Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,232,662 | |
Document Transition Report | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 000-51999 | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Incorporation, State or Country Code | X1 | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Tax Identification Number | 42-6000149 | |
Entity Address, Address Line One | 909 Locust Street | |
Entity Address, City or Town | Des Moines | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50309 | |
City Area Code | 515 | |
Local Phone Number | 412-2100 |
Statements of Condition
Statements of Condition - USD ($) shares in Millions, $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 788 | $ 1,029 |
Interest-bearing deposits (Note 3) | 436 | 1 |
Securities purchased under agreements to resell (Note 3) | 3,300 | 13,950 |
Federal funds sold (Note 3) | 5,600 | 4,605 |
Investment securities (Note 3) | ||
Trading securities | 5,040 | 888 |
Available-for-sale securities (amortized cost of $16,653 and $16,603) | 16,361 | 16,651 |
Held-to-maturity securities (fair value of $2,079 and $2,439) | 1,968 | 2,370 |
Total investment securities | 23,369 | 19,909 |
Advances (Note 4) | 48,462 | 80,360 |
Mortgage loans held for portfolio, net | ||
Mortgage loans held for portfolio, net of allowance for credit losses of $3 and $1 (Notes 5) | 8,733 | 9,334 |
Accrued interest receivable | 110 | 195 |
Derivative assets, net (Note 6) | 242 | 102 |
Other assets | 114 | 118 |
TOTAL ASSETS | 91,154 | 129,603 |
Deposits | ||
Interest-bearing | 1,309 | 987 |
Non-interest-bearing | 305 | 125 |
Total deposits | 1,614 | 1,112 |
Consolidated obligations (Note 7) | ||
Discount notes | 30,928 | 29,531 |
Bonds | 52,343 | 91,553 |
Total consolidated obligations | 83,271 | 121,084 |
Mandatorily redeemable capital stock (Note 8) | 54 | 206 |
Accrued interest payable | 181 | 252 |
Affordable Housing Program payable | 169 | 157 |
Derivative liabilities, net (Note 6) | 0 | 1 |
Other liabilities | 69 | 65 |
TOTAL LIABILITIES | 85,358 | 122,877 |
Commitments and contingencies (Note 10) | ||
CAPITAL (Note 8) | ||
Capital stock - Class B putable ($100 par value); 34 and 45 issued and outstanding shares | 3,432 | 4,517 |
Retained earnings | ||
Unrestricted | 1,790 | 1,661 |
Restricted | 569 | 504 |
Total retained earnings | 2,359 | 2,165 |
Accumulated other comprehensive income (loss) | 5 | 44 |
TOTAL CAPITAL | 5,796 | 6,726 |
TOTAL LIABILITIES AND CAPITAL | 91,154 | 129,603 |
Loans and Leases Receivable, Allowance | 3 | 1 |
Debt Securities, Available-for-sale, Amortized Cost | 16,353 | 16,603 |
Held-to-Maturity Securities, Fair Value | $ 2,079 | $ 2,439 |
Capital Stock - Class B Putable, Par Value | $ 100 | $ 100 |
Common Class B [Member] | ||
Capital Stock - Class B Putable, Issued Shares | 34 | 45 |
Capital Stock - Class B Putable, Outstanding Shares | 34 | 45 |
Capital Stock - Class B Putable, Par Value | $ 100 | $ 100 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME | ||||
Advances | $ 185 | $ 569 | $ 815 | $ 1,997 |
Interest-bearing deposits | 0 | 1 | 1 | 2 |
Securities purchased under agreements to resell | 1 | 57 | 32 | 139 |
Federal funds sold | 2 | 37 | 30 | 122 |
Trading securities | 13 | 7 | 36 | 22 |
Available-for-sale securities | 33 | 118 | 170 | 394 |
Held-to-maturity securities | 7 | 19 | 31 | 63 |
Mortgage loans held for portfolio | 58 | 72 | 203 | 211 |
Total interest income | 299 | 880 | 1,318 | 2,950 |
INTEREST EXPENSE | ||||
Consolidated obligations - Discount notes | 10 | 166 | 163 | 684 |
Consolidated obligations - Bonds | 147 | 579 | 780 | 1,810 |
Deposits | 0 | 4 | 1 | 12 |
Mandatorily redeemable capital stock | 1 | 2 | 5 | 9 |
Total interest expense | 158 | 751 | 949 | 2,515 |
NET INTEREST INCOME | 141 | 129 | 369 | 435 |
Provision (reversal) for credit losses on mortgage loans | 2 | 0 | 2 | 0 |
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES | 139 | 129 | 367 | 435 |
OTHER INCOME (LOSS) | ||||
Net gains (losses) on trading securities | (10) | 8 | 26 | 36 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1 | (12) | (52) | (45) |
Gains on litigation settlements, net | 64 | 0 | 120 | 0 |
Other, net | 10 | 7 | 22 | 20 |
Total other income (loss) | 65 | 3 | 116 | 11 |
OTHER EXPENSE | ||||
Compensation and benefits | 18 | 16 | 53 | 48 |
Contractual services | 4 | 4 | 12 | 12 |
Professional fees | 4 | 9 | 20 | 24 |
Other operating expenses | 5 | 8 | 16 | 24 |
Federal Housing Finance Agency | 3 | 2 | 8 | 7 |
Office of Finance | 2 | 2 | 5 | 5 |
Other, net | 1 | 2 | 5 | 5 |
Total other expense | 37 | 43 | 119 | 125 |
NET INCOME BEFORE ASSESSMENTS | 167 | 89 | 364 | 321 |
Affordable Housing Program assessments | 16 | 9 | 36 | 33 |
NET INCOME | $ 151 | $ 80 | $ 328 | $ 288 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 151 | $ 80 | $ 328 | $ 288 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) | 64 | (17) | (40) | (48) |
Pension and postretirement benefits | 1 | 0 | 1 | 0 |
Total other comprehensive income (loss) | 65 | (17) | (39) | (48) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 216 | $ 63 | $ 289 | $ 240 |
Statements of Capital
Statements of Capital - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 5,999 | $ 7,477 | $ 6,726 | $ 7,548 |
Proceeds from issuance of capital stock | 294 | 1,869 | 2,915 | 5,378 |
Repurchases/redemptions of capital stock | (664) | (2,497) | (3,994) | (6,107) |
Net shares reclassified (to) from mandatorily redeemable capital stock | 0 | 0 | (6) | (9) |
PartialRecoveryOfPriorCapitalDistributionToFinancingCorporation | 26 | 0 | ||
Total Comprehensive Income | 216 | 63 | 289 | 240 |
Cash dividends on capital stock | (49) | (69) | (161) | (207) |
Ending Balance | 5,796 | 6,843 | 5,796 | 6,843 |
Retained Earnings, Unrestricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 1,718 | 1,652 | 1,661 | 1,623 |
PartialRecoveryOfPriorCapitalDistributionToFinancingCorporation | 26 | |||
Total Comprehensive Income | 121 | 64 | 263 | 231 |
Cash dividends on capital stock | (49) | (69) | (161) | (207) |
Ending Balance | 1,790 | 1,647 | 1,790 | 1,647 |
Retained Earnings, Restricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 539 | 468 | 504 | 427 |
Total Comprehensive Income | 30 | 16 | 65 | 57 |
Ending Balance | 569 | 484 | 569 | 484 |
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 2,257 | 2,120 | 2,165 | 2,050 |
PartialRecoveryOfPriorCapitalDistributionToFinancingCorporation | 26 | |||
Total Comprehensive Income | 151 | 80 | 328 | 288 |
Cash dividends on capital stock | (49) | (69) | (161) | (207) |
Ending Balance | 2,359 | 2,131 | 2,359 | 2,131 |
Accumulated Other Comprehensive Income [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (60) | 53 | 44 | 84 |
Total Comprehensive Income | 65 | (17) | (39) | (48) |
Ending Balance | 5 | 36 | 5 | 36 |
Common Class B [Member] | Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 3,802 | $ 5,304 | $ 4,517 | $ 5,414 |
BALANCE (shares) | 38 | 53 | 45 | 54 |
Proceeds from issuance of capital stock | $ 294 | $ 1,869 | $ 2,915 | $ 5,378 |
Proceeds from issuance of capital stock (shares) | 3 | 19 | 29 | 54 |
Repurchases/redemptions of capital stock | $ (664) | $ (2,497) | $ (3,994) | $ (6,107) |
Repurchases/redemptions of capital stock (shares) | (7) | (25) | (40) | (61) |
Net shares reclassified (to) from mandatorily redeemable capital stock | $ 0 | $ 0 | $ (6) | $ (9) |
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | 0 | 0 | 0 | 0 |
Ending Balance | $ 3,432 | $ 4,676 | $ 3,432 | $ 4,676 |
BALANCE (shares) | 34 | 47 | 34 | 47 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending Balance | $ 1 | $ 1 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Retained Earnings, Unrestricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending Balance | 1 | 1 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending Balance | $ 1 | $ 1 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net Income | $ 328 | $ 288 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | (21) | (85) |
Net (gains) losses on trading securities | (26) | (36) |
Net change in derivatives and hedging activities | (329) | (96) |
Other adjustments | 8 | 4 |
Net change in: | ||
Accrued interest receivable | 37 | (11) |
Other assets | 3 | (5) |
Accrued interest payable | (71) | 11 |
Other liabilities | 17 | 5 |
Total adjustments | (382) | (213) |
Net Cash Provided by (Used in) Operating Activities | (54) | 75 |
Net change in: | ||
Interest-bearing deposits | (727) | (219) |
Securities purchased under agreements to resell | 10,650 | (3,300) |
Federal funds sold | (995) | (1,485) |
Trading securities | ||
Proceeds from Sale of Debt and Equity Securities, FV-NI, Held-for-investment | 2,949 | 0 |
Proceeds from Maturities, Repayments and Calls of Debt Securities, FV-NI, Held-for-investment | 493 | 50 |
Payments to Acquire Trading Securities Held-for-investment | (7,568) | 0 |
Available-for-sale securities | ||
Proceeds from sales and maturities | 1,822 | 1,981 |
Purchases | (1,280) | 0 |
Held-to-maturity securities | ||
Proceeds from sales and maturities | 392 | 371 |
Advances | ||
Principal collected | 156,489 | 222,201 |
Originated | (124,219) | (200,553) |
Mortgage loans held for portfolio | ||
Principal collected | 2,326 | 1,024 |
Originated or purchased | (1,753) | (2,152) |
Payments for (Proceeds from) Other Investing Activities | (4) | (5) |
Net Cash Provided by (Used in) Investing Activities | 38,575 | 17,913 |
FINANCING ACTIVITIES | ||
Net change in deposits | 503 | 173 |
Increase (Decrease) in Loans from Federal Home Loan Banks | 0 | (500) |
Net proceeds from issuance of consolidated obligations | ||
Discount notes | 129,774 | 93,081 |
Bonds | 28,638 | 44,913 |
Payments for maturing and retiring consolidated obligations | ||
Discount notes | (128,303) | (109,141) |
Bonds | (68,002) | (45,426) |
Proceeds from issuance of capital stock | 2,915 | 5,378 |
Proceeds from Issuance of Mandatory Redeemable Capital Securities | 18 | 1 |
Payments for repurchases/redemptions of capital stock | (3,994) | (6,107) |
Net payments for repurchases/redemptions of mandatorily redeemable capital stock | (176) | (63) |
PartialRecoveryOfPriorCapitalDistributionToFinancingCorporation | 26 | 0 |
Cash dividends paid | (161) | (207) |
Net cash provided by (used in) financing activities | (38,762) | (17,898) |
Net increase (decrease) in cash and due from banks | (241) | 90 |
Cash and due from banks at the beginning of the period | 1,029 | 119 |
cash and due from banks at the end of the period | 788 | 209 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 1,151 | 2,637 |
Affordable Housing Program payments | 24 | 28 |
Noncash Investing and Financing Items [Abstract] | ||
Capitalized interest on reverse mortgage securities | 45 | 95 |
Transfers of mortgage loans to real estate owned | 0 | 2 |
Capital stock reclassified to (from) mandatorily redeemable capital stock, net | 6 | 9 |
Initial Right-of-Use Asset Recognition | 0 | 3 |
Initial Lease Liability Recognition | $ 0 | $ 3 |
Background Information
Background Information | 9 Months Ended |
Sep. 30, 2020 | |
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 that is exempt from all federal, state, and local taxation (except real property taxes and certain employer payroll taxes) and is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks are government-sponsored enterprises (GSEs) and were created under the authority of the Federal Home Loan Bank Act of 1932 (FHLBank Act) in order to serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank is regulated by the Federal Housing Finance Agency (Finance Agency). The Bank is a cooperative, meaning it is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain capital stock to support business activities with the Bank. In return, 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. All stockholders, including current and former members, may receive dividends on their capital stock investment to the extent declared by the Bank’s Board of Directors. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements and should be read in conjunction with the audited financial statements for the year ended December 31, 2019, which are contained in the Bank’s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 11, 2020 (2019 Form 10-K). In the opinion of management, the unaudited financial information is complete and reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of results for the interim periods. The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2020. SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Bank’s significant accounting policies during the nine months ended September 30, 2020, with the exception of the policies noted below. Descriptions of all significant accounting policies are included in “Note 1 — Summary of Significant Accounting Policies” in the 2019 Form 10-K. Beginning January 1, 2020, the Bank adopted new accounting guidance pertaining to the measurement of credit losses on financial instruments that requires a financial asset or group of financial assets measured at amortized cost to be presented at the net amount expected to be collected. The new guidance also requires credit losses relating to these financial instruments as well as available-for-sale securities to be recorded through an allowance for credit losses. Upon adoption of this guidance, the Bank recorded a $1 million decrease in its allowance for credit losses on mortgage loans through a cumulative effect adjustment to retained earnings. See “Note 2 — Recently Adopted and Issued Accounting Guidance” for additional information. The new guidance is summarized below. Consistent with the modified retrospective method of adoption, the prior period has not been revised to conform to the new basis of accounting. See “Note 1 — Summary of Significant Accounting Policies” in the 2019 Form 10-K for information on the prior accounting treatment. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. These investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See “Note 3 — Investments” for details on the allowance methodologies relating to these investments. Investment Securities Available for Sale . For securities classified as available-for-sale (AFS), the Bank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e. in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in other income (loss). If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to “Net unrealized gains (losses) on available-for-sale securities” within accumulated other comprehensive income (loss) (AOCI). Prior to January 1, 2020, credit losses, if applicable, were recorded as a direct write-down of the AFS security carrying value. Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity (HTM) and are 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. Accrued interest receivable is recorded separately on the Statements of Condition. HTM securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. Prior to January 1, 2020, credit losses, if applicable, were recorded as a direct write-down of the HTM security carrying value. See “Note 3 — Investments” for details on the allowance methodologies relating to AFS and HTM securities. Advances Advances (secured loans to members, former members, or eligible housing associates) are carried 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. For advances carried at amortized cost, accrued interest receivable is recorded separately on the Statements of Condition. The advances carried at amortized cost are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. See “Note 4 — Advances” for details on the allowance methodology relating to advances. 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. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on non-accrual status. The Bank does not purchase mortgage loans with credit deterioration present at the time of purchase. The Bank includes estimates of expected recoveries within the allowance for credit losses. See “Note 5 — Mortgage Loans” for details on the allowance methodology relating to mortgage loans. Off-Balance Sheet Credit Exposures The Bank evaluates its off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding adjustment to the provision (reversal) for credit losses. See “Note 10 — Commitments and Contingencies” for additional information. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Adopted and Issued Accounting Guidance [Text Block] | Recently Adopted and Issued Accounting Guidance ADOPTED ACCOUNTING GUIDANCE Coronavirus Aid, Relief, and Economic Security (CARES) Act Section 4013 On March 27, 2020, the CARES Act was signed into law and provides optional, temporary relief from the accounting and reporting requirements for troubled debt restructurings (TDRs) on certain loan modifications related to the coronavirus pandemic (COVID-19) that are offered by financial institutions. The modifications that would qualify for this relief include any COVID-19 modification involving a conventional mortgage loan that was not more than 30 days past due as of December 31, 2019 and occurs between March 1, 2020 and the earlier of December 31, 2020, or 60 days following the termination of the national emergency declared by the President of the United States. In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act on its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act will be excluded from TDR classification and accounting. COVID-19 modifications that do not meet the provisions of the CARES Act will continue to be assessed for TDR classification. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) On August 29, 2018, the Financial Accounting Standards Board (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 on the statement of income as the fees associated with the hosting element (service) and classify payments for capitalized implementation costs on 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 on 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 became effective for the Bank for the interim and annual periods beginning on January 1, 2020, and was adopted on a prospective basis. The adoption of this guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows. 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 became effective for the Bank for the interim and annual periods beginning on January 1, 2020. The adoption of this guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it reduced certain disclosures. 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 since origination that is 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). The FASB issued subsequent amendments to clarify the scope of the credit losses standard and address issues including, but not limited to, accrued interest receivable balances, recoveries, variable interest rates and prepayments. All of this guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2020 and was adopted on a modified retrospective basis. Upon adoption, the Bank recorded no credit losses on its advances, standby letters of credit, and other extensions of credit to borrowers as well as its investment portfolio. For its mortgage loans held for portfolio, the Bank recorded a $1 million decrease in its allowance for credit losses through a cumulative effect adjustment to retained earnings on January 1, 2020. This decrease was attributable to recoveries on mortgage loans that were previously written down and have had their collateral values subsequently improve, partially offset by the incorporation of lifetime credit losses on its mortgage loan portfolio. ISSUED ACCOUNTING GUIDANCE Reference Rate Reform (ASU 2020-04) On March 12, 2020, the FASB issued guidance to provide temporary optional expedients and exceptions to GAAP on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect to not apply certain modification accounting requirements to contracts affected by rate reform, if certain criteria are met. Additionally, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform. Lastly, entities can make a one-time election to sell and/or transfer to AFS or trading any HTM debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM before January 1, 2020. This guidance becomes effective for the Bank upon election of any of the amendments and will be applied prospectively from the date elected until December 31, 2022. For certain hedge accounting optional expedients, they will be applied through the end of the hedging relationship, which could extend beyond December 31, 2022. The Bank is in the process of evaluating this guidance, and its 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 the annual period ending on December 31, 2020. Early adoption is permitted; however, the Bank does not intend to early adopt this guidance. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, cash flows, or disclosures. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investments The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold and makes other investments in debt securities, which are classified as either trading, AFS, or HTM. INTEREST-BEARING DEPOSITS, SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL, AND FEDERAL FUNDS SOLD The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a Nationally Recognized Statistical Rating Organization (NRSRO). At September 30, 2020, none of these investments were with counterparties rated below triple-B; however, approximately 35 percent were secured securities purchased under agreements to resell with unrated counterparties. These may differ from any internal ratings of the investments by the Bank. Federal funds sold are unsecured loans that are generally transacted on an overnight term. Finance Agency regulations include a limit on the amount of unsecured credit the Bank may extend to a counterparty. At September 30, 2020 and December 31, 2019, no allowance for credit losses was recorded for interest-bearing deposits and federal funds sold as all assets were repaid or expected to be repaid according to their contractual terms. Carrying values of interest-bearing deposits and federal funds sold excluded accrued interest receivable of less than $1 million as of September 30, 2020 and December 31, 2019. Securities purchased under agreements to resell are secured, short-term, and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e. subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at September 30, 2020 and December 31, 2019. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of less than $1 million and $2 million as of September 30, 2020 and December 31, 2019. DEBT SECURITIES The Bank invests in debt securities, which are classified as either trading, AFS, or HTM. Within these investments, the Bank is subject to credit risk related to private-label mortgage-backed securities (MBS) that are supported by underlying mortgage or asset-backed loans. The Bank is prohibited by Finance Agency regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality. Exceptions are allowed for certain investments targeted at low-income persons or communities, and instruments that experience credit deterioration after their purchase by the Bank. Trading Securities Trading securities by major security type were as follows (dollars in millions): September 30, December 31, Non-mortgage-backed securities U.S. Treasury obligations 1 $ 4,212 $ — Other U.S. obligations 1 115 150 GSE and Tennessee Valley Authority obligations 65 60 Other 2 262 259 Total non-mortgage-backed securities 4,654 469 Mortgage-backed securities GSE multifamily 386 419 Total fair value $ 5,040 $ 888 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 During the three and nine months ended September 30, 2020, the Bank sold trading securities and realized net gains of less than $1 million. The Bank did not sell any trading securities during the three and nine months ended September 30, 2019. During the three and nine months ended September 30, 2020, the Bank recorded net unrealized losses of $10 million and net unrealized gains of $26 million on its trading securities held at period end compared to net unrealized gains of $8 million and $36 million for the same periods in 2019. AFS Securities AFS securities by major security type we re as follows (dollars in millions): September 30, 2020 Amortized 1 Gross Gross Non-mortgage-backed securities Other U.S. obligations 2 $ 1,766 $ 4 $ (11) $ 1,759 GSE and Tennessee Valley Authority obligations 1,020 16 — 1,036 State or local housing agency obligations 736 — (24) 712 Other 3 292 10 — 302 Total non-mortgage-backed securities 3,814 30 (35) 3,809 Mortgage-backed securities U.S. obligations single-family 2 3,673 15 (2) 3,686 GSE single-family 507 5 (1) 511 GSE multifamily 8,359 35 (39) 8,355 Total mortgage-backed securities 12,539 55 (42) 12,552 Total $ 16,353 $ 85 $ (77) $ 16,361 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $26 million at September 30, 2020. 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. AFS securities by major security type we re as follows (dollars in millions): December 31, 2019 Amortized 1 Gross Gross Non-mortgage-backed securities Other U.S. obligations 2 $ 2,122 $ 6 $ (1) $ 2,127 GSE and Tennessee Valley Authority obligations 1,034 26 — 1,060 State or local housing agency obligations 761 — (5) 756 Other 3 276 9 — 285 Total non-mortgage-backed securities 4,193 41 (6) 4,228 Mortgage-backed securities U.S. obligations single-family 2 4,044 17 (2) 4,059 GSE single-family 646 4 (1) 649 GSE multifamily 7,720 13 (18) 7,715 Total mortgage-backed securities 12,410 34 (21) 12,423 Total $ 16,603 $ 75 $ (27) $ 16,651 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $42 million at December 31, 2019. 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. September 30, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 550 $ (3) $ 747 $ (8) $ 1,297 $ (11) State or local housing agency obligations 403 (16) 296 (8) 699 (24) Total non-mortgage-backed securities 953 (19) 1,043 (16) 1,996 (35) Mortgage-backed securities U.S. obligations single-family 1 205 — 649 (2) 854 (2) GSE single-family — — 78 (1) 78 (1) GSE multifamily 1,668 (10) 3,694 (29) 5,362 (39) Total mortgage-backed securities 1,873 (10) 4,421 (32) 6,294 (42) Total $ 2,826 $ (29) $ 5,464 $ (48) $ 8,290 $ (77) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 196 $ — $ 706 $ (1) $ 902 $ (1) State or local housing agency obligations 57 — 344 (5) 401 (5) Total non-mortgage-backed securities 253 — 1,050 (6) 1,303 (6) Mortgage-backed securities U.S. obligations single-family 1 169 — 564 (2) 733 (2) GSE single-family 133 — 104 (1) 237 (1) GSE multifamily 2,001 (8) 2,766 (10) 4,767 (18) Total mortgage-backed securities 2,303 (8) 3,434 (13) 5,737 (21) Total $ 2,556 $ (8) $ 4,484 $ (19) $ 7,040 $ (27) 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): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due in one year or less $ 9 $ 9 $ 92 $ 92 Due after one year through five years 2,179 2,183 2,099 2,110 Due after five years through ten years 864 861 1,294 1,302 Due after ten years 762 756 708 724 Total non-mortgage-backed securities 3,814 3,809 4,193 4,228 Mortgage-backed securities 12,539 12,552 12,410 12,423 Total $ 16,353 $ 16,361 $ 16,603 $ 16,651 Net Gains (Losses) from Sale of AFS Securities During the three and nine months ended September 30, 2020 and 2019 , the Bank did not sell any AFS securities. HTM Securities HTM securities by major security type wer e as follows (dollars in millions): September 30, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 380 $ 102 $ — $ 482 State or local housing agency obligations 207 2 (1) 208 Total non-mortgage-backed securities 587 104 (1) 690 Mortgage-backed securities U.S. obligations single-family 2 4 — — 4 GSE single-family 1,371 9 (1) 1,379 Private-label 6 — — 6 Total mortgage-backed securities 1,381 9 (1) 1,389 Total $ 1,968 $ 113 $ (2) $ 2,079 December 31, 2019 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 384 $ 72 $ — $ 456 State or local housing agency obligations 221 1 (1) 221 Total non-mortgage-backed securities 605 73 (1) 677 Mortgage-backed securities U.S. obligations single-family 2 5 — — 5 U.S. obligations commercial 2 1 — — 1 GSE single-family 1,752 4 (7) 1,749 Private-label 7 — — 7 Total mortgage-backed securities 1,765 4 (7) 1,762 Total $ 2,370 $ 77 $ (8) $ 2,439 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $11 million and $7 million as of September 30, 2020 and December 31, 2019. 2 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): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due after five years through ten years $ 451 $ 504 $ 412 $ 446 Due after ten years 136 186 193 231 Total non-mortgage-backed securities 587 690 605 677 Mortgage-backed securities 1,381 1,389 1,765 1,762 Total $ 1,968 $ 2,079 $ 2,370 $ 2,439 Net Gains (Losses) from Sale of HTM Securities During the three and nine months ended September 30, 2020 and 2019 , the Bank did not sell any HTM securities. ALLOWANCE FOR CREDIT LOSSES ON AFS AND HTM SECURITIES The Bank evaluates AFS and HTM investment securities for credit losses on a quarterly basis. The Bank adopted new accounting guidance for the measurement of credit losses on financial instruments on January 1, 2020. See “Note 2 — Recently Adopted and Issued Accounting Guidance” for additional information. See “Note 1 — Summary of Significant Accounting Policies” in the 2019 Form 10-K for information on the prior methodology for evaluating credit losses. AFS and HTM Securities (Excluding Private-label MBS) The Bank’s AFS and HTM securities may include, but are not limited to, certificates of deposit, commercial paper, U.S. obligations, GSE and Tennessee Valley Authority (TVA) obligations, state or local housing agency obligations, taxable municipal bonds, and MBS. The Bank only purchases securities considered investment quality. Excluding private-label MBS, at September 30, 2020, all of the Bank’s AFS securities and HTM securities, based on amortized cost, were rated single-A, or above, by an NRSRO, based on the lowest long-term credit rating for each security. These may differ from any internal ratings of the securities by the Bank. The Bank evaluates its individual AFS securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e. in an unrealized loss position). At September 30, 2020, certain AFS securities held by the Bank were in an unrealized loss position. These losses are considered temporary as the Bank expects to recover the entire amortized cost basis on these AFS investment securities and neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis. Further, the Bank has not experienced any payment defaults on the instruments. In addition, substantially all of these securities carry an implicit or explicit government guarantee. As a result, no allowance for credit losses was recorded on these AFS securities at September 30, 2020. The Bank evaluates its HTM securities for impairment on a collective, or pooled basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. As of September 30, 2020, the Bank had no allowance for credit losses recorded on its HTM securities because the securities: (i) were all highly-rated, (ii) had not experienced, nor did the Bank expect, any payment default on the instruments, and (iii) in the case of U.S. obligations and GSE and TVA obligations, carry an implicit or explicit government guarantee such that the Bank considers the risk of nonpayment to be zero. Private-label MBS The Bank holds investments in private-label MBS classified as HTM. As of September 30, 2020, these investments represented less than one percent of the Bank’s HTM portfolio and approximately 69 percent of these securities, based on amortized cost, were rated single-A, or above, by an NRSRO. As of September 30, 2020, the Bank had no allowance for credit losses recorded on its private-label MBS because the securities (i) were highly-rated and/or (ii) had not experienced, nor did the Bank expect, any payment default on the instruments. |
Advances
Advances | 9 Months Ended |
Sep. 30, 2020 | |
Advances [Abstract] | |
Advances [Text Block] | Advances REDEMPTION TERM The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): September 30, 2020 December 31, 2019 Redemption Term Amount 1 Weighted Amount 1 Weighted Overdrawn demand deposit accounts 2 $ — 1.30 % $ 1 2.73 % Due in one year or less 14,093 1.02 35,432 1.97 Due after one year through two years 9,379 1.83 21,959 2.23 Due after two years through three years 9,590 1.43 8,693 2.33 Due after three years through four years 6,886 1.65 5,109 2.51 Due after four years through five years 4,570 1.20 5,978 2.17 Thereafter 3,397 2.26 3,013 2.72 Total par value 47,915 1.46 % 80,185 2.16 % Premiums 21 25 Discounts (4) (6) Fair value hedging adjustments 530 156 Total $ 48,462 $ 80,360 1 Excludes accrued interest receivable of $15 million and $91 million as of September 30, 2020 and December 31, 2019. 2 The amount at September 30, 2020 was less than $1 million. The following table summarizes advances by year of redemption term or next call date for callable advances, and by year of redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term September 30, December 31, 2019 September 30, December 31, 2019 Overdrawn demand deposit accounts $ — $ 1 $ — $ 1 Due in one year or less 24,216 53,156 15,125 36,278 Due after one year through two years 7,486 11,967 9,383 22,101 Due after two years through three years 5,819 5,427 9,615 8,730 Due after three years through four years 4,676 3,802 5,951 5,004 Due after four years through five years 2,445 3,461 4,455 5,069 Thereafter 3,273 2,371 3,386 3,002 Total par value $ 47,915 $ 80,185 $ 47,915 $ 80,185 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 September 30, 2020 and December 31, 2019, the Bank had callable advances outstanding totaling $10.5 billion and $25.5 billion. The Bank holds certain putable advances. With a putable advance, the Bank has the right to terminate the advance from the borrower on the predetermined exercise dates. Generally, these put options are exercised when interest rates increase relative to contractual rates. At both September 30, 2020 and December 31, 2019, t he Bank had putable advances outstanding totaling $1.4 billion. 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 the hedged item fair value hedging adjustments in advance income on the Statements of Income. During the three and nine months ended September 30, 2020, the Bank recorded prepayment fees on advances, net of $45 million and $58 million compared to $2 million and $3 million for the same periods in 2019. ADVANCE CONCENTRATIONS The Bank’s advances are concentrated in commercial banks, savings institutions, and insurance companies. At September 30, 2020, the Bank did not have any members who individually held 10 percent or more of the Bank’s advances. At December 31, 2019, the Bank had outstanding advances of $25.5 billion to Wells Fargo Bank, N.A. who individually held 10 percent or more of the Bank’s advances, which represented 32 percent of the total principal amount of outstanding advances. ALLOWANCE FOR CREDIT LOSSES The Bank evaluates advances for credit losses on a quarterly basis. The Bank adopted new accounting guidance for the measurement of credit losses on financial instruments on January 1, 2020. See “Note 2 — Recently Adopted and Issued Accounting Guidance” for additional information. The Bank manages its credit exposure to advances 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. The estimated value of the collateral required to secure each borrower’s advances is calculated by applying collateral discounts, or haircuts, to the unpaid principal balance or market value, as applicable, of the collateral. The Bank also has policies and procedures for validating the reasonableness of the Bank’s collateral valuations. In addition, collateral verifications and on-site reviews are performed by the Bank based on the risk profile of the borrower. Management believes that these policies effectively manage the Bank’s credit risk from advances. Eligible collateral includes: • fully disbursed whole first mortgages on improved residential real property or securities representing a whole interest in such mortgages; • 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; • cash deposited with the Bank; and • other real estate-related collateral acceptable to the Bank, such as second lien mortgages, home equity lines of credit, tax-exempt municipal securities, and commercial real estate mortgages, provided such collateral has a readily ascertainable value and the Bank can perfect a security interest in it. 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 advances. 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 advances. At September 30, 2020 and December 31, 2019, the Bank had rights to collateral on a borrower-by-borrower basis with an unpaid principal balance or market value, as applicable, in excess of its outstanding advances. As a result of recent stressed market conditions stemming from COVID-19, the Bank is taking additional steps to monitor its credit risk on advances. These steps include increased frequency of collateral valuation and identifying, analyzing, and monitoring borrowers with higher risk profiles. At September 30, 2020 and December 31, 2019, none of the Bank’s advances were past due, on non-accrual status, or considered impaired. In addition, there were no TDRs related to advances during the nine months ended September 30, 2020 and 2019. The Bank has never experienced a credit loss on its advances. Based upon the Bank’s collateral and lending policies, the collateral held as security, and the repayment history on advances, management has determined that there were no expected credit losses on its advances as of September 30, 2020. For the same reasons, the Bank did not record any allowance for credit losses for its advances at December 31, 2019. |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 9 Months Ended |
Sep. 30, 2020 | |
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 Mortgage Partnership Finance (MPF) program (Mortgage Partnership Finance and MPF are registered trademarks of the FHLBank of Chicago) and the Mortgage Purchase Program (MPP). The MPF program, which represented 98 percent of the Bank’s mortgage loans held for portfolio at both September 30, 2020 and December 31, 2019, involves investment by the Bank in single-family mortgage loans held for portfolio that are either purchased from participating financial institutions (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 loans sold to the Bank. The MPP program represented two percent of the Bank’s mortgage loans held for portfolio at both September 30, 2020 and December 31, 2019. 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): September 30, December 31, 2019 Fixed rate, long-term single-family mortgage loans $ 7,435 $ 8,192 Fixed rate, medium-term 1 single-family mortgage loans 1,177 1,016 Total unpaid principal balance 8,612 9,208 Premiums 114 125 Discounts (3) (4) Basis adjustments from mortgage loan purchase commitments 13 6 Total mortgage loans held for portfolio 2 8,736 9,335 Allowance for credit losses (3) (1) Total mortgage loans held for portfolio, net $ 8,733 $ 9,334 1 Medium-term is defined as a term of 15 years or less. 2 Excludes accrued interest receivable of $43 million and $48 million as of September 30, 2020 and December 31, 2019. The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): September 30, December 31, 2019 Conventional mortgage loans $ 8,117 $ 8,712 Government-insured mortgage loans 495 496 Total unpaid principal balance $ 8,612 $ 9,208 PAYMENT STATUS OF MORTGAGE LOANS Payment status is the key credit quality indicator for conventional mortgage loans and allows the Bank to monitor the migration of past due loans. Past due loans are those where the borrower has failed to make timely payments of principal and/or interest in accordance with the terms of the loan. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. The following tables present the payment status for MPF and MPP conventional mortgage loans (dollars in millions): September 30, 2020 Origination Year Prior to 2016 2016 to 2020 Total Past due 30 - 59 days $ 21 $ 21 $ 42 Past due 60 - 89 days 13 12 25 Past due 90 - 179 days 38 46 84 Past due 180 days or more 12 1 13 Total past due mortgage loans 84 80 164 Total current mortgage loans 2,193 5,874 8,067 Total amortized cost of mortgage loans 1 $ 2,277 $ 5,954 $ 8,231 December 31, 2019 Past due 30 - 59 days $ 57 Past due 60 - 89 days 14 Past due 90 - 179 days 10 Past due 180 days or more 10 Total past due mortgage loans 91 Total current mortgage loans 8,783 Total recorded investment of mortgage loans 1 $ 8,874 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, basis adjustments, and direct write-downs. Recorded investment at December 31, 2019 includes accrued interest receivable whereas the amortized cost at September 30, 2020 excludes accrued interest receivable. Section 4013 of the CARES Act provides temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications related to COVID-19. The modifications that would qualify for this relief include any COVID-19 modification involving a conventional mortgage loan, including a forbearance arrangement, an interest rate modification, a repayment plan, or any similar arrangement that defers or delays payment of principal or interest. To be eligible under the CARES Act, the conventional loan must be not more than 30 days past due as of December 31, 2019 and the modification must occur between March 1, 2020 and the earlier of December 31, 2020, or 60 days following the termination of the national emergency declared by the President of the United States. In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act on its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act will be excluded from TDR classification and accounting. The Bank had none of these modifications outstanding as of September 30, 2020. COVID-19 modifications that do not meet the provisions of the CARES Act will continue to be assessed for TDR classification. The Bank’s servicers may grant a forbearance period to borrowers who have requested forbearance based on COVID-19 related difficulties regardless of the status of the loan at the time of the request. The Bank continues to apply its accounting policy for past due loans and charge-offs to loans during the forbearance period. The accrual status for loans under forbearance will be driven by the past due status of the loan as the legal terms of the contractual arrangement have not been modified. The following table presents the unpaid principal balance of conventional loans in a forbearance plan as a result of COVID-19 (dollars in millions): September 30, 2020 Past due 30 - 59 days $ 9 Past due 60 - 89 days 13 Past due 90 days or more and in non-accrual status 54 Current mortgage loans 9 Total unpaid principal balance 1 $ 85 1 These conventional loans in forbearance represent one percent of the Bank’s mortgage loans held for portfolio at September 30, 2020. The following tables present other delinquency statistics for MPF and MPP mortgage loans (dollars in millions): September 30, 2020 Amortized Cost Conventional Government-Insured Total In process of foreclosure 1 $ 4 $ 1 $ 5 Serious delinquency rate 2 1 % 2 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 11 $ 11 Non-accrual mortgage loans 4 $ 106 $ — $ 106 December 31, 2019 Recorded Investment Conventional Government- Insured Total In process of foreclosure 1 $ 5 $ 1 $ 6 Serious delinquency rate 2 — % 1 % — % Past due 90 days or more and still accruing interest 3 $ — $ 7 $ 7 Non-accrual mortgage loans 4 $ 31 $ — $ 31 1 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. 2 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. 3 Represents government-insured mortgage loans that are 90 days or more past due. 4 Represents conventional mortgage loans that are 90 days or more past due or TDRs. As of September 30, 2020, none of these conventional mortgage loans on non-accrual status had an associated allowance for expected credit losses. ALLOWANCE FOR CREDIT LOSSES The Bank evaluates mortgage loans for credit losses on a quarterly basis. The Bank adopted new accounting guidance for the measurement of credit losses on financial instruments on January 1, 2020. See “Note 2 — Recently Adopted and Issued Accounting Guidance” for additional information. See “Note 10 — Allowance for Credit Losses” in the 2019 Form 10-K for information on the prior methodology for evaluating credit losses on mortgage loans. Conventional Mortgage Loans Conventional mortgage loans are evaluated collectively when similar risk characteristics exists. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. The Bank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. For collectively evaluated loans, the Bank uses a projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as current and projected property values and interest rates, as well as historical borrower behavior experience. For MPF loans, the Bank also incorporates associated credit enhancements when determining its estimate of expected credit losses. In limited instances, the Bank may incorporate a management adjustment in the allowance for credit losses for conventional mortgage loans due to changes in economic and business conditions or other factors that may not be fully captured in its model. For individually evaluated loans, the Bank uses the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. The Bank estimates the fair value of this collateral using a property valuation model. The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. The Bank records a direct charge-off of the loan balance, if certain triggering criteria are met. Expected recoveries of prior charge-offs are included in the allowance for credit losses. At September 30, 2020 and December 31, 2019, the Bank’s allowance for credit losses on conventional mortgage loans totaled $3 million and $1 million. As a result of adopting Measurement of Credit Losses on Financial Instruments (ASU 2016-13) , the Bank recorded a $1 million decrease in its allowance for credit losses through a cumulative effect adjustment to retained earnings on January 1, 2020. This decrease was attributable to recoveries on conventional mortgage loans that were previously written down and have had their collateral values subsequently improve, partially offset by the incorporation of lifetime credit losses on its mortgage loan portfolio. During the nine months ended September 30, 2020, the Bank’s cash flow model for collectively evaluated loans projected an increase in expected credit losses due primarily to increased loan delinquencies, including those associated with COVID-19 related forbearance plans, and also due to a deceleration in forecasted regional home price appreciation. Expected recoveries of prior charge-offs remained stable during the nine months ended September 30, 2020. Government-Insured Mortgage Loans The Bank invests in government-insured fixed rate mortgage loans 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. The Bank has never experienced a credit loss on its government-insured mortgage loans. As of September 30, 2020, the Bank assessed its servicers and determined there was no expectation that a servicer would fail to remit payments due until paid in full. As a result, the Bank did not establish an allowance for credit losses for its government-insured mortgage loans at September 30, 2020 and December 31, 2019. 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. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
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 risk management policies 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 periodically 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; • options; • swaptions; • interest rate caps and floors; and • futures/forwards contracts. The Bank may have the following types of hedged items: • investment securities; • advances; • mortgage loans; • consolidated obligations; and • firm commitments. For additional information on the Bank’s derivative and hedging accounting policy, see “Note 1 — Summary of Significant Accounting Policies” in the 2019 Form 10-K. 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): September 30, 2020 December 31, 2019 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 34,883 $ 43 $ 285 $ 37,684 $ 31 $ 159 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,807 12 84 1,038 8 43 Forward settlement agreements (TBAs) 176 — — 122 — — Mortgage loan purchase commitments 182 — — 127 — — Total derivatives not designated as hedging instruments 2,165 12 84 1,287 8 43 Total derivatives before netting and collateral adjustments $ 37,048 55 369 $ 38,971 39 202 Netting adjustments and cash collateral 1 187 (369) 63 (201) Total derivative assets and derivative liabilities $ 242 $ — $ 102 $ 1 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At September 30, 2020 and December 31, 2019, cash collateral, including accrued interest, posted by the Bank was $557 million and $264 million. At September 30, 2020 the Bank held cash collateral, including accrued interest, from clearing agents or counterparties of $1 million. At December 31, 2019, the Bank did not hold any cash collateral, including accrued interest, from clearing agents or counterparties. The following tables summarize the income effect from fair value hedging relationships recorded in net interest income as well as total income (expense) by product recorded on the Statements of Income (dollars in millions): For the Three Months Ended September 30, 2020 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 185 $ 33 $ (147) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ 15 $ 21 $ — Hedged items 3 (82) (55) 42 Net gains (losses) on fair value hedging relationships $ (67) $ (34) $ 42 For the Three Months Ended September 30, 2019 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 569 $ 118 $ (579) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (48) $ (72) $ 21 Hedged items 3 60 63 (52) Net gains (losses) on fair value hedging relationships $ 12 $ (9) $ (31) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value, net interest settlements on derivatives, and amortization of the financing element of off-market derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. The following tables summarize the income effect from fair value hedging relationships recorded in net interest income as well as total income (expense) by product recorded on the Statements of Income (dollars in millions): For the Nine Months Ended September 30, 2020 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 815 $ 170 $ (780) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (486) $ (329) $ 261 Hedged items 3 374 248 (185) Net gains (losses) on fair value hedging relationships $ (112) $ (81) $ 76 For the Nine Months Ended September 30, 2019 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 1,997 $ 394 $ (1,810) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (288) $ (299) $ 217 Hedged items 3 344 294 (375) Net gains (losses) on fair value hedging relationships $ 56 $ (5) $ (158) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value, net interest settlements on derivatives, and amortization of the financing element of off-market derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions): September 30, 2020 Line Item on Statements of Condition Amortized Cost of Hedged Asset/ Liability 1 Changes in Fair Value for Active Hedging Relationships Included in Amortized Cost Basis Adjustments for Discontinued Hedging Relationships Included in Amortized Cost Total Amount of Fair Value Hedging Basis Adjustments Advances $ 17,859 $ 507 $ 23 $ 530 Available-for-sale securities 7,193 415 — 415 Consolidated obligation bonds 13,535 197 (11) 186 December 31, 2019 Line Item on Statements of Condition Amortized Cost of Hedged Asset/ Liability 1 Changes in Fair Value for Active Hedging Relationships Included in Amortized Cost Basis Adjustments for Discontinued Hedging Relationships Included in Amortized Cost Total Amount of Fair Value Hedging Basis Adjustments Advances $ 14,806 $ 146 $ 10 $ 156 Available-for-sale securities 6,221 167 — 167 Consolidated obligation bonds 20,256 16 (15) 1 1 Includes the portion of amortized cost representing the hedged items in fair value hedging relationships. The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented on the Statements of Income (dollars in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps $ 6 $ (12) $ (40) $ (45) Forward settlement agreements (TBAs) (1) (2) (11) (6) Mortgage loan purchase commitments 1 2 9 6 Net interest settlements (5) — (10) — Net gains (losses) on derivatives and hedging activities $ 1 $ (12) $ (52) $ (45) 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, referred to as uncleared derivatives, or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Derivative Clearing Organization, referred to as 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 the derivative 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 NRSRO, 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 September 30, 2020 was less than $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 derivative counterparties at September 30, 2020. 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 September 30, 2020. 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” in the 2019 Form 10-K. 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 tables present 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): September 30, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 49 $ (44) $ — $ 5 Cleared derivatives 6 231 — 237 Total $ 55 $ 187 $ — $ 242 Derivative Liabilities Uncleared derivatives $ 368 $ (368) $ — $ — Cleared derivatives 1 (1) — — Total $ 369 $ (369) $ — $ — December 31, 2019 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 34 $ (28) $ — $ 6 Cleared derivatives 5 91 — 96 Total $ 39 $ 63 $ — $ 102 Derivative Liabilities Uncleared derivatives $ 199 $ (198) $ — $ 1 Cleared derivatives 3 (3) — — Total $ 202 $ (201) $ — $ 1 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable master netting requirements. |
Consolidated Obligations
Consolidated Obligations | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019, the total par value of outstanding consolidated obligations of the FHLBanks was $819.9 billion and $1,025.9 billion. DISCOUNT NOTES The following table summarizes the Bank’s discount notes (dollars in millions): September 30, 2020 December 31, 2019 Amount Weighted Amount Weighted Par value $ 30,935 0.12 % $ 29,592 1.65 % Discounts and concessions 1 (7) (61) Total $ 30,928 $ 29,531 1 Concessions represent fees paid to dealers in connections 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): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 28,538 0.69 % $ 58,106 1.81 % Due after one year through two years 9,516 2.18 16,997 1.91 Due after two years through three years 3,454 2.30 3,907 2.35 Due after three years through four years 3,588 3.05 3,083 2.53 Due after four years through five years 1,294 2.30 3,503 3.03 Thereafter 5,580 2.61 5,777 3.00 Total par value 51,970 1.48 % 91,373 1.99 % Premiums 215 217 Discounts and concessions 1 (28) (38) Fair value hedging adjustments 186 1 Total $ 52,343 $ 91,553 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds. The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): September 30, December 31, Non-callable or non-putable $ 48,687 $ 87,246 Callable 3,283 4,127 Total par value $ 51,970 $ 91,373 The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): Year of Contractual Maturity or Next Call Date September 30, December 31, Due in one year or less $ 30,881 $ 60,639 Due after one year through two years 10,198 17,643 Due after two years through three years 3,587 4,410 Due after three years through four years 3,638 2,788 Due after four years through five years 1,135 3,376 Thereafter 2,531 2,517 Total par value $ 51,970 $ 91,373 |
Capital
Capital | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Total 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 stock) and has two subclasses of 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 31 st , 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 on 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 September 30, 2020 and December 31, 2019, 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 on the Statements of Income. At September 30, 2020 and December 31, 2019, the Bank’s mandatorily redeemable capital stock totaled $54 million and $206 million. During the three and nine months ended September 30, 2020 , interest expense on mandatorily redeemable capital stock was $1 million and $5 million . Interest expense on mandatorily redeemable capital stock was $2 million and $9 million for the three and nine months ended September 30, 2019 . 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. Captive insurance company members that were admitted as members prior to September 12, 2014 will have their memberships terminated no later than February 19, 2021. 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. The following tables summarize changes in mandatorily redeemable capital stock (dollars in millions): For the Three Months Ended September 30, 2020 2019 Balance, beginning of period $ 81 $ 203 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (27) (1) Balance, end of period $ 54 $ 202 For the Nine Months Ended September 30, 2020 2019 Balance, beginning of period $ 206 $ 255 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 6 9 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (158) (62) Balance, end of period $ 54 $ 202 The following table summarizes the Bank’s mandatorily redeemable capital stock by year of contractual redemption (dollars in millions): Year of Contractual Redemption 1 September 30, December 31, 2019 Due after one year through two years $ 11 $ 1 Due after two years through three years 2 11 Due after three years through four years 1 5 Thereafter 2 28 175 Past contractual redemption date due to outstanding activity with the Bank 12 14 Total $ 54 $ 206 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 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 separate restricted retained earnings account until the balance of that account equals at least one percent of its average balance of outstanding consolidated obligations calculated as of the last day of each calendar quarter. The restricted retained earnings are not available to pay dividends. At September 30, 2020 and December 31, 2019, the Bank’s restricted retained earnings account totaled $569 million and $504 million. PARTIAL RECOVERY OF PRIOR CAPITAL DISTRIBUTION TO FINANCING CORPORATION The Competitive Equality Banking Act of 1987 was enacted in August 1987, which, among other things, provided for the recapitalization of the Federal Savings and Loan Insurance Corporation through a newly-chartered entity, the Financing Corporation (FICO). The capitalization of FICO was provided by capital distributions from the FHLBanks to FICO in exchange for FICO nonvoting capital stock. Capital distributions were made by the FHLBanks in 1987, 1988, and 1989 that aggregated to $680 million. Upon passage of Financial Institutions Reform, Recovery and Enforcement Act of 1989, the FHLBanks’ previous investment in capital stock of FICO was determined to be non-redeemable and the FHLBanks charged their prior capital distributions to FICO directly against retained earnings. In connection with the dissolution of FICO in July 2020, FICO determined that excess funds aggregating to $200 million were available for distribution to its stockholders, the FHLBanks, and FICO distributed these funds to the FHLBanks in June 2020. Specifically, the Bank’s partial recovery of prior capital distribution approximated $26 million, which was determined based on its share of the $680 million originally contributed. The FHLBanks treated the receipt of these funds as a return of the FHLBanks’ investment in FICO capital stock, and therefore as a partial recovery of the prior capital distributions made by the FHLBanks to FICO. These funds have been credited to unrestricted retained earnings. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 3) Pension and postretirement benefits Total AOCI Balance, June 30, 2019 $ 56 $ (3) $ 53 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (17) — (17) Net current period other comprehensive income (loss) (17) — (17) Balance, September 30, 2019 $ 39 $ (3) $ 36 Balance, June 30, 2020 $ (56) $ (4) $ (60) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 64 — 64 Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) 64 1 65 Balance, September 30, 2020 $ 8 $ (3) $ 5 Balance, December 31, 2018 $ 87 $ (3) $ 84 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (48) — (48) Net current period other comprehensive income (loss) (48) — (48) Balance, September 30, 2019 $ 39 $ (3) $ 36 Balance, December 31, 2019 $ 48 $ (4) $ 44 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (40) — (40) Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) (40) 1 (39) Balance, September 30, 2020 $ 8 $ (3) $ 5 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 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. The Bank did not hold any nonpermanent capital at September 30, 2020 and December 31, 2019. In addition to the requirements previously discussed, during 2019, the Finance Agency finalized an Advisory Bulletin on capital stock (the Capital Stock AB) which required each FHLBank to maintain at all times a ratio of at least two percent of capital stock to total assets, effective February 2020. For purposes of the Capital Stock AB, capital stock includes mandatorily redeemable capital stock. The capital stock to total assets ratio is measured on a daily average basis at month end. 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): September 30, 2020 December 31, 2019 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 706 $ 5,845 $ 1,138 $ 6,888 Regulatory capital $ 3,646 $ 5,845 $ 5,184 $ 6,888 Leverage capital $ 4,558 $ 8,767 $ 6,480 $ 10,332 Capital-to-assets ratio 4.00 % 6.41 % 4.00 % 5.31 % Capital stock-to-assets ratio 2.00 % 3.72 % N/A 1 N/A 1 Leverage ratio 5.00 % 9.62 % 5.00 % 7.97 % |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
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. An active market for an asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 Inputs. 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. The Bank had no transfers of assets or liabilities between fair value levels during the nine months ended September 30, 2020 and 2019. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at September 30, 2020 (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 Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 788 $ 788 $ — $ — $ — $ 788 Interest-bearing deposits 436 — 436 — — 436 Securities purchased under agreements to resell 3,300 — 3,300 — — 3,300 Federal funds sold 5,600 — 5,600 — — 5,600 Trading securities 5,040 — 5,040 — — 5,040 Available-for-sale securities 16,361 — 16,361 — — 16,361 Held-to-maturity securities 1,968 — 2,073 6 — 2,079 Advances 48,462 — 49,084 — — 49,084 Mortgage loans held for portfolio, net 8,733 — 8,973 49 — 9,022 Accrued interest receivable 110 — 110 — — 110 Derivative assets, net 242 — 55 — 187 242 Other assets 35 35 — — — 35 Liabilities Deposits (1,614) — (1,614) — — (1,614) Consolidated obligations Discount notes (30,928) — (30,930) — — (30,930) Bonds (52,343) — (53,436) — — (53,436) Total consolidated obligations (83,271) — (84,366) — — (84,366) Mandatorily redeemable capital stock (54) (54) — — — (54) Accrued interest payable (181) — (181) — — (181) Derivative liabilities, net — — (369) — 369 — 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, 2019 (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 $ 1,029 $ 1,029 $ — $ — $ — $ 1,029 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 13,950 — 13,950 — — 13,950 Federal funds sold 4,605 — 4,605 — — 4,605 Trading securities 888 — 888 — — 888 Available-for-sale securities 16,651 — 16,651 — — 16,651 Held-to-maturity securities 2,370 — 2,432 7 — 2,439 Advances 80,360 — 80,576 — — 80,576 Mortgage loans held for portfolio, net 9,334 — 9,458 52 — 9,510 Accrued interest receivable 195 — 195 — — 195 Derivative assets, net 102 — 39 — 63 102 Other assets 34 34 — — — 34 Liabilities Deposits (1,112) — (1,112) — — (1,112) Consolidated obligations Discount notes (29,531) — (29,532) — — (29,532) Bonds (91,553) — (92,002) — — (92,002) Total consolidated obligations (121,084) — (121,534) — — (121,534) Mandatorily redeemable capital stock (206) (206) — — — (206) Accrued interest payable (252) — (252) — — (252) Derivative liabilities, net (1) — (202) — 201 (1) 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. 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 on 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 of 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 one of the designated pricing services, the Bank obtains prices from dealers. As of September 30, 2020 and December 31, 2019, 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 and the Related Hedged Items. 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 related cash collateral. 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 result in a receivable to the Bank, they are classified as an asset and, if classified as a payable to the clearing agent or counterparty, 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 federal funds OIS curve. • Forward interest rate assumption . The Bank utilizes the LIBOR swap curve or federal funds OIS 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. For the related hedged items, the fair value is estimated using a discounted cash flow analyses which typically considers the following inputs: • Discount rate assumption . The Bank utilizes the designated benchmark interest rate curve. • Volatility assumption . Market-based expectations of future interest rate volatility implied from current market prices for similar options. 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 on the Statements of Condition a t September 30, 2020 (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. Treasury obligations $ — $ 4,212 $ — $ — $ 4,212 Other U.S. obligations — 115 — — 115 GSE and Tennessee Valley Authority obligations — 65 — — 65 Other non-MBS — 262 — — 262 GSE multifamily MBS — 386 — — 386 Total trading securities — 5,040 — — 5,040 Available-for-sale securities Other U.S. obligations — 1,759 — — 1,759 GSE and Tennessee Valley Authority obligations — 1,036 — — 1,036 State or local housing agency obligations — 712 — — 712 Other non-MBS — 302 — — 302 U.S. obligations single-family MBS — 3,686 — — 3,686 GSE single-family MBS — 511 — — 511 GSE multifamily MBS — 8,355 — — 8,355 Total available-for-sale securities — 16,361 — — 16,361 Derivative assets, net Interest-rate related — 55 — 187 242 Other assets 35 — — — 35 Total recurring assets at fair value $ 35 $ 21,456 $ — $ 187 $ 21,678 Liabilities Derivative liabilities, net Interest-rate related — (369) — 369 — Total recurring liabilities at fair value $ — $ (369) $ — $ 369 $ — 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 on the Statements of Condition at December 31, 2019 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities Other U.S. obligations $ — $ 150 $ — $ — $ 150 GSE and Tennessee Valley Authority obligations — 60 — — 60 Other non-MBS — 259 — — 259 GSE multifamily MBS — 419 — — 419 Total trading securities — 888 — — 888 Available-for-sale securities Other U.S. obligations — 2,127 — — 2,127 GSE and Tennessee Valley Authority obligations — 1,060 — — 1,060 State or local housing agency obligations — 756 — — 756 Other non-MBS — 285 — — 285 U.S. obligations single-family MBS — 4,059 — — 4,059 GSE single-family MBS — 649 — — 649 GSE multifamily MBS — 7,715 — — 7,715 Total available-for-sale securities — 16,651 — — 16,651 Derivative assets, net Interest-rate related — 39 — 63 102 Other assets 34 — — — 34 Total recurring assets at fair value $ 34 $ 17,578 $ — $ 63 $ 17,675 Liabilities Derivative liabilities, net Interest-rate related — (202) — 201 (1) Total recurring liabilities at fair value $ — $ (202) $ — $ 201 $ (1) 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. 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 September 30, 2020 and December 31, 2019, 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 $2 million. These fair values were as of the date the fair value adjustment was recorded during the nine months ended September 30, 2020 and year-ended December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 , 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 $737.0 billion and $904.9 billion. The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): September 30, 2020 December 31, 2019 Expire Expire Total 1 Total Standby letters of credit 2 $ 9,520 $ 79 $ 9,599 $ 10,193 Standby bond purchase agreements 432 423 855 819 Commitments to purchase mortgage loans 182 — 182 127 Commitments to issue bonds 55 — 55 — Commitments to fund advances 713 — 713 527 1 The Bank has deemed it unnecessary to record any liability for credit losses on these agreements. 2 Excludes commitments to issue standby letters of credit of $34 million at December 31, 2019. At September 30, 2020, the Bank had no commitments to issue standby letters of credit outstanding. 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. 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 outstanding at September 30, 2020, range from less than one month to 10 years, currently no later than 2025. The carrying value of guarantees related to standby letters of credit are recorded in “Other liabilities” on the Statements of Condition and amounted to $2 million at both September 30, 2020 and December 31, 2019 . 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. All standby letters of credit, similar to advances, are fully collateralized at the time of issuance and subject to member borrowing limits as established by the Bank. 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 and typically allows the Bank to terminate the agreement upon the occurrence of a default event of the issuer. At September 30, 2020, the Bank had standby bond purchase agreements with eight housing associates. The standby bond purchase commitments entered into by the Bank have original expiration periods of up to seven Commitments to Purchase Mortgage Loans . The Bank enters into commitments that unconditionally obligate it to purchase mortgage loans from its members. These commitments are considered derivatives and their estimated fair value at September 30, 2020 and December 31, 2019 is reported in “Note 6 — Derivatives and Hedging Activities” as mortgage loan purchase commitments. Commitments to Issue Bonds . The Bank enters into commitments to issue consolidated obligation bonds in the normal course of its business. At September 30, 2020, the Bank had commitments to issue $55 million of consolidated obligation bonds. At December 31, 2019, the Bank had no commitments to issue consolidated obligation bonds. Commitments to Fund Advances. The Bank enters into commitments to fund additional advances up to 24 months in the future. At September 30, 2020 and December 31, 2019, the Bank had commitments to fund advances of $713 million and $527 million. 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 first loss account (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 $150 million and $138 million at September 30, 2020 and December 31, 2019. Legal Proceedings . As a result of the merger with the Federal Home Loan Bank of Seattle (Seattle Bank), 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, as of September 2020, all have been settled (one dismissed in part and settled in part). |
Activities with Stockholders
Activities with Stockholders | 9 Months Ended |
Sep. 30, 2020 | |
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 DIRECTORS’ 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): September 30, 2020 December 31, 2019 Amount % of Total Amount % of Total Advances $ 2,060 4 $ 3,337 4 Mortgage loans 175 2 208 2 Deposits 18 1 27 2 Capital stock 131 4 182 4 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 September 30, 2020, the Bank did not have any stockholders owning 10 percent or more of its total capital stock outstanding. At December 31, 2019, the Bank had the following business concentrations with stockholders (dollars in millions): December 31, 2019 Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,029 22 $ 25,450 $ 21 $ 1,059 Superior Guaranty Insurance Company 3 15 — — 350 — Total $ 1,044 22 $ 25,450 $ 371 $ 1,059 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, 2019. 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. |
Activities with Other FHLBanks
Activities with Other FHLBanks | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 and 2019 (dollars in millions): Other FHLBank Beginning Loans Principal Ending 2020 Boston $ — $ 250 $ (250) $ — 2019 Atlanta $ — $ 565 $ (565) $ — Indianapolis — 550 (550) — Topeka — 150 (150) — $ — $ 1,265 $ (1,265) $ — During the nine months ended September 30, 2020, the Bank did not borrow funds from other FHLBanks. The following table summarizes borrowing activity from other FHLBanks during the nine months ended September 30, 2019 (dollars in millions): Other FHLBank Beginning Borrowing Principal Payment Ending 2019 Atlanta $ 500 $ 400 $ (900) $ — At September 30, 2020 and 2019, none of the previous transactions were outstanding on the Bank’s Statements of Condition. The interest income and expense related to this activity were immaterial. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent EventsSubsequent events have been evaluated from October 1, 2020, through the time of the Form 10-Q filing with the Securities and Exchange Commission. No material subsequent events requiring disclosure were identified. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. |
New Accounting Pronouncements, Policy | Recently Adopted and Issued Accounting Guidance ADOPTED ACCOUNTING GUIDANCE Coronavirus Aid, Relief, and Economic Security (CARES) Act Section 4013 On March 27, 2020, the CARES Act was signed into law and provides optional, temporary relief from the accounting and reporting requirements for troubled debt restructurings (TDRs) on certain loan modifications related to the coronavirus pandemic (COVID-19) that are offered by financial institutions. The modifications that would qualify for this relief include any COVID-19 modification involving a conventional mortgage loan that was not more than 30 days past due as of December 31, 2019 and occurs between March 1, 2020 and the earlier of December 31, 2020, or 60 days following the termination of the national emergency declared by the President of the United States. In the second quarter of 2020, the Bank elected to apply the TDR relief provided by the CARES Act on its conventional mortgage loan portfolio. As such, all COVID-19 modifications meeting the provisions of the CARES Act will be excluded from TDR classification and accounting. COVID-19 modifications that do not meet the provisions of the CARES Act will continue to be assessed for TDR classification. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) On August 29, 2018, the Financial Accounting Standards Board (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 on the statement of income as the fees associated with the hosting element (service) and classify payments for capitalized implementation costs on 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 on 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 became effective for the Bank for the interim and annual periods beginning on January 1, 2020, and was adopted on a prospective basis. The adoption of this guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows. 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 became effective for the Bank for the interim and annual periods beginning on January 1, 2020. The adoption of this guidance did not have any effect on the Bank’s financial condition, results of operations, or cash flows; however, it reduced certain disclosures. 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 since origination that is 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). The FASB issued subsequent amendments to clarify the scope of the credit losses standard and address issues including, but not limited to, accrued interest receivable balances, recoveries, variable interest rates and prepayments. All of this guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2020 and was adopted on a modified retrospective basis. Upon adoption, the Bank recorded no credit losses on its advances, standby letters of credit, and other extensions of credit to borrowers as well as its investment portfolio. For its mortgage loans held for portfolio, the Bank recorded a $1 million decrease in its allowance for credit losses through a cumulative effect adjustment to retained earnings on January 1, 2020. This decrease was attributable to recoveries on mortgage loans that were previously written down and have had their collateral values subsequently improve, partially offset by the incorporation of lifetime credit losses on its mortgage loan portfolio. ISSUED ACCOUNTING GUIDANCE Reference Rate Reform (ASU 2020-04) On March 12, 2020, the FASB issued guidance to provide temporary optional expedients and exceptions to GAAP on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect to not apply certain modification accounting requirements to contracts affected by rate reform, if certain criteria are met. Additionally, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform. Lastly, entities can make a one-time election to sell and/or transfer to AFS or trading any HTM debt securities that refer to an interest rate affected by reference rate reform and were classified as HTM before January 1, 2020. This guidance becomes effective for the Bank upon election of any of the amendments and will be applied prospectively from the date elected until December 31, 2022. For certain hedge accounting optional expedients, they will be applied through the end of the hedging relationship, which could extend beyond December 31, 2022. The Bank is in the process of evaluating this guidance, and its 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 the annual period ending on December 31, 2020. Early adoption is permitted; however, the Bank does not intend to early adopt this guidance. The adoption of this guidance is not expected to have any effect on the Bank’s financial condition, results of operations, cash flows, or disclosures. |
Derivatives, Offsetting Fair Value Amounts, Policy | 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” in the 2019 Form 10-K.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. |
Advances, Prepayment Fees, Policy | 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 the hedged item fair value hedging adjustments in advance income on the Statements of Income. |
Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy | 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 on the Statements of Income. |
Fair Value of Financial Instruments, Policy | 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. An active market for an asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 Inputs. 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. |
Commitments and Contingencies, Policy | The Bank records legal expenses related to litigation settlements as incurred in other expenses on 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. |
Credit Loss, Financial Instrument [Policy Text Block] | Beginning January 1, 2020, the Bank adopted new accounting guidance pertaining to the measurement of credit losses on financial instruments that requires a financial asset or group of financial assets measured at amortized cost to be presented at the net amount expected to be collected. The new guidance also requires credit losses relating to these financial instruments as well as available-for-sale securities to be recorded through an allowance for credit losses. Upon adoption of this guidance, the Bank recorded a $1 million decrease in its allowance for credit losses on mortgage loans through a cumulative effect adjustment to retained earnings. See “Note 2 — Recently Adopted and Issued Accounting Guidance” for additional information. The new guidance is summarized below. Consistent with the modified retrospective method of adoption, the prior period has not been revised to conform to the new basis of accounting. See “Note 1 — Summary of Significant Accounting Policies” in the 2019 Form 10-K for information on the prior accounting treatment. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold. These investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which the Bank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See “Note 3 — Investments” for details on the allowance methodologies relating to these investments. Investment Securities Available for Sale . For securities classified as available-for-sale (AFS), the Bank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e. in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, the Bank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, the Bank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. If management intends to sell an impaired security classified as AFS, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in other income (loss). If management does not intend to sell an impaired security classified as AFS and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to “Net unrealized gains (losses) on available-for-sale securities” within accumulated other comprehensive income (loss) (AOCI). Prior to January 1, 2020, credit losses, if applicable, were recorded as a direct write-down of the AFS security carrying value. Held-to-Maturity . Securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity (HTM) and are 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. Accrued interest receivable is recorded separately on the Statements of Condition. HTM securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. Prior to January 1, 2020, credit losses, if applicable, were recorded as a direct write-down of the HTM security carrying value. See “Note 3 — Investments” for details on the allowance methodologies relating to AFS and HTM securities. Advances Advances (secured loans to members, former members, or eligible housing associates) are carried 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. For advances carried at amortized cost, accrued interest receivable is recorded separately on the Statements of Condition. The advances carried at amortized cost are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately, if applicable. See “Note 4 — Advances” for details on the allowance methodology relating to advances. 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. Accrued interest receivable is recorded separately on the Statements of Condition. The Bank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The Bank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, the Bank measures the estimated loss over the remaining life of a mortgage loan, which also considers how the Bank’s credit enhancements mitigate credit losses. The allowance excludes uncollectible accrued interest receivable, as the Bank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on non-accrual status. The Bank does not purchase mortgage loans with credit deterioration present at the time of purchase. The Bank includes estimates of expected recoveries within the allowance for credit losses. See “Note 5 — Mortgage Loans” for details on the allowance methodology relating to mortgage loans. Off-Balance Sheet Credit Exposures The Bank evaluates its off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding adjustment to the provision (reversal) for credit losses. See “Note 10 — Commitments and Contingencies” for additional information. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment Debt Securities Table [Line Items] | |
Debt Securities, Trading, and Equity Securities, FV-NI [Table Text Block] | Trading securities by major security type were as follows (dollars in millions): September 30, December 31, Non-mortgage-backed securities U.S. Treasury obligations 1 $ 4,212 $ — Other U.S. obligations 1 115 150 GSE and Tennessee Valley Authority obligations 65 60 Other 2 262 259 Total non-mortgage-backed securities 4,654 469 Mortgage-backed securities GSE multifamily 386 419 Total fair value $ 5,040 $ 888 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds. |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | AFS securities by major security type we re as follows (dollars in millions): September 30, 2020 Amortized 1 Gross Gross Non-mortgage-backed securities Other U.S. obligations 2 $ 1,766 $ 4 $ (11) $ 1,759 GSE and Tennessee Valley Authority obligations 1,020 16 — 1,036 State or local housing agency obligations 736 — (24) 712 Other 3 292 10 — 302 Total non-mortgage-backed securities 3,814 30 (35) 3,809 Mortgage-backed securities U.S. obligations single-family 2 3,673 15 (2) 3,686 GSE single-family 507 5 (1) 511 GSE multifamily 8,359 35 (39) 8,355 Total mortgage-backed securities 12,539 55 (42) 12,552 Total $ 16,353 $ 85 $ (77) $ 16,361 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $26 million at September 30, 2020. 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. AFS securities by major security type we re as follows (dollars in millions): December 31, 2019 Amortized 1 Gross Gross Non-mortgage-backed securities Other U.S. obligations 2 $ 2,122 $ 6 $ (1) $ 2,127 GSE and Tennessee Valley Authority obligations 1,034 26 — 1,060 State or local housing agency obligations 761 — (5) 756 Other 3 276 9 — 285 Total non-mortgage-backed securities 4,193 41 (6) 4,228 Mortgage-backed securities U.S. obligations single-family 2 4,044 17 (2) 4,059 GSE single-family 646 4 (1) 649 GSE multifamily 7,720 13 (18) 7,715 Total mortgage-backed securities 12,410 34 (21) 12,423 Total $ 16,603 $ 75 $ (27) $ 16,651 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $42 million at December 31, 2019. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block] | 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. September 30, 2020 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 550 $ (3) $ 747 $ (8) $ 1,297 $ (11) State or local housing agency obligations 403 (16) 296 (8) 699 (24) Total non-mortgage-backed securities 953 (19) 1,043 (16) 1,996 (35) Mortgage-backed securities U.S. obligations single-family 1 205 — 649 (2) 854 (2) GSE single-family — — 78 (1) 78 (1) GSE multifamily 1,668 (10) 3,694 (29) 5,362 (39) Total mortgage-backed securities 1,873 (10) 4,421 (32) 6,294 (42) Total $ 2,826 $ (29) $ 5,464 $ (48) $ 8,290 $ (77) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities Other U.S. obligations 1 $ 196 $ — $ 706 $ (1) $ 902 $ (1) State or local housing agency obligations 57 — 344 (5) 401 (5) Total non-mortgage-backed securities 253 — 1,050 (6) 1,303 (6) Mortgage-backed securities U.S. obligations single-family 1 169 — 564 (2) 733 (2) GSE single-family 133 — 104 (1) 237 (1) GSE multifamily 2,001 (8) 2,766 (10) 4,767 (18) Total mortgage-backed securities 2,303 (8) 3,434 (13) 5,737 (21) Total $ 2,556 $ (8) $ 4,484 $ (19) $ 7,040 $ (27) 1 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Debt Securities, Held-to-maturity [Table Text Block] | HTM securities by major security type wer e as follows (dollars in millions): September 30, 2020 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 380 $ 102 $ — $ 482 State or local housing agency obligations 207 2 (1) 208 Total non-mortgage-backed securities 587 104 (1) 690 Mortgage-backed securities U.S. obligations single-family 2 4 — — 4 GSE single-family 1,371 9 (1) 1,379 Private-label 6 — — 6 Total mortgage-backed securities 1,381 9 (1) 1,389 Total $ 1,968 $ 113 $ (2) $ 2,079 December 31, 2019 Amortized 1 Gross Gross Fair Non-mortgage-backed securities GSE and Tennessee Valley Authority obligations $ 384 $ 72 $ — $ 456 State or local housing agency obligations 221 1 (1) 221 Total non-mortgage-backed securities 605 73 (1) 677 Mortgage-backed securities U.S. obligations single-family 2 5 — — 5 U.S. obligations commercial 2 1 — — 1 GSE single-family 1,752 4 (7) 1,749 Private-label 7 — — 7 Total mortgage-backed securities 1,765 4 (7) 1,762 Total $ 2,370 $ 77 $ (8) $ 2,439 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion or amortization and excludes accrued interest receivable of $11 million and $7 million as of September 30, 2020 and December 31, 2019. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Available-for-sale Securities [Member] | |
Investment Debt Securities Table [Line Items] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | 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): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due in one year or less $ 9 $ 9 $ 92 $ 92 Due after one year through five years 2,179 2,183 2,099 2,110 Due after five years through ten years 864 861 1,294 1,302 Due after ten years 762 756 708 724 Total non-mortgage-backed securities 3,814 3,809 4,193 4,228 Mortgage-backed securities 12,539 12,552 12,410 12,423 Total $ 16,353 $ 16,361 $ 16,603 $ 16,651 |
Held-to-maturity Securities [Member] | |
Investment Debt Securities Table [Line Items] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | 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): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amortized Fair Amortized Fair Non-mortgage-backed securities Due after five years through ten years $ 451 $ 504 $ 412 $ 446 Due after ten years 136 186 193 231 Total non-mortgage-backed securities 587 690 605 677 Mortgage-backed securities 1,381 1,389 1,765 1,762 Total $ 1,968 $ 2,079 $ 2,370 $ 2,439 |
Advances (Tables)
Advances (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Advances [Abstract] | |
Schedule of Federal Home Loan Bank Advances by Year of Contractual Maturity [Table Text Block] | The following table summarizes the Bank’s advances outstanding by redemption term (dollars in millions): September 30, 2020 December 31, 2019 Redemption Term Amount 1 Weighted Amount 1 Weighted Overdrawn demand deposit accounts 2 $ — 1.30 % $ 1 2.73 % Due in one year or less 14,093 1.02 35,432 1.97 Due after one year through two years 9,379 1.83 21,959 2.23 Due after two years through three years 9,590 1.43 8,693 2.33 Due after three years through four years 6,886 1.65 5,109 2.51 Due after four years through five years 4,570 1.20 5,978 2.17 Thereafter 3,397 2.26 3,013 2.72 Total par value 47,915 1.46 % 80,185 2.16 % Premiums 21 25 Discounts (4) (6) Fair value hedging adjustments 530 156 Total $ 48,462 $ 80,360 1 Excludes accrued interest receivable of $15 million and $91 million as of September 30, 2020 and December 31, 2019. 2 The amount at September 30, 2020 was less than $1 million. The following table summarizes advances by year of redemption term or next call date for callable advances, and by year of redemption term or next put date for putable advances (dollars in millions): Redemption Term Redemption Term September 30, December 31, 2019 September 30, December 31, 2019 Overdrawn demand deposit accounts $ — $ 1 $ — $ 1 Due in one year or less 24,216 53,156 15,125 36,278 Due after one year through two years 7,486 11,967 9,383 22,101 Due after two years through three years 5,819 5,427 9,615 8,730 Due after three years through four years 4,676 3,802 5,951 5,004 Due after four years through five years 2,445 3,461 4,455 5,069 Thereafter 3,273 2,371 3,386 3,002 Total par value $ 47,915 $ 80,185 $ 47,915 $ 80,185 |
Mortgage Loans Held for Portf_2
Mortgage Loans Held for Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables present the payment status for MPF and MPP conventional mortgage loans (dollars in millions): September 30, 2020 Origination Year Prior to 2016 2016 to 2020 Total Past due 30 - 59 days $ 21 $ 21 $ 42 Past due 60 - 89 days 13 12 25 Past due 90 - 179 days 38 46 84 Past due 180 days or more 12 1 13 Total past due mortgage loans 84 80 164 Total current mortgage loans 2,193 5,874 8,067 Total amortized cost of mortgage loans 1 $ 2,277 $ 5,954 $ 8,231 December 31, 2019 Past due 30 - 59 days $ 57 Past due 60 - 89 days 14 Past due 90 - 179 days 10 Past due 180 days or more 10 Total past due mortgage loans 91 Total current mortgage loans 8,783 Total recorded investment of mortgage loans 1 $ 8,874 1 Amortized cost represents the unpaid principal balance adjusted for unamortized premiums, discounts, basis adjustments, and direct write-downs. Recorded investment at December 31, 2019 includes accrued interest receivable whereas the amortized cost at September 30, 2020 excludes accrued interest receivable. |
Mortgage Loans Held for Portfolio [Table Text Block] | The following table presents information on the Bank’s mortgage loans held for portfolio (dollars in millions): September 30, December 31, 2019 Fixed rate, long-term single-family mortgage loans $ 7,435 $ 8,192 Fixed rate, medium-term 1 single-family mortgage loans 1,177 1,016 Total unpaid principal balance 8,612 9,208 Premiums 114 125 Discounts (3) (4) Basis adjustments from mortgage loan purchase commitments 13 6 Total mortgage loans held for portfolio 2 8,736 9,335 Allowance for credit losses (3) (1) Total mortgage loans held for portfolio, net $ 8,733 $ 9,334 1 Medium-term is defined as a term of 15 years or less. 2 Excludes accrued interest receivable of $43 million and $48 million as of September 30, 2020 and December 31, 2019. The following table presents the Bank’s mortgage loans held for portfolio by collateral or guarantee type (dollars in millions): September 30, December 31, 2019 Conventional mortgage loans $ 8,117 $ 8,712 Government-insured mortgage loans 495 496 Total unpaid principal balance $ 8,612 $ 9,208 |
Financing Receivable, Past Due [Table Text Block] | The following tables present other delinquency statistics for MPF and MPP mortgage loans (dollars in millions): September 30, 2020 Amortized Cost Conventional Government-Insured Total In process of foreclosure 1 $ 4 $ 1 $ 5 Serious delinquency rate 2 1 % 2 % 1 % Past due 90 days or more and still accruing interest 3 $ — $ 11 $ 11 Non-accrual mortgage loans 4 $ 106 $ — $ 106 December 31, 2019 Recorded Investment Conventional Government- Insured Total In process of foreclosure 1 $ 5 $ 1 $ 6 Serious delinquency rate 2 — % 1 % — % Past due 90 days or more and still accruing interest 3 $ — $ 7 $ 7 Non-accrual mortgage loans 4 $ 31 $ — $ 31 1 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. 2 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of total mortgage loans. 3 Represents government-insured mortgage loans that are 90 days or more past due. |
Financing receivable, COVID-19 Forbearance | The following table presents the unpaid principal balance of conventional loans in a forbearance plan as a result of COVID-19 (dollars in millions): September 30, 2020 Past due 30 - 59 days $ 9 Past due 60 - 89 days 13 Past due 90 days or more and in non-accrual status 54 Current mortgage loans 9 Total unpaid principal balance 1 $ 85 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Assets [Table Text Block] | The following tables present 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): September 30, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 49 $ (44) $ — $ 5 Cleared derivatives 6 231 — 237 Total $ 55 $ 187 $ — $ 242 Derivative Liabilities Uncleared derivatives $ 368 $ (368) $ — $ — Cleared derivatives 1 (1) — — Total $ 369 $ (369) $ — $ — December 31, 2019 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 34 $ (28) $ — $ 6 Cleared derivatives 5 91 — 96 Total $ 39 $ 63 $ — $ 102 Derivative Liabilities Uncleared derivatives $ 199 $ (198) $ — $ 1 Cleared derivatives 3 (3) — — Total $ 202 $ (201) $ — $ 1 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable master netting requirements. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | 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): September 30, 2020 December 31, 2019 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments (fair value hedges) Interest rate swaps $ 34,883 $ 43 $ 285 $ 37,684 $ 31 $ 159 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps 1,807 12 84 1,038 8 43 Forward settlement agreements (TBAs) 176 — — 122 — — Mortgage loan purchase commitments 182 — — 127 — — Total derivatives not designated as hedging instruments 2,165 12 84 1,287 8 43 Total derivatives before netting and collateral adjustments $ 37,048 55 369 $ 38,971 39 202 Netting adjustments and cash collateral 1 187 (369) 63 (201) Total derivative assets and derivative liabilities $ 242 $ — $ 102 $ 1 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral, including accrued interest, held or placed with the same clearing agent and/or counterparty. At September 30, 2020 and December 31, 2019, cash collateral, including accrued interest, posted by the Bank was $557 million and $264 million. At September 30, 2020 the Bank held cash collateral, including accrued interest, from clearing agents or counterparties of $1 million. At December 31, 2019, the Bank did not hold any cash collateral, including accrued interest, from clearing agents or counterparties. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize the income effect from fair value hedging relationships recorded in net interest income as well as total income (expense) by product recorded on the Statements of Income (dollars in millions): For the Three Months Ended September 30, 2020 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 185 $ 33 $ (147) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ 15 $ 21 $ — Hedged items 3 (82) (55) 42 Net gains (losses) on fair value hedging relationships $ (67) $ (34) $ 42 For the Three Months Ended September 30, 2019 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 569 $ 118 $ (579) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (48) $ (72) $ 21 Hedged items 3 60 63 (52) Net gains (losses) on fair value hedging relationships $ 12 $ (9) $ (31) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value, net interest settlements on derivatives, and amortization of the financing element of off-market derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. The following tables summarize the income effect from fair value hedging relationships recorded in net interest income as well as total income (expense) by product recorded on the Statements of Income (dollars in millions): For the Nine Months Ended September 30, 2020 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 815 $ 170 $ (780) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (486) $ (329) $ 261 Hedged items 3 374 248 (185) Net gains (losses) on fair value hedging relationships $ (112) $ (81) $ 76 For the Nine Months Ended September 30, 2019 Interest Income (Expense) Advances Available-for-Sale Securities Consolidated Obligation Bonds Total interest income (expense) recorded on the Statements of Income 1 $ 1,997 $ 394 $ (1,810) Gains (losses) on fair value hedging relationships Interest rate contracts Derivatives 2 $ (288) $ (299) $ 217 Hedged items 3 344 294 (375) Net gains (losses) on fair value hedging relationships $ 56 $ (5) $ (158) 1 Amounts shown to give context to the disclosure and include total interest income (expense) of the products indicated, including coupon, prepayment fees, amortization, and derivative net interest settlements. Interest income (expense) amounts also include gains and losses on derivatives and hedged items in fair value hedging relationships. 2 Includes changes in fair value, net interest settlements on derivatives, and amortization of the financing element of off-market derivatives. 3 Includes changes in fair value and amortization/accretion of basis adjustments on closed hedge relationships. The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented on the Statements of Income (dollars in millions): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Derivatives not designated as hedging instruments (economic hedges) Interest rate swaps $ 6 $ (12) $ (40) $ (45) Forward settlement agreements (TBAs) (1) (2) (11) (6) Mortgage loan purchase commitments 1 2 9 6 Net interest settlements (5) — (10) — Net gains (losses) on derivatives and hedging activities $ 1 $ (12) $ (52) $ (45) |
Schedule of Derivative Instruments By Type, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize cumulative fair value hedging adjustments and the related amortized cost of the hedged items (dollars in millions): September 30, 2020 Line Item on Statements of Condition Amortized Cost of Hedged Asset/ Liability 1 Changes in Fair Value for Active Hedging Relationships Included in Amortized Cost Basis Adjustments for Discontinued Hedging Relationships Included in Amortized Cost Total Amount of Fair Value Hedging Basis Adjustments Advances $ 17,859 $ 507 $ 23 $ 530 Available-for-sale securities 7,193 415 — 415 Consolidated obligation bonds 13,535 197 (11) 186 December 31, 2019 Line Item on Statements of Condition Amortized Cost of Hedged Asset/ Liability 1 Changes in Fair Value for Active Hedging Relationships Included in Amortized Cost Basis Adjustments for Discontinued Hedging Relationships Included in Amortized Cost Total Amount of Fair Value Hedging Basis Adjustments Advances $ 14,806 $ 146 $ 10 $ 156 Available-for-sale securities 6,221 167 — 167 Consolidated obligation bonds 20,256 16 (15) 1 1 Includes the portion of amortized cost representing the hedged items in fair value hedging relationships. |
Offsetting Assets and Liabilities [Table Text Block] | The following tables present 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): September 30, 2020 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 49 $ (44) $ — $ 5 Cleared derivatives 6 231 — 237 Total $ 55 $ 187 $ — $ 242 Derivative Liabilities Uncleared derivatives $ 368 $ (368) $ — $ — Cleared derivatives 1 (1) — — Total $ 369 $ (369) $ — $ — December 31, 2019 Derivative Instruments Meeting Netting Requirements Gross Amount Recognized 1 Gross Amount of Netting Adjustments and Cash Collateral Derivative Instruments Not Meeting Netting Requirements 2 Total Derivative Assets and Total Derivative Liabilities Derivative Assets Uncleared derivatives $ 34 $ (28) $ — $ 6 Cleared derivatives 5 91 — 96 Total $ 39 $ 63 $ — $ 102 Derivative Liabilities Uncleared derivatives $ 199 $ (198) $ — $ 1 Cleared derivatives 3 (3) — — Total $ 202 $ (201) $ — $ 1 1 Represents derivative assets and derivative liabilities prior to netting adjustments and cash collateral, including accrued interest. 2 Represents mortgage loan purchase commitments not subject to enforceable master netting requirements. |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table summarizes the Bank’s discount notes (dollars in millions): September 30, 2020 December 31, 2019 Amount Weighted Amount Weighted Par value $ 30,935 0.12 % $ 29,592 1.65 % Discounts and concessions 1 (7) (61) Total $ 30,928 $ 29,531 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes. |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the Bank’s bonds outstanding by contractual maturity (dollars in millions): September 30, 2020 December 31, 2019 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 28,538 0.69 % $ 58,106 1.81 % Due after one year through two years 9,516 2.18 16,997 1.91 Due after two years through three years 3,454 2.30 3,907 2.35 Due after three years through four years 3,588 3.05 3,083 2.53 Due after four years through five years 1,294 2.30 3,503 3.03 Thereafter 5,580 2.61 5,777 3.00 Total par value 51,970 1.48 % 91,373 1.99 % Premiums 215 217 Discounts and concessions 1 (28) (38) Fair value hedging adjustments 186 1 Total $ 52,343 $ 91,553 1 Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds. The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions): Year of Contractual Maturity or Next Call Date September 30, December 31, Due in one year or less $ 30,881 $ 60,639 Due after one year through two years 10,198 17,643 Due after two years through three years 3,587 4,410 Due after three years through four years 3,638 2,788 Due after four years through five years 1,135 3,376 Thereafter 2,531 2,517 Total par value $ 51,970 $ 91,373 |
Schedule of Long-term Debt by Call Feature [Table Text Block] | The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions): September 30, December 31, Non-callable or non-putable $ 48,687 $ 87,246 Callable 3,283 4,127 Total par value $ 51,970 $ 91,373 |
Capital (Tables)
Capital (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Total Capital [Abstract] | |
Mandatorily Redeemable Capital Stock [Table Text Block] | The following tables summarize changes in mandatorily redeemable capital stock (dollars in millions): For the Three Months Ended September 30, 2020 2019 Balance, beginning of period $ 81 $ 203 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (27) (1) Balance, end of period $ 54 $ 202 For the Nine Months Ended September 30, 2020 2019 Balance, beginning of period $ 206 $ 255 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 6 9 Net payments for repurchases/redemptions of mandatorily redeemable capital stock (158) (62) Balance, end of period $ 54 $ 202 The following table summarizes the Bank’s mandatorily redeemable capital stock by year of contractual redemption (dollars in millions): Year of Contractual Redemption 1 September 30, December 31, 2019 Due after one year through two years $ 11 $ 1 Due after two years through three years 2 11 Due after three years through four years 1 5 Thereafter 2 28 175 Past contractual redemption date due to outstanding activity with the Bank 12 14 Total $ 54 $ 206 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. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes changes in AOCI (dollars in millions): Net unrealized gains (losses) on AFS securities (Note 3) Pension and postretirement benefits Total AOCI Balance, June 30, 2019 $ 56 $ (3) $ 53 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (17) — (17) Net current period other comprehensive income (loss) (17) — (17) Balance, September 30, 2019 $ 39 $ (3) $ 36 Balance, June 30, 2020 $ (56) $ (4) $ (60) Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities 64 — 64 Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) 64 1 65 Balance, September 30, 2020 $ 8 $ (3) $ 5 Balance, December 31, 2018 $ 87 $ (3) $ 84 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (48) — (48) Net current period other comprehensive income (loss) (48) — (48) Balance, September 30, 2019 $ 39 $ (3) $ 36 Balance, December 31, 2019 $ 48 $ (4) $ 44 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) on AFS securities (40) — (40) Reclassifications from other comprehensive income (loss) to net income Amortization - pension and postretirement — 1 1 Net current period other comprehensive income (loss) (40) 1 (39) Balance, September 30, 2020 $ 8 $ (3) $ 5 |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The following table shows the Bank’s compliance with the Finance Agency’s regulatory capital requirements (dollars in millions): September 30, 2020 December 31, 2019 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 706 $ 5,845 $ 1,138 $ 6,888 Regulatory capital $ 3,646 $ 5,845 $ 5,184 $ 6,888 Leverage capital $ 4,558 $ 8,767 $ 6,480 $ 10,332 Capital-to-assets ratio 4.00 % 6.41 % 4.00 % 5.31 % Capital stock-to-assets ratio 2.00 % 3.72 % N/A 1 N/A 1 Leverage ratio 5.00 % 9.62 % 5.00 % 7.97 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank’s financial instruments at September 30, 2020 (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 Adjustments and Cash Collateral 1 Total Assets Cash and due from banks $ 788 $ 788 $ — $ — $ — $ 788 Interest-bearing deposits 436 — 436 — — 436 Securities purchased under agreements to resell 3,300 — 3,300 — — 3,300 Federal funds sold 5,600 — 5,600 — — 5,600 Trading securities 5,040 — 5,040 — — 5,040 Available-for-sale securities 16,361 — 16,361 — — 16,361 Held-to-maturity securities 1,968 — 2,073 6 — 2,079 Advances 48,462 — 49,084 — — 49,084 Mortgage loans held for portfolio, net 8,733 — 8,973 49 — 9,022 Accrued interest receivable 110 — 110 — — 110 Derivative assets, net 242 — 55 — 187 242 Other assets 35 35 — — — 35 Liabilities Deposits (1,614) — (1,614) — — (1,614) Consolidated obligations Discount notes (30,928) — (30,930) — — (30,930) Bonds (52,343) — (53,436) — — (53,436) Total consolidated obligations (83,271) — (84,366) — — (84,366) Mandatorily redeemable capital stock (54) (54) — — — (54) Accrued interest payable (181) — (181) — — (181) Derivative liabilities, net — — (369) — 369 — 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, 2019 (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 $ 1,029 $ 1,029 $ — $ — $ — $ 1,029 Interest-bearing deposits 1 — 1 — — 1 Securities purchased under agreements to resell 13,950 — 13,950 — — 13,950 Federal funds sold 4,605 — 4,605 — — 4,605 Trading securities 888 — 888 — — 888 Available-for-sale securities 16,651 — 16,651 — — 16,651 Held-to-maturity securities 2,370 — 2,432 7 — 2,439 Advances 80,360 — 80,576 — — 80,576 Mortgage loans held for portfolio, net 9,334 — 9,458 52 — 9,510 Accrued interest receivable 195 — 195 — — 195 Derivative assets, net 102 — 39 — 63 102 Other assets 34 34 — — — 34 Liabilities Deposits (1,112) — (1,112) — — (1,112) Consolidated obligations Discount notes (29,531) — (29,532) — — (29,532) Bonds (91,553) — (92,002) — — (92,002) Total consolidated obligations (121,084) — (121,534) — — (121,534) Mandatorily redeemable capital stock (206) (206) — — — (206) Accrued interest payable (252) — (252) — — (252) Derivative liabilities, net (1) — (202) — 201 (1) 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. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes, for each hierarchy level, the Bank’s assets and liabilities that are measured at fair value on the Statements of Condition a t September 30, 2020 (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. Treasury obligations $ — $ 4,212 $ — $ — $ 4,212 Other U.S. obligations — 115 — — 115 GSE and Tennessee Valley Authority obligations — 65 — — 65 Other non-MBS — 262 — — 262 GSE multifamily MBS — 386 — — 386 Total trading securities — 5,040 — — 5,040 Available-for-sale securities Other U.S. obligations — 1,759 — — 1,759 GSE and Tennessee Valley Authority obligations — 1,036 — — 1,036 State or local housing agency obligations — 712 — — 712 Other non-MBS — 302 — — 302 U.S. obligations single-family MBS — 3,686 — — 3,686 GSE single-family MBS — 511 — — 511 GSE multifamily MBS — 8,355 — — 8,355 Total available-for-sale securities — 16,361 — — 16,361 Derivative assets, net Interest-rate related — 55 — 187 242 Other assets 35 — — — 35 Total recurring assets at fair value $ 35 $ 21,456 $ — $ 187 $ 21,678 Liabilities Derivative liabilities, net Interest-rate related — (369) — 369 — Total recurring liabilities at fair value $ — $ (369) $ — $ 369 $ — 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 on the Statements of Condition at December 31, 2019 (dollars in millions): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustments and Cash Collateral 1 Total Assets Trading securities Other U.S. obligations $ — $ 150 $ — $ — $ 150 GSE and Tennessee Valley Authority obligations — 60 — — 60 Other non-MBS — 259 — — 259 GSE multifamily MBS — 419 — — 419 Total trading securities — 888 — — 888 Available-for-sale securities Other U.S. obligations — 2,127 — — 2,127 GSE and Tennessee Valley Authority obligations — 1,060 — — 1,060 State or local housing agency obligations — 756 — — 756 Other non-MBS — 285 — — 285 U.S. obligations single-family MBS — 4,059 — — 4,059 GSE single-family MBS — 649 — — 649 GSE multifamily MBS — 7,715 — — 7,715 Total available-for-sale securities — 16,651 — — 16,651 Derivative assets, net Interest-rate related — 39 — 63 102 Other assets 34 — — — 34 Total recurring assets at fair value $ 34 $ 17,578 $ — $ 63 $ 17,675 Liabilities Derivative liabilities, net Interest-rate related — (202) — 201 (1) Total recurring liabilities at fair value $ — $ (202) $ — $ 201 $ (1) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Commitments [Table Text Block] | The following table summarizes additional off-balance sheet commitments for the Bank (dollars in millions): September 30, 2020 December 31, 2019 Expire Expire Total 1 Total Standby letters of credit 2 $ 9,520 $ 79 $ 9,599 $ 10,193 Standby bond purchase agreements 432 423 855 819 Commitments to purchase mortgage loans 182 — 182 127 Commitments to issue bonds 55 — 55 — Commitments to fund advances 713 — 713 527 1 The Bank has deemed it unnecessary to record any liability for credit losses on these agreements. 2 Excludes commitments to issue standby letters of credit of $34 million at December 31, 2019. At September 30, 2020, the Bank had no commitments to issue standby letters of credit outstanding. |
Activities with Stockholders (T
Activities with Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions by Balance Sheet Grouping [Table Text Block] | The following table summarizes the Bank’s outstanding transactions with Directors’ Financial Institutions (dollars in millions): September 30, 2020 December 31, 2019 Amount % of Total Amount % of Total Advances $ 2,060 4 $ 3,337 4 Mortgage loans 175 2 208 2 Deposits 18 1 27 2 Capital stock 131 4 182 4 |
Schedule Of Related Party Transactions By Related Party [Tables Text Block] | At September 30, 2020, the Bank did not have any stockholders owning 10 percent or more of its total capital stock outstanding. At December 31, 2019, the Bank had the following business concentrations with stockholders (dollars in millions): December 31, 2019 Capital Stock Mortgage Interest Stockholder Amount % of Total 1 Advances Loans Income 2 Wells Fargo Bank, N.A. $ 1,029 22 $ 25,450 $ 21 $ 1,059 Superior Guaranty Insurance Company 3 15 — — 350 — Total $ 1,044 22 $ 25,450 $ 371 $ 1,059 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, 2019. 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. |
Activities with Other FHLBanks
Activities with Other FHLBanks (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Activities with Other FHLBanks [Abstract] | |
Schedule of Loans to Other Federal Home Loan Banks [Table Text Block] | The following table summarizes loan activity to other FHLBanks during the nine months ended September 30, 2020 and 2019 (dollars in millions): Other FHLBank Beginning Loans Principal Ending 2020 Boston $ — $ 250 $ (250) $ — 2019 Atlanta $ — $ 565 $ (565) $ — Indianapolis — 550 (550) — Topeka — 150 (150) — $ — $ 1,265 $ (1,265) $ — |
Schedule of Loans From Other Federal Home Loan Banks [Table Text Block] | The following table summarizes borrowing activity from other FHLBanks during the nine months ended September 30, 2019 (dollars in millions): Other FHLBank Beginning Borrowing Principal Payment Ending 2019 Atlanta $ 500 $ 400 $ (900) $ — |
Background Information (Details
Background Information (Details) | Sep. 30, 2020bank |
Background Information [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities Excluding Private Label Mortgage Back Securities Amortized Cost, Percentage Rated Single-A Or Above | 100.00% | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 | |
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss | 11 | $ 7 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | 26 | 42 |
Securities Purchased under Agreements to Resell, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 0 | |
Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities Private Label Mortgage Back Securities Amortized Cost, Percentage Rated Single-A Or Above | 69.00% | |
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated | 35.00% | |
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Rated Below Triple-B | 0.00% | |
Interest-Bearing Deposits and Federal Funds Sold [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | $ 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 0 | 0 |
Securities Borrowed or Purchased under Agreements to Resell [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | 0 | $ 2 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 0 |
Investments (Trading Major Secu
Investments (Trading Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 5,040 | $ 888 |
US Treasury Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 4,212 | 0 |
U.S. obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 115 | 150 |
GSE obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 65 | 60 |
Other [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 262 | 259 |
Non-mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 4,654 | 469 |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 386 | $ 419 |
Investments (AFS Major Security
Investments (AFS Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | $ 16,361 | $ 16,651 |
Debt Securities, Available-for-sale, Amortized Cost | 16,353 | 16,603 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 85 | 75 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (77) | (27) |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 1,759 | 2,127 |
Debt Securities, Available-for-sale, Amortized Cost | 1,766 | 2,122 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4 | 6 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (11) | (1) |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 1,036 | 1,060 |
Debt Securities, Available-for-sale, Amortized Cost | 1,020 | 1,034 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 16 | 26 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
State or local housing agency obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 712 | 756 |
Debt Securities, Available-for-sale, Amortized Cost | 736 | 761 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (24) | (5) |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 302 | 285 |
Debt Securities, Available-for-sale, Amortized Cost | 292 | 276 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 10 | 9 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 3,809 | 4,228 |
Debt Securities, Available-for-sale, Amortized Cost | 3,814 | 4,193 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 30 | 41 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (35) | (6) |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 12,552 | 12,423 |
Debt Securities, Available-for-sale, Amortized Cost | 12,539 | 12,410 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 55 | 34 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (42) | (21) |
Single Family [Member] | U.S. obligations MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 3,686 | 4,059 |
Debt Securities, Available-for-sale, Amortized Cost | 3,673 | 4,044 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 15 | 17 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2) | (2) |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 511 | 649 |
Debt Securities, Available-for-sale, Amortized Cost | 507 | 646 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5 | 4 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | (1) |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 8,355 | 7,715 |
Debt Securities, Available-for-sale, Amortized Cost | 8,359 | 7,720 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 35 | 13 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ (39) | $ (18) |
Investments (AFS Unrealized Los
Investments (AFS Unrealized Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (29) | $ (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 5,464 | 4,484 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 8,290 | 7,040 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (77) | (27) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 2,826 | 2,556 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (48) | (19) |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 747 | 706 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,297 | 902 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (11) | (1) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 550 | 196 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8) | (1) |
State or local housing agency obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (16) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 296 | 344 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 699 | 401 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (24) | (5) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 403 | 57 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8) | (5) |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (19) | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1,043 | 1,050 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,996 | 1,303 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (35) | (6) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 953 | 253 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (16) | (6) |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (10) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,421 | 3,434 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 6,294 | 5,737 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (42) | (21) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,873 | 2,303 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (32) | (13) |
Single Family [Member] | U.S. obligations MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 649 | 564 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 854 | 733 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (2) | (2) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 205 | 169 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (2) |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 78 | 104 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 78 | 237 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (1) | (1) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 133 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (1) |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (10) | (8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,694 | 2,766 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 5,362 | 4,767 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (39) | (18) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,668 | 2,001 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (29) | $ (10) |
Investments (AFS Contractual Ma
Investments (AFS Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | $ 16,361 | $ 16,651 |
Debt Securities, Available-for-sale, Amortized Cost | 16,353 | 16,603 |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 3,809 | 4,228 |
Debt Securities, Available-for-sale, Amortized Cost | 3,814 | 4,193 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost | 762 | 708 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Amortized Cost | 864 | 1,294 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost | 9 | 92 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 9 | 92 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Amortized Cost | 2,179 | 2,099 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Fair Value | 2,183 | 2,110 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Fair Value | 861 | 1,302 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 756 | 724 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 12,552 | 12,423 |
Debt Securities, Available-for-sale, Amortized Cost | $ 12,539 | $ 12,410 |
Investments (HTM Major Security
Investments (HTM Major Security Types) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | $ 113 | $ 77 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (2) | (8) |
Held-to-Maturity Securities, Fair Value | 2,079 | 2,439 |
Amortized Cost | 1,968 | 2,370 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 102 | 72 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 482 | 456 |
Amortized Cost | 380 | 384 |
State or local housing agency obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 2 | 1 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (1) | (1) |
Held-to-Maturity Securities, Fair Value | 208 | 221 |
Amortized Cost | 207 | 221 |
Non-mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 104 | 73 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (1) | (1) |
Held-to-Maturity Securities, Fair Value | 690 | 677 |
Amortized Cost | 587 | 605 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 9 | 4 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (1) | (7) |
Held-to-Maturity Securities, Fair Value | 1,389 | 1,762 |
Amortized Cost | 1,381 | 1,765 |
Single Family [Member] | U.S. obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 4 | 5 |
Amortized Cost | 4 | 5 |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 9 | 4 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (1) | (7) |
Held-to-Maturity Securities, Fair Value | 1,379 | 1,749 |
Amortized Cost | 1,371 | 1,752 |
Commercial Mortgage Backed Securities [Member] | U.S. obligations MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | |
Held-to-Maturity Securities, Fair Value | 1 | |
Amortized Cost | 1 | |
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 0 |
Held-to-Maturity Securities, Fair Value | 6 | 7 |
Amortized Cost | $ 6 | $ 7 |
Investments (HTM Contractual Ma
Investments (HTM Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,968 | $ 2,370 |
Held-to-Maturity Securities, Fair Value | 2,079 | 2,439 |
Non-mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Amortized Cost | 451 | 412 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Fair Value | 504 | 446 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost | 136 | 193 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | 186 | 231 |
Amortized Cost | 587 | 605 |
Held-to-Maturity Securities, Fair Value | 690 | 677 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,381 | 1,765 |
Held-to-Maturity Securities, Fair Value | $ 1,389 | $ 1,762 |
Investments (Sales of Securitie
Investments (Sales of Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Debt Securities, Trading, Unrealized Gain | $ (10) | $ 8 | $ 26 | $ 36 |
Debt Securities, Trading, Realized Gain (Loss) | 0 | 0 | 0 | 0 |
Proceeds from Sale of Debt Securities, Available-for-sale | 0 | 0 | 0 | 0 |
Proceeds from Sale of Held-to-maturity Securities | $ 0 | $ 0 | $ 0 | $ 0 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Advances | $ 48,462 | $ 80,360 |
Federal Home Loan Bank, Advances, Par Value | 47,915 | 80,185 |
Financing Receivable, Nonaccrual | 106 | 31 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | 10,500 | 25,500 |
Federal Home Loan Bank, Advances, Putable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | 1,400 | 1,400 |
Wells Fargo Bank N.A. [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances | $ 25,450 | |
Federal Home Loan Bank Advances, Percent | 32.00% | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | 15 | $ 91 |
Financing Receivable, Past Due | 0 | 0 |
Financing Receivable, Nonaccrual | 0 | 0 |
Financing Receivable, Troubled Debt Restructuring | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Advances [Abstract] | ||
Overdrawn demand deposit accounts | $ 0 | $ 1 |
Weighted Average Interest Rate on Overdrawn Demand Deposit | 1.30% | 2.73% |
Due in one year or less | $ 14,093 | $ 35,432 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Next Twelve Rolling Months | 1.02% | 1.97% |
Due after one year through two years | $ 9,379 | $ 21,959 |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Two | 1.83% | 2.23% |
Due after two years through three years | $ 9,590 | $ 8,693 |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Three | 1.43% | 2.33% |
Due after three years through four years | $ 6,886 | $ 5,109 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Four | 1.65% | 2.51% |
Due after four years through five years | $ 4,570 | $ 5,978 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Five | 1.20% | 2.17% |
Thereafter | $ 3,397 | $ 3,013 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing after Rolling Year Five | 2.26% | 2.72% |
Federal Home Loan Bank, Advances, Par Value | $ 47,915 | $ 80,185 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 1.46% | 2.16% |
Premiums | $ 21 | $ 25 |
Discounts | (4) | (6) |
Fair value hedging adjustments | 530 | 156 |
Total | 48,462 | 80,360 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Next Rolling Twelve Months | 24,216 | 53,156 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months | 15,125 | 36,278 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Two | 7,486 | 11,967 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two | 9,383 | 22,101 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Three | 5,819 | 5,427 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three | 9,615 | 8,730 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Four | 4,676 | 3,802 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four | 5,951 | 5,004 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, in Rolling Year Five | 2,445 | 3,461 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five | 4,455 | 5,069 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, after Rolling Year Five | 3,273 | 2,371 |
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five | $ 3,386 | $ 3,002 |
Advances (Prepayment Fees) (Det
Advances (Prepayment Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Advances [Abstract] | ||||
Prepayment fees on advances, net | $ 45 | $ 2 | $ 58 | $ 3 |
Mortgage Loans Held for Portf_3
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 8,612 | $ 9,208 |
Loans and Leases Receivable, Unamortized Premiums | 114 | 125 |
Loans and Leases Receivable, Unamortized Discounts | (3) | (4) |
Loans and Leases Receivable, Hedging Basis Adjustment | 13 | 6 |
Loans and Leases Receivable, Net of Deferred Income | 8,736 | 9,335 |
Loans and Leases Receivable, Allowance | (3) | (1) |
Loans and Leases Receivable, Net Amount | 8,733 | 9,334 |
Single Family [Member] | Fixed rate, long-term single family mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | 7,435 | 8,192 |
Single Family [Member] | Fixed rate, medium-term single family mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable, Unpaid Principal Balance | $ 1,177 | $ 1,016 |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | $ 8,612 | $ 9,208 |
US Government Agency Insured Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | 495 | 496 |
Conventional Mortgage Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, before Fees, Gross | $ 8,117 | $ 8,712 |
Mortgage Loans Held for Portf_5
Mortgage Loans Held for Portfolio (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
TDRs under CARES Act Relief | $ 0 | |
Loans in Forbearance Agreement | $ 85 | |
Loans in Forbearance Percent | 1.00% | |
Loans and Leases Receivable, Allowance | $ 3 | $ 1 |
MPP Program Percent | 2.00% | 2.00% |
MPF Program Percent | 98.00% | 98.00% |
Real Estate Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $ 43 | $ 48 |
Conventional Mortgage Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Nonaccrual, No Allowance | 106 | |
US Government Agency Insured Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing Receivable, Allowance for Credit Loss | 0 | $ 0 |
Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 9 | |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 9 | |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | 13 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans in Forbearance Agreement | $ 54 |
Mortgage Loans Held for Portf_6
Mortgage Loans Held for Portfolio (Payment Status) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 8,736 | $ 9,335 |
Conventional Mortgage Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,277 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 5,954 | |
Loans and Leases Receivable, Net of Deferred Income | 8,231 | 8,874 |
Financing Receivable, Past Due | 91 | |
Financing Receivable, Not Past Due | 8,783 | |
Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 84 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 80 | |
Loans and Leases Receivable, Net of Deferred Income | 164 | |
Conventional Mortgage Loan [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,193 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 5,874 | |
Loans and Leases Receivable, Net of Deferred Income | 8,067 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 21 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 21 | |
Loans and Leases Receivable, Net of Deferred Income | 42 | |
Financing Receivable, Past Due | 57 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 13 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 12 | |
Loans and Leases Receivable, Net of Deferred Income | 25 | |
Financing Receivable, Past Due | 14 | |
Financing Receivables, 90 to 179 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 38 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 46 | |
Loans and Leases Receivable, Net of Deferred Income | 84 | |
Financing Receivable, Past Due | 10 | |
Financing Receivables, Greater than 180 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 12 | |
Financing Receivable, Originated, Current Fiscal Year and Preceeding Four Preceeding Fiscal Years | 1 | |
Loans and Leases Receivable, Net of Deferred Income | $ 13 | |
Financing Receivable, Past Due | $ 10 |
Mortgage Loans Held for Portf_7
Mortgage Loans Held for Portfolio (Other Delinquency Statistics) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 5 | $ 6 |
Loans and Leases Receivable, Serious Delinquencies Ratio | 1.00% | 0.00% |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 11 | $ 7 |
Financing Receivable, Nonaccrual | 106 | 31 |
US Government Agency Insured Loans [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 1 | $ 1 |
Loans and Leases Receivable, Serious Delinquencies Ratio | 2.00% | 1.00% |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 11 | $ 7 |
Financing Receivable, Nonaccrual | 0 | 0 |
Conventional Mortgage Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 4 | $ 5 |
Loans and Leases Receivable, Serious Delinquencies Ratio | 1.00% | 0.00% |
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Financing Receivable, Nonaccrual, No Allowance | 106 | |
Financing Receivable, Nonaccrual | $ 106 | $ 31 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 37,048 | $ 38,971 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 55 | 39 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 369 | 202 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 187 | 63 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (369) | (201) |
Derivative assets, net | 242 | 102 |
Derivative liabilities, net | 0 | 1 |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 557 | 264 |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 1 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 34,883 | 37,684 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 43 | 31 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 285 | 159 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,165 | 1,287 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 12 | 8 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 84 | 43 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,807 | 1,038 |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 12 | 8 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 84 | 43 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 176 | 122 |
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 |
Mortgages [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 182 | 127 |
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 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1 | $ (12) | $ (52) | $ (45) |
Gain (Loss) on Derivative Instruments [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 6 | (12) | (40) | (45) |
Gain (Loss) on Derivative Instruments [Member] | Net Interest Settlements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (5) | 0 | (10) | 0 |
Gain (Loss) on Derivative Instruments [Member] | Collateralized Mortgage Backed Securities [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1) | (2) | (11) | (6) |
Mortgage Receivable [Member] | Gain (Loss) on Derivative Instruments [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1 | $ 2 | $ 9 | $ 6 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Credit Risk Exposure) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral Already Posted, Aggregate Fair Value | $ 0 | |
Derivative, Net Liability Position, Aggregate Fair Value | 0 | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 1 | $ 0 |
Additional Collateral, Aggregate Fair Value | $ 0 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 55 | $ 39 |
Derivative Liability, Fair Value, Gross Liability | 369 | 202 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 187 | 63 |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (369) | (201) |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative assets, net | 242 | 102 |
Derivative liabilities, net | 0 | 1 |
Over the Counter [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 49 | 34 |
Derivative Liability, Fair Value, Gross Liability | 368 | 199 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (44) | (28) |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (368) | (198) |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative assets, net | 5 | 6 |
Derivative liabilities, net | 0 | 1 |
Exchange Cleared [Member] | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 6 | 5 |
Derivative Liability, Fair Value, Gross Liability | 1 | 3 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 231 | 91 |
Derivative Asset, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (1) | (3) |
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 |
Derivative assets, net | 237 | 96 |
Derivative liabilities, net | $ 0 | $ 0 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Net Gains (Losses) on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Advances | $ 185 | $ 569 | $ 815 | $ 1,997 |
Available-for-sale securities | 33 | 118 | 170 | 394 |
Consolidated obligations - Bonds | (147) | (579) | (780) | (1,810) |
Interest Rate Contract [Member] | Interest Expense [Member] | Consolidated Obligation Bonds [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivatives | 0 | 21 | 261 | 217 |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 42 | (52) | (185) | (375) |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | 42 | (31) | 76 | (158) |
Interest Rate Contract [Member] | Interest Income [Member] | Advances [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivatives | 15 | (48) | (486) | (288) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (82) | 60 | 374 | 344 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | (67) | 12 | (112) | 56 |
Interest Rate Contract [Member] | Interest Income [Member] | Available-for-sale Securities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) on Derivatives | 21 | (72) | (329) | (299) |
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (55) | 63 | 248 | 294 |
Gain (Loss) on Fair Value Hedges Recognized in Net Interest Income | $ (34) | $ (9) | $ (81) | $ (5) |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Advances [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset, Fair Value Hedge | $ 17,859 | $ 14,806 |
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease) | 507 | 146 |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 23 | 10 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 530 | 156 |
Available-for-sale Securities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Asset, Fair Value Hedge | 7,193 | 6,221 |
Hedged Asset, Active Fair Value Hedge, Cumulative Increase (Decrease) | 415 | 167 |
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 415 | 167 |
Consolidated Obligation Bonds [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged Liability, Fair Value Hedge | 13,535 | 20,256 |
Hedged Liability, Active Fair Value Hedge, Cumulative Increase (Decrease) | 197 | 16 |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 186 | 1 |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | $ (11) | $ (15) |
Consolidated Obligations Narrat
Consolidated Obligations Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 737 | $ 904.9 |
FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | $ 819.9 | $ 1,025.9 |
Consolidated Obligations Discou
Consolidated Obligations Discount Notes (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Total | $ 30,928 | $ 29,531 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Par value | $ 30,935 | $ 29,592 |
Par Value, Weighted Average Interest Rate | 0.12% | 1.65% |
Discounts and concessions | $ (7) | $ (61) |
Consolidated Obligations Bonds
Consolidated Obligations Bonds (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total par value | $ 51,970 | $ 91,373 |
Federal Home Loan Bank, Consolidated Obligations, Bonds | 52,343 | 91,553 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 51,970 | 91,373 |
Federal Home Loan Bank, Consolidated Obligations, Bonds | 52,343 | 91,553 |
Due in one year or less | $ 28,538 | $ 58,106 |
Due in one year or less, Weighted Average Interest Rate | 0.69% | 1.81% |
Due after one year through two years, Weighted Average Interest Rate | 2.18% | 1.91% |
Due after one year through two years | $ 9,516 | $ 16,997 |
Due after two years through three years | $ 3,454 | $ 3,907 |
Due after two years through three years, Weighted Average Interest Rate | 2.30% | 2.35% |
Due after three years through four years | $ 3,588 | $ 3,083 |
Due after three years through four years, Weighted Average Interest Rate | 3.05% | 2.53% |
Due after four years through five years | $ 1,294 | $ 3,503 |
Due after four years through five years, Weighted Average Interest Rate | 2.30% | 3.03% |
Thereafter | $ 5,580 | $ 5,777 |
Thereafter, Weighted Average Interest Rate | 2.61% | 3.00% |
Total par value, Weighted Average Interest Rate | 1.48% | 1.99% |
Premiums | $ 215 | $ 217 |
Discounts and concessions | (28) | (38) |
Fair value hedging adjustments | 186 | 1 |
Earlier of Contractual Maturity or Next Call Date [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 30,881 | 60,639 |
Due after one year through two years | 10,198 | 17,643 |
Due after two years through three years | 3,587 | 4,410 |
Due after three years through four years | 3,638 | 2,788 |
Due after four years through five years | 1,135 | 3,376 |
Thereafter | 2,531 | 2,517 |
Noncallable or Nonputable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 48,687 | 87,246 |
Callable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 3,283 | $ 4,127 |
Consolidated Obligations Bond_2
Consolidated Obligations Bonds by Call Features (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total par value | $ 51,970 | $ 91,373 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 51,970 | 91,373 |
Noncallable or Nonputable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 48,687 | 87,246 |
Callable [Member] | Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 3,283 | $ 4,127 |
Capital Narrative (Details)
Capital Narrative (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 100 | $ 100 |
Number of Subclasses of Capital Stock | 2 | |
Redemption Period Under FHLBank Capital Plan | 5 years | |
Written Notice Period Required to Repurchase Excess Membership Capital Stock | 15 days | |
Banking Regulation, Total Risk-Based Capital, Excess, Actual | $ 0 | $ 0 |
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% | |
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 |
Capital (Rollforward of MRCS) (
Capital (Rollforward of MRCS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
MRCS [Abstract] | ||||
Beginning Balance | $ 81 | $ 203 | $ 206 | $ 255 |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 0 | 0 | 6 | 9 |
Ending Balance | 54 | 202 | 54 | 202 |
Net Payments for Repurchases of Mandatory Redeemable Capital Stock | $ (27) | $ (1) | $ (158) | $ (62) |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
MRCS [Abstract] | ||||||||
Financial Instrument Subject to Mandatory Redemption, Maturity, Year Two | $ 11 | $ 11 | $ 1 | |||||
Financial Instrument Subject to Mandatory Redemption, Maturity, Year Three | 2 | 2 | 11 | |||||
Financial Instrument Subject to Mandatory Redemption, Maturity, Year Four | 1 | 1 | 5 | |||||
Financial Instruments Subject to Mandatory Redemption, Redeemable After Year Five | 28 | 28 | 175 | |||||
Financial Instruments Subject to Mandatory Redemption, Past Contractual Redemption Date, Due to Outstanding Activity | 12 | 12 | 14 | |||||
Mandatorily redeemable capital stock | 54 | $ 202 | 54 | $ 202 | $ 81 | $ 206 | $ 203 | $ 255 |
Interest Expense, Capital Securities | $ 1 | $ 2 | $ 5 | $ 9 |
Capital (Accumulated Other Comp
Capital (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 5,999 | $ 7,477 | $ 6,726 | $ 7,548 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 64 | (17) | (40) | (48) |
Total other comprehensive income (loss) | 65 | (17) | (39) | (48) |
Ending Balance | 5,796 | 6,843 | 5,796 | 6,843 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (56) | 56 | 48 | 87 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 64 | (17) | (40) | (48) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 0 | 0 | ||
Total other comprehensive income (loss) | 64 | (17) | (40) | (48) |
Ending Balance | 8 | 39 | 8 | 39 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (4) | (3) | (4) | (3) |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 0 | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1 | 1 | ||
Total other comprehensive income (loss) | 1 | 0 | 1 | 0 |
Ending Balance | (3) | (3) | (3) | (3) |
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (60) | 53 | 44 | 84 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 64 | (17) | (40) | (48) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | 1 | 1 | ||
Total other comprehensive income (loss) | 65 | (17) | (39) | (48) |
Ending Balance | $ 5 | $ 36 | $ 5 | $ 36 |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Banking Regulation, Total Capital [Abstract] | ||
Number of Finance Agency Regulatory Capital Requirements | 3 | |
Federal Home Loan Bank, Risk-Based Capital, Required | $ 706 | $ 1,138 |
Federal Home Loan Bank, Risk-Based Capital, Actual | 5,845 | 6,888 |
Federal Home Loan Bank, Regulatory Capital, Required | 3,646 | 5,184 |
Federal Home Loan Bank, Regulatory Capital, Actual | 5,845 | 6,888 |
Federal Home Loan Bank, Leverage Capital, Required | 4,558 | 6,480 |
Federal Home Loan Bank, Leverage Capital, Actual | $ 8,767 | $ 10,332 |
Regulatory Capital Ratio, Required | 4.00% | 4.00% |
Federal Home Loan Bank, Regulatory Capital Ratio, Actual | 6.41% | 5.31% |
Federal Home Loan Bank, Capital Stock to Assets, Required | 2.00% | |
Federal Home Loan Bank, Capital Stock to Assets, Actual | 3.72% | |
Leverage Ratio, Required | 5.00% | 5.00% |
Federal Home Loan Bank, Leverage Ratio, Actual | 9.62% | 7.97% |
Weight Applied to Permanent Capital in Computing Leverage Ratio | 1.5 | |
Weight Applied to Nonpermanent Capital in Computing Leverage Ratio | 1 |
Capital Retained Earnings (Deta
Capital Retained Earnings (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Banking Regulation, Total Capital [Abstract] | ||
Quarterly Net Income Allocated to Restricted Retained Earnings | 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 | $ 569 | $ 504 |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||||||
Cash and due from banks | $ 788 | $ 1,029 | ||||
Trading securities | 5,040 | 888 | ||||
Debt Securities, Available-for-sale | 16,361 | 16,651 | ||||
Held-to-maturity securities | 1,968 | 2,370 | ||||
Held-to-Maturity Securities, Fair Value | 2,079 | 2,439 | ||||
Accrued interest receivable | 110 | 195 | ||||
Derivative assets, net | 242 | 102 | ||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 187 | 63 | ||||
Liabilities | ||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 369 | 201 | ||||
Mandatorily redeemable capital stock | (54) | $ (81) | (206) | $ (202) | $ (203) | $ (255) |
Accrued interest payable | (181) | (252) | ||||
Derivative liabilities, net | 0 | (1) | ||||
Reported Value Measurement [Member] | ||||||
Assets | ||||||
Cash and due from banks | 788 | 1,029 | ||||
Interest-bearing deposits | 436 | 1 | ||||
Securities purchased under agreements to resell | 3,300 | 13,950 | ||||
Federal funds sold | 5,600 | 4,605 | ||||
Trading securities | 5,040 | 888 | ||||
Debt Securities, Available-for-sale | 16,361 | 16,651 | ||||
Held-to-maturity securities | 1,968 | 2,370 | ||||
Advances | 48,462 | 80,360 | ||||
Mortgage loans held for portfolio, net | 8,733 | 9,334 | ||||
Accrued interest receivable | 110 | 195 | ||||
Derivative assets, net | 242 | 102 | ||||
Other assets | 35 | 34 | ||||
Liabilities | ||||||
Deposits | (1,614) | (1,112) | ||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (83,271) | (121,084) | ||||
Mandatorily redeemable capital stock | (54) | (206) | ||||
Accrued interest payable | (181) | (252) | ||||
Derivative liabilities, net | 0 | (1) | ||||
Fair Value [Member] | ||||||
Assets | ||||||
Cash and due from banks | 788 | 1,029 | ||||
Interest-bearing deposits | 436 | 1 | ||||
Securities purchased under agreements to resell | 3,300 | 13,950 | ||||
Federal funds sold | 5,600 | 4,605 | ||||
Trading securities | 5,040 | 888 | ||||
Debt Securities, Available-for-sale | 16,361 | 16,651 | ||||
Held-to-Maturity Securities, Fair Value | 2,079 | 2,439 | ||||
Advances | 49,084 | 80,576 | ||||
Mortgage loans held for portfolio, net | 9,022 | 9,510 | ||||
Accrued interest receivable | 110 | 195 | ||||
Derivative assets, net | 242 | 102 | ||||
Other assets | 35 | 34 | ||||
Liabilities | ||||||
Deposits | (1,614) | (1,112) | ||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (84,366) | (121,534) | ||||
Mandatorily redeemable capital stock | (54) | (206) | ||||
Accrued interest payable | (181) | (252) | ||||
Derivative liabilities, net | 0 | (1) | ||||
Fair Value, Level 1 [Member] | ||||||
Assets | ||||||
Cash and due from banks | 788 | 1,029 | ||||
Interest-bearing deposits | 0 | 0 | ||||
Securities purchased under agreements to resell | 0 | 0 | ||||
Federal funds sold | 0 | 0 | ||||
Trading securities | 0 | 0 | ||||
Debt Securities, Available-for-sale | 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 assets, net | 0 | 0 | ||||
Other assets | 35 | 34 | ||||
Liabilities | ||||||
Deposits | 0 | 0 | ||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||||
Mandatorily redeemable capital stock | (54) | (206) | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative liabilities, net | 0 | 0 | ||||
Fair Value, Level 2 [Member] | ||||||
Assets | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest-bearing deposits | 436 | 1 | ||||
Securities purchased under agreements to resell | 3,300 | 13,950 | ||||
Federal funds sold | 5,600 | 4,605 | ||||
Trading securities | 5,040 | 888 | ||||
Debt Securities, Available-for-sale | 16,361 | 16,651 | ||||
Held-to-Maturity Securities, Fair Value | 2,073 | 2,432 | ||||
Advances | 49,084 | 80,576 | ||||
Mortgage loans held for portfolio, net | 8,973 | 9,458 | ||||
Accrued interest receivable | 110 | 195 | ||||
Derivative assets, net | 55 | 39 | ||||
Other assets | 0 | 0 | ||||
Liabilities | ||||||
Deposits | (1,614) | (1,112) | ||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (84,366) | (121,534) | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | (181) | (252) | ||||
Derivative liabilities, net | (369) | (202) | ||||
Fair Value, 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 | ||||
Debt Securities, Available-for-sale | 0 | 0 | ||||
Held-to-Maturity Securities, Fair Value | 6 | 7 | ||||
Advances | 0 | 0 | ||||
Mortgage loans held for portfolio, net | 49 | 52 | ||||
Accrued interest receivable | 0 | 0 | ||||
Derivative assets, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Liabilities | ||||||
Deposits | 0 | 0 | ||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||||
Mandatorily redeemable capital stock | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative liabilities, net | 0 | 0 | ||||
Consolidated Obligation Discount Notes [Member] | Reported Value Measurement [Member] | ||||||
Liabilities | ||||||
Discount notes | (30,928) | (29,531) | ||||
Consolidated Obligation Discount Notes [Member] | Fair Value [Member] | ||||||
Liabilities | ||||||
Discount notes | (30,930) | (29,532) | ||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 1 [Member] | ||||||
Liabilities | ||||||
Discount notes | 0 | 0 | ||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 2 [Member] | ||||||
Liabilities | ||||||
Discount notes | (30,930) | (29,532) | ||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 3 [Member] | ||||||
Liabilities | ||||||
Discount notes | 0 | 0 | ||||
Consolidated Obligation Bonds [Member] | Reported Value Measurement [Member] | ||||||
Liabilities | ||||||
Bonds, Fair Value | (52,343) | (91,553) | ||||
Consolidated Obligation Bonds [Member] | Fair Value [Member] | ||||||
Liabilities | ||||||
Bonds, Fair Value | (53,436) | (92,002) | ||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 1 [Member] | ||||||
Liabilities | ||||||
Bonds, Fair Value | 0 | 0 | ||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 2 [Member] | ||||||
Liabilities | ||||||
Bonds, Fair Value | (53,436) | (92,002) | ||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 3 [Member] | ||||||
Liabilities | ||||||
Bonds, Fair Value | $ 0 | $ 0 |
Fair Value (Fair Value on a Rec
Fair Value (Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 5,040 | $ 888 |
Debt Securities, Available-for-sale | 16,361 | 16,651 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 187 | 63 |
Derivative assets, net | 242 | 102 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 369 | 201 |
Derivative liabilities, net | 0 | (1) |
Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Derivative assets, net | 0 | 0 |
Other assets | 35 | 34 |
Derivative liabilities, net | 0 | 0 |
Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,040 | 888 |
Debt Securities, Available-for-sale | 16,361 | 16,651 |
Derivative assets, net | 55 | 39 |
Other assets | 0 | 0 |
Derivative liabilities, net | (369) | (202) |
Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Derivative assets, net | 0 | 0 |
Other assets | 0 | 0 |
Derivative liabilities, net | 0 | 0 |
Fair Value, 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 | 187 | 63 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 369 | 201 |
Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Other assets | 35 | 34 |
Total recurring assets | 35 | 34 |
Total recurring liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,040 | 888 |
Debt Securities, Available-for-sale | 16,361 | 16,651 |
Other assets | 0 | 0 |
Total recurring assets | 21,456 | 17,578 |
Total recurring liabilities | (369) | (202) |
Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Other assets | 0 | 0 |
Total recurring assets | 0 | 0 |
Total recurring liabilities | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, 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 | 187 | 63 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 369 | 201 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | 0 |
Derivative liabilities, net | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 55 | 39 |
Derivative liabilities, net | (369) | (202) |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 0 | 0 |
Derivative liabilities, net | 0 | 0 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,040 | 888 |
Debt Securities, Available-for-sale | 16,361 | 16,651 |
Derivative assets, net | 242 | 102 |
Other assets | 35 | 34 |
Derivative liabilities, net | 0 | (1) |
Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,040 | 888 |
Debt Securities, Available-for-sale | 16,361 | 16,651 |
Other assets | 35 | 34 |
Total recurring assets | 21,678 | 17,675 |
Total recurring liabilities | 0 | (1) |
Fair Value [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, net | 242 | 102 |
Derivative liabilities, net | 0 | (1) |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 4,212 | 0 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 4,212 | |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | |
US Treasury Securities [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 4,212 | |
U.S. obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 115 | 150 |
Debt Securities, Available-for-sale | 1,759 | 2,127 |
U.S. obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
U.S. obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 115 | 150 |
Debt Securities, Available-for-sale | 1,759 | 2,127 |
U.S. obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
U.S. obligations [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 115 | 150 |
Debt Securities, Available-for-sale | 1,759 | 2,127 |
GSE obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 65 | 60 |
Debt Securities, Available-for-sale | 1,036 | 1,060 |
GSE obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
GSE obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 65 | 60 |
Debt Securities, Available-for-sale | 1,036 | 1,060 |
GSE obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
GSE obligations [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 65 | 60 |
Debt Securities, Available-for-sale | 1,036 | 1,060 |
State or local housing agency obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 712 | 756 |
State or local housing agency obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
State or local housing agency obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 712 | 756 |
State or local housing agency obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
State or local housing agency obligations [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 712 | 756 |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 262 | 259 |
Debt Securities, Available-for-sale | 302 | 285 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 262 | 259 |
Debt Securities, Available-for-sale | 302 | 285 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Other [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 262 | 259 |
Debt Securities, Available-for-sale | 302 | 285 |
U.S. obligations MBS [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 3,686 | 4,059 |
U.S. obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
U.S. obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 3,686 | 4,059 |
U.S. obligations MBS [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
U.S. obligations MBS [Member] | Single Family [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 3,686 | 4,059 |
Mortgage-backed securities, GSE [Member] | Single Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 511 | 649 |
Mortgage-backed securities, GSE [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage-backed securities, GSE [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 511 | 649 |
Mortgage-backed securities, GSE [Member] | Single Family [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage-backed securities, GSE [Member] | Single Family [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 511 | 649 |
Mortgage-backed securities, GSE [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 386 | 419 |
Debt Securities, Available-for-sale | 8,355 | 7,715 |
Mortgage-backed securities, GSE [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage-backed securities, GSE [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 386 | 419 |
Debt Securities, Available-for-sale | 8,355 | 7,715 |
Mortgage-backed securities, GSE [Member] | Multifamily [Member] | Fair Value, Recurring [Member] | Fair Value, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Debt Securities, Available-for-sale | 0 | 0 |
Mortgage-backed securities, GSE [Member] | Multifamily [Member] | Fair Value [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 386 | 419 |
Debt Securities, Available-for-sale | $ 8,355 | $ 7,715 |
Fair Value (Fair Value on a Non
Fair Value (Fair Value on a Non-Recurring Basis) (Details) - Fair Value, Level 3 [Member] - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 49 | $ 52 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired mortgage loans held for portfolio | $ 1 | $ 2 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Institutions | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Institutions | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |||||
Gain (Loss) Related to Litigation Settlement | $ 64 | $ 0 | $ 120 | $ 0 | |
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | 737,000 | 737,000 | $ 904,900 | ||
Other liabilities | 69 | 69 | 65 | ||
FLA Balance For All Master Commitments | 150 | 150 | 138 | ||
Standby Letters of Credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 9,520 | 9,520 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 79 | 79 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 9,599 | $ 9,599 | 10,193 | ||
Standby Letters of Credit Original Terms | 10 years | ||||
Other liabilities | 2 | $ 2 | 2 | ||
Financial Standby Letter of Credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 432 | 432 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 423 | 423 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 855 | $ 855 | 819 | ||
Original Expiration Periods Up To | 7 years | ||||
Number of Housing Authorities For Which the Bank Has Standby Bond Purchase Agreements | Institutions | 8 | 8 | |||
Commitments to Issue Bonds [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | $ 55 | $ 55 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 55 | 55 | 0 | ||
Loan Origination Commitments [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 713 | 713 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 713 | 713 | 527 | ||
Mortgages [Member] | Forward Contracts [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 182 | 182 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 182 | 182 | 127 | ||
standby letters of credit issuance commitments [Domain] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 0 | $ 0 | $ 34 |
Activities with Stockholders _2
Activities with Stockholders (Transactions with Directors' Financial Institutions) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Advances | $ 48,462 | $ 80,360 |
Loans and Leases Receivable, Net Amount | 8,733 | 9,334 |
Deposits, Domestic | 1,614 | 1,112 |
Capital Stock | 3,432 | 4,517 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advances | $ 2,060 | $ 3,337 |
Advances, Percent | 4.00% | 4.00% |
Mortgage Loans, Percent | 2.00% | 2.00% |
Loans and Leases Receivable, Net Amount | $ 175 | $ 208 |
Deposits, Domestic | $ 18 | $ 27 |
Deposits, Percent | 1.00% | 2.00% |
Capital Stock | $ 131 | $ 182 |
Capital Stock, Percent | 4.00% | 4.00% |
Activities with Stockholders (B
Activities with Stockholders (Business Concentrations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Advances | $ 48,462 | $ 48,462 | $ 80,360 | ||
Loans and Leases Receivable, Net Amount | 8,733 | 8,733 | 9,334 | ||
Interest Income on Advances | $ 185 | $ 569 | $ 815 | $ 1,997 | |
Wells Fargo Bank N.A. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Capital Stock | $ 1,029 | ||||
Capital Stock Percentage | 22.00% | ||||
Advances | $ 25,450 | ||||
Loans and Leases Receivable, Net Amount | 21 | ||||
Interest Income on Advances | 1,059 | ||||
Superior Guaranty Insurance Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Capital Stock | $ 15 | ||||
Capital Stock Percentage | 0.00% | ||||
Advances | $ 0 | ||||
Loans and Leases Receivable, Net Amount | 350 | ||||
Interest Income on Advances | 0 | ||||
Principal Owner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Capital Stock | $ 1,044 | ||||
Capital Stock Percentage | 22.00% | ||||
Advances | $ 25,450 | ||||
Loans and Leases Receivable, Net Amount | 371 | ||||
Interest Income on Advances | $ 1,059 | ||||
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 Other FHLBank_2
Activities with Other FHLBanks (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Other Transactions [Line Items] | ||||
Payments for FHLBank Advance, Investing Activities | $ 124,219 | $ 200,553 | ||
Payments for Federal Home Loan Bank Advances | 1,265 | |||
Proceeds from Federal Home Loan Bank Loans | (1,265) | |||
Loans to Other Federal Home Loan Banks | 0 | $ 0 | ||
Federal Home Loan Bank of Atlanta [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Loans from Other Federal Home Loan Banks | 0 | 500 | ||
Payments for Federal Home Loan Bank Advances | 565 | |||
Proceeds from Federal Home Loan Bank Loans | (565) | |||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Proceeds from FHLBank Borrowings, Financing Activities | 400 | |||
Payments of FHLBank Borrowings, Financing Activities | (900) | |||
Federal Home Loan Bank of Topeka [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Payments for Federal Home Loan Bank Advances | 150 | |||
Proceeds from Federal Home Loan Bank Loans | (150) | |||
Loans to Other Federal Home Loan Banks | 0 | 0 | ||
Federal Home Loan Bank of Boston [Member] | ||||
Schedule of Other Transactions [Line Items] | ||||
Payments for Federal Home Loan Bank Advances | 250 | |||
Proceeds from Federal Home Loan Bank Loans | (250) | |||
Loans to Other Federal Home Loan Banks | $ 0 | $ 0 | ||
Federal Home Loan Bank of Indianapolis | ||||
Schedule of Other Transactions [Line Items] | ||||
Payments for Federal Home Loan Bank Advances | 550 | |||
Proceeds from Federal Home Loan Bank Loans | (550) | |||
Loans to Other Federal Home Loan Banks | $ 0 | $ 0 |