Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-51398 | ||
Entity Registrant Name | FEDERAL HOME LOAN BANK OF SAN FRANCISCO | ||
Entity Incorporation, State or Country Code | X1 | ||
Entity Tax Identification Number | 94-6000630 | ||
Entity Address, Address Line One | 333 Bush Street, Suite 2700 | ||
Entity Address, City or Town | San Francisco, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94104 | ||
City Area Code | 415 | ||
Local Phone Number | 616-1000 | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Common Stock, Shares, Outstanding | 30,134,294 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Par Value, Capital Stock Outstanding | $ 3,443 | ||
Documents Incorporated by Reference | None. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001316944 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Location | San Francisco, California |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Statements of Condition
Statements of Condition - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets: | |||
Cash and due from banks | $ 5 | $ 9 | |
Interest-bearing deposits | 2,922 | 3,677 | |
Securities purchased under agreements to resell | 3,650 | 7,000 | |
Federal funds sold | 3,861 | 4,719 | |
Trading securities | 0 | 1 | |
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | [1] | 18,014 | 12,713 |
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [2] | 1,847 | 2,181 |
Advances (includes $1,898 and $2,059 at fair value under the fair value option, respectively) | 61,335 | 89,400 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $1 and $1, respectively | 754 | 815 | |
Accrued interest receivable | 184 | 313 | |
Derivative assets, net | 16 | 26 | |
Other assets | 240 | 202 | |
Total Assets | 92,828 | 121,056 | |
Liabilities: | |||
Deposits | 962 | 989 | |
Consolidated obligations: | |||
Bonds (includes $604 and $2,226 at fair value under the fair value option, respectively) | 64,297 | 75,768 | |
Discount notes | 19,187 | 35,929 | |
Total consolidated obligations | 83,484 | 111,697 | |
Mandatorily redeemable capital stock | 706 | 5 | |
Accrued interest payable | 520 | 326 | |
Affordable Housing Program (AHP) payable | 133 | 111 | |
Derivative liabilities, net | 2 | 2 | |
Other liabilities | 353 | 203 | |
Total Liabilities | 86,160 | 113,333 | |
Commitments and Contingencies (Note 13) | |||
Capital: | |||
Capital stock-Class B-Putable ($100 par value) issued and outstanding: 33 shares and 21 shares, respectively | 2,450 | 3,758 | |
Unrestricted retained earnings | 3,475 | 3,262 | |
Restricted retained earnings | 815 | 732 | |
Total Retained Earnings | 4,290 | 3,994 | |
Accumulated other comprehensive income/(loss) (AOCI) | (72) | (29) | |
Total Capital | 6,668 | 7,723 | |
Total Liabilities and Capital | $ 92,828 | $ 121,056 | |
[1]At December 31, 2023 and 2022, $771 million and $435 million, respectively, of these securities were pledged as collateral that may be repledged.[2]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $6 million and $5 million at December 31, 2023 and 2022, respectively. |
Statements of Condition (Parent
Statements of Condition (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | $ 31 | $ 30 | |
Amortized cost of AFS | [1] | 18,105 | 12,757 |
HTM securities, fair value | 1,818 | 2,136 | |
Fair value of advances under the fair value option | [2] | 1,898 | 2,059 |
Allowance for credit losses on mortgage loans | $ 1 | 1 | |
Common stock, par value | $ 100 | ||
Available-for-sale securities pledged as collateral that may be repledged | $ 771 | 435 | |
Portion at Fair Value Measurement | |||
Fair value of advances under the fair value option | 1,898 | 2,059 | |
Fair value of bonds under the fair value option | $ 604 | $ 2,226 | |
Common Class B [Member] | |||
Common stock, par value | $ 100 | $ 100 | |
Common Stock, Shares, Outstanding | 25 | 38 | |
Common Stock, Shares, Issued | 25 | 38 | |
[1]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Income: | |||
Advances | $ 3,999 | $ 1,226 | $ 224 |
Interest-bearing deposits | 222 | 55 | 2 |
Securities purchased under agreements to resell | 280 | 117 | 1 |
Federal funds sold | 499 | 214 | 5 |
Trading securities | 0 | 0 | 61 |
AFS securities | 921 | 408 | 220 |
HTM securities | 100 | 56 | 43 |
Mortgage loans held for portfolio | 26 | 46 | 42 |
Total Interest Income | 6,047 | 2,122 | 598 |
Interest Expense: | |||
Bonds | 3,901 | 715 | 62 |
Discount notes | 1,249 | 821 | 13 |
Deposits | 64 | 18 | 1 |
Borrowings from other FHLBanks | 2 | 1 | 0 |
Mandatorily redeemable capital stock | 32 | 0 | 0 |
Total Interest Expense | 5,248 | 1,555 | 76 |
Net Interest Income | 799 | 567 | 522 |
Provision for/(reversal of) credit losses | 4 | 15 | (6) |
Net Interest Income After Provision for/(Reversal of) Credit Losses | 795 | 552 | 528 |
Other Income/(Loss): | |||
Net gain/(loss) on trading securities | 0 | 0 | (57) |
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | (1) | (65) | (54) |
Net gain/(loss) on derivatives | (25) | (9) | 37 |
Private-label residential mortgage-backed securities (PLRMBS) trust settlement | 0 | 28 | 0 |
Standby letters of credit fees | 20 | 17 | 16 |
Other, net | 13 | (2) | 8 |
Total Other Income/(Loss) | 7 | (31) | (50) |
Other Expense: | |||
Compensation and benefits | 104 | 93 | 93 |
Other operating expense | 68 | 58 | 54 |
Federal Housing Finance Agency | 9 | 7 | 7 |
Office of Finance | 7 | 6 | 6 |
Other, net | (2) | (1) | |
Other, net | 12 | ||
Total Other Expense | 200 | 162 | 159 |
Income/(Loss) Before Assessment | 602 | 359 | 319 |
AHP assessment | 63 | 36 | 32 |
Net Income/(Loss) | $ 539 | $ 323 | $ 287 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income/(Loss) | $ 539 | $ 323 | $ 287 |
Other Comprehensive Income/(Loss): | |||
Net unrealized gain/(loss) on AFS securities | (47) | (354) | 96 |
Net change in pension and postretirement benefits | 4 | (6) | 5 |
Total other comprehensive income/(loss) | (43) | (360) | 101 |
Total Comprehensive Income/(Loss) | $ 496 | $ (37) | $ 388 |
Statements of Capital Accounts
Statements of Capital Accounts - USD ($) shares in Millions, $ in Millions | Total | Total Retained Earnings | Total Restricted Retained Earnings | Unrestricted Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Common Class B - Putable Common Stock |
Balance, Shares at Dec. 31, 2020 | 23 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of capital stock, shares | 14 | |||||
Repurchase of capital stock, shares | (16) | |||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net shares | 0 | |||||
Balance, Shares at Dec. 31, 2021 | 21 | |||||
Balance at Dec. 31, 2020 | $ 6,194 | $ 3,680 | $ 761 | $ 2,919 | $ 230 | $ 2,284 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss) | 388 | 287 | 0 | 287 | 101 | |
Issuance of capital stock, value | 1,409 | 1,409 | ||||
Repurchase of capital stock, value | (1,607) | (1,607) | ||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net | (25) | (25) | ||||
Transfers from restricted retained earnings | 0 | 0 | (53) | (53) | ||
Cash dividends on capital stock | (135) | (135) | (135) | |||
Balance at Dec. 31, 2021 | $ 6,224 | 3,832 | 708 | 3,124 | 331 | $ 2,061 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends, Cash, Annualized Rate | 5.74% | |||||
Issuance of capital stock, shares | 68 | |||||
Repurchase of capital stock, shares | (50) | |||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net shares | (1) | |||||
Balance, Shares at Dec. 31, 2022 | 38 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss) | $ (37) | 323 | 40 | 283 | (360) | |
Issuance of capital stock, value | 6,740 | $ 6,740 | ||||
Repurchase of capital stock, value | (4,997) | (4,997) | ||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net | (46) | (46) | ||||
Transfers from restricted retained earnings | 0 | 0 | (16) | (16) | ||
Cash dividends on capital stock | (161) | (161) | (161) | |||
Balance at Dec. 31, 2022 | $ 7,723 | 3,994 | 732 | 3,262 | (29) | $ 3,758 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends, Cash, Annualized Rate | 6.30% | |||||
Issuance of capital stock, shares | 32 | |||||
Repurchase of capital stock, shares | (32) | |||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net shares | (13) | |||||
Balance, Shares at Dec. 31, 2023 | 25 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss) | $ 496 | 539 | 83 | 456 | (43) | |
Issuance of capital stock, value | 3,161 | $ 3,161 | ||||
Repurchase of capital stock, value | (3,217) | (3,217) | ||||
Capital stock reclassified from/(to) mandatorily redeemable capital stock, net | (1,252) | (1,252) | ||||
Cash dividends on capital stock | (243) | (243) | (243) | |||
Balance at Dec. 31, 2023 | $ 6,668 | $ 4,290 | $ 815 | $ 3,475 | $ (72) | $ 2,450 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends, Cash, Annualized Rate | 7.49% |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Cash Provided by (Used in) Operating Activities | |||
Net Income/(Loss) | $ 539 | $ 323 | $ 287 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization/(accretion) | 21 | 270 | 79 |
Provision for/(reversal of) credit losses | 4 | 15 | (6) |
Change in net fair value of trading securities | 0 | 0 | 57 |
Change in net fair value adjustment on advances and consolidated obligation bonds held under the fair value option | 1 | 65 | 54 |
Change in net derivatives and hedging activities | (652) | 1,302 | 531 |
PLRMBS trust settlement | 0 | 28 | 0 |
Other adjustments, net | 5 | 6 | 7 |
Net change in: | |||
Accrued interest receivable | 127 | (272) | 39 |
Other assets | (43) | 27 | (12) |
Accrued interest payable | 188 | 302 | 9 |
Other liabilities | 56 | (33) | (4) |
PLRMBS contingent liability | 0 | (41) | 0 |
Total adjustments | (293) | 1,613 | 754 |
Net cash provided by/(used in) operating activities | 246 | 1,936 | 1,041 |
Net Cash Provided by (Used in) Investing Activities | |||
Interest-bearing deposits | 1,096 | (3,167) | (52) |
Securities purchased under agreements to resell | 3,350 | 8,500 | (8,250) |
Federal funds sold | 858 | 629 | (3,468) |
Trading securities: | |||
Proceeds | 1 | 251 | 3,951 |
AFS securities: | |||
Proceeds from sales | 0 | 28 | 0 |
Proceeds | 260 | 1,270 | 8,797 |
Purchases | (5,152) | (5,159) | (4,275) |
HTM securities: | |||
Proceeds | 332 | 1,015 | 1,868 |
Advances: | |||
Repaid | 1,368,658 | 1,704,744 | 257,403 |
Originated | (1,340,253) | (1,778,003) | (243,923) |
Mortgage loans held for portfolio: | |||
Principal collected | 59 | 179 | 958 |
Purchases | 0 | 0 | (7) |
Other investing activities, net | (2) | (2) | 0 |
Net cash provided by/(used in) investing activities | 29,207 | (69,715) | 13,002 |
Net Cash Provided by (Used in) Financing Activities | |||
Net change in deposits and other financing activities | 26 | 412 | (20) |
Net (payments)/proceeds on derivative contracts with financing elements | 20 | (10) | (35) |
Net proceeds from issuance of consolidated obligations: | |||
Bonds | 85,638 | 70,127 | 17,888 |
Discount notes | 128,658 | 216,863 | 78,977 |
Payments for matured and retired consolidated obligations: | |||
Bonds | (97,575) | (16,086) | (39,417) |
Discount notes | (145,374) | (205,111) | (71,198) |
Proceeds from issuance of capital stock | 3,161 | 6,740 | 1,409 |
Repurchase/redemption of mandatorily redeemable capital stock | (551) | (44) | (24) |
Payments for repurchase of capital stock | (3,217) | (4,997) | (1,607) |
Cash dividends paid | (243) | (161) | (135) |
Net cash provided by/(used in) financing activities | (29,457) | 67,733 | (14,162) |
Net increase/(decrease) in cash and due from banks | (4) | (46) | (119) |
Cash and due from banks beginning of period | 9 | 55 | 174 |
Cash and due from banks end of period | 5 | 9 | 55 |
Supplemental Disclosures: | |||
Interest paid | 5,307 | 1,078 | 94 |
AHP payments | 41 | 40 | 37 |
Transfers of HTM securities to AFS securities | 2 | 17 | 2 |
Transfers of capital stock to mandatorily redeemable capital stock | $ 1,252 | $ 46 | $ 25 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make a number of judgments, estimates, and assumptions that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income, expenses, gains, and losses during the reporting period. The most significant of these estimates include: • accounting for derivatives; and • estimating fair values of investments classified as trading and available-for-sale (AFS), derivatives and associated hedged items carried at fair value in accordance with the accounting for derivative instruments and associated hedging activities, and financial instruments carried at fair value under the fair value option. Actual results could differ significantly from these estimates. Estimated Fair Values. A portion of the Bank’s financial instruments lack an available liquid trading market as characterized by frequent exchange transactions between a willing buyer and willing seller. Therefore, the Bank uses financial models employing significant assumptions and present value calculations for the purpose of determining estimated fair values. Thus, the fair values may not represent the actual values of the financial instruments that could have been realized as of yearend or that will be realized in the future. Fair values for certain financial instruments are based on quoted prices, market rates, or replacement rates for similar financial instruments as of the last business day of the year. The estimated fair values of the Bank’s financial instruments and related assumptions are detailed in Note 14 – Fair Value. Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. These investments provide short-term liquidity and are carried at cost. The Bank invests in Federal Funds sold with counterparties that are considered by the Bank to be of investment quality. Interest-bearing deposits include interest-bearing deposits in banks not meeting the definition of a security. Interest income on these investments is accrued as earned and recorded in interest income on the Statements of Income. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit loss is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The Bank treats securities purchased under agreements to resell as collateralized financing arrangements. A credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See Note 4 – Investments for details on the allowance methodologies relating to interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. Investment Securities. The Bank classifies investments as trading, AFS, or held-to-maturity (HTM) at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. The Bank classifies certain investments as trading. These securities are held for liquidity purposes and carried at fair value with changes in the fair value of these investments recorded in other income/(loss). The Bank does not participate in speculative trading practices and holds these investments indefinitely as the Bank periodically evaluates its liquidity needs. The Bank classifies certain securities as AFS and carries these securities at their fair value. Unrealized gains and losses on these securities are recognized in accumulated other comprehensive income (AOCI). HTM securities are carried at cost, adjusted for periodic principal repayments, amortization of premiums and accretion of discounts. The Bank classifies these investments as HTM securities because the Bank has the positive intent and ability to hold these securities until maturity. Certain changes in circumstances may cause the Bank to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of an HTM security because of certain changes in circumstances, such as evidence of significant deterioration in the issuer's creditworthiness or changes in regulatory requirements, is not considered to be inconsistent with its original classification. Other events that are isolated, nonrecurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without calling into question its intent to hold other debt securities to maturity. In addition, sales of debt securities that meet either of the following two conditions may be considered as maturities for purposes of the classification of securities: (i) the sale occurs near enough to its maturity date (or call date if exercise of the call is probable) that interest rate risk is substantially eliminated as a pricing factor and changes in market interest rates would not have a significant effect on the security's fair value, or (ii) the sale occurs after the Bank has already collected a substantial portion (at least 85%) of the principal outstanding at acquisition because of prepayments on the debt security or scheduled payments on a debt security payable in equal installments over its term. The Bank calculates the amortization of purchase premiums and accretion of purchase discounts on investments using the level-yield method on a retrospective basis over the estimated life of the securities. This method requires a retrospective adjustment of the effective yield each time the Bank changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. The Bank uses nationally recognized, market-based, third-party prepayment models to project estimated lives. On a quarterly basis, the Bank evaluates its individual AFS investment securities in an unrealized loss position for impairment. A security is considered impaired when its fair value is less than its amortized cost basis. With respect to any debt security, a credit loss is defined as the amount by which the amortized cost basis exceeds the present value of the cash flows expected to be collected. If a credit loss exists but the entity does not intend to sell the debt security and it is not more likely than not that the entity will be required to sell the debt security before the anticipated recovery of its remaining amortized cost basis (the amortized cost basis less any current-period credit loss), an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The allowance is limited by the amount of the unrealized loss. Accrued interest receivable is recorded separately on the Statements of Condition. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings as net unrealized gain/(loss) on AFS securities. If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to net unrealized gain/(loss) on AFS securities within other comprehensive income/(loss). On a quarterly basis, the Bank evaluates its HTM investment securities for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. For improvements in impaired HTM securities with an allowance for credit losses, the allowance for credit losses associated with recoveries may be derecognized up to its full amount. Accrued interest receivable is recorded separately on the Statements of Condition. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. See Note 4 – Investments for details on the allowance methodologies relating to AFS and HTM securities. Financial Instruments Meeting Netting Requirements. The Bank presents certain financial instruments, including derivative instruments and securities purchased under agreements to resell, on a net basis when they have a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when the netting requirements are met. The Bank did not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. Additional information regarding these agreements is provided in Note 13 – Derivatives and Hedging Activities. Based on the fair value of the related collateral held, the securities purchased under agreements to resell were fully collateralized for the periods presented. Variable Interest Entities. The Bank’s investments in variable interest entities (VIEs) relate to private-label residential mortgage-backed securities (PLRMBS). On an ongoing basis, the Bank performs a quarterly evaluation to determine whether it is the primary beneficiary in any VIE. As the Bank does not have the power to significantly affect the economic performance of these investments, the Bank determined that it is not a primary beneficiary of any of these VIEs and concluded that consolidation accounting is not required as of December 31, 2023. In addition, the Bank does not design, sponsor, transfer, service, or provide credit liquidity support in any of its investments in VIEs. The Bank’s maximum loss exposure for these investments is limited to the carrying value. Advances. The Bank reports advances (loans to members, former members or their successors or housing associates) either at amortized cost or at fair value when the fair value option is elected. Advances carried at amortized cost are evaluated quarterly for expected credit losses and reported net of hedging adjustments. The Bank recognizes hedging adjustments resulting from the discontinuation of a hedging relationship to interest income using a level-yield methodology. Interest on advances is credited to income as earned. For advances carried at fair value, the Bank recognizes contractual interest in interest income. Accrued interest receivable is recorded separately on the Statements of Condition. The advances carried at amortized cost are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. See Note 5 – Advances for details on the allowance methodologies relating to advances. Advance Modifications. In cases in which the Bank funds an advance concurrent with or within a short period of time before or after the prepayment of a previous advance to the same member, at market rates, the subsequent advance is accounted for as a new advance. The Bank does not issue advances at non-market rates. If a member makes a request for a modification to an existing advance, the Bank compares the present value of the cash flows on the modified advance to the present value of the cash flows remaining on the original advance. If there is at least a 10% difference in the present value of cash flows or if the Bank concludes the difference between the advances is more than minor based on a qualitative assessment of the modifications made to the original contractual terms, then the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Modification requests with a difference in cash flows that is more than minor are not accepted by the Bank. Prepayment Fees. When a borrower prepays certain advances prior to the original maturity, the Bank may charge the borrower a prepayment fee. For certain advances with full or partial prepayment symmetry, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. In November 2018, the Bank discontinued offering advances with partial prepayment symmetry. For prepaid advances that are hedged and meet the hedge accounting requirements, the Bank terminates the hedging relationship upon prepayment and records the associated fair value gains and losses, adjusted for the prepayment fees, in interest income. If a new advance represents a modification of an original hedged advance, the fair value gains or losses on the advance and the prepayment fees are included in the carrying amount of the modified advance, and gains or losses and prepayment fees are amortized in interest income over the life of the modified advance using the level-yield method. If the modified advance is also hedged and the hedge meets the hedge accounting requirements, the modified advance is marked to fair value after the modification, and subsequent fair value changes are recorded in interest income on advances. If the prepayment represents an extinguishment of the original hedged advance, the prepayment fee and any fair value gain or loss are immediately recognized in interest income. For prepaid advances that are not hedged or that are hedged but do not meet the hedge accounting requirements, the Bank records prepayment fees in interest income unless the Bank determines that the new advance represents a modification of the original advance. If the new advance represents a modification of the original advance, the prepayment fee on the original advance is deferred, recorded in the basis of the modified advance, and amortized over the life of the modified advance using the level-yield method. This amortization is recorded in interest income. Mortgage Loans Held for Portfolio. Under the Mortgage Partnership Finance® (MPF®) Program, the Bank purchased from members, for its own portfolio, conventional conforming fixed rate mortgage loans under the MPF Original product. After June 30, 2021, we no longer directly purchase, or facilitate the purchase of, mortgage loans from our members. The Bank classifies mortgage loans as held for portfolio and, accordingly, reports them at their principal amount outstanding net of unamortized premiums, unamortized credit enhancement fees paid as a lump sum at the time loans are purchased, discounts, and unrealized gains and losses from loans initially classified as mortgage loan commitments. The Bank aggregates the mortgage loans by similar characteristics (type, maturity, interest rate, and acquisition date) in determining prepayment estimates. A retrospective adjustment is required each time the Bank changes the estimated amounts as if the new estimate had been known since the original acquisition date of the assets. The Bank uses nationally recognized, market-based, third-party prepayment models to project estimated lives. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. An allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The Bank measures expected credit losses on mortgage loans on a loan-level basis, factoring in the credit enhancement structure at the master commitment level. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The Bank includes estimates of expected recoveries within the allowance for credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. Accrued interest receivable is recorded separately on the Statements of Condition. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status. A past due loan is one where the borrower has failed to make a scheduled full payment of principal and interest within 30 days of its due date. The Bank places a mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the participating financial institution is doubtful, when the collection of the contractual principal or interest from the participating financial institution is reported 90 days or more past due, or when the loan is in foreclosure, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. Loans that are on nonaccrual status and that are considered collateral-dependent are measured for credit losses based on the fair value of the underlying property less estimated selling costs. Loans are considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral; that is, if it is considered likely that the borrower will default and there is no credit enhancement to offset losses under the master commitment, or the collectability or availability of credit enhancement is deemed to be uncertain. Collateral-dependent loans are credit deteriorated if the fair value of the underlying collateral less estimated selling costs is insufficient to recover the unpaid principal balance on the loan. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful, then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on nonaccrual status may be restored to accrual when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal, or (2) it otherwise becomes well secured and in the process of collection. Effective January 1, 2023, the Bank adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Subsequent to adoption, all loan modifications are evaluated under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or is a continuation of the existing loan. An MPF loan that shares similar risk characteristics with other loans is evaluated for credit losses on a collective basis. MPF loans that do not share risk characteristics with other loans are individually evaluated for credit losses. MPF loans that are identified for individual evaluation are either delinquent or classified as nonaccrual, in process of foreclosing on the collateral, or have been modified in response to a borrower’s financial difficulty. Credit loss is measured by factoring in expected cash flow shortfalls incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates, if applicable. For all mortgage loans that are more than 180 days past due and that have any outstanding balance in excess of the fair value of the property, less costs to sell, the excess is charged off at the end of the month. The Bank did not purchase mortgage loans with credit deterioration present at the time of purchase. See Note 6 – Mortgage Loans Held for Portfolio for details on the allowance methodologies relating to mortgage loans. Other Fees. Letter of credit fees are recorded as other income/(loss) over the term of the letter of credit. Derivatives and Hedging Activities. All derivatives are recognized on the Statements of Condition at their fair values, including accrued interest, net of cash collateral received from or pledged to clearing agents or counterparties, including accrued interest, and are reported as either derivative assets or derivative liabilities. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset, and if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. The Bank uses London Clearing House (LCH) Ltd for all cleared derivative transactions. The rulebook of LCH Ltd characterizes variation margin as daily settlement payments, and initial margin is considered cash collateral. Each derivative is designated as one of the following: (1) a qualifying hedge of the change in fair value of (i) a recognized asset or liability or (ii) an unrecognized firm commitment (a fair value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes or of certain advances and consolidated obligation bonds for which the Bank elected the fair value option (an economic hedge). If hedging relationships meet certain criteria, including but not limited to formal documentation of the hedging relationship and an expectation to be hedge effective, they are eligible for hedge accounting, and the offsetting changes in fair value of the hedged items attributable to the hedged risk may be recorded in earnings. The application of hedge accounting generally requires the Bank to evaluate the effectiveness of the hedging relationships at inception and on an ongoing basis and to calculate the changes in fair value of the derivatives and the related hedged items independently. This is known as the long-haul method of hedge accounting. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a qualifying hedge relationship as of the trade date. In many hedging relationships, the Bank may designate the hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. The Bank records the changes in the fair value of the derivatives and the hedged item beginning on the trade date. Changes in the fair value of a derivative that is designated as a fair value hedge, along with changes in the fair value of the hedged asset or liability (hedged item) that are attributable to the hedged risk (including changes that reflect gains or losses on firm commitments), are recorded in net interest income in the same line as the earnings effect of the hedged item. Net gains and losses on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains and losses, which include net interest settlements. For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in Accumulated Other Comprehensive Income (AOCI) as “Net unrealized gain/(loss) on AFS securities.” The Bank hedges the benchmark risk component of cash flows in a fair value hedge. Changes in the fair value of a derivative designated as an economic hedge are recorded in current period earnings with no fair value adjustment to an asset or liability. An economic hedge is defined as a derivative hedging certain advances and consolidated obligation bonds for which the Bank elected the fair value option, or hedging specific or non-specific underlying assets, liabilities, or firm commitments, that does not qualify or was not designated for fair value hedge accounting, but is an acceptable hedging strategy under the Bank's risk management program. These economic hedging strategies also comply with Finance Agency regulatory requirements prohibiting speculative hedge transactions. An economic hedge introduces the potential for earnings variability caused by the changes in fair value of the derivatives that are recorded in the Bank's income but are not offset by corresponding changes in the value of the economically hedged assets, liabilities, or firm commitments. Changes in the fair value of these non-qualifying hedges are recorded in other income/(loss) as “Net gain/(loss) on derivatives.” In addition, the net settlements associated with these non-qualifying hedges are recorded in other income/(loss) as “Net gain/(loss) on derivatives.” Cash flows associated with these stand-alone derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be designated as a financing derivative. The net settlements of interest receivables and payables on derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated underlying hedged item. The net settlements of interest receivables and payables on intermediated derivatives for members and other economic hedges are recognized in other income/(loss) as “Net gain/(loss) on derivatives.” The Bank discontinues hedge accounting prospectively when: (i) it determines that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative or the hedged item expires or is sold, terminated, or exercised; (iii) it is no longer probable that the forecasted transaction will occur in the originally expected period; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; (v) it determines that designating the derivative as a hedging instrument is no longer appropriate; (vi) a critical term on the hedged item changes; or (vii) it decides to use the derivative to offset changes in the fair value of other derivatives or instruments carried at fair value. When hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative on the Statements of Condition at its fair value, ceases to adjust the hedged asset or liability for changes in fair value, and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using a level-yield methodology. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Bank continues to carry the derivative on the Statements of Condition at its fair value, removing from the Statements of Condition any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. The Bank may be the primary obligor on consolidated obligations and may make advances in which derivative instruments are embedded. Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance or debt (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that: (i) the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (ii) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument equivalent to an economic hedge. However, the entire contract is carried on the Statements of Condition at fair value and no portion of the contract is designated as a hedging instrument if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current period earnings (such as an investment security classified as trading, as well as hybrid financial instruments that are eligible for the fair value option), or if the Bank cannot reliably identify and measure the embedded derivative for purposes of separating the derivative from its host contract. Premises, Software, and Equipment . Premises, software, and equipment are included in other assets on the Statements of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization. At December 31, 2023 and 2022, premises, software, and equipment were $26 million and $29 million, respectively, which was net of accumulated depreciation and amortization of $76 million and $75 million, respectively. Improvements and major renewals are capitalized; ordinary maintenance and repairs are expensed as incurred. Depreciation is computed on the straight-line method over the estimated useful lives of assets ranging from 3 to 10 years, and leasehold improvements are amortized on the straight-line method over the estimated useful life of the improvement or the remaining term of the lease, whichever is shorter. Depreciation and amortization expense was $5 million for 2023, $6 million for 2022, and $7 million for 2021. Consolidated Obligations. Consolidated obligations are recorded at amortized cost unless the Bank has elected the fair value option, in which case the consolidated obligations are carried at fair value. Mandatorily Redeemable Capital Stock. The Bank reclassifies the capital stock subject to redemption from capital to a liability after a member provides the Bank with a written notice of redemption; gives notice of intention to withdraw from membership; attains nonmember status by merger or acquisition, charter termination, or other involuntary membership termination; or after a receiver or other liquidating agent for a member transfers the member's Bank capital stock to a nonmember entity, resulting in the member's shares then meeting the definition of a mandatorily redeemable financial instrument. Shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repayment of these mandatorily redeemable financial instruments (by repurchase or redemption of the shares) is reflected as a financing cash outflow in the Statements of Cash Flows once settled. See |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Guidance | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Guidance | Note 2 — Recently Issued and Adopted Accounting Guidance The following table provides a summary of recently issued and adopted accounting standards that may have an effect on the Bank’s financial statements. Accounting Standards Update (ASU) Description Effective Date Effect on the Financial Statements or Other Significant Matters Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended (ASU 2020-04) This update provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include: This guidance became effective beginning March 2020 through December 31, 2024. The Bank has assessed the guidance and has elected some of the optional expedients and exceptions provided related to the discounting transition for uncleared derivative transactions on a prospective basis since 2021, which did not have a material effect on the Bank’s financial condition, results of operations, cash flows, and financial statement disclosures. Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) This guidance eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses methodology while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Additionally, this guidance requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2023. The Bank adopted all elements of this guidance prospectively as of January 1, 2023. The adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, cash flows, and financial statement disclosures. Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) This guidance improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses, including if an entity only has a single reportable segment. This guidance becomes effective for the Bank for the annual period ending December 31, 2024, and for interim and annual periods thereafter. While the adoption of this guidance will not have any effect on the Bank’s financial condition, results of operations, or cash flows, the Bank is in the process of evaluating the impact of this guidance and its effect on the Bank’s disclosures. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Due from Banks [Abstract] | |
Cash and Due from Banks | Note 3 — Cash and Due from Banks Cash on hand, cash items in the process of collection, and amounts due from correspondent banks and the Federal Reserve Bank are included in Cash and due from banks on the Statements of Condition. Cash and due from banks includes certain compensating balances, where the Bank maintains collected cash balances with commercial banks in consideration for certain services. There are no legal restrictions under these agreements on the withdrawal of these funds. The average collected cash balances were approximately $10 million for 2023 and $34 million for 2022. |
Investments (Notes)
Investments (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities | Note 4 — Investments The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold, and may make other investments in debt securities, which are classified as trading, AFS, or HTM. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. Federal funds sold are unsecured loans that are generally transacted on an overnight term. Finance Agency regulations include a limit on the amount of unsecured credit the Bank may extend to a counterparty. At December 31, 2023 and 2022, all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the relevant contractual terms. No allowance for credit losses was recorded for these assets at December 31, 2023 and 2022. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $16 million and $2 million, respectively, as of December 31, 2023, and $13 million and $1 million, respectively, as of December 31, 2022. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at December 31, 2023 and 2022. The carrying value of securities purchased under agreements to resell excludes $2 million of accrued interest receivable as of December 31, 2023 and 2022. Debt Securities The Bank invests in debt securities, which are classified as trading, AFS, or HTM. Within these investments, the Bank is primarily subject to credit risk related to PLRMBS that are supported by underlying mortgage loans. The Bank is prohibited by Finance Agency regulations from purchasing certain higher risk securities, such as equity securities and debt instruments that are not investment quality at the time of purchase. Trading Securities. The estimated fair value of trading securities that were MBS - other U.S. obligations was a de minimis amount and $1 million as of December 31, 2023 and 2022, respectively. The unrealized net gain/(loss) on trading securities held at December 31, 2023 and 2022, were de minimis amounts. Available-for-Sale Securities. The amortized cost and fair value of AFS securities by major security type as of December 31, 2023 and 2022, were as follows: December 31, 2023 (In millions) Amortized Cost (1) Allowance for Credit Losses Gross Gross Estimated Fair Value U.S. Treasury obligations $ 4,530 $ — $ 4 $ — $ 4,534 MBS: Government Sponsored Enterprises (GSEs) – multifamily 12,500 — 4 (83) 12,421 PLRMBS 1,075 (31) 35 (20) 1,059 Total MBS 13,575 (31) 39 (103) 13,480 Total $ 18,105 $ (31) $ 43 $ (103) $ 18,014 December 31, 2022 (In millions) Amortized Cost (1) Allowance for Credit Losses Gross Gross Estimated Fair Value U.S. Treasury obligations $ 4,012 $ — $ 12 $ — $ 4,024 MBS: GSEs – multifamily 7,562 — 2 (57) 7,507 PLRMBS 1,183 (30) 54 (25) 1,182 Total MBS 8,745 (30) 56 (82) 8,689 Total $ 12,757 $ (30) $ 68 $ (82) $ 12,713 (1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable At December 31, 2023, the amortized cost of the Bank’s MBS classified as AFS included premiums of $58 million, discounts of $191 million, and previous credit losses related to the prior methodology of evaluating credit losses of $312 million for PLRMBS. At December 31, 2022, the amortized cost of the Bank’s MBS classified as AFS included premiums of $52 million, discounts of $113 million, and previous credit losses related to the prior methodology of evaluating credit losses of $351 million for PLRMBS. The following tables summarize the AFS securities with unrealized losses as of December 31, 2023 and 2022. The unrealized losses are aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position. December 31, 2023 Less Than 12 Months 12 Months or More Total (In millions) Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized MBS – GSEs – multifamily $ 7,517 $ 45 $ 3,525 $ 38 $ 11,042 $ 83 PLRMBS 30 1 283 19 313 20 Total $ 7,547 $ 46 $ 3,808 $ 57 $ 11,355 $ 103 December 31, 2022 Less Than 12 Months 12 Months or More Total (In millions) Estimated Gross Estimated Gross Unrealized Estimated Gross Unrealized MBS – GSEs – multifamily $ 6,635 $ 57 $ — $ — $ 6,635 $ 57 PLRMBS 292 17 68 8 360 25 Total $ 6,927 $ 74 $ 68 $ 8 $ 6,995 $ 82 Redemption Terms – The amortized cost and estimated fair value of U.S. Treasury securities classified as AFS by contractual maturity (based on contractual final principal payment) and of MBS classified as AFS as of December 31, 2023 and 2022, are shown below. Expected maturities of MBS classified as AFS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees. December 31, 2023 (In millions) Year of Contractual Maturity Amortized Estimated U.S. Treasury obligations: Due in 1 year or less $ 145 $ 145 Due after 1 year through 5 years 4,385 4,389 Total U.S. Treasury obligations $ 4,530 $ 4,534 MBS 13,575 13,480 Total $ 18,105 $ 18,014 December 31, 2022 (In millions) Year of Contractual Maturity Amortized Estimated U.S. Treasury obligations – Due after 1 year through 5 years $ 4,012 $ 4,024 MBS 8,745 8,689 Total $ 12,757 $ 12,713 Held-to-Maturity Securities. The Bank classifies the following securities as HTM because the Bank has the positive intent and ability to hold these securities to maturity: December 31, 2023 (In millions) Amortized Cost (1) Gross Unrecognized Holding Gains (2) Gross Unrecognized Holding Losses (2) Estimated MBS – Other U.S. obligations – single-family $ 49 $ — $ (1) $ 48 MBS – GSEs: MBS – GSEs – single-family 605 1 (16) 590 MBS – GSEs – multifamily 1,069 — (5) 1,064 Subtotal MBS – GSEs 1,674 1 (21) 1,654 PLRMBS 124 — (8) 116 Total $ 1,847 $ 1 $ (30) $ 1,818 December 31, 2022 (In millions) Amortized Cost (1) Gross Unrecognized Holding Gains (2) Gross Unrecognized Holding Losses (2) Estimated MBS – Other U.S. obligations – single-family $ 72 $ — $ (2) $ 70 MBS – GSEs: MBS – GSEs – single-family 745 1 (22) 724 MBS – GSEs – multifamily 1,209 — (10) 1,199 Subtotal MBS – GSEs 1,954 1 (32) 1,923 PLRMBS 155 — (12) 143 Total $ 2,181 $ 1 $ (46) $ 2,136 (1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $6 million and $5 million at December 31, 2023 and 2022, respectively. (2) Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value. Expected maturities of MBS classified as HTM will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees. At December 31, 2023, the amortized cost of the Bank’s MBS classified as HTM included premiums of $2 million and discounts of $3 million. At December 31, 2022, the amortized cost of the Bank’s MBS classified as HTM included premiums of $3 million and discounts of $4 million. Allowance for Credit Losses on AFS and HTM Securities. The following table presents a rollforward of the allowance for credit losses on PLRMBS classified as AFS for the years ended December 31, 2023, 2022, and 2021. The Bank recorded no allowance for credit losses associated with HTM securities during the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Balance, beginning of the period $ 30 $ 17 $ 21 (Charge-offs)/recoveries (3) (2) (1) Provision for/(reversal of) credit losses 4 15 (3) Balance, end of the period $ 31 $ 30 $ 17 To evaluate investment securities for credit loss at December 31, 2023 and 2022, the Bank employed the following methodologies, based on the type of security. AFS and HTM Securities (Excluding PLRMBS) – The Bank’s AFS and HTM securities are principally U.S. obligations and MBS issued by Ginnie Mae, Freddie Mac, and Fannie Mae that are backed by single-family or multifamily mortgage loans. The Bank only purchases securities considered investment quality. Excluding PLRMBS investments, at December 31, 2023 and 2022, substantially all of AFS securities and HTM securities, based on amortized cost, were rated A, or above, by an NRSRO, based on the lowest long-term credit rating for each security. These may differ from any internal ratings of the securities by the Bank, if applicable. At December 31, 2023 and 2022, certain of the Bank’s AFS and HTM securities were in an unrealized loss position. These losses are considered temporary as the Bank expects to recover the entire amortized cost basis on these investment securities and neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis. Further, the securities: (i) were all highly rated or had short remaining terms to maturity; (ii) had not experienced, nor did the Bank expect, any payment default on the instruments; and (iii) in the case of U.S. Treasury, GSE, or other agency obligations, carry an implicit or explicit government guarantee such that the Bank considers the risk of nonpayment to be zero. As a result, no allowance for credit losses was recorded on these AFS or HTM securities at December 31, 2023 and 2022. Private-Label Residential Mortgage-Backed Securities – The Bank also holds investments in PLRMBS. The Bank has not purchased any PLRMBS since the first quarter of 2008. However, many of these securities have subsequently experienced significant credit deterioration. As of December 31, 2023 and 2022, approximately 4% PLRMBS (AFS and HTM combined, based on amortized cost) were rated A, or above, by an NRSRO; and the remaining securities were either rated less than A, or were unrated. To determine whether an allowance for credit loss is necessary on these securities, the Bank uses cash flow analyses. At each quarter end, the Bank compares the present value of the cash flows expected to be collected on its PLRMBS, using the effective interest rate, to the amortized cost basis of the securities to determine whether a credit loss exists. The expected credit losses are measured using: • expected housing price changes; • expected interest rate assumptions; • the remaining payment terms for the security; • expected default rates based on underlying loan-level borrower and loan characteristics; • loss severities on the collateral supporting each unique PLRMBS based on underlying loan-level borrower and loan characteristics; and • prepayment speeds based on underlying loan-level borrower and loan characteristics. The expected cash flows are based on a number of assumptions and expectations, and the results of these models can vary significantly with changes in these assumptions and expectations. The cash flows determined reflect management’s expectations and include a base case housing price forecast for near- and long-term horizons. For all the PLRMBS in its AFS and HTM portfolios, the Bank does not intend to sell any security and it is not more likely than not that the Bank will be required to sell any security before its anticipated recovery of the remaining amortized cost basis. For PLRMBS with previous credit losses related to the prior methodology of evaluating credit losses (securities for which the Bank determined that it does not expect to recover the entire amortized cost basis), measurement of the credit loss amount for PLRMBS classified as Level 3 as of December 31, 2023, uses significant inputs and assumptions that include, based on unpaid principal balance, the weighted average percentage of prepayment rates of 10.3%; default rates of 7.5%; and loss severities of 51.7%. The weighted average percentage of the related current credit enhancement for these securities, based on unpaid principal balance, was 8.6% as of December 31, 2023. Credit enhancement is defined as the percentage of subordinated tranches, excess spread, and over-collateralization, if any, in a security structure that will generally absorb losses before the Bank will experience a loss on the security. In general, the Bank elects to transfer any PLRMBS that incurred a credit loss during the applicable period from the Bank’s HTM portfolio to its AFS portfolio at their fair values. The Bank transferred PLRMBS from its HTM portfolio to its AFS portfolio with an amortized cost and fair value at the time of the transfer of $2 million during the year ended December 31, 2023. The fair value of the transferred PLRMBS was lower than their amortized cost by a de minimis amount. The Bank transferred PLRMBS from its HTM portfolio to its AFS portfolio with an amortized cost of $17 million and fair value of $20 million at the time of the transfer during the year ended December 31, 2022, and with an amortized cost and fair value of $2 million during the year ended December 31, 2021. For the Bank’s PLRMBS, the Bank recorded a provision for credit losses of $4 million and $15 million during the years ended December 31, 2023 and 2022, respectively. The provisions were recorded largely because of declines in the fair values on its PLRMBS, the present value of expected cash flows of certain PLRMBS affected by higher interest rates, and decreased expectations of the performance of loan collateral underlying these securities. The Bank recorded a reversal of credit losses of $3 million during the year ended December 31, 2021, primarily resulting from lower default rates as well as improved projected credit performance in part related to a more optimistic economic outlook because of the monetary and fiscal stimulus measures taken by the U.S. government. The total net accretion recognized in interest income associated with PLRMBS with previous credit losses related to the prior methodology of evaluating credit losses totaled $34 million, $55 million, and $70 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Advances
Advances | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Advances | Note 5 — Advances The Bank offers a wide range of fixed and adjustable rate advance products with different maturities, interest rates, payment characteristics, and option features. Fixed rate advances generally have maturities ranging from one day to 30 years. Adjustable rate advances generally have maturities ranging from one day to 10 years, with the interest rates resetting periodically at a fixed spread to a specified index. Redemption Terms. The following table presents advances outstanding by redemption term and weighted-average interest rate at December 31, 2023 and 2022. (Dollars in millions) 2023 2022 Redemption Term Amount Outstanding (1) Weighted Amount Outstanding (1) Weighted Overdrawn demand and overnight deposit accounts $ 2 5.15 % $ 2 4.15 % Within 1 year (2) 35,241 4.87 71,050 4.34 After 1 year through 2 years 12,532 3.88 7,634 3.30 After 2 years through 3 years 6,437 3.23 4,036 2.22 After 3 years through 4 years 2,548 3.62 3,391 2.05 After 4 years through 5 years 3,660 4.07 2,815 3.24 After 5 years 1,290 3.71 1,189 3.50 Total par value 61,710 4.38 % 90,117 4.03 % Valuation adjustments for hedging activities (371) (670) Valuation adjustments under fair value option (4) (47) Total $ 61,335 $ 89,400 (1) Carrying amounts exclude accrued interest receivable of $85 million and $241 million at December 31, 2023 and 2022, respectively. (2) Advances outstanding with redemption terms within three months totaled $16.8 billion and $46.3 billion at December 31, 2023 and 2022, respectively. All of the Bank’s advances are prepayable at the borrower’s option. However, when advances are prepaid, the borrower is charged a prepayment fee intended to make the Bank financially indifferent to the borrower’s decision to repay the advance prior to its maturity date, which is required by Finance Agency regulations. In addition, for certain advances with full or partial prepayment symmetry, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. In November 2018, the Bank discontinued offering advances with partial prepayment symmetry. The Bank had advances with full prepayment symmetry outstanding totaling $39.8 billion at December 31, 2023, and $19.2 billion at December 31, 2022. The Bank had advances with partial prepayment symmetry outstanding totaling $209 million at December 31, 2023, and $1.0 billion at December 31, 2022. Some advances may be repaid on specified call dates without prepayment fees (callable advances). The Bank had callable advances outstanding totaling $3.3 billion at December 31, 2023, and $9.8 billion at December 31, 2022. The Bank had putable advances totaling $1.4 billion at December 31, 2023, and $800 million at December 31, 2022. At the Bank’s discretion, the Bank may terminate these advances on predetermined exercise dates and offer replacement funding at prevailing market rates, subject to certain conditions. The Bank would typically exercise such termination rights when interest rates increase relative to contractual rates. The following table summarizes advances at December 31, 2023 and 2022, by the earlier of the year of redemption term or next call date for callable advances and by the earlier of the year of redemption term or next put date for putable advances. Earlier of Redemption Earlier of Redemption (In millions) 2023 2022 2023 2022 Overdrawn demand and overnight deposit accounts $ 2 $ 2 $ 2 $ 2 Within 1 year 35,561 71,370 36,115 71,850 After 1 year through 2 years 12,542 7,634 13,000 7,634 After 2 years through 3 years 6,437 4,046 6,149 3,836 After 3 years through 4 years 2,558 3,391 2,551 3,391 After 4 years through 5 years 3,660 2,825 2,917 2,215 After 5 years 950 849 976 1,189 Total par value $ 61,710 $ 90,117 $ 61,710 $ 90,117 Concentration Risk. The following tables present the concentration in advances to the top 10 borrowers and their affiliates at December 31, 2023 and 2022. The tables also present the interest income from these advances before the impact of interest rate exchange agreements hedging these advances for the years ended December 31, 2023 and 2022. December 31, 2023 (Dollars in millions) Name of Borrower Advances Percentage of Interest (1) Percentage of JPMorgan Chase, National Association (2) $ 23,833 39 % $ 1,018 31 % Western Alliance Bank 6,200 10 199 6 City National Bank 3,000 5 353 11 First Technology Federal Credit Union (3) 2,414 4 132 4 MUFG Union Bank, National Association (4) 2,052 3 153 5 SchoolsFirst Federal Credit Union 1,823 3 48 1 Bank of America California, National Association 1,450 2 68 2 Luther Burbank Savings (3)(5) 1,152 2 44 1 Wells Fargo National Bank West 1,000 2 78 2 First Foundation Bank 900 1 46 1 Subtotal 43,824 71 2,139 64 Others 17,886 29 1,187 36 Total par value $ 61,710 100 % $ 3,326 100 % December 31, 2022 (Dollars in millions) Name of Borrower Advances Percentage of Interest (1) Percentage of Silicon Valley Bank (6) $ 15,000 17 % $ 170 14 % First Republic Bank (subsequently acquired by JPMorgan Chase, National Association) (2) 14,000 16 175 14 City National Bank 10,000 11 69 6 Bank of the West (7) 4,300 5 30 2 MUFG Union Bank, National Association (4) 4,300 5 129 11 Silvergate Bank 4,300 5 38 3 Western Alliance Bank 4,300 5 67 5 First Technology Federal Credit Union (3) 4,195 5 72 6 Wells Fargo National Bank West 2,000 2 24 2 Bank of California, National Association 1,500 1 8 1 Subtotal 63,895 72 782 64 Others 26,222 28 443 36 Total par value $ 90,117 100 % $ 1,225 100 % (1) Interest income amounts exclude the interest effect of interest rate exchange agreements with derivative counterparties; as a result, the total interest income amounts will not agree to the Statements of Income. The amount of interest income from advances can vary depending on the amount outstanding, terms to maturity, interest rates, and repricing characteristics. (2) On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) closed First Republic Bank and appointed the FDIC as receiver. On the same date, the FDIC transferred all of the deposits and substantially all of the assets of First Republic Bank, including $28.1 billion in advances outstanding from the Bank, to JPMorgan Chase, National Association, a nonmember. These advances outstanding are fully collateralized and are not expected to result in any credit loss to the Bank. (3) An officer or director of the member was a Bank director during 2023 and 2022. (4) On December 1, 2022, U.S. Bancorp, a nonmember, announced that it completed its acquisition of MUFG Union Bank, National Association. (5) On November 14, 2022, Luther Burbank Savings and Washington Federal Bank (a nonmember bank) announced the signing of a definitive merger agreement pursuant to which Washington Federal Bank will acquire Luther Burbank Savings, subject to receipt of regulatory and shareholder approval. On May 5, 2023, it was announced that merger approval was received from shareholders of both banks. On February 29, 2024, it was announced that the merger was completed. On the same date, Washington Federal Bank assumed all of the assets and liabilities of Luther Burbank Savings, including $1.2 billion in advances outstanding from the Bank. These advances outstanding are fully collateralized and are not expected to result in any credit loss to the Bank. (6) On March 10, 2023, Silicon Valley Bank was closed by the California DFPI and the FDIC was named as receiver. The FDIC created Silicon Valley Bridge Bank, N.A., whereby all of the deposits and substantially all assets of Silicon Valley Bank were transferred to the bridge bank. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all the deposits and loans of Silicon Valley Bridge Bank, N.A., with First Citizens Bank and Trust Company. Silicon Valley Bank is no longer a member of the Bank. As of March 31, 2023, Silicon Valley Bridge Bank, N.A., had prepaid all outstanding advances to the Bank. (7) On February 1, 2023, BMO Harris, a nonmember, announced that it completed its acquisition of Bank of the West. Credit Risk Exposure and Security Terms. The Bank manages its credit exposure related to advances through an integrated approach that provides for a credit limit to be established for each borrower, includes an ongoing review of each borrower’s financial condition, and is coupled with conservative collateral and lending policies to limit the risk of loss. In addition, the Bank lends to member financial institutions that have their principal place of business in Arizona, California, or Nevada, in accordance with federal law and Finance Agency regulations. Specifically, the Bank is required to obtain sufficient collateral to fully secure credit products up to the member’s total credit limit. Borrowers may pledge the following eligible assets to secure advances: • one-to-four-family first lien residential mortgage loans; • securities issued, insured, or guaranteed by the U.S. government or any of its agencies, including without limitation MBS backed by Fannie Mae, Freddie Mac, or Ginnie Mae; • cash or deposits in the Bank; • certain other real estate-related collateral, such as certain privately issued MBS, multifamily loans, commercial real estate loans, and second lien residential mortgage loans or home equity loans; and • small business, small farm, and small agribusiness loans that are fully secured by collateral (such as real estate, equipment and vehicles, accounts receivable, and inventory) from members that are community financial institutions. The Bank has advances outstanding to former members and member successors, which are subject to the security terms above. The Bank requires each borrowing member to execute a written Advances and Security Agreement, which describes the lending relationship between the Bank and the borrower. At December 31, 2023 and 2022, the Bank had a perfected security interest in collateral pledged by each borrowing member, or by the member's affiliate on behalf of the member, and by each nonmember borrower, with an estimated value in excess of the outstanding credit products for that borrower. Based on the financial condition of the borrower, the Bank may either (i) allow the borrower or the pledging affiliate to retain physical possession of loan collateral pledged to the Bank, provided that the borrower or the pledging affiliate agrees to hold the collateral for the benefit of the Bank, or (ii) require the borrower or the pledging affiliate to deliver physical possession of loan collateral to the Bank or its custodial agent. All securities collateral is required to be delivered to the Bank’s custodial agent. All loan collateral pledged to the Bank is subject to a Uniform Commercial Code-1 financing statement. Section 10(e) of the FHLBank Act affords any security interest granted to the Bank by a member or any affiliate of the member or any nonmember borrower priority over claims or rights of any other party, except claims or rights that (i) would be entitled to priority under otherwise applicable law and (ii) are held by bona fide purchasers for value or secured parties with perfected security interests. At December 31, 2023 and 2022, none of the Bank’s credit products were past due or on nonaccrual status. There were no modifications to credit products related to borrowers experiencing financial difficulty during the years ended December 31, 2023 and 2022. Based on the collateral pledged as security for advances, the Bank’s credit analyses of borrowers’ financial condition, repayment history on advances, and the Bank’s credit extension and collateral policies as of December 31, 2023, the Bank expects to collect all amounts due according to the contractual terms. Therefore, no allowance for credit losses on advances was deemed necessary by the Bank as of December 31, 2023 and 2022. Interest Rate Payment Terms. Interest rate payment terms for advances at December 31, 2023 and 2022, are detailed below: (In millions) 2023 2022 Par value of advances: Fixed rate: Due within 1 year $ 23,866 $ 47,621 Due after 1 year 26,467 18,050 Total fixed rate 50,333 65,671 Adjustable rate: Due within 1 year 11,377 23,431 Due after 1 year — 1,015 Total adjustable rate 11,377 24,446 Total par value $ 61,710 $ 90,117 |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Mortgage Loans Held for Portfolio | Note 6 — Mortgage Loans Held for Portfolio Mortgage loans held for portfolio consist of single-family mortgage loans purchased from participating financial institutions under the MPF program. The following table presents information as of December 31, 2023 and 2022, on mortgage loans held for portfolio, all of which are secured by one- to four-unit residential properties and single-unit homes. (In millions) 2023 2022 Fixed rate medium-term mortgage loans $ 12 $ 14 Fixed rate long-term mortgage loans 704 761 Subtotal 716 775 Unamortized premiums 41 43 Unamortized discounts (2) (2) Mortgage loans held for portfolio (1) 755 816 Less: Allowance for credit losses (1) (1) Total mortgage loans held for portfolio, net $ 754 $ 815 (1) Excludes accrued interest receivable of $5 million at December 31, 2023 and 2022. Medium-term loans have original contractual terms of 15 years or less, and long-term loans have contractual terms of more than 15 years. Payment Status of Mortgage Loans. Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. A past due loan is one where the borrower has failed to make a scheduled full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure. The following tables present the payment status for mortgage loans and other delinquency statistics for the Bank’s mortgage loans at December 31, 2023 and 2022. (Dollars in millions) Payment Status, at Amortized Cost (1) 2023 2022 30 – 59 days delinquent $ 5 $ 9 60 – 89 days delinquent 4 3 90 days or more delinquent 16 19 Total past due 25 31 Total current loans 730 785 Total mortgage loans held for portfolio $ 755 $ 816 In process of foreclosure, included above (2) $ 2 $ 3 Nonaccrual loans (3) $ 16 $ 19 Serious delinquencies as a percentage of total mortgage loans outstanding (4) 2.17 % 2.30 % (1) The amortized cost in a loan is the unpaid principal balance of the loan, adjusted for net deferred loan fees or costs, unamortized premiums or discounts, and direct write-downs. (2) Includes loans for which the servicer has reported a decision to foreclose or to pursue a similar alternative, such as deed-in-lieu. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status. (3) At December 31, 2023 and 2022, $5 million and $7 million, respectively, of mortgage loans on nonaccrual status did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans. (4) Represents loans that are 90 days or more past due or in the process of foreclosure as a percentage of the recorded investment of total mortgage loans outstanding. Allowance for Credit Losses on Mortgage Loans Held for Portfolio. Mortgage loans held for portfolio are evaluated on a loan-level basis for expected credit losses, factoring in the credit enhancement structure at the master commitment level. The Bank determines its allowance for credit losses on mortgage loans held for portfolio through analyses that include consideration of various loan portfolio and collateral related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. The Bank uses models that employ a variety of methods, such as projected cash flows, to estimate expected credit losses over the life of the loans. These models rely on a number of inputs, such as current and forecasted property values and interest rates as well as historical borrower behavior experience. At December 31, 2023, the Bank’s reasonable and supportable forecast of housing prices expects, on average, for prices to appreciate 1.3% over a one-year forecast horizon before reverting to long-term housing price appreciation rates of 4.0% after five additional years in the forecast based on historical averages. At December 31, 2022, the Bank’s reasonable and supportable forecast of housing prices expected, on average, for prices to depreciate 0.7% over a one-year forecast horizon before reverting to long-term housing price appreciation rates of 4.0% after five additional years in the forecast based on historical averages. The Bank also incorporates associated credit enhancements, if any, to determine its estimate of expected credit losses. Certain mortgage loans held for portfolio may be evaluated for credit losses by the Bank using the practical expedient for collateral-dependent assets. A mortgage loan is considered collateral-dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. The Bank may estimate the fair value of this collateral by applying an appropriate loss severity rate or using third-party estimates or property valuation models. The expected credit loss of a collateral-dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. The Bank will either reserve for these estimated losses or record a direct charge-off of the loan balance, if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit loss. At both December 31, 2023 and 2022, the allowance for credit losses on the mortgage loan portfolio was $1 million. The amount of charge-offs and recoveries of allowance for credit losses on the mortgage loan portfolio were de minimis for the years ended December 31, 2023, 2022, and 2021. For more information related to the Bank’s accounting policies for mortgage loans held for portfolio, see “Note 1 – Summary of Significant Accounting Policies.” |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Note 7 — Deposits The Bank maintains demand deposit accounts that are directly related to the extension of credit to members and offers short-term deposit programs to members and qualifying nonmembers. In addition, a member that services mortgage loans held for portfolio may deposit in the Bank funds collected in connection with the mortgage loans, pending disbursement of these funds to the owners of the mortgage loans. The Bank classifies these types of deposits as non-interest-bearing deposits. Deposits classified as demand, overnight, and other pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit. Deposits and interest rate payment terms for deposits as of December 31, 2023 and 2022, were as follows: 2023 2022 (Dollars in millions) Amount Weighted Amount Weighted Interest-bearing deposits (adjustable rate) $ 957 5.15 % $ 983 4.15 % Non-interest-bearing deposits 5 6 Total $ 962 $ 989 |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | Note 8 — Consolidated Obligations Consolidated obligations, consisting of bonds and discount notes, are jointly issued by the Federal Home Loan Banks (FHLBanks) through the Office of Finance, which serves as the FHLBanks’ agent. As provided by the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act) or by regulations governing the operations of the FHLBanks, all FHLBanks have joint and several liability for all FHLBank consolidated obligations. For a discussion of the joint and several liability regulation, see “Note 15 – Commitments and Contingencies.” In connection with each issuance of consolidated obligations, each FHLBank specifies the type, term, and amount of debt it requests to have issued on its behalf. The Office of Finance tracks the amount of debt issued on behalf of each FHLBank. In addition, the Bank separately tracks and records as a liability its specific portion of the consolidated obligations issued and is the primary obligor for that portion of the consolidated obligations issued. The Finance Agency and the U.S. Secretary of the Treasury have oversight over the issuance of FHLBank debt through the Office of Finance. Consolidated obligation bonds may be issued to raise short-, intermediate-, and long-term funds for the FHLBanks. The maturity of consolidated obligation bonds generally ranges from 6 months to 15 years, but the maturity is not subject to any statutory or regulatory limits. Consolidated obligation discount notes are primarily used to raise short-term funds. These notes are issued at less than their face amount and redeemed at par value when they mature. Regulations require the FHLBanks to maintain, for the benefit of investors in consolidated obligations, in the aggregate, unpledged qualifying assets in an amount equal to the consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; assets with an assessment or credit rating at least equivalent to the current assessment or credit rating of the consolidated obligations; obligations, participations, mortgages, or other securities of or issued by the United States or an agency of the United States; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. Any assets subject to a lien or pledge for the benefit of holders of any issue of consolidated obligations are treated as if they were free from lien or pledge for the purposes of compliance with these regulations. At December 31, 2023, the Bank had qualifying assets totaling $91.8 billion, and the Bank’s participation in consolidated obligations outstanding was $83.5 billion. General Terms. Consolidated obligations are generally issued with either fixed rate payment terms or adjustable rate payment terms. In addition, to meet the specific needs of certain investors, fixed rate and adjustable rate consolidated obligation bonds may contain certain embedded features, such as call options and complex coupon payment terms. In general, when such consolidated obligation bonds are issued for which the Bank is the primary obligor, the Bank simultaneously enters into interest rate exchange agreements containing offsetting features to, in effect, convert the terms of the bond to the terms of a simple adjustable rate bond. In addition to having fixed rate or simple adjustable rate coupon payment terms, consolidated obligations may, for example, include: • Callable bonds, which the Bank may call at its option on predetermined call dates according to the terms of the bond offerings; • Step-up callable bonds, which pay interest at increasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-up dates according to the terms of the bond offerings; • Step-down callable bonds, which pay interest at decreasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-down dates according to the terms of the bond offerings; • Conversion callable bonds, which have coupon rates that convert from fixed to adjustable or from adjustable to fixed on predetermined dates and can generally be called at the Bank’s option on predetermined call dates according to the terms of the bond offerings. Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds at December 31, 2023 and 2022. (Dollars in millions) 2023 2022 Contractual Maturity Amount Weighted Amount Weighted Within 1 year $ 42,821 4.84 % $ 58,301 4.05 % After 1 year through 2 years 13,105 4.70 8,268 2.30 After 2 years through 3 years 5,938 1.34 2,317 1.26 After 3 years through 4 years 1,345 1.75 5,473 0.99 After 4 years through 5 years 942 2.98 1,255 1.47 After 5 years 826 2.35 1,293 1.73 Total par value 64,977 4.37 % 76,907 3.47 % Unamortized premiums — 1 Unamortized discounts (6) (5) Valuation adjustments for hedging activities (645) (1,083) Fair value option valuation adjustments (29) (52) Total $ 64,297 $ 75,768 The Bank’s participation in consolidated obligation bonds outstanding includes callable bonds. When a callable bond for which the Bank is the primary obligor is issued, the Bank may simultaneously enter into an interest rate swap (wherein the Bank pays a variable rate and receives a fixed rate) with a call feature that mirrors the call option embedded in the bond (a sold callable option in a swap). The combined callable swaps and callable bonds enable the Bank to meet its funding needs at lower costs relative to similar tenor non-callable debt, while effectively converting the Bank’s net payment to an adjustable rate. The Bank’s participation in consolidated obligation bonds at December 31, 2023 and 2022, was as follows: (In millions) 2023 2022 Par value of consolidated obligation bonds: Non-callable $ 38,945 $ 57,164 Callable 26,032 19,743 Total par value $ 64,977 $ 76,907 The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding at December 31, 2023 and 2022, by the earlier of the year of contractual maturity or next call date. (In millions) Earlier of Contractual 2023 2022 Within 1 year $ 55,291 $ 73,049 After 1 year through 2 years 9,160 3,310 After 2 years through 3 years 378 187 After 3 years through 4 years 100 313 After 4 years through 5 years 12 — After 5 years 36 48 Total par value $ 64,977 $ 76,907 The Bank’s participation in consolidated obligation discount notes, all of which are due within one year, was as follows: 2023 2022 (Dollars in millions) Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Par value $ 19,321 5.23 % $ 36,159 4.13 % Unamortized discounts (134) (230) Total $ 19,187 $ 35,929 (1) Represents yield to maturity excluding concession fees. Interest Rate Payment Terms. Interest rate payment terms for consolidated obligation bonds at December 31, 2023 and 2022, are detailed in the following table. (In millions) 2023 2022 Par value of consolidated obligation bonds: Fixed rate $ 37,464 $ 25,632 Adjustable rate 26,880 48,997 Step-up 633 2,278 Total consolidated obligation bonds, par value $ 64,977 $ 76,907 |
Affordable Housing Program
Affordable Housing Program | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Affordable Housing Program [Text Block] | Note 9 — Affordable Housing Program The FHLBank Act requires each FHLBank to establish an AHP. Each FHLBank provides subsidies to members, which use the funds to assist in the purchase, construction, or rehabilitation of housing for households earning up to 80% of the median income for the area in which they live. Subsidies may be in the form of direct grants or below-market interest rate advances. Annually, the FHLBanks must set aside for their AHPs, in the aggregate, the greater of $100 million or 10% of the current year's net earnings (income before interest expense related to dividends paid on mandatorily redeemable capital stock and the assessment for AHP). The Bank accrues its AHP assessment monthly based on its net earnings. If the Bank experienced a net loss during a quarter but still had net earnings for the year, the Bank’s obligation to the AHP would be calculated based on the Bank’s year-to-date net earnings. If the Bank had net earnings in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation. If the Bank experienced a net loss for a full year, the amount of the AHP liability would be equal to zero, since each FHLBank’s required annual AHP contribution is limited to its annual net earnings. However, if the result of the aggregate 10% calculation is less than $100 million for the FHLBanks combined, then the FHLBank Act requires that each FHLBank contribute such prorated sums as may be required to ensure that the aggregate contribution of the FHLBanks equals $100 million. The proration would be made on the basis of an FHLBank’s income in relation to the income of all the FHLBanks for the previous year. There was no AHP shortfall, as described above, in 2023, 2022, or 2021. If an FHLBank finds that its required AHP assessments are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. The Bank did not make such an application in 2023, 2022, or 2021. The Bank’s total AHP assessments are charged to earnings each year and recognized as a liability. As subsidies are disbursed, the AHP liability is reduced. The AHP liability was as follows: (In millions) 2023 2022 2021 Balance, beginning of the period $ 111 $ 115 $ 120 AHP assessments 63 36 32 AHP grant payments (41) (40) (37) Balance, end of the period $ 133 $ 111 $ 115 All subsidies were distributed in the form of direct grants in 2023, 2022, and 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | Note 10 — Accumulated Other Comprehensive Income/(Loss) The following table summarizes the changes in AOCI for the years ended December 31, 2023, 2022, and 2021: (In millions) Net Unrealized Gain/(Loss) on AFS Securities Pension and Postretirement Benefits Total Balance, December 31, 2020 $ 244 $ (14) $ 230 Other comprehensive income/(loss): Net change in pension and postretirement benefits 5 5 Net change in fair value 96 96 Net current period other comprehensive income/(loss) 96 5 101 Balance, December 31, 2021 $ 340 $ (9) $ 331 Other comprehensive income/(loss): Net change in pension and postretirement benefits (6) (6) Net change in fair value (354) (354) Net current period other comprehensive income/(loss) (354) (6) (360) Balance, December 31, 2022 $ (14) $ (15) $ (29) Other comprehensive income/(loss): Net change in pension and postretirement benefits 4 4 Net change in fair value (47) (47) Net current period other comprehensive income/(loss) (47) 4 (43) Balance, December 31, 2023 $ (61) $ (11) $ (72) |
Capital
Capital | 12 Months Ended |
Dec. 31, 2023 | |
Banking Regulation, Total Capital [Abstract] | |
Capital | Note 11 — Capital Capital Requirements. The Bank issues a single class of capital stock, Class B stock, with a par value of $100 per share, which may be redeemed (subject to certain conditions) upon five years' notice by the member to the Bank. In addition, at its discretion, under certain conditions, the Bank may repurchase excess stock at any time. (See “Excess Stock” below for more information.) The Bank’s capital stock may be issued, redeemed, and repurchased only at its stated par value, subject to certain statutory and regulatory requirements. The Bank may only redeem or repurchase capital stock from a shareholder if, following the redemption or repurchase, the shareholder will continue to meet its minimum capital stock requirement and the Bank will continue to meet its regulatory requirements for total capital, leverage capital, and risk-based capital. Under the Housing and Economic Recovery Act of 2008, the Director of the Finance Agency is responsible for setting the risk-based capital standards for the FHLBanks. The FHLBank Act and regulations governing the operations of the FHLBanks require that the Bank’s minimum capital stock requirement for shareholders must be sufficient to enable the Bank to meet its regulatory requirements for total capital, leverage capital, and risk-based capital. The Bank must maintain: (i) total regulatory capital in an amount equal to at least 4% of its total assets, (ii) leverage capital in an amount equal to at least 5% of its total assets, and (iii) permanent capital in an amount that is greater than or equal to its risk-based capital requirement. The Finance Agency requires each FHLBank to maintain a ratio of at least 2% of capital stock to total assets in order to help preserve the cooperative structure incentives that encourage members to remain fully engaged in the oversight of their investment in the FHLBank. The Finance Agency will consider the proportion of capital stock to assets, measured on a daily average basis at monthend, when assessing each FHLBank’s capital management practices. As of December 31, 2023 and 2022, the Bank complied with this capital guidance. Because the Bank issues only Class B stock, regulatory capital and permanent capital for the Bank are both composed of retained earnings and Class B stock, including mandatorily redeemable capital stock (which is classified as a liability for financial reporting purposes). Regulatory capital and permanent capital do not include AOCI. Leverage capital is defined as the sum of permanent capital, weighted by a 1.5 multiplier, plus non-permanent capital. The risk-based capital requirement is equal to the sum of the Bank’s credit risk, market risk, and operational risk capital requirements, all of which are calculated in accordance with the rules and regulations of the Finance Agency. The Finance Agency may require an FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined. As of December 31, 2023 and 2022, the Bank complied with these capital rules and requirements as shown in the following table. 2023 2022 (Dollars in millions) Required Actual Required Actual Risk-based capital $ 1,210 $ 7,446 $ 898 $ 7,757 Total regulatory capital $ 3,713 $ 7,446 $ 4,842 $ 7,757 Total regulatory capital ratio 4.00 % 8.02 % 4.00 % 6.41 % Leverage capital $ 4,641 $ 11,169 $ 6,053 $ 11,636 Leverage ratio 5.00 % 12.03 % 5.00 % 9.61 % The Bank’s capital plan requires each shareholder to own capital stock in an amount equal to the greater of its membership capital stock requirement or its activity-based capital stock requirement. The Bank may adjust these requirements from time to time within ranges established in the capital plan. Any changes to the capital plan must be approved by the Bank’s board of directors (Board) and the Finance Agency. A member's membership capital stock requirement is 1% of its membership asset value. The membership capital stock requirement for a member is capped at $15 million. The Bank may adjust the membership capital stock requirement for all members within a range of 0.5% to 1.5% of a member's membership asset value and may adjust the cap for all members within an authorized range of $10 million to $50 million. A member's membership asset value is determined by multiplying the amount of the member's membership assets by the applicable membership asset factors as determined by the Bank. Membership assets are generally defined as assets (other than Bank capital stock) of a type that could qualify as collateral to secure a member's indebtedness to the Bank under applicable law, whether or not the assets are pledged to the Bank or accepted by the Bank as eligible collateral. The activity-based capital stock requirement is the sum of 2.7% of the member's outstanding advances, plus 0.1% of notional balances for outstanding letters of credit, plus 0.0% of any portion of any mortgage loan purchased and held by the Bank. The Bank may adjust the activity-based capital stock requirement for all members within ranges established in the capital plan of 2.0% to 5.0% of the member's outstanding advances, 0.1% to 1.0% of the member’s notional balances of outstanding letters of credit, and 0.0% to 5.0% of any portion of any mortgage loan purchased and held by the Bank. Any member may withdraw from membership and, subject to certain statutory and regulatory restrictions, have its capital stock redeemed after giving the required notice. Members that withdraw from membership may not reapply for membership for five years, in accordance with Finance Agency rules. Mandatorily Redeemable Capital Stock. The Bank has a cooperative ownership structure under which members, former members, and certain other nonmembers own the Bank’s capital stock. Former members and certain other nonmembers are required to maintain their investment in the Bank's capital stock until their outstanding transactions are paid off or until their capital stock is redeemed following the relevant five-year redemption period for capital stock or is repurchased by the Bank, in accordance with the Bank's capital requirements. Capital stock cannot be issued, repurchased, redeemed, or transferred except between the Bank and its members (or their affiliates and successors) at the capital stock's par value of $100 per share. The Bank will not redeem or repurchase capital stock required to meet the minimum capital stock requirement until five years after the member's membership is terminated or after the Bank receives notice of the member's withdrawal, and the Bank will redeem or repurchase only the amounts that are in excess of the capital stock required to support activity (advances and letters of credit) that may remain outstanding after the five-year redemption period has expired. In both cases, the Bank will only redeem or repurchase capital stock if certain statutory and regulatory conditions are met. In accordance with the Bank’s current practice, if activity-based capital stock becomes excess stock because an activity no longer remains outstanding, the Bank may repurchase the excess activity-based capital stock at its discretion, subject to certain statutory and regulatory conditions. See Note 1 – Summary of Significant Accounting Policies for more information. The Bank had mandatorily redeemable capital stock totaling $706 million outstanding to six institutions at December 31, 2023, and $5 million outstanding to three institutions at December 31, 2022. These amounts have been classified as a liability on the Bank’s Statements of Condition. The changes in mandatorily redeemable capital stock for the years ended December 31, 2023, 2022, and 2021 were as follows: (In millions) 2023 2022 2021 Balance at the beginning of the period $ 5 $ 3 $ 2 Reclassified from/(to) capital during the period 1,252 46 25 Repurchase/redemption (551) (44) (24) Balance at the end of the period $ 706 $ 5 $ 3 Cash dividends on mandatorily redeemable capital stock were recorded as interest expense of $32 million for the year ended December 31, 2023, and de minimis amounts for the years ended December 31, 2022 and 2021. The following table presents mandatorily redeemable capital stock amounts by contractual year of redemption at December 31, 2023 and 2022. (In millions) Contractual Year of Redemption 2023 2022 Year 3 $ 1 $ — Year 4 2 1 Year 5 702 3 Past contractual redemption date because of remaining activity (1) 1 1 Total $ 706 $ 5 (1) Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. A member may cancel its notice of redemption or notice of withdrawal from membership by providing written notice to the Bank prior to the end of the relevant five-year redemption period or the membership termination date. If the Bank receives the notice of cancellation within 30 months following the notice of redemption or notice of withdrawal, the member is charged a fee equal to fifty cents multiplied by the number of shares of capital stock affected. If the Bank receives the notice of cancellation more than 30 months following the notice of redemption or notice of withdrawal (or if the Bank does not redeem the member's capital stock because following the redemption the member would fail to meet its minimum capital stock requirement), the member is charged a fee equal to one dollar multiplied by the number of shares of capital stock affected. In certain cases, the board of directors may waive a cancellation fee for bona fide business purposes. The Bank’s capital stock is considered putable by the shareholder. There are significant statutory and regulatory restrictions on the Bank’s obligation or ability to redeem outstanding capital stock, which include the following: • The Bank may not redeem any capital stock if, following the redemption, the Bank would fail to meet its minimum capital requirements for total capital, leverage capital, and risk-based capital. All of the Bank’s capital stock immediately becomes nonredeemable if the Bank fails to meet its minimum capital requirements. • The Bank may not be able to redeem any capital stock if either its board of directors or the Finance Agency determines that it has incurred or is likely to incur losses resulting in or expected to result in a charge against capital that would have any of the following effects: cause the Bank not to comply with its regulatory capital requirements, result in negative retained earnings, or otherwise create an unsafe and unsound condition at the Bank. • In addition to being able to prohibit capital stock redemptions, the Bank’s board of directors has a right to call for additional capital stock purchases by its members, as a condition of continuing membership, as needed for the Bank to satisfy its statutory and regulatory capital requirements. • If, during the period between receipt of a capital stock redemption notice and the actual redemption (a period that could last indefinitely), the Bank becomes insolvent and is either liquidated or merged with another FHLBank, the redemption value of the capital stock will be established either through the liquidation or the merger process. If the Bank is liquidated, after satisfaction of the Bank’s obligations to creditors and to the extent funds are then available, each shareholder will be entitled to receive the par value of its capital stock as well as any retained earnings in an amount proportional to the shareholder's share of the total shares of capital stock, subject to any limitations that may be imposed by the Finance Agency. In the event of a merger or consolidation, the board of directors will determine the rights and preferences of the Bank's shareholders, subject to any terms and conditions imposed by the Finance Agency. • The Bank may not redeem any capital stock if the principal or interest due on any consolidated obligations issued by the Office of Finance has not been paid in full. • The Bank may not redeem any capital stock if the Bank fails to provide the Finance Agency with the quarterly certification required by Finance Agency rules prior to declaring or paying dividends for a quarter. • The Bank may not redeem any capital stock if the Bank is unable to provide the required quarterly certification, projects that it will fail to comply with statutory or regulatory liquidity requirements or will be unable to fully meet all of its obligations on a timely basis, actually fails to satisfy these requirements or obligations, or negotiates to enter or enters into an agreement with another FHLBank to obtain financial assistance to meet its current obligations. Mandatorily redeemable capital stock is considered capital for determining the Bank's compliance with its regulatory capital requirements. Based on Finance Agency interpretation, the classification of certain shares of the Bank’s capital stock as mandatorily redeemable does not affect the definition of total capital for purposes of: determining the Bank’s compliance with its regulatory capital requirements, calculating its mortgage-backed securities investment authority (300% of total capital), calculating its unsecured credit exposure to other GSEs (limited to 100% of total capital), or calculating its unsecured credit limits to other counterparties (various percentages of total capital depending on the rating of the counterparty). Excess Stock Repurchase, Retained Earnings, and Dividend Framework. The Bank’s Excess Stock Repurchase, Retained Earnings, and Dividend Framework (Framework) assesses the level and adequacy of retained earnings and establishes amounts to be retained in restricted retained earnings, which are not made available in the current dividend period, and maintains an amount of total retained earnings at least equal to its required retained earnings as described in the Framework. The methodology may be revised from time to time, and the required level of required retained earnings under the methodology may change due to updating data and assumptions used in the methodology. In January 2024, the required level of retained earnings was decreased from $2.6 billion to $1.6 billion attributable to lower non-MBS investments and projected advance balances. The Bank’s retained earnings requirement may be changed at any time. The Board periodically reviews the retained earnings methodology and analysis to determine whether any adjustments are appropriate. In September 2023, the Board approved an updated Framework and dividend philosophy to reflect changes in the current interest rate environment and business conditions. The Framework includes a dividend philosophy to endeavor to pay a quarterly dividend rate that is equal to or greater than the current market rate for a highly rated investment (e.g., SOFR) and that is sustainable under current and projected earnings while maintaining appropriate levels of capital. The decision to declare any dividend and the dividend rate is at the discretion of the Bank’s Board, which may choose to follow or not follow the dividend philosophy as guidance in the dividend declaration. The Board may also revise or eliminate the dividend philosophy in the future. The Bank’s historical dividend rates and the dividend philosophy are not indicative of future dividend declarations. The Bank satisfies its retained earnings requirement with both restricted retained earnings (i.e., amounts related to the Joint Capital Enhancement (JCE) Agreement) and unrestricted retained earnings. In accordance with the JCE Agreement, each FHLBank is required to reclassify an amount equal to 20% of its net income each quarter to a separate restricted retained earnings account until the balance of the account, calculated as of the last day of each calendar quarter, equals at least 1% of that FHLBank's average balance of outstanding consolidated obligations for the calendar quarter. Under the JCE Agreement, these restricted retained earnings will not be available to pay dividends. The JCE Agreement also provides that amounts in restricted retained earnings in excess of 150% of the Bank’s restricted retained earnings minimum may be released from restricted retained earnings. Dividend Payments – Finance Agency rules state that FHLBanks may declare and pay dividends only from previously retained earnings or current net earnings and may not declare or pay dividends based on projected or anticipated earnings. In addition, Finance Agency rules do not permit the Bank to pay dividends in the form of capital stock if its excess stock exceeds 1% of its total assets. Excess stock is defined as the aggregate of the capital stock held by each shareholder in excess of its minimum capital stock requirement, as established by the Bank’s capital plan. Excess stock totaled $118 million, or 0.13% of total assets as of December 31, 2023. Excess stock totaled $157 million, or 0.13% of total assets as of December 31, 2022. In 2023, the Bank paid dividends at an annualized rate of 7.49%, totaling $275 million, including $243 million in dividends on capital stock and $32 million in dividends on mandatorily redeemable capital stock. In 2022 and 2021, the Bank paid dividends on capital stock at an annualized rate of 6.30%, totaling $161 million, and 5.74%, totaling $135 million, respectively. A de minimis amount of dividends were paid on mandatorily redeemable capital stock in 2022 and 2021. For the periods referenced above, the Bank paid dividends in cash. Dividends on capital stock are recognized as dividends on the Statements of Capital Accounts, and dividends on mandatorily redeemable capital stock are recognized as interest expense on the Statements of Income. On February 21, 2024, the Bank’s board of directors declared a quarterly cash dividend on the capital stock outstanding during the fourth quarter of 2023 at an annualized rate of 8.75%, totaling $69 million. The Bank expects to pay the dividend on March 14, 2024. Excess Stock – The Bank’s capital plan provides that the Bank may repurchase some or all of a shareholder’s excess stock at the Bank’s discretion, subject to certain statutory and regulatory requirements. The Bank may also repurchase all of a member’s excess stock at a member’s request, at the Bank’s discretion, subject to certain statutory and regulatory requirements. A shareholder’s excess stock is defined as any capital stock holdings in excess of the shareholder’s minimum capital stock requirement, as established by the Bank’s capital plan. The Bank’s practice is to repurchase the surplus capital stock of all members and the excess stock of all former members on a daily schedule. Surplus capital stock is defined as any stock holdings in excess of 115% of a member’s minimum stock requirement. The Bank calculates the amount of stock to be repurchased each business day based on the shareholder’s capital stock outstanding after all stock transactions are completed for the day, ensuring that each shareholder would continue to meet its minimum capital stock requirement after the repurchase. The Bank may change this practice at any time. The Bank repurchased $3.8 billion, $5.0 billion, and $1.6 billion in excess stock during 2023, 2022, and 2021, respectively. The Bank is required to redeem any mandatorily redeemable capital stock that is in excess of a former member’s minimum stock requirement on or after the expiration of the five-year redemption date. During 2023 and 2022, the Bank redeemed a de minimis amount in mandatorily redeemable capital stock, for which the five-year redemption period had expired, at its $100 par value per share. During 2021, the Bank redeemed $1 million of mandatorily redeemable capital stock, for which the five-year redemption period had expired, at its $100 par value per share. The stock was redeemed on the scheduled redemption dates or, for stock that was not excess stock on its scheduled redemption date because of outstanding activity with the Bank, on the first available repurchase date after the stock was no longer required to support outstanding activity with the Bank. Concentration. The following table presents the concentration in capital stock held by institutions whose capital stock ownership represented 10% or more of the Bank’s outstanding capital stock, including mandatorily redeemable capital stock, as of December 31, 2023 or 2022: 2023 2022 (Dollars in millions) Capital Stock Outstanding Percentage of Total Capital Stock Outstanding Capital Stock Outstanding Percentage of Total Capital Stock Outstanding JPMorgan Chase, National Association/First Republic Bank (1) $ 643 20 % $ 379 10 % Silicon Valley Bank (2) — — 418 11 (1) On May 1, 2023, the California DFPI closed First Republic Bank and appointed the FDIC as receiver. On the same date, the FDIC transferred all of the deposits and substantially all of the assets of First Republic Bank, including the advances outstanding from the Bank, to JPMorgan Chase, National Association, a nonmember. Upon assumption of the advances outstanding by JPMorgan Chase, National Association, the Bank transferred $759 million of capital stock of the Bank, held by First Republic Bank, to JPMorgan Chase, National Association, and reclassified that capital stock to mandatorily redeemable as a liability in the Bank’s Statements of Condition. (2) On March 10, 2023, the FDIC was appointed as receiver for Silicon Valley Bank. On March 14, 2023, the FDIC transferred all of the deposits and substantially all of the assets of Silicon Valley Bank to Silicon Valley Bridge Bank, National Association. The FDIC created Silicon Valley Bridge Bank, N.A., whereby all of the deposits and substantially all assets of Silicon Valley Bank were transferred to the bridge bank. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all the deposits and loans of Silicon Valley Bridge Bank, N.A., with First Citizens Bank and Trust Company. Silicon Valley Bank is no longer a member of the Bank. As of March 31, 2023, Silicon Valley Bridge Bank, N.A., had prepaid all outstanding advances to the Bank. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 13 — Derivatives and Hedging Activities General . The Bank may enter into interest rate swaps (including callable, putable, and basis swaps) and cap and floor agreements (collectively, interest rate exchange agreements or derivatives). Most of the Bank’s interest rate exchange agreements are executed in conjunction with the origination of advances, the issuance of consolidated obligations, or the investment in fixed rate assets to create variable rate structures. The interest rate exchange agreements are generally executed at the same time the advances, consolidated obligations, and investments are transacted and generally have the same maturity dates as the related hedged instrument. The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. Derivatives may be either uncleared or cleared. In an uncleared derivative transaction, the Bank’s counterparty is the executing bank or broker-dealer. In a cleared derivative transaction, the Bank may execute the transaction with an executing bank or broker-dealer, either on or off a swap execution facility, but in either case, the Bank’s counterparty is a derivatives clearing organization (clearing house) once the derivative transaction has been accepted for clearing. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit. Additional uses of interest rate exchange agreements include: (i) offsetting embedded features in assets and liabilities, (ii) hedging anticipated issuance of debt, (iii) matching against consolidated obligation discount notes to create the equivalent of callable or non-callable fixed rate debt, (iv) modifying the repricing frequency of assets and liabilities, (v) matching against certain advances and consolidated obligations for which the Bank elected the fair value option, and (vi) exactly offsetting other derivatives cleared at a clearing house. The Bank’s use of interest rate exchange agreements results in one of the following classifications: (i) a fair value hedge of an underlying financial instrument or (ii) an economic hedge of assets, liabilities, or other derivatives. The Bank primarily uses interest rate swaps, which are agreements between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be paid and the manner in which the cash flows will be calculated. One of the simplest forms of an interest rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, the party receives cash flows equivalent to the interest on the same notional principal amount at a variable rate for the same period of time. The variable rate received or paid by the Bank in most interest rate exchange agreements is based on a daily repricing index, such as SOFR or the effective Federal funds rate. Hedging Activities. The Bank documents at inception all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing hedge effectiveness. Derivatives designated as fair value hedges may be transacted to hedge: (i) assets and liabilities on the Statements of Condition, (ii) firm commitments, or (iii) forecasted transactions. The Bank also formally assesses (both at hedge inception and on an ongoing basis) whether the hedging derivatives have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain effective hedges in future periods. The Bank typically uses regression analyses or other statistical analyses to assess the effectiveness of its hedges. When it is determined that a derivative has not been or is not expected to be effective as a hedge, the Bank discontinues hedge accounting prospectively. The Bank may have the following types of hedged items: Investments – The Bank may invest in U.S. Treasury and agency obligations as well as agency MBS. In the past, the Bank has also invested in PLRMBS rated AAA at the time of acquisition. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. The Bank may manage prepayment risk and interest rate risk by funding investment securities with consolidated obligations that have call features or by hedging the prepayment risk with a combination of consolidated obligations and callable swaps. The Bank may execute callable swaps in conjunction with the issuance of certain liabilities to create funding that is economically equivalent to fixed rate callable debt. Although these derivatives are economic hedges against prepayment risk and are designated to individual liabilities, they do not receive either fair value or cash flow hedge accounting treatment. Investment securities may be classified as trading, AFS, or HTM. The Bank may also manage the risk arising from changing market prices or cash flows of investment securities classified as trading or AFS by entering into interest rate exchange agreements that offset the changes in fair value or cash flows of the securities. Hedge relationships that involve AFS securities are designated as fair value hedges. For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in AOCI as “Net unrealized gain/(loss) on AFS securities.” Advances – The Bank offers a wide range of advances structures to meet members’ funding needs. These advances may have maturities up to 30 years with fixed or adjustable rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and options characteristics of advances to more closely match the characteristics of the Bank’s funding liabilities. In general, whenever a member executes a fixed rate advance, fixed rate advance with embedded options, or a variable rate advance with embedded options, the Bank will simultaneously execute an interest rate exchange agreement with terms that offset the terms and any embedded options in the advance. The combination of the advance and the interest rate exchange agreement effectively creates a variable rate asset. Fixed rate advances without options that are offset with an interest rate exchange agreement are generally treated as fair value hedges. Advances with embedded options are recorded using the fair value option and are economically hedged using interest rate exchange agreements. Mortgage Loans – Prior to June 30, 2021, the Bank invested in fixed rate mortgage loans. The prepayment options embedded in mortgage loans can result in extensions or contractions in the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest rate risk and prepayment risk associated with fixed rate mortgage loans through a combination of debt issuance and derivatives. The Bank uses both callable and non-callable debt to achieve cash flow patterns and market value sensitivities for liabilities similar to those expected on the mortgage loans. Net income could be reduced if the Bank replaces prepaid mortgage loans with lower-yielding assets and the Bank’s higher funding costs are not reduced accordingly. The Bank may execute callable swaps in conjunction with the issuance of short-term or adjustable rate consolidated obligations to create funding that is economically equivalent to fixed rate callable bonds. This type of hedge is treated as an economic hedge. Consolidated Obligations – Consolidated obligation bonds may be structured to meet the Bank’s or the investors’ needs. Common structures include fixed rate bonds with or without call options and adjustable rate bonds with or without embedded options. In general, when bonds are issued, the Bank simultaneously executes an interest rate exchange agreement with terms that offset the terms and embedded options, if any, of the consolidated obligation bond. This combination of the consolidated obligation bond and the interest rate exchange agreement effectively creates an adjustable rate bond. These transactions generally receive fair value hedge accounting treatment. When the Bank issues consolidated obligation discount notes, it may also simultaneously enter into an interest rate exchange agreement to convert the fixed rate discount note to an adjustable rate discount note. This type of hedge is treated as an economic hedge. In addition, when certain consolidated obligation bonds for which the Bank has elected the fair value option are issued, the Bank simultaneously executes an interest rate exchange agreement with terms that economically offset the terms of the consolidated obligation bond. However, this type of hedge is treated as an economic hedge because these combinations do not meet the requirements for fair value hedge accounting treatment. Offsetting Derivatives – The Bank enters into derivatives to offset the economic effect of other derivatives that are no longer designated to advances, investments, or consolidated obligations. Offsetting derivatives do not receive hedge accounting treatment and are separately marked to market through earnings. The net result of the accounting for these derivatives does not significantly affect the operating results of the Bank. The notional amount of an interest rate exchange agreement serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit risk and market risk. The risks of derivatives can be measured meaningfully on a portfolio basis by taking into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. For more information related to the Bank’s accounting policies for derivatives, see Note 1 – Summary of Significant Accounting Policies. The following table summarizes the notional amount and fair value of derivative instruments, including the effect of netting adjustments and cash collateral as of December 31, 2023 and 2022. For purposes of this disclosure, the derivative values include the fair value of derivatives and related accrued interest. 2023 2022 (In millions) Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments: Interest rate swaps $ 90,088 $ 795 $ 705 $ 69,204 $ 799 $ 1,062 Derivatives not designated as hedging instruments: Interest rate swaps 27,349 36 87 47,589 50 133 Total derivatives before netting and collateral adjustments $ 117,437 831 792 $ 116,793 849 1,195 Netting adjustments and cash collateral (1) (815) (790) (823) (1,193) Total derivative assets and total derivative liabilities $ 16 $ 2 $ 26 $ 2 (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively. The following tables present, by type of hedged item, the gains and losses on fair value hedging relationships and the impact of those derivatives on the Bank’s Statements of Income for the years ended December 31, 2023, 2022, and 2021. 2023 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 3,999 $ 921 $ (3,901) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 117 $ 91 $ (138) Hedged items 230 230 (438) Net gain/(loss) on derivatives and hedging activities recorded in net interest income 347 321 (576) 2022 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 1,226 $ 408 $ (715) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 814 $ 1,202 $ (1,038) Hedged items (804) (1,247) 944 Net gain/(loss) on derivatives and hedging activities recorded in net interest income 10 (45) (94) 2021 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 224 $ 220 $ (62) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 175 $ 309 $ (87) Hedged items (390) (482) 152 Net gain/(loss) on derivatives and hedging activities recorded in net interest income (215) (173) 65 (1) Includes net interest settlements. The following table presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2023 and 2022. 2023 2022 (In millions) Advances AFS Securities Consolidated Obligation Bonds Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/(liability) (1) $ 38,338 $ 17,029 $ (34,121) $ 34,535 $ 11,574 $ (21,976) Fair value hedging basis adjustments: Active hedging relationships included in amortized cost $ (427) $ (1,053) $ 645 $ (740) $ (1,410) $ 1,083 Discontinued hedging relationships included in amortized cost 56 621 — 70 740 — Total amount of fair value hedging basis adjustments $ (371) $ (432) $ 645 $ (670) $ (670) $ 1,083 (1) Includes only the portion of amortized cost representing the hedged items in fair value hedging relationships. The following table presents the components of net gain/(loss) on derivatives as presented in the Statements of Income for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Derivatives not designated as hedging instruments Gain/(Loss) Gain/(Loss) Gain/(Loss) Economic hedges: Interest rate swaps $ (26) $ 34 $ 108 Net interest settlements 5 (42) (71) Total net gain/(loss) related to derivatives not designated as hedging instruments (21) (8) 37 Price alignment amount (1) (4) (1) — Net gain/(loss) on derivatives $ (25) $ (9) $ 37 (1) This amount relates to derivatives for which variation margin on cleared derivatives is characterized as a daily settled contract. Credit Risk. The Bank is subject to credit risk from potential nonperformance by counterparties to the interest rate exchange agreements. All of the Bank’s agreements governing uncleared derivative transactions contain master netting provisions to help mitigate the credit risk exposure to each counterparty. The Bank manages counterparty credit risk through credit analyses and collateral requirements and by following the requirements of the Bank’s risk management policies, credit guidelines, and Finance Agency and other regulations. The Bank also requires credit support agreements on all uncleared derivatives. For cleared derivatives, the clearing house is the Bank’s counterparty. The requirement that the Bank post initial margin and settle variation margin through a clearing agent to the clearing house exposes the Bank to institutional credit risk if its futures commission merchant, or clearing agent, fails to meet its obligations. The use of a clearing house, or central counterparty, lowers overall credit risk exposure because it employs standard valuation and initial and variation margin processes and is specifically designed to withstand remote but plausible futures commission merchant default credit events. Variation margin is settled for changes in the value of the portfolio, and initial margin is posted for changes in risk profile of the portfolio. The Bank analyzed the enforceability of offsetting rights applicable to its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable bankruptcy law and Commodity Futures Trading Commission rules in the event of a clearing house or clearing agent insolvency and under applicable clearing house rules upon a non-insolvency-based event of default of the clearing house or clearing agent. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular clearing house. Based on the Bank’s credit analyses and the collateral requirements, the Bank does not expect to incur any credit losses on its derivative transactions. The Bank’s agreements for uncleared derivative transactions contain provisions that link the Bank’s credit rating from Moody’s Investors Service and S&P Global Ratings to various rights and obligations. Certain of these derivative agreements provide that, if the Bank’s long-term debt rating falls below a specified rating (ranging from A3/A- to Baa3/BBB-), the Bank’s counterparty would have the right, but not the obligation, to terminate all of its outstanding derivative transactions with the Bank; the Bank’s agreements with its clearing agents for cleared derivative transactions have similar provisions with respect to the debt rating of FHLBank System consolidated bonds. If this occurs, the Bank may choose to enter into replacement hedges, either by transferring the existing transactions to another counterparty or entering into new replacement transactions, based on prevailing market rates. The aggregate fair value of all uncleared derivative instruments with credit risk-related contingent features that were in a net derivative liability position (before cash collateral and related accrued interest) at December 31, 2023, was $333 million, for which the Bank posted cash collateral of $338 million in the ordinary course of business. The Bank may present derivative instruments, related cash collateral received or pledged, and associated accrued interest by clearing agent or by counterparty on a net basis when the netting requirements have been met. The following table presents separately the fair value of derivative assets and derivative liabilities that have met the netting requirements, including the related collateral received from or pledged to counterparties as of December 31, 2023 and 2022. 2023 2022 (In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Uncleared $ 826 $ 778 $ 834 $ 1,188 Cleared 5 14 15 7 Total gross recognized amount 831 792 849 1,195 Gross amount of netting adjustments and cash collateral Uncleared (814) (776) (829) (1,186) Cleared (1) (14) 6 (7) Total gross amounts of netting adjustments and cash collateral (815) (790) (823) (1,193) Total derivative assets and total derivative liabilities $ 16 $ 2 $ 26 $ 2 Non-cash collateral received or pledged that can be sold or repledged Cleared — — (435) — Total net amount of non-cash collateral received or pledged $ — $ — $ (435) $ — Net amount (1) Uncleared $ 12 $ 2 $ 5 $ 2 Cleared 4 — 456 — Total net amount $ 16 $ 2 $ 461 $ 2 (1) Any over-collateralization at the Bank’s individual clearing agent and/or counterparty level is not included in the determination of the net amount. At December 31, 2023, the Bank had additional net credit exposure of $771 million due to instances where non-cash collateral to a counterparty exceeded the Bank’s net derivative position. There was no such additional net credit exposure at December 31, 2022. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 14 — Fair Value The following fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank at December 31, 2023 and 2022. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology. For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases fair values cannot be precisely quantified or verified and may change as economic and market factors and evaluation of those factors change. The Bank continues to refine its valuation methodologies as markets and products develop and the pricing for certain products becomes more or less transparent. While the Bank believes that its valuation methodologies are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a materially different estimate of fair value as of the reporting date. U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Therefore, the fair values are not necessarily indicative of the amounts that would be realized in current market transactions, although they do reflect the Bank’s judgment as to how a market participant would estimate the fair values. The fair value summary table does not represent an estimate of the overall market value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of total assets and liabilities. The following tables present the net carrying value or carrying value, as applicable, the estimated fair value, and the fair value hierarchy level of the Bank’s financial instruments at December 31, 2023 and 2022. The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, certain advances, certain consolidated obligations, and certain other assets at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. The Bank records all other financial assets and liabilities at amortized cost. Refer to the following tables for further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis. 2023 (In millions) Carrying Value (1) Estimated Fair Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral (2) Assets Cash and due from banks $ 5 $ 5 $ 5 $ — $ — $ — Interest-bearing deposits 2,922 2,922 2,922 — — — Securities purchased under agreements to resell 3,650 3,650 — 3,650 — — Federal funds sold 3,861 3,861 — 3,861 — — AFS securities 18,014 18,014 — 16,955 1,059 — HTM securities 1,847 1,818 — 1,702 116 — Advances 61,335 61,216 — 61,216 — — Mortgage loans held for portfolio 754 634 — 634 — — Accrued interest receivable 184 184 — 184 — — Derivative assets, net (2) 16 16 — 831 — (815) Other assets (3) 17 17 17 — — — Liabilities Deposits 962 962 — 962 — — Consolidated obligations: Bonds 64,297 64,037 — 64,037 — — Discount notes 19,187 19,182 — 19,182 — — Total consolidated obligations 83,484 83,219 — 83,219 — — Mandatorily redeemable capital stock 706 706 706 — — — Accrued interest payable 520 520 — 520 — — Derivative liabilities, net (2) 2 2 — 792 — (790) 2022 (In millions) Carrying Value (1) Estimated Fair Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral (2) Assets Cash and due from banks $ 9 $ 9 $ 9 $ — $ — $ — Interest-bearing deposits 3,677 3,677 3,677 — — — Securities purchased under agreements to resell 7,000 7,000 — 7,000 — — Federal funds sold 4,719 4,719 — 4,719 — — Trading securities 1 1 — 1 — — AFS securities 12,713 12,713 — 11,531 1,182 — HTM securities 2,181 2,136 — 1,993 143 — Advances 89,400 89,183 — 89,183 — — Mortgage loans held for portfolio 815 695 — 695 — — Accrued interest receivable 313 313 — 313 — — Derivative assets, net (2) 26 26 — 849 — (823) Other assets (3) 15 15 15 — — — Liabilities Deposits 989 989 — 989 — — Consolidated obligations: Bonds 75,768 75,396 — 75,396 — — Discount notes 35,929 35,916 — 35,916 — — Total consolidated obligations 111,697 111,312 — 111,312 — — Mandatorily redeemable capital stock 5 5 5 — — — Accrued interest payable 326 326 — 326 — — Derivative liabilities, net (2) 2 2 — 1,195 — (1,193) (1) For certain financial instruments, the amounts represent net carrying value, which includes an allowance for credit losses. (2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents or counterparty. (3) Represents publicly traded mutual funds held in a grantor trust. Fair Value Hierarchy. The fair value hierarchy is used to prioritize the fair value methodologies and valuation techniques as well as the inputs to the valuation techniques used to measure fair value for assets and liabilities carried at fair value on the Statements of Condition. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). An entity must disclose the level within the fair value hierarchy in which the measurements are classified for all financial assets and liabilities measured on a recurring or non-recurring basis. The application of the fair value hierarchy to the Bank’s financial assets and financial liabilities that are carried at fair value either on a recurring or non-recurring basis is as follows: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in an active market that the reporting entity can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals, and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models, or similar techniques. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following assets and liabilities, including those for which the Bank has elected the fair value option, are carried at fair value on the Statements of Condition as of December 31, 2023: • Trading securities • AFS securities • Certain advances • Derivative assets and liabilities • Certain consolidated obligation bonds • Certain other assets For instruments carried at fair value, the Bank reviews the fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. For the periods presented, the Bank did not have any reclassifications for transfers in or out of level 3 of the fair value hierarchy. Summary of Valuation Methodologies and Primary Inputs. The valuation methodologies and primary inputs used to develop the measurement of fair value for assets and liabilities that are measured at fair value on a recurring or nonrecurring basis in the Statements of Condition are listed below. Investment Securities – MBS – To value its MBS, the Bank obtains prices from multiple designated third-party pricing vendors when available. The pricing vendors use various proprietary models to price these securities. The inputs to those models are derived from various sources including, but not limited to: benchmark yields, reported trades, dealer estimates, issuer spreads, prices on benchmark securities, bids, offers, and other market-related data. Since many securities do not trade on a daily basis, the pricing vendors use available information as applicable, such as benchmark yield curves, benchmarking of like securities, sector groupings, and matrix pricing, to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all security valuations, which facilitates resolution of price discrepancies identified by the Bank. At least annually, the Bank conducts reviews of the multiple pricing vendors to update and confirm its understanding of the vendors’ pricing processes, methodologies, and control procedures. The Bank’s valuation technique for estimating the fair values of its MBS first requires the establishment of a median vendor price for each security. If three prices are received, the middle price is the median price; if two prices are received, the average of the two prices is the median price; and if one price is received, it is the median price (and also the default fair value) subject to additional validation. All vendor prices that are within a specified tolerance threshold of the median price are included in the cluster of vendor prices that are averaged to establish a default fair value. All vendor prices that are outside the threshold (outliers) are subject to further analysis including, but not limited to, comparison to prices provided by an additional third-party valuation service, dealer price estimates for similar securities, and the use of internally modeled prices, which are deemed to be reflective of all relevant facts and circumstances that a market participant would consider. Such analysis is also applied in those limited instances where no third-party vendor price or only one third-party vendor price is available in order to arrive at an estimated fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price, as appropriate) is used as the fair value rather than the default fair value. If, instead, the analysis confirms that an outlier is (or outliers are) not representative of fair value and the default fair value is the best estimate, then the default fair value is used as the fair value. If all vendor prices received for a security are outside the tolerance threshold level of the median price, then there is no default fair value, and the fair value is determined by an evaluation of all outlier prices (or the other prices, as appropriate) as described above. As of December 31, 2023, multiple vendor prices were received for most of the Bank’s MBS, and the fair value estimates for most of those securities were determined in accordance with the Bank’s valuation technique based on these vendor prices. Based on the Bank’s reviews of the pricing methods employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or, in those instances in which there were outliers, the Bank’s additional analyses), the Bank believes that its fair value estimates are reasonable and that the fair value measurements are classified appropriately in the fair value hierarchy. Based on limited market liquidity for PLRMBS, the fair value measurements for these securities were classified as Level 3 within the fair value hierarchy. Investment Securities – Non-MBS – To determine the estimated fair values of non-MBS investments, the Bank uses a market approach using prices from third-party pricing vendors, generally consistent with the methodologies for MBS. The Bank believes that its methodologies result in fair values that are reasonable and similar in all material respects based on the nature of the financial instruments being measured. Advances Recorded Under the Fair Value Option – Because quoted prices are not available for advances, the fair values are measured using model-based valuation techniques (such as calculating the present value of future cash flows and reducing the amount for accrued interest receivable). The Bank’s primary inputs for measuring the fair value of advances recorded under the fair value option are market-based consolidated obligation yield curve (CO Curve) inputs obtained from the Office of Finance. The CO Curve is then adjusted to reflect the rates on replacement advances with similar terms and collateral. These spread adjustments are not market-observable and are evaluated for significance in the overall fair value measurement and the fair value hierarchy level of the advance. The Bank obtains market-observable inputs for complex advances recorded under the fair value option. These inputs may include volatility assumptions, which are market-based expectations of future interest rate volatility implied from current market prices for similar options (swaption volatility and volatility skew). The discount rates used in these calculations are the replacement advance rates for advances with similar terms. Pursuant to the Finance Agency’s advances regulation, advances with an original term to maturity or repricing period greater than six months generally require a prepayment fee sufficient to make the Bank financially indifferent to the borrower’s decision to prepay the advances. The Bank determined that no adjustment is required to the fair value measurement of advances for prepayment fees. The Bank also did not adjust its fair value measurement of advances recorded under the fair value option for creditworthiness primarily because advances were fully collateralized. Other Assets – The estimated fair value of grantor trust assets is based on quoted market prices. Derivative Assets and Liabilities – In general, derivative instruments transacted and held by the Bank for risk management activities are traded in over-the-counter markets where quoted market prices are not readily available. These derivatives are interest rate-related. For these derivatives, the Bank measures fair value using internally developed discounted cash flow models that use market-observable inputs, such as swap rates and volatility assumptions, which are market-based expectations of future interest rate volatility implied from current market prices for similar options (swaption volatility and volatility skew), adjusted for counterparty credit risk, as necessary. The Bank is subject to credit risk because of the risk of potential nonperformance by its derivative counterparties. To mitigate this risk, the Bank executes uncleared derivative transactions only with highly rated derivative dealers and major banks (derivative dealer counterparties) that meet the Bank’s eligibility criteria. In addition, the Bank has entered into master netting agreements and bilateral credit support agreements with all active derivative dealer counterparties that provide for delivery of margin at specified levels to limit the Bank’s net unsecured credit exposure to these counterparties. Under these policies and agreements, the amount of unsecured credit exposure to an individual derivative dealer counterparty is set at zero (subject to a minimum transfer amount). The Bank clears its cleared derivative transactions only through clearing agents that meet the Bank’s eligibility requirements, and the Bank’s credit exposure to the clearing house is secured by variation margin received from the clearing house. The Bank evaluated the potential for the fair value of the instruments to be affected by counterparty credit risk and determined that no adjustments to the overall fair value measurements were required. The fair values of the derivative assets and liabilities include accrued interest receivable/payable and cash collateral remitted to/received from counterparties. The estimated fair values of the accrued interest receivable/payable and cash collateral approximate their carrying values because of their short-term nature. The fair values of derivatives that met the netting requirements are presented on a net basis. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Consolidated Obligations Recorded Under the Fair Value Option – Because quoted prices in active markets are not generally available for identical liabilities, the Bank measures fair values using internally developed models that use primarily market-observable inputs. The Bank’s primary input for measuring the fair value of consolidated obligation bonds is a market-based CO Curve obtained from the Office of Finance. The Office of Finance constructs the CO Curve using the Treasury yield curve as a base curve, which is adjusted by indicative consolidated obligation spreads obtained from market-observable sources. These market indications are generally derived from pricing indications from dealers, historical pricing relationships, and market activity for similar liabilities, such as recent GSE issuances or secondary market activity. For consolidated obligation bonds with embedded options, the Bank also obtains market-observable inputs, such as volatility assumptions, which are market-based expectations of future interest rate volatility implied from current market prices for similar options (swaption volatility and volatility skew). Adjustments may be necessary to reflect the Bank’s credit quality or the credit quality of the FHLBank System when valuing consolidated obligation bonds measured at fair value. The Bank monitors its own creditworthiness and the creditworthiness of the other FHLBanks and the FHLBank System to determine whether any adjustments are necessary for creditworthiness in its fair value measurement of consolidated obligation bonds. The credit ratings of the FHLBank System and any changes to the credit ratings are the basis for the Bank to determine whether the fair values of consolidated obligations recorded under the fair value option have been significantly affected during the reporting period by changes in the instrument-specific credit risk. Subjectivity of Estimates Related to Fair Values of Financial Instruments. Estimates of the fair value of financial assets and liabilities using the methodologies described above are subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. Changes in these judgments may have a material effect on the fair value estimates. Fair Value Measurements. The following tables present the fair value of assets and liabilities, which are recorded on a recurring or nonrecurring basis at December 31, 2023 and 2022, by level within the fair value hierarchy. December 31, 2023 Fair Value Measurement Using: Netting Adjustments and Cash Collateral (1) (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements – Assets: AFS securities: U.S. Treasury obligations $ — $ 4,534 $ — $ — $ 4,534 MBS: GSEs – multifamily — 12,421 — — 12,421 PLRMBS — — 1,059 — 1,059 Subtotal AFS MBS — 12,421 1,059 — 13,480 Total AFS securities — 16,955 1,059 — 18,014 Advances (2) — 1,898 — — 1,898 Derivative assets, net: interest rate-related — 831 — (815) 16 Other assets 17 — — — 17 Total recurring fair value measurements – Assets $ 17 $ 19,684 $ 1,059 $ (815) $ 19,945 Recurring fair value measurements – Liabilities: Consolidated obligation bonds (3) $ — $ 604 $ — $ — $ 604 Derivative liabilities, net: interest rate-related — 792 — (790) 2 Total recurring fair value measurements – Liabilities $ — $ 1,396 $ — $ (790) $ 606 Nonrecurring fair value measurements – Assets: (4) Impaired mortgage loans held for portfolio $ — $ — $ 22 $ — $ 22 Total nonrecurring fair value measurements – Assets $ — $ — $ 22 $ — $ 22 December 31, 2022 Fair Value Measurement Using: Netting Adjustments and Cash Collateral (1) (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements – Assets: Trading securities: MBS – Other U.S. obligations $ — $ 1 $ — $ — $ 1 AFS securities: U.S. Treasury obligations — 4,024 — — 4,024 MBS: GSEs – multifamily — 7,507 — — 7,507 PLRMBS — — 1,182 — 1,182 Subtotal AFS MBS — 7,507 1,182 — 8,689 Total AFS securities — 11,531 1,182 — 12,713 Advances (2) — 2,059 — — 2,059 Derivative assets, net: interest rate-related — 849 — (823) 26 Other assets 15 — — — 15 Total recurring fair value measurements – Assets $ 15 $ 14,440 $ 1,182 $ (823) $ 14,814 Recurring fair value measurements – Liabilities: Consolidated obligation bonds (3) $ — $ 2,226 $ — $ — $ 2,226 Derivative liabilities, net: interest rate-related — 1,195 — (1,193) 2 Total recurring fair value measurements – Liabilities $ — $ 3,421 $ — $ (1,193) $ 2,228 Nonrecurring fair value measurements – Assets: (4) Impaired mortgage loans held for portfolio $ — $ — $ 20 $ — $ 20 Total nonrecurring fair value measurements – Assets $ — $ — $ 20 $ — $ 20 (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed by the Bank, with the same clearing agents or counterparty. (2) Represents advances recorded under the fair value option at December 31, 2023 and 2022. (3) Represents consolidated obligation bonds recorded under the fair value option at December 31, 2023 and 2022. (4) The fair value information presented is as of the date the fair value adjustment was recorded during the years ended December 31, 2023 and 2022. The following table presents a reconciliation of the Bank’s AFS PLRMBS that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Balance, beginning of the period $ 1,182 $ 1,608 $ 2,035 Total gain/(loss) realized and unrealized included in: Interest income 33 55 69 (Provision for)/reversal of credit losses (4) (14) 3 Other income/(loss) — 28 — Unrealized gain/(loss) included in AOCI (15) (146) 18 Settlements (139) (366) (519) Transfers of HTM securities to AFS securities 2 17 2 Balance, end of the period $ 1,059 $ 1,182 $ 1,608 Total amount of unrealized gain/(loss) for the period included in AOCI relating to assets held at the end of the period $ (15) $ (146) $ 19 Total amount of gain/(loss) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets held at the end of the period $ 29 $ 41 $ 71 Fair Value Option. The fair value option provides an entity with an irrevocable option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value. It requires an entity to display the fair value of those assets and liabilities for which the entity has chosen to use fair value on the face of the Statements of Condition. Fair value is used for both the initial and subsequent measurement of the designated assets, liabilities, and commitments, with the changes in fair value recognized in net income. Interest income and interest expense on advances and consolidated obligation bonds carried at fair value are recognized solely on the contractual amount of interest due or unpaid. Any consolidated obligation bond underwriting fees or concessions will be immediately recognized in other income/(loss) or other expense. The Bank elected the fair value option for certain financial instruments as follows: • Adjustable rate advances with embedded caps and floors; • Callable fixed rate advances; • Putable fixed rate advances; • Fixed rate advances with partial prepayment symmetry; • Callable or non-callable floating rate consolidated obligation bonds with embedded caps; • Convertible consolidated obligation bonds; • Adjustable or fixed rate range accrual consolidated obligation bonds; • Ratchet consolidated obligation bonds; • Adjustable rate advances indexed to certain indices such as the Prime Rate, U.S. Treasury bill, and Effective Federal Funds Rate; • Adjustable rate consolidated obligation bonds indexed to certain indices like the Prime Rate and U.S. Treasury bill; • Step-up callable bonds, which pay interest at increasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-up dates according to the terms of the bond offerings; and • Step-down callable bonds, which pay interest at decreasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-down dates according to the terms of the bond offerings. The Bank has elected the fair value option for certain financial instruments to assist in mitigating potential earnings volatility that can arise from economic hedging relationships in which the carrying value of the hedged item is not adjusted for changes in fair value. The potential earnings volatility associated with recording fair value changes of only the hedging derivative is the Bank’s primary reason for electing the fair value option for financial assets and liabilities that do not qualify for hedge accounting or that have not previously met or may be at risk for not meeting the hedge effectiveness requirements. The following table presents the net gain/(loss) recognized in earnings on advances and consolidated obligation bonds held under fair value option for the years ended December 31, 2023, 2022, and 2021: (In millions) 2023 2022 2021 Advances $ 28 $ (119) $ (62) Consolidated obligation bonds (29) 54 8 Total $ (1) $ (65) $ (54) For instruments for which the fair value option has been elected, the related contractual interest income and contractual interest expense are recorded as part of net interest income on the Statements of Income. The remaining changes in fair value for instruments for which the fair value option has been elected are recorded as net gain/ (loss) on financial instruments held under the fair value option in the Statements of Income. For advances and consolidated obligations recorded under the fair value option, the Bank determined that none of the remaining changes in fair value were related to instrument-specific credit risk for the years ended December 31, 2023, 2022, and 2021. In determining that there has been no change in instrument-specific credit risk period to period, the Bank primarily considered the following factors: • The Bank is a federally chartered GSE, and as a result of this status, the consolidated obligations have historically received the same credit ratings as the government bond credit rating of the United States, even though they are not obligations of the United States and are not guaranteed by the United States. • The Bank is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The following table presents the difference between the aggregate remaining contractual principal balance outstanding and aggregate fair value of advances and consolidated obligation bonds for which the Bank elected the fair value option at December 31, 2023 and 2022: 2023 2022 (In millions) Principal Balance Fair Value Fair Value Principal Balance Fair Value Fair Value Advances (1) $ 1,902 $ 1,898 $ (4) $ 2,106 $ 2,059 $ (47) Consolidated obligation bonds 633 604 (29) 2,278 2,226 (52) (1) At December 31, 2023 and 2022, none of these advances were 90 days or more past due or had been placed on nonaccrual status. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 — Commitments and Contingencies As provided by the FHLBank Act or regulations governing the operations of the FHLBanks, all FHLBanks have joint and several liability for all FHLBank consolidated obligations, which are backed only by the financial resources of the FHLBanks. The joint and several liability regulation authorizes the Finance Agency to require any FHLBank to repay all or a portion of the principal or interest on consolidated obligations for which another FHLBank is the primary obligor. The regulations provide a general framework for addressing the possibility that an FHLBank may be unable to repay the consolidated obligations for which it is the primary obligor. The Bank has never been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank, and as of December 31, 2023, and through the filing date of this report, does not believe that it is probable that it will be asked to do so. The par value of the outstanding consolidated obligations of the FHLBanks was $1.2 trillion at December 31, 2023 and 2022. The par value of the Bank’s participation in consolidated obligations was $84.3 billion at December 31, 2023, and $113.1 billion at December 31, 2022. The joint and several liability regulation provides a general framework for addressing the possibility that an FHLBank may be unable to repay its participation in the consolidated obligations for which it is the primary obligor. In accordance with this regulation, the president of each FHLBank is required to provide a quarterly certification that, among other things, the FHLBank will remain capable of making full and timely payment of all its current obligations, including direct obligations. In addition, the regulation requires that an FHLBank must provide written notice to the Finance Agency if at any time the FHLBank is unable to provide the quarterly certification; projects that it will be unable to fully meet all of its current obligations, including direct obligations, on a timely basis during the quarter; or negotiates or enters into an agreement with another FHLBank for financial assistance to meet its obligations. If an FHLBank gives any one of these notices (other than in a case of a temporary interruption in the FHLBank’s debt servicing operations resulting from an external event such as a natural disaster or a power failure), it must promptly file a consolidated obligations payment plan for Finance Agency approval specifying the measures the FHLBank will undertake to make full and timely payments of all its current obligations. Notwithstanding any other provisions in the regulation, the regulation provides that the Finance Agency in its discretion may at any time order any FHLBank to make any principal or interest payment due on any consolidated obligation. To the extent an FHLBank makes any payment on any consolidated obligation on behalf of another FHLBank, the paying FHLBank is entitled to reimbursement from the FHLBank that is the primary obligor, which will have a corresponding obligation to reimburse the FHLBank for the payment and associated costs, including interest. The regulation also provides that the Finance Agency may allocate the outstanding liability of an FHLBank for consolidated obligations among the other FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding or in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. Off-balance sheet commitments as of December 31, 2023 and 2022, were as follows: 2023 2022 (In millions) Expire Within Expire After Total Total Standby letters of credit outstanding $ 10,547 $ 8,871 $ 19,418 $ 22,640 Commitments to issue consolidated obligation discount notes, par — — — 300 Commitments to issue consolidated obligation bonds, par — — — 2,385 Standby letters of credit are generally issued for a fee on behalf of members to support their obligations to third parties. If the Bank is required to make a payment for a beneficiary’s drawing under a letter of credit, the amount is immediately due and payable by the member to the Bank and is charged to the member’s demand deposit account with the Bank. The Bank monitors the creditworthiness of members that have standby letters of credit. The value of the Bank’s obligations related to standby letters of credit is recorded in other liabilities on the Statements of Condition and amounted to $57 million and $34 million at December 31, 2023 and 2022, respectively. Standby letters of credit are fully collateralized at the time of issuance. Based on the Bank’s credit analyses of members’ financial condition and collateral requirements, the Bank does not anticipate any credit losses and did not record any additional liability for credit losses on the letters of credit outstanding or other off-balance sheet commitments as of December 31, 2023 and 2022. There were no commitments to fund advances at December 31, 2023 and 2022. Advances funded under advance commitments are fully collateralized at the time of funding. The Bank has pledged securities as collateral related to its cleared and uncleared derivatives. See Note 13 – Derivatives and Hedging Activities for additional information about the Bank’s pledged collateral and other credit risk-related contingent features. As of December 31, 2023, the Bank had pledged total collateral of $1.1 billion, including securities with a carrying value of $771 million, all of which may be repledged, and cash collateral, including accrued interest, of $353 million to counterparties and the clearing house that had market risk exposure to the Bank related to derivatives. As of December 31, 2022, the Bank had pledged total collateral of $1.1 billion, including securities with a carrying value of $435 million, all of which may be repledged, and cash collateral, including accrued interest, of $694 million to counterparties and the clearing house that had market risk exposure to the Bank related to derivatives. The Bank may be subject to various legal proceedings that may arise in the ordinary course of business. After consultation with legal counsel, the Bank does not anticipate that the ultimate liability, if any, arising out of these matters will have a material effect on its financial condition, results of operations, or cash flows. Other commitments and contingencies are discussed in Note 1 – Summary of Significant Accounting Policies, Note 5 – Advances, Note 8 – Consolidated Obligations, Note 9 – Affordable Housing Program, Note 11 – Capital, Note 12 – Employee Retirement Plans and Incentive Compensation Plans, and Note 13 – Derivatives and Hedging Activities. |
Transactions with Certain Membe
Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks | Note 16 — Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks Transactions with Members and Nonmembers. The Bank has a cooperative ownership structure under which current member institutions, certain former members, and certain other nonmembers own the capital stock of the Bank. Former members and nonmembers that have outstanding transactions with the Bank are required to maintain their investment in the Bank’s capital stock until their outstanding transactions mature or are paid off or until their capital stock is redeemed following the five-year redemption period for capital stock or is repurchased by the Bank, in accordance with the Bank’s capital requirements. (For further information on concentration risk, see Note 11 – Capital and Note 5 – Advances.) Under the FHLBank Act and Finance Agency regulations, each member eligible to vote is entitled to cast by ballot one vote for each share of stock that it was required to hold as of the record date, which is December 31, of the year prior to each election, subject to the limitation that no member may cast more votes than the average number of shares of the Bank’s stock that are required to be held by all members located in such member's state. All transactions with members, nonmembers, and their affiliates are entered into in the ordinary course of business. As of and for the three-year period ended December 31, 2023, no shareholder owned 10% or more of the total voting interests in the Bank because of this statutory limit on members' voting rights. All advances are made to members, and all mortgage loans held for portfolio were purchased from members. The Bank also maintains deposit accounts for members, certain former members, and certain other nonmembers primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases. All transactions with members and their affiliates are entered into in the ordinary course of business. The Bank may invest in Federal funds sold, interest-bearing deposits, commercial paper, and MBS and executes derivative transactions with members or their affiliates. The Bank purchases MBS through securities brokers or dealers and executes all MBS investments without preference to the status of the counterparty or the issuer of the investment as a nonmember, member, or affiliate of a member. When the Bank executes non-MBS investments with a member, the Bank may give consideration to the member’s secured credit and the Bank’s advances pricing. As an additional service to its members, the Bank has in the past entered into offsetting interest rate exchange agreements, acting as an intermediary between exactly offsetting derivative transactions with members and other counterparties. These transactions were executed at market rates. The FHLBank Act requires the Bank to establish an AHP. Through the AHP, the Bank provides subsidies to members, who use the funds to assist in the purchase, construction, or rehabilitation of housing for households earning up to 80% of the median income for the area in which they live. Subsidies may be in the form of direct grants or below-market interest rate advances. Only Bank members, along with their nonmember AHP project sponsors, may submit AHP applications. All AHP subsidies are made in the ordinary course of business. The FHLBank Act also requires the Bank to establish a Community Investment Program and authorizes the Bank to offer additional Community Investment Cash Advance (CICA) programs. Under these programs, the Bank provides subsidies in the form of grants and below-market interest rate advances to members or standby letters of credit to members for community lending and economic development projects. Only Bank members may submit applications for CICA subsidies. All CICA subsidies are made in the ordinary course of business. In instances where the member has an officer or director serving on the Bank’s board of directors, all of the aforementioned transactions with the member are subject to the same eligibility and credit criteria, as well as the same conditions, as comparable transactions with all other members, in accordance with regulations governing the operations of the FHLBanks. The following tables set forth information at the dates and for the periods indicated with respect to transactions with members that have an officer or director serving on the Bank’s board of directors. (In millions) December 31, 2023 December 31, 2022 Assets: Advances $ 5,762 $ 7,269 Mortgage loans held for portfolio 74 80 Accrued interest receivable 5 9 Liabilities: Deposits $ 34 $ 11 Capital: Capital Stock $ 191 $ 215 (In millions) 2023 2022 2021 Interest Income: Advances $ 271 $ 114 $ 51 Mortgage loans held for portfolio 3 1 — Interest Expense: Deposits 1 — — All transactions with members, nonmembers, and their affiliates are entered into in the ordinary course of business. Transactions with Other FHLBanks. The Bank may occasionally enter into transactions with other FHLBanks. These transactions are summarized below. Deposits with other FHLBanks . The Bank may, from time to time, maintain deposits with other FHLBanks. Deposits with other FHLBanks totaled de minimis amounts at December 31, 2023 and 2022, and were recorded as “Interest-bearing deposits” in the Statements of Condition. Overnight Funds . The Bank may borrow or lend unsecured overnight funds from or to other FHLBanks. All such transactions are at current market rates. Interest income and interest expense related to these transactions with other FHLBanks are included in interest income and interest expense in the Statements of Income. Balances outstanding at period end with other FHLBanks, if any, are identified in the Bank’s financial statements. During the years ended December 31, 2023 and 2022, the Bank extended overnight loans to other FHLBanks for $2.6 billion and $2.4 billion, respectively. During 2021, the Bank extended no overnight loans to other FHLBanks. The amount of interest income for these advances was de minimis for the years ended December 31, 2023, 2022, and 2021. During the years ended December 31, 2023, 2022, and 2021, the Bank borrowed $5.5 billion, $10.4 billion, and $140 million, respectively, from other FHLBanks. Interest expense related to these borrowings was $2 million and $1 million for the years ended December 31, 2023 and 2022, respectively, and was de minimis for the year ended December 31, 2021. MPF Mortgage Loans . The Bank pays a transaction services fee to the FHLBank Chicago that is assessed monthly based on the amount of mortgage loans in which the Bank invested and which remain outstanding on its Statements of Condition. For the years ended December 31, 2023, 2022, and 2021, the Bank recorded a de minimis amount, $1 million, and $1 million, respectively, in transaction services fee expense to the FHLBank Chicago, which was recorded in the Statements of Income as other expense. |
Other (Notes)
Other (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Other [Abstract] | |
Other | Note 17 — Other The table below discloses the categories included in other operating expense for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Professional and contract services $ 35 $ 28 $ 28 Occupancy 11 11 11 Equipment 5 6 7 Other 17 13 8 Total $ 68 $ 58 $ 54 |
Employee Retirement Plans and I
Employee Retirement Plans and Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 12 — Employee Retirement Plans and Incentive Compensation Plans Defined Benefit Plans Qualified Defined Benefit Plan. The Bank provides retirement benefits through a Bank-sponsored Cash Balance Plan, a qualified defined benefit plan. The Cash Balance Plan is provided to all employees who have completed six months of Bank service. Under the plan, during the years ended December 31, 2023 and 2022, each eligible Bank employee accrued benefits annually equal to 6% of the employee's annual compensation, plus 6% interest on the benefits accrued to the employee through the prior yearend. The Cash Balance Plan is funded through a qualified trust established by the Bank. Non-Qualified Defined Benefit Plans. The Bank sponsors the following non-qualified defined benefit retirement plans: • Benefit Equalization Plan, a non-qualified retirement plan restoring benefits offered under the Cash Balance Plan that are limited by laws governing the plan. See below for further discussion of the defined contribution portion of the Benefit Equalization Plan. • Supplemental Executive Retirement Plan (SERP), a non-qualified unfunded retirement benefit plan available to the Bank's eligible senior officers, which generally provides a service-linked supplemental cash balance annual contribution credit to SERP participants and an annual interest credit of 6% on the benefits accrued to the SERP participants through the prior yearend. • Deferred Compensation Plan, a non-qualified retirement plan available to all eligible Bank employees, which provides make-up retirement benefits that would have been earned under the Cash Balance Plan had the compensation not been deferred. The make-up benefits vest according to the corresponding provisions of the Cash Balance Plan. See below for further discussion of the defined contribution portion of the Deferred Compensation Plan. Postretirement Health Benefit Plan. The Bank provides a postretirement health benefit plan to employees that meet certain eligibility criteria. Changes in health care cost trend rates will not have a material effect on the Bank's accumulated postretirement benefit obligation or service and interest costs because benefit plan premiums are generally paid by the retirees. Amounts recognized in AOCI for the defined benefit Cash Balance Plan and postretirement health benefit plan at December 31, 2023 and 2022, consist of: 2023 2022 (In millions) Cash Balance Post-retirement Health Benefit Plan Cash Balance Post-retirement Health Benefit Plan Net loss/(gain) $ 12 $ (1) $ 16 $ (1) The following table presents obligations and funded status of retirement plans at December 31, 2023 and 2022. 2023 2022 (In millions) Cash Balance Plan Non-Qualified Defined Benefit Plans Post-retirement Health Benefit Plan Cash Balance Plan Non-Qualified Defined Benefit Plans Post-retirement Health Benefit Plan Projected benefit obligation $ 80 $ 15 $ 1 $ 74 $ 15 $ 1 Accumulated benefit obligation 80 15 1 74 15 1 Fair value of plan assets 96 — — 80 — — Funded status 16 (15) (1) 6 (15) (1) The Bank uses a discount rate to determine the present value of its future benefit obligations. The discount rate was determined based on the Financial Times Stock Exchange (FTSE) Pension Discount Curve at the measurement date. The FTSE Pension Discount Curve is a yield curve that reflects the market-observed yields for high-quality fixed income securities for each maturity. The projected benefit payments for each year from the plan are discounted using the spot rates on the yield curve to derive a single equivalent discount rate. The discount rate is reset annually on the measurement date. The discount rate used to determine the benefit obligations for the Cash Balance Plan and non-qualified defined benefit plans was 4.50% for 2023 and 4.75% for 2022. The discount rate used to determine the benefit obligations for the post-retirement health benefit plan was 4.75% for 2023 and 5.00% for 2022. The table below presents the fair values of the Cash Balance Plan's assets as of December 31, 2023 and 2022, by asset category. See Note 14 – Fair Value for further information regarding the three levels of fair value measurement. 2023 2022 (In millions) Fair Value Measurement Using: Fair Value Measurement Using: Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 1 $ — $ — $ 1 $ 2 $ — $ — $ 2 Equity mutual funds 59 — — 59 48 — — 48 Fixed income mutual funds 29 — — 29 25 — — 25 Real estate mutual funds 4 — — 4 3 — — 3 Other mutual funds 3 — — 3 2 — — 2 Total $ 96 $ — $ — $ 96 $ 80 $ — $ — $ 80 The Cash Balance Plan is administered by the Bank's Retirement Committee, which establishes the plan's Statement of Investment Policy and Objectives. The Retirement Committee has adopted a strategic asset allocation based on a stable distribution of assets among major asset classes. These asset classes include domestic large-, mid-, and small-capitalization equity investments; international equity investments; real return investments; and fixed income investments. The Retirement Committee has set the Cash Balance Plan's target allocation percentages for a mix of 60% equity, 10% real return, and 30% fixed income. The Retirement Committee reviews the performance of the Cash Balance Plan on a regular basis. The Cash Balance Plan's weighted average asset allocation at December 31, 2023 and 2022, by asset category was as follows: Asset Category 2023 2022 Cash and cash equivalents 1 % 2 % Equity mutual funds 62 60 Fixed income mutual funds 30 31 Real estate mutual funds 4 4 Other mutual funds 3 3 Total 100 % 100 % The Bank contributed $8 million in 2023 and expects to contribute $3 million in 2024 to the Cash Balance Plan. The Bank contributed $2 million in 2023 and expects to contribute de minimis amounts in 2024 to the non-qualified defined benefit plans and postretirement health benefit plan. The following are the estimated future benefit payments, which reflect expected future service, as appropriate: (In millions) Year Cash Balance Non-Qualified 2024 $ 4 $ — 2025 5 2 2026 5 1 2027 5 1 2028 37 5 2029 – 2033 25 8 Defined Contribution Plans Retirement Savings Plan. The Bank sponsors a qualified defined contribution retirement 401(k) savings plan, the Federal Home Loan Bank of San Francisco Savings Plan (Savings Plan). Contributions to the Savings Plan consist of elective participant contributions of up to 75% of each participant's base compensation and a Bank matching contribution of up to 6% of each participant's base compensation. The Bank contributed approximately $3 million during each of the years ended December 31, 2023, 2022, and 2021. Benefit Equalization Plan. The Bank sponsors a non-qualified retirement plan restoring benefits offered under the Savings Plan that have been limited by laws governing the plan. Contributions made to the plan during the years ended December 31, 2023, 2022, and 2021, were de minimis. Deferred Compensation Plan. The Bank maintains a deferred compensation plan that is available to all eligible Bank employees. The defined contribution portion of the plan consists of two components: (i) employee or director deferral of current compensation, and (ii) make-up matching contributions for employees that would have been made by the Bank under the Savings Plan had the compensation not been deferred. The make-up benefits under the Deferred Compensation Plan vest according to the corresponding provisions of the Savings Plan. The Deferred Compensation Plan liability consists of the accumulated compensation deferrals and accrued earnings on the deferrals, as well as the make-up matching contributions and any accrued earnings on the contributions. The Bank’s obligation for this plan at December 31, 2023 and 2022, was $58 million and $51 million, respectively. Incentive Compensation Plans The Bank provides incentive compensation plans for all employees. Other liabilities include $16 million and $15 million for incentive compensation at December 31, 2023 and 2022, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies / Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make a number of judgments, estimates, and assumptions that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income, expenses, gains, and losses during the reporting period. The most significant of these estimates include: • accounting for derivatives; and • estimating fair values of investments classified as trading and available-for-sale (AFS), derivatives and associated hedged items carried at fair value in accordance with the accounting for derivative instruments and associated hedging activities, and financial instruments carried at fair value under the fair value option. Actual results could differ significantly from these estimates. |
Estimated Fair Values | Estimated Fair Values. A portion of the Bank’s financial instruments lack an available liquid trading market as characterized by frequent exchange transactions between a willing buyer and willing seller. Therefore, the Bank uses financial models employing significant assumptions and present value calculations for the purpose of determining estimated fair values. Thus, the fair values may not represent the actual values of the financial instruments that could have been realized as of yearend or that will be realized in the future. Fair values for certain financial instruments are based on quoted prices, market rates, or replacement rates for similar financial instruments as of the last business day of the year. The estimated fair values of the Bank’s financial instruments and related assumptions are detailed in Note 14 – Fair Value. |
Investment, Policy | Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. These investments provide short-term liquidity and are carried at cost. The Bank invests in Federal Funds sold with counterparties that are considered by the Bank to be of investment quality. Interest-bearing deposits include interest-bearing deposits in banks not meeting the definition of a security. Interest income on these investments is accrued as earned and recorded in interest income on the Statements of Income. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit loss is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The Bank treats securities purchased under agreements to resell as collateralized financing arrangements. A credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See Note 4 – Investments for details on the allowance methodologies relating to interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. Investment Securities. The Bank classifies investments as trading, AFS, or held-to-maturity (HTM) at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. The Bank classifies certain investments as trading. These securities are held for liquidity purposes and carried at fair value with changes in the fair value of these investments recorded in other income/(loss). The Bank does not participate in speculative trading practices and holds these investments indefinitely as the Bank periodically evaluates its liquidity needs. The Bank classifies certain securities as AFS and carries these securities at their fair value. Unrealized gains and losses on these securities are recognized in accumulated other comprehensive income (AOCI). HTM securities are carried at cost, adjusted for periodic principal repayments, amortization of premiums and accretion of discounts. The Bank classifies these investments as HTM securities because the Bank has the positive intent and ability to hold these securities until maturity. Certain changes in circumstances may cause the Bank to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of an HTM security because of certain changes in circumstances, such as evidence of significant deterioration in the issuer's creditworthiness or changes in regulatory requirements, is not considered to be inconsistent with its original classification. Other events that are isolated, nonrecurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without calling into question its intent to hold other debt securities to maturity. In addition, sales of debt securities that meet either of the following two conditions may be considered as maturities for purposes of the classification of securities: (i) the sale occurs near enough to its maturity date (or call date if exercise of the call is probable) that interest rate risk is substantially eliminated as a pricing factor and changes in market interest rates would not have a significant effect on the security's fair value, or (ii) the sale occurs after the Bank has already collected a substantial portion (at least 85%) of the principal outstanding at acquisition because of prepayments on the debt security or scheduled payments on a debt security payable in equal installments over its term. The Bank calculates the amortization of purchase premiums and accretion of purchase discounts on investments using the level-yield method on a retrospective basis over the estimated life of the securities. This method requires a retrospective adjustment of the effective yield each time the Bank changes the estimated life as if the new estimate had been known since the original acquisition date of the securities. The Bank uses nationally recognized, market-based, third-party prepayment models to project estimated lives. On a quarterly basis, the Bank evaluates its individual AFS investment securities in an unrealized loss position for impairment. A security is considered impaired when its fair value is less than its amortized cost basis. With respect to any debt security, a credit loss is defined as the amount by which the amortized cost basis exceeds the present value of the cash flows expected to be collected. If a credit loss exists but the entity does not intend to sell the debt security and it is not more likely than not that the entity will be required to sell the debt security before the anticipated recovery of its remaining amortized cost basis (the amortized cost basis less any current-period credit loss), an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The allowance is limited by the amount of the unrealized loss. Accrued interest receivable is recorded separately on the Statements of Condition. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings as net unrealized gain/(loss) on AFS securities. If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to net unrealized gain/(loss) on AFS securities within other comprehensive income/(loss). On a quarterly basis, the Bank evaluates its HTM investment securities for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. If necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. For improvements in impaired HTM securities with an allowance for credit losses, the allowance for credit losses associated with recoveries may be derecognized up to its full amount. Accrued interest receivable is recorded separately on the Statements of Condition. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. See Note 4 – Investments for details on the allowance methodologies relating to AFS and HTM securities. |
Derivatives, Offsetting Fair Value Amounts, Policy | Financial Instruments Meeting Netting Requirements. The Bank presents certain financial instruments, including derivative instruments and securities purchased under agreements to resell, on a net basis when they have a legal right of offset and all other requirements for netting are met (collectively referred to as the netting requirements). The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when the netting requirements are met. The Bank did not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. |
Consolidation, Variable Interest Entity, Policy | Variable Interest Entities. The Bank’s investments in variable interest entities (VIEs) relate to private-label residential mortgage-backed securities (PLRMBS). On an ongoing basis, the Bank performs a quarterly evaluation to determine whether it is the primary beneficiary in any VIE. As the Bank does not have the power to significantly affect the economic performance of these investments, the Bank determined that it is not a primary beneficiary of any of these VIEs and concluded that consolidation accounting is not required as of December 31, 2023. In addition, the Bank does not design, sponsor, transfer, service, or provide credit liquidity support in any of its investments in VIEs. The Bank’s maximum loss exposure for these investments is limited to the carrying value. |
Federal Home Loan Bank Advances, Policy [Policy Text Block] | Advances. The Bank reports advances (loans to members, former members or their successors or housing associates) either at amortized cost or at fair value when the fair value option is elected. Advances carried at amortized cost are evaluated quarterly for expected credit losses and reported net of hedging adjustments. The Bank recognizes hedging adjustments resulting from the discontinuation of a hedging relationship to interest income using a level-yield methodology. Interest on advances is credited to income as earned. For advances carried at fair value, the Bank recognizes contractual interest in interest income. Accrued interest receivable is recorded separately on the Statements of Condition. The advances carried at amortized cost are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. See Note 5 – Advances for details on the allowance methodologies relating to advances. Advance Modifications. In cases in which the Bank funds an advance concurrent with or within a short period of time before or after the prepayment of a previous advance to the same member, at market rates, the subsequent advance is accounted for as a new advance. The Bank does not issue advances at non-market rates. If a member makes a request for a modification to an existing advance, the Bank compares the present value of the cash flows on the modified advance to the present value of the cash flows remaining on the original advance. If there is at least a 10% difference in the present value of cash flows or if the Bank concludes the difference between the advances is more than minor based on a qualitative assessment of the modifications made to the original contractual terms, then the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Modification requests with a difference in cash flows that is more than minor are not accepted by the Bank. Prepayment Fees. When a borrower prepays certain advances prior to the original maturity, the Bank may charge the borrower a prepayment fee. For certain advances with full or partial prepayment symmetry, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. In November 2018, the Bank discontinued offering advances with partial prepayment symmetry. For prepaid advances that are hedged and meet the hedge accounting requirements, the Bank terminates the hedging relationship upon prepayment and records the associated fair value gains and losses, adjusted for the prepayment fees, in interest income. If a new advance represents a modification of an original hedged advance, the fair value gains or losses on the advance and the prepayment fees are included in the carrying amount of the modified advance, and gains or losses and prepayment fees are amortized in interest income over the life of the modified advance using the level-yield method. If the modified advance is also hedged and the hedge meets the hedge accounting requirements, the modified advance is marked to fair value after the modification, and subsequent fair value changes are recorded in interest income on advances. If the prepayment represents an extinguishment of the original hedged advance, the prepayment fee and any fair value gain or loss are immediately recognized in interest income. |
Mortgage Loans Held for Portfolio | Mortgage Loans Held for Portfolio. Under the Mortgage Partnership Finance® (MPF®) Program, the Bank purchased from members, for its own portfolio, conventional conforming fixed rate mortgage loans under the MPF Original product. After June 30, 2021, we no longer directly purchase, or facilitate the purchase of, mortgage loans from our members. The Bank classifies mortgage loans as held for portfolio and, accordingly, reports them at their principal amount outstanding net of unamortized premiums, unamortized credit enhancement fees paid as a lump sum at the time loans are purchased, discounts, and unrealized gains and losses from loans initially classified as mortgage loan commitments. The Bank aggregates the mortgage loans by similar characteristics (type, maturity, interest rate, and acquisition date) in determining prepayment estimates. A retrospective adjustment is required each time the Bank changes the estimated amounts as if the new estimate had been known since the original acquisition date of the assets. The Bank uses nationally recognized, market-based, third-party prepayment models to project estimated lives. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. An allowance for credit losses is recorded with a corresponding adjustment to the provision for/(reversal of) credit losses. The Bank measures expected credit losses on mortgage loans on a loan-level basis, factoring in the credit enhancement structure at the master commitment level. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The Bank includes estimates of expected recoveries within the allowance for credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. Accrued interest receivable is recorded separately on the Statements of Condition. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status. A past due loan is one where the borrower has failed to make a scheduled full payment of principal and interest within 30 days of its due date. The Bank places a mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the participating financial institution is doubtful, when the collection of the contractual principal or interest from the participating financial institution is reported 90 days or more past due, or when the loan is in foreclosure, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. Loans that are on nonaccrual status and that are considered collateral-dependent are measured for credit losses based on the fair value of the underlying property less estimated selling costs. Loans are considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral; that is, if it is considered likely that the borrower will default and there is no credit enhancement to offset losses under the master commitment, or the collectability or availability of credit enhancement is deemed to be uncertain. Collateral-dependent loans are credit deteriorated if the fair value of the underlying collateral less estimated selling costs is insufficient to recover the unpaid principal balance on the loan. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful, then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on nonaccrual status may be restored to accrual when (1) none of its contractual principal and interest is due and unpaid, and the Bank expects repayment of the remaining contractual interest and principal, or (2) it otherwise becomes well secured and in the process of collection. Effective January 1, 2023, the Bank adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Subsequent to adoption, all loan modifications are evaluated under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or is a continuation of the existing loan. An MPF loan that shares similar risk characteristics with other loans is evaluated for credit losses on a collective basis. MPF loans that do not share risk characteristics with other loans are individually evaluated for credit losses. MPF loans that are identified for individual evaluation are either delinquent or classified as nonaccrual, in process of foreclosing on the collateral, or have been modified in response to a borrower’s financial difficulty. Credit loss is measured by factoring in expected cash flow shortfalls incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates, if applicable. For all mortgage loans that are more than 180 days past due and that have any outstanding balance in excess of the fair value of the property, less costs to sell, the excess is charged off at the end of the month. The Bank did not purchase mortgage loans with credit deterioration present at the time of purchase. See Note 6 – Mortgage Loans Held for Portfolio for details on the allowance methodologies relating to mortgage loans. |
Other Fees | Other Fees. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities. All derivatives are recognized on the Statements of Condition at their fair values, including accrued interest, net of cash collateral received from or pledged to clearing agents or counterparties, including accrued interest, and are reported as either derivative assets or derivative liabilities. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset, and if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. The Bank uses London Clearing House (LCH) Ltd for all cleared derivative transactions. The rulebook of LCH Ltd characterizes variation margin as daily settlement payments, and initial margin is considered cash collateral. Each derivative is designated as one of the following: (1) a qualifying hedge of the change in fair value of (i) a recognized asset or liability or (ii) an unrecognized firm commitment (a fair value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes or of certain advances and consolidated obligation bonds for which the Bank elected the fair value option (an economic hedge). If hedging relationships meet certain criteria, including but not limited to formal documentation of the hedging relationship and an expectation to be hedge effective, they are eligible for hedge accounting, and the offsetting changes in fair value of the hedged items attributable to the hedged risk may be recorded in earnings. The application of hedge accounting generally requires the Bank to evaluate the effectiveness of the hedging relationships at inception and on an ongoing basis and to calculate the changes in fair value of the derivatives and the related hedged items independently. This is known as the long-haul method of hedge accounting. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a qualifying hedge relationship as of the trade date. In many hedging relationships, the Bank may designate the hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. The Bank records the changes in the fair value of the derivatives and the hedged item beginning on the trade date. Changes in the fair value of a derivative that is designated as a fair value hedge, along with changes in the fair value of the hedged asset or liability (hedged item) that are attributable to the hedged risk (including changes that reflect gains or losses on firm commitments), are recorded in net interest income in the same line as the earnings effect of the hedged item. Net gains and losses on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains and losses, which include net interest settlements. For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in Accumulated Other Comprehensive Income (AOCI) as “Net unrealized gain/(loss) on AFS securities.” The Bank hedges the benchmark risk component of cash flows in a fair value hedge. Changes in the fair value of a derivative designated as an economic hedge are recorded in current period earnings with no fair value adjustment to an asset or liability. An economic hedge is defined as a derivative hedging certain advances and consolidated obligation bonds for which the Bank elected the fair value option, or hedging specific or non-specific underlying assets, liabilities, or firm commitments, that does not qualify or was not designated for fair value hedge accounting, but is an acceptable hedging strategy under the Bank's risk management program. These economic hedging strategies also comply with Finance Agency regulatory requirements prohibiting speculative hedge transactions. An economic hedge introduces the potential for earnings variability caused by the changes in fair value of the derivatives that are recorded in the Bank's income but are not offset by corresponding changes in the value of the economically hedged assets, liabilities, or firm commitments. Changes in the fair value of these non-qualifying hedges are recorded in other income/(loss) as “Net gain/(loss) on derivatives.” In addition, the net settlements associated with these non-qualifying hedges are recorded in other income/(loss) as “Net gain/(loss) on derivatives.” Cash flows associated with these stand-alone derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be designated as a financing derivative. The net settlements of interest receivables and payables on derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated underlying hedged item. The net settlements of interest receivables and payables on intermediated derivatives for members and other economic hedges are recognized in other income/(loss) as “Net gain/(loss) on derivatives.” The Bank discontinues hedge accounting prospectively when: (i) it determines that the derivative is no longer highly effective in offsetting changes in the fair value of a hedged item (including hedged items such as firm commitments or forecasted transactions); (ii) the derivative or the hedged item expires or is sold, terminated, or exercised; (iii) it is no longer probable that the forecasted transaction will occur in the originally expected period; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; (v) it determines that designating the derivative as a hedging instrument is no longer appropriate; (vi) a critical term on the hedged item changes; or (vii) it decides to use the derivative to offset changes in the fair value of other derivatives or instruments carried at fair value. When hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative on the Statements of Condition at its fair value, ceases to adjust the hedged asset or liability for changes in fair value, and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using a level-yield methodology. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Bank continues to carry the derivative on the Statements of Condition at its fair value, removing from the Statements of Condition any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. The Bank may be the primary obligor on consolidated obligations and may make advances in which derivative instruments are embedded. Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance or debt (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that: (i) the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (ii) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument equivalent to an economic hedge. However, the entire contract is carried on the Statements of Condition at fair value and no portion of the contract is designated as a hedging instrument if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current period earnings (such as an investment security classified as trading, as well as hybrid financial instruments that are eligible for the fair value option), or if the Bank cannot reliably identify and measure the embedded derivative for purposes of separating the derivative from its host contract. |
Premises, Software, and Equipment | Premises, Software, and Equipment . Premises, software, and equipment are included in other assets on the Statements of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization. |
Consolidated Obligations | Consolidated Obligations. Consolidated obligations are recorded at amortized cost unless the Bank has elected the fair value option, in which case the consolidated obligations are carried at fair value. |
Mandatorily Redeemable Capital Stock | Mandatorily Redeemable Capital Stock. The Bank reclassifies the capital stock subject to redemption from capital to a liability after a member provides the Bank with a written notice of redemption; gives notice of intention to withdraw from membership; attains nonmember status by merger or acquisition, charter termination, or other involuntary membership termination; or after a receiver or other liquidating agent for a member transfers the member's Bank capital stock to a nonmember entity, resulting in the member's shares then meeting the definition of a mandatorily redeemable financial instrument. Shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repayment of these mandatorily redeemable financial instruments (by repurchase or redemption of the shares) is reflected as a financing cash outflow in the Statements of Cash Flows once settled. See Note 11 – Capital for more information. If a member cancels its written notice of redemption or notice of withdrawal or if the Bank allows the transfer of mandatorily redeemable capital stock to a member, the Bank reclassifies mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock are no longer classified as interest expense. |
Off-Balance-Sheet Credit Exposure | Off-Balance Sheet Credit Exposures. |
Finance Agency Expenses | Finance Agency Expenses. |
Office Of Finance Expenses | Office of Finance Expenses. Each FHLBank is assessed a proportionate share of the cost of operating the Office of Finance, which facilitates the issuance and servicing of consolidated obligations. The Office of Finance allocates its operating and capital expenditures among the FHLBanks as follows: (1) two-thirds of the assessment is based on each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third of the assessment is based on an equal pro rata allocation. |
Affordable Housing Program | Affordable Housing Program. As more fully discussed in Note 9 – Affordable Housing Program, the FHLBank Act requires each FHLBank to establish and fund an Affordable Housing Program (AHP). The Bank charges the required funding for the AHP to earnings and establishes a liability. The AHP funds provide subsidies to members to assist in the purchase, construction, or rehabilitation of housing for households earning up to 80% of the median income for the area in which they live. Subsidies may be in the form of direct grants or below-market interest rate advances. Segment Reporting . In the fourth quarter of 2023, the Bank updated its internal reporting to reflect how the chief operating decision makers manage the business on a Bank-wide basis. As such, the Bank began disclosing its operating results on a Bank-wide basis rather than providing separate segment information for the mortgage-related business and advances-related business. Specifically, the Bank manages its business on a Bank-wide basis and not through multiple segments as its portfolio of amortizing mortgage loans has decreased in size following its decision in 2020 to no longer directly purchase, or facilitate the purchase of, mortgage loans from its members. Therefore, the Bank will no longer present separate segment information for the mortgage-related business and the advances-related business. This change has been reflected retrospectively within the Bank’s financial statements. |
New Accounting Pronouncements | Accounting Standards Update (ASU) Description Effective Date Effect on the Financial Statements or Other Significant Matters Facilitation of the Effects of Reference Rate Reform on Financial Reporting, as amended (ASU 2020-04) This update provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include: This guidance became effective beginning March 2020 through December 31, 2024. The Bank has assessed the guidance and has elected some of the optional expedients and exceptions provided related to the discounting transition for uncleared derivative transactions on a prospective basis since 2021, which did not have a material effect on the Bank’s financial condition, results of operations, cash flows, and financial statement disclosures. Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) This guidance eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses methodology while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Additionally, this guidance requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investment in leases. The guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2023. The Bank adopted all elements of this guidance prospectively as of January 1, 2023. The adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, cash flows, and financial statement disclosures. Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) This guidance improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses, including if an entity only has a single reportable segment. This guidance becomes effective for the Bank for the annual period ending December 31, 2024, and for interim and annual periods thereafter. While the adoption of this guidance will not have any effect on the Bank’s financial condition, results of operations, or cash flows, the Bank is in the process of evaluating the impact of this guidance and its effect on the Bank’s disclosures. |
Derivatives Credit Policy | Credit Risk. The Bank is subject to credit risk from potential nonperformance by counterparties to the interest rate exchange agreements. All of the Bank’s agreements governing uncleared derivative transactions contain master netting provisions to help mitigate the credit risk exposure to each counterparty. The Bank manages counterparty credit risk through credit analyses and collateral requirements and by following the requirements of the Bank’s risk management policies, credit guidelines, and Finance Agency and other regulations. The Bank also requires credit support agreements on all uncleared derivatives. For cleared derivatives, the clearing house is the Bank’s counterparty. The requirement that the Bank post initial margin and settle variation margin through a clearing agent to the clearing house exposes the Bank to institutional credit risk if its futures commission merchant, or clearing agent, fails to meet its obligations. The use of a clearing house, or central counterparty, lowers overall credit risk exposure because it employs standard valuation and initial and variation margin processes and is specifically designed to withstand remote but plausible futures commission merchant default credit events. Variation margin is settled for changes in the value of the portfolio, and initial margin is posted for changes in risk profile of the portfolio. The Bank analyzed the enforceability of offsetting rights applicable to its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable bankruptcy law and Commodity Futures Trading Commission rules in the event of a clearing house or clearing agent insolvency and under applicable clearing house rules upon a non-insolvency-based event of default of the clearing house or clearing agent. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular clearing house. |
Derivatives, Methods of Accounting, Hedging Derivatives | General . The Bank may enter into interest rate swaps (including callable, putable, and basis swaps) and cap and floor agreements (collectively, interest rate exchange agreements or derivatives). Most of the Bank’s interest rate exchange agreements are executed in conjunction with the origination of advances, the issuance of consolidated obligations, or the investment in fixed rate assets to create variable rate structures. The interest rate exchange agreements are generally executed at the same time the advances, consolidated obligations, and investments are transacted and generally have the same maturity dates as the related hedged instrument. The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. Derivatives may be either uncleared or cleared. In an uncleared derivative transaction, the Bank’s counterparty is the executing bank or broker-dealer. In a cleared derivative transaction, the Bank may execute the transaction with an executing bank or broker-dealer, either on or off a swap execution facility, but in either case, the Bank’s counterparty is a derivatives clearing organization (clearing house) once the derivative transaction has been accepted for clearing. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit. Additional uses of interest rate exchange agreements include: (i) offsetting embedded features in assets and liabilities, (ii) hedging anticipated issuance of debt, (iii) matching against consolidated obligation discount notes to create the equivalent of callable or non-callable fixed rate debt, (iv) modifying the repricing frequency of assets and liabilities, (v) matching against certain advances and consolidated obligations for which the Bank elected the fair value option, and (vi) exactly offsetting other derivatives cleared at a clearing house. The Bank’s use of interest rate exchange agreements results in one of the following classifications: (i) a fair value hedge of an underlying financial instrument or (ii) an economic hedge of assets, liabilities, or other derivatives. The Bank primarily uses interest rate swaps, which are agreements between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be paid and the manner in which the cash flows will be calculated. One of the simplest forms of an interest rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, the party receives cash flows equivalent to the interest on the same notional principal amount at a variable rate for the same period of time. The variable rate received or paid by the Bank in most interest rate exchange agreements is based on a daily repricing index, such as SOFR or the effective Federal funds rate. Hedging Activities. The Bank documents at inception all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing hedge effectiveness. Derivatives designated as fair value hedges may be transacted to hedge: (i) assets and liabilities on the Statements of Condition, (ii) firm commitments, or (iii) forecasted transactions. The Bank also formally assesses (both at hedge inception and on an ongoing basis) whether the hedging derivatives have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain effective hedges in future periods. The Bank typically uses regression analyses or other statistical analyses to assess the effectiveness of its hedges. When it is determined that a derivative has not been or is not expected to be effective as a hedge, the Bank discontinues hedge accounting prospectively. The Bank may have the following types of hedged items: Investments – The Bank may invest in U.S. Treasury and agency obligations as well as agency MBS. In the past, the Bank has also invested in PLRMBS rated AAA at the time of acquisition. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. The Bank may manage prepayment risk and interest rate risk by funding investment securities with consolidated obligations that have call features or by hedging the prepayment risk with a combination of consolidated obligations and callable swaps. The Bank may execute callable swaps in conjunction with the issuance of certain liabilities to create funding that is economically equivalent to fixed rate callable debt. Although these derivatives are economic hedges against prepayment risk and are designated to individual liabilities, they do not receive either fair value or cash flow hedge accounting treatment. Investment securities may be classified as trading, AFS, or HTM. The Bank may also manage the risk arising from changing market prices or cash flows of investment securities classified as trading or AFS by entering into interest rate exchange agreements that offset the changes in fair value or cash flows of the securities. Hedge relationships that involve AFS securities are designated as fair value hedges. For AFS securities that have been hedged and qualify as a fair value hedge, the Bank records the portion of the change in the fair value of the investment related to the risk being hedged in interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in AOCI as “Net unrealized gain/(loss) on AFS securities.” Advances – The Bank offers a wide range of advances structures to meet members’ funding needs. These advances may have maturities up to 30 years with fixed or adjustable rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and options characteristics of advances to more closely match the characteristics of the Bank’s funding liabilities. In general, whenever a member executes a fixed rate advance, fixed rate advance with embedded options, or a variable rate advance with embedded options, the Bank will simultaneously execute an interest rate exchange agreement with terms that offset the terms and any embedded options in the advance. The combination of the advance and the interest rate exchange agreement effectively creates a variable rate asset. Fixed rate advances without options that are offset with an interest rate exchange agreement are generally treated as fair value hedges. Advances with embedded options are recorded using the fair value option and are economically hedged using interest rate exchange agreements. Mortgage Loans – Prior to June 30, 2021, the Bank invested in fixed rate mortgage loans. The prepayment options embedded in mortgage loans can result in extensions or contractions in the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest rate risk and prepayment risk associated with fixed rate mortgage loans through a combination of debt issuance and derivatives. The Bank uses both callable and non-callable debt to achieve cash flow patterns and market value sensitivities for liabilities similar to those expected on the mortgage loans. Net income could be reduced if the Bank replaces prepaid mortgage loans with lower-yielding assets and the Bank’s higher funding costs are not reduced accordingly. The Bank may execute callable swaps in conjunction with the issuance of short-term or adjustable rate consolidated obligations to create funding that is economically equivalent to fixed rate callable bonds. This type of hedge is treated as an economic hedge. Consolidated Obligations – Consolidated obligation bonds may be structured to meet the Bank’s or the investors’ needs. Common structures include fixed rate bonds with or without call options and adjustable rate bonds with or without embedded options. In general, when bonds are issued, the Bank simultaneously executes an interest rate exchange agreement with terms that offset the terms and embedded options, if any, of the consolidated obligation bond. This combination of the consolidated obligation bond and the interest rate exchange agreement effectively creates an adjustable rate bond. These transactions generally receive fair value hedge accounting treatment. When the Bank issues consolidated obligation discount notes, it may also simultaneously enter into an interest rate exchange agreement to convert the fixed rate discount note to an adjustable rate discount note. This type of hedge is treated as an economic hedge. In addition, when certain consolidated obligation bonds for which the Bank has elected the fair value option are issued, the Bank simultaneously executes an interest rate exchange agreement with terms that economically offset the terms of the consolidated obligation bond. However, this type of hedge is treated as an economic hedge because these combinations do not meet the requirements for fair value hedge accounting treatment. Offsetting Derivatives – The Bank enters into derivatives to offset the economic effect of other derivatives that are no longer designated to advances, investments, or consolidated obligations. Offsetting derivatives do not receive hedge accounting treatment and are separately marked to market through earnings. The net result of the accounting for these derivatives does not significantly affect the operating results of the Bank. The notional amount of an interest rate exchange agreement serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit risk and market risk. The risks of derivatives can be measured meaningfully on a portfolio basis by taking into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. |
Derivatives, Embedded Derivatives | When a callable bond for which the Bank is the primary obligor is issued, the Bank may simultaneously enter into an interest rate swap (wherein the Bank pays a variable rate and receives a fixed rate) with a call feature that mirrors the call option embedded in the bond (a sold callable option in a swap). |
Stockholders' Equity, Policy | Capital Requirements. The Bank issues a single class of capital stock, Class B stock, with a par value of $100 per share, which may be redeemed (subject to certain conditions) upon five years' notice by the member to the Bank. In addition, at its discretion, under certain conditions, the Bank may repurchase excess stock at any time. (See “Excess Stock” below for more information.) The Bank’s capital stock may be issued, redeemed, and repurchased only at its stated par value, subject to certain statutory and regulatory requirements. The Bank may only redeem or repurchase capital stock from a shareholder if, following the redemption or repurchase, the shareholder will continue to meet its minimum capital stock requirement and the Bank will continue to meet its regulatory requirements for total capital, leverage capital, and risk-based capital. Under the Housing and Economic Recovery Act of 2008, the Director of the Finance Agency is responsible for setting the risk-based capital standards for the FHLBanks. The FHLBank Act and regulations governing the operations of the FHLBanks require that the Bank’s minimum capital stock requirement for shareholders must be sufficient to enable the Bank to meet its regulatory requirements for total capital, leverage capital, and risk-based capital. The Bank must maintain: (i) total regulatory capital in an amount equal to at least 4% of its total assets, (ii) leverage capital in an amount equal to at least 5% of its total assets, and (iii) permanent capital in an amount that is greater than or equal to its risk-based capital requirement. The Finance Agency requires each FHLBank to maintain a ratio of at least 2% of capital stock to total assets in order to help preserve the cooperative structure incentives that encourage members to remain fully engaged in the oversight of their investment in the FHLBank. The Finance Agency will consider the proportion of capital stock to assets, measured on a daily average basis at monthend, when assessing each FHLBank’s capital management practices. As of December 31, 2023 and 2022, the Bank complied with this capital guidance. Because the Bank issues only Class B stock, regulatory capital and permanent capital for the Bank are both composed of retained earnings and Class B stock, including mandatorily redeemable capital stock (which is classified as a liability for financial reporting purposes). Regulatory capital and permanent capital do not include AOCI. Leverage capital is defined as the sum of permanent capital, weighted by a 1.5 multiplier, plus non-permanent capital. The risk-based capital requirement is equal to the sum of the Bank’s credit risk, market risk, and operational risk capital requirements, all of which are calculated in accordance with the rules and regulations of the Finance Agency. The Finance Agency may require an FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined. |
Fair Value of Financial Instruments, Policy | The fair value hierarchy is used to prioritize the fair value methodologies and valuation techniques as well as the inputs to the valuation techniques used to measure fair value for assets and liabilities carried at fair value on the Statements of Condition. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). An entity must disclose the level within the fair value hierarchy in which the measurements are classified for all financial assets and liabilities measured on a recurring or non-recurring basis. The application of the fair value hierarchy to the Bank’s financial assets and financial liabilities that are carried at fair value either on a recurring or non-recurring basis is as follows: • Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in an active market that the reporting entity can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets or liabilities in active markets; (2) quoted prices for identical or similar assets or liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals, and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models, or similar techniques. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following assets and liabilities, including those for which the Bank has elected the fair value option, are carried at fair value on the Statements of Condition as of December 31, 2023: • Trading securities • AFS securities • Certain advances • Derivative assets and liabilities • Certain consolidated obligation bonds • Certain other assets The Bank elected the fair value option for certain financial instruments as follows: • Adjustable rate advances with embedded caps and floors; • Callable fixed rate advances; • Putable fixed rate advances; • Fixed rate advances with partial prepayment symmetry; • Callable or non-callable floating rate consolidated obligation bonds with embedded caps; • Convertible consolidated obligation bonds; • Adjustable or fixed rate range accrual consolidated obligation bonds; • Ratchet consolidated obligation bonds; • Adjustable rate advances indexed to certain indices such as the Prime Rate, U.S. Treasury bill, and Effective Federal Funds Rate; • Adjustable rate consolidated obligation bonds indexed to certain indices like the Prime Rate and U.S. Treasury bill; • Step-up callable bonds, which pay interest at increasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-up dates according to the terms of the bond offerings; and • Step-down callable bonds, which pay interest at decreasing fixed rates for specified intervals over the life of the bond and can generally be called at the Bank’s option on the step-down dates according to the terms of the bond offerings. The Bank has elected the fair value option for certain financial instruments to assist in mitigating potential earnings volatility that can arise from economic hedging relationships in which the carrying value of the hedged item is not adjusted for changes in fair value. The potential earnings volatility associated with recording fair value changes of only the hedging derivative is the Bank’s primary reason for electing the fair value option for financial assets and liabilities that do not qualify for hedge accounting or that have not previously met or may be at risk for not meeting the hedge effectiveness requirements. |
Fair Value Transfer, Policy | For instruments carried at fair value, the Bank reviews the fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. For the periods presented, the Bank did not have any reclassifications for transfers in or out of level 3 of the fair value hierarchy. |
Cash and Cash Equivalents, Policy | Cash on hand, cash items in the process of collection, and amounts due from correspondent banks and the Federal Reserve Bank are included in Cash and due from banks on the Statements of Condition. Cash and due from banks includes certain compensating balances, where |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instrument [Line Items] | |
Trading Securities (and Certain Trading Assets) | The estimated fair value of trading securities that were MBS - other U.S. obligations was a de minimis amount and $1 million as of December 31, 2023 and 2022, respectively. |
Available-for-sale Securities | AFS securities by major security type as of December 31, 2023 and 2022, were as follows: December 31, 2023 (In millions) Amortized Cost (1) Allowance for Credit Losses Gross Gross Estimated Fair Value U.S. Treasury obligations $ 4,530 $ — $ 4 $ — $ 4,534 MBS: Government Sponsored Enterprises (GSEs) – multifamily 12,500 — 4 (83) 12,421 PLRMBS 1,075 (31) 35 (20) 1,059 Total MBS 13,575 (31) 39 (103) 13,480 Total $ 18,105 $ (31) $ 43 $ (103) $ 18,014 December 31, 2022 (In millions) Amortized Cost (1) Allowance for Credit Losses Gross Gross Estimated Fair Value U.S. Treasury obligations $ 4,012 $ — $ 12 $ — $ 4,024 MBS: GSEs – multifamily 7,562 — 2 (57) 7,507 PLRMBS 1,183 (30) 54 (25) 1,182 Total MBS 8,745 (30) 56 (82) 8,689 Total $ 12,757 $ (30) $ 68 $ (82) $ 12,713 (1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable |
Held-to-maturity Securities | Held-to-Maturity Securities. The Bank classifies the following securities as HTM because the Bank has the positive intent and ability to hold these securities to maturity: December 31, 2023 (In millions) Amortized Cost (1) Gross Unrecognized Holding Gains (2) Gross Unrecognized Holding Losses (2) Estimated MBS – Other U.S. obligations – single-family $ 49 $ — $ (1) $ 48 MBS – GSEs: MBS – GSEs – single-family 605 1 (16) 590 MBS – GSEs – multifamily 1,069 — (5) 1,064 Subtotal MBS – GSEs 1,674 1 (21) 1,654 PLRMBS 124 — (8) 116 Total $ 1,847 $ 1 $ (30) $ 1,818 December 31, 2022 (In millions) Amortized Cost (1) Gross Unrecognized Holding Gains (2) Gross Unrecognized Holding Losses (2) Estimated MBS – Other U.S. obligations – single-family $ 72 $ — $ (2) $ 70 MBS – GSEs: MBS – GSEs – single-family 745 1 (22) 724 MBS – GSEs – multifamily 1,209 — (10) 1,199 Subtotal MBS – GSEs 1,954 1 (32) 1,923 PLRMBS 155 — (12) 143 Total $ 2,181 $ 1 $ (46) $ 2,136 (1) Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $6 million and $5 million at December 31, 2023 and 2022, respectively. (2) Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value. |
Debt Securities, Available-for-sale, Allowance for Credit Loss | Allowance for Credit Losses on AFS and HTM Securities. The following table presents a rollforward of the allowance for credit losses on PLRMBS classified as AFS for the years ended December 31, 2023, 2022, and 2021. The Bank recorded no allowance for credit losses associated with HTM securities during the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Balance, beginning of the period $ 30 $ 17 $ 21 (Charge-offs)/recoveries (3) (2) (1) Provision for/(reversal of) credit losses 4 15 (3) Balance, end of the period $ 31 $ 30 $ 17 |
Available-for-sale Securities | |
Debt Instrument [Line Items] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | December 31, 2023 Less Than 12 Months 12 Months or More Total (In millions) Estimated Gross Unrealized Estimated Gross Unrealized Estimated Gross Unrealized MBS – GSEs – multifamily $ 7,517 $ 45 $ 3,525 $ 38 $ 11,042 $ 83 PLRMBS 30 1 283 19 313 20 Total $ 7,547 $ 46 $ 3,808 $ 57 $ 11,355 $ 103 December 31, 2022 Less Than 12 Months 12 Months or More Total (In millions) Estimated Gross Estimated Gross Unrealized Estimated Gross Unrealized MBS – GSEs – multifamily $ 6,635 $ 57 $ — $ — $ 6,635 $ 57 PLRMBS 292 17 68 8 360 25 Total $ 6,927 $ 74 $ 68 $ 8 $ 6,995 $ 82 |
Investments Classified by Contractual Maturity Date and Prepayment Fees | The amortized cost and estimated fair value of U.S. Treasury securities classified as AFS by contractual maturity (based on contractual final principal payment) and of MBS classified as AFS as of December 31, 2023 and 2022, are shown below. Expected maturities of MBS classified as AFS will differ from contractual maturities because borrowers may have the right to call or prepay the underlying obligations with or without call or prepayment fees. December 31, 2023 (In millions) Year of Contractual Maturity Amortized Estimated U.S. Treasury obligations: Due in 1 year or less $ 145 $ 145 Due after 1 year through 5 years 4,385 4,389 Total U.S. Treasury obligations $ 4,530 $ 4,534 MBS 13,575 13,480 Total $ 18,105 $ 18,014 December 31, 2022 (In millions) Year of Contractual Maturity Amortized Estimated U.S. Treasury obligations – Due after 1 year through 5 years $ 4,012 $ 4,024 MBS 8,745 8,689 Total $ 12,757 $ 12,713 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank, Advances | Redemption Terms. The following table presents advances outstanding by redemption term and weighted-average interest rate at December 31, 2023 and 2022. (Dollars in millions) 2023 2022 Redemption Term Amount Outstanding (1) Weighted Amount Outstanding (1) Weighted Overdrawn demand and overnight deposit accounts $ 2 5.15 % $ 2 4.15 % Within 1 year (2) 35,241 4.87 71,050 4.34 After 1 year through 2 years 12,532 3.88 7,634 3.30 After 2 years through 3 years 6,437 3.23 4,036 2.22 After 3 years through 4 years 2,548 3.62 3,391 2.05 After 4 years through 5 years 3,660 4.07 2,815 3.24 After 5 years 1,290 3.71 1,189 3.50 Total par value 61,710 4.38 % 90,117 4.03 % Valuation adjustments for hedging activities (371) (670) Valuation adjustments under fair value option (4) (47) Total $ 61,335 $ 89,400 (1) Carrying amounts exclude accrued interest receivable of $85 million and $241 million at December 31, 2023 and 2022, respectively. (2) Advances outstanding with redemption terms within three months totaled $16.8 billion and $46.3 billion at December 31, 2023 and 2022, respectively. The following table summarizes advances at December 31, 2023 and 2022, by the earlier of the year of redemption term or next call date for callable advances and by the earlier of the year of redemption term or next put date for putable advances. Earlier of Redemption Earlier of Redemption (In millions) 2023 2022 2023 2022 Overdrawn demand and overnight deposit accounts $ 2 $ 2 $ 2 $ 2 Within 1 year 35,561 71,370 36,115 71,850 After 1 year through 2 years 12,542 7,634 13,000 7,634 After 2 years through 3 years 6,437 4,046 6,149 3,836 After 3 years through 4 years 2,558 3,391 2,551 3,391 After 4 years through 5 years 3,660 2,825 2,917 2,215 After 5 years 950 849 976 1,189 Total par value $ 61,710 $ 90,117 $ 61,710 $ 90,117 Concentration Risk. The following tables present the concentration in advances to the top 10 borrowers and their affiliates at December 31, 2023 and 2022. The tables also present the interest income from these advances before the impact of interest rate exchange agreements hedging these advances for the years ended December 31, 2023 and 2022. December 31, 2023 (Dollars in millions) Name of Borrower Advances Percentage of Interest (1) Percentage of JPMorgan Chase, National Association (2) $ 23,833 39 % $ 1,018 31 % Western Alliance Bank 6,200 10 199 6 City National Bank 3,000 5 353 11 First Technology Federal Credit Union (3) 2,414 4 132 4 MUFG Union Bank, National Association (4) 2,052 3 153 5 SchoolsFirst Federal Credit Union 1,823 3 48 1 Bank of America California, National Association 1,450 2 68 2 Luther Burbank Savings (3)(5) 1,152 2 44 1 Wells Fargo National Bank West 1,000 2 78 2 First Foundation Bank 900 1 46 1 Subtotal 43,824 71 2,139 64 Others 17,886 29 1,187 36 Total par value $ 61,710 100 % $ 3,326 100 % December 31, 2022 (Dollars in millions) Name of Borrower Advances Percentage of Interest (1) Percentage of Silicon Valley Bank (6) $ 15,000 17 % $ 170 14 % First Republic Bank (subsequently acquired by JPMorgan Chase, National Association) (2) 14,000 16 175 14 City National Bank 10,000 11 69 6 Bank of the West (7) 4,300 5 30 2 MUFG Union Bank, National Association (4) 4,300 5 129 11 Silvergate Bank 4,300 5 38 3 Western Alliance Bank 4,300 5 67 5 First Technology Federal Credit Union (3) 4,195 5 72 6 Wells Fargo National Bank West 2,000 2 24 2 Bank of California, National Association 1,500 1 8 1 Subtotal 63,895 72 782 64 Others 26,222 28 443 36 Total par value $ 90,117 100 % $ 1,225 100 % (1) Interest income amounts exclude the interest effect of interest rate exchange agreements with derivative counterparties; as a result, the total interest income amounts will not agree to the Statements of Income. The amount of interest income from advances can vary depending on the amount outstanding, terms to maturity, interest rates, and repricing characteristics. (2) On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) closed First Republic Bank and appointed the FDIC as receiver. On the same date, the FDIC transferred all of the deposits and substantially all of the assets of First Republic Bank, including $28.1 billion in advances outstanding from the Bank, to JPMorgan Chase, National Association, a nonmember. These advances outstanding are fully collateralized and are not expected to result in any credit loss to the Bank. (3) An officer or director of the member was a Bank director during 2023 and 2022. (4) On December 1, 2022, U.S. Bancorp, a nonmember, announced that it completed its acquisition of MUFG Union Bank, National Association. (5) On November 14, 2022, Luther Burbank Savings and Washington Federal Bank (a nonmember bank) announced the signing of a definitive merger agreement pursuant to which Washington Federal Bank will acquire Luther Burbank Savings, subject to receipt of regulatory and shareholder approval. On May 5, 2023, it was announced that merger approval was received from shareholders of both banks. On February 29, 2024, it was announced that the merger was completed. On the same date, Washington Federal Bank assumed all of the assets and liabilities of Luther Burbank Savings, including $1.2 billion in advances outstanding from the Bank. These advances outstanding are fully collateralized and are not expected to result in any credit loss to the Bank. (6) On March 10, 2023, Silicon Valley Bank was closed by the California DFPI and the FDIC was named as receiver. The FDIC created Silicon Valley Bridge Bank, N.A., whereby all of the deposits and substantially all assets of Silicon Valley Bank were transferred to the bridge bank. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all the deposits and loans of Silicon Valley Bridge Bank, N.A., with First Citizens Bank and Trust Company. Silicon Valley Bank is no longer a member of the Bank. As of March 31, 2023, Silicon Valley Bridge Bank, N.A., had prepaid all outstanding advances to the Bank. (7) On February 1, 2023, BMO Harris, a nonmember, announced that it completed its acquisition of Bank of the West. Interest Rate Payment Terms. Interest rate payment terms for advances at December 31, 2023 and 2022, are detailed below: (In millions) 2023 2022 Par value of advances: Fixed rate: Due within 1 year $ 23,866 $ 47,621 Due after 1 year 26,467 18,050 Total fixed rate 50,333 65,671 Adjustable rate: Due within 1 year 11,377 23,431 Due after 1 year — 1,015 Total adjustable rate 11,377 24,446 Total par value $ 61,710 $ 90,117 |
Mortgage Loans Held for Portf_2
Mortgage Loans Held for Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents information as of December 31, 2023 and 2022, on mortgage loans held for portfolio, all of which are secured by one- to four-unit residential properties and single-unit homes. (In millions) 2023 2022 Fixed rate medium-term mortgage loans $ 12 $ 14 Fixed rate long-term mortgage loans 704 761 Subtotal 716 775 Unamortized premiums 41 43 Unamortized discounts (2) (2) Mortgage loans held for portfolio (1) 755 816 Less: Allowance for credit losses (1) (1) Total mortgage loans held for portfolio, net $ 754 $ 815 |
Financing Receivable Credit Quality Indicators | The following tables present the payment status for mortgage loans and other delinquency statistics for the Bank’s mortgage loans at December 31, 2023 and 2022. (Dollars in millions) Payment Status, at Amortized Cost (1) 2023 2022 30 – 59 days delinquent $ 5 $ 9 60 – 89 days delinquent 4 3 90 days or more delinquent 16 19 Total past due 25 31 Total current loans 730 785 Total mortgage loans held for portfolio $ 755 $ 816 In process of foreclosure, included above (2) $ 2 $ 3 Nonaccrual loans (3) $ 16 $ 19 Serious delinquencies as a percentage of total mortgage loans outstanding (4) 2.17 % 2.30 % (1) The amortized cost in a loan is the unpaid principal balance of the loan, adjusted for net deferred loan fees or costs, unamortized premiums or discounts, and direct write-downs. (2) Includes loans for which the servicer has reported a decision to foreclose or to pursue a similar alternative, such as deed-in-lieu. Loans in process of foreclosure are included in past due or current loans depending on their delinquency status. (3) At December 31, 2023 and 2022, $5 million and $7 million, respectively, of mortgage loans on nonaccrual status did not have an associated allowance for credit losses because these loans were either previously charged off to the expected recoverable value or the fair value of the underlying collateral, including any credit enhancements, is greater than the amortized cost of the loans. (4) Represents loans that are 90 days or more past due or in the process of foreclosure as a percentage of the recorded investment of total mortgage loans outstanding. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities by Component | Deposits and interest rate payment terms for deposits as of December 31, 2023 and 2022, were as follows: 2023 2022 (Dollars in millions) Amount Weighted Amount Weighted Interest-bearing deposits (adjustable rate) $ 957 5.15 % $ 983 4.15 % Non-interest-bearing deposits 5 6 Total $ 962 $ 989 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following is a summary of the Bank’s participation in consolidated obligation bonds at December 31, 2023 and 2022. (Dollars in millions) 2023 2022 Contractual Maturity Amount Weighted Amount Weighted Within 1 year $ 42,821 4.84 % $ 58,301 4.05 % After 1 year through 2 years 13,105 4.70 8,268 2.30 After 2 years through 3 years 5,938 1.34 2,317 1.26 After 3 years through 4 years 1,345 1.75 5,473 0.99 After 4 years through 5 years 942 2.98 1,255 1.47 After 5 years 826 2.35 1,293 1.73 Total par value 64,977 4.37 % 76,907 3.47 % Unamortized premiums — 1 Unamortized discounts (6) (5) Valuation adjustments for hedging activities (645) (1,083) Fair value option valuation adjustments (29) (52) Total $ 64,297 $ 75,768 |
Schedule of Long-term Debt by Call Feature | The Bank’s participation in consolidated obligation bonds at December 31, 2023 and 2022, was as follows: (In millions) 2023 2022 Par value of consolidated obligation bonds: Non-callable $ 38,945 $ 57,164 Callable 26,032 19,743 Total par value $ 64,977 $ 76,907 |
Schedule of Maturities of Long-term Debt by Contractual or Next Call Date | The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding at December 31, 2023 and 2022, by the earlier of the year of contractual maturity or next call date. (In millions) Earlier of Contractual 2023 2022 Within 1 year $ 55,291 $ 73,049 After 1 year through 2 years 9,160 3,310 After 2 years through 3 years 378 187 After 3 years through 4 years 100 313 After 4 years through 5 years 12 — After 5 years 36 48 Total par value $ 64,977 $ 76,907 |
Schedule of Short-term Debt | The Bank’s participation in consolidated obligation discount notes, all of which are due within one year, was as follows: 2023 2022 (Dollars in millions) Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Par value $ 19,321 5.23 % $ 36,159 4.13 % Unamortized discounts (134) (230) Total $ 19,187 $ 35,929 |
Schedule of Interest Rate Payment Terms for Debt | Interest rate payment terms for consolidated obligation bonds at December 31, 2023 and 2022, are detailed in the following table. (In millions) 2023 2022 Par value of consolidated obligation bonds: Fixed rate $ 37,464 $ 25,632 Adjustable rate 26,880 48,997 Step-up 633 2,278 Total consolidated obligation bonds, par value $ 64,977 $ 76,907 |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Activity in Affordable Housing Program Obligation [Table Text Block] | The AHP liability was as follows: (In millions) 2023 2022 2021 Balance, beginning of the period $ 111 $ 115 $ 120 AHP assessments 63 36 32 AHP grant payments (41) (40) (37) Balance, end of the period $ 133 $ 111 $ 115 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in AOCI for the years ended December 31, 2023, 2022, and 2021: (In millions) Net Unrealized Gain/(Loss) on AFS Securities Pension and Postretirement Benefits Total Balance, December 31, 2020 $ 244 $ (14) $ 230 Other comprehensive income/(loss): Net change in pension and postretirement benefits 5 5 Net change in fair value 96 96 Net current period other comprehensive income/(loss) 96 5 101 Balance, December 31, 2021 $ 340 $ (9) $ 331 Other comprehensive income/(loss): Net change in pension and postretirement benefits (6) (6) Net change in fair value (354) (354) Net current period other comprehensive income/(loss) (354) (6) (360) Balance, December 31, 2022 $ (14) $ (15) $ (29) Other comprehensive income/(loss): Net change in pension and postretirement benefits 4 4 Net change in fair value (47) (47) Net current period other comprehensive income/(loss) (47) 4 (43) Balance, December 31, 2023 $ (61) $ (11) $ (72) |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking Regulation, Total Capital [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | As of December 31, 2023 and 2022, the Bank complied with these capital rules and requirements as shown in the following table. 2023 2022 (Dollars in millions) Required Actual Required Actual Risk-based capital $ 1,210 $ 7,446 $ 898 $ 7,757 Total regulatory capital $ 3,713 $ 7,446 $ 4,842 $ 7,757 Total regulatory capital ratio 4.00 % 8.02 % 4.00 % 6.41 % Leverage capital $ 4,641 $ 11,169 $ 6,053 $ 11,636 Leverage ratio 5.00 % 12.03 % 5.00 % 9.61 % |
Schedule of Mandatorily Redeemable Capital Stock | The Bank had mandatorily redeemable capital stock totaling $706 million outstanding to six institutions at December 31, 2023, and $5 million outstanding to three institutions at December 31, 2022. These amounts have been classified as a liability on the Bank’s Statements of Condition. The changes in mandatorily redeemable capital stock for the years ended December 31, 2023, 2022, and 2021 were as follows: (In millions) 2023 2022 2021 Balance at the beginning of the period $ 5 $ 3 $ 2 Reclassified from/(to) capital during the period 1,252 46 25 Repurchase/redemption (551) (44) (24) Balance at the end of the period $ 706 $ 5 $ 3 |
Schedule of Mandatorily Redeemable Capital Stock by Maturity Date | The following table presents mandatorily redeemable capital stock amounts by contractual year of redemption at December 31, 2023 and 2022. (In millions) Contractual Year of Redemption 2023 2022 Year 3 $ 1 $ — Year 4 2 1 Year 5 702 3 Past contractual redemption date because of remaining activity (1) 1 1 Total $ 706 $ 5 (1) Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Schedules of Concentration of Risk in Capital Stock | The following table presents the concentration in capital stock held by institutions whose capital stock ownership represented 10% or more of the Bank’s outstanding capital stock, including mandatorily redeemable capital stock, as of December 31, 2023 or 2022: 2023 2022 (Dollars in millions) Capital Stock Outstanding Percentage of Total Capital Stock Outstanding Capital Stock Outstanding Percentage of Total Capital Stock Outstanding JPMorgan Chase, National Association/First Republic Bank (1) $ 643 20 % $ 379 10 % Silicon Valley Bank (2) — — 418 11 (1) On May 1, 2023, the California DFPI closed First Republic Bank and appointed the FDIC as receiver. On the same date, the FDIC transferred all of the deposits and substantially all of the assets of First Republic Bank, including the advances outstanding from the Bank, to JPMorgan Chase, National Association, a nonmember. Upon assumption of the advances outstanding by JPMorgan Chase, National Association, the Bank transferred $759 million of capital stock of the Bank, held by First Republic Bank, to JPMorgan Chase, National Association, and reclassified that capital stock to mandatorily redeemable as a liability in the Bank’s Statements of Condition. (2) On March 10, 2023, the FDIC was appointed as receiver for Silicon Valley Bank. On March 14, 2023, the FDIC transferred all of the deposits and substantially all of the assets of Silicon Valley Bank to Silicon Valley Bridge Bank, National Association. The FDIC created Silicon Valley Bridge Bank, N.A., whereby all of the deposits and substantially all assets of Silicon Valley Bank were transferred to the bridge bank. On March 26, 2023, the FDIC entered into a purchase and assumption agreement for all the deposits and loans of Silicon Valley Bridge Bank, N.A., with First Citizens Bank and Trust Company. Silicon Valley Bank is no longer a member of the Bank. As of March 31, 2023, Silicon Valley Bridge Bank, N.A., had prepaid all outstanding advances to the Bank. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the notional amount and fair value of derivative instruments, including the effect of netting adjustments and cash collateral as of December 31, 2023 and 2022. For purposes of this disclosure, the derivative values include the fair value of derivatives and related accrued interest. 2023 2022 (In millions) Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments: Interest rate swaps $ 90,088 $ 795 $ 705 $ 69,204 $ 799 $ 1,062 Derivatives not designated as hedging instruments: Interest rate swaps 27,349 36 87 47,589 50 133 Total derivatives before netting and collateral adjustments $ 117,437 831 792 $ 116,793 849 1,195 Netting adjustments and cash collateral (1) (815) (790) (823) (1,193) Total derivative assets and total derivative liabilities $ 16 $ 2 $ 26 $ 2 (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the components of net gain/(loss) on derivatives as presented in the Statements of Income for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Derivatives not designated as hedging instruments Gain/(Loss) Gain/(Loss) Gain/(Loss) Economic hedges: Interest rate swaps $ (26) $ 34 $ 108 Net interest settlements 5 (42) (71) Total net gain/(loss) related to derivatives not designated as hedging instruments (21) (8) 37 Price alignment amount (1) (4) (1) — Net gain/(loss) on derivatives $ (25) $ (9) $ 37 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following tables present, by type of hedged item, the gains and losses on fair value hedging relationships and the impact of those derivatives on the Bank’s Statements of Income for the years ended December 31, 2023, 2022, and 2021. 2023 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 3,999 $ 921 $ (3,901) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 117 $ 91 $ (138) Hedged items 230 230 (438) Net gain/(loss) on derivatives and hedging activities recorded in net interest income 347 321 (576) 2022 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 1,226 $ 408 $ (715) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 814 $ 1,202 $ (1,038) Hedged items (804) (1,247) 944 Net gain/(loss) on derivatives and hedging activities recorded in net interest income 10 (45) (94) 2021 Interest Income/(Expense) (In millions) Advances AFS Securities Consolidated Obligation Bonds Total interest income/(expense) presented in the Statements of Income $ 224 $ 220 $ (62) Gain/(loss) on fair value hedging relationships Derivatives (1) $ 175 $ 309 $ (87) Hedged items (390) (482) 152 Net gain/(loss) on derivatives and hedging activities recorded in net interest income (215) (173) 65 |
Schedule of Derivative Instruments By Type, Gain (Loss) in Statement of Financial Performance | The following table presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2023 and 2022. 2023 2022 (In millions) Advances AFS Securities Consolidated Obligation Bonds Advances AFS Securities Consolidated Obligation Bonds Amortized cost of hedged asset/(liability) (1) $ 38,338 $ 17,029 $ (34,121) $ 34,535 $ 11,574 $ (21,976) Fair value hedging basis adjustments: Active hedging relationships included in amortized cost $ (427) $ (1,053) $ 645 $ (740) $ (1,410) $ 1,083 Discontinued hedging relationships included in amortized cost 56 621 — 70 740 — Total amount of fair value hedging basis adjustments $ (371) $ (432) $ 645 $ (670) $ (670) $ 1,083 (1) Includes only the portion of amortized cost representing the hedged items in fair value hedging relationships. |
Schedule of Derivative Instruments, Offsetting Derivative Assets | The following table presents separately the fair value of derivative assets and derivative liabilities that have met the netting requirements, including the related collateral received from or pledged to counterparties as of December 31, 2023 and 2022. 2023 2022 (In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Uncleared $ 826 $ 778 $ 834 $ 1,188 Cleared 5 14 15 7 Total gross recognized amount 831 792 849 1,195 Gross amount of netting adjustments and cash collateral Uncleared (814) (776) (829) (1,186) Cleared (1) (14) 6 (7) Total gross amounts of netting adjustments and cash collateral (815) (790) (823) (1,193) Total derivative assets and total derivative liabilities $ 16 $ 2 $ 26 $ 2 Non-cash collateral received or pledged that can be sold or repledged Cleared — — (435) — Total net amount of non-cash collateral received or pledged $ — $ — $ (435) $ — Net amount (1) Uncleared $ 12 $ 2 $ 5 $ 2 Cleared 4 — 456 — Total net amount $ 16 $ 2 $ 461 $ 2 (1) Any over-collateralization at the Bank’s individual clearing agent and/or counterparty level is not included in the determination of the net amount. At December 31, 2023, the Bank had additional net credit exposure of $771 million due to instances where non-cash collateral to a counterparty exceeded the Bank’s net derivative position. There was no such additional net credit exposure at December 31, 2022. |
Schedule of Derivative Instruments, Offsetting Derivative Liabilities | The following table presents separately the fair value of derivative assets and derivative liabilities that have met the netting requirements, including the related collateral received from or pledged to counterparties as of December 31, 2023 and 2022. 2023 2022 (In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Uncleared $ 826 $ 778 $ 834 $ 1,188 Cleared 5 14 15 7 Total gross recognized amount 831 792 849 1,195 Gross amount of netting adjustments and cash collateral Uncleared (814) (776) (829) (1,186) Cleared (1) (14) 6 (7) Total gross amounts of netting adjustments and cash collateral (815) (790) (823) (1,193) Total derivative assets and total derivative liabilities $ 16 $ 2 $ 26 $ 2 Non-cash collateral received or pledged that can be sold or repledged Cleared — — (435) — Total net amount of non-cash collateral received or pledged $ — $ — $ (435) $ — Net amount (1) Uncleared $ 12 $ 2 $ 5 $ 2 Cleared 4 — 456 — Total net amount $ 16 $ 2 $ 461 $ 2 (1) Any over-collateralization at the Bank’s individual clearing agent and/or counterparty level is not included in the determination of the net amount. At December 31, 2023, the Bank had additional net credit exposure of $771 million due to instances where non-cash collateral to a counterparty exceeded the Bank’s net derivative position. There was no such additional net credit exposure at December 31, 2022. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following tables present the net carrying value or carrying value, as applicable, the estimated fair value, and the fair value hierarchy level of the Bank’s financial instruments at December 31, 2023 and 2022. The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, certain advances, certain consolidated obligations, and certain other assets at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. The Bank records all other financial assets and liabilities at amortized cost. Refer to the following tables for further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis. 2023 (In millions) Carrying Value (1) Estimated Fair Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral (2) Assets Cash and due from banks $ 5 $ 5 $ 5 $ — $ — $ — Interest-bearing deposits 2,922 2,922 2,922 — — — Securities purchased under agreements to resell 3,650 3,650 — 3,650 — — Federal funds sold 3,861 3,861 — 3,861 — — AFS securities 18,014 18,014 — 16,955 1,059 — HTM securities 1,847 1,818 — 1,702 116 — Advances 61,335 61,216 — 61,216 — — Mortgage loans held for portfolio 754 634 — 634 — — Accrued interest receivable 184 184 — 184 — — Derivative assets, net (2) 16 16 — 831 — (815) Other assets (3) 17 17 17 — — — Liabilities Deposits 962 962 — 962 — — Consolidated obligations: Bonds 64,297 64,037 — 64,037 — — Discount notes 19,187 19,182 — 19,182 — — Total consolidated obligations 83,484 83,219 — 83,219 — — Mandatorily redeemable capital stock 706 706 706 — — — Accrued interest payable 520 520 — 520 — — Derivative liabilities, net (2) 2 2 — 792 — (790) 2022 (In millions) Carrying Value (1) Estimated Fair Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral (2) Assets Cash and due from banks $ 9 $ 9 $ 9 $ — $ — $ — Interest-bearing deposits 3,677 3,677 3,677 — — — Securities purchased under agreements to resell 7,000 7,000 — 7,000 — — Federal funds sold 4,719 4,719 — 4,719 — — Trading securities 1 1 — 1 — — AFS securities 12,713 12,713 — 11,531 1,182 — HTM securities 2,181 2,136 — 1,993 143 — Advances 89,400 89,183 — 89,183 — — Mortgage loans held for portfolio 815 695 — 695 — — Accrued interest receivable 313 313 — 313 — — Derivative assets, net (2) 26 26 — 849 — (823) Other assets (3) 15 15 15 — — — Liabilities Deposits 989 989 — 989 — — Consolidated obligations: Bonds 75,768 75,396 — 75,396 — — Discount notes 35,929 35,916 — 35,916 — — Total consolidated obligations 111,697 111,312 — 111,312 — — Mandatorily redeemable capital stock 5 5 5 — — — Accrued interest payable 326 326 — 326 — — Derivative liabilities, net (2) 2 2 — 1,195 — (1,193) (1) For certain financial instruments, the amounts represent net carrying value, which includes an allowance for credit losses. (2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents or counterparty. (3) Represents publicly traded mutual funds held in a grantor trust. |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques | The following tables present the fair value of assets and liabilities, which are recorded on a recurring or nonrecurring basis at December 31, 2023 and 2022, by level within the fair value hierarchy. December 31, 2023 Fair Value Measurement Using: Netting Adjustments and Cash Collateral (1) (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements – Assets: AFS securities: U.S. Treasury obligations $ — $ 4,534 $ — $ — $ 4,534 MBS: GSEs – multifamily — 12,421 — — 12,421 PLRMBS — — 1,059 — 1,059 Subtotal AFS MBS — 12,421 1,059 — 13,480 Total AFS securities — 16,955 1,059 — 18,014 Advances (2) — 1,898 — — 1,898 Derivative assets, net: interest rate-related — 831 — (815) 16 Other assets 17 — — — 17 Total recurring fair value measurements – Assets $ 17 $ 19,684 $ 1,059 $ (815) $ 19,945 Recurring fair value measurements – Liabilities: Consolidated obligation bonds (3) $ — $ 604 $ — $ — $ 604 Derivative liabilities, net: interest rate-related — 792 — (790) 2 Total recurring fair value measurements – Liabilities $ — $ 1,396 $ — $ (790) $ 606 Nonrecurring fair value measurements – Assets: (4) Impaired mortgage loans held for portfolio $ — $ — $ 22 $ — $ 22 Total nonrecurring fair value measurements – Assets $ — $ — $ 22 $ — $ 22 December 31, 2022 Fair Value Measurement Using: Netting Adjustments and Cash Collateral (1) (In millions) Level 1 Level 2 Level 3 Total Recurring fair value measurements – Assets: Trading securities: MBS – Other U.S. obligations $ — $ 1 $ — $ — $ 1 AFS securities: U.S. Treasury obligations — 4,024 — — 4,024 MBS: GSEs – multifamily — 7,507 — — 7,507 PLRMBS — — 1,182 — 1,182 Subtotal AFS MBS — 7,507 1,182 — 8,689 Total AFS securities — 11,531 1,182 — 12,713 Advances (2) — 2,059 — — 2,059 Derivative assets, net: interest rate-related — 849 — (823) 26 Other assets 15 — — — 15 Total recurring fair value measurements – Assets $ 15 $ 14,440 $ 1,182 $ (823) $ 14,814 Recurring fair value measurements – Liabilities: Consolidated obligation bonds (3) $ — $ 2,226 $ — $ — $ 2,226 Derivative liabilities, net: interest rate-related — 1,195 — (1,193) 2 Total recurring fair value measurements – Liabilities $ — $ 3,421 $ — $ (1,193) $ 2,228 Nonrecurring fair value measurements – Assets: (4) Impaired mortgage loans held for portfolio $ — $ — $ 20 $ — $ 20 Total nonrecurring fair value measurements – Assets $ — $ — $ 20 $ — $ 20 (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed by the Bank, with the same clearing agents or counterparty. (2) Represents advances recorded under the fair value option at December 31, 2023 and 2022. (3) Represents consolidated obligation bonds recorded under the fair value option at December 31, 2023 and 2022. (4) The fair value information presented is as of the date the fair value adjustment was recorded during the years ended December 31, 2023 and 2022. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the Bank’s AFS PLRMBS that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Balance, beginning of the period $ 1,182 $ 1,608 $ 2,035 Total gain/(loss) realized and unrealized included in: Interest income 33 55 69 (Provision for)/reversal of credit losses (4) (14) 3 Other income/(loss) — 28 — Unrealized gain/(loss) included in AOCI (15) (146) 18 Settlements (139) (366) (519) Transfers of HTM securities to AFS securities 2 17 2 Balance, end of the period $ 1,059 $ 1,182 $ 1,608 Total amount of unrealized gain/(loss) for the period included in AOCI relating to assets held at the end of the period $ (15) $ (146) $ 19 Total amount of gain/(loss) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets held at the end of the period $ 29 $ 41 $ 71 |
Fair Value, Option, Quantitative Disclosures | The following table presents the net gain/(loss) recognized in earnings on advances and consolidated obligation bonds held under fair value option for the years ended December 31, 2023, 2022, and 2021: (In millions) 2023 2022 2021 Advances $ 28 $ (119) $ (62) Consolidated obligation bonds (29) 54 8 Total $ (1) $ (65) $ (54) The following table presents the difference between the aggregate remaining contractual principal balance outstanding and aggregate fair value of advances and consolidated obligation bonds for which the Bank elected the fair value option at December 31, 2023 and 2022: 2023 2022 (In millions) Principal Balance Fair Value Fair Value Principal Balance Fair Value Fair Value Advances (1) $ 1,902 $ 1,898 $ (4) $ 2,106 $ 2,059 $ (47) Consolidated obligation bonds 633 604 (29) 2,278 2,226 (52) (1) At December 31, 2023 and 2022, none of these advances were 90 days or more past due or had been placed on nonaccrual status. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Commitments | Off-balance sheet commitments as of December 31, 2023 and 2022, were as follows: 2023 2022 (In millions) Expire Within Expire After Total Total Standby letters of credit outstanding $ 10,547 $ 8,871 $ 19,418 $ 22,640 Commitments to issue consolidated obligation discount notes, par — — — 300 Commitments to issue consolidated obligation bonds, par — — — 2,385 |
Transactions with Certain Mem_2
Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Certain Members and Nonmembers | (In millions) December 31, 2023 December 31, 2022 Assets: Advances $ 5,762 $ 7,269 Mortgage loans held for portfolio 74 80 Accrued interest receivable 5 9 Liabilities: Deposits $ 34 $ 11 Capital: Capital Stock $ 191 $ 215 (In millions) 2023 2022 2021 Interest Income: Advances $ 271 $ 114 $ 51 Mortgage loans held for portfolio 3 1 — Interest Expense: Deposits 1 — — All transactions with members, nonmembers, and their affiliates are entered into in the ordinary course of business. |
Other (Tables)
Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other [Abstract] | |
Other Cost and Expense, Operating | Note 17 — Other The table below discloses the categories included in other operating expense for the years ended December 31, 2023, 2022, and 2021. (In millions) 2023 2022 2021 Professional and contract services $ 35 $ 28 $ 28 Occupancy 11 11 11 Equipment 5 6 7 Other 17 13 8 Total $ 68 $ 58 $ 54 |
Employee Retirement Plans and_2
Employee Retirement Plans and Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in AOCI for the defined benefit Cash Balance Plan and postretirement health benefit plan at December 31, 2023 and 2022, consist of: 2023 2022 (In millions) Cash Balance Post-retirement Health Benefit Plan Cash Balance Post-retirement Health Benefit Plan Net loss/(gain) $ 12 $ (1) $ 16 $ (1) |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | The following table presents obligations and funded status of retirement plans at December 31, 2023 and 2022. 2023 2022 (In millions) Cash Balance Plan Non-Qualified Defined Benefit Plans Post-retirement Health Benefit Plan Cash Balance Plan Non-Qualified Defined Benefit Plans Post-retirement Health Benefit Plan Projected benefit obligation $ 80 $ 15 $ 1 $ 74 $ 15 $ 1 Accumulated benefit obligation 80 15 1 74 15 1 Fair value of plan assets 96 — — 80 — — Funded status 16 (15) (1) 6 (15) (1) |
Defined Benefit Plan, Plan Assets, Category | The table below presents the fair values of the Cash Balance Plan's assets as of December 31, 2023 and 2022, by asset category. See Note 14 – Fair Value for further information regarding the three levels of fair value measurement. 2023 2022 (In millions) Fair Value Measurement Using: Fair Value Measurement Using: Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 1 $ — $ — $ 1 $ 2 $ — $ — $ 2 Equity mutual funds 59 — — 59 48 — — 48 Fixed income mutual funds 29 — — 29 25 — — 25 Real estate mutual funds 4 — — 4 3 — — 3 Other mutual funds 3 — — 3 2 — — 2 Total $ 96 $ — $ — $ 96 $ 80 $ — $ — $ 80 |
Schedule of Allocation of Plan Assets | The Cash Balance Plan's weighted average asset allocation at December 31, 2023 and 2022, by asset category was as follows: Asset Category 2023 2022 Cash and cash equivalents 1 % 2 % Equity mutual funds 62 60 Fixed income mutual funds 30 31 Real estate mutual funds 4 4 Other mutual funds 3 3 Total 100 % 100 % |
Schedule of Expected Benefit Payments | The following are the estimated future benefit payments, which reflect expected future service, as appropriate: (In millions) Year Cash Balance Non-Qualified 2024 $ 4 $ — 2025 5 2 2026 5 1 2027 5 1 2028 37 5 2029 – 2033 25 8 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Difference in cash flows to classify as a new advance | 10% | ||
Substantial portion of principal outstanding collected | 85% | ||
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment, Net | $ 26 | $ 29 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 76 | 75 | |
Depreciation, Depletion and Amortization | $ 5 | $ 6 | $ 7 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash and Due from Banks [Abstract] | ||
Average collected cash balances with commercial banks | $ 10 | $ 34 |
Investments Narrative (Details)
Investments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments [Line Items] | ||||
Available-for-sale Securities, Premiums | $ 58 | $ 52 | ||
Available for sale Securities Discounts | (191) | (113) | ||
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | $ 31 | 30 | $ 17 | $ 21 |
Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities Private Label Mortgage Back Securities Amortized Cost, Percentage Rated Single-A Or Above | 4% | |||
Provision for/(reversal of) credit losses | $ 4 | 15 | (3) | |
Total net accretion or amortization recognized in interest income associated with PLRMBS with previous credit losses to the prior methodology | 34 | 55 | 70 | |
Fair Value Of Held to maturity Securities Transferred To Available For Sale Securities | 2 | 20 | 2 | |
Amortized Cost Of Held to maturity Securities Transferred To Available For Sale Securities | 2 | 17 | $ 2 | |
Interest-bearing deposits | ||||
Investments [Line Items] | ||||
Allowance for Credit Loss | 0 | 0 | ||
Accrued Interest, after Allowance for Credit Loss | 16 | 13 | ||
Fed Funds Sold | ||||
Investments [Line Items] | ||||
Allowance for Credit Loss | 0 | 0 | ||
Accrued Interest, after Allowance for Credit Loss | 2 | 1 | ||
Securities borrowed or purchased under agreements to resell | ||||
Investments [Line Items] | ||||
Allowance for Credit Loss | 0 | 0 | ||
Accrued Interest, after Allowance for Credit Loss | 2 | |||
Mortgage Backed Securities | ||||
Investments [Line Items] | ||||
Held-to-maturity Securities, Premiums | 2 | 3 | ||
Held-to-maturity Securities, Discounts | (3) | (4) | ||
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | 31 | 30 | ||
Available-for-sale Securities | ||||
Investments [Line Items] | ||||
Allowance for Credit Loss | 0 | |||
Available-for-sale Securities | Mortgage Backed Securities | ||||
Investments [Line Items] | ||||
Credit-related OTTI | 312 | 351 | ||
Available-for-sale Securities | Other Than Mortgage Backed Securities | ||||
Investments [Line Items] | ||||
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | $ 0 | 0 | ||
Held-to-maturity Securities | ||||
Investments [Line Items] | ||||
Allowance for Credit Loss | $ 0 |
Investments AFS Securities by M
Investments AFS Securities by Major Type (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost of AFS | [1] | $ 18,105 | $ 12,757 | ||
Allowance for Credit Losses | (31) | (30) | $ (17) | $ (21) | |
Gross Unrealized Gains | 43 | 68 | |||
Gross Unrealized Losses | (103) | (82) | |||
Fair Value of AFS Securities | [2] | 18,014 | 12,713 | ||
Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | $ 68 | 46 | |||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | ||||
US Treasury Notes | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost of AFS | $ 4,530 | 4,012 | |||
Allowance for Credit Losses | 0 | 0 | |||
Gross Unrealized Gains | 4 | 12 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value of AFS Securities | 4,534 | 4,024 | |||
PLRMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost of AFS | 1,075 | 1,183 | |||
Allowance for Credit Losses | (31) | (30) | |||
Gross Unrealized Gains | 35 | 54 | |||
Gross Unrealized Losses | (20) | (25) | |||
Fair Value of AFS Securities | 1,059 | 1,182 | |||
Mortgage Backed Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost of AFS | [1] | 13,575 | 8,745 | ||
Allowance for Credit Losses | (31) | (30) | |||
Gross Unrealized Gains | 39 | 56 | |||
Gross Unrealized Losses | (103) | (82) | |||
Fair Value of AFS Securities | 13,480 | 8,689 | |||
Multifamily [Member] | MBS - GSEs | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost of AFS | 12,500 | 7,562 | |||
Allowance for Credit Losses | 0 | 0 | |||
Gross Unrealized Gains | 4 | 2 | |||
Gross Unrealized Losses | (83) | (57) | |||
Fair Value of AFS Securities | $ 12,421 | $ 7,507 | |||
[1]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable |
Investments Summary of AFS Secu
Investments Summary of AFS Securities with Unrealized Losses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months: Estimated Fair Value | $ 7,547 | $ 6,927 |
Less Than 12 Months: Unrealized Losses | 46 | 74 |
12 Months or More: Estimated Fair Value | 3,808 | 68 |
12 Months or More: Unrealized Losses | 57 | 8 |
Unrealized Loss Position, Total Fair Value | 11,355 | 6,995 |
Unrealized Loss Position, Total Accumulated Loss | 103 | 82 |
Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months: Estimated Fair Value | 30 | 292 |
Less Than 12 Months: Unrealized Losses | 1 | 17 |
12 Months or More: Estimated Fair Value | 283 | 68 |
12 Months or More: Unrealized Losses | 19 | 8 |
Unrealized Loss Position, Total Fair Value | 313 | 360 |
Unrealized Loss Position, Total Accumulated Loss | 20 | 25 |
Multifamily [Member] | MBS - GSEs | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months: Estimated Fair Value | 7,517 | |
Less Than 12 Months: Unrealized Losses | 45 | |
12 Months or More: Estimated Fair Value | 3,525 | |
12 Months or More: Unrealized Losses | 38 | |
Unrealized Loss Position, Total Fair Value | 11,042 | |
Unrealized Loss Position, Total Accumulated Loss | $ 83 | |
Multifamily [Member] | MBS - GSEs | Fannie Mae | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less Than 12 Months: Estimated Fair Value | 6,635 | |
Less Than 12 Months: Unrealized Losses | 57 | |
12 Months or More: Estimated Fair Value | 0 | |
12 Months or More: Unrealized Losses | 0 | |
Unrealized Loss Position, Total Fair Value | 6,635 | |
Unrealized Loss Position, Total Accumulated Loss | $ 57 |
Investments AFS by Contractual
Investments AFS by Contractual Maturity and Prepayment Fees (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of AFS | [1] | $ 18,105 | $ 12,757 |
Fair Value of AFS Securities | [2] | 18,014 | 12,713 |
Other Than Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Due in 1 year or less - Amortized cost | 145 | ||
Due in 1 year or less - Fair value | 145 | ||
Due after 1 year through 5 years - Amortized cost | 4,385 | ||
Due after 1 year through 5 years - Fair value | 4,389 | ||
Amortized cost of AFS | 4,530 | 4,012 | |
Fair Value of AFS Securities | 4,534 | 4,024 | |
Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of AFS | [1] | 13,575 | 8,745 |
Fair Value of AFS Securities | $ 13,480 | $ 8,689 | |
[1]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, net charge-offs, and valuation adjustments for hedging activities, and excludes accrued interest receivable |
Investments Classification of H
Investments Classification of Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [1] | $ 1,847 | $ 2,181 |
Gross Unrecognized Holding Gain | [2] | 1 | 1 |
Gross Unrecognized Holding Loss | [2] | (30) | (46) |
Fair value of held-to-maturity securities | 1,818 | 2,136 | |
HTM accrued interest, after allowance for credit loss | 6 | 5 | |
Other US Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | 49 | 72 | |
Gross Unrecognized Holding Gain | 0 | 0 | |
Gross Unrecognized Holding Loss | (1) | (2) | |
Fair value of held-to-maturity securities | 48 | 70 | |
MBS - GSEs | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [1] | 1,674 | 1,954 |
Gross Unrecognized Holding Gain | [2] | 1 | 1 |
Gross Unrecognized Holding Loss | [2] | (21) | (32) |
Fair value of held-to-maturity securities | 1,654 | 1,923 | |
PLRMBS | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [1] | 124 | 155 |
Gross Unrecognized Holding Gain | [2] | 0 | 0 |
Gross Unrecognized Holding Loss | [2] | (8) | (12) |
Fair value of held-to-maturity securities | 116 | 143 | |
Single Family [Member] | MBS - GSEs | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [1] | 605 | 745 |
Gross Unrecognized Holding Gain | [2] | 1 | 1 |
Gross Unrecognized Holding Loss | [2] | (16) | (22) |
Fair value of held-to-maturity securities | 590 | 724 | |
Multifamily [Member] | MBS - GSEs | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity (HTM) securities (fair values of $1,818 and $2,136, respectively) | [1] | 1,069 | 1,209 |
Gross Unrecognized Holding Gain | [2] | 0 | 0 |
Gross Unrecognized Holding Loss | [2] | (5) | (10) |
Fair value of held-to-maturity securities | $ 1,064 | $ 1,199 | |
[1]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $6 million and $5 million at December 31, 2023 and 2022, respectively.[2]Gross unrecognized holding gains/(losses) represent the difference between estimated fair value and net carrying value |
Investments Allowance for Credi
Investments Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Credit Loss [Abstract] | ||||
(Charge-offs)/recoveries | $ (3) | $ (2) | $ (1) | |
Provision for/(reversal of) credit losses | 4 | 15 | (3) | |
Debt securities, available-for-sale, amortized cost, allowance for credit loss, excluding accrued interest | $ 31 | $ 30 | $ 17 | $ 21 |
Investments Significant Inputs
Investments Significant Inputs on PLRMBS (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Inputs on PLRMBS [Line Items] | |
Prepayment Weighted Average | 10.30% |
Default Rate Weighted Average | 7.50% |
Loss Severity Weighted Average | 51.70% |
Credit Enhancements Weighted Average | 8.60% |
Investments with previous credi
Investments with previous credit losses rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total net accretion or amortization recognized in interest income associated with PLRMBS with previous credit losses to the prior methodology | $ 34 | $ 55 | $ 70 |
Transfers from HTM to AFS (Deta
Transfers from HTM to AFS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Amortized Cost Of Held to maturity Securities Transferred To Available For Sale Securities | $ 2 | $ 17 | $ 2 |
Fair Value Of Held to maturity Securities Transferred To Available For Sale Securities | $ 2 | $ 20 | $ 2 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | May 05, 2023 | May 01, 2023 | Dec. 31, 2022 |
Advances [Line Items] | ||||
Advances with Full prepayment Symmetry Outstanding | $ 39,800 | $ 19,200 | ||
Advances With Partial Prepayment Symmetry Outstanding | 209 | 1,000 | ||
Advances, Par Value | 61,710 | 90,117 | ||
Advances | 61,335 | 89,400 | ||
First Republic Bank | JPMorgan Chase | ||||
Advances [Line Items] | ||||
Advances | $ 28,100 | |||
Luther Burbank Savings | Washington Federal Bank | ||||
Advances [Line Items] | ||||
Advances | $ 1,200 | |||
Federal Home Loan Bank Advances | ||||
Advances [Line Items] | ||||
Accrued interest receivable | 85 | 241 | ||
Advances, Callable Option | ||||
Advances [Line Items] | ||||
Advances, Par Value | 3,300 | 9,800 | ||
Advances, Putable Option | ||||
Advances [Line Items] | ||||
Advances, Par Value | $ 1,400 | $ 800 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Advances (includes $1,898 and $2,059 at fair value under the fair value option, respectively) | $ 61,335 | $ 89,400 | |
Federal Home Loan Bank Advances, Maturities [Abstract] | |||
Overdrawn demand and overnight deposit accounts | 2 | 2 | |
Within 1 year(2) | 35,241 | 71,050 | |
After 1 year through 2 years | 12,532 | 7,634 | |
After 2 years through 3 years | 6,437 | 4,036 | |
After 3 years through 4 years | 2,548 | 3,391 | |
After 4 years through 5 years | 3,660 | 2,815 | |
After 5 years | 1,290 | 1,189 | |
Total par value | 61,710 | 90,117 | |
Valuation adjustments for hedging activities | (371) | (670) | |
Valuation adjustments under fair value option | [1] | (4) | (47) |
Total | $ 61,335 | $ 89,400 | |
Federal Home Loan Bank Advances, Weighted Average Interest Rate [Abstract] | |||
Overdrawn Demand Deposit | 5.15% | 4.15% | |
Within 1 year | 4.87% | 4.34% | |
After 1 year through 2 years | 3.88% | 3.30% | |
After 2 years through 3 years | 3.23% | 2.22% | |
After 3 years through 4 years | 3.62% | 2.05% | |
After 4 years through 5 years | 4.07% | 3.24% | |
After 5 years | 3.71% | 3.50% | |
Total par value | 4.38% | 4.03% | |
Advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Advances Outstanding, Redemption Terms Within Three Months | $ 16,800 | $ 46,300 | |
Federal Home Loan Bank Advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Accrued interest receivable | $ 85 | $ 241 | |
[1]At December 31, 2023 and 2022, none of these advances were 90 days or more past due or had been placed on nonaccrual status. |
Advances (Earlier of Contractua
Advances (Earlier of Contractual Maturity or Next Call/Put Date) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, Rolling Year, Par Value [Abstract] | ||
Overdrawn demand and overnight deposit accounts | $ 2 | $ 2 |
Within 1 year | 35,561 | 71,370 |
After 1 year through 2 years | 12,542 | 7,634 |
After 2 years through 3 years | 6,437 | 4,046 |
After 3 years through 4 years | 2,558 | 3,391 |
After 4 years through 5 years | 3,660 | 2,825 |
After 5 years | 950 | 849 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, Rolling Year, Par Value [Abstract] | ||
Within 1 year | 36,115 | 71,850 |
After 1 year through 2 years | 13,000 | 7,634 |
After 2 years through 3 years | 6,149 | 3,836 |
After 3 years through 4 years | 2,551 | 3,391 |
After 4 years through 5 years | 2,917 | 2,215 |
After 5 years | 976 | 1,189 |
Total par value | $ 61,710 | $ 90,117 |
Advances (Credit and Concentrat
Advances (Credit and Concentration Risk) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Advances [Line Items] | ||
Advances Outstanding | $ 61,710 | $ 90,117 |
Total Members | ||
Advances [Line Items] | ||
Advances Outstanding | 61,710 | 90,117 |
Interest Income from Advances | $ 3,326 | $ 1,225 |
Total Members | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 100% | 100% |
Total Members | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 100% | 100% |
Top ten borrowers | JPMorgan Chase | ||
Advances [Line Items] | ||
Advances Outstanding | $ 23,833 | |
Interest Income from Advances | $ 1,018 | |
Top ten borrowers | JPMorgan Chase | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 39% | |
Top ten borrowers | JPMorgan Chase | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 31% | |
Top ten borrowers | Western Alliance Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 6,200 | $ 4,300 |
Interest Income from Advances | $ 199 | $ 67 |
Top ten borrowers | Western Alliance Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 10% | 5% |
Top ten borrowers | Western Alliance Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 6% | 5% |
Top ten borrowers | City National Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 3,000 | $ 10,000 |
Interest Income from Advances | $ 353 | $ 69 |
Top ten borrowers | City National Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 5% | 11% |
Top ten borrowers | City National Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 11% | 6% |
Top ten borrowers | First Technology Federal Credit Union | ||
Advances [Line Items] | ||
Advances Outstanding | $ 2,414 | $ 4,195 |
Interest Income from Advances | $ 132 | $ 72 |
Top ten borrowers | First Technology Federal Credit Union | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 4% | 5% |
Top ten borrowers | First Technology Federal Credit Union | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 4% | 6% |
Top ten borrowers | MUFG Union Bank, NA | ||
Advances [Line Items] | ||
Advances Outstanding | $ 2,052 | $ 4,300 |
Interest Income from Advances | $ 153 | $ 129 |
Top ten borrowers | MUFG Union Bank, NA | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 3% | 5% |
Top ten borrowers | MUFG Union Bank, NA | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 5% | 11% |
Top ten borrowers | SchoolsFirst Federal Credit Union | ||
Advances [Line Items] | ||
Advances Outstanding | $ 1,823 | |
Interest Income from Advances | $ 48 | |
Top ten borrowers | SchoolsFirst Federal Credit Union | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 3% | |
Top ten borrowers | SchoolsFirst Federal Credit Union | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 1% | |
Top ten borrowers | Bank of America California, National Association | ||
Advances [Line Items] | ||
Advances Outstanding | $ 1,450 | $ 1,500 |
Interest Income from Advances | $ 68 | $ 8 |
Top ten borrowers | Bank of America California, National Association | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | 1% |
Top ten borrowers | Bank of America California, National Association | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | 1% |
Top ten borrowers | Luther Burbank Savings | ||
Advances [Line Items] | ||
Advances Outstanding | $ 1,152 | |
Interest Income from Advances | $ 44 | |
Top ten borrowers | Luther Burbank Savings | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | |
Top ten borrowers | Luther Burbank Savings | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 1% | |
Top ten borrowers | Wells Fargo National Bank West | ||
Advances [Line Items] | ||
Advances Outstanding | $ 1,000 | $ 2,000 |
Interest Income from Advances | $ 78 | $ 24 |
Top ten borrowers | Wells Fargo National Bank West | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | 2% |
Top ten borrowers | Wells Fargo National Bank West | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | 2% |
Top ten borrowers | First Foundation Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 900 | |
Interest Income from Advances | $ 46 | |
Top ten borrowers | First Foundation Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 1% | |
Top ten borrowers | First Foundation Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 1% | |
Top ten borrowers | Subtotal Members | ||
Advances [Line Items] | ||
Advances Outstanding | $ 43,824 | $ 63,895 |
Interest Income from Advances | $ 2,139 | $ 782 |
Top ten borrowers | Subtotal Members | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 71% | 72% |
Top ten borrowers | Subtotal Members | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 64% | 64% |
Top ten borrowers | Silicon Valley Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 15,000 | |
Interest Income from Advances | $ 170 | |
Top ten borrowers | Silicon Valley Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 17% | |
Top ten borrowers | Silicon Valley Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 14% | |
Top ten borrowers | First Republic Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 14,000 | |
Interest Income from Advances | $ 175 | |
Top ten borrowers | First Republic Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 16% | |
Top ten borrowers | First Republic Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 14% | |
Top ten borrowers | Bank of the West | ||
Advances [Line Items] | ||
Advances Outstanding | $ 4,300 | |
Interest Income from Advances | $ 30 | |
Top ten borrowers | Bank of the West | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 5% | |
Top ten borrowers | Bank of the West | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 2% | |
Top ten borrowers | Silvergate Bank | ||
Advances [Line Items] | ||
Advances Outstanding | $ 4,300 | |
Interest Income from Advances | $ 38 | |
Top ten borrowers | Silvergate Bank | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 5% | |
Top ten borrowers | Silvergate Bank | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 3% | |
Other Borrowers | ||
Advances [Line Items] | ||
Advances Outstanding | $ 17,886 | $ 26,222 |
Interest Income from Advances | $ 1,187 | $ 443 |
Other Borrowers | Other Borrowers | Percentage of Total Advances Outstanding | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 29% | 28% |
Other Borrowers | Other Borrowers | Percentage of Total Interest Income from Advances | ||
Advances [Line Items] | ||
Concentration Risk, Percentage | 36% | 36% |
Advances (Interest Rate Payment
Advances (Interest Rate Payment Terms and Prepayment Fees) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Fixed Rate [Abstract] | ||
Fixed Rate, due within 1 year | $ 23,866 | $ 47,621 |
Fixed Rate, due after 1 year | 26,467 | 18,050 |
Advances, Total Fixed Rate | 50,333 | 65,671 |
Federal Home Loan Bank, Advances, Floating Rate [Abstract] | ||
Adjustable Rate, due within 1 year | 11,377 | 23,431 |
Adjustable Rate, due after 1 year | 0 | 1,015 |
Advances, Total Fixed Rate | 11,377 | 24,446 |
Total par value | $ 61,710 | $ 90,117 |
Mortgage Loans Held for Portf_3
Mortgage Loans Held for Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Minimum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Medium-term (in years) | 15 years | |
Maximum | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Long-term (in years) | 15 years | |
Fixed rate medium-term mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | $ 12 | $ 14 |
Fixed rate long-term mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 704 | 761 |
Residential Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 716 | 775 |
Unamortized premiums | 41 | 43 |
Unamortized discounts | (2) | (2) |
Mortgage Loans Held For Portfolio | 755 | 816 |
Less: Allowance for credit losses | 1 | 1 |
Total mortgage loans held for portfolio, net | 754 | 815 |
Accrued interest receivable | 5 | $ 5 |
Conventional Mortgage Loan | Residential Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Less: Allowance for credit losses | $ 1 |
Mortgage Loans Held for Portf_4
Mortgage Loans Held for Portfolio Delinquency Statistics (Details) - Conventional Mortgage Loan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | $ 755 | $ 816 |
In process of foreclosure, included above | 2 | 3 |
Nonaccrual loans | $ 16 | $ 19 |
Serious delinquencies as a percentage of total mortgage loans outstanding | 2.17% | 2.30% |
Mortgage loans on nonaccrual status, with no allowance | $ 5 | $ 7 |
30 – 59 days delinquent | ||
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | 5 | 9 |
60 – 89 days delinquent | ||
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | 4 | 3 |
90 days or more delinquent | ||
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | 16 | 19 |
Total past due | ||
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | 25 | 31 |
Total current loans | ||
Mortgage Loan Delinquency Statistics | ||
Total mortgage loans held for portfolio | $ 730 | $ 785 |
Mortgage Loans Held for Portf_5
Mortgage Loans Held for Portfolio Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Housing price forecast appreciation over one year horizon | 1.30% | (0.70%) |
Housing price forecast appreciation over five-years plus horizon | 4% | 4% |
Residential Portfolio Segment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Less: Allowance for credit losses | $ 1 | $ 1 |
Residential Portfolio Segment | Conventional Mortgage Loan | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Less: Allowance for credit losses | $ 1 |
Consolidated Obligations (Detai
Consolidated Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
PLRMBS trust settlement | $ 0 | $ 28 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Line Items] | ||
Non-interest-bearing deposits | $ 5 | $ 6 |
Total | 962 | 989 |
Interest-bearing deposits | Adjustable rate | ||
Deposits [Line Items] | ||
Interest-bearing deposits (adjustable rate) | $ 957 | $ 983 |
Weighted Average Interest Rate | 5.15% | 4.15% |
Consolidated Obligations (Redem
Consolidated Obligations (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total par value | $ 64,977 | $ 76,907 |
Total CO Bonds | $ 64,297 | $ 75,768 |
Weighted Average Interest Rate [Abstract] | ||
Within 1 year | 4.84% | 4.05% |
After 1 year through 2 years | 4.70% | 2.30% |
After 2 years through 3 years | 1.34% | 1.26% |
After 3 years through 4 years | 1.75% | 0.99% |
After 4 years through 5 years | 2.98% | 1.47% |
After 5 years | 2.35% | 1.73% |
Qualifying Asset Balance Requirement | $ 91,800 | |
Federal Home Loan Bank, Consolidated Obligations | 83,484 | $ 111,697 |
Consolidated obligation bonds | ||
Debt Instrument [Line Items] | ||
Within 1 year | 42,821 | 58,301 |
After 1 year through 2 years | 13,105 | 8,268 |
After 2 years through 3 years | 5,938 | 2,317 |
After 3 years through 4 years | 1,345 | 5,473 |
After 4 years through 5 years | 942 | 1,255 |
After 5 years | 826 | 1,293 |
Unamortized premiums | 0 | 1 |
Unamortized discounts | (6) | (5) |
Valuation adjustments for hedging activities | (645) | (1,083) |
Fair value option valuation adjustments | $ (29) | $ (52) |
Weighted Average Interest Rate [Abstract] | ||
Total par amount | 4.37% | 3.47% |
Consolidated Obligations (Conso
Consolidated Obligations (Consolidated Obligation Bonds Noncallable and Callable) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
CO Bonds Par | $ 64,977 | $ 76,907 |
Non-callable | ||
Debt Instrument [Line Items] | ||
CO Bonds Par | 38,945 | 57,164 |
Callable | ||
Debt Instrument [Line Items] | ||
CO Bonds Par | $ 26,032 | $ 19,743 |
Consolidated Obligations (Con_2
Consolidated Obligations (Consolidated Obligation Bonds by Earlier of Contractual Maturity or Next Call Date) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total bonds, par value | $ 64,977 | $ 76,907 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Within 1 year | 55,291 | 73,049 |
After 1 year through 2 years | 9,160 | 3,310 |
After 2 years through 3 years | 378 | 187 |
After 3 years through 4 years | 100 | 313 |
After 4 years through 5 years | 12 | 0 |
After 5 years | $ 36 | $ 48 |
Consolidated Obligations (Con_3
Consolidated Obligations (Consolidated Obligation Discount Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | |||
Discount notes, par value | $ 19,321 | $ 36,159 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | [1] | 5.23% | 4.13% |
Total | $ 19,187 | $ 35,929 | |
Discount notes | |||
Short-term Debt [Line Items] | |||
Unamortized discounts | $ (134) | $ (230) | |
[1] Represents yield to maturity excluding concession fees. |
Consolidated Obligations (Inter
Consolidated Obligations (Interest Rate Payment Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
CO Bonds Par | $ 64,977 | $ 76,907 |
Discount notes, par value | 19,321 | 36,159 |
Fixed Interest Rate | ||
Debt Instrument [Line Items] | ||
CO Bonds Par | 37,464 | 25,632 |
Adjustable Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
CO Bonds Par | 26,880 | 48,997 |
Step-up Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
CO Bonds Par | $ 633 | $ 2,278 |
Affordable Housing Program Narr
Affordable Housing Program Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |||
Affordable Housing Program, Contribution Requirement, Amount | $ 100 | ||
AHP, Contribution Requirement, Percentage | 10% | ||
Affordable Housing Program Assessment | $ 63 | $ 36 | $ 32 |
Affordable Housing Program Sche
Affordable Housing Program Schedule of Change in AHP Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Affordable Housing Program [Roll Forward] | |||
AHP Obligation, beginning of the period | $ 111 | $ 115 | $ 120 |
Affordable Housing Program Assessment | 63 | 36 | 32 |
AHP payments | 41 | 40 | 37 |
AHP Obligation, end of the period | $ 133 | $ 111 | $ 115 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity Attributable to Parent | $ 6,668 | $ 7,723 | $ 6,224 | $ 6,194 |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (11) | (15) | (9) | (14) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (4) | 6 | (5) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 4 | (6) | 5 | |
Accumulated Other Comprehensive Income/(Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (72) | (29) | 331 | 230 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 4 | (6) | 5 | |
Net change in fair value | (47) | (354) | 96 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (43) | (360) | 101 | |
Available-for-sale Securities | AOCI Unrealized gain/loss, Available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (61) | (14) | 340 | $ 244 |
AFS Unrealized Gain/(Loss) on AFS Securities | (47) | (354) | 96 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (47) | $ (354) | $ 96 |
Capital (Capital Requirements)
Capital (Capital Requirements) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 14, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 21, 2024 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 1% | ||||
Membership Capital Stock Requirement Cap | $ 15 | ||||
Regulatory Capital Ratio, Required | 4% | 4% | |||
Leverage ratio - Required | 5% | 5% | |||
Finance Agency capital stock to asset ratio | 2% | 2% | |||
Risk-Based Capital, Required | $ 1,210 | $ 898 | |||
Risk-Based Capital, Actual | 7,446 | 7,757 | |||
Regulatory Capital, Required | 3,713 | 4,842 | |||
Regulatory Capital, Actual | $ 7,446 | $ 7,757 | |||
Regulatory Capital Ratio, Actual | 8.02% | 6.41% | |||
Leverage Capital, Required | $ 4,641 | $ 6,053 | |||
Leverage Capital, Actual | $ 11,169 | $ 11,636 | |||
Leverage Ratio, Actual | 12.03% | 9.61% | |||
Multiplier for Determining Permanent Capital in Leverage Capital Calculation | 1.5 | ||||
Dividends, Cash, Annualized Rate | 7.49% | 6.30% | 5.74% | ||
Cash dividends on capital stock | $ (243) | $ (161) | $ (135) | ||
Amount of Excess Stock Repurchased During Period | $ 3,800 | 5,000 | 1,600 | ||
Common stock, par value | $ 100 | ||||
Subsequent Event | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Dividends, Cash Declared, Annualized Rate | 8.75% | ||||
Interest and Dividends Payable, Current | $ 69 | ||||
Dividends Payable, Date to be Paid | Mar. 14, 2024 | ||||
Total Retained Earnings | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Cash dividends on capital stock | $ (243) | $ (161) | $ (135) | ||
Percentage of Total Advances Outstanding | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 2.70% | ||||
Letter of Credit | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 0.10% | ||||
Mortgages | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 0% | ||||
Minimum | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Capital Stock Requirement Cap | $ 10 | ||||
Membership Capital Stock Requirement | 0.50% | ||||
Minimum | Percentage of Total Advances Outstanding | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 2% | ||||
Minimum | Letter of Credit | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 0.10% | ||||
Minimum | Mortgages | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 0% | ||||
Maximum | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Capital Stock Requirement Cap | $ 50 | ||||
Membership Capital Stock Requirement | 1.50% | ||||
Maximum | Percentage of Total Advances Outstanding | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 5% | ||||
Maximum | Letter of Credit | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 1% | ||||
Maximum | Mortgages | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Membership Activity Based Stock Requirement | 5% |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Institutions | Dec. 31, 2022 USD ($) Institutions | Dec. 31, 2021 USD ($) | |
Capital [Line Items] | |||
Financial Instruments Subject to Mandatory Redemption, Number of Stockholders | Institutions | 6 | 3 | |
Interest Expense on Mandatorily Redeemable Capital Stock | $ 32 | $ 0 | $ 0 |
Mandatorily Redeemable Capital Stock [Roll Forward] | |||
Balance at the beginning of the period | 5 | 3 | 2 |
Reclassified from/(to) capital during the period | 1,252 | 46 | 25 |
Repurchase/redemption of mandatorily redeemable capital stock | (551) | (44) | (24) |
Balance at the end of the period | $ 706 | $ 5 | 3 |
Redemption of excess mandatorily redeemable capital stock | $ (1) |
Capital (By Redemption Period)
Capital (By Redemption Period) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount [Abstract] | ||||
Year 3 | $ 1 | $ 0 | ||
Year 4 | 2 | 1 | ||
Year 5 | 702 | 3 | ||
Past contractual redemption date because of remaining activity | 1 | 1 | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Total | $ 706 | $ 5 | $ 3 | $ 2 |
Capital (Retained Earnings and
Capital (Retained Earnings and Dividend Policy) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 14, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 21, 2024 | Jan. 31, 2024 | Dec. 31, 2020 | |
Capital [Line Items] | |||||||
Retained Earnings, Set by the Board inc JCEA | $ 2,600 | ||||||
JCE Agreement Amounts in excess of 150% of Restricted Retained Earnings Minimum May Be Releasted | 150% | ||||||
Excess Capital | $ 118 | $ 157 | |||||
Excess Capital to Assets | 0.13% | 0.13% | |||||
Dividends [Abstract] | |||||||
Dividends, Cash, Annualized Rate | 7.49% | 6.30% | 5.74% | ||||
Total dividends | $ 275 | $ 161 | |||||
Interest Expense on Mandatorily Redeemable Capital Stock | 32 | 0 | $ 0 | ||||
Retained Earnings [Abstract] | |||||||
Total Capital | 6,668 | 7,723 | 6,224 | $ 6,194 | |||
Transfers from restricted retained earnings | 0 | 0 | |||||
Subsequent Events [Abstract] | |||||||
Dividends, Common Stock, Cash | $ 243 | 161 | 135 | ||||
Subsequent Event | |||||||
Capital [Line Items] | |||||||
Retained Earnings, Set by the Board inc JCEA | $ 1,600 | ||||||
Subsequent Events [Abstract] | |||||||
Dividends, Cash Declared, Annualized Rate | 8.75% | ||||||
Interest and Dividends Payable, Current | $ 69 | ||||||
Dividends Payable, Date to be Paid | Mar. 14, 2024 | ||||||
Minimum | |||||||
Capital [Line Items] | |||||||
Regulatory Restrictions on Payment of Capital Stock Dividends, Excess Stock to Assets, Percent | 1% | ||||||
Unrestricted Retained Earnings | |||||||
Retained Earnings [Abstract] | |||||||
Total Capital | $ 3,475 | 3,262 | 3,124 | 2,919 | |||
Transfers from restricted retained earnings | (16) | (53) | |||||
Subsequent Events [Abstract] | |||||||
Dividends, Common Stock, Cash | 243 | 161 | 135 | ||||
Total Restricted Retained Earnings | |||||||
Retained Earnings [Abstract] | |||||||
Total Capital | $ 815 | 732 | 708 | $ 761 | |||
Transfers from restricted retained earnings | $ (16) | $ (53) |
Capital (Excess Capital Stock)
Capital (Excess Capital Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Banking Regulation, Total Capital [Abstract] | ||
Common stock, par value | $ 100 | |
Excess Capital | $ 118 | $ 157 |
Capital (Concentration) (Detail
Capital (Concentration) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | May 01, 2023 | |
JPMorgan Chase | ||||
Concentration Risk [Line Items] | ||||
Capital Stock Outstanding | $ 643 | $ 379 | ||
Silicon Valley Bank | ||||
Concentration Risk [Line Items] | ||||
Capital Stock Outstanding | $ 0 | $ 418 | ||
First Republic Bank | JPMorgan Chase | ||||
Concentration Risk [Line Items] | ||||
Capital Stock Outstanding | $ 759 | |||
Total Capital Stock, 10% or more | JPMorgan Chase | JPMorgan Chase | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Capital Stock Outstanding | 10% | 20% | ||
Total Capital Stock, 10% or more | Silicon Valley Bank | Silicon Valley Bank | ||||
Concentration Risk [Line Items] | ||||
Percentage of Total Capital Stock Outstanding | 0% | 11% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Narrative) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregate fair value of uncleared derivative instruments with credit risk-related contingent features in a net derivative liability position (before cash collateral and related accrued interest) | $ 333 |
Collateral Already Posted, Aggregate Fair Value | 338 |
Derivatives, Additional Net Credit Exposure | $ 771 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives, Notional Amount | $ 117,437 | $ 116,793 | |
Derivative Assets | 831 | 849 | |
Netting adjustments and cash collateral | [1] | (815) | (823) |
Total Derivative Assets and Derivative Liabilities | 16 | 26 | |
Derivative Liabilities | 792 | 1,195 | |
Netting Adjustments and Cash Collateral-Derivative Liability | [1] | (790) | (1,193) |
Derivative liabilities, net | 2 | 2 | |
Cash collateral posted, including accrued interest | 353 | 694 | |
Cash collateral received, including accrued interest | 378 | 324 | |
Designated as Hedging Instrument | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, Notional Amount | 90,088 | 69,204 | |
Derivative Assets | 795 | 799 | |
Derivative Liabilities | 705 | 1,062 | |
Not Designated as Hedging Instrument, Economic Hedge | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, Notional Amount | 27,349 | 47,589 | |
Derivative Assets | 36 | 50 | |
Derivative Liabilities | $ 87 | $ 133 | |
[1]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively. |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Advances | $ 3,999 | $ 1,226 | $ 224 |
AFS securities | 921 | 408 | 220 |
Bonds | (3,901) | (715) | (62) |
Net gain/(loss) on derivatives | (25) | (9) | 37 |
Advances | Interest Income | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 117 | 814 | 175 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 230 | (804) | (390) |
Net Gains Losses On Qualifying Active Fair Value Hedging Relationships | 347 | 10 | (215) |
Available-for-sale Securities | Interest Income | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 91 | 1,202 | 309 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 230 | (1,247) | (482) |
Net Gains Losses On Qualifying Active Fair Value Hedging Relationships | 321 | (45) | (173) |
Consolidated Obligations, Bonds | Interest Expense | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (138) | (1,038) | (87) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (438) | 944 | 152 |
Net Gains Losses On Qualifying Active Fair Value Hedging Relationships | $ (576) | $ (94) | $ 65 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Cumulative adjustments table (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amortized Cost of Hedged Liability, Fair Value Hedge | $ (34,121) | $ (21,976) |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Bonds (includes $604 and $2,226 at fair value under the fair value option, respectively) | Bonds (includes $604 and $2,226 at fair value under the fair value option, respectively) |
Advances | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amortized Cost of Hedged Asset, Fair Value Hedge | $ 38,338 | $ 34,535 |
Basis Adjustment for Active Fair Value Hedged Asset Cumulative Increase Decrease | (427) | (740) |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (371) | $ (670) |
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Advances (includes $1,898 and $2,059 at fair value under the fair value option, respectively) | Advances (includes $1,898 and $2,059 at fair value under the fair value option, respectively) |
Available-for-sale Securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amortized Cost of Hedged Asset, Fair Value Hedge | $ 17,029 | $ 11,574 |
Basis Adjustment for Active Fair Value Hedged Asset Cumulative Increase Decrease | (1,053) | (1,410) |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | $ (432) | $ (670) |
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) |
Consolidated Obligations, Bonds | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Basis Adjustment for Active Fair Value Hedged Liability Cumulative Increase Decrease | $ 645 | $ 1,083 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 645 | 1,083 |
Advances | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Basis Adjustment for Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 56 | 70 |
Available-for-sale Securities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Basis Adjustment for Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 621 | 740 |
Consolidated Obligations, Bonds | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Basis Adjustment for Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ 0 | $ 0 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Derivatives in Statement of Income and Impact on Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 37 | ||
Net gain/(loss) on derivatives | $ (25) | $ (9) | |
Total net gain/(loss) related to derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (21) | (8) | 37 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (26) | 34 | 108 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Net interest settlements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 5 | (42) | (71) |
Not Designated as Hedging Instrument [Member] | Price Alignment Amount | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Price Alignment Amount | $ (4) | $ (1) | |
Gain (Loss) on Derivative and Hedging Activities | Not Designated as Hedging Instrument [Member] | Price Alignment Amount | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Price Alignment Amount | $ 0 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Recognized Amount | $ 831 | $ 849 | |
Derivative Asset Fair Value Gross Liability and Right To Reclaim Cash Offset | (815) | (823) | |
Total Derivative Assets and Derivative Liabilities | 16 | 26 | |
Derivative Asset, Noncash collateral not offset that can be sold or repledged | 0 | (435) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 16 | 461 | |
Derivative Liability, Fair Value, Gross Recognized Amount | 792 | 1,195 | |
Netting Adjustments and Cash Collateral-Derivative Liability | [1] | (790) | (1,193) |
Derivative Assets and Derivative Liabilities | 2 | 2 | |
Derivative Liability, Noncash collateral not offset that can be sold or repledged | 0 | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 2 | |
Uncleared derivatives | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Recognized Amount | 826 | 834 | |
Derivative Asset Fair Value Gross Liability and Right To Reclaim Cash Offset | (814) | (829) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 12 | 5 | |
Derivative Liability, Fair Value, Gross Recognized Amount | 778 | 1,188 | |
Netting Adjustments and Cash Collateral-Derivative Liability | (776) | (1,186) | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 2 | |
Cleared derivatives | |||
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Recognized Amount | 5 | 15 | |
Derivative Asset Fair Value Gross Liability and Right To Reclaim Cash Offset | (1) | 6 | |
Derivative Asset, Noncash collateral not offset that can be sold or repledged | 0 | (435) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 4 | 456 | |
Derivative Liability, Fair Value, Gross Recognized Amount | 14 | 7 | |
Netting Adjustments and Cash Collateral-Derivative Liability | (14) | (7) | |
Derivative Liability, Noncash collateral not offset that can be sold or repledged | 0 | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 | |
[1]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively. |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) $ in Millions | Dec. 31, 2023 USD ($) numberOfVendors | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Assets | ||||||
Cash and due from banks | $ 5 | $ 9 | ||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | [1] | 18,014 | 12,713 | |||
HTM Securities, Fair Value | [2] | 1,847 | 2,181 | |||
HTM securities, fair value | 1,818 | 2,136 | ||||
Interest Receivable | 184 | 313 | ||||
Derivative assets, net | 16 | 26 | ||||
Derivative Assets | 831 | 849 | ||||
Derivative Asset, Netting adjustments | [3] | 815 | 823 | |||
Liabilities | ||||||
Mandatorily redeemable capital stock | 706 | 5 | $ 3 | $ 2 | ||
Accrued interest payable | 520 | 326 | ||||
Derivative liabilities, net | 2 | 2 | ||||
Derivative Liabilities | 792 | 1,195 | ||||
Derivative Liability, Netting adjustments | [3] | $ (790) | (1,193) | |||
Maximum | ||||||
Other | ||||||
Fair Value Measurements Valuation Techniques Number Of Designated Third Party Pricing Vendors | numberOfVendors | 3 | |||||
Median [Member] | ||||||
Other | ||||||
Fair Value Measurements Valuation Techniques Number Of Designated Third Party Pricing Vendors | numberOfVendors | 2 | |||||
Minimum | ||||||
Other | ||||||
Fair Value Measurements Valuation Techniques Number Of Designated Third Party Pricing Vendors | numberOfVendors | 1 | |||||
Carrying Value(1) | ||||||
Assets | ||||||
Cash and due from banks | $ 5 | 9 | ||||
Interest-bearing deposits | 2,922 | 3,677 | ||||
Securities purchased under agreements to resell | 3,650 | 7,000 | ||||
Federal funds sold | 3,861 | 4,719 | ||||
Trading securities | 1 | |||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | 18,014 | 12,713 | ||||
HTM securities, Carrying Value | (1,847) | |||||
HTM Securities, Fair Value | 2,181 | |||||
Advances | 61,335 | 89,400 | ||||
Mortgage loans held for portfolio | 754 | 815 | ||||
Interest Receivable | 184 | 313 | ||||
Derivative assets, net | [4] | 16 | 26 | |||
Other assets | [5] | 17 | 15 | |||
Liabilities | ||||||
Deposits | 962 | 989 | ||||
Total consolidated obligations | 83,484 | 111,697 | ||||
Mandatorily redeemable capital stock | 706 | 5 | ||||
Accrued interest payable | 520 | 326 | ||||
Derivative liabilities, net | [4] | 2 | 2 | |||
Estimated Fair Value | ||||||
Assets | ||||||
Cash and due from banks | 5 | 9 | ||||
Interest-bearing deposits | 2,922 | 3,677 | ||||
Securities purchased under agreements to resell | 3,650 | 7,000 | ||||
Federal funds sold | 3,861 | 4,719 | ||||
Trading securities | 1 | |||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | 18,014 | 12,713 | ||||
HTM securities, fair value | 1,818 | 2,136 | ||||
Advances | 61,216 | 89,183 | ||||
Mortgage loans held for portfolio | 634 | 695 | ||||
Interest Receivable | 184 | 313 | ||||
Derivative assets, net | [4] | 16 | 26 | |||
Other assets | [5] | 17 | 15 | |||
Liabilities | ||||||
Deposits | 962 | 989 | ||||
Total consolidated obligations | 83,219 | 111,312 | ||||
Mandatorily redeemable capital stock | 706 | 5 | ||||
Accrued interest payable | 520 | 326 | ||||
Derivative liabilities, net | [4] | 2 | 2 | |||
Level 1 | ||||||
Assets | ||||||
Cash and due from banks | 5 | 9 | ||||
Interest-bearing deposits | 2,922 | 3,677 | ||||
Securities purchased under agreements to resell | 0 | 0 | ||||
Federal funds sold | 0 | 0 | ||||
Trading securities | 0 | |||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | 0 | 0 | ||||
HTM securities, fair value | 0 | 0 | ||||
Advances | 0 | 0 | ||||
Mortgage loans held for portfolio | 0 | 0 | ||||
Interest Receivable | 0 | 0 | ||||
Derivative Assets | 0 | 0 | [4] | |||
Other assets | [5] | 17 | 15 | |||
Liabilities | ||||||
Deposits | 0 | 0 | ||||
Total consolidated obligations | 0 | 0 | ||||
Mandatorily redeemable capital stock | 706 | 5 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative Liabilities | 0 | 0 | [4] | |||
Level 2 | ||||||
Assets | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest-bearing deposits | 0 | 0 | ||||
Securities purchased under agreements to resell | 3,650 | 7,000 | ||||
Federal funds sold | 3,861 | 4,719 | ||||
Trading securities | 1 | |||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | 16,955 | 11,531 | ||||
HTM securities, fair value | 1,702 | 1,993 | ||||
Advances | 61,216 | 89,183 | ||||
Mortgage loans held for portfolio | 634 | 695 | ||||
Interest Receivable | 184 | 313 | ||||
Derivative Assets | [4] | 831 | 849 | |||
Derivative Asset, Netting adjustments | [4] | (815) | (823) | |||
Other assets | [5] | 0 | 0 | |||
Liabilities | ||||||
Deposits | 962 | 989 | ||||
Total consolidated obligations | 83,219 | 111,312 | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | 520 | 326 | ||||
Derivative Liabilities | [4] | 792 | 1,195 | |||
Derivative Liability, Netting adjustments | [4] | (790) | (1,193) | |||
Level 3 | ||||||
Assets | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest-bearing deposits | 0 | 0 | ||||
Securities purchased under agreements to resell | 0 | 0 | ||||
Federal funds sold | 0 | 0 | ||||
Trading securities | 0 | |||||
Available-for-sale (AFS) securities, net of allowance for credit losses of $31 and $30, respectively (amortized cost of $18,105 and $12,757, respectively)(a) | 1,059 | 1,182 | ||||
HTM securities, fair value | 116 | 143 | ||||
Advances | 0 | 0 | ||||
Mortgage loans held for portfolio | 0 | 0 | ||||
Interest Receivable | 0 | 0 | ||||
Derivative Assets | 0 | 0 | [4] | |||
Other assets | [5] | 0 | 0 | |||
Liabilities | ||||||
Deposits | 0 | 0 | ||||
Total consolidated obligations | 0 | 0 | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative Liabilities | 0 | 0 | [4] | |||
Discount notes | Carrying Value(1) | ||||||
Liabilities | ||||||
Discount notes | 19,187 | 35,929 | ||||
Discount notes | Estimated Fair Value | ||||||
Liabilities | ||||||
Discount notes | 19,182 | 35,916 | ||||
Discount notes | Level 1 | ||||||
Liabilities | ||||||
Discount notes | 0 | 0 | ||||
Discount notes | Level 2 | ||||||
Liabilities | ||||||
Discount notes | 19,182 | 35,916 | ||||
Discount notes | Level 3 | ||||||
Liabilities | ||||||
Discount notes | 0 | 0 | ||||
Bonds | ||||||
Liabilities | ||||||
Bonds | 604 | 2,226 | ||||
Bonds | Carrying Value(1) | ||||||
Liabilities | ||||||
Bonds | 64,297 | 75,768 | ||||
Bonds | Estimated Fair Value | ||||||
Liabilities | ||||||
Bonds | 64,037 | 75,396 | ||||
Bonds | Level 1 | ||||||
Liabilities | ||||||
Bonds | 0 | 0 | ||||
Bonds | Level 2 | ||||||
Liabilities | ||||||
Bonds | 64,037 | 75,396 | ||||
Bonds | Level 3 | ||||||
Liabilities | ||||||
Bonds | $ 0 | $ 0 | ||||
[1]At December 31, 2023 and 2022, $771 million and $435 million, respectively, of these securities were pledged as collateral that may be repledged.[2]Amortized cost includes unpaid principal balance, unamortized premiums and discounts, and net charge-offs, and excludes accrued interest receivable of $6 million and $5 million at December 31, 2023 and 2022, respectively.[3]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively.[4]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents or counterparty.[5]Represents publicly traded mutual funds held in a grantor trust. |
Fair Value (Fair Value Measured
Fair Value (Fair Value Measured on Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | ||
MBS – Other U.S. obligations | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | $ 0 | |||
MBS – Other U.S. obligations | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 1 | |||
MBS – Other U.S. obligations | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 0 | |||
MBS – Other U.S. obligations | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 1 | |||
US Treasury Securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | $ 0 | 0 | ||
US Treasury Securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 4,534 | 4,024 | ||
US Treasury Securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
US Treasury Securities | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 4,534 | 4,024 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 12,421 | 7,507 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 1,059 | 1,182 | ||
Residential Mortgage Backed Securities | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 13,480 | 8,689 | ||
Subtotal PLRMBS | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Subtotal PLRMBS | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Subtotal PLRMBS | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 1,059 | 1,182 | ||
Subtotal PLRMBS | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 1,059 | 1,182 | ||
Fair value of advances under the fair value option | [1] | 1,898 | 2,059 | |
Derivative Asset, Netting adjustments | [2] | 815 | 823 | |
Derivative assets, net | 16 | 26 | ||
Derivative Liability, Netting adjustments | [2] | (790) | (1,193) | |
Derivative liabilities, net | 2 | 2 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 0 | |||
Other assets | [3] | 17 | 15 | |
Mortgage loans held for portfolio | 0 | 0 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 1 | |||
Derivative Asset, Netting adjustments | [4] | (815) | (823) | |
Other assets | [3] | 0 | 0 | |
Derivative Liability, Netting adjustments | [4] | (790) | (1,193) | |
Mortgage loans held for portfolio | 634 | 695 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 0 | |||
Other assets | [3] | 0 | 0 | |
Mortgage loans held for portfolio | 0 | 0 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of advances under the fair value option | [5] | 1,898 | 2,059 | |
Derivative Asset, Netting adjustments | [6] | (815) | (823) | |
Derivative Liability, Netting adjustments | [6] | (790) | (1,193) | |
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Fair value of advances under the fair value option | [5] | 0 | 0 | |
Other assets | 17 | 15 | ||
Total fair value measurements – Assets | 17 | 15 | ||
Total recurring fair value measurements – Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 16,955 | 11,531 | ||
Fair value of advances under the fair value option | [5] | 1,898 | 2,059 | |
Other assets | 0 | 0 | ||
Total fair value measurements – Assets | 19,684 | 14,440 | ||
Total recurring fair value measurements – Liabilities | 1,396 | 3,421 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 1,059 | 1,182 | ||
Fair value of advances under the fair value option | [5] | 0 | 0 | |
Other assets | 0 | 0 | ||
Total fair value measurements – Assets | 1,059 | 1,182 | ||
Total recurring fair value measurements – Liabilities | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total fair value measurements – Assets | [7] | 0 | 0 | |
Mortgage loans held for portfolio | 0 | 0 | [7] | |
Fair Value, Measurements, Nonrecurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total fair value measurements – Assets | [7] | 0 | 0 | |
Mortgage loans held for portfolio | 0 | 0 | [7] | |
Fair Value, Measurements, Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total fair value measurements – Assets | [7] | 22 | 20 | |
Mortgage loans held for portfolio | [7] | 22 | 20 | |
Consolidated obligation bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | 604 | 2,226 | ||
Consolidated obligation bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | 0 | 0 | ||
Consolidated obligation bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | 64,037 | 75,396 | ||
Consolidated obligation bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | 0 | 0 | ||
Consolidated obligation bonds | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | [8] | 604 | 2,226 | |
Consolidated obligation bonds | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | [8] | 0 | 0 | |
Consolidated obligation bonds | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | [8] | 604 | 2,226 | |
Consolidated obligation bonds | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | [8] | 0 | 0 | |
Estimate of Fair Value Measurement | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trading securities | 1 | |||
Derivative assets, net | [4] | 16 | 26 | |
Other assets | [3] | 17 | 15 | |
Derivative liabilities, net | [4] | 2 | 2 | |
Mortgage loans held for portfolio | 634 | 695 | ||
Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 18,014 | 12,713 | ||
Other assets | 17 | 15 | ||
Total fair value measurements – Assets | 19,945 | 14,814 | ||
Total recurring fair value measurements – Liabilities | 606 | 2,228 | ||
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total fair value measurements – Assets | [7] | 22 | 20 | |
Mortgage loans held for portfolio | [7] | 22 | 20 | |
Estimate of Fair Value Measurement | Consolidated obligation bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Bonds | 64,037 | 75,396 | ||
Interest rate swaps | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset, Netting adjustments | [6] | (815) | (823) | |
Derivative Liability, Netting adjustments | [6] | (790) | (1,193) | |
Interest rate swaps | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, net | 0 | 0 | ||
Derivative liabilities, net | 0 | 0 | ||
Interest rate swaps | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, net | 831 | 849 | ||
Derivative liabilities, net | 792 | 1,195 | ||
Interest rate swaps | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, net | 0 | 0 | ||
Derivative liabilities, net | 0 | 0 | ||
Interest rate swaps | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, net | 16 | 26 | ||
Derivative liabilities, net | 2 | 2 | ||
Multifamily [Member] | MBS - GSEs | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Multifamily [Member] | MBS - GSEs | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 12,421 | 7,507 | ||
Multifamily [Member] | MBS - GSEs | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | 0 | 0 | ||
Multifamily [Member] | MBS - GSEs | Estimate of Fair Value Measurement | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value of AFS Securities | $ 12,421 | $ 7,507 | ||
[1]At December 31, 2023 and 2022, none of these advances were 90 days or more past due or had been placed on nonaccrual status.[2]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral, including accrued interest, held or placed with the same clearing agents or counterparty. Cash collateral posted, including accrued interest, was $353 million and $694 million at December 31, 2023 and 2022, respectively. Cash collateral received, including accrued interest, was $378 million and $324 million at December 31, 2023 and 2022, respectively.[3]Represents publicly traded mutual funds held in a grantor trust.[4]Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, and also cash collateral and related accrued interest held or placed with the same clearing agents or counterparty.[5] Represents advances recorded under the fair value option at December 31, 2023 and 2022. The fair value information presented is as of the date the fair value adjustment was recorded during the years ended December 31, 2023 and 2022. |
Fair Value (Level 3) (Details)
Fair Value (Level 3) (Details) - Subtotal PLRMBS - Fair Value, Measurements, Recurring - Level 3 - Available-for-sale Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of the period | $ 1,182 | $ 1,608 | $ 2,035 |
Interest income | 33 | 55 | 69 |
Provision for Credit Losses | (4) | (14) | 3 |
Other income/(loss) | 0 | 28 | 0 |
Unrealized gain/(loss) included in AOCI | (15) | (146) | 18 |
Settlements | (139) | (366) | (519) |
Transfers of HTM to AFS | 2 | 17 | 2 |
Balance, end of the period | 1,059 | 1,182 | 1,608 |
Total amount of gain/(loss) for the period included in earnings attributable to the change in unrealized gains/(losses) relating to assets held at the end of the period | 29 | 41 | 71 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ (15) | $ (146) | $ 19 |
Fair Value (Fair Value Option)
Fair Value (Fair Value Option) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | $ (1) | $ (65) | $ (54) |
Advances | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | 28 | (119) | (62) |
Consolidated obligation bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Net gain/(loss) on advances and consolidated obligation bonds held under fair value option | $ (29) | $ 54 | $ 8 |
Fair Value (Fair Value Differen
Fair Value (Fair Value Difference Between Fair Value and Remaining Contractual Principal Balance Outstanding) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Option, Principal Balance, Advances | [1] | $ 1,902 | $ 2,106 |
Fair Value of advances under the fair value option | [1] | 1,898 | 2,059 |
Fair Value Over/(Under) Principal Balance, Advances | [1] | (4) | (47) |
Consolidated obligation bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Option, Principal Balance, CO Bonds | 633 | 2,278 | |
Fair value of bonds under the fair value option | 604 | 2,226 | |
Fair Value Over/(Under) Principal Balance, CO Bonds | $ (29) | $ (52) | |
[1]At December 31, 2023 and 2022, none of these advances were 90 days or more past due or had been placed on nonaccrual status. |
Commitments and Contingencies O
Commitments and Contingencies Off-Balance Sheet Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 1,200,000 | $ 1,200,000 |
Other Liabilities | 353 | 203 |
Assets Pledged As Collateral | 1,100 | 1,100 |
Available-for-sale securities pledged as collateral that may be repledged | 771 | 435 |
Derivative, Collateral, Right to Reclaim Cash | 353 | 694 |
Standby letters of credit outstanding | Carrying Value(1) | ||
Loss Contingencies [Line Items] | ||
Other commitments | 57 | |
Standby letters of credit outstanding | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 10,547 | |
Expire After One Year | 8,871 | |
Total | 19,418 | 22,640 |
Other Liabilities | 34 | |
Commitments to issue consolidated obligation discount notes, par | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 0 | |
Expire After One Year | 0 | |
Total | 0 | 300 |
Commitments to issue consolidated obligation bonds, par | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 0 | |
Expire After One Year | 0 | |
Total | 0 | 2,385 |
Guarantee of Indebtedness of Others | ||
Loss Contingencies [Line Items] | ||
Total consolidated obligations, par value | $ 84,300 | $ 113,100 |
Transactions with Certain Mem_3
Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets: | |||
Advances | $ 61,335 | $ 89,400 | |
Mortgage loans held for portfolio | 754 | 815 | |
Accrued interest receivable | 184 | 313 | |
Liabilities: | |||
Deposits | 962 | 989 | |
Capital: | |||
Capital Stock | 2,450 | 3,758 | |
Interest Income: | |||
Advances | 3,999 | 1,226 | $ 224 |
Mortgage loans held for portfolio | 26 | 46 | 42 |
Interest Expense: | |||
Deposits | 64 | 18 | 1 |
Transaction with Member Officer or Director | |||
Assets: | |||
Advances | 5,762 | 7,269 | |
Mortgage loans held for portfolio | 74 | 80 | |
Accrued interest receivable | 5 | 9 | |
Liabilities: | |||
Deposits | 34 | 11 | |
Capital: | |||
Capital Stock | 191 | 215 | |
Interest Income: | |||
Advances | 271 | 114 | 51 |
Mortgage loans held for portfolio | 3 | 1 | 0 |
Interest Expense: | |||
Deposits | $ 1 | $ 0 | $ 0 |
Transactions with Certain Mem_4
Transactions with Certain Members, Certain Nonmembers, and Other FHLBanks - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Payments to acquire other receivables | $ 2,600 | $ 2,400 | |
Proceeds from Other FHLBank borrowings | 5,500 | 10,400 | $ 140 |
Other FHLBank interest expense | $ 2 | 1 | |
MPF service fee expense to FHLB Chicago | $ 1 | $ 1 |
Other (Details)
Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other [Abstract] | |||
Professional and Contract Services Expense | $ 35 | $ 28 | $ 28 |
Occupancy, Net | 11 | 11 | 11 |
Equipment Expense | 5 | 6 | 7 |
Other - Other operating expense | 17 | 13 | 8 |
Other operating expense | $ 68 | $ 58 | $ 54 |
Employee Retirement Plans and_3
Employee Retirement Plans and Incentive Compensation Plans (Fair Value of Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash Balance Plan | ||
Defined Benefit Plan, Amounts recognized in Statement of Financial Position | ||
Fair value of plan assets | $ 96 | $ 80 |
Funded status at the end of the year | 16 | 6 |
Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plan, Amounts recognized in Statement of Financial Position | ||
Fair value of plan assets | 0 | 0 |
Funded status at the end of the year | (15) | (15) |
Post-retirement Health Benefit Plan | ||
Defined Benefit Plan, Amounts recognized in Statement of Financial Position | ||
Fair value of plan assets | 0 | 0 |
Funded status at the end of the year | $ (1) | $ (1) |
Employee Retirement Plans and_4
Employee Retirement Plans and Incentive Compensation Plans (Amounts recognized in AOCI) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash Balance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss/(gain) | $ 12 | $ 16 |
Post-retirement Health Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss/(gain) | $ (1) | $ (1) |
Employee Retirement Plans and_5
Employee Retirement Plans and Incentive Compensation Plans (Benefit Obligations in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash Balance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 80 | $ 74 |
Accumulated benefit obligation | 80 | 74 |
Fair value of plan assets | 96 | 80 |
Funded status at the end of the year | 16 | 6 |
Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 15 | 15 |
Accumulated benefit obligation | 15 | 15 |
Fair value of plan assets | 0 | 0 |
Funded status at the end of the year | (15) | (15) |
Post-retirement Health Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1 | 1 |
Accumulated benefit obligation | 1 | 1 |
Fair value of plan assets | 0 | 0 |
Funded status at the end of the year | $ (1) | $ (1) |
Employee Retirement Plans and_6
Employee Retirement Plans and Incentive Compensation Plans (Weighted-Average Assumptions in Determining Benefit Obligations) (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash Balance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.50% | 4.75% |
Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.50% | 4.75% |
Post-retirement Health Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.75% | 5% |
Employee Retirement Plans and_7
Employee Retirement Plans and Incentive Compensation Plans (Fair Value of Cash Balance Plan) (Details) - Cash Balance Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 96 | $ 80 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 96 | 80 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 2 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 2 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 59 | 48 |
Equity mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 59 | 48 |
Equity mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 25 |
Fixed income mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 25 |
Fixed income mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 3 |
Real estate mutual funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 3 |
Real estate mutual funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate mutual funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other mutual funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 2 |
Other mutual funds [Member] | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 2 |
Other mutual funds [Member] | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other mutual funds [Member] | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Employee Retirement Plans and_8
Employee Retirement Plans and Incentive Compensation Plans (Weighted-Average Asset Allocation of Cash Balance Plan) (Details) - Cash Balance Plan - Level 1 | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 1% | 2% |
Equity mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 62% | 60% |
Fixed income mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 30% | 31% |
Real estate mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 4% | 4% |
Other mutual funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3% | 3% |
Employee Retirement Plans and_9
Employee Retirement Plans and Incentive Compensation Plans (Future benefit payments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Cash Balance Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 8 |
2021 | 4 |
2022 | 5 |
2023 | 5 |
2024 | 5 |
2025 | 37 |
2026 - 2030 | 25 |
Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2 |
2021 | 0 |
2022 | 2 |
2023 | 1 |
2024 | 1 |
2025 | 5 |
2026 - 2030 | $ 8 |
Employee Retirement Plans an_10
Employee Retirement Plans and Incentive Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non Qualified Defined Benetfit Interest | 6% | |
Defined Contribution Plan, Maximum Annual Contributions per Employee, Percent | 75% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | |
Defined Contribution Plan, Cost | $ 3 | |
Deferred Compensation Arrangement with Individual, Recorded Liability | 58 | $ 51 |
Incentive Compensation Plan, Other Liability | $ 16 | $ 15 |
Cash Balance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash Balance Plan Defined Benefit Accrual Percentage | 6% | |
Cash Balance Plan Defined Benefit Interest | 6% | |
Non-Qualified Defined Benefit Plan, Expected Future Employer Contributions, Next Twelve Months | $ 3 | |
Discount rate | 4.50% | 4.75% |
Post-retirement Health Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.75% | 5% |
Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.50% | 4.75% |
Equity mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 60% | |
Real estate mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 10% | |
Fixed income mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 30 |