Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-52004 | ||
Entity Registrant Name | FEDERAL HOME LOAN BANK OF TOPEKA | ||
Entity Tax Identification Number | 48-0561319 | ||
Entity Address, Address Line One | 500 SW Wanamaker Road | ||
Entity Address, City or Town | Topeka | ||
Entity Address, State or Province | KS | ||
Entity Address, Postal Zip Code | 66606 | ||
City Area Code | 785 | ||
Local Phone Number | 233.0507 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001325878 | ||
Entity Incorporation, State or Country Code | X1 | ||
Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,606,724 | ||
Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,925,008 |
Statements Of Condition
Statements Of Condition - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and due from banks (Note 3) | $ 4,570,415 | $ 1,917,166 | |
Interest-bearing deposits (Note 4) | 760,297 | 921,453 | |
Securities purchased under agreements to resell (Notes 4, 11) | 2,600,000 | 4,750,000 | |
Federal funds sold (Note 4) | 1,780,000 | 850,000 | |
Investment securities: | |||
Trading securities (Note 4) | 2,623,376 | 2,812,562 | |
Available-for-sale securities, amortized cost of $6,696,114 and $7,155,712 (Note 4) | 6,741,310 | 7,182,500 | |
Held-to-maturity securities, fair value of $2,750,116 and $3,556,938 (Note 4) | 2,746,992 | 3,569,958 | |
Total investment securities | 12,111,678 | 13,565,020 | |
Advances (Notes 5, 17) | 21,226,823 | 30,241,315 | |
Mortgage loans held for portfolio, net of allowance for credit losses of $5,177 and $985 (Notes 6, 17) | 9,205,207 | 10,633,009 | |
Accrued interest receivable | 97,718 | 143,765 | |
Derivative assets, net (Notes 7, 11) | 148,868 | 154,804 | |
Other assets (Note 16) | 90,706 | 100,122 | |
TOTAL ASSETS | 52,591,712 | 63,276,654 | |
LIABILITIES | |||
Deposits (Notes 8, 17) | 1,229,361 | 790,640 | |
Consolidated obligations, net: | |||
Discount notes (Notes 9, 16) | 10,882,417 | 27,447,911 | |
Bonds (Notes 9, 16) | 37,648,077 | 32,013,314 | |
Total consolidated obligations, net | 48,530,494 | 59,461,225 | |
Mandatorily redeemable capital stock (Note 12) | 1,624 | 2,415 | |
Accrued interest payable | 45,575 | 117,580 | |
Affordable Housing Program payable (Note 10) | 41,129 | 43,027 | |
Derivative liabilities, net (Notes 7, 11) | 4,404 | 202 | |
Other liabilities (Notes 14, 16) | 71,358 | 70,514 | |
TOTAL LIABILITIES | 49,923,945 | 60,485,603 | |
Commitments and contingencies (Note 16) | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | 1,574,004 | 1,766,456 |
Retained earnings: | |||
Unrestricted | 793,331 | 765,295 | |
Restricted (Note 12) | 258,124 | 234,514 | |
Total retained earnings | 1,051,455 | 999,809 | |
Accumulated other comprehensive income (loss) (Note 13) | 42,308 | 24,786 | |
TOTAL CAPITAL | 2,667,767 | 2,791,051 | |
TOTAL LIABILITIES AND CAPITAL | 52,591,712 | 63,276,654 | |
Class A [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | 412,225 | 447,610 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Total capital stock (Note 10) | [1] | $ 1,161,779 | $ 1,318,846 |
[1] | Putable |
Statements Of Condition (Parent
Statements Of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Allowance for Credit Losses on Mortgage Loans | [1] | $ 5,177 | $ 985 |
Investment securities: | |||
Available-for-sale, amortized cost | 6,696,114 | 7,155,712 | |
Held-to-maturity, Fair Value | $ 2,750,116 | $ 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] | 4,122 | 4,476 |
Common Stock, Shares Outstanding | [2] | 4,122 | 4,476 |
Class B [Member] | |||
Capital stock outstanding - putable: | |||
Common Stock, par value per share | [2] | $ 100 | $ 100 |
Common Stock, Shares, Issued | [2] | 11,618 | 13,188 |
Common Stock, Shares Outstanding | [2] | 11,618 | 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 $6,123,000 (see Table 6.6). | ||
[2] | Putable |
Statements Of Income
Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME: | |||
Interest-bearing deposits | $ 6,092 | $ 19,801 | $ 14,957 |
Securities purchased under agreements to resell | 17,812 | 104,397 | 71,298 |
Federal funds sold | 5,050 | 32,834 | 40,306 |
Trading securities | 74,555 | 87,534 | 72,659 |
Available-for-sale securities | 54,311 | 116,866 | 46,154 |
Held-to-maturity securities | 33,283 | 105,099 | 116,189 |
Advances | 268,051 | 716,199 | 637,203 |
Mortgage loans held for portfolio | 280,708 | 304,582 | 256,698 |
Other | 1,211 | 1,440 | 1,545 |
Total interest income | 741,073 | 1,488,752 | 1,257,009 |
INTEREST EXPENSE: | |||
Deposits | 1,802 | 9,820 | 8,912 |
Consolidated obligations: | |||
Discount notes | 123,124 | 532,155 | 451,380 |
Bonds | 363,896 | 689,275 | 524,255 |
Mandatorily redeemable capital stock | 59 | 139 | 229 |
Other | 1,180 | 1,299 | 1,036 |
Total interest expense | 490,061 | 1,232,688 | 985,812 |
NET INTEREST INCOME | 251,012 | 256,064 | 271,197 |
Provision (reversal) for credit losses on mortgage loans | (716) | 387 | 27 |
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL) | 251,728 | 255,677 | 271,170 |
OTHER INCOME (LOSS): | |||
Net gains (losses) on trading securities | 78,142 | 70,261 | (21,910) |
Net gains (losses) on sale of available-for-sale securities | 1,523 | 0 | 0 |
Net gains (losses) on sale of held-to-maturity securities | 0 | (46) | 1,591 |
Net gains (losses) on derivatives and hedging activities | (129,445) | (57,623) | (3,191) |
Standby bond purchase agreement commitment fees | 2,257 | 2,283 | 2,864 |
Letters of credit fees | 6,297 | 4,832 | 4,384 |
Other | 1,078 | 3,266 | 3,415 |
Total other income (loss) | (40,148) | 22,973 | (12,847) |
OTHER EXPENSES: | |||
Compensation and benefits | 39,883 | 37,848 | 37,673 |
Other operating | 18,689 | 19,519 | 18,729 |
Federal Housing Finance Agency | 4,178 | 3,460 | 2,956 |
Office of Finance | 4,062 | 3,700 | 3,207 |
Mortgage loans transaction service fees | 7,819 | 6,938 | 5,687 |
Other | 5,776 | 1,351 | 856 |
Total other expenses | 80,407 | 72,816 | 69,108 |
INCOME BEFORE ASSESSMENTS | 131,173 | 205,834 | 189,215 |
Affordable Housing Program | 13,123 | 20,597 | 18,944 |
NET INCOME | $ 118,050 | $ 185,237 | $ 170,271 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 118,050 | $ 185,237 | $ 170,271 |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on available-for-sale securities | 18,408 | 7,720 | (12,138) |
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities | 0 | 0 | 4,163 |
Defined benefit pension plan | (886) | 1,373 | (1,990) |
Total other comprehensive income (loss) | 17,522 | 9,093 | (9,965) |
TOTAL COMPREHENSIVE INCOME | $ 135,572 | $ 194,330 | $ 160,306 |
Statements Of Capital
Statements Of Capital - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | $ 2,791,051 | $ 2,454,252 | $ 2,506,103 | |
Comprehensive income | 135,572 | 194,330 | 160,306 | |
Proceeds from issuance of capital stock | 2,114,822 | 1,405,720 | 1,655,247 | |
Repurchase/redemption of capital stock | (279,126) | (979,139) | (826,689) | |
Net reclassification of shares to mandatorily redeemable capital stock | (2,098,699) | (283,831) | (1,040,316) | |
Net transfer of shares between Class A and Class B | 0 | 0 | 0 | |
Partial recovery of prior capital distribution to Financing Corporation | 10,543 | 0 | 0 | |
Dividends on capital stock | ||||
Cash payment | (273) | (281) | (399) | |
Stock issued | 0 | 0 | 0 | |
Balance at the end of the period | $ 2,667,767 | $ 2,791,051 | $ 2,454,252 | |
Capital Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares, beginning balance | [1] | 17,664 | 15,245 | 16,400 |
Balance at the beginning of the period | [1] | $ 1,766,456 | $ 1,524,537 | $ 1,640,039 |
Proceeds from issuance of capital stock, shares | [1] | 21,148 | 14,057 | 16,553 |
Proceeds from issuance of capital stock | [1] | $ 2,114,822 | $ 1,405,720 | $ 1,655,247 |
Repurchase/redemption of capital stock, shares | [1] | (2,791) | (9,791) | (8,267) |
Repurchase/redemption of capital stock | [1] | $ (279,126) | $ (979,139) | $ (826,689) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (20,987) | (2,839) | (10,404) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (2,098,699) | $ (283,831) | $ (1,040,316) |
Net transfer of shares between Class A and Class B, shares | [1] | 0 | 0 | 0 |
Net transfer of shares between Class A and Class B | [1] | $ 0 | $ 0 | $ 0 |
Dividends on capital stock | ||||
Stock issued, shares | [1] | 706 | 992 | 963 |
Stock issued | [1] | $ 70,551 | $ 99,169 | $ 96,256 |
Shares, ending balance | [1] | 15,740 | 17,664 | 15,245 |
Balance at the end of the period | [1] | $ 1,574,004 | $ 1,766,456 | $ 1,524,537 |
Total Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 999,809 | 914,022 | 840,406 | |
Comprehensive income | 118,050 | 185,237 | 170,271 | |
Partial recovery of prior capital distribution to Financing Corporation | 10,543 | |||
Dividends on capital stock | ||||
Cash payment | (273) | (281) | (399) | |
Stock issued | (70,551) | (99,169) | (96,256) | |
Balance at the end of the period | 1,051,455 | 999,809 | 914,022 | |
Unrestricted Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 765,295 | 716,555 | 676,993 | |
Comprehensive income | 94,440 | 148,190 | 136,217 | |
Partial recovery of prior capital distribution to Financing Corporation | 10,543 | |||
Dividends on capital stock | ||||
Cash payment | (273) | (281) | (399) | |
Stock issued | (70,551) | (99,169) | (96,256) | |
Balance at the end of the period | 793,331 | 765,295 | 716,555 | |
Restricted Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 234,514 | 197,467 | 163,413 | |
Comprehensive income | 23,610 | 37,047 | 34,054 | |
Partial recovery of prior capital distribution to Financing Corporation | 0 | |||
Dividends on capital stock | ||||
Balance at the end of the period | 258,124 | 234,514 | 197,467 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at the beginning of the period | 24,786 | 15,693 | 25,658 | |
Comprehensive income | 17,522 | 9,093 | (9,965) | |
Dividends on capital stock | ||||
Balance at the end of the period | 42,308 | 24,786 | $ 15,693 | |
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) | |||
Dividends on capital stock | ||||
Balance at the end 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) | |||
Dividends on capital stock | ||||
Balance at the end 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) | |||
Dividends on capital stock | ||||
Balance at the end 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 | |||
Dividends on capital stock | ||||
Balance at the end 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 | 2,351 |
Balance at the beginning of the period | [1] | $ 447,610 | $ 247,361 | $ 235,134 |
Proceeds from issuance of capital stock, shares | [1] | 22 | 18 | 16 |
Proceeds from issuance of capital stock | [1] | $ 2,270 | $ 1,804 | $ 1,541 |
Repurchase/redemption of capital stock, shares | [1] | (1,697) | (7,130) | (8,176) |
Repurchase/redemption of capital stock | [1] | $ (169,719) | $ (713,027) | $ (817,568) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (10,715) | (1,387) | (2,045) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (1,071,524) | $ (138,681) | $ (204,456) |
Net transfer of shares between Class A and Class B, shares | [1] | 12,036 | 10,502 | 10,327 |
Net transfer of shares between Class A and Class B | [1] | $ 1,203,588 | $ 1,050,153 | $ 1,032,710 |
Dividends on capital stock | ||||
Shares, ending balance | [1] | 4,122 | 4,476 | 2,473 |
Balance at the end of the period | [1] | $ 412,225 | $ 447,610 | $ 247,361 |
Common Stock, Dividend Rate, Percentage | 0.80% | 2.40% | 1.80% | |
Class B [Member] | Capital Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares, beginning balance | [1] | 13,188 | 12,772 | 14,049 |
Balance at the beginning of the period | [1] | $ 1,318,846 | $ 1,277,176 | $ 1,404,905 |
Proceeds from issuance of capital stock, shares | [1] | 21,126 | 14,039 | 16,537 |
Proceeds from issuance of capital stock | [1] | $ 2,112,552 | $ 1,403,916 | $ 1,653,706 |
Repurchase/redemption of capital stock, shares | [1] | (1,094) | (2,661) | (91) |
Repurchase/redemption of capital stock | [1] | $ (109,407) | $ (266,112) | $ (9,121) |
Net reclassification of shares to mandatorily redeemable capital stock, shares | [1] | (10,272) | (1,452) | (8,359) |
Net reclassification of shares to mandatorily redeemable capital stock | [1] | $ (1,027,175) | $ (145,150) | $ (835,860) |
Net transfer of shares between Class A and Class B, shares | [1] | (12,036) | (10,502) | (10,327) |
Net transfer of shares between Class A and Class B | [1] | $ (1,203,588) | $ (1,050,153) | $ (1,032,710) |
Dividends on capital stock | ||||
Stock issued, shares | [1] | 706 | 992 | 963 |
Stock issued | [1] | $ 70,551 | $ 99,169 | $ 96,256 |
Shares, ending balance | [1] | 11,618 | 13,188 | 12,772 |
Balance at the end of the period | [1] | $ 1,161,779 | $ 1,318,846 | $ 1,277,176 |
Common Stock, Dividend Rate, Percentage | 5.80% | 7.50% | 7.00% | |
[1] | Putable |
Statements Of Capital (Parenthe
Statements Of Capital (Parenthetical) - Capital Stock [Member] | 12 Months Ended | ||
Dec. 31, 2020Rate | Dec. 31, 2019Rate | Dec. 31, 2018Rate | |
Class A [Member] | |||
Stock dividend rate percentage | 0.80% | 2.40% | 1.80% |
Class B [Member] | |||
Stock dividend rate percentage | 5.80% | 7.50% | 7.00% |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 118,050 | $ 185,237 | $ 170,271 |
Adjustments to reconcile income (loss) to net cash provided by (used in) operating activities: | |||
Premiums and discounts on consolidated obligations, net | (54,707) | (10,559) | 2,467 |
Concessions on consolidated obligations | 26,485 | 12,376 | 5,448 |
Premiums and discounts on investments, net | 18,636 | 10,567 | 3,644 |
Premiums, discounts and commitment fees on advances, net | (4,846) | (1,606) | (4,698) |
Premiums, discounts and deferred loan costs on mortgage loans, net | 66,476 | 29,566 | 18,116 |
Fair value adjustments on hedged assets or liabilities | 4,802 | 3,385 | 1,453 |
Premises, software and equipment | 3,339 | 3,127 | 2,975 |
Other | 291 | 334 | 399 |
Provision (reversal) for credit losses on mortgage loans | (716) | 387 | 27 |
Non-cash interest on mandatorily redeemable capital stock | 58 | 137 | 227 |
Net realized (gains) losses on sale of available-for-sale securities | (1,523) | 0 | 0 |
Net realized (gains) losses on sale of held-to-maturity securities | 0 | 46 | (1,591) |
Net other-than-temporary impairment losses on held-to-maturity securities | 0 | 0 | 26 |
Net realized (gains) losses on disposal of premises, software and equipment | 3,471 | (2) | (880) |
Other adjustments | 4,318 | (188) | (382) |
Net (gains) losses on trading securities | (78,142) | (70,261) | 21,910 |
Net change in derivatives and hedging activities | (224,167) | (107,537) | 13,961 |
(Increase) decrease in accrued interest receivable | 46,325 | (34,587) | (23,913) |
Change in net accrued interest included in derivative assets | 31,310 | (1,247) | (6,616) |
(Increase) decrease in other assets | (21) | 3,135 | 590 |
Increase (decrease) in accrued interest payable | (72,006) | 29,475 | 31,949 |
Change in net accrued interest included in derivative liabilities | 1,992 | 4,700 | (4,272) |
Increase (decrease) in Affordable Housing Program liability | (1,898) | (54) | 76 |
Increase (decrease) in other liabilities | (64) | 933 | (2,388) |
Total adjustments | (230,587) | (127,873) | 58,528 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (112,537) | 57,364 | 228,799 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net (increase) decrease in interest-bearing deposits | (57,502) | (428,403) | (227,101) |
Net (increase) decrease in securities purchased under resale agreements | 2,150,000 | (3,498,904) | 1,910,350 |
Net (increase) decrease in Federal funds sold | (930,000) | (800,000) | 1,125,000 |
Proceeds from sale of trading securities | 275,186 | 19,184 | 0 |
Proceeds from maturities of and principal repayments on trading securities | 817,141 | 3,269,002 | 4,179,361 |
Purchases of trading securities | (825,000) | (3,879,375) | (3,482,969) |
Proceeds from sale of available-for-sale securities | 289,045 | 0 | 0 |
Proceeds from maturities of and principal repayments on available-for-sale securities | 827,813 | 11,846 | 18,793 |
Purchases of available-for-sale securities | (430,610) | (5,329,326) | (281,489) |
Proceeds from sale of held-to-maturity securities | 0 | 9,442 | 87,827 |
Proceeds from maturities of and principal repayments on held-to-maturity securities | 821,718 | 875,027 | 942,637 |
Purchases of held-to-maturity securities | 0 | 0 | (625,170) |
Advances repaid | 392,881,159 | 322,056,867 | 392,375,489 |
Advances originated | (383,664,775) | (323,451,173) | (394,828,014) |
Principal collected on mortgage loans | 4,085,162 | 1,676,691 | 922,423 |
Purchases of mortgage loans | (2,738,299) | (3,927,543) | (2,070,971) |
Proceeds from sale of foreclosed assets | 1,071 | 2,378 | 5,038 |
Purchases of other long-term assets | 0 | 0 | (6,000) |
Other investing activities | 3,336 | 3,120 | 2,884 |
Proceeds from sale of premises, software and equipment | 0 | 0 | 2,416 |
Purchases of premises, software and equipment | (590) | (1,576) | (9,282) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 13,504,855 | (13,392,743) | 41,222 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase (decrease) in deposits | 438,821 | 239,562 | 48,856 |
Net proceeds from issuance of consolidated obligations: | |||
Discount notes | 630,992,025 | 818,115,910 | 1,036,653,023 |
Bonds | 47,968,831 | 24,700,487 | 10,832,505 |
Payments for maturing and retired consolidated obligations: | |||
Discount notes | (647,521,949) | (811,278,050) | (1,036,479,071) |
Bonds | (42,349,800) | (16,686,500) | (11,368,440) |
Net increase (decrease) in other borrowings | 0 | 0 | 6,000 |
Proceeds from financing derivatives | 3,470 | 3,329 | 0 |
Net interest payments received (paid) for financing derivatives | (16,885) | 1,597 | (1,785) |
Proceeds from issuance of capital stock | 2,114,822 | 1,405,720 | 1,655,247 |
Payments for repurchase/redemption of capital stock | (279,126) | (979,139) | (826,689) |
Payments for repurchase of mandatorily redeemable capital stock | (2,099,548) | (285,150) | (1,042,258) |
Cash dividends paid | (273) | (281) | (399) |
Partial Recovery Of Prior Capital Distribution To Financing Corporation | 10,543 | 0 | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (10,739,069) | 15,237,485 | (523,011) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,653,249 | 1,902,106 | (252,990) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,917,166 | 15,060 | 268,050 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 4,570,415 | 1,917,166 | 15,060 |
Supplemental disclosures: | |||
Interest paid | 587,287 | 1,202,135 | 948,392 |
Affordable Housing Program payments | 15,137 | 20,973 | 19,027 |
Net transfers of mortgage loans to other assets | $ 1,226 | $ 771 | $ 3,768 |
Background (Notes)
Background (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | BACKGROUND Federal Home Loan Bank of Topeka (FHLBank or FHLBank Topeka), a federally chartered corporation, is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks are government-sponsored enterprises (GSE) that were organized under the Federal Home Loan Bank Act of 1932, as amended (Bank Act), to serve the public by enhancing the availability of credit for residential mortgages and targeted community development and provide a readily available, competitively-priced source of funds to their members. FHLBank is a cooperative whose member institutions own substantially all of the outstanding capital stock of FHLBank and generally receive dividends on their stock investments. Regulated financial depositories, insurance companies and community development financial institutions engaged in residential housing finance whose principal place of business is located in Colorado, Kansas, Nebraska or Oklahoma are eligible to apply for membership. State and local housing authorities that meet certain statutory requirements may become housing associates of FHLBank and also be eligible to borrow from FHLBank. While eligible to borrow, housing associates are not members of FHLBank and therefore are not permitted or required to hold capital stock. All members are required to purchase stock in the FHLBank located in their district in accordance with the capital plan of that particular FHLBank. Under FHLBank Topeka’s capital plan, members must own capital stock in FHLBank based on the amount of their total assets. Each member is also required to purchase activity-based capital stock as it engages in certain business activities with FHLBank, including advances, Acquired Member Assets (AMA) and, effective January 22, 2021, letters of credit. Former members that still have outstanding business transactions with FHLBank are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. As a result of these requirements, FHLBank conducts business with members in the ordinary course of its business. For financial reporting purposes, FHLBank defines related parties as those members: (1) with investments in excess of 10 percent of FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock; or (2) with an officer or director serving on FHLBank’s board of directors. See Note 17 for more information on related party transactions. The FHLBanks are supervised and regulated by the Federal Housing Finance Agency (FHFA), an independent agency in the executive branch of the U.S. government. The FHFA’s stated mission is to ensure that the housing GSEs operate in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment. Each FHLBank is operated as a separate entity and has its own management, employees and board of directors. The FHLBanks do not have any special purpose entities or any other type of off-balance sheet conduits. The FHLBanks have established a joint office called the Office of Finance to facilitate the issuance and servicing of the debt instruments of the FHLBanks, known as consolidated obligation bonds and consolidated obligation discount notes (collectively referred to as consolidated obligations) and to prepare the combined quarterly and annual financial reports of the FHLBanks. As provided by the Bank Act and applicable regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. Consolidated obligations are the primary source of funds for the FHLBanks in addition to deposits, other borrowings and capital stock issued to members. FHLBank primarily uses these funds to provide advances to members and to acquire mortgage loans from members through the Mortgage Partnership Finance ® (MPF ® ) Program. "Mortgage Partnership Finance" and "MPF" are registered trademarks of FHLBank of Chicago. In addition, FHLBank also offers correspondent services such as wire transfer, security safekeeping and settlement services. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). 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. Fair Values: The fair value amounts, recorded on the Statements of Condition and presented in the note disclosures for the periods presented, have been determined by FHLBank using available market and other pertinent information and reflect FHLBank’s best judgment of appropriate valuation methods. Although FHLBank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. See Note 15 for more information. Financial Instruments Meeting Netting Requirements: FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis when it has a legal right of offset and all other requirements for netting are met (collectively referred to as 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, when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. See Notes 7 and 11 for additional information. Adoption of Measurement of Credit Losses on Financial Instruments Accounting Guidance: Beginning January 1, 2020, FHLBank adopted, on a modified retrospective basis, new accounting guidance pertaining to the measurement of credit losses on financial instruments (commonly referred to as Current Expected Credit Losses or CECL accounting guidance) 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. Consistent with the modified retrospective method of adoption, FHLBank recorded an immaterial cumulative adjustment to the opening balance of retained earnings as of January 1, 2020, and the prior periods were not revised to conform to the new basis of accounting. Key changes to the accounting policies are detailed within this note. Cash Flows: For purposes of the Statements of Cash Flows, FHLBank considers cash on hand and non-interest-bearing deposits in banks as cash and cash equivalents. 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. FHLBank treats securities purchased under agreements to resell as short-term collateralized loans. Federal funds sold consist of short-term unsecured loans generally transacted with counterparties that are considered by FHLBank to be of investment quality. Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold provide short-term liquidity and are carried at cost. Accrued interest receivable is recorded separately on the Statements of Condition. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. Interest-bearing deposits and Federal funds sold are evaluated quarterly for credit losses. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. FHLBank uses the collateral maintenance provision practical expedient, which allows expected credit losses to be measured based on the difference between the fair value of the collateral and the investment's amortized cost, 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. Prior to January 1, 2020, securities purchased under agreements to resell were evaluated for credit losses if there was a collateral shortfall which FHLBank did not believe the counterparty would replenish in accordance with its contractual terms. Investment Securities: FHLBank classifies investments as trading, available-for-sale and held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. Trading: Securities classified as trading are either: (1) held for liquidity purposes; (2) economically swapped and classified as trading to provide a fair value offset to the gains (losses) on the interest rate swaps tied to the securities; or (3) acquired as asset/liability management tools and carried at fair value. FHLBank records changes in the fair value of these securities through other income (loss) as net gains (losses) on trading securities. FHLBank’s Risk Management Policy (RMP) prohibits active trading of these securities with the intent of realizing gains. FHFA regulation limits credit risk arising from these instruments by prohibiting certain instruments identified as not investment quality. While FHLBank classifies certain securities as trading for financial reporting purposes, it does not actively trade any of these securities and holds these investments indefinitely as management periodically evaluates its asset/liability and liquidity needs. Short-term money market investments with maturities of three months or less are acquired and classified as trading securities primarily for liquidity purposes. These short-term money market investments are periodically sold to meet FHLBank’s cash flow needs. FHLBank might also sell mortgage-backed securities (MBS) held in its trading portfolio to reduce its London Interbank Offered Rate (LIBOR) exposure. Available-for-Sale: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI). Accrued interest receivable is recorded separately on the Statements of Condition. Beginning January 1, 2019, FHLBank adopted new hedge accounting guidance, which, among other things, impacted the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities in hedge relationships that qualify as fair value hedges, FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities in hedge relationships that qualified as fair value hedges, FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Additionally, beginning January 1, 2020, FHLBank adopted CECL accounting guidance. 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. 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 investment 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 as net unrealized gains (losses) on available-for-sale securities in 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, which is original cost adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Certain changes in circumstances may cause FHLBank to change its intent to hold a security to maturity without calling into question its intent to hold other debt securities to maturity in the future, including: (1) evidence of a significant deterioration in the issuer’s creditworthiness; (2) a change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of investments, thereby causing FHLBank to dispose of a held-to-maturity investment; (3) a significant increase by a regulator in FHLBank’s capital requirements that causes FHLBank to downsize by selling held-to-maturity investments; or (4) a significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. FHLBank considers the following situations to be a maturity for purposes of assessing ability and intent to hold to maturity: ▪ The sale of the security is near enough to maturity (for example, within three months of maturity), or call date if exercise of the call is probable that interest rate risk is substantially eliminated as a pricing factor and the changes in market interest rates would not have a significant effect on the security’s fair value; or ▪ The sale of a security occurs after FHLBank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition either due to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. 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. Premiums and Discounts: FHLBank computes the amortization of purchased premiums and accretion of purchased discounts on MBS using the level-yield method over the estimated cash flows of the securities. This method requires a retrospective adjustment of the effective yield each time FHLBank receives a principal repayment or changes the estimated remaining cash flows as if the actual principal repayments and new estimated cash flows had been known since the original acquisition dates of the securities. FHLBank computes the amortization of premiums and accretion of discounts on other investments using the level-yield method to the contractual maturities of the securities. Gains and Losses on Sales: Gains and losses on the sales of investment securities are computed using the specific identification method and are included in other income (loss). Advances: FHLBank records advances (secured loans to members, former members or housing associates) at amortized cost, which is net of premiums, discounts, unearned commitment fees, and fair value basis adjustments. FHLBank amortizes the premiums and accretes the discounts on advances to interest income using the level-yield method. FHLBank records interest on advances to interest income as earned. Accrued interest receivable is recorded separately on the Statements of Condition. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. Advances are evaluated quarterly for expected credit losses. Prior to January 1, 2020, FHLBank evaluated advances to determine if an allowance for credit losses was necessary if it was probable an impairment occurred in FHLBank's advance portfolio as of the Statement of Condition date and the amount of loss could be reasonably estimated. Advance Modifications: In cases in which FHLBank funds a new advance concurrently with or within a short period of time before or after the prepayment of an existing advance, FHLBank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. FHLBank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a 10 percent difference in the cash flows or if FHLBank concludes the differences between the advances are more than minor based on qualitative factors, the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Prepayment Fees: FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Mortgage Loans Held for Portfolio: FHLBank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. These mortgage loans are recorded at amortized cost, which is the principal amount outstanding, net of unamortized premiums, unaccreted discounts, deferred loan fees, hedging adjustments, charge-offs, and other fees. Accrued interest receivable is recorded separately on the Statements of Condition. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank does not purchase mortgage loans with credit deterioration at the time of purchase. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. Quarterly, 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 expected loss over the estimated remaining life of a mortgage loan, which also considers how FHLBank’s credit enhancements mitigate credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. FHLBanks include estimates of expected recoveries within 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. Prior to January 1, 2020, FHLBank recorded an allowance for credit losses on mortgage loans if it was probable that FHLBank would be unable to collect all amounts due according to the contractual terms of the loan agreement as of the statement of condition date and the amount of loss could be reasonably estimated. Premiums and Discounts: FHLBank defers and amortizes/accretes mortgage loan origination fees (agent fees) and premiums and discounts paid to and received from participating financial institutions (PFI) as interest income using the level-yield method over the contractual lives of the loans. This method uses the cash flows required by the loan contracts, as adjusted for actual prepayments, to apply the interest method. The contractual method does not utilize estimates of future prepayments of principal. Credit Enhancement Fees: The credit enhancement obligation (CE obligation) is an obligation on the part of the PFI that ensures the retention of credit risk on loans it originates on behalf of or sells to FHLBank. The amount of the CE obligation is determined at the time of purchase so that any losses in excess of the CE obligation for each pool of mortgage loans purchased approximate those experienced by an investor in either a double-A or triple-B rated MBS. As a part of the methodology used to determine the amount of credit enhancement necessary, FHLBank analyzes the risk characteristics of each mortgage loan using a model licensed from a Nationally Recognized Statistical Rating Organization (NRSRO). FHLBank uses the model to evaluate loan data provided by the PFI as well as other relevant information. FHLBank pays the PFI a credit enhancement fee (CE fee) for managing this portion of the credit risk in the pool of loans. CE fees are paid monthly based on the remaining unpaid principal balance (UPB) of the loans in a master commitment, or a one-time upfront CE fee was paid at purchase. Upfront CE fees were based upon the present value of the monthly CE fee payments, with consideration for expected prepayments, and are amortized as interest income using the level-yield method over the contractual lives of the loans. The required CE obligation amount may vary depending on the various product alternatives selected by the PFI. CE fees are recorded as an offset to mortgage loan interest income. To the extent FHLBank experiences a loss in a master commitment, FHLBank may be able to recapture future performance-based CE fees paid to the PFIs to offset these losses. Other Fees: FHLBank may receive other non-origination fees, such as delivery commitment extension fees and pair-off fees as part of the mark-to-market on derivatives to which they are related or as part of the loan basis, as applicable. Delivery commitment extension fees are received when a PFI requires an extension of the delivery commitment period beyond the original stated expiration. These fees compensate FHLBank for lost interest as a result of late funding and represent the member purchasing a derivative from FHLBank. Pair-off fees are received from the PFI when the amount funded is more than or less than a specific percentage range of the delivery commitment amount. These fees compensate FHLBank for hedge costs associated with the under-delivery or over-delivery. To the extent that pair off fees relate to under-deliveries of loans, they are included in the mark-to-market of the related delivery commitment derivative. If they relate to over-deliveries, they represent purchase price adjustments to the related loans acquired and are recorded as a part of the carrying value of the loan. Non-accrual Loans: FHLBank places a conventional mortgage loan on non-accrual status if it is determined that either: (1) the collection of interest or principal is doubtful; or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. FHLBank does not place government-guaranteed or -insured mortgage loans on non-accrual status due to 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. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income. FHLBank records cash payments received on non-accrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on non-accrual status may be restored to accrual status when: (1) none of its contractual principal and interest is due and unpaid, and FHLBank expects repayment of the remaining contractual principal and interest; or (2) it otherwise becomes well secured and in the process of collection. Troubled Debt Restructuring: FHLBank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. Loans that are discharged in Chapter 7 bankruptcy and have not been reaffirmed by the borrowers are also considered to be troubled debt restructurings, except in certain cases where supplemental mortgage insurance (SMI) policies are held or where all contractual amounts due are still expected to be collected as a result of certain credit enhancements or government guarantees. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. Section 4013 of the CARES Act provides optional, temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications for which borrowers were adversely affected by COVID-19 (hereinafter referred to as COVID-related modifications) granted to borrowers that were not more than 30 days past due on payments as of December 31, 2019. Specifically, the CARES Act provides that a financial institution may elect to suspend: (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR, and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. TDR relief applies to COVID-related modifications made from March 1, 2020, until the earlier of December 31, 2020, or 60 days following the termination of the national emergency declared by the President of the United States on March 13, 2020. On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law, extending the applicable period to the earlier of January 1, 2022, or 60 days following the termination of the national emergency declared on March 13, 2020. In the second quarter of 2020, FHLBank elected to apply the TDR relief provided by the CARES Act. As such, all COVID-related modifications meeting the provisions of the CARES Act are excluded from TDR classification and accounting, and FHLBank considers these loans to have a current payment status as long as payments are being made in accordance with the new terms. Alternatively, COVID-related modifications that do not meet the provisions of the CARES Act continue to be assessed for TDR classification under FHLBank's' existing accounting policies. Additionally, FHLBank continues to apply its delinquency, non-accrual loans, and charge-off policies during the forbearance plan period. FHLBank estimates the allowance for credit losses for COVID-related modifications similar to other mortgage loans held for portfolio. Collateral-dependent Loans: A loan is considered collateral dependent if repayment is expected to be provided solely by sale of the underlying property; that is, there is no other available and reliable source of repayment. A loan that is considered collateral-dependent is measured for credit loss based on the fair value of the underlying property less estimated selling costs, with any shortfall recognized as an allowance for loan loss or charged off. Charge-off Policy: A charge-off is recorded if it is estimated that the amortized cost and any applicable accrued interest in a loan will not be recovered. FHLBank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include, but are not limited to, the occurrence of foreclosure or notification of a claim against any of the credit enhancements. FHLBank charges off the portion of outstanding conventional mortgage loan balances in excess of fair value of the underlying property, less estimated cost to sell, for loans that are 180 days or more delinquent and certain loans for which the borrower has filed for bankruptcy. Real Estate Owned: Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value less estimated selling costs and is subsequently carried at the lower of that amount or current fair value less estimated selling costs. FHLBank recognizes a charge-off to the allowance for credit losses if the fair value of the REO less estimated selling costs is less than the amortized cost in the loan at the date of transfer from loans to REO. Any subsequent gains, losses and carrying costs are included in other expense in the Statements of Income. REO is recorded in other assets on the Statements of Condition. Derivatives: All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, and accrued interest receivable from or pledged by clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with a derivative are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. FHLBank utilizes two Derivative Clearing Organizations (Clearinghouses) for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments and initial margin is considered cash collateral. Derivative Designations: Each derivative is designated as one of the following: ▪ a qualifying fair value hedge of the change in fair value of: (1) a recognized asset or liability, or (2) an unrecognized firm commitment; or ▪ a non-qualifying hedge of an asset or liability (an economic hedge) for asset/liability management purposes. Accounting for Qualifying Hedges: If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the hedging relationship and an expectation to be highly effective, they qualify for hedge accounting. Two approaches to hedge accounting include: ▪ Long haul hedge accounting - The application of long haul hedge accounting requires FHLBank to assess (both at the hedge's inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain highly effective in future periods; and ▪ Shortcut hedge accounting - Under the shortcut method of hedge accounting, the entire change in fair value of the interest rate swap is considered to be perfectly effective at achieving offsetting changes in the fair value of the hedged asset or liability if the interest rate swap transaction meets more stringent qualifying criteria. Thus, an assumption can be made that the change in fair value of a hedged item, due to changes in the hedged risk, exactly offsets the change in fair value of the related derivative. FHLBank has elected to document at hedge inception a quantitative method to assess hedge effectiveness for its shortcut hedging relationships for use in the event that the use of the shortcut method is no longer appropriate. Derivatives are typically executed at the same time as the hedged item, and FHLBank designates the hedged item in a qualifying hedge relationship at the trade date. In many hedging relationships, FHLBank may designate the hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. FHLBank defines market settlement conventions for advances and consolidated obligation discount notes to be five thirty Beginning January 1, 2019, FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. Changes in the fair value of a derivative that is designated and qualifies as a fair value |
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 an NRSRO. These may differ from internal ratings of the investments, if applicable. As of December 31, 2020, approximately 51 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions. Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of December 31, 2020 and 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 December 31, 2020 and 2019. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $80,000 and $3,000, respectively, as of December 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 its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2020 and 2019. The carrying value of securities purchased under agreements excludes accrued interest receivable of $6,000 and $424,000 as of December 31, 2020 and 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: ▪ U.S. Treasury obligations - sovereign debt of the United States; ▪ GSE debentures - 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 December 31, 2020 and 2019 are summarized in Table 4.1 (in thousands): Table 4.1 Fair Value 12/31/2020 12/31/2019 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,298,518 $ 1,530,518 GSE debentures 431,875 416,025 Non-mortgage-backed securities 1,730,393 1,946,543 Mortgage-backed securities: GSE MBS 892,983 866,019 Mortgage-backed securities 892,983 866,019 TOTAL $ 2,623,376 $ 2,812,562 Net gains (losses) on trading securities during the years ended December 31, 2020, 2019, and 2018 are shown in Table 4.2 (in thousands): Table 4.2 2020 2019 2018 Net gains (losses) on trading securities held as of December 31, 2020 $ 80,034 $ 67,435 $ (19,186) Net gains (losses) on trading securities sold or matured prior to December 31, 2020 (1,892) 2,826 (2,724) NET GAINS (LOSSES) ON TRADING SECURITIES $ 78,142 $ 70,261 $ (21,910) Available-for-sale Securities: Available-for-sale securities by major security type as of December 31, 2020 are summarized in Table 4.3 (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 $26,977,000 as of December 31, 2020. Table 4.3 12/31/2020 Amortized Gross Gross Fair Non-mortgage-backed securities: U.S. Treasury obligations $ 3,541,411 $ 4,931 $ (17) $ 3,546,325 Non-mortgage-backed securities 3,541,411 4,931 (17) 3,546,325 Mortgage-backed securities: GSE MBS 3,154,703 44,724 (4,442) 3,194,985 Mortgage-backed securities 3,154,703 44,724 (4,442) 3,194,985 TOTAL $ 6,696,114 $ 49,655 $ (4,459) $ 6,741,310 Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 4.4 (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 4.4 12/31/2019 Amortized Gross Gross Fair 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 4.5 summarizes the available-for-sale securities with unrealized losses as of December 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 4.5 12/31/2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities: U.S. Treasury obligations $ 250,436 $ (17) $ — $ — $ 250,436 $ (17) Non-mortgage-backed securities 250,436 (17) — — 250,436 (17) Mortgage-backed securities: GSE MBS $ — $ — $ 363,724 $ (4,442) $ 363,724 $ (4,442) Mortgage-backed securities — — 363,724 (4,442) 363,724 (4,442) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 250,436 $ (17) $ 363,724 $ (4,442) $ 614,160 $ (4,459) Table 4.6 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 4.6 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized 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 December 31, 2020 and 2019 are shown in Table 4.7 (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 4.7 12/31/2020 12/31/2019 Amortized Fair Amortized Fair Non-mortgage-backed securities: Due in one year or less $ 1,767,608 $ 1,768,588 $ 754,003 $ 753,891 Due after one year through five years 1,773,803 1,777,737 3,504,605 3,507,900 Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 3,541,411 3,546,325 4,258,608 4,261,791 Mortgage-backed securities 3,154,703 3,194,985 2,897,104 2,920,709 TOTAL $ 6,696,114 $ 6,741,310 $ 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 4.8 presents details of the sales for the year ended December 31, 2020 (in thousands). There were no sales of available-for-sale securities during the years ended December 31, 2019 and 2018. Table 4.8 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 December 31, 2020 are summarized in Table 4.9 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $930,000 as of December 31, 2020. Table 4.9 12/31/2020 Amortized Net Carrying Value Gross Gross Fair Non-mortgage-backed securities: State or local housing agency obligations $ 78,960 $ 78,960 $ — $ (3,290) $ 75,670 Non-mortgage-backed securities 78,960 78,960 — (3,290) 75,670 Mortgage-backed securities: U.S. obligation MBS 70,814 70,814 135 (59) 70,890 GSE MBS 2,597,218 2,597,218 10,208 (3,870) 2,603,556 Mortgage-backed securities 2,668,032 2,668,032 10,343 (3,929) 2,674,446 TOTAL $ 2,746,992 $ 2,746,992 $ 10,343 $ (7,219) $ 2,750,116 Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 4.10 (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 4.10 12/31/2019 Amortized Carrying Value Gross Gross Fair 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 December 31, 2020 and 2019 are shown in Table 4.11 (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 4.11 12/31/2020 12/31/2019 Amortized Net Carrying Fair Amortized Carrying Fair Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years 48,960 48,960 47,280 — — — Due after ten years 30,000 30,000 28,390 82,805 82,805 80,854 Non-mortgage-backed securities 78,960 78,960 75,670 82,805 82,805 80,854 Mortgage-backed securities 2,668,032 2,668,032 2,674,446 3,487,153 3,487,153 3,476,084 TOTAL $ 2,746,992 $ 2,746,992 $ 2,750,116 $ 3,569,958 $ 3,569,958 $ 3,556,938 Net gains (losses) were realized on the sale of held-to-maturity securities as presented below and are recorded as net gains (losses) on sale of held-to-maturity securities in other income (loss) on the Statements of Income. All securities sold had paid down below 15 percent of the principal outstanding at acquisition and were therefore considered maturities under GAAP. Table 4.12 presents details of the sales (in thousands). There were no sales of held-to-maturity securities during the year ended December 31, 2020. Table 4.12 2019 2018 Proceeds from sale of held-to-maturity securities $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold (9,488) (86,236) NET REALIZED GAINS (LOSSES) $ (46) $ 1,591 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 1 for additional information. During the year ended December 31, 2020, FHLBank did not 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 December 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 U.S. obligations, GSE debentures, 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 December 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 December 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, and 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 December 31, 2020. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [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 Reference Rate Reform (Accounting Standards Update (ASU) 2021-01). In January 2021, the Financial Accounting Standards Board (FASB) issued an amendment that refines the scope of ASC 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. During the fourth quarter of 2020, FHLBank elected applicable optional expedients specific to discounting transition on a retrospective basis. As of a result of electing this expedient, discounting transition did not have a material effect on FHLBank's financial condition, results of operations, or cash flows. This guidance is effective immediately for FHLBank and was applied consistently with the optional expedient guidance under ASU 2020-04, described below. Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In March 2020, the CARES Act was signed into law to provide relief from the economic impact of the COVID-19 pandemic to a variety of sectors of the U.S. economy, including businesses, individuals, health care, education, and state and local governments. The CARES Act, as updated by the Consolidated Appropriations Act, 2021, also includes provisions that provide optional relief from certain accounting and reporting requirements related to troubled debt restructurings (TDRs). TDR relief applies to COVID-19-related modifications made from March 1, 2020 until the earlier of January 1, 2022 or 60 days following the termination of the national emergency declared by the President of the United States for borrowers that were current as of December 31, 2019. FHLBank has elected the optional relief but does not expect it to have a material effect on FHLBank's financial condition, results of operations, cash flows, or disclosures. Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) . In March 2020, the 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 the other optional expedients, and the 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 were effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for FHLBank, and were applied retrospectively for all comparative periods presented. The adoption of this guidance did not have a material impact on the disclosures related to defined benefit plans and did 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. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due From Banks | CASH AND DUE FROM BANKS Cash and due from banks represents non-interest-bearing deposits in banks. Pass-through Deposit Reserves : FHLBank acts as a pass-through correspondent for members required to deposit reserves with the Federal Reserve Banks (FRB). The amount shown as cash and due from banks includes pass-through reserves deposited with the FRB of $3,820,000 as of December 31, 2019. There were no pass-through reserves deposited with the FRB as of December 31, 2020. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 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 an NRSRO. These may differ from internal ratings of the investments, if applicable. As of December 31, 2020, approximately 51 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions. Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of December 31, 2020 and 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 December 31, 2020 and 2019. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $80,000 and $3,000, respectively, as of December 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 its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2020 and 2019. The carrying value of securities purchased under agreements excludes accrued interest receivable of $6,000 and $424,000 as of December 31, 2020 and 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: ▪ U.S. Treasury obligations - sovereign debt of the United States; ▪ GSE debentures - 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 December 31, 2020 and 2019 are summarized in Table 4.1 (in thousands): Table 4.1 Fair Value 12/31/2020 12/31/2019 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,298,518 $ 1,530,518 GSE debentures 431,875 416,025 Non-mortgage-backed securities 1,730,393 1,946,543 Mortgage-backed securities: GSE MBS 892,983 866,019 Mortgage-backed securities 892,983 866,019 TOTAL $ 2,623,376 $ 2,812,562 Net gains (losses) on trading securities during the years ended December 31, 2020, 2019, and 2018 are shown in Table 4.2 (in thousands): Table 4.2 2020 2019 2018 Net gains (losses) on trading securities held as of December 31, 2020 $ 80,034 $ 67,435 $ (19,186) Net gains (losses) on trading securities sold or matured prior to December 31, 2020 (1,892) 2,826 (2,724) NET GAINS (LOSSES) ON TRADING SECURITIES $ 78,142 $ 70,261 $ (21,910) Available-for-sale Securities: Available-for-sale securities by major security type as of December 31, 2020 are summarized in Table 4.3 (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 $26,977,000 as of December 31, 2020. Table 4.3 12/31/2020 Amortized Gross Gross Fair Non-mortgage-backed securities: U.S. Treasury obligations $ 3,541,411 $ 4,931 $ (17) $ 3,546,325 Non-mortgage-backed securities 3,541,411 4,931 (17) 3,546,325 Mortgage-backed securities: GSE MBS 3,154,703 44,724 (4,442) 3,194,985 Mortgage-backed securities 3,154,703 44,724 (4,442) 3,194,985 TOTAL $ 6,696,114 $ 49,655 $ (4,459) $ 6,741,310 Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 4.4 (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 4.4 12/31/2019 Amortized Gross Gross Fair 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 4.5 summarizes the available-for-sale securities with unrealized losses as of December 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 4.5 12/31/2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities: U.S. Treasury obligations $ 250,436 $ (17) $ — $ — $ 250,436 $ (17) Non-mortgage-backed securities 250,436 (17) — — 250,436 (17) Mortgage-backed securities: GSE MBS $ — $ — $ 363,724 $ (4,442) $ 363,724 $ (4,442) Mortgage-backed securities — — 363,724 (4,442) 363,724 (4,442) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 250,436 $ (17) $ 363,724 $ (4,442) $ 614,160 $ (4,459) Table 4.6 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 4.6 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized 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 December 31, 2020 and 2019 are shown in Table 4.7 (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 4.7 12/31/2020 12/31/2019 Amortized Fair Amortized Fair Non-mortgage-backed securities: Due in one year or less $ 1,767,608 $ 1,768,588 $ 754,003 $ 753,891 Due after one year through five years 1,773,803 1,777,737 3,504,605 3,507,900 Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 3,541,411 3,546,325 4,258,608 4,261,791 Mortgage-backed securities 3,154,703 3,194,985 2,897,104 2,920,709 TOTAL $ 6,696,114 $ 6,741,310 $ 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 4.8 presents details of the sales for the year ended December 31, 2020 (in thousands). There were no sales of available-for-sale securities during the years ended December 31, 2019 and 2018. Table 4.8 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 December 31, 2020 are summarized in Table 4.9 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $930,000 as of December 31, 2020. Table 4.9 12/31/2020 Amortized Net Carrying Value Gross Gross Fair Non-mortgage-backed securities: State or local housing agency obligations $ 78,960 $ 78,960 $ — $ (3,290) $ 75,670 Non-mortgage-backed securities 78,960 78,960 — (3,290) 75,670 Mortgage-backed securities: U.S. obligation MBS 70,814 70,814 135 (59) 70,890 GSE MBS 2,597,218 2,597,218 10,208 (3,870) 2,603,556 Mortgage-backed securities 2,668,032 2,668,032 10,343 (3,929) 2,674,446 TOTAL $ 2,746,992 $ 2,746,992 $ 10,343 $ (7,219) $ 2,750,116 Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 4.10 (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 4.10 12/31/2019 Amortized Carrying Value Gross Gross Fair 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 December 31, 2020 and 2019 are shown in Table 4.11 (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 4.11 12/31/2020 12/31/2019 Amortized Net Carrying Fair Amortized Carrying Fair Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years 48,960 48,960 47,280 — — — Due after ten years 30,000 30,000 28,390 82,805 82,805 80,854 Non-mortgage-backed securities 78,960 78,960 75,670 82,805 82,805 80,854 Mortgage-backed securities 2,668,032 2,668,032 2,674,446 3,487,153 3,487,153 3,476,084 TOTAL $ 2,746,992 $ 2,746,992 $ 2,750,116 $ 3,569,958 $ 3,569,958 $ 3,556,938 Net gains (losses) were realized on the sale of held-to-maturity securities as presented below and are recorded as net gains (losses) on sale of held-to-maturity securities in other income (loss) on the Statements of Income. All securities sold had paid down below 15 percent of the principal outstanding at acquisition and were therefore considered maturities under GAAP. Table 4.12 presents details of the sales (in thousands). There were no sales of held-to-maturity securities during the year ended December 31, 2020. Table 4.12 2019 2018 Proceeds from sale of held-to-maturity securities $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold (9,488) (86,236) NET REALIZED GAINS (LOSSES) $ (46) $ 1,591 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 1 for additional information. During the year ended December 31, 2020, FHLBank did not 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 December 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 U.S. obligations, GSE debentures, 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 December 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 December 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, and 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 December 31, 2020. |
Advances
Advances | 12 Months Ended |
Dec. 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 December 31, 2020 and 2019, FHLBank had advances outstanding at interest rates ranging from 0.11 percent to 7.20 percent and 0.96 percent to 7.41 percent, respectively. Table 5.1 presents advances summarized by redemption term as of December 31, 2020 and 2019 (dollar amounts in thousands). Carrying amounts exclude accrued interest receivable of $15,588,000 and $45,637,000 as of December 31, 2020 and December 31, 2019, respectively. Table 5.1 12/31/2020 12/31/2019 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 12,540,970 0.45 % $ 13,188,118 1.88 % Due after one year through two years 1,591,133 1.20 10,448,433 1.96 Due after two years through three years 1,268,307 1.73 1,254,153 2.27 Due after three years through four years 1,305,047 1.47 1,067,662 2.42 Due after four years through five years 1,033,221 1.40 1,208,854 2.22 Thereafter 3,233,763 1.90 3,004,835 2.25 Total par value 20,972,441 0.92 % 30,172,055 1.99 % Discounts (18,071) (1,807) Hedging adjustments 272,453 71,067 TOTAL $ 21,226,823 $ 30,241,315 During the three months ended June 30, 2020, FHLBank issued subsidized zero-cost and low-cost COVID-19 Relief Advances to help members serve their customers affected by the COVID-19 pandemic. The zero-cost advances had a term of 6 months and the low-cost advances have terms between 6 and 24 months. As of December 31, 2020, FHLBank had $454,790,000 of low-cost advances outstanding. All zero-cost advances had matured as of December 31, 2020. Discounts were initially recorded on these advances and are accreted using the interest method over the life of the advances resulting in the recognition of periodic interest income on the advances at the effective interest rate (i.e., yield recorded equals a prevailing rate) in net interest income. As of December 31, 2020, the total unaccreted discount balance was $1,785,000. FHLBank’s outstanding advances 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. In October 2020, FHLBank placed a moratorium on the issuance of convertible advances. Table 5.2 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 December 31, 2020 and 2019 (in thousands): Table 5.2 Redemption Term Redemption Term Redemption Term 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Due in one year or less $ 14,271,213 $ 24,271,238 $ 13,563,370 $ 14,053,068 Due after one year through two years 1,161,239 1,133,077 1,861,133 10,637,833 Due after two years through three years 981,503 728,429 1,489,057 1,524,153 Due after three years through four years 773,881 764,990 1,400,447 1,215,412 Due after four years through five years 796,495 686,594 1,008,871 1,304,254 Thereafter 2,988,110 2,587,727 1,649,563 1,437,335 TOTAL PAR VALUE $ 20,972,441 $ 30,172,055 $ 20,972,441 $ 30,172,055 Interest Rate Payment Terms : Table 5.3 details additional interest rate payment terms for advances as of December 31, 2020 and 2019 (in thousands): Table 5.3 Redemption Term 12/31/2020 12/31/2019 Fixed rate: Due in one year or less $ 9,838,379 $ 2,691,528 Due after one year 6,663,459 5,912,124 Total fixed rate 16,501,838 8,603,652 Variable rate: Due in one year or less 2,702,591 10,496,590 Due after one year 1,768,012 11,071,813 Total variable rate 4,470,603 21,568,403 TOTAL PAR VALUE $ 20,972,441 $ 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. During the second quarter of 2020, FHLBank was given the regulatory flexibility via a Supervisory Letter from the FHFA to allow members to pledge Small Business Administration (SBA) Paycheck Protection Program (PPP) loans as eligible collateral, with the following restrictions: (1) maximum aggregate lending value for PPP loans is limited to the lesser of $5 billion or 20 percent of the institution’s total lending value on all collateral pledged; and (2) the institution must maintain a CAMELS composite rating of “3” or better. CAMELS is a rating system for banks utilized by federal banking supervisors that represents an evaluation of a bank's financial condition and compliance with laws and regulatory policies. If an institution’s CAMELS composite rating downgrades to “4” or “5,” the institution must substitute all PPP loans being utilized to support outstanding credit obligations with other eligible collateral within five business days. As of December 31, 2020, the amount of PPP loans pledged to FHLBank as collateral was insignificant. 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 UPB 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. The FHFA provided non-objection relief via a Supervisory Letter that permits FHLBank to offer its members increased collateral flexibility through the acceptance of various types of forbearance plans and loan modification agreements of the Temporary COVID-19 Underwriting Guidelines in the first quarter of 2020. FHLBank management and the board of directors has approved as collateral forbearance plans and loan modification agreements for the following loan categories: conventional mortgages on one-to-four family residential real property, mortgages on multifamily residential real property, agricultural real estate, commercial real estate, second mortgages on residential one-to-four family property, home equity lines of credit, operating loans, and equipment loans. In addition, the temporary guidelines allow flexibility to accept loans as collateral that have modifications or forbearance plans executed via electronic signature in compliance with the Electronic Signatures in Global and National Commerce Act (i.e., E-SIGN). As of December 31, 2020, the Temporary COVID-19 Underwriting Guidelines continue to be available for use by members. 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 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 December 31, 2020 and 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 December 31, 2020 and 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 years ended December 31, 2020 and 2019. Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no allowance for credit losses on advances was recorded as of December 31, 2020 and 2019. Credit Risk Exposure and Security Terms: FHLBank’s potential credit risk from advances is concentrated in commercial banks and savings institutions. As of December 31, 2020 and 2019, FHLBank had outstanding advances of $7,460,000,000 and $13,085,000,000, respectively, to one member and two members, respectively, that individually held 10 percent or more of FHLBank’s advances, which represents 35.6 percent and 43.4 percent, respectively, of total outstanding advances. The member that held 10 percent or more of FHLBank's advances as of December 31, 2020 also held greater than 10 percent as of December 31, 2019. See Note 15 for information about the fair value of advances. See Note 17 for detailed information on transactions with related parties. |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 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, FHLBank purchases single-family mortgage loans that are originated or acquired by PFIs. These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies. Mortgage Loans Held for Portfolio: Table 6.1 presents information as of December 31, 2020 and 2019 on mortgage loans held for portfolio (in thousands). Mortgage loans held for portfolio excludes accrued interest receivable of $44,101,000 and $52,358,000 as of December 31, 2020 and 2019, respectively. Table 6.1 12/31/2020 12/31/2019 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,419,725 $ 1,347,385 Fixed rate, long-term, single-family mortgages 7,666,912 9,128,268 Total unpaid principal balance 9,086,637 10,475,653 Premiums 128,231 155,793 Discounts (1,865) (2,503) Deferred loan costs, net 123 184 Other deferred fees (25) (38) Hedging adjustments (2,717) 4,905 Total before Allowance for Credit Losses on Mortgage Loans 9,210,384 10,633,994 Allowance for Credit Losses on Mortgage Loans 2 (5,177) (985) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 9,205,207 $ 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 6.6). Table 6.2 presents information as of December 31, 2020 and 2019 on the outstanding UPB of mortgage loans held for portfolio (in thousands): Table 6.2 12/31/2020 12/31/2019 Conventional loans $ 8,563,349 $ 9,849,542 Government-guaranteed or -insured loans 523,288 626,111 TOTAL UNPAID PRINCIPAL BALANCE $ 9,086,637 $ 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 (PMI), SMI and the CE obligation plus any recoverable performance-based CE 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 PMI, credit losses on mortgage loans in a master commitment are then absorbed by FHLBank’s First Loss Account (FLA). If applicable to the MPF product, FHLBank will withhold a PFI’s scheduled performance-based CE fee in order to reimburse FHLBank for any losses allocated to the FLA. If the FLA is exhausted, the credit losses are then absorbed by the PFI up to an agreed upon CE obligation, which may consist of a direct liability of PFI to pay credit losses up to a specified amount, a contractual obligation of a PFI to provide SMI, or a combination of both. Thereafter, any remaining credit losses are absorbed by FHLBank. FHLBank records CE fees paid to PFIs as a reduction to mortgage interest income. Table 6.3 presents net CE fees paid to PFIs for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 6.3 2020 2019 2018 CE fees paid to PFIs 1 $ 7,743 $ 7,019 $ 6,196 Performance-based CE fees recovered from PFIs (83) (125) (107) NET CE FEES PAID $ 7,660 $ 6,894 $ 6,089 1 CE fees paid to PFIs excludes the amortization of CE fees paid up front, which is included with premium amortization as a reduction to mortgage interest income. 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 6.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2020 (dollar amounts in thousands): Table 6.4 12/31/2020 Conventional Loans Government Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 16,546 $ 3,932 $ 7,879 $ 6,695 $ 11,904 $ 3,712 $ 50,668 $ 10,485 $ 61,153 Past due 60-89 days delinquent 7,680 1,064 2,354 2,805 4,438 1,278 19,619 4,895 24,514 Past due 90 days or more delinquent 20,518 3,868 13,325 20,969 43,268 5,839 107,787 22,691 130,478 Total past due 44,744 8,864 23,558 30,469 59,610 10,829 178,074 38,071 216,145 Total current loans 1,942,655 632,604 677,871 665,791 2,303,031 2,279,995 8,501,947 492,292 8,994,239 Total mortgage loans $ 1,987,399 $ 641,468 $ 701,429 $ 696,260 $ 2,362,641 $ 2,290,824 $ 8,680,021 $ 530,363 $ 9,210,384 Other delinquency statistics: In process of foreclosure 2 $ 1,785 $ 1,563 $ 3,348 Serious delinquency rate 3 1.3 % 4.3 % 1.4 % Past due 90 days or more and still accruing interest $ — $ 22,691 $ 22,691 Loans on non-accrual status 4,5 $ 117,584 $ — $ 117,584 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 amortized cost for the portfolio class. 4 Loans on non-accrual status include $1,311,000 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 $69,192,000 of conventional mortgage loans on non-accrual status that did not have an associated allowance for credit losses. FHLBank's servicers may grant a forbearance period to borrowers who have requested forbearance based on COVID-19-related difficulties regardless of the status of the loan at the time of the request. FHLBank continues to apply its accounting policy for past due loans and charge-offs to loans during the forbearance period whether it be formal or informal. The accrual status for a loan under forbearance will be driven by the past due status of the loan without consideration of the forbearance as the legal terms of the contractual arrangement have not been modified. As of December 31, 2020, there was $82,193,000, or 1.0 percent, of unpaid principal of conventional loans in a forbearance plan (excluding COVID-related modifications), representing $1,656,000, $5,663,000, $7,158,000, and $67,716,000 with payment status of current, 30 to 59 days past due, 60 to 89 days past due, and greater than 90 days past due, respectively. As of December 31, 2020, FHLBank suspended TDR accounting on $2,103,000 of unpaid principal of conventional loans classified as COVID-related modifications; these loans are still accruing interest. Table 6.5 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 6.5 12/31/2019 Conventional Government 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. Prior to the adoption of CECL accounting guidance, FHLBank's allowance for mortgage loans consisted of an estimate of incurred losses from individually evaluated mortgage loans, including collateral dependent mortgage loans, and collectively evaluated mortgage loans. The incurred loss of an individually evaluated mortgage loan is equal to the difference between the carrying value of the loan and the estimated fair value of the collateral, less estimated selling costs, and may include expected proceeds from PMI and other applicable credit enhancements. Certain conventional mortgage loans, primarily impaired mortgage loans that were considered collateral dependent, were specifically identified for purposes of calculating the allowance for credit losses. Conventional loans evaluated collectively for impairment by FHLBank considered loan pool specific attribute data, including historical delinquency migration, estimated loss severities, and incorporated the associated credit enhancements in order to determine FHLBank's best estimate of probable incurred losses at the reporting date. FHLBank then estimated how many loans in each payment status category may migrate to a realized loss position and applied a loss severity factor to estimate losses incurred at the Statement of Condition date. The losses were then reduced by the probable cash flows resulting from available credit enhancements. FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 6.6 presents a roll-forward of the allowance for credit losses on mortgage loans for the years ended December 31, 2020, 2019, and 2018. Table 6.6 Conventional Loans 2020 2019 2018 Balance, beginning of the period $ 985 $ 812 $ 1,208 Adjustment for cumulative effect of accounting change 6,123 — — Net (charge-offs) recoveries (1,215) (214) (423) Provision (reversal) for credit losses (716) 387 27 Balance, end of the period $ 5,177 $ 985 $ 812 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 December 31, 2020 or 2019. Furthermore, none 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. See Note 15 for information about the fair value of mortgage loans held for portfolio. See Note 17 for detailed information on transactions with related parties. |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Nature of Business Activity: FHLBank is exposed to interest rate risk primarily from the effect of interest rate changes on its interest-earning assets and its interest-bearing liabilities that finance these assets. The goal of FHLBank’s interest-rate risk management strategy is not to eliminate interest rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, FHLBank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, FHLBank monitors the risk to its interest income, net interest margin and average maturity of interest-earning assets and interest-bearing liabilities. Consistent with FHFA regulation, FHLBank enters into derivatives to: (1) reduce the interest rate risk exposures inherent in otherwise unhedged assets and funding positions; and (2) achieve risk management objectives. FHFA regulation and FHLBank’s RMP prohibit trading in or the speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of FHLBank’s financial and risk management strategy. FHLBank reevaluates its hedging strategies periodically and may change the hedging techniques it uses or may adopt new strategies. The most common ways in which FHLBank uses derivatives are to: ▪ Reduce funding costs by combining an interest rate swap with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation; ▪ Reduce the interest rate sensitivity and repricing gaps of assets and liabilities; ▪ Preserve a favorable interest rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation used to fund the advance). Without the use of derivatives, this interest rate spread could be reduced or eliminated when a change in the interest rate on the advance does not match a change in the interest rate on the consolidated obligation; ▪ Mitigate the adverse earnings effects of the shortening or extension of certain assets (e.g., advances or mortgage assets) and liabilities; ▪ Manage embedded options in assets and liabilities; and ▪ Manage its overall asset/liability portfolio. Application of Derivatives: At the inception of every hedge transaction, FHLBank documents all hedging relationships between derivatives designated as hedging instruments and the hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and/or liabilities on the Statements of Condition or firm commitments. Derivative instruments are designated by FHLBank as: ▪ A qualifying fair value hedge of an associated financial instrument or a firm commitment; or ▪ A non-qualifying economic hedge to manage certain defined risks in the Statements of Condition. These hedges are primarily used to: (1) manage mismatches between the coupon features of assets and liabilities; (2) offset prepayment risks in certain assets; (3) mitigate the income statement volatility that occurs when financial instruments are recorded at fair value and hedge accounting is not permitted; or (4) reduce exposure to reset risk. FHLBank transacts most of its derivatives with large banks and major broker/dealers. Some of these banks and broker/dealers or their affiliates buy, sell and distribute consolidated obligations. Over-the-counter derivative transactions may be either executed through a bilateral agreement with a counterparty (uncleared derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Clearinghouse (cleared derivatives). Once a derivative transaction has been accepted for clearing by a Clearinghouse the executing counterparty is replaced with that Clearinghouse. FHLBank is not a derivatives dealer, and thus does not trade derivatives for short-term profit. Types of Derivatives: FHLBank primarily uses the following derivative instruments: Interest Rate Swaps - An interest rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional principal amount at a variable interest rate index for the same period of time. Interest Rate Caps and Floors - In an interest rate cap agreement, a cash flow is generated if the price or interest rate of an underlying variable rises above a certain threshold (or cap) price or interest rate. In an interest rate floor agreement, a cash flow is generated if the price or interest rate of an underlying variable falls below a certain threshold (or floor) price or interest rate. Interest rate caps and floors are designed as protection against the interest rate on a variable rate asset or liability rising or falling below a certain level. FHLBank purchases interest rate caps and floors to hedge option risk on variable rate MBS held in FHLBank’s trading and held-to-maturity portfolios and to hedge embedded caps or floors in FHLBank’s advances. Types of Hedged Items: FHLBank may have the following types of hedged items: Investments - FHLBank invests in U.S. Treasury securities, U.S. Agency securities, GSE securities, MBS and state or local housing finance agency securities. The interest rate and prepayment risk associated with these investment securities is managed through a combination of debt issuance and derivatives. FHLBank may manage the prepayment and interest rate risk by funding investment securities with consolidated obligations that have call features or by economically hedging the prepayment risk with interest rate caps or floors, or callable swaps. FHLBank may manage against prepayment and duration risks by funding investment securities with consolidated obligations that have call features. FHLBank may also manage the risk arising from changing market prices and volatility of investment securities by entering into economic derivatives that generally offset the changes in fair value of the securities. FHLBank’s derivatives associated with trading and held-to-maturity securities are designated as economic hedges, and FHLBank's derivatives associated with available-for-sale securities are designated and qualify as fair value hedges. Interest rate caps and floors and callable swaps may also be used to hedge prepayment and option risk on the MBS held in FHLBank’s trading, available-for-sale and held-to-maturity portfolios. Many of these derivatives are purchased interest rate caps that hedge interest rate caps embedded in FHLBank’s trading and held-to-maturity variable rate Agency MBS. Although these derivatives are valid economic hedges against the prepayment and option risk of the portfolio of MBS, they are not specifically linked to individual investment securities and, therefore, do not receive fair value hedge accounting. The derivatives are marked-to-market through earnings. Advances - With the issuance of a convertible advance, FHLBank purchases from the member an option that enables FHLBank to convert an advance from a fixed rate to a variable rate if interest rates increase. Once FHLBank exercises its option to convert an advance to an at-the-market variable rate, the member then owns the option to terminate the converted advance without fee or penalty on the conversion date and each interest rate reset date thereafter. FHLBank hedges a convertible advance by entering into a cancelable derivative with a non-member counterparty where FHLBank pays a fixed rate and receives a variable rate. The derivative counterparty may cancel the derivative on a put date. This type of hedge is designated as a fair value hedge. The counterparty’s decision to cancel the derivative would normally occur in a rising rate environment. If the option is in-the-money, the derivative is cancelled by the derivative counterparty at par (i.e., without any premium or other payment to FHLBank). When the derivative is cancelled, FHLBank exercises its option to convert the advance to a variable rate. If a convertible advance is not prepaid by the member upon conversion to an at-the-market variable rate advance (i.e., callable variable rate advance), any hedge-related unamortized basis adjustment is amortized as a yield adjustment. When fixed rate advances are issued to one or more borrowers, FHLBank can either fund the advances with fixed rate consolidated obligations with the same tenor or simultaneously enter into a matching derivative in which the clearing agent or derivative counterparty receives fixed cash flows from FHLBank designed to mirror in timing and amount the cash inflows FHLBank receives on the advance. These transactions are designated as fair value hedges. In this type of transaction, FHLBank typically receives from the clearing agent or derivative counterparty a variable cash flow that closely matches the interest payments on short-term discount notes or swapped consolidated obligation bonds. The repricing characteristics and optionality embedded in certain financial instruments held by FHLBank can create interest rate risk. For example, when a member prepays an advance, FHLBank could suffer lower future income if the principal portion of the prepaid advance were invested in lower-yielding assets that continue to be funded by higher-cost debt. To protect against this risk, FHLBank generally charges a prepayment fee on an advance that makes it financially indifferent to a member’s decision to prepay the advance. When FHLBank offers advances (other than short-term advances) that a member may prepay without a prepayment fee, it usually finances these advances with callable debt or otherwise hedges the option being sold to the member. Mortgage Loans - FHLBank invests in fixed rate mortgage loans through the MPF Program. The prepayment options embedded in mortgage loans can result in extensions or contractions in the expected lives of these investments, depending on changes in estimated future cash flows, which usually occur as a result of interest rate changes. FHLBank may manage the interest rate and prepayment risk associated with mortgage loans through a combination of debt issuance and derivatives. FHLBank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. FHLBank may use derivatives in conjunction with debt issuance to better match the expected prepayment characteristics of its mortgage loan portfolio. Consolidated Obligations - FHLBank may enter into derivatives to hedge the interest rate risk associated with its debt issuances. FHLBank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation. For instance, FHLBank may issue a fixed rate consolidated obligation and simultaneously enter into a matching derivative in which FHLBank receives a fixed cash flow designed to mirror in timing and amount the cash outflows FHLBank pays on the consolidated obligation. In this type of transaction, FHLBank typically pays a variable cash flow that closely matches the interest payments it receives on short-term or variable rate advances. These transactions are designated as fair value hedges. FHLBank may issue variable rate consolidated obligations indexed to the Secured Overnight Financing Rate (SOFR), Federal funds effective rate, LIBOR or other rates and generally simultaneously execute interest rate swaps to hedge the basis risk of the variable rate debt. This type of hedge is treated as an economic hedge and is marked-to-market through earnings. This strategy of issuing consolidated obligations while simultaneously entering into derivatives is intended to enable FHLBank to offer a wider range of attractively priced advances to its members and may allow FHLBank to reduce its funding costs. The continued attractiveness of this debt depends on yield relationships between the consolidated obligations and the derivative markets. If conditions change, FHLBank may alter the types or terms of the consolidated obligations that it issues. Firm Commitments - Commitments that obligate FHLBank to purchase closed fixed rate mortgage loans from its members are considered derivatives. Accordingly, each mortgage loan purchase commitment is recorded as a derivative asset or derivative liability at fair value, with changes in fair value recognized in current period earnings. When a mortgage loan purchase commitment derivative settles, the current market value of the commitment is included with the basis of the mortgage loan and amortized accordingly. Commitments that obligate FHLBank to issue consolidated obligations that settle outside of normal market settlement conventions (5 business days for consolidated obligation discount notes and 30 calendar days for consolidated obligation bonds) are considered derivatives. Accordingly, each consolidated obligation commitment is recorded as a derivative asset or derivative liability at fair value, with changes in fair value recognized in current period earnings. When the consolidated obligation commitment derivative settles, the current market value of the commitment is included with the basis of the consolidated obligation and amortized accordingly. FHLBank may also hedge a firm commitment for a forward starting advance or consolidated obligation bond through the use of an interest rate swap. In this case, the swap functions as the hedging instrument for both the hedging relationship involving the firm commitment and the subsequent hedging relationship involving the advance or bond and is treated as a fair value hedge. If the hedge relationship is de-designated when the commitment is terminated and the advance or bond is issued, the fair value change associated with the firm commitment is recorded as a basis adjustment of the advance or bond at the time of de-designation. The basis adjustment is then amortized into interest income or expense over the life of the advance or bond. In addition, if a hedged firm commitment no longer qualifies as a fair value hedge, the hedge would be terminated and net gains and losses would be recognized in current period earnings. There were no gains or losses recognized due to disqualification of firm commitment hedges during the years ended December 31, 2020, 2019, and 2018. Financial Statement Impact and Additional Financial Information: Derivative instruments are recorded at fair value and reported in derivative assets or derivative liabilities on the Statements of Condition. Premiums paid at acquisition are accounted for as the basis of the derivative at inception of the hedge. The notional amount in derivative contracts serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives reflects FHLBank’s involvement in the various classes of financial instruments and represents neither the actual amounts exchanged nor the overall exposure of FHLBank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the clearing agents, counterparties, the types of derivatives, the items being hedged and any offsets between the derivatives and the items being hedged. FHLBank considers accrued interest receivables and payables and the legal right to offset derivative assets and liabilities by clearing agent or derivative counterparty. Consequently, derivative assets and liabilities reported on the Statements of Condition generally include the net cash collateral, including initial margin, and accrued interest received or pledged by clearing agents and/or derivative counterparties. Therefore, an individual derivative may be in an asset position (clearing agent or derivative counterparty would owe FHLBank the current fair value, which includes net accrued interest receivable or payable on the derivative, if the derivative was settled as of the Statement of Condition date) but when the derivative fair value and cash collateral fair value (includes accrued interest on the collateral) are netted by clearing agent by Clearinghouse, or by derivative counterparty, the derivative may be recorded on the Statements of Condition as a derivative liability. Conversely, a derivative may be in a liability position (FHLBank would owe the clearing agent or derivative counterparty the fair value if settled as of the Statement of Condition date) but may be recorded on the Statements of Condition as a derivative asset after netting. Table 7.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of December 31, 2020 and 2019 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 7.1 12/31/2020 12/31/2019 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments: Interest rate swaps $ 15,862,207 $ 18,427 $ 261,431 $ 16,448,512 $ 23,462 $ 80,398 Total derivatives designated as hedging relationships 15,862,207 18,427 261,431 16,448,512 23,462 80,398 Derivatives not designated as hedging instruments: Interest rate swaps 2,476,659 107 68,210 3,099,622 736 26,285 Interest rate caps/floors 602,500 141 — 1,130,000 117 — Mortgage delivery commitments 133,456 654 4 221,800 495 25 Total derivatives not designated as hedging instruments 3,212,615 902 68,214 4,451,422 1,348 26,310 TOTAL $ 19,074,822 19,329 329,645 $ 20,899,934 24,810 106,708 Netting adjustments and cash collateral 1 129,539 (325,241) 129,994 (106,506) DERIVATIVE ASSETS AND LIABILITIES $ 148,868 $ 4,404 $ 154,804 $ 202 1 Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 2019, respectively. FHLBank carries derivative instruments at fair value on its Statements of Condition. Any change in the fair value of derivatives designated under a fair value hedging relationship is recorded each period in current period earnings. Fair value hedge accounting allows for the offsetting fair value of the hedged risk in the hedged item to also be recorded in current period earnings. Beginning on January 1, 2019, changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item. Prior to January 1, 2019, for fair value hedges, any hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedge item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Interest settlements on derivatives designated as fair value hedges were recorded in net interest income or expense prior to, and continue to be recorded in net interest income or expense after January 1, 2019. However, beginning on January 1, 2019, gains (losses) on fair value derivatives represent unrealized changes in fair value as well as net interest settlements. For the years ended December 31, 2020, 2019, and 2018, 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 7.2 (in thousands): Table 7.2 2020 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 268,051 $ 54,311 $ 123,124 $ 363,896 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (253,469) $ (354,003) $ 18,345 $ 44,157 Hedged items 2 202,888 246,911 (118) (8,264) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (50,581) $ (107,092) $ 18,227 $ 35,893 2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 716,199 $ 116,866 $ 532,155 $ 689,275 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (96,772) $ (140,821) $ 75 $ 27,229 Hedged items 2 115,323 139,828 138 (32,904) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 18,551 $ (993) $ 213 $ (5,675) 2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 9,653 $ 474 $ 12 $ (5,178) $ 21,360 Hedged items 2 (3,881) — — — (27,650) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 5,772 $ 474 $ 12 $ (5,178) $ (6,290) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to hedge accounting guidance adopted January 1, 2019 (i.e., net gains (losses) are separated in this table consistent with the 2018 income statement presentation). Table 7.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2020 and 2019 (in thousands): Table 7.3 12/31/2020 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 $ 5,895,962 $ 261,304 $ 11,149 $ 272,453 Available-for-sale securities 6,696,114 320,063 — 320,063 Consolidated obligation discount notes (174,855) 33 — 33 Consolidated obligation bonds (3,791,848) (34,654) — (34,654) 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 7.4 provides information regarding net gains (losses) on derivatives and hedging activities recorded in non-interest income (in thousands). Table 7.4 2020 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290) Total net gains (losses) related to fair value hedge ineffectiveness (6,290) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (78,633) $ (56,961) 10,114 Interest rate caps/floors 23 (927) 33 Net interest settlements (46,630) (3,974) (5,476) Mortgage delivery commitments (4,205) 4,309 (1,642) Consolidated obligation discount note commitments — (70) 70 Total net gains (losses) related to derivatives not designated as hedging instruments (129,445) (57,623) 3,099 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (129,445) $ (57,623) $ (3,191) Managing Credit Risk on Derivatives: FHLBank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions and manages credit risk through credit analyses, collateral requirements and adherence to the requirements set forth in its RMP, U.S. Commodity Futures Trading Commission regulations and FHFA regulations. Uncleared derivatives . For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. FHLBank requires collateral agreements with collateral delivery thresholds on all uncleared derivatives. All bilateral security agreements include bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts. Additionally, collateral related to derivatives with member institutions includes collateral assigned to FHLBank, as evidenced by a written security agreement. 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 $247,000 and $211,000 as of December 31, 2020 and 2019, respectively. The counterparty was different for each period. Cleared derivatives. For cleared derivatives, a Clearinghouse is FHLBank’s counterparty. The applicable Clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent in turn notifies FHLBank. FHLBank utilizes two Clearinghouses for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments, and initial margin is considered cash collateral. The requirement that FHLBank posts initial and variation margin through the clearing agent, to the Clearinghouse, exposes FHLBank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral/payments for changes in the value of cleared derivatives is posted daily through a clearing agent. 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 December 31, 2020 and 2019. FHLBank’s net exposure on derivative agreements is presented in Note 11. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | DEPOSITS FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. A member that services mortgage loans may also deposit funds collected in connection with the mortgage loans, pending disbursement of these funds to the owners of the mortgage loans. FHLBank classifies these funds as other deposits. Deposits classified as demand and overnight pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit. Table 8.1 details the types of deposits held by FHLBank as of December 31, 2020 and 2019 (in thousands): Table 8.1 12/31/2020 12/31/2019 Interest-bearing: Demand $ 308,604 $ 383,197 Overnight 660,400 280,300 Term 2,750 — Total interest-bearing 971,754 663,497 Non-interest-bearing: Other 257,607 127,143 Total non-interest-bearing 257,607 127,143 TOTAL DEPOSITS $ 1,229,361 $ 790,640 |
Consolidated Obligations
Consolidated Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations | CONSOLIDATED OBLIGATIONS Consolidated obligations consist of consolidated bonds and discount notes and, as provided by the Bank Act or FHFA regulation, are backed only by the financial resources of the FHLBanks. The FHLBanks jointly issue consolidated obligations with the Office of Finance acting as their agent. The Office of Finance tracks the amounts of debt issued on behalf of each FHLBank. In addition, FHLBank records as a liability its specific portion of consolidated obligations for which it is the primary obligor. FHLBank utilizes a debt issuance process to provide a scheduled monthly issuance of global bullet consolidated obligation bonds. As part of this process, management from each of the FHLBanks determines and communicates a firm commitment to the Office of Finance for an amount of scheduled global debt to be issued on its behalf. If the FHLBanks’ commitments do not meet the minimum debt issue size, the proceeds are allocated to all FHLBanks based on the larger of the FHLBank’s commitment or allocated proceeds based on the individual FHLBank’s regulatory capital to total system regulatory capital. If the FHLBanks’ commitments exceed the minimum debt issue size, the proceeds are allocated based on relative regulatory capital of all FHLBanks with the allocation limited to the lesser of the allocation amount or actual commitment amount. The FHFA and the U.S. Secretary of the Treasury oversee the issuance of FHLBank debt through the Office of Finance. The FHLBanks can, however, pass on any scheduled calendar slot and not issue any global bullet consolidated obligation bonds upon agreement of 8 of the 11 FHLBanks. Consolidated obligation bonds may be issued to raise short-, intermediate-, and long-term funds for the FHLBanks and are not subject to any statutory or regulatory limits as to maturities. Consolidated obligation discount notes, which are issued to raise short-term funds, are generally issued at less than their face amounts and redeemed at par when they mature. Although FHLBank is primarily liable for its portion of consolidated obligations, FHLBank is also jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The FHFA, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligations for which FHLBank is not the primary obligor. Although it has never occurred, to the extent that an FHLBank would be required to make a payment on a consolidated obligation on behalf of another FHLBank, the paying FHLBank would be entitled to reimbursement from the non-complying FHLBank. However, if the FHFA determines that the non-complying FHLBank is unable to satisfy its obligations, then the FHFA may allocate the non-complying FHLBank’s outstanding consolidated obligation debt among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding, or on any other basis the FHFA may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of outstanding consolidated obligations of all FHLBanks, including outstanding consolidated obligations issued on behalf of FHLBank, was $746,772,303,000 and $1,025,894,666,000 as of December 31, 2020 and 2019, respectively. See Note 18 for FHLBank obligations acquired by FHLBank Topeka as investments. FHFA regulations require that each FHLBank maintain unpledged qualifying assets equal to its participation in the total consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; obligations, participations or other instruments of or issued by Fannie Mae or Ginnie Mae; mortgages, obligations or other securities, which are or have ever been sold by Freddie Mac; and such securities as fiduciary and trust funds may invest in under the laws of the state in which FHLBank is located. Consolidated Obligation Bonds: Table 9.1 presents FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2020 and 2019 (dollar amounts in thousands): Table 9.1 12/31/2020 12/31/2019 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 27,921,650 0.31 % $ 15,991,800 1.79 % Due after one year through two years 1,267,800 1.45 6,318,350 1.90 Due after two years through three years 1,216,600 1.91 1,375,000 2.11 Due after three years through four years 831,700 1.58 1,285,900 2.39 Due after four years through five years 836,100 1.22 1,223,350 2.40 Thereafter 5,518,800 1.60 5,776,300 2.78 Total par value 37,592,650 0.63 % 31,970,700 2.05 % Premiums 38,219 34,789 Discounts (3,303) (3,357) Concession fees (14,143) (15,207) Hedging adjustments 34,654 26,389 TOTAL $ 37,648,077 $ 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. FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2020 and 2019 includes callable bonds totaling $6,878,000,000 and $8,891,500,000, respectively. FHLBank uses the unswapped callable bonds for financing its callable fixed rate advances (Note 5), MBS (Note 4) and mortgage loans (Note 6). 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 9.2 summarizes FHLBank’s participation in consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of December 31, 2020 and 2019 (in thousands): Table 9.2 Year of Maturity or Next Call Date 12/31/2020 12/31/2019 Due in one year or less $ 34,299,650 $ 24,583,300 Due after one year through two years 1,142,800 5,148,350 Due after two years through three years 815,100 615,000 Due after three years through four years 399,700 682,400 Due after four years through five years 391,100 356,850 Thereafter 544,300 584,800 TOTAL PAR VALUE $ 37,592,650 $ 31,970,700 In addition to having fixed rate or simple variable rate coupon payment terms, consolidated obligation bonds may also have the following broad terms, regarding the coupon payment: ▪ Range bonds that have coupon rates at fixed or variable rates and pay the fixed or variable rate as long as the index rate is within the established range, but generally pay zero percent or a minimal interest rate if the specified index rate is outside the established range; ▪ Conversion bonds that have coupon rates that convert from fixed to variable, or variable to fixed, rates or from one index to another, on predetermined dates according to the terms of the bond offerings; and ▪ Step bonds that have coupon rates at fixed or variable rates for specified intervals over the lives of the bonds. At the end of each specified interval, the coupon rate or variable rate spread increases (decreases) or steps up (steps down). These bond issues generally contain call provisions enabling the bonds to be called at FHLBank’s discretion on the step dates. Table 9.3 summarizes interest rate payment terms for consolidated obligation bonds as of December 31, 2020 and 2019 (in thousands): Table 9.3 12/31/2020 12/31/2019 Simple variable rate $ 23,752,000 $ 16,017,000 Fixed rate 13,840,650 15,573,700 Variable rate with cap — 220,000 Step — 110,000 Fixed to variable rate — 50,000 TOTAL PAR VALUE $ 37,592,650 $ 31,970,700 Consolidated Discount Notes: Table 9.4 summarizes FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 9.4 Book Value Par Value Weighted Average Interest Rate 1 December 31, 2020 $ 10,882,417 $ 10,883,608 0.08 % December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % 1 Represents yield to maturity excluding concession fees. |
Affordable Housing Program
Affordable Housing Program | 12 Months Ended |
Dec. 31, 2020 | |
Affordable Housing Program [Abstract] | |
Affordable Housing Program | AFFORDABLE HOUSING PROGRAM The Bank Act requires each FHLBank to establish an AHP. As a part of its AHP, FHLBank provides subsidies in the form of direct grants or below-market interest rate advances to members that use the funds to assist in the purchase, construction or rehabilitation of housing for very low-, low- and moderate-income households. Each FHLBank is required to contribute to its AHP the greater of: (a) 10 percent of its previous year's income subject to assessment; or (b) the prorated sum required to ensure the aggregate contribution by all FHLBanks is no less than $100,000,000 each year, except that the required annual AHP contribution shall not exceed an FHLBank's net earnings in the previous year. For purposes of the AHP calculation, the term “income subject to assessment” is defined as income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP. FHLBank accrues this expense monthly based on its income subject to assessment. The amount set aside for AHP is charged to expense and recognized as a liability. As subsidies are provided through the disbursement of grants or issuance of subsidized advances, the AHP liability is reduced accordingly. If FHLBank’s income subject to assessment would ever be zero or less, the amount of AHP liability would generally be equal to zero. However, if the result of the aggregate 10 percent calculation described above is less than the $100,000,000 minimum for all FHLBanks as a group, then the Bank Act requires the shortfall to be allocated among FHLBanks based on the ratio of each FHLBank’s income for the previous year. If an FHLBank determines that its required AHP contributions are exacerbating any financial instability of that FHLBank, it may apply to the FHFA for a temporary suspension of its AHP contributions. FHLBank has never applied to the FHFA for a temporary suspension of its AHP contributions. Table 10.1 details the change in the AHP liability for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 10.1 2020 2019 2018 Appropriated and reserved AHP funds as of the beginning of the period $ 43,027 $ 43,081 $ 43,005 AHP set aside based on current year income 13,123 20,597 18,944 Direct grants disbursed (15,137) (20,973) (19,027) Recaptured funds 1 116 322 159 Appropriated and reserved AHP funds as of the end of the period $ 41,129 $ 43,027 $ 43,081 1 Recaptured funds are direct grants returned to FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. |
Assets and Liabilities Subject
Assets and Liabilities Subject to Offsetting | 12 Months Ended |
Dec. 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, including 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 11.1 and 11.2 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 FHLBank’s master netting arrangements or similar agreements as of December 31, 2020 and 2019 (in thousands): Table 11.1 12/31/2020 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net Derivative assets: Uncleared derivatives $ 18,819 $ (18,031) $ 788 $ (654) $ 134 Cleared derivatives 510 147,570 148,080 — 148,080 Total derivative assets 19,329 129,539 148,868 (654) 148,214 Securities purchased under agreements to resell 2,600,000 — 2,600,000 (2,600,000) — TOTAL $ 2,619,329 $ 129,539 $ 2,748,868 $ (2,600,654) $ 148,214 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 11.2 12/31/2019 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net 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 11.3 and 11.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of December 31, 2020 and 2019 (in thousands): Table 11.3 12/31/2020 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net Derivative liabilities: Uncleared derivatives $ 324,491 $ (320,087) $ 4,404 $ (4) $ 4,400 Cleared derivatives 5,154 (5,154) — — — Total derivative liabilities 329,645 (325,241) 4,404 (4) 4,400 TOTAL $ 329,645 $ (325,241) $ 4,404 $ (4) $ 4,400 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 11.4 12/31/2019 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net 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 | 12 Months Ended |
Dec. 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 12.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of December 31, 2020 and 2019 (dollar amounts in thousands): Table 12.1 12/31/2020 12/31/2019 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 192,927 $ 2,213,868 $ 486,650 $ 2,319,531 Total regulatory capital-to-asset ratio 4.0 % 5.0 % 4.0 % 4.4 % Total regulatory capital $ 2,103,668 $ 2,627,083 $ 2,531,066 $ 2,768,680 Leverage capital ratio 5.0 % 7.1 % 5.0 % 6.2 % Leverage capital $ 2,629,586 $ 3,734,017 $ 3,163,833 $ 3,928,446 Capital Stock: FHLBank offers two classes of stock, Class A Common Stock and Class B Common Stock. Each member is required to hold capital stock to become and remain a member of FHLBank (Asset-based Stock Purchase Requirement; Class A Common Stock) and enter into specified activities with FHLBank including, but not limited to, access to the FHLBank’s credit products and selling AMA to FHLBank (Activity-based Stock Purchase Requirement; Class A Common Stock to the extent of a member’s Asset-based Stock Purchase Requirement, then Class B Common Stock for the remainder). The amount of Class A Common Stock a member must acquire and maintain is the Asset-based Stock Purchase Requirement, which is currently equal to 0.1 percent of a member’s total assets as of December 31 of the preceding calendar year, with a minimum requirement of $1,000, and a maximum requirement of $500,000. The amount of Class B Common Stock a member must acquire and maintain is the Activity-based Stock Purchase Requirement, which is currently equal to 4.5 percent of the principal amount of advances outstanding to the member plus 3.0 percent of the principal amount of AMA outstanding for the member, limited to a maximum of 3.0 percent of the member's total assets at the end of the prior calendar year, less the member’s Asset-based Stock Purchase Requirement. As of December 31, 2020, there was no Activity-based Stock Purchase Requirement for letters of credit. However, the Letter of Credit Activity-based Stock Purchase Requirement increased to 0.25 percent from the previous requirement of zero percent, effective January 22, 2021. The change in the Activity-based Stock Purchase Requirements will not change for former members with outstanding business transactions. The percentages listed above are subject to change by FHLBank within ranges established in its capital plan. Changes to the percentages outside of the capital plan percentages require FHLBank to request FHFA approval of an amended capital plan. See Note 17 for detailed information on transactions with related parties. Any member may make a written request not in connection with a notice of withdrawal or attaining non-member status for the redemption of a part of its Class A Common Stock or all or part of its Class B Common Stock (i.e., excess stock redemption request). Within five five five Under FHFA regulations, members that withdraw from membership may not be readmitted to membership, or acquire any capital stock of any FHLBank, for a period of five years from the date on which the institution's membership terminated and it divested all of its shares of FHLBank stock. Stock Dividends: FHLBank’s board of directors may declare and pay non-cumulative dividends, expressed as a percentage rate per annum based upon the par value of capital stock on shares of Class A Common Stock outstanding and on shares of Class B Common Stock outstanding, out of previously unrestricted retained earnings and current earnings in either cash or Class B Common Stock. There is no dividend preference between Class A Common Stockholders and Class B Common Stockholders up to the Dividend Parity Threshold (DPT). Dividend rates in excess of the DPT may be paid on Class A Common Stock or Class B Common Stock at the discretion of the board of directors, provided, however, that the dividend rate paid per annum on the Class B Common Stock equals or exceeds the dividend rate per annum paid on the Class A Common Stock for any dividend period. The DPT can be changed at any time by the board of directors but will only be effective for dividends paid at least 90 days after the date members are notified by FHLBank. The DPT effective for dividends paid during 2020, 2019, and 2018 was equal to the average overnight Federal funds effective rate minus 100 basis points. This DPT will continue to be effective until such time as it may be changed by FHLBank’s board of directors. When the overnight Federal funds effective rate is below 1.00 percent, the DPT is zero for that dividend period (DPT is floored at zero). The board of directors cannot declare a dividend if: (1) FHLBank’s capital position is below its minimum regulatory capital requirements; (2) FHLBank’s capital position will be below its minimum regulatory capital requirements after paying the dividend; (3) the principal or interest due on any consolidated obligation of FHLBank has not been paid in full; (4) FHLBank fails to provide the FHFA the quarterly certification prior to declaring or paying dividends for a quarter; or (5) FHLBank fails to provide notification upon its inability to provide such certification or upon a projection that it will fail to comply with statutory or regulatory liquidity requirements or will be unable to timely and fully meet all of its current obligations. 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 12.2 presents a roll-forward of mandatorily redeemable capital stock for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 12.2 2020 2019 2018 Balance, beginning of period $ 2,415 $ 3,597 $ 5,312 Capital stock subject to mandatory redemption reclassified from equity during the period 2,199,346 283,831 1,040,316 Capital stock redemption cancellations reclassified to equity during the period (100,647) — — Redemption or repurchase of mandatorily redeemable capital stock during the period (2,099,548) (285,150) (1,042,258) Stock dividend classified as mandatorily redeemable capital stock during the period 58 137 227 Balance, end of period $ 1,624 $ 2,415 $ 3,597 Table 12.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of December 31, 2020 and 2019 (in thousands). The year of redemption in Table 12.3 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 12.3 Contractual Year of Repurchase 12/31/2020 12/31/2019 Year 1 $ 7 $ — Year 2 634 1 Year 3 — 869 Year 4 — — Year 5 — — Past contractual redemption date due to remaining activity 1 983 1,545 TOTAL $ 1,624 $ 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. Assuming FHLBank did not elect to redeem a member's Class A Common Stock or Class B Common Stock within five six six The FHFA issued a regulatory interpretation confirming that the mandatorily redeemable capital stock accounting treatment for certain shares of FHLBank capital stock does not affect the definition of regulatory capital for purposes of determining FHLBank’s compliance with its regulatory capital requirements, calculating its mortgage securities investment authority (various percentages of total FHLBank capital depending on the date acquired), calculating its unsecured credit exposure to other GSEs (100 percent of total FHLBank capital) or calculating its unsecured credit limits to other counterparties (various percentages of total FHLBank capital depending on the rating of the counterparty). 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 FHLBank’s excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause FHLBank’s excess stock to exceed one percent of its total assets. As of December 31, 2020, 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. Partial Recovery of Prior Capital Distribution to Financing Corporation . The Competitive Equality Banking Act of 1987 was enacted in August 1987, which, among other things, provided for the recapitalization of the Federal Savings and Loan Insurance Corporation through a newly-chartered entity, the Financing Corporation. The capitalization of the Financing Corporation was provided by capital distributions from the FHLBanks to the Financing Corporation in exchange for Financing Corporation nonvoting capital stock. Capital distributions were made by the FHLBanks in 1987, 1988 and 1989 that aggregated to $680,000,000. Upon passage of Financial Institutions Reform, Recovery and Enforcement Act of 1989, the FHLBanks’ previous investment in capital stock of the Financing Corporation was determined to be non-redeemable and the FHLBanks charged-off their prior capital distributions to the Financing Corporation directly against retained earnings. Upon the dissolution of the Financing Corporation in June 2020, the Financing Corporation determined that excess funds aggregating to $200,031,000 were available for distribution to its stockholders, the FHLBanks. Specifically, FHLBank Topeka’s partial recovery of prior capital distribution was $10,543,000, which was determined based on its share of the $680,000,000 originally contributed. The FHLBanks treated the receipt of these funds as a return of the FHLBanks’ investment in Financing Corporation capital stock, and therefore as a partial recovery of the prior capital distributions made by the FHLBanks to the Financing Corporation in 1987, 1988, and 1989. These funds have been credited to unrestricted retained earnings. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME Table 13.1 summarizes the changes in AOCI for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 13.1 Year Ended Net Unrealized Gains (Losses) on Available-for-Sale Securities (Note 4) Net Non-Credit Portion of Other-than-temporary Impairment Gains (Losses) on Held-to-maturity Securities (Note 4) Defined Benefit Pension Plan (Note 15) Total AOCI Balance at December 31, 2017 $ 31,206 $ (4,163) $ (1,385) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (12,138) (12,138) Accretion of non-credit other-than-temporary impairment loss 513 513 Non-credit losses included in basis of securities sold 3,625 3,625 Net gains (losses) - defined benefit pension plan (2,389) (2,389) Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 25 25 Amortization of net losses - defined benefit pension plan 2 399 399 Net current period other comprehensive income (loss) (12,138) 4,163 (1,990) (9,965) Balance at December 31, 2018 $ 19,068 $ — $ (3,375) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 7,720 7,720 Net gains (losses) - defined benefit pension plan (1,806) (1,806) Curtailment gains (losses) - defined benefit pension plan 2,845 2,845 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 334 334 Net current period other comprehensive income (loss) 7,720 — 1,373 9,093 Balance at December 31, 2019 $ 26,788 $ — $ (2,002) $ 24,786 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 19,931 19,931 Net gains (losses) - defined benefit pension plan (1,177) (1,177) Settlement charges - defined benefit pension plan 133 133 Reclassifications from other comprehensive income (loss) to net income: Realized net (gains) losses included in net income 3 (1,523) (1,523) Amortization of net losses - defined benefit pension plan 2 158 158 Net current period other comprehensive income (loss) 18,408 — (886) 17,522 Balance at December 31, 2020 $ 45,196 $ — $ (2,888) $ 42,308 1 Recorded in "Other" non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). 3 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)). |
Pension And Other Postretiremen
Pension And Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits Plans | PENSION AND POSTRETIREMENT BENEFIT PLANS Qualified Defined Benefit Multiemployer Plan: FHLBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified defined benefit pension plan. The Pentegra Defined Benefit Plan is treated as a multiemployer plan for accounting purposes but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra Defined Benefit Plan. Under the Pentegra Defined Benefit Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. In September 2019, FHLBank's board of directors elected to freeze the Pentegra Defined Benefit Plan on December 31, 2019, thereby discontinuing the future accrual of new benefits. Prior to the plan freeze, employees of FHLBank who began employment prior to January 1, 2009 were eligible to participate. The Pentegra Defined Benefit Plan operates on a fiscal year from July 1 through June 30 and files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 135645888 and the three-digit plan number is 333. There are no collective bargaining agreements in place at FHLBank. The Pentegra Defined Benefit Plan’s annual valuation process includes calculating the plan’s funded status and separately calculating the funded status of each participating employer. The funded status is defined as the market value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Defined Benefit Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the market value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30. The most recent Form 5500 available for the Pentegra Defined Benefit Plan is for the year ended June 30, 2019. For the Pentegra Defined Benefit Plan years ended June 30, 2019 and 2018, FHLBank’s contributions did not represent more than five percent of the total contributions to the Pentegra Defined Benefit Plan. Table 14.1 presents the net pension cost and funded status of FHLBank relating to the Pentegra Defined Benefit Plan (dollar amounts in thousands): Table 14.1 2020 2019 2018 Net pension cost charged to compensation and benefits expense, excluding fees $ 840 $ 672 $ 3,500 Pentegra Defined Benefit Plan funded status as of July 1 1 108.2 % 108.6 % 111.0 % FHLBank's funded status as of July 1 99.9 104.6 111.1 1 The funded status as of July 1, 2020 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2020 through March 15, 2021. Contributions made on or before March 15, 2021, and designated for the plan year ended June 30, 2020, will be included in the final valuation as of July 1, 2020. The final funded status as of July 1, 2020 will not be available until the Form 5500 for the plan year July 1, 2020 through June 30, 2021 is filed (this Form 5500 is due to be filed no later than April 2022). The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020. Contributions made on or before March 15, 2020, and designated for the plan year ended June 30, 2019, will be included in the final valuation as of July 1, 2019. The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021). Qualified Defined Contribution Plans: FHLBank also administers the Federal Home Loan Bank of Topeka 401(k) Plan, a tax-qualified, defined contribution pension plan. Substantially all officers and employees of FHLBank are covered by the plan. FHLBank contributes a non-matching contribution on behalf of all eligible employees in addition to a matching amount equal to a percentage of voluntary employee contributions, subject to certain limitations. Prior to January 1, 2020, FHLBank participated in the Pentegra Defined Contribution Plan for Financial Institutions. FHLBank’s contributions totaled $2,329,000, $1,513,000 and $1,474,000 for 2020, 2019, and 2018, respectively, and were charged to compensation and benefits expense. Nonqualified Supplemental Retirement Plan: FHLBank maintains a benefit equalization plan (BEP) covering certain senior officers and members of the board of directors. This non-qualified plan contains provisions for a deferred compensation component and a defined benefit pension component. In September 2019, the FHLBank's board of directors elected to freeze the defined benefit component of the BEP on December 31, 2019, thereby discontinuing the future accrual of new benefits. There are no funded plan assets that have been designated to provide for the deferred compensation component or defined benefit pension component of the BEP. The obligations of the deferred compensation component of the BEP were $7,048,000 and $6,065,000 as of December 31, 2020 and 2019, respectively. The obligations and funding status of the defined benefit portion of FHLBank’s BEP as of December 31, 2020 and 2019 are presented in Table 14.2 (in thousands): Table 14.2 2020 2019 Change in benefit obligation: Projected benefit obligation at beginning of year $ 13,372 $ 14,519 Service cost — 236 Interest cost 389 566 Net (gains) losses 1,177 1,806 Benefits paid (910) (910) Curtailment — (2,845) Settlements (617) — Projected benefit obligation at end of year 13,411 13,372 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions 1,527 910 Benefits paid (910) (910) Settlements (617) — Fair value of plan assets at end of year — — FUNDED STATUS $ (13,411) $ (13,372) Table 14.3 presents the components of the net periodic pension cost for the defined benefit portion of FHLBank’s BEP for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 14.3 2020 2019 2018 Service cost $ — $ 236 $ 222 Interest cost 389 566 506 Amortization of net losses 158 334 399 Settlement charges 133 — — NET PERIODIC POSTRETIREMENT BENEFIT COST $ 680 $ 1,136 $ 1,127 The measurement date used to determine the current year’s benefit obligation was December 31, 2020. Table 14.4 presents the key assumptions and other information for the actuarial calculations for the defined benefit portion of FHLBank’s BEP for the years ended December 31, 2020, 2019, and 2018 (dollar amounts in thousands): Table 14.4 2020 2019 2018 Discount rate - benefit obligation 2.25 % 3.00 % 4.00 % Discount rate - net periodic benefit cost 3.00 % 4.00 % 3.50 % Salary increases - benefit obligation — % — % 4.89 % Amortization period (years) - net periodic benefit cost 5.53 6.08 6.26 Accumulated benefit obligation $ 13,411 $ 13,372 $ 11,105 FHLBank estimates that its required contributions to the defined benefit portion of FHLBank’s BEP for the year ended December 31, 2021 will be $1,289,000. The FHLBank’s estimated future benefit payments are presented in Table 14.5 (in thousands): Table 14.5 Year ending December 31, Estimated Benefit Payments 2021 $ 1,289 2022 1,284 2023 1,303 2024 486 2025 504 2026 through 2030 2,808 |
Fair Values
Fair Values | 12 Months Ended |
Dec. 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 December 31, 2020 and 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 years ended December 31, 2020 and 2019. Tables 15.1 and 15.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of December 31, 2020 and 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 15.3 and 15.4. The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of December 31, 2020 and 2019 are summarized in Tables 15.1 and 15.2 (in thousands): Table 15.1 12/31/2020 Carrying Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 4,570,415 $ 4,570,415 $ 4,570,415 $ — $ — $ — Interest-bearing deposits 760,297 760,297 — 760,297 — — Securities purchased under agreements to resell 2,600,000 2,600,000 — 2,600,000 — — Federal funds sold 1,780,000 1,780,000 — 1,780,000 — — Trading securities 2,623,376 2,623,376 — 2,623,376 — — Available-for-sale securities 6,741,310 6,741,310 — 6,741,310 — — Held-to-maturity securities 2,746,992 2,750,116 — 2,674,446 75,670 — Advances 21,226,823 21,360,450 — 21,360,450 — — Mortgage loans held for portfolio, net of allowance 9,205,207 9,454,112 — 9,441,474 12,638 — Accrued interest receivable 97,718 97,718 — 97,718 — — Derivative assets 148,868 148,868 — 19,329 — 129,539 Liabilities: Deposits 1,229,361 1,229,361 — 1,229,361 — — Consolidated obligation discount notes 10,882,417 10,882,601 — 10,882,601 — — Consolidated obligation bonds 37,648,077 37,835,135 — 37,835,135 — — Mandatorily redeemable capital stock 1,624 1,624 1,624 — — — Accrued interest payable 45,575 45,575 — 45,575 — — Derivative liabilities 4,404 4,404 — 329,645 — (325,241) Other Asset (Liability): Industrial revenue bonds 35,000 37,978 — 37,978 — — Financing obligation payable (35,000) (37,978) — (37,978) — — 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 15.2 12/31/2019 Carrying Total 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 Methodologies and Techniques and Significant Inputs: The valuation methodologies and primary inputs used to develop the measurement of fair value for assets and liabilities that are measured at fair value on a recurring or nonrecurring basis in the Statements of Condition are listed below. The fair values and level within the fair value hierarchy of these assets and liabilities are reported in Tables 15.3 and 15.4. Investment Securities: For long-term (as determined by original issuance date) investment securities, FHLBank obtains prices from multiple designated third-party pricing vendors when available. The pricing vendors use various proprietary models to price investments. The inputs to those models are derived from various sources including, but not limited to, benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers and other market‑related data. Since many MBS are not traded daily, the pricing vendors use available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all valuations, which facilitates resolution of potentially erroneous prices identified by FHLBank. The use of multiple pricing vendors provides FHLBank with additional data points regarding levels of inputs and final prices that are used to validate final pricing of investment securities. The utilization of the average of available vendor prices within a cluster tolerance and the evaluation of reasonableness of outlier prices described below does not discard available information. Annually, FHLBank conducts reviews of the multiple pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies and control procedures. The FHLBank’s review process includes obtaining available vendors’ independent auditors’ reports regarding the internal controls over their valuation process, although the availability of pertinent reports varies by vendor. FHLBank utilizes a valuation technique for estimating the fair values of long-term investment securities as follows: ▪ FHLBank’s valuation technique first requires the establishment of a median price for each security. If three prices are received, the middle price is used; if two prices are received, the average of the two prices is used; and if one price is received, it is used subject to validation. ▪ All prices that are within a specified tolerance threshold of the median price are included in the cluster of prices that are averaged to compute a default price. ▪ Prices that are outside the threshold (outliers) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non‑binding dealer estimates) to determine if an outlier is a better estimate of fair value. ▪ If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. ▪ If, on the other hand, the analysis confirms that an outlier (or outliers) is (are) in fact not representative of fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security. ▪ If all prices received for a security are outside the tolerance threshold level of the median price, then there is no default price, and the final price is determined by an evaluation of all outlier prices as described above. As of December 31, 2020, multiple prices were received for substantially all of FHLBank’s long-term investment securities so the final prices for those securities were computed by averaging the prices received. Based on FHLBank’s reviews of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices, FHLBank has concluded that its final prices result in reasonable estimates of fair value and that the fair value measurements are classified appropriately in the fair value hierarchy. Impaired Mortgage Loans Held for Portfolio and Real Estate Owned: The estimated fair values of impaired mortgage loans held for portfolio and REO on a nonrecurring basis are generally based on broker prices or property values obtained from a third-party pricing vendor. All estimated fair values of impaired mortgage loans held for portfolio and REO are net of any estimated selling costs. Derivative Assets/Liabilities: FHLBank bases the fair values of derivatives on instruments with similar terms or market prices, when available. However, active markets do not exist for many of FHLBank’s derivatives. Consequently, fair values for these instruments are generally estimated using standard valuation techniques such as discounted cash flow analysis and comparisons to similar instruments. FHLBank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions. For uncleared derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. In addition, FHLBank requires collateral agreements with collateral delivery thresholds on all of its uncleared derivatives. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the value of cleared derivatives. FHLBank has evaluated the potential for the fair value of the instruments to be impacted by counterparty credit risk and its own credit risk and has determined that no adjustments were significant or necessary to the overall fair value measurements of derivatives. The fair values of FHLBank’s derivative assets and liabilities include accrued interest receivable/payable and cash collateral. The estimated fair values of the accrued interest receivable/payable and cash collateral approximate their carrying values due to their short-term nature. Derivatives are presented on a net basis by clearing agent by Clearinghouse or by counterparty when it has met the netting requirements. If these netted amounts are positive, they are classified as an asset and, if negative, a liability. The discounted cash flow model uses market-observable inputs. Inputs by class of derivative are as follows: ▪ Interest-rate related: • Discount rate assumption - Federal Funds Overnight Index Swap (OIS) or SOFR swap curve depending on the terms of the derivative: • Forward interest rate assumption for rate resets - swap curve of index rate of the instrument (e.g., LIBOR, SOFR or Fed Funds Effective Rate); • Volatility assumptions - market-based expectations of future interest rate volatility implied from current market prices for similar options; and • Prepayment assumptions, if applicable. ▪ Mortgage delivery commitments: • To be announced (TBA) price - market-based prices of TBAs by coupon class and expected term until settlement. Fair Value Measurements: Tables 15.3 and 15.4 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 December 31, 2020 and 2019 (in thousands). Table 15.3 12/31/2020 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,298,518 $ — $ 1,298,518 $ — $ — GSE debentures 431,875 — 431,875 — — GSE MBS 892,983 — 892,983 — — Total trading securities 2,623,376 — 2,623,376 — — Available-for-sale securities: U.S. Treasury obligations 3,546,325 — 3,546,325 — — GSE MBS 3,194,985 — 3,194,985 — — Total available-for-sale securities 6,741,310 — 6,741,310 — — Derivative assets: Interest-rate related 148,214 — 18,675 — 129,539 Mortgage delivery commitments 654 — 654 — — Total derivative assets 148,868 — 19,329 — 129,539 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 9,513,554 $ — $ 9,384,015 $ — $ 129,539 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 4,400 $ — $ 329,641 $ — $ (325,241) Mortgage delivery commitments 4 — 4 — — Total derivative liabilities 4,404 — 329,645 — (325,241) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 4,404 $ — $ 329,645 $ — $ (325,241) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 12,668 $ — $ — $ 12,668 $ — Real estate owned 405 — — 405 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 13,073 $ — $ — $ 13,073 $ — 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, including 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, 2020 and still outstanding as of December 31, 2020. Table 15.4 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 debentures 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, including 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 | 12 Months Ended |
Dec. 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 $698,296,045,000 and $966,413,924,000 as of December 31, 2020 and 2019, respectively. Off-balance Sheet Commitments: As of December 31, 2020 and 2019, off-balance sheet commitments are presented in Table 16.1 (in thousands): Table 16.1 12/31/2020 12/31/2019 Notional Amount Expire Expire Total Expire Expire Total Standby letters of credit outstanding $ 5,436,165 $ 4,251 $ 5,440,416 $ 4,764,724 $ 4,335 $ 4,769,059 Advance commitments outstanding 19,693 21,001 40,694 64,282 15,693 79,975 Principal commitments for standby bond purchase agreements 380,615 317,710 698,325 — 655,065 655,065 Commitments to fund or purchase mortgage loans 133,456 — 133,456 221,800 — 221,800 Commitments to issue consolidated bonds, at par 4,000 — 4,000 — — — 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 $1,554,000 and $1,470,000 as of December 31, 2020 and 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 and typically allows FHLBank to terminate the agreement upon the occurrence of a default event of the issuer. The bond purchase commitments entered into by FHLBank expire no later than 2023, though some are renewable at the option of FHLBank. As of December 31, 2020 and 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 year ended December 31, 2020. These bonds were classified as available-for-sale securities, and were acquired at par and sold at par within the same month. FHLBank was not required to purchase any bonds under any agreements during the year ended December 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 $650,000 and $470,000 as of December 31, 2020 and 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. Other Commitments: On June 28, 2017, FHLBank completed an industrial revenue bond financing transaction with Shawnee County, Kansas (County) that will provide property tax savings for 10 years on FHLBank's new headquarters. In the transaction, the County acquired an interest in the land, improvements, building and equipment (collectively, the Project) by issuing up to $36,000,000 of industrial revenue bonds due December 31, 2027 (IRBs) and leased the Project to FHLBank for an identical 127-month term under a financing lease. The IRBs are collateralized by the Project and the lease revenues for the related leasing transaction with the County. The IRBs were purchased by FHLBank. The County assigned the lease to the bond trustee for FHLBank's benefit as the sole holder of the IRBs. FHLBank can prepay the IRBs at any time, but would forfeit its property tax benefit in the event the IRBs were to be prepaid. As a result, the land and building will remain a component of the property, plant and equipment in FHLBank's Statements of Condition. The IRBs and the equivalent liability are included in FHLBank's Statements of Condition in other assets and other liabilities, respectively. FHLBank, as holder of the IRBs, is due interest at 2.0 percent per annum with interest payable annually in arrears on December 1, beginning December 1, 2018. This interest income is directly offset by the financing interest expense payments on the land and building, which are due at the same time and in the same amount as the interest income. As of December 31, 2020 and 2019, $35,000,000 of the IRBs were issued and outstanding. Safekeeping Custodial Arrangements: FHLBank acts as a securities safekeeping custodian on behalf of participating members. Actual securities are held by a third-party custodian acting as agent for FHLBank. As of December 31, 2020, the total original par value of customer securities held by FHLBank under this arrangement was $57,778,393,000. Other commitments and contingencies are discussed in Notes 1, 5, 6, 7, 9, 10, 12 and 14. |
Transactions With Stockholders
Transactions With Stockholders | 12 Months Ended |
Dec. 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 Regulatory Capital Stock: Tables 17.1 and 17.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2020 and 2019 (dollar amounts in thousands). None of the officers or directors of these members currently serve on FHLBank’s board of directors. Table 17.1 12/31/2020 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 $ 825 0.2 % $ 339,524 29.2 % $ 340,349 21.6 % TOTAL $ 825 0.2 % $ 339,524 29.2 % $ 340,349 21.6 % Table 17.2 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 December 31, 2020 and 2019 are summarized in Table 17.3 (dollar amounts in thousands). Information is only listed for the period in which the member owned more than 10 percent of outstanding FHLBank regulatory capital stock. Table 17.3 12/31/2020 12/31/2019 12/31/2020 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 $ 7,460,000 35.6 % $ 8,585,000 28.5 % $ 713 0.1 % $ 1,030 0.1 % BOKF, N.A. 4,500,000 14.9 22,457 2.9 TOTAL $ 7,460,000 35.6 % $ 13,085,000 43.4 % $ 713 0.1 % $ 23,487 3.0 % MidFirst Bank did not sell any mortgage loans into the MPF Program during the years ended December 31, 2020 and 2019. BOKF, N.A. sold $6,748,000 of mortgage loans into the MPF Program during the year ended December 31, 2019. Transactions with FHLBank Directors’ Financial Institutions: Table 17.4 presents information as of December 31, 2020 and 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 17.4 12/31/2020 12/31/2019 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 161,021 0.8 % $ 178,945 0.6 % Deposits $ 25,459 2.1 % $ 15,748 2.0 % Class A Common Stock $ 10,298 2.5 % $ 6,467 1.4 % Class B Common Stock 21,200 1.8 5,571 0.4 TOTAL CAPITAL STOCK $ 31,498 2.0 % $ 12,038 0.7 % Table 17.5 presents mortgage loans acquired during the years ended December 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 17.5 2020 2019 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 102,519 3.8 % $ 189,724 4.9 % |
Transactions With Other FHLBank
Transactions With Other FHLBanks | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Other Fhlbanks | TRANSACTIONS WITH OTHER FHLBANKS FHLBank Topeka had the following business transactions with other FHLBanks during the years ended December 31, 2020, 2019, and 2018 as presented in Table 18.1 (in thousands). All transactions occurred at market prices. Table 18.1 Business Activity 2020 2019 2018 Average overnight interbank loan balances to other FHLBanks 1 $ 2,883 $ 2,529 $ 1,466 Average overnight interbank loan balances from other FHLBanks 1 6,831 8,082 3,562 Average deposit balances with FHLBank of Chicago for interbank transactions 2 6,981 1,361 1,256 Transaction charges paid to FHLBank of Chicago for transaction service fees 3 7,819 6,938 5,687 Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks 4 — — — _________ 1 Occasionally, FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. 2 Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. 3 Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination in addition to a flat fee for participating in the MPF Program. 4 Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $113,328,000 and $111,173,000 as of December 31, 2020 and 2019, respectively, are included in the non-MBS GSE debentures totals presented in Note 4. Interest income earned on these securities totaled $3,429,000 for each of the years ended December 31, 2020, 2019, and 2018, respectively. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation: The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). |
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. |
Fair Value Measurement, Policy | Fair Values: The fair value amounts, recorded on the Statements of Condition and presented in the note disclosures for the periods presented, have been determined by FHLBank using available market and other pertinent information and reflect FHLBank’s best judgment of appropriate valuation methods. Although FHLBank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. See Note 15 for more information. |
Derivatives, Offsetting Fair Value Amounts, Policy | Financial Instruments Meeting Netting Requirements: FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis when it has a legal right of offset and all other requirements for netting are met (collectively referred to as 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, when it has met the netting requirements. The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested and the time when this collateral is received or pledged. Likewise, there may be a delay for excess collateral to be returned. For derivative instruments that meet the netting requirements, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset. See Notes 7 and 11 for additional information. 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, including 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. |
Credit Loss, Financial Instrument, Policy | Adoption of Measurement of Credit Losses on Financial Instruments Accounting Guidance: Beginning January 1, 2020, FHLBank adopted, on a modified retrospective basis, new accounting guidance pertaining to the measurement of credit losses on financial instruments (commonly referred to as Current Expected Credit Losses or CECL accounting guidance) 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. Consistent with the modified retrospective method of adoption, FHLBank recorded an immaterial cumulative adjustment to the opening balance of retained earnings as of January 1, 2020, and the prior periods were not revised to conform to the new basis of accounting. Key changes to the accounting policies are detailed within this note. Off-Balance Sheet Credit Exposures: Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. 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. Prior to January 1, 2020, FHLBank recorded an allowance for credit losses on off-balance sheet credit exposures if it was probable an impairment occurred as of the Statement of Condition date and the amount of loss could be reasonably estimated. 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 an NRSRO. These may differ from internal ratings of the investments, if applicable. As of December 31, 2020, approximately 51 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions. Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of December 31, 2020 and 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 December 31, 2020 and 2019. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $80,000 and $3,000, respectively, as of December 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 its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of December 31, 2020 and 2019. The carrying value of securities purchased under agreements excludes accrued interest receivable of $6,000 and $424,000 as of December 31, 2020 and 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 1 for additional information. During the year ended December 31, 2020, FHLBank did not 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 December 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 U.S. obligations, GSE debentures, 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 December 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 December 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, and 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 December 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 December 31, 2020, FHLBank had not 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. obligations or GSE debentures, 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. During the second quarter of 2020, FHLBank was given the regulatory flexibility via a Supervisory Letter from the FHFA to allow members to pledge Small Business Administration (SBA) Paycheck Protection Program (PPP) loans as eligible collateral, with the following restrictions: (1) maximum aggregate lending value for PPP loans is limited to the lesser of $5 billion or 20 percent of the institution’s total lending value on all collateral pledged; and (2) the institution must maintain a CAMELS composite rating of “3” or better. CAMELS is a rating system for banks utilized by federal banking supervisors that represents an evaluation of a bank's financial condition and compliance with laws and regulatory policies. If an institution’s CAMELS composite rating downgrades to “4” or “5,” the institution must substitute all PPP loans being utilized to support outstanding credit obligations with other eligible collateral within five business days. As of December 31, 2020, the amount of PPP loans pledged to FHLBank as collateral was insignificant. 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 UPB 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. The FHFA provided non-objection relief via a Supervisory Letter that permits FHLBank to offer its members increased collateral flexibility through the acceptance of various types of forbearance plans and loan modification agreements of the Temporary COVID-19 Underwriting Guidelines in the first quarter of 2020. FHLBank management and the board of directors has approved as collateral forbearance plans and loan modification agreements for the following loan categories: conventional mortgages on one-to-four family residential real property, mortgages on multifamily residential real property, agricultural real estate, commercial real estate, second mortgages on residential one-to-four family property, home equity lines of credit, operating loans, and equipment loans. In addition, the temporary guidelines allow flexibility to accept loans as collateral that have modifications or forbearance plans executed via electronic signature in compliance with the Electronic Signatures in Global and National Commerce Act (i.e., E-SIGN). As of December 31, 2020, the Temporary COVID-19 Underwriting Guidelines continue to be available for use by members. 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 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 December 31, 2020 and 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 December 31, 2020 and 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 years ended December 31, 2020 and 2019. Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no allowance for credit losses on advances was recorded as of December 31, 2020 and 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. |
Cash and Cash Equivalents, Policy | Cash Flows: For purposes of the Statements of Cash Flows, FHLBank considers cash on hand and non-interest-bearing deposits in banks as cash and cash equivalents. |
Investment, Policy | 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. FHLBank treats securities purchased under agreements to resell as short-term collateralized loans. Federal funds sold consist of short-term unsecured loans generally transacted with counterparties that are considered by FHLBank to be of investment quality. Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold provide short-term liquidity and are carried at cost. Accrued interest receivable is recorded separately on the Statements of Condition. If applicable, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. Interest-bearing deposits and Federal funds sold are evaluated quarterly for credit losses. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. FHLBank uses the collateral maintenance provision practical expedient, which allows expected credit losses to be measured based on the difference between the fair value of the collateral and the investment's amortized cost, 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. Prior to January 1, 2020, securities purchased under agreements to resell were evaluated for credit losses if there was a collateral shortfall which FHLBank did not believe the counterparty would replenish in accordance with its contractual terms. Investment Securities: FHLBank classifies investments as trading, available-for-sale and held-to-maturity at the date of acquisition. Purchases and sales of securities are recorded on a trade date basis. Trading: Securities classified as trading are either: (1) held for liquidity purposes; (2) economically swapped and classified as trading to provide a fair value offset to the gains (losses) on the interest rate swaps tied to the securities; or (3) acquired as asset/liability management tools and carried at fair value. FHLBank records changes in the fair value of these securities through other income (loss) as net gains (losses) on trading securities. FHLBank’s Risk Management Policy (RMP) prohibits active trading of these securities with the intent of realizing gains. FHFA regulation limits credit risk arising from these instruments by prohibiting certain instruments identified as not investment quality. While FHLBank classifies certain securities as trading for financial reporting purposes, it does not actively trade any of these securities and holds these investments indefinitely as management periodically evaluates its asset/liability and liquidity needs. Short-term money market investments with maturities of three months or less are acquired and classified as trading securities primarily for liquidity purposes. These short-term money market investments are periodically sold to meet FHLBank’s cash flow needs. FHLBank might also sell mortgage-backed securities (MBS) held in its trading portfolio to reduce its London Interbank Offered Rate (LIBOR) exposure. Available-for-Sale: Securities that are not classified as trading or held-to-maturity are classified as available-for-sale and are carried at fair value. The change in fair value of available-for-sale securities is recorded in other comprehensive income (loss) (OCI). Accrued interest receivable is recorded separately on the Statements of Condition. Beginning January 1, 2019, FHLBank adopted new hedge accounting guidance, which, among other things, impacted the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges, including fair value hedges of available-for-sale securities. For available-for-sale securities in hedge relationships that qualify as fair value hedges, FHLBank records the portion of the change in the fair value of the investment related to the risk being hedged in available-for-sale interest income together with the related change in the fair value of the derivative, and records the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Prior to January 1, 2019, for available-for-sale securities in hedge relationships that qualified as fair value hedges, FHLBank recorded the portion of the change in the fair value of the investment related to the risk being hedged in non-interest income as net gains (losses) on derivatives and hedging activities together with the related change in the fair value of the derivative, and recorded the remainder of the change in the fair value of the investment in OCI as net unrealized gains (losses) on available-for-sale securities. Additionally, beginning January 1, 2020, FHLBank adopted CECL accounting guidance. 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. 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 investment 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 as net unrealized gains (losses) on available-for-sale securities in 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, which is original cost adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Accrued interest receivable is recorded separately on the Statements of Condition. Certain changes in circumstances may cause FHLBank to change its intent to hold a security to maturity without calling into question its intent to hold other debt securities to maturity in the future, including: (1) evidence of a significant deterioration in the issuer’s creditworthiness; (2) a change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of investments, thereby causing FHLBank to dispose of a held-to-maturity investment; (3) a significant increase by a regulator in FHLBank’s capital requirements that causes FHLBank to downsize by selling held-to-maturity investments; or (4) a significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. FHLBank considers the following situations to be a maturity for purposes of assessing ability and intent to hold to maturity: ▪ The sale of the security is near enough to maturity (for example, within three months of maturity), or call date if exercise of the call is probable that interest rate risk is substantially eliminated as a pricing factor and the changes in market interest rates would not have a significant effect on the security’s fair value; or ▪ The sale of a security occurs after FHLBank has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition either due to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. 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. Premiums and Discounts: FHLBank computes the amortization of purchased premiums and accretion of purchased discounts on MBS using the level-yield method over the estimated cash flows of the securities. This method requires a retrospective adjustment of the effective yield each time FHLBank receives a principal repayment or changes the estimated remaining cash flows as if the actual principal repayments and new estimated cash flows had been known since the original acquisition dates of the securities. FHLBank computes the amortization of premiums and accretion of discounts on other investments using the level-yield method to the contractual maturities of the securities. Gains and Losses on Sales: Gains and losses on the sales of investment securities are computed using the specific identification method and are included in other income (loss). |
Federal Home Loan Bank Advances, Policy | Advances: FHLBank records advances (secured loans to members, former members or housing associates) at amortized cost, which is net of premiums, discounts, unearned commitment fees, and fair value basis adjustments. FHLBank amortizes the premiums and accretes the discounts on advances to interest income using the level-yield method. FHLBank records interest on advances to interest income as earned. Accrued interest receivable is recorded separately on the Statements of Condition. If deemed necessary, an allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. Advances are evaluated quarterly for expected credit losses. Prior to January 1, 2020, FHLBank evaluated advances to determine if an allowance for credit losses was necessary if it was probable an impairment occurred in FHLBank's advance portfolio as of the Statement of Condition date and the amount of loss could be reasonably estimated. Advance Modifications: In cases in which FHLBank funds a new advance concurrently with or within a short period of time before or after the prepayment of an existing advance, FHLBank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. FHLBank compares the present value of cash flows on the new advance to the present value of cash flows remaining on the existing advance. If there is at least a 10 percent difference in the cash flows or if FHLBank concludes the differences between the advances are more than minor based on qualitative factors, the advance is accounted for as a new advance. In all other instances, the new advance is accounted for as a modification. Prepayment Fees: FHLBank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity. FHLBank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as advance interest income in the Statements of Income. If a new advance does not qualify as a modification of an existing advance, the existing advance is treated as an advance termination and any prepayment fee, net of hedging adjustments, is recorded to advance interest income in the Statements of Income. If a new advance qualifies as a modification of an existing advance, any prepayment fee, net of hedging adjustments, is deferred, recorded in the basis of the modified advance, and amortized using a level-yield methodology over the life of the modified advance to advance interest income. If the modified advance is hedged and meets hedge accounting requirements, the modified advance is marked to benchmark or full fair value, depending on the risk being hedged, and subsequent fair value changes that are attributable to the hedged risk are recorded in advance interest income effective January 1, 2019. Prior to January 1, 2019, subsequent fair value changes were recorded in non-interest income as net gains (losses) on derivatives and hedging activities. |
Finance, Loan and Lease Receivables, Held-for-investment, Policy | Mortgage Loans Held for Portfolio: FHLBank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. These mortgage loans are recorded at amortized cost, which is the principal amount outstanding, net of unamortized premiums, unaccreted discounts, deferred loan fees, hedging adjustments, charge-offs, and other fees. Accrued interest receivable is recorded separately on the Statements of Condition. An allowance for credit losses is recorded with a corresponding adjustment to the provision (reversal) for credit losses. FHLBank does not purchase mortgage loans with credit deterioration at the time of purchase. Beginning January 1, 2020, FHLBank adopted CECL accounting guidance. Quarterly, 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 expected loss over the estimated remaining life of a mortgage loan, which also considers how FHLBank’s credit enhancements mitigate credit losses. If a loan is purchased at a discount, the discount does not offset the allowance for credit losses. FHLBanks include estimates of expected recoveries within 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. Prior to January 1, 2020, FHLBank recorded an allowance for credit losses on mortgage loans if it was probable that FHLBank would be unable to collect all amounts due according to the contractual terms of the loan agreement as of the statement of condition date and the amount of loss could be reasonably estimated. Premiums and Discounts: FHLBank defers and amortizes/accretes mortgage loan origination fees (agent fees) and premiums and discounts paid to and received from participating financial institutions (PFI) as interest income using the level-yield method over the contractual lives of the loans. This method uses the cash flows required by the loan contracts, as adjusted for actual prepayments, to apply the interest method. The contractual method does not utilize estimates of future prepayments of principal. Credit Enhancement Fees: The credit enhancement obligation (CE obligation) is an obligation on the part of the PFI that ensures the retention of credit risk on loans it originates on behalf of or sells to FHLBank. The amount of the CE obligation is determined at the time of purchase so that any losses in excess of the CE obligation for each pool of mortgage loans purchased approximate those experienced by an investor in either a double-A or triple-B rated MBS. As a part of the methodology used to determine the amount of credit enhancement necessary, FHLBank analyzes the risk characteristics of each mortgage loan using a model licensed from a Nationally Recognized Statistical Rating Organization (NRSRO). FHLBank uses the model to evaluate loan data provided by the PFI as well as other relevant information. FHLBank pays the PFI a credit enhancement fee (CE fee) for managing this portion of the credit risk in the pool of loans. CE fees are paid monthly based on the remaining unpaid principal balance (UPB) of the loans in a master commitment, or a one-time upfront CE fee was paid at purchase. Upfront CE fees were based upon the present value of the monthly CE fee payments, with consideration for expected prepayments, and are amortized as interest income using the level-yield method over the contractual lives of the loans. The required CE obligation amount may vary depending on the various product alternatives selected by the PFI. CE fees are recorded as an offset to mortgage loan interest income. To the extent FHLBank experiences a loss in a master commitment, FHLBank may be able to recapture future performance-based CE fees paid to the PFIs to offset these losses. Other Fees: FHLBank may receive other non-origination fees, such as delivery commitment extension fees and pair-off fees as part of the mark-to-market on derivatives to which they are related or as part of the loan basis, as applicable. Delivery commitment extension fees are received when a PFI requires an extension of the delivery commitment period beyond the original stated expiration. These fees compensate FHLBank for lost interest as a result of late funding and represent the member purchasing a derivative from FHLBank. Pair-off fees are received from the PFI when the amount funded is more than or less than a specific percentage range of the delivery commitment amount. These fees compensate FHLBank for hedge costs associated with the under-delivery or over-delivery. To the extent that pair off fees relate to under-deliveries of loans, they are included in the mark-to-market of the related delivery commitment derivative. If they relate to over-deliveries, they represent purchase price adjustments to the related loans acquired and are recorded as a part of the carrying value of the loan. Non-accrual Loans: FHLBank places a conventional mortgage loan on non-accrual status if it is determined that either: (1) the collection of interest or principal is doubtful; or (2) interest or principal is past due for 90 days or more, except when the loan is well-secured (e.g., through credit enhancements) and in the process of collection. FHLBank does not place government-guaranteed or -insured mortgage loans on non-accrual status due to 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. For those mortgage loans placed on non-accrual status, accrued but uncollected interest is reversed against interest income. FHLBank records cash payments received on non-accrual loans first as interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. If the collection of the remaining principal amount due is considered doubtful then cash payments received would be applied first solely to principal until the remaining principal amount due is expected to be collected and then as a recovery of any charge-off, if applicable, followed by recording interest income. A loan on non-accrual status may be restored to accrual status when: (1) none of its contractual principal and interest is due and unpaid, and FHLBank expects repayment of the remaining contractual principal and interest; or (2) it otherwise becomes well secured and in the process of collection. Troubled Debt Restructuring: FHLBank considers a troubled debt restructuring (TDR) to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties and that concession would not have been considered otherwise. Loans that are discharged in Chapter 7 bankruptcy and have not been reaffirmed by the borrowers are also considered to be troubled debt restructurings, except in certain cases where supplemental mortgage insurance (SMI) policies are held or where all contractual amounts due are still expected to be collected as a result of certain credit enhancements or government guarantees. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. Section 4013 of the CARES Act provides optional, temporary relief from the accounting and reporting requirements for TDRs for certain loan modifications for which borrowers were adversely affected by COVID-19 (hereinafter referred to as COVID-related modifications) granted to borrowers that were not more than 30 days past due on payments as of December 31, 2019. Specifically, the CARES Act provides that a financial institution may elect to suspend: (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR, and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. TDR relief applies to COVID-related modifications made from March 1, 2020, until the earlier of December 31, 2020, or 60 days following the termination of the national emergency declared by the President of the United States on March 13, 2020. On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law, extending the applicable period to the earlier of January 1, 2022, or 60 days following the termination of the national emergency declared on March 13, 2020. In the second quarter of 2020, FHLBank elected to apply the TDR relief provided by the CARES Act. As such, all COVID-related modifications meeting the provisions of the CARES Act are excluded from TDR classification and accounting, and FHLBank considers these loans to have a current payment status as long as payments are being made in accordance with the new terms. Alternatively, COVID-related modifications that do not meet the provisions of the CARES Act continue to be assessed for TDR classification under FHLBank's' existing accounting policies. Additionally, FHLBank continues to apply its delinquency, non-accrual loans, and charge-off policies during the forbearance plan period. FHLBank estimates the allowance for credit losses for COVID-related modifications similar to other mortgage loans held for portfolio. Collateral-dependent Loans: A loan is considered collateral dependent if repayment is expected to be provided solely by sale of the underlying property; that is, there is no other available and reliable source of repayment. A loan that is considered collateral-dependent is measured for credit loss based on the fair value of the underlying property less estimated selling costs, with any shortfall recognized as an allowance for loan loss or charged off. Charge-off Policy: A charge-off is recorded if it is estimated that the amortized cost and any applicable accrued interest in a loan will not be recovered. FHLBank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include, but are not limited to, the occurrence of foreclosure or notification of a claim against any of the credit enhancements. FHLBank charges off the portion of outstanding conventional mortgage loan balances in excess of fair value of the underlying property, less estimated cost to sell, for loans that are 180 days or more delinquent and certain loans for which the borrower has filed for bankruptcy. |
Derivatives, Policy | Derivatives: All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, and accrued interest receivable from or pledged by clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with a derivative are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. FHLBank utilizes two Derivative Clearing Organizations (Clearinghouses) for all cleared derivative transactions, LCH Ltd and CME Clearing. At both Clearinghouses, variation margin is characterized as daily settlement payments and initial margin is considered cash collateral. Derivative Designations: Each derivative is designated as one of the following: ▪ a qualifying fair value hedge of the change in fair value of: (1) a recognized asset or liability, or (2) an unrecognized firm commitment; or ▪ a non-qualifying hedge of an asset or liability (an economic hedge) for asset/liability management purposes. Accounting for Qualifying Hedges: If hedging relationships meet certain criteria, including, but not limited to, formal documentation of the hedging relationship and an expectation to be highly effective, they qualify for hedge accounting. Two approaches to hedge accounting include: ▪ Long haul hedge accounting - The application of long haul hedge accounting requires FHLBank to assess (both at the hedge's inception and at least quarterly) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain highly effective in future periods; and ▪ Shortcut hedge accounting - Under the shortcut method of hedge accounting, the entire change in fair value of the interest rate swap is considered to be perfectly effective at achieving offsetting changes in the fair value of the hedged asset or liability if the interest rate swap transaction meets more stringent qualifying criteria. Thus, an assumption can be made that the change in fair value of a hedged item, due to changes in the hedged risk, exactly offsets the change in fair value of the related derivative. FHLBank has elected to document at hedge inception a quantitative method to assess hedge effectiveness for its shortcut hedging relationships for use in the event that the use of the shortcut method is no longer appropriate. Derivatives are typically executed at the same time as the hedged item, and FHLBank designates the hedged item in a qualifying hedge relationship at the trade date. In many hedging relationships, FHLBank may designate the hedging relationship upon its commitment to disburse an advance or trade a consolidated obligation in which settlement occurs within the shortest period of time possible for the type of instrument based on market settlement conventions. FHLBank defines market settlement conventions for advances and consolidated obligation discount notes to be five thirty Beginning January 1, 2019, FHLBank adopted new hedge accounting guidance, which, among other things, impacts the presentation of gains (losses) on derivatives and hedging activities for qualifying hedges. Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in net interest income in the same line as the earnings effect of the hedged item. Net gains (losses) on derivatives and hedging activities for qualifying hedges recorded in net interest income include unrealized and realized gains (losses), which include net interest settlements. Prior to January 1, 2019, fair value hedge ineffectiveness (which represented the amount by which the change in the fair value of the derivative differed from the change in the fair value of the hedged item) was recorded in non-interest income as net gains (losses) on derivatives and hedging activities. Accounting for Non-Qualifying Hedges: An economic hedge is defined as a derivative hedging underlying assets, liabilities or firm commitments that does not qualify for hedge accounting or where management did not elect hedge accounting treatment at inception but is an acceptable hedging strategy under FHLBank’s RMP. These economic hedging strategies also comply with FHFA regulatory requirements prohibiting speculative derivative transactions. An economic hedge introduces the potential for earnings variability caused by changes in fair value on the derivatives that are recorded in FHLBank’s income but not offset by corresponding changes in the fair value of the economically hedged assets, liabilities or firm commitments being recorded simultaneously in income. As a result, FHLBank recognizes only the net interest and the change in fair value of these derivatives in other income (loss) as net gains (losses) on derivatives and hedging activities with no offsetting fair value adjustments for the assets, liabilities or firm commitments. Accrued Interest Receivables and Payables: The net settlements of interest receivables and payables on derivatives designated as fair value hedges are recognized as adjustments to the interest income or expense of the designated underlying investment securities, advances, consolidated obligations or other financial instruments, thereby affecting the reported amount of net interest income on the Statements of Income. The net settlements of interest receivables and payables on economic hedges are recognized in other income (loss) as net gains (losses) on derivatives and hedging activities. Discontinuance of Hedge Accounting: FHLBank discontinues hedge accounting prospectively when: (1) it determines that the derivative is no longer effective in offsetting changes in the fair value of a hedged item attributable to the hedged risk (including hedged items such as firm commitments); (2) the derivative and/or the hedged item expires or is sold, terminated or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued because FHLBank determines that the derivative no longer qualifies as an effective fair value hedge of an existing hedged item, FHLBank continues to carry the derivative on its Statements of Condition at fair value, ceases to adjust the hedged asset or liability for changes in fair value, and begins amortizing the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. When hedge accounting is discontinued and the derivative remains outstanding, FHLBank carries the derivative at fair value on its Statements of Condition, recognizing changes in the fair value of the derivative in other income (loss) as net gains (losses) on derivatives and hedging activities. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, FHLBank continues to carry the derivative on its Statements of Condition at fair value, removing any asset or liability that was recorded to recognize the firm commitment and recording it as a gain or loss in current period earnings. Embedded Derivatives: FHLBank may issue debt, make advances, or purchase financial instruments in which a derivative instrument is embedded. Upon execution of these transactions, FHLBank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt or purchased financial instrument (the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When FHLBank determines that: (1) the embedded derivative has economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to an economic hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current period earnings (such as an investment security classified as trading), or if FHLBank cannot reliably identify and measure the embedded derivative for purposes of separating that derivative from its host contract, the entire contract is carried on the Statements of Condition at fair value and no portion of the contract is designated as a hedging instrument. |
Property, Plant and Equipment, Policy | Premises, Software and Equipment: Premises, software, and equipment are included in other assets on the Statements of Condition. FHLBank records premises, software, and equipment at cost less accumulated depreciation and amortization. Depreciation is computed on the straight-line method over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful life of the improvement or the remaining term of the lease. Improvements and major renewals are capitalized, and ordinary maintenance and repairs are expensed as incurred. The cost of purchased software and certain costs incurred in developing computer software for internal use are capitalized and amortized over future periods. Gains and losses on disposals are included in other income (loss) on the Statements of Income. |
Internal Use Software, Policy | The cost of purchased software and certain costs incurred in developing computer software for internal use are capitalized and amortized over future periods. |
Debt, Policy | Consolidated Obligations: Consolidated obligations are recorded at amortized cost, which represents the funded amount, adjusted for premiums, discounts, concessions, and fair value hedging adjustments. Discounts and Premiums: Consolidated obligation discounts are accreted and premiums are amortized to interest expense using the level-yield method over the contractual maturities of the corresponding debt. Concessions: Amounts paid to dealers in connection with sales of consolidated obligations are deferred and amortized using the level-yield method over the contractual terms of the consolidated obligations. Concession amounts are prorated to FHLBank by the Office of Finance based on the percentage of each consolidated obligation issued by the Office of Finance on behalf of FHLBank. FHLBank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The amortization of those concessions is included in consolidated obligation interest expense. |
Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy | Mandatorily Redeemable Capital Stock: FHLBank reclassifies all stock subject to redemption from capital to liability once a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status by merger or acquisition, charter termination or involuntary termination from membership, since the member shares will then meet the definition of a mandatorily redeemable financial instrument. There is no distinction as to treatment for reclassification from capital to liability between in-district redemption requests and those redemption requests triggered by out-of-district acquisitions. FHLBank does not take into consideration its members’ right to cancel a redemption request in determining when shares of capital stock should be classified as a liability because the cancellation would be subject to a substantial cancellation fee. Member and non-member shares of capital stock meeting the definition of mandatorily redeemable capital stock are reclassified to a liability at fair value, which has been determined to be par value plus any estimated accrued but unpaid dividends. FHLBank’s dividends are declared and paid at each quarter-end; therefore, the fair value reclassified equals par value. Dividends declared on a member's shares of capital stock for the time after classification as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repurchase of these mandatorily redeemable financial instruments by FHLBank are reflected as financing cash outflows in the Statements of Cash Flows once settled. If a member submits a written request to cancel a previously submitted written redemption request, the capital stock covered by the written cancellation request is reclassified from a liability to capital at fair value. After the reclassification, dividends on the capital stock are no longer classified as interest expense. |
New Accounting Pronouncements, Policy | Reference Rate Reform (Accounting Standards Update (ASU) 2021-01). In January 2021, the Financial Accounting Standards Board (FASB) issued an amendment that refines the scope of ASC 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. During the fourth quarter of 2020, FHLBank elected applicable optional expedients specific to discounting transition on a retrospective basis. As of a result of electing this expedient, discounting transition did not have a material effect on FHLBank's financial condition, results of operations, or cash flows. This guidance is effective immediately for FHLBank and was applied consistently with the optional expedient guidance under ASU 2020-04, described below. Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In March 2020, the CARES Act was signed into law to provide relief from the economic impact of the COVID-19 pandemic to a variety of sectors of the U.S. economy, including businesses, individuals, health care, education, and state and local governments. The CARES Act, as updated by the Consolidated Appropriations Act, 2021, also includes provisions that provide optional relief from certain accounting and reporting requirements related to troubled debt restructurings (TDRs). TDR relief applies to COVID-19-related modifications made from March 1, 2020 until the earlier of January 1, 2022 or 60 days following the termination of the national emergency declared by the President of the United States for borrowers that were current as of December 31, 2019. FHLBank has elected the optional relief but does not expect it to have a material effect on FHLBank's financial condition, results of operations, cash flows, or disclosures. Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) . In March 2020, the 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 the other optional expedients, and the 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 were effective for annual periods ending after December 15, 2020, which is the year ending December 31, 2020 for FHLBank, and were applied retrospectively for all comparative periods presented. The adoption of this guidance did not have a material impact on the disclosures related to defined benefit plans and did 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. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans, Nonperforming Loans Policy | 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. |
Derivatives, Methods of Accounting, Hedging Derivatives Policy | Application of Derivatives: At the inception of every hedge transaction, FHLBank documents all hedging relationships between derivatives designated as hedging instruments and the hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and/or liabilities on the Statements of Condition or firm commitments. |
Pension and Other Postretirement Plans, Policy | Qualified Defined Benefit Multiemployer Plan: FHLBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Defined Benefit Plan), a tax-qualified defined benefit pension plan. The Pentegra Defined Benefit Plan is treated as a multiemployer plan for accounting purposes but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra Defined Benefit Plan. Under the Pentegra Defined Benefit Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. In September 2019, FHLBank's board of directors elected to freeze the Pentegra Defined Benefit Plan on December 31, 2019, thereby discontinuing the future accrual of new benefits. Prior to the plan freeze, employees of FHLBank who began employment prior to January 1, 2009 were eligible to participate. The Pentegra Defined Benefit Plan operates on a fiscal year from July 1 through June 30 and files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 135645888 and the three-digit plan number is 333. There are no collective bargaining agreements in place at FHLBank. The Pentegra Defined Benefit Plan’s annual valuation process includes calculating the plan’s funded status and separately calculating the funded status of each participating employer. The funded status is defined as the market value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Defined Benefit Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the market value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30. |
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) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Holdings [Line Items] | |
Trading Securities by Major Security Type | Trading securities by major security type as of December 31, 2020 and 2019 are summarized in Table 4.1 (in thousands): Table 4.1 Fair Value 12/31/2020 12/31/2019 Non-mortgage-backed securities: U.S. Treasury obligations $ 1,298,518 $ 1,530,518 GSE debentures 431,875 416,025 Non-mortgage-backed securities 1,730,393 1,946,543 Mortgage-backed securities: GSE MBS 892,983 866,019 Mortgage-backed securities 892,983 866,019 TOTAL $ 2,623,376 $ 2,812,562 |
Net Gains (Losses) on Trading Securities | Net gains (losses) on trading securities during the years ended December 31, 2020, 2019, and 2018 are shown in Table 4.2 (in thousands): Table 4.2 2020 2019 2018 Net gains (losses) on trading securities held as of December 31, 2020 $ 80,034 $ 67,435 $ (19,186) Net gains (losses) on trading securities sold or matured prior to December 31, 2020 (1,892) 2,826 (2,724) NET GAINS (LOSSES) ON TRADING SECURITIES $ 78,142 $ 70,261 $ (21,910) |
Available-for-sale Securities by Major Security Type | Available-for-sale securities by major security type as of December 31, 2020 are summarized in Table 4.3 (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 $26,977,000 as of December 31, 2020. Table 4.3 12/31/2020 Amortized Gross Gross Fair Non-mortgage-backed securities: U.S. Treasury obligations $ 3,541,411 $ 4,931 $ (17) $ 3,546,325 Non-mortgage-backed securities 3,541,411 4,931 (17) 3,546,325 Mortgage-backed securities: GSE MBS 3,154,703 44,724 (4,442) 3,194,985 Mortgage-backed securities 3,154,703 44,724 (4,442) 3,194,985 TOTAL $ 6,696,114 $ 49,655 $ (4,459) $ 6,741,310 Available-for-sale securities by major security type as of December 31, 2019 are summarized in Table 4.4 (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 4.4 12/31/2019 Amortized Gross Gross Fair 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 4.5 summarizes the available-for-sale securities with unrealized losses as of December 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 4.5 12/31/2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities: U.S. Treasury obligations $ 250,436 $ (17) $ — $ — $ 250,436 $ (17) Non-mortgage-backed securities 250,436 (17) — — 250,436 (17) Mortgage-backed securities: GSE MBS $ — $ — $ 363,724 $ (4,442) $ 363,724 $ (4,442) Mortgage-backed securities — — 363,724 (4,442) 363,724 (4,442) TOTAL TEMPORARILY IMPAIRED SECURITIES $ 250,436 $ (17) $ 363,724 $ (4,442) $ 614,160 $ (4,459) Table 4.6 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 4.6 12/31/2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized 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 4.8 presents details of the sales for the year ended December 31, 2020 (in thousands). There were no sales of available-for-sale securities during the years ended December 31, 2019 and 2018. Table 4.8 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 December 31, 2020 are summarized in Table 4.9 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $930,000 as of December 31, 2020. Table 4.9 12/31/2020 Amortized Net Carrying Value Gross Gross Fair Non-mortgage-backed securities: State or local housing agency obligations $ 78,960 $ 78,960 $ — $ (3,290) $ 75,670 Non-mortgage-backed securities 78,960 78,960 — (3,290) 75,670 Mortgage-backed securities: U.S. obligation MBS 70,814 70,814 135 (59) 70,890 GSE MBS 2,597,218 2,597,218 10,208 (3,870) 2,603,556 Mortgage-backed securities 2,668,032 2,668,032 10,343 (3,929) 2,674,446 TOTAL $ 2,746,992 $ 2,746,992 $ 10,343 $ (7,219) $ 2,750,116 Held-to-maturity securities by major security type as of December 31, 2019 are summarized in Table 4.10 (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 4.10 12/31/2019 Amortized Carrying Value Gross Gross Fair 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 |
Proceeds from sale and Gains and Losses on Securities | Table 4.12 presents details of the sales (in thousands). There were no sales of held-to-maturity securities during the year ended December 31, 2020. Table 4.12 2019 2018 Proceeds from sale of held-to-maturity securities $ 9,442 $ 87,827 Carrying value of held-to-maturity securities sold (9,488) (86,236) NET REALIZED GAINS (LOSSES) $ (46) $ 1,591 |
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 December 31, 2020 and 2019 are shown in Table 4.7 (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 4.7 12/31/2020 12/31/2019 Amortized Fair Amortized Fair Non-mortgage-backed securities: Due in one year or less $ 1,767,608 $ 1,768,588 $ 754,003 $ 753,891 Due after one year through five years 1,773,803 1,777,737 3,504,605 3,507,900 Due after five years through ten years — — — — Due after ten years — — — — Non-mortgage-backed securities 3,541,411 3,546,325 4,258,608 4,261,791 Mortgage-backed securities 3,154,703 3,194,985 2,897,104 2,920,709 TOTAL $ 6,696,114 $ 6,741,310 $ 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 December 31, 2020 and 2019 are shown in Table 4.11 (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 4.11 12/31/2020 12/31/2019 Amortized Net Carrying Fair Amortized Carrying Fair Non-mortgage-backed securities: Due in one year or less $ — $ — $ — $ — $ — $ — Due after one year through five years — — — — — — Due after five years through ten years 48,960 48,960 47,280 — — — Due after ten years 30,000 30,000 28,390 82,805 82,805 80,854 Non-mortgage-backed securities 78,960 78,960 75,670 82,805 82,805 80,854 Mortgage-backed securities 2,668,032 2,668,032 2,674,446 3,487,153 3,487,153 3,476,084 TOTAL $ 2,746,992 $ 2,746,992 $ 2,750,116 $ 3,569,958 $ 3,569,958 $ 3,556,938 |
Advances (Tables)
Advances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Advances [Abstract] | |
Advances Table | Table 5.1 presents advances summarized by redemption term as of December 31, 2020 and 2019 (dollar amounts in thousands). Carrying amounts exclude accrued interest receivable of $15,588,000 and $45,637,000 as of December 31, 2020 and December 31, 2019, respectively. Table 5.1 12/31/2020 12/31/2019 Redemption Term Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 12,540,970 0.45 % $ 13,188,118 1.88 % Due after one year through two years 1,591,133 1.20 10,448,433 1.96 Due after two years through three years 1,268,307 1.73 1,254,153 2.27 Due after three years through four years 1,305,047 1.47 1,067,662 2.42 Due after four years through five years 1,033,221 1.40 1,208,854 2.22 Thereafter 3,233,763 1.90 3,004,835 2.25 Total par value 20,972,441 0.92 % 30,172,055 1.99 % Discounts (18,071) (1,807) Hedging adjustments 272,453 71,067 TOTAL $ 21,226,823 $ 30,241,315 Table 5.2 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 December 31, 2020 and 2019 (in thousands): Table 5.2 Redemption Term Redemption Term Redemption Term 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Due in one year or less $ 14,271,213 $ 24,271,238 $ 13,563,370 $ 14,053,068 Due after one year through two years 1,161,239 1,133,077 1,861,133 10,637,833 Due after two years through three years 981,503 728,429 1,489,057 1,524,153 Due after three years through four years 773,881 764,990 1,400,447 1,215,412 Due after four years through five years 796,495 686,594 1,008,871 1,304,254 Thereafter 2,988,110 2,587,727 1,649,563 1,437,335 TOTAL PAR VALUE $ 20,972,441 $ 30,172,055 $ 20,972,441 $ 30,172,055 Interest Rate Payment Terms : Table 5.3 details additional interest rate payment terms for advances as of December 31, 2020 and 2019 (in thousands): Table 5.3 Redemption Term 12/31/2020 12/31/2019 Fixed rate: Due in one year or less $ 9,838,379 $ 2,691,528 Due after one year 6,663,459 5,912,124 Total fixed rate 16,501,838 8,603,652 Variable rate: Due in one year or less 2,702,591 10,496,590 Due after one year 1,768,012 11,071,813 Total variable rate 4,470,603 21,568,403 TOTAL PAR VALUE $ 20,972,441 $ 30,172,055 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Mortgage Loans Held For Portfolio | Table 6.1 presents information as of December 31, 2020 and 2019 on mortgage loans held for portfolio (in thousands). Mortgage loans held for portfolio excludes accrued interest receivable of $44,101,000 and $52,358,000 as of December 31, 2020 and 2019, respectively. Table 6.1 12/31/2020 12/31/2019 Real estate: Fixed rate, medium-term 1 , single-family mortgages $ 1,419,725 $ 1,347,385 Fixed rate, long-term, single-family mortgages 7,666,912 9,128,268 Total unpaid principal balance 9,086,637 10,475,653 Premiums 128,231 155,793 Discounts (1,865) (2,503) Deferred loan costs, net 123 184 Other deferred fees (25) (38) Hedging adjustments (2,717) 4,905 Total before Allowance for Credit Losses on Mortgage Loans 9,210,384 10,633,994 Allowance for Credit Losses on Mortgage Loans 2 (5,177) (985) MORTGAGE LOANS HELD FOR PORTFOLIO, NET $ 9,205,207 $ 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 6.6). Table 6.2 presents information as of December 31, 2020 and 2019 on the outstanding UPB of mortgage loans held for portfolio (in thousands): Table 6.2 12/31/2020 12/31/2019 Conventional loans $ 8,563,349 $ 9,849,542 Government-guaranteed or -insured loans 523,288 626,111 TOTAL UNPAID PRINCIPAL BALANCE $ 9,086,637 $ 10,475,653 |
Schedule of Net Credit Enhancement Fees Paid To Participating Members | Table 6.3 presents net CE fees paid to PFIs for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 6.3 2020 2019 2018 CE fees paid to PFIs 1 $ 7,743 $ 7,019 $ 6,196 Performance-based CE fees recovered from PFIs (83) (125) (107) NET CE FEES PAID $ 7,660 $ 6,894 $ 6,089 |
Financing Receivable Credit Quality Indicators | Table 6.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2020 (dollar amounts in thousands): Table 6.4 12/31/2020 Conventional Loans Government Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 16,546 $ 3,932 $ 7,879 $ 6,695 $ 11,904 $ 3,712 $ 50,668 $ 10,485 $ 61,153 Past due 60-89 days delinquent 7,680 1,064 2,354 2,805 4,438 1,278 19,619 4,895 24,514 Past due 90 days or more delinquent 20,518 3,868 13,325 20,969 43,268 5,839 107,787 22,691 130,478 Total past due 44,744 8,864 23,558 30,469 59,610 10,829 178,074 38,071 216,145 Total current loans 1,942,655 632,604 677,871 665,791 2,303,031 2,279,995 8,501,947 492,292 8,994,239 Total mortgage loans $ 1,987,399 $ 641,468 $ 701,429 $ 696,260 $ 2,362,641 $ 2,290,824 $ 8,680,021 $ 530,363 $ 9,210,384 Other delinquency statistics: In process of foreclosure 2 $ 1,785 $ 1,563 $ 3,348 Serious delinquency rate 3 1.3 % 4.3 % 1.4 % Past due 90 days or more and still accruing interest $ — $ 22,691 $ 22,691 Loans on non-accrual status 4,5 $ 117,584 $ — $ 117,584 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 amortized cost for the portfolio class. 4 Loans on non-accrual status include $1,311,000 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 $69,192,000 of conventional mortgage loans on non-accrual status that did not have an associated allowance for credit losses. Table 6.5 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 6.5 12/31/2019 Conventional Government 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 6.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2020 (dollar amounts in thousands): Table 6.4 12/31/2020 Conventional Loans Government Total Origination Year Subtotal Prior to 2016 2016 2017 2018 2019 2020 Amortized Cost: 1 Past due 30-59 days delinquent $ 16,546 $ 3,932 $ 7,879 $ 6,695 $ 11,904 $ 3,712 $ 50,668 $ 10,485 $ 61,153 Past due 60-89 days delinquent 7,680 1,064 2,354 2,805 4,438 1,278 19,619 4,895 24,514 Past due 90 days or more delinquent 20,518 3,868 13,325 20,969 43,268 5,839 107,787 22,691 130,478 Total past due 44,744 8,864 23,558 30,469 59,610 10,829 178,074 38,071 216,145 Total current loans 1,942,655 632,604 677,871 665,791 2,303,031 2,279,995 8,501,947 492,292 8,994,239 Total mortgage loans $ 1,987,399 $ 641,468 $ 701,429 $ 696,260 $ 2,362,641 $ 2,290,824 $ 8,680,021 $ 530,363 $ 9,210,384 Other delinquency statistics: In process of foreclosure 2 $ 1,785 $ 1,563 $ 3,348 Serious delinquency rate 3 1.3 % 4.3 % 1.4 % Past due 90 days or more and still accruing interest $ — $ 22,691 $ 22,691 Loans on non-accrual status 4,5 $ 117,584 $ — $ 117,584 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 amortized cost for the portfolio class. 4 Loans on non-accrual status include $1,311,000 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 $69,192,000 of conventional mortgage loans on non-accrual status that did not have an associated allowance for credit losses. Table 6.5 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 6.5 12/31/2019 Conventional Government 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 6.6 presents a roll-forward of the allowance for credit losses on mortgage loans for the years ended December 31, 2020, 2019, and 2018. Table 6.6 Conventional Loans 2020 2019 2018 Balance, beginning of the period $ 985 $ 812 $ 1,208 Adjustment for cumulative effect of accounting change 6,123 — — Net (charge-offs) recoveries (1,215) (214) (423) Provision (reversal) for credit losses (716) 387 27 Balance, end of the period $ 5,177 $ 985 $ 812 |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value of Derivative Instruments | Table 7.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of December 31, 2020 and 2019 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral. Table 7.1 12/31/2020 12/31/2019 Notional Derivative Derivative Notional Derivative Derivative Derivatives designated as hedging instruments: Interest rate swaps $ 15,862,207 $ 18,427 $ 261,431 $ 16,448,512 $ 23,462 $ 80,398 Total derivatives designated as hedging relationships 15,862,207 18,427 261,431 16,448,512 23,462 80,398 Derivatives not designated as hedging instruments: Interest rate swaps 2,476,659 107 68,210 3,099,622 736 26,285 Interest rate caps/floors 602,500 141 — 1,130,000 117 — Mortgage delivery commitments 133,456 654 4 221,800 495 25 Total derivatives not designated as hedging instruments 3,212,615 902 68,214 4,451,422 1,348 26,310 TOTAL $ 19,074,822 19,329 329,645 $ 20,899,934 24,810 106,708 Netting adjustments and cash collateral 1 129,539 (325,241) 129,994 (106,506) DERIVATIVE ASSETS AND LIABILITIES $ 148,868 $ 4,404 $ 154,804 $ 202 1 Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 2019, respectively. |
Net Gains or Losses on Derivatives and Hedging Activities | For the years ended December 31, 2020, 2019, and 2018, 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 7.2 (in thousands): Table 7.2 2020 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 268,051 $ 54,311 $ 123,124 $ 363,896 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (253,469) $ (354,003) $ 18,345 $ 44,157 Hedged items 2 202,888 246,911 (118) (8,264) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (50,581) $ (107,092) $ 18,227 $ 35,893 2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 716,199 $ 116,866 $ 532,155 $ 689,275 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (96,772) $ (140,821) $ 75 $ 27,229 Hedged items 2 115,323 139,828 138 (32,904) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 18,551 $ (993) $ 213 $ (5,675) 2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 9,653 $ 474 $ 12 $ (5,178) $ 21,360 Hedged items 2 (3,881) — — — (27,650) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 5,772 $ 474 $ 12 $ (5,178) $ (6,290) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to hedge accounting guidance adopted January 1, 2019 (i.e., net gains (losses) are separated in this table consistent with the 2018 income statement presentation). Table 7.4 provides information regarding net gains (losses) on derivatives and hedging activities recorded in non-interest income (in thousands). Table 7.4 2020 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290) Total net gains (losses) related to fair value hedge ineffectiveness (6,290) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (78,633) $ (56,961) 10,114 Interest rate caps/floors 23 (927) 33 Net interest settlements (46,630) (3,974) (5,476) Mortgage delivery commitments (4,205) 4,309 (1,642) Consolidated obligation discount note commitments — (70) 70 Total net gains (losses) related to derivatives not designated as hedging instruments (129,445) (57,623) 3,099 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (129,445) $ (57,623) $ (3,191) |
Cumulative Basis Adjustments for Fair Value Hedges | Table 7.3 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of December 31, 2020 and 2019 (in thousands): Table 7.3 12/31/2020 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 $ 5,895,962 $ 261,304 $ 11,149 $ 272,453 Available-for-sale securities 6,696,114 320,063 — 320,063 Consolidated obligation discount notes (174,855) 33 — 33 Consolidated obligation bonds (3,791,848) (34,654) — (34,654) 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 7.4 provides information regarding net gains (losses) on derivatives and hedging activities recorded in non-interest income (in thousands). Table 7.4 2020 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290) Total net gains (losses) related to fair value hedge ineffectiveness (6,290) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (78,633) $ (56,961) 10,114 Interest rate caps/floors 23 (927) 33 Net interest settlements (46,630) (3,974) (5,476) Mortgage delivery commitments (4,205) 4,309 (1,642) Consolidated obligation discount note commitments — (70) 70 Total net gains (losses) related to derivatives not designated as hedging instruments (129,445) (57,623) 3,099 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (129,445) $ (57,623) $ (3,191) |
Derivative Instruments, Gain (Loss) [Table Text Block] | For the years ended December 31, 2020, 2019, and 2018, 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 7.2 (in thousands): Table 7.2 2020 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 268,051 $ 54,311 $ 123,124 $ 363,896 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (253,469) $ (354,003) $ 18,345 $ 44,157 Hedged items 2 202,888 246,911 (118) (8,264) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ (50,581) $ (107,092) $ 18,227 $ 35,893 2019 Interest Income/Expense Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Total amounts presented in the Statements of Income $ 716,199 $ 116,866 $ 532,155 $ 689,275 Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ (96,772) $ (140,821) $ 75 $ 27,229 Hedged items 2 115,323 139,828 138 (32,904) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 18,551 $ (993) $ 213 $ (5,675) 2018 3 Interest Income/Expense Non-interest Income Advances Available-for-sale Securities Consolidated Obligation Discount Notes Consolidated Obligation Bonds Net gains (losses) on derivatives and hedging activities Gains (losses) on fair value hedging relationships: Interest rate contracts: Derivatives 1 $ 9,653 $ 474 $ 12 $ (5,178) $ 21,360 Hedged items 2 (3,881) — — — (27,650) NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS $ 5,772 $ 474 $ 12 $ (5,178) $ (6,290) 1 Includes net interest settlements in interest income/expense. 2 Includes amortization/accretion on closed fair value relationships in interest income. 3 Prior period amounts were not conformed to hedge accounting guidance adopted January 1, 2019 (i.e., net gains (losses) are separated in this table consistent with the 2018 income statement presentation). Table 7.4 provides information regarding net gains (losses) on derivatives and hedging activities recorded in non-interest income (in thousands). Table 7.4 2020 2019 2018 Derivatives designated as hedging instruments: Interest rate swaps $ (6,290) Total net gains (losses) related to fair value hedge ineffectiveness (6,290) Derivatives not designated as hedging instruments: Economic hedges: Interest rate swaps $ (78,633) $ (56,961) 10,114 Interest rate caps/floors 23 (927) 33 Net interest settlements (46,630) (3,974) (5,476) Mortgage delivery commitments (4,205) 4,309 (1,642) Consolidated obligation discount note commitments — (70) 70 Total net gains (losses) related to derivatives not designated as hedging instruments (129,445) (57,623) 3,099 NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES $ (129,445) $ (57,623) $ (3,191) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Table 8.1 details the types of deposits held by FHLBank as of December 31, 2020 and 2019 (in thousands): Table 8.1 12/31/2020 12/31/2019 Interest-bearing: Demand $ 308,604 $ 383,197 Overnight 660,400 280,300 Term 2,750 — Total interest-bearing 971,754 663,497 Non-interest-bearing: Other 257,607 127,143 Total non-interest-bearing 257,607 127,143 TOTAL DEPOSITS $ 1,229,361 $ 790,640 |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Consolidated Bonds Obligations Outstanding By Maturity | Table 9.1 presents FHLBank’s participation in consolidated obligation bonds outstanding as of December 31, 2020 and 2019 (dollar amounts in thousands): Table 9.1 12/31/2020 12/31/2019 Year of Contractual Maturity Amount Weighted Amount Weighted Due in one year or less $ 27,921,650 0.31 % $ 15,991,800 1.79 % Due after one year through two years 1,267,800 1.45 6,318,350 1.90 Due after two years through three years 1,216,600 1.91 1,375,000 2.11 Due after three years through four years 831,700 1.58 1,285,900 2.39 Due after four years through five years 836,100 1.22 1,223,350 2.40 Thereafter 5,518,800 1.60 5,776,300 2.78 Total par value 37,592,650 0.63 % 31,970,700 2.05 % Premiums 38,219 34,789 Discounts (3,303) (3,357) Concession fees (14,143) (15,207) Hedging adjustments 34,654 26,389 TOTAL $ 37,648,077 $ 32,013,314 Table 9.2 Year of Maturity or Next Call Date 12/31/2020 12/31/2019 Due in one year or less $ 34,299,650 $ 24,583,300 Due after one year through two years 1,142,800 5,148,350 Due after two years through three years 815,100 615,000 Due after three years through four years 399,700 682,400 Due after four years through five years 391,100 356,850 Thereafter 544,300 584,800 TOTAL PAR VALUE $ 37,592,650 $ 31,970,700 |
Consolidated Bonds by Interest-Rate Payment Type | Table 9.3 summarizes interest rate payment terms for consolidated obligation bonds as of December 31, 2020 and 2019 (in thousands): Table 9.3 12/31/2020 12/31/2019 Simple variable rate $ 23,752,000 $ 16,017,000 Fixed rate 13,840,650 15,573,700 Variable rate with cap — 220,000 Step — 110,000 Fixed to variable rate — 50,000 TOTAL PAR VALUE $ 37,592,650 $ 31,970,700 |
Consolidated Discount Notes Outstanding | Table 9.4 summarizes FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands): Table 9.4 Book Value Par Value Weighted Average Interest Rate 1 December 31, 2020 $ 10,882,417 $ 10,883,608 0.08 % December 31, 2019 $ 27,447,911 $ 27,510,042 1.54 % 1 Represents yield to maturity excluding concession fees. |
Affordable Housing Program (Tab
Affordable Housing Program (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Affordable Housing Program [Abstract] | |
Analysis of AHP Liability | Table 10.1 details the change in the AHP liability for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 10.1 2020 2019 2018 Appropriated and reserved AHP funds as of the beginning of the period $ 43,027 $ 43,081 $ 43,005 AHP set aside based on current year income 13,123 20,597 18,944 Direct grants disbursed (15,137) (20,973) (19,027) Recaptured funds 1 116 322 159 Appropriated and reserved AHP funds as of the end of the period $ 41,129 $ 43,027 $ 43,081 1 Recaptured funds are direct grants returned to FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets | Tables 11.1 and 11.2 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 FHLBank’s master netting arrangements or similar agreements as of December 31, 2020 and 2019 (in thousands): Table 11.1 12/31/2020 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net Derivative assets: Uncleared derivatives $ 18,819 $ (18,031) $ 788 $ (654) $ 134 Cleared derivatives 510 147,570 148,080 — 148,080 Total derivative assets 19,329 129,539 148,868 (654) 148,214 Securities purchased under agreements to resell 2,600,000 — 2,600,000 (2,600,000) — TOTAL $ 2,619,329 $ 129,539 $ 2,748,868 $ (2,600,654) $ 148,214 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 11.2 12/31/2019 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net 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 11.3 and 11.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of December 31, 2020 and 2019 (in thousands): Table 11.3 12/31/2020 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net Derivative liabilities: Uncleared derivatives $ 324,491 $ (320,087) $ 4,404 $ (4) $ 4,400 Cleared derivatives 5,154 (5,154) — — — Total derivative liabilities 329,645 (325,241) 4,404 (4) 4,400 TOTAL $ 329,645 $ (325,241) $ 4,404 $ (4) $ 4,400 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 11.4 12/31/2019 Description Gross Amounts Gross Amounts Net Amounts Gross Amounts Not Offset in the Statement of Condition 1 Net 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) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Regulatory Capital Requirements | Table 12.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of December 31, 2020 and 2019 (dollar amounts in thousands): Table 12.1 12/31/2020 12/31/2019 Required Actual Required Actual Regulatory capital requirements: Risk-based capital $ 192,927 $ 2,213,868 $ 486,650 $ 2,319,531 Total regulatory capital-to-asset ratio 4.0 % 5.0 % 4.0 % 4.4 % Total regulatory capital $ 2,103,668 $ 2,627,083 $ 2,531,066 $ 2,768,680 Leverage capital ratio 5.0 % 7.1 % 5.0 % 6.2 % Leverage capital $ 2,629,586 $ 3,734,017 $ 3,163,833 $ 3,928,446 |
Mandatorily Redeemable Capital Stock By Contractual Year Of Repurchase | Table 12.2 presents a roll-forward of mandatorily redeemable capital stock for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 12.2 2020 2019 2018 Balance, beginning of period $ 2,415 $ 3,597 $ 5,312 Capital stock subject to mandatory redemption reclassified from equity during the period 2,199,346 283,831 1,040,316 Capital stock redemption cancellations reclassified to equity during the period (100,647) — — Redemption or repurchase of mandatorily redeemable capital stock during the period (2,099,548) (285,150) (1,042,258) Stock dividend classified as mandatorily redeemable capital stock during the period 58 137 227 Balance, end of period $ 1,624 $ 2,415 $ 3,597 Table 12.3 shows the amount of mandatorily redeemable capital stock by contractual year of redemption as of December 31, 2020 and 2019 (in thousands). The year of redemption in Table 12.3 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 12.3 Contractual Year of Repurchase 12/31/2020 12/31/2019 Year 1 $ 7 $ — Year 2 634 1 Year 3 — 869 Year 4 — — Year 5 — — Past contractual redemption date due to remaining activity 1 983 1,545 TOTAL $ 1,624 $ 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) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income Or Loss | Table 13.1 summarizes the changes in AOCI for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 13.1 Year Ended Net Unrealized Gains (Losses) on Available-for-Sale Securities (Note 4) Net Non-Credit Portion of Other-than-temporary Impairment Gains (Losses) on Held-to-maturity Securities (Note 4) Defined Benefit Pension Plan (Note 15) Total AOCI Balance at December 31, 2017 $ 31,206 $ (4,163) $ (1,385) $ 25,658 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) (12,138) (12,138) Accretion of non-credit other-than-temporary impairment loss 513 513 Non-credit losses included in basis of securities sold 3,625 3,625 Net gains (losses) - defined benefit pension plan (2,389) (2,389) Reclassifications from other comprehensive income (loss) to net income: Non-credit other-than-temporary impairment to credit other-than-temporary impairment 1 25 25 Amortization of net losses - defined benefit pension plan 2 399 399 Net current period other comprehensive income (loss) (12,138) 4,163 (1,990) (9,965) Balance at December 31, 2018 $ 19,068 $ — $ (3,375) $ 15,693 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 7,720 7,720 Net gains (losses) - defined benefit pension plan (1,806) (1,806) Curtailment gains (losses) - defined benefit pension plan 2,845 2,845 Reclassifications from other comprehensive income (loss) to net income: Amortization of net losses - defined benefit pension plan 2 334 334 Net current period other comprehensive income (loss) 7,720 — 1,373 9,093 Balance at December 31, 2019 $ 26,788 $ — $ (2,002) $ 24,786 Other comprehensive income (loss) before reclassification: Unrealized gains (losses) 19,931 19,931 Net gains (losses) - defined benefit pension plan (1,177) (1,177) Settlement charges - defined benefit pension plan 133 133 Reclassifications from other comprehensive income (loss) to net income: Realized net (gains) losses included in net income 3 (1,523) (1,523) Amortization of net losses - defined benefit pension plan 2 158 158 Net current period other comprehensive income (loss) 18,408 — (886) 17,522 Balance at December 31, 2020 $ 45,196 $ — $ (2,888) $ 42,308 1 Recorded in "Other" non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). 2 Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses). 3 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)). |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | Table 14.1 presents the net pension cost and funded status of FHLBank relating to the Pentegra Defined Benefit Plan (dollar amounts in thousands): Table 14.1 2020 2019 2018 Net pension cost charged to compensation and benefits expense, excluding fees $ 840 $ 672 $ 3,500 Pentegra Defined Benefit Plan funded status as of July 1 1 108.2 % 108.6 % 111.0 % FHLBank's funded status as of July 1 99.9 104.6 111.1 1 The funded status as of July 1, 2020 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2020 through March 15, 2021. Contributions made on or before March 15, 2021, and designated for the plan year ended June 30, 2020, will be included in the final valuation as of July 1, 2020. The final funded status as of July 1, 2020 will not be available until the Form 5500 for the plan year July 1, 2020 through June 30, 2021 is filed (this Form 5500 is due to be filed no later than April 2022). The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020. Contributions made on or before March 15, 2020, and designated for the plan year ended June 30, 2019, will be included in the final valuation as of July 1, 2019. The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021). |
Benefit Obligation, Fair Value of Plan Assets, and Funded Status [Table Text Block] | The obligations and funding status of the defined benefit portion of FHLBank’s BEP as of December 31, 2020 and 2019 are presented in Table 14.2 (in thousands): Table 14.2 2020 2019 Change in benefit obligation: Projected benefit obligation at beginning of year $ 13,372 $ 14,519 Service cost — 236 Interest cost 389 566 Net (gains) losses 1,177 1,806 Benefits paid (910) (910) Curtailment — (2,845) Settlements (617) — Projected benefit obligation at end of year 13,411 13,372 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contributions 1,527 910 Benefits paid (910) (910) Settlements (617) — Fair value of plan assets at end of year — — FUNDED STATUS $ (13,411) $ (13,372) |
Schedule of Net Benefit Costs [Table Text Block] | Table 14.3 presents the components of the net periodic pension cost for the defined benefit portion of FHLBank’s BEP for the years ended December 31, 2020, 2019, and 2018 (in thousands): Table 14.3 2020 2019 2018 Service cost $ — $ 236 $ 222 Interest cost 389 566 506 Amortization of net losses 158 334 399 Settlement charges 133 — — NET PERIODIC POSTRETIREMENT BENEFIT COST $ 680 $ 1,136 $ 1,127 |
Defined Benefit Plan, Assumptions [Table Text Block] | Table 14.4 presents the key assumptions and other information for the actuarial calculations for the defined benefit portion of FHLBank’s BEP for the years ended December 31, 2020, 2019, and 2018 (dollar amounts in thousands): Table 14.4 2020 2019 2018 Discount rate - benefit obligation 2.25 % 3.00 % 4.00 % Discount rate - net periodic benefit cost 3.00 % 4.00 % 3.50 % Salary increases - benefit obligation — % — % 4.89 % Amortization period (years) - net periodic benefit cost 5.53 6.08 6.26 Accumulated benefit obligation $ 13,411 $ 13,372 $ 11,105 |
Schedule of Expected Benefit Payments [Table Text Block] | The FHLBank’s estimated future benefit payments are presented in Table 14.5 (in thousands): Table 14.5 Year ending December 31, Estimated Benefit Payments 2021 $ 1,289 2022 1,284 2023 1,303 2024 486 2025 504 2026 through 2030 2,808 |
Fair Values (Tables)
Fair Values (Tables) | 12 Months Ended |
Dec. 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 December 31, 2020 and 2019 are summarized in Tables 15.1 and 15.2 (in thousands): Table 15.1 12/31/2020 Carrying Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Assets: Cash and due from banks $ 4,570,415 $ 4,570,415 $ 4,570,415 $ — $ — $ — Interest-bearing deposits 760,297 760,297 — 760,297 — — Securities purchased under agreements to resell 2,600,000 2,600,000 — 2,600,000 — — Federal funds sold 1,780,000 1,780,000 — 1,780,000 — — Trading securities 2,623,376 2,623,376 — 2,623,376 — — Available-for-sale securities 6,741,310 6,741,310 — 6,741,310 — — Held-to-maturity securities 2,746,992 2,750,116 — 2,674,446 75,670 — Advances 21,226,823 21,360,450 — 21,360,450 — — Mortgage loans held for portfolio, net of allowance 9,205,207 9,454,112 — 9,441,474 12,638 — Accrued interest receivable 97,718 97,718 — 97,718 — — Derivative assets 148,868 148,868 — 19,329 — 129,539 Liabilities: Deposits 1,229,361 1,229,361 — 1,229,361 — — Consolidated obligation discount notes 10,882,417 10,882,601 — 10,882,601 — — Consolidated obligation bonds 37,648,077 37,835,135 — 37,835,135 — — Mandatorily redeemable capital stock 1,624 1,624 1,624 — — — Accrued interest payable 45,575 45,575 — 45,575 — — Derivative liabilities 4,404 4,404 — 329,645 — (325,241) Other Asset (Liability): Industrial revenue bonds 35,000 37,978 — 37,978 — — Financing obligation payable (35,000) (37,978) — (37,978) — — 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 15.2 12/31/2019 Carrying Total 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 15.3 and 15.4 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 December 31, 2020 and 2019 (in thousands). Table 15.3 12/31/2020 Total Level 1 Level 2 Level 3 Netting Adjustment and Cash Collateral 1 Recurring fair value measurements - Assets: Trading securities: U.S. Treasury obligations $ 1,298,518 $ — $ 1,298,518 $ — $ — GSE debentures 431,875 — 431,875 — — GSE MBS 892,983 — 892,983 — — Total trading securities 2,623,376 — 2,623,376 — — Available-for-sale securities: U.S. Treasury obligations 3,546,325 — 3,546,325 — — GSE MBS 3,194,985 — 3,194,985 — — Total available-for-sale securities 6,741,310 — 6,741,310 — — Derivative assets: Interest-rate related 148,214 — 18,675 — 129,539 Mortgage delivery commitments 654 — 654 — — Total derivative assets 148,868 — 19,329 — 129,539 TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 9,513,554 $ — $ 9,384,015 $ — $ 129,539 Recurring fair value measurements - Liabilities: Derivative liabilities: Interest-rate related $ 4,400 $ — $ 329,641 $ — $ (325,241) Mortgage delivery commitments 4 — 4 — — Total derivative liabilities 4,404 — 329,645 — (325,241) TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES $ 4,404 $ — $ 329,645 $ — $ (325,241) Nonrecurring fair value measurements - Assets 2 : Impaired mortgage loans $ 12,668 $ — $ — $ 12,668 $ — Real estate owned 405 — — 405 — TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS $ 13,073 $ — $ — $ 13,073 $ — 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, including 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, 2020 and still outstanding as of December 31, 2020. Table 15.4 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 debentures 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, including 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) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off Balance Sheet Commitments | As of December 31, 2020 and 2019, off-balance sheet commitments are presented in Table 16.1 (in thousands): Table 16.1 12/31/2020 12/31/2019 Notional Amount Expire Expire Total Expire Expire Total Standby letters of credit outstanding $ 5,436,165 $ 4,251 $ 5,440,416 $ 4,764,724 $ 4,335 $ 4,769,059 Advance commitments outstanding 19,693 21,001 40,694 64,282 15,693 79,975 Principal commitments for standby bond purchase agreements 380,615 317,710 698,325 — 655,065 655,065 Commitments to fund or purchase mortgage loans 133,456 — 133,456 221,800 — 221,800 Commitments to issue consolidated bonds, at par 4,000 — 4,000 — — — Commitments to issue consolidated discount notes, at par — — — 411,161 — 411,161 |
Transactions With Stockholders
Transactions With Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions, by Balance Sheet Grouping | Tables 17.1 and 17.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of December 31, 2020 and 2019 (dollar amounts in thousands). None of the officers or directors of these members currently serve on FHLBank’s board of directors. Table 17.1 12/31/2020 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 $ 825 0.2 % $ 339,524 29.2 % $ 340,349 21.6 % TOTAL $ 825 0.2 % $ 339,524 29.2 % $ 340,349 21.6 % Table 17.2 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 December 31, 2020 and 2019 are summarized in Table 17.3 (dollar amounts in thousands). Information is only listed for the period in which the member owned more than 10 percent of outstanding FHLBank regulatory capital stock. Table 17.3 12/31/2020 12/31/2019 12/31/2020 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 $ 7,460,000 35.6 % $ 8,585,000 28.5 % $ 713 0.1 % $ 1,030 0.1 % BOKF, N.A. 4,500,000 14.9 22,457 2.9 TOTAL $ 7,460,000 35.6 % $ 13,085,000 43.4 % $ 713 0.1 % $ 23,487 3.0 % |
Related Party Transactions, by Balance Sheet Grouping - Directors' | Table 17.4 presents information as of December 31, 2020 and 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 17.4 12/31/2020 12/31/2019 Outstanding Amount Percent of Total Outstanding Amount Percent of Total Advances $ 161,021 0.8 % $ 178,945 0.6 % Deposits $ 25,459 2.1 % $ 15,748 2.0 % Class A Common Stock $ 10,298 2.5 % $ 6,467 1.4 % Class B Common Stock 21,200 1.8 5,571 0.4 TOTAL CAPITAL STOCK $ 31,498 2.0 % $ 12,038 0.7 % |
Schedule Of Related Party Transactions, Mortgage Loans Disclosure | Table 17.5 presents mortgage loans acquired during the years ended December 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 17.5 2020 2019 Amount Percent of Total Amount Percent of Total Mortgage loans acquired $ 102,519 3.8 % $ 189,724 4.9 % |
Transactions With Other FHLBa_2
Transactions With Other FHLBanks (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Transactions With Other Federal Home Loan Banks [Table Text Block] | FHLBank Topeka had the following business transactions with other FHLBanks during the years ended December 31, 2020, 2019, and 2018 as presented in Table 18.1 (in thousands). All transactions occurred at market prices. Table 18.1 Business Activity 2020 2019 2018 Average overnight interbank loan balances to other FHLBanks 1 $ 2,883 $ 2,529 $ 1,466 Average overnight interbank loan balances from other FHLBanks 1 6,831 8,082 3,562 Average deposit balances with FHLBank of Chicago for interbank transactions 2 6,981 1,361 1,256 Transaction charges paid to FHLBank of Chicago for transaction service fees 3 7,819 6,938 5,687 Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks 4 — — — _________ 1 Occasionally, FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. 2 Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. 3 Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination in addition to a flat fee for participating in the MPF Program. 4 Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $113,328,000 and $111,173,000 as of December 31, 2020 and 2019, respectively, are included in the non-MBS GSE debentures totals presented in Note 4. Interest income earned on these securities totaled $3,429,000 for each of the years ended December 31, 2020, 2019, and 2018, respectively. |
Background (Details)
Background (Details) | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Federal Home Loan Banks | 11 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative2) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Consolidated Obligations Market Settlement Convention (calendar days, or less) | 30 days | ||
Advances Market Settlement Convention (business days, or less) | 5 days | ||
Property, Plant and Equipment, Net | $ 40,400 | $ 46,619 | |
Accumulated depreciation and amortization related to premises, software and equipment | 26,074 | 24,202 | |
Depreciation and amortization | $ 3,339 | 3,127 | $ 2,975 |
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated | 51.00% | ||
Securities Purchased under Agreements to Resell, Allowance for Credit Loss | $ 0 | $ 0 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, software and equipment, Useful life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, software and equipment, Useful life | 40 years |
Cash and Due from Banks (Detail
Cash and Due from Banks (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Cash Pass-through Reserve, Federal Home Loan Bank | $ 0 | $ 3,820 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Marketable Securities [Line Items] | ||
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated | 51.00% | |
Financing Receivable, Practical Expedient, Accrued Interest Exclusion [true false] | true | |
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] | ||
Financing Receivable, 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 | 80 | 589 |
Federal Funds Sold [Member] | ||
Marketable Securities [Line Items] | ||
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss | 3 | 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 | $ 6 | $ 424 |
Investment Securities Investmen
Investment Securities Investment Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 2,623,376 | $ 2,812,562 |
U.S. Treasury obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,298,518 | 1,530,518 |
GSE Debenture [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 431,875 | 416,025 |
Non-mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 1,730,393 | 1,946,543 |
GSE MBS [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 892,983 | 866,019 |
Mortgage-backed securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 892,983 | $ 866,019 |
Investment Securities (Net Gain
Investment Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains (losses) on trading securities held as of current period end | $ 80,034 | $ 67,435 | $ (19,186) |
Net gains (losses) on trading securities sold or matured prior to current period end | (1,892) | 2,826 | (2,724) |
NET GAINS (LOSSES) ON TRADING SECURITIES | $ 78,142 | $ 70,261 | $ (21,910) |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss | $ 26,977 | $ 30,321 |
Debt Securities, Available-for-Sale, Excluded Accrued Interest from Amortized Cost [true false] | true | |
Amortized Cost | $ 6,696,114 | 7,155,712 |
Gross Unrecognized Gains | 49,655 | 31,933 |
Gross Unrecognized Losses | (4,459) | (5,145) |
Fair Value | 6,741,310 | 7,182,500 |
U.S. Treasury obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,541,411 | 4,258,608 |
Gross Unrecognized Gains | 4,931 | 3,580 |
Gross Unrecognized Losses | (17) | (397) |
Fair Value | 3,546,325 | 4,261,791 |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,541,411 | 4,258,608 |
Gross Unrecognized Gains | 4,931 | 3,580 |
Gross Unrecognized Losses | (17) | (397) |
Fair Value | 3,546,325 | 4,261,791 |
GSE MBS [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,154,703 | 2,897,104 |
Gross Unrecognized Gains | 44,724 | 28,353 |
Gross Unrecognized Losses | (4,442) | (4,748) |
Fair Value | 3,194,985 | 2,920,709 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,154,703 | 2,897,104 |
Gross Unrecognized Gains | 44,724 | 28,353 |
Gross Unrecognized Losses | (4,442) | (4,748) |
Fair Value | $ 3,194,985 | $ 2,920,709 |
Investment Securities (Availa_2
Investment Securities (Available-for-sale securities with unrealized losses, fair value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 250,436 | $ 2,366,813 |
Less than 12 Months, Unrealized Losses | (17) | (1,329) |
12 Months or More, Fair Value | 363,724 | 301,161 |
12 Months or More, Unrealized Losses | (4,442) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 614,160 | 2,667,974 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (4,459) | (5,145) |
U.S. Treasury obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 250,436 | 1,579,004 |
Less than 12 Months, Unrealized Losses | (17) | (397) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 250,436 | 1,579,004 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (17) | (397) |
Non-mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 250,436 | 1,579,004 |
Less than 12 Months, Unrealized Losses | (17) | (397) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 250,436 | 1,579,004 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (17) | (397) |
GSE MBS [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 787,809 |
Less than 12 Months, Unrealized Losses | 0 | (932) |
12 Months or More, Fair Value | 363,724 | 301,161 |
12 Months or More, Unrealized Losses | (4,442) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 363,724 | 1,088,970 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | (4,442) | (4,748) |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 787,809 |
Less than 12 Months, Unrealized Losses | 0 | (932) |
12 Months or More, Fair Value | 363,724 | 301,161 |
12 Months or More, Unrealized Losses | (4,442) | (3,816) |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Fair Value | 363,724 | 1,088,970 |
TOTAL TEMPORARILY IMPAIRED SECURITIES, Unrealized Losses | $ (4,442) | $ (4,748) |
Investment Securities (Availa_3
Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | $ 6,696,114 | $ 7,155,712 |
Fair Value | 6,741,310 | 7,182,500 |
Non-mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, Amortized Cost | 1,767,608 | 754,003 |
Due after one year through five years, Amortized Cost | 1,773,803 | 3,504,605 |
Due after five years through ten years, Amortized Cost | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Amortized Cost | 3,541,411 | 4,258,608 |
Due in one year or less, Fair Value | 1,768,588 | 753,891 |
Due after one year through five years, Fair Value | 1,777,737 | 3,507,900 |
Due after five years though ten years, Fair Value | 0 | 0 |
Due after ten years, Fair Value | 0 | 0 |
Fair Value | 3,546,325 | 4,261,791 |
Mortgage-backed securities [Member] | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost | 3,154,703 | 2,897,104 |
Mortgage-backed securities, Amortized Cost | 3,154,703 | 2,897,104 |
Mortgage-backed securities, Fair Value | 3,194,985 | 2,920,709 |
Fair Value | $ 3,194,985 | $ 2,920,709 |
Investment Securities Investm_2
Investment Securities Investment Securities (Net Gains (Losses) Realized AFS Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Sale [Abstract] | |||
Proceeds from sale of available-for-sale securities | $ 289,045 | $ 0 | $ 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 | $ 0 |
Investment Securities (Held-To-
Investment Securities (Held-To-Maturity Securities by Major Security Type) (Details) - USD ($) $ in Thousands | Dec. 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 | $ 930 | $ 4,324 |
Debt Securities, Held-to-Maturity, Excluded Accrued Interest [true false] | true | |
Amortized Cost | $ 2,746,992 | 3,569,958 |
Carrying Value | 2,746,992 | 3,569,958 |
Gross Unrecognized Gains | 10,343 | 6,563 |
Gross Unrecognized Losses | (7,219) | (19,583) |
Held-to-maturity, Fair Value | 2,750,116 | 3,556,938 |
State or local housing agency obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 78,960 | 82,805 |
Carrying Value | 78,960 | 82,805 |
Gross Unrecognized Gains | 0 | 5 |
Gross Unrecognized Losses | (3,290) | (1,956) |
Held-to-maturity, Fair Value | 75,670 | 80,854 |
Non-mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 78,960 | 82,805 |
Carrying Value | 78,960 | 82,805 |
Gross Unrecognized Gains | 0 | 5 |
Gross Unrecognized Losses | (3,290) | (1,956) |
Held-to-maturity, Fair Value | 75,670 | 80,854 |
U.S. obligation MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 70,814 | 93,375 |
Carrying Value | 70,814 | 93,375 |
Gross Unrecognized Gains | 135 | 0 |
Gross Unrecognized Losses | (59) | (496) |
Held-to-maturity, Fair Value | 70,890 | 92,879 |
GSE MBS [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,597,218 | 3,393,778 |
Carrying Value | 2,597,218 | 3,393,778 |
Gross Unrecognized Gains | 10,208 | 6,558 |
Gross Unrecognized Losses | (3,870) | (17,131) |
Held-to-maturity, Fair Value | 2,603,556 | 3,383,205 |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,668,032 | 3,487,153 |
Carrying Value | 2,668,032 | 3,487,153 |
Gross Unrecognized Gains | 10,343 | 6,558 |
Gross Unrecognized Losses | (3,929) | (17,627) |
Held-to-maturity, Fair Value | $ 2,674,446 | $ 3,476,084 |
Investment Securities (Held-T_2
Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | $ 2,746,992 | $ 3,569,958 |
Carrying Value | 2,746,992 | 3,569,958 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 2,750,116 | 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 | 48,960 | 0 |
Due after ten years, Carrying Value | 30,000 | 82,805 |
Amortized Cost | 78,960 | 82,805 |
Carrying Value | 78,960 | 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 | 47,280 | 0 |
Due after ten years, Fair Value | 28,390 | 80,854 |
Fair Value | 75,670 | 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 | 48,960 | 0 |
Due after ten years, Carrying Value | 30,000 | 82,805 |
Mortgage-backed securities [Member] | ||
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | 2,668,032 | 3,487,153 |
Carrying Value | 2,668,032 | 3,487,153 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | $ 2,674,446 | $ 3,476,084 |
Investment Securities Investm_3
Investment Securities Investment Securities (Proceeds from Sale and Gains and Losses on HTM Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of held-to-maturity securities | $ 0 | $ 9,442 | $ 87,827 |
Carrying value of held-to-maturity securities sold | (9,488) | (86,236) | |
Net gains (losses) on sale of held-to-maturity securities | $ 0 | $ (46) | $ 1,591 |
Advances (Narrative) (Details)
Advances (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Rate | Dec. 31, 2019USD ($)Rate | |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 20,972,441 | $ 30,172,055 |
Concentration Risk, Market Risk | FHLBank’s potential credit risk from advances is concentrated in commercial banks and savings institutions | |
Concentration Risk, Benchmark Description | members, respectively, that individually held 10 percent or more of FHLBank’s advances | |
Concentration Risk Prior and Current Year Entity, Count | 1 | 2 |
Minimum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | Rate | 0.11% | 0.96% |
Maximum [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, outstanding interest rate | Rate | 7.20% | 7.41% |
Credit Concentration Risk [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 7,460,000 | $ 13,085,000 |
Concentration Risk, Percentage | 35.60% | 43.40% |
Federal Home Loan Bank Advances Receivable [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Financing Receivable, Past Due | $ 0 | $ 0 |
Financing Receivable, Nonaccrual | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Mortgage Loans, Troubled Debt Restructuring | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Advances Advances Narrative 2 (
Advances Advances Narrative 2 (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Receivables with Imputed Interest [Line Items] | |
COVID-19 Relief Advance, Discount | $ 1,785 |
COVID-19 Relief Advances Low Cost 6-24 Month Term [Member] | |
Receivables with Imputed Interest [Line Items] | |
COVID-19 Relief Advance, Face Amount | $ 454,790 |
Advances (Advances Redemption T
Advances (Advances Redemption Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amount | ||
Due in one year or less | $ 12,540,970 | $ 13,188,118 |
Due after one year through two years | 1,591,133 | 10,448,433 |
Due after two years through three years | 1,268,307 | 1,254,153 |
Due after three years through four years | 1,305,047 | 1,067,662 |
Due after four years through five years | 1,033,221 | 1,208,854 |
Thereafter | 3,233,763 | 3,004,835 |
TOTAL PAR VALUE | 20,972,441 | 30,172,055 |
Discounts | (18,071) | (1,807) |
Hedging adjustments | 272,453 | 71,067 |
TOTAL | $ 21,226,823 | $ 30,241,315 |
Weighted Average Interest Rate | ||
Due in one year or less | 0.45% | 1.88% |
Due after one year through two years | 1.20% | 1.96% |
Due after two years through three years | 1.73% | 2.27% |
Due after three years through four years | 1.47% | 2.42% |
Due after four years through five years | 1.40% | 2.22% |
Thereafter | 1.90% | 2.25% |
Total par value | 0.92% | 1.99% |
Federal Home Loan Bank Advances Receivable [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Advances, Accrued Interest, after Allowance for Credit Loss | $ 15,588 | $ 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Redemption Term, Year of Redemption Term or Next Call Date | ||
Due in one year or less | $ 14,271,213 | $ 24,271,238 |
Due after one year through two years | 1,161,239 | 1,133,077 |
Due after two years through three years | 981,503 | 728,429 |
Due after three years through four years | 773,881 | 764,990 |
Due after four years through five years | 796,495 | 686,594 |
Thereafter | 2,988,110 | 2,587,727 |
TOTAL PAR VALUE | 20,972,441 | 30,172,055 |
Redemption Term, Year of Redemption Term or Next Conversion Date | ||
Due in one year or less | 13,563,370 | 14,053,068 |
Due after one year through two years | 1,861,133 | 10,637,833 |
Due after two years through three years | 1,489,057 | 1,524,153 |
Due after three years through four years | 1,400,447 | 1,215,412 |
Due after four years through five years | 1,008,871 | 1,304,254 |
Thereafter | 1,649,563 | 1,437,335 |
TOTAL PAR VALUE | $ 20,972,441 | $ 30,172,055 |
Advances (Advances by Interest
Advances (Advances by Interest Rate Payment Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed rate: | ||
Due in one year or less | $ 9,838,379 | $ 2,691,528 |
Due after one year | 6,663,459 | 5,912,124 |
Total fixed rate | 16,501,838 | 8,603,652 |
Variable rate: | ||
Due in one year or less | 2,702,591 | 10,496,590 |
Due after one year | 1,768,012 | 11,071,813 |
Total variable rate | 4,470,603 | 21,568,403 |
TOTAL PAR VALUE | $ 20,972,441 | $ 30,172,055 |
Mortgage Loans Mortgage Loans (
Mortgage Loans Mortgage Loans (Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | $ 9,086,637,000 | $ 10,475,653,000 | |||
C O V I D 19 Financing Receivable Modifications Troubled Debt Restructuring Suspended | 2,103,000 | ||||
Mortgage Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans on non-accrual status | [1],[2] | 117,584,000 | |||
Conventional Mortgage Loan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans on non-accrual status | [1],[2] | 117,584,000 | |||
Total unpaid principal balance | $ 8,563,349,000 | 9,849,542,000 | |||
Total unpaid principal balance, percent in a CARES Act forbearance plan | 1.00% | ||||
Financing Receivable, Allowance for Credit Loss | $ 5,177,000 | 985,000 | $ 812,000 | $ 1,208,000 | |
Conventional Mortgage Loan [Member] | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Forbearance Plan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | 82,193,000 | ||||
US Government Agency Insured Loans [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans on non-accrual status | 0 | ||||
Financing Receivable, Allowance for Credit Loss | 0 | $ 0 | |||
Payments statuses of current [Member] | Conventional Mortgage Loan [Member] | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Forbearance Plan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | 1,656,000 | ||||
30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Forbearance Plan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | 5,663,000 | ||||
60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Forbearance Plan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | 7,158,000 | ||||
Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member] | Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Forbearance Plan [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Total unpaid principal balance | $ 67,716,000 | ||||
[1] | Includes $69,192,000 of conventional mortgage loans on non-accrual status that did not have an associated allowance for credit losses. | ||||
[2] | Loans on non-accrual status include $1,311,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. |
Mortgage Loans (Mortgage Loans
Mortgage Loans (Mortgage Loans Held For Portfolio) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total unpaid principal balance | $ 9,086,637 | $ 10,475,653 | ||
Premiums | 128,231 | 155,793 | ||
Discounts | (1,865) | (2,503) | ||
Deferred loan costs, net | 123 | 184 | ||
Other deferred fees | (25) | (38) | ||
Hedging adjustments | (2,717) | 4,905 | ||
Total before Allowance for Credit Losses on Mortgage Loans | 9,210,384 | [1] | 10,633,994 | |
Allowance for Credit Losses on Mortgage Loans | [2] | (5,177) | (985) | |
MORTGAGE LOANS HELD FOR PORTFOLIO, NET | 9,205,207 | 10,633,009 | ||
Mortgage Loans [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | 44,101 | 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] | 1,419,725 | 1,347,385 | |
Fixed rates, long-term [Member] | Single-family mortgage [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total unpaid principal balance | $ 7,666,912 | $ 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 $6,123,000 (see Table 6.6). | |||
[3] | Medium-term defined as a term of 15 years or less at origination. |
Mortgage Loans (Mortgage Loan_2
Mortgage Loans (Mortgage Loans Held For Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 9,086,637 | $ 10,475,653 |
Government Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | 523,288 | 626,111 |
Conventional Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total unpaid principal balance | $ 8,563,349 | $ 9,849,542 |
Mortgage Loans (Credit Enhancem
Mortgage Loans (Credit Enhancement Fees Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Receivables [Abstract] | ||||
CE fees paid to PFIs1 | [1] | $ 7,743 | $ 7,019 | $ 6,196 |
Performance-based CE fees recovered from PFIs | (83) | (125) | (107) | |
Net Credit Enhancement Fees Paid | $ 7,660 | $ 6,894 | $ 6,089 | |
[1] | CE fees paid to PFIs excludes the amortization of CE fees paid up front, which is included with premium amortization as a reduction to mortgage interest income. |
Mortgage Loans Mortgage Loans_2
Mortgage Loans Mortgage Loans (Credit Quality Indicator for Conventional Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | $ 9,210,384 | [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] | 216,145 | ||
Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 8,994,239 | ||
Mortgage Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
In process of foreclosure, included above | [2] | 3,348 | ||
Past due 90 days or more and still accruing interest | 22,691 | |||
Loans on non-accrual status | [3],[4] | 117,584 | ||
Mortgage Loans, Troubled Debt Restructuring | 1,311 | 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 | [5] | 14,923 | ||
Recorded investment: | ||||
Total recorded investment | [6] | 10,686,351 | ||
Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 109,021 | ||
Mortgage Loans [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [6] | 10,577,330 | ||
Conventional Mortgage Loan [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 1,987,399 | ||
2016 | [1] | 641,468 | ||
2017 | [1] | 701,429 | ||
2018 | [1] | 696,260 | ||
2019 | [1] | 2,362,641 | ||
2020 | [1] | 2,290,824 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 8,680,021 | ||
In process of foreclosure, included above | [2] | 1,785 | ||
Past due 90 days or more and still accruing interest | 0 | |||
Loans on non-accrual status | [3],[4] | 117,584 | ||
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 | [5] | 14,923 | ||
Recorded investment: | ||||
Total recorded investment | [6] | 10,048,530 | ||
Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 44,744 | ||
2016 | [1] | 8,864 | ||
2017 | [1] | 23,558 | ||
2018 | [1] | 30,469 | ||
2019 | [1] | 59,610 | ||
2020 | [1] | 10,829 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 178,074 | ||
Conventional Mortgage Loan [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 78,600 | ||
Conventional Mortgage Loan [Member] | Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Prior to 2016 | [1] | 1,942,655 | ||
2016 | [1] | 632,604 | ||
2017 | [1] | 677,871 | ||
2018 | [1] | 665,791 | ||
2019 | [1] | 2,303,031 | ||
2020 | [1] | 2,279,995 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 8,501,947 | ||
Conventional Mortgage Loan [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [6] | 9,969,930 | ||
Government Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 530,363 | ||
In process of foreclosure, included above | [2] | 1,563 | ||
Past due 90 days or more and still accruing interest | 22,691 | |||
Loans on non-accrual status | [3],[4] | 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 | [5] | 0 | ||
Recorded investment: | ||||
Total recorded investment | [6] | 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] | 38,071 | ||
Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 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] | 492,292 | ||
Government Loans [Member] | Performing Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total current loans | [6] | 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] | 61,153 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 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] | 16,546 | ||
2016 | [1] | 3,932 | ||
2017 | [1] | 7,879 | ||
2018 | [1] | 6,695 | ||
2019 | [1] | 11,904 | ||
2020 | [1] | 3,712 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 50,668 | ||
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 | [6] | 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] | 10,485 | ||
Financial Asset, 30 to 59 Days Past Due [Member] | Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 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] | 24,514 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Mortgage Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | 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] | 7,680 | ||
2016 | [1] | 1,064 | ||
2017 | [1] | 2,354 | ||
2018 | [1] | 2,805 | ||
2019 | [1] | 4,438 | ||
2020 | [1] | 1,278 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | 19,619 | ||
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 | [6] | 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] | 4,895 | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Government Loans [Member] | Nonperforming Financial Instruments [Member] | Recorded Investment [Member] | ||||
Recorded investment: | ||||
Total past due | [6] | $ 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] | $ 130,478 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Mortgage Loans [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Serious delinquency rate | [7] | 1.40% | ||
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 | [8] | 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 | [6] | $ 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] | $ 20,518 | ||
2016 | [1] | 3,868 | ||
2017 | [1] | 13,325 | ||
2018 | [1] | 20,969 | ||
2019 | [1] | 43,268 | ||
2020 | [1] | 5,839 | ||
Total before Allowance for Credit Losses on Mortgage Loans | [1] | $ 107,787 | ||
Serious delinquency rate | [7] | 1.30% | ||
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 | [8] | 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 | [6] | $ 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] | $ 22,691 | ||
Serious delinquency rate | [7] | 4.30% | ||
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 | [8] | 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 | [6] | $ 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] | Includes $69,192,000 of conventional mortgage loans on non-accrual status that did not have an associated allowance for credit losses. | |||
[4] | Loans on non-accrual status include $1,311,000 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] | Loans on non-accrual status include $1,219,000 of troubled debt restructurings. Troubled debt restructurings are restructurings in which FHLBank, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. | |||
[6] | Includes accrued interest receivable. | |||
[7] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class. | |||
[8] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment for the portfolio class. |
Mortgage Loans (Rollforward of
Mortgage Loans (Rollforward of Allowance for Credit Losses on Conventional Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | |||
Provision (reversal) for credit losses | $ (716) | $ 387 | $ 27 |
Conventional Loans [Member] | |||
Allowance for credit losses: | |||
Balance, beginning of the period | 985 | 812 | 1,208 |
Adjustment for cumulative effect of accounting change | 6,123 | 0 | 0 |
Net (charge-offs) recoveries | (1,215) | (214) | (423) |
Provision (reversal) for credit losses | (716) | 387 | 27 |
Balance, end of the period | $ 5,177 | $ 985 | $ 812 |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Advances Market Settlement Convention (business days, or less) | 5 days | ||
Consolidated Obligations Market Settlement Convention (calendar days, or less) | 30 days | ||
Gain (Loss) from Hedged Firm Commitment Not Qualifying as Interest Rate Fair Value Hedge, Net | $ 0 | $ 0 | $ 0 |
Counterparty One [Member] | |||
Derivative [Line Items] | |||
Maximum credit risk applicable to a single counterparty (at period end) | $ 247 | $ 211 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities (Fair Values of Derivatives Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 19,074,822 | $ 20,899,934 | |
TOTAL, Derivative Assets | 19,329 | 24,810 | |
TOTAL, Derivative Liabilities | 329,645 | 106,708 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 129,539 | 129,994 |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (325,241) | (106,506) |
DERIVATIVE ASSETS | 148,868 | 154,804 | |
DERIVATIVE LIABILITIES | 4,404 | 202 | |
Cash collateral posted | 455,080 | 236,700 | |
Cash collateral received | 300 | 200 | |
Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 15,862,207 | 16,448,512 | |
TOTAL, Derivative Assets | 18,427 | 23,462 | |
TOTAL, Derivative Liabilities | 261,431 | 80,398 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 3,212,615 | 4,451,422 | |
TOTAL, Derivative Assets | 902 | 1,348 | |
TOTAL, Derivative Liabilities | 68,214 | 26,310 | |
Interest rate swaps [Member] | Derivatives designated as hedging instruments: [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 15,862,207 | 16,448,512 | |
TOTAL, Derivative Assets | 18,427 | 23,462 | |
TOTAL, Derivative Liabilities | 261,431 | 80,398 | |
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 2,476,659 | 3,099,622 | |
TOTAL, Derivative Assets | 107 | 736 | |
TOTAL, Derivative Liabilities | 68,210 | 26,285 | |
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 602,500 | 1,130,000 | |
TOTAL, Derivative Assets | 141 | 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 | 133,456 | 221,800 | |
TOTAL, Derivative Assets | 654 | 495 | |
TOTAL, Derivative Liabilities | $ 4 | $ 25 | |
[1] | Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty. |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Net Gains or Losses on Derivatives and Hedging Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Total amounts presented in the Statements of Income, Advances | $ 268,051 | $ 716,199 | $ 637,203 | ||
Total amounts presented in the Statements of Income, Available-for-sale Securities | 54,311 | 116,866 | 46,154 | ||
Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes | 123,124 | 532,155 | 451,380 | ||
Total amounts presented in the Statements of Income, Consolidated Obligations Bonds | 363,896 | 689,275 | 524,255 | ||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | (6,290) | ||||
Interest Rate Contract [Member] | Advances [Member] | Interest Income [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives1 | [1] | (253,469) | (96,772) | ||
Hedged items2 | [2] | 202,888 | 115,323 | ||
Derivatives1 (2018) | [1],[3] | 9,653 | |||
Hedged items2 (2018) | [2],[3] | (3,881) | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (50,581) | 18,551 | 5,772 | [3] | |
Interest Rate Contract [Member] | Available-for-sale Securities [Member] | Interest Income [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives1 | [1] | (354,003) | (140,821) | ||
Hedged items2 | [2] | 246,911 | 139,828 | ||
Derivatives1 (2018) | [1],[3] | 474 | |||
Hedged items2 (2018) | [2],[3] | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | (107,092) | (993) | 474 | [3] | |
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives1 | [1] | 18,345 | 75 | ||
Hedged items2 | [2] | (118) | 138 | ||
Derivatives1 (2018) | [1],[3] | 12 | |||
Hedged items2 (2018) | [2],[3] | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | 18,227 | 213 | 12 | [3] | |
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives1 | [1] | 44,157 | 27,229 | ||
Hedged items2 | [2] | (8,264) | (32,904) | ||
Derivatives1 (2018) | [1],[3] | (5,178) | |||
Hedged items2 (2018) | [2],[3] | 0 | |||
NET GAINS (LOSSES) OF FAIR VALUE HEDGING RELATIONSHIPS (INTEREST INCOME/EXPENSE) | $ 35,893 | $ (5,675) | (5,178) | [3] | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Net gains (losses) on derivatives and hedging activities [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivatives1 | [3] | 21,360 | |||
Hedged items2 | [3] | (27,650) | |||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | [3] | $ (6,290) | |||
[1] | Includes net interest settlements in interest income/expense. | ||||
[2] | Includes amortization/accretion on closed fair value relationships in interest income. | ||||
[3] | Prior period amounts were not conformed to hedge accounting guidance adopted January 1, 2019 (i.e., net gains (losses) are separated in this table consistent with the 2018 income statement presentation). |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Advances [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Asset, Fair Value Hedge1 | [1] | $ 5,895,962 | $ 4,951,445 |
Asset, Basis Adjustments for Active Hedging Relationships2 | [2] | 261,304 | 69,643 |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 11,149 | 1,424 |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | 272,453 | 71,067 |
Available-for-sale Securities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Asset, Fair Value Hedge1 | [1] | 6,696,114 | 7,155,712 |
Asset, Basis Adjustments for Active Hedging Relationships2 | [2] | 320,063 | 79,141 |
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | 0 |
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | 320,063 | 79,141 |
Consolidated Obligation Discount Notes [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Liability, Fair Value Hedge1 | [1] | (174,855) | |
Liability, Basis Adjustments for Active Hedging Relationships2 | [2] | 33 | |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | 33 | |
Consolidated Obligation Bonds [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Carrying Value of Hedged Liability, Fair Value Hedge1 | [1] | (3,791,848) | (3,270,635) |
Liability, Basis Adjustments for Active Hedging Relationships2 | [2] | (34,654) | (26,389) |
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2 | [2] | 0 | 0 |
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2 | [2] | $ (34,654) | $ (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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to fair value hedge ineffectiveness | $ (6,290) | ||
Total net gains (losses) related to derivatives not designated as hedging instruments | 3,099 | ||
NET GAINS (LOSSES) ON DERIVATIVES AND HEDGING ACTIVITIES | $ (129,445) | $ (57,623) | (3,191) |
Gain (Loss) on Derivative Instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (129,445) | (57,623) | |
Gain (Loss) on Derivative Instruments [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 | (129,445) | (57,623) | |
Interest rate swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to fair value hedge ineffectiveness | (6,290) | ||
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 | 10,114 | ||
Interest rate swaps [Member] | Gain (Loss) on Derivative Instruments [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 | (78,633) | (56,961) | |
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 | 33 | ||
Interest rate caps/floors [Member] | Gain (Loss) on Derivative Instruments [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 | 23 | (927) | |
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 | (5,476) | ||
Net Interest Settlements [Member] | Gain (Loss) on Derivative Instruments [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 | (46,630) | (3,974) | |
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 | (1,642) | ||
Mortgage delivery commitments [Member] | Gain (Loss) on Derivative Instruments [Member] | Mortgage Receivable [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gains (losses) related to derivatives not designated as hedging instruments | (4,205) | 4,309 | |
Consolidated obligation discount note commitments [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 | $ 70 | ||
Consolidated obligation discount note commitments [Member] | Gain (Loss) on Derivative Instruments [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 | Dec. 31, 2020 | Dec. 31, 2019 |
Interest-bearing: | ||
Demand | $ 308,604 | $ 383,197 |
Overnight | 660,400 | 280,300 |
Term Deposits | 2,750 | 0 |
Total interest-bearing | 971,754 | 663,497 |
Non-interest-bearing: | ||
Other | 257,607 | 127,143 |
Total non-interest-bearing | 257,607 | 127,143 |
TOTAL DEPOSITS | $ 1,229,361 | $ 790,640 |
Consolidated Obligations (Narra
Consolidated Obligations (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||
Number of Federal Home Loan Banks | 11 | |
Par value | $ 37,592,650 | $ 31,970,700 |
Obligation with Joint and Several Liability Arrangement, Amount Outstanding | 746,772,303 | 1,025,894,666 |
Federal Home Loan Bank, Consolidated Obligations, Callable Option [Member] | ||
Debt Instrument [Line Items] | ||
Par value | $ 6,878,000 | $ 8,891,500 |
Consolidated Obligations (Conso
Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 27,921,650 | $ 15,991,800 |
Due in one year or less, Weighted Average Interest Rate | 0.31% | 1.79% |
Due after one year through two years | $ 1,267,800 | $ 6,318,350 |
Due after one year through two years, Weighted Average Interest Rate | 1.45% | 1.90% |
Due after two years through three years | $ 1,216,600 | $ 1,375,000 |
Due after two years through three years, Weighted Average Interest Rate | 1.91% | 2.11% |
Due after three years through four years | $ 831,700 | $ 1,285,900 |
Due after three years through four years, Weighted Average Interest Rate | 1.58% | 2.39% |
Due after four years through five years | $ 836,100 | $ 1,223,350 |
Due after four years through five years, Weighted Average Interest Rate | 1.22% | 2.40% |
Thereafter | $ 5,518,800 | $ 5,776,300 |
Thereafter, Weighted Average Interest Rate | 1.60% | 2.78% |
Total par value | $ 37,592,650 | $ 31,970,700 |
Total par value, Weighted Average Interest Rate | 0.63% | 2.05% |
Premium | $ 38,219 | $ 34,789 |
Discounts | (3,303) | (3,357) |
Concession fees | (14,143) | (15,207) |
Hedging adjustments | 34,654 | 26,389 |
TOTAL | $ 37,648,077 | $ 32,013,314 |
Consolidated Obligations (Con_2
Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Due in one year or less | $ 27,921,650 | $ 15,991,800 |
Due after one year through two years | 1,267,800 | 6,318,350 |
Due after two years through three years | 1,216,600 | 1,375,000 |
Due after three years through four years | 831,700 | 1,285,900 |
Due after four years through five years | 836,100 | 1,223,350 |
Thereafter | 5,518,800 | 5,776,300 |
Total par value | 37,592,650 | 31,970,700 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | 34,299,650 | 24,583,300 |
Due after one year through two years | 1,142,800 | 5,148,350 |
Due after two years through three years | 815,100 | 615,000 |
Due after three years through four years | 399,700 | 682,400 |
Due after four years through five years | 391,100 | 356,850 |
Thereafter | $ 544,300 | $ 584,800 |
Consolidated Obligations (Con_3
Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total par value | $ 37,592,650 | $ 31,970,700 |
Simple variable rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 23,752,000 | 16,017,000 |
Fixed rate [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 13,840,650 | 15,573,700 |
Variable rate with cap [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 0 | 220,000 |
Step [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 0 | 110,000 |
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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Book Value | $ 10,882,417 | $ 27,447,911 | |
Consolidated Obligation Discount Notes [Member] | |||
Short-term Debt [Line Items] | |||
Par Value | $ 10,883,608 | $ 27,510,042 | |
Weighted Average Interest Rate | [1] | 0.08% | 1.54% |
[1] | Represents yield to maturity excluding concession fees. |
Affordable Housing Program (Nar
Affordable Housing Program (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Affordable Housing Program Contribution Requirement Amount | $ 100,000 |
Affordable Housing Program, Contribution Requirement, Percentage | 10.00% |
Appropriated and reserved AHP funds as of the end of the period | $ 41,129 |
Affordable Housing Program Next Year Uncommitted And Prior Years Recaptured And Reallocated [Member] | |
Appropriated and reserved AHP funds as of the end of the period | 13,260 |
Affordable Housing Program Prior Years Committed And Undisbursed [Member] | |
Appropriated and reserved AHP funds as of the end of the period | $ 27,869 |
Affordable Housing Program (Ana
Affordable Housing Program (Analysis of AHP Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Affordable Housing Program [Roll Forward] | ||||
Appropriated and reserved AHP funds as of the beginning of the period | $ 43,027 | $ 43,081 | $ 43,005 | |
AHP set aside based on current year income | 13,123 | 20,597 | 18,944 | |
Direct grants disbursed | (15,137) | (20,973) | (19,027) | |
Recaptured funds | [1] | 116 | 322 | 159 |
Appropriated and reserved AHP funds as of the end of the period | $ 41,129 | $ 43,027 | $ 43,081 | |
[1] | Recaptured funds are direct grants returned to FHLBank in those instances where the commitments associated with the approved use of funds are not met and repayment to FHLBank is required by regulation. Recaptured funds are returned as a result of: (1) AHP-assisted homeowner’s transfer or sale of property within the five-year retention period that the assisted homeowner is required to occupy the property; (2) homeowner’s failure to acquire sufficient loan funding (funds previously approved and disbursed cannot be used); (3) over-subsidized projects; or (4) previously disbursed but unused grants. |
Assets and Liabilities Subjec_3
Assets and Liabilities Subject to Offsetting Assets Subject to Offsetting (Schedule of Offsetting Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | $ 19,329 | $ 24,810 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | [1],[2] | 129,539 | 129,994 |
Total derivative assets | 148,868 | 154,804 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (654) | (495) |
Derivative assets, Net Amount | 148,214 | 154,309 | |
Securities purchased under agreements to resell, Gross Amounts of Recognized Assets | 2,600,000 | 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 | 2,600,000 | 4,750,000 | |
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,600,000) | (4,750,000) |
Securities purchased under agreements to resell, Net Amount | 0 | 0 | |
TOTAL, Gross Amounts of Recognized Assets | 2,619,329 | 4,774,810 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | 129,539 | 129,994 | |
TOTAL, Net Amounts of Assets Presented in the Statement of Condition | 2,748,868 | 4,904,804 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (2,600,654) | (4,750,495) |
TOTAL, Net Amount | 148,214 | 154,309 | |
Uncleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 18,819 | 21,749 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | (18,031) | (14,424) | |
Total derivative assets | 788 | 7,325 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | (654) | (495) |
Derivative assets, Net Amount | 134 | 6,830 | |
Cleared derivatives [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative assets, Gross Amounts of Recognized Assets | 510 | 3,061 | |
Derivative assets, Gross Amounts Offset in the Statement of Condition | 147,570 | 144,418 | |
Total derivative assets | 148,080 | 147,479 | |
Derivative assets, Gross Amounts Not Offset in the Statement of Condition | [3] | 0 | 0 |
Derivative assets, Net Amount | $ 148,080 | $ 147,479 | |
[1] | Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty. | ||
[3] | Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments). |
Assets and Liabilities Subjec_4
Assets and Liabilities Subject to Offsetting Liabilities Subject to Offsetting (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | $ 329,645 | $ 106,708 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | [1],[2] | (325,241) | (106,506) |
Total derivative liabilities | 4,404 | 202 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (4) | (25) |
Derivative liabilities, Net Amount | 4,400 | 177 | |
TOTAL, Gross Amounts of Recognized Liabilities | 329,645 | 106,708 | |
TOTAL, Gross Amounts Offset in the Statement of Condition | (325,241) | (106,506) | |
TOTAL, Net Amounts of Liabilities Presented in the Statement of Condition | 4,404 | 202 | |
TOTAL, Gross Amounts Not Offset in the Statement of Condition | [3] | (4) | (25) |
TOTAL, Net Amount | 4,400 | 177 | |
Uncleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 324,491 | 105,468 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (320,087) | (105,266) | |
Total derivative liabilities | 4,404 | 202 | |
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition | [3] | (4) | (25) |
Derivative liabilities, Net Amount | 4,400 | 177 | |
Cleared derivatives [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative liabilities, Gross Amounts of Recognized Liabilities | 5,154 | 1,240 | |
Derivative liabilities, Gross Amounts Offset in the Statement of Condition | (5,154) | (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 and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 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, including 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) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)$ / sharesRate | Dec. 31, 2019USD ($)$ / sharesRate | Dec. 31, 2018USD ($) | Jan. 22, 2021 | ||
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 | ||||
Description Of Capital Requirements For Members | Each member is required to hold capital stock to become and remain a member of FHLBank (Asset-based Stock Purchase Requirement; Class A Common Stock) and enter into specified activities with FHLBank including, but not limited to, access to the FHLBank’s credit products and selling AMA to FHLBank (Activity-based Stock Purchase Requirement; Class A Common Stock to the extent of a member’s Asset-based Stock Purchase Requirement, then Class B Common Stock for the remainder). The amount of Class A Common Stock a member must acquire and maintain is the Asset-based Stock Purchase Requirement, which is currently equal to 0.1 percent of a member’s total assets as of December 31 of the preceding calendar year, with a minimum requirement of $1,000, and a maximum requirement of $500,000. The amount of Class B Common Stock a member must acquire and maintain is the Activity-based Stock Purchase Requirement, which is currently equal to 4.5 percent of the principal amount of advances outstanding to the member plus 3.0 percent of the principal amount of AMA outstanding for the member, limited to a maximum of 3.0 percent of the member's total assets at the end of the prior calendar year, less the member’s Asset-based Stock Purchase Requirement. As of December 31, 2020, there was no Activity-based Stock Purchase Requirement for letters of credit. However, the Letter of Credit Activity-based Stock Purchase Requirement increased to 0.25 percent from the previous requirement of zero percent, effective January 22, 2021. The change in the Activity-based Stock Purchase Requirements will not change for former members with outstanding business transactions. | ||||
Activity Based Capital Stock Required By Members As Percent Of Letter of Credit Principal | |||||
Excess Stock Redemption Or Response Period | 5 days | ||||
Dividend Parity Threshold Notification Period | 90 days | ||||
Dividend Parity Threshold Adjustment | 100 | ||||
Dividend Parity Threshold | 0.00% | ||||
Dividend Parity Threshold Floor | 0.00% | ||||
Common Stock, par value per share | $ / shares | $ 100 | ||||
Excess Stock (less than) | Rate | 1.00% | ||||
Capital Distributions From FHLBanks to FICO | $ 680,000 | ||||
Excess FICO Funds Available for Distribution to FHLBanks | 200,031 | ||||
Partial recovery of prior capital distribution to Financing Corporation | 10,543 | $ 0 | $ 0 | ||
Federal Home Loan Bank Advances Receivable [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | 0 | $ 0 | |||
Unrestricted Retained Earnings [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Partial recovery of prior capital distribution to Financing Corporation | $ 10,543 | ||||
Class A [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Leverage capital, non-permanent capital weight | 1 | ||||
Asset Based Stock Purchase Requirement Percentage | 0.10% | ||||
Minimum period after which redemption is required | 6 months | ||||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 | ||
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 1.00% | ||||
Class B [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Activity Based Capital Stock Required By Members As Percent Of Advances Outstanding | 4.50% | ||||
Activity Based Capital Stock Required By Members As Percent Of Acquired Member Assets Outstanding | 3.00% | ||||
Activity Based Capital Stock Required By Members As Percent Of Outstanding Balance of Acquired Member Assets, Limit | 3.00% | ||||
Activity Based Capital Stock Required By Members As Percent Of Letter of Credit Principal | 0.00% | ||||
Minimum period after which redemption is required | 5 years | ||||
Common Stock, par value per share | $ / shares | [1] | $ 100 | $ 100 | ||
Maximum [Member] | Class A [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Asset Based Stock Purchase Requirement Value | $ 500 | ||||
Maximum [Member] | Class B [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 5.00% | ||||
Minimum [Member] | Class A [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Asset Based Stock Purchase Requirement Value | $ 1 | ||||
Minimum [Member] | Class B [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Financial Instruments Subject To Mandatory Redemption Cancellation Fee Multiplier | 1.00% | ||||
Subsequent Event [Member] | Class B [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Activity Based Capital Stock Required By Members As Percent Of Letter of Credit Principal | 0.25% | ||||
[1] | Putable |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Regulatory capital requirements: | ||
Risk-based capital, Required | $ 192,927 | $ 486,650 |
Risk-based capital, Actual | $ 2,213,868 | $ 2,319,531 |
Total regulatory capital-to-asset ratio, Required | 4.00% | 4.00% |
Total regulatory capital-to-asset ratio, Actual | 5.00% | 4.40% |
Total regulatory capital, Required | $ 2,103,668 | $ 2,531,066 |
Total regulatory capital, Actual | $ 2,627,083 | $ 2,768,680 |
Leverage capital ratio, Required | 5.00% | 5.00% |
Leverage capital ratio, Actual | 7.10% | 6.20% |
Leverage capital, Required | $ 2,629,586 | $ 3,163,833 |
Leverage capital, Actual | $ 3,734,017 | $ 3,928,446 |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mandatorily Redeemable Capital Stock [Roll Forward] | |||
Balance, beginning of period | $ 2,415 | $ 3,597 | $ 5,312 |
Capital stock subject to mandatory redemption reclassified from equity during the period | 2,199,346 | 283,831 | 1,040,316 |
Capital stock redemption cancellations reclassified to equity during the period | (100,647) | 0 | 0 |
Redemption or repurchase of mandatorily redeemable capital stock during the period | (2,099,548) | (285,150) | (1,042,258) |
Stock dividend classified as mandatorily redeemable capital stock during the period | 58 | 137 | 227 |
Balance, end of period | $ 1,624 | $ 2,415 | $ 3,597 |
Capital (Mandatorily Redeemab_2
Capital (Mandatorily Redeemable Capital Stock By Contractual Year Of Redemption) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contractual Year of Repurchase | |||||
Year 1 | $ 7 | $ 0 | |||
Year 2 | 634 | 1 | |||
Year 3 | 0 | 869 | |||
Year 4 | 0 | 0 | |||
Year 5 | 0 | 0 | |||
Past contractual redemption date due to remaining activity | [1] | 983 | 1,545 | ||
TOTAL | $ 1,624 | $ 2,415 | $ 3,597 | $ 5,312 | |
[1] | Represents mandatorily redeemable capital stock that is past the end of the contractual redemption period because there is activity outstanding to which the mandatorily redeemable capital stock relates. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | $ 2,791,051 | $ 2,454,252 | $ 2,506,103 | |
Reclassifications from other comprehensive income (loss) to net income: | ||||
Total other comprehensive income (loss) | 17,522 | 9,093 | (9,965) | |
Balance at the end of the period | 2,667,767 | 2,791,051 | 2,454,252 | |
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 | 31,206 | |
Other comprehensive income (loss) before reclassification: | ||||
Unrealized gains (losses) | 19,931 | 7,720 | (12,138) | |
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) | 18,408 | 7,720 | (12,138) | |
Balance at the end of the period | 45,196 | 26,788 | 19,068 | |
Defined Benefit Pension Plan [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | (2,002) | (3,375) | (1,385) | |
Other comprehensive income (loss) before reclassification: | ||||
Net gains (losses) - defined benefit pension plan | (1,177) | (1,806) | (2,389) | |
Settlement charges or Curtailment gains (losses) - defined benefit pension plan | 133 | 2,845 | ||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Amortization of net losses - defined benefit pension plan1 | [2] | 158 | 334 | 399 |
Total other comprehensive income (loss) | (886) | 1,373 | (1,990) | |
Balance at the end of the period | (2,888) | (2,002) | (3,375) | |
Total AOCI [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | 24,786 | 15,693 | 25,658 | |
Other comprehensive income (loss) before reclassification: | ||||
Unrealized gains (losses) | 19,931 | 7,720 | (12,138) | |
Accretion of non-credit other-than-temporary impairment loss | 513 | |||
Non-credit losses included in basis of securities sold | 3,625 | |||
Net gains (losses) - defined benefit pension plan | (1,177) | (1,806) | (2,389) | |
Settlement charges or Curtailment gains (losses) - defined benefit pension plan | 133 | 2,845 | ||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Non-credit other-than-temporary impairment to credit other-than-temporary impairment1 | [3] | 25 | ||
Realized net (gains) losses included in net income2 | [1] | (1,523) | ||
Amortization of net losses - defined benefit pension plan1 | [2] | 158 | 334 | 399 |
Total other comprehensive income (loss) | 17,522 | 9,093 | (9,965) | |
Balance at the end of the period | 42,308 | 24,786 | 15,693 | |
Held-to-maturity Securities [Member] | Net Non-Credit Portion of Other-than-temporary Impairment Gains (Losses) on Held-to-maturity Securities [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance at the beginning of the period | 0 | 0 | (4,163) | |
Other comprehensive income (loss) before reclassification: | ||||
Accretion of non-credit other-than-temporary impairment loss | 513 | |||
Non-credit losses included in basis of securities sold | 3,625 | |||
Reclassifications from other comprehensive income (loss) to net income: | ||||
Non-credit other-than-temporary impairment to credit other-than-temporary impairment1 | [3] | 25 | ||
Total other comprehensive income (loss) | 0 | 0 | 4,163 | |
Balance at the end of the period | $ 0 | $ 0 | $ 0 | |
[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). | |||
[3] | Recorded in "Other" non-interest income on the Statements of Income. Amount represents a debit (decrease to other income (loss)). |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plan, Pension, Insignificant, Annual Report Date | Jun. 30, 2019 | ||
Qualified Defined Contribution Plan Pentegra Defined Contribution Plan[Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 2,329 | $ 1,513 | $ 1,474 |
Benefit Equalization Plan Deferred Benefit Component [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | $ 0 |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 1,289 | ||
Benefit Equalization Plan Deferred Compensation Component [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Deferred compensation component | $ 7,048 | $ 6,065 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefit Plans (Pentegra DB Plan Net Pension Cost and Funded Status) (Details) - Pentegra Defined Benefit Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2020 | Jul. 01, 2019 | Jul. 01, 2018 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net pension cost charged to compensation and benefits expense, excluding fees | $ 840 | $ 672 | $ 3,500 | ||||
Pentegra Defined Benefit Plan funded status as of July 1 | [1] | 108.20% | 108.60% | 111.00% | |||
Fhlbank's funded status as of July 1 | 99.90% | 104.60% | 111.10% | ||||
[1] | The funded status as of July 1, 2020 is preliminary and may increase because the plan’s participants are permitted to make contributions for the plan year ended June 30, 2020 through March 15, 2021. Contributions made on or before March 15, 2021, and designated for the plan year ended June 30, 2020, will be included in the final valuation as of July 1, 2020. The final funded status as of July 1, 2020 will not be available until the Form 5500 for the plan year July 1, 2020 through June 30, 2021 is filed (this Form 5500 is due to be filed no later than April 2022). The funded status as of July 1, 2019 is preliminary and may increase because the plan’s participants were permitted to make contributions for the plan year ended June 30, 2019 through March 15, 2020. Contributions made on or before March 15, 2020, and designated for the plan year ended June 30, 2019, will be included in the final valuation as of July 1, 2019. The final funded status as of July 1, 2019 will not be available until the Form 5500 for the plan year July 1, 2019 through June 30, 2020 is filed (this Form 5500 is due to be filed no later than April 2021). |
Pension And Other Postretirem_5
Pension And Other Postretirement Benefit Plans (Benefit Obligation Fair Value And Funded Status) (Details) - Benefit Equalization Plan Deferred Benefit Component [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 13,372 | $ 14,519 | |
Service cost | 0 | 236 | $ 222 |
Interest cost | 389 | 566 | 506 |
Net (gains) losses | 1,177 | 1,806 | |
Benefits paid | (910) | (910) | |
Curtailment | 0 | (2,845) | |
Settlements | (617) | 0 | |
Projected benefit obligation at end of year | 13,411 | 13,372 | 14,519 |
Change in plan assets: | |||
Fair value of plan assets at beginning of the year | 0 | 0 | |
Employer contributions | 1,527 | 910 | |
Benefits paid | (910) | (910) | |
Settlements | (617) | 0 | |
Fair value of plan assets at end of the year | 0 | 0 | $ 0 |
FUNDED STATUS | $ (13,411) | $ (13,372) |
Pension And Other Postretirem_6
Pension And Other Postretirement Benefit Plans (Components Of The Net Periodic Pension Cost For The Defined Benefit Portion) (Details) - Benefit Equalization Plan Deferred Benefit Component [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 236 | $ 222 |
Interest cost | 389 | 566 | 506 |
Amortization of net losses | 158 | 334 | 399 |
Settlement charges | 133 | 0 | 0 |
NET PERIODIC POSTRETIREMENT BENEFIT COST | $ 680 | $ 1,136 | $ 1,127 |
Pension And Other Postretirem_7
Pension And Other Postretirement Benefit Plans (Benefit Obligation Key Assumptions) (Details) - Benefit Equalization Plan Deferred Benefit Component [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit obligation | 2.25% | 3.00% | 4.00% |
Discount rate - net periodic benefit cost | 3.00% | 4.00% | 3.50% |
Salary increases - benefit obligation | 0.00% | 0.00% | 4.89% |
Amortization period (years) - net periodic benefit cost | 5 years 6 months 10 days | 6 years 29 days | 6 years 3 months 3 days |
Accumulated benefit obligation | $ 13,411 | $ 13,372 | $ 11,105 |
Pension And Other Postretirem_8
Pension And Other Postretirement Benefit Plans (Estimate Future Payments) (Details) - Nonqualified Supplemental Employee Retirement Plan [Member] $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 1,289 |
2022 | 1,284 |
2023 | 1,303 |
2024 | 486 |
2025 | 504 |
2026 through 2030 | $ 2,808 |
Fair Values (Fair Value Summary
Fair Values (Fair Value Summary) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets: | |||
Cash and due from banks | $ 4,570,415 | $ 1,917,166 | |
Trading securities | 2,623,376 | 2,812,562 | |
Available-for-sale securities | 6,741,310 | 7,182,500 | |
Held-to-maturity securities, Carrying Value | 2,746,992 | 3,569,958 | |
Held-to-maturity securities | 2,750,116 | 3,556,938 | |
Accrued interest receivable | 97,718 | 143,765 | |
Derivative assets | 148,868 | 154,804 | |
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 129,539 | 129,994 |
Liabilities: | |||
Accrued interest payable | 45,575 | 117,580 | |
Derivative liabilities | 4,404 | 202 | |
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (325,241) | (106,506) |
Carrying Value [Member] | |||
Assets: | |||
Cash and due from banks | 4,570,415 | 1,917,166 | |
Interest-bearing deposits | 760,297 | 921,453 | |
Securities purchased under agreements to resell | 2,600,000 | 4,750,000 | |
Federal funds sold | 1,780,000 | 850,000 | |
Trading securities | 2,623,376 | 2,812,562 | |
Available-for-sale securities | 6,741,310 | 7,182,500 | |
Held-to-maturity securities, Carrying Value | 2,746,992 | 3,569,958 | |
Advances | 21,226,823 | 30,241,315 | |
Mortgage loans held for portfolio, net of allowance | 9,205,207 | 10,633,009 | |
Accrued interest receivable | 97,718 | 143,765 | |
Derivative assets | 148,868 | 154,804 | |
Liabilities: | |||
Deposits | 1,229,361 | 790,640 | |
Mandatorily redeemable capital stock | 1,624 | 2,415 | |
Accrued interest payable | 45,575 | 117,580 | |
Derivative liabilities | 4,404 | 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 | 10,882,417 | 27,447,911 | |
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 37,648,077 | 32,013,314 | |
Fair Value [Member] | |||
Assets: | |||
Cash and due from banks | 4,570,415 | 1,917,166 | |
Interest-bearing deposits | 760,297 | 921,453 | |
Securities purchased under agreements to resell | 2,600,000 | 4,750,000 | |
Federal funds sold | 1,780,000 | 850,000 | |
Trading securities | 2,623,376 | 2,812,562 | |
Available-for-sale securities | 6,741,310 | 7,182,500 | |
Held-to-maturity securities | 2,750,116 | 3,556,938 | |
Advances | 21,360,450 | 30,295,813 | |
Mortgage loans held for portfolio, net of allowance | 9,454,112 | 10,983,356 | |
Accrued interest receivable | 97,718 | 143,765 | |
Derivative assets | 148,868 | 154,804 | |
Liabilities: | |||
Deposits | 1,229,361 | 790,640 | |
Mandatorily redeemable capital stock | 1,624 | 2,415 | |
Accrued interest payable | 45,575 | 117,580 | |
Derivative liabilities | 4,404 | 202 | |
Fair Value [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 37,978 | 34,850 | |
Fair Value [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (37,978) | (34,850) | |
Fair Value [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 10,882,601 | 27,448,021 | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 37,835,135 | 32,103,154 | |
Level 1 [Member] | |||
Assets: | |||
Cash and due from banks | 4,570,415 | 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 | 1,624 | 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 | 760,297 | 921,453 | |
Securities purchased under agreements to resell | 2,600,000 | 4,750,000 | |
Federal funds sold | 1,780,000 | 850,000 | |
Trading securities | 2,623,376 | 2,812,562 | |
Available-for-sale securities | 6,741,310 | 7,182,500 | |
Held-to-maturity securities | 2,674,446 | 3,476,084 | |
Advances | 21,360,450 | 30,295,813 | |
Mortgage loans held for portfolio, net of allowance | 9,441,474 | 10,981,458 | |
Accrued interest receivable | 97,718 | 143,765 | |
Derivative assets | 19,329 | 24,810 | |
Liabilities: | |||
Deposits | 1,229,361 | 790,640 | |
Mandatorily redeemable capital stock | 0 | 0 | |
Accrued interest payable | 45,575 | 117,580 | |
Derivative liabilities | 329,645 | 106,708 | |
Level 2 [Member] | Industrial revenue bond [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), asset | 37,978 | 34,850 | |
Level 2 [Member] | Financing lease payable [Member] | |||
Other Asset (Liability): | |||
Other asset (liability), liability | (37,978) | (34,850) | |
Level 2 [Member] | Consolidated Obligation Discount Notes [Member] | |||
Liabilities: | |||
Consolidated obligation discount notes | 10,882,601 | 27,448,021 | |
Level 2 [Member] | Consolidated Obligation Bonds [Member] | |||
Liabilities: | |||
Consolidated obligation bonds | 37,835,135 | 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 | 75,670 | 80,854 | |
Advances | 0 | 0 | |
Mortgage loans held for portfolio, net of allowance | 12,638 | 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 and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 2019, respectively. | ||
[2] | Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty. |
Fair Values (Hierarchy Level fo
Fair Values (Hierarchy Level for Financial Assets And Liabilities - Recurring And Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | $ 2,623,376 | $ 2,812,562 | |||
Available-for-sale securities | 6,741,310 | 7,182,500 | |||
Total derivative assets | 148,868 | 154,804 | |||
Netting adjustments and cash collateral, Derivative Assets | [1],[2] | 129,539 | 129,994 | ||
Total derivative liabilities | 4,404 | 202 | |||
Netting adjustments and cash collateral, Derivative Liabilities | [1],[2] | (325,241) | (106,506) | ||
Held-to-maturity securities | 2,750,116 | 3,556,938 | |||
U.S. Treasury obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 1,298,518 | 1,530,518 | |||
Available-for-sale securities | 3,546,325 | 4,261,791 | |||
GSE Debenture [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 431,875 | 416,025 | |||
U.S. obligation MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Held-to-maturity securities | 70,890 | 92,879 | |||
GSE MBS [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 892,983 | 866,019 | |||
Available-for-sale securities | 3,194,985 | 2,920,709 | |||
Held-to-maturity securities | 2,603,556 | 3,383,205 | |||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,623,376 | 2,812,562 | |||
Available-for-sale securities | 6,741,310 | 7,182,500 | |||
Total derivative assets | 19,329 | 24,810 | |||
Total derivative liabilities | 329,645 | 106,708 | |||
Held-to-maturity securities | 2,674,446 | 3,476,084 | |||
Mortgage loans held for portfolio | 9,441,474 | 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 | 75,670 | 80,854 | |||
Mortgage loans held for portfolio | 12,638 | 1,898 | |||
Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,623,376 | 2,812,562 | |||
Available-for-sale securities | 6,741,310 | 7,182,500 | |||
Total derivative assets | 148,868 | 154,804 | |||
Total derivative liabilities | 4,404 | 202 | |||
Held-to-maturity securities | 2,750,116 | 3,556,938 | |||
Mortgage loans held for portfolio | 9,454,112 | 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] | 129,539 | 129,994 | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (325,241) | (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] | 129,539 | 129,994 | ||
Netting adjustments and cash collateral, Derivative Liabilities | [2] | (325,241) | (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 | 2,623,376 | 2,812,562 | |||
Available-for-sale securities | 6,741,310 | 7,182,500 | |||
Total derivative assets | 19,329 | 24,810 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 9,384,015 | 10,019,872 | |||
Total derivative liabilities | 329,645 | 106,708 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 329,645 | 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 | 18,675 | 24,315 | |||
Total derivative liabilities | 329,641 | 106,683 | |||
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 | 1,298,518 | 1,530,518 | |||
Available-for-sale securities | 3,546,325 | 4,261,791 | |||
Recurring fair value measurements [Member] | Level 2 [Member] | GSE Debenture [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 431,875 | 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 | 892,983 | 866,019 | |||
Available-for-sale securities | 3,194,985 | 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 | 654 | 495 | |||
Total derivative liabilities | 4 | 25 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 2,623,376 | 2,812,562 | |||
Available-for-sale securities | 6,741,310 | 7,182,500 | |||
Total derivative assets | 148,868 | 154,804 | |||
TOTAL FAIR VALUE MEASUREMENTS - ASSETS | 9,513,554 | 10,149,866 | |||
Total derivative liabilities | 4,404 | 202 | |||
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES | 4,404 | 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 | 148,214 | 154,309 | |||
Total derivative liabilities | 4,400 | 177 | |||
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 | 1,298,518 | 1,530,518 | |||
Available-for-sale securities | 3,546,325 | 4,261,791 | |||
Recurring fair value measurements [Member] | Fair Value [Member] | GSE Debenture [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trading securities | 431,875 | 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 | 892,983 | 866,019 | |||
Available-for-sale securities | 3,194,985 | 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 | 654 | 495 | |||
Total derivative liabilities | 4 | 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 | 13,073 | [3] | 2,053 | [4] | |
Mortgage loans held for portfolio | 12,668 | [3] | 1,909 | [4] | |
Real estate owned | 405 | [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 | 13,073 | [3] | 2,053 | [4] | |
Mortgage loans held for portfolio | 12,668 | [3] | 1,909 | [4] | |
Real estate owned | $ 405 | [3] | $ 144 | [4] | |
[1] | Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $455,080,000 and $236,700,000 as of December 31, 2020 and 2019, respectively. Cash collateral received was $300,000 and $200,000 as of December 31, 2020 and 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, including related accrued interest, held or placed with the same clearing agent or derivative counterparty. | ||||
[3] | Includes assets adjusted to fair value during the year ended December 31, 2020 and still outstanding as of December 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 | 12 Months Ended | |
Dec. 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 | $ 698,296,045 | $ 966,413,924 |
Carrying value included in other liabilities | $ 71,358 | $ 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) | 650 | $ 470 |
Other assets (Note 16) | 90,706 | 100,122 |
Customer Securities Held By Subcustodian | 57,778,393 | |
Standby Letters of Credit Outstanding [Member] | ||
Off-balance Sheet Commitments: | ||
Carrying value included in other liabilities | $ 1,554 | 1,470 |
Commitment Expiration Year (no later than) | 2024 | |
Term (up to) | 6 | |
Forward Settling Advance Commitments [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | 24 | |
Commitments for standby bond purchases [Member] | ||
Off-balance Sheet Commitments: | ||
Commitment Expiration Year (no later than) | 2023 | |
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member] | ||
Off-balance Sheet Commitments: | ||
Term (up to) | 60 | |
Shawnee County Financing Lease Agreement [Member] | ||
Off-balance Sheet Commitments: | ||
Debt Instrument, Issuance Date | Jun. 28, 2017 | |
Debt Instrument, Issuer | Shawnee County, Kansas | |
Debt Instrument, Face Amount | $ 36,000 | |
Debt Instrument, Maturity Date | Dec. 31, 2027 | |
Debt Instrument, Term | 127 months | |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |
Debt Instrument, Frequency of Periodic Payment | annual | |
Debt Instrument, Date of First Required Payment | Dec. 1, 2018 | |
Shawnee County Industrial Revenue Bond [Member] | ||
Off-balance Sheet Commitments: | ||
Industrial Revenue Bonds Instrument Issuance Date | Jun. 28, 2017 | |
Industrial Revenue Bonds Instrument Issuer | Shawnee County, Kansas | |
Property Tax Abatement Term | 10 years | |
Industrial Revenue Bonds Instrument Face Amount | $ 36,000 | |
Industrial Revenue Bonds Instrument Maturity Date | Dec. 31, 2027 | |
Industrial Revenue Bonds Instrument Term | 127 months | |
Industrial Revenue Bonds Instrument Interest Rate Stated Percentage | 2.00% | |
IndustrialRevenueBondsInstrumentFrequencyofPeriodicPayment | annual | |
Industrial Revenue Bonds Instrument Receipt Date of First Required Payment | Dec. 1, 2018 | |
Other Assets [Member] | Shawnee County Industrial Revenue Bond [Member] | ||
Off-balance Sheet Commitments: | ||
Other assets (Note 16) | $ 35,000 | 35,000 |
Other Liabilities [Member] | Shawnee County Financing Lease Agreement [Member] | ||
Off-balance Sheet Commitments: | ||
Other Borrowings | $ 35,000 | $ 35,000 |
Commitments And Contingencies_3
Commitments And Contingencies (Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Standby letters of credit outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | $ 5,436,165 | $ 4,764,724 |
Expire After One Year | 4,251 | 4,335 |
Total | 5,440,416 | 4,769,059 |
Advance commitments outstanding [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 19,693 | 64,282 |
Expire After One Year | 21,001 | 15,693 |
Total | 40,694 | 79,975 |
Principal commitments for standby bond purchase agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 380,615 | 0 |
Expire After One Year | 317,710 | 655,065 |
Total | 698,325 | 655,065 |
Commitments to issue consolidated bonds, at par [Member] | ||
Loss Contingencies [Line Items] | ||
Expire Within One Year | 4,000 | 0 |
Expire After One Year | 0 | 0 |
Total | 4,000 | 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 | 133,456 | 221,800 |
Expire After One Year | 0 | 0 |
Total | $ 133,456 | $ 221,800 |
Transactions With Stockholder_2
Transactions With Stockholders (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
BOKF, N.A. [Member] | |
Related Party Transaction [Line Items] | |
Mortgage loans acquired | $ 6,748 |
Transactions With Stockholder_3
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Outstanding Advances | $ 21,226,823 | $ 30,241,315 |
Outstanding Deposits | 1,229,361 | 790,640 |
Ten Percent Owner [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 340,349 | $ 772,607 |
Regulatory Capital Stock, Percent Of Total | 21.60% | 43.60% |
Outstanding Advances | $ 7,460,000 | $ 13,085,000 |
Outstanding Advances, Percent of Total | 35.60% | 43.40% |
Outstanding Deposits | $ 713 | $ 23,487 |
Outstanding Deposits, Percent of Total | 0.10% | 3.00% |
Ten Percent Owner [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 825 | $ 184,782 |
Regulatory Capital Stock, Percent Of Total | 0.20% | 41.10% |
Ten Percent Owner [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 339,524 | $ 587,825 |
Regulatory Capital Stock, Percent Of Total | 29.20% | 44.50% |
MidFirst Bank [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 340,349 | $ 386,325 |
Regulatory Capital Stock, Percent Of Total | 21.60% | 21.80% |
Outstanding Advances | $ 7,460,000 | $ 8,585,000 |
Outstanding Advances, Percent of Total | 35.60% | 28.50% |
Outstanding Deposits | $ 713 | $ 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 | $ 825 | $ 500 |
Regulatory Capital Stock, Percent Of Total | 0.20% | 0.10% |
MidFirst Bank [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 339,524 | $ 385,825 |
Regulatory Capital Stock, Percent Of Total | 29.20% | 29.20% |
BOKF, N.A. [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 386,282 | |
Regulatory Capital Stock, Percent Of Total | 21.80% | |
Outstanding Advances | $ 4,500,000 | |
Outstanding Advances, Percent of Total | 14.90% | |
Outstanding Deposits | $ 22,457 | |
Outstanding Deposits, Percent of Total | 2.90% | |
BOKF, N.A. [Member] | Total Class A Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 184,282 | |
Regulatory Capital Stock, Percent Of Total | 41.00% | |
BOKF, N.A. [Member] | Total Class B Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Regulatory Capital Stock, Total Par Value | $ 202,000 | |
Regulatory Capital Stock, Percent Of Total | 15.30% |
Transactions With Stockholder_4
Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping-Directors) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Advances, Outstanding Amount | $ 21,226,823 | $ 30,241,315 |
Deposits, Outstanding Amount | 1,229,361 | 790,640 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 31,498 | $ 12,038 |
TOTAL CAPITAL STOCK, Percent Of Total | 2.00% | 0.70% |
Advances, Outstanding Amount | $ 161,021 | $ 178,945 |
Advances, Percent of Total | 0.80% | 0.60% |
Deposits, Outstanding Amount | $ 25,459 | $ 15,748 |
Deposits, Percent of Total | 2.10% | 2.00% |
Director [Member] | Class A [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 10,298 | $ 6,467 |
TOTAL CAPITAL STOCK, Percent Of Total | 2.50% | 1.40% |
Director [Member] | Class B [Member] | ||
Related Party Transaction [Line Items] | ||
TOTAL CAPITAL STOCK, Outstanding Amount | $ 21,200 | $ 5,571 |
TOTAL CAPITAL STOCK, Percent Of Total | 1.80% | 0.40% |
Transactions With Stockholder_5
Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details) - Director [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Mortgage loans acquired | $ 102,519 | $ 189,724 |
Mortgage loans acquired, Percent of Total | 3.80% | 4.90% |
Transactions With Other FHLBa_3
Transactions With Other FHLBanks (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Federal Home Loan Banks [Abstract] | ||||
Average overnight interbank loan balances to other FHLBanks | [1] | $ 2,883 | $ 2,529 | $ 1,466 |
Average overnight interbank loan balances from other FHLBanks | [1] | 6,831 | 8,082 | 3,562 |
Average deposit balances with FHLBank of Chicago for interbank transactions | [2] | 6,981 | 1,361 | 1,256 |
Transaction charges paid to FHLBank of Chicago for transaction service fees | [3] | 7,819 | 6,938 | 5,687 |
Par amount of purchases of consolidated obligations issued on behalf of other FHLBanks | [4] | 0 | 0 | 0 |
Outstanding fair value of Investment in consolidated obligations of other FHLBanks | 113,328 | 111,173 | ||
Interest income on investments in consolidated obligations of other FHLBanks | $ 3,429 | $ 3,429 | $ 3,429 | |
[1] | Occasionally, FHLBank loans (or borrows) short-term funds to (from) other FHLBanks. Interest income on loans to other FHLBanks is included in Other Interest Income and interest expense on borrowings from other FHLBanks is included in Other Interest Expense on the Statements of Income. | |||
[2] | Balances are interest bearing and are classified on the Statements of Condition as interest-bearing deposits. | |||
[3] | Fees are calculated monthly based on outstanding loans at the per annum rate in effect at origination in addition to a flat fee for participating in the MPF Program. | |||
[4] | Purchases of consolidated obligations issued on behalf of one FHLBank and purchased by FHLBank occur at market prices with third parties and are accounted for in the same manner as similarly classified investments. Outstanding fair value balances totaling $113,328,000 and $111,173,000 as of December 31, 2020 and 2019, respectively, are included in the non-MBS GSE debentures totals presented in Note 4. Interest income earned on these securities totaled $3,429,000 for each of the years ended December 31, 2020, 2019, and 2018, respectively. |