Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 | 6,266,177 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,341,670 |
Statements Of Condition
Statements Of Condition - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and due from banks | $ 451,670 | $ 1,917,166 | |
Interest-bearing deposits | 1,196,813 | 921,453 | |
Federal funds sold | 1,655,000 | 850,000 | |
Securities purchased under agreements to resell (Note 9) | 2,700,000 | 4,750,000 | |
Investment securities: | |||
Trading securities (Note 3) | 3,177,991 | 2,812,562 | |
Available-for-sale securities (Note 3) | 7,526,096 | 7,182,500 | |
Held-to-maturity securities, fair value of $3,319,631 and $3,556,938 (Note 3) | 3,341,338 | 3,569,958 | |
Total investment securities | 14,045,425 | 13,565,020 | |
Advances (Note 4) | 31,678,083 | 30,241,315 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $6,468 and $985 (Note 5) | 11,018,168 | 10,633,009 | |
Accrued interest receivable | 143,873 | 143,765 | |
Derivative assets, net (Notes 6, 9) | 203,449 | 154,804 | |
Other assets | 97,032 | 100,122 | |
TOTAL ASSETS | 63,189,513 | 63,276,654 | |
LIABILITIES | |||
Deposits (Note 7) | 975,397 | 790,640 | |
Consolidated obligations, net: | |||
Discount notes (Note 8) | 25,563,980 | 27,447,911 | |
Bonds (Note 8) | 33,730,055 | 32,013,314 | |
Total consolidated obligations, net | 59,294,035 | 59,461,225 | |
Mandatorily redeemable capital stock (Note 10) | 2,390 | 2,415 | |
Accrued interest payable | 87,799 | 117,580 | |
Affordable Housing Program payable | 43,287 | 43,027 | |
Derivative liabilities, net (Notes 6, 9) | 8,570 | 202 | |
Other liabilities | 64,446 | 70,514 | |
TOTAL LIABILITIES | 60,475,924 | 60,485,603 | |
Commitments and contingencies (Note 13) | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | 1,802,296 | 1,766,456 |
Retained earnings: | |||
Unrestricted | 743,731 | 765,295 | |
Restricted | 236,881 | 234,514 | |
Total retained earnings | 980,612 | 999,809 | |
Accumulated other comprehensive income (loss) (Note 11) | (69,319) | 24,786 | |
TOTAL CAPITAL | 2,713,589 | 2,791,051 | |
TOTAL LIABILITIES AND CAPITAL | 63,189,513 | 63,276,654 | |
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | 448,404 | 447,610 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | $ 1,353,892 | $ 1,318,846 |
[1] | Putable |
Statements Of Condition (Parent
Statements Of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Allowance for Credit Losses on Mortgage Loans | [1] | $ 6,468 | $ 985 |
Investment securities: | |||
Held-to-maturity, Fair Value | $ 3,319,631 | $ 3,556,938 | |
Capital stock outstanding - putable: | |||
Common Stock, par value per share | $ 100 | ||
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [2] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [2] | 4,484 | 4,476 |
Common Stock, Shares Outstanding | [2] | 4,484 | 4,476 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [2] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [2] | 13,539 | 13,188 |
Common Stock, Shares Outstanding | [2] | 13,539 | 13,188 |
[1] | Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5). | ||
[2] | Putable |
Statements Of Income
Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME: | ||
Interest-bearing deposits | $ 4,705 | $ 5,170 |
Securities purchased under agreements to resell | 14,590 | 27,930 |
Federal funds sold | 3,488 | 10,324 |
Trading securities | 20,189 | 21,944 |
Available-for-sale securities | 24,294 | 15,396 |
Held-to-maturity securities | 17,068 | 31,273 |
Advances | 130,887 | 187,609 |
Mortgage loans held for portfolio | 85,106 | 73,284 |
Other | 354 | 384 |
Total interest income | 300,681 | 373,314 |
INTEREST EXPENSE: | ||
Deposits | 1,554 | 2,688 |
Consolidated obligations: | ||
Discount notes | 92,951 | 148,991 |
Bonds | 150,742 | 158,157 |
Mandatorily redeemable capital stock (Note 10) | 24 | 43 |
Other | 324 | 420 |
Total interest expense | 245,595 | 310,299 |
NET INTEREST INCOME | 55,086 | 63,015 |
Provision (reversal) for credit losses on mortgage loans (Note 5) | (736) | 78 |
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL) | 55,822 | 62,937 |
OTHER INCOME (LOSS): | ||
Net gains (losses) on trading securities (Note 3) | 94,389 | 28,755 |
Net realized (gains) losses on sale of available-for-sale securities (Note 3) | 1,523 | 0 |
Net gains (losses) on derivatives and hedging activities (Note 6) | (122,252) | (18,542) |
Standby bond purchase agreement commitment fees | 565 | 566 |
Letters of credit fees | 1,403 | 1,186 |
Other | 1,143 | 709 |
Total other income (loss) | (23,229) | 12,674 |
OTHER EXPENSES: | ||
Compensation and benefits | 10,461 | 9,258 |
Other operating | 4,680 | 4,255 |
Federal Housing Finance Agency | 1,023 | 812 |
Office of Finance | 1,007 | 849 |
Other | 2,272 | 1,816 |
Total other expenses | 19,443 | 16,990 |
INCOME BEFORE ASSESSMENTS | 13,150 | 58,621 |
Affordable Housing Program | 1,318 | 5,866 |
NET INCOME | $ 11,832 | $ 52,755 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 11,832 | $ 52,755 |
Other comprehensive income (loss): | ||
Net unrealized gains (losses) on available-for-sale securities | (94,131) | 11,848 |
Defined benefit pension plan | 26 | 73 |
Total other comprehensive income (loss) | (94,105) | 11,921 |
TOTAL COMPREHENSIVE INCOME | $ (82,273) | $ 64,676 |
Statements Of Capital
Statements Of Capital - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | $ 2,791,051 | $ 2,454,252 | |
Comprehensive income | (82,273) | 64,676 | |
Proceeds from issuance of capital stock | 254,751 | 337,758 | |
Repurchase/redemption of capital stock | (38,437) | (353,850) | |
Net reclassification of shares to mandatorily redeemable capital stock | (205,310) | (23,915) | |
Net transfer of shares between Class A and Class B | 0 | 0 | |
Dividends on capital stock | |||
Cash payment | (70) | (71) | |
Stock issued | 0 | 0 | |
Balance at the end of the period | $ 2,713,589 | $ 2,478,850 | |
Capital Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares, beginning balance | [1] | 17,664 | 15,245 |
Balance at the beginning of the period | [1] | $ 1,766,456 | $ 1,524,537 |
Proceeds from issuance of capital stock, shares | [1] | 2,547 | 3,378 |
Proceeds from issuance of capital stock | [1] | $ 254,751 | $ 337,758 |
Repurchase/redemption of capital stock, shares | [1] | (384) | (3,538) |
Repurchase/redemption of capital stock | [1] | $ (38,437) | $ (353,850) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (2,052) | (239) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (205,310) | $ (23,915) |
Net transfer of shares between Class A and Class B, shares | [1] | 0 | 0 |
Net transfer of shares between Class A and Class B | [1] | $ 0 | $ 0 |
Dividends on capital stock | |||
Stock issued, shares | [1] | 248 | 238 |
Stock issued | [1] | $ 24,836 | $ 23,866 |
Shares, ending balance | [1] | 18,023 | 15,084 |
Balance at the end of the period | [1] | $ 1,802,296 | $ 1,508,396 |
Total Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | 999,809 | 914,022 | |
Comprehensive income | 11,832 | 52,755 | |
Dividends on capital stock | |||
Cash payment | (70) | (71) | |
Stock issued | (24,836) | (23,866) | |
Balance at the end of the period | 980,612 | 942,840 | |
Unrestricted Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | 765,295 | 716,555 | |
Comprehensive income | 9,465 | 42,204 | |
Dividends on capital stock | |||
Cash payment | (70) | (71) | |
Stock issued | (24,836) | (23,866) | |
Balance at the end of the period | 743,731 | 734,822 | |
Restricted Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | 234,514 | 197,467 | |
Comprehensive income | 2,367 | 10,551 | |
Dividends on capital stock | |||
Balance at the end of the period | 236,881 | 208,018 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | 24,786 | 15,693 | |
Comprehensive income | (94,105) | 11,921 | |
Dividends on capital stock | |||
Balance at the end of the period | (69,319) | $ 27,614 | |
Adjustment for cumulative effect of accounting change , Period of Adoption [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | (6,123) | ||
Adjustment for cumulative effect of accounting change , Period of Adoption [Member] | Total Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | (6,123) | ||
Adjustment for cumulative effect of accounting change , Period of Adoption [Member] | Unrestricted Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | (6,123) | ||
Adjustment for cumulative effect of accounting change , Period of Adoption [Member] | Restricted Retained Earnings [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at the beginning of the period | $ 0 | ||
Class A [Member] | Capital Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares, beginning balance | [1] | 4,476 | 2,473 |
Balance at the beginning of the period | [1] | $ 447,610 | $ 247,361 |
Proceeds from issuance of capital stock, shares | [1] | 0 | 1 |
Proceeds from issuance of capital stock | [1] | $ 47 | $ 52 |
Repurchase/redemption of capital stock, shares | [1] | 0 | (3,388) |
Repurchase/redemption of capital stock | [1] | $ 0 | $ (338,827) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (1,925) | (179) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (192,560) | $ (17,911) |
Net transfer of shares between Class A and Class B, shares | [1] | 1,933 | 3,074 |
Net transfer of shares between Class A and Class B | [1] | $ 193,307 | $ 307,404 |
Dividends on capital stock | |||
Shares, ending balance | [1] | 4,484 | 1,981 |
Balance at the end of the period | [1] | $ 448,404 | $ 198,079 |
Class B [Member] | Capital Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares, beginning balance | [1] | 13,188 | 12,772 |
Balance at the beginning of the period | [1] | $ 1,318,846 | $ 1,277,176 |
Proceeds from issuance of capital stock, shares | [1] | 2,547 | 3,377 |
Proceeds from issuance of capital stock | [1] | $ 254,704 | $ 337,706 |
Repurchase/redemption of capital stock, shares | [1] | (384) | (150) |
Repurchase/redemption of capital stock | [1] | $ (38,437) | $ (15,023) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (127) | (60) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (12,750) | $ (6,004) |
Net transfer of shares between Class A and Class B, shares | [1] | (1,933) | (3,074) |
Net transfer of shares between Class A and Class B | [1] | $ (193,307) | $ (307,404) |
Dividends on capital stock | |||
Stock issued, shares | [1] | 248 | 238 |
Stock issued | [1] | $ 24,836 | $ 23,866 |
Shares, ending balance | [1] | 13,539 | 13,103 |
Balance at the end of the period | [1] | $ 1,353,892 | $ 1,310,317 |
[1] | Putable |
Statements Of Capital (Parenthe
Statements Of Capital (Parenthetical) - Capital Stock [Member] | 3 Months Ended | |
Mar. 31, 2020Rate | Mar. 31, 2019Rate | |
Class A [Member] | ||
Stock dividend rate percentage | 2.30% | 2.30% |
Class B [Member] | ||
Stock dividend rate percentage | 7.20% | 7.50% |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 11,832 | $ 52,755 |
Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | ||
Premiums and discounts on consolidated obligations, net | 8,290 | 8,802 |
Concessions on consolidated obligations | 6,688 | 2,478 |
Premiums and discounts on investments, net | 5,312 | 919 |
Premiums, discounts and commitment fees on advances, net | (334) | (927) |
Premiums, discounts and deferred loan costs on mortgage loans, net | 9,088 | 3,989 |
Fair value adjustments on hedged assets or liabilities | 1,240 | 1,267 |
Premises, software and equipment | 822 | 753 |
Other | 26 | 73 |
Provision (reversal) for credit losses on mortgage loans | (736) | 78 |
Non-cash interest on mandatorily redeemable capital stock | 24 | 42 |
Net realized (gains) losses on sale of available-for-sale securities | (1,523) | 0 |
Net realized (gains) losses on sale of premises and equipment | 0 | (3) |
Other adjustments | (20) | (47) |
Net (gains) losses on trading securities | (94,389) | (28,755) |
Net change in derivatives and hedging activities | (288,814) | (38,853) |
(Increase) decrease in accrued interest receivable | 237 | (28,624) |
Change in net accrued interest included in derivative assets | 7,760 | (3,132) |
(Increase) decrease in other assets | 1,885 | 1,850 |
Increase (decrease) in accrued interest payable | (29,957) | 16,911 |
Change in net accrued interest included in derivative liabilities | (549) | 3,778 |
Increase (decrease) in Affordable Housing Program liability | 260 | 1,881 |
Increase (decrease) in other liabilities | (6,121) | (4,833) |
Total adjustments | (380,811) | (62,353) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (368,979) | (9,598) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net (increase) decrease in interest-bearing deposits | (582,401) | 407,921 |
Net (increase) decrease in securities purchased under resale agreements | 2,050,000 | (3,022,342) |
Net (increase) decrease in Federal funds sold | (805,000) | (1,900,000) |
Proceeds from sale of trading securities | 275,186 | 0 |
Proceeds from maturities of and principal repayments on trading securities | 53,774 | 237,807 |
Purchases of trading securities | (600,000) | (1,964,941) |
Proceeds from sale of available-for-sale securities | 289,045 | 0 |
Proceeds from maturities of and principal repayments on available-for-sale securities | 44,055 | 2,902 |
Purchases of available-for-sale securities | (430,610) | (2,135,066) |
Proceeds from maturities of and principal repayments on held-to-maturity securities | 228,033 | 214,456 |
Advances repaid | 43,164,893 | 100,696,593 |
Advances originated | (44,344,471) | (101,789,046) |
Principal collected on mortgage loans | 502,097 | 196,864 |
Purchases of mortgage loans | (901,214) | (491,056) |
Proceeds from sale of foreclosed assets | 281 | 703 |
Other investing activities | 813 | 761 |
Purchases of premises, software and equipment | (329) | (300) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,055,848) | (9,544,744) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposits | 185,357 | 7,352 |
Net proceeds from issuance of consolidated obligations: | ||
Discount notes | 124,347,336 | 251,204,917 |
Bonds | 12,649,550 | 5,574,167 |
Payments for maturing and retired consolidated obligations: | ||
Discount notes | (126,259,921) | (245,039,459) |
Bonds | (10,974,650) | (2,154,000) |
Proceeds from financing derivatives | 3,470 | 0 |
Net interest payments received (paid) for financing derivatives | (2,696) | (609) |
Proceeds from issuance of capital stock | 254,751 | 337,758 |
Payments for repurchase/redemption of capital stock | (38,437) | (353,850) |
Payments for repurchase of mandatorily redeemable capital stock | (205,359) | (24,006) |
Cash dividends paid | (70) | (71) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (40,669) | 9,552,199 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,465,496) | (2,143) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,917,166 | 15,060 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 451,670 | 12,917 |
Supplemental disclosures: | ||
Interest paid | 261,222 | 279,543 |
Affordable Housing Program payments | 1,064 | 4,251 |
Net transfers of mortgage loans to other assets | $ 309 | $ 350 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION Basis of Presentation: The accompanying interim financial statements of 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 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. 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, 2019 . The interim financial statements presented herein should be read in conjunction with FHLBank’s audited financial statements and notes thereto, which are included in FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 20, 2020 (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. Out-of-Period Adjustment: Included in net income for the nine months ended September 30, 2019 was an out-of-period adjustment of $14,336,000 , of which $2,545,000 related to income that should have been recorded during the three months ended March 31, 2019. 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. Consequently, available-for-sale interest income was understated by $2,545,000 for the three months ended March 31, 2019. 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. 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 and the fair value of derivatives. 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. Allowance for Credit Losses: Beginning January 1, 2020, FHLBank adopted new accounting guidance pertaining to the measurement of credit losses on financial instruments that requires a financial asset or group of financial assets measured at amortized cost to be presented at the net amount expected to be collected. The new guidance also requires credit losses relating to these financial instruments as well as available-for-sale securities to be recorded through an allowance for credit losses. Key changes as compared to prior accounting guidance are detailed below. Consistent with the modified retrospective method of adoption, the prior period has not been revised to conform to the new basis of accounting. See Note 1 of the Notes to the Financial Statements included in the annual report on Form 10-K for information on the prior accounting treatment. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. These investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which FHLBank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See Note 3 for details on the allowance methodologies relating to these investments. Investment Securities: Available for Sale: For securities classified as available-for-sale, FHLBank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, FHLBank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, FHLBank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings as net gains (losses) on available-for-sale securities. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss) (OCI). Held-to-Maturity: Securities that FHLBank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. See Note 3 for details on the allowance methodologies relating to available-for-sale and held-to-maturity securities. Advances: Advances are carried at amortized cost, which is original cost adjusted for periodic principal repayments, amortization of premiums, accretion of discounts, and fair value hedge adjustments. Accrued interest receivable is recorded separately on the Statements of Condition. Advances are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. See Note 4 for details on the allowance methodology relating to advances. Mortgage Loans Held for Portfolio: Mortgage loans held for portfolio are recorded at amortized cost, which is original cost adjusted for periodic principal repayments, amortization of premiums, accretion of discounts, hedging adjustments, other fees, and direct write-downs. Accrued interest receivable is recorded separately on the Statements of Condition. FHLBank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, FHLBank measures the estimated loss over the remaining life of a mortgage loan, which also considers how credit enhancements mitigate credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as FHLBank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status. FHLBank does not purchase mortgage loans with credit deterioration present at the time of purchase. FHLBank includes estimates of expected recoveries within the allowance for credit losses. See Note 5 for details on the allowance methodologies relating to mortgage loans. Off-Balance Sheet Credit Exposures: FHLBank evaluates off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding adjustment to the provision (reversal) for credit losses. See Note 13 for details on the allowance methodologies relating to off-balance sheet credit exposures. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | 3 Months Ended |
Mar. 31, 2020 | |
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 Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Accounting Standard Update (ASU) 2020-04) . In March 2020, the Financial Accounting Standards Board (FASB) issued temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The transactions primarily include: (1) contract modifications; (2) hedging relationships; and (3) sale or transfer of debt securities classified as held-to-maturity. This guidance was effective immediately for FHLBank, and the amendments may be applied prospectively through December 31, 2022. FHLBank is in the process of evaluating the guidance, and its effect on FHLBank's financial condition, results of operations and cash flows has not yet been determined. 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 were effective January 1, 2020 for FHLBank. The adoption of this guidance did not materially impact 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 FHLBank, and will be applied retrospectively for all comparative periods presented. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact 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 were effective January 1, 2020 for FHLBank. The adoption of this guidance did not have an impact on the disclosures related to fair value measurements and did not impact 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 became effective for FHLBank on January 1, 2020 and was applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings. Adoption of this guidance did not materially impact FHLBank’s financial condition, results of operations, or cash flows. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENTS FHLBank's investment portfolio consists of interest-bearing deposits, securities purchased under agreements to resell, Federal funds sold, and debt securities. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of March 31, 2020 , approximately 49 percent of these investments were with unrated counterparties. Federal funds sold are unsecured loans that are generally transacted on an overnight term. Federal Housing Finance Agency (FHFA) regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of March 31, 2020 and December 31, 2019 , all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of March 31, 2020 and December 31, 2019 . Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $362,000 and $4,000 , respectively, as of March 31, 2020 , and $589,000 and $30,000 , respectively, as of December 31, 2019 . Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with their counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of March 31, 2020 and December 31, 2019 . The carrying value of securities purchased under agreements excludes accrued interest receivable of $4,000 and $424,000 as of March 31, 2020 and December 31, 2019 , respectively. Debt Securities: FHLBank invests in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. FHLBank is prohibited by FHFA regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities and instruments that experienced credit deterioration after their purchase by FHLBank. FHLBank's debt securities include the following major security types, which are based on the issuer and the risk characteristics of the security: ▪ Certificates of deposit - unsecured negotiable promissory notes issued by banks; ▪ U.S. Treasury obligations - sovereign debt of the United States; ▪ GSE obligations - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government; ▪ State or local housing agency obligations - municipal bonds issued by housing finance agencies; ▪ U.S. obligation MBS - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and ▪ GSE MBS - single-family and multifamily MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac). Trading Securities: Trading securities by major security type as of March 31, 2020 and December 31, 2019 are summarized in Table 3.1 (in thousands): Table 3.1 Fair Value 03/31/2020 12/31/2019 Non-mortgage-backed securities: Certificates of deposit $ 275,055 $ — U.S. Treasury obligations 1,570,261 1,530,518 GSE obligations 433,576 416,025 Non-mortgage-backed securities 2,278,892 1,946,543 Mortgage-backed securities: GSE MBS 899,099 866,019 Mortgage-backed securities 899,099 866,019 TOTAL $ 3,177,991 $ 2,812,562 Net gains (losses) on trading securities during the three months ended March 31, 2020 and 2019 are shown in Table 3.2 (in thousands): Table 3.2 Three Months Ended 03/31/2020 03/31/2019 Net gains (losses) on trading securities held as of March 31, 2020 $ 94,203 $ 28,659 Net gains (losses) on trading securities sold or matured prior to March 31, 2020 186 96 NET GAINS (LOSSES) ON TRADING SECURITIES $ 94,389 $ 28,755 Available-for-sale Securities: Available-for-sale securities by major security type as of March 31, 2020 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $28,429,000 as of March 31, 2020 . Table 3.3 03/31/2020 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,352,488 $ 2,192 $ (984 ) $ 4,353,696 Non-mortgage-backed securities 4,352,488 2,192 (984 ) 4,353,696 Mortgage-backed securities: GSE MBS 3,240,951 15,094 (83,645 ) 3,172,400 Mortgage-backed securities 3,240,951 15,094 (83,645 ) 3,172,400 TOTAL $ 7,593,439 $ 17,286 $ (84,629 ) $ 7,526,096 Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $30,321,000 as of December 31, 2019 . Table 3.4 12/31/2019 Amortized Gross Gross Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,258,608 $ 3,580 $ (397 ) $ 4,261,791 Non-mortgage-backed securities 4,258,608 3,580 (397 ) 4,261,791 Mortgage-backed securities: GSE MBS 2,897,104 28,353 (4,748 ) 2,920,709 Mortgage-backed securities 2,897,104 28,353 (4,748 ) 2,920,709 TOTAL $ 7,155,712 $ 31,933 $ (5,145 ) $ 7,182,500 Table 3.5 summarizes the available-for-sale securities with unrealized losses as of March 31, 2020 (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 03/31/2020 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 $ 1,238,322 $ (452 ) $ 324,054 $ (532 ) $ 1,562,376 $ (984 ) Non-mortgage-backed securities 1,238,322 (452 ) 324,054 (532 ) 1,562,376 (984 ) Mortgage-backed securities: GSE MBS 1,973,210 (73,832 ) 318,933 (9,813 ) 2,292,143 (83,645 ) Mortgage-backed securities 1,973,210 (73,832 ) 318,933 (9,813 ) 2,292,143 (83,645 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 3,211,532 $ (74,284 ) $ 642,987 $ (10,345 ) $ 3,854,519 $ (84,629 ) Table 3.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 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 3.6 12/31/2019 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 $ 1,579,004 $ (397 ) $ — $ — $ 1,579,004 $ (397 ) Non-mortgage-backed securities 1,579,004 (397 ) — — 1,579,004 (397 ) Mortgage-backed securities: GSE MBS 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) Mortgage-backed securities 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 2,366,813 $ (1,329 ) $ 301,161 $ (3,816 ) $ 2,667,974 $ (5,145 ) The amortized cost and fair values of available-for-sale securities by contractual maturity as of March 31, 2020 and December 31, 2019 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 03/31/2020 12/31/2019 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 1,268,884 $ 1,269,148 $ 754,003 $ 753,891 Due after one year through five years 3,083,604 3,084,548 3,504,605 3,507,900 Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 4,352,488 4,353,696 4,258,608 4,261,791 Mortgage-backed securities 3,240,951 3,172,400 2,897,104 2,920,709 TOTAL $ 7,593,439 $ 7,526,096 $ 7,155,712 $ 7,182,500 Net gains (losses) realized on the sale of available-for-sale securities are recorded in other income (loss) on the Statements of Income. Table 3.8 presents details of the sales for the three months ended March 31, 2020 (in thousands). There were no sales of available-for-sale securities during the three months ended March 31, 2019 . Table 3.8 Three Months Ended 03/31/2020 Proceeds from sale of available-for-sale securities $ 289,045 Gross gains on sale of available-for-sale securities $ 1,526 Gross losses on sale of available-for-sale securities (3 ) NET GAINS (LOSSES) ON SALE OF AVAILABLE-FOR-SALE SECURITIES $ 1,523 Held-to-maturity Securities: Held-to-maturity securities by major security type as of March 31, 2020 are summarized in Table 3.9 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $3,576,000 as of March 31, 2020 . Table 3.9 03/31/2020 Amortized Cost Net Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 2 $ (1,496 ) $ 81,311 Non-mortgage-backed securities 82,805 82,805 2 (1,496 ) 81,311 Mortgage-backed securities: U.S. obligation MBS 89,563 89,563 — (1,123 ) 88,440 GSE MBS 3,168,970 3,168,970 4,379 (23,469 ) 3,149,880 Mortgage-backed securities 3,258,533 3,258,533 4,379 (24,592 ) 3,238,320 TOTAL $ 3,341,338 $ 3,341,338 $ 4,381 $ (26,088 ) $ 3,319,631 Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 3.10 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $4,324,000 as of December 31, 2019 . Table 3.10 12/31/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 5 $ (1,956 ) $ 80,854 Non-mortgage-backed securities 82,805 82,805 5 (1,956 ) 80,854 Mortgage-backed securities: U.S. obligation MBS 93,375 93,375 — (496 ) 92,879 GSE MBS 3,393,778 3,393,778 6,558 (17,131 ) 3,383,205 Mortgage-backed securities 3,487,153 3,487,153 6,558 (17,627 ) 3,476,084 TOTAL $ 3,569,958 $ 3,569,958 $ 6,563 $ (19,583 ) $ 3,556,938 The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of March 31, 2020 and December 31, 2019 are shown in Table 3.11 (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 3.11 03/31/2020 12/31/2019 Amortized Cost Net 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 82,805 82,805 81,311 82,805 82,805 80,854 Non-mortgage-backed securities 82,805 82,805 81,311 82,805 82,805 80,854 Mortgage-backed securities 3,258,533 3,258,533 3,238,320 3,487,153 3,487,153 3,476,084 TOTAL $ 3,341,338 $ 3,341,338 $ 3,319,631 $ 3,569,958 $ 3,569,958 $ 3,556,938 Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. FHLBank adopted new accounting guidance for the measurement of credit losses on financial instruments on January 1, 2020. See Note 2 for additional information. During the three months ended March 31, 2020 , FHLBank did no t recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments. To evaluate investment securities for credit loss as of March 31, 2020 , FHLBank employed the following methodologies, based on the type of security. FHLBank's available-for-sale and held-to-maturity securities are principally certificates of deposit, U.S. obligations, GSE obligations, state or local housing agency obligations, and MBS issued by Ginnie Mae, Freddie Mac, and Fannie Mae that are backed by single-family or multifamily mortgage loans. FHLBank only purchases securities considered investment quality. As of March 31, 2020 , all of FHLBank's available-for-sale securities and held-to-maturity securities were rated single-A or above by an NRSRO, based on the lowest long-term credit rating for each security. These may differ from any internal ratings of the securities, if applicable. FHLBank evaluates available-for-sale securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). As of March 31, 2020 , certain available-for-sale securities were in an unrealized loss position. These losses are considered temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis. Further, FHLBank has not experienced any payment defaults on the instruments. In addition, all of these securities carry an implicit or explicit government guarantee. As a result, no allowance for credit losses was recorded on these available-for-sale securities as of March 31, 2020 . FHLBank evaluates its held-to-maturity securities for impairment on a collective or pooled basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. As of March 31, 2020 , FHLBank had no t established an allowance for credit loss on any held-to-maturity securities because the securities: (1) were all highly-rated and/or had short remaining terms to maturity; (2) had not experienced, nor did FHLBank expect, any payment default on the instruments; and (3) in the case of U.S. or GSE obligations, carry an implicit or explicit government guarantee such that FHLBank considers the risk of nonpayment to be zero. |
Advances
Advances | 3 Months Ended |
Mar. 31, 2020 | |
Advances [Abstract] | |
Advances | ADVANCES General Terms: FHLBank offers a wide range of fixed and variable rate advance products with different maturities, interest rates, payment characteristics and optionality. As of March 31, 2020 and December 31, 2019 , FHLBank had advances outstanding at interest rates ranging from 0.09 percent to 7.41 percent and 0.96 percent to 7.41 percent, respectively. Table 4.1 presents advances summarized by redemption term as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands). Carrying amounts exclude accrued interest receivable of $40,265,000 and $45,637,000 as of March 31, 2020 and December 31, 2019 , respectively. Table 4.1 03/31/2020 12/31/2019 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 12,856,757 1.11 % $ 13,188,118 1.88 % Due after one year through two years 2,640,111 1.85 10,448,433 1.96 Due after two years through three years 1,240,159 1.95 1,254,153 2.27 Due after three years through four years 1,130,479 2.24 1,067,662 2.42 Due after four years through five years 1,568,352 1.79 1,208,854 2.22 Thereafter 11,919,990 1.63 3,004,835 2.25 Total par value 31,355,848 1.48 % 30,172,055 1.99 % Discounts (5,688 ) (1,807 ) Hedging adjustments 327,923 71,067 TOTAL $ 31,678,083 $ 30,241,315 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 FHLBank to convert an advance from one interest payment term structure to another. When issuing convertible advances, FHLBank purchases put options from a member that allow 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 March 31, 2020 and December 31, 2019 (in thousands): Table 4.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 03/31/2020 12/31/2019 03/31/2020 12/31/2019 Due in one year or less $ 24,917,487 $ 24,271,238 $ 13,878,057 $ 14,053,068 Due after one year through two years 853,053 1,133,077 2,786,661 10,637,833 Due after two years through three years 776,494 728,429 1,583,159 1,524,153 Due after three years through four years 839,249 764,990 1,272,229 1,215,412 Due after four years through five years 982,582 686,594 1,663,752 1,304,254 Thereafter 2,986,983 2,587,727 10,171,990 1,437,335 TOTAL PAR VALUE $ 31,355,848 $ 30,172,055 $ 31,355,848 $ 30,172,055 Interest Rate Payment Terms : Table 4.3 details additional interest rate payment terms for advances as of March 31, 2020 and December 31, 2019 (in thousands): Table 4.3 Redemption Term 03/31/2020 12/31/2019 Fixed rate: Due in one year or less $ 3,057,383 $ 2,691,528 Due after one year 6,453,279 5,912,124 Total fixed rate 9,510,662 8,603,652 Variable rate: Due in one year or less 9,799,374 10,496,590 Due after one year 12,045,812 11,071,813 Total variable rate 21,845,186 21,568,403 TOTAL PAR VALUE $ 31,355,848 $ 30,172,055 Credit Risk Exposure and Security Terms: FHLBank's advances are primarily made to member financial institutions, including commercial banks and insurance companies. FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. In addition, FHLBank lends to eligible borrowers in accordance with federal law and FHFA regulations. Specifically, FHLBank is required to obtain sufficient collateral to fully secure credit products up to the counterparty’s total credit limit. Collateral eligible to secure new or renewed advances includes: ▪ One-to-four family and multifamily mortgage loans (delinquent for no more than 90 days) and securities representing such mortgages; ▪ Loans and securities issued, insured, or guaranteed by the U.S. government or any U.S. government agency (for example, MBS issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae); ▪ Cash or deposits in FHLBank; ▪ Certain other collateral that is real estate-related, provided that the collateral has a readily ascertainable value and that FHLBank can perfect a security interest in it; and ▪ Certain qualifying securities representing undivided equity interests in eligible advance collateral. Residential mortgage loans are the principal form of collateral for advances. The estimated value of the collateral required to secure each member's credit products is calculated by applying collateral discounts, or haircuts, to the market value or unpaid principal balance of the collateral, as applicable. In addition, community financial institutions are eligible to use expanded statutory collateral provisions for small business, agriculture loans, and community development loans. FHLBank capital stock owned by each borrower is also pledged as collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition, and performance; borrowing capacity; and overall credit exposure to the borrower. FHLBank can also require additional or substitute collateral to protect its security interest. FHLBanks also have policies and procedures for validating the reasonableness of their collateral valuations. In addition, collateral verifications and on-site reviews are performed by FHLBank based on the risk profile of the borrower. FHLBank management believes that these policies effectively manage credit risk from advances. FHLBank either allows a borrower to retain physical possession of the collateral assigned to it, or requires the borrower to specifically assign or place physical possession of the collateral with FHLBank or its safekeeping agent. FHLBank perfects its security interest in all pledged collateral. The Federal Home Loan Bank Act of 1932, as amended, (Bank Act) states that any security interest granted to an FHLBank by a borrower will have priority over the claims or rights of any other party, except for claims or rights of a third party that would be entitled to priority under otherwise applicable law and are held by a bona fide purchaser for value or by a secured party holding a prior perfected security interest. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the types and level of collateral to be the primary indicator of credit quality on advances. As of March 31, 2020 and December 31, 2019 , FHLBank had rights to collateral on a borrower-by-borrower basis with an estimated value greater than its outstanding advances. FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. As of March 31, 2020 and December 31, 2019 , no advances were past due, on non-accrual status, or considered impaired. In addition, there were no troubled debt restructurings related to advances during the three months ended March 31, 2020 and 2019 . Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no losses are expected on advances as of March 31, 2020 , and therefore no allowance for credit losses on advances was recorded. For the same reasons, FHLBank did no t record any allowance for credit losses on advances as of December 31, 2019 . |
Mortgage Loans
Mortgage Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Mortgage Loans | MORTGAGE LOANS Mortgage loans held for portfolio consist of loans obtained through the MPF Program and are either conventional mortgage loans or government-guaranteed or -insured mortgage loans. Under the MPF Program, the FHLBank purchases single-family mortgage loans that are originated or acquired by participating financial institutions (PFIs). These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies. Mortgage Loans Held for Portfolio: Table 5.1 presents information as of March 31, 2020 and December 31, 2019 on mortgage loans held for portfolio (in thousands). Mortgage loans held for portfolio excludes accrued interest receivable of $54,348,000 and $52,358,000 as of March 31, 2020 and December 31, 2019 , respectively. Table 5.1 03/31/2020 12/31/2019 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,408,353 $ 1,347,385 Fixed rate, long-term, single-family mortgages 9,450,297 9,128,268 Total unpaid principal balance 10,858,650 10,475,653 Premiums 162,466 155,793 Discounts (2,347 ) (2,503 ) Deferred loan costs, net 174 184 Other deferred fees (36 ) (38 ) Hedging adjustments 5,729 4,905 Total before Allowance for Credit Losses on Mortgage Loans 11,024,636 10,633,994 Allowance for Credit Losses on Mortgage Loans 2 (6,468 ) (985 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 11,018,168 $ 10,633,009 1 Medium-term defined as a term of 15 years or less at origination. 2 Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5 ). Table 5.2 presents information as of March 31, 2020 and December 31, 2019 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands): Table 5.2 03/31/2020 12/31/2019 Conventional loans $ 10,247,783 $ 9,849,542 Government-guaranteed or -insured loans 610,867 626,111 TOTAL UNPAID PRINCIPAL BALANCE $ 10,858,650 $ 10,475,653 Credit Enhancements: FHLBank's allowance for credit losses considers the credit enhancements associated with conventional mortgage loans under the MPF Program. Credit enhancements may include primary mortgage insurance, supplemental mortgage insurance and the credit enhancement amount plus any recoverable performance-based credit enhancement fees (for certain MPF loans). Potential recoveries from credit enhancements for conventional loans are evaluated at the individual master commitment level to determine the credit enhancements available to recover losses on loans under each individual master commitment. Conventional MPF loans held for portfolio are required to be credit enhanced as determined through the use of a validated model so that the risk of loss is limited to the losses within FHLBank's risk tolerance. FHLBank and its PFIs share the risk of credit losses on conventional loans, by structuring potential losses into layers with respect to each master commitment. After considering the borrower’s equity and any primary mortgage insurance, credit losses on mortgage loans in a master commitment are then absorbed by FHLBank’s First Loss Account. If applicable to the MPF product, FHLBank will withhold a PFI’s scheduled performance-based credit enhancement fee in order to reimburse FHLBank for any losses allocated to the First Loss Account. If the First Loss Account is exhausted, the credit losses are then absorbed by the PFI up to an agreed upon credit enhancement amount. Thereafter, any remaining credit losses are absorbed by FHLBank. Payment Status of Mortgage Loans: Payment status is the key credit quality indicator for conventional mortgage loans and allows FHLBank to monitor the migration of past due loans. Past due loans are those where the borrower has failed to make timely payments of principal and/or interest in accordance with the terms of the loan. Other delinquency statistics include non-accrual loans and loans in process of foreclosure. Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of March 31, 2020 (dollar amounts in thousands): Table 5.3 03/31/2020 Conventional Loans Government Loans Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 26,537 $ 4,645 $ 7,718 $ 8,670 $ 11,031 $ — $ 58,601 $ 15,284 $ 73,885 Past due 60-89 days delinquent 6,883 607 1,209 873 912 — 10,484 5,485 15,969 Past due 90 days or more delinquent 5,697 825 1,278 3,237 — — 11,037 7,701 18,738 Total past due 39,117 6,077 10,205 12,780 11,943 — 80,122 28,470 108,592 Total current loans 2,702,728 869,155 1,080,872 1,307,221 3,668,111 697,256 10,325,343 590,701 10,916,044 Total mortgage loans $ 2,741,845 $ 875,232 $ 1,091,077 $ 1,320,001 $ 3,680,054 $ 697,256 $ 10,405,465 $ 619,171 $ 11,024,636 Other delinquency statistics: In process of foreclosure 2 $ 3,441 $ 2,922 $ 6,363 Serious delinquency rate 3 0.1 % 1.2 % 0.2 % Past due 90 days or more and still accruing interest $ — $ 7,701 $ 7,701 Loans on non-accrual status 4 $ 15,157 $ — $ 15,157 1 Excludes accrued interest receivable. 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 $1,361,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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 5.4 presents the payment status based on recorded investment as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2019 (dollar amounts in thousands): Table 5.4 12/31/2019 Conventional Loans Government Loans Total Recorded investment: 1 Past due 30-59 days delinquent $ 59,226 $ 15,515 $ 74,741 Past due 60-89 days delinquent 7,561 6,128 13,689 Past due 90 days or more delinquent 11,813 8,778 20,591 Total past due 78,600 30,421 109,021 Total current loans 9,969,930 607,400 10,577,330 Total recorded investment $ 10,048,530 $ 637,821 $ 10,686,351 Other delinquency statistics: In process of foreclosure 2 $ 3,352 $ 2,730 $ 6,082 Serious delinquency rate 3 0.1 % 1.4 % 0.1 % Past due 90 days or more and still accruing interest $ — $ 8,778 $ 8,778 Loans on non-accrual status 4 $ 14,923 $ — $ 14,923 1 Includes accrued interest receivable. 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 $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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. Allowance for Credit Losses: Conventional Mortgage Loans: Conventional loans are evaluated collectively when similar risk characteristics exists. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a model that discounts projected cash flows to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior experience. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses. Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or using third party estimates or property valuation model(s). The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance, if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses. FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three months ended March 31, 2020 and 2019 . Table 5.5 Three Months Ended 03/31/2020 03/31/2019 Balance, beginning of the period $ 985 $ 812 Adjustment for cumulative effect of accounting change 6,123 — Net (charge-offs) recoveries 96 (66 ) Provision (reversal) for credit losses (736 ) 78 Balance, end of the period $ 6,468 $ 824 Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed-rate mortgage loans that are insured or guaranteed 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. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Any losses on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicer. Therefore, FHLBank only has credit risk for these loans if the servicer fails to pay for losses not covered by the guarantee or insurance. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial, consequently, no allowance for credit losses for government-guaranteed or -insured mortgage loans was recorded as of March 31, 2020 or December 31, 2019 . Furthermore, no ne of these mortgage loans has been placed on non-accrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met. |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of March 31, 2020 and December 31, 2019 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 6.1 03/31/2020 12/31/2019 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 18,927,900 $ 25,165 $ 291,756 $ 16,448,512 $ 23,462 $ 80,398 Total derivatives designated as hedging relationships 18,927,900 25,165 291,756 16,448,512 23,462 80,398 Derivatives not designated as hedging instruments: Interest rate swaps 2,731,000 362 75,061 3,099,622 736 26,285 Interest rate caps/floors 762,500 262 — 1,130,000 117 — Mortgage delivery commitments 910,677 934 7,798 221,800 495 25 Total derivatives not designated as hedging instruments 4,404,177 1,558 82,859 4,451,422 1,348 26,310 TOTAL $ 23,332,077 26,723 374,615 $ 20,899,934 24,810 106,708 Netting adjustments and cash collateral 1 176,726 (366,045 ) 129,994 (106,506 ) DERIVATIVE ASSETS AND LIABILITIES $ 203,449 $ 8,570 $ 154,804 $ 202 1 Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019 , respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019 , respectively. FHLBank carries derivative instruments at fair value on its Statements of Condition. 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. Gains (losses) on fair value hedges include unrealized changes in fair value as well as net interest settlements. For the three months ended March 31, 2020 and 2019 , FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.2 (in thousands): Table 6.2 Three Months Ended 03/31/2020 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 130,887 $ 24,294 $ 92,951 $ 150,742 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (260,132 ) $ (360,283 ) $ 18,523 $ 45,446 Hedged items 2 256,842 344,143 (15,690 ) (39,825 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (3,290 ) $ (16,140 ) $ 2,833 $ 5,621 3/31/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 187,609 $ 15,396 $ 148,991 $ 158,157 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (33,072 ) $ (44,192 ) $ 32 $ 9,705 Hedged items 2 39,502 42,113 (30 ) (13,549 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 6,430 $ (2,079 ) $ 2 $ (3,844 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. Table 6.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of March 31, 2020 and December 31, 2019 (in thousands): Table 6.3 03/31/2020 Line Item in Statements 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 $ 5,568,718 $ 323,770 $ 4,153 $ 327,923 Available-for-sale securities 7,593,439 420,968 — 420,968 Consolidated obligation discount notes (3,993,727 ) (15,540 ) — (15,540 ) Consolidated obligation bonds (2,757,036 ) (66,215 ) — (66,215 ) 12/31/2019 Line Item in Statements 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 $ 4,951,445 $ 69,643 $ 1,424 $ 71,067 Available-for-sale securities 7,155,712 79,141 — 79,141 Consolidated obligation bonds (3,270,635 ) (26,389 ) — (26,389 ) 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 6.4 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). Table 6.4 Three Months Ended 03/31/2020 03/31/2019 Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (111,715 ) $ (19,185 ) Interest rate caps/floors 145 (626 ) Net interest settlements (5,154 ) (296 ) Mortgage delivery commitments (5,528 ) 1,635 Consolidated obligation discount note commitments — (70 ) NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (122,252 ) $ (18,542 ) 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 $617,000 and $211,000 as of March 31, 2020 and December 31, 2019 , respectively. The counterparty was different for each period . For uncleared derivative transactions, 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. 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. FHLBank was not required to post additional initial margin by its clearing agents as of March 31, 2020 and December 31, 2019 . FHLBank’s net exposure on derivative agreements is presented in Note 9 . |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | DEPOSITS FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. Table 7.1 details the types of deposits held by FHLBank as of March 31, 2020 and December 31, 2019 (in thousands): Table 7.1 03/31/2020 12/31/2019 Interest-bearing: Demand $ 433,061 $ 383,197 Overnight 365,400 280,300 Term 1,000 — Total interest-bearing 799,461 663,497 Non-interest-bearing: Other 175,936 127,143 Total non-interest-bearing 175,936 127,143 TOTAL DEPOSITS $ 975,397 $ 790,640 |
Consolidated Obligations
Consolidated Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | CONSOLIDATED OBLIGATIONS Consolidated Obligation Bonds: Table 8.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands): Table 8.1 03/31/2020 12/31/2019 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 17,467,750 1.11 % $ 15,991,800 1.79 % Due after one year through two years 5,970,950 1.66 6,318,350 1.90 Due after two years through three years 1,758,400 2.01 1,375,000 2.11 Due after three years through four years 1,017,200 2.11 1,285,900 2.39 Due after four years through five years 1,367,700 2.02 1,223,350 2.40 Thereafter 6,052,300 2.52 5,776,300 2.78 Total par value 33,634,300 1.58 % 31,970,700 2.05 % Premiums 50,201 34,789 Discounts (3,858 ) (3,357 ) Concession fees (16,803 ) (15,207 ) Hedging adjustments 66,215 26,389 TOTAL $ 33,730,055 $ 32,013,314 FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of FHLBank on predetermined call dates in accordance with terms of bond offerings. The FHLBank’s participation in consolidated obligation bonds outstanding as of March 31, 2020 and December 31, 2019 includes callable bonds totaling $8,161,500,000 and $8,891,500,000 , respectively. 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, FHLBank also enters into interest rate swap agreements (in which 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 FHLBank to obtain attractively priced variable rate financing. Table 8.2 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 March 31, 2020 and December 31, 2019 (in thousands): Table 8.2 Year of Maturity or Next Call Date 03/31/2020 12/31/2019 Due in one year or less $ 25,629,250 $ 24,583,300 Due after one year through two years 5,495,950 5,148,350 Due after two years through three years 938,400 615,000 Due after three years through four years 493,700 682,400 Due after four years through five years 456,200 356,850 Thereafter 620,800 584,800 TOTAL PAR VALUE $ 33,634,300 $ 31,970,700 Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of March 31, 2020 and December 31, 2019 (in thousands): Table 8.3 03/31/2020 12/31/2019 Simple variable rate $ 18,038,000 $ 16,017,000 Fixed rate 15,546,300 15,573,700 Step 50,000 110,000 Variable rate with cap — 220,000 Fixed to variable rate — 50,000 TOTAL PAR VALUE $ 33,634,300 $ 31,970,700 Consolidated Discount Notes: Table 8.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 8.4 Book Value Par Value Weighted Average Interest Rate 1 March 31, 2020 $ 25,563,980 $ 25,586,959 1.17 % December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % 1 Represents yield to maturity excluding concession fees. |
Assets and Liabilities Subject
Assets and Liabilities Subject to Offsetting | 3 Months Ended |
Mar. 31, 2020 | |
Offsetting [Abstract] | |
Assets and Liabilities Subject to Offsetting | ASSETS AND LIABILITIES SUBJECT TO OFFSETTING 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, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. 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, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. Tables 9.1 and 9.2 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 March 31, 2020 and December 31, 2019 (in thousands): Table 9.1 03/31/2020 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Condition Net Amounts of Assets Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 22,162 $ (19,823 ) $ 2,339 $ (934 ) $ 1,405 Cleared derivatives 4,561 196,549 201,110 — 201,110 Total derivative assets 26,723 176,726 203,449 (934 ) 202,515 Securities purchased under agreements to resell 2,700,000 — 2,700,000 (2,700,000 ) — TOTAL $ 2,726,723 $ 176,726 $ 2,903,449 $ (2,700,934 ) $ 202,515 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 9.2 12/31/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Condition Net Amounts of Assets Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 21,749 $ (14,424 ) $ 7,325 $ (495 ) $ 6,830 Cleared derivatives 3,061 144,418 147,479 — 147,479 Total derivative assets 24,810 129,994 154,804 (495 ) 154,309 Securities purchased under agreements to resell 4,750,000 — 4,750,000 (4,750,000 ) — TOTAL $ 4,774,810 $ 129,994 $ 4,904,804 $ (4,750,495 ) $ 154,309 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 9.3 and 9.4 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 March 31, 2020 and December 31, 2019 (in thousands): Table 9.3 03/31/2020 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 370,366 $ (361,796 ) $ 8,570 $ (7,798 ) $ 772 Cleared derivatives 4,249 (4,249 ) — — — Total derivative liabilities 374,615 (366,045 ) 8,570 (7,798 ) 772 TOTAL $ 374,615 $ (366,045 ) $ 8,570 $ (7,798 ) $ 772 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 9.4 12/31/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 105,468 $ (105,266 ) $ 202 $ (25 ) $ 177 Cleared derivatives 1,240 (1,240 ) — — — Total derivative liabilities 106,708 (106,506 ) 202 (25 ) 177 TOTAL $ 106,708 $ (106,506 ) $ 202 $ (25 ) $ 177 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 | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Capital | CAPITAL Capital Requirements: FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the FHFA's capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock. • Risk-based capital. 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 FHLBank to satisfy its risk-based capital requirement. The FHFA may require 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 FHLBank to date. • Total regulatory capital. The GLB Act requires 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. 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 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands): Table 10.1 03/31/2020 12/31/2019 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 407,775 $ 2,335,377 $ 486,650 $ 2,319,531 Total regulatory capital-to-asset ratio 4.0 % 4.4 % 4.0 % 4.4 % Total regulatory capital $ 2,527,581 $ 2,785,298 $ 2,531,066 $ 2,768,680 Leverage capital ratio 5.0 % 6.3 % 5.0 % 6.2 % Leverage capital $ 3,159,476 $ 3,952,986 $ 3,163,833 $ 3,928,446 Mandatorily Redeemable Capital Stock: FHLBank is a cooperative whose members own most of 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 FHLBank's Statements of Condition. Shares cannot be purchased or sold except between 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, 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 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three months ended March 31, 2020 and 2019 (in thousands): Table 10.2 Three Months Ended 03/31/2020 03/31/2019 Balance, beginning of period $ 2,415 $ 3,597 Capital stock subject to mandatory redemption reclassified from equity during the period 305,957 23,915 Capital stock redemption cancellations reclassified to equity during the period (100,647 ) — Redemption or repurchase of mandatorily redeemable capital stock during the period (205,359 ) (24,006 ) Stock dividend classified as mandatorily redeemable capital stock during the period 24 42 Balance, end of period $ 2,390 $ 3,548 Table 10.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of March 31, 2020 and December 31, 2019 (in thousands). The year of redemption in Table 10.3 is the end of the redemption period in accordance with FHLBank’s capital plan. 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 FHLBank receives notice for withdrawal from the member. Additionally, 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, 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 10.3 Contractual Year of Repurchase 03/31/2020 12/31/2019 Year 1 $ — $ — Year 2 1 1 Year 3 868 869 Year 4 — — Year 5 — — Past contractual redemption date due to remaining activity 1 1,521 1,545 TOTAL $ 2,390 $ 2,415 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 FHLBank to create excess member stock under certain circumstances. For example, 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 March 31, 2020 , 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, that FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA is required to provide an FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent review by the FHFA, FHLBank Topeka was classified as adequately capitalized . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Table 11.1 summarizes the changes in AOCI for the three months ended March 31, 2020 and 2019 (in thousands): Table 11.1 Three Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Defined Benefit Pension Plan Total AOCI Balance at December 31, 2018 $ 19,068 $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 11,848 11,848 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 73 73 Net current period other comprehensive income (loss) 11,848 73 11,921 Balance at March 31, 2019 $ 30,916 $ (3,302 ) $ 27,614 Balance at December 31, 2019 $ 26,788 $ (2,002 ) $ 24,786 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (92,608 ) (92,608 ) Reclassifications from other comprehensive income (loss) to net income: Realized net (gains) losses included in net income 2 (1,523 ) (1,523 ) Amortization of net losses - defined benefit pension plan 1 26 26 Net current period other comprehensive income (loss) (94,131 ) 26 (94,105 ) Balance at March 31, 2020 $ (67,343 ) $ (1,976 ) $ (69,319 ) 1 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). 2 Recorded in “Net gains (losses) on sale of available-for-sale securities” non-interest income on the Statements of Income. Amount represents a credit (increase to other income (loss)). |
Fair Values
Fair Values | 3 Months Ended |
Mar. 31, 2020 | |
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 FHLBank using available market and other pertinent information and reflect 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 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 March 31, 2020 and December 31, 2019 . Additionally, these values do not represent an estimate of the overall market value of 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 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. 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 FHLBank can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 Inputs – 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. 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 months ended March 31, 2020 and 2019 . Tables 12.1 and 12.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of March 31, 2020 and December 31, 2019 . 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. 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 12.3 and 12.4 . The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of March 31, 2020 and December 31, 2019 are summarized in Tables 12.1 and 12.2 (in thousands): Table 12.1 03/31/2020 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 451,670 $ 451,670 $ 451,670 $ — $ — $ — Interest-bearing deposits 1,196,813 1,196,813 — 1,196,813 — — Securities purchased under agreements to resell 2,700,000 2,700,000 — 2,700,000 — — Federal funds sold 1,655,000 1,655,000 — 1,655,000 — — Trading securities 3,177,991 3,177,991 — 3,177,991 — — Available-for-sale securities 7,526,096 7,526,096 — 7,526,096 — — Held-to-maturity securities 3,341,338 3,319,631 — 3,238,320 81,311 — Advances 31,678,083 31,730,957 — 31,730,957 — — Mortgage loans held for portfolio, net of allowance 11,018,168 11,584,130 — 11,582,673 1,457 — Accrued interest receivable 143,873 143,873 — 143,873 — — Derivative assets 203,449 203,449 — 26,723 — 176,726 Liabilities: Deposits 975,397 975,397 — 975,397 — — Consolidated obligation discount notes 25,563,980 25,582,865 — 25,582,865 — — Consolidated obligation bonds 33,730,055 33,926,405 — 33,926,405 — — Mandatorily redeemable capital stock 2,390 2,390 2,390 — — — Accrued interest payable 87,799 87,799 — 87,799 — — Derivative liabilities 8,570 8,570 — 374,615 — (366,045 ) Other Asset (Liability): Industrial revenue bonds 35,000 36,936 — 36,936 — — Financing obligation payable (35,000 ) (36,936 ) — (36,936 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow 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 12.2 12/31/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 1,917,166 $ 1,917,166 $ 1,917,166 $ — $ — $ — Interest-bearing deposits 921,453 921,453 — 921,453 — — Securities purchased under agreements to resell 4,750,000 4,750,000 — 4,750,000 — — Federal funds sold 850,000 850,000 — 850,000 — — Trading securities 2,812,562 2,812,562 — 2,812,562 — — Available-for-sale securities 7,182,500 7,182,500 — 7,182,500 — — Held-to-maturity securities 3,569,958 3,556,938 — 3,476,084 80,854 — Advances 30,241,315 30,295,813 — 30,295,813 — — Mortgage loans held for portfolio, net of allowance 10,633,009 10,983,356 — 10,981,458 1,898 — Accrued interest receivable 143,765 143,765 — 143,765 — — Derivative assets 154,804 154,804 — 24,810 — 129,994 Liabilities: Deposits 790,640 790,640 — 790,640 — — Consolidated obligation discount notes 27,447,911 27,448,021 — 27,448,021 — — Consolidated obligation bonds 32,013,314 32,103,154 — 32,103,154 — — Mandatorily redeemable capital stock 2,415 2,415 2,415 — — — Accrued interest payable 117,580 117,580 — 117,580 — — Derivative liabilities 202 202 — 106,708 — (106,506 ) Other Asset (Liability): Industrial revenue bonds 35,000 34,850 — 34,850 — — Financing obligation payable (35,000 ) (34,850 ) — (34,850 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow 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 12.3 and 12.4 present, for each hierarchy level, 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 March 31, 2020 and December 31, 2019 (in thousands). Table 12.3 03/31/2020 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: Certificates of deposit $ 275,055 $ — $ 275,055 $ — $ — U.S. Treasury obligations 1,570,261 — 1,570,261 — — GSE obligations 433,576 — 433,576 — — GSE MBS 899,099 — 899,099 — — Total trading securities 3,177,991 — 3,177,991 — — Available-for-sale securities: U.S. Treasury obligations 4,353,696 — 4,353,696 — — GSE MBS 3,172,400 — 3,172,400 — — Total available-for-sale securities 7,526,096 — 7,526,096 — — Derivative assets: Interest-rate related 202,515 — 25,789 — 176,726 Mortgage delivery commitments 934 — 934 — — Total derivative assets 203,449 — 26,723 — 176,726 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,907,536 $ — $ 10,730,810 $ — $ 176,726 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 772 $ — $ 366,817 $ — $ (366,045 ) Mortgage delivery commitments 7,798 — 7,798 — — Total derivative liabilities 8,570 — 374,615 — (366,045 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 8,570 $ — $ 374,615 $ — $ (366,045 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,463 $ — $ — $ 1,463 $ — Real estate owned 17 — — 17 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 1,480 $ — $ — $ 1,480 $ — 1 Represents the effect of legally enforceable master netting agreements that allow 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 Includes assets adjusted to fair value during the three months ended March 31, 2020 and still outstanding as of March 31, 2020 . Table 12.4 12/31/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,530,518 $ — $ 1,530,518 $ — $ — GSE obligations 416,025 — 416,025 — — GSE MBS 866,019 — 866,019 — — Total trading securities 2,812,562 — 2,812,562 — — Available-for-sale securities: U.S. Treasury obligations 4,261,791 — 4,261,791 — — GSE MBS 2,920,709 — 2,920,709 — — Total available-for-sale securities 7,182,500 — 7,182,500 — — Derivative assets: Interest-rate related 154,309 — 24,315 — 129,994 Mortgage delivery commitments 495 — 495 — — Total derivative assets 154,804 — 24,810 — 129,994 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,149,866 $ — $ 10,019,872 $ — $ 129,994 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 177 $ — $ 106,683 $ — $ (106,506 ) Mortgage delivery commitments 25 — 25 — — Total derivative liabilities 202 — 106,708 — (106,506 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 202 $ — $ 106,708 $ — $ (106,506 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,909 $ — $ — $ 1,909 $ — Real estate owned 144 — — 144 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,053 $ — $ — $ 2,053 $ — 1 Represents the effect of legally enforceable master netting agreements that allow 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 Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019 . |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Joint and Several Liability: As provided in the 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 $1,115,448,699,000 and $966,413,924,000 as of March 31, 2020 and December 31, 2019 , respectively. The joint and several obligations are mandated by FHFA regulations and are not the result of arms-length transactions among FHLBanks. As described above, 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 FHLBank were to determine that a loss was probable and the amount of the loss could be reasonably estimated, FHLBank would charge to income the amount of the expected loss. Based upon the creditworthiness of the other FHLBanks as of March 31, 2020 , FHLBank Topeka has concluded that a loss accrual is not necessary at this time. Off-balance Sheet Commitments: As of March 31, 2020 and December 31, 2019 , off-balance sheet commitments are presented in Table 13.1 (in thousands): Table 13.1 03/31/2020 12/31/2019 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 $ 4,732,084 $ 7,935 $ 4,740,019 $ 4,764,724 $ 4,335 $ 4,769,059 Advance commitments outstanding 61,688 18,632 80,320 64,282 15,693 79,975 Commitments for standby bond purchases 214,751 483,789 698,540 — 701,392 701,392 Commitments to fund or purchase mortgage loans 910,677 — 910,677 221,800 — 221,800 Commitments to issue consolidated bonds, at par 210,000 — 210,000 — — — Commitments to issue consolidated discount notes, at par — — — 411,161 — 411,161 Commitments to Extend Credit: 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 at the time of issuance with assets allowed by 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 FHLBank is required to make payment for a beneficiary's draw, the member either reimburses FHLBank for the amount drawn or, subject to 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. FHLBank's current outstanding standby letters of credit expire no later than 2024 . Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $1,388,000 and $1,470,000 as of March 31, 2020 and December 31, 2019 , respectively. Advance commitments legally bind and unconditionally obligate 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, FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments. Standby Bond-Purchase Agreements: FHLBank has entered into standby bond purchase agreements with state housing authorities whereby 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 FHLBank to purchase the bond. The bond purchase commitments entered into by FHLBank expire no later than 2022 , though some are renewable at the option of FHLBank. As of March 31, 2020 and December 31, 2019 , the total commitments for bond purchases included agreements with two in-district state housing authorities. FHLBank was required to purchase $122,390,000 in bonds under these agreements during the three months ended March 31, 2020 . These bonds were classified as available-for-sale securities, and were acquired at par and sold at par prior to March 31, 2020. FHLBank was not required to purchase any bonds under any agreements during the three months ended March 31, 2019 . Commitments to Purchase Mortgage Loans: These commitments that unconditionally obligate 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. FHLBank recorded mortgage delivery commitment net derivative asset (liability) balances of $(6,864,000) and $470,000 as of March 31, 2020 and December 31, 2019 , respectively. Commitments to Issue Consolidated Obligations: 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 | 3 Months Ended |
Mar. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Stockholders | TRANSACTIONS WITH STOCKHOLDERS FHLBank is a cooperative whose members own most of the capital stock of 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. 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 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, FHLBank defines related parties as FHLBank directors’ financial institutions and members with capital stock investments in excess of 10 percent of 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 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands). None of the officers or directors of these members currently serve on FHLBank’s board of directors. Table 14.1 03/31/2020 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 MidFirst Bank OK $ 500 0.1 % $ 431,950 31.9 % $ 432,450 24.0 % BOKF, N.A. OK 68,664 15.3 247,000 18.2 315,664 17.5 TOTAL $ 69,164 15.4 % $ 678,950 50.1 % $ 748,114 41.5 % Table 14.2 12/31/2019 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 MidFirst Bank OK $ 500 0.1 % $ 385,825 29.2 % $ 386,325 21.8 % BOKF, N.A. OK 184,282 41.0 202,000 15.3 386,282 21.8 TOTAL $ 184,782 41.1 % $ 587,825 44.5 % $ 772,607 43.6 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of March 31, 2020 and December 31, 2019 are summarized in Table 14.3 (dollar amounts in thousands). Table 14.3 03/31/2020 12/31/2019 03/31/2020 12/31/2019 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total MidFirst Bank $ 9,610,000 30.6 % $ 8,585,000 28.5 % $ 1,217 0.1 % $ 1,030 0.1 % BOKF, N.A. 5,500,000 17.5 4,500,000 14.9 19,760 2.0 22,457 2.9 TOTAL $ 15,110,000 48.1 % $ 13,085,000 43.4 % $ 20,977 2.1 % $ 23,487 3.0 % For the three months ended March 31, 2020 , BOKF, N.A. sold $6,936,000 of mortgage loans into the MPF Program. BOKF, N.A. did not sell any mortgage loans into the MPF Program during the three months ended March 31, 2019. MidFirst Bank did not sell any mortgage loans into the MPF Program during the three months ended March 31, 2020 and 2019. Transactions with FHLBank Directors’ Financial Institutions: Table 14.4 presents information as of March 31, 2020 and December 31, 2019 for members that had an officer or director serving on FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 14.4 03/31/2020 12/31/2019 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 143,302 0.5 % $ 178,945 0.6 % Deposits $ 16,765 1.7 % $ 15,748 2.0 % Class A Common Stock $ 4,671 1.0 % $ 6,467 1.4 % Class B Common Stock 5,269 0.4 5,571 0.4 TOTAL CAPITAL STOCK $ 9,940 0.6 % $ 12,038 0.7 % Table 14.5 presents mortgage loans acquired during the three months ended March 31, 2020 and 2019 for members that had an officer or director serving on FHLBank’s board of directors in 2020 or 2019 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Table 14.5 Three Months Ended 03/31/2020 03/31/2019 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 46,109 5.2 % $ 23,080 4.8 % |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation: The accompanying interim financial statements of 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 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. 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, 2019 . The interim financial statements presented herein should be read in conjunction with FHLBank’s audited financial statements and notes thereto, which are included in FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 20, 2020 (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. |
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 and the fair value of derivatives. 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. |
Credit Loss, Financial Instrument [Policy Text Block] | Beginning January 1, 2020, FHLBank adopted new accounting guidance pertaining to the measurement of credit losses on financial instruments that requires a financial asset or group of financial assets measured at amortized cost to be presented at the net amount expected to be collected. The new guidance also requires credit losses relating to these financial instruments as well as available-for-sale securities to be recorded through an allowance for credit losses. Key changes as compared to prior accounting guidance are detailed below. Consistent with the modified retrospective method of adoption, the prior period has not been revised to conform to the new basis of accounting. See Note 1 of the Notes to the Financial Statements included in the annual report on Form 10-K for information on the prior accounting treatment. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold. These investments provide short-term liquidity and are carried at amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. These investments are evaluated quarterly for expected credit losses. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank uses the collateral maintenance provision practical expedient for securities purchased under agreements to resell. Consequently, a credit loss would be recognized if there is a collateral shortfall which FHLBank does not believe the counterparty will replenish in accordance with its contractual terms. The credit loss would be limited to the difference between the fair value of the collateral and the investment’s amortized cost. See Note 3 for details on the allowance methodologies relating to these investments. Investment Securities: Available for Sale: For securities classified as available-for-sale, FHLBank evaluates an individual security for impairment on a quarterly basis by comparing the security’s fair value to its amortized cost. Accrued interest receivable is recorded separately on the Statements of Condition. Impairment exists when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). In assessing whether a credit loss exists on an impaired security, FHLBank considers whether there would be a shortfall in receiving all cash flows contractually due. When a shortfall is considered possible, FHLBank compares the present value of cash flows to be collected from the security with the amortized cost basis of the security. If the present value of cash flows is less than amortized cost, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance is limited by the amount of the unrealized loss. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. If management intends to sell an impaired security classified as available-for-sale, or more likely than not will be required to sell the security before expected recovery of its amortized cost basis, any allowance for credit losses is written off and the amortized cost basis is written down to the security’s fair value at the reporting date with any incremental impairment reported in earnings as net gains (losses) on available-for-sale securities. If management does not intend to sell an impaired security classified as available-for-sale and it is not more likely than not that management will be required to sell the debt security, then the credit portion of the difference is recognized as an allowance for credit losses and any remaining difference between the security’s fair value and amortized cost is recorded to net unrealized gains (losses) on available-for-sale securities within other comprehensive income (loss) (OCI). Held-to-Maturity: Securities that FHLBank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Held-to-maturity securities are evaluated quarterly for expected credit losses on a pool basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. The allowance for credit losses excludes uncollectible accrued interest receivable, which is measured separately. See Note 3 for details on the allowance methodologies relating to available-for-sale and held-to-maturity securities. Advances: Advances are carried at amortized cost, which is original cost adjusted for periodic principal repayments, amortization of premiums, accretion of discounts, and fair value hedge adjustments. Accrued interest receivable is recorded separately on the Statements of Condition. Advances are evaluated quarterly for expected credit losses. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. See Note 4 for details on the allowance methodology relating to advances. Mortgage Loans Held for Portfolio: Mortgage loans held for portfolio are recorded at amortized cost, which is original cost adjusted for periodic principal repayments, amortization of premiums, accretion of discounts, hedging adjustments, other fees, and direct write-downs. Accrued interest receivable is recorded separately on the Statements of Condition. FHLBank performs a quarterly assessment of its mortgage loans held for portfolio to estimate expected credit losses. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank measures expected credit losses on mortgage loans on a collective basis, pooling loans with similar risk characteristics. If a mortgage loan no longer shares risk characteristics with other loans, it is removed from the pool and evaluated for expected credit losses on an individual basis. When developing the allowance for credit losses, FHLBank measures the estimated loss over the remaining life of a mortgage loan, which also considers how credit enhancements mitigate credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. The allowance excludes uncollectible accrued interest receivable, as FHLBank writes off accrued interest receivable by reversing interest income if a mortgage loan is placed on nonaccrual status. FHLBank does not purchase mortgage loans with credit deterioration present at the time of purchase. FHLBank includes estimates of expected recoveries within the allowance for credit losses. See Note 5 for details on the allowance methodologies relating to mortgage loans. Off-Balance Sheet Credit Exposures: FHLBank evaluates off-balance sheet credit exposures on a quarterly basis for expected credit losses. If deemed necessary, an allowance for expected credit losses on these off-balance sheet exposures is recorded in other liabilities with a corresponding adjustment to the provision (reversal) for credit losses. See Note 13 for details on the allowance methodologies relating to off-balance sheet credit exposures. Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a nationally recognized statistical rating organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of March 31, 2020 , approximately 49 percent of these investments were with unrated counterparties. Federal funds sold are unsecured loans that are generally transacted on an overnight term. Federal Housing Finance Agency (FHFA) regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of March 31, 2020 and December 31, 2019 , all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of March 31, 2020 and December 31, 2019 . Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $362,000 and $4,000 , respectively, as of March 31, 2020 , and $589,000 and $30,000 , respectively, as of December 31, 2019 . Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with their counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of March 31, 2020 and December 31, 2019 . The carrying value of securities purchased under agreements excludes accrued interest receivable of $4,000 and $424,000 as of March 31, 2020 and December 31, 2019 , respectively. Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. FHLBank adopted new accounting guidance for the measurement of credit losses on financial instruments on January 1, 2020. See Note 2 for additional information. During the three months ended March 31, 2020 , FHLBank did no t recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments. To evaluate investment securities for credit loss as of March 31, 2020 , FHLBank employed the following methodologies, based on the type of security. FHLBank's available-for-sale and held-to-maturity securities are principally certificates of deposit, U.S. obligations, GSE obligations, state or local housing agency obligations, and MBS issued by Ginnie Mae, Freddie Mac, and Fannie Mae that are backed by single-family or multifamily mortgage loans. FHLBank only purchases securities considered investment quality. As of March 31, 2020 , all of FHLBank's available-for-sale securities and held-to-maturity securities were rated single-A or above by an NRSRO, based on the lowest long-term credit rating for each security. These may differ from any internal ratings of the securities, if applicable. FHLBank evaluates available-for-sale securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). As of March 31, 2020 , certain available-for-sale securities were in an unrealized loss position. These losses are considered temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis. Further, FHLBank has not experienced any payment defaults on the instruments. In addition, all of these securities carry an implicit or explicit government guarantee. As a result, no allowance for credit losses was recorded on these available-for-sale securities as of March 31, 2020 . FHLBank evaluates its held-to-maturity securities for impairment on a collective or pooled basis unless an individual assessment is deemed necessary because the securities do not possess similar risk characteristics. As of March 31, 2020 , FHLBank had no t established an allowance for credit loss on any held-to-maturity securities because the securities: (1) were all highly-rated and/or had short remaining terms to maturity; (2) had not experienced, nor did FHLBank expect, any payment default on the instruments; and (3) in the case of U.S. or GSE obligations, carry an implicit or explicit government guarantee such that FHLBank considers the risk of nonpayment to be zero. Credit Risk Exposure and Security Terms: FHLBank's advances are primarily made to member financial institutions, including commercial banks and insurance companies. FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. In addition, FHLBank lends to eligible borrowers in accordance with federal law and FHFA regulations. Specifically, FHLBank is required to obtain sufficient collateral to fully secure credit products up to the counterparty’s total credit limit. Collateral eligible to secure new or renewed advances includes: ▪ One-to-four family and multifamily mortgage loans (delinquent for no more than 90 days) and securities representing such mortgages; ▪ Loans and securities issued, insured, or guaranteed by the U.S. government or any U.S. government agency (for example, MBS issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae); ▪ Cash or deposits in FHLBank; ▪ Certain other collateral that is real estate-related, provided that the collateral has a readily ascertainable value and that FHLBank can perfect a security interest in it; and ▪ Certain qualifying securities representing undivided equity interests in eligible advance collateral. Residential mortgage loans are the principal form of collateral for advances. The estimated value of the collateral required to secure each member's credit products is calculated by applying collateral discounts, or haircuts, to the market value or unpaid principal balance of the collateral, as applicable. In addition, community financial institutions are eligible to use expanded statutory collateral provisions for small business, agriculture loans, and community development loans. FHLBank capital stock owned by each borrower is also pledged as collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition, and performance; borrowing capacity; and overall credit exposure to the borrower. FHLBank can also require additional or substitute collateral to protect its security interest. FHLBanks also have policies and procedures for validating the reasonableness of their collateral valuations. In addition, collateral verifications and on-site reviews are performed by FHLBank based on the risk profile of the borrower. FHLBank management believes that these policies effectively manage credit risk from advances. FHLBank either allows a borrower to retain physical possession of the collateral assigned to it, or requires the borrower to specifically assign or place physical possession of the collateral with FHLBank or its safekeeping agent. FHLBank perfects its security interest in all pledged collateral. The Federal Home Loan Bank Act of 1932, as amended, (Bank Act) states that any security interest granted to an FHLBank by a borrower will have priority over the claims or rights of any other party, except for claims or rights of a third party that would be entitled to priority under otherwise applicable law and are held by a bona fide purchaser for value or by a secured party holding a prior perfected security interest. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the types and level of collateral to be the primary indicator of credit quality on advances. As of March 31, 2020 and December 31, 2019 , FHLBank had rights to collateral on a borrower-by-borrower basis with an estimated value greater than its outstanding advances. FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. As of March 31, 2020 and December 31, 2019 , no advances were past due, on non-accrual status, or considered impaired. In addition, there were no troubled debt restructurings related to advances during the three months ended March 31, 2020 and 2019 . Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no losses are expected on advances as of March 31, 2020 , and therefore no allowance for credit losses on advances was recorded. For the same reasons, FHLBank did no t record any allowance for credit losses on advances as of December 31, 2019 . Allowance for Credit Losses: Conventional Mortgage Loans: Conventional loans are evaluated collectively when similar risk characteristics exists. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowances for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a model that discounts projected cash flows to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior experience. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses. Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent if repayment is expected to be provided by the sale of the underlying property, that is, if it is considered likely that the borrower will default. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or using third party estimates or property valuation model(s). The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance, if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses. Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed-rate mortgage loans that are insured or guaranteed 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. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Any losses on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicer. Therefore, FHLBank only has credit risk for these loans if the servicer fails to pay for losses not covered by the guarantee or insurance. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial, consequently, no allowance for credit losses for government-guaranteed or -insured mortgage loans was recorded as of March 31, 2020 or December 31, 2019 . Furthermore, no ne of these mortgage loans has been placed on non-accrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met. |
New Accounting Pronouncements, Policy | Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Accounting Standard Update (ASU) 2020-04) . In March 2020, the Financial Accounting Standards Board (FASB) issued temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The transactions primarily include: (1) contract modifications; (2) hedging relationships; and (3) sale or transfer of debt securities classified as held-to-maturity. This guidance was effective immediately for FHLBank, and the amendments may be applied prospectively through December 31, 2022. FHLBank is in the process of evaluating the guidance, and its effect on FHLBank's financial condition, results of operations and cash flows has not yet been determined. 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 were effective January 1, 2020 for FHLBank. The adoption of this guidance did not materially impact 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 FHLBank, and will be applied retrospectively for all comparative periods presented. The adoption of this guidance will not have a material impact on the disclosures related to defined benefit plans and will not impact 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 were effective January 1, 2020 for FHLBank. The adoption of this guidance did not have an impact on the disclosures related to fair value measurements and did not impact 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 became effective for FHLBank on January 1, 2020 and was applied using a modified-retrospective approach, through a cumulative-effect adjustment to retained earnings. Adoption of this guidance did not materially impact FHLBank’s financial condition, results of operations, or cash flows. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | 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, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest. 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, 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 | 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) | 3 Months Ended |
Mar. 31, 2020 | |
Investment Holdings [Line Items] | |
Trading Securities by Major Security Type | Trading securities by major security type as of March 31, 2020 and December 31, 2019 are summarized in Table 3.1 (in thousands): Table 3.1 Fair Value 03/31/2020 12/31/2019 Non-mortgage-backed securities: Certificates of deposit $ 275,055 $ — U.S. Treasury obligations 1,570,261 1,530,518 GSE obligations 433,576 416,025 Non-mortgage-backed securities 2,278,892 1,946,543 Mortgage-backed securities: GSE MBS 899,099 866,019 Mortgage-backed securities 899,099 866,019 TOTAL $ 3,177,991 $ 2,812,562 |
Net Gains (Losses) on Trading Securities | Net gains (losses) on trading securities during the three months ended March 31, 2020 and 2019 are shown in Table 3.2 (in thousands): Table 3.2 Three Months Ended 03/31/2020 03/31/2019 Net gains (losses) on trading securities held as of March 31, 2020 $ 94,203 $ 28,659 Net gains (losses) on trading securities sold or matured prior to March 31, 2020 186 96 NET GAINS (LOSSES) ON TRADING SECURITIES $ 94,389 $ 28,755 |
Available-for-sale Securities by Major Security Type | Available-for-sale securities by major security type as of March 31, 2020 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $28,429,000 as of March 31, 2020 . Table 3.3 03/31/2020 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,352,488 $ 2,192 $ (984 ) $ 4,353,696 Non-mortgage-backed securities 4,352,488 2,192 (984 ) 4,353,696 Mortgage-backed securities: GSE MBS 3,240,951 15,094 (83,645 ) 3,172,400 Mortgage-backed securities 3,240,951 15,094 (83,645 ) 3,172,400 TOTAL $ 7,593,439 $ 17,286 $ (84,629 ) $ 7,526,096 Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $30,321,000 as of December 31, 2019 . Table 3.4 12/31/2019 Amortized Gross Gross Fair Value Non-mortgage-backed securities: U.S. Treasury obligations $ 4,258,608 $ 3,580 $ (397 ) $ 4,261,791 Non-mortgage-backed securities 4,258,608 3,580 (397 ) 4,261,791 Mortgage-backed securities: GSE MBS 2,897,104 28,353 (4,748 ) 2,920,709 Mortgage-backed securities 2,897,104 28,353 (4,748 ) 2,920,709 TOTAL $ 7,155,712 $ 31,933 $ (5,145 ) $ 7,182,500 |
Available-for-sale securities with unrealized losses, fair value | Table 3.5 summarizes the available-for-sale securities with unrealized losses as of March 31, 2020 (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 03/31/2020 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 $ 1,238,322 $ (452 ) $ 324,054 $ (532 ) $ 1,562,376 $ (984 ) Non-mortgage-backed securities 1,238,322 (452 ) 324,054 (532 ) 1,562,376 (984 ) Mortgage-backed securities: GSE MBS 1,973,210 (73,832 ) 318,933 (9,813 ) 2,292,143 (83,645 ) Mortgage-backed securities 1,973,210 (73,832 ) 318,933 (9,813 ) 2,292,143 (83,645 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 3,211,532 $ (74,284 ) $ 642,987 $ (10,345 ) $ 3,854,519 $ (84,629 ) Table 3.6 summarizes the available-for-sale securities with unrealized losses as of December 31, 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 3.6 12/31/2019 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 $ 1,579,004 $ (397 ) $ — $ — $ 1,579,004 $ (397 ) Non-mortgage-backed securities 1,579,004 (397 ) — — 1,579,004 (397 ) Mortgage-backed securities: GSE MBS 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) Mortgage-backed securities 787,809 (932 ) 301,161 (3,816 ) 1,088,970 (4,748 ) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 2,366,813 $ (1,329 ) $ 301,161 $ (3,816 ) $ 2,667,974 $ (5,145 ) |
Net Gains (Losses) Realized on Sale of Available-For-Sale Securities | Table 3.8 presents details of the sales for the three months ended March 31, 2020 (in thousands). There were no sales of available-for-sale securities during the three months ended March 31, 2019 . Table 3.8 Three Months Ended 03/31/2020 Proceeds from sale of available-for-sale securities $ 289,045 Gross gains on sale of available-for-sale securities $ 1,526 Gross losses on sale of available-for-sale securities (3 ) NET GAINS (LOSSES) ON SALE OF AVAILABLE-FOR-SALE SECURITIES $ 1,523 |
Held-To-Maturity Securities by Major Security Type | Held-to-maturity securities by major security type as of March 31, 2020 are summarized in Table 3.9 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $3,576,000 as of March 31, 2020 . Table 3.9 03/31/2020 Amortized Cost Net Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 2 $ (1,496 ) $ 81,311 Non-mortgage-backed securities 82,805 82,805 2 (1,496 ) 81,311 Mortgage-backed securities: U.S. obligation MBS 89,563 89,563 — (1,123 ) 88,440 GSE MBS 3,168,970 3,168,970 4,379 (23,469 ) 3,149,880 Mortgage-backed securities 3,258,533 3,258,533 4,379 (24,592 ) 3,238,320 TOTAL $ 3,341,338 $ 3,341,338 $ 4,381 $ (26,088 ) $ 3,319,631 Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 3.10 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $4,324,000 as of December 31, 2019 . Table 3.10 12/31/2019 Amortized Cost Carrying Value Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Non-mortgage-backed securities: State or local housing agency obligations $ 82,805 $ 82,805 $ 5 $ (1,956 ) $ 80,854 Non-mortgage-backed securities 82,805 82,805 5 (1,956 ) 80,854 Mortgage-backed securities: U.S. obligation MBS 93,375 93,375 — (496 ) 92,879 GSE MBS 3,393,778 3,393,778 6,558 (17,131 ) 3,383,205 Mortgage-backed securities 3,487,153 3,487,153 6,558 (17,627 ) 3,476,084 TOTAL $ 3,569,958 $ 3,569,958 $ 6,563 $ (19,583 ) $ 3,556,938 |
Available-for-sale Securities [Member] | |
Investment Holdings [Line Items] | |
Securities Classified By Contractual Maturity | The amortized cost and fair values of available-for-sale securities by contractual maturity as of March 31, 2020 and December 31, 2019 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 03/31/2020 12/31/2019 Amortized Cost Fair Value Amortized Cost Fair Value Non-mortgage-backed securities: Due in one year or less $ 1,268,884 $ 1,269,148 $ 754,003 $ 753,891 Due after one year through five years 3,083,604 3,084,548 3,504,605 3,507,900 Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 4,352,488 4,353,696 4,258,608 4,261,791 Mortgage-backed securities 3,240,951 3,172,400 2,897,104 2,920,709 TOTAL $ 7,593,439 $ 7,526,096 $ 7,155,712 $ 7,182,500 |
Held-to-maturity Securities [Member] | |
Investment Holdings [Line Items] | |
Securities Classified By Contractual Maturity | The amortized cost, carrying value and fair values of held-to-maturity securities by contractual maturity as of March 31, 2020 and December 31, 2019 are shown in Table 3.11 (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 3.11 03/31/2020 12/31/2019 Amortized Cost Net 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 82,805 82,805 81,311 82,805 82,805 80,854 Non-mortgage-backed securities 82,805 82,805 81,311 82,805 82,805 80,854 Mortgage-backed securities 3,258,533 3,258,533 3,238,320 3,487,153 3,487,153 3,476,084 TOTAL $ 3,341,338 $ 3,341,338 $ 3,319,631 $ 3,569,958 $ 3,569,958 $ 3,556,938 |
Advances (Tables)
Advances (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Advances [Abstract] | |
Advances Table | Table 4.1 presents advances summarized by redemption term as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands). Carrying amounts exclude accrued interest receivable of $40,265,000 and $45,637,000 as of March 31, 2020 and December 31, 2019 , respectively. Table 4.1 03/31/2020 12/31/2019 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 12,856,757 1.11 % $ 13,188,118 1.88 % Due after one year through two years 2,640,111 1.85 10,448,433 1.96 Due after two years through three years 1,240,159 1.95 1,254,153 2.27 Due after three years through four years 1,130,479 2.24 1,067,662 2.42 Due after four years through five years 1,568,352 1.79 1,208,854 2.22 Thereafter 11,919,990 1.63 3,004,835 2.25 Total par value 31,355,848 1.48 % 30,172,055 1.99 % Discounts (5,688 ) (1,807 ) Hedging adjustments 327,923 71,067 TOTAL $ 31,678,083 $ 30,241,315 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 March 31, 2020 and December 31, 2019 (in thousands): Table 4.2 Redemption Term or Next Call Date Redemption Term or Next Conversion Date Redemption Term 03/31/2020 12/31/2019 03/31/2020 12/31/2019 Due in one year or less $ 24,917,487 $ 24,271,238 $ 13,878,057 $ 14,053,068 Due after one year through two years 853,053 1,133,077 2,786,661 10,637,833 Due after two years through three years 776,494 728,429 1,583,159 1,524,153 Due after three years through four years 839,249 764,990 1,272,229 1,215,412 Due after four years through five years 982,582 686,594 1,663,752 1,304,254 Thereafter 2,986,983 2,587,727 10,171,990 1,437,335 TOTAL PAR VALUE $ 31,355,848 $ 30,172,055 $ 31,355,848 $ 30,172,055 Interest Rate Payment Terms : Table 4.3 details additional interest rate payment terms for advances as of March 31, 2020 and December 31, 2019 (in thousands): Table 4.3 Redemption Term 03/31/2020 12/31/2019 Fixed rate: Due in one year or less $ 3,057,383 $ 2,691,528 Due after one year 6,453,279 5,912,124 Total fixed rate 9,510,662 8,603,652 Variable rate: Due in one year or less 9,799,374 10,496,590 Due after one year 12,045,812 11,071,813 Total variable rate 21,845,186 21,568,403 TOTAL PAR VALUE $ 31,355,848 $ 30,172,055 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Mortgage Loans Held For Portfolio | Table 5.1 presents information as of March 31, 2020 and December 31, 2019 on mortgage loans held for portfolio (in thousands). Mortgage loans held for portfolio excludes accrued interest receivable of $54,348,000 and $52,358,000 as of March 31, 2020 and December 31, 2019 , respectively. Table 5.1 03/31/2020 12/31/2019 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,408,353 $ 1,347,385 Fixed rate, long-term, single-family mortgages 9,450,297 9,128,268 Total unpaid principal balance 10,858,650 10,475,653 Premiums 162,466 155,793 Discounts (2,347 ) (2,503 ) Deferred loan costs, net 174 184 Other deferred fees (36 ) (38 ) Hedging adjustments 5,729 4,905 Total before Allowance for Credit Losses on Mortgage Loans 11,024,636 10,633,994 Allowance for Credit Losses on Mortgage Loans 2 (6,468 ) (985 ) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 11,018,168 $ 10,633,009 1 Medium-term defined as a term of 15 years or less at origination. 2 Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5 ). Table 5.2 presents information as of March 31, 2020 and December 31, 2019 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands): Table 5.2 03/31/2020 12/31/2019 Conventional loans $ 10,247,783 $ 9,849,542 Government-guaranteed or -insured loans 610,867 626,111 TOTAL UNPAID PRINCIPAL BALANCE $ 10,858,650 $ 10,475,653 |
Financing Receivable Credit Quality Indicators | Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of March 31, 2020 (dollar amounts in thousands): Table 5.3 03/31/2020 Conventional Loans Government Loans Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 26,537 $ 4,645 $ 7,718 $ 8,670 $ 11,031 $ — $ 58,601 $ 15,284 $ 73,885 Past due 60-89 days delinquent 6,883 607 1,209 873 912 — 10,484 5,485 15,969 Past due 90 days or more delinquent 5,697 825 1,278 3,237 — — 11,037 7,701 18,738 Total past due 39,117 6,077 10,205 12,780 11,943 — 80,122 28,470 108,592 Total current loans 2,702,728 869,155 1,080,872 1,307,221 3,668,111 697,256 10,325,343 590,701 10,916,044 Total mortgage loans $ 2,741,845 $ 875,232 $ 1,091,077 $ 1,320,001 $ 3,680,054 $ 697,256 $ 10,405,465 $ 619,171 $ 11,024,636 Other delinquency statistics: In process of foreclosure 2 $ 3,441 $ 2,922 $ 6,363 Serious delinquency rate 3 0.1 % 1.2 % 0.2 % Past due 90 days or more and still accruing interest $ — $ 7,701 $ 7,701 Loans on non-accrual status 4 $ 15,157 $ — $ 15,157 1 Excludes accrued interest receivable. 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 $1,361,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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 5.4 presents the payment status based on recorded investment as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2019 (dollar amounts in thousands): Table 5.4 12/31/2019 Conventional Loans Government Loans Total Recorded investment: 1 Past due 30-59 days delinquent $ 59,226 $ 15,515 $ 74,741 Past due 60-89 days delinquent 7,561 6,128 13,689 Past due 90 days or more delinquent 11,813 8,778 20,591 Total past due 78,600 30,421 109,021 Total current loans 9,969,930 607,400 10,577,330 Total recorded investment $ 10,048,530 $ 637,821 $ 10,686,351 Other delinquency statistics: In process of foreclosure 2 $ 3,352 $ 2,730 $ 6,082 Serious delinquency rate 3 0.1 % 1.4 % 0.1 % Past due 90 days or more and still accruing interest $ — $ 8,778 $ 8,778 Loans on non-accrual status 4 $ 14,923 $ — $ 14,923 1 Includes accrued interest receivable. 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 $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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. |
Financing Receivable, Past Due | Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of March 31, 2020 (dollar amounts in thousands): Table 5.3 03/31/2020 Conventional Loans Government Loans Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 26,537 $ 4,645 $ 7,718 $ 8,670 $ 11,031 $ — $ 58,601 $ 15,284 $ 73,885 Past due 60-89 days delinquent 6,883 607 1,209 873 912 — 10,484 5,485 15,969 Past due 90 days or more delinquent 5,697 825 1,278 3,237 — — 11,037 7,701 18,738 Total past due 39,117 6,077 10,205 12,780 11,943 — 80,122 28,470 108,592 Total current loans 2,702,728 869,155 1,080,872 1,307,221 3,668,111 697,256 10,325,343 590,701 10,916,044 Total mortgage loans $ 2,741,845 $ 875,232 $ 1,091,077 $ 1,320,001 $ 3,680,054 $ 697,256 $ 10,405,465 $ 619,171 $ 11,024,636 Other delinquency statistics: In process of foreclosure 2 $ 3,441 $ 2,922 $ 6,363 Serious delinquency rate 3 0.1 % 1.2 % 0.2 % Past due 90 days or more and still accruing interest $ — $ 7,701 $ 7,701 Loans on non-accrual status 4 $ 15,157 $ — $ 15,157 1 Excludes accrued interest receivable. 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 $1,361,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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 5.4 presents the payment status based on recorded investment as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2019 (dollar amounts in thousands): Table 5.4 12/31/2019 Conventional Loans Government Loans Total Recorded investment: 1 Past due 30-59 days delinquent $ 59,226 $ 15,515 $ 74,741 Past due 60-89 days delinquent 7,561 6,128 13,689 Past due 90 days or more delinquent 11,813 8,778 20,591 Total past due 78,600 30,421 109,021 Total current loans 9,969,930 607,400 10,577,330 Total recorded investment $ 10,048,530 $ 637,821 $ 10,686,351 Other delinquency statistics: In process of foreclosure 2 $ 3,352 $ 2,730 $ 6,082 Serious delinquency rate 3 0.1 % 1.4 % 0.1 % Past due 90 days or more and still accruing interest $ — $ 8,778 $ 8,778 Loans on non-accrual status 4 $ 14,923 $ — $ 14,923 1 Includes accrued interest receivable. 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 $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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. |
Financing Receivable, Allowance for Credit Loss | Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three months ended March 31, 2020 and 2019 . Table 5.5 Three Months Ended 03/31/2020 03/31/2019 Balance, beginning of the period $ 985 $ 812 Adjustment for cumulative effect of accounting change 6,123 — Net (charge-offs) recoveries 96 (66 ) Provision (reversal) for credit losses (736 ) 78 Balance, end of the period $ 6,468 $ 824 |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value of Derivative Instruments | Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of March 31, 2020 and December 31, 2019 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 6.1 03/31/2020 12/31/2019 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $ 18,927,900 $ 25,165 $ 291,756 $ 16,448,512 $ 23,462 $ 80,398 Total derivatives designated as hedging relationships 18,927,900 25,165 291,756 16,448,512 23,462 80,398 Derivatives not designated as hedging instruments: Interest rate swaps 2,731,000 362 75,061 3,099,622 736 26,285 Interest rate caps/floors 762,500 262 — 1,130,000 117 — Mortgage delivery commitments 910,677 934 7,798 221,800 495 25 Total derivatives not designated as hedging instruments 4,404,177 1,558 82,859 4,451,422 1,348 26,310 TOTAL $ 23,332,077 26,723 374,615 $ 20,899,934 24,810 106,708 Netting adjustments and cash collateral 1 176,726 (366,045 ) 129,994 (106,506 ) DERIVATIVE ASSETS AND LIABILITIES $ 203,449 $ 8,570 $ 154,804 $ 202 1 Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019 , respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019 , respectively. |
Net Gains or Losses on Derivatives and Hedging Activities | For the three months ended March 31, 2020 and 2019 , FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.2 (in thousands): Table 6.2 Three Months Ended 03/31/2020 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 130,887 $ 24,294 $ 92,951 $ 150,742 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (260,132 ) $ (360,283 ) $ 18,523 $ 45,446 Hedged items 2 256,842 344,143 (15,690 ) (39,825 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (3,290 ) $ (16,140 ) $ 2,833 $ 5,621 3/31/2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 187,609 $ 15,396 $ 148,991 $ 158,157 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (33,072 ) $ (44,192 ) $ 32 $ 9,705 Hedged items 2 39,502 42,113 (30 ) (13,549 ) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 6,430 $ (2,079 ) $ 2 $ (3,844 ) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. |
Cumulative Basis Adjustments for Fair Value Hedges | Table 6.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of March 31, 2020 and December 31, 2019 (in thousands): Table 6.3 03/31/2020 Line Item in Statements 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 $ 5,568,718 $ 323,770 $ 4,153 $ 327,923 Available-for-sale securities 7,593,439 420,968 — 420,968 Consolidated obligation discount notes (3,993,727 ) (15,540 ) — (15,540 ) Consolidated obligation bonds (2,757,036 ) (66,215 ) — (66,215 ) 12/31/2019 Line Item in Statements 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 $ 4,951,445 $ 69,643 $ 1,424 $ 71,067 Available-for-sale securities 7,155,712 79,141 — 79,141 Consolidated obligation bonds (3,270,635 ) (26,389 ) — (26,389 ) 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 6.4 provides information regarding gains and losses on derivatives and hedging activities recorded in non-interest income (in thousands). Table 6.4 Three Months Ended 03/31/2020 03/31/2019 Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (111,715 ) $ (19,185 ) Interest rate caps/floors 145 (626 ) Net interest settlements (5,154 ) (296 ) Mortgage delivery commitments (5,528 ) 1,635 Consolidated obligation discount note commitments — (70 ) NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (122,252 ) $ (18,542 ) |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Table 7.1 details the types of deposits held by FHLBank as of March 31, 2020 and December 31, 2019 (in thousands): Table 7.1 03/31/2020 12/31/2019 Interest-bearing: Demand $ 433,061 $ 383,197 Overnight 365,400 280,300 Term 1,000 — Total interest-bearing 799,461 663,497 Non-interest-bearing: Other 175,936 127,143 Total non-interest-bearing 175,936 127,143 TOTAL DEPOSITS $ 975,397 $ 790,640 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Consolidated Bonds Obligations Outstanding By Maturity | Table 8.1 presents the FHLBank’s participation in consolidated obligation bonds outstanding as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands): Table 8.1 03/31/2020 12/31/2019 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 17,467,750 1.11 % $ 15,991,800 1.79 % Due after one year through two years 5,970,950 1.66 6,318,350 1.90 Due after two years through three years 1,758,400 2.01 1,375,000 2.11 Due after three years through four years 1,017,200 2.11 1,285,900 2.39 Due after four years through five years 1,367,700 2.02 1,223,350 2.40 Thereafter 6,052,300 2.52 5,776,300 2.78 Total par value 33,634,300 1.58 % 31,970,700 2.05 % Premiums 50,201 34,789 Discounts (3,858 ) (3,357 ) Concession fees (16,803 ) (15,207 ) Hedging adjustments 66,215 26,389 TOTAL $ 33,730,055 $ 32,013,314 Table 8.2 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 March 31, 2020 and December 31, 2019 (in thousands): Table 8.2 Year of Maturity or Next Call Date 03/31/2020 12/31/2019 Due in one year or less $ 25,629,250 $ 24,583,300 Due after one year through two years 5,495,950 5,148,350 Due after two years through three years 938,400 615,000 Due after three years through four years 493,700 682,400 Due after four years through five years 456,200 356,850 Thereafter 620,800 584,800 TOTAL PAR VALUE $ 33,634,300 $ 31,970,700 |
Consolidated Bonds by Interest-Rate Payment Type | Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of March 31, 2020 and December 31, 2019 (in thousands): Table 8.3 03/31/2020 12/31/2019 Simple variable rate $ 18,038,000 $ 16,017,000 Fixed rate 15,546,300 15,573,700 Step 50,000 110,000 Variable rate with cap — 220,000 Fixed to variable rate — 50,000 TOTAL PAR VALUE $ 33,634,300 $ 31,970,700 |
Consolidated Discount Notes Outstanding | Table 8.4 summarizes the FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 8.4 Book Value Par Value Weighted Average Interest Rate 1 March 31, 2020 $ 25,563,980 $ 25,586,959 1.17 % December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % 1 Represents yield to maturity excluding concession fees. |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets | Tables 9.1 and 9.2 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 March 31, 2020 and December 31, 2019 (in thousands): Table 9.1 03/31/2020 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Condition Net Amounts of Assets Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 22,162 $ (19,823 ) $ 2,339 $ (934 ) $ 1,405 Cleared derivatives 4,561 196,549 201,110 — 201,110 Total derivative assets 26,723 176,726 203,449 (934 ) 202,515 Securities purchased under agreements to resell 2,700,000 — 2,700,000 (2,700,000 ) — TOTAL $ 2,726,723 $ 176,726 $ 2,903,449 $ (2,700,934 ) $ 202,515 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 9.2 12/31/2019 Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Condition Net Amounts of Assets Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative assets: Uncleared derivatives $ 21,749 $ (14,424 ) $ 7,325 $ (495 ) $ 6,830 Cleared derivatives 3,061 144,418 147,479 — 147,479 Total derivative assets 24,810 129,994 154,804 (495 ) 154,309 Securities purchased under agreements to resell 4,750,000 — 4,750,000 (4,750,000 ) — TOTAL $ 4,774,810 $ 129,994 $ 4,904,804 $ (4,750,495 ) $ 154,309 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 9.3 and 9.4 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 March 31, 2020 and December 31, 2019 (in thousands): Table 9.3 03/31/2020 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 370,366 $ (361,796 ) $ 8,570 $ (7,798 ) $ 772 Cleared derivatives 4,249 (4,249 ) — — — Total derivative liabilities 374,615 (366,045 ) 8,570 (7,798 ) 772 TOTAL $ 374,615 $ (366,045 ) $ 8,570 $ (7,798 ) $ 772 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 9.4 12/31/2019 Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Gross Amounts Not Offset in the Statement of Condition 1 Net Amount Derivative liabilities: Uncleared derivatives $ 105,468 $ (105,266 ) $ 202 $ (25 ) $ 177 Cleared derivatives 1,240 (1,240 ) — — — Total derivative liabilities 106,708 (106,506 ) 202 (25 ) 177 TOTAL $ 106,708 $ (106,506 ) $ 202 $ (25 ) $ 177 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) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Regulatory Capital Requirements | Table 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands): Table 10.1 03/31/2020 12/31/2019 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 407,775 $ 2,335,377 $ 486,650 $ 2,319,531 Total regulatory capital-to-asset ratio 4.0 % 4.4 % 4.0 % 4.4 % Total regulatory capital $ 2,527,581 $ 2,785,298 $ 2,531,066 $ 2,768,680 Leverage capital ratio 5.0 % 6.3 % 5.0 % 6.2 % Leverage capital $ 3,159,476 $ 3,952,986 $ 3,163,833 $ 3,928,446 |
Mandatorily Redeemable Capital Stock By Contractual Year Of Repurchase | Table 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three months ended March 31, 2020 and 2019 (in thousands): Table 10.2 Three Months Ended 03/31/2020 03/31/2019 Balance, beginning of period $ 2,415 $ 3,597 Capital stock subject to mandatory redemption reclassified from equity during the period 305,957 23,915 Capital stock redemption cancellations reclassified to equity during the period (100,647 ) — Redemption or repurchase of mandatorily redeemable capital stock during the period (205,359 ) (24,006 ) Stock dividend classified as mandatorily redeemable capital stock during the period 24 42 Balance, end of period $ 2,390 $ 3,548 Table 10.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of March 31, 2020 and December 31, 2019 (in thousands). The year of redemption in Table 10.3 is the end of the redemption period in accordance with FHLBank’s capital plan. 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 FHLBank receives notice for withdrawal from the member. Additionally, 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, 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 10.3 Contractual Year of Repurchase 03/31/2020 12/31/2019 Year 1 $ — $ — Year 2 1 1 Year 3 868 869 Year 4 — — Year 5 — — Past contractual redemption date due to remaining activity 1 1,521 1,545 TOTAL $ 2,390 $ 2,415 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) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income Or Loss | Table 11.1 summarizes the changes in AOCI for the three months ended March 31, 2020 and 2019 (in thousands): Table 11.1 Three Months Ended Net Unrealized Gains (Losses) on Available-for-sale Securities Defined Benefit Pension Plan Total AOCI Balance at December 31, 2018 $ 19,068 $ (3,375 ) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 11,848 11,848 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 1 73 73 Net current period other comprehensive income (loss) 11,848 73 11,921 Balance at March 31, 2019 $ 30,916 $ (3,302 ) $ 27,614 Balance at December 31, 2019 $ 26,788 $ (2,002 ) $ 24,786 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (92,608 ) (92,608 ) Reclassifications from other comprehensive income (loss) to net income: Realized net (gains) losses included in net income 2 (1,523 ) (1,523 ) Amortization of net losses - defined benefit pension plan 1 26 26 Net current period other comprehensive income (loss) (94,131 ) 26 (94,105 ) Balance at March 31, 2020 $ (67,343 ) $ (1,976 ) $ (69,319 ) 1 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). 2 Recorded in “Net gains (losses) on sale of available-for-sale securities” non-interest income on the Statements of Income. Amount represents a credit (increase to other income (loss)). |
Fair Values (Tables)
Fair Values (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Summary | The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of March 31, 2020 and December 31, 2019 are summarized in Tables 12.1 and 12.2 (in thousands): Table 12.1 03/31/2020 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 451,670 $ 451,670 $ 451,670 $ — $ — $ — Interest-bearing deposits 1,196,813 1,196,813 — 1,196,813 — — Securities purchased under agreements to resell 2,700,000 2,700,000 — 2,700,000 — — Federal funds sold 1,655,000 1,655,000 — 1,655,000 — — Trading securities 3,177,991 3,177,991 — 3,177,991 — — Available-for-sale securities 7,526,096 7,526,096 — 7,526,096 — — Held-to-maturity securities 3,341,338 3,319,631 — 3,238,320 81,311 — Advances 31,678,083 31,730,957 — 31,730,957 — — Mortgage loans held for portfolio, net of allowance 11,018,168 11,584,130 — 11,582,673 1,457 — Accrued interest receivable 143,873 143,873 — 143,873 — — Derivative assets 203,449 203,449 — 26,723 — 176,726 Liabilities: Deposits 975,397 975,397 — 975,397 — — Consolidated obligation discount notes 25,563,980 25,582,865 — 25,582,865 — — Consolidated obligation bonds 33,730,055 33,926,405 — 33,926,405 — — Mandatorily redeemable capital stock 2,390 2,390 2,390 — — — Accrued interest payable 87,799 87,799 — 87,799 — — Derivative liabilities 8,570 8,570 — 374,615 — (366,045 ) Other Asset (Liability): Industrial revenue bonds 35,000 36,936 — 36,936 — — Financing obligation payable (35,000 ) (36,936 ) — (36,936 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow 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 12.2 12/31/2019 Carrying Value Total Fair Value Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 1,917,166 $ 1,917,166 $ 1,917,166 $ — $ — $ — Interest-bearing deposits 921,453 921,453 — 921,453 — — Securities purchased under agreements to resell 4,750,000 4,750,000 — 4,750,000 — — Federal funds sold 850,000 850,000 — 850,000 — — Trading securities 2,812,562 2,812,562 — 2,812,562 — — Available-for-sale securities 7,182,500 7,182,500 — 7,182,500 — — Held-to-maturity securities 3,569,958 3,556,938 — 3,476,084 80,854 — Advances 30,241,315 30,295,813 — 30,295,813 — — Mortgage loans held for portfolio, net of allowance 10,633,009 10,983,356 — 10,981,458 1,898 — Accrued interest receivable 143,765 143,765 — 143,765 — — Derivative assets 154,804 154,804 — 24,810 — 129,994 Liabilities: Deposits 790,640 790,640 — 790,640 — — Consolidated obligation discount notes 27,447,911 27,448,021 — 27,448,021 — — Consolidated obligation bonds 32,013,314 32,103,154 — 32,103,154 — — Mandatorily redeemable capital stock 2,415 2,415 2,415 — — — Accrued interest payable 117,580 117,580 — 117,580 — — Derivative liabilities 202 202 — 106,708 — (106,506 ) Other Asset (Liability): Industrial revenue bonds 35,000 34,850 — 34,850 — — Financing obligation payable (35,000 ) (34,850 ) — (34,850 ) — — 1 Represents the effect of legally enforceable master netting agreements that allow 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 12.3 and 12.4 present, for each hierarchy level, 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 March 31, 2020 and December 31, 2019 (in thousands). Table 12.3 03/31/2020 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: Certificates of deposit $ 275,055 $ — $ 275,055 $ — $ — U.S. Treasury obligations 1,570,261 — 1,570,261 — — GSE obligations 433,576 — 433,576 — — GSE MBS 899,099 — 899,099 — — Total trading securities 3,177,991 — 3,177,991 — — Available-for-sale securities: U.S. Treasury obligations 4,353,696 — 4,353,696 — — GSE MBS 3,172,400 — 3,172,400 — — Total available-for-sale securities 7,526,096 — 7,526,096 — — Derivative assets: Interest-rate related 202,515 — 25,789 — 176,726 Mortgage delivery commitments 934 — 934 — — Total derivative assets 203,449 — 26,723 — 176,726 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,907,536 $ — $ 10,730,810 $ — $ 176,726 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 772 $ — $ 366,817 $ — $ (366,045 ) Mortgage delivery commitments 7,798 — 7,798 — — Total derivative liabilities 8,570 — 374,615 — (366,045 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 8,570 $ — $ 374,615 $ — $ (366,045 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,463 $ — $ — $ 1,463 $ — Real estate owned 17 — — 17 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 1,480 $ — $ — $ 1,480 $ — 1 Represents the effect of legally enforceable master netting agreements that allow 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 Includes assets adjusted to fair value during the three months ended March 31, 2020 and still outstanding as of March 31, 2020 . Table 12.4 12/31/2019 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,530,518 $ — $ 1,530,518 $ — $ — GSE obligations 416,025 — 416,025 — — GSE MBS 866,019 — 866,019 — — Total trading securities 2,812,562 — 2,812,562 — — Available-for-sale securities: U.S. Treasury obligations 4,261,791 — 4,261,791 — — GSE MBS 2,920,709 — 2,920,709 — — Total available-for-sale securities 7,182,500 — 7,182,500 — — Derivative assets: Interest-rate related 154,309 — 24,315 — 129,994 Mortgage delivery commitments 495 — 495 — — Total derivative assets 154,804 — 24,810 — 129,994 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 10,149,866 $ — $ 10,019,872 $ — $ 129,994 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 177 $ — $ 106,683 $ — $ (106,506 ) Mortgage delivery commitments 25 — 25 — — Total derivative liabilities 202 — 106,708 — (106,506 ) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 202 $ — $ 106,708 $ — $ (106,506 ) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 1,909 $ — $ — $ 1,909 $ — Real estate owned 144 — — 144 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 2,053 $ — $ — $ 2,053 $ — 1 Represents the effect of legally enforceable master netting agreements that allow 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 Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019 . |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Commitments | As of March 31, 2020 and December 31, 2019 , off-balance sheet commitments are presented in Table 13.1 (in thousands): Table 13.1 03/31/2020 12/31/2019 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 $ 4,732,084 $ 7,935 $ 4,740,019 $ 4,764,724 $ 4,335 $ 4,769,059 Advance commitments outstanding 61,688 18,632 80,320 64,282 15,693 79,975 Commitments for standby bond purchases 214,751 483,789 698,540 — 701,392 701,392 Commitments to fund or purchase mortgage loans 910,677 — 910,677 221,800 — 221,800 Commitments to issue consolidated bonds, at par 210,000 — 210,000 — — — Commitments to issue consolidated discount notes, at par — — — 411,161 — 411,161 |
Transactions With Stockholders
Transactions With Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions, by Balance Sheet Grouping | Tables 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of March 31, 2020 and December 31, 2019 (dollar amounts in thousands). None of the officers or directors of these members currently serve on FHLBank’s board of directors. Table 14.1 03/31/2020 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 MidFirst Bank OK $ 500 0.1 % $ 431,950 31.9 % $ 432,450 24.0 % BOKF, N.A. OK 68,664 15.3 247,000 18.2 315,664 17.5 TOTAL $ 69,164 15.4 % $ 678,950 50.1 % $ 748,114 41.5 % Table 14.2 12/31/2019 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 MidFirst Bank OK $ 500 0.1 % $ 385,825 29.2 % $ 386,325 21.8 % BOKF, N.A. OK 184,282 41.0 202,000 15.3 386,282 21.8 TOTAL $ 184,782 41.1 % $ 587,825 44.5 % $ 772,607 43.6 % Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of March 31, 2020 and December 31, 2019 are summarized in Table 14.3 (dollar amounts in thousands). Table 14.3 03/31/2020 12/31/2019 03/31/2020 12/31/2019 Member Name Outstanding Advances Percent of Total Outstanding Advances Percent of Total Outstanding Deposits Percent of Total Outstanding Deposits Percent of Total MidFirst Bank $ 9,610,000 30.6 % $ 8,585,000 28.5 % $ 1,217 0.1 % $ 1,030 0.1 % BOKF, N.A. 5,500,000 17.5 4,500,000 14.9 19,760 2.0 22,457 2.9 TOTAL $ 15,110,000 48.1 % $ 13,085,000 43.4 % $ 20,977 2.1 % $ 23,487 3.0 % |
Related Party Transactions, by Balance Sheet Grouping - Directors' | Table 14.4 presents information as of March 31, 2020 and December 31, 2019 for members that had an officer or director serving on FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock. Table 14.4 03/31/2020 12/31/2019 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 143,302 0.5 % $ 178,945 0.6 % Deposits $ 16,765 1.7 % $ 15,748 2.0 % Class A Common Stock $ 4,671 1.0 % $ 6,467 1.4 % Class B Common Stock 5,269 0.4 5,571 0.4 TOTAL CAPITAL STOCK $ 9,940 0.6 % $ 12,038 0.7 % |
Schedule Of Related Party Transactions, Mortgage Loans Disclosure | Table 14.5 presents mortgage loans acquired during the three months ended March 31, 2020 and 2019 for members that had an officer or director serving on FHLBank’s board of directors in 2020 or 2019 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Table 14.5 Three Months Ended 03/31/2020 03/31/2019 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 46,109 5.2 % $ 23,080 4.8 % |
BASIS OF PRESENTATION BASIS OF
BASIS OF PRESENTATION BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Available-for-sale securities | $ 24,294 | $ 15,396 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (94,105) | $ 11,921 |
Scenario, Adjustment [Member] | QTD March 31, 2019 [Member] | ||
Available-for-sale securities | 2,545 | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (2,545) | |
Scenario, Adjustment [Member] | YTD September 30, 2019 [Member] | ||
Available-for-sale securities | 14,336 | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | $ (14,336) |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Marketable Securities [Line Items] | ||
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated | 49.00% | |
Securities Purchased under Agreements to Resell, Allowance for Credit Loss | $ 0 | $ 0 |
Debt Securities, Held-to-maturity, Credit Loss Expense (Reversal) | 0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 0 | |
Available-for-sale Securities [Member] | ||
Marketable Securities [Line Items] | ||
Provision for Other Credit Losses | 0 | |
Interest-bearing Deposits and Federal Funds Sold [Member] | ||
Marketable Securities [Line Items] | ||
Investment securities, Allowance for Credit Loss | 0 | 0 |
Interest-bearing Deposits [Member] | ||
Marketable Securities [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | 362 | 589 |
Federal Funds Sold [Member] | ||
Marketable Securities [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | 4 | 30 |
Securities Borrowed or Purchased under Agreements to Resell [Member] | ||
Marketable Securities [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | $ 4 | $ 424 |
Investment Securities Investmen
Investment Securities Investment Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 3,177,991 | $ 2,812,562 |
Certificates of Deposit [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 275,055 | 0 |
U.S. Treasury obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,570,261 | 1,530,518 |
GSE obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 433,576 | 416,025 |
Non-mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 2,278,892 | 1,946,543 |
GSE MBS [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 899,099 | 866,019 |
Mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 899,099 | $ 866,019 |
Investment Securities (Net Gain
Investment Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains (losses) on trading securities held as of current period end | $ 94,203 | $ 28,659 |
Net gains (losses) on trading securities sold or matured prior to current period end | 186 | 96 |
NET GAINS (LOSSES) ON TRADING SECURITIES | $ 94,389 | $ 28,755 |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities by Major Security Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | $ 28,429 | $ 30,321 |
Debt Securities, Available-for-Sale, Excluded Accrued Interest from Amortized Cost | true | |
Amortized Cost | $ 7,593,439 | 7,155,712 |
Gross Unrecognized Gains | 17,286 | 31,933 |
Gross Unrecognized Losses | (84,629) | (5,145) |
Fair Value | 7,526,096 | 7,182,500 |
U.S. Treasury obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,352,488 | 4,258,608 |
Gross Unrecognized Gains | 2,192 | 3,580 |
Gross Unrecognized Losses | (984) | (397) |
Fair Value | 4,353,696 | 4,261,791 |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,352,488 | 4,258,608 |
Gross Unrecognized Gains | 2,192 | 3,580 |
Gross Unrecognized Losses | (984) | (397) |
Fair Value | 4,353,696 | 4,261,791 |
GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,240,951 | 2,897,104 |
Gross Unrecognized Gains | 15,094 | 28,353 |
Gross Unrecognized Losses | (83,645) | (4,748) |
Fair Value | 3,172,400 | 2,920,709 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,240,951 | 2,897,104 |
Gross Unrecognized Gains | 15,094 | 28,353 |
Gross Unrecognized Losses | (83,645) | (4,748) |
Fair Value | $ 3,172,400 | $ 2,920,709 |
Investment Securities (Availa_2
Investment Securities (Available-for-sale securities with unrealized losses, fair value) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 3,211,532 | $ 2,366,813 |
Less than 12 Months, Unrealized Losses | (74,284) | (1,329) |
12 Months or More, Fair Value | 642,987 | 301,161 |
12 Months or More, Unrealized Losses | (10,345) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 3,854,519 | 2,667,974 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (84,629) | (5,145) |
U.S. Treasury obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,238,322 | 1,579,004 |
Less than 12 Months, Unrealized Losses | (452) | (397) |
12 Months or More, Fair Value | 324,054 | 0 |
12 Months or More, Unrealized Losses | (532) | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,562,376 | 1,579,004 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (984) | (397) |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,238,322 | 1,579,004 |
Less than 12 Months, Unrealized Losses | (452) | (397) |
12 Months or More, Fair Value | 324,054 | 0 |
12 Months or More, Unrealized Losses | (532) | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 1,562,376 | 1,579,004 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (984) | (397) |
GSE MBS [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,973,210 | 787,809 |
Less than 12 Months, Unrealized Losses | (73,832) | (932) |
12 Months or More, Fair Value | 318,933 | 301,161 |
12 Months or More, Unrealized Losses | (9,813) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,292,143 | 1,088,970 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (83,645) | (4,748) |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,973,210 | 787,809 |
Less than 12 Months, Unrealized Losses | (73,832) | (932) |
12 Months or More, Fair Value | 318,933 | 301,161 |
12 Months or More, Unrealized Losses | (9,813) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 2,292,143 | 1,088,970 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | $ (83,645) | $ (4,748) |
Investment Securities (Availa_3
Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | $ 7,593,439 | $ 7,155,712 |
Fair Value | 7,526,096 | 7,182,500 |
Non-mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | 1,268,884 | 754,003 |
Due after one year through five years, Amortized Cost | 3,083,604 | 3,504,605 |
Due after five years through ten years, Amortized Cost | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Amortized Cost | 4,352,488 | 4,258,608 |
Due in one year or less, Fair Value | 1,269,148 | 753,891 |
Due after one year through five years, Fair Value | 3,084,548 | 3,507,900 |
Due after five years though ten years, Fair Value | 0 | 0 |
Due after ten years, Fair Value | 0 | 0 |
Fair Value | 4,353,696 | 4,261,791 |
Mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | 3,240,951 | 2,897,104 |
Mortgage-backed securities, Amortized Cost | 3,240,951 | 2,897,104 |
Mortgage-backed securities, Fair Value | 3,172,400 | 2,920,709 |
Fair Value | $ 3,172,400 | $ 2,920,709 |
Investment Securities Investm_2
Investment Securities Investment Securities (Net Gains (Losses) Realized AFS Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale, Sale [Abstract] | ||
Proceeds from sale of available-for-sale securities | $ 289,045 | $ 0 |
Gross gains on sale of available-for-sale securities | 1,526 | |
Gross losses on sale of available-for-sale securities | (3) | |
NET GAINS (LOSSES) ON SALE OF AVAILABLE-FOR-SALE SECURITIES | $ 1,523 | $ 0 |
Investment Securities (Held-To-
Investment Securities (Held-To-Maturity Securities by Major Security Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss | $ 3,576 | $ 4,324 |
Debt Securities, Held-to-Maturity, Excluded Accrued Interest | true | |
Amortized Cost | $ 3,341,338 | 3,569,958 |
Carrying Value | 3,341,338 | 3,569,958 |
Gross Unrecognized Gains | 4,381 | 6,563 |
Gross Unrecognized Losses | (26,088) | (19,583) |
Held-to-maturity, Fair Value | 3,319,631 | 3,556,938 |
State or local housing agency obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 82,805 | 82,805 |
Carrying Value | 82,805 | 82,805 |
Gross Unrecognized Gains | 2 | 5 |
Gross Unrecognized Losses | (1,496) | (1,956) |
Held-to-maturity, Fair Value | 81,311 | 80,854 |
Non-mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 82,805 | 82,805 |
Carrying Value | 82,805 | 82,805 |
Gross Unrecognized Gains | 2 | 5 |
Gross Unrecognized Losses | (1,496) | (1,956) |
Held-to-maturity, Fair Value | 81,311 | 80,854 |
U.S. obligation MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 89,563 | 93,375 |
Carrying Value | 89,563 | 93,375 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (1,123) | (496) |
Held-to-maturity, Fair Value | 88,440 | 92,879 |
GSE MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,168,970 | 3,393,778 |
Carrying Value | 3,168,970 | 3,393,778 |
Gross Unrecognized Gains | 4,379 | 6,558 |
Gross Unrecognized Losses | (23,469) | (17,131) |
Held-to-maturity, Fair Value | 3,149,880 | 3,383,205 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 3,258,533 | 3,487,153 |
Carrying Value | 3,258,533 | 3,487,153 |
Gross Unrecognized Gains | 4,379 | 6,558 |
Gross Unrecognized Losses | (24,592) | (17,627) |
Held-to-maturity, Fair Value | $ 3,238,320 | $ 3,476,084 |
Investment Securities (Held-T_2
Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | $ 3,341,338 | $ 3,569,958 |
Carrying Value | 3,341,338 | 3,569,958 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 3,319,631 | 3,556,938 |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
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 | 82,805 | 82,805 |
Amortized Cost | 82,805 | 82,805 |
Carrying Value | 82,805 | 82,805 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
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 | 81,311 | 80,854 |
Fair Value | 81,311 | 80,854 |
Non-mortgage-backed securities [Member] | Amortized Cost Before Allowance For Credit Losses And Non-Credit Other-Than-Temporary Impairment [Member] | ||
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
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 | 82,805 | 82,805 |
Mortgage-backed securities [Member] | ||
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | 3,258,533 | 3,487,153 |
Carrying Value | 3,258,533 | 3,487,153 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | $ 3,238,320 | $ 3,476,084 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 31,355,848 | $ 30,172,055 |
Federal Home Loan Bank Advances Receivable [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances, past due | 0 | 0 |
Advances, Nonaccrual | 0 | 0 |
Advances Impaired, Unpaid Principal Balance | 0 | 0 |
Advances, Troubled Debt Restructuring | 0 | 0 |
Advances, Allowance for Credit Loss | $ 0 | $ 0 |
Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | 0.09% | 0.96% |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Amount | ||
Due in one year or less | $ 12,856,757 | $ 13,188,118 |
Due after one year through two years | 2,640,111 | 10,448,433 |
Due after two years through three years | 1,240,159 | 1,254,153 |
Due after three years through four years | 1,130,479 | 1,067,662 |
Due after four years through five years | 1,568,352 | 1,208,854 |
Thereafter | 11,919,990 | 3,004,835 |
TOTAL PAR VALUE | 31,355,848 | 30,172,055 |
Discounts | (5,688) | (1,807) |
Hedging adjustments | 327,923 | 71,067 |
TOTAL | $ 31,678,083 | $ 30,241,315 |
Weighted Average Interest Rate | ||
Due in one year or less | 1.11% | 1.88% |
Due after one year through two years | 1.85% | 1.96% |
Due after two years through three years | 1.95% | 2.27% |
Due after three years through four years | 2.24% | 2.42% |
Due after four years through five years | 1.79% | 2.22% |
Thereafter | 1.63% | 2.25% |
Total par value | 1.48% | 1.99% |
Federal Home Loan Bank Advances Receivable [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances, Accrued Interest, after Allowance for Credit Loss | $ 40,265 | $ 45,637 |
Advances (Advances by Year of R
Advances (Advances by Year of Redemption Term, Next Call Date, or Next Convert Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Redemption Term, Year of Redemption Term or Next Call Date | ||
Due in one year or less | $ 24,917,487 | $ 24,271,238 |
Due after one year through two years | 853,053 | 1,133,077 |
Due after two years through three years | 776,494 | 728,429 |
Due after three years through four years | 839,249 | 764,990 |
Due after four years through five years | 982,582 | 686,594 |
Thereafter | 2,986,983 | 2,587,727 |
TOTAL PAR VALUE | 31,355,848 | 30,172,055 |
Redemption Term, Year of Redemption Term or Next Conversion Date | ||
Due in one year or less | 13,878,057 | 14,053,068 |
Due after one year through two years | 2,786,661 | 10,637,833 |
Due after two years through three years | 1,583,159 | 1,524,153 |
Due after three years through four years | 1,272,229 | 1,215,412 |
Due after four years through five years | 1,663,752 | 1,304,254 |
Thereafter | 10,171,990 | 1,437,335 |
TOTAL PAR VALUE | $ 31,355,848 | $ 30,172,055 |
Advances (Advances by Interest
Advances (Advances by Interest Rate Payment Terms) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed rate: | ||
Due in one year or less | $ 3,057,383 | $ 2,691,528 |
Due after one year | 6,453,279 | 5,912,124 |
Total fixed rate | 9,510,662 | 8,603,652 |
Variable rate: | ||
Due in one year or less | 9,799,374 | 10,496,590 |
Due after one year | 12,045,812 | 11,071,813 |
Total variable rate | 21,845,186 | 21,568,403 |
TOTAL PAR VALUE | $ 31,355,848 | $ 30,172,055 |
Mortgage Loans Mortgage Loans (
Mortgage Loans Mortgage Loans (Narrative) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Allowance for Credit Losses on Mortgage Loans | [1] | $ 6,468,000 | $ 985,000 |
US Government Agency Insured Loans [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Allowance for Credit Losses on Mortgage Loans | 0 | $ 0 | |
Loans on non-accrual status | $ 0 | ||
[1] | Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5). |
Mortgage Loans (Mortgage Loans
Mortgage Loans (Mortgage Loans Held For Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total unpaid principal balance | $ 10,858,650 | $ 10,475,653 | ||
Premiums | 162,466 | 155,793 | ||
Discounts | (2,347) | (2,503) | ||
Deferred loan costs, net | 174 | 184 | ||
Other deferred fees | (36) | (38) | ||
Hedging adjustments | 5,729 | 4,905 | ||
Total before Allowance for Credit Losses on Mortgage Loans | 11,024,636 | [1] | 10,633,994 | |
Allowance for Credit Losses on Mortgage Loans | [2] | (6,468) | (985) | |
MORTGAGE LOANS HELD FOR PORTFOLIO, NET | 11,018,168 | 10,633,009 | ||
Mortgage Loans [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | 54,348 | 52,358 | ||
Adjustment for cumulative effect of accounting change | 6,123 | |||
Fixed rates, medium-term [Member] | Single-family mortgage [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total unpaid principal balance | [3] | 1,408,353 | 1,347,385 | |
Fixed rates, long-term [Member] | Single-family mortgage [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total unpaid principal balance | $ 9,450,297 | $ 9,128,268 | ||
[1] | Excludes accrued interest receivable. | |||
[2] | Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5). | |||
[3] | Medium-term defined as a term of 15 years or less at origination. |
Mortgage Loans (Mortgage Loan_2
Mortgage Loans (Mortgage Loans Held For Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 10,858,650 | $ 10,475,653 |
Government Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | 610,867 | 626,111 |
Conventional Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 10,247,783 | $ 9,849,542 |
Mortgage Loans Mortgage Loans_2
Mortgage Loans Mortgage Loans (Credit Quality Indicator for Conventional Mortgage Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | $ 11,024,636 | [1] | $ 10,633,994 | |
Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 108,592 | ||
Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 10,916,044 | ||
Mortgage Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
In process of foreclosure, included above | [2] | 6,363 | ||
Past due 90 days or more and still accruing interest | 7,701 | |||
Loans on non-accrual status | [3] | 15,157 | ||
Mortgage Loans, Troubled Debt Restructuring | 1,361 | 1,219 | ||
Mortgage Loans [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
In process of foreclosure, included above | [2] | 6,082 | ||
Past due 90 days or more and still accruing interest | 8,778 | |||
Loans on non-accrual status | [4] | 14,923 | ||
Recorded investment: | ||||
Total recorded investment | [5] | 10,686,351 | ||
Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 109,021 | ||
Mortgage Loans [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [5] | 10,577,330 | ||
Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 2,741,845 | ||
2016 | [1] | 875,232 | ||
2017 | [1] | 1,091,077 | ||
2018 | [1] | 1,320,001 | ||
2019 | [1] | 3,680,054 | ||
2020 | [1] | 697,256 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 10,405,465 | ||
In process of foreclosure, included above | [2] | 3,441 | ||
Past due 90 days or more and still accruing interest | 0 | |||
Loans on non-accrual status | [3] | 15,157 | ||
Conventional Mortgage Loan [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
In process of foreclosure, included above | [2] | 3,352 | ||
Past due 90 days or more and still accruing interest | 0 | |||
Loans on non-accrual status | [4] | 14,923 | ||
Recorded investment: | ||||
Total recorded investment | [5] | 10,048,530 | ||
Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 39,117 | ||
2016 | [1] | 6,077 | ||
2017 | [1] | 10,205 | ||
2018 | [1] | 12,780 | ||
2019 | [1] | 11,943 | ||
2020 | [1] | 0 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 80,122 | ||
Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 78,600 | ||
Conventional Mortgage Loan [Member] | Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 2,702,728 | ||
2016 | [1] | 869,155 | ||
2017 | [1] | 1,080,872 | ||
2018 | [1] | 1,307,221 | ||
2019 | [1] | 3,668,111 | ||
2020 | [1] | 697,256 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 10,325,343 | ||
Conventional Mortgage Loan [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [5] | 9,969,930 | ||
Government Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 619,171 | ||
In process of foreclosure, included above | [2] | 2,922 | ||
Past due 90 days or more and still accruing interest | 7,701 | |||
Loans on non-accrual status | [3] | 0 | ||
Government Loans [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
In process of foreclosure, included above | [2] | 2,730 | ||
Past due 90 days or more and still accruing interest | 8,778 | |||
Loans on non-accrual status | [4] | 0 | ||
Recorded investment: | ||||
Total recorded investment | [5] | 637,821 | ||
Government Loans [Member] | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 28,470 | ||
Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 30,421 | ||
Government Loans [Member] | Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 590,701 | ||
Government Loans [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [5] | 607,400 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 73,885 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 74,741 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 26,537 | ||
2016 | [1] | 4,645 | ||
2017 | [1] | 7,718 | ||
2018 | [1] | 8,670 | ||
2019 | [1] | 11,031 | ||
2020 | [1] | 0 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 58,601 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 59,226 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Government Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 15,284 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 15,515 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 15,969 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 13,689 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 6,883 | ||
2016 | [1] | 607 | ||
2017 | [1] | 1,209 | ||
2018 | [1] | 873 | ||
2019 | [1] | 912 | ||
2020 | [1] | 0 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 10,484 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | 7,561 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Government Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 5,485 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | $ 6,128 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | $ 18,738 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Mortgage Loans [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Serious delinquency rate | [6] | 0.20% | 0.10% | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | $ 20,591 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | $ 5,697 | ||
2016 | [1] | 825 | ||
2017 | [1] | 1,278 | ||
2018 | [1] | 3,237 | ||
2019 | [1] | 0 | ||
2020 | [1] | 0 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | $ 11,037 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Serious delinquency rate | [6] | 0.10% | 0.10% | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | $ 11,813 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Government Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | $ 7,701 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Government Loans [Member] | Recorded Investment [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Serious delinquency rate | [6] | 1.20% | 1.40% | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [5] | $ 8,778 | ||
[1] | Excludes accrued interest receivable. | |||
[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 on non-accrual status include $1,361,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which 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 on non-accrual status include $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | |||
[5] | Includes accrued interest receivable. | |||
[6] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. |
Mortgage Loans (Rollforward of
Mortgage Loans (Rollforward of Allowance for Credit Losses on Conventional Mortgage Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Allowance for credit losses: | |||
Balance, beginning of the period | [1] | $ 985 | |
Provision (reversal) for credit losses | (736) | $ 78 | |
Balance, end of the period | [1] | 6,468 | |
Conventional Loans [Member] | |||
Allowance for credit losses: | |||
Balance, beginning of the period | 985 | 812 | |
Adjustment for cumulative effect of accounting change | 6,123 | 0 | |
Net (charge-offs) recoveries | 96 | (66) | |
Provision (reversal) for credit losses | (736) | 78 | |
Balance, end of the period | $ 6,468 | $ 824 | |
[1] | Effective January 1, 2020, new accounting guidance was adopted relating to the measurement of credit losses on financial instruments and resulted in a cumulative effect adjustment of $6,123,000 (see Table 5.5). |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Uncleared derivatives [Member] | Counterparty One [Member] | ||
Derivative [Line Items] | ||
Maximum credit risk applicable to a single counterparty (at period end) | $ 617 | $ 211 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities (Fair Values of Derivatives Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 23,332,077 | $ 20,899,934 | |
TOTAL, Derivative Assets | 26,723 | 24,810 | |
TOTAL, Derivative Liabilities | 374,615 | 106,708 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 176,726 | 129,994 |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (366,045) | (106,506) |
DERIVATIVE ASSETS | 203,449 | 154,804 | |
DERIVATIVE LIABILITIES | 8,570 | 202 | |
Cash collateral posted | 543,571 | 236,700 | |
Cash collateral received | 800 | 200 | |
Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 18,927,900 | 16,448,512 | |
TOTAL, Derivative Assets | 25,165 | 23,462 | |
TOTAL, Derivative Liabilities | 291,756 | 80,398 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 4,404,177 | 4,451,422 | |
TOTAL, Derivative Assets | 1,558 | 1,348 | |
TOTAL, Derivative Liabilities | 82,859 | 26,310 | |
Interest rate swaps [Member] | Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 18,927,900 | 16,448,512 | |
TOTAL, Derivative Assets | 25,165 | 23,462 | |
TOTAL, Derivative Liabilities | 291,756 | 80,398 | |
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 2,731,000 | 3,099,622 | |
TOTAL, Derivative Assets | 362 | 736 | |
TOTAL, Derivative Liabilities | 75,061 | 26,285 | |
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 762,500 | 1,130,000 | |
TOTAL, Derivative Assets | 262 | 117 | |
TOTAL, Derivative Liabilities | 0 | 0 | |
Mortgage delivery commitments [Member] | Not Designated as Hedging Instrument [Member] | Mortgage Receivable [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 910,677 | 221,800 | |
TOTAL, Derivative Assets | 934 | 495 | |
TOTAL, Derivative Liabilities | $ 7,798 | $ 25 | |
[1] | Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019, respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Net Gains or Losses on Derivatives and Hedging Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts presented in the Statements of Income, Advances | $ 130,887 | $ 187,609 | |
Total amounts presented in the Statements of Income, Available-for-sale Securities | 24,294 | 15,396 | |
Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes | 92,951 | 148,991 | |
Total amounts presented in the Statements of Income, Consolidated Obligations Bonds | 150,742 | 158,157 | |
Interest Rate Contract [Member] | Advances [Member] | Interest Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives1 | [1] | (260,132) | (33,072) |
Hedged items2 | [2] | 256,842 | 39,502 |
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (3,290) | 6,430 | |
Interest Rate Contract [Member] | Available-for-sale Securities [Member] | Interest Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives1 | [1] | (360,283) | (44,192) |
Hedged items2 | [2] | 344,143 | 42,113 |
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (16,140) | (2,079) | |
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives1 | [1] | 18,523 | 32 |
Hedged items2 | [2] | (15,690) | (30) |
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 2,833 | 2 | |
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives1 | [1] | 45,446 | 9,705 |
Hedged items2 | [2] | (39,825) | (13,549) |
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | $ 5,621 | $ (3,844) | |
[1] | Includes net interest settlements in interest income/expense. | ||
[2] | Includes amortization/accretion on closed fair value relationships in interest income. |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Advances [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Asset, Fair Value Hedge1 | [1] | $ 5,568,718 | $ 4,951,445 |
Asset, Basis Adjustments for Active Hedging Relationships2 | [2] | 323,770 | 69,643 |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 4,153 | 1,424 |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | 327,923 | 71,067 |
Available-for-sale Securities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Asset, Fair Value Hedge1 | [1] | 7,593,439 | 7,155,712 |
Asset, Basis Adjustments for Active Hedging Relationships2 | [2] | 420,968 | 79,141 |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | 0 |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | 420,968 | 79,141 |
Consolidated Obligation Discount Notes [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Liability, Fair Value Hedge1 | [1] | (3,993,727) | |
Liability, Basis Adjustments for Active Hedging Relationships2 | [2] | (15,540) | |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | (15,540) | |
Consolidated Obligation Bonds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Liability, Fair Value Hedge1 | [1] | (2,757,036) | (3,270,635) |
Liability, Basis Adjustments for Active Hedging Relationships2 | [2] | (66,215) | (26,389) |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | 0 |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | $ (66,215) | $ (26,389) |
[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) - Gain (Loss) on Derivative Instruments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | $ (122,252) | $ (18,542) |
Interest rate swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | (111,715) | (19,185) |
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | 145 | (626) |
Net Interest Settlements [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | (5,154) | (296) |
Mortgage delivery commitments [Member] | Mortgage Receivable [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | (5,528) | 1,635 |
Consolidated obligation discount note commitments [Member] | ||
Derivative Instruments, Gain (Loss) [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 | Mar. 31, 2020 | Dec. 31, 2019 |
Interest-bearing: | ||
Demand | $ 433,061 | $ 383,197 |
Overnight | 365,400 | 280,300 |
Term Deposits | 1,000 | 0 |
Total interest-bearing | 799,461 | 663,497 |
Non-interest-bearing: | ||
Other | 175,936 | 127,143 |
Total non-interest-bearing | 175,936 | 127,143 |
TOTAL DEPOSITS | $ 975,397 | $ 790,640 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Par value | $ 33,634,300 | $ 31,970,700 |
Federal Home Loan Bank, Consolidated Obligations, Callable Option [Member] | ||
Debt Instrument [Line Items] | ||
Par value | $ 8,161,500 | $ 8,891,500 |
Consolidated Obligations (Conso
Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 17,467,750 | $ 15,991,800 |
Due in one year or less, Weighted Average Interest Rate | 1.11% | 1.79% |
Due after one year through two years | $ 5,970,950 | $ 6,318,350 |
Due after one year through two years, Weighted Average Interest Rate | 1.66% | 1.90% |
Due after two years through three years | $ 1,758,400 | $ 1,375,000 |
Due after two years through three years, Weighted Average Interest Rate | 2.01% | 2.11% |
Due after three years through four years | $ 1,017,200 | $ 1,285,900 |
Due after three years through four years, Weighted Average Interest Rate | 2.11% | 2.39% |
Due after four years through five years | $ 1,367,700 | $ 1,223,350 |
Due after four years through five years, Weighted Average Interest Rate | 2.02% | 2.40% |
Thereafter | $ 6,052,300 | $ 5,776,300 |
Thereafter, Weighted Average Interest Rate | 2.52% | 2.78% |
Total par value | $ 33,634,300 | $ 31,970,700 |
Total par value, Weighted Average Interest Rate | 1.58% | 2.05% |
Premium | $ 50,201 | $ 34,789 |
Discounts | (3,858) | (3,357) |
Concession fees | (16,803) | (15,207) |
Hedging adjustments | 66,215 | 26,389 |
TOTAL | $ 33,730,055 | $ 32,013,314 |
Consolidated Obligations (Con_2
Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 17,467,750 | $ 15,991,800 |
Due after one year through two years | 5,970,950 | 6,318,350 |
Due after two years through three years | 1,758,400 | 1,375,000 |
Due after three years through four years | 1,017,200 | 1,285,900 |
Due after four years through five years | 1,367,700 | 1,223,350 |
Thereafter | 6,052,300 | 5,776,300 |
Total par value | 33,634,300 | 31,970,700 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 25,629,250 | 24,583,300 |
Due after one year through two years | 5,495,950 | 5,148,350 |
Due after two years through three years | 938,400 | 615,000 |
Due after three years through four years | 493,700 | 682,400 |
Due after four years through five years | 456,200 | 356,850 |
Thereafter | $ 620,800 | $ 584,800 |
Consolidated Obligations (Con_3
Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total par value | $ 33,634,300 | $ 31,970,700 |
Simple variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 18,038,000 | 16,017,000 |
Fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 15,546,300 | 15,573,700 |
Step [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 50,000 | 110,000 |
Variable rate with cap [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 0 | 220,000 |
Fixed to variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 0 | $ 50,000 |
Consolidated Obligations (Con_4
Consolidated Obligations (Consolidated Discount Notes Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Book Value | $ 25,563,980 | $ 27,447,911 | |
Consolidated Obligation Discount Notes [Member] | |||
Short-term Debt [Line Items] | |||
Par Value | $ 25,586,959 | $ 27,510,042 | |
Weighted Average Interest Rate | [1] | 1.17% | 1.54% |
[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 | Mar. 31, 2020 | Dec. 31, 2019 | |
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | $ 26,723 | $ 24,810 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | [1],[2] | 176,726 | 129,994 |
Total derivative assets | 203,449 | 154,804 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (934) | (495) |
Derivative assets, Net Amount | 202,515 | 154,309 | |
Securities purchased under agreements to resell, Gross Amounts of Recognized Assets | 2,700,000 | 4,750,000 | |
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 | 2,700,000 | 4,750,000 | |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,700,000) | (4,750,000) |
Securities purchased under agreements to resell, Net Amount | 0 | 0 | |
TOTAL, Gross Amounts of Recognized Assets | 2,726,723 | 4,774,810 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | 176,726 | 129,994 | |
TOTAL, Net Amounts of Assets Presented in the Statement of Condition | 2,903,449 | 4,904,804 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,700,934) | (4,750,495) |
TOTAL, Net Amount | 202,515 | 154,309 | |
Uncleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 22,162 | 21,749 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | (19,823) | (14,424) | |
Total derivative assets | 2,339 | 7,325 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (934) | (495) |
Derivative assets, Net Amount | 1,405 | 6,830 | |
Cleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 4,561 | 3,061 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | 196,549 | 144,418 | |
Total derivative assets | 201,110 | 147,479 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative assets, Net Amount | $ 201,110 | $ 147,479 | |
[1] | Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019, respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Assets and Liabilities Subjec_4
Assets and Liabilities Subject to Offsetting Liabilities Subject to Offsetting (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | $ 374,615 | $ 106,708 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | [1],[2] | (366,045) | (106,506) |
Total derivative liabilities | 8,570 | 202 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (7,798) | (25) |
Derivative liabilities, Net Amount | 772 | 177 | |
TOTAL, Gross Amounts of Recognized Liabilities | 374,615 | 106,708 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | (366,045) | (106,506) | |
TOTAL, Net Amounts of Liabilities Presented in the Statement of Condition | 8,570 | 202 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (7,798) | (25) |
TOTAL, Net Amount | 772 | 177 | |
Uncleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 370,366 | 105,468 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (361,796) | (105,266) | |
Total derivative liabilities | 8,570 | 202 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (7,798) | (25) |
Derivative liabilities, Net Amount | 772 | 177 | |
Cleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 4,249 | 1,240 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (4,249) | (1,240) | |
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 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019, respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Capital (Narrative) (Details)
Capital (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2020$ / sharesRate | Dec. 31, 2019$ / 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Regulatory capital requirements: | ||
Risk-based capital, Required | $ 407,775 | $ 486,650 |
Risk-based capital, Actual | $ 2,335,377 | $ 2,319,531 |
Total regulatory capital-to-asset ratio, Required | 4.00% | 4.00% |
Total regulatory capital-to-asset ratio, Actual | 4.40% | 4.40% |
Total regulatory capital, Required | $ 2,527,581 | $ 2,531,066 |
Total regulatory capital, Actual | $ 2,785,298 | $ 2,768,680 |
Leverage capital ratio, Required | 5.00% | 5.00% |
Leverage capital ratio, Actual | 6.30% | 6.20% |
Leverage capital, Required | $ 3,159,476 | $ 3,163,833 |
Leverage capital, Actual | $ 3,952,986 | $ 3,928,446 |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Mandatorily Redeemable Capital Stock [Roll Forward] | ||
Balance, beginning of period | $ 2,415 | $ 3,597 |
Capital stock subject to mandatory redemption reclassified from equity during the period | 305,957 | 23,915 |
Capital stock redemption cancellations reclassified to equity during the period | (100,647) | 0 |
Redemption or repurchase of mandatorily redeemable capital stock during the period | (205,359) | (24,006) |
Stock dividend classified as mandatorily redeemable capital stock during the period | 24 | 42 |
Balance, end of period | $ 2,390 | $ 3,548 |
Capital (Mandatorily Redeemab_2
Capital (Mandatorily Redeemable Capital Stock By Contractual Year Of Redemption) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Contractual Year of Repurchase | |||||
Year 1 | $ 0 | $ 0 | |||
Year 2 | 1 | 1 | |||
Year 3 | 868 | 869 | |||
Year 4 | 0 | 0 | |||
Year 5 | 0 | 0 | |||
Past contractual redemption date due to remaining activity | [1] | 1,521 | 1,545 | ||
TOTAL | $ 2,390 | $ 2,415 | $ 3,548 | $ 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_3
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at the beginning of the period | $ 2,791,051 | $ 2,454,252 | |
Reclassifications from other comprehensive income (loss) to net income: | |||
Total other comprehensive income (loss) | (94,105) | 11,921 | |
Balance at the end of the period | 2,713,589 | 2,478,850 | |
Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at the beginning of the period | 26,788 | 19,068 | |
Other comprehensive income (loss) before reclassification: | |||
Unrealized gains (losses) | (92,608) | 11,848 | |
Reclassifications from other comprehensive income (loss) to net income: | |||
Realized net (gains) losses included in net income2 | [1] | (1,523) | |
Total other comprehensive income (loss) | (94,131) | 11,848 | |
Balance at the end of the period | (67,343) | 30,916 | |
Defined Benefit Pension Plan [Member] | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at the beginning of the period | (2,002) | (3,375) | |
Reclassifications from other comprehensive income (loss) to net income: | |||
Amortization of net losses - defined benefit pension plan1 | [2] | 26 | 73 |
Total other comprehensive income (loss) | 26 | 73 | |
Balance at the end of the period | (1,976) | (3,302) | |
Total AOCI [Member] | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance at the beginning of the period | 24,786 | 15,693 | |
Other comprehensive income (loss) before reclassification: | |||
Unrealized gains (losses) | (92,608) | 11,848 | |
Reclassifications from other comprehensive income (loss) to net income: | |||
Realized net (gains) losses included in net income2 | [1] | (1,523) | |
Amortization of net losses - defined benefit pension plan1 | [2] | 26 | 73 |
Total other comprehensive income (loss) | (94,105) | 11,921 | |
Balance at the end of the period | $ (69,319) | $ 27,614 | |
[1] | Recorded in “Net gains (losses) on sale of available-for-sale securities” non-interest income on the Statements of Income. Amount represents a credit (increase 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 Value Summary
Fair Values (Fair Value Summary) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets: | |||
Cash and due from banks | $ 451,670 | $ 1,917,166 | |
Trading securities | 3,177,991 | 2,812,562 | |
Available-for-sale securities | 7,526,096 | 7,182,500 | |
Held-to-maturity securities, Carrying Value | 3,341,338 | 3,569,958 | |
Held-to-maturity securities | 3,319,631 | 3,556,938 | |
Accrued interest receivable | 143,873 | 143,765 | |
Derivative assets | 203,449 | 154,804 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 176,726 | 129,994 |
Liabilities: | |||
Accrued interest payable | 87,799 | 117,580 | |
Derivative liabilities | 8,570 | 202 | |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (366,045) | (106,506) |
Carrying Value [Member] | |||
Assets: | |||
Cash and due from banks | 451,670 | 1,917,166 | |
Interest-bearing deposits | 1,196,813 | 921,453 | |
Securities purchased under agreements to resell | 2,700,000 | 4,750,000 | |
Federal funds sold | 1,655,000 | 850,000 | |
Trading securities | 3,177,991 | 2,812,562 | |
Available-for-sale securities | 7,526,096 | 7,182,500 | |
Held-to-maturity securities, Carrying Value | 3,341,338 | 3,569,958 | |
Advances | 31,678,083 | 30,241,315 | |
Mortgage loans held for portfolio, net of allowance | 11,018,168 | 10,633,009 | |
Accrued interest receivable | 143,873 | 143,765 | |
Derivative assets | 203,449 | 154,804 | |
Liabilities: | |||
Deposits | 975,397 | 790,640 | |
Mandatorily redeemable capital stock | 2,390 | 2,415 | |
Accrued interest payable | 87,799 | 117,580 | |
Derivative liabilities | 8,570 | 202 | |
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 | 25,563,980 | 27,447,911 | |
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 33,730,055 | 32,013,314 | |
Fair Value [Member] | |||
Assets: | |||
Cash and due from banks | 451,670 | 1,917,166 | |
Interest-bearing deposits | 1,196,813 | 921,453 | |
Securities purchased under agreements to resell | 2,700,000 | 4,750,000 | |
Federal funds sold | 1,655,000 | 850,000 | |
Trading securities | 3,177,991 | 2,812,562 | |
Available-for-sale securities | 7,526,096 | 7,182,500 | |
Held-to-maturity securities | 3,319,631 | 3,556,938 | |
Advances | 31,730,957 | 30,295,813 | |
Mortgage loans held for portfolio, net of allowance | 11,584,130 | 10,983,356 | |
Accrued interest receivable | 143,873 | 143,765 | |
Derivative assets | 203,449 | 154,804 | |
Liabilities: | |||
Deposits | 975,397 | 790,640 | |
Mandatorily redeemable capital stock | 2,390 | 2,415 | |
Accrued interest payable | 87,799 | 117,580 | |
Derivative liabilities | 8,570 | 202 | |
Fair Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 36,936 | 34,850 | |
Fair Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (36,936) | (34,850) | |
Fair Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 25,582,865 | 27,448,021 | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 33,926,405 | 32,103,154 | |
Level 1 [Member] | |||
Assets: | |||
Cash and due from banks | 451,670 | 1,917,166 | |
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 | 2,390 | 2,415 | |
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 | 1,196,813 | 921,453 | |
Securities purchased under agreements to resell | 2,700,000 | 4,750,000 | |
Federal funds sold | 1,655,000 | 850,000 | |
Trading securities | 3,177,991 | 2,812,562 | |
Available-for-sale securities | 7,526,096 | 7,182,500 | |
Held-to-maturity securities | 3,238,320 | 3,476,084 | |
Advances | 31,730,957 | 30,295,813 | |
Mortgage loans held for portfolio, net of allowance | 11,582,673 | 10,981,458 | |
Accrued interest receivable | 143,873 | 143,765 | |
Derivative assets | 26,723 | 24,810 | |
Liabilities: | |||
Deposits | 975,397 | 790,640 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 87,799 | 117,580 | |
Derivative liabilities | 374,615 | 106,708 | |
Level 2 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 36,936 | 34,850 | |
Level 2 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (36,936) | (34,850) | |
Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 25,582,865 | 27,448,021 | |
Level 2 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 33,926,405 | 32,103,154 | |
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 | 81,311 | 80,854 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 1,457 | 1,898 | |
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] | Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019, respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty. |
Fair Values (Hierarchy Level fo
Fair Values (Hierarchy Level for Financial Assets And Liabilities - Recurring And Nonrecurring) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | $ 3,177,991 | $ 2,812,562 | ||||
Available-for-sale securities | 7,526,096 | 7,182,500 | ||||
Total derivative assets | 203,449 | 154,804 | ||||
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 176,726 | 129,994 | |||
Total derivative liabilities | 8,570 | 202 | ||||
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (366,045) | (106,506) | |||
Held-to-maturity securities | 3,319,631 | 3,556,938 | ||||
Certificates of Deposit [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 275,055 | 0 | ||||
U.S. Treasury obligations [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 1,570,261 | 1,530,518 | ||||
Available-for-sale securities | 4,353,696 | 4,261,791 | ||||
US Government-sponsored Enterprises Debt Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 433,576 | 416,025 | ||||
U.S. obligation MBS [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Held-to-maturity securities | 88,440 | 92,879 | ||||
GSE MBS [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 899,099 | 866,019 | ||||
Available-for-sale securities | 3,172,400 | 2,920,709 | ||||
Held-to-maturity securities | 3,149,880 | 3,383,205 | ||||
Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 3,177,991 | 2,812,562 | ||||
Available-for-sale securities | 7,526,096 | 7,182,500 | ||||
Total derivative assets | 26,723 | 24,810 | ||||
Total derivative liabilities | 374,615 | 106,708 | ||||
Held-to-maturity securities | 3,238,320 | 3,476,084 | ||||
Mortgage loans held for portfolio | 11,582,673 | 10,981,458 | ||||
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 | 81,311 | 80,854 | ||||
Mortgage loans held for portfolio | 1,457 | 1,898 | ||||
Fair Value [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 3,177,991 | 2,812,562 | ||||
Available-for-sale securities | 7,526,096 | 7,182,500 | ||||
Total derivative assets | 203,449 | 154,804 | ||||
Total derivative liabilities | 8,570 | 202 | ||||
Held-to-maturity securities | 3,319,631 | 3,556,938 | ||||
Mortgage loans held for portfolio | 11,584,130 | 10,983,356 | ||||
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] | 176,726 | 129,994 | $ 129,994 | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (366,045) | (106,506) | |||
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] | 176,726 | 129,994 | |||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (366,045) | (106,506) | |||
Recurring fair value measurements [Member] | Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 3,177,991 | 2,812,562 | ||||
Available-for-sale securities | 7,526,096 | 7,182,500 | ||||
Total derivative assets | 26,723 | 24,810 | ||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 10,730,810 | 10,019,872 | ||||
Total derivative liabilities | 374,615 | 106,708 | ||||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 374,615 | 106,708 | ||||
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 | 25,789 | 24,315 | ||||
Total derivative liabilities | 366,817 | 106,683 | ||||
Recurring fair value measurements [Member] | Level 2 [Member] | Certificates of Deposit [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 275,055 | |||||
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 | 1,570,261 | 1,530,518 | ||||
Available-for-sale securities | 4,353,696 | 4,261,791 | ||||
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 | 433,576 | 416,025 | ||||
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 | 899,099 | 866,019 | ||||
Available-for-sale securities | 3,172,400 | 2,920,709 | ||||
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 | 934 | 495 | ||||
Total derivative liabilities | 7,798 | 25 | ||||
Recurring fair value measurements [Member] | Fair Value [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 3,177,991 | 2,812,562 | ||||
Available-for-sale securities | 7,526,096 | 7,182,500 | ||||
Total derivative assets | 203,449 | 154,804 | ||||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 10,907,536 | 10,149,866 | ||||
Total derivative liabilities | 8,570 | 202 | ||||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 8,570 | 202 | ||||
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 | 202,515 | 154,309 | ||||
Total derivative liabilities | 772 | 177 | ||||
Recurring fair value measurements [Member] | Fair Value [Member] | Certificates of Deposit [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading securities | 275,055 | |||||
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 | 1,570,261 | 1,530,518 | ||||
Available-for-sale securities | 4,353,696 | 4,261,791 | ||||
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 | 433,576 | 416,025 | ||||
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 | 899,099 | 866,019 | ||||
Available-for-sale securities | 3,172,400 | 2,920,709 | ||||
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 | 934 | 495 | ||||
Total derivative liabilities | 7,798 | 25 | ||||
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 | 1,480 | [3] | 2,053 | [4] | ||
Mortgage loans held for portfolio | 1,463 | [3] | 1,909 | [4] | ||
Real estate owned | 17 | [3] | 144 | [4] | ||
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 | 1,480 | [3] | 2,053 | [4] | ||
Mortgage loans held for portfolio | 1,463 | [3] | 1,909 | [4] | ||
Real estate owned | $ 17 | [3] | $ 144 | [4] | ||
[1] | Amounts represent the application of the netting requirements that allow 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 $543,571,000 and $236,700,000 as of March 31, 2020 and December 31, 2019, respectively. Cash collateral received was $800,000 and $200,000 as of March 31, 2020 and December 31, 2019, respectively. | |||||
[2] | Represents the effect of legally enforceable master netting agreements that allow 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] | Includes assets adjusted to fair value during the three months ended March 31, 2020 and still outstanding as of March 31, 2020. | |||||
[4] | Includes assets adjusted to fair value during the year ended December 31, 2019 and still outstanding as of December 31, 2019. |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Off-balance Sheet Commitments: | ||
Obligation with Joint and Several Liability Arrangement, Description | As provided in the 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 | $ 1,115,448,699 | $ 966,413,924 |
Carrying value included in other liabilities | $ 64,446 | $ 70,514 |
Number of in-district state housing authorities with standby bond purchase agreements | 2 | 2 |
Stand by Bond Purchase Agreements, Aquired And Sold At Par, During the Period | $ 122,390 | |
Mortgage Delivery Commitments Derivative Asset (Liability) | (6,864) | $ 470 |
Standby Letters of Credit Outstanding [Member] | ||
Off-balance Sheet Commitments: | ||
Carrying value included in other liabilities | $ 1,388 | $ 1,470 |
Commitment Expiration Year (no later than) | 2024 | |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Standby letters of credit outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | $ 4,732,084 | $ 4,764,724 |
Expire After One Year | 7,935 | 4,335 |
Total | 4,740,019 | 4,769,059 |
Advance commitments outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 61,688 | 64,282 |
Expire After One Year | 18,632 | 15,693 |
Total | 80,320 | 79,975 |
Commitments for standby bond purchases [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 214,751 | 0 |
Expire After One Year | 483,789 | 701,392 |
Total | 698,540 | 701,392 |
Commitments to issue consolidated bonds, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 210,000 | 0 |
Expire After One Year | 0 | 0 |
Total | 210,000 | 0 |
Commitments to issue consolidated obligations discount notes, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 0 | 411,161 |
Expire After One Year | 0 | 0 |
Total | 0 | 411,161 |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 910,677 | 221,800 |
Expire After One Year | 0 | 0 |
Total | $ 910,677 | $ 221,800 |
Transactions With Stockholder_2
Transactions With Stockholders (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
BOKF, N.A. [Member] | |
Related Party Transaction [Line Items] | |
Mortgage loans acquired | $ 6,936 |
Transactions With Stockholder_3
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Outstanding Advances | $ 31,678,083 | $ 30,241,315 |
Outstanding Deposits | 975,397 | 790,640 |
Ten Percent Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 748,114 | $ 772,607 |
Regulatory Capital Stock, Percent Of Total | 41.50% | 43.60% |
Outstanding Advances | $ 15,110,000 | $ 13,085,000 |
Outstanding Advances, Percent of Total | 48.10% | 43.40% |
Outstanding Deposits | $ 20,977 | $ 23,487 |
Outstanding Deposits, Percent of Total | 2.10% | 3.00% |
Ten Percent Owner [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 69,164 | $ 184,782 |
Regulatory Capital Stock, Percent Of Total | 15.40% | 41.10% |
Ten Percent Owner [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 678,950 | $ 587,825 |
Regulatory Capital Stock, Percent Of Total | 50.10% | 44.50% |
MidFirst Bank [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 432,450 | $ 386,325 |
Regulatory Capital Stock, Percent Of Total | 24.00% | 21.80% |
Outstanding Advances | $ 9,610,000 | $ 8,585,000 |
Outstanding Advances, Percent of Total | 30.60% | 28.50% |
Outstanding Deposits | $ 1,217 | $ 1,030 |
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% | 0.10% |
MidFirst Bank [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 431,950 | $ 385,825 |
Regulatory Capital Stock, Percent Of Total | 31.90% | 29.20% |
BOKF, N.A. [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 315,664 | $ 386,282 |
Regulatory Capital Stock, Percent Of Total | 17.50% | 21.80% |
Outstanding Advances | $ 5,500,000 | $ 4,500,000 |
Outstanding Advances, Percent of Total | 17.50% | 14.90% |
Outstanding Deposits | $ 19,760 | $ 22,457 |
Outstanding Deposits, Percent of Total | 2.00% | 2.90% |
BOKF, N.A. [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 68,664 | $ 184,282 |
Regulatory Capital Stock, Percent Of Total | 15.30% | 41.00% |
BOKF, N.A. [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 247,000 | $ 202,000 |
Regulatory Capital Stock, Percent Of Total | 18.20% | 15.30% |
Transactions With Stockholder_4
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping-Directors) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Advances, Outstanding Amount | $ 31,678,083 | $ 30,241,315 |
Deposits, Outstanding Amount | $ 975,397 | $ 790,640 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 0.60% | 0.70% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 9,940 | $ 12,038 |
Advances, Outstanding Amount | $ 143,302 | $ 178,945 |
Advances, Percent of Total | 0.50% | 0.60% |
Deposits, Outstanding Amount | $ 16,765 | $ 15,748 |
Deposits, Percent of Total | 1.70% | 2.00% |
Director [Member] | Class A [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 1.00% | 1.40% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 4,671 | $ 6,467 |
Director [Member] | Class B [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Percent Of Total | 0.40% | 0.40% |
TOTAL CAPITAL STOCK, Outstanding Amount | $ 5,269 | $ 5,571 |
Transactions With Stockholder_5
Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details) - Director [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Mortgage loans acquired | $ 46,109 | $ 23,080 |
Mortgage loans acquired, Percent of Total | 5.20% | 4.80% |