less required return on capital. The required return on capital is the sum of the outstanding regulatory Class B Common Stock times the average of three-month discount note auction rate plus 1.25 percent for each day during the year plus the sum of regulatory Class A Common Stock and retained earnings times the average of three-month discount note auction rate plus 0.25 percent for each day during the year.

o Divide GAAP net income by daily average total regulatory capital to calculate a return.

o Divide GAAP net income by daily average total regulatory capital to calculate a return.

Definition: The spread between # adjusted net income divided by the daily average total regulatory capital and # the average daily Overnight Federal funds effective rate (Fed Effective).