Document and Entity Information
Document and Entity Information Document and Entify Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Federal Home Loan Bank of Des Moines | ||
Entity Central Index Key | 0001325814 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 55,126,595 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false |
Statements of Condition
Statements of Condition - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks (Note 3) | $ 119 | $ 503 |
Interest-bearing deposits | 1 | 1 |
Securities purchased under agreements to resell | 4,700 | 4,600 |
Federal funds sold | 4,150 | 4,250 |
Investment securities | ||
Trading securities (Note 4) | 915 | 1,177 |
Available-for-sale securities (Note 5) | 19,019 | 20,796 |
Held-to-maturity securities (fair value of $3,021 and $3,686) (Note 6) | 2,992 | 3,628 |
Total investment securities | 22,926 | 25,601 |
Advances (Note 8) | 106,323 | 102,613 |
Mortgage loans held for portfolio, net of allowance for credit losses of $1 and $2 (Notes 9 and 10) | 7,835 | 7,096 |
Accrued interest receivable | 290 | 223 |
Derivative assets, net (Note 11) | 58 | 100 |
Other assets | 113 | 112 |
TOTAL ASSETS | 146,515 | 145,099 |
LIABILITIES | ||
Interest-bearing | 976 | 1,013 |
Non-interest-bearing | 94 | 94 |
Total deposits | 1,070 | 1,107 |
Consolidated obligations (Note 13) | ||
Discount notes | 42,879 | 36,682 |
Bonds | 93,772 | 98,893 |
Total consolidated obligations | 136,651 | 135,575 |
Loans from Other Federal Home Loan Banks | 500 | 600 |
Mandatorily redeemable capital stock (Note 15) | 255 | 385 |
Accrued interest payable | 268 | 210 |
Affordable Housing Program payable (Note 14) | 153 | 142 |
Derivative liabilities, net (Note 11) | 9 | 6 |
Other liabilities | 61 | 53 |
TOTAL LIABILITIES | 138,967 | 138,078 |
Commitments and contingencies (Note 18) | ||
CAPITAL (Note 15) | ||
Capital stock - Class B putable ($100 par value); 54 and 51 issued and outstanding shares | 5,414 | 5,068 |
Retained earnings | ||
Unrestricted | 1,623 | 1,504 |
Restricted | 427 | 335 |
Total retained earnings | 2,050 | 1,839 |
Accumulated other comprehensive income (loss) | 84 | 114 |
TOTAL CAPITAL | 7,548 | 7,021 |
TOTAL LIABILITIES AND CAPITAL | $ 146,515 | $ 145,099 |
Statements of Condition (Parent
Statements of Condition (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Held-to-maturity securities, fair value | $ 3,021 | $ 3,686 |
Capital stock - Class B putable, par value per share | $ 100 | |
Loans and Leases Receivable, Allowance | $ 1 | $ 2 |
Common Class B [Member] | ||
Capital stock - Class B putable, par value per share | $ 100 | $ 100 |
Capital stock - Class B putable, issued shares | 54 | 51 |
Capital stock - Class B putable, outstanding shares | 54 | 51 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME | |||
Advances | $ 2,443 | $ 1,589 | $ 876 |
Interest-bearing deposits | 1 | 2 | 3 |
Securities purchased under agreements to resell | 73 | 42 | 19 |
Federal funds sold | 107 | 72 | 21 |
Interest Income, Debt Securities, Trading, Operating | 31 | 44 | 50 |
Available-for-sale securities | 504 | 368 | 246 |
Held-to-maturity securities | 87 | 80 | 76 |
Mortgage loans held for portfolio | 252 | 236 | 233 |
Total interest income | 3,498 | 2,433 | 1,524 |
INTEREST EXPENSE | |||
Consolidated obligations - Discount notes | 736 | 521 | 414 |
Consolidated obligations - Bonds | 2,095 | 1,239 | 639 |
Deposits | 14 | 6 | 1 |
Mandatorily redeemable capital stock | 18 | 17 | 21 |
Total interest expense | 2,863 | 1,783 | 1,075 |
NET INTEREST INCOME | 635 | 650 | 449 |
Provision (reversal) for credit losses on mortgage loans | 0 | 0 | 3 |
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES | 635 | 650 | 446 |
OTHER INCOME (LOSS) | |||
Net gains (losses) on trading securities | (15) | 1 | 3 |
Net gains (losses) on derivatives and hedging activities | 19 | 12 | 7 |
Gains on litigation settlements, net | 0 | 21 | 376 |
Other, net | 16 | 18 | 10 |
Total other income (loss) | 20 | 52 | 396 |
OTHER EXPENSE | |||
Compensation and benefits | 62 | 52 | 53 |
Contractual services | 12 | 11 | 10 |
Professional fees | 19 | 19 | 12 |
Other operating expenses | 26 | 21 | 19 |
Federal Housing Finance Agency | 9 | 10 | 8 |
Office of Finance | 7 | 7 | 7 |
Other, net | 7 | 4 | 9 |
Total other expense | 142 | 124 | 118 |
NET INCOME BEFORE ASSESSMENTS | 513 | 578 | 724 |
Affordable Housing Program assessments | 53 | 60 | 75 |
NET INCOME | $ 460 | $ 518 | $ 649 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 460 | $ 518 | $ 649 |
Other comprehensive income (loss) | |||
Unrealized gains (losses) on available-for-sale securities | (31) | 132 | 68 |
Pension and postretirement benefits | 1 | 0 | (2) |
Total other comprehensive income (loss) | (30) | 132 | 66 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 430 | $ 650 | $ 715 |
Statements of Capital
Statements of Capital - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 7,021 | $ 7,401 | $ 5,625 |
Proceeds from issuance of capital stock | 7,987 | 5,602 | 6,050 |
Repurchases/redemptions of capital stock | (7,588) | (6,407) | (4,105) |
Net shares reclassified (to) from mandatorily redeemable capital stock | (53) | (44) | (742) |
Comprehensive income (loss) | 430 | 650 | 715 |
Cash dividends on capital stock | (249) | (181) | (142) |
Ending Balance | 7,548 | 7,021 | 7,401 |
Additional Capital from Merger [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 0 | 52 | 194 |
Cash dividends on capital stock | (52) | (142) | |
Ending Balance | 0 | 0 | 52 |
Retained Earnings, Unrestricted [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,504 | 1,219 | 700 |
Comprehensive income (loss) | 368 | 414 | 519 |
Cash dividends on capital stock | (249) | (129) | 0 |
Ending Balance | 1,623 | 1,504 | 1,219 |
Retained Earnings, Restricted [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 335 | 231 | 101 |
Comprehensive income (loss) | 92 | 104 | 130 |
Ending Balance | 427 | 335 | 231 |
Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 1,839 | 1,450 | 801 |
Comprehensive income (loss) | 460 | 518 | 649 |
Cash dividends on capital stock | (249) | (129) | 0 |
Ending Balance | 2,050 | 1,839 | 1,450 |
Accumulated Other Comprehensive Income [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 114 | (18) | (84) |
Comprehensive income (loss) | (30) | 132 | 66 |
Ending Balance | 84 | 114 | (18) |
Common Class B [Member] | Capital Stock (putable) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 5,068 | $ 5,917 | $ 4,714 |
BALANCE (shares) | 51 | 59 | 47 |
Proceeds from issuance of capital stock | $ 7,987 | $ 5,602 | $ 6,050 |
Proceeds from issuance of capital stock (shares) | 80 | 56 | 60 |
Repurchases/redemptions of capital stock | $ (7,588) | $ (6,407) | $ (4,105) |
Repurchases/redemptions of capital stock (shares) | (76) | (64) | (41) |
Net shares reclassified (to) from mandatorily redeemable capital stock | $ (53) | $ (44) | $ (742) |
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | (1) | 0 | (7) |
Ending Balance | $ 5,414 | $ 5,068 | $ 5,917 |
BALANCE (shares) | 54 | 51 | 59 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 460 | $ 518 | $ 649 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 86 | 26 | 48 |
Net (gains) losses on trading securities | 15 | (1) | (3) |
Net change in derivatives and hedging activities | 147 | 5 | (88) |
Other adjustments | 0 | 5 | (5) |
Net change in: | |||
Accrued interest receivable | (163) | (86) | (83) |
Other assets | 4 | (6) | (3) |
Accrued interest payable | 57 | 30 | 61 |
Other liabilities | 14 | (7) | 84 |
Total adjustments | 160 | (34) | 11 |
Net Cash Provided by (Used in) Operating Activities | 620 | 484 | 660 |
INVESTING ACTIVITIES | |||
Interest-bearing deposits | 69 | 91 | (115) |
Securities purchased under agreements to resell | (100) | 1,325 | 850 |
Federal funds sold | 100 | 845 | (2,825) |
Loans to other FHLBanks | 0 | 200 | (200) |
Trading securities | |||
Proceeds from maturities of long-term | 247 | 1,377 | 3,093 |
Purchases of long-term | 0 | 0 | (1,597) |
Available-for-Sale securities | |||
Proceeds from sales and maturities of long-term | 3,541 | 2,576 | 2,462 |
Purchases of long-term | 1,812 | 402 | 4,317 |
Held-to-maturity securities | |||
Proceeds from sales and maturities of long-term | 641 | 1,014 | 1,455 |
Purchases of long-term | 0 | 0 | (64) |
Advances | |||
Principal collected | 301,462 | 295,221 | 174,767 |
Originated | (305,197) | (266,362) | (217,392) |
Mortgage loans held for portfolio | |||
Principal collected | 903 | 1,040 | 1,317 |
Originated or purchased | (1,662) | (1,245) | (1,509) |
Payments for (Proceeds from) Other Investing Activities | (20) | (24) | 5 |
Net Cash Provided by (Used in) Investing Activities | (1,828) | 35,656 | (44,070) |
FINANCING ACTIVITIES | |||
Net change in deposits | (5) | (2) | 5 |
Proceeds from Federal Home Loan Bank Borrowings | (100) | 600 | 0 |
Net payments on derivative contracts with financing elements | (1) | (4) | (7) |
Net proceeds from issuance of consolidated obligations | |||
Discount notes | 161,907 | 191,047 | 272,871 |
Bonds | 46,812 | 67,555 | 98,684 |
Payments for maturing and retiring consolidated obligations | |||
Discount notes | (155,794) | (235,329) | (290,948) |
Bonds | (51,962) | (58,418) | (39,576) |
Proceeds from issuance of capital stock | 7,987 | 5,602 | 6,050 |
Payments for repurchases/redemptions of capital stock | (7,588) | (6,407) | (4,105) |
Net payments for repurchases/redemptions of mandatorily redeemable capital stock | (183) | (323) | (181) |
Cash dividends paid | (249) | (181) | (142) |
Net Cash Provided by (Used in) Financing Activities | 824 | (35,860) | 42,651 |
Cash and Cash Equivalents, Period Increase (Decrease) | (384) | 280 | (759) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 503 | 223 | 982 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 119 | 503 | 223 |
SUPPLEMENTAL DISCLOSURES | |||
Interest paid | 2,740 | 1,776 | 1,057 |
Affordable Housing Program payments | 44 | 34 | 21 |
Capitalized interest on reverse mortgage securities | 95 | 60 | 29 |
Mortgage loan charge-offs | 1 | 1 | 3 |
Transfers of mortgage loans to real estate owned | 3 | 6 | 7 |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | $ 53 | $ 44 | $ 742 |
Background Information
Background Information | 12 Months Ended |
Dec. 31, 2018 | |
Background Information [Abstract] | |
Nature of Operations [Text Block] | Background Information The Federal Home Loan Bank of Des Moines (the Bank) is a federally chartered corporation organized on October 31, 1932, that is exempt from all federal, state, and local taxation (except real property taxes) and is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks were created under the authority of the Federal Home Loan Bank Act of 1932 (FHLBank Act). With the passage of the Housing and Economic Recovery Act of 2008 (Housing Act), the Federal Housing Finance Agency (Finance Agency) was established and became the new independent federal regulator of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, Enterprises), as well as the FHLBanks and FHLBanks’ Office of Finance, effective July 30, 2008. The Finance Agency’s mission is to ensure that the Enterprises and FHLBanks operate in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment. The Finance Agency establishes policies and regulations governing the operations of the Enterprises and FHLBanks. Each FHLBank operates as a separate entity with its own management, employees, and board of directors. The FHLBanks are government-sponsored enterprises (GSEs) that serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank provides a readily available source of funding and liquidity to its member institutions and eligible housing associates in Alaska, Hawaii, Idaho, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. Commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions (CDFIs) may apply for membership. State and local housing associates that meet certain statutory criteria may also borrow from the Bank; while eligible to borrow, housing associates are not members of the Bank and, as such, are not permitted to hold capital stock. The Bank is a cooperative. This means the Bank is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain membership capital stock based on a percentage of their total assets, subject to a minimum and maximum amount, as of the preceding December 31 st . Each member is also required to purchase and maintain activity-based capital stock to support certain business activities with the Bank. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies BASIS OF PRESENTATION The Bank prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Reclassifications Certain amounts in the Bank’s 2017 and 2016 financial statements and footnotes have been reclassified to conform to the presentation as of December 31, 2018. In particular, due to the change in current presentation, variation margin on cleared derivatives has been allocated to the individual derivative instruments. Previously, this amount was included as a component of netting adjustments and cash collateral. For additional details regarding this reclassification, refer to “Note 11 — Derivatives and Hedging Activities.” SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant of these estimates include the fair value of derivatives and certain investment securities that are reported at fair value in the Statements of Condition, and the allowance for credit losses on mortgage loans. Actual results could significantly differ from these estimates. Fair Value. The fair value amounts, recorded in the Bank’s Statements of Condition and presented in the footnote disclosures, have been determined by the Bank using available market information and management’s best judgment of appropriate valuation methods. Although management uses its best judgment in estimating the fair value of financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. See “Note 17 — Fair Value” for more information. Financial Instruments Meeting Netting Requirements The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that may be presented on a net basis when there is 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 instruments, related cash collateral, and associated accrued interest when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis and therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the requirements for netting, 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 11 — Derivatives and Hedging Activities.” At December 31, 2018 and 2017 , the Bank had $5 billion in securities purchased under agreements to resell. Based on the fair value of the related collateral held, the Bank’s securities purchased under agreements to resell were fully collateralized for the periods presented. There were no offsetting liabilities related to these securities at December 31, 2018 and 2017 . Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold Interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold provide short-term liquidity and are carried at cost. Interest-bearing deposits include deposits held with banks or counterparties that do not meet the definition of a security. The Bank treats securities purchased under agreements to resell as short-term secured investments. These secured investments are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the market value of the underlying securities decrease below the market value required as collateral, the counterparty must either place an equivalent amount of additional securities in safekeeping in the name of the Bank or remit an equivalent amount of cash. Otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans generally transacted with counterparties that are considered by the Bank to be of investment quality . Investment Securities The Bank classifies investment securities as trading, available-for-sale (AFS), and held-to-maturity (HTM) at the date of acquisition. Purchases and sales of investment securities are recorded on a trade date basis. The Bank records interest on investment securities to interest income as earned. The Bank amortizes/accretes premiums and discounts on AFS and HTM investment securities to income using the contractual level-yield method (level-yield method). In addition, the Bank uses this method to amortize/accrete fair value hedging adjustments. The level-yield method recognizes the income effects of these adjustments over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank computes gains and losses on sales of investment securities using the specific identification method and includes these gains and losses in other income (loss). Trading . Securities classified as trading are carried at fair value and generally entered into for liquidity purposes. In addition, the Bank classifies certain securities as trading that do not qualify for hedge accounting, primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. The Bank records changes in the fair value of these securities through other income (loss) as “Net gains (losses) on trading securities.” Finance Agency regulation prohibits trading in or the speculative use of these instruments. Available-for-Sale. Securities that are not classified as trading or HTM are classified as AFS and carried at fair value. The Bank records changes in the fair value of these securities through accumulated other comprehensive income (loss) (AOCI) as “Net unrealized gains (losses) on available-for-sale securities.” 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 security related to the risk being hedged together with the related change in fair value of the derivative through other income (loss) as “Net gains (losses) on derivatives and hedging activities.” The Bank records the remainder of the change in fair value through AOCI as “Net unrealized gains (losses) on available-for-sale securities.” Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as HTM and carried at amortized cost, which represents the amount at which an investment is acquired, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Certain changes in circumstances may cause the Bank to change its intent to hold a 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 a HTM security due to 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, non-recurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without necessarily calling into question its intent to hold other debt securities to maturity. In addition, the sale of a debt security that meets either of the following two conditions would not be considered inconsistent with the original classification of that security: (i) the sale occurs near enough to its maturity date (for example, within three months of maturity), or call date if exercise of the call is probable, that interest rate risk is substantially eliminated as a pricing factor and the 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 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on the debt security payable in equal installments (both principal and interest) over its term. Investment Securities - Other-Than-Temporary Impairment The Bank evaluates its individual AFS and HTM securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost basis. The Bank considers an OTTI to have occurred under any of the following conditions: • it has an intent to sell the impaired debt security; • it believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or • it does not expect to recover the entire amortized cost basis of the impaired debt security. Recognition of OTTI . If either of the first two conditions is met, the Bank recognizes an OTTI charge in earnings equal to the entire difference between the security’s amortized cost basis and its fair value as of the reporting date. If neither of the first two conditions is met, the Bank performs an analysis to determine if it will recover the entire amortized cost basis of the debt security, which includes a cash flow analysis for private-label mortgage-backed securities (MBS). The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors is recognized in AOCI. The credit loss on a debt security is limited to the amount of that security’s unrealized losses. The total OTTI is presented in the Statements of Income with an offset for the amount of the non-credit portion of OTTI that is recognized in AOCI, if applicable. See “Note 7 — Other-Than-Temporary Impairment” for additional information. Variable Interest Entities The Bank has determined its investments in private-label MBS to be variable interest entities (VIEs). These securities are classified as HTM in the Bank’s Statements of Condition. The Bank has no liabilities related to these VIEs. The maximum loss exposure for these VIEs is limited to the Bank’s investments in the VIEs. If the Bank determines it is the primary beneficiary of a VIE, it would be required to consolidate that VIE. On a quarterly basis, the Bank performs an evaluation to determine whether it is the primary beneficiary of its VIEs. To perform this evaluation, the Bank considers whether it possesses both of the following characteristics: (i) the power to direct the VIEs activities that most significantly affect the VIEs economic performance and (ii) the obligation to absorb the VIEs losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Based on an evaluation of these characteristics, the Bank has determined that consolidation is not required for its VIEs for the periods presented. The Bank has not provided financial or other support (explicitly or implicitly) to its VIEs and does not intend to provide that support in the future. Advances The Bank reports advances (secured loans to members, former members, or eligible housing associates) at amortized cost, which is net of premiums, discounts, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the advances are carried at fair value. The Bank records interest on advances to interest income as earned. The Bank amortizes/accretes premiums, discounts, and fair value hedging adjustments on advances to income using the level-yield method over the contractual life of the advances. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. For advances with symmetrical prepayment features, 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. Prepayment fees and credits are recorded net of fair value hedging adjustments in advance interest income in the Statements of Income. Advance Modifications. In cases in which the Bank funds a new advance to a borrower concurrently with or within a short period of time before or after the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. The Bank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a ten percent difference in the present value of the 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 and all prepayment fees or credits net of fair value hedging adjustments are recognized immediately to advance interest income in the Statements of Income. In all other instances, the advance is accounted for as a modification. When a new advance qualifies as a modification of an existing advance, any prepayment fee, net of fair value hedging adjustments, as well as any outstanding premiums, discounts or other adjustments, on the prepaid advance are deferred, recorded in the basis of the modified advance, and amortized over the contractual life of the modified advance using a level-yield methodology to advance interest income. Mortgage Loans Held for Portfolio The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of premiums, discounts, basis adjustments from mortgage loan purchase commitments, charge-offs, and the allowance for credit losses. The Bank records interest on mortgage loans to interest income as earned. The Bank amortizes/accretes premiums, discounts, and basis adjustments on mortgage loan purchase commitments to income using the level-yield method over the contractual life of the mortgage loans. Allowance for Credit Losses An allowance for credit losses is a valuation allowance separately established for each identified portfolio segment, if it is probable that impairment has occurred in the Bank’s portfolio as of the statement of condition date and the amount of loss can be reasonably estimated. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. To the extent necessary, an allowance for credit losses for off-balance sheet credit exposures is recorded as a liability. See “Note 10 — Allowance for Credit Losses” for details on each of the Bank’s allowance methodologies. Portfolio Segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for credit products (advances, standby letters of credit, and other extensions of credit to borrowers), government-insured mortgage loans held for portfolio, conventional Mortgage Partnership Finance Program (MPF) and Mortgage Purchase Program (MPP) loans held for portfolio, and term securities purchased under agreements to resell. Mortgage Partnership Finance and MPF are registered trademarks of the FHLBank of Chicago. Classes of Financing Receivables. Classes of financing receivables generally are a disaggregation of a portfolio segment to the extent that it is needed to understand the exposure to credit risk arising from the financing receivables. The Bank assesses and measures its credit risk arising from financing receivables at the portfolio segment level. As such, it has determined that no further disaggregation of the portfolio segments identified above is needed. Non-Accrual Loans. The Bank places a conventional mortgage loan on non-accrual status if it is determined that either the collection of interest or principal is doubtful or interest or principal is 90 days or more past due. The Bank does not place a government-insured mortgage loan on non-accrual status due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income and cash payments received are recorded as a reduction of principal. In addition, premiums, discounts, and basis adjustments from mortgage loan purchase commitments are not amortized while a loan is on non-accrual status. A loan on non-accrual status may be restored to accrual status when none of its contractual principal and interest is due and unpaid and the Bank expects repayment of the remaining contractual principal and interest. Troubled Debt Restructurings . The Bank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. The Bank’s TDRs include loans granted under its loan modification plans and loans discharged under Chapter 7 bankruptcy that have not been reaffirmed by the borrower. The Bank does not consider government-insured mortgage loans to be TDRs due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. The Bank places all TDRs on non-accrual status at the time of modification. Individually Evaluated Impaired Loans. The Bank individually evaluates all TDRs and collateral-dependent loans for impairment. The Bank generally measures impairment of TDRs based on the present value of expected future cash flows discounted at the loan’s effective interest rate. Collateral-dependent loans are loans in which repayment is expected to be provided solely by the sale of the underlying property; that is, there is no other available and reliable source of repayment. The Bank’s collateral-dependent loans include loans in process of foreclosure, loans 180 days or more past due, and bankruptcy loans and TDRs 60 days or more past due. The Bank measures impairment of collateral-dependent loans based on the estimated fair value of the underlying property, less estimated selling costs and expected proceeds from primary mortgage insurance (PMI). Interest income on impaired loans is recognized in the same manner as non-accrual loans. Charge-Off Policy . A charge-off is recorded if it is estimated that the recorded investment in a loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include but are not limited to, the occurrence of foreclosure or when a loan is deemed collateral-dependent. The Bank charges-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral, which is determined using property values, less estimated selling costs and expected proceeds from PMI. Loans to/from Other FHLBanks The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. Derivatives All derivatives are recognized in the Statements of Condition at their fair values and reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as a derivative asset and, if negative, they are classified as a derivative 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 transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty (uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., a clearing agent) with a Derivative Clearing Organization (cleared derivatives). The Bank utilizes one Derivative Clearing Organization (Clearinghouse), CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin payments, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, which are a component of the derivative fair value, rather than cash collateral. 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 effectiveness for all derivatives qualifying for hedge accounting. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities in the Statements of Condition and firm commitments. Derivative Designations . Derivative instruments are designated by the Bank as: • a fair value hedge of an associated financial instrument or firm commitment (fair value hedge); or • an economic hedge to manage certain defined risks in the Bank’s Statements of Condition (economic hedge). These hedges are primarily used to: (i) manage mismatches between the coupon features of the Bank’s assets and liabilities, (ii) offset prepayment risk in certain assets, (iii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance, or (iv) to reduce exposure to reset risk. Accounting for Fair Value Hedges . If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the fair value hedging relationship and an expectation to be highly effective, they qualify for fair value hedge accounting and the changes in fair value of derivatives along with the offsetting changes in fair value of the hedged items attributable to the hedged risk are recorded in other income (loss) as “Net gains (losses) on derivatives and hedging activities.” The amount by which the change in fair value of the derivative differs from the change in fair value of the hedged item is known as hedge ineffectiveness. Two approaches to fair value hedge accounting include: • Long-haul hedge accounting . The application of long-haul hedge accounting requires the Bank to formally assess (both at the hedge’s inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items due to benchmark interest rate changes and whether those derivatives are expected to remain highly effective in future periods. The Bank uses regression analyses to assess the effectiveness of its long-haul hedges. • Short-cut hedge accounting . Transactions that meet certain criteria qualify for short-cut hedge accounting in which an assumption can be made that the change in fair value of a hedged item due to changes in the benchmark interest rate exactly offsets the change in fair value of the related derivative. Under the short-cut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair value of the hedged asset or liability. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a fair value hedge relationship at the trade date. In many hedging relationships, the Bank may designate the fair value 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 then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Accounting for Economic Hedges . An economic hedge is defined as a derivative 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. Changes in the fair value of derivatives that are designated as economic hedges are recorded in other income (loss) as “Net gains (losses) on derivatives and hedging activities” with no offsetting fair value adjustments for the underlying assets, liabilities, or firm commitments, unless changes in the fair value of the assets or liabilities are normally marked to fair value through earnings (e.g., trading securities and fair value option instruments). Accrued Interest Receivables and Payables . The net settlements of interest receivables and payables related to derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlements of interest receivables and payables related to derivatives designated as economic hedges are recognized in other income (loss) as “Net gains (losses) on derivatives and hedging activities.” Discontinuance of Hedge Accounting. The Bank discontinues fair value hedge accounting prospectively when either (i) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item due to changes in the benchmark interest rate, (ii) the derivative and/or the hedged item expires or is sold, terminated, or exercised, (iii) a hedged firm commitment no longer meets the definition of a firm commitment, or (iv) management determines that designating the derivative as a hedging instrument is no longer appropriate. When fair value hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative in the Statements of Condition at its fair value. For any remaining hedged item, the Bank ceases to adjust the hedged item for changes in fair value and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining contractual life of the hedged item using the level-yield method. When fair value hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Bank continues to carry the derivative in the Statements of Condition at its fair value, removing from the Statements of Condition any hedged item that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. Embedded Derivatives. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is “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 debt, advance, or purchased financial instrument (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. If the Bank determines that the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and 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 an economic derivative instrument. However, if the Bank elects to carry the entire contract (the host contract and the embedded derivative) at fair value in the Statements of Condition, changes in fair value of the entire contract will be reported in current period earnings. Premises, Software, and Equipment Premises, software, and equipment are included in other assets on the Statement of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization and computes depreciation and amortization using the straight-line method over the estimated useful lives of assets, which range from approximately three years to 40 years . Leasehold improvements, if applicable, are amortized using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank may capitalize improvements and major renewals but expenses ordinary maintenance and repairs when incurred. The Bank may capitalize and amortize the cost of computer software developed or obtained for internal use over future periods. The Bank includes gains and losses on the disposal of premises, software, and equipment in other income (loss) on the Statement of Income. At December 31, 2018 and 2017 , premises, software, and equipment totaled $76 million and $52 million , which was net of accumulated depreciation and amortization of $27 million and $23 million . At December 31, 2018 , 2017 , and 2016 , depreciation and amortization expense for premises, software, and equipment was $9 million , $6 million , and $5 million . Consolidated Obligations The Bank reports consolidated obligations at amortized cost, which is net of premiums, discounts, concessions, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the consolidated obligations are carried at fair value. The Bank records interest on consolidated obligations bonds to interest expense as incurred. The Bank amortizes/accretes premiums, discounts, concessions, and fair value hedging adjustments on consolidated obligations to expense using the level-yield method over the contractual life of the consolidated obligations. Concessions. The Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the amount of the concession to each FHLBank based upon the percentage of the debt issued that is attributed to that FHLBank. Concessions paid on consolidated obligations designated under the fair value option are expensed as incurred and recorded in other expense. Concessions paid on consolidated obligations not designated under the fair value option are deferred and amortized over the contractual life of the consolidated obligations using the level |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Guidance | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and Issued Accounting Guidance [Text Block] | Recently Adopted and Issued Accounting Guidance ADOPTED ACCOUNTING GUIDANCE Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07) On March 10, 2017, the Financial Accounting Standards Board (FASB) issued amended guidance that requires an employer to disaggregate the service cost component from the other components of net periodic pension cost and net periodic postretirement benefit cost (net benefit cost). The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. The adoption of this guidance resulted in a reclassification of other net benefit costs from “Compensation and Benefits” to “Other Expense, Net” in the Bank’s Statement of Income. The adoption of this guidance did not have a material effect on the Bank’s financial condition, result of operations, or cash flows. Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) On August 26, 2016, the FASB issued amendments to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This guidance is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. The adoption of this guidance did not have a direct effect on the Bank’s financial condition, results of operations, or cash flows. However, the Bank did revise its previously reported supplemental interest paid disclosure to align with the clarified accounting guidance. Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) On January 5, 2016, the FASB issued amended guidance on certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes, but is not limited to, the following: • Requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in income. • Requires an entity to present separately in other comprehensive income (OCI) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) in the statements of condition or the accompanying notes to the financial statements. • Eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost in the statements of condition. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted using the modified retrospective approach. The adoption of this guidance affected the Bank’s fair value disclosures. However, the guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows. Revenue from Contracts with Customers (ASU 2014-09) On May 28, 2014, the FASB issued guidance on revenue from contracts with customers. This guidance outlines a single comprehensive model for recognizing revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In addition, this guidance amends the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer. This guidance applies to all contracts with customers except those that are within the scope of certain other standards, such as financial instruments, certain guarantees, insurance contracts, and lease contracts. The guidance provides entities with the option of using either of the following adoption methods: a full retrospective method, retrospectively to each prior reporting period presented; or a modified retrospective method, retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. On August 12, 2015, the FASB issued an amendment to defer the effective date of this guidance issued in May 2014 by one year. In 2016, the FASB issued additional amendments to clarify certain aspects of the new revenue guidance. However, these amendments did not change the core principle in the new revenue standard. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. Given that the majority of the Bank’s financial instruments and other contractual rights that generate revenue are covered by other U.S. GAAP, the adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, and cash flows. ISSUED ACCOUNTING GUIDANCE Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2018-16) On October 25, 2018, the FASB issued amended guidance to include the SOFR OIS rate as a U.S. benchmark interest rate for hedge accounting purposes. Including the OIS rate based on SOFR as an eligible benchmark interest rate during the early stages of the marketplace transition will facilitate the London Inter-bank Offered Rate (LIBOR) to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate, and are effective prospectively for qualifying new or re-designated hedging relationships entered into on or after January 1, 2019. The Bank adopted this guidance on January 1, 2019; however, the Bank did not implement any new SOFR OIS hedge strategies. It will continue to assess opportunities to expand its eligible hedge strategies in the future. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) On August 29, 2018, the FASB issued amended guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by this guidance. The amendments require a customer in a hosting arrangement that is a service contract to follow the guidance outlined in ASC Topic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. They require the customer to expense the capitalized implementation costs over the term of the hosting arrangement. The amendments also require the customer to present the expense in the same line item in the statement of income as the fees associated with the hosting element (service) and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. Lastly, capitalized implementation costs should be presented in the statement of condition in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2020, and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Bank is in the process of evaluating this guidance and its anticipated effect on the Bank’s financial condition, results of operations, and cash flows has not yet been determined. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14) On August 28, 2018, the FASB issued amended guidance that modifies the disclosure requirements for defined benefit plans to improve disclosure effectiveness. This guidance becomes effective for the Bank for annual periods ending on December 31, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it may reduce certain disclosures. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) On August 28, 2018, the FASB issued amended guidance that modifies the disclosure requirements for fair value measurements to improve disclosure effectiveness. This guidance becomes effective for the Bank for interim and annual periods beginning on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it may reduce certain disclosures. Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12) On August 28, 2017, the FASB issued amended guidance to improve the financial reporting of hedging relationship to better portray the economic results of an entity’s risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness must be recorded in OCI. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception. • Measurement of the hedged item in a partial-term fair value hedge of interest-rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged. • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest-rate risk. • For a cash flow hedge of interest-rate risk of a variable-rate financial instrument, an entity could designate as the hedged risk the variability in cash flows attributable to the contractually specified interest-rate. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019. The guidance did not affect the Bank’s application of hedge accounting for existing hedge strategies, with the exception of designation of a fallback long-haul method for its short-cut hedge strategies, which did not impact the Bank’s financial condition, results of operations or cash flows. This guidance will prospectively affect the Bank’s income statement presentation for fair value hedge relationships and will require certain new disclosures in future filings. The Bank will continue to assess opportunities enabled by the new guidance to expand its risk management strategies. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08) On March 30, 2017, the FASB issued guidance to shorten the amortization period for certain purchased callable debt securities held at a premium. Specifically, this guidance requires the premium to be amortized to the earliest call date. This guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019 and was adopted on a modified retrospective basis. The adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, or cash flows. Measurement of Credit Losses on Financial Instruments (ASU 2016-13) On June 16, 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The new guidance requires a financial asset, or a group of financial assets, measured at amortized cost to be presented at the net amount expected to be collected. The guidance also requires, among other things, the following: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. • Entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of purchased credit deterioration (PCD) since origination that are measured at amortized cost in a similar manner to other financial assets measured at amortized cost. The initial allowance for credit losses is required to be added to the purchase price of the assets acquired. • Entities to record credit losses relating to AFS debt securities through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost. • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). This guidance is effective for the Bank for the interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. This guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for PCD assets upon adoption and for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Bank does not intend to adopt the new guidance early. The Bank is in the process of evaluating the impact this guidance will have on its mortgage loans held for portfolio. The Bank has evaluated the impact of this guidance on all other in-scope financial instruments, and expects zero credit losses on its advance and credit products as well as agency and government-sponsored enterprise (GSE) debt securities, and immaterial credit losses on its remaining investment portfolio. The final effect of this guidance on the Bank’s financial condition, results of operations, and cash flows will depend upon the composition of financial assets held by the Bank at the adoption date as well as the economic conditions and forecasts at that time. Leases (ASU 2016-02) On February 25, 2016, the FASB issued guidance which requires recognition of lease assets and lease liabilities on the statement of condition and disclosure of key information about leasing arrangements. Specifically, this guidance requires a lessee, of operating or finance leases, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019 and was adopted on a modified retrospective basis. Upon adoption, the Bank recorded right-of-use assets and lease liabilities for its operating leases of $3 million |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Due from Banks [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Cash and Due from Banks Cash and due from banks includes cash on hand, cash items in the process of collection, compensating balances, and amounts due from correspondent banks and the Federal Reserve Bank. COMPENSATING BALANCES The Bank maintains collected cash balances with commercial banks in return for certain services. These arrangements contain no legal restrictions on the withdrawal of funds. Average collected cash balances were $63 million and $139 million for the years ended December 31, 2018 and 2017 . PASS-THROUGH DEPOSIT RESERVES The Bank acts as a pass-through correspondent for certain member institutions required to deposit reserves with the Federal Reserve Bank of Chicago. At December 31, 2018 and 2017 , pass-through deposit reserves amounted to $30 million and $26 million |
Trading Securities
Trading Securities | 12 Months Ended |
Dec. 31, 2018 | |
Trading Securities [Member] | |
Investment Holdings [Line Items] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Trading Securities MAJOR SECURITY TYPES Trading securities were as follows (dollars in millions): December 31, 2018 2017 Non-mortgage-backed securities U.S. obligations 1 $ 159 $ 197 GSE and Tennessee Valley Authority obligations 57 260 Other 2 266 272 Total non-mortgage-backed securities 482 729 Mortgage-backed securities GSE multifamily 433 448 Total fair value $ 915 $ 1,177 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds. NET GAINS (LOSSES) ON TRADING SECURITIES The Bank did not sell any trading securities during the years ended December 31, 2018 , 2017 , and 2016 . During the year ended December 31, 2018 , the Bank recorded net holding losses of $15 million on its trading securities compared to net holding gains of $1 million and $3 million for the same periods in 2017 and 2016 . |
Available-for-Sale Securities
Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2018 | |
Available-for-Sale Securities [Member] | |
Investment Holdings [Line Items] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Available-for-Sale Securities MAJOR SECURITY TYPES AFS securities we re as follows (dollars in millions): December 31, 2018 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities U.S. obligations 2 $ 2,597 $ 8 $ (3 ) $ 2,602 GSE and Tennessee Valley Authority obligations 1,012 26 — 1,038 State or local housing agency obligations 820 — (6 ) 814 Other 3 264 11 — 275 Total non-mortgage-backed securities 4,693 45 (9 ) 4,729 Mortgage-backed securities U.S. obligations single-family 2 4,459 25 (1 ) 4,483 GSE single-family 794 6 (4 ) 796 GSE multifamily 8,986 36 (11 ) 9,011 Total mortgage-backed securities 14,239 67 (16 ) 14,290 Total $ 18,932 $ 112 $ (25 ) $ 19,019 December 31, 2017 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities U.S. obligations 2 $ 3,096 $ 8 $ (5 ) $ 3,099 GSE and Tennessee Valley Authority obligations 1,197 39 — 1,236 State or local housing agency obligations 935 — (1 ) 934 Other 3 269 9 — 278 Total non-mortgage-backed securities 5,497 56 (6 ) 5,547 Mortgage-backed securities U.S. obligations single-family 2 3,716 11 (1 ) 3,726 GSE single-family 983 7 (2 ) 988 GSE multifamily 10,482 57 (4 ) 10,535 Total mortgage-backed securities 15,181 75 (7 ) 15,249 Total $ 20,678 $ 131 $ (13 ) $ 20,796 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists of taxable municipal bonds and/or Private Export Funding Corporation (PEFCO) bonds. UNREALIZED LOSSES The following tables summarize AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities U.S. obligations 1 $ 533 $ (1 ) $ 311 $ (2 ) $ 844 $ (3 ) State or local housing agency obligations 211 — 586 (6 ) 797 (6 ) Total non-mortgage-backed securities 744 (1 ) 897 (8 ) 1,641 (9 ) Mortgage-backed securities U.S. obligations single-family 1 646 (1 ) — — 646 (1 ) GSE single-family 115 — 209 (4 ) 324 (4 ) GSE multifamily 3,239 (8 ) 718 (3 ) 3,957 (11 ) Total mortgage-backed securities 4,000 (9 ) 927 (7 ) 4,927 (16 ) Total $ 4,744 $ (10 ) $ 1,824 $ (15 ) $ 6,568 $ (25 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities U.S. obligations 1 $ 29 $ — $ 1,783 $ (5 ) $ 1,812 $ (5 ) State or local housing agency obligations 6 — 655 (1 ) 661 (1 ) Total non-mortgage-backed securities 35 — 2,438 (6 ) 2,473 (6 ) Mortgage-backed securities U.S. obligations single-family 1 111 — 887 (1 ) 998 (1 ) GSE single-family 222 (2 ) 53 — 275 (2 ) GSE multifamily 224 (1 ) 1,756 (3 ) 1,980 (4 ) Total mortgage-backed securities 557 (3 ) 2,696 (4 ) 3,253 (7 ) Total $ 592 $ (3 ) $ 5,134 $ (10 ) $ 5,726 $ (13 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. CONTRACTUAL MATURITY The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions): December 31, 2018 December 31, 2017 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 74 $ 74 $ 158 $ 159 Due after one year through five years 1,314 1,323 750 755 Due after five years through ten years 2,497 2,506 3,574 3,583 Due after ten years 808 826 1,015 1,050 Total non-mortgage-backed securities 4,693 4,729 5,497 5,547 Mortgage-backed securities 14,239 14,290 15,181 15,249 Total $ 18,932 $ 19,019 $ 20,678 $ 20,796 NET GAINS (LOSSES) FROM SALE OF AFS SECURITIES During the years ended December 31, 2018 and 2017, the Bank did not sell any AFS securities. During the year ended December 31, 2016, the Bank received $287 million in proceeds from the sale of an AFS security and recognized gross gains of less than $1 million |
Held-to-Maturity Securities
Held-to-Maturity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Held-to-maturity Securities [Member] | |
Investment Holdings [Line Items] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | Held-to-Maturity Securities MAJOR SECURITY TYPES HTM securities wer e as follows (dollars in millions): December 31, 2018 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 389 $ 48 $ (2 ) $ 435 State or local housing agency obligations 391 1 (1 ) 391 Total non-mortgage-backed securities 780 49 (3 ) 826 Mortgage-backed securities U.S. obligations single-family 2 9 — — 9 U.S. obligations commercial 2 1 — — 1 GSE single-family 2,192 4 (21 ) 2,175 Private-label residential 10 — — 10 Total mortgage-backed securities 2,212 4 (21 ) 2,195 Total $ 2,992 $ 53 $ (24 ) $ 3,021 December 31, 2017 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 393 $ 65 $ — $ 458 State or local housing agency obligations 454 2 (2 ) 454 Total non-mortgage-backed securities 847 67 (2 ) 912 Mortgage-backed securities U.S. obligations single-family 2 15 — — 15 U.S. obligations commercial 2 2 — — 2 GSE single-family 2,752 7 (14 ) 2,745 Private-label residential 12 — — 12 Total mortgage-backed securities 2,781 7 (14 ) 2,774 Total $ 3,628 $ 74 $ (16 ) $ 3,686 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. UNREALIZED LOSSES The following tables summarize HTM securities with unrealized losses by major security type and the length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities GSE and Tennessee Valley Authority obligations $ 69 $ (2 ) $ — $ — $ 69 $ (2 ) State or local housing agency obligations 50 — 152 (1 ) 202 (1 ) Total non-mortgage backed securities 119 (2 ) 152 (1 ) 271 (3 ) Mortgage-backed securities U.S. obligations single-family 1 3 — — — 3 — U.S. obligations commercial 1 — — 1 — 1 — GSE single-family 611 (1 ) 1,008 (20 ) 1,619 (21 ) Private-label residential — — 6 — 6 — Total mortgage-backed securities 614 (1 ) 1,015 (20 ) 1,629 (21 ) Total $ 733 $ (3 ) $ 1,167 $ (21 ) $ 1,900 $ (24 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities State or local housing agency obligations $ 2 $ — $ 168 $ (2 ) $ 170 $ (2 ) Total non-mortgage backed securities 2 — 168 (2 ) 170 (2 ) Mortgage-backed securities U.S. obligations single-family 1 7 — 1 — 8 — U.S. obligations commercial 1 1 — 1 — 2 — GSE single-family 42 — 1,427 (14 ) 1,469 (14 ) Private-label residential — — 8 — 8 — Total mortgage-backed securities 50 — 1,437 (14 ) 1,487 (14 ) Total $ 52 $ — $ 1,605 $ (16 ) $ 1,657 $ (16 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. CONTRACTUAL MATURITY The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions): December 31, 2018 December 31, 2017 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 9 $ 9 $ 20 $ 20 Due after one year through five years 64 65 72 72 Due after five years through ten years 332 353 344 376 Due after ten years 375 399 411 444 Total non-mortgage-backed securities 780 826 847 912 Mortgage-backed securities 2,212 2,195 2,781 2,774 Total $ 2,992 $ 3,021 $ 3,628 $ 3,686 |
Other-Than-Temporary Impairment
Other-Than-Temporary Impairment Analysis | 12 Months Ended |
Dec. 31, 2018 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Other-Than-Temporary Impairment [Text Block] | Other-Than-Temporary Impairment The Bank evaluates its individual AFS and HTM securities in an unrealized loss position for OTTI on a quarterly basis. As part of its evaluation of securities for OTTI, the Bank considers its intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank will recognize an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the reporting date. For securities in an unrealized loss position that meet neither of these conditions, the Bank performs analyses to determine if any of these securities are other-than-temporarily impaired. The analysis of the Bank’s AFS and HTM investment securities in an unrealized loss position at December 31, 2018 is discussed below: • U.S. obligations and GSE and Tennessee Valley Authority securities. The unrealized losses were due primarily to changes in interest rates, and not to a significant deterioration in the fundamental credit quality of the obligations. The strength of the issuers’ guarantees through direct obligations or support from the U.S. Government was sufficient to protect the Bank from losses based on current expectations. The Bank expects to recover the amortized cost bases on these 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 recovery of their amortized cost bases. As such, the Bank did not consider these securities to be other-than-temporarily impaired at December 31, 2018 . • State or local housing agency obligations . The unrealized losses were due to changes in interest rates and illiquidity in the credit markets, and not to a significant deterioration in the fundamental credit quality of the obligations. The creditworthiness of the issuers and the strength of the underlying collateral and credit enhancements were sufficient to protect the Bank from losses based on current expectations. The Bank does not intend to sell these securities nor is it more likely than not that it will be required to sell these securities before recovery of their amortized cost bases. As such, the Bank did not consider these securities to be other-than-temporarily impaired at December 31, 2018 . • Private-label residential mortgage-backed securities. On a quarterly basis, the Bank engages other designated FHLBanks to perform cash flow analyses on its private-label MBS. As of December 31, 2018 , the Bank compared the present value of cash flows expected to be collected with respect to its private-label MBS to the amortized cost bases of the securities to determine whether a credit loss existed. At December 31, 2018 , the Bank’s cash flow analyses for private-label MBS did not project any credit losses. The Bank does not intend to sell its private-label MBS nor is it more likely than not that the Bank will be required to sell its private-label MBS before recovery of their amortized cost bases. As a result, the Bank did not consider any of its private-label MBS to be other-than-temporarily impaired at December 31, 2018 |
Advances
Advances | 12 Months Ended |
Dec. 31, 2018 | |
Advances [Abstract] | |
Advances [Text Block] | Advances The Bank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics, and optionality. Fixed rate advances generally have maturities ranging from overnight to 30 years . Variable rate advances generally have maturities ranging from one year to 20 years , where the interest rates reset periodically to a specified interest rate index such as LIBOR, or other specified index. REDEMPTION TERM The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): December 31, 2018 December 31, 2017 Redemption Term Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 2 3.63 % $ 1 3.63 % Due in one year or less 50,561 2.61 45,310 1.62 Due after one year through two years 23,946 2.61 17,094 1.79 Due after two years through three years 17,582 2.73 14,222 1.64 Due after three years through four years 4,091 2.73 17,561 1.79 Due after four years through five years 6,814 2.76 3,089 1.91 Thereafter 3,417 2.96 5,401 2.28 Total par value 106,413 2.66 % 102,678 1.73 % Premiums 38 53 Discounts (8 ) (12 ) Fair value hedging adjustments (120 ) (106 ) Total $ 106,323 $ 102,613 The following table summarizes advances by redemption term or next call date for callable advances, and by redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term or Next Put Date 2018 2017 2018 2017 Overdrawn demand deposit accounts $ 2 $ 1 $ 2 $ 1 Due in one year or less 77,931 69,971 50,617 45,372 Due after one year through two years 11,087 16,539 24,060 17,094 Due after two years through three years 10,423 3,809 17,628 14,222 Due after three years through four years 2,357 8,511 4,078 17,520 Due after four years through five years 2,444 1,276 6,722 3,073 Thereafter 2,169 2,571 3,306 5,396 Total par value $ 106,413 $ 102,678 $ 106,413 $ 102,678 The Bank offers advances to members and eligible housing associates that may be prepaid on pertinent dates (call dates) prior to maturity without incurring prepayment fees (callable advances). Other advances may require a prepayment fee or credit that makes the Bank financially indifferent to the prepayment of the advance. At December 31, 2018 and 2017 , the Bank had callable advances outstanding totaling $35.6 billion and $27.0 billion . The Bank also offers putable advances. With a putable advance, the Bank has the right to terminate the advance from the borrower on predetermined exercise date. Generally these put options are exercised when interest rates increase relative to contractual rates. At December 31, 2018 and 2017 , t he Bank had putable advances outstanding totaling $283 million and $405 million . PREPAYMENT FEES The Bank generally charges a prepayment fee for advances that a borrower elects to terminate prior to the stated maturity or outside of a predetermined call or put date. The fees charged are priced to make the Bank financially indifferent to the prepayment of the advance. For certain advances with symmetrical prepayment features, 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. Prepayment fees and credits are recorded net of fair value hedging adjustments in advance interest income in the Statements of Income. The Bank recorded prepayments fees on advances, net of $8 million , $2 million , and $8 million for the years ended December 31, 2018 , 2017 , and 2016 . CREDIT RISK EXPOSURE AND SECURITY TERMS The Bank’s potential credit risk from advances is concentrated in commercial banks, savings institutions, and insurance companies. At December 31, 2018 and 2017 , the Bank had outstanding advances of $49.6 billion and $45.8 billion to one member that individually held 10 percent or more of the Bank’s advances, which represents 47 percent and 45 |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Mortgage Loans Held for Portfolio [Text Block] | Mortgage Loans Held for Portfolio Mortgage loans held for portfolio includes conventional mortgage loans and government-guaranteed or -insured mortgage loans obtained through the MPF program and the MPP. The MPF program, which represented 97 percent of the Bank’s mortgage loans held for portfolio at December 31, 2018 , involves investment by the Bank in single-family mortgage loans held for portfolio that are either purchased from PFIs or funded by the Bank through PFIs. MPF loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank’s MPF PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. MPF PFIs participating in the servicing release program do not service the loans owned by the Bank. The servicing on these loans is sold concurrently by the MPF PFI to a designated mortgage service provider. Under the MPP, the Bank acquired single-family mortgage loans that were purchased directly from MPP PFIs. Similar to the MPF program, MPP PFIs generally originated, serviced, and credit enhanced the mortgage loan sold to the Bank. The MPP program represented three percent of the Bank’s mortgage loans held for portfolio at December 31, 2018 . The Bank does not currently purchase mortgage loans under this program. All loans in this portfolio were originated prior to 2006. The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions): December 31, 2018 2017 Fixed rate, long-term single-family mortgage loans $ 6,860 $ 5,998 Fixed rate, medium-term 1 single-family mortgage loans 874 1,003 Total unpaid principal balance 7,734 7,001 Premiums 105 98 Discounts (5 ) (6 ) Basis adjustments from mortgage loan purchase commitments 2 5 Total mortgage loans held for portfolio $ 7,836 $ 7,098 Allowance for credit losses (1 ) (2 ) Total mortgage loans held for portfolio, net $ 7,835 $ 7,096 1 Medium-term is defined as a term of 15 years or less. The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): December 31, 2018 2017 Conventional mortgage loans $ 7,231 $ 6,472 Government-insured mortgage loans 503 529 Total unpaid principal balance $ 7,734 $ 7,001 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Credit Losses The Bank has established an allowance for credit losses methodology for each of its financing receivable portfolio segments: advances, standby letters of credit, and other extensions of credit to borrowers (collectively, credit products), government-insured mortgage loans held for portfolio, MPF and MPP conventional mortgage loans held for portfolio, and term securities purchased under agreements to resell. CREDIT PRODUCTS The Bank manages its credit exposure to credit products through an approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower’s financial condition in conjunction with the Bank’s collateral and lending policies to limit risk of loss while balancing borrowers’ needs for a reliable source of funding. In addition, the Bank lends to eligible borrowers in accordance with the FHLBank Act, Finance Agency regulations, and other applicable laws. The Bank is required by regulation to obtain sufficient collateral to fully secure its advances and other credit products. The estimated value of the collateral required to secure each borrower’s credit products is calculated by applying collateral discounts, or haircuts to the unpaid principal or market value, if available, of the collateral. Eligible collateral includes (i) fully disbursed whole first mortgages on improved residential real property or securities representing a whole interest in such mortgages, (ii) loans and securities issued, insured, or guaranteed by the U.S. Government or any agency thereof, including MBS issued or guaranteed by Fannie Mae, Freddie Mac, or Government National Mortgage Association and Federal Family Education Loan Program guaranteed student loans, (iii) cash deposited with the Bank, and (iv) other real estate-related collateral acceptable to the Bank, such as second lien mortgages, home equity lines of credit, municipal securities, and commercial real estate mortgages, provided such collateral has a readily ascertainable value and the Bank can perfect a security interest in such collateral. Community financial institutions may also pledge collateral consisting of secured small business, small agri-business, or small farm loans. As additional security, the FHLBank Act provides that the Bank has a lien on each member’s capital stock investment; however, capital stock cannot be pledged as collateral to secure credit exposures. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and overall credit exposure to the borrower. The Bank can also require additional or substitute collateral to protect its security interest. The Bank periodically evaluates and makes changes to its collateral guidelines and collateral haircuts. Borrowers may pledge collateral to the Bank by executing a blanket pledge agreement, specifically assigning collateral, or placing physical possession of collateral with the Bank or its custodians. The Bank perfects its security interest in all pledged collateral by filing Uniform Commercial Code financing statements or by taking possession or control of the collateral. Under the FHLBank Act, any security interest granted to the Bank by its members, or any affiliates of its members, has priority over the claims and rights of any party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), unless those claims and rights would be entitled to priority under otherwise applicable law and are held by actual purchasers or by parties that have perfected security interests. Under a blanket pledge agreement, the Bank is granted a security interest in all financial assets of the borrower to fully secure the borrower’s obligation. Other than securities and cash deposits, the Bank does not initially take delivery of collateral from blanket agreement borrowers. In the event of deterioration in the financial condition of a blanket pledge agreement borrower, the Bank has the ability to require delivery of pledged collateral sufficient to secure the borrower’s obligation. With respect to non-blanket pledge agreement borrowers that are federally insured, the Bank generally requires collateral to be specifically assigned. With respect to non-blanket pledge agreement borrowers that are not federally insured (typically insurance companies, CDFIs, and housing associates), the Bank generally takes control of collateral through the delivery of cash, securities, or loans to the Bank or its custodians. Using a risk-based approach and taking into consideration each borrower’s financial strength, the Bank considers the types and level of collateral to be the primary indicator of credit quality on its credit products. At December 31, 2018 and 2017 , the Bank had rights to collateral on a borrower-by-borrower basis with an unpaid principal balance or market value, if available, in excess of its outstanding extensions of credit. At December 31, 2018 and 2017 , none of the Bank’s credit products were past due, on non-accrual status, or considered impaired. In addition, there were no TDRs related to credit products during the years ended December 31, 2018 and 2017 . The Bank has never experienced a credit loss on its credit products. Based upon the Bank’s collateral and lending policies, the collateral held as security, and the repayment history on credit products, management has determined that there were no probable credit losses on its credit products as of December 31, 2018 and 2017 . Accordingly, the Bank has not recorded any allowance for credit losses for its credit products. GOVERNMENT-INSURED MORTGAGE LOANS The Bank invests in government-insured fixed rate mortgage loans in both the MPF and MPP portfolios that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, and/or the Rural Housing Service of the Department of Agriculture. The servicer or PFI obtains and maintains insurance or a guaranty from the applicable government agency. The servicer or PFI is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-insured mortgage loans. Any losses incurred on these loans that are not recovered from the insurer/guarantor are absorbed by the servicers. As such, the Bank only has credit risk for these loans if the servicer or PFI fails to pay for losses not covered by the guarantee or insurance. Management views this risk as remote and has never experienced a credit loss on its government-insured mortgage loans. As a result, the Bank did not establish an allowance for credit losses for its government-insured mortgage loans at December 31, 2018 and 2017 . Furthermore, none of these mortgage loans have been placed on non-accrual status because of the U.S. Government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met. CONVENTIONAL MORTGAGE LOANS The Bank’s management of credit risk in the MPF and MPP programs involves several layers of legal loss protection that are defined in agreements among the Bank and its participating PFIs. These loss layers may vary depending on the product alternatives selected and credit profile of the loans. The Bank’s loss protection consists of the following loss layers, in order of priority: • Homeowner Equity. • Primary Mortgage Insurance. At the time of origination, PMI is required on all loans with homeowner equity of less than 20 percent of the original purchase price or appraised value, whichever is less and as applicable to the specific loan. • First Loss Account (FLA). For each MPF master commitment, the Bank’s potential loss exposure prior to the PFI’s credit enhancement obligation is estimated and tracked in a memorandum account called the FLA. • Credit Enhancement Obligation of PFI. PFIs have a credit enhancement obligation at the time an MPF mortgage loan is purchased to absorb certain losses in excess of the FLA in order to limit the Bank’s loss exposure to that of an investor in an investment grade MBS. PFIs pledge collateral to secure this obligation. Allowance Methodology The Bank utilizes an allowance for credit losses to reserve for estimated losses in its conventional MPF and MPP mortgage loan portfolios at the balance sheet date. The measurement of the Bank’s MPF and MPP allowance for credit losses is determined by the following: • reviewing similar conventional mortgage loans for impairment on a collective basis. This evaluation is primarily based on the following factors: (i) current loan delinquencies, (ii) loans migrating to collateral-dependent status, and (iii) actual historical loss severities; • reviewing conventional mortgage loans for impairment on an individual basis; and • estimating additional credit losses in the conventional mortgage loan portfolio. These losses result from other factors that may not be captured in the methodology previously described at the balance sheet date, which include but are not limited to certain quantifiable economic factors, such as unemployment rates and home prices impacting housing markets. The following table summarizes the allowance for credit losses and recorded investment of the Bank’s conventional mortgage loan portfolio by impairment methodology (dollars in millions): December 31, 2018 2017 Allowance for credit losses Collectively evaluated for impairment $ 1 $ 2 Recorded investment 1 Collectively evaluated for impairment $ 7,306 $ 6,530 Individually evaluated for impairment, without a related allowance 54 61 Total recorded investment $ 7,360 $ 6,591 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. CREDIT QUALITY INDICATORS Key credit quality indicators for mortgage loans include the migration of past due loans, loans in process of foreclosure, and non-accrual loans. The tables below summarize the Bank’s key credit quality indicators for mortgage loans (dollars in millions): December 31, 2018 Conventional MPF/MPP Government-Guaranteed or -Insured 6 Total Past due 30 - 59 days $ 49 $ 17 $ 66 Past due 60 - 89 days 14 5 19 Past due 90 - 179 days 11 4 15 Past due 180 days or more 13 4 17 Total past due mortgage loans 87 30 117 Total current mortgage loans 7,273 486 7,759 Total recorded investment of mortgage loans 1 $ 7,360 $ 516 $ 7,876 In process of foreclosure (included above) 2 $ 8 $ 2 $ 10 Serious delinquency rate 3 — % 2 % — % Past due 90 days or more and still accruing interest 4 $ — $ 8 $ 8 Non-accrual mortgage loans 5 $ 36 $ — $ 36 December 31, 2017 Conventional MPF/MPP Government-Guaranteed or -Insured 6 Total Past due 30 - 59 days $ 58 $ 19 $ 77 Past due 60 - 89 days 16 6 22 Past due 90 - 179 days 15 5 20 Past due 180 days or more 21 6 27 Total past due mortgage loans 110 36 146 Total current mortgage loans 6,481 507 6,988 Total recorded investment of mortgage loans 1 $ 6,591 $ 543 $ 7,134 In process of foreclosure (included above) 2 $ 12 $ 2 $ 14 Serious delinquency rate 3 1 % 2 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 11 $ 11 Non-accrual mortgage loans 5 $ 48 $ — $ 48 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their payment status. 3 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment. 4 Represents government-insured mortgage loans that are 90 days or more past due. 5 Represents conventional mortgage loans that are 90 days or more past due or TDRs. 6 The bank did not record any allowance for credit losses on government-guaranteed or -insured mortgage loans at December 31, 2018 and 2017 . INDIVIDUALLY EVALUATED IMPAIRED LOANS As previously described, the Bank evaluates certain conventional mortgage loans for impairment individually. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Bank did not recognize any interest income on impaired loans during the year s ended December 31, 2018 , 2017 , and 2016 . During the years ended December 31, 2018 , 2017 , and 2016 , the average recorded investment of conventional impaired loans without an allowance was $58 million , $66 million , and $70 million . TERM SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL Term securities purchased under agreements to resell are considered collateralized financing agreements and represent short-term investments. The terms of these investments are structured such that if the market value of the underlying securities decreases below the market value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. Otherwise, the dollar value of the resale agreement will decrease accordingly. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement will be charged to earnings to establish an allowance for credit losses. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for its term securities purchased under agreements to resell at December 31, 2018 and 2017 . OFF-BALANCE SHEET CREDIT EXPOSURES At December 31, 2018 and 2017 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities NATURE OF BUSINESS ACTIVITY The Bank is exposed to interest rate risk primarily from the effect of interest rate changes on its interest-earning assets and its related funding sources. The goal of the Bank’s interest rate risk management strategy is not to eliminate interest rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. The Bank enters into derivative contracts to manage the interest rate risk exposures inherent in its otherwise unhedged assets and funding positions. Finance Agency regulations and the Bank’s Enterprise Risk Management Policy (ERMP) establish guidelines for derivatives, prohibit trading in or the speculative use of derivatives, and limit credit risk arising from derivatives. Derivative financial instruments are used by the Bank to achieve its financial and risk management objectives. The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or may adopt new strategies. The most common ways in which the Bank uses derivatives are to: • reduce the interest rate sensitivity and repricing gaps of assets and liabilities; • preserve an interest rate spread between the yield of an asset and the cost of the related liability. Without the use of derivatives, this interest rate spread could be reduced or eliminated when a change in the interest rate on the asset does not match a change in the interest rate on the liability; • mitigate the adverse earnings effects of the shortening or extension of certain assets and liabilities; • manage embedded options in assets and liabilities; and • reduce funding costs by combining a derivative with a consolidated obligation, as the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation. TYPES OF DERIVATIVES The Bank may use the following derivative instruments: • Interest Rate Swaps. An interest rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged 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 amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional amount at a variable interest rate index for the same period of time. The variable interest rate received or paid by the Bank in most derivative transactions is the LIBOR. • Options. An option is an agreement between two entities that conveys the right, but not the obligation, to engage in a future transaction on some underlying security or other financial asset at an agreed upon price during a certain period of time or on a specific date. Premiums or swap fees paid to acquire options are considered the fair value of the option at inception of the hedge and are reported as derivative assets in the Statements of Condition. • Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes. The Bank may enter into both payer and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date and a receiver swaption is the option to receive fixed interest payments at a later date. • Interest Rate Caps and Floors. In an interest rate cap agreement, a cash flow is generated if the price or interest rate of an underlying variable rises above a certain threshold (or “cap”) price. In an interest rate floor agreement, a cash flow is generated if the price or interest rate of an underlying variable falls below a certain threshold (or “floor”) price. Interest rate caps and floors are designed as protection against the interest rate on a variable rate asset or liability rising above or falling below a certain level. • Futures/Forwards Contracts. Futures and forwards contracts gives the buyer the right to buy or sell a specific type of asset at a specific time at a given price. For example, certain mortgage purchase commitments entered into by the Bank are considered derivatives. The Bank may hedge these commitments by selling “to-be-announced” (TBA) MBS for forward settlement. A TBA represents a forward contract for the sale of MBS at a future agreed upon date for an established price. TYPES OF HEDGED ITEMS The Bank may have the following types of hedged items: • Investment Securities. The Bank primarily invests in U.S. obligations, GSE and Tennessee Valley Authority obligations, state or local housing agency obligations, and MBS, and classifies them as either trading, AFS, or HTM. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. The Bank may fund investment securities with callable consolidated obligations or utilize interest rate swaps, caps, floors, or swaptions to manage interest rate risk. The Bank manages the risk arising from changing market prices of trading securities by entering into economic derivatives that generally offset the changes in fair value of the securities. • Advances. The Bank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics, and optionality. The Bank may use derivatives to adjust the repricing and/or option characteristics of advances in order to more closely match the characteristics of its funding liabilities. In general, whenever a borrower executes a fixed rate advance or a variable rate advance with embedded options, the Bank may simultaneously execute a derivative with terms that offset the terms and embedded options, if any, in the advance. For example, the Bank may hedge a fixed rate advance with an interest rate swap where the Bank pays a fixed rate coupon and receives a variable rate coupon, effectively converting the fixed rate advance to a variable rate advance. This type of hedge is typically treated as a fair value hedge. In addition, the Bank may hedge a callable advance, which gives the borrower the option to extinguish the fixed rate advance, by entering into a cancelable interest rate swap. • Mortgage Loans. The Bank invests 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 actual and estimated prepayment speeds. The Bank manages the interest rate risk associated with mortgage loans through a combination of debt issuance and derivatives. The Bank may issue both callable and noncallable debt and prepayment-linked consolidated obligations to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may also purchase interest rate caps, floors, or swaptions to minimize the interest rate risk embedded in mortgage assets. Although these derivatives are valid economic hedges, they are not specifically linked to individual mortgage assets and, therefore, do not receive fair value hedge accounting. • Consolidated Obligations. The Bank may enter into derivatives to hedge the interest rate risk associated with its consolidated obligations. For example, the Bank may issue and hedge a fixed rate consolidated obligation with an interest rate swap where the Bank receives a fixed rate coupon and pays a variable rate coupon, effectively converting the fixed rate consolidated obligation to a variable rate consolidated obligation. This type of hedge is typically treated as a fair value hedge. The Bank may also issue variable interest rate consolidated obligations indexed to LIBOR, or other specified index and simultaneously execute interest rate swaps to hedge the basis risk of the variable interest rate debt. Interest rate swaps used to hedge the basis risk of variable interest rate debt do not qualify for hedge accounting. As a result, this type of hedge is treated as an economic hedge. This strategy of issuing consolidated obligations while simultaneously entering into derivatives enables the Bank to offer a wider range of attractively priced advances to its borrowers and may allow the Bank to reduce its funding costs. • Firm Commitments . Certain mortgage loan purchase commitments are considered derivatives. The Bank normally hedges these commitments by selling TBA MBS for forward settlement. A TBA represents a forward contract for the sale of MBS at a future agreed upon date for an established price. The mortgage loan purchase commitment and the TBA used in the firm commitment hedging strategy are considered economic hedges. When the mortgage loan purchase commitment derivative settles, the current market value of the commitment is included with the basis of the mortgage loan and amortized over the contractual life of the mortgage loan using the level-yield method. The Bank may also hedge a firm commitment for a forward-starting advance through the use of an interest-rate swap (fair value hedge). In this case, the interest rate swap will function as the hedging instrument for both the firm commitment and the subsequent advance and is treated as a fair value hedge. For additional information on the Bank’s derivative and hedging accounting policy, see “Note 1 — Summary of Significant Account Policies.” FINANCIAL STATEMENT EFFECT AND ADDITIONAL FINANCIAL INFORMATION The notional amount of derivatives serves as a factor in determining periodic interest payments and 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 and market risk. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. The following table summarizes the Bank’s notional amount and fair value of derivative instruments and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest (dollars in millions): December 31, 2018 December 31, 2017 1 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 47,316 $ 83 $ 115 $ 52,120 $ 77 $ 151 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,321 20 24 1,407 20 37 Forward settlement agreements (TBAs) 98 — — 66 — — Mortgage loan purchase commitments 101 1 — 72 — — Total derivatives not designated as hedging instruments 1,520 21 24 1,545 20 37 Total derivatives before netting and collateral adjustments $ 48,836 104 139 $ 53,665 97 188 Netting adjustments and cash collateral 2 (46 ) (130 ) 3 (182 ) Total derivative assets and derivative liabilities $ 58 $ 9 $ 100 $ 6 1 To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with netting adjustments and cash collateral. 2 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank and related accrued interest was $121 million and $191 million at December 31, 2018 and 2017 . At December 31, 2018 and 2017 , the Bank received cash collateral and related accrued interest from clearing agents and/or counterparties of $37 million and $6 million . The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented in the Statements of Income (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 3 $ 11 $ 13 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 16 10 12 Forward settlement agreements (TBAs) 2 (2 ) 2 Mortgage loan purchase commitments (2 ) 2 (2 ) Net interest settlements (3 ) (12 ) (18 ) Total net gains (losses) related to derivatives not designated as hedging instruments 13 (2 ) (6 ) Price alignment amount 1 3 3 — Net gains (losses) on derivatives and hedging activities $ 19 $ 12 $ 7 1 This amount represents interest on variation margin which is a component of the derivative fair value. The following tables summarize, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships, the net fair value hedge ineffectiveness, and the effect of those derivatives on the Bank’s net interest income (dollars in millions): For the Year Ended December 31, 2018 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 112 $ (111 ) $ 1 $ (22 ) Advances 2 23 (23 ) — 47 Consolidated obligation bonds 68 (66 ) 2 (217 ) Total $ 203 $ (200 ) $ 3 $ (192 ) For the Year Ended December 31, 2017 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 86 $ (72 ) $ 14 $ (93 ) Advances 2 94 (92 ) 2 (70 ) Consolidated obligation bonds (95 ) 90 (5 ) 6 Total $ 85 $ (74 ) $ 11 $ (157 ) For the Year Ended December 31, 2016 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 99 $ (80 ) $ 19 $ (142 ) Advances 2 147 (142 ) 5 (140 ) Consolidated obligation bonds (359 ) 348 (11 ) 76 Total $ (113 ) $ 126 $ 13 $ (206 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships and the amortization of the financing element of off-market derivatives, both of which are included in the interest income or interest expense line item of the respective hedged item type. The amortization for off-market derivatives totaled $1 million, $13 million and $28 million for the years ended December 31, 2018 , 2017 , and 2016 . 2 Includes net gains (losses) on fair value hedge firm commitments of forward starting advances. MANAGING CREDIT RISK ON DERIVATIVES The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative contracts. The Bank manages credit risk through credit analyses, collateral requirements, and adherence to the requirements set forth in the Bank’s policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. The Bank transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty (uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., clearings agent) with a Derivative Clearing Organization (cleared derivatives). Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. The Bank is not a derivative dealer and does not trade derivatives for short-term profit. For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. The Bank requires collateral agreements on its uncleared derivatives. Certain of the Bank’s uncleared derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank’s credit rating. If the Bank’s credit rating is lowered by a Nationally Recognized Statistical Rating Organization, the Bank may be required to deliver additional collateral on uncleared derivative instruments in net liability positions, unless the collateral delivery threshold is set to zero. The aggregate fair value of all uncleared derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) at December 31, 2018 was $1 million , for which the Bank was not required to post collateral in the normal course of business. If the Bank’s credit rating had been lowered from its current rating to the next lower rating, the Bank would not have been required to deliver additional collateral to its uncleared derivatives counterparties at December 31, 2018 . For cleared derivatives, the Clearinghouse is the Bank’s counterparty. The Bank utilizes one Clearinghouse, CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin requirements, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. Generally credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including, but not limited to, credit rating downgrades. The Bank was not required to post additional initial margin by its clearing agent, based on credit considerations, at December 31, 2018 . Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, rather than cash collateral. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral/payments for changes in the fair value of cleared derivatives is posted daily through a clearing agent. OFFSETTING OF DERIVATIVE ASSETS AND DERIVATIVE LIABILITIES The Bank presents derivative instruments, related cash collateral received or pledged, and associated accrued interest on a net basis by clearing agent and/or by counterparty when it has met the netting requirements. Additional information regarding these agreements is provided in “Note 1 — Summary of Significant Accounting Policies.” The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and has determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default, including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or the clearing agent, or both. 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 Clearinghouse. The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2018 Derivative Instruments Meeting Netting Requirements 2 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 96 $ (96 ) $ — Cleared derivatives 7 50 57 Total $ 103 $ (46 ) $ 57 Derivative Liabilities Uncleared derivatives $ 119 $ (110 ) $ 9 Cleared derivatives 20 (20 ) — Total $ 139 $ (130 ) $ 9 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 Mortgage loan purchase commitments in a derivative asset position, not subject to enforceable netting requirements, were $1 million at December 31, 2018. The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements, including the related collateral received from or pledged to counterparties and variation margin for daily settled contracts (dollars in millions): December 31, 2017 Derivative Instruments Meeting Netting Requirements 3 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 88 $ (87 ) $ 1 Cleared derivatives 9 90 99 Total $ 97 $ 3 $ 100 Derivative Liabilities Uncleared derivatives $ 170 $ (164 ) $ 6 Cleared derivatives 18 (18 ) — Total $ 188 $ (182 ) $ 6 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with gross amount of netting adjustments and cash collateral. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Deposits The Bank offers demand and overnight deposits as well as short-term interest bearing deposits to members and to qualifying non-members. Deposits classified as demand and overnight pay interest based on a daily interest rate. Short-term interest bearing deposits pay interest based on a fixed rate determined at the issuance of the deposit. Average interest rates paid on interest-bearing deposits were 1.48 percent , 0.59 percent , and 0.08 percent for the years ended December 31, 2018 , 2017 , and 2016 . The following table details the Bank’s interest bearing and non-interest bearing deposits (dollars in millions): December 31, 2018 2017 Interest-bearing Demand and overnight $ 823 $ 745 Term 153 268 Non-interest-bearing Demand 94 94 Total $ 1,070 $ 1,107 |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations [Text Block] | Consolidated Obligations Consolidated obligations consist of bonds and discount notes. The FHLBanks issue consolidated obligations through the Office of Finance as their agent. Bonds are issued primarily to raise intermediate- and long-term funds for the Bank and are not subject to any statutory or regulatory limits on their maturity. Discount notes are issued primarily to raise short-term funds for the Bank and have original maturities of up to one year. Discount notes sell at or below their face amount and are redeemed at par value when they mature. Although the Bank is primarily liable for the portion of consolidated obligations issued on its behalf, it is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all FHLBank System consolidated obligations. The Finance Agency, at its discretion, may require any FHLBank to make principal and/or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that consolidated obligation. The Finance Agency has never exercised this discretionary authority. At December 31, 2018 and 2017 , the total par value of outstanding consolidated obligations of the FHLBanks was $1,031.6 billion and $1,034.2 billion . DISCOUNT NOTES The following table summarizes the Bank’s discount notes (dollars in millions): December 31, 2018 December 31, 2017 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 43,052 2.34 % $ 36,740 1.20 % Discounts and concessions 1 (173 ) (58 ) Total $ 42,879 $ 36,682 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes. BONDS The following table summarizes the Bank’s bonds outstanding by contractual maturity (dollars in millions): December 31, 2018 December 31, 2017 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 53,247 2.08 % $ 50,077 1.32 % Due after one year through two years 22,326 2.50 32,249 1.43 Due after two years through three years 9,478 1.97 3,177 2.84 Due after three years through four years 1,881 2.53 7,422 1.69 Due after four years through five years 2,224 2.58 1,507 2.42 Thereafter 4,868 3.51 4,752 3.10 Total par value 94,024 2.26 % 99,184 1.54 % Premiums 152 193 Discounts and concessions 1 (48 ) (60 ) Fair value hedging adjustments (356 ) (424 ) Total $ 93,772 $ 98,893 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation bonds. The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): December 31, 2018 2017 Non-callable or non-putable $ 89,549 $ 97,196 Callable 4,475 1,988 Total par value $ 94,024 $ 99,184 The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): December 31, Year of Contractual Maturity or Next Call Date 2018 2017 Due in one year or less $ 55,672 $ 53,196 Due after one year through two years 22,696 31,059 Due after two years through three years 9,333 3,192 Due after three years through four years 1,656 7,032 Due after four years through five years 1,864 1,282 Thereafter 2,803 3,423 Total par value $ 94,024 $ 99,184 Bonds are issued with fixed or variable rate payment terms that use a variety of indices for interest rate resets such as LIBOR or other specified index. To meet the specific needs of certain investors, both fixed and variable rate bonds may also contain certain embedded features, which result in complex coupon payment terms and call features. When bonds are issued on the Bank’s behalf, it may concurrently enter into a derivative agreement to effectively convert the fixed rate payment stream to variable or to offset the embedded features in the bond. Beyond having fixed or variable rate payment terms, bonds may also have the following broad terms regarding either principal repayment or interest payments: • Indexed Principal Redemption Bonds (Index Amortizing Notes) . These notes repay principal according to amortization schedules that are linked to the level of a certain index and have fixed rate coupon payment terms. Usually, as market interest rates rise (fall), the average life of the index amortizing notes extends (contracts); and • Optional Principal Redemption Bonds ( Callable Bonds ). These bonds may be redeemed by the Bank in whole or in part at its discretion on predetermined call dates according to the terms of the bond offerings. With respect to interest payments, bonds may also have the following terms: • Step-Up Bonds . These bonds pay interest at increasing fixed rates for specified intervals over the life of the bond. These bonds generally contain provisions enabling the Bank to call the bonds at its option on the step-up dates. • Step-Down Bonds |
Affordable Housing Program
Affordable Housing Program | 12 Months Ended |
Dec. 31, 2018 | |
Affordable Housing Program [Abstract] | |
Affordable Housing Program [Text Block] | Affordable Housing Program The FHLBank Act requires each FHLBank to establish and fund an AHP, which provides subsidies in the form of direct grants and below-market interest rate advances to members who use the funds to assist in the purchase, construction, or rehabilitation of housing for very low to moderate income households. Each FHLBank is required to contribute to its AHP the greater of 10 percent of its annual income subject to assessment, or its prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million for each year . For purposes of the AHP assessment, income subject to assessment is defined as net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The exclusion of interest expense related to mandatorily redeemable capital stock is a regulatory interpretation of the Finance Agency. The Bank accrues the AHP assessment monthly based on its income subject to assessment and reduces the AHP liability as program funds are distributed. If the Bank experienced a net loss during a quarter, but still had income subject to assessment for the year, the Bank’s obligation to the AHP would be calculated based on its year-to-date income subject to assessment. If the Bank had income subject to assessment 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, it would have no obligation to the AHP for the year, because its required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate 10 percent AHP calculation previously discussed was less than $100 million for the FHLBanks, each FHLBank would be required to contribute a prorated sum to ensure that the aggregate contribution by the FHLBanks equals $100 million . The pro-ration would be made on the basis of an FHLBank’s income in relation to the income of all FHLBanks for the year, subject to the annual income limitation previously discussed. In addition to the required AHP assessment, the Bank’s Board of Directors may elect to make voluntary contributions to the AHP. There was no shortfall, as described above, in 2018 , 2017 , or 2016 . If an FHLBank finds that its required contributions are contributing to its financial instability, it may apply to the Finance Agency for a temporary suspension of its contributions. The Bank did not make any such application in 2018 , 2017 , or 2016 . The following table presents a rollforward of the Bank’s AHP liability (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Balance, beginning of year $ 142 $ 116 $ 62 Assessments 53 60 75 Disbursements, net 1 (42 ) (34 ) (21 ) Balance, end of year $ 153 $ 142 $ 116 1 Includes $2 million |
Capital
Capital | 12 Months Ended |
Dec. 31, 2018 | |
Capital [Abstract] | |
Capital [Text Block] | Capital CAPITAL STOCK The Bank’s capital stock has a par value of $100 per share, and all shares are issued, redeemed, and repurchased only at the stated par value. The Bank generally issues a single class of capital stock (Class B capital stock) and has two subclasses of Class B capital stock: membership and activity-based. Each member must purchase and hold membership capital stock in an amount equal to 0.12 percent of its total assets as of the preceding December 31st, subject to a cap of $10 million and a floor of $10,000 . Each member is also required to purchase activity-based capital stock equal to 4.00 percent of its advances and mortgage loans outstanding in the Bank’s Statements of Condition. All capital stock issued is subject to a notice of redemption period of five years . The capital stock requirements established in the Bank’s Capital Plan are designed so that the Bank can remain adequately capitalized as member activity changes. The Bank’s Board of Directors may make adjustments to the capital stock requirements within ranges established in the Capital Plan. EXCESS STOCK Capital stock owned by members in excess of their investment requirement is deemed excess capital stock. Under its Capital Plan, the Bank, at its discretion and upon 15 days’ written notice, may repurchase excess membership capital stock. The Bank, at its discretion, may also repurchase excess activity-based capital stock to the extent that (i) the excess capital stock balance exceeds an operational threshold set forth in the Capital Plan, which is currently set at zero, or (ii) a member submits a notice to redeem all or a portion of the excess activity-based capital stock. At December 31, 2018 and 2017 , the Bank’s excess capital stock outstanding was less than $1 million. MANDATORILY REDEEMABLE CAPITAL STOCK The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of intention to withdraw from membership, becomes ineligible for continuing membership, or attains non-member status by merger or consolidation, charter termination, or other involuntary termination from membership. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. At December 31, 2018 and 2017 , the Bank’s mandatorily redeemable capital stock totaled $255 million and $385 million . If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to equity. After the reclassification, dividends on the capital stock will no longer be classified as interest expense. The Bank recorded interest expense on mandatorily redeemable capital stock of $18 million , $17 million , and $21 million for the years ended December 31, 2018 , 2017 , and 2016 . As a result of the final rule on membership issued by the Finance Agency effective February 19, 2016, the eligibility requirements for FHLBank members were changed rendering captive insurance companies ineligible for FHLBank membership. On the effective date of the final rule, the Bank reclassified the total outstanding capital stock held by all of the captive insurance companies that were Bank members, to mandatorily redeemable capital stock. In accordance with the final rule, on February 17, 2017, the Bank terminated the membership of all captive insurance company members that were admitted as members after September 12, 2014, (the date the Finance Agency proposed this rule) and repurchased outstanding capital stock held by captive insurance company members in the amount of $148 million . Captive insurance company members that were admitted as members prior to September 12, 2014, will also have their memberships terminated no later than February 19, 2021. The following table summarizes changes in mandatorily redeemable capital stock (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Balance, beginning of period $ 385 $ 664 $ 103 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 53 44 742 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (183 ) (323 ) (181 ) Balance, end of period $ 255 $ 385 $ 664 The following table summarizes the Bank’s mandatorily redeemable capital stock by year of contractual redemption (dollars in millions): December 31, Year of Contractual Redemption 1 2018 2017 Due in one year or less $ 2 $ 4 Due after one year through two years — 2 Due after two years through three years 1 — Due after three years through four years 10 1 Due after four years through five years 18 22 Thereafter 2 210 341 Past contractual redemption date due to outstanding activity with the Bank 14 15 Total $ 255 $ 385 1 At the Bank’s election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. 2 Represents mandatorily redeemable capital stock resulting from the Finance Agency rule previously discussed that makes captive insurance companies ineligible for FHLBank membership. The related mandatorily redeemable capital stock is not required to be redeemed until five years after the member’s termination. RESTRICTED RETAINED EARNINGS The Bank entered into a JCE Agreement with all of the other FHLBanks in 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the Bank over time. Under the JCE Agreement, each FHLBank is required to allocate 20 percent of its quarterly net income to a separate restricted retained earnings account until the balance of that account equals at least one percent of its average balance of outstanding consolidated obligations for the previous quarter. The restricted retained earnings are not available to pay dividends. At December 31, 2018 and 2017 , the Bank’s restricted retained earnings account totaled $427 million and $335 million . ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Notes 5) Pension and postretirement benefits (Note 16) Total AOCI Balance, December 31, 2015 $ (82 ) $ (2 ) $ (84 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 68 — 68 Reclassification from AOCI to net income Amortization - pension and postretirement — (2 ) (2 ) Net current period other comprehensive income (loss) 68 (2 ) 66 Balance, December 31, 2016 (14 ) (4 ) (18 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 132 — 132 Net current period other comprehensive income (loss) 132 — 132 Balance, December 31, 2017 118 (4 ) 114 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (31 ) — (31 ) Reclassification from AOCI to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) (31 ) 1 (30 ) Balance, December 31, 2018 $ 87 $ (3 ) $ 84 REGULATORY CAPITAL REQUIREMENTS The Bank is subject to three regulatory capital requirements: • Risk-based capital . The Bank must maintain at all times permanent capital greater than or equal to the sum of its credit, market, and operations risk capital requirements, all calculated in accordance with Finance Agency regulations. Only permanent capital, defined as Class B capital stock (including mandatorily redeemable capital stock), and retained earnings can satisfy this risk-based capital requirement. • Regulatory capital . The Bank is required to maintain a minimum four percent capital-to-asset ratio, which is defined as total regulatory capital divided by total assets. Total regulatory capital includes Class B stock (including mandatorily redeemable capital stock), and retained earnings. It does not include AOCI. • Leverage capital . The Bank is required to maintain a minimum five percent leverage ratio, which is defined as the sum of permanent capital weighted 1.5 times and nonpermanent capital weighted 1.0 times, divided by total assets. At December 31, 2018 and 2017 the Bank did not hold any nonpermanent capital. If the Bank’s capital falls below the required levels, the Finance Agency has authority to take actions necessary to return it to levels that it deems to be consistent with safe and sound business operations. The following table shows the Bank’s compliance with the Finance Agency’s regulatory capital requirements (dollars in millions) as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 1,146 $ 7,719 $ 1,041 $ 7,292 Regulatory capital $ 5,861 $ 7,719 $ 5,804 $ 7,292 Leverage capital $ 7,326 $ 11,579 $ 7,255 $ 10,937 Capital-to-assets ratio 4.00 % 5.27 % 4.00 % 5.03 % Leverage ratio 5.00 % 7.90 % 5.00 % 7.54 % CAPITAL CLASSIFICATION DETERMINATION The Bank is subject to the Finance Agency’s regulation on FHLBank capital classification and critical capital levels (the Capital Rule). The Capital Rule, among other things, establishes criteria for four capital classifications (adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) and corrective action requirements for FHLBanks that are classified in any classification other than adequately capitalized. An adequately capitalized FHLBank is one that has sufficient permanent and total capital to satisfy its risk-based and minimum capital requirements. The Bank satisfied these requirements at December 31, 2018 |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Postretirement Benefit Plans QUALIFIED DEFINED BENEFIT MULTIEMPLOYER PLAN The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a tax-qualified defined benefit pension plan. In August of 2016, the Bank’s Board of Directors elected to freeze the Pentegra DB Plan effective January 1, 2017. After the freeze, participants no longer accrue new benefits under the Pentegra DB Plan. The Pentegra DB Plan is treated as a multiemployer plan for accounting purposes, but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra DB Plan. Under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Bank has two defined benefit pension plans under the same multiemployer plan. Prior to the plan freeze, employees of the Des Moines Bank were eligible to participate in the Des Moines Pentegra Defined Benefit Pension Plan (Des Moines Bank DB Plan) if hired on or before December 31, 2010. Employees previously employed by the Seattle Bank were eligible to participate in the Seattle Pentegra Defined Benefit Pension Plan (Seattle Bank DB Plan) if they were hired before January 1, 2005. The Pentegra DB Plan operates on a fiscal year from July 1 through June 30. The Pentegra DB Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888 and the three-digit plan number is 333 . There are no collective bargaining agreements in place that require contributions to the plan. The Pentegra DB Plan’s annual valuation process includes calculating the plan’s funded status and separately calculating the funded status of each participating employer. The funded status is defined as the market value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra DB Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the market value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30. The most recent Form 5500 available for the Pentegra DB Plan is for the year ended June 30, 2017. The Bank’s contributions for the plan years ended June 30, 2017 and June 30, 2016 were not more than five percent of the total contributions to the Pentegra DB Plan. The following table summarizes the net pension cost and funded status of the Pentegra DB Plan (dollars in millions): 2018 2017 2016 Net pension cost 1 $ 1 $ — $ 4 Pentegra DB Plan’s funded status as of July 1 109.86 % 111.30 % 104.12 % Des Moines Bank DB Plan’s funded status as of July 1 107.53 % 106.65 % 106.67 % Seattle Bank DB Plan’s funded status as of July 1 106.00 % 109.81 % 108.16 % 1 Represents the net pension cost charged to compensation and benefits expense in the Statements of Income for the years ended December 31, 2018 , 2017 , and 2016 . The Pentegra DB Plan’s funded status as of July 1, 2018 is preliminary and may further increase because plan participants are permitted to make contributions for the plan year ended June 30, 2018 through March 31, 2019. Contributions made on or before March 15, 2019, and designated for the plan year ended June 30, 2018, will be included in the final valuation as of July 1, 2018. The final funded status as of July 1, 2018 will not be available until the Form 5500 for the plan year July 1, 2018 through June 30, 2019 is filed (this Form 5500 is due to be filed no later than April 2020). The Pentegra DB Plan’s funded status as of July 1, 2017 includes all contributions made by plan participants through March 15, 2018. The final funded status as of July 1, 2017 will not be available until the Form 5500 for the plan year July 1, 2017 through June 30, 2018 is filed (this Form 5500 is due to be filed no later than April 2019). OTHER POSTRETIREMENT BENEFIT PLANS |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value [Text Block] | Fair Value Fair value amounts are determined by the Bank using available market information and reflect the Bank’s best judgment of appropriate valuation methods. 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., exit price). The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant unobservable inputs when measuring fair value. 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 prioritizes the inputs used to measure fair value into three broad levels: • Level 1 Inputs. Quoted prices (unadjusted) for identical assets or liabilities in an active market that the Bank can access on the measurement date. • Level 2 Inputs. 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: (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, (iii) 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 (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. The Bank reviews its 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. These reclassifications would be reported as transfers in/out as of the beginning of the quarter in which the changes occur. The Bank had no transfers of assets or liabilities between fair value levels during the year s ended December 31, 2018 , 2017 , or 2016 . The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at December 31, 2018 (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, and certain other assets at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. The fair values do 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 assets and liabilities. Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Total Assets Cash and due from banks $ 119 $ 119 $ — $ — $ — $ 119 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 4,700 — 4,700 — — 4,700 Federal funds sold 4,150 — 4,150 — — 4,150 Trading securities 915 — 915 — — 915 Available-for-sale securities 19,019 — 19,019 — — 19,019 Held-to-maturity securities 2,992 — 3,011 10 — 3,021 Advances 106,323 — 106,317 — — 106,317 Mortgage loans held for portfolio, net 7,835 — 7,749 57 — 7,806 Accrued interest receivable 290 — 290 — — 290 Derivative assets, net 58 — 104 — (46 ) 58 Other assets 27 27 — — — 27 Liabilities Deposits (1,070 ) — (1,070 ) — — (1,070 ) Borrowings from other FHLBanks (500 ) — (500 ) — — (500 ) Consolidated obligations Discount notes (42,879 ) — (42,870 ) — — (42,870 ) Bonds (93,772 ) — (93,828 ) — — (93,828 ) Total consolidated obligations (136,651 ) — (136,698 ) — — (136,698 ) Mandatorily redeemable capital stock (255 ) (255 ) — — — (255 ) Accrued interest payable (268 ) — (268 ) — — (268 ) Derivative liabilities, net (9 ) — (139 ) — 130 (9 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at December 31, 2017 (dollars in millions): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 503 $ 503 $ — $ — $ — $ 503 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 4,600 — 4,600 — — 4,600 Federal funds sold 4,250 — 4,250 — — 4,250 Trading securities 1,177 — 1,177 — — 1,177 Available-for-sale securities 20,796 — 20,796 — — 20,796 Held-to-maturity securities 3,628 — 3,674 12 — 3,686 Advances 102,613 — 102,708 — — 102,708 Mortgage loans held for portfolio, net 7,096 — 7,124 64 — 7,188 Accrued interest receivable 223 — 223 — — 223 Derivative assets, net 100 — 97 — 3 100 Other assets 28 28 — — — 28 Liabilities Deposits (1,107 ) — (1,107 ) — — (1,107 ) Borrowing from other FHLBanks (600 ) — (600 ) — — (600 ) Consolidated obligations Discount notes (36,682 ) — (36,674 ) — — (36,674 ) Bonds (98,893 ) — (99,150 ) — — (99,150 ) Total consolidated obligations (135,575 ) — (135,824 ) — — (135,824 ) Mandatorily redeemable capital stock (385 ) (385 ) — — — (385 ) Accrued interest payable (210 ) — (210 ) — — (210 ) Derivative liabilities, net (6 ) — (188 ) — 182 (6 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with netting adjustments and cash collateral. SUMMARY OF VALUATION TECHNIQUES AND PRIMARY INPUTS The valuation techniques 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 non-recurring basis in the Statements of Condition are outlined below. Trading and AFS Investment Securities. The Bank’s valuation technique incorporates prices from multiple designated third-party pricing vendors, when available. The pricing vendors generally use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to, benchmark securities and yields, reported trades, dealer estimates, issuer spreads, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information, as applicable, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established process in place to challenge investment valuations, which facilitates resolution of questionable prices identified by the Bank. Annually, the Bank conducts reviews its pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies, and control procedures for investment securities. The Bank’s valuation technique for estimating the fair values of its investment securities first requires the establishment of a median price for each security. All prices that are within a specified tolerance threshold of the median price are included in the cluster of prices that are averaged to compute a default price. All 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, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of 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 final price rather than the default price. Alternatively, if the analysis confirms that an outlier (or outliers) is (are) in fact not representative of fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security. In limited instances, when no prices are available from the designated pricing services, the Bank obtains prices from dealers. As of December 31, 2018 and 2017 , multiple prices were received for the majority of the Bank’s trading and AFS investment securities. Based on the Bank’s review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices, the Bank believes its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further, that the fair value measurements are classified appropriately in the fair value hierarchy. Impaired Mortgage Loans Held for Portfolio. The fair value of impaired mortgage loans held for portfolio is estimated by obtaining property values from an external pricing vendor. This vendor utilizes multiple pricing models that generally factor in market observable inputs, including actual sales transactions and home price indices. The Bank applies an adjustment to these values to capture certain limitations in the estimation process and takes into consideration estimated selling costs and expected PMI proceeds. In limited instances, the Bank may estimate the fair value of an impaired mortgage loan by calculating the present value of expected future cash flows discounted at the loan’s effective interest rate. Derivative Assets and Liabilities. The fair value of derivatives is generally estimated using standard valuation techniques such as discounted cash flow analyses and comparisons to similar instruments, and includes variation margin payments for daily settled contracts. In limited instances, fair value estimates for interest-rate related derivatives may be obtained using an external pricing model that utilizes observable market data. The Bank is subject to credit risk in derivatives transactions due to the potential nonperformance of its derivatives counterparties. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral/payments is posted daily, through a clearing agent, for changes in the fair value of cleared derivatives. To mitigate credit risk on uncleared derivatives, the Bank enters into master netting agreements with its counterparties as well as collateral agreements that have collateral delivery thresholds. The Bank has evaluated the potential for the fair value of its derivatives to be affected by counterparty credit risk and its own credit risk and has determined that no adjustments were significant to the overall fair value measurements. The fair values of the Bank’s derivative assets and derivative 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 due to their short-term nature. The fair values of derivatives are netted by clearing agent and/or counterparty if the netting requirements are met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. The Bank’s discounted cash flow model utilizes market-observable inputs (inputs that are actively quoted and can be validated to external sources). The Bank uses the following inputs for measuring the fair value of interest-related derivatives: • Discount rate assumption . The Bank utilizes the Overnight-Index Swap (OIS) curve. • Forward interest rate assumption . The Bank utilizes the LIBOR swap curve. • Volatility assumption . Market-based expectations of future interest rate volatility implied from current market prices for similar options. For forward settlement agreements (TBAs), the Bank utilizes TBA securities prices that are determined by coupon class and expected term until settlement. For mortgage loan purchase commitments, the Bank utilizes TBA securities prices adjusted for factors such as credit risk and servicing spreads. Other Assets . These represent grantor trust assets, which are carried at estimated fair value based on quoted market prices as of the last business day of the reporting period. Subjectivity of Estimates . Estimates of the fair value of financial assets and liabilities using the methods previously described are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates. FAIR VALUE ON A RECURRING BASIS The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value in the Statements of Condition a t December 31, 2018 (dollar s in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. obligations $ — $ 159 $ — $ — $ 159 GSE and Tennessee Valley Authority obligations — 57 — — 57 Other non-MBS — 266 — — 266 GSE multifamily MBS — 433 — — 433 Total trading securities — 915 — — 915 Available-for-sale securities U.S. obligations — 2,602 — — 2,602 GSE and Tennessee Valley Authority obligations — 1,038 — — 1,038 State or local housing agency obligations — 814 — — 814 Other non-MBS — 275 — — 275 U.S. obligations single-family MBS — 4,483 — — 4,483 GSE single-family MBS — 796 — — 796 GSE multifamily MBS — 9,011 — — 9,011 Total available-for-sale securities — 19,019 — — 19,019 Derivative assets, net Interest-rate related — 104 — (46 ) 58 Other assets 27 — — — 27 Total recurring assets at fair value $ 27 $ 20,038 $ — $ (46 ) $ 20,019 Liabilities Derivative liabilities, net Interest-rate related — (139 ) — 130 (9 ) Total recurring liabilities at fair value $ — $ (139 ) $ — $ 130 $ (9 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value in the Statements of Condition at December 31, 2017 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. obligations $ — $ 197 $ — $ — $ 197 GSE and Tennessee Valley Authority obligations — 260 — — 260 Other non-MBS — 272 — — 272 GSE multifamily MBS — 448 — — 448 Total trading securities — 1,177 — — 1,177 Available-for-sale securities U.S. obligations — 3,099 — — 3,099 GSE and Tennessee Valley Authority obligations — 1,236 — — 1,236 State or local housing agency obligations — 934 — — 934 Other non-MBS — 278 — — 278 U.S. obligations single-family MBS — 3,726 — — 3,726 GSE single-family MBS — 988 — — 988 GSE multifamily MBS — 10,535 — — 10,535 Total available-for-sale securities — 20,796 — — 20,796 Derivative assets, net Interest-rate related — 97 — 3 100 Other assets 28 — — — 28 Total recurring assets at fair value $ 28 $ 22,070 $ — $ 3 $ 22,101 Liabilities Derivative liabilities, net Interest-rate related — (188 ) — 182 (6 ) Total recurring liabilities at fair value $ — $ (188 ) $ — $ 182 $ (6 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with netting adjustments and cash collateral. FAIR VALUE ON A NON-RECURRING BASIS The Bank measures certain impaired mortgage loans held for portfolio at level 3 fair value on a non-recurring basis. These assets are subject to fair value adjustments in certain circumstances. At December 31, 2018 and 2017 , impaired mortgage loans held for portfolio recorded at fair value as a result of a non-recurring change in fair value were $1 million and $7 million . These fair values were as of the date the fair value adjustment was recorded during the years ended December 31, 2018 and 2017 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Joint and Several Liability . The FHLBanks have joint and several liability for all consolidated obligations issued. Accordingly, if an FHLBank were unable to repay any consolidated obligation for which it is the primary obligor, each of the other FHLBanks could be called upon by the Finance Agency to repay all or part of such obligations. No FHLBank has ever been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank. A t December 31, 2018 and 2017 , the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which the Bank is jointly and severally liable was approximately $894.5 billion and $898.3 billion . The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): December 31, 2018 December 31, 2017 Expire within one year Expire after one year Total Total Standby letters of credit 1 $ 8,924 $ 170 $ 9,094 $ 8,594 Standby bond purchase agreements 229 446 675 755 Commitments to purchase mortgage loans 101 — 101 72 Commitments to issue bonds 60 — 60 — Commitments to fund advances 40 10 50 1,138 1 Excludes commitments to issue standby letters of credit of $3 million and $7 million at December 31, 2018 and 2017 . Standby Letters of Credit . The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances. Standby letters of credit may be offered to assist members in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed with members for a fee. If the Bank is required to make payment for a beneficiary’s draw, the member either reimburses the Bank for the amount drawn or, subject to the Bank’s discretion, the amount drawn may be converted into a collateralized advance to the member. The original terms of standby letters of credit range from less than one month to 13 years, currently no later than 2025 . The carrying value of guarantees related to standby letters of credit are recorded in “Other liabilities” in the Statements of Condition and amounted to $2 million and $3 million at December 31, 2018 and 2017 . The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of its borrowers. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit. Based on management’s credit analyses and collateral requirements, the Bank does not deem it necessary to have any provision for credit losses on these standby letters of credit. All standby letters of credit are subject to the same collateralization and borrowing limits that apply to advances and are fully collateralized at the time of issuance. Standby Bond Purchase Agreements . The Bank has entered into standby bond purchase agreements with state housing associates within its district whereby, for a fee, it agrees to serve as a standby liquidity provider if required, to purchase and hold the housing associate’s bonds until the designated marketing agent can find a suitable investor or the housing associate repurchases the bonds according to a schedule established by the agreement. Each standby bond purchase agreement includes the provisions under which the Bank would be required to purchase the bonds. At December 31, 2018 , the Bank had standby bond purchase agreements with seven housing associates. The standby bond purchase commitments entered into by the Bank have original expiration periods of up to seven years , currently no later than 2024 . During the year s ended December 31, 2018 , 2017 , and 2016 , the Bank was not required to purchase any bonds under these agreements. Commitments to Purchase Mortgage Loans . The Bank enters into commitments that unconditionally obligate it to purchase mortgage loans from its members. Commitments are generally for periods not to exceed 45 days. These commitments are considered derivatives and their estimated fair value at December 31, 2018 and 2017 is reported in “Note 11 — Derivatives and Hedging Activities” as mortgage loan purchase commitments. Commitments to Issue Bonds. At December 31, 2018 , the Bank had commitments to issue $60 million of consolidated obligation bonds. At December 31, 2017 , the Banks had no commitments to issue consolidated obligation bonds. Commitments to Fund Advances. The Bank enters into commitments that legally bind it to fund additional advances up to 24 months in the future. At December 31, 2018 and 2017 , the Bank had commitments to fund advances of $50 million and $1.1 billion . Lease Commitments . The Bank charged to operating expenses net rental costs of $2 million for the years ended December 31, 2018 , 2017 , and 2016 . Total future minimum lease payments for premises and equipment were $4 million at December 31, 2018 . Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from the increases in property taxes and maintenance expenses. These increases are not expected to have a material effect on the Bank. Other Commitments . For each MPF master commitment, the Bank’s potential loss exposure prior to the PFI’s credit enhancement obligation is estimated and tracked in a memorandum account called the FLA. For absorbing certain losses in excess of the FLA, PFIs are paid a credit enhancement fee, a portion of which may be performance-based. To the extent the Bank experiences losses under the FLA, it may be able to recapture performance-based credit enhancement fees paid to the PFI to offset these losses. The FLA balance for all MPF master commitments with a PFI credit enhancement obligation was $115 million and $104 million at December 31, 2018 and 2017 . Legal Proceedings . As a result of the Merger with the Seattle Bank in 2015, the Bank has been involved in a number of legal proceedings initiated by the Seattle Bank against various entities relating to its purchases and subsequent impairment of certain private-label MBS. Of the 11 cases initially filed, one has been dismissed, two have been settled in part and dismissed in part, and eight have been settled. The Bank appealed the one complete dismissal and two partial dismissals covering the claims related to five certificates across three different cases. The appellate court affirmed the dismissal of the claims related to four certificates in December 2017 and affirmed the dismissal of the remaining certificate in May 2018. In January 2018, the Bank filed petitions for discretionary review of the appellate court’s rulings in December related to four of the certificates with the Washington Supreme Court. On May 3, 2018, the Court granted those petitions. The aggregate consideration paid for these four certificates is $567 million. Oral arguments were heard on October 9, 2018 and the Bank is currently awaiting the Court’s decision. In June 2018, the Bank filed a petition for discretionary review of the appellate court’s ruling in May on the fifth certificate. The aggregate consideration paid for that one certificate is $200 million. The Washington Supreme Court has not yet acted on that petition. Other than the private-label MBS litigation, the Bank does not believe any legal proceedings to which it is a party could have a material impact on its financial condition, results of operations, or cash flows. Litigation settlement gains are considered realized and recorded when the Bank receives cash or assets that are readily convertible to known amounts of cash or claims to cash. In addition, litigation settlement gains are considered realizable and recorded when the Bank enters into a signed agreement that is not subject to appeal, where the counterparty has the ability to pay, and the amount to be received can be reasonably estimated. Prior to being realized or realizable, the Bank considers potential litigation settlement gains to be gain contingencies, and therefore they are not recorded in the Statements of Income. The Bank records legal expenses related to litigation settlements as incurred in other expense in the Statements of Income with the exception of certain legal expenses related to litigation settlement awards that are contingent based fees for the attorneys representing the Bank. The Bank incurs and recognizes these contingent based legal fees only when litigation settlement awards are realized, at which time these fees are netted against the gains recognized on the litigation settlement. During the year ended December 31, 2018 , the Bank did not recognize net gains on litigation settlements. During the year ended December 31, 2017 and 2016 , the Bank recognized $21 million and $376 million |
Activities with Stockholders
Activities with Stockholders | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Activities with Stockholders [Text Block] | Activities with Stockholders The Bank is a cooperative. This means the Bank is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain membership capital stock based on a percentage of their total assets, subject to a minimum and maximum amount, as of the preceding December 31 st . Each member is also required to purchase and maintain activity-based capital stock to support certain business activities with the Bank. All transactions with stockholders are entered into in the ordinary course of business. TRANSACTIONS WITH DIRECTOR’S FINANCIAL INSTITUTIONS In the normal course of business, the Bank extends credit to its members whose directors and officers serve as Bank directors (Directors’ Financial Institutions). Finance Agency regulations require that transactions with Directors’ Financial Institutions be made on the same terms and conditions as those with any other member. The following table summarizes the Bank’s outstanding transactions with Directors’ Financial Institutions (dollars in millions): December 31, 2018 December 31, 2017 Amount % of Total Amount % of Total Advances $ 6,991 7 $ 6,036 6 Mortgage loans 96 1 68 1 Deposits 12 1 39 4 Capital stock 328 6 297 5 BUSINESS CONCENTRATIONS The Bank considers itself to have business concentrations with stockholders owning 10 percent or more of its total capital stock outstanding (including mandatorily redeemable capital stock). At December 31, 2018 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans 4 Income 2 Wells Fargo Bank, N.A. $ 1,994 35 $ 49,575 $ 25 $ 1,167 Superior Guaranty Insurance Company 3 18 — — 420 — Total $ 2,012 35 $ 49,575 $ 445 $ 1,167 1 Pursuant to applicable Finance Agency regulations, the Bank’s voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank’s capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2018 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. 4 PFI rights and obligations associated with MPP mortgage loans of $27 million were transferred from Wells Fargo Trust Company, N.A. (formerly Wells Fargo Bank Northwest N.A.) to Wells Fargo Bank, N.A. during the year ended December 31, 2018. At December 31, 2017 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,843 34 $ 45,825 $ — $ 834 Superior Guaranty Insurance Company 3 22 — — 520 — Wells Fargo Bank Northwest N.A. 3 1 — — 30 — Total $ 1,866 34 $ 45,825 $ 550 $ 834 1 Pursuant to applicable Finance Agency regulations, the Bank’s voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank’s capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2017 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. were affiliates of Wells Fargo Bank, N.A. at December 31, 2017. LEASE TRANSACTIONS On January 2, 2007, the Bank executed a 20 year lease with Wells Fargo Financial, an affiliate of our member, Wells Fargo Bank, for approximately 43,000 square feet of office space for the Bank’s headquarters. On June 22, 2017, a storm pipe broke at the Bank’s then headquarters causing significant water damage to the Bank’s office space and rendering it uninhabitable. As a result of the water damage, the estimated time to complete repairs, and the Bank’s plan to relocate its headquarters to a building in downtown Des Moines that it purchased in April of 2017, the Bank terminated its lease with Wells Fargo Financial effective September 30, 2017. The Bank paid net lease termination fees of $0.8 million to Wells Fargo Financial related to the termination. The Bank entered into a nine month lease agreement with Wells Fargo Financial effective September 30, 2017, to lease approximately 1,200 square feet of the former headquarters that was not damaged to serve general business functions. The Bank paid rent to Wells Fargo Financial in the amount of less than $1 million for the years ended December 31, 2018 and 2017 and $1.3 million |
Activities with Other FHLBanks
Activities with Other FHLBanks | 12 Months Ended |
Dec. 31, 2018 | |
Activities with Other FHLBanks [Abstract] | |
Activities with Other FHLBanks [Text Block] | Activities with Other FHLBanks Overnight Funds . The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. The following table summarizes loan activity to other FHLBanks during the year s ended December 31, 2018 , 2017 , and 2016 (dollars in millions): Other FHLBank Beginning Balance Loans Principal Repayment Ending Balance 2018 Boston $ — $ 800 $ (800 ) $ — San Francisco — 300 (300 ) — Dallas — 500 (500 ) — $ — $ 1,600 $ (1,600 ) $ — 2017 Topeka $ — $ 50 $ (50 ) $ — San Francisco 200 — (200 ) — $ 200 $ 50 $ (250 ) $ — 2016 Cincinnati $ — $ 100 $ (100 ) $ — San Francisco — 200 — 200 $ — $ 300 $ (100 ) $ 200 The following table summarizes borrowing activity from other FHLBanks during the year s ended December 31, 2018 , 2017 , and 2016 (dollars in millions): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2018 Atlanta $ 200 $ 500 $ (200 ) $ 500 Boston 400 — (400 ) — San Francisco — 500 (500 ) — $ 600 $ 1,000 $ (1,100 ) $ 500 2017 Atlanta $ — $ 200 $ — $ 200 Boston — 400 — 400 $ — $ 600 $ — $ 600 2016 Atlanta $ — $ 300 $ (300 ) $ — Boston — 100 (100 ) — Chicago — 200 (200 ) — Cincinnati — 300 (300 ) — Indianapolis — 300 (300 ) — New York — 300 (300 ) — San Francisco — 500 (500 ) — $ — $ 2,000 $ (2,000 ) $ — At December 31, 2018 , 2017 , and 2016 , the interest income and expense related to these transactions was immaterial. Advance Transfers . The Bank may purchase or sell advances from/to other FHLBanks. These transfers are accounted for in the same manner as an advance origination with a member bank. During the year ended December 31, 2017, a member of the Federal Home Loan Bank of Chicago (Chicago Bank) re-designated its charter, and concurrently transferred its Federal Home Loan Bank membership from the Chicago Bank to the Des Moines Bank. In conjunction with this transfer and at request of the member, the Bank purchased $37 million of par value advances outstanding to this member from the Chicago Bank and recorded related premiums of $1 million . There were no advance transfers during the years ended December 31, 2018 and 2016 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | ADOPTED ACCOUNTING GUIDANCE Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07) On March 10, 2017, the Financial Accounting Standards Board (FASB) issued amended guidance that requires an employer to disaggregate the service cost component from the other components of net periodic pension cost and net periodic postretirement benefit cost (net benefit cost). The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. The adoption of this guidance resulted in a reclassification of other net benefit costs from “Compensation and Benefits” to “Other Expense, Net” in the Bank’s Statement of Income. The adoption of this guidance did not have a material effect on the Bank’s financial condition, result of operations, or cash flows. Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) On August 26, 2016, the FASB issued amendments to clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This guidance is intended to reduce existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. The adoption of this guidance did not have a direct effect on the Bank’s financial condition, results of operations, or cash flows. However, the Bank did revise its previously reported supplemental interest paid disclosure to align with the clarified accounting guidance. Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) On January 5, 2016, the FASB issued amended guidance on certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance includes, but is not limited to, the following: • Requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in income. • Requires an entity to present separately in other comprehensive income (OCI) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) in the statements of condition or the accompanying notes to the financial statements. • Eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost in the statements of condition. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted using the modified retrospective approach. The adoption of this guidance affected the Bank’s fair value disclosures. However, the guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows. Revenue from Contracts with Customers (ASU 2014-09) On May 28, 2014, the FASB issued guidance on revenue from contracts with customers. This guidance outlines a single comprehensive model for recognizing revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In addition, this guidance amends the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer. This guidance applies to all contracts with customers except those that are within the scope of certain other standards, such as financial instruments, certain guarantees, insurance contracts, and lease contracts. The guidance provides entities with the option of using either of the following adoption methods: a full retrospective method, retrospectively to each prior reporting period presented; or a modified retrospective method, retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. On August 12, 2015, the FASB issued an amendment to defer the effective date of this guidance issued in May 2014 by one year. In 2016, the FASB issued additional amendments to clarify certain aspects of the new revenue guidance. However, these amendments did not change the core principle in the new revenue standard. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018 and was adopted retrospectively. Given that the majority of the Bank’s financial instruments and other contractual rights that generate revenue are covered by other U.S. GAAP, the adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, and cash flows. ISSUED ACCOUNTING GUIDANCE Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2018-16) On October 25, 2018, the FASB issued amended guidance to include the SOFR OIS rate as a U.S. benchmark interest rate for hedge accounting purposes. Including the OIS rate based on SOFR as an eligible benchmark interest rate during the early stages of the marketplace transition will facilitate the London Inter-bank Offered Rate (LIBOR) to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate, and are effective prospectively for qualifying new or re-designated hedging relationships entered into on or after January 1, 2019. The Bank adopted this guidance on January 1, 2019; however, the Bank did not implement any new SOFR OIS hedge strategies. It will continue to assess opportunities to expand its eligible hedge strategies in the future. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) On August 29, 2018, the FASB issued amended guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by this guidance. The amendments require a customer in a hosting arrangement that is a service contract to follow the guidance outlined in ASC Topic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. They require the customer to expense the capitalized implementation costs over the term of the hosting arrangement. The amendments also require the customer to present the expense in the same line item in the statement of income as the fees associated with the hosting element (service) and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. Lastly, capitalized implementation costs should be presented in the statement of condition in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. This guidance becomes effective for the Bank for the interim and annual periods beginning on January 1, 2020, and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Bank is in the process of evaluating this guidance and its anticipated effect on the Bank’s financial condition, results of operations, and cash flows has not yet been determined. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14) On August 28, 2018, the FASB issued amended guidance that modifies the disclosure requirements for defined benefit plans to improve disclosure effectiveness. This guidance becomes effective for the Bank for annual periods ending on December 31, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it may reduce certain disclosures. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) On August 28, 2018, the FASB issued amended guidance that modifies the disclosure requirements for fair value measurements to improve disclosure effectiveness. This guidance becomes effective for the Bank for interim and annual periods beginning on January 1, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it may reduce certain disclosures. Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12) On August 28, 2017, the FASB issued amended guidance to improve the financial reporting of hedging relationship to better portray the economic results of an entity’s risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness must be recorded in OCI. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception. • Measurement of the hedged item in a partial-term fair value hedge of interest-rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged. • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest-rate risk. • For a cash flow hedge of interest-rate risk of a variable-rate financial instrument, an entity could designate as the hedged risk the variability in cash flows attributable to the contractually specified interest-rate. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019. The guidance did not affect the Bank’s application of hedge accounting for existing hedge strategies, with the exception of designation of a fallback long-haul method for its short-cut hedge strategies, which did not impact the Bank’s financial condition, results of operations or cash flows. This guidance will prospectively affect the Bank’s income statement presentation for fair value hedge relationships and will require certain new disclosures in future filings. The Bank will continue to assess opportunities enabled by the new guidance to expand its risk management strategies. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08) On March 30, 2017, the FASB issued guidance to shorten the amortization period for certain purchased callable debt securities held at a premium. Specifically, this guidance requires the premium to be amortized to the earliest call date. This guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019 and was adopted on a modified retrospective basis. The adoption of this guidance did not have a material effect on the Bank’s financial condition, results of operations, or cash flows. Measurement of Credit Losses on Financial Instruments (ASU 2016-13) On June 16, 2016, the FASB issued amended guidance for the accounting of credit losses on financial instruments. The amendments require entities to measure expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The new guidance requires a financial asset, or a group of financial assets, measured at amortized cost to be presented at the net amount expected to be collected. The guidance also requires, among other things, the following: • The statement of income to reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. • Entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of purchased credit deterioration (PCD) since origination that are measured at amortized cost in a similar manner to other financial assets measured at amortized cost. The initial allowance for credit losses is required to be added to the purchase price of the assets acquired. • Entities to record credit losses relating to AFS debt securities through an allowance for credit losses. The amendments limit the allowance for credit losses to the amount by which fair value is below amortized cost. • Public entities to further disaggregate the current disclosure of credit quality indicators in relation to the amortized cost of financing receivables by the year of origination (i.e., vintage). This guidance is effective for the Bank for the interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. This guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for PCD assets upon adoption and for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The Bank does not intend to adopt the new guidance early. The Bank is in the process of evaluating the impact this guidance will have on its mortgage loans held for portfolio. The Bank has evaluated the impact of this guidance on all other in-scope financial instruments, and expects zero credit losses on its advance and credit products as well as agency and government-sponsored enterprise (GSE) debt securities, and immaterial credit losses on its remaining investment portfolio. The final effect of this guidance on the Bank’s financial condition, results of operations, and cash flows will depend upon the composition of financial assets held by the Bank at the adoption date as well as the economic conditions and forecasts at that time. Leases (ASU 2016-02) On February 25, 2016, the FASB issued guidance which requires recognition of lease assets and lease liabilities on the statement of condition and disclosure of key information about leasing arrangements. Specifically, this guidance requires a lessee, of operating or finance leases, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. Under previous GAAP, a lessee was not required to recognize lease assets and lease liabilities arising from operating leases on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2019 and was adopted on a modified retrospective basis. Upon adoption, the Bank recorded right-of-use assets and lease liabilities for its operating leases of $3 million |
Basis of Accounting | BASIS OF PRESENTATION |
Use of Estimates | Use of EstimatesThe preparation of financial statements in accordance with GAAP requires management to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant of these estimates include the fair value of derivatives and certain investment securities that are reported at fair value in the Statements of Condition, and the allowance for credit losses on mortgage loans. Actual results could significantly differ from these estimates. |
Resale Agreements | Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds SoldInterest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold provide short-term liquidity and are carried at cost. Interest-bearing deposits include deposits held with banks or counterparties that do not meet the definition of a security. The Bank treats securities purchased under agreements to resell as short-term secured investments. These secured investments are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the market value of the underlying securities decrease below the market value required as collateral, the counterparty must either place an equivalent amount of additional securities in safekeeping in the name of the Bank or remit an equivalent amount of cash. Otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans generally transacted with counterparties that are considered by the Bank to be of investment quality |
Investments | Investment Securities The Bank classifies investment securities as trading, available-for-sale (AFS), and held-to-maturity (HTM) at the date of acquisition. Purchases and sales of investment securities are recorded on a trade date basis. The Bank records interest on investment securities to interest income as earned. The Bank amortizes/accretes premiums and discounts on AFS and HTM investment securities to income using the contractual level-yield method (level-yield method). In addition, the Bank uses this method to amortize/accrete fair value hedging adjustments. The level-yield method recognizes the income effects of these adjustments over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank computes gains and losses on sales of investment securities using the specific identification method and includes these gains and losses in other income (loss). Trading . Securities classified as trading are carried at fair value and generally entered into for liquidity purposes. In addition, the Bank classifies certain securities as trading that do not qualify for hedge accounting, primarily in an effort to mitigate the potential income statement volatility that can arise when an economic derivative is adjusted for changes in fair value but the related hedged item is not. The Bank records changes in the fair value of these securities through other income (loss) as “Net gains (losses) on trading securities.” Finance Agency regulation prohibits trading in or the speculative use of these instruments. Available-for-Sale. Securities that are not classified as trading or HTM are classified as AFS and carried at fair value. The Bank records changes in the fair value of these securities through accumulated other comprehensive income (loss) (AOCI) as “Net unrealized gains (losses) on available-for-sale securities.” 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 security related to the risk being hedged together with the related change in fair value of the derivative through other income (loss) as “Net gains (losses) on derivatives and hedging activities.” The Bank records the remainder of the change in fair value through AOCI as “Net unrealized gains (losses) on available-for-sale securities.” Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as HTM and carried at amortized cost, which represents the amount at which an investment is acquired, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Certain changes in circumstances may cause the Bank to change its intent to hold a 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 a HTM security due to 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, non-recurring, and unusual for the Bank that could not have been reasonably anticipated may cause the Bank to sell or transfer an HTM security without necessarily calling into question its intent to hold other debt securities to maturity. In addition, the sale of a debt security that meets either of the following two conditions would not be considered inconsistent with the original classification of that security: (i) the sale occurs near enough to its maturity date (for example, within three months of maturity), or call date if exercise of the call is probable, that interest rate risk is substantially eliminated as a pricing factor and the 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 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on the debt security payable in equal installments (both principal and interest) over its term. Investment Securities - Other-Than-Temporary Impairment The Bank evaluates its individual AFS and HTM securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost basis. The Bank considers an OTTI to have occurred under any of the following conditions: • it has an intent to sell the impaired debt security; • it believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or • it does not expect to recover the entire amortized cost basis of the impaired debt security. Recognition of OTTI |
Variable Interest Entities | Variable Interest Entities The Bank has determined its investments in private-label MBS to be variable interest entities (VIEs). These securities are classified as HTM in the Bank’s Statements of Condition. The Bank has no liabilities related to these VIEs. The maximum loss exposure for these VIEs is limited to the Bank’s investments in the VIEs. If the Bank determines it is the primary beneficiary of a VIE, it would be required to consolidate that VIE. On a quarterly basis, the Bank performs an evaluation to determine whether it is the primary beneficiary of its VIEs. To perform this evaluation, the Bank considers whether it possesses both of the following characteristics: (i) the power to direct the VIEs activities that most significantly affect the VIEs economic performance and (ii) the obligation to absorb the VIEs losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
Advances | Advances The Bank reports advances (secured loans to members, former members, or eligible housing associates) at amortized cost, which is net of premiums, discounts, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the advances are carried at fair value. The Bank records interest on advances to interest income as earned. The Bank amortizes/accretes premiums, discounts, and fair value hedging adjustments on advances to income using the level-yield method over the contractual life of the advances. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. For advances with symmetrical prepayment features, 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. Prepayment fees and credits are recorded net of fair value hedging adjustments in advance interest income in the Statements of Income. Advance Modifications. In cases in which the Bank funds a new advance to a borrower concurrently with or within a short period of time before or after the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. The Bank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a ten percent difference in the present value of the 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 and all prepayment fees or credits net of fair value hedging adjustments are recognized immediately to advance interest income in the Statements of Income. In all other instances, the advance is accounted for as a modification. When a new advance qualifies as a modification of an existing advance, any prepayment fee, net of fair value hedging adjustments, as well as any outstanding premiums, discounts or other adjustments, on the prepaid advance are deferred, recorded in the basis of the modified advance, and amortized over the contractual life of the modified advance using a level-yield methodology to advance interest income. |
Advance Prepayment Fees | Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. For advances with symmetrical prepayment features, 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. Prepayment fees and credits are recorded net of fair value hedging adjustments in advance interest income in the Statements of Income. |
Mortgage Loans | Mortgage Loans Held for Portfolio The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of premiums, discounts, basis adjustments from mortgage loan purchase commitments, charge-offs, and the allowance for credit losses. The Bank records interest on mortgage loans to interest income as earned. The Bank amortizes/accretes premiums, discounts, and basis adjustments on mortgage loan purchase commitments to income using the level-yield method over the contractual life of the mortgage loans. |
Mortgage Loan Fees | The Bank amortizes/accretes premiums, discounts, and basis adjustments on mortgage loan purchase commitments to income using the level-yield method over the contractual life of the mortgage loans. |
Allowance for Credit Losses | Allowance for Credit Losses An allowance for credit losses is a valuation allowance separately established for each identified portfolio segment, if it is probable that impairment has occurred in the Bank’s portfolio as of the statement of condition date and the amount of loss can be reasonably estimated. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. To the extent necessary, an allowance for credit losses for off-balance sheet credit exposures is recorded as a liability. See “Note 10 — Allowance for Credit Losses” for details on each of the Bank’s allowance methodologies. Portfolio Segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for credit products (advances, standby letters of credit, and other extensions of credit to borrowers), government-insured mortgage loans held for portfolio, conventional Mortgage Partnership Finance Program (MPF) and Mortgage Purchase Program (MPP) loans held for portfolio, and term securities purchased under agreements to resell. Mortgage Partnership Finance and MPF are registered trademarks of the FHLBank of Chicago. Classes of Financing Receivables. Classes of financing receivables generally are a disaggregation of a portfolio segment to the extent that it is needed to understand the exposure to credit risk arising from the financing receivables. The Bank assesses and measures its credit risk arising from financing receivables at the portfolio segment level. As such, it has determined that no further disaggregation of the portfolio segments identified above is needed. Non-Accrual Loans. The Bank places a conventional mortgage loan on non-accrual status if it is determined that either the collection of interest or principal is doubtful or interest or principal is 90 days or more past due. The Bank does not place a government-insured mortgage loan on non-accrual status due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income and cash payments received are recorded as a reduction of principal. In addition, premiums, discounts, and basis adjustments from mortgage loan purchase commitments are not amortized while a loan is on non-accrual status. A loan on non-accrual status may be restored to accrual status when none of its contractual principal and interest is due and unpaid and the Bank expects repayment of the remaining contractual principal and interest. Troubled Debt Restructurings . The Bank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. The Bank’s TDRs include loans granted under its loan modification plans and loans discharged under Chapter 7 bankruptcy that have not been reaffirmed by the borrower. The Bank does not consider government-insured mortgage loans to be TDRs due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. The Bank places all TDRs on non-accrual status at the time of modification. Individually Evaluated Impaired Loans. The Bank individually evaluates all TDRs and collateral-dependent loans for impairment. The Bank generally measures impairment of TDRs based on the present value of expected future cash flows discounted at the loan’s effective interest rate. Collateral-dependent loans are loans in which repayment is expected to be provided solely by the sale of the underlying property; that is, there is no other available and reliable source of repayment. The Bank’s collateral-dependent loans include loans in process of foreclosure, loans 180 days or more past due, and bankruptcy loans and TDRs 60 days or more past due. The Bank measures impairment of collateral-dependent loans based on the estimated fair value of the underlying property, less estimated selling costs and expected proceeds from primary mortgage insurance (PMI). Interest income on impaired loans is recognized in the same manner as non-accrual loans. Charge-Off Policy |
Allowance for Credit Losses Methodology | The Bank utilizes an allowance for credit losses to reserve for estimated losses in its conventional MPF and MPP mortgage loan portfolios at the balance sheet date. The measurement of the Bank’s MPF and MPP allowance for credit losses is determined by the following: • reviewing similar conventional mortgage loans for impairment on a collective basis. This evaluation is primarily based on the following factors: (i) current loan delinquencies, (ii) loans migrating to collateral-dependent status, and (iii) actual historical loss severities; • reviewing conventional mortgage loans for impairment on an individual basis; and • |
Non-Accrual Loans | Non-Accrual Loans. The Bank places a conventional mortgage loan on non-accrual status if it is determined that either the collection of interest or principal is doubtful or interest or principal is 90 days or more past due. The Bank does not place a government-insured mortgage loan on non-accrual status due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income and cash payments received are recorded as a reduction of principal. In addition, premiums, discounts, and basis adjustments from mortgage loan purchase commitments are not amortized while a loan is on non-accrual status. A loan on non-accrual status may be restored to accrual status when none of its contractual principal and interest is due and unpaid and the Bank expects repayment of the remaining contractual principal and interest. |
Troubled Debt Restructurings | Troubled Debt Restructurings. The Bank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. The Bank’s TDRs include loans granted under its loan modification plans and loans discharged under Chapter 7 bankruptcy that have not been reaffirmed by the borrower. The Bank does not consider government-insured mortgage loans to be TDRs due to the U.S. Government guarantee or insurance on the loan and contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. The Bank places all TDRs on non-accrual status at the time of modification. |
Impairment of Financing Receivables | Individually Evaluated Impaired Loans. The Bank individually evaluates all TDRs and collateral-dependent loans for impairment. The Bank generally measures impairment of TDRs based on the present value of expected future cash flows discounted at the loan’s effective interest rate. Collateral-dependent loans are loans in which repayment is expected to be provided solely by the sale of the underlying property; that is, there is no other available and reliable source of repayment. The Bank’s collateral-dependent loans include loans in process of foreclosure, loans 180 days or more past due, and bankruptcy loans and TDRs 60 days or more past due. The Bank measures impairment of collateral-dependent loans based on the estimated fair value of the underlying property, less estimated selling costs and expected proceeds from primary mortgage insurance (PMI). Interest income on impaired loans is recognized in the same manner as non-accrual loans. |
Derivatives | Derivatives All derivatives are recognized in the Statements of Condition at their fair values and reported as either derivative assets or derivative liabilities, net of cash collateral and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as a derivative asset and, if negative, they are classified as a derivative 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 transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty (uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., a clearing agent) with a Derivative Clearing Organization (cleared derivatives). The Bank utilizes one Derivative Clearing Organization (Clearinghouse), CME Clearing, for all cleared derivative transactions. CME Clearing notifies the clearing agent of the required initial margin and daily variation margin payments, and the clearing agent in turn notifies the Bank. The Clearinghouse determines initial margin requirements which are considered cash collateral. Variation margin requirements with CME Clearing are based on changes in the fair value of cleared derivatives and are legally characterized as daily settlement payments, which are a component of the derivative fair value, rather than cash collateral. 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 effectiveness for all derivatives qualifying for hedge accounting. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities in the Statements of Condition and firm commitments. Derivative Designations . Derivative instruments are designated by the Bank as: • a fair value hedge of an associated financial instrument or firm commitment (fair value hedge); or • an economic hedge to manage certain defined risks in the Bank’s Statements of Condition (economic hedge). These hedges are primarily used to: (i) manage mismatches between the coupon features of the Bank’s assets and liabilities, (ii) offset prepayment risk in certain assets, (iii) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted by accounting guidance, or (iv) to reduce exposure to reset risk. Accounting for Fair Value Hedges . If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the fair value hedging relationship and an expectation to be highly effective, they qualify for fair value hedge accounting and the changes in fair value of derivatives along with the offsetting changes in fair value of the hedged items attributable to the hedged risk are recorded in other income (loss) as “Net gains (losses) on derivatives and hedging activities.” The amount by which the change in fair value of the derivative differs from the change in fair value of the hedged item is known as hedge ineffectiveness. Two approaches to fair value hedge accounting include: • Long-haul hedge accounting . The application of long-haul hedge accounting requires the Bank to formally assess (both at the hedge’s inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items due to benchmark interest rate changes and whether those derivatives are expected to remain highly effective in future periods. The Bank uses regression analyses to assess the effectiveness of its long-haul hedges. • Short-cut hedge accounting . Transactions that meet certain criteria qualify for short-cut hedge accounting in which an assumption can be made that the change in fair value of a hedged item due to changes in the benchmark interest rate exactly offsets the change in fair value of the related derivative. Under the short-cut method, the entire change in fair value of the interest rate swap is considered to be highly effective at achieving offsetting changes in fair value of the hedged asset or liability. Derivatives are typically executed at the same time as the hedged item, and the Bank designates the hedged item in a fair value hedge relationship at the trade date. In many hedging relationships, the Bank may designate the fair value 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 then records the changes in fair value of the derivative and the hedged item beginning on the trade date. Accounting for Economic Hedges . An economic hedge is defined as a derivative 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. Changes in the fair value of derivatives that are designated as economic hedges are recorded in other income (loss) as “Net gains (losses) on derivatives and hedging activities” with no offsetting fair value adjustments for the underlying assets, liabilities, or firm commitments, unless changes in the fair value of the assets or liabilities are normally marked to fair value through earnings (e.g., trading securities and fair value option instruments). Accrued Interest Receivables and Payables . The net settlements of interest receivables and payables related to derivatives designated as fair value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlements of interest receivables and payables related to derivatives designated as economic hedges are recognized in other income (loss) as “Net gains (losses) on derivatives and hedging activities.” Discontinuance of Hedge Accounting. The Bank discontinues fair value hedge accounting prospectively when either (i) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item due to changes in the benchmark interest rate, (ii) the derivative and/or the hedged item expires or is sold, terminated, or exercised, (iii) a hedged firm commitment no longer meets the definition of a firm commitment, or (iv) management determines that designating the derivative as a hedging instrument is no longer appropriate. When fair value hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative in the Statements of Condition at its fair value. For any remaining hedged item, the Bank ceases to adjust the hedged item for changes in fair value and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining contractual life of the hedged item using the level-yield method. When fair value hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, the Bank continues to carry the derivative in the Statements of Condition at its fair value, removing from the Statements of Condition any hedged item that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. Embedded Derivatives. |
Derivative Offsetting | Financial Instruments Meeting Netting Requirements The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that may be presented on a net basis when there is 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 instruments, related cash collateral, and associated accrued interest when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis and therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the requirements for netting, 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 11 — Derivatives and Hedging Activities.” |
Derivative Hedge Discontinuance | Discontinuance of Hedge Accounting. The Bank discontinues fair value hedge accounting prospectively when either (i) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item due to changes in the benchmark interest rate, (ii) the derivative and/or the hedged item expires or is sold, terminated, or exercised, (iii) a hedged firm commitment no longer meets the definition of a firm commitment, or (iv) management determines that designating the derivative as a hedging instrument is no longer appropriate. When fair value hedge accounting is discontinued, the Bank either terminates the derivative or continues to carry the derivative in the Statements of Condition at its fair value. For any remaining hedged item, the Bank ceases to adjust the hedged item for changes in fair value and amortizes the cumulative basis adjustment on the hedged item into earnings over the remaining contractual life of the hedged item using the level-yield method. |
Embedded Derivatives | Embedded Derivatives. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is “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 debt, advance, or purchased financial instrument (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. If the Bank determines that the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and 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 an economic derivative instrument. However, if the Bank elects to carry the entire contract (the host contract and the embedded derivative) at fair value in the Statements of Condition, changes in fair value of the entire contract will be reported in current period earnings. |
Premises, Software, and Equipment | Premises, Software, and Equipment Premises, software, and equipment are included in other assets on the Statement of Condition. The Bank records premises, software, and equipment at cost less accumulated depreciation and amortization and computes depreciation and amortization using the straight-line method over the estimated useful lives of assets, which range from approximately three years to 40 years |
Consolidated Obligations | Consolidated Obligations The Bank reports consolidated obligations at amortized cost, which is net of premiums, discounts, concessions, and fair value hedging adjustments unless the Bank has elected the fair value option, in which case, the consolidated obligations are carried at fair value. The Bank records interest on consolidated obligations bonds to interest expense as incurred. The Bank amortizes/accretes premiums, discounts, concessions, and fair value hedging adjustments on consolidated obligations to expense using the level-yield method over the contractual life of the consolidated obligations. Concessions. |
Mandatorily Redeemable Capital Stock | Mandatorily Redeemable Capital Stock The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) at the time shares meet the definition of a mandatorily redeemable financial instrument. This occurs after a member provides written notice of redemption, gives notice of intention to withdraw from membership, becomes ineligible for continuing membership, or attains non-member status by merger or consolidation, charter termination, or other involuntary termination from membership. Shares meeting this definition are reclassified to a liability at fair value. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. The repurchase or redemption of mandatorily redeemable capital stock is transacted at par value and is reflected as a cash outflow in the financing activities section of the Statements of Cash Flows. |
Additional Capital from Merger | Additional Capital from Merger The Bank recognized the net assets acquired from the merger with the Federal Home Loan Bank of Seattle in 2015 (Merger) by recording the par value of capital stock issued in the transaction as capital stock, with the remaining portion of net assets acquired reflected in a capital account captioned “Additional capital from merger.” The Bank treated this additional capital from merger as a component of total capital for regulatory capital purposes. Dividends on capital stock were paid from this account following the Merger until the balance was depleted by the first quarter dividend payment in May 2017. |
Restricted Retained Earnings | Restricted Retained Earnings The Bank entered into a Joint Capital Enhancement Agreement (JCE Agreement) with all of the other FHLBanks in 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the Bank over time. Under the JCE Agreement, each FHLBank is required to allocate 20 percent of its quarterly net income to a restricted retained earnings account until the balance of that account equals at least one percent |
Litigation Settlement Gains, Net | Gains on Litigation Settlement, Net Litigation settlement gains are considered realized and recorded when the Bank receives cash or assets that are readily convertible to known amounts of cash or claims to cash. In addition, litigation settlement gains are considered realizable and recorded when the Bank enters into a signed agreement that is not subject to appeal, where the counterparty has the ability to pay, and the amount to be received can be reasonably estimated. Prior to being realized or realizable, the Bank considers potential litigation settlement gains to be gain contingencies, and therefore they are not recorded in the Statements of Income. |
Finance Agency Expenses | Finance Agency Expenses The FHLBanks are assessed for a portion of the costs of operating the Finance Agency. Each FHLBank is required to pay their pro-rata share of the annual assessment based on the ratio between each FHLBank’s minimum required regulatory capital and the minimum required regulatory capital of all FHLBanks. |
Office of Finance Expenses | Office of Finance ExpensesThe Bank is assessed for a portion of the costs of operating the Office of Finance. The Office of Finance allocates its operating and capital expenditures to the FHLBanks as follows: (i) two-thirds based on each FHLBank’s share of total consolidated obligations outstanding and (ii) one-third based upon an equal pro-rata allocation. |
Assessments | Assessments The FHLBank Act requires each FHLBank to establish and fund an Affordable Housing Program (AHP), which provides subsidies in the form of direct grants and below-market interest rate advances to members who use the funds to assist in the purchase, construction, or rehabilitation of housing for very low to moderate income households. Annually, each FHLBank must set aside for the AHP the greater of 10 percent of its annual income subject to assessment, or its prorated sum required to ensure the aggregate contribution by the FHLBanks is no less than $100 million |
Fair Value | Fair value amounts are determined by the Bank using available market information and reflect the Bank’s best judgment of appropriate valuation methods. 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., exit price). The fair value hierarchy requires an entity to maximize the use of significant observable inputs and minimize the use of significant unobservable inputs when measuring fair value. 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 prioritizes the inputs used to measure fair value into three broad levels: • Level 1 Inputs. Quoted prices (unadjusted) for identical assets or liabilities in an active market that the Bank can access on the measurement date. • Level 2 Inputs. 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: (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, (iii) 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 (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. |
Fair Value Transfers | The Bank reviews its 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. These reclassifications would be reported as transfers in/out as of the beginning of the quarter in which the changes occur. |
Trading Securities (Tables)
Trading Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | Trading securities were as follows (dollars in millions): December 31, 2018 2017 Non-mortgage-backed securities U.S. obligations 1 $ 159 $ 197 GSE and Tennessee Valley Authority obligations 57 260 Other 2 266 272 Total non-mortgage-backed securities 482 729 Mortgage-backed securities GSE multifamily 433 448 Total fair value $ 915 $ 1,177 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |
Major Security Types | AFS securities we re as follows (dollars in millions): December 31, 2018 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities U.S. obligations 2 $ 2,597 $ 8 $ (3 ) $ 2,602 GSE and Tennessee Valley Authority obligations 1,012 26 — 1,038 State or local housing agency obligations 820 — (6 ) 814 Other 3 264 11 — 275 Total non-mortgage-backed securities 4,693 45 (9 ) 4,729 Mortgage-backed securities U.S. obligations single-family 2 4,459 25 (1 ) 4,483 GSE single-family 794 6 (4 ) 796 GSE multifamily 8,986 36 (11 ) 9,011 Total mortgage-backed securities 14,239 67 (16 ) 14,290 Total $ 18,932 $ 112 $ (25 ) $ 19,019 December 31, 2017 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities U.S. obligations 2 $ 3,096 $ 8 $ (5 ) $ 3,099 GSE and Tennessee Valley Authority obligations 1,197 39 — 1,236 State or local housing agency obligations 935 — (1 ) 934 Other 3 269 9 — 278 Total non-mortgage-backed securities 5,497 56 (6 ) 5,547 Mortgage-backed securities U.S. obligations single-family 2 3,716 11 (1 ) 3,726 GSE single-family 983 7 (2 ) 988 GSE multifamily 10,482 57 (4 ) 10,535 Total mortgage-backed securities 15,181 75 (7 ) 15,249 Total $ 20,678 $ 131 $ (13 ) $ 20,796 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 |
Available-for-Sale Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized Losses | The following tables summarize AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities U.S. obligations 1 $ 533 $ (1 ) $ 311 $ (2 ) $ 844 $ (3 ) State or local housing agency obligations 211 — 586 (6 ) 797 (6 ) Total non-mortgage-backed securities 744 (1 ) 897 (8 ) 1,641 (9 ) Mortgage-backed securities U.S. obligations single-family 1 646 (1 ) — — 646 (1 ) GSE single-family 115 — 209 (4 ) 324 (4 ) GSE multifamily 3,239 (8 ) 718 (3 ) 3,957 (11 ) Total mortgage-backed securities 4,000 (9 ) 927 (7 ) 4,927 (16 ) Total $ 4,744 $ (10 ) $ 1,824 $ (15 ) $ 6,568 $ (25 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities U.S. obligations 1 $ 29 $ — $ 1,783 $ (5 ) $ 1,812 $ (5 ) State or local housing agency obligations 6 — 655 (1 ) 661 (1 ) Total non-mortgage-backed securities 35 — 2,438 (6 ) 2,473 (6 ) Mortgage-backed securities U.S. obligations single-family 1 111 — 887 (1 ) 998 (1 ) GSE single-family 222 (2 ) 53 — 275 (2 ) GSE multifamily 224 (1 ) 1,756 (3 ) 1,980 (4 ) Total mortgage-backed securities 557 (3 ) 2,696 (4 ) 3,253 (7 ) Total $ 592 $ (3 ) $ 5,134 $ (10 ) $ 5,726 $ (13 ) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Contractual Maturity | The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions): December 31, 2018 December 31, 2017 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 74 $ 74 $ 158 $ 159 Due after one year through five years 1,314 1,323 750 755 Due after five years through ten years 2,497 2,506 3,574 3,583 Due after ten years 808 826 1,015 1,050 Total non-mortgage-backed securities 4,693 4,729 5,497 5,547 Mortgage-backed securities 14,239 14,290 15,181 15,249 Total $ 18,932 $ 19,019 $ 20,678 $ 20,796 |
Held-to-Maturity Securities (Ta
Held-to-Maturity Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | |
Major Security Types | HTM securities wer e as follows (dollars in millions): December 31, 2018 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 389 $ 48 $ (2 ) $ 435 State or local housing agency obligations 391 1 (1 ) 391 Total non-mortgage-backed securities 780 49 (3 ) 826 Mortgage-backed securities U.S. obligations single-family 2 9 — — 9 U.S. obligations commercial 2 1 — — 1 GSE single-family 2,192 4 (21 ) 2,175 Private-label residential 10 — — 10 Total mortgage-backed securities 2,212 4 (21 ) 2,195 Total $ 2,992 $ 53 $ (24 ) $ 3,021 December 31, 2017 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 393 $ 65 $ — $ 458 State or local housing agency obligations 454 2 (2 ) 454 Total non-mortgage-backed securities 847 67 (2 ) 912 Mortgage-backed securities U.S. obligations single-family 2 15 — — 15 U.S. obligations commercial 2 2 — — 2 GSE single-family 2,752 7 (14 ) 2,745 Private-label residential 12 — — 12 Total mortgage-backed securities 2,781 7 (14 ) 2,774 Total $ 3,628 $ 74 $ (16 ) $ 3,686 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Held-to-Maturity Securities [Member] | |
Schedule of Held-to-maturity Securities [Line Items] | |
Unrealized Losses | The following tables summarize HTM securities with unrealized losses by major security type and the length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported. December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities GSE and Tennessee Valley Authority obligations $ 69 $ (2 ) $ — $ — $ 69 $ (2 ) State or local housing agency obligations 50 — 152 (1 ) 202 (1 ) Total non-mortgage backed securities 119 (2 ) 152 (1 ) 271 (3 ) Mortgage-backed securities U.S. obligations single-family 1 3 — — — 3 — U.S. obligations commercial 1 — — 1 — 1 — GSE single-family 611 (1 ) 1,008 (20 ) 1,619 (21 ) Private-label residential — — 6 — 6 — Total mortgage-backed securities 614 (1 ) 1,015 (20 ) 1,629 (21 ) Total $ 733 $ (3 ) $ 1,167 $ (21 ) $ 1,900 $ (24 ) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage backed securities State or local housing agency obligations $ 2 $ — $ 168 $ (2 ) $ 170 $ (2 ) Total non-mortgage backed securities 2 — 168 (2 ) 170 (2 ) Mortgage-backed securities U.S. obligations single-family 1 7 — 1 — 8 — U.S. obligations commercial 1 1 — 1 — 2 — GSE single-family 42 — 1,427 (14 ) 1,469 (14 ) Private-label residential — — 8 — 8 — Total mortgage-backed securities 50 — 1,437 (14 ) 1,487 (14 ) Total $ 52 $ — $ 1,605 $ (16 ) $ 1,657 $ (16 ) 1 |
Contractual Maturity | The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions): December 31, 2018 December 31, 2017 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 9 $ 9 $ 20 $ 20 Due after one year through five years 64 65 72 72 Due after five years through ten years 332 353 344 376 Due after ten years 375 399 411 444 Total non-mortgage-backed securities 780 826 847 912 Mortgage-backed securities 2,212 2,195 2,781 2,774 Total $ 2,992 $ 3,021 $ 3,628 $ 3,686 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Advances [Abstract] | |
Advances | The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): December 31, 2018 December 31, 2017 Redemption Term Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 2 3.63 % $ 1 3.63 % Due in one year or less 50,561 2.61 45,310 1.62 Due after one year through two years 23,946 2.61 17,094 1.79 Due after two years through three years 17,582 2.73 14,222 1.64 Due after three years through four years 4,091 2.73 17,561 1.79 Due after four years through five years 6,814 2.76 3,089 1.91 Thereafter 3,417 2.96 5,401 2.28 Total par value 106,413 2.66 % 102,678 1.73 % Premiums 38 53 Discounts (8 ) (12 ) Fair value hedging adjustments (120 ) (106 ) Total $ 106,323 $ 102,613 The following table summarizes advances by redemption term or next call date for callable advances, and by redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term or Next Put Date 2018 2017 2018 2017 Overdrawn demand deposit accounts $ 2 $ 1 $ 2 $ 1 Due in one year or less 77,931 69,971 50,617 45,372 Due after one year through two years 11,087 16,539 24,060 17,094 Due after two years through three years 10,423 3,809 17,628 14,222 Due after three years through four years 2,357 8,511 4,078 17,520 Due after four years through five years 2,444 1,276 6,722 3,073 Thereafter 2,169 2,571 3,306 5,396 Total par value $ 106,413 $ 102,678 $ 106,413 $ 102,678 |
Mortgage Loans Held for Portf_2
Mortgage Loans Held for Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Mortgage Loans Held for Portfolio | The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions): December 31, 2018 2017 Fixed rate, long-term single-family mortgage loans $ 6,860 $ 5,998 Fixed rate, medium-term 1 single-family mortgage loans 874 1,003 Total unpaid principal balance 7,734 7,001 Premiums 105 98 Discounts (5 ) (6 ) Basis adjustments from mortgage loan purchase commitments 2 5 Total mortgage loans held for portfolio $ 7,836 $ 7,098 Allowance for credit losses (1 ) (2 ) Total mortgage loans held for portfolio, net $ 7,835 $ 7,096 1 Medium-term is defined as a term of 15 years or less. The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): December 31, 2018 2017 Conventional mortgage loans $ 7,231 $ 6,472 Government-insured mortgage loans 503 529 Total unpaid principal balance $ 7,734 $ 7,001 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses by Impairment Methodology | The following table summarizes the allowance for credit losses and recorded investment of the Bank’s conventional mortgage loan portfolio by impairment methodology (dollars in millions): December 31, 2018 2017 Allowance for credit losses Collectively evaluated for impairment $ 1 $ 2 Recorded investment 1 Collectively evaluated for impairment $ 7,306 $ 6,530 Individually evaluated for impairment, without a related allowance 54 61 Total recorded investment $ 7,360 $ 6,591 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. |
Past Due Financing Receivables | The tables below summarize the Bank’s key credit quality indicators for mortgage loans (dollars in millions): December 31, 2018 Conventional MPF/MPP Government-Guaranteed or -Insured 6 Total Past due 30 - 59 days $ 49 $ 17 $ 66 Past due 60 - 89 days 14 5 19 Past due 90 - 179 days 11 4 15 Past due 180 days or more 13 4 17 Total past due mortgage loans 87 30 117 Total current mortgage loans 7,273 486 7,759 Total recorded investment of mortgage loans 1 $ 7,360 $ 516 $ 7,876 In process of foreclosure (included above) 2 $ 8 $ 2 $ 10 Serious delinquency rate 3 — % 2 % — % Past due 90 days or more and still accruing interest 4 $ — $ 8 $ 8 Non-accrual mortgage loans 5 $ 36 $ — $ 36 December 31, 2017 Conventional MPF/MPP Government-Guaranteed or -Insured 6 Total Past due 30 - 59 days $ 58 $ 19 $ 77 Past due 60 - 89 days 16 6 22 Past due 90 - 179 days 15 5 20 Past due 180 days or more 21 6 27 Total past due mortgage loans 110 36 146 Total current mortgage loans 6,481 507 6,988 Total recorded investment of mortgage loans 1 $ 6,591 $ 543 $ 7,134 In process of foreclosure (included above) 2 $ 12 $ 2 $ 14 Serious delinquency rate 3 1 % 2 % 1 % Past due 90 days or more and still accruing interest 4 $ — $ 11 $ 11 Non-accrual mortgage loans 5 $ 48 $ — $ 48 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their payment status. 3 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment. 4 Represents government-insured mortgage loans that are 90 days or more past due. 5 Represents conventional mortgage loans that are 90 days or more past due or TDRs. 6 The bank did not record any allowance for credit losses on government-guaranteed or -insured mortgage loans at December 31, 2018 and 2017 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Liabilities [Table Text Block] | The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2018 Derivative Instruments Meeting Netting Requirements 2 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 96 $ (96 ) $ — Cleared derivatives 7 50 57 Total $ 103 $ (46 ) $ 57 Derivative Liabilities Uncleared derivatives $ 119 $ (110 ) $ 9 Cleared derivatives 20 (20 ) — Total $ 139 $ (130 ) $ 9 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 Mortgage loan purchase commitments in a derivative asset position, not subject to enforceable netting requirements, were $1 million at December 31, 2018. The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements, including the related collateral received from or pledged to counterparties and variation margin for daily settled contracts (dollars in millions): December 31, 2017 Derivative Instruments Meeting Netting Requirements 3 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 88 $ (87 ) $ 1 Cleared derivatives 9 90 99 Total $ 97 $ 3 $ 100 Derivative Liabilities Uncleared derivatives $ 170 $ (164 ) $ 6 Cleared derivatives 18 (18 ) — Total $ 188 $ (182 ) $ 6 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with gross amount of netting adjustments and cash collateral. |
Derivative Instruments in Statement of Financial Position | The following table summarizes the Bank’s notional amount and fair value of derivative instruments and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest (dollars in millions): December 31, 2018 December 31, 2017 1 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 47,316 $ 83 $ 115 $ 52,120 $ 77 $ 151 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,321 20 24 1,407 20 37 Forward settlement agreements (TBAs) 98 — — 66 — — Mortgage loan purchase commitments 101 1 — 72 — — Total derivatives not designated as hedging instruments 1,520 21 24 1,545 20 37 Total derivatives before netting and collateral adjustments $ 48,836 104 139 $ 53,665 97 188 Netting adjustments and cash collateral 2 (46 ) (130 ) 3 (182 ) Total derivative assets and derivative liabilities $ 58 $ 9 $ 100 $ 6 1 To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with netting adjustments and cash collateral. 2 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank and related accrued interest was $121 million and $191 million at December 31, 2018 and 2017 . At December 31, 2018 and 2017 , the Bank received cash collateral and related accrued interest from clearing agents and/or counterparties of $37 million and $6 million |
Derivative Instrument Gain (Loss) in Statement of Financial Performance | The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented in the Statements of Income (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 3 $ 11 $ 13 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 16 10 12 Forward settlement agreements (TBAs) 2 (2 ) 2 Mortgage loan purchase commitments (2 ) 2 (2 ) Net interest settlements (3 ) (12 ) (18 ) Total net gains (losses) related to derivatives not designated as hedging instruments 13 (2 ) (6 ) Price alignment amount 1 3 3 — Net gains (losses) on derivatives and hedging activities $ 19 $ 12 $ 7 |
Derivative Instruments By Hedge Type in Statement of Financial Performance | The following tables summarize, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships, the net fair value hedge ineffectiveness, and the effect of those derivatives on the Bank’s net interest income (dollars in millions): For the Year Ended December 31, 2018 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 112 $ (111 ) $ 1 $ (22 ) Advances 2 23 (23 ) — 47 Consolidated obligation bonds 68 (66 ) 2 (217 ) Total $ 203 $ (200 ) $ 3 $ (192 ) For the Year Ended December 31, 2017 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 86 $ (72 ) $ 14 $ (93 ) Advances 2 94 (92 ) 2 (70 ) Consolidated obligation bonds (95 ) 90 (5 ) 6 Total $ 85 $ (74 ) $ 11 $ (157 ) For the Year Ended December 31, 2016 Hedged Item Type Net Gains (Losses) on Derivatives Net Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 99 $ (80 ) $ 19 $ (142 ) Advances 2 147 (142 ) 5 (140 ) Consolidated obligation bonds (359 ) 348 (11 ) 76 Total $ (113 ) $ 126 $ 13 $ (206 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships and the amortization of the financing element of off-market derivatives, both of which are included in the interest income or interest expense line item of the respective hedged item type. The amortization for off-market derivatives totaled $1 million, $13 million and $28 million for the years ended December 31, 2018 , 2017 , and 2016 . 2 Includes net gains (losses) on fair value hedge firm commitments of forward starting advances. |
Offsetting Assets | The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements and the related collateral received from or pledged to counterparties (dollars in millions): December 31, 2018 Derivative Instruments Meeting Netting Requirements 2 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 96 $ (96 ) $ — Cleared derivatives 7 50 57 Total $ 103 $ (46 ) $ 57 Derivative Liabilities Uncleared derivatives $ 119 $ (110 ) $ 9 Cleared derivatives 20 (20 ) — Total $ 139 $ (130 ) $ 9 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 Mortgage loan purchase commitments in a derivative asset position, not subject to enforceable netting requirements, were $1 million at December 31, 2018. The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements, including the related collateral received from or pledged to counterparties and variation margin for daily settled contracts (dollars in millions): December 31, 2017 Derivative Instruments Meeting Netting Requirements 3 Gross Amount Recognized 1 Gross Amounts of Netting Adjustments and Cash Collateral 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 88 $ (87 ) $ 1 Cleared derivatives 9 90 99 Total $ 97 $ 3 $ 100 Derivative Liabilities Uncleared derivatives $ 170 $ (164 ) $ 6 Cleared derivatives 18 (18 ) — Total $ 188 $ (182 ) $ 6 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral. 2 To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with gross amount of netting adjustments and cash collateral. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposit Liabilities | The following table details the Bank’s interest bearing and non-interest bearing deposits (dollars in millions): December 31, 2018 2017 Interest-bearing Demand and overnight $ 823 $ 745 Term 153 268 Non-interest-bearing Demand 94 94 Total $ 1,070 $ 1,107 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Discount Notes | The following table summarizes the Bank’s discount notes (dollars in millions): December 31, 2018 December 31, 2017 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 43,052 2.34 % $ 36,740 1.20 % Discounts and concessions 1 (173 ) (58 ) Total $ 42,879 $ 36,682 1 Concessions represent fees paid to dealers in connection with the issuance of certain consolidated obligation discount notes. |
Bonds by Contractual Maturity | The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): December 31, Year of Contractual Maturity or Next Call Date 2018 2017 Due in one year or less $ 55,672 $ 53,196 Due after one year through two years 22,696 31,059 Due after two years through three years 9,333 3,192 Due after three years through four years 1,656 7,032 Due after four years through five years 1,864 1,282 Thereafter 2,803 3,423 Total par value $ 94,024 $ 99,184 December 31, 2018 December 31, 2017 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 53,247 2.08 % $ 50,077 1.32 % Due after one year through two years 22,326 2.50 32,249 1.43 Due after two years through three years 9,478 1.97 3,177 2.84 Due after three years through four years 1,881 2.53 7,422 1.69 Due after four years through five years 2,224 2.58 1,507 2.42 Thereafter 4,868 3.51 4,752 3.10 Total par value 94,024 2.26 % 99,184 1.54 % Premiums 152 193 Discounts and concessions 1 (48 ) (60 ) Fair value hedging adjustments (356 ) (424 ) Total $ 93,772 $ 98,893 |
Bonds by Call Feature | The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): December 31, 2018 2017 Non-callable or non-putable $ 89,549 $ 97,196 Callable 4,475 1,988 Total par value $ 94,024 $ 99,184 |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Affordable Housing Program [Abstract] | |
AHP Rollforward | The following table presents a rollforward of the Bank’s AHP liability (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Balance, beginning of year $ 142 $ 116 $ 62 Assessments 53 60 75 Disbursements, net 1 (42 ) (34 ) (21 ) Balance, end of year $ 153 $ 142 $ 116 1 Includes $2 million |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital [Abstract] | |
MRCS by Contractual Redemption | The following table summarizes changes in mandatorily redeemable capital stock (dollars in millions): For the Years Ended December 31, 2018 2017 2016 Balance, beginning of period $ 385 $ 664 $ 103 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 53 44 742 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (183 ) (323 ) (181 ) Balance, end of period $ 255 $ 385 $ 664 December 31, Year of Contractual Redemption 1 2018 2017 Due in one year or less $ 2 $ 4 Due after one year through two years — 2 Due after two years through three years 1 — Due after three years through four years 10 1 Due after four years through five years 18 22 Thereafter 2 210 341 Past contractual redemption date due to outstanding activity with the Bank 14 15 Total $ 255 $ 385 1 At the Bank’s election, the mandatorily redeemable capital stock may be redeemed prior to the expiration of the five year redemption period that commences on the date of the notice of redemption, or in the case of captive insurance company members, on the date of the membership termination. 2 Represents mandatorily redeemable capital stock resulting from the Finance Agency rule previously discussed that makes captive insurance companies ineligible for FHLBank membership. The related mandatorily redeemable capital stock is not required to be redeemed until five years after the member’s termination. |
Accumulated Other Comprehensive Income | The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Notes 5) Pension and postretirement benefits (Note 16) Total AOCI Balance, December 31, 2015 $ (82 ) $ (2 ) $ (84 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 68 — 68 Reclassification from AOCI to net income Amortization - pension and postretirement — (2 ) (2 ) Net current period other comprehensive income (loss) 68 (2 ) 66 Balance, December 31, 2016 (14 ) (4 ) (18 ) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 132 — 132 Net current period other comprehensive income (loss) 132 — 132 Balance, December 31, 2017 118 (4 ) 114 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (31 ) — (31 ) Reclassification from AOCI to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) (31 ) 1 (30 ) Balance, December 31, 2018 $ 87 $ (3 ) $ 84 |
Regulatory Capital Requirements | The following table shows the Bank’s compliance with the Finance Agency’s regulatory capital requirements (dollars in millions) as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 1,146 $ 7,719 $ 1,041 $ 7,292 Regulatory capital $ 5,861 $ 7,719 $ 5,804 $ 7,292 Leverage capital $ 7,326 $ 11,579 $ 7,255 $ 10,937 Capital-to-assets ratio 4.00 % 5.27 % 4.00 % 5.03 % Leverage ratio 5.00 % 7.90 % 5.00 % 7.54 % |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Multiemployer Plans, Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Funded Status [Table Text Block] | The following table summarizes the net pension cost and funded status of the Pentegra DB Plan (dollars in millions): 2018 2017 2016 Net pension cost 1 $ 1 $ — $ 4 Pentegra DB Plan’s funded status as of July 1 109.86 % 111.30 % 104.12 % Des Moines Bank DB Plan’s funded status as of July 1 107.53 % 106.65 % 106.67 % Seattle Bank DB Plan’s funded status as of July 1 106.00 % 109.81 % 108.16 % 1 Represents the net pension cost charged to compensation and benefits expense in the Statements of Income for the years ended December 31, 2018 , 2017 , and 2016 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option, Disclosures [Table Text Block] | |
Fair Value Summary | The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at December 31, 2018 (dollars in millions). The Bank records trading securities, AFS securities, derivative assets, derivative liabilities, and certain other assets at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio on a non-recurring basis. The Bank records all other financial assets and liabilities at amortized cost. The fair values do 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 assets and liabilities. Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Total Assets Cash and due from banks $ 119 $ 119 $ — $ — $ — $ 119 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 4,700 — 4,700 — — 4,700 Federal funds sold 4,150 — 4,150 — — 4,150 Trading securities 915 — 915 — — 915 Available-for-sale securities 19,019 — 19,019 — — 19,019 Held-to-maturity securities 2,992 — 3,011 10 — 3,021 Advances 106,323 — 106,317 — — 106,317 Mortgage loans held for portfolio, net 7,835 — 7,749 57 — 7,806 Accrued interest receivable 290 — 290 — — 290 Derivative assets, net 58 — 104 — (46 ) 58 Other assets 27 27 — — — 27 Liabilities Deposits (1,070 ) — (1,070 ) — — (1,070 ) Borrowings from other FHLBanks (500 ) — (500 ) — — (500 ) Consolidated obligations Discount notes (42,879 ) — (42,870 ) — — (42,870 ) Bonds (93,772 ) — (93,828 ) — — (93,828 ) Total consolidated obligations (136,651 ) — (136,698 ) — — (136,698 ) Mandatorily redeemable capital stock (255 ) (255 ) — — — (255 ) Accrued interest payable (268 ) — (268 ) — — (268 ) Derivative liabilities, net (9 ) — (139 ) — 130 (9 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at December 31, 2017 (dollars in millions): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 503 $ 503 $ — $ — $ — $ 503 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 4,600 — 4,600 — — 4,600 Federal funds sold 4,250 — 4,250 — — 4,250 Trading securities 1,177 — 1,177 — — 1,177 Available-for-sale securities 20,796 — 20,796 — — 20,796 Held-to-maturity securities 3,628 — 3,674 12 — 3,686 Advances 102,613 — 102,708 — — 102,708 Mortgage loans held for portfolio, net 7,096 — 7,124 64 — 7,188 Accrued interest receivable 223 — 223 — — 223 Derivative assets, net 100 — 97 — 3 100 Other assets 28 28 — — — 28 Liabilities Deposits (1,107 ) — (1,107 ) — — (1,107 ) Borrowing from other FHLBanks (600 ) — (600 ) — — (600 ) Consolidated obligations Discount notes (36,682 ) — (36,674 ) — — (36,674 ) Bonds (98,893 ) — (99,150 ) — — (99,150 ) Total consolidated obligations (135,575 ) — (135,824 ) — — (135,824 ) Mandatorily redeemable capital stock (385 ) (385 ) — — — (385 ) Accrued interest payable (210 ) — (210 ) — — (210 ) Derivative liabilities, net (6 ) — (188 ) — 182 (6 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. To conform with current financial statement presentation, $313 million |
Recurring Fair Value | The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value in the Statements of Condition a t December 31, 2018 (dollar s in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. obligations $ — $ 159 $ — $ — $ 159 GSE and Tennessee Valley Authority obligations — 57 — — 57 Other non-MBS — 266 — — 266 GSE multifamily MBS — 433 — — 433 Total trading securities — 915 — — 915 Available-for-sale securities U.S. obligations — 2,602 — — 2,602 GSE and Tennessee Valley Authority obligations — 1,038 — — 1,038 State or local housing agency obligations — 814 — — 814 Other non-MBS — 275 — — 275 U.S. obligations single-family MBS — 4,483 — — 4,483 GSE single-family MBS — 796 — — 796 GSE multifamily MBS — 9,011 — — 9,011 Total available-for-sale securities — 19,019 — — 19,019 Derivative assets, net Interest-rate related — 104 — (46 ) 58 Other assets 27 — — — 27 Total recurring assets at fair value $ 27 $ 20,038 $ — $ (46 ) $ 20,019 Liabilities Derivative liabilities, net Interest-rate related — (139 ) — 130 (9 ) Total recurring liabilities at fair value $ — $ (139 ) $ — $ 130 $ (9 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value in the Statements of Condition at December 31, 2017 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities U.S. obligations $ — $ 197 $ — $ — $ 197 GSE and Tennessee Valley Authority obligations — 260 — — 260 Other non-MBS — 272 — — 272 GSE multifamily MBS — 448 — — 448 Total trading securities — 1,177 — — 1,177 Available-for-sale securities U.S. obligations — 3,099 — — 3,099 GSE and Tennessee Valley Authority obligations — 1,236 — — 1,236 State or local housing agency obligations — 934 — — 934 Other non-MBS — 278 — — 278 U.S. obligations single-family MBS — 3,726 — — 3,726 GSE single-family MBS — 988 — — 988 GSE multifamily MBS — 10,535 — — 10,535 Total available-for-sale securities — 20,796 — — 20,796 Derivative assets, net Interest-rate related — 97 — 3 100 Other assets 28 — — — 28 Total recurring assets at fair value $ 28 $ 22,070 $ — $ 3 $ 22,101 Liabilities Derivative liabilities, net Interest-rate related — (188 ) — 182 (6 ) Total recurring liabilities at fair value $ — $ (188 ) $ — $ 182 $ (6 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. To conform with current financial statement presentation, $313 million in variation margin has been allocated to the individual derivative instruments as of December 31, 2017. Previously, this amount was included with netting adjustments and cash collateral. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Commitments | The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): December 31, 2018 December 31, 2017 Expire within one year Expire after one year Total Total Standby letters of credit 1 $ 8,924 $ 170 $ 9,094 $ 8,594 Standby bond purchase agreements 229 446 675 755 Commitments to purchase mortgage loans 101 — 101 72 Commitments to issue bonds 60 — 60 — Commitments to fund advances 40 10 50 1,138 1 Excludes commitments to issue standby letters of credit of $3 million and $7 million at December 31, 2018 and 2017 |
Activities with Stockholders (T
Activities with Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Directors' Financial Institutions | The following table summarizes the Bank’s outstanding transactions with Directors’ Financial Institutions (dollars in millions): December 31, 2018 December 31, 2017 Amount % of Total Amount % of Total Advances $ 6,991 7 $ 6,036 6 Mortgage loans 96 1 68 1 Deposits 12 1 39 4 Capital stock 328 6 297 5 |
Business Concentrations | At December 31, 2018 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans 4 Income 2 Wells Fargo Bank, N.A. $ 1,994 35 $ 49,575 $ 25 $ 1,167 Superior Guaranty Insurance Company 3 18 — — 420 — Total $ 2,012 35 $ 49,575 $ 445 $ 1,167 1 Pursuant to applicable Finance Agency regulations, the Bank’s voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank’s capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2018 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. 4 PFI rights and obligations associated with MPP mortgage loans of $27 million were transferred from Wells Fargo Trust Company, N.A. (formerly Wells Fargo Bank Northwest N.A.) to Wells Fargo Bank, N.A. during the year ended December 31, 2018. At December 31, 2017 , the Bank had the following business concentrations with stockholders (dollars in millions): Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,843 34 $ 45,825 $ — $ 834 Superior Guaranty Insurance Company 3 22 — — 520 — Wells Fargo Bank Northwest N.A. 3 1 — — 30 — Total $ 1,866 34 $ 45,825 $ 550 $ 834 1 Pursuant to applicable Finance Agency regulations, the Bank’s voting structure limits the voting rights of these stockholders and other members holding a significant amount of the Bank’s capital stock. 2 Represents interest income earned on advances during the year ended December 31, 2017 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 3 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. were affiliates of Wells Fargo Bank, N.A. at December 31, 2017. |
Activities with Other FHLBanks
Activities with Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Activities with Other FHLBanks [Abstract] | |
Loans to Other Federal Home Loan Banks | The following table summarizes loan activity to other FHLBanks during the year s ended December 31, 2018 , 2017 , and 2016 (dollars in millions): Other FHLBank Beginning Balance Loans Principal Repayment Ending Balance 2018 Boston $ — $ 800 $ (800 ) $ — San Francisco — 300 (300 ) — Dallas — 500 (500 ) — $ — $ 1,600 $ (1,600 ) $ — 2017 Topeka $ — $ 50 $ (50 ) $ — San Francisco 200 — (200 ) — $ 200 $ 50 $ (250 ) $ — 2016 Cincinnati $ — $ 100 $ (100 ) $ — San Francisco — 200 — 200 $ — $ 300 $ (100 ) $ 200 |
Loans from Other Federal Home Loan Banks | The following table summarizes borrowing activity from other FHLBanks during the year s ended December 31, 2018 , 2017 , and 2016 (dollars in millions): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2018 Atlanta $ 200 $ 500 $ (200 ) $ 500 Boston 400 — (400 ) — San Francisco — 500 (500 ) — $ 600 $ 1,000 $ (1,100 ) $ 500 2017 Atlanta $ — $ 200 $ — $ 200 Boston — 400 — 400 $ — $ 600 $ — $ 600 2016 Atlanta $ — $ 300 $ (300 ) $ — Boston — 100 (100 ) — Chicago — 200 (200 ) — Cincinnati — 300 (300 ) — Indianapolis — 300 (300 ) — New York — 300 (300 ) — San Francisco — 500 (500 ) — $ — $ 2,000 $ (2,000 ) $ — |
Background Information (Details
Background Information (Details) | Dec. 31, 2018bank |
Background Information [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Premises and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation and Amortization | $ 27 | $ 23 | |
Depreciation and Amortization Expense | 9 | 6 | $ 5 |
Property, Plant and Equipment, Net | $ 76 | $ 52 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 40 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Financial Instrument Meeting Netting Requirements (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Purchased under Agreements to Resell | $ 4,700 | $ 4,600 |
Recently Adopted and Issued A_2
Recently Adopted and Issued Accounting Guidance Recently Adopted and Issued Accounting Guidance (Details) $ in Millions | Jan. 01, 2019USD ($) |
Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 3 |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Due from Banks [Abstract] | ||
Average Collected Cash Balances with Commercial Banks, Federal Home Loan Bank | $ 63 | $ 139 |
Cash Pass-through Reserve, Federal Home Loan Bank | $ 30 | $ 26 |
Trading Securities (Major Secur
Trading Securities (Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | $ 915 | $ 1,177 |
U.S. Obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | 159 | 197 |
GSE Obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | 57 | 260 |
Other [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | 266 | 272 |
Non-Mortgage-Backed Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | 482 | 729 |
Multifamily [Member] | GSE MBS [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading Securities | $ 433 | $ 448 |
Trading Securities (Net Gains (
Trading Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (15) | $ 1 | $ 3 |
Available-for-Sale Securities_2
Available-for-Sale Securities (Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 18,932 | $ 20,678 |
Gross Unrealized Gains | 112 | 131 |
Gross Unrealized Losses | (25) | (13) |
Fair Value | 19,019 | 20,796 |
U.S. Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,597 | 3,096 |
Gross Unrealized Gains | 8 | 8 |
Gross Unrealized Losses | (3) | (5) |
Fair Value | 2,602 | 3,099 |
GSE Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,012 | 1,197 |
Gross Unrealized Gains | 26 | 39 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,038 | 1,236 |
State or Local Housing Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 820 | 935 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (1) |
Fair Value | 814 | 934 |
Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 264 | 269 |
Gross Unrealized Gains | 11 | 9 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 275 | 278 |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,693 | 5,497 |
Gross Unrealized Gains | 45 | 56 |
Gross Unrealized Losses | (9) | (6) |
Fair Value | 4,729 | 5,547 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,239 | 15,181 |
Gross Unrealized Gains | 67 | 75 |
Gross Unrealized Losses | (16) | (7) |
Fair Value | 14,290 | 15,249 |
Single Family [Member] | U.S. Obligations MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,459 | 3,716 |
Gross Unrealized Gains | 25 | 11 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 4,483 | 3,726 |
Single Family [Member] | GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 794 | 983 |
Gross Unrealized Gains | 6 | 7 |
Gross Unrealized Losses | (4) | (2) |
Fair Value | 796 | 988 |
Multifamily [Member] | GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,986 | 10,482 |
Gross Unrealized Gains | 36 | 57 |
Gross Unrealized Losses | (11) | (4) |
Fair Value | $ 9,011 | $ 10,535 |
Available-for-Sale Securities_3
Available-for-Sale Securities (Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 4,744 | $ 592 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (10) | (3) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,824 | 5,134 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (15) | (10) |
Continuous Unrealized Loss Position, Fair Value | 6,568 | 5,726 |
Continuous Unrealized Loss Position, Unrealized Losses | (25) | (13) |
U.S. Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 533 | 29 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 311 | 1,783 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (2) | (5) |
Continuous Unrealized Loss Position, Fair Value | 844 | 1,812 |
Continuous Unrealized Loss Position, Unrealized Losses | (3) | (5) |
State or Local Housing Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 211 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 586 | 655 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (6) | (1) |
Continuous Unrealized Loss Position, Fair Value | 797 | 661 |
Continuous Unrealized Loss Position, Unrealized Losses | (6) | (1) |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 744 | 35 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 897 | 2,438 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (8) | (6) |
Continuous Unrealized Loss Position, Fair Value | 1,641 | 2,473 |
Continuous Unrealized Loss Position, Unrealized Losses | (9) | (6) |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 4,000 | 557 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9) | (3) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 927 | 2,696 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (7) | (4) |
Continuous Unrealized Loss Position, Fair Value | 4,927 | 3,253 |
Continuous Unrealized Loss Position, Unrealized Losses | (16) | (7) |
Single Family [Member] | U.S. Obligations MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 646 | 111 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 887 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | (1) |
Continuous Unrealized Loss Position, Fair Value | 646 | 998 |
Continuous Unrealized Loss Position, Unrealized Losses | (1) | (1) |
Single Family [Member] | GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 115 | 222 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (2) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 209 | 53 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (4) | 0 |
Continuous Unrealized Loss Position, Fair Value | 324 | 275 |
Continuous Unrealized Loss Position, Unrealized Losses | (4) | (2) |
Multifamily [Member] | GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,239 | 224 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (8) | (1) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 718 | 1,756 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (3) | (3) |
Continuous Unrealized Loss Position, Fair Value | 3,957 | 1,980 |
Continuous Unrealized Loss Position, Unrealized Losses | $ (11) | $ (4) |
Available-for-Sale Securities_4
Available-for-Sale Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 18,932 | $ 20,678 |
Fair Value | 19,019 | 20,796 |
Non-Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturities, Due in One Year or Less, Amortized Cost | 74 | 158 |
Contractual Maturities, Due in One Year or Less, Fair Value | 74 | 159 |
Contractual Maturities, Due after One Year through Five Years, Amortized Cost | 1,314 | 750 |
Contractual Maturities, Due after One Year through Five Years, Fair Value | 1,323 | 755 |
Contractual Maturities, Due after Five Years through Ten Years, Amortized Cost | 2,497 | 3,574 |
Contractual Maturities, Due after Five Years through Ten Years, Fair Value | 2,506 | 3,583 |
Contractual Maturities, Due after Ten Years, Amortized Cost | 808 | 1,015 |
Contractual Maturities, Due after Ten Years, Fair Value | 826 | 1,050 |
Amortized Cost | 4,693 | 5,497 |
Fair Value | 4,729 | 5,547 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,239 | 15,181 |
Fair Value | $ 14,290 | $ 15,249 |
Available-for-Sale Securities_5
Available-for-Sale Securities (Net Gains from Sale of AFS Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Abstract] | |||
AFS Securities, Sales Proceeds | $ 0 | $ 0 | $ 287,000 |
Available-for-sale Securities, Gross Realized Gains | $ 0 | $ 0 | $ 0 |
Held-to-Maturity Securities (Ma
Held-to-Maturity Securities (Major Security Types) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 2,992 | $ 3,628 |
Gross Unrealized Gains | 53 | 74 |
Gross Unrealized Losses | (24) | (16) |
Fair Value | 3,021 | 3,686 |
GSE Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 389 | 393 |
Gross Unrealized Gains | 48 | 65 |
Gross Unrealized Losses | (2) | 0 |
Fair Value | 435 | 458 |
State or Local Housing Agency Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 391 | 454 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | (2) |
Fair Value | 391 | 454 |
Non-Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 780 | 847 |
Gross Unrealized Gains | 49 | 67 |
Gross Unrealized Losses | (3) | (2) |
Fair Value | 826 | 912 |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,212 | 2,781 |
Gross Unrealized Gains | 4 | 7 |
Gross Unrealized Losses | (21) | (14) |
Fair Value | 2,195 | 2,774 |
Single Family [Member] | U.S. Obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 9 | 15 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9 | 15 |
Single Family [Member] | GSE MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,192 | 2,752 |
Gross Unrealized Gains | 4 | 7 |
Gross Unrealized Losses | (21) | (14) |
Fair Value | 2,175 | 2,745 |
Commercial Mortgage Backed Securities [Member] | U.S. Obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1 | 2 |
Residential Mortgage Backed Securities [Member] | Private-Label MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 10 | 12 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 10 | $ 12 |
Held-to-Maturity Securities (Un
Held-to-Maturity Securities (Unrealized Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 733 | $ 52 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (3) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,167 | 1,605 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (21) | (16) |
Continuous Unrealized Loss Position, Fair Value | 1,900 | 1,657 |
Continuous Unrealized Loss Position, Unrealized Losses | (24) | (16) |
GSE Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 69 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | |
Continuous Unrealized Loss Position, Fair Value | 69 | |
Continuous Unrealized Loss Position, Unrealized Losses | (2) | |
State or Local Housing Agency Obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 50 | 2 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 152 | 168 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1) | (2) |
Continuous Unrealized Loss Position, Fair Value | 202 | 170 |
Continuous Unrealized Loss Position, Unrealized Losses | (1) | (2) |
Non-Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 119 | 2 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 152 | 168 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1) | (2) |
Continuous Unrealized Loss Position, Fair Value | 271 | 170 |
Continuous Unrealized Loss Position, Unrealized Losses | (3) | (2) |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 614 | 50 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,015 | 1,437 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (20) | (14) |
Continuous Unrealized Loss Position, Fair Value | 1,629 | 1,487 |
Continuous Unrealized Loss Position, Unrealized Losses | (21) | (14) |
Single Family [Member] | U.S. Obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3 | 7 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 1 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | 3 | 8 |
Continuous Unrealized Loss Position, Unrealized Losses | 0 | 0 |
Single Family [Member] | GSE MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 611 | 42 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,008 | 1,427 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (20) | (14) |
Continuous Unrealized Loss Position, Fair Value | 1,619 | 1,469 |
Continuous Unrealized Loss Position, Unrealized Losses | (21) | (14) |
Commercial Mortgage Backed Securities [Member] | U.S. Obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 1 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1 | 1 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | 1 | 2 |
Continuous Unrealized Loss Position, Unrealized Losses | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Private-Label MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 0 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6 | 8 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | 6 | 8 |
Continuous Unrealized Loss Position, Unrealized Losses | $ 0 | $ 0 |
Held-to-Maturity Securities (Co
Held-to-Maturity Securities (Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 2,992 | $ 3,628 |
Fair Value | 3,021 | 3,686 |
Non-Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Contractual Maturities, Next Rolling Twelve Months, Amortized Cost | 9 | 20 |
Contractual Maturities, Next Rolling Twelve Months, Fair Value | 9 | 20 |
Contractual Maturities, Due after One Year through Five Years, Amortized Cost | 64 | 72 |
Contractual Maturities, Due after One Year through Five Years, Fair Value | 65 | 72 |
Contractual Maturities, Rolling Year Six Through Ten, Amortized Cost | 332 | 344 |
Contractual Maturities, Rolling Year Six Through Ten, Fair Value | 353 | 376 |
Contractual Maturities, Due after Ten Years, Amortized Cost | 375 | 411 |
Contractual Maturities, Due after Ten Years, Fair Value | 399 | 444 |
Amortized Cost | 780 | 847 |
Fair Value | 826 | 912 |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,212 | 2,781 |
Fair Value | $ 2,195 | $ 2,774 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Advances | $ 106,323 | $ 102,613 |
Advances, Par Value | $ 106,413 | 102,678 |
Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 1 day | |
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 year | |
Maximum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate | 30 years | |
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 20 years | |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances, Par Value | $ 35,600 | 27,000 |
Federal Home Loan Bank, Advances, Putable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances, Par Value | 283 | 405 |
Wells Fargo Bank N.A. [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances | $ 49,575 | $ 45,825 |
Federal Home Loan Bank Advances, Percent | 47.00% | 45.00% |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Advances [Abstract] | ||
Overdrawn Demand Deposit Accounts | $ 2 | $ 1 |
Advances, Maturing in Next Rolling Twelve Months | 50,561 | 45,310 |
Advances, Maturing in Rolling Year Two | 23,946 | 17,094 |
Advances, Maturing in Rolling Year Three | 17,582 | 14,222 |
Advances, Maturing in Rolling Year Four | 4,091 | 17,561 |
Advances, Maturing in Rolling Year Five | 6,814 | 3,089 |
Advances, Maturing after Rolling Year Five | 3,417 | 5,401 |
Advances, Par Value | $ 106,413 | $ 102,678 |
Advances, Weighted Average Interest Rate on Overdrawn Demand Deposit | 3.63% | 3.63% |
Advances, Weighted Average Interest Rate, Maturing in Next Twelve Rolling Months | 2.61% | 1.62% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Two | 2.61% | 1.79% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Three | 2.73% | 1.64% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Four | 2.73% | 1.79% |
Advances, Weighted Average Interest Rate, Maturing in Rolling Year Five | 2.76% | 1.91% |
Advances, Weighted Average Interest Rate, Maturing after Rolling Year Five | 2.96% | 2.28% |
Advances, Weighted Average Interest Rate | 2.66% | 1.73% |
Premiums | $ 38 | $ 53 |
Discounts | (8) | (12) |
Federal Home Loan Bank, Advances, Valuation Adjustments for Hedging Activities | (120) | (106) |
Total Advances | 106,323 | 102,613 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Next Rolling Twelve Months | 77,931 | 69,971 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Two | 11,087 | 16,539 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Three | 10,423 | 3,809 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Four | 2,357 | 8,511 |
Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Five | 2,444 | 1,276 |
Advances, Earlier of Contractual Maturity or Next Call Date, after Rolling Year Five | 2,169 | 2,571 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months | 50,617 | 45,372 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two | 24,060 | 17,094 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three | 17,628 | 14,222 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four | 4,078 | 17,520 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five | 6,722 | 3,073 |
Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five | $ 3,306 | $ 5,396 |
Advances (Prepayment Fees) (Det
Advances (Prepayment Fees) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Advances [Abstract] | |||
Prepayment Fees on Advances, Net | $ 8 | $ 2 | $ 8 |
Mortgage Loans Held for Portf_3
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 7,734 | $ 7,001 |
Loans and Leases Receivable, Unamortized Premiums | 105 | 98 |
Loans and Leases Receivable, Unamortized Discounts | (5) | (6) |
Loans and Leases Receivable, Hedging Basis Adjustment | 2 | 5 |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 7,836 | 7,098 |
Allowance for credit losses on mortgage loans (Note 11) | (1) | (2) |
Loans and Leases Receivable, Net Amount | 7,835 | 7,096 |
Loans Receivable With Fixed Rates Of Interest Long Term [Member] | Single Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | 6,860 | 5,998 |
Loans Receivable With Fixed Rates Of Interest Medium Term [Member] | Single Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 874 | $ 1,003 |
Mortgage Loans Held for Portf_4
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 7,734 | $ 7,001 |
Conventional Mortgage Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | 7,231 | 6,472 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 503 | $ 529 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impairment Methodology) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Recorded Investment of Mortgage Loans | $ 7,876 | $ 7,134 |
Conventional Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1 | 2 |
Recorded Investment, Collectively Evaluated for Impairment | 7,306 | 6,530 |
Recorded Investment, Individually Evaluated for Impairment | 54 | 61 |
Total Recorded Investment of Mortgage Loans | $ 7,360 | $ 6,591 |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | $ 117 | $ 146 |
Total Current Loans | 7,759 | 6,988 |
Total Recorded Investment of Mortgage Loans | 7,876 | 7,134 |
Mortgage Loans in Process of Foreclosure, Amount | $ 10 | $ 14 |
Serious Delinquency Rate | 0.00% | 1.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 8 | $ 11 |
Non-Accrual Mortgage Loans | 36 | 48 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 66 | 77 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 19 | 22 |
Financing Receivables, 90 to 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 15 | 20 |
Financing Receivables, Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 17 | 27 |
Conventional Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 87 | 110 |
Total Current Loans | 7,273 | 6,481 |
Total Recorded Investment of Mortgage Loans | 7,360 | 6,591 |
Mortgage Loans in Process of Foreclosure, Amount | $ 8 | $ 12 |
Serious Delinquency Rate | 0.00% | 1.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 0 | $ 0 |
Non-Accrual Mortgage Loans | 36 | 48 |
Conventional Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 49 | 58 |
Conventional Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 14 | 16 |
Conventional Mortgage Loans [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 11 | 15 |
Conventional Mortgage Loans [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 13 | 21 |
Government Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 30 | 36 |
Total Current Loans | 486 | 507 |
Total Recorded Investment of Mortgage Loans | 516 | 543 |
Mortgage Loans in Process of Foreclosure, Amount | $ 2 | $ 2 |
Serious Delinquency Rate | 2.00% | 2.00% |
Past Due 90 Days or More and Still Accruing Interest | $ 8 | $ 11 |
Non-Accrual Mortgage Loans | 0 | 0 |
Government Mortgage Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 17 | 19 |
Government Mortgage Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 5 | 6 |
Government Mortgage Loans [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | 4 | 5 |
Government Mortgage Loans [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due Loans | $ 4 | $ 6 |
Allowance for Credit Losses (In
Allowance for Credit Losses (Individually Evaluated Impaired Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 0 | $ 0 |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 58 | $ 66 | $ 70 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | $ 48,836 | $ 53,665 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 104 | 97 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 139 | 188 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (130) | (182) |
Derivative Asset, Net | 58 | 100 |
Derivative Liability, Net | 9 | 6 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 37 | 6 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 121 | 191 |
variation margin for daily settled contracts | 313 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | 47,316 | 52,120 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 83 | 77 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 115 | 151 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | 1,520 | 1,545 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 21 | 20 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 24 | 37 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | 1,321 | 1,407 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 20 | 20 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 24 | 37 |
Mortgage-Backed Securities [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | 98 | 66 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 |
Mortgage Receivable [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Derivatives | 101 | 72 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 1 | 0 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | $ 3 | $ 11 | $ 13 |
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 13 | (2) | (6) |
Derivative Instruments, Other Gain (Loss) | 3 | 3 | 0 |
Net (Losses) Gains on Derivatives and Hedging Activities | 19 | 12 | 7 |
Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | 3 | 11 | 13 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 16 | 10 | 12 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Net Interest Settlements [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (3) | (12) | (18) |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Mortgage-Backed Securities [Member] | Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 2 | (2) | 2 |
Mortgage Receivable [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | $ (2) | $ 2 | $ (2) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Derivatives in Statement of Income and Impact on Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 203 | $ 85 | $ (113) |
Gains (Losses) on Hedged Items | (200) | (74) | 126 |
Net Fair Value Hedge Ineffectiveness | 3 | 11 | 13 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | (192) | (157) | (206) |
Amortization and Accretion of Off-Market Derivatives | 1 | 13 | 28 |
Consolidated Obligation Bonds [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 68 | (95) | (359) |
Gains (Losses) on Hedged Items | (66) | 90 | 348 |
Net Fair Value Hedge Ineffectiveness | 2 | (5) | (11) |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | (217) | 6 | 76 |
Advances [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 23 | 94 | 147 |
Gains (Losses) on Hedged Items | (23) | (92) | (142) |
Net Fair Value Hedge Ineffectiveness | 0 | 2 | 5 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | 47 | (70) | (140) |
Available-for-Sale Securities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 112 | 86 | 99 |
Gains (Losses) on Hedged Items | (111) | (72) | (80) |
Net Fair Value Hedge Ineffectiveness | 1 | 14 | 19 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | $ (22) | $ (93) | $ (142) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Credit Risk Exposure) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 1 |
Collateral Already Posted, Aggregate Fair Value | $ 0 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets and Liabilities [Line Items] | ||
variation margin for daily settled contracts | $ 313 | |
Derivative Asset, Fair Value, Gross Asset | $ 103 | 97 |
Derivative Liability, Fair Value, Gross Liability | 139 | 188 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (130) | (182) |
Derivative Asset, Net | 58 | 100 |
Derivative Liability, Net | 9 | 6 |
Over the Counter [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Not Subject to Master Netting Arrangement | 1 | 0 |
Derivative Asset, Fair Value, Gross Asset | 96 | 88 |
Derivative Liability, Fair Value, Gross Liability | 119 | 170 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (96) | (87) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (110) | (164) |
Derivative Asset, Net | 1 | |
Derivative Liability, Net | 9 | 6 |
Exchange Cleared [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 7 | 9 |
Derivative Liability, Fair Value, Gross Liability | 20 | 18 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 50 | 90 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (20) | (18) |
Derivative Asset, Net | 57 | 99 |
Derivative Liability, Net | $ 0 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits [Abstract] | |||
Weighted Average Rate, Interest-bearing Domestic Deposits, over Time | 1.48% | 0.59% | 0.08% |
Interest-Bearing Domestic Deposit, Demand | $ 823 | $ 745 | |
Interest-Bearing Domestic Deposit, Time Deposits | 153 | 268 | |
Non-Interest-Bearing Domestic Deposit, Demand | 94 | 94 | |
Total deposits | $ 1,070 | $ 1,107 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 894.5 | $ 898.3 |
FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 1,031.6 | $ 1,034.2 |
Consolidated Obligations (Disco
Consolidated Obligations (Discount Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Total | $ 42,879 | $ 36,682 |
Consolidated Obligation Discount Notes [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Face Amount | $ 43,052 | $ 36,740 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.34% | 1.20% |
Debt Instrument, Unamortized Discount | $ (173) | $ (58) |
Consolidated Obligations (Bonds
Consolidated Obligations (Bonds) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total par value | $ 94,024 | $ 99,184 |
Total | 93,772 | 98,893 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | $ 53,247 | $ 50,077 |
Due in one year or less, Weighted Average Interest Rate | 2.08% | 1.32% |
Due after one year through two years | $ 22,326 | $ 32,249 |
Due after one year through two years, Weighted Average Interest Rate | 2.50% | 1.43% |
Due after two years through three years | $ 9,478 | $ 3,177 |
Due after two years through three years, Weighted Average Interest Rate | 1.97% | 2.84% |
Due after three years through four years | $ 1,881 | $ 7,422 |
Due after three years through four years, Weighted Average Interest Rate | 2.53% | 1.69% |
Due after four years through five years | $ 2,224 | $ 1,507 |
Due after four years through five years, Weighted Average Interest Rate | 2.58% | 2.42% |
Thereafter | $ 4,868 | $ 4,752 |
Thereafter, Weighted Average Interest Rate | 3.51% | 3.10% |
Total par value | $ 94,024 | $ 99,184 |
Total par value, Weighted Average Interest Rate | 2.26% | 1.54% |
Premiums | $ 152 | $ 193 |
Debt Instrument, Unamortized Discount | (48) | (60) |
Fair value hedging adjustments | (356) | (424) |
Earlier of Contractual Maturity or Next Call Date [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 55,672 | 53,196 |
Due after one year through two years | 22,696 | 31,059 |
Due after two years through three years | 9,333 | 3,192 |
Due after three years through four years | 1,656 | 7,032 |
Due after four years through five years | 1,864 | 1,282 |
Thereafter | $ 2,803 | $ 3,423 |
Consolidated Obligations (Bon_2
Consolidated Obligations (Bonds by Call Features) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total par value | $ 94,024 | $ 99,184 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 94,024 | 99,184 |
Noncallable or Nonputable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 89,549 | 97,196 |
Callable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 4,475 | $ 1,988 |
Affordable Housing Program (Nar
Affordable Housing Program (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Affordable Housing Program [Abstract] | |
Affordable Housing Program, Contribution Requirement, Percentage | 10.00% |
Affordable Housing Program, Contribution Requirement, Amount | $ 100 |
Affordable Housing Program (AHP
Affordable Housing Program (AHP Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Affordable Housing Program [Line Items] | |||
Affordable Housing Program Obligation, Beginning of Year | $ 142 | $ 116 | $ 62 |
Affordable Housing Program Assessments | 53 | 60 | 75 |
Payments for Affordable Housing Programs | (44) | (34) | (21) |
Affordable Housing Program Reimbursement | 2 | ||
Affordable Housing Program Obligation, End of Year | 153 | $ 142 | $ 116 |
AHP DIsbursements, Net of Funds Reimbursed [Member] | |||
Affordable Housing Program [Line Items] | |||
Payments for Affordable Housing Programs | $ (42) |
Capital (Narrative) (Details)
Capital (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 100 | ||
Number of Subclasses of Capital Stock | 2 | ||
Minimum Capital Stock Required to be Held by Members as a Percent of Total Assets at Preceeding Fiscal Year End, Subject to Cap and Floor | 0.12% | ||
Activity Based Capital Stock Required by Members as a Percent of Total Advances and Mortgage Loans Oustanding as Disclosed in the Statement of Condition | 4.00% | ||
Redemption Period Under Bank Capital Plan | 5 years | ||
Written Notice Period Required to Repurchase Excess Membership Capital Stock | 15 days | ||
Excess Capital | $ 0 | $ 0 | |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 53,000,000 | 44,000,000 | $ 742,000,000 |
Repayments of Mandatory Redeemable Capital Securities | (183,000,000) | (323,000,000) | $ (181,000,000) |
Maximum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Federal Home Loan Banks, Membership Requirements, Capital Stock | 10,000,000 | ||
Minimum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Federal Home Loan Banks, Membership Requirements, Capital Stock | $ 10,000 | ||
Captive Insurance Companies [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Repayments of Mandatory Redeemable Capital Securities | $ (148,000,000) |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital [Abstract] | |||||
Financial Instruments Subject to Mandatory Redemption, Redeemable within One year | $ 2 | $ 4 | |||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Two | 0 | 2 | |||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Three | 1 | 0 | |||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Four | 10 | 1 | |||
Financial Instruments Subject to Mandatory Redemption, Redeemable in Year Five | 18 | 22 | |||
Financial Instruments Subject to Mandatory Redemption, Redeemable After Year Five | 210 | 341 | |||
Financial Instruments Subject to Mandatory Redemption, Past Contractual Redemption Date, Due to Outstanding Activity | 14 | 15 | |||
Financial Instruments Subject to Mandatory Redemption | $ 255 | $ 664 | $ 664 | $ 255 | $ 385 |
MRCS Interest Expense | 18 | 17 | 21 | ||
MRCS, Beginning of Year | 385 | 664 | 103 | ||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 53 | 44 | 742 | ||
Net payments for repurchases/redemptions of mandatorily redeemable capital stock | (183) | (323) | (181) | ||
MRCS, End of Year | $ 255 | $ 385 | $ 664 |
Capital (Restricted Retained Ea
Capital (Restricted Retained Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Capital [Abstract] | ||
Joint Capital Enhancement Agreement Percentage | 20.00% | |
Percent of Average Balance of Outstanding Consolidated Obligations Prescribed per the Joint Capital Enhancement Agreement for Each Previous Quarter | 1.00% | |
Retained Earnings, Appropriated | $ 427 | $ 335 |
Capital (Accumulated Other Comp
Capital (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 7,021 | $ 7,401 | $ 5,625 |
OCI, Unrealized Holding Gain (Loss) on Securities | (31) | 132 | 68 |
Total other comprehensive income (loss) | (30) | 132 | 66 |
Ending Balance | 7,548 | 7,021 | 7,401 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 118 | (14) | (82) |
OCI, Unrealized Holding Gain (Loss) on Securities | (31) | 132 | 68 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 0 | 0 | |
Total other comprehensive income (loss) | (31) | 132 | 68 |
Ending Balance | 87 | 118 | (14) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (4) | (4) | (2) |
OCI, Unrealized Holding Gain (Loss) on Securities | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1 | (2) | |
Total other comprehensive income (loss) | 1 | 0 | (2) |
Ending Balance | (3) | (4) | (4) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 114 | (18) | (84) |
OCI, Unrealized Holding Gain (Loss) on Securities | (31) | 132 | 68 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1 | (2) | |
Total other comprehensive income (loss) | (30) | 132 | 66 |
Ending Balance | $ 84 | $ 114 | $ (18) |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Capital [Abstract] | ||
Number of Finance Agency Regulatory Capital Requirements | 3 | |
Multiplier for Determining Permanent Capital in Leverage Capital Calculation | 1.5 | |
Multiplier for Determining Nonpermanent Capital in Leverage Capital Calculation | 1 | |
Risk-Based Capital, Required | $ 1,146 | $ 1,041 |
Risk-Based Capital, Actual | $ 7,719 | $ 7,292 |
Regulatory Capital Ratio, Required | 4.00% | 4.00% |
Regulatory Capital Ratio, Actual | 5.27% | 5.03% |
Regulatory Capital, Required | $ 5,861 | $ 5,804 |
Regulatory Capital, Actual | $ 7,719 | $ 7,292 |
Leverage Ratio, Required | 5.00% | 5.00% |
Federal Home Loan Bank, Leverage Ratio, Actual | 7.90% | 7.54% |
Leverage Capital, Required | $ 7,326 | $ 7,255 |
Leverage Capital, Actual | $ 11,579 | $ 10,937 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans (Qualified Defined Benefit Multiemployer Plan) (Details) - Multiemployer Plans, Pension [Member] - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 01, 2018 | Jul. 01, 2017 | Jul. 01, 2016 | |
Multiemployer Plans [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1 | $ 0 | $ 4 | |||
Entity Tax Identification Number | 135645888 | |||||
Defined Benefit Plan, Funded Percentage | 109.86% | 111.30% | 104.12% | |||
Federal Home Loan Bank of Des Moines [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
Defined Benefit Plan, Funded Percentage | 107.53% | 106.65% | 106.67% | |||
Federal Home Loan Bank of Seattle [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
Defined Benefit Plan, Funded Percentage | 106.00% | 109.81% | 108.16% |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
variation margin for daily settled contracts | $ 313 | |||
Assets | ||||
Cash and due from banks | $ 119 | 503 | ||
Trading Securities | 915 | 1,177 | ||
Available-for-Sale Securities | 19,019 | 20,796 | ||
Held-to-maturity securities | 2,992 | 3,628 | ||
Held-to-maturity securities, fair value | 3,021 | 3,686 | ||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Accrued interest receivable | 290 | 223 | ||
Derivative Asset, Net | 58 | 100 | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 | ||
Liabilities | ||||
Loans from Other Federal Home Loan Banks | (500) | (600) | ||
Financial Instruments Subject to Mandatory Redemption | (255) | (385) | $ (664) | $ (103) |
Accrued interest payable | (268) | (210) | ||
Derivative Liability, Net | (9) | (6) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 130 | 182 | ||
Carrying Value [Member] | ||||
Assets | ||||
Cash and due from banks | 119 | 503 | ||
Interest-bearing deposits | 1 | 1 | ||
Securities purchased under agreements to resell | 4,700 | 4,600 | ||
Federal funds sold | 4,150 | 4,250 | ||
Trading Securities | 915 | 1,177 | ||
Available-for-Sale Securities | 19,019 | 20,796 | ||
Held-to-maturity securities | 2,992 | 3,628 | ||
Advances | 106,323 | 102,613 | ||
Mortgage loans held for portfolio, net | 7,835 | 7,096 | ||
Accrued interest receivable | 290 | 223 | ||
Derivative Asset, Net | 58 | 100 | ||
Other Assets, Fair Value Disclosure | 27 | 28 | ||
Liabilities | ||||
Deposits | (1,070) | (1,107) | ||
Loans from Other Federal Home Loan Banks | (500) | (600) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (136,651) | (135,575) | ||
Financial Instruments Subject to Mandatory Redemption | (255) | (385) | ||
Accrued interest payable | (268) | (210) | ||
Derivative Liability, Net | (9) | (6) | ||
Estimate of Fair Value Measurement [Member] | ||||
Assets | ||||
Cash and due from banks | 119 | 503 | ||
Interest-bearing deposits | 1 | 1 | ||
Securities purchased under agreements to resell | 4,700 | 4,600 | ||
Federal funds sold | 4,150 | 4,250 | ||
Trading Securities | 915 | 1,177 | ||
Available-for-Sale Securities | 19,019 | 20,796 | ||
Held-to-maturity securities, fair value | 3,021 | 3,686 | ||
Advances | 106,317 | 102,708 | ||
Mortgage loans held for portfolio, net | 7,806 | 7,188 | ||
Accrued interest receivable | 290 | 223 | ||
Derivative Asset, Net | 58 | 100 | ||
Other Assets, Fair Value Disclosure | 27 | 28 | ||
Liabilities | ||||
Deposits | (1,070) | (1,107) | ||
Loans from Other Federal Home Loan Banks | (500) | (600) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (136,698) | (135,824) | ||
Financial Instruments Subject to Mandatory Redemption | (255) | (385) | ||
Accrued interest payable | (268) | (210) | ||
Derivative Liability, Net | (9) | (6) | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Cash and due from banks | 119 | 503 | ||
Interest-bearing deposits | 0 | 0 | ||
Securities purchased under agreements to resell | 0 | 0 | ||
Federal funds sold | 0 | 0 | ||
Trading Securities | 0 | 0 | ||
Available-for-Sale Securities | 0 | 0 | ||
Held-to-maturity securities, fair value | 0 | 0 | ||
Advances | 0 | 0 | ||
Mortgage loans held for portfolio, net | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative Asset, Net | 0 | 0 | ||
Other Assets, Fair Value Disclosure | 27 | 28 | ||
Liabilities | ||||
Deposits | 0 | 0 | ||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||
Financial Instruments Subject to Mandatory Redemption | (255) | (385) | ||
Accrued interest payable | 0 | 0 | ||
Derivative Liability, Net | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Interest-bearing deposits | 1 | 1 | ||
Securities purchased under agreements to resell | 4,700 | 4,600 | ||
Federal funds sold | 4,150 | 4,250 | ||
Trading Securities | 915 | 1,177 | ||
Available-for-Sale Securities | 19,019 | 20,796 | ||
Held-to-maturity securities, fair value | 3,011 | 3,674 | ||
Advances | 106,317 | 102,708 | ||
Mortgage loans held for portfolio, net | 7,749 | 7,124 | ||
Accrued interest receivable | 290 | 223 | ||
Derivative Asset, Net | 104 | 97 | ||
Other Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities | ||||
Deposits | (1,070) | (1,107) | ||
Loans from Other Federal Home Loan Banks | (500) | (600) | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (136,698) | (135,824) | ||
Financial Instruments Subject to Mandatory Redemption | 0 | 0 | ||
Accrued interest payable | (268) | (210) | ||
Derivative Liability, Net | (139) | (188) | ||
Fair Value, Inputs, Level 3 [Member] | ||||
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 | 0 | ||
Available-for-Sale Securities | 0 | 0 | ||
Held-to-maturity securities, fair value | 10 | 12 | ||
Advances | 0 | 0 | ||
Mortgage loans held for portfolio, net | 57 | 64 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative Asset, Net | 0 | 0 | ||
Other Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities | ||||
Deposits | 0 | 0 | ||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||
Financial Instruments Subject to Mandatory Redemption | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Derivative Liability, Net | 0 | 0 | ||
Consolidated Obligation Discount Notes [Member] | Carrying Value [Member] | ||||
Liabilities | ||||
Discount notes | (42,879) | (36,682) | ||
Consolidated Obligation Discount Notes [Member] | Estimate of Fair Value Measurement [Member] | ||||
Liabilities | ||||
Discount notes | (42,870) | (36,674) | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Liabilities | ||||
Discount notes | 0 | 0 | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Liabilities | ||||
Discount notes | (42,870) | (36,674) | ||
Consolidated Obligation Discount Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities | ||||
Discount notes | 0 | 0 | ||
Consolidated Obligation Bonds [Member] | Carrying Value [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (93,772) | (98,893) | ||
Consolidated Obligation Bonds [Member] | Estimate of Fair Value Measurement [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (93,828) | (99,150) | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | (93,828) | (99,150) | ||
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities | ||||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value (Fair Value on a Rec
Fair Value (Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $ 915 | $ 1,177 |
Available-for-Sale Securities | 19,019 | 20,796 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 130 | 182 |
Derivative Asset, Net | 58 | 100 |
Derivative Liability, Net | (9) | (6) |
variation margin for daily settled contracts | 313 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Derivative Asset, Net | 0 | 0 |
Other Assets, Fair Value Disclosure | 27 | 28 |
Derivative Liability, Net | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 915 | 1,177 |
Available-for-Sale Securities | 19,019 | 20,796 |
Derivative Asset, Net | 104 | 97 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Derivative Liability, Net | (139) | (188) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Derivative Asset, Net | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Derivative Liability, Net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 130 | 182 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 27 | 28 |
Assets, Fair Value Disclosure | 27 | 28 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 915 | 1,177 |
Available-for-Sale Securities | 19,019 | 20,796 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (139) | (188) |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 20,038 | 22,070 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 915 | 1,177 |
Available-for-Sale Securities | 19,019 | 20,796 |
Derivative Asset, Net | 58 | 100 |
Other Assets, Fair Value Disclosure | 27 | 28 |
Derivative Liability, Net | (9) | (6) |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 915 | 1,177 |
Available-for-Sale Securities | 19,019 | 20,796 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (9) | (6) |
Other Assets, Fair Value Disclosure | 27 | 28 |
Assets, Fair Value Disclosure | 20,019 | 22,101 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (46) | 3 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 130 | 182 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Net | 0 | 0 |
Derivative Liability, Net | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Net | 104 | 97 |
Derivative Liability, Net | (139) | 188 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Net | 0 | 0 |
Derivative Liability, Net | 0 | 0 |
Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Net | 58 | 100 |
Derivative Liability, Net | (9) | (6) |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 14,290 | 15,249 |
U.S. Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 159 | 197 |
Available-for-Sale Securities | 2,602 | 3,099 |
U.S. Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 159 | 197 |
Available-for-Sale Securities | 2,602 | 3,099 |
U.S. Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 159 | 197 |
Available-for-Sale Securities | 2,602 | 3,099 |
GSE Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 57 | 260 |
Available-for-Sale Securities | 1,038 | 1,236 |
GSE Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
GSE Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 57 | 260 |
Available-for-Sale Securities | 1,038 | 1,236 |
GSE Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
GSE Obligations [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 57 | 260 |
Available-for-Sale Securities | 1,038 | 1,236 |
State or Local Housing Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 814 | 934 |
State or Local Housing Agency Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
State or Local Housing Agency Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 814 | 934 |
State or Local Housing Agency Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
State or Local Housing Agency Obligations [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 814 | 934 |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 266 | 272 |
Available-for-Sale Securities | 275 | 278 |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 266 | 272 |
Available-for-Sale Securities | 275 | 278 |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
Other [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 266 | 272 |
Available-for-Sale Securities | 275 | 278 |
U.S. Obligations MBS [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 4,483 | 3,726 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 4,483 | 3,726 |
U.S. Obligations MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
U.S. Obligations MBS [Member] | Single Family [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 4,483 | 3,726 |
GSE MBS [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 796 | 988 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 796 | 988 |
GSE MBS [Member] | Single Family [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Single Family [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 796 | 988 |
GSE MBS [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 433 | 448 |
Available-for-Sale Securities | 9,011 | 10,535 |
GSE MBS [Member] | Multifamily [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Multifamily [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 433 | 448 |
Available-for-Sale Securities | 9,011 | 10,535 |
GSE MBS [Member] | Multifamily [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Available-for-Sale Securities | 0 | 0 |
GSE MBS [Member] | Multifamily [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 433 | 448 |
Available-for-Sale Securities | $ 9,011 | $ 10,535 |
Fair Value (Fair Value on a Non
Fair Value (Fair Value on a Non-Recurring Basis) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 57 | $ 64 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 1 | $ 7 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Institutions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 2 | $ 2 | $ 2 |
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | 894,500 | 898,300 | |
Other liabilities | 61 | 53 | |
FLA Balance For All Master Commitments | 115 | 104 | |
Net Gains on Litigation Settlements | 0 | 21 | $ 376 |
Commitments to Issue Bonds [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 60 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 60 | 0 | |
Financial Standby Letter of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 229 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 446 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 675 | 755 | |
Guarantor Obligations, Term | P7Y | ||
Number of Housing Authorities For Which the Bank Has Standby Bond Purchase Agreements | Institutions | 7 | ||
Commitments to Fund Advances [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | $ 40 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 10 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 50 | 1,138 | |
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 8,924 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 170 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 9,094 | 8,594 | |
Guarantor Obligations, Term | P13Y | ||
Other liabilities | $ 2 | 3 | |
standby letters of credit issuance commitments [Domain] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 3 | 7 | |
Mortgage Receivable [Member] | Forward Contracts [Member] | |||
Loss Contingencies [Line Items] | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 101 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 101 | $ 72 | |
Period of Delivery Commitments | 45 days |
Commitments and Contingencies L
Commitments and Contingencies Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lease Commitments [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 2 | $ 2 | $ 2 |
Operating Leases, Future Minimum Payments Due | $ 4 |
Activities with Stockholders _2
Activities with Stockholders (Transactions with Directors' Financial Institutions) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Advances | $ 106,323 | $ 102,613 |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 7,836 | 7,098 |
Total deposits | 1,070 | 1,107 |
Capital Stock | 5,414 | 5,068 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advances | $ 6,991 | $ 6,036 |
Advances, Percent | 7.00% | 6.00% |
Loans and Leases Receivable, Gross, Consumer, Mortgage | $ 96 | $ 68 |
Mortgage Loans, Percent | 1.00% | 1.00% |
Total deposits | $ 12 | $ 39 |
Deposits, Percent | 1.00% | 4.00% |
Capital Stock | $ 328 | $ 297 |
Capital Stock, Percent | 6.00% | 5.00% |
Activities with Stockholders (B
Activities with Stockholders (Business Concentrations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Advances | $ 106,323 | $ 102,613 | |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 7,836 | 7,098 | |
Interest Income on Advances | 2,443 | 1,589 | $ 876 |
Wells Fargo Bank N.A. [Member] | |||
Related Party Transaction [Line Items] | |||
Transfer of PFI Rights and Obligations | 27 | ||
Capital Stock | $ 1,994 | $ 1,843 | |
Capital Stock Percentage | 35.00% | 34.00% | |
Advances | $ 49,575 | $ 45,825 | |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 25 | 0 | |
Interest Income on Advances | 1,167 | 834 | |
Superior Guaranty Insurance Company [Member] | |||
Related Party Transaction [Line Items] | |||
Capital Stock | $ 18 | $ 22 | |
Capital Stock Percentage | 0.00% | 0.00% | |
Advances | $ 0 | $ 0 | |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 420 | 520 | |
Interest Income on Advances | 0 | 0 | |
Wells Fargo Northwest NA [Member] [Member] | |||
Related Party Transaction [Line Items] | |||
Capital Stock | $ 1 | ||
Capital Stock Percentage | 0.00% | ||
Advances | $ 0 | ||
Loans and Leases Receivable, Gross, Consumer, Mortgage | 30 | ||
Interest Income on Advances | 0 | ||
Principal Owner [Member] | |||
Related Party Transaction [Line Items] | |||
Capital Stock | $ 2,012 | $ 1,866 | |
Capital Stock Percentage | 35.00% | 34.00% | |
Advances | $ 49,575 | $ 45,825 | |
Loans and Leases Receivable, Gross, Consumer, Mortgage | 445 | 550 | |
Interest Income on Advances | $ 1,167 | $ 834 | |
Stockholders' Equity, Total [Member] | Stockholders' Capital Stock Outstanding Concenetration Risk [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Business Concentration Percentage | 10.00% |
Activities with Stockholders Le
Activities with Stockholders Lease Transactions (Details) - Wells Fargo Bank N.A. [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense | $ 0 | $ 0 | $ 1.3 |
Gain (Loss) on Contract Termination | $ 0.8 |
Activities with Other FHLBank_2
Activities with Other FHLBanks (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Other Transactions [Line Items] | ||||
Payments for FHLBank Advance, Investing Activities | $ 305,197 | $ 266,362 | $ 217,392 | |
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 1,600 | |||
Proceeds from Federal Home Loan Bank Loans | (1,600) | |||
Loans from Other Federal Home Loan Banks | 500 | 600 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 1,000 | |||
Payments of FHLBank Borrowings, Financing Activities | (1,100) | |||
Federal Home Loan Bank, Advances, Premium | 38 | 53 | ||
Federal Home Loan Bank of Topeka [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 50 | |||
Proceeds from Federal Home Loan Bank Loans | (50) | |||
Federal Home Loan Bank of Dallas [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 500 | |||
Proceeds from Federal Home Loan Bank Loans | (500) | |||
Other FHLBanks [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 200 | $ 0 | |
Payments for Federal Home Loan Bank Loans | 50 | 300 | ||
Proceeds from Federal Home Loan Bank Loans | (250) | (100) | ||
Loans from Other Federal Home Loan Banks | 600 | 0 | 0 | |
Proceeds from FHLBank Borrowings, Financing Activities | 600 | 2,000 | ||
Payments of FHLBank Borrowings, Financing Activities | 0 | (2,000) | ||
Federal Home Loan Bank of Atlanta [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans from Other Federal Home Loan Banks | 500 | 200 | 0 | 0 |
Proceeds from FHLBank Borrowings, Financing Activities | 500 | 200 | 300 | |
Payments of FHLBank Borrowings, Financing Activities | (200) | 0 | (300) | |
Federal Home Loan Bank of Chicago [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Payments for FHLBank Advance, Investing Activities | 37 | |||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 200 | |||
Payments of FHLBank Borrowings, Financing Activities | (200) | |||
Federal Home Loan Bank, Advances, Premium | 1 | |||
Federal Home Loan Bank of Cincinnati [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 100 | |||
Proceeds from Federal Home Loan Bank Loans | (100) | |||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 300 | |||
Payments of FHLBank Borrowings, Financing Activities | (300) | |||
Federal Home Loan Bank of Indianapolis [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 300 | |||
Payments of FHLBank Borrowings, Financing Activities | (300) | |||
Federal Home Loan Bank of New York [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans from Other Federal Home Loan Banks | 0 | 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 300 | |||
Payments of FHLBank Borrowings, Financing Activities | (300) | |||
Federal Home Loan Bank of San Francisco [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | 200 | 0 |
Payments for Federal Home Loan Bank Loans | 300 | 0 | 200 | |
Proceeds from Federal Home Loan Bank Loans | (300) | (200) | 0 | |
Loans from Other Federal Home Loan Banks | 0 | 0 | 0 | 0 |
Proceeds from FHLBank Borrowings, Financing Activities | 500 | 500 | ||
Payments of FHLBank Borrowings, Financing Activities | (500) | (500) | ||
Federal Home Loan Bank of Boston [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Payments for Federal Home Loan Bank Loans | 800 | |||
Proceeds from Federal Home Loan Bank Loans | (800) | |||
Loans from Other Federal Home Loan Banks | 0 | 400 | 0 | $ 0 |
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 400 | 100 | |
Payments of FHLBank Borrowings, Financing Activities | $ (400) | $ 0 | $ (100) |