Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Federal Home Loan Bank of Topeka | |
Entity Central Index Key | 0001325878 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,619,118 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,780,620 |
Statements Of Condition
Statements Of Condition - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | $ 24,639 | $ 15,060 | |
Interest-bearing deposits | 481,989 | 670,660 | |
Securities purchased under agreements to resell (Note 10) | 2,137,374 | 1,251,096 | |
Federal funds sold | 900,000 | 50,000 | |
Investment securities: | |||
Trading securities (Note 3) | 2,901,575 | 2,151,113 | |
Available-for-sale securities (Note 3) | 6,098,929 | 1,725,640 | |
Held-to-maturity securities1 (Note 3) | [1] | 3,728,655 | 4,456,873 |
Total investment securities | 12,729,159 | 8,333,626 | |
Advances (Notes 4, 6) | 30,634,583 | 28,730,113 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $905 and $812 (Notes 5, 6) | 9,833,763 | 8,410,462 | |
Accrued interest receivable | 150,823 | 109,366 | |
Derivative assets, net (Notes 7, 10) | 137,050 | 36,095 | |
Other assets | 101,750 | 108,778 | |
TOTAL ASSETS | 57,131,130 | 47,715,256 | |
LIABILITIES | |||
Deposits (Note 8) | 756,376 | 473,820 | |
Consolidated obligations, net: | |||
Discount notes (Note 9) | 21,044,232 | 20,608,332 | |
Bonds (Note 9) | 32,441,885 | 23,966,394 | |
Total consolidated obligations, net | 53,486,117 | 44,574,726 | |
Mandatorily redeemable capital stock (Note 11) | 2,477 | 3,597 | |
Accrued interest payable | 116,478 | 87,903 | |
Affordable Housing Program payable | 41,304 | 43,081 | |
Derivative liabilities, net (Notes 7, 10) | 990 | 7,884 | |
Other liabilities | 69,066 | 69,993 | |
TOTAL LIABILITIES | 54,472,808 | 45,261,004 | |
Commitments and contingencies (Note 14) | |||
Capital stock outstanding - putable: | |||
Total capital stock (Notes 11) | [2] | 1,670,690 | 1,524,537 |
Retained earnings: | |||
Unrestricted | 748,888 | 716,555 | |
Restricted | 224,060 | 197,467 | |
Total retained earnings | 972,948 | 914,022 | |
Accumulated other comprehensive income (loss) (Note 12) | 14,684 | 15,693 | |
TOTAL CAPITAL | 2,658,322 | 2,454,252 | |
TOTAL LIABILITIES AND CAPITAL | 57,131,130 | 47,715,256 | |
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Notes 11) | [2] | 344,453 | 247,361 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Notes 11) | [2] | $ 1,326,237 | $ 1,277,176 |
[1] | Fair value: $3,717,004 and $4,447,078 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Putable |
Statements Of Condition (Parent
Statements Of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Allowance for Credit Losses on Mortgage Loans | $ 905 | $ 812 | |
Investment securities: | |||
Held-to-maturity, Fair Value | $ 3,717,004 | $ 4,447,078 | |
Capital stock outstanding - putable: | |||
Common Stock, par value per share | $ 100 | ||
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [1] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [1] | 3,444 | 2,473 |
Common Stock, Shares Outstanding | [1] | 3,444 | 2,473 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [1] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [1] | 13,262 | 12,772 |
Common Stock, Shares Outstanding | [1] | 13,262 | 12,772 |
[1] | Putable |
Statements Of Income
Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME: | ||||
Interest-bearing deposits | $ 5,300 | $ 3,931 | $ 15,518 | $ 9,402 |
Securities purchased under agreements to resell | 26,768 | 20,618 | 84,266 | 46,610 |
Federal funds sold | 8,179 | 7,896 | 28,058 | 29,539 |
Trading securities | 20,342 | 16,764 | 68,211 | 54,243 |
Available-for-sale securities | 47,811 | 12,563 | 78,694 | 32,670 |
Held-to-maturity securities | 24,337 | 30,602 | 84,469 | 85,538 |
Advances | 186,431 | 158,943 | 563,602 | 460,751 |
Mortgage loans held for portfolio | 76,546 | 65,424 | 225,015 | 186,709 |
Other | 346 | 381 | 1,097 | 1,165 |
Total interest income | 396,060 | 317,122 | 1,148,930 | 906,627 |
INTEREST EXPENSE: | ||||
Deposits | 2,540 | 2,289 | 7,701 | 6,113 |
Consolidated obligations: | ||||
Discount notes | 133,680 | 108,137 | 433,473 | 314,109 |
Bonds | 185,096 | 138,668 | 519,967 | 382,442 |
Mandatorily redeemable capital stock (Note 11) | 30 | 58 | 113 | 175 |
Other | 299 | 311 | 1,016 | 766 |
Total interest expense | 321,645 | 249,463 | 962,270 | 703,605 |
NET INTEREST INCOME | 74,415 | 67,659 | 186,660 | 203,022 |
Provision (reversal) for credit losses on mortgage loans (Note 6) | 393 | (391) | 509 | (345) |
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL) | 74,022 | 68,050 | 186,151 | 203,367 |
OTHER INCOME (LOSS): | ||||
Net gains (losses) on trading securities (Note 3) | 16,186 | (11,514) | 86,784 | (50,495) |
Net gains (losses) on sale of held-to-maturity securities (Note 3) | 0 | 1,529 | (46) | 1,591 |
Net gains (losses) on derivatives and hedging activities (Note 7) | (20,386) | 6,032 | (78,939) | 29,661 |
Standby bond purchase agreement commitment fees | 566 | 642 | 1,685 | 2,242 |
Letters of credit fees | 1,190 | 1,086 | 3,581 | 3,300 |
Other | 937 | 725 | 2,470 | 2,676 |
Total other income (loss) | (1,507) | (1,500) | 15,535 | (11,025) |
OTHER EXPENSES: | ||||
Compensation and benefits | 9,781 | 12,682 | 28,598 | 29,009 |
Other operating | 5,031 | 4,763 | 14,331 | 13,419 |
Federal Housing Finance Agency | 812 | 690 | 2,437 | 2,144 |
Office of Finance | 972 | 812 | 2,717 | 2,313 |
Other | 2,037 | 1,481 | 5,853 | 4,501 |
Total other expenses | 18,633 | 20,428 | 53,936 | 51,386 |
INCOME BEFORE ASSESSMENTS | 53,882 | 46,122 | 147,750 | 140,956 |
Affordable Housing Program | 5,391 | 4,618 | 14,786 | 14,113 |
NET INCOME | $ 48,491 | $ 41,504 | $ 132,964 | $ 126,843 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 48,491 | $ 41,504 | $ 132,964 | $ 126,843 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on available-for-sale securities | (17,324) | 3,694 | (1,249) | 2,116 |
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities | 0 | 3,655 | 0 | 4,163 |
Defined benefit pension plan | 95 | 5 | 240 | 17 |
Total other comprehensive income (loss) | (17,229) | 7,354 | (1,009) | 6,296 |
TOTAL COMPREHENSIVE INCOME | $ 31,262 | $ 48,858 | $ 131,955 | $ 133,139 |
Statements Of Capital
Statements Of Capital - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at the beginning of the period | $ 2,580,693 | $ 2,396,669 | $ 2,454,252 | $ 2,506,103 | |
Comprehensive income | 31,262 | 48,858 | 131,955 | 133,139 | |
Proceeds from issuance of capital stock | 397,429 | 397,619 | 1,161,329 | 1,295,007 | |
Repurchase/redemption of capital stock | (191,217) | (238,077) | (870,594) | (650,475) | |
Net reclassification of shares to mandatorily redeemable capital stock | (159,775) | (215,107) | (218,411) | (893,545) | |
Net transfer of shares between Class A and Class B | 0 | 0 | 0 | 0 | |
Dividends on capital stock | |||||
Cash payment | (70) | (69) | (209) | (336) | |
Stock issued | 0 | 0 | 0 | 0 | |
Balance at the end of the period | $ 2,658,322 | $ 2,389,893 | $ 2,658,322 | $ 2,389,893 | |
Capital Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance | [1] | 15,985 | 14,963 | 15,245 | 16,400 |
Balance at the beginning of the period | [1] | $ 1,598,504 | $ 1,496,279 | $ 1,524,537 | $ 1,640,039 |
Proceeds from issuance of capital stock, shares | [1] | 3,974 | 3,976 | 11,613 | 12,950 |
Proceeds from issuance of capital stock | [1] | $ 397,429 | $ 397,619 | $ 1,161,329 | $ 1,295,007 |
Repurchase/redemption of capital stock, shares | [1] | (1,912) | (2,381) | (8,706) | (6,505) |
Repurchase/redemption of capital stock | [1] | $ (191,217) | $ (238,077) | $ (870,594) | $ (650,475) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (1,598) | (2,151) | (2,184) | (8,935) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (159,775) | $ (215,107) | $ (218,411) | $ (893,545) |
Net transfer of shares between Class A and Class B, shares | [1] | 0 | 0 | 0 | 0 |
Net transfer of shares between Class A and Class B | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Dividends on capital stock | |||||
Stock issued, shares | [1] | 257 | 232 | 738 | 729 |
Stock issued | [1] | $ 25,749 | $ 23,209 | $ 73,829 | $ 72,897 |
Shares, ending balance | [1] | 16,706 | 14,639 | 16,706 | 14,639 |
Balance at the end of the period | [1] | $ 1,670,690 | $ 1,463,923 | $ 1,670,690 | $ 1,463,923 |
Total Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at the beginning of the period | 950,276 | 875,790 | 914,022 | 840,406 | |
Comprehensive income | 48,491 | 41,504 | 132,964 | 126,843 | |
Dividends on capital stock | |||||
Cash payment | (70) | (69) | (209) | (336) | |
Stock issued | (25,749) | (23,209) | (73,829) | (72,897) | |
Balance at the end of the period | 972,948 | 894,016 | 972,948 | 894,016 | |
Unrestricted Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at the beginning of the period | 735,915 | 695,310 | 716,555 | 676,993 | |
Comprehensive income | 38,792 | 33,203 | 106,371 | 101,475 | |
Dividends on capital stock | |||||
Cash payment | (70) | (69) | (209) | (336) | |
Stock issued | (25,749) | (23,209) | (73,829) | (72,897) | |
Balance at the end of the period | 748,888 | 705,235 | 748,888 | 705,235 | |
Restricted Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at the beginning of the period | 214,361 | 180,480 | 197,467 | 163,413 | |
Comprehensive income | 9,699 | 8,301 | 26,593 | 25,368 | |
Dividends on capital stock | |||||
Balance at the end of the period | 224,060 | 188,781 | 224,060 | 188,781 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at the beginning of the period | 31,913 | 24,600 | 15,693 | 25,658 | |
Comprehensive income | (17,229) | 7,354 | (1,009) | 6,296 | |
Dividends on capital stock | |||||
Balance at the end of the period | $ 14,684 | $ 31,954 | $ 14,684 | $ 31,954 | |
Class A [Member] | Capital Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance | [1] | 2,155 | 1,966 | 2,473 | 2,351 |
Balance at the beginning of the period | [1] | $ 215,536 | $ 196,571 | $ 247,361 | $ 235,134 |
Proceeds from issuance of capital stock, shares | [1] | 0 | 3 | 12 | 11 |
Proceeds from issuance of capital stock | [1] | $ 0 | $ 310 | $ 1,171 | $ 1,154 |
Repurchase/redemption of capital stock, shares | [1] | (721) | (2,360) | (6,450) | (6,457) |
Repurchase/redemption of capital stock | [1] | $ (72,148) | $ (236,009) | $ (645,039) | $ (645,743) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (253) | (574) | (778) | (1,950) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (25,225) | $ (57,364) | $ (77,763) | $ (195,026) |
Net transfer of shares between Class A and Class B, shares | [1] | 2,263 | 2,793 | 8,187 | 7,873 |
Net transfer of shares between Class A and Class B | [1] | $ 226,290 | $ 279,316 | $ 818,723 | $ 787,305 |
Dividends on capital stock | |||||
Shares, ending balance | [1] | 3,444 | 1,828 | 3,444 | 1,828 |
Balance at the end of the period | [1] | $ 344,453 | $ 182,824 | $ 344,453 | $ 182,824 |
Class B [Member] | Capital Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance | [1] | 13,830 | 12,997 | 12,772 | 14,049 |
Balance at the beginning of the period | [1] | $ 1,382,968 | $ 1,299,708 | $ 1,277,176 | $ 1,404,905 |
Proceeds from issuance of capital stock, shares | [1] | 3,974 | 3,973 | 11,601 | 12,939 |
Proceeds from issuance of capital stock | [1] | $ 397,429 | $ 397,309 | $ 1,160,158 | $ 1,293,853 |
Repurchase/redemption of capital stock, shares | [1] | (1,191) | (21) | (2,256) | (48) |
Repurchase/redemption of capital stock | [1] | $ (119,069) | $ (2,068) | $ (225,555) | $ (4,732) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (1,345) | (1,577) | (1,406) | (6,985) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (134,550) | $ (157,743) | $ (140,648) | $ (698,519) |
Net transfer of shares between Class A and Class B, shares | [1] | (2,263) | (2,793) | (8,187) | (7,873) |
Net transfer of shares between Class A and Class B | [1] | $ (226,290) | $ (279,316) | $ (818,723) | $ (787,305) |
Dividends on capital stock | |||||
Stock issued, shares | [1] | 257 | 232 | 738 | 729 |
Stock issued | [1] | $ 25,749 | $ 23,209 | $ 73,829 | $ 72,897 |
Shares, ending balance | [1] | 13,262 | 12,811 | 13,262 | 12,811 |
Balance at the end of the period | [1] | $ 1,326,237 | $ 1,281,099 | $ 1,326,237 | $ 1,281,099 |
[1] | Putable |
Statements Of Capital (Parenthe
Statements Of Capital (Parenthetical) - Capital Stock [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019Rate | Sep. 30, 2018Rate | Sep. 30, 2019Rate | Sep. 30, 2018Rate | |
Class A [Member] | ||||
Stock dividend rate percentage | 2.50% | 2.00% | 2.40% | 1.70% |
Class B [Member] | ||||
Stock dividend rate percentage | 7.50% | 7.20% | 7.50% | 6.90% |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 132,964 | $ 126,843 |
Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | ||
Premiums and discounts on consolidated obligations, net | 738 | (7,736) |
Concessions on consolidated obligations | 10,128 | 4,050 |
Premiums and discounts on investments, net | 6,246 | 2,676 |
Premiums, discounts and commitment fees on advances, net | (1,379) | (3,758) |
Premiums, discounts and deferred loan costs on mortgage loans, net | 18,542 | 13,786 |
Fair value adjustments on hedged assets or liabilities | 2,948 | 1,249 |
Premises, software and equipment | 2,331 | 2,226 |
Other | 240 | 17 |
Provision (reversal) for credit losses on mortgage loans | 509 | (345) |
Non-cash interest on mandatorily redeemable capital stock | 111 | 173 |
Net realized (gains) losses on sale of held-to-maturity securities | 46 | (1,591) |
Net other-than-temporary impairment losses on held-to-maturity securities | 0 | 26 |
Net realized (gains) losses on sale of premises and equipment | (3) | (880) |
Other adjustments | (272) | (238) |
Net (gains) losses on trading securities | (86,784) | 50,495 |
Net change in derivatives and hedging activities | (144,589) | 36,107 |
(Increase) decrease in accrued interest receivable | (41,801) | (15,814) |
Change in net accrued interest included in derivative assets | (1,254) | (7,822) |
(Increase) decrease in other assets | 3,056 | (854) |
Increase (decrease) in accrued interest payable | 28,372 | 35,166 |
Change in net accrued interest included in derivative liabilities | 4,332 | (456) |
Increase (decrease) in Affordable Housing Program liability | (1,777) | 784 |
Increase (decrease) in other liabilities | (1,682) | (3,691) |
Total adjustments | (201,942) | 103,570 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (68,978) | 230,413 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net (increase) decrease in interest-bearing deposits | (32,829) | 28,298 |
Net (increase) decrease in securities purchased under resale agreements | (886,278) | (823,576) |
Net (increase) decrease in Federal funds sold | (850,000) | (265,000) |
Proceeds from sale of trading securities | 429 | 0 |
Proceeds from maturities of and principal repayments on trading securities | 3,015,268 | 3,290,566 |
Purchases of trading securities | (3,679,375) | (2,682,969) |
Proceeds from maturities of and principal repayments on available-for-sale securities | 8,732 | 16,165 |
Purchases of available-for-sale securities | (4,180,862) | (281,489) |
Proceeds from sale of held-to-maturity securities | 9,442 | 87,827 |
Proceeds from maturities of and principal repayments on held-to-maturity securities | 716,417 | 699,016 |
Purchases of held-to-maturity securities | 0 | (625,170) |
Advances repaid | 279,880,008 | 300,011,912 |
Advances originated | (281,623,825) | (302,270,146) |
Principal collected on mortgage loans | 1,011,265 | 706,748 |
Purchases of mortgage loans | (2,451,132) | (1,553,027) |
Proceeds from sale of foreclosed assets | 1,965 | 3,728 |
Purchases of other long-term assets | 0 | (6,000) |
Other investing activities | 2,320 | 2,136 |
Proceeds from sale of premises, software and equipment | 0 | 2,416 |
Purchases of premises, software and equipment | (1,037) | (8,002) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (9,059,492) | (3,666,567) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposits | 205,498 | 91,182 |
Net proceeds from issuance of consolidated obligations: | ||
Discount notes | 633,162,917 | 765,464,193 |
Bonds | 20,517,358 | 8,790,535 |
Payments for maturing and retired consolidated obligations: | ||
Discount notes | (632,736,460) | (763,468,454) |
Bonds | (12,082,800) | (7,440,940) |
Net increase (decrease) in other borrowings | 0 | 6,000 |
Net interest payments received (paid) for financing derivatives | 652 | (3,614) |
Proceeds from issuance of capital stock | 1,161,329 | 1,295,007 |
Payments for repurchase/redemption of capital stock | (870,594) | (650,475) |
Payments for repurchase of mandatorily redeemable capital stock | (219,642) | (894,494) |
Cash dividends paid | (209) | (336) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 9,138,049 | 3,188,604 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,579 | (247,550) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 15,060 | 268,050 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 24,639 | 20,500 |
Supplemental disclosures: | ||
Interest paid | 919,428 | 672,944 |
Affordable Housing Program payments | 16,859 | 13,468 |
Net transfers of mortgage loans to other assets | $ 627 | $ 2,817 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Basis of Presentation: The accompanying interim financial statements of the FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of the FHLBank’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. The FHLBank’s significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2018 . The interim financial statements presented herein should be read in conjunction with the FHLBank’s audited financial statements and notes thereto, which are included in the FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 18, 2019 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K. Reclassifications : Presentation of cash flow amounts in the prior period have been reclassified to reflect short-term trading securities purchases and proceeds on a gross, rather than net, basis. Certain other immaterial amounts in the financial statements have been reclassified to conform to current period presentations. Out-of-Period Adjustment: Included in net income for the three months ended September 30, 2019 was an out-of-period adjustment of $14,336,000 , of which $2,545,000 and $11,791,000 related to income that should have been recorded during the three months ended March 31, 2019 and June 30, 2019, respectively. The out-of-period adjustment related to hedged item valuations for certain available-for-sale securities in fair value hedging relationships and resulted in an increase in available-for-sale interest income and a reduction in other comprehensive income. The FHLBank has assessed the impact of this error and concluded that the amounts were not material, either individually or in the aggregate, to any prior period financial statements and the impact of correcting this error in the three months ended September 30, 2019 is not material to the current financial statements. Use of Estimates : The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of trading and available-for-sale securities, the fair value of derivatives and the allowance for credit losses. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates. Derivatives and Hedging Activities: Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in net interest income in the same line as the earnings effect of the hedged item. Net gains (losses) on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains (losses), which include net interest settlements. Prior to January 1, 2019, fair value hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedged item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Investment Securities: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI) as net unrealized gains (losses) on available-for-sale securities. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities that have been hedged and qualify as a fair value hedge, the FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities that were hedged and qualified as a fair value hedge, the FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prepayment Fees on Advances : The FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. The FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | RECENTLY ISSUED ACCOUNTING STANDARDS AND INTERPRETATIONS AND CHANGES IN AND ADOPTIONS OF ACCOUNTING PRINCIPLES Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Accounting Standards Update (ASU) 2018-16) . In October 2018, the Financial Accounting Standards Board (FASB) issued an amendment that permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury rate, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments were adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The amendment was effective concurrently with ASU 2017-12 (see below) for annual periods, and interim periods within those annual periods, beginning January 1, 2019. The adoption of this guidance did not materially affect the FHLBank's application of hedge accounting or utilization of hedging strategies. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15). In August 2018, the FASB issued an amendment 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). Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow existing guidance relating to internal-use software to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized also cannot be capitalized for a hosting arrangement that is a service contract. Therefore, an entity in a hosting arrangement that is a service contract determines to which project stage (that is, preliminary project stage, application development stage, or post-implementation stage) an implementation activity relates. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The amendments in this ASU also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this ASU will be effective for annual periods, and interim periods within those annual periods beginning after December 31, 2019, which is January 1, 2020 for the FHLBank. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period, for all entities. The FHLBank does not plan on early adoption. The adoption of this guidance is not expected to have a material effect on the FHLBank's financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). In August 2018, the FASB issued an amendment modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve disclosure effectiveness. The amendments in the ASU remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for the FHLBank, and will be applied retrospectively for all comparative periods presented. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact the FHLBank’s financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). In August 2018, the FASB issued an amendment that modifies the disclosure requirements for fair value measurements. This ASU removes the requirement to disclose: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU will be effective for annual periods, and interim periods within those annual periods beginning after December 31, 2019, which is January 1, 2020 for the FHLBank. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to fair value measurements and will not impact the FHLBank’s financial condition, results of operations or cash flows. Targeted Improvements to Accounting for Hedging Activities, as amended (ASU 2017-12) . In August 2017, the FASB issued an amendment to simplify the application of hedge accounting guidance in current GAAP and to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception; • Measurement of the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest rate risk; • For a cash flow hedge of interest rate risk of a variable rate financial instrument, an entity can designate the variability in cash flows attributable to the contractually specified interest rate as the hedged risk; and • If an entity that applies the shortcut method determines that use of that method was not or is no longer appropriate, the entity may apply a long-haul method for assessing hedge effectiveness as long as the hedge is highly effective and the entity documents at inception which long-haul methodology it will use. The amendment became effective for annual periods, and interim periods within those annual periods beginning on January 1, 2019 for the FHLBank. The guidance did not affect the FHLBank's application of hedge accounting for existing hedge strategies. For all short-cut hedge accounting trades, the FHLBank updated existing documentation to designate a long-haul method to be utilized in the event a hedge ceases to qualify for the short-cut method. The guidance also provided opportunities to enhance risk management through new hedge strategies, including partial term hedges. The adoption of this guidance did not have a material effect on the FHLBank's financial condition, results of operations or cash flows beyond a prospective change in income statement presentation for fair value hedge relationships and new required disclosures. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). In March 2017, the FASB issued an amendment to shorten the amortization period of any premium on callable debt securities to the first call date instead of over the contractual life of the instrument. The amendment does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is intended to reduce diversity in practice in the amortization of premiums and the consideration of how the potential of a security being called is factored into current impairment assessments. The amendment also intends to more closely align the amortization of premiums and discounts to the expectations incorporated into the market pricing of the instrument. The amendment became effective for annual periods, and interim periods within those annual periods beginning on January 1, 2019 for the FHLBank. The adoption of this guidance did not have an impact on the FHLBank's financial condition, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments, as amended (ASU 2016-13). In June 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. Additionally, under the new guidance, a financial asset, or a group of financial assets, measured at amortized cost basis is required to be presented at the net amount expected to be collected. The guidance also requires: • 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; • The entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis in a similar manner to other financial assets measured at amortized cost basis. The initial allowance for credit losses is required to be added to the purchase price; • Credit losses relating to available-for-sale debt securities to be recorded 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; and • 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 guidance is effective for the FHLBank for interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. The FHLBank does not plan on early adoption. The guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for debt securities for which an other-than-temporary impairment (OTTI) charge had been recognized before the effective date; however, the FHLBank currently does not have any OTTI debt securities. The FHLBank does not expect this guidance to impact certain financial instruments, including advances, Agency and government-sponsored enterprise investments, securities purchased under agreements to resell, and other overnight investments due to the specific terms, issuer guarantees, and/or collateralized nature of the instruments that result in high credit quality holdings with no expected credit losses. Adoption of this guidance is not expected to have a material impact on the FHLBank's municipal securities, short-term investments and mortgage loans held for portfolio. Consequently, adoption of this guidance is not expected to have a material impact on the FHLBank’s financial condition, results of operations, or cash flows. Leases (ASU 2016-02). In February 2016, FASB issued amendments to lease accounting guidance. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for all leases in the statement of financial condition, which effectively removes a source of off-balance sheet financing for operating leases. A distinction remains between finance leases and operating leases, but the assets and liabilities arising from operating leases are now also required to be recognized in the statement of financial condition. Lessor accounting is largely unchanged. The amendments became effective for annual periods, and interim periods within those annual periods, beginning on January 1, 2019 for the FHLBank. The adoption of this guidance did not have a material effect on the FHLBank's financial condition, results of operations or cash flows. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES Trading Securities: Trading securities by major security type as of September 30, 2019 and December 31, 2018 are summarized in Table 3.1 (in thousands): Table 3.1 Fair Value 09/30/2019 12/31/2018 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,533,842 $ 252,377 GSE obligations 1 468,747 1,000,495 Non-mortgage-backed securities 2,002,589 1,252,872 Mortgage-backed securities: U.S. obligation MBS 2 — 467 GSE MBS 3 898,986 897,774 Mortgage-backed securities 898,986 898,241 TOTAL $ 2,901,575 $ 2,151,113 1 Represents debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank (Farm Credit) and Federal Agricultural Mortgage Corporation (Farmer Mac). GSE securities are not guaranteed by the U.S. government. 2 Represents single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government. 3 Represents single-family and multi-family MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). Net gains (losses) on trading securities during the three and nine months ended September 30, 2019 and 2018 are shown in Table 3.2 (in thousands): Table 3.2 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Net gains (losses) on trading securities held as of September 30, 2019 $ 16,352 $ (10,375 ) $ 87,222 $ (47,833 ) Net gains (losses) on trading securities sold or matured prior to September 30, 2019 (166 ) (1,139 ) (438 ) (2,662 ) NET GAINS (LOSSES) ON TRADING SECURITIES $ 16,186 $ (11,514 ) $ 86,784 $ (50,495 ) Available-for-sale Securities: Available-for-sale securities by major security type as of September 30, 2019 are summarized in Table 3.3 (in thousands): Table 3.3 09/30/2019 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 3,516,938 $ — $ (6,210 ) $ 3,510,728 Non-mortgage-backed securities 3,516,938 — (6,210 ) 3,510,728 Mortgage-backed securities: GSE MBS 1 2,564,172 29,013 (4,984 ) 2,588,201 Mortgage-backed securities 2,564,172 29,013 (4,984 ) 2,588,201 TOTAL $ 6,081,110 $ 29,013 $ (11,194 ) $ 6,098,929 1 Represents fixed rate multi-family MBS issued by Fannie Mae . Available-for-sale securities by major security type as of December 31, 2018 are summarized in Table 3.4 (in thousands): Table 3.4 12/31/2018 Amortized Gross Gross Fair Value Mortgage-backed securities: GSE MBS 1 $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 TOTAL $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 1 Represents fixed rate multi-family MBS issued by Fannie Mae . Table 3.5 summarizes the available-for-sale securities with unrealized losses as of September 30, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.5 09/30/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: U.S. Treasury obligations $ 3,510,728 $ (6,210 ) $ — $ — $ 3,510,728 $ (6,210 ) Non-mortgage-backed securities 3,510,728 (6,210 ) — — 3,510,728 (6,210 ) Mortgage-backed securities: GSE MBS 1 155,339 (344 ) 307,143 (4,640 ) 462,482 (4,984 ) Mortgage-backed securities 155,339 (344 ) 307,143 (4,640 ) 462,482 (4,984 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 3,666,067 $ (6,554 ) $ 307,143 $ (4,640 ) $ 3,973,210 $ (11,194 ) 1 Represents fixed rate multi-family MBS issued by Fannie Mae . Table 3.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.6 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities: GSE MBS 1 $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) 1 Represents fixed rate multi-family MBS issued by Fannie Mae . The amortized cost and fair values of available-for-sale securities by contractual maturity as of September 30, 2019 and December 31, 2018 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 3.7 09/30/2019 12/31/2018 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 252,032 $ 251,643 $ — $ — Due after one year through five years 3,264,906 3,259,085 — — Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 3,516,938 3,510,728 — — Mortgage-backed securities 2,564,172 2,588,201 1,706,572 1,725,640 TOTAL $ 6,081,110 $ 6,098,929 $ 1,706,572 $ 1,725,640 Held-to-maturity Securities: Held-to-maturity securities by major security type as of September 30, 2019 are summarized in Table 3.8 (in thousands): Table 3.8 09/30/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 85,670 $ 85,670 $ — $ (3,248 ) $ 82,422 Non-mortgage-backed securities 85,670 85,670 — (3,248 ) 82,422 Mortgage-backed securities: U.S. obligation MBS 1 97,647 97,647 11 (333 ) 97,325 GSE MBS 2 3,545,338 3,545,338 8,360 (16,441 ) 3,537,257 Mortgage-backed securities 3,642,985 3,642,985 8,371 (16,774 ) 3,634,582 TOTAL $ 3,728,655 $ 3,728,655 $ 8,371 $ (20,022 ) $ 3,717,004 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. Held-to-maturity securities by major security type as of December 31, 2018 are summarized in Table 3.9 (in thousands): Table 3.9 12/31/2018 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 86,430 $ 86,430 $ 1 $ (3,480 ) $ 82,951 Non-mortgage-backed securities 86,430 86,430 1 (3,480 ) 82,951 Mortgage-backed securities: U.S. obligation MBS 1 109,866 109,866 125 (99 ) 109,892 GSE MBS 2 4,260,577 4,260,577 12,164 (18,506 ) 4,254,235 Mortgage-backed securities 4,370,443 4,370,443 12,289 (18,605 ) 4,364,127 TOTAL $ 4,456,873 $ 4,456,873 $ 12,290 $ (22,085 ) $ 4,447,078 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. Table 3.10 summarizes the held-to-maturity securities with unrealized losses as of September 30, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.10 09/30/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ 55,666 $ (5 ) $ 26,757 $ (3,243 ) $ 82,423 $ (3,248 ) Non-mortgage-backed securities 55,666 (5 ) 26,757 (3,243 ) 82,423 (3,248 ) Mortgage-backed securities: U.S. obligation MBS 1 60,360 (217 ) 26,259 (116 ) 86,619 (333 ) GSE MBS 2 634,043 (2,581 ) 2,147,252 (13,860 ) 2,781,295 (16,441 ) Mortgage-backed securities 694,403 (2,798 ) 2,173,511 (13,976 ) 2,867,914 (16,774 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 750,069 $ (2,803 ) $ 2,200,268 $ (17,219 ) $ 2,950,337 $ (20,022 ) 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. Table 3.11 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.11 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 26,520 $ (3,480 ) $ 26,520 $ (3,480 ) Non-mortgage-backed securities — — 26,520 (3,480 ) 26,520 (3,480 ) Mortgage-backed securities: U.S. obligation MBS 1 — — 30,702 (99 ) 30,702 (99 ) GSE MBS 2 1,655,048 (4,769 ) 1,567,728 (13,737 ) 3,222,776 (18,506 ) Mortgage-backed securities 1,655,048 (4,769 ) 1,598,430 (13,836 ) 3,253,478 (18,605 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 1,655,048 $ (4,769 ) $ 1,624,950 $ (17,316 ) $ 3,279,998 $ (22,085 ) 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of September 30, 2019 and December 31, 2018 are shown in Table 3.12 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 3.12 09/30/2019 12/31/2018 Amortized Cost Carrying Value Fair Value Amortized Cost Carrying Value Fair Value Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years — — — — — — Due after ten years 85,670 85,670 82,422 86,430 86,430 82,951 Non-mortgage-backed securities 85,670 85,670 82,422 86,430 86,430 82,951 Mortgage-backed securities 3,642,985 3,642,985 3,634,582 4,370,443 4,370,443 4,364,127 TOTAL $ 3,728,655 $ 3,728,655 $ 3,717,004 $ 4,456,873 $ 4,456,873 $ 4,447,078 Net gains (losses) were realized on the sale of held-to-maturity securities as presented below and are recorded as net gains (losses) on sale of held-to-maturity securities in other income (loss) on the Statements of Income. All securities sold had paid down below 15 percent of the principal outstanding at acquisition. Table 3.13 presents details of the sales (in thousands). Table 3.13 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Proceeds from sale of held-to-maturity securities $ — $ 67,566 $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold — (66,037 ) (9,488 ) (86,236 ) NET REALIZED GAINS (LOSSES) $ — $ 1,529 $ (46 ) $ 1,591 As of September 30, 2019 , the fair value of a portion of the FHLBank's available-for-sale and held-to-maturity securities were below the amortized cost of the securities due to interest rate volatility and/or illiquidity. However, the decline in fair value of these securities is considered temporary as the FHLBank expects to recover the entire amortized cost basis on the remaining securities in unrecognized loss positions and neither intends to sell these securities nor is it more likely than not that the FHLBank will be required to sell these securities before its anticipated recovery of the remaining amortized cost basis. |
Advances
Advances | 9 Months Ended |
Sep. 30, 2019 | |
Advances [Abstract] | |
Advances | ADVANCES General Terms: The FHLBank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics and optionality. As of September 30, 2019 and December 31, 2018, the FHLBank had advances outstanding at interest rates ranging from 0.95 percent to 7.41 percent and 0.88 percent to 7.41 percent, respectively. Table 4.1 presents advances summarized by redemption term as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 4.1 09/30/2019 12/31/2018 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 14,132,104 2.23 % $ 14,844,804 2.60 % Due after one year through two years 6,623,255 2.29 1,482,844 2.40 Due after two years through three years 1,378,995 2.45 1,442,333 2.53 Due after three years through four years 2,438,871 2.31 7,496,058 2.66 Due after four years through five years 3,150,589 2.35 816,702 2.68 Thereafter 2,797,752 2.46 2,695,008 2.58 Total par value 30,521,566 2.29 % 28,777,749 2.60 % Discounts (2,034 ) (3,413 ) Hedging adjustments 115,051 (44,223 ) TOTAL $ 30,634,583 $ 28,730,113 The FHLBank’s advances outstanding include advances that contain call options that may be exercised with or without prepayment fees at the borrower’s discretion on specific dates (call dates) before the stated advance maturities (callable advances). In exchange for receiving the right to call the advance on a predetermined call schedule, the borrower may pay a higher fixed rate for the advance relative to an equivalent maturity, non-callable, fixed rate advance. The borrower normally exercises its call options on these advances when interest rates decline (fixed rate advances) or spreads change (adjustable rate advances). Convertible advances allow the FHLBank to convert an advance from one interest payment term structure to another. When issuing convertible advances, the FHLBank purchases put options from a member that allow the FHLBank to convert the fixed rate advance to a variable rate advance at the current market rate or another structure after an agreed-upon lockout period. A convertible advance carries a lower interest rate than a comparable-maturity fixed rate advance without the conversion feature. Table 4.2 presents advances summarized by redemption term or next call date (for callable advances) and by redemption term or next conversion date (for convertible advances) as of September 30, 2019 and December 31, 2018 (in thousands): Table 4.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 09/30/2019 12/31/2018 09/30/2019 12/31/2018 Due in one year or less $ 24,738,805 $ 23,343,939 $ 14,672,104 $ 15,133,204 Due after one year through two years 1,418,909 1,271,660 6,827,355 1,683,644 Due after two years through three years 776,452 1,021,189 1,647,995 1,629,233 Due after three years through four years 633,870 555,901 2,585,121 7,752,058 Due after four years through five years 724,005 598,282 3,223,089 954,452 Thereafter 2,229,525 1,986,778 1,565,902 1,625,158 TOTAL PAR VALUE $ 30,521,566 $ 28,777,749 $ 30,521,566 $ 28,777,749 Interest Rate Payment Terms : Table 4.3 details additional interest rate payment terms for advances as of September 30, 2019 and December 31, 2018 (in thousands): Table 4.3 Redemption Term 09/30/2019 12/31/2018 Fixed rate: Due in one year or less $ 1,805,217 $ 1,635,464 Due after one year 5,798,750 5,455,193 Total fixed rate 7,603,967 7,090,657 Variable rate: Due in one year or less 12,326,887 13,209,340 Due after one year 10,590,712 8,477,752 Total variable rate 22,917,599 21,687,092 TOTAL PAR VALUE $ 30,521,566 $ 28,777,749 See Note 6 for information related to the FHLBank’s credit risk on advances and allowance for credit losses. |
Mortgage Loans
Mortgage Loans | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Mortgage Loans | MORTGAGE LOANS The MPF Program involves the FHLBank investing in mortgage loans, which have been funded by the FHLBank through or purchased from participating financial institutions (PFIs). These mortgage loans are government-guaranteed or -insured loans (by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture and/or the Department of Housing and Urban Development) and conventional residential loans credit-enhanced by PFIs. Depending upon a member’s product selection, the servicing rights can be retained or sold by the participating member. The FHLBank does not buy or own any mortgage servicing rights. Mortgage Loans Held for Portfolio: Table 5.1 presents information as of September 30, 2019 and December 31, 2018 on mortgage loans held for portfolio (in thousands): Table 5.1 09/30/2019 12/31/2018 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,212,501 $ 1,179,087 Fixed rate, long-term, single-family mortgages 8,473,501 7,111,856 Total unpaid principal balance 9,686,002 8,290,943 Premiums 145,443 120,548 Discounts (2,541 ) (2,936 ) Deferred loan costs, net 198 223 Other deferred fees (42 ) (50 ) Hedging adjustments 5,608 2,546 Total before Allowance for Credit Losses on Mortgage Loans 9,834,668 8,411,274 Allowance for Credit Losses on Mortgage Loans (905 ) (812 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 9,833,763 $ 8,410,462 1 Medium-term defined as a term of 15 years or less at origination. Table 5.2 presents information as of September 30, 2019 and December 31, 2018 on the outstanding unpaid principal balance (UPB) of mortgage loans held for portfolio (in thousands): Table 5.2 09/30/2019 12/31/2018 Conventional loans $ 9,044,728 $ 7,619,498 Government-guaranteed or -insured loans 641,274 671,445 TOTAL UNPAID PRINCIPAL BALANCE $ 9,686,002 $ 8,290,943 See Note 6 for information related to the FHLBank’s credit risk on mortgage loans and allowance for credit losses. |
Allowance For Credit Losses
Allowance For Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Allowance For Credit Losses | ALLOWANCE FOR CREDIT LOSSES The FHLBank has established an allowance methodology for each of its portfolio segments: credit products (advances, letters of credit and other extensions of credit to borrowers); government mortgage loans held for portfolio; conventional mortgage loans held for portfolio; the direct financing lease receivable; term Federal funds sold; and term securities purchased under agreements to resell. Based on management's analyses of each portfolio segment, the FHLBank has only established an allowance for credit losses on its conventional mortgage loans held for portfolio. Allowance for Credit Losses : Table 6.1 presents a roll-forward of the allowance for credit losses for the three and nine months ended September 30, 2019 and 2018 (in thousands): Table 6.1 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Balance, beginning of the period $ 858 $ 1,029 $ 812 $ 1,208 Net (charge-offs) recoveries (346 ) 18 (416 ) (207 ) Provision (reversal) for credit losses 393 (391 ) 509 (345 ) Balance, end of the period $ 905 $ 656 $ 905 $ 656 Table 6.2 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of September 30, 2019 (in thousands). The recorded investment in a financing receivable is the UPB, adjusted for accrued interest, net deferred loan fees or costs, unamortized premiums or discounts, fair value hedging adjustments and direct write-downs. The recorded investment is not net of any valuation allowance. Table 6.2 09/30/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Allowance for credit losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 905 — — — 905 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 905 $ — $ — $ — $ 905 Recorded investment: Individually evaluated for impairment $ 11,285 $ — $ 30,690,019 $ 9,633 $ 30,710,937 Collectively evaluated for impairment 9,218,725 653,184 — — 9,871,909 TOTAL RECORDED INVESTMENT $ 9,230,010 $ 653,184 $ 30,690,019 $ 9,633 $ 40,582,846 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Table 6.3 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of September 30, 2018 (in thousands): Table 6.3 09/30/2018 Conventional Government Credit 1 Direct Total Allowance for credit losses: Individually evaluated for impairment $ 37 $ — $ — $ — $ 37 Collectively evaluated for impairment 619 — — — 619 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 656 $ — $ — $ — $ 656 Recorded investment: Individually evaluated for impairment $ 9,904 $ — $ 28,514,148 $ 12,718 $ 28,536,770 Collectively evaluated for impairment 7,450,722 693,567 — — 8,144,289 TOTAL RECORDED INVESTMENT $ 7,460,626 $ 693,567 $ 28,514,148 $ 12,718 $ 36,681,059 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Credit Quality Indicators: The FHLBank’s key credit quality indicators include the migration of: (1) past due loans; (2) non-accrual loans; (3) loans in process of foreclosure; and (4) impaired loans, all of which are used either on an individual or pool basis to determine the allowance for credit losses. Table 6.4 summarizes the delinquency aging and key credit quality indicators for all of the FHLBank’s portfolio segments as of September 30, 2019 (dollar amounts in thousands): Table 6.4 09/30/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 48,259 $ 14,885 $ — $ — $ 63,144 Past due 60-89 days delinquent 7,182 4,226 — — 11,408 Past due 90 days or more delinquent 10,083 8,427 — — 18,510 Total past due 65,524 27,538 — — 93,062 Total current loans 9,164,486 625,646 30,690,019 9,633 40,489,784 Total recorded investment $ 9,230,010 $ 653,184 $ 30,690,019 $ 9,633 $ 40,582,846 Other delinquency statistics: In process of foreclosure, included above 2 $ 3,505 $ 2,676 $ — $ — $ 6,181 Serious delinquency rate 3 0.1 % 1.3 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 8,427 $ — $ — $ 8,427 Loans on non-accrual status 4 $ 13,824 $ — $ — $ — $ 13,824 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,279,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Table 6.5 summarizes the key credit quality indicators for all of the FHLBank’s portfolio segments as of December 31, 2018 (dollar amounts in thousands): Table 6.5 12/31/2018 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 34,020 $ 14,790 $ — $ — $ 48,810 Past due 60-89 days delinquent 6,750 6,114 — — 12,864 Past due 90 days or more delinquent 8,169 7,898 — — 16,067 Total past due 48,939 28,802 — — 77,741 Total current loans 7,720,640 655,054 28,777,274 11,966 37,164,934 Total recorded investment $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 Other delinquency statistics: In process of foreclosure, included above 2 $ 2,922 $ 2,398 $ — $ — $ 5,320 Serious delinquency rate 3 0.1 % 1.2 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 7,898 $ — $ — $ 7,898 Loans on non-accrual status 4 $ 11,301 $ — $ — $ — $ 11,301 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The FHLBank had $1,336,000 and $2,183,000 classified as real estate owned recorded in other assets as of September 30, 2019 and December 31, 2018 , respectively. |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Table 7.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of September 30, 2019 and December 31, 2018 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 7.1 09/30/2019 12/31/2018 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 14,098,263 $ 20,184 $ 126,203 $ 8,345,925 $ 73,969 $ 24,177 Total derivatives designated as hedging relationships 14,098,263 20,184 126,203 8,345,925 73,969 24,177 Derivatives not designated as hedging instruments: Interest rate swaps 3,637,306 848 38,832 2,151,920 12,907 17,322 Interest rate caps/floors 1,248,200 170 — 1,373,200 1,044 — Mortgage delivery commitments 375,772 206 658 101,551 552 3 Consolidated obligation discount note commitments — — — 525,000 — — Total derivatives not designated as hedging instruments 5,261,278 1,224 39,490 4,151,671 14,503 17,325 TOTAL $ 19,359,541 21,408 165,693 $ 12,497,596 88,472 41,502 Netting adjustments and cash collateral 1 115,642 (164,703 ) (52,377 ) (33,618 ) DERIVATIVE ASSETS AND LIABILITIES $ 137,050 $ 990 $ 36,095 $ 7,884 1 Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018 , respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018 , respectively. The FHLBank carries derivative instruments at fair value on its Statements of Condition. Any change in the fair value of derivatives designated under a fair value hedging relationship is recorded each period in current period earnings. Fair value hedge accounting allows for the offsetting fair value of the hedged risk in the hedged item to also be recorded in current period earnings. Beginning on January 1, 2019, changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item. Prior to January 1, 2019, for fair value hedges, any hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedge item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Interest settlements on derivatives designated as fair value hedges were recorded in net interest income or expense prior to, and continue to be recorded in net interest income or expense after January 1, 2019. However, beginning on January 1, 2019, disclosed gains (losses) on fair value derivatives include unrealized changes in fair value as well as net interest settlements. For the three months ended September 30, 2019 and 2018 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 7.2 (in thousands): Table 7.2 Three Months Ended 09/30/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 186,431 $ 47,811 $ 133,680 $ 185,096 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (39,873 ) $ (61,468 ) $ (4 ) $ 3,915 Hedged items 2 43,355 75,743 3 (5,061 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 3,482 $ 14,275 $ (1 ) $ (1,146 ) 09/30/2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 4,385 $ 510 $ (2,280 ) $ 28,615 Hedged items 2 (1,022 ) — — (28,753 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 3,363 $ 510 $ (2,280 ) $ (138 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. For the nine months ended September 30, 2019 and 2018 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 7.3 (in thousands): Table 7.3 Nine Months Ended 09/30/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 563,602 $ 78,694 $ 433,473 $ 519,967 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (144,016 ) $ (205,705 ) $ 21 $ 30,968 Hedged items 2 159,254 206,340 (12 ) (39,427 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 15,238 $ 635 $ 9 $ (8,459 ) 09/30/2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 4,423 $ (752 ) $ (2,700 ) $ 122,399 Hedged items 2 (3,283 ) — — (124,369 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 1,140 $ (752 ) $ (2,700 ) $ (1,970 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. Table 7.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of September 30, 2019 (in thousands): Table 7.4 09/30/2019 Line Item in Statement of Condition of Hedged Item Carrying Value of Hedged Asset/(Liability) 1 Basis Adjustments for Active Hedging Relationships 2 Basis Adjustments for Discontinued Hedging Relationships 2 Cumulative Amount of Fair Value Hedging Basis Adjustments 2 Advances $ 4,672,632 $ 113,443 $ 1,608 $ 115,051 Available-for-sale securities 6,081,110 145,653 — 145,653 Consolidated obligation bonds (3,734,212 ) (32,913 ) — (32,913 ) 1 Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). 2 Included in amortized cost of the hedged asset/liability. Table 7.5 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 7.5 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Derivatives designated as hedging instruments: Interest rate swaps $ (138 ) $ (1,970 ) Total net gains (losses) related to fair value hedge ineffectiveness (138 ) (1,970 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (19,566 ) 8,256 $ (80,593 ) 38,087 Interest rate caps/floors (494 ) (184 ) (874 ) 378 Net interest settlements (691 ) (1,192 ) (1,238 ) (4,592 ) Mortgage delivery commitments 365 (710 ) 3,836 (2,242 ) Consolidated obligation discount note commitments — — (70 ) — Total net gains (losses) related to derivatives not designated as hedging instruments (20,386 ) 6,170 (78,939 ) 31,631 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (20,386 ) $ 6,032 $ (78,939 ) $ 29,661 Based on credit analyses and collateral requirements, FHLBank management does not anticipate any credit losses on its derivative agreements. The maximum credit risk applicable to a single counterparty was $440,000 and $25,799,000 as of September 30, 2019 and December 31, 2018 , respectively. The counterparty was different for each period . For uncleared derivative transactions, the FHLBank has entered into bilateral security agreements with its counterparties with bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts. The FHLBank utilizes two Derivative Clearing Organizations (Clearinghouse) for all cleared derivative transactions, LCH Limited and CME Clearing. At both Clearinghouses, initial margin is considered cash collateral. For cleared derivatives, the Clearinghouse determines initial margin requirements and 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 FHLBank was not required to post additional initial margin by its clearing agents as of September 30, 2019 and December 31, 2018 . The FHLBank’s net exposure on derivative agreements is presented in Note 10 . |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. Table 8.1 details the types of deposits held by the FHLBank as of September 30, 2019 and December 31, 2018 (in thousands): Table 8.1 09/30/2019 12/31/2018 Interest-bearing: Demand $ 302,491 $ 265,021 Overnight 304,000 158,300 Total interest-bearing 606,491 423,321 Non-interest-bearing: Other 149,885 50,499 Total non-interest-bearing 149,885 50,499 TOTAL DEPOSITS $ 756,376 $ 473,820 |
Consolidated Obligations
Consolidated Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | CONSOLIDATED OBLIGATIONS Consolidated Obligation Bonds: Table 9.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 9.1 09/30/2019 12/31/2018 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 15,086,200 2.10 % $ 8,960,500 2.17 % Due after one year through two years 7,990,600 2.12 5,625,750 2.28 Due after two years through three years 1,373,900 2.24 2,285,100 2.11 Due after three years through four years 1,351,700 2.33 1,134,750 2.21 Due after four years through five years 1,131,600 2.34 1,087,900 2.58 Thereafter 5,471,600 2.84 4,879,850 3.01 Total par value 32,405,600 2.26 % 23,973,850 2.38 % Premiums 21,331 15,591 Discounts (3,573 ) (4,088 ) Concession fees (14,386 ) (12,445 ) Hedging adjustments 32,913 (6,514 ) TOTAL $ 32,441,885 $ 23,966,394 The FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of the FHLBank on predetermined call dates in accordance with terms of bond offerings. The FHLBank’s participation in consolidated obligation bonds outstanding as of September 30, 2019 and December 31, 2018 includes callable bonds totaling $9,412,000,000 and $8,559,000,000 , respectively. The FHLBank uses the unswapped callable bonds for financing its callable fixed rate advances (Note 4 ), MBS (Note 3 ) and mortgage loans (Note 5 ). Contemporaneous with a portion of its fixed rate callable bond issuances, the FHLBank also enters into interest rate swap agreements (in which the FHLBank generally pays a variable rate and receives a fixed rate) with call features that mirror the options in the callable bonds (a sold callable swap). The combined sold callable swap and callable debt transaction allows the FHLBank to obtain attractively priced variable rate financing. Table 9.2 summarizes the FHLBank’s participation in consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of September 30, 2019 and December 31, 2018 (in thousands): Table 9.2 Year of Maturity or Next Call Date 09/30/2019 12/31/2018 Due in one year or less $ 23,908,200 $ 16,971,500 Due after one year through two years 6,520,600 5,270,750 Due after two years through three years 618,900 655,100 Due after three years through four years 590,200 319,750 Due after four years through five years 345,100 275,150 Thereafter 422,600 481,600 TOTAL PAR VALUE $ 32,405,600 $ 23,973,850 Table 9.3 summarizes interest rate payment terms for consolidated obligation bonds as of September 30, 2019 and December 31, 2018 (in thousands): Table 9.3 09/30/2019 12/31/2018 Simple variable rate $ 16,287,000 $ 10,095,000 Fixed rate 15,288,600 12,858,850 Step 340,000 470,000 Variable rate with cap 260,000 20,000 Fixed to variable rate 220,000 515,000 Range 10,000 15,000 TOTAL PAR VALUE $ 32,405,600 $ 23,973,850 Consolidated Discount Notes: Table 9.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 9.4 Book Value Par Value Weighted Average Interest Rate 1 September 30, 2019 $ 21,044,232 $ 21,084,315 2.00 % December 31, 2018 $ 20,608,332 $ 20,649,098 2.35 % 1 Represents yield to maturity excluding concession fees. |
Assets and Liabilities Subject
Assets and Liabilities Subject to Offsetting | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Assets and Liabilities Subject to Offsetting | ASSETS AND LIABILITIES SUBJECT TO OFFSETTING The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. The FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, the FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. Tables 10.1 and 10.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of September 30, 2019 and December 31, 2018 (in thousands): Table 10.1 09/30/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 18,927 $ (17,117 ) $ 1,810 $ (206 ) $ 1,604 Cleared derivatives 2,481 132,759 135,240 — 135,240 Total derivative assets 21,408 115,642 137,050 (206 ) 136,844 Securities purchased under agreements to resell 2,137,374 — 2,137,374 (2,137,374 ) — TOTAL $ 2,158,782 $ 115,642 $ 2,274,424 $ (2,137,580 ) $ 136,844 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 10.2 12/31/2018 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 88,296 $ (83,378 ) $ 4,918 $ (1,618 ) $ 3,300 Cleared derivatives 176 31,001 31,177 — 31,177 Total derivative assets 88,472 (52,377 ) 36,095 (1,618 ) 34,477 Securities purchased under agreements to resell 1,251,096 — 1,251,096 (1,251,096 ) — TOTAL $ 1,339,568 $ (52,377 ) $ 1,287,191 $ (1,252,714 ) $ 34,477 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Tables 10.3 and 10.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of September 30, 2019 and December 31, 2018 (in thousands): Table 10.3 09/30/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 165,301 $ (164,311 ) $ 990 $ (658 ) $ 332 Cleared derivatives 392 (392 ) — — — Total derivative liabilities 165,693 (164,703 ) 990 (658 ) 332 TOTAL $ 165,693 $ (164,703 ) $ 990 $ (658 ) $ 332 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 10.4 12/31/2018 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 36,363 $ (28,479 ) $ 7,884 $ (3 ) $ 7,881 Cleared derivatives 5,139 (5,139 ) — — — Total derivative liabilities 41,502 (33,618 ) 7,884 (3 ) 7,881 TOTAL $ 41,502 $ (33,618 ) $ 7,884 $ (3 ) $ 7,881 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital
Capital | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Capital | CAPITAL Capital Requirements: The FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the Federal Housing Finance Agency's (FHFA) capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock. • Risk-based capital. The FHLBank must maintain at all times permanent capital in an amount at least equal to the sum of its credit risk, market risk and operations risk capital requirements. The risk-based capital requirements are all calculated in accordance with the rules and regulations of the FHFA. Only permanent capital, defined as Class B Common Stock and retained earnings, can be used by the FHLBank to satisfy its risk-based capital requirement. The FHFA may require the FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined, but the FHFA has not placed any such requirement on the FHLBank to date. • Total regulatory capital. The GLB Act requires the FHLBank to maintain at all times at least a 4.0 percent total capital-to-asset ratio. Total regulatory capital is defined as the sum of permanent capital, Class A Common Stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses. • Leverage capital. The FHLBank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.0 percent , with the leverage capital ratio defined as the sum of permanent capital weighted 1.5 times and non-permanent capital (currently only Class A Common Stock) weighted 1.0 times, divided by total assets. Table 11.1 illustrates that the FHLBank was in compliance with its regulatory capital requirements as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 11.1 09/30/2019 12/31/2018 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 382,468 $ 2,300,065 $ 387,729 $ 2,193,001 Total regulatory capital-to-asset ratio 4.0 % 4.6 % 4.0 % 5.1 % Total regulatory capital $ 2,285,245 $ 2,646,115 $ 1,908,610 $ 2,442,156 Leverage capital ratio 5.0 % 6.6 % 5.0 % 7.4 % Leverage capital $ 2,856,557 $ 3,796,147 $ 2,385,763 $ 3,538,656 Mandatorily Redeemable Capital Stock: The FHLBank is a cooperative whose members own most of the FHLBank’s capital stock. Former members (including certain non-members that own FHLBank capital stock as a result of merger or acquisition, relocation, charter termination, or involuntary termination of an FHLBank member) own the remaining capital stock to support business transactions still carried on the FHLBank's Statements of Condition. Shares cannot be purchased or sold except between the FHLBank and its members at a price equal to the $100 per share par value. If a member cancels its written notice of redemption or notice of withdrawal, the FHLBank will reclassify mandatorily redeemable capital stock from a liability to equity. After the reclassification, dividends on the capital stock would no longer be classified as interest expense. Table 11.2 presents a roll-forward of mandatorily redeemable capital stock for the three and nine months ended September 30, 2019 and 2018 (in thousands): Table 11.2 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Balance, beginning of period $ 2,750 $ 4,578 $ 3,597 $ 5,312 Capital stock subject to mandatory redemption reclassified from equity during the period 159,775 215,107 218,411 893,545 Redemption or repurchase of mandatorily redeemable capital stock during the period (160,078 ) (215,206 ) (219,642 ) (894,494 ) Stock dividend classified as mandatorily redeemable capital stock during the period 30 57 111 173 Balance, end of period $ 2,477 $ 4,536 $ 2,477 $ 4,536 Table 11.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of September 30, 2019 and December 31, 2018 (in thousands). The year of redemption in Table 11.3 is the end of the redemption period in accordance with the FHLBank’s capital plan. The FHLBank is not required to redeem or repurchase membership stock until six months (for Class A Common Stock) or five years (for Class B Common Stock) after the FHLBank receives notice for withdrawal from the member. Additionally, the FHLBank is not required to redeem or repurchase activity-based stock until any activity-based stock becomes excess stock as a result of an activity no longer remaining outstanding. However, the FHLBank intends to repurchase the excess activity-based stock of non-members to the extent that it can do so and still meet its regulatory capital requirements. Table 11.3 Contractual Year of Repurchase 09/30/2019 12/31/2018 Year 1 $ — $ — Year 2 1 — Year 3 873 1 Year 4 — 1,798 Year 5 — — Past contractual redemption date due to remaining activity 1 1,603 1,798 TOTAL $ 2,477 $ 3,597 1 Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. Excess Capital Stock: Excess capital stock is defined as the amount of stock held by a member (or former member) in excess of that institution’s minimum stock purchase requirement. FHFA rules limit the ability of the FHLBank to create excess member stock under certain circumstances. For example, the FHLBank may not pay dividends in the form of capital stock or issue new excess stock to members if the FHLBank’s excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause the FHLBank’s excess stock to exceed one percent of its total assets. As of September 30, 2019 , the FHLBank’s excess stock was less than one percent of total assets. Capital Classification Determination: The FHFA determines each FHLBank’s capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, the FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA is required to provide the FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent review by the FHFA for the second quarter of 2019 , the FHLBank was classified as adequately capitalized . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Table 12.1 summarizes the changes in AOCI for the three months ended September 30, 2019 and 2018 (in thousands): Table 12.1 Three Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Net Non-credit Portion of OTTI Gains (Losses) on Defined Benefit Pension Plan Total AOCI Balance at June 30, 2018 $ 29,628 $ (3,655 ) $ (1,373 ) $ 24,600 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 3,694 3,694 Accretion of non-credit loss 30 30 Non-credit losses included in basis of securities sold 3,625 3,625 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 5 5 Net current period other comprehensive income (loss) 3,694 3,655 5 7,354 Balance at September 30, 2018 $ 33,322 $ — $ (1,368 ) $ 31,954 Balance at June 30, 2019 $ 35,143 $ — $ (3,230 ) $ 31,913 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (17,324 ) (17,324 ) Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 95 95 Net current period other comprehensive income (loss) (17,324 ) — 95 (17,229 ) Balance at September 30, 2019 $ 17,819 $ — $ (3,135 ) $ 14,684 1 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). Table 12.2 summarizes the changes in AOCI for the nine months ended September 30, 2019 and 2018 (in thousands): Table 12.2 Nine Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Net Non-credit Portion of OTTI Gains (Losses) on Held-to-maturity Securities Defined Benefit Pension Plan Total AOCI Balance at December 31, 2017 $ 31,206 $ (4,163 ) $ (1,385 ) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 2,116 2,116 Accretion of non-credit loss 513 513 Non-credit losses included in basis of securities sold 3,625 3,625 Reclassifications from other comprehensive income (loss) to net income: Non-credit OTTI to credit OTTI 1 25 25 Amortization of net losses - defined benefit pension plan 2 17 17 Net current period other comprehensive income (loss) 2,116 4,163 17 6,296 Balance at September 30, 2018 $ 33,322 $ — $ (1,368 ) $ 31,954 Balance at December 31, 2018 $ 19,068 $ — $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (1,249 ) (1,249 ) Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 240 240 Net current period other comprehensive income (loss) (1,249 ) — 240 (1,009 ) Balance at September 30, 2019 $ 17,819 $ — $ (3,135 ) $ 14,684 1 Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by the FHLBank using available market and other pertinent information and reflect the FHLBank’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., an exit price). Although the FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique. Therefore, the fair values may not be indicative of the amounts that would have been realized in market transactions as of September 30, 2019 and December 31, 2018 . Additionally, these values do not represent an estimate of the overall market value of the FHLBank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities. Subjectivity of Estimates: Estimates of the fair value of advances with options, mortgage instruments, derivatives with embedded options and consolidated obligation bonds with options 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, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates. Fair Value Hierarchy: The fair value hierarchy requires the FHLBank to maximize the use of observable inputs and minimize the use of 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 the market observability of the fair value measurement for the asset or liability. The FHLBank must disclose the level within the fair value hierarchy in which the measurements are classified for all assets and liabilities. 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 active markets that the FHLBank can access on the measurement date. • Level 2 Inputs – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets and liabilities in active markets; (2) quoted prices for similar assets and liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for the asset or liability. The FHLBank 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. There were no transfers of assets or liabilities between fair value levels during the three and nine months ended September 30, 2019 and 2018 . Tables 13.1 and 13.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of September 30, 2019 and December 31, 2018 . The FHLBank records trading securities, available-for-sale securities, derivative assets, and derivative liabilities at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. The FHLBank measures all other financial assets and liabilities at amortized cost. Further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis are presented in Tables 13.3 and 13.4 . The carrying value, fair value and fair value hierarchy of the FHLBank’s financial assets and liabilities as of September 30, 2019 and December 31, 2018 are summarized in Tables 13.1 and 13.2 (in thousands): Table 13.1 09/30/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 24,639 $ 24,639 $ 24,639 $ — $ — $ — Interest-bearing deposits 481,989 481,989 — 481,989 — — Securities purchased under agreements to resell 2,137,374 2,137,374 — 2,137,374 — — Federal funds sold 900,000 900,000 — 900,000 — — Trading securities 2,901,575 2,901,575 — 2,901,575 — — Available-for-sale securities 6,098,929 6,098,929 — 6,098,929 — — Held-to-maturity securities 3,728,655 3,717,004 — 3,634,582 82,422 — Advances 30,634,583 30,680,520 — 30,680,520 — — Mortgage loans held for portfolio, net of allowance 9,833,763 10,149,450 — 10,147,407 2,043 — Accrued interest receivable 150,823 150,823 — 150,823 — — Derivative assets 137,050 137,050 — 21,408 — 115,642 Liabilities: Deposits 756,376 756,376 — 756,376 — — Consolidated obligation discount notes 21,044,232 21,045,884 — 21,045,884 — — Consolidated obligation bonds 32,441,885 32,528,060 — 32,528,060 — — Mandatorily redeemable capital stock 2,477 2,477 2,477 — — — Accrued interest payable 116,478 116,478 — 116,478 — — Derivative liabilities 990 990 — 165,693 — (164,703 ) Other Asset (Liability): Industrial revenue bonds 35,000 35,277 — 35,277 — — Financing obligation payable (35,000 ) (35,277 ) — (35,277 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty . Table 13.2 12/31/2018 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 15,060 $ 15,060 $ 15,060 $ — $ — $ — Interest-bearing deposits 670,660 670,660 — 670,660 — — Securities purchased under agreements to resell 1,251,096 1,251,096 — 1,251,096 — — Federal funds sold 50,000 50,000 — 50,000 — — Trading securities 2,151,113 2,151,113 — 2,151,113 — — Available-for-sale securities 1,725,640 1,725,640 — 1,725,640 — — Held-to-maturity securities 4,456,873 4,447,078 — 4,364,127 82,951 — Advances 28,730,113 28,728,201 — 28,728,201 — — Mortgage loans held for portfolio, net of allowance 8,410,462 8,388,885 — 8,387,425 1,460 — Accrued interest receivable 109,366 109,366 — 109,366 — — Derivative assets 36,095 36,095 — 88,472 — (52,377 ) Liabilities: Deposits 473,820 473,820 — 473,820 — — Consolidated obligation discount notes 20,608,332 20,606,743 — 20,606,743 — — Consolidated obligation bonds 23,966,394 23,727,705 — 23,727,705 — — Mandatorily redeemable capital stock 3,597 3,597 3,597 — — — Accrued interest payable 87,903 87,903 — 87,903 — — Derivative liabilities 7,884 7,884 — 41,502 — (33,618 ) Other Asset (Liability): Industrial revenue bonds 35,000 32,154 — 32,154 — — Financing obligation payable (35,000 ) (32,154 ) — (32,154 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. Fair Value Measurements: Tables 13.3 and 13.4 present, for each hierarchy level, the FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended September 30, 2019 and December 31, 2018 (in thousands). Table 13.3 09/30/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,533,842 $ — $ 1,533,842 $ — $ — GSE obligations 2 468,747 — 468,747 — — GSE MBS 3 898,986 — 898,986 — — Total trading securities 2,901,575 — 2,901,575 — — Available-for-sale securities: U.S. Treasury obligations 3,510,728 — 3,510,728 — — GSE MBS 4 2,588,201 — 2,588,201 — — Total available-for-sale securities 6,098,929 — 6,098,929 — — Derivative assets: Interest-rate related 136,844 — 21,202 — 115,642 Mortgage delivery commitments 206 — 206 — — Total derivative assets 137,050 — 21,408 — 115,642 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 9,137,554 $ — $ 9,021,912 $ — $ 115,642 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 332 $ — $ 165,035 $ — $ (164,703 ) Mortgage delivery commitments 658 — 658 — — Total derivative liabilities 990 — 165,693 — (164,703 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 990 $ — $ 165,693 $ — $ (164,703 ) Nonrecurring fair value measurements - Assets 5 : Impaired mortgage loans $ 2,056 $ — $ — $ 2,056 $ — Real estate owned 22 — — 22 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,078 $ — $ — $ 2,078 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Represents debentures issued by other FHLBanks, Fannie Mae, Farm Credit and Farmer Mac. 3 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. 4 Represents multi-family MBS issued by Fannie Mae. 5 Includes assets adjusted to fair value during the nine months ended September 30, 2019 and still outstanding as of September 30, 2019 . Table 13.4 12/31/2018 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 252,377 $ — $ 252,377 $ — $ — GSE obligations 2 1,000,495 — 1,000,495 — — U.S. obligation MBS 3 467 — 467 — — GSE MBS 4 897,774 — 897,774 — — Total trading securities 2,151,113 — 2,151,113 — — Available-for-sale securities: GSE MBS 5 1,725,640 — 1,725,640 — — Total available-for-sale securities 1,725,640 — 1,725,640 — — Derivative assets: Interest-rate related 35,543 — 87,920 — (52,377 ) Mortgage delivery commitments 552 — 552 — — Total derivative assets 36,095 — 88,472 — (52,377 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 3,912,848 $ — $ 3,965,225 $ — $ (52,377 ) Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 7,881 $ — $ 41,499 $ — $ (33,618 ) Mortgage delivery commitments 3 — 3 — — Total derivative liabilities 7,884 — 41,502 — (33,618 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 7,884 $ — $ 41,502 $ — $ (33,618 ) Nonrecurring fair value measurements - Assets 6 : Impaired mortgage loans 1,463 — — 1,463 — Real estate owned 1,028 — — 1,028 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,491 $ — $ — $ 2,491 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Represents debentures issued by other FHLBanks, Fannie Mae, Farm Credit and Farmer Mac. 3 Represents single-family MBS issued by Ginnie Mae. 4 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. 5 Represents multi-family MBS issued by Fannie Mae. 6 Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018 . |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Joint and Several Liability: As provided in the Federal Home Loan Bank Act of 1932, as amended (Bank Act) or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. The par amounts for which FHLBank Topeka is jointly and severally liable were approximately $956,780,794,000 and $986,994,515,000 as of September 30, 2019 and December 31, 2018 , respectively. The joint and several obligations are mandated by FHFA regulations and are not the result of arms-length transactions among the FHLBanks. As described above, the FHLBanks have no control over the amount of the guaranty or the determination of how each FHLBank would perform under the joint and several liability. Because the FHLBanks are subject to the authority of the FHFA as it relates to decisions involving the allocation of the joint and several liability for all FHLBanks' consolidated obligations, FHLBank Topeka regularly monitors the financial condition of the other FHLBanks to determine whether it should expect a loss to arise from its joint and several obligations. If the FHLBank were to determine that a loss was probable and the amount of the loss could be reasonably estimated, the FHLBank would charge to income the amount of the expected loss. Based upon the creditworthiness of the other FHLBanks as of September 30, 2019 , FHLBank Topeka has concluded that a loss accrual is not necessary at this time. Off-balance Sheet Commitments: As of September 30, 2019 and December 31, 2018 , off-balance sheet commitments are presented in Table 14.1 (in thousands): Table 14.1 09/30/2019 12/31/2018 Notional Amount Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit outstanding $ 3,538,145 $ 7,290 $ 3,545,435 $ 3,824,497 $ 37,933 $ 3,862,430 Advance commitments outstanding 77,115 31,420 108,535 116,475 43,782 160,257 Commitments for standby bond purchases 184,945 580,884 765,829 69,277 686,602 755,879 Commitments to fund or purchase mortgage loans 375,772 — 375,772 101,551 — 101,551 Commitments to issue consolidated bonds, at par 81,000 — 81,000 — — — Commitments to issue consolidated discount notes, at par — — — 1,825,000 — 1,825,000 Commitments to Extend Credit: The FHLBank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances and are fully collateralized with assets allowed by the FHLBank’s Member Products Policy (MPP). 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 for members for a fee. If the FHLBank is required to make payment for a beneficiary's draw, the member either reimburses the FHLBank for the amount drawn or, subject to the FHLBank's discretion, the amount drawn may be converted into a collateralized advance to the member. However, standby letters of credit usually expire without being drawn upon. Outstanding standby letters of credit have original or extended expiration periods of up to 6 years. Our current outstanding standby letters of credit expire no later than 2023 . Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $1,300,000 and $1,296,000 as of September 30, 2019 and December 31, 2018 , respectively. Advance commitments legally bind and unconditionally obligate the FHLBank for additional advances up to 24 months in the future. Based upon management’s credit analysis of members and collateral requirements under the MPP, the FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments. Standby Bond-Purchase Agreements: The FHLBank has entered into standby bond purchase agreements with state housing authorities whereby the FHLBank, for a fee, agrees to purchase and hold the authorities’ bonds until the designated marketing agent can find a suitable investor or the housing authority repurchases the bond according to a schedule established by the standby agreement. Each standby agreement dictates the specific terms that would require the FHLBank to purchase the bond. The bond purchase commitments entered into by the FHLBank expire no later than 2022 , though some are renewable at the option of the FHLBank. As of September 30, 2019 and December 31, 2018 , the total commitments for bond purchases included agreements with two in-district state housing authorities. The FHLBank was not required to purchase any bonds under any agreements during the three and nine months ended September 30, 2019 and 2018 . Commitments to Purchase Mortgage Loans: These commitments that unconditionally obligate the FHLBank to purchase mortgage loans from participating FHLBank Topeka members in the MPF Program are generally for periods not to exceed 60 calendar days. Certain commitments are recorded as derivatives at their fair values on the Statements of Condition. The FHLBank recorded mortgage delivery commitment net derivative asset (liability) balances of $(452,000) and $549,000 as of September 30, 2019 and December 31, 2018 , respectively. Commitments to Issue Consolidated Obligations: The FHLBank enters into commitments to issue consolidated obligation bonds and discount notes outstanding in the normal course of its business. Most settle within the shortest period possible and are considered regular way trades; however, certain commitments are recorded as derivatives at their fair values on the Statements of Condition. |
Transactions With Stockholders
Transactions With Stockholders | 9 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Stockholders | TRANSACTIONS WITH STOCKHOLDERS The FHLBank is a cooperative whose members own most of the capital stock of the FHLBank and generally receive dividends on their investments. In addition, certain former members that still have outstanding transactions are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. Nearly all outstanding advances are with current members, and the majority of outstanding mortgage loans held for portfolio were purchased from current or former members. The FHLBank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases. Transactions with members are entered into in the ordinary course of business. In instances where members also have officers or directors who are directors of the FHLBank, transactions with those members are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as other transactions with members. For financial reporting and disclosure purposes, the FHLBank defines related parties as FHLBank directors’ financial institutions and members with capital stock investments in excess of 10 percent of the FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock. Activity with Members that Exceed a 10 Percent Ownership in FHLBank Capital Stock: Tables 15.1 and 15.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands). None of the officers or directors of these members currently serve on the FHLBank’s board of directors. Table 15.1 09/30/2019 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 99,450 28.7 % $ 312,727 23.6 % $ 412,177 24.6 % MidFirst Bank OK 500 0.1 368,500 27.8 369,000 22.1 TOTAL $ 99,950 28.8 % $ 681,227 51.4 % $ 781,177 46.7 % Table 15.2 12/31/2018 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 24,006 9.6 % $ 274,000 21.4 % $ 298,006 19.5 % MidFirst Bank OK 500 0.2 294,700 23.0 295,200 19.3 TOTAL $ 24,506 9.8 % $ 568,700 44.4 % $ 593,206 38.8 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2019 and December 31, 2018 are summarized in Table 15.3 (dollar amounts in thousands). Table 15.3 09/30/2019 12/31/2018 09/30/2019 12/31/2018 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total BOKF, N.A. $ 6,800,000 22.3 % $ 6,100,000 21.2 % $ 29,785 4.0 % $ 29,288 6.2 % MidFirst Bank 8,200,000 26.9 6,560,000 22.8 850 0.1 331 0.1 TOTAL $ 15,000,000 49.2 % $ 12,660,000 44.0 % $ 30,635 4.1 % $ 29,619 6.3 % BOKF, N.A. and MidFirst Bank did not sell any mortgage loans into the MPF Program during the three and nine months ended September 30, 2019 and 2018. Transactions with FHLBank Directors’ Financial Institutions: Table 15.4 presents information as of September 30, 2019 and December 31, 2018 for members that had an officer or director serving on the FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 15.4 09/30/2019 12/31/2018 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 180,964 0.6 % $ 157,012 0.5 % Deposits $ 29,295 3.9 % $ 9,679 2.1 % Class A Common Stock $ 6,344 1.8 % $ 4,179 1.7 % Class B Common Stock 5,658 0.4 4,924 0.4 TOTAL CAPITAL STOCK $ 12,002 0.7 % $ 9,103 0.6 % Table 15.5 presents mortgage loans acquired during the three and nine months ended September 30, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors in 2019 or 2018 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Table 15.5 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 61,362 5.4 % $ 24,676 4.3 % $ 128,251 5.3 % $ 80,047 5.2 % |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation: The accompanying interim financial statements of the FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of the FHLBank’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. The FHLBank’s significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2018 . The interim financial statements presented herein should be read in conjunction with the FHLBank’s audited financial statements and notes thereto, which are included in the FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 18, 2019 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K. |
Reclassification, Policy | Reclassifications : Presentation of cash flow amounts in the prior period have been reclassified to reflect short-term trading securities purchases and proceeds on a gross, rather than net, basis. Certain other immaterial amounts in the financial statements have been reclassified to conform to current period presentations. |
Use Of Estimates, Policy | Use of Estimates : The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of trading and available-for-sale securities, the fair value of derivatives and the allowance for credit losses. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates. |
Derivatives, Policy | Derivatives and Hedging Activities: Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in net interest income in the same line as the earnings effect of the hedged item. Net gains (losses) on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains (losses), which include net interest settlements. Prior to January 1, 2019, fair value hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedged item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Investment Securities: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI) as net unrealized gains (losses) on available-for-sale securities. Beginning January 1, 2019, the FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities that have been hedged and qualify as a fair value hedge, the FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities that were hedged and qualified as a fair value hedge, the FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prepayment Fees on Advances : The FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. The FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. |
New Accounting Pronouncements, Policy | Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Accounting Standards Update (ASU) 2018-16) . In October 2018, the Financial Accounting Standards Board (FASB) issued an amendment that permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the U.S. Treasury rate, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association Municipal Swap Rate. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate. The amendments were adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The amendment was effective concurrently with ASU 2017-12 (see below) for annual periods, and interim periods within those annual periods, beginning January 1, 2019. The adoption of this guidance did not materially affect the FHLBank's application of hedge accounting or utilization of hedging strategies. Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15). In August 2018, the FASB issued an amendment 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). Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow existing guidance relating to internal-use software to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized also cannot be capitalized for a hosting arrangement that is a service contract. Therefore, an entity in a hosting arrangement that is a service contract determines to which project stage (that is, preliminary project stage, application development stage, or post-implementation stage) an implementation activity relates. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The amendments in this ASU also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this ASU will be effective for annual periods, and interim periods within those annual periods beginning after December 31, 2019, which is January 1, 2020 for the FHLBank. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period, for all entities. The FHLBank does not plan on early adoption. The adoption of this guidance is not expected to have a material effect on the FHLBank's financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). In August 2018, the FASB issued an amendment modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans to improve disclosure effectiveness. The amendments in the ASU remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for the FHLBank, and will be applied retrospectively for all comparative periods presented. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact the FHLBank’s financial condition, results of operations or cash flows. Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). In August 2018, the FASB issued an amendment that modifies the disclosure requirements for fair value measurements. This ASU removes the requirement to disclose: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU will be effective for annual periods, and interim periods within those annual periods beginning after December 31, 2019, which is January 1, 2020 for the FHLBank. Early adoption is permitted. The FHLBank does not plan on early adoption. The adoption of this guidance will not have a material impact on the disclosures related to fair value measurements and will not impact the FHLBank’s financial condition, results of operations or cash flows. Targeted Improvements to Accounting for Hedging Activities, as amended (ASU 2017-12) . In August 2017, the FASB issued an amendment to simplify the application of hedge accounting guidance in current GAAP and to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item. In addition, the amendments include certain targeted improvements to the assessment of hedge effectiveness and permit, among other things, the following: • Measurement of the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedge inception; • Measurement of the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; • Consideration only of how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest rate risk; • For a cash flow hedge of interest rate risk of a variable rate financial instrument, an entity can designate the variability in cash flows attributable to the contractually specified interest rate as the hedged risk; and • If an entity that applies the shortcut method determines that use of that method was not or is no longer appropriate, the entity may apply a long-haul method for assessing hedge effectiveness as long as the hedge is highly effective and the entity documents at inception which long-haul methodology it will use. The amendment became effective for annual periods, and interim periods within those annual periods beginning on January 1, 2019 for the FHLBank. The guidance did not affect the FHLBank's application of hedge accounting for existing hedge strategies. For all short-cut hedge accounting trades, the FHLBank updated existing documentation to designate a long-haul method to be utilized in the event a hedge ceases to qualify for the short-cut method. The guidance also provided opportunities to enhance risk management through new hedge strategies, including partial term hedges. The adoption of this guidance did not have a material effect on the FHLBank's financial condition, results of operations or cash flows beyond a prospective change in income statement presentation for fair value hedge relationships and new required disclosures. Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08). In March 2017, the FASB issued an amendment to shorten the amortization period of any premium on callable debt securities to the first call date instead of over the contractual life of the instrument. The amendment does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is intended to reduce diversity in practice in the amortization of premiums and the consideration of how the potential of a security being called is factored into current impairment assessments. The amendment also intends to more closely align the amortization of premiums and discounts to the expectations incorporated into the market pricing of the instrument. The amendment became effective for annual periods, and interim periods within those annual periods beginning on January 1, 2019 for the FHLBank. The adoption of this guidance did not have an impact on the FHLBank's financial condition, results of operations or cash flows. Measurement of Credit Losses on Financial Instruments, as amended (ASU 2016-13). In June 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. Additionally, under the new guidance, a financial asset, or a group of financial assets, measured at amortized cost basis is required to be presented at the net amount expected to be collected. The guidance also requires: • 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; • The entities to determine the allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis in a similar manner to other financial assets measured at amortized cost basis. The initial allowance for credit losses is required to be added to the purchase price; • Credit losses relating to available-for-sale debt securities to be recorded 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; and • 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 guidance is effective for the FHLBank for interim and annual periods beginning on January 1, 2020. Early application is permitted as of the interim and annual reporting periods beginning after December 15, 2018. The FHLBank does not plan on early adoption. The guidance should be applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In addition, entities are required to use a prospective transition approach for debt securities for which an other-than-temporary impairment (OTTI) charge had been recognized before the effective date; however, the FHLBank currently does not have any OTTI debt securities. The FHLBank does not expect this guidance to impact certain financial instruments, including advances, Agency and government-sponsored enterprise investments, securities purchased under agreements to resell, and other overnight investments due to the specific terms, issuer guarantees, and/or collateralized nature of the instruments that result in high credit quality holdings with no expected credit losses. Adoption of this guidance is not expected to have a material impact on the FHLBank's municipal securities, short-term investments and mortgage loans held for portfolio. Consequently, adoption of this guidance is not expected to have a material impact on the FHLBank’s financial condition, results of operations, or cash flows. Leases (ASU 2016-02). In February 2016, FASB issued amendments to lease accounting guidance. Under the new guidance, lessees are required to recognize a lease liability and a right-of-use asset for all leases in the statement of financial condition, which effectively removes a source of off-balance sheet financing for operating leases. A distinction remains between finance leases and operating leases, but the assets and liabilities arising from operating leases are now also required to be recognized in the statement of financial condition. Lessor accounting is largely unchanged. The amendments became effective for annual periods, and interim periods within those annual periods, beginning on January 1, 2019 for the FHLBank. The adoption of this guidance did not have a material effect on the FHLBank's financial condition, results of operations or cash flows. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans, Policy [Policy Text Block] | The FHLBank has established an allowance methodology for each of its portfolio segments: credit products (advances, letters of credit and other extensions of credit to borrowers); government mortgage loans held for portfolio; conventional mortgage loans held for portfolio; the direct financing lease receivable; term Federal funds sold; and term securities purchased under agreements to resell. Based on management's analyses of each portfolio segment, the FHLBank has only established an allowance for credit losses on its conventional mortgage loans held for portfolio. |
Derivatives, Offsetting Fair Value Amounts, Policy | The FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, the FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. The FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, the FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. |
Fair Value Transfer, Policy | The FHLBank 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Holdings [Line Items] | |
Trading Securities by Major Security Type | Trading securities by major security type as of September 30, 2019 and December 31, 2018 are summarized in Table 3.1 (in thousands): Table 3.1 Fair Value 09/30/2019 12/31/2018 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,533,842 $ 252,377 GSE obligations 1 468,747 1,000,495 Non-mortgage-backed securities 2,002,589 1,252,872 Mortgage-backed securities: U.S. obligation MBS 2 — 467 GSE MBS 3 898,986 897,774 Mortgage-backed securities 898,986 898,241 TOTAL $ 2,901,575 $ 2,151,113 1 Represents debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank (Farm Credit) and Federal Agricultural Mortgage Corporation (Farmer Mac). GSE securities are not guaranteed by the U.S. government. 2 Represents single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government. 3 Represents single-family and multi-family MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). |
Net Gains (Losses) on Trading Securities | Net gains (losses) on trading securities during the three and nine months ended September 30, 2019 and 2018 are shown in Table 3.2 (in thousands): Table 3.2 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Net gains (losses) on trading securities held as of September 30, 2019 $ 16,352 $ (10,375 ) $ 87,222 $ (47,833 ) Net gains (losses) on trading securities sold or matured prior to September 30, 2019 (166 ) (1,139 ) (438 ) (2,662 ) NET GAINS (LOSSES) ON TRADING SECURITIES $ 16,186 $ (11,514 ) $ 86,784 $ (50,495 ) |
Available-for-sale Securities [Member] | |
Investment Holdings [Line Items] | |
Available-for-sale Securities by Major Security Type | Available-for-sale securities by major security type as of September 30, 2019 are summarized in Table 3.3 (in thousands): Table 3.3 09/30/2019 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 3,516,938 $ — $ (6,210 ) $ 3,510,728 Non-mortgage-backed securities 3,516,938 — (6,210 ) 3,510,728 Mortgage-backed securities: GSE MBS 1 2,564,172 29,013 (4,984 ) 2,588,201 Mortgage-backed securities 2,564,172 29,013 (4,984 ) 2,588,201 TOTAL $ 6,081,110 $ 29,013 $ (11,194 ) $ 6,098,929 1 Represents fixed rate multi-family MBS issued by Fannie Mae . Available-for-sale securities by major security type as of December 31, 2018 are summarized in Table 3.4 (in thousands): Table 3.4 12/31/2018 Amortized Gross Gross Fair Value Mortgage-backed securities: GSE MBS 1 $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 TOTAL $ 1,706,572 $ 25,815 $ (6,747 ) $ 1,725,640 1 Represents fixed rate multi-family MBS issued by Fannie Mae . |
Securities in A Continuous Unrealized Loss Position | Table 3.5 summarizes the available-for-sale securities with unrealized losses as of September 30, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.5 09/30/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: U.S. Treasury obligations $ 3,510,728 $ (6,210 ) $ — $ — $ 3,510,728 $ (6,210 ) Non-mortgage-backed securities 3,510,728 (6,210 ) — — 3,510,728 (6,210 ) Mortgage-backed securities: GSE MBS 1 155,339 (344 ) 307,143 (4,640 ) 462,482 (4,984 ) Mortgage-backed securities 155,339 (344 ) 307,143 (4,640 ) 462,482 (4,984 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 3,666,067 $ (6,554 ) $ 307,143 $ (4,640 ) $ 3,973,210 $ (11,194 ) 1 Represents fixed rate multi-family MBS issued by Fannie Mae . Table 3.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.6 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities: GSE MBS 1 $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 570,042 $ (6,747 ) $ — $ — $ 570,042 $ (6,747 ) 1 Represents fixed rate multi-family MBS issued by Fannie Mae . |
Securities Classified By Contractual Maturity | The amortized cost and fair values of available-for-sale securities by contractual maturity as of September 30, 2019 and December 31, 2018 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 3.7 09/30/2019 12/31/2018 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 252,032 $ 251,643 $ — $ — Due after one year through five years 3,264,906 3,259,085 — — Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 3,516,938 3,510,728 — — Mortgage-backed securities 2,564,172 2,588,201 1,706,572 1,725,640 TOTAL $ 6,081,110 $ 6,098,929 $ 1,706,572 $ 1,725,640 |
Held-to-maturity Securities [Member] | |
Investment Holdings [Line Items] | |
Securities in A Continuous Unrealized Loss Position | Table 3.10 summarizes the held-to-maturity securities with unrealized losses as of September 30, 2019 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.10 09/30/2019 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ 55,666 $ (5 ) $ 26,757 $ (3,243 ) $ 82,423 $ (3,248 ) Non-mortgage-backed securities 55,666 (5 ) 26,757 (3,243 ) 82,423 (3,248 ) Mortgage-backed securities: U.S. obligation MBS 1 60,360 (217 ) 26,259 (116 ) 86,619 (333 ) GSE MBS 2 634,043 (2,581 ) 2,147,252 (13,860 ) 2,781,295 (16,441 ) Mortgage-backed securities 694,403 (2,798 ) 2,173,511 (13,976 ) 2,867,914 (16,774 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 750,069 $ (2,803 ) $ 2,200,268 $ (17,219 ) $ 2,950,337 $ (20,022 ) 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. Table 3.11 summarizes the held-to-maturity securities with unrealized losses as of December 31, 2018 (in thousands). The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. Table 3.11 12/31/2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Non-mortgage-backed securities: State or local housing agency obligations $ — $ — $ 26,520 $ (3,480 ) $ 26,520 $ (3,480 ) Non-mortgage-backed securities — — 26,520 (3,480 ) 26,520 (3,480 ) Mortgage-backed securities: U.S. obligation MBS 1 — — 30,702 (99 ) 30,702 (99 ) GSE MBS 2 1,655,048 (4,769 ) 1,567,728 (13,737 ) 3,222,776 (18,506 ) Mortgage-backed securities 1,655,048 (4,769 ) 1,598,430 (13,836 ) 3,253,478 (18,605 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 1,655,048 $ (4,769 ) $ 1,624,950 $ (17,316 ) $ 3,279,998 $ (22,085 ) 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. |
Securities Classified By Contractual Maturity | The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of September 30, 2019 and December 31, 2018 are shown in Table 3.12 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. Table 3.12 09/30/2019 12/31/2018 Amortized Cost Carrying Value Fair Value Amortized Cost Carrying Value Fair Value Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years — — — — — — Due after ten years 85,670 85,670 82,422 86,430 86,430 82,951 Non-mortgage-backed securities 85,670 85,670 82,422 86,430 86,430 82,951 Mortgage-backed securities 3,642,985 3,642,985 3,634,582 4,370,443 4,370,443 4,364,127 TOTAL $ 3,728,655 $ 3,728,655 $ 3,717,004 $ 4,456,873 $ 4,456,873 $ 4,447,078 |
Held-To-Maturity Securities by Major Security Type | Held-to-maturity securities by major security type as of September 30, 2019 are summarized in Table 3.8 (in thousands): Table 3.8 09/30/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 85,670 $ 85,670 $ — $ (3,248 ) $ 82,422 Non-mortgage-backed securities 85,670 85,670 — (3,248 ) 82,422 Mortgage-backed securities: U.S. obligation MBS 1 97,647 97,647 11 (333 ) 97,325 GSE MBS 2 3,545,338 3,545,338 8,360 (16,441 ) 3,537,257 Mortgage-backed securities 3,642,985 3,642,985 8,371 (16,774 ) 3,634,582 TOTAL $ 3,728,655 $ 3,728,655 $ 8,371 $ (20,022 ) $ 3,717,004 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. Held-to-maturity securities by major security type as of December 31, 2018 are summarized in Table 3.9 (in thousands): Table 3.9 12/31/2018 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 86,430 $ 86,430 $ 1 $ (3,480 ) $ 82,951 Non-mortgage-backed securities 86,430 86,430 1 (3,480 ) 82,951 Mortgage-backed securities: U.S. obligation MBS 1 109,866 109,866 125 (99 ) 109,892 GSE MBS 2 4,260,577 4,260,577 12,164 (18,506 ) 4,254,235 Mortgage-backed securities 4,370,443 4,370,443 12,289 (18,605 ) 4,364,127 TOTAL $ 4,456,873 $ 4,456,873 $ 12,290 $ (22,085 ) $ 4,447,078 1 Represents single-family MBS issued by Ginnie Mae. 2 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. |
Proceeds from sale and Gains and Losses on HTM Securities | Table 3.13 presents details of the sales (in thousands). Table 3.13 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Proceeds from sale of held-to-maturity securities $ — $ 67,566 $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold — (66,037 ) (9,488 ) (86,236 ) NET REALIZED GAINS (LOSSES) $ — $ 1,529 $ (46 ) $ 1,591 |
Advances (Tables)
Advances (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Advances [Abstract] | |
Advances Table | Table 4.1 presents advances summarized by redemption term as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 4.1 09/30/2019 12/31/2018 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 14,132,104 2.23 % $ 14,844,804 2.60 % Due after one year through two years 6,623,255 2.29 1,482,844 2.40 Due after two years through three years 1,378,995 2.45 1,442,333 2.53 Due after three years through four years 2,438,871 2.31 7,496,058 2.66 Due after four years through five years 3,150,589 2.35 816,702 2.68 Thereafter 2,797,752 2.46 2,695,008 2.58 Total par value 30,521,566 2.29 % 28,777,749 2.60 % Discounts (2,034 ) (3,413 ) Hedging adjustments 115,051 (44,223 ) TOTAL $ 30,634,583 $ 28,730,113 Table 4.2 presents advances summarized by redemption term or next call date (for callable advances) and by redemption term or next conversion date (for convertible advances) as of September 30, 2019 and December 31, 2018 (in thousands): Table 4.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 09/30/2019 12/31/2018 09/30/2019 12/31/2018 Due in one year or less $ 24,738,805 $ 23,343,939 $ 14,672,104 $ 15,133,204 Due after one year through two years 1,418,909 1,271,660 6,827,355 1,683,644 Due after two years through three years 776,452 1,021,189 1,647,995 1,629,233 Due after three years through four years 633,870 555,901 2,585,121 7,752,058 Due after four years through five years 724,005 598,282 3,223,089 954,452 Thereafter 2,229,525 1,986,778 1,565,902 1,625,158 TOTAL PAR VALUE $ 30,521,566 $ 28,777,749 $ 30,521,566 $ 28,777,749 Interest Rate Payment Terms : Table 4.3 details additional interest rate payment terms for advances as of September 30, 2019 and December 31, 2018 (in thousands): Table 4.3 Redemption Term 09/30/2019 12/31/2018 Fixed rate: Due in one year or less $ 1,805,217 $ 1,635,464 Due after one year 5,798,750 5,455,193 Total fixed rate 7,603,967 7,090,657 Variable rate: Due in one year or less 12,326,887 13,209,340 Due after one year 10,590,712 8,477,752 Total variable rate 22,917,599 21,687,092 TOTAL PAR VALUE $ 30,521,566 $ 28,777,749 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Mortgage Loans Held For Portfolio | Table 5.1 presents information as of September 30, 2019 and December 31, 2018 on mortgage loans held for portfolio (in thousands): Table 5.1 09/30/2019 12/31/2018 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,212,501 $ 1,179,087 Fixed rate, long-term, single-family mortgages 8,473,501 7,111,856 Total unpaid principal balance 9,686,002 8,290,943 Premiums 145,443 120,548 Discounts (2,541 ) (2,936 ) Deferred loan costs, net 198 223 Other deferred fees (42 ) (50 ) Hedging adjustments 5,608 2,546 Total before Allowance for Credit Losses on Mortgage Loans 9,834,668 8,411,274 Allowance for Credit Losses on Mortgage Loans (905 ) (812 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 9,833,763 $ 8,410,462 1 Medium-term defined as a term of 15 years or less at origination. Table 5.2 presents information as of September 30, 2019 and December 31, 2018 on the outstanding unpaid principal balance (UPB) of mortgage loans held for portfolio (in thousands): Table 5.2 09/30/2019 12/31/2018 Conventional loans $ 9,044,728 $ 7,619,498 Government-guaranteed or -insured loans 641,274 671,445 TOTAL UNPAID PRINCIPAL BALANCE $ 9,686,002 $ 8,290,943 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Rollforward of Allowance for Credit Losses on Mortgage Loans | Table 6.1 presents a roll-forward of the allowance for credit losses for the three and nine months ended September 30, 2019 and 2018 (in thousands): Table 6.1 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Balance, beginning of the period $ 858 $ 1,029 $ 812 $ 1,208 Net (charge-offs) recoveries (346 ) 18 (416 ) (207 ) Provision (reversal) for credit losses 393 (391 ) 509 (345 ) Balance, end of the period $ 905 $ 656 $ 905 $ 656 Table 6.2 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of September 30, 2019 (in thousands). The recorded investment in a financing receivable is the UPB, adjusted for accrued interest, net deferred loan fees or costs, unamortized premiums or discounts, fair value hedging adjustments and direct write-downs. The recorded investment is not net of any valuation allowance. Table 6.2 09/30/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Allowance for credit losses: Individually evaluated for impairment $ — $ — $ — $ — $ — Collectively evaluated for impairment 905 — — — 905 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 905 $ — $ — $ — $ 905 Recorded investment: Individually evaluated for impairment $ 11,285 $ — $ 30,690,019 $ 9,633 $ 30,710,937 Collectively evaluated for impairment 9,218,725 653,184 — — 9,871,909 TOTAL RECORDED INVESTMENT $ 9,230,010 $ 653,184 $ 30,690,019 $ 9,633 $ 40,582,846 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. Table 6.3 presents the allowance for credit losses and the recorded investment as well as the method used to evaluate impairment relating to all portfolio segments regardless of whether or not an estimated credit loss has been recorded as of September 30, 2018 (in thousands): Table 6.3 09/30/2018 Conventional Government Credit 1 Direct Total Allowance for credit losses: Individually evaluated for impairment $ 37 $ — $ — $ — $ 37 Collectively evaluated for impairment 619 — — — 619 TOTAL ALLOWANCE FOR CREDIT LOSSES $ 656 $ — $ — $ — $ 656 Recorded investment: Individually evaluated for impairment $ 9,904 $ — $ 28,514,148 $ 12,718 $ 28,536,770 Collectively evaluated for impairment 7,450,722 693,567 — — 8,144,289 TOTAL RECORDED INVESTMENT $ 7,460,626 $ 693,567 $ 28,514,148 $ 12,718 $ 36,681,059 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Recorded Investment in Delinquent Mortgage Loans | Table 6.4 summarizes the delinquency aging and key credit quality indicators for all of the FHLBank’s portfolio segments as of September 30, 2019 (dollar amounts in thousands): Table 6.4 09/30/2019 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 48,259 $ 14,885 $ — $ — $ 63,144 Past due 60-89 days delinquent 7,182 4,226 — — 11,408 Past due 90 days or more delinquent 10,083 8,427 — — 18,510 Total past due 65,524 27,538 — — 93,062 Total current loans 9,164,486 625,646 30,690,019 9,633 40,489,784 Total recorded investment $ 9,230,010 $ 653,184 $ 30,690,019 $ 9,633 $ 40,582,846 Other delinquency statistics: In process of foreclosure, included above 2 $ 3,505 $ 2,676 $ — $ — $ 6,181 Serious delinquency rate 3 0.1 % 1.3 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 8,427 $ — $ — $ 8,427 Loans on non-accrual status 4 $ 13,824 $ — $ — $ — $ 13,824 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,279,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Table 6.5 summarizes the key credit quality indicators for all of the FHLBank’s portfolio segments as of December 31, 2018 (dollar amounts in thousands): Table 6.5 12/31/2018 Conventional Loans Government Loans Credit Products 1 Direct Financing Lease Receivable Total Recorded investment: Past due 30-59 days delinquent $ 34,020 $ 14,790 $ — $ — $ 48,810 Past due 60-89 days delinquent 6,750 6,114 — — 12,864 Past due 90 days or more delinquent 8,169 7,898 — — 16,067 Total past due 48,939 28,802 — — 77,741 Total current loans 7,720,640 655,054 28,777,274 11,966 37,164,934 Total recorded investment $ 7,769,579 $ 683,856 $ 28,777,274 $ 11,966 $ 37,242,675 Other delinquency statistics: In process of foreclosure, included above 2 $ 2,922 $ 2,398 $ — $ — $ 5,320 Serious delinquency rate 3 0.1 % 1.2 % — % — % — % Past due 90 days or more and still accruing interest $ — $ 7,898 $ — $ — $ 7,898 Loans on non-accrual status 4 $ 11,301 $ — $ — $ — $ 11,301 1 The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. 3 Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. 4 Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value of Derivative Instruments | Table 7.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of September 30, 2019 and December 31, 2018 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 7.1 09/30/2019 12/31/2018 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 14,098,263 $ 20,184 $ 126,203 $ 8,345,925 $ 73,969 $ 24,177 Total derivatives designated as hedging relationships 14,098,263 20,184 126,203 8,345,925 73,969 24,177 Derivatives not designated as hedging instruments: Interest rate swaps 3,637,306 848 38,832 2,151,920 12,907 17,322 Interest rate caps/floors 1,248,200 170 — 1,373,200 1,044 — Mortgage delivery commitments 375,772 206 658 101,551 552 3 Consolidated obligation discount note commitments — — — 525,000 — — Total derivatives not designated as hedging instruments 5,261,278 1,224 39,490 4,151,671 14,503 17,325 TOTAL $ 19,359,541 21,408 165,693 $ 12,497,596 88,472 41,502 Netting adjustments and cash collateral 1 115,642 (164,703 ) (52,377 ) (33,618 ) DERIVATIVE ASSETS AND LIABILITIES $ 137,050 $ 990 $ 36,095 $ 7,884 1 Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018 , respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018 , respectively. |
Net Gains or Losses on Derivatives and Hedging Activities | For the three months ended September 30, 2019 and 2018 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 7.2 (in thousands): Table 7.2 Three Months Ended 09/30/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 186,431 $ 47,811 $ 133,680 $ 185,096 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (39,873 ) $ (61,468 ) $ (4 ) $ 3,915 Hedged items 2 43,355 75,743 3 (5,061 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 3,482 $ 14,275 $ (1 ) $ (1,146 ) 09/30/2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 4,385 $ 510 $ (2,280 ) $ 28,615 Hedged items 2 (1,022 ) — — (28,753 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 3,363 $ 510 $ (2,280 ) $ (138 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. For the nine months ended September 30, 2019 and 2018 , the FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the FHLBank’s net interest income and net gains (losses) on derivatives and hedging activities, if applicable, as presented in Table 7.3 (in thousands): Table 7.3 Nine Months Ended 09/30/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 563,602 $ 78,694 $ 433,473 $ 519,967 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (144,016 ) $ (205,705 ) $ 21 $ 30,968 Hedged items 2 159,254 206,340 (12 ) (39,427 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 15,238 $ 635 $ 9 $ (8,459 ) 09/30/2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 4,423 $ (752 ) $ (2,700 ) $ 122,399 Hedged items 2 (3,283 ) — — (124,369 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 1,140 $ (752 ) $ (2,700 ) $ (1,970 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. Table 7.5 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 7.5 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Derivatives designated as hedging instruments: Interest rate swaps $ (138 ) $ (1,970 ) Total net gains (losses) related to fair value hedge ineffectiveness (138 ) (1,970 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (19,566 ) 8,256 $ (80,593 ) 38,087 Interest rate caps/floors (494 ) (184 ) (874 ) 378 Net interest settlements (691 ) (1,192 ) (1,238 ) (4,592 ) Mortgage delivery commitments 365 (710 ) 3,836 (2,242 ) Consolidated obligation discount note commitments — — (70 ) — Total net gains (losses) related to derivatives not designated as hedging instruments (20,386 ) 6,170 (78,939 ) 31,631 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (20,386 ) $ 6,032 $ (78,939 ) $ 29,661 |
Cumulative Basis Adjustments for Fair Value Hedges | Table 7.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of September 30, 2019 (in thousands): Table 7.4 09/30/2019 Line Item in Statement of Condition of Hedged Item Carrying Value of Hedged Asset/(Liability) 1 Basis Adjustments for Active Hedging Relationships 2 Basis Adjustments for Discontinued Hedging Relationships 2 Cumulative Amount of Fair Value Hedging Basis Adjustments 2 Advances $ 4,672,632 $ 113,443 $ 1,608 $ 115,051 Available-for-sale securities 6,081,110 145,653 — 145,653 Consolidated obligation bonds (3,734,212 ) (32,913 ) — (32,913 ) 1 Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). 2 Included in amortized cost of the hedged asset/liability. |
Net Gains or Losses on Derivatives Not Designated as Hedging Instruments | Table 7.5 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). For fair value hedging relationships, the portion of net gains (losses) representing hedge ineffectiveness are recorded in non-interest income for periods prior to January 1, 2019. Table 7.5 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Derivatives designated as hedging instruments: Interest rate swaps $ (138 ) $ (1,970 ) Total net gains (losses) related to fair value hedge ineffectiveness (138 ) (1,970 ) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (19,566 ) 8,256 $ (80,593 ) 38,087 Interest rate caps/floors (494 ) (184 ) (874 ) 378 Net interest settlements (691 ) (1,192 ) (1,238 ) (4,592 ) Mortgage delivery commitments 365 (710 ) 3,836 (2,242 ) Consolidated obligation discount note commitments — — (70 ) — Total net gains (losses) related to derivatives not designated as hedging instruments (20,386 ) 6,170 (78,939 ) 31,631 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (20,386 ) $ 6,032 $ (78,939 ) $ 29,661 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposits | Table 8.1 details the types of deposits held by the FHLBank as of September 30, 2019 and December 31, 2018 (in thousands): Table 8.1 09/30/2019 12/31/2018 Interest-bearing: Demand $ 302,491 $ 265,021 Overnight 304,000 158,300 Total interest-bearing 606,491 423,321 Non-interest-bearing: Other 149,885 50,499 Total non-interest-bearing 149,885 50,499 TOTAL DEPOSITS $ 756,376 $ 473,820 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Consolidated Bonds Obligations Outstanding By Maturity | Table 9.2 summarizes the FHLBank’s participation in consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of September 30, 2019 and December 31, 2018 (in thousands): Table 9.2 Year of Maturity or Next Call Date 09/30/2019 12/31/2018 Due in one year or less $ 23,908,200 $ 16,971,500 Due after one year through two years 6,520,600 5,270,750 Due after two years through three years 618,900 655,100 Due after three years through four years 590,200 319,750 Due after four years through five years 345,100 275,150 Thereafter 422,600 481,600 TOTAL PAR VALUE $ 32,405,600 $ 23,973,850 Table 9.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 9.1 09/30/2019 12/31/2018 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 15,086,200 2.10 % $ 8,960,500 2.17 % Due after one year through two years 7,990,600 2.12 5,625,750 2.28 Due after two years through three years 1,373,900 2.24 2,285,100 2.11 Due after three years through four years 1,351,700 2.33 1,134,750 2.21 Due after four years through five years 1,131,600 2.34 1,087,900 2.58 Thereafter 5,471,600 2.84 4,879,850 3.01 Total par value 32,405,600 2.26 % 23,973,850 2.38 % Premiums 21,331 15,591 Discounts (3,573 ) (4,088 ) Concession fees (14,386 ) (12,445 ) Hedging adjustments 32,913 (6,514 ) TOTAL $ 32,441,885 $ 23,966,394 |
Consolidated Bonds by Interest-Rate Payment Type | Table 9.3 summarizes interest rate payment terms for consolidated obligation bonds as of September 30, 2019 and December 31, 2018 (in thousands): Table 9.3 09/30/2019 12/31/2018 Simple variable rate $ 16,287,000 $ 10,095,000 Fixed rate 15,288,600 12,858,850 Step 340,000 470,000 Variable rate with cap 260,000 20,000 Fixed to variable rate 220,000 515,000 Range 10,000 15,000 TOTAL PAR VALUE $ 32,405,600 $ 23,973,850 |
Consolidated Discount Notes Outstanding | Table 9.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 9.4 Book Value Par Value Weighted Average Interest Rate 1 September 30, 2019 $ 21,044,232 $ 21,084,315 2.00 % December 31, 2018 $ 20,608,332 $ 20,649,098 2.35 % 1 Represents yield to maturity excluding concession fees. |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets | Tables 10.1 and 10.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of September 30, 2019 and December 31, 2018 (in thousands): Table 10.1 09/30/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 18,927 $ (17,117 ) $ 1,810 $ (206 ) $ 1,604 Cleared derivatives 2,481 132,759 135,240 — 135,240 Total derivative assets 21,408 115,642 137,050 (206 ) 136,844 Securities purchased under agreements to resell 2,137,374 — 2,137,374 (2,137,374 ) — TOTAL $ 2,158,782 $ 115,642 $ 2,274,424 $ (2,137,580 ) $ 136,844 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 10.2 12/31/2018 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Condition Net Amounts of Assets Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 88,296 $ (83,378 ) $ 4,918 $ (1,618 ) $ 3,300 Cleared derivatives 176 31,001 31,177 — 31,177 Total derivative assets 88,472 (52,377 ) 36,095 (1,618 ) 34,477 Securities purchased under agreements to resell 1,251,096 — 1,251,096 (1,251,096 ) — TOTAL $ 1,339,568 $ (52,377 ) $ 1,287,191 $ (1,252,714 ) $ 34,477 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Schedule of Offsetting Liabilities | Tables 10.3 and 10.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of September 30, 2019 and December 31, 2018 (in thousands): Table 10.3 09/30/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 165,301 $ (164,311 ) $ 990 $ (658 ) $ 332 Cleared derivatives 392 (392 ) — — — Total derivative liabilities 165,693 (164,703 ) 990 (658 ) 332 TOTAL $ 165,693 $ (164,703 ) $ 990 $ (658 ) $ 332 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). Table 10.4 12/31/2018 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of Liabilities Presented in the Statement of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 36,363 $ (28,479 ) $ 7,884 $ (3 ) $ 7,881 Cleared derivatives 5,139 (5,139 ) — — — Total derivative liabilities 41,502 (33,618 ) 7,884 (3 ) 7,881 TOTAL $ 41,502 $ (33,618 ) $ 7,884 $ (3 ) $ 7,881 1 Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital (Tables)
Capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Regulatory Capital Requirements | Table 11.1 illustrates that the FHLBank was in compliance with its regulatory capital requirements as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands): Table 11.1 09/30/2019 12/31/2018 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 382,468 $ 2,300,065 $ 387,729 $ 2,193,001 Total regulatory capital-to-asset ratio 4.0 % 4.6 % 4.0 % 5.1 % Total regulatory capital $ 2,285,245 $ 2,646,115 $ 1,908,610 $ 2,442,156 Leverage capital ratio 5.0 % 6.6 % 5.0 % 7.4 % Leverage capital $ 2,856,557 $ 3,796,147 $ 2,385,763 $ 3,538,656 |
Mandatorily Redeemable Capital Stock By Contractual Year Of Repurchase | Table 11.2 presents a roll-forward of mandatorily redeemable capital stock for the three and nine months ended September 30, 2019 and 2018 (in thousands): Table 11.2 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Balance, beginning of period $ 2,750 $ 4,578 $ 3,597 $ 5,312 Capital stock subject to mandatory redemption reclassified from equity during the period 159,775 215,107 218,411 893,545 Redemption or repurchase of mandatorily redeemable capital stock during the period (160,078 ) (215,206 ) (219,642 ) (894,494 ) Stock dividend classified as mandatorily redeemable capital stock during the period 30 57 111 173 Balance, end of period $ 2,477 $ 4,536 $ 2,477 $ 4,536 Table 11.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of September 30, 2019 and December 31, 2018 (in thousands). The year of redemption in Table 11.3 is the end of the redemption period in accordance with the FHLBank’s capital plan. The FHLBank is not required to redeem or repurchase membership stock until six months (for Class A Common Stock) or five years (for Class B Common Stock) after the FHLBank receives notice for withdrawal from the member. Additionally, the FHLBank is not required to redeem or repurchase activity-based stock until any activity-based stock becomes excess stock as a result of an activity no longer remaining outstanding. However, the FHLBank intends to repurchase the excess activity-based stock of non-members to the extent that it can do so and still meet its regulatory capital requirements. Table 11.3 Contractual Year of Repurchase 09/30/2019 12/31/2018 Year 1 $ — $ — Year 2 1 — Year 3 873 1 Year 4 — 1,798 Year 5 — — Past contractual redemption date due to remaining activity 1 1,603 1,798 TOTAL $ 2,477 $ 3,597 1 Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income Or Loss | Table 12.1 summarizes the changes in AOCI for the three months ended September 30, 2019 and 2018 (in thousands): Table 12.1 Three Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Net Non-credit Portion of OTTI Gains (Losses) on Defined Benefit Pension Plan Total AOCI Balance at June 30, 2018 $ 29,628 $ (3,655 ) $ (1,373 ) $ 24,600 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 3,694 3,694 Accretion of non-credit loss 30 30 Non-credit losses included in basis of securities sold 3,625 3,625 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 5 5 Net current period other comprehensive income (loss) 3,694 3,655 5 7,354 Balance at September 30, 2018 $ 33,322 $ — $ (1,368 ) $ 31,954 Balance at June 30, 2019 $ 35,143 $ — $ (3,230 ) $ 31,913 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (17,324 ) (17,324 ) Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 95 95 Net current period other comprehensive income (loss) (17,324 ) — 95 (17,229 ) Balance at September 30, 2019 $ 17,819 $ — $ (3,135 ) $ 14,684 1 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). Table 12.2 summarizes the changes in AOCI for the nine months ended September 30, 2019 and 2018 (in thousands): Table 12.2 Nine Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Net Non-credit Portion of OTTI Gains (Losses) on Held-to-maturity Securities Defined Benefit Pension Plan Total AOCI Balance at December 31, 2017 $ 31,206 $ (4,163 ) $ (1,385 ) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 2,116 2,116 Accretion of non-credit loss 513 513 Non-credit losses included in basis of securities sold 3,625 3,625 Reclassifications from other comprehensive income (loss) to net income: Non-credit OTTI to credit OTTI 1 25 25 Amortization of net losses - defined benefit pension plan 2 17 17 Net current period other comprehensive income (loss) 2,116 4,163 17 6,296 Balance at September 30, 2018 $ 33,322 $ — $ (1,368 ) $ 31,954 Balance at December 31, 2018 $ 19,068 $ — $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (1,249 ) (1,249 ) Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 240 240 Net current period other comprehensive income (loss) (1,249 ) — 240 (1,009 ) Balance at September 30, 2019 $ 17,819 $ — $ (3,135 ) $ 14,684 1 Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Summary | The carrying value, fair value and fair value hierarchy of the FHLBank’s financial assets and liabilities as of September 30, 2019 and December 31, 2018 are summarized in Tables 13.1 and 13.2 (in thousands): Table 13.1 09/30/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 24,639 $ 24,639 $ 24,639 $ — $ — $ — Interest-bearing deposits 481,989 481,989 — 481,989 — — Securities purchased under agreements to resell 2,137,374 2,137,374 — 2,137,374 — — Federal funds sold 900,000 900,000 — 900,000 — — Trading securities 2,901,575 2,901,575 — 2,901,575 — — Available-for-sale securities 6,098,929 6,098,929 — 6,098,929 — — Held-to-maturity securities 3,728,655 3,717,004 — 3,634,582 82,422 — Advances 30,634,583 30,680,520 — 30,680,520 — — Mortgage loans held for portfolio, net of allowance 9,833,763 10,149,450 — 10,147,407 2,043 — Accrued interest receivable 150,823 150,823 — 150,823 — — Derivative assets 137,050 137,050 — 21,408 — 115,642 Liabilities: Deposits 756,376 756,376 — 756,376 — — Consolidated obligation discount notes 21,044,232 21,045,884 — 21,045,884 — — Consolidated obligation bonds 32,441,885 32,528,060 — 32,528,060 — — Mandatorily redeemable capital stock 2,477 2,477 2,477 — — — Accrued interest payable 116,478 116,478 — 116,478 — — Derivative liabilities 990 990 — 165,693 — (164,703 ) Other Asset (Liability): Industrial revenue bonds 35,000 35,277 — 35,277 — — Financing obligation payable (35,000 ) (35,277 ) — (35,277 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty . Table 13.2 12/31/2018 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 15,060 $ 15,060 $ 15,060 $ — $ — $ — Interest-bearing deposits 670,660 670,660 — 670,660 — — Securities purchased under agreements to resell 1,251,096 1,251,096 — 1,251,096 — — Federal funds sold 50,000 50,000 — 50,000 — — Trading securities 2,151,113 2,151,113 — 2,151,113 — — Available-for-sale securities 1,725,640 1,725,640 — 1,725,640 — — Held-to-maturity securities 4,456,873 4,447,078 — 4,364,127 82,951 — Advances 28,730,113 28,728,201 — 28,728,201 — — Mortgage loans held for portfolio, net of allowance 8,410,462 8,388,885 — 8,387,425 1,460 — Accrued interest receivable 109,366 109,366 — 109,366 — — Derivative assets 36,095 36,095 — 88,472 — (52,377 ) Liabilities: Deposits 473,820 473,820 — 473,820 — — Consolidated obligation discount notes 20,608,332 20,606,743 — 20,606,743 — — Consolidated obligation bonds 23,966,394 23,727,705 — 23,727,705 — — Mandatorily redeemable capital stock 3,597 3,597 3,597 — — — Accrued interest payable 87,903 87,903 — 87,903 — — Derivative liabilities 7,884 7,884 — 41,502 — (33,618 ) Other Asset (Liability): Industrial revenue bonds 35,000 32,154 — 32,154 — — Financing obligation payable (35,000 ) (32,154 ) — (32,154 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Hierarchy Level for Financial Assets and Liabilities - Recurring and Nonrecurring | Tables 13.3 and 13.4 present, for each hierarchy level, the FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended September 30, 2019 and December 31, 2018 (in thousands). Table 13.3 09/30/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,533,842 $ — $ 1,533,842 $ — $ — GSE obligations 2 468,747 — 468,747 — — GSE MBS 3 898,986 — 898,986 — — Total trading securities 2,901,575 — 2,901,575 — — Available-for-sale securities: U.S. Treasury obligations 3,510,728 — 3,510,728 — — GSE MBS 4 2,588,201 — 2,588,201 — — Total available-for-sale securities 6,098,929 — 6,098,929 — — Derivative assets: Interest-rate related 136,844 — 21,202 — 115,642 Mortgage delivery commitments 206 — 206 — — Total derivative assets 137,050 — 21,408 — 115,642 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 9,137,554 $ — $ 9,021,912 $ — $ 115,642 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 332 $ — $ 165,035 $ — $ (164,703 ) Mortgage delivery commitments 658 — 658 — — Total derivative liabilities 990 — 165,693 — (164,703 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 990 $ — $ 165,693 $ — $ (164,703 ) Nonrecurring fair value measurements - Assets 5 : Impaired mortgage loans $ 2,056 $ — $ — $ 2,056 $ — Real estate owned 22 — — 22 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,078 $ — $ — $ 2,078 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Represents debentures issued by other FHLBanks, Fannie Mae, Farm Credit and Farmer Mac. 3 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. 4 Represents multi-family MBS issued by Fannie Mae. 5 Includes assets adjusted to fair value during the nine months ended September 30, 2019 and still outstanding as of September 30, 2019 . Table 13.4 12/31/2018 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 252,377 $ — $ 252,377 $ — $ — GSE obligations 2 1,000,495 — 1,000,495 — — U.S. obligation MBS 3 467 — 467 — — GSE MBS 4 897,774 — 897,774 — — Total trading securities 2,151,113 — 2,151,113 — — Available-for-sale securities: GSE MBS 5 1,725,640 — 1,725,640 — — Total available-for-sale securities 1,725,640 — 1,725,640 — — Derivative assets: Interest-rate related 35,543 — 87,920 — (52,377 ) Mortgage delivery commitments 552 — 552 — — Total derivative assets 36,095 — 88,472 — (52,377 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 3,912,848 $ — $ 3,965,225 $ — $ (52,377 ) Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 7,881 $ — $ 41,499 $ — $ (33,618 ) Mortgage delivery commitments 3 — 3 — — Total derivative liabilities 7,884 — 41,502 — (33,618 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 7,884 $ — $ 41,502 $ — $ (33,618 ) Nonrecurring fair value measurements - Assets 6 : Impaired mortgage loans 1,463 — — 1,463 — Real estate owned 1,028 — — 1,028 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,491 $ — $ — $ 2,491 $ — 1 Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. 2 Represents debentures issued by other FHLBanks, Fannie Mae, Farm Credit and Farmer Mac. 3 Represents single-family MBS issued by Ginnie Mae. 4 Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. 5 Represents multi-family MBS issued by Fannie Mae. 6 Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018 . |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Commitments | As of September 30, 2019 and December 31, 2018 , off-balance sheet commitments are presented in Table 14.1 (in thousands): Table 14.1 09/30/2019 12/31/2018 Notional Amount Expire Within One Year Expire After One Year Total Expire Within One Year Expire After One Year Total Standby letters of credit outstanding $ 3,538,145 $ 7,290 $ 3,545,435 $ 3,824,497 $ 37,933 $ 3,862,430 Advance commitments outstanding 77,115 31,420 108,535 116,475 43,782 160,257 Commitments for standby bond purchases 184,945 580,884 765,829 69,277 686,602 755,879 Commitments to fund or purchase mortgage loans 375,772 — 375,772 101,551 — 101,551 Commitments to issue consolidated bonds, at par 81,000 — 81,000 — — — Commitments to issue consolidated discount notes, at par — — — 1,825,000 — 1,825,000 |
Transactions With Stockholders
Transactions With Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions, by Balance Sheet Grouping | Tables 15.1 and 15.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2019 and December 31, 2018 (dollar amounts in thousands). None of the officers or directors of these members currently serve on the FHLBank’s board of directors. Table 15.1 09/30/2019 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 99,450 28.7 % $ 312,727 23.6 % $ 412,177 24.6 % MidFirst Bank OK 500 0.1 368,500 27.8 369,000 22.1 TOTAL $ 99,950 28.8 % $ 681,227 51.4 % $ 781,177 46.7 % Table 15.2 12/31/2018 Member Name State Total Class A Stock Par Value Percent of Total Class A Total Class B Stock Par Value Percent of Total Class B Total Capital Stock Par Value Percent of Total Capital Stock BOKF, N.A. OK $ 24,006 9.6 % $ 274,000 21.4 % $ 298,006 19.5 % MidFirst Bank OK 500 0.2 294,700 23.0 295,200 19.3 TOTAL $ 24,506 9.8 % $ 568,700 44.4 % $ 593,206 38.8 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of September 30, 2019 and December 31, 2018 are summarized in Table 15.3 (dollar amounts in thousands). Table 15.3 09/30/2019 12/31/2018 09/30/2019 12/31/2018 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total BOKF, N.A. $ 6,800,000 22.3 % $ 6,100,000 21.2 % $ 29,785 4.0 % $ 29,288 6.2 % MidFirst Bank 8,200,000 26.9 6,560,000 22.8 850 0.1 331 0.1 TOTAL $ 15,000,000 49.2 % $ 12,660,000 44.0 % $ 30,635 4.1 % $ 29,619 6.3 % |
Related Party Transactions, by Balance Sheet Grouping - Directors' | Table 15.4 presents information as of September 30, 2019 and December 31, 2018 for members that had an officer or director serving on the FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 15.4 09/30/2019 12/31/2018 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 180,964 0.6 % $ 157,012 0.5 % Deposits $ 29,295 3.9 % $ 9,679 2.1 % Class A Common Stock $ 6,344 1.8 % $ 4,179 1.7 % Class B Common Stock 5,658 0.4 4,924 0.4 TOTAL CAPITAL STOCK $ 12,002 0.7 % $ 9,103 0.6 % |
Schedule Of Related Party Transactions, Mortgage Loans Disclosure | Table 15.5 presents mortgage loans acquired during the three and nine months ended September 30, 2019 and 2018 for members that had an officer or director serving on the FHLBank’s board of directors in 2019 or 2018 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on the FHLBank’s board of directors. Table 15.5 Three Months Ended Nine Months Ended 09/30/2019 09/30/2018 09/30/2019 09/30/2018 Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 61,362 5.4 % $ 24,676 4.3 % $ 128,251 5.3 % $ 80,047 5.2 % |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Available-for-sale securities | $ 47,811 | $ 12,563 | $ 78,694 | $ 32,670 |
Other comprehensive income (loss) | $ (17,229) | $ 7,354 | (1,009) | $ 6,296 |
Out-of-Period Adjustment [Member] | ||||
Available-for-sale securities | 14,336 | |||
Other comprehensive income (loss) | (14,336) | |||
QTD March 31, 2019 [Member] | Out-of-Period Adjustment [Member] | ||||
Available-for-sale securities | 2,545 | |||
Other comprehensive income (loss) | (2,545) | |||
QTD June 30, 2019 [Member] | Out-of-Period Adjustment [Member] | ||||
Available-for-sale securities | 11,791 | |||
Other comprehensive income (loss) | $ (11,791) |
Investment Securities Investmen
Investment Securities Investment Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | $ 2,901,575 | $ 2,151,113 | |
U.S. Treasury obligations [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | 1,533,842 | 252,377 | |
GSE obligations [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | [1] | 468,747 | 1,000,495 |
Non-mortgage-backed securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | 2,002,589 | 1,252,872 | |
U.S. obligations MBS [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | [2] | 0 | 467 |
GSE MBS [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | [3] | 898,986 | 897,774 |
Mortgage-backed securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Trading securities | $ 898,986 | $ 898,241 | |
[1] | Represents debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank (Farm Credit) and Federal Agricultural Mortgage Corporation (Farmer Mac). GSE securities are not guaranteed by the U.S. government. | ||
[2] | Represents single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government. | ||
[3] | Represents single-family and multi-family MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). |
Investment Securities (Net Gain
Investment Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains (losses) on trading securities held as of current period end | $ 16,352 | $ (10,375) | $ 87,222 | $ (47,833) |
Net gains (losses) on trading securities sold or matured prior to current period end | (166) | (1,139) | (438) | (2,662) |
NET GAINS (LOSSES) ON TRADING SECURITIES | $ 16,186 | $ (11,514) | $ 86,784 | $ (50,495) |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 6,081,110 | $ 1,706,572 | |
Gross Unrecognized Gains | 29,013 | 25,815 | |
Gross Unrecognized Losses | (11,194) | (6,747) | |
Fair Value | 6,098,929 | 1,725,640 | |
U.S. Treasury obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,516,938 | ||
Gross Unrecognized Gains | 0 | ||
Gross Unrecognized Losses | (6,210) | ||
Fair Value | 3,510,728 | ||
Non-mortgage-backed securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,516,938 | 0 | |
Gross Unrecognized Gains | 0 | ||
Gross Unrecognized Losses | (6,210) | ||
Fair Value | 3,510,728 | 0 | |
Mortgage-backed securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,564,172 | ||
Gross Unrecognized Gains | 29,013 | ||
Gross Unrecognized Losses | (4,984) | ||
Fair Value | 2,588,201 | ||
Fixed rate [Member] | GSE MBS [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | [1] | 2,564,172 | 1,706,572 |
Gross Unrecognized Gains | [1] | 29,013 | 25,815 |
Gross Unrecognized Losses | [1] | (4,984) | (6,747) |
Fair Value | [1] | $ 2,588,201 | $ 1,725,640 |
[1] | Represents fixed rate multi-family MBS issued by Fannie Mae. |
Investment Securities (Availa_2
Investment Securities (Available-For-Sale Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | $ 3,666,067 | $ 570,042 | |
Less than 12 Months, Unrealized Losses | (6,554) | (6,747) | |
12 Months or More, Fair Value | 307,143 | 0 | |
12 Months or More, Unrealized Losses | (4,640) | 0 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 3,973,210 | 570,042 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (11,194) | (6,747) | |
U.S. Treasury obligations [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 3,510,728 | ||
Less than 12 Months, Unrealized Losses | (6,210) | ||
12 Months or More, Fair Value | 0 | ||
12 Months or More, Unrealized Losses | 0 | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 3,510,728 | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (6,210) | ||
Non-mortgage-backed securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 3,510,728 | ||
Less than 12 Months, Unrealized Losses | (6,210) | ||
12 Months or More, Fair Value | 0 | ||
12 Months or More, Unrealized Losses | 0 | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 3,510,728 | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (6,210) | ||
Mortgage-backed securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | 155,339 | ||
Less than 12 Months, Unrealized Losses | (344) | ||
12 Months or More, Fair Value | 307,143 | ||
12 Months or More, Unrealized Losses | (4,640) | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 462,482 | ||
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (4,984) | ||
Fixed rate [Member] | GSE MBS [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 Months, Fair Value | [1] | 155,339 | 570,042 |
Less than 12 Months, Unrealized Losses | [1] | (344) | (6,747) |
12 Months or More, Fair Value | [1] | 307,143 | 0 |
12 Months or More, Unrealized Losses | [1] | (4,640) | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | [1] | 462,482 | 570,042 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | [1] | $ (4,984) | $ (6,747) |
[1] | Represents fixed rate multi-family MBS issued by Fannie Mae. |
Investment Securities (Availa_3
Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | $ 6,081,110 | $ 1,706,572 |
Fair Value | 6,098,929 | 1,725,640 |
Non-mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | 252,032 | 0 |
Due after one year through five years, Amortized Cost | 3,264,906 | 0 |
Due after five years through ten years, Amortized Cost | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Amortized Cost | 3,516,938 | 0 |
Due in one year or less, Fair Value | 251,643 | 0 |
Due after one year through five years, Fair Value | 3,259,085 | 0 |
Due after five years though ten years, Fair Value | 0 | 0 |
Due after ten years, Fair Value | 0 | 0 |
Fair Value | 3,510,728 | 0 |
Mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | 2,564,172 | |
Mortgage-backed securities, Amortized Cost | 2,564,172 | 1,706,572 |
Mortgage-backed securities, Fair Value | 2,588,201 | $ 1,725,640 |
Fair Value | $ 2,588,201 |
Investment Securities (Held-To-
Investment Securities (Held-To-Maturity Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 3,728,655 | $ 4,456,873 | |
Carrying Value | [1] | 3,728,655 | 4,456,873 |
Gross Unrecognized Gains | 8,371 | 12,290 | |
Gross Unrecognized Losses | (20,022) | (22,085) | |
Held-to-maturity, Fair Value | 3,717,004 | 4,447,078 | |
State or local housing agency obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 85,670 | 86,430 | |
Carrying Value | 85,670 | 86,430 | |
Gross Unrecognized Gains | 0 | 1 | |
Gross Unrecognized Losses | (3,248) | (3,480) | |
Held-to-maturity, Fair Value | 82,422 | 82,951 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 85,670 | 86,430 | |
Carrying Value | 85,670 | 86,430 | |
Gross Unrecognized Gains | 0 | 1 | |
Gross Unrecognized Losses | (3,248) | (3,480) | |
Held-to-maturity, Fair Value | 82,422 | 82,951 | |
U.S. obligations MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [2] | 97,647 | 109,866 |
Carrying Value | [2] | 97,647 | 109,866 |
Gross Unrecognized Gains | [2] | 11 | 125 |
Gross Unrecognized Losses | [2] | (333) | (99) |
Held-to-maturity, Fair Value | [2] | 97,325 | 109,892 |
GSE MBS [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [3] | 3,545,338 | 4,260,577 |
Carrying Value | [3] | 3,545,338 | 4,260,577 |
Gross Unrecognized Gains | [3] | 8,360 | 12,164 |
Gross Unrecognized Losses | [3] | (16,441) | (18,506) |
Held-to-maturity, Fair Value | [3] | 3,537,257 | 4,254,235 |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 3,642,985 | 4,370,443 | |
Carrying Value | 3,642,985 | 4,370,443 | |
Gross Unrecognized Gains | 8,371 | 12,289 | |
Gross Unrecognized Losses | (16,774) | (18,605) | |
Held-to-maturity, Fair Value | $ 3,634,582 | $ 4,364,127 | |
[1] | Fair value: $3,717,004 and $4,447,078 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Represents single-family MBS issued by Ginnie Mae. | ||
[3] | Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. |
Investment Securities (Held-T_2
Investment Securities (Held-To-Maturity Securities in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | $ 750,069 | $ 1,655,048 | |
Less Than 12 Months, Unrealized Losses | (2,803) | (4,769) | |
12 Months or More, Fair Value | 2,200,268 | 1,624,950 | |
12 Months or More, Unrealized Losses | (17,219) | (17,316) | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,950,337 | 3,279,998 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (20,022) | (22,085) | |
State or local housing agency obligations [Member] | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | 55,666 | 0 | |
Less Than 12 Months, Unrealized Losses | (5) | 0 | |
12 Months or More, Fair Value | 26,757 | 26,520 | |
12 Months or More, Unrealized Losses | (3,243) | (3,480) | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 82,423 | 26,520 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (3,248) | (3,480) | |
Non-mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | 55,666 | 0 | |
Less Than 12 Months, Unrealized Losses | (5) | 0 | |
12 Months or More, Fair Value | 26,757 | 26,520 | |
12 Months or More, Unrealized Losses | (3,243) | (3,480) | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 82,423 | 26,520 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (3,248) | (3,480) | |
U.S. obligations MBS [Member] | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | [1] | 60,360 | 0 |
Less Than 12 Months, Unrealized Losses | [1] | (217) | 0 |
12 Months or More, Fair Value | [1] | 26,259 | 30,702 |
12 Months or More, Unrealized Losses | [1] | (116) | (99) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | [1] | 86,619 | 30,702 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | [1] | (333) | (99) |
GSE MBS [Member] | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | [2] | 634,043 | 1,655,048 |
Less Than 12 Months, Unrealized Losses | [2] | (2,581) | (4,769) |
12 Months or More, Fair Value | [2] | 2,147,252 | 1,567,728 |
12 Months or More, Unrealized Losses | [2] | (13,860) | (13,737) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | [2] | 2,781,295 | 3,222,776 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | [2] | (16,441) | (18,506) |
Mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less Than 12 Months, Fair Value | 694,403 | 1,655,048 | |
Less Than 12 Months, Unrealized Losses | (2,798) | (4,769) | |
12 Months or More, Fair Value | 2,173,511 | 1,598,430 | |
12 Months or More, Unrealized Losses | (13,976) | (13,836) | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,867,914 | 3,253,478 | |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | $ (16,774) | $ (18,605) | |
[1] | Represents single-family MBS issued by Ginnie Mae. | ||
[2] | Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. |
Investment Securities (Held-T_3
Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Amortized Cost | $ 3,728,655 | $ 4,456,873 | |
Carrying Value | [1] | 3,728,655 | 4,456,873 |
Fair Value | 3,717,004 | 4,447,078 | |
Non-mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Due in one year or less, Amortized Cost | 0 | 0 | |
Due after one year through five years, Amortized Cost | 0 | 0 | |
Due after five years through ten years, Amortized Cost | 0 | 0 | |
Due after ten years, Amortized Cost | 85,670 | 86,430 | |
Amortized Cost | 85,670 | 86,430 | |
Due in one year or less, Carrying Value | 0 | 0 | |
Due after one year through five years, Carrying Value | 0 | 0 | |
Due after five years through ten years, Carrying Value | 0 | 0 | |
Due after ten years, Carrying Value | 85,670 | 86,430 | |
Carrying Value | 85,670 | 86,430 | |
Due in one year or less, Fair Value | 0 | 0 | |
Due after one year through five years, Fair Value | 0 | 0 | |
Due after five years through ten years, Fair Value | 0 | 0 | |
Due after ten years, Fair Value | 82,422 | 82,951 | |
Fair Value | 82,422 | 82,951 | |
Mortgage-backed securities [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Amortized Cost | 3,642,985 | 4,370,443 | |
Carrying Value | 3,642,985 | 4,370,443 | |
Fair Value | $ 3,634,582 | $ 4,364,127 | |
[1] | Fair value: $3,717,004 and $4,447,078 as of September 30, 2019 and December 31, 2018, respectively. |
Investment Securities Investm_2
Investment Securities Investment Securities (Proceeds from Sale and Gains and Losses on HTM Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of held-to-maturity securities | $ 0 | $ 67,566 | $ 9,442 | $ 87,827 |
Carrying value of held-to-maturity securities sold | 0 | (66,037) | (9,488) | (86,236) |
NET REALIZED GAINS (LOSSES) | $ 0 | $ 1,529 | $ (46) | $ 1,591 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) | Sep. 30, 2019Rate | Dec. 31, 2018Rate |
Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | 0.95% | 0.88% |
Maximum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | 7.41% | 7.41% |
Advances (Advances Redemption T
Advances (Advances Redemption Terms) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amount | ||
Due in one year or less | $ 14,132,104 | $ 14,844,804 |
Due after one year through two years | 6,623,255 | 1,482,844 |
Due after two years through three years | 1,378,995 | 1,442,333 |
Due after three years through four years | 2,438,871 | 7,496,058 |
Due after four years through five years | 3,150,589 | 816,702 |
Thereafter | 2,797,752 | 2,695,008 |
TOTAL PAR VALUE | 30,521,566 | 28,777,749 |
Discounts | (2,034) | (3,413) |
Hedging adjustments | 115,051 | (44,223) |
TOTAL | $ 30,634,583 | $ 28,730,113 |
Weighted Average Interest Rate | ||
Due in one year or less | 2.23% | 2.60% |
Due after one year through two years | 2.29% | 2.40% |
Due after two years through three years | 2.45% | 2.53% |
Due after three years through four years | 2.31% | 2.66% |
Due after four years through five years | 2.35% | 2.68% |
Thereafter | 2.46% | 2.58% |
Total par value | 2.29% | 2.60% |
Advances (Advances by Year of R
Advances (Advances by Year of Redemption Term, Next Call Date, or Next Convert Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Redemption Term, Year of Redemption Term or Next Call Date | ||
Due in one year or less | $ 24,738,805 | $ 23,343,939 |
Due after one year through two years | 1,418,909 | 1,271,660 |
Due after two years through three years | 776,452 | 1,021,189 |
Due after three years through four years | 633,870 | 555,901 |
Due after four years through five years | 724,005 | 598,282 |
Thereafter | 2,229,525 | 1,986,778 |
TOTAL PAR VALUE | 30,521,566 | 28,777,749 |
Redemption Term, Year of Redemption Term or Next Conversion Date | ||
Due in one year or less | 14,672,104 | 15,133,204 |
Due after one year through two years | 6,827,355 | 1,683,644 |
Due after two years through three years | 1,647,995 | 1,629,233 |
Due after three years through four years | 2,585,121 | 7,752,058 |
Due after four years through five years | 3,223,089 | 954,452 |
Thereafter | 1,565,902 | 1,625,158 |
TOTAL PAR VALUE | $ 30,521,566 | $ 28,777,749 |
Advances (Advances by Interest
Advances (Advances by Interest Rate Payment Terms) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed rate: | ||
Due in one year or less | $ 1,805,217 | $ 1,635,464 |
Due after one year | 5,798,750 | 5,455,193 |
Total fixed rate | 7,603,967 | 7,090,657 |
Variable rate: | ||
Due in one year or less | 12,326,887 | 13,209,340 |
Due after one year | 10,590,712 | 8,477,752 |
Total variable rate | 22,917,599 | 21,687,092 |
TOTAL PAR VALUE | $ 30,521,566 | $ 28,777,749 |
Mortgage Loans (Mortgage Loans
Mortgage Loans (Mortgage Loans Held For Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 9,686,002 | $ 8,290,943 | |
Premiums | 145,443 | 120,548 | |
Discounts | (2,541) | (2,936) | |
Deferred loan costs, net | 198 | 223 | |
Other deferred fees | (42) | (50) | |
Hedging adjustments | 5,608 | 2,546 | |
Total before Allowance for Credit Losses on Mortgage Loans | 9,834,668 | 8,411,274 | |
Allowance for Credit Losses on Mortgage Loans | (905) | (812) | |
MORTGAGE LOANS HELD FOR PORTFOLIO, NET | 9,833,763 | 8,410,462 | |
Fixed rates, medium-term [Member] | Single-family mortgage [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | [1] | 1,212,501 | 1,179,087 |
Fixed rates, long-term [Member] | Single-family mortgage [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 8,473,501 | $ 7,111,856 | |
[1] | Medium-term defined as a term of 15 years or less at origination. |
Mortgage Loans (Mortgage Loan_2
Mortgage Loans (Mortgage Loans Held For Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 9,686,002 | $ 8,290,943 |
Government-guaranteed or insured loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | 641,274 | 671,445 |
Conventional loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 9,044,728 | $ 7,619,498 |
Allowance For Credit Losses (Na
Allowance For Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Real estate owned | $ 1,336 | $ 2,183 |
Allowance For Credit Losses (Ro
Allowance For Credit Losses (Rollforward of Allowance For Credit Losses On Mortgage Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for credit losses: | ||||
Provision (reversal) for credit losses | $ 393 | $ (391) | $ 509 | $ (345) |
Balance, end of period | 905 | 656 | 905 | 656 |
Conventional loans [Member] | ||||
Allowance for credit losses: | ||||
Balance, beginning of period | 858 | 1,029 | 812 | 1,208 |
Net (charge-offs) recoveries | (346) | 18 | (416) | (207) |
Provision (reversal) for credit losses | 393 | (391) | 509 | (345) |
Balance, end of period | $ 905 | $ 656 | $ 905 | $ 656 |
Allowance For Credit Losses (Re
Allowance For Credit Losses (Recorded Investment by impairment Method) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for credit losses, end of period: | |||||||
Individually evaluated for impairment | $ 0 | $ 37 | |||||
Collectively evaluated for impairment | 905 | 619 | |||||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 905 | 656 | |||||
Recorded investment, end of period: | |||||||
Individually evaluated for impairment | 30,710,937 | 28,536,770 | |||||
Collectively evaluated for impairment | 9,871,909 | 8,144,289 | |||||
TOTAL RECORDED INVESTMENT | 40,582,846 | 36,681,059 | |||||
Conventional Loan [Member] | |||||||
Allowance for credit losses, end of period: | |||||||
Individually evaluated for impairment | 0 | 37 | |||||
Collectively evaluated for impairment | 905 | 619 | |||||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 905 | $ 858 | $ 812 | 656 | $ 1,029 | $ 1,208 | |
Recorded investment, end of period: | |||||||
Individually evaluated for impairment | 11,285 | 9,904 | |||||
Collectively evaluated for impairment | 9,218,725 | 7,450,722 | |||||
TOTAL RECORDED INVESTMENT | 9,230,010 | 7,460,626 | |||||
Government Loans [Member] | |||||||
Allowance for credit losses, end of period: | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 0 | 0 | |||||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||||
Recorded investment, end of period: | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 653,184 | 693,567 | |||||
TOTAL RECORDED INVESTMENT | 653,184 | 693,567 | |||||
Credit Products [Member] | |||||||
Allowance for credit losses, end of period: | |||||||
Individually evaluated for impairment | [1] | 0 | 0 | ||||
Collectively evaluated for impairment | [1] | 0 | 0 | ||||
TOTAL ALLOWANCE FOR CREDIT LOSSES | [1] | 0 | 0 | ||||
Recorded investment, end of period: | |||||||
Individually evaluated for impairment | [1] | 30,690,019 | 28,514,148 | ||||
Collectively evaluated for impairment | [1] | 0 | 0 | ||||
TOTAL RECORDED INVESTMENT | [1] | 30,690,019 | 28,514,148 | ||||
Direct Financing Lease Receivable [Member] | |||||||
Allowance for credit losses, end of period: | |||||||
Individually evaluated for impairment | 0 | 0 | |||||
Collectively evaluated for impairment | 0 | 0 | |||||
TOTAL ALLOWANCE FOR CREDIT LOSSES | 0 | 0 | |||||
Recorded investment, end of period: | |||||||
Individually evaluated for impairment | 9,633 | 12,718 | |||||
Collectively evaluated for impairment | 0 | 0 | |||||
TOTAL RECORDED INVESTMENT | $ 9,633 | $ 12,718 | |||||
[1] | The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Allowance For Credit Losses (_2
Allowance For Credit Losses (Recorded Investment in Delinquent Mortgage Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |||
Recorded investment: | |||||
Total past due | $ 93,062 | $ 77,741 | |||
Total current loans | 40,489,784 | 37,164,934 | |||
Total recorded investment | 40,582,846 | 37,242,675 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 6,181 | 5,320 | ||
Past due 90 days or more and still accruing interest | 8,427 | 7,898 | |||
Loans on non-accrual status | 13,824 | [2] | 11,301 | [3] | |
Troubled debt restructurings included in non-accrual loans | 1,279 | 1,265 | |||
Past due 30-59 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 63,144 | 48,810 | |||
Past due 60-89 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 11,408 | 12,864 | |||
Past due 90 days or more delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | $ 18,510 | $ 16,067 | |||
Serious delinquency rate | [4] | 0.00% | 0.00% | ||
Conventional Loan [Member] | |||||
Recorded investment: | |||||
Total past due | $ 65,524 | $ 48,939 | |||
Total current loans | 9,164,486 | 7,720,640 | |||
Total recorded investment | 9,230,010 | 7,769,579 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 3,505 | 2,922 | ||
Past due 90 days or more and still accruing interest | 0 | 0 | |||
Loans on non-accrual status | 13,824 | [2] | 11,301 | [3] | |
Conventional Loan [Member] | Past due 30-59 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 48,259 | 34,020 | |||
Conventional Loan [Member] | Past due 60-89 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 7,182 | 6,750 | |||
Conventional Loan [Member] | Past due 90 days or more delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | $ 10,083 | $ 8,169 | |||
Serious delinquency rate | [4] | 0.10% | 0.10% | ||
Government Loans [Member] | |||||
Recorded investment: | |||||
Total past due | $ 27,538 | $ 28,802 | |||
Total current loans | 625,646 | 655,054 | |||
Total recorded investment | 653,184 | 683,856 | |||
In process of foreclosure, included above (Mortgage Loans) | [1] | 2,676 | 2,398 | ||
Past due 90 days or more and still accruing interest | 8,427 | 7,898 | |||
Loans on non-accrual status | 0 | [2] | 0 | [3] | |
Government Loans [Member] | Past due 30-59 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 14,885 | 14,790 | |||
Government Loans [Member] | Past due 60-89 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 4,226 | 6,114 | |||
Government Loans [Member] | Past due 90 days or more delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | $ 8,427 | $ 7,898 | |||
Serious delinquency rate | [4] | 1.30% | 1.20% | ||
Credit Products [Member] | |||||
Recorded investment: | |||||
Total past due | [5] | $ 0 | $ 0 | ||
Total current loans | [5] | 30,690,019 | 28,777,274 | ||
Total recorded investment | [5] | 30,690,019 | 28,777,274 | ||
In process of foreclosure, included above | [1],[5] | 0 | 0 | ||
Past due 90 days or more and still accruing interest | [5] | 0 | 0 | ||
Loans on non-accrual status | [5] | 0 | [2] | 0 | [3] |
Credit Products [Member] | Past due 30-59 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | [5] | 0 | 0 | ||
Credit Products [Member] | Past due 60-89 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | [5] | 0 | 0 | ||
Credit Products [Member] | Past due 90 days or more delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | [5] | $ 0 | $ 0 | ||
Serious delinquency rate | [4],[5] | 0.00% | 0.00% | ||
Direct Financing Lease Receivable [Member] | |||||
Recorded investment: | |||||
Total past due | $ 0 | $ 0 | |||
Total current loans | 9,633 | 11,966 | |||
Total recorded investment | 9,633 | 11,966 | |||
In process of foreclosure, included above | [1] | 0 | 0 | ||
Past due 90 days or more and still accruing interest | 0 | 0 | |||
Loans on non-accrual status | 0 | [2] | 0 | [3] | |
Direct Financing Lease Receivable [Member] | Past due 30-59 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 0 | 0 | |||
Direct Financing Lease Receivable [Member] | Past due 60-89 days delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | 0 | 0 | |||
Direct Financing Lease Receivable [Member] | Past due 90 days or more delinquent [Member] | |||||
Recorded investment: | |||||
Total past due | $ 0 | $ 0 | |||
Serious delinquency rate | [4] | 0.00% | 0.00% | ||
[1] | Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status. | ||||
[2] | Loans on non-accrual status include $1,279,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | ||||
[3] | Loans on non-accrual status include $1,265,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which the FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | ||||
[4] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. | ||||
[5] | The recorded investment for credit products includes only advances. The recorded investment for all other credit products is insignificant. |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Uncleared derivatives [Member] | Counterparty One [Member] | ||
Derivative [Line Items] | ||
Maximum credit risk applicable to a single counterparty (at period end) | $ 440 | $ 25,799 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities (Fair Values of Derivatives Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | $ 19,359,541 | $ 12,497,596 | |
TOTAL, Derivative Assets | 21,408 | 88,472 | |
TOTAL, Derivative Liabilities | 165,693 | 41,502 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 115,642 | (52,377) |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (164,703) | (33,618) |
DERIVATIVE ASSETS | 137,050 | 36,095 | |
DERIVATIVE LIABILITIES | 990 | 7,884 | |
Cash collateral posted | 280,745 | 58,902 | |
Cash collateral received | 400 | 77,661 | |
Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 14,098,263 | 8,345,925 | |
TOTAL, Derivative Assets | 20,184 | 73,969 | |
TOTAL, Derivative Liabilities | 126,203 | 24,177 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 5,261,278 | 4,151,671 | |
TOTAL, Derivative Assets | 1,224 | 14,503 | |
TOTAL, Derivative Liabilities | 39,490 | 17,325 | |
Interest rate swaps [Member] | Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 14,098,263 | 8,345,925 | |
TOTAL, Derivative Assets | 20,184 | 73,969 | |
TOTAL, Derivative Liabilities | 126,203 | 24,177 | |
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 3,637,306 | 2,151,920 | |
TOTAL, Derivative Assets | 848 | 12,907 | |
TOTAL, Derivative Liabilities | 38,832 | 17,322 | |
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 1,248,200 | 1,373,200 | |
TOTAL, Derivative Assets | 170 | 1,044 | |
TOTAL, Derivative Liabilities | 0 | 0 | |
Mortgage delivery commitments [Member] | Not Designated as Hedging Instrument [Member] | Mortgage Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 375,772 | 101,551 | |
TOTAL, Derivative Assets | 206 | 552 | |
TOTAL, Derivative Liabilities | 658 | 3 | |
Consolidated obligation discount note commitments [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
TOTAL, Notional Amount | 0 | 525,000 | |
TOTAL, Derivative Assets | 0 | 0 | |
TOTAL, Derivative Liabilities | $ 0 | $ 0 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018, respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Net Gains or Losses on Derivatives and Hedging Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Total amounts presented in the Statements of Income, Advances | $ 186,431 | $ 158,943 | $ 563,602 | $ 460,751 | |||
Total amounts presented in the Statements of Income, Available-for-sale Securities | 47,811 | 12,563 | 78,694 | 32,670 | |||
Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes | 133,680 | 108,137 | 433,473 | 314,109 | |||
Total amounts presented in the Statements of Income, Consolidated Obligations Bonds | 185,096 | 138,668 | 519,967 | 382,442 | |||
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS | (138) | (1,970) | |||||
Interest Rate Contract [Member] | Advances [Member] | Interest Income [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivatives1 | [1] | (39,873) | (144,016) | ||||
Hedged items2 | [2] | 43,355 | 159,254 | ||||
Derivatives1 | [1],[3] | 4,385 | 4,423 | ||||
Hedged items2 | [2],[3] | (1,022) | (3,283) | ||||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 3,482 | 3,363 | [3] | 15,238 | 1,140 | [3] | |
Interest Rate Contract [Member] | Available-for-sale Securities [Member] | Interest Income [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivatives1 | [1] | (61,468) | (205,705) | ||||
Hedged items2 | [2] | 75,743 | 206,340 | ||||
Derivatives1 | [1],[3] | 510 | (752) | ||||
Hedged items2 | [2],[3] | 0 | 0 | ||||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 14,275 | 510 | [3] | 635 | (752) | [3] | |
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member] | Interest Expense [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivatives1 | [1] | (4) | 21 | ||||
Hedged items2 | [2] | 3 | (12) | ||||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (1) | 9 | |||||
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member] | Interest Expense [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivatives1 | [1] | 3,915 | 30,968 | ||||
Hedged items2 | [2] | (5,061) | (39,427) | ||||
Derivatives1 | [1],[3] | (2,280) | (2,700) | ||||
Hedged items2 | [2],[3] | 0 | 0 | ||||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | $ (1,146) | (2,280) | [3] | $ (8,459) | (2,700) | [3] | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Net gains (losses) on derivatives and hedging activities [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivatives1 | [1],[3] | 28,615 | 122,399 | ||||
Hedged items2 | [2],[3] | (28,753) | (124,369) | ||||
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS | [3] | $ (138) | $ (1,970) | ||||
[1] | Includes net interest settlements in interest income/expense. | ||||||
[2] | Includes amortization/accretion on closed fair value relationships in interest income. | ||||||
[3] | Prior period amounts were not conformed to new hedge accounting guidance adopted January 1, 2019. |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) $ in Thousands | Sep. 30, 2019USD ($) | |
Advances [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Asset, Fair Value Hedge1 | $ 4,672,632 | [1] |
Asset, Basis Adjustments for Active Hedging Relationships2 | 113,443 | [2] |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | 1,608 | [2] |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | 115,051 | [2] |
Available-for-sale Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Asset, Fair Value Hedge1 | 6,081,110 | [1] |
Asset, Basis Adjustments for Active Hedging Relationships2 | 145,653 | [2] |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | 0 | [2] |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | 145,653 | [2] |
Consolidated Obligation Bonds [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Value of Hedged Liability, Fair Value Hedge1 | (3,734,212) | [1] |
Liability, Basis Adjustments for Active Hedging Relationships2 | (32,913) | [2] |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | 0 | [2] |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | $ (32,913) | [2] |
[1] | Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated OCI (AOCI) is excluded). | |
[2] | Included in amortized cost of the hedged asset/liability. |
Derivatives And Hedging Activ_7
Derivatives And Hedging Activities (Net Gains Or Losses On Derivatives And Hedging Activities in Non-Interest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to fair value hedge ineffectiveness | $ (138) | $ (1,970) | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | 6,170 | 31,631 | ||
NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES | $ (20,386) | 6,032 | $ (78,939) | 29,661 |
Interest rate swaps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to fair value hedge ineffectiveness | (138) | (1,970) | ||
Mortgage delivery commitments [Member] | Mortgage Receivable [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (710) | (2,242) | ||
Not Designated as Hedging Instrument, Economic Hedges [Member] | Interest rate swaps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | 8,256 | 38,087 | ||
Not Designated as Hedging Instrument, Economic Hedges [Member] | Interest rate caps/floors [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (184) | 378 | ||
Not Designated as Hedging Instrument, Economic Hedges [Member] | Net interest settlements [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (1,192) | (4,592) | ||
Not Designated as Hedging Instrument, Economic Hedges [Member] | Consolidated obligation discount note commitments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | $ 0 | $ 0 | ||
Net gains (losses) on derivatives and hedging activities [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (20,386) | (78,939) | ||
Net gains (losses) on derivatives and hedging activities [Member] | Mortgage delivery commitments [Member] | Mortgage Receivable [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | 365 | 3,836 | ||
Net gains (losses) on derivatives and hedging activities [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES | (20,386) | (78,939) | ||
Net gains (losses) on derivatives and hedging activities [Member] | Not Designated as Hedging Instrument, Economic Hedges [Member] | Interest rate swaps [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (19,566) | (80,593) | ||
Net gains (losses) on derivatives and hedging activities [Member] | Not Designated as Hedging Instrument, Economic Hedges [Member] | Interest rate caps/floors [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (494) | (874) | ||
Net gains (losses) on derivatives and hedging activities [Member] | Not Designated as Hedging Instrument, Economic Hedges [Member] | Net interest settlements [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | (691) | (1,238) | ||
Net gains (losses) on derivatives and hedging activities [Member] | Not Designated as Hedging Instrument, Economic Hedges [Member] | Consolidated obligation discount note commitments [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total net gains (losses) related to derivatives not designated as hedging instruments | $ 0 | $ (70) |
Deposits (Types Of Deposits) (D
Deposits (Types Of Deposits) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Interest-bearing: | ||
Demand | $ 302,491 | $ 265,021 |
Overnight | 304,000 | 158,300 |
Total interest-bearing | 606,491 | 423,321 |
Non-interest-bearing: | ||
Other | 149,885 | 50,499 |
Total non-interest-bearing | 149,885 | 50,499 |
TOTAL DEPOSITS | $ 756,376 | $ 473,820 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Par value | $ 32,405,600 | $ 23,973,850 |
Federal Home Loan Bank, Consolidated Obligations, Callable Option [Member] | ||
Debt Instrument [Line Items] | ||
Par value | $ 9,412,000 | $ 8,559,000 |
Consolidated Obligations (Conso
Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 15,086,200 | $ 8,960,500 |
Due in one year or less, Weighted Average Interest Rate | 2.10% | 2.17% |
Due after one year through two years | $ 7,990,600 | $ 5,625,750 |
Due after one year through two years, Weighted Average Interest Rate | 2.12% | 2.28% |
Due after two years through three years | $ 1,373,900 | $ 2,285,100 |
Due after two years through three years, Weighted Average Interest Rate | 2.24% | 2.11% |
Due after three years through four years | $ 1,351,700 | $ 1,134,750 |
Due after three years through four years, Weighted Average Interest Rate | 2.33% | 2.21% |
Due after four years through five years | $ 1,131,600 | $ 1,087,900 |
Due after four years through five years, Weighted Average Interest Rate | 2.34% | 2.58% |
Thereafter | $ 5,471,600 | $ 4,879,850 |
Thereafter, Weighted Average Interest Rate | 2.84% | 3.01% |
Total par value | $ 32,405,600 | $ 23,973,850 |
Total par value, Weighted Average Interest Rate | 2.26% | 2.38% |
Premium | $ 21,331 | $ 15,591 |
Discounts | (3,573) | (4,088) |
Concession fees | (14,386) | (12,445) |
Hedging adjustments | 32,913 | (6,514) |
TOTAL | $ 32,441,885 | $ 23,966,394 |
Consolidated Obligations (Con_2
Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 23,908,200 | $ 16,971,500 |
Due after one year through two years | 6,520,600 | 5,270,750 |
Due after two years through three years | 618,900 | 655,100 |
Due after three years through four years | 590,200 | 319,750 |
Due after four years through five years | 345,100 | 275,150 |
Thereafter | 422,600 | 481,600 |
Total par value | $ 32,405,600 | $ 23,973,850 |
Consolidated Obligations (Con_3
Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Simple variable rate | $ 16,287,000 | $ 10,095,000 |
Fixed rate | 15,288,600 | 12,858,850 |
Step | 340,000 | 470,000 |
Variable rate with cap | 260,000 | 20,000 |
Fixed to variable rate | 220,000 | 515,000 |
Range | 10,000 | 15,000 |
Total par value | $ 32,405,600 | $ 23,973,850 |
Consolidated Obligations (Con_4
Consolidated Obligations (Consolidated Discount Notes Outstanding) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Book Value | $ 21,044,232 | $ 20,608,332 | |
Par Value | $ 21,084,315 | $ 20,649,098 | |
Weighted Average Interest Rate | [1] | 2.00% | 2.35% |
[1] | Represents yield to maturity excluding concession fees. |
Assets and Liabilities Subjec_3
Assets and Liabilities Subject to Offsetting Assets Subject to Offsetting (Schedule of Offsetting Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | $ 21,408 | $ 88,472 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | [1],[2] | 115,642 | (52,377) |
Total derivative assets | 137,050 | 36,095 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (206) | (1,618) |
Derivative assets, Net Amount | 136,844 | 34,477 | |
Securities purchased under agreements to resell, Gross Amounts of Recognized Assets | 2,137,374 | 1,251,096 | |
Securities purchased under agreements to resell, Gross Amounts Offset in the Statement of Condition | 0 | 0 | |
Securities purchased under agreements to resell, Net Amounts of Assets Presented in the Statement of Condition | 2,137,374 | 1,251,096 | |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,137,374) | (1,251,096) |
Securities purchased under agreements to resell, Net Amount | 0 | 0 | |
TOTAL, Gross Amounts of Recognized Assets | 2,158,782 | 1,339,568 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | 115,642 | (52,377) | |
TOTAL, Net Amounts of Assets Presented in the Statement of Condition | 2,274,424 | 1,287,191 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,137,580) | (1,252,714) |
TOTAL, Net Amount | 136,844 | 34,477 | |
Uncleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 18,927 | 88,296 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | (17,117) | (83,378) | |
Total derivative assets | 1,810 | 4,918 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (206) | (1,618) |
Derivative assets, Net Amount | 1,604 | 3,300 | |
Cleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 2,481 | 176 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | 132,759 | 31,001 | |
Total derivative assets | 135,240 | 31,177 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative assets, Net Amount | $ 135,240 | $ 31,177 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018, respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Assets and Liabilities Subjec_4
Assets and Liabilities Subject to Offsetting Liabilities Subject to Offsetting (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | $ 165,693 | $ 41,502 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | [1],[2] | (164,703) | (33,618) |
Total derivative liabilities | 990 | 7,884 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (658) | (3) |
Derivative liabilities, Net Amount | 332 | 7,881 | |
TOTAL, Gross Amounts of Recognized Liabilities | 165,693 | 41,502 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | (164,703) | (33,618) | |
TOTAL, Net Amounts of Liabilities Presented in the Statement of Condition | 990 | 7,884 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (658) | (3) |
TOTAL, Net Amount | 332 | 7,881 | |
Uncleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 165,301 | 36,363 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (164,311) | (28,479) | |
Total derivative liabilities | 990 | 7,884 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (658) | (3) |
Derivative liabilities, Net Amount | 332 | 7,881 | |
Cleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 392 | 5,139 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (392) | (5,139) | |
Total derivative liabilities | 0 | 0 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative liabilities, Net Amount | $ 0 | $ 0 | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018, respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital (Narrative) (Details)
Capital (Narrative) (Details) | 9 Months Ended | ||
Sep. 30, 2019$ / sharesRate | Dec. 31, 2018$ / sharesRate | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Number of Finance Agency Regulatory Capital Requirements | 3 | ||
Total regulatory capital-to-asset ratio, required | Rate | 4.00% | 4.00% | |
Leverage capital ratio, required | Rate | 5.00% | 5.00% | |
Leverage capital, permanent capital weight | 1.5 | ||
Common Stock, par value per share | $ / shares | $ 100 | ||
Excess Stock (less than) | Rate | 1.00% | ||
Class A [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Leverage capital, non-permanent capital weight | 1 | ||
Minimum period after which redemption is required | 6 months | ||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 |
Class B [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum period after which redemption is required | 5 years | ||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 |
[1] | Putable |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Regulatory capital requirements: | ||
Risk-based capital, Required | $ 382,468 | $ 387,729 |
Risk-based capital, Actual | $ 2,300,065 | $ 2,193,001 |
Total regulatory capital-to-asset ratio, Required | 4.00% | 4.00% |
Total regulatory capital-to-asset ratio, Actual | 4.60% | 5.10% |
Total regulatory capital, Required | $ 2,285,245 | $ 1,908,610 |
Total regulatory capital, Actual | $ 2,646,115 | $ 2,442,156 |
Leverage capital ratio, Required | 5.00% | 5.00% |
Leverage capital ratio, Actual | 6.60% | 7.40% |
Leverage capital, Required | $ 2,856,557 | $ 2,385,763 |
Leverage capital, Actual | $ 3,796,147 | $ 3,538,656 |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Mandatorily Redeemable Capital Stock [Roll Forward] | ||||
Balance, beginning of period | $ 2,750 | $ 4,578 | $ 3,597 | $ 5,312 |
Capital stock subject to mandatory redemption reclassified from equity during the period | 159,775 | 215,107 | 218,411 | 893,545 |
Redemption or repurchase of mandatorily redeemable capital stock during the period | (160,078) | (215,206) | (219,642) | (894,494) |
Stock dividend classified as mandatorily redeemable capital stock during the period | 30 | 57 | 111 | 173 |
Balance, end of period | $ 2,477 | $ 4,536 | $ 2,477 | $ 4,536 |
Capital (Mandatorily Redeemab_2
Capital (Mandatorily Redeemable Capital Stock By Contractual Year Of Redemption) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Contractual Year of Repurchase | |||||||
Year 1 | $ 0 | $ 0 | |||||
Year 2 | 1 | 0 | |||||
Year 3 | 873 | 1 | |||||
Year 4 | 0 | 1,798 | |||||
Year 5 | 0 | 0 | |||||
Past contractual redemption date due to remaining activity | [1] | 1,603 | 1,798 | ||||
TOTAL | $ 2,477 | $ 2,750 | $ 3,597 | $ 4,536 | $ 4,578 | $ 5,312 | |
[1] | Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance at the beginning of the period | $ 2,580,693 | $ 2,396,669 | $ 2,454,252 | $ 2,506,103 | |
Reclassifications from other comprehensive income (loss) to net income: | |||||
Total other comprehensive income (loss) | (17,229) | 7,354 | (1,009) | 6,296 | |
Balance at the end of the period | 2,658,322 | 2,389,893 | 2,658,322 | 2,389,893 | |
Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance at the beginning of the period | 35,143 | 29,628 | 19,068 | 31,206 | |
Other comprehensive income (loss) before reclassification: | |||||
Unrealized gains (losses) | (17,324) | 3,694 | (1,249) | 2,116 | |
Reclassifications from other comprehensive income (loss) to net income: | |||||
Total other comprehensive income (loss) | (17,324) | 3,694 | (1,249) | 2,116 | |
Balance at the end of the period | 17,819 | 33,322 | 17,819 | 33,322 | |
Defined Benefit Pension Plan [Member] | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance at the beginning of the period | (3,230) | (1,373) | (3,375) | (1,385) | |
Reclassifications from other comprehensive income (loss) to net income: | |||||
Amortization of net losses - defined benefit pension plan | [1] | 95 | 5 | 240 | 17 |
Total other comprehensive income (loss) | 95 | 5 | 240 | 17 | |
Balance at the end of the period | (3,135) | (1,368) | (3,135) | (1,368) | |
Total AOCI [Member] | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance at the beginning of the period | 31,913 | 24,600 | 15,693 | 25,658 | |
Other comprehensive income (loss) before reclassification: | |||||
Unrealized gains (losses) | (17,324) | 3,694 | (1,249) | 2,116 | |
Accretion of non-credit loss | 30 | 513 | |||
Non-credit losses included in basis of securities sold | 3,625 | 3,625 | |||
Reclassifications from other comprehensive income (loss) to net income: | |||||
Non-credit OTTI to credit OTTI | [2] | 25 | |||
Amortization of net losses - defined benefit pension plan | [1] | 95 | 5 | 240 | 17 |
Total other comprehensive income (loss) | (17,229) | 7,354 | (1,009) | 6,296 | |
Balance at the end of the period | 14,684 | 31,954 | 14,684 | 31,954 | |
Held-to-maturity Securities [Member] | Net Non-credit Portion of OTTI Losses on Held-to-maturity Securities [Member] | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance at the beginning of the period | 0 | (3,655) | 0 | (4,163) | |
Other comprehensive income (loss) before reclassification: | |||||
Accretion of non-credit loss | 30 | 513 | |||
Non-credit losses included in basis of securities sold | 3,625 | 3,625 | |||
Reclassifications from other comprehensive income (loss) to net income: | |||||
Non-credit OTTI to credit OTTI | [2] | 25 | |||
Total other comprehensive income (loss) | 0 | 3,655 | 0 | 4,163 | |
Balance at the end of the period | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). | ||||
[2] | Recorded in “Other” non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). |
Fair Values (Fair Value Summary
Fair Values (Fair Value Summary) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets: | |||
Cash and due from banks | $ 24,639 | $ 15,060 | |
Trading securities | 2,901,575 | 2,151,113 | |
Available-for-sale securities | 6,098,929 | 1,725,640 | |
Held-to-maturity securities, Carrying Value | [1] | 3,728,655 | 4,456,873 |
Held-to-maturity securities | 3,717,004 | 4,447,078 | |
Accrued interest receivable | 150,823 | 109,366 | |
Derivative assets | 137,050 | 36,095 | |
Netting adjustments and cash collateral, Derivative Assets | [2],[3] | 115,642 | (52,377) |
Liabilities: | |||
Accrued interest payable | 116,478 | 87,903 | |
Derivative liabilities | 990 | 7,884 | |
Netting adjustments and cash collateral, Derivative Liabilities | [2],[3] | (164,703) | (33,618) |
Carrying Value [Member] | |||
Assets: | |||
Cash and due from banks | 24,639 | 15,060 | |
Interest-bearing deposits | 481,989 | 670,660 | |
Securities purchased under agreements to resell | 2,137,374 | 1,251,096 | |
Federal funds sold | 900,000 | 50,000 | |
Trading securities | 2,901,575 | 2,151,113 | |
Available-for-sale securities | 6,098,929 | 1,725,640 | |
Held-to-maturity securities, Carrying Value | 3,728,655 | 4,456,873 | |
Advances | 30,634,583 | 28,730,113 | |
Mortgage loans held for portfolio, net of allowance | 9,833,763 | 8,410,462 | |
Accrued interest receivable | 150,823 | 109,366 | |
Derivative assets | 137,050 | 36,095 | |
Liabilities: | |||
Deposits | 756,376 | 473,820 | |
Mandatorily redeemable capital stock | 2,477 | 3,597 | |
Accrued interest payable | 116,478 | 87,903 | |
Derivative liabilities | 990 | 7,884 | |
Carrying Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 35,000 | 35,000 | |
Carrying Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (35,000) | (35,000) | |
Carrying Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 21,044,232 | 20,608,332 | |
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,441,885 | 23,966,394 | |
Fair Value [Member] | |||
Assets: | |||
Cash and due from banks | 24,639 | 15,060 | |
Interest-bearing deposits | 481,989 | 670,660 | |
Securities purchased under agreements to resell | 2,137,374 | 1,251,096 | |
Federal funds sold | 900,000 | 50,000 | |
Trading securities | 2,901,575 | 2,151,113 | |
Available-for-sale securities | 6,098,929 | 1,725,640 | |
Held-to-maturity securities | 3,717,004 | 4,447,078 | |
Advances | 30,680,520 | 28,728,201 | |
Mortgage loans held for portfolio, net of allowance | 10,149,450 | 8,388,885 | |
Accrued interest receivable | 150,823 | 109,366 | |
Derivative assets | 137,050 | 36,095 | |
Liabilities: | |||
Deposits | 756,376 | 473,820 | |
Mandatorily redeemable capital stock | 2,477 | 3,597 | |
Accrued interest payable | 116,478 | 87,903 | |
Derivative liabilities | 990 | 7,884 | |
Fair Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 35,277 | 32,154 | |
Fair Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (35,277) | (32,154) | |
Fair Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 21,045,884 | 20,606,743 | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,528,060 | 23,727,705 | |
Level 1 [Member] | |||
Assets: | |||
Cash and due from banks | 24,639 | 15,060 | |
Interest-bearing deposits | 0 | 0 | |
Securities purchased under agreements to resell | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Liabilities: | |||
Deposits | 0 | 0 | |
Mandatorily redeemable capital stock | 2,477 | 3,597 | |
Accrued interest payable | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 1 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 0 | 0 | |
Level 1 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | 0 | 0 | |
Level 1 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 0 | 0 | |
Level 1 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 0 | 0 | |
Level 2 [Member] | |||
Assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits | 481,989 | 670,660 | |
Securities purchased under agreements to resell | 2,137,374 | 1,251,096 | |
Federal funds sold | 900,000 | 50,000 | |
Trading securities | 2,901,575 | 2,151,113 | |
Available-for-sale securities | 6,098,929 | 1,725,640 | |
Held-to-maturity securities | 3,634,582 | 4,364,127 | |
Advances | 30,680,520 | 28,728,201 | |
Mortgage loans held for portfolio, net of allowance | 10,147,407 | 8,387,425 | |
Accrued interest receivable | 150,823 | 109,366 | |
Derivative assets | 21,408 | 88,472 | |
Liabilities: | |||
Deposits | 756,376 | 473,820 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 116,478 | 87,903 | |
Derivative liabilities | 165,693 | 41,502 | |
Level 2 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 35,277 | 32,154 | |
Level 2 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (35,277) | (32,154) | |
Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 21,045,884 | 20,606,743 | |
Level 2 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 32,528,060 | 23,727,705 | |
Level 3 [Member] | |||
Assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Securities purchased under agreements to resell | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Held-to-maturity securities | 82,422 | 82,951 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 2,043 | 1,460 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Liabilities: | |||
Deposits | 0 | 0 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 3 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 0 | 0 | |
Level 3 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | 0 | 0 | |
Level 3 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 0 | 0 | |
Level 3 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | $ 0 | $ 0 | |
[1] | Fair value: $3,717,004 and $4,447,078 as of September 30, 2019 and December 31, 2018, respectively. | ||
[2] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018, respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018, respectively. | ||
[3] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Fair Values (Hierarchy Level fo
Fair Values (Hierarchy Level for Financial Assets And Liabilities - Recurring And Nonrecurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | $ 2,901,575 | $ 2,151,113 | |||
Available-for-sale securities | 6,098,929 | 1,725,640 | |||
Total derivative assets | 137,050 | 36,095 | |||
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 115,642 | (52,377) | ||
Total derivative liabilities | 990 | 7,884 | |||
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (164,703) | (33,618) | ||
Held-to-maturity securities | 3,717,004 | 4,447,078 | |||
U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,533,842 | 252,377 | |||
Available-for-sale securities | 3,510,728 | ||||
US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [3] | 468,747 | 1,000,495 | ||
U.S. obligations MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [4] | 0 | 467 | ||
Held-to-maturity securities | [5] | 97,325 | 109,892 | ||
GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [6] | 898,986 | 897,774 | ||
Held-to-maturity securities | [7] | 3,537,257 | 4,254,235 | ||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,901,575 | 2,151,113 | |||
Available-for-sale securities | 6,098,929 | 1,725,640 | |||
Total derivative assets | 21,408 | 88,472 | |||
Total derivative liabilities | 165,693 | 41,502 | |||
Held-to-maturity securities | 3,634,582 | 4,364,127 | |||
Mortgage loans held for portfolio | 10,147,407 | 8,387,425 | |||
Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 0 | 0 | |||
Available-for-sale securities | 0 | 0 | |||
Total derivative assets | 0 | 0 | |||
Total derivative liabilities | 0 | 0 | |||
Held-to-maturity securities | 82,422 | 82,951 | |||
Mortgage loans held for portfolio | 2,043 | 1,460 | |||
Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,901,575 | 2,151,113 | |||
Available-for-sale securities | 6,098,929 | 1,725,640 | |||
Total derivative assets | 137,050 | 36,095 | |||
Total derivative liabilities | 990 | 7,884 | |||
Held-to-maturity securities | 3,717,004 | 4,447,078 | |||
Mortgage loans held for portfolio | 10,149,450 | 8,388,885 | |||
Recurring fair value measurements [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Netting adjustments and cash collateral, Derivative Assets | [2] | 115,642 | (52,377) | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (164,703) | (33,618) | ||
Recurring fair value measurements [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Netting adjustments and cash collateral, Derivative Assets | [2] | 115,642 | (52,377) | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (164,703) | (33,618) | ||
Recurring fair value measurements [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,901,575 | 2,151,113 | |||
Available-for-sale securities | 6,098,929 | 1,725,640 | |||
Total derivative assets | 21,408 | 88,472 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 9,021,912 | 3,965,225 | |||
Total derivative liabilities | 165,693 | 41,502 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 165,693 | 41,502 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 21,202 | 87,920 | |||
Total derivative liabilities | 165,035 | 41,499 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,533,842 | 252,377 | |||
Available-for-sale securities | 3,510,728 | ||||
Recurring fair value measurements [Member] | Level 2 [Member] | US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [8] | 468,747 | 1,000,495 | ||
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. obligations MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [5] | 467 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [7] | 898,986 | 897,774 | ||
Available-for-sale securities | [9] | 2,588,201 | 1,725,640 | ||
Recurring fair value measurements [Member] | Level 2 [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 206 | 552 | |||
Total derivative liabilities | 658 | 3 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,901,575 | 2,151,113 | |||
Available-for-sale securities | 6,098,929 | 1,725,640 | |||
Total derivative assets | 137,050 | 36,095 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 9,137,554 | 3,912,848 | |||
Total derivative liabilities | 990 | 7,884 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 990 | 7,884 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | Interest-rate related [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 136,844 | 35,543 | |||
Total derivative liabilities | 332 | 7,881 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,533,842 | 252,377 | |||
Available-for-sale securities | 3,510,728 | ||||
Recurring fair value measurements [Member] | Fair Value [Member] | US Government-sponsored Enterprises Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [8] | 468,747 | 1,000,495 | ||
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. obligations MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [5] | 467 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | [7] | 898,986 | 897,774 | ||
Available-for-sale securities | [9] | 2,588,201 | 1,725,640 | ||
Recurring fair value measurements [Member] | Fair Value [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total derivative assets | 206 | 552 | |||
Total derivative liabilities | 658 | 3 | |||
Nonrecurring fair value measurements - Assets: [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 2,078 | [10] | 2,491 | [11] | |
Mortgage loans held for portfolio | 2,056 | [10] | 1,463 | [11] | |
Real estate owned | 22 | [10] | 1,028 | [11] | |
Nonrecurring fair value measurements - Assets: [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 2,078 | [10] | 2,491 | [11] | |
Mortgage loans held for portfolio | 2,056 | [10] | 1,463 | [11] | |
Real estate owned | $ 22 | [10] | $ 1,028 | [11] | |
[1] | Amounts represent the application of the netting requirements that allow the FHLBank to settle positive and negative positions, cash collateral, and related accrued interest held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $280,745,000 and $58,902,000 as of September 30, 2019 and December 31, 2018, respectively. Cash collateral received was $400,000 and $77,661,000 as of September 30, 2019 and December 31, 2018, respectively. | ||||
[2] | Represents the effect of legally enforceable master netting agreements that allow the FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||||
[3] | Represents debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank (Farm Credit) and Federal Agricultural Mortgage Corporation (Farmer Mac). GSE securities are not guaranteed by the U.S. government. | ||||
[4] | Represents single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government. | ||||
[5] | Represents single-family MBS issued by Ginnie Mae. | ||||
[6] | Represents single-family and multi-family MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). | ||||
[7] | Represents single-family and multi-family MBS issued by Fannie Mae and Freddie Mac. | ||||
[8] | Represents debentures issued by other FHLBanks, Fannie Mae, Farm Credit and Farmer Mac. | ||||
[9] | Represents multi-family MBS issued by Fannie Mae. | ||||
[10] | Includes assets adjusted to fair value during the nine months ended September 30, 2019 and still outstanding as of September 30, 2019. | ||||
[11] | Includes assets adjusted to fair value during the year ended December 31, 2018 and still outstanding as of December 31, 2018. |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Off-balance Sheet Commitments: | ||
Obligation with Joint and Several Liability Arrangement, Description | As provided in the Federal Home Loan Bank Act of 1932, as amended (Bank Act) or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. | |
Obligation with joint and several liability arrangement, off balance sheet amount | $ 956,780,794 | $ 986,994,515 |
Carrying value included in other liabilities | $ 69,066 | $ 69,993 |
Number of in-district state housing authorities with standby bond purchase agreements | 2 | 2 |
Mortgage Delivery Commitments Derivative Asset (Liability) | $ (452) | $ 549 |
Standby Letters of Credit Outstanding [Member] | ||
Off-balance Sheet Commitments: | ||
Carrying value included in other liabilities | $ 1,300 | $ 1,296 |
Commitment Expiration Year (no later than) | 2023 | |
Term (up to) | P6Y | |
Forward Settling Advance Commitments [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | P24M | |
Commitments for standby bond purchases [Member] | ||
Off-balance Sheet Commitments: | ||
Commitment Expiration Year (no later than) | 2022 | |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | P60D |
Commitments And Contingencies_3
Commitments And Contingencies (Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Standby letters of credit outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | $ 3,538,145 | $ 3,824,497 |
Expire After One Year | 7,290 | 37,933 |
Total | 3,545,435 | 3,862,430 |
Advance commitments outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 77,115 | 116,475 |
Expire After One Year | 31,420 | 43,782 |
Total | 108,535 | 160,257 |
Commitments for standby bond purchases [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 184,945 | 69,277 |
Expire After One Year | 580,884 | 686,602 |
Total | 765,829 | 755,879 |
Commitments to issue consolidated bonds, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 81,000 | 0 |
Expire After One Year | 0 | 0 |
Total | 81,000 | 0 |
Commitments to issue consolidated obligations discount notes, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 0 | 1,825,000 |
Expire After One Year | 0 | 0 |
Total | 0 | 1,825,000 |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 375,772 | 101,551 |
Expire After One Year | 0 | 0 |
Total | $ 375,772 | $ 101,551 |
Transactions With Stockholder_2
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Outstanding Advances | $ 30,634,583 | $ 28,730,113 |
Outstanding Deposits | 756,376 | 473,820 |
Ten Percent Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 781,177 | $ 593,206 |
Regulatory Capital Stock, Percent Of Total | 46.70% | 38.80% |
Outstanding Advances | $ 15,000,000 | $ 12,660,000 |
Outstanding Advances, Percent of Total | 49.20% | 44.00% |
Outstanding Deposits | $ 30,635 | $ 29,619 |
Outstanding Deposits, Percent of Total | 4.10% | 6.30% |
Ten Percent Owner [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 99,950 | $ 24,506 |
Regulatory Capital Stock, Percent Of Total | 28.80% | 9.80% |
Ten Percent Owner [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 681,227 | $ 568,700 |
Regulatory Capital Stock, Percent Of Total | 51.40% | 44.40% |
MidFirst Bank [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 369,000 | $ 295,200 |
Regulatory Capital Stock, Percent Of Total | 22.10% | 19.30% |
Outstanding Advances | $ 8,200,000 | $ 6,560,000 |
Outstanding Advances, Percent of Total | 26.90% | 22.80% |
Outstanding Deposits | $ 850 | $ 331 |
Outstanding Deposits, Percent of Total | 0.10% | 0.10% |
MidFirst Bank [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 500 | $ 500 |
Regulatory Capital Stock, Percent Of Total | 0.10% | 0.20% |
MidFirst Bank [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 368,500 | $ 294,700 |
Regulatory Capital Stock, Percent Of Total | 27.80% | 23.00% |
BOKF, N.A. [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 412,177 | $ 298,006 |
Regulatory Capital Stock, Percent Of Total | 24.60% | 19.50% |
Outstanding Advances | $ 6,800,000 | $ 6,100,000 |
Outstanding Advances, Percent of Total | 22.30% | 21.20% |
Outstanding Deposits | $ 29,785 | $ 29,288 |
Outstanding Deposits, Percent of Total | 4.00% | 6.20% |
BOKF, N.A. [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 99,450 | $ 24,006 |
Regulatory Capital Stock, Percent Of Total | 28.70% | 9.60% |
BOKF, N.A. [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 312,727 | $ 274,000 |
Regulatory Capital Stock, Percent Of Total | 23.60% | 21.40% |
Transactions With Stockholder_3
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping-Directors) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Advances, Outstanding Amount | $ 30,634,583 | $ 28,730,113 |
Deposits, Outstanding Amount | 756,376 | 473,820 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 12,002 | $ 9,103 |
TOTAL CAPITAL STOCK, Percent Of Total | 0.70% | 0.60% |
Advances, Outstanding Amount | $ 180,964 | $ 157,012 |
Advances, Percent of Total | 0.60% | 0.50% |
Deposits, Outstanding Amount | $ 29,295 | $ 9,679 |
Deposits, Percent of Total | 3.90% | 2.10% |
Director [Member] | Class A [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 6,344 | $ 4,179 |
TOTAL CAPITAL STOCK, Percent Of Total | 1.80% | 1.70% |
Director [Member] | Class B [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 5,658 | $ 4,924 |
TOTAL CAPITAL STOCK, Percent Of Total | 0.40% | 0.40% |
Transactions With Stockholder_4
Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details) - Director [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Mortgage loans acquired | $ 61,362 | $ 24,676 | $ 128,251 | $ 80,047 |
Mortgage loans acquired, Percent of Total | 5.40% | 4.30% | 5.30% | 5.20% |