Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Feb. 28, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Federal Home Loan Bank of Atlanta | ' |
Entity Central Index Key | '0001331465 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,614,397 |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filing Status | 'No | ' |
Entity Well Known Seasoned Issued | 'No | ' |
Entity Public Float | $0 | ' |
Statements_of_Condition
Statements of Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $4,374 | $4,083 |
Interest-bearing deposits (including deposits with another FHLBank of $1 as of December 31, 2013 and 2012) | 1,007 | 1,005 |
Securities purchased under agreements to resell | 0 | 250 |
Federal funds sold | 1,795 | 7,235 |
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 |
Available-for-sale securities | 2,299 | 2,676 |
Held-to-maturity securities (fair value of $20,146 and $17,124 as of December 31, 2013 and 2012, respectively) | 20,176 | 16,918 |
Total investment securities | 24,142 | 21,964 |
Advances | 89,588 | 87,503 |
Mortgage loans held for portfolio, net of allowance for credit losses on mortgage loans of $11 as of December 31, 2013 and 2012 | 918 | 1,244 |
Accrued interest receivable | 199 | 240 |
Derivative assets | 53 | 13 |
Premises and equipment, net | 29 | 32 |
Other assets | 211 | 136 |
Total assets | 122,316 | 123,705 |
Liabilities | ' | ' |
Interest-bearing Deposit Liabilities, Domestic | 1,752 | 2,094 |
Consolidated obligations, net: | ' | ' |
Discount notes | 32,202 | 31,737 |
Bonds | 80,728 | 82,947 |
Total consolidated obligations, net | 112,930 | 114,684 |
Mandatorily redeemable capital stock | 24 | 40 |
Accrued interest payable | 183 | 229 |
Affordable Housing Program payable | 74 | 80 |
Derivative liabilities | 187 | 158 |
Other liabilities | 514 | 145 |
Total liabilities | 115,664 | 117,430 |
Commitments and contingencies (Note 20) | ' | ' |
Capital | ' | ' |
Total capital stock Class B putable | 4,883 | 4,898 |
Retained earnings: | ' | ' |
Restricted | 141 | 73 |
Unrestricted | 1,516 | 1,362 |
Total retained earnings | 1,657 | 1,435 |
Accumulated other comprehensive income (loss) | 112 | -58 |
Total capital | 6,652 | 6,275 |
Total liabilities and capital | 122,316 | 123,705 |
Subclass B1 | ' | ' |
Capital | ' | ' |
Total capital stock Class B putable | 946 | 1,160 |
Subclass B2 | ' | ' |
Capital | ' | ' |
Total capital stock Class B putable | $3,937 | $3,738 |
Statements_of_Condition_Parent
Statements of Condition (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Deposits with other FHLBanks | $1 | $1 |
Other FHLBank's bonds | 65 | 77 |
Held-to-maturity securities, fair value | 20,146 | 17,124 |
Allowance for credit losses on mortgage loans | $11 | $11 |
Capital stock Class B putable par value (per share) | $100 | $100 |
Subclass B1 | ' | ' |
Capital stock, shares issued | 10 | 12 |
Capital stock, shares outstanding | 10 | 12 |
Subclass B2 | ' | ' |
Capital stock, shares issued | 39 | 37 |
Capital stock, shares outstanding | 39 | 37 |
Statements_of_Income
Statements of Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income | ' | ' | ' |
Advances | $230 | $281 | $248 |
Prepayment fees on advances, net | 3 | 13 | 10 |
Interest-bearing deposits | 5 | 7 | 4 |
Securities purchased under agreements to resell | 1 | 1 | 0 |
Federal funds sold | 9 | 18 | 24 |
Trading securities | 101 | 118 | 156 |
Available-for-sale securities | 129 | 160 | 172 |
Held-to-maturity securities | 252 | 299 | 398 |
Mortgage loans | 61 | 76 | 97 |
Total interest income | 791 | 973 | 1,109 |
Consolidated obligations: | ' | ' | ' |
Discount notes | 27 | 25 | 17 |
Bonds | 421 | 568 | 628 |
Interest-bearing deposits | 1 | 1 | 1 |
Mandatorily redeemable capital stock | 1 | 3 | 4 |
Total interest expense | 450 | 597 | 650 |
Net interest income | 341 | 376 | 459 |
Provision for credit losses | 5 | 6 | 5 |
Net interest income after provision for credit losses | 336 | 370 | 454 |
Noninterest income (loss) | ' | ' | ' |
Total other-than-temporary impairment losses | -1 | 0 | -55 |
Net amount of impairment losses recorded in (reclassified from) other comprehensive income (loss) | 1 | -16 | -63 |
Net impairment losses recognized in earnings | 0 | -16 | -118 |
Net (losses) gains on trading securities | -100 | -67 | 2 |
Net gains (losses) on derivatives and hedging activities | 204 | 117 | -9 |
Letters of credit fees | 20 | 18 | 19 |
Gain on litigation settlements | 33 | 0 | 0 |
Other | 9 | 3 | 2 |
Total noninterest income (loss) | 166 | 55 | -104 |
Noninterest expense | ' | ' | ' |
Compensation and benefits | 69 | 68 | 75 |
Other operating expenses | 44 | 40 | 40 |
Finance Agency | 8 | 10 | 11 |
Office of Finance | 6 | 6 | 5 |
Other | 0 | 1 | -8 |
Total noninterest expense | 127 | 125 | 123 |
Income before assessments | 375 | 300 | 227 |
Assessments: | ' | ' | ' |
Affordable Housing Program | 37 | 30 | 21 |
REFCORP | 0 | 0 | 22 |
Total assessments | 37 | 30 | 43 |
Net income | $338 | $270 | $184 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $338 | $270 | $184 |
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities: | ' | ' | ' |
Noncredit losses transferred from held-to-maturity securities | -1 | 0 | -37 |
Net change in fair value on other-than-temporarily impaired available-for-sale securities | 167 | 341 | -69 |
Reclassification of noncredit portion of impairment losses included in net income | 0 | 16 | 100 |
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities | 166 | 357 | -6 |
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities: | ' | ' | ' |
Noncredit losses on held-to-maturity securities | -1 | 0 | -37 |
Reclassification of noncredit portion from held-to-maturity securities to available-for-sale securities | 1 | 0 | 37 |
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities | 0 | 0 | 0 |
Other comprehensive income (loss) related to pension and postretirement benefit plans | 4 | -4 | -3 |
Total other comprehensive income (loss) | 170 | 353 | -9 |
Total comprehensive income | $508 | $623 | $175 |
Statements_of_Capital
Statements of Capital (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | $6,275 | $6,561 | $7,946 |
Issuance of capital stock | 4,960 | 1,797 | 672 |
Repurchase/redemption of capital stock | -4,966 | -2,555 | -2,052 |
Net shares reclassified to mandatorily redeemable capital stock | -9 | -62 | -126 |
Comprehensive Income (Loss), Net of Federal Home Loan Bank Assessments, Attributable to Parent | 508 | 623 | 175 |
Cash dividends on capital stock | -116 | -89 | -54 |
Ending balance | 6,652 | 6,275 | 6,561 |
Capital Stock Class B Putable | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance (shares) | 49 | 57 | 72 |
Beginning balance | 4,898 | 5,718 | 7,224 |
Issuance of capital stock (shares) | 50 | 18 | 7 |
Issuance of capital stock | 4,960 | 1,797 | 672 |
Repurchase/redemption of capital stock (shares) | -50 | -25 | -21 |
Repurchase/redemption of capital stock | -4,966 | -2,555 | -2,052 |
Net shares reclassified to mandatorily redeemable capital stock (shares) | 0 | -1 | -1 |
Net shares reclassified to mandatorily redeemable capital stock | -9 | -62 | -126 |
Ending balance (shares) | 49 | 49 | 57 |
Ending balance | 4,883 | 4,898 | 5,718 |
Retained Earnings | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | 1,435 | 1,254 | 1,124 |
Comprehensive Income (Loss), Net of Federal Home Loan Bank Assessments, Attributable to Parent | 338 | 270 | 184 |
Cash dividends on capital stock | -116 | -89 | -54 |
Ending balance | 1,657 | 1,435 | 1,254 |
Retained Earnings, Restricted | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | 73 | 19 | 0 |
Comprehensive Income (Loss), Net of Federal Home Loan Bank Assessments, Attributable to Parent | 68 | 54 | 19 |
Ending balance | 141 | 73 | 19 |
Retained Earnings, Unrestricted | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | 1,362 | 1,235 | 1,124 |
Comprehensive Income (Loss), Net of Federal Home Loan Bank Assessments, Attributable to Parent | 270 | 216 | 165 |
Cash dividends on capital stock | -116 | -89 | -54 |
Ending balance | 1,516 | 1,362 | 1,235 |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Beginning balance | -58 | -411 | -402 |
Comprehensive Income (Loss), Net of Federal Home Loan Bank Assessments, Attributable to Parent | 170 | 353 | -9 |
Ending balance | $112 | ($58) | ($411) |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income | $338 | $270 | $184 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | -84 | -50 | -34 |
Provision for credit losses | 5 | 6 | 5 |
Loss due to change in net fair value adjustment on derivative and hedging activities | 54 | 111 | 482 |
Net change in fair value adjustment on trading securities | 100 | 67 | -2 |
Net impairment losses recognized in earnings | 0 | 16 | 118 |
Gain on extinguishment of debt | -6 | 0 | 0 |
Loss on disposal of fixed assets and capital software costs | 0 | 1 | 0 |
Net change in: | ' | ' | ' |
Accrued interest receivable | 41 | 74 | 74 |
Other assets | -78 | 12 | 25 |
Affordable Housing Program payable | -10 | -32 | -19 |
Accrued interest payable | -46 | -57 | -71 |
Payable to REFCORP | 0 | 0 | -20 |
Other liabilities | 63 | 4 | -19 |
Total adjustments | 39 | 152 | 539 |
Net cash provided by operating activities | 377 | 422 | 723 |
Net change in: | ' | ' | ' |
Interest-bearing deposits | 1,200 | 706 | -1,575 |
Securities purchased under agreements to resell | 250 | -250 | 0 |
Federal funds sold | 5,440 | 5,395 | 3,071 |
Trading securities: | ' | ' | ' |
Proceeds from maturities | 611 | 690 | 272 |
Available-for-sale securities: | ' | ' | ' |
Proceeds from maturities | 565 | 617 | 737 |
Held-to-maturity securities: | ' | ' | ' |
Net change in short-term | 550 | 100 | 540 |
Proceeds from maturities of long-term | 4,034 | 4,220 | 4,324 |
Purchases of long-term | -7,540 | -5,000 | -4,124 |
Advances: | ' | ' | ' |
Proceeds from principal collected | 161,781 | 164,894 | 71,497 |
Made | -165,786 | -165,990 | -68,998 |
Mortgage loans: | ' | ' | ' |
Proceeds from principal collected | 277 | 368 | 385 |
Proceeds from sale of held for sale | 18 | 0 | 0 |
Proceeds from sale of foreclosed assets | 27 | 13 | 17 |
Purchase of premise, equipment, and software | -3 | -4 | -6 |
Net cash provided by investing activities | 1,424 | 5,759 | 6,140 |
Financing activities | ' | ' | ' |
Net change in deposits | -352 | -500 | -477 |
Net payments on derivatives containing a financing element | -157 | -347 | -502 |
Proceeds from issuance of consolidated obligations: | ' | ' | ' |
Discount notes | 312,401 | 331,292 | 833,353 |
Bonds | 74,635 | 67,479 | 85,905 |
Payments for debt issuance costs | -8 | -10 | -14 |
Payments for maturing and retiring consolidated obligations: | ' | ' | ' |
Discount notes | -311,935 | -323,892 | -832,931 |
Bonds | -75,947 | -74,971 | -90,393 |
Proceeds from issuance of capital stock | 4,960 | 1,797 | 672 |
Payments for repurchase/redemption of capital stock | -4,966 | -2,555 | -2,052 |
Payments for repurchase/redemption of mandatorily redeemable capital stock | -25 | -308 | -369 |
Cash dividends paid | -116 | -89 | -54 |
Net cash used in financing activities | -1,510 | -2,104 | -6,862 |
Net increase in cash and due from banks | 291 | 4,077 | 1 |
Cash and due from banks at beginning of the year | 4,083 | 6 | 5 |
Cash and due from banks at end of the year | 4,374 | 4,083 | 6 |
Cash paid for: | ' | ' | ' |
Interest | 516 | 679 | 759 |
Affordable Housing Program assessments, net | 43 | 59 | 38 |
REFCORP assessments | 0 | 0 | 42 |
Noncash investing and financing activities: | ' | ' | ' |
Net shares reclassified to mandatorily redeemable capital stock | 9 | 62 | 126 |
Held-to-maturity securities acquired with accrued liabilities | 309 | 0 | 0 |
Transfer of held-to-maturity securities to available-for-sale securities | 11 | 6 | 451 |
Transfers of mortgage loans to real estate owned | $28 | $16 | $17 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
The Federal Home Loan Bank of Atlanta (Bank), a federally chartered corporation, is one of 12 district Federal Home Loan Banks (FHLBanks). The FHLBanks are government-sponsored enterprises that serve the public by enhancing the availability of credit for residential mortgages and targeted community development. The Bank provides a readily available, competitively priced source of funds to its member institutions. The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members, and certain non-members that own the Bank's capital stock as a result of a merger or acquisition of the Bank's member, own the remaining capital stock to support business transactions still carried on the Bank's Statements of Condition. All holders of the Bank's capital stock are entitled to receive dividends on their capital stock, to the extent declared by the Bank's board of directors. | |
All federally insured depository institutions, insurance companies, and certified community development financial institutions chartered in the Bank's defined geographic district and engaged in residential housing finance are eligible to apply for membership. State and local housing authorities that meet certain statutory criteria may also borrow from the Bank. While eligible to borrow, housing associates are not members of the Bank and are not allowed to hold capital stock. All members must purchase and hold capital stock of the Bank. A member's stock requirement is based on the amount of its total assets, as well as the amount of certain of its business activities with the Bank. | |
The Federal Housing Finance Agency (Finance Agency) is the independent federal regulator of the FHLBanks and is responsible for ensuring that (1) the FHLBanks operate in a safe and sound manner, including maintenance of adequate capital and internal controls; (2) the operations and activities of the FHLBanks foster liquid, efficient, competitive and resilient national housing finance markets; (3) the FHLBanks comply with applicable laws and regulations; and (4) the FHLBanks carry out their housing finance mission through authorized activities that are consistent with the public interest. The Finance Agency also establishes policies and regulations covering the operations of the FHLBanks. Each FHLBank operates as a separate entity with its own management, employees, and board of directors. The Bank does not have any special purpose entities or any other types of off-balance sheet conduits. | |
The Federal Home Loan Banks Office of Finance (Office of Finance), a joint office of the FHLBanks, facilitates the issuance and servicing of the FHLBanks' debt instruments, known as consolidated obligations, and prepares the combined quarterly and annual financial reports of all 12 FHLBanks. As provided by the Federal Home Loan Bank Act of 1932 (FHLBank Act), as amended, and applicable regulations, the Bank's consolidated obligations are backed only by the financial resources of all 12 FHLBanks and are the primary source of funds for the Bank. | |
Deposits, other borrowings, and capital stock issued to members provide other funds. The Bank primarily uses these funds to provide advances to members. The Bank also provides members and non-members with correspondent banking services, such as safekeeping, wire transfer, and cash management services. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. | ||
Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank's best judgment of appropriate valuation methods. Although the Bank 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. | ||
Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting arrangements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. | ||
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. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 18—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. | ||
Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. These investments provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans which are classified as assets in the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty has the option to (1) place an equivalent amount of additional securities in safekeeping in the name of the Bank or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans conducted with investment-grade counterparties and are carried at cost. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. | ||
Investment Securities. The Bank classifies certain investments acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net (losses) gains on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank's liquidity position. | ||
The Bank carries at amortized cost, and classifies as held-to-maturity, investments for which it has both the ability and intent to hold to maturity, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. | ||
The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in accumulated other comprehensive income (loss). The Bank intends to hold its available-for-sale securities for an indefinite period of time, but may sell them prior to maturity in response to changes in interest rates, changes in prepayment risk, or other factors. | ||
Certain changes in circumstances may cause the Bank to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of a held-to-maturity security to another investment classification due to certain changes in circumstances, such as evidence of significant deterioration in the issuer's creditworthiness, is not considered inconsistent with its original classification. | ||
Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances: | ||
• | the Bank has an intent to sell the impaired debt security; | |
• | if, based on available evidence, the Bank believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or | |
• | the Bank does not expect to recover the entire amortized cost basis of the impaired debt security. | |
If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security's amortized cost basis and its fair value as of the Statements of Condition date. | ||
For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in accumulated other comprehensive income (loss), which is a component of capital. The credit loss on a debt security is limited to the amount of that security's unrealized losses. The total other-than-temporary impairment is presented in the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in accumulated other comprehensive income (loss). The remaining amount in the Statements of Income represents the credit loss for the period. | ||
For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security's amortized cost less the amount of other-than-temporary impairment recognized in accumulated other comprehensive income (loss) prior to the determination of this additional other-than-temporary impairment and its fair value. Any additional credit loss is limited to that security's unrealized losses, or the difference between the security's amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in accumulated other comprehensive income (loss) related to the security, is reclassified out of accumulated other comprehensive income (loss) and recognized in earnings. Any credit loss in excess of the related accumulated other comprehensive income (loss) is recorded as additional total other-than-temporary impairment loss and recognized in earnings. | ||
For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income (loss) to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income (loss). | ||
Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security's expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. | ||
Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the level-yield method. The Bank records interest on advances to interest income as earned. | ||
Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which the Bank funds a new advance within a short period of time from the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using a level-yield method. This amortization is recorded in advance interest income. | ||
If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance and the Bank records the net fees as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. | ||
Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. | ||
The Bank defers and amortizes premiums and accretes discounts paid to and received by the participating financial institutions (PFI), and mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. | ||
A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of the (1) U.S. government guarantee or insurance on the loan and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. | ||
A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. | ||
Finance Agency regulations require that mortgage loans held in the Bank's portfolios be credit enhanced so that the Bank's risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk and in some instances all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. | ||
Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank's portfolio as of the Statements of Condition date. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for each of its portfolio segments of financing receivables: advances and letters of credit, government-guaranteed or insured single-family residential mortgage loans held for portfolio, conventional single-family residential mortgage loans held for portfolio, multifamily residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. | ||
A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables. The Bank determined that no further disaggregation of the portfolio segments identified above is needed as the credit risk arising from these financing receivables is assessed and measured by the Bank at the portfolio segment level. | ||
The Bank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower, an ongoing review of each borrower's financial condition, and conservative collateral and lending policies to limit risk of loss while balancing each borrower's needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower's advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. In addition, community financial institutions (CFIs) are eligible to utilize expanded statutory collateral provisions for small business, agriculture loans, and community development loans. The Bank's capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank's overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances. | ||
Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it, or requires the borrower to specifically assign or place physical possession of the collateral with the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank's security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law; and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. | ||
Using a risk-based approach and taking into consideration each borrower's financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. As of December 31, 2013 and 2012, the Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit. | ||
The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. As of December 31, 2013 and 2012, no advance was past due, on nonaccrual status, or considered impaired. In addition, there were no troubled debt restructurings related to advances. | ||
Based upon the collateral held as security, the Bank's collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances as of December 31, 2013 and 2012. Accordingly, as of December 31, 2013 and 2012, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure. | ||
The Bank invested in government-guaranteed or insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. 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 insurance or guarantee with respect to defaulted government-guaranteed or insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance, or guarantees. Based on the Bank's assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or insured mortgage loan portfolio as of December 31, 2013 and 2012. | ||
Modified loans that are considered a troubled debt restructuring, and certain other identified conventional single-family residential mortgage loans, are evaluated individually for impairment. All other conventional single-family residential mortgage loans are evaluated collectively for impairment. The overall allowance for credit losses on conventional single-family residential mortgage loans is determined by an analysis (at least quarterly) that includes consideration of various data, such as past performance, current performance, loan portfolio characteristics, collateral valuations, industry data, and prevailing economic conditions. Inherent in the Bank's evaluation of past performance is an analysis of various credit enhancements at the individual master commitment level to determine the credit enhancement available to recover losses on conventional single-family residential mortgage loans under each individual master commitment. | ||
A modified loan that is considered a troubled debt restructuring is individually evaluated for impairment when determining its related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date as well as the economic loss attributable to delaying the original contractual principal and interest due dates. | ||
The Bank sold its multifamily residential mortgage loan portfolio in August 2013. Prior to the sale, multifamily residential mortgage loans were individually evaluated for impairment. An independent third-party loan review was performed annually on all the Bank's multifamily residential mortgage loans to identify credit risks and to assess the overall ability of the Bank to collect on those loans. The allowance for credit losses related to multifamily residential mortgage loans was comprised of specific reserves and a general reserve. The Bank established a specific reserve for all multifamily residential mortgage loans with a credit rating at or below a predetermined classification. A general reserve was maintained on multifamily residential mortgage loans not subject to specific reserve allocations to recognize the economic uncertainty and the imprecision inherent in estimating and measuring losses when evaluating reserves for individual loans. To establish the general reserve, the Bank assigned a risk classification to this population of loans. A specified percentage was allocated to the general reserve for designated risk classification levels. The loans and risk classification designations were reviewed by the Bank on an annual basis. | ||
The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include, but are not limited to, the occurrence of foreclosure or notification of a claim against any of the credit enhancements. A charge-off is recorded if the recorded investment in the loan will not be recovered. | ||
Term federal funds are generally short-term and their recorded balance approximates fair value. The Bank invests in federal funds with investment-grade counterparties that are only evaluated for purposes of an allowance for credit losses if the investment is not paid when due. As of December 31, 2013 and 2012, all investments in federal funds were repaid or expected to repay according to the contracted terms. | ||
Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans with investment-grade counterparties. The terms of these loans are structured such that if the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for the securities purchased under agreements to resell as of December 31, 2013 and 2012. | ||
Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is recorded at the lower of cost or fair value, less estimated selling costs. The Bank 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 recorded investment in the loan at the date of transfer from loans to REO. Any subsequent realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition. As of December 31, 2013 and 2012, REO was $19 and $18, respectively. | ||
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, including initial and variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify 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 (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities.” Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities.” A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank's risk management program and Finance Agency regulatory requirements, but does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. | ||
The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly affect the operating results of the Bank. | ||
The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. | ||
The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a 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 due to the Bank's determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when management decides to cease the specific hedging activity, the Bank will either terminate the derivative or continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings. | ||
The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt or purchased financial instruments (i.e., 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 it is determined that (1) the embedded derivative possesses 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 a non-qualifying 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 (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value and no portion of the contract could be designated as a hedging instrument. | ||
Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank's accumulated depreciation was $63 and $59 as of December 31, 2013 and 2012, respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware-three; office equipment-eight; office furniture and building improvements-10; and building-40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $5 for the years ended December 31, 2013 and 2012, and $4 for the year ended December 31, 2011. The Bank includes gains and losses on disposal of premises and equipment in noninterest income (loss). | ||
The Bank records the cost of purchased software and certain costs incurred in developing computer software for internal use at cost, less accumulated amortization. The Bank amortizes capitalized computer software cost using the straight-line method over an estimated useful life of five years. As of December 31, 2013 and 2012, the gross carrying amount of computer software included in other assets was $60 and $59, and accumulated amortization was $48 and $43, respectively. Amortization of computer software was $5 for the year ended December 31, 2013, and $6 for the years ended December 31, 2012 and 2011. The Bank includes gains and losses on disposal of capitalized software cost in noninterest income (loss). | ||
Consolidated Obligations. The Bank records consolidated obligations at amortized cost. The Bank accretes discounts and amortizes premiums as well as hedging basis adjustments on consolidated obligations to interest expense using the contractual interest method over the contractual terms to maturity of the consolidated obligations. | ||
The Bank defers and amortizes the concessions paid to dealers in connection with the sale of consolidated obligations using the contractual interest method over the contractual term of the corresponding consolidated obligation. When consolidated obligations are called prior to contractual maturity, the related unamortized concessions are written off to interest expense. The Office of Finance prorates the amount of these concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. Unamortized concessions are included in “Other assets” on the Statements of Condition and the amortization of such concessions is included in consolidated obligations interest expense. | ||
Mandatorily Redeemable Capital Stock. The Bank reclassifies stock subject to redemption from capital to a liability after 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. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is reflected as cash outflows in the financing activities section of the Statements of Cash Flows. | ||
If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense. | ||
Restricted Retained Earnings. In 2011, the FHLBanks entered into a Joint Capital Enhancement Agreement, as amended (Capital Agreement), which is intended to enhance the capital position of each FHLBank. Under the Capital Agreement, beginning in the third quarter of 2011, each FHLBank began to allocate 20 percent of its net income each quarter, historically paid to satisfy its Resolution Funding Corporation (REFCORP) obligation, to a separate retained earnings account until the account balance equals at least one percent of the Bank’s average balance of outstanding consolidated obligations for the previous quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. | ||
Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks' portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank's minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. As approved by the Office of Finance Board of Directors, effective January 1, 2011, each FHLBank's proportionate share of Office of Finance operating and capital expenditures is calculated using a formula that is based upon the following components: (1) two-thirds based upon each FHLBank's share of total consolidated obligations outstanding and (2) one-third based upon an equal pro rata allocation. | ||
Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP, providing subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP advances at interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank's related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the level-yield method over the life of the advance. | ||
REFCORP. Although FHLBanks are exempt from ordinary federal, state, and local taxation except for local real estate tax, the FHLBanks were required to make quarterly payments to REFCORP through the second quarter of 2011. These payments represented a portion of the interest on bonds issued by REFCORP, a corporation established by Congress in 1989 to provide funding for the resolution and disposition of insolvent savings institutions. |
Recently_Issued_and_Adopted_Ac
Recently Issued and Adopted Accounting Guidance | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued And Adopted Accounting Guidance | ' |
Recently Issued and Adopted Accounting Guidance | |
Recently Issued Accounting Guidance | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. In January 2014, the Financial Accounting Standards Board (FASB) issued guidance intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. The guidance clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This guidance is effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. The adoption of this guidance will result in increased disclosures, but is not expected to materially affect the Bank’s financial condition or results of operations. | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. In February 2013, the FASB issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. This guidance requires an entity to measure these obligations as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance is effective for interim and annual periods beginning on or after December 15, 2013 and will be applied retrospectively to obligations with joint and several liabilities existing at the beginning of an entity's fiscal year of adoption. This guidance will have no effect on the Bank's financial condition or results of operations. | |
Recently Adopted Accounting Guidance | |
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. In July 2013, the FASB issued guidance permitting the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. Treasury Rate and the London Interbank Offered Rate (LIBOR). This guidance was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Bank adopted this guidance effective July 17, 2013. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations, as the Bank has not designated any hedging relationships using OIS as the benchmark interest rate. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued amended guidance to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. For public entities, this amended guidance was effective for reporting periods beginning after December 15, 2012. The Bank adopted this guidance effective January 1, 2013, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. | |
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. In January 2013, the FASB issued guidance to clarify the scope of transactions that are subject to previously issued guidance on disclosures about offsetting assets and liabilities. The disclosure guidance on offsetting assets and liabilities applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with GAAP or subject to a master netting arrangement or similar agreement. This guidance was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. | |
Disclosures about Offsetting Assets and Liabilities. In December 2011, FASB issued disclosure requirements intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on an entity’s financial position. Entities are required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, entities are required to disclose collateral received and posted in connection with master netting agreements or similar arrangements. This guidance was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | ' |
Cash and Due from Banks | ' |
Cash and Due from Banks | |
As of December 31, 2013 and 2012, the balances include $4,363 and $4,073, respectively, held at a Federal Reserve Bank. | |
The Bank maintains collected cash balances with commercial banks in return for certain services. These agreements contain no legal restrictions regarding the withdrawal of funds. The average collected cash balances were $7 and less than $1 for the years ended December 31, 2013 and 2012, respectively. | |
As of December 31, 2013 and 2012, interest-bearing deposits include $1,006 and $1,004, respectively, in a business money market account with one of the Bank's members. |
Trading_Securities
Trading Securities | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Trading Securities [Abstract] | ' | |||||||||||
Trading Securities | ' | |||||||||||
Trading Securities | ||||||||||||
Major Security Types. Trading securities were as follows: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Government-sponsored enterprises debt obligations | $ | 1,601 | $ | 2,291 | ||||||||
Another FHLBank’s bond (1) | 65 | 77 | ||||||||||
State or local housing agency debt obligations | 1 | 2 | ||||||||||
Total | $ | 1,667 | $ | 2,370 | ||||||||
____________ | ||||||||||||
(1) | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. | |||||||||||
Net unrealized and realized (losses) gains on trading securities were as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net unrealized (losses) gains on trading securities held at year end | $ | (84 | ) | $ | (60 | ) | $ | 8 | ||||
Net realized/unrealized losses on trading securities sold/matured during the year | (16 | ) | (7 | ) | (6 | ) | ||||||
Net (losses) gains on trading securities | $ | (100 | ) | $ | (67 | ) | $ | 2 | ||||
Availableforsale_Securities
Available-for-sale Securities | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||||||||||||||||||||
During 2013, 2012, and 2011, the Bank transferred certain private-label MBS from its held-to-maturity portfolio to its available-for-sale portfolio. These securities represent private-label MBS in the Bank’s held-to-maturity portfolio for which the Bank has recorded an other-than-temporary impairment loss. The Bank believes the other-than-temporary impairment loss constitutes evidence of a significant deterioration in the issuer’s creditworthiness. The Bank has no current plans to sell these securities nor is the Bank under any requirement to sell these securities. | ||||||||||||||||||||||||||||||||||||
The following table presents information on private-label MBS transferred. The amounts below represent the values as of the transfer date. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Estimated | Amortized | Other-than-temporary | Estimated | Amortized | Other-Than-Temporary | Estimated | ||||||||||||||||||||||||||||
Cost | Impairment | Fair Value | Cost | Impairment | Fair Value | Cost | Impairment | Fair Value | ||||||||||||||||||||||||||||
Recognized in | Recognized in | Recognized in | ||||||||||||||||||||||||||||||||||
Accumulated Other | Accumulated Other | Accumulated Other | ||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||
Transferred at March 31, | $ | 12 | $ | 1 | $ | 11 | $ | 6 | $ | — | $ | 6 | $ | 322 | $ | 20 | $ | 302 | ||||||||||||||||||
Transferred at June 30, | — | — | — | — | — | — | 52 | 6 | 46 | |||||||||||||||||||||||||||
Transferred at September 30, | — | — | — | — | — | — | 23 | 2 | 21 | |||||||||||||||||||||||||||
Transferred at December 31, | — | — | — | — | — | — | 91 | 9 | 82 | |||||||||||||||||||||||||||
Total | $ | 12 | $ | 1 | $ | 11 | $ | 6 | $ | — | $ | 6 | $ | 488 | $ | 37 | $ | 451 | ||||||||||||||||||
Major Security Type. Private-label residential MBS were as follows: | ||||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||
Cost | Impairment | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Recognized in | Gains | Losses | ||||||||||||||||||||||||||||||||||
Accumulated Other | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | $ | 2,174 | $ | 27 | $ | 152 | $ | — | $ | 2,299 | ||||||||||||||||||||||||||
As of December 31, 2012 | $ | 2,717 | $ | 120 | $ | 79 | $ | — | $ | 2,676 | ||||||||||||||||||||||||||
The following tables summarize the private-label residential MBS with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | ||||||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||||
As of December 31, 2013 | 6 | $ | 137 | $ | 1 | 10 | $ | 243 | $ | 26 | 16 | $ | 380 | $ | 27 | |||||||||||||||||||||
As of December 31, 2012 | 3 | $ | 154 | $ | 1 | 26 | $ | 1,240 | $ | 119 | 29 | $ | 1,394 | $ | 120 | |||||||||||||||||||||
Interest-rate Payment Terms. The following table details interest-rate payment terms for investment securities classified as available-for-sale: | ||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Fixed-rate | $ | 41 | $ | 55 | ||||||||||||||||||||||||||||||||
Variable-rate | 2,133 | 2,662 | ||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 2,174 | $ | 2,717 | ||||||||||||||||||||||||||||||||
A summary of available-for-sale MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows: | ||||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||
Cost | Impairment | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Recognized in | Gains | Losses | ||||||||||||||||||||||||||||||||||
Other Accumulated | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | $ | 1,390 | $ | 26 | $ | 98 | $ | — | $ | 1,462 | ||||||||||||||||||||||||||
As of December 31, 2012 | $ | 1,712 | $ | 112 | $ | 41 | $ | — | $ | 1,641 | ||||||||||||||||||||||||||
Heldtomaturity_Securities
Held-to-maturity Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Held-to-maturity Securities, Unclassified [Abstract] | ' | ||||||||||||||||||||||||||||||||
Held-to-maturity Securities | ' | ||||||||||||||||||||||||||||||||
Held-to-maturity Securities | |||||||||||||||||||||||||||||||||
Major Security Types. Held-to-maturity securities were as follows: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Certificates of deposit | $ | — | $ | — | $ | — | $ | — | $ | 550 | $ | — | $ | — | $ | 550 | |||||||||||||||||
State or local housing agency debt obligations | 92 | 1 | — | 93 | 106 | 2 | — | 108 | |||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 3,738 | — | 24 | 3,714 | 2,133 | — | — | 2,133 | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
U.S. agency obligations-guaranteed residential | 465 | 7 | — | 472 | 622 | 8 | — | 630 | |||||||||||||||||||||||||
Government-sponsored enterprises residential | 13,952 | 109 | 115 | 13,946 | 10,763 | 184 | 2 | 10,945 | |||||||||||||||||||||||||
Private-label residential | 1,929 | 12 | 20 | 1,921 | 2,744 | 36 | 22 | 2,758 | |||||||||||||||||||||||||
Total | $ | 20,176 | $ | 129 | $ | 159 | $ | 20,146 | $ | 16,918 | $ | 230 | $ | 24 | $ | 17,124 | |||||||||||||||||
The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | |||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | |||||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 9 | $ | 1,970 | $ | 24 | — | $ | — | $ | — | 9 | $ | 1,970 | $ | 24 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | 65 | 3,932 | 108 | 1 | 147 | 7 | 66 | 4,079 | 115 | ||||||||||||||||||||||||
Private-label residential | 40 | 817 | 12 | 18 | 241 | 8 | 58 | 1,058 | 20 | ||||||||||||||||||||||||
Total | 114 | $ | 6,719 | $ | 144 | 19 | $ | 388 | $ | 15 | 133 | $ | 7,107 | $ | 159 | ||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | |||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | |||||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 3 | $ | 750 | $ | — | — | $ | — | $ | — | 3 | $ | 750 | $ | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | 1 | 154 | 1 | 1 | 13 | 1 | 2 | 167 | 2 | ||||||||||||||||||||||||
Private-label residential | — | — | — | 43 | 974 | 22 | 43 | 974 | 22 | ||||||||||||||||||||||||
Total | 4 | $ | 904 | $ | 1 | 44 | $ | 987 | $ | 23 | 48 | $ | 1,891 | $ | 24 | ||||||||||||||||||
Redemption Terms. The amortized cost and estimated fair value of held-to-maturity securities by contractual maturity are shown below. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees. | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||||||||
Non-mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 430 | $ | 430 | $ | 1,092 | $ | 1,093 | |||||||||||||||||||||||||
Due after one year through five years | 3,400 | 3,377 | 1,697 | 1,698 | |||||||||||||||||||||||||||||
Total non-mortgage-backed securities | 3,830 | 3,807 | 2,789 | 2,791 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 16,346 | 16,339 | 14,129 | 14,333 | |||||||||||||||||||||||||||||
Total | $ | 20,176 | $ | 20,146 | $ | 16,918 | $ | 17,124 | |||||||||||||||||||||||||
Interest-rate Payment Terms. The following table details interest-rate payment terms for investment securities classified as held-to-maturity: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Non-mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Fixed-rate | $ | 1,586 | $ | 656 | |||||||||||||||||||||||||||||
Variable-rate | 2,244 | 2,133 | |||||||||||||||||||||||||||||||
Total non-mortgage-backed securities | 3,830 | 2,789 | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Fixed-rate | 3,624 | 2,689 | |||||||||||||||||||||||||||||||
Variable-rate | 12,722 | 11,440 | |||||||||||||||||||||||||||||||
Total mortgage-backed securities | 16,346 | 14,129 | |||||||||||||||||||||||||||||||
Total amortized cost | $ | 20,176 | $ | 16,918 | |||||||||||||||||||||||||||||
A summary of held-to-maturity MBS issued by members or affiliates of members follows: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Bank of America Corporation, Charlotte, NC | $ | 619 | $ | 4 | $ | 8 | $ | 615 | $ | 896 | $ | 11 | $ | 8 | $ | 899 | |||||||||||||||||
Otherthantemporary_Impairment
Other-than-temporary Impairment | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other than Temporary Impairment Losses, Investments [Abstract] | ' | |||||||||||
Other-than-temporary Impairment | ' | |||||||||||
Other-than-temporary Impairment | ||||||||||||
Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. The Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation to reduce its risk of loss on such securities. Credit enhancements are defined as the percentage of subordinate tranches, overcollateralization, or excess spread, or the support of monoline insurance, if any, in a security structure that will absorb the losses before the security the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies. | ||||||||||||
The Bank’s investments in private-label MBS were rated “AAA” (or its equivalent) by a nationally recognized statistical rating organization (NRSRO), such as Moody’s Investors Service (Moody’s) and Standard and Poor’s Ratings Services (S&P), at their purchase dates. The “AAA”-rated securities achieved their ratings through credit enhancement, overcollateralization and senior-subordinated shifting interest features; the latter results in subordination of payments by junior classes to ensure cash flows to the senior classes. The ratings on all of the Bank’s private-label MBS have changed since their purchase dates. | ||||||||||||
Non-private-label MBS. The unrealized losses related to U.S. agency MBS are caused by interest rate changes and not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises (GSEs) and the Bank does not expect these securities to be settled at a price less than their amortized cost basis. In addition, the Bank does not intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of December 31, 2013. | ||||||||||||
Private-label MBS. To assess whether the entire amortized cost basis of its private-label MBS will be recovered, the Bank performs a cash flow analysis for each of its private-label MBS. In performing the cash flow analysis for each of these securities, the Bank uses two third-party models. The first model considers borrower characteristics and the particular attributes of the loans underlying the Bank’s securities, in conjunction with assumptions about future changes in home prices and interest rates, to project prepayments, defaults, and loss severities. A significant input to the first model is the forecast of future housing price changes for the relevant states and core based statistical areas (CBSAs), which are based upon an assessment of the individual housing markets. The term CBSA refers collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget; as currently defined, a CBSA must contain at least one urban area of 10,000 or more people. The Bank’s housing price forecast as of December 31, 2013 included a short-term housing price forecast with projected changes ranging from a decrease of five percent to an increase of seven percent over the twelve month period beginning October 1, 2013. | ||||||||||||
For the vast majority of markets, the short-term housing price forecast ranges from one percent to five percent. Thereafter, home prices were projected to recover using one of five different recovery paths. The following table presents projected home price recovery ranges by months following the short-term housing price forecast: | ||||||||||||
Months | Annualized Rates (%) | |||||||||||
1 to 6 | 0.00 to 3.00 | |||||||||||
7 to 12 | 1.00 to 4.00 | |||||||||||
13 to 18 | 2.00 to 4.00 | |||||||||||
19 to 30 | 2.00 to 5.00 | |||||||||||
31 to 54 | 2.00 to 6.00 | |||||||||||
Thereafter | 2.30 to 5.60 | |||||||||||
The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model that allocates the projected loan level cash flows and losses to the various security classes in the securitization structure in accordance with its prescribed cash flow and loss allocation rules. The model classifies securities based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. | ||||||||||||
At each quarter end, the Bank compares the present value of the cash flows (discounted at the securities' effective yield) expected to be collected with respect to its private-label MBS to the amortized cost basis of the security to determine whether a credit loss exists. For the Bank’s variable rate and hybrid private-label MBS, the Bank uses a forward interest rate curve to project the future estimated cash flows. The Bank then uses the effective interest rate for the security prior to impairment for determining the present value of the future estimated cash flows. For securities previously identified as other-than-temporarily impaired, the Bank updates its estimate of future estimated cash flows on a quarterly basis. | ||||||||||||
The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for the one Alt-A security for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2013, as well as related current credit enhancement: | ||||||||||||
Significant Inputs | ||||||||||||
Prepayment Rate | Default Rates | Loss Severities | Current Credit Enhancement | |||||||||
Year of | Weighted | Weighted | Weighted | Weighted | ||||||||
Securitization | Average | Average | Average | Average | ||||||||
(%) | (%) | (%) | (%) | |||||||||
2004 and prior | 12.08 | 22.32 | 44.43 | 18.89 | ||||||||
The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income (loss): | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 586 | $ | 582 | $ | 464 | ||||||
Amount related to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 11 | |||||||||
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | — | 16 | 107 | |||||||||
Increase in cash flows expected to be collected, recognized over the remaining life of the securities | (12 | ) | (12 | ) | — | |||||||
Balance, end of year | $ | 574 | $ | 586 | $ | 582 | ||||||
Certain other private-label MBS that have not been designated as other-than-temporarily impaired have experienced unrealized losses and decreases in fair value due to interest rate volatility, illiquidity in the marketplace, and general disruption in the U.S. mortgage markets. These declines in fair value are considered temporary as the Bank expects to recover the amortized cost basis of the securities, the Bank does not intend to sell these securities, and it is not more likely than not that the Bank will be required to sell these securities before the anticipated recovery of the securities’ remaining amortized cost basis, which may be at maturity. This assessment is based on the fact that the Bank has sufficient capital and liquidity to operate its business and has no need to sell these securities, nor has the Bank entered into any contractual constraints that would require the Bank to sell these securities. |
Mortgage_Loans_Held_for_Portfo
Mortgage Loans Held for Portfolio | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Mortgage Loans Held for Portfolio | ' | ||||||||
Mortgage Loans Held for Portfolio | |||||||||
Prior to 2009, the Bank purchased single-family residential mortgage loans directly from PFIs. The total dollar amount of the Bank's single-family residential mortgage loans represents held-for-portfolio loans whereby the PFIs service and credit enhance residential mortgage loans that they sell to the Bank. Prior to August 30, 2013, mortgage loans also included multifamily residential mortgage loans, which are investments by the Bank in participation interests in loans on affordable multifamily rental properties. In August 2013, the Bank sold its multifamily mortgage loan portfolio, with an unpaid principal balance of $18, to a member which resulted in a gain of less than $1. | |||||||||
The following table presents information on mortgage loans held for portfolio: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Fixed-rate medium-term(1) single-family residential mortgage loans | $ | 150 | $ | 230 | |||||
Fixed-rate long-term single-family residential mortgage loans | 781 | 1,007 | |||||||
Multifamily residential mortgage loans | — | 20 | |||||||
Total unpaid principal balance | 931 | 1,257 | |||||||
Premiums | 3 | 5 | |||||||
Discounts | (5 | ) | (7 | ) | |||||
Total | $ | 929 | $ | 1,255 | |||||
____________ | |||||||||
(1) Medium-term is defined as a term of 15 years or less. | |||||||||
The following table details the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Conventional loans | $ | 864 | $ | 1,165 | |||||
Government-guaranteed or insured loans | 67 | 92 | |||||||
Total unpaid principal balance | $ | 931 | $ | 1,257 | |||||
The Bank records credit enhancement fees related to single-family residential mortgage loans as a reduction to mortgage loan interest income. Credit enhancement fees totaled $1 for the year ended December 31, 2013 and $2 for the years ended December 31, 2012 and 2011. | |||||||||
For information related to the Bank's credit risk on mortgage loans and allowance for credit losses, see Note 11—Allowance for Credit Losses. |
Advances
Advances | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Advances [Abstract] | ' | |||||||||||||
Advances | ' | |||||||||||||
Advances | ||||||||||||||
Redemption Terms. The Bank had advances outstanding, including AHP advances (see Note 14—Assessments), at interest rates ranging from zero percent to 8.64 percent, as summarized below. Advances with interest rates of zero percent are AHP subsidized advances and certain types of structured advances. | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due in one year or less | 51,331 | 41,482 | ||||||||||||
Due after one year through two years | 5,366 | 7,915 | ||||||||||||
Due after two years through three years | 6,136 | 4,735 | ||||||||||||
Due after three years through four years | 8,495 | 5,821 | ||||||||||||
Due after four years through five years | 5,088 | 8,758 | ||||||||||||
Due after five years | 11,464 | 15,157 | ||||||||||||
Total par value | 87,882 | 83,870 | ||||||||||||
Discount on AHP advances | (8 | ) | (11 | ) | ||||||||||
Discount on EDGE advances | (7 | ) | (8 | ) | ||||||||||
Hedging adjustments | 1,726 | 3,658 | ||||||||||||
Deferred commitment fees | (5 | ) | (6 | ) | ||||||||||
Total | $ | 89,588 | $ | 87,503 | ||||||||||
The Bank offers advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees (callable advances). Other advances may be prepaid only by paying a fee to the Bank that makes the Bank financially indifferent to the prepayment of the advance. The Bank had callable advances outstanding of $39 and $20 as of December 31, 2013 and 2012, respectively. | ||||||||||||||
The following table summarizes advances by year of contractual maturity or next call date for callable advances: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due or callable in one year or less | 51,339 | 41,482 | ||||||||||||
Due or callable after one year through two years | 5,375 | 7,915 | ||||||||||||
Due or callable after two years through three years | 6,159 | 4,745 | ||||||||||||
Due or callable after three years through four years | 8,495 | 5,830 | ||||||||||||
Due or callable after four years through five years | 5,088 | 8,758 | ||||||||||||
Due or callable after five years | 11,424 | 15,138 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $3,510 and $5,174 as of December 31, 2013 and 2012, respectively. | ||||||||||||||
The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due or convertible in one year or less | 54,522 | 46,198 | ||||||||||||
Due or convertible after one year through two years | 5,414 | 7,886 | ||||||||||||
Due or convertible after two years through three years | 5,867 | 4,748 | ||||||||||||
Due or convertible after three years through four years | 6,643 | 5,368 | ||||||||||||
Due or convertible after four years through five years | 4,168 | 6,570 | ||||||||||||
Due or convertible after five years | 11,266 | 13,098 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Interest-rate Payment Terms. The following table details interest-rate payment terms for advances: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Fixed-rate: | ||||||||||||||
Due in one year or less | $ | 46,343 | $ | 38,307 | ||||||||||
Due after one year | 28,535 | 33,425 | ||||||||||||
Total fixed-rate | 74,878 | 71,732 | ||||||||||||
Variable-rate: | ||||||||||||||
Due in one year or less | 4,990 | 3,177 | ||||||||||||
Due after one year | 8,014 | 8,961 | ||||||||||||
Total variable-rate | 13,004 | 12,138 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Security Terms. The Bank obtains collateral on advances to protect against losses and Finance Agency regulations permit the Bank to accept only certain types of collateral. The lendable collateral value (LCV) is the value that the Bank assigns to each type of qualifying collateral for purposes of determining the amount of credit that such qualifying collateral will support. | ||||||||||||||
The following table provides information about the types of collateral held for the Bank's advances: | ||||||||||||||
Total Par Value of Outstanding Advances | LCV of Collateral Pledged by Members | First Mortgage Collateral (%) | Securities Collateral (%) | Other Real Estate Related Collateral (%) | ||||||||||
As of December 31, 2013 | $ | 87,882 | $ | 231,342 | 67.2 | 8.18 | 24.62 | |||||||
As of December 31, 2012 | 83,870 | 217,935 | 69.78 | 7.09 | 23.13 | |||||||||
Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, thrifts, and credit unions and further is concentrated in certain larger borrowing relationships. The concentration of the Bank's advances to 10 member institutions was $65,472 and $62,488, as of December 31, 2013 and 2012 respectively. This concentration represented 74.5 percent of total advances outstanding as of December 31, 2013 and 2012. | ||||||||||||||
Based on the collateral pledged as security for advances, the Bank's credit analysis of members’ financial condition, and prior repayment history, no allowance for credit losses on advances was deemed necessary by the Bank as of December 31, 2013 and 2012. No advance was past due as of December 31, 2013 and 2012. | ||||||||||||||
For additional information related to the Bank's credit risk on advances and allowance for credit losses, see Note 11—Allowance for Credit Losses. |
Allowance_for_Credit_Losses
Allowance for Credit Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Allowance for Credit Losses [Abstract] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses | ' | ||||||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||||||
The activity in the allowance for credit losses was as follows: | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
Provision for credit losses | 5 | — | — | 5 | |||||||||||||||||||||
Charge-offs | (4 | ) | — | — | (4 | ) | |||||||||||||||||||
Mortgage loans transferred to held for sale | — | — | (1 | ) | (1 | ) | |||||||||||||||||||
Balance, end of year | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | 5 | $ | — | $ | 1 | $ | 6 | |||||||||||||||||
Provision for credit losses | 6 | — | — | 6 | |||||||||||||||||||||
Charge-offs | (1 | ) | — | — | (1 | ) | |||||||||||||||||||
Balance, end of year | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | — | $ | — | $ | 1 | $ | 1 | |||||||||||||||||
Provision for credit losses | 5 | — | — | 5 | |||||||||||||||||||||
Charge-offs | — | — | — | — | |||||||||||||||||||||
Balance, end of year | $ | 5 | $ | — | $ | 1 | $ | 6 | |||||||||||||||||
The recorded investment in mortgage loans by impairment methodology was as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Total | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||
Collectively evaluated for impairment | 9 | — | 9 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 11 | $ | — | $ | 11 | |||||||||||||||||||
Recorded investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 15 | $ | — | $ | 15 | |||||||||||||||||||
Collectively evaluated for impairment | 851 | 67 | 918 | ||||||||||||||||||||||
Total recorded investment (1) | $ | 866 | $ | 67 | $ | 933 | |||||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | — | $ | 1 | $ | 2 | |||||||||||||||||
Collectively evaluated for impairment | 9 | — | — | 9 | |||||||||||||||||||||
Total allowance for credit losses | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
Recorded investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13 | $ | — | $ | 21 | $ | 34 | |||||||||||||||||
Collectively evaluated for impairment | 1,135 | 93 | — | 1,228 | |||||||||||||||||||||
Total recorded investment (1) | $ | 1,148 | $ | 93 | $ | 21 | $ | 1,262 | |||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. | |||||||||||||||||||||||||
Key credit quality indicators for mortgage loans include the migration of past due loans, nonaccrual loans, loans in process of foreclosure, and impaired loans. The tables below summarize the Bank's recorded investment in mortgage loans by these key credit quality indicators: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Single-family Residential Mortgage Loans | Total | |||||||||||||||||||||||
Past due 30-59 days | $ | 30 | $ | 7 | $ | 37 | |||||||||||||||||||
Past due 60-89 days | 9 | 3 | 12 | ||||||||||||||||||||||
Past due 90 days or more | 51 | 9 | 60 | ||||||||||||||||||||||
Total past due mortgage loans | 90 | 19 | 109 | ||||||||||||||||||||||
Total current mortgage loans | 776 | 48 | 824 | ||||||||||||||||||||||
Total mortgage loans (1) | $ | 866 | $ | 67 | $ | 933 | |||||||||||||||||||
Other delinquency statistics: | |||||||||||||||||||||||||
In process of foreclosure (2) | $ | 38 | $ | 3 | $ | 41 | |||||||||||||||||||
Seriously delinquent rate (3) | 5.9 | % | 13.13 | % | 6.42 | % | |||||||||||||||||||
Past due 90 days or more and still accruing interest (4) | $ | — | $ | 9 | $ | 9 | |||||||||||||||||||
Loans on nonaccrual status (5) | $ | 51 | $ | — | $ | 51 | |||||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||||||||||||||||||||||||
(2) Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in lieu has been reported. Loans in the process of foreclosure are included in past due or current loans depending 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 loan portfolio segment. | |||||||||||||||||||||||||
(4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | |||||||||||||||||||||||||
(5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Single-family Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Past due 30-59 days | $ | 34 | $ | 8 | $ | — | $ | 42 | |||||||||||||||||
Past due 60-89 days | 12 | 4 | — | 16 | |||||||||||||||||||||
Past due 90 days or more | 78 | 11 | — | 89 | |||||||||||||||||||||
Total past due mortgage loans | 124 | 23 | — | 147 | |||||||||||||||||||||
Total current mortgage loans | 1,024 | 70 | 21 | 1,115 | |||||||||||||||||||||
Total mortgage loans (1) | $ | 1,148 | $ | 93 | $ | 21 | $ | 1,262 | |||||||||||||||||
Other delinquency statistics: | |||||||||||||||||||||||||
In process of foreclosure (2) | $ | 59 | $ | 5 | $ | — | $ | 64 | |||||||||||||||||
Seriously delinquent rate (3) | 6.78 | % | 11.45 | % | 0 | % | 7.01 | % | |||||||||||||||||
Past due 90 days or more and still accruing interest (4) | $ | — | $ | 11 | $ | — | $ | 11 | |||||||||||||||||
Loans on nonaccrual status (5) | $ | 78 | $ | — | $ | — | $ | 78 | |||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. | |||||||||||||||||||||||||
(2) Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in lieu has been reported. Loans in the process of foreclosure are included in past due or current loans depending 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 loan portfolio segment. | |||||||||||||||||||||||||
(4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | |||||||||||||||||||||||||
(5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. | |||||||||||||||||||||||||
A troubled debt restructuring is considered to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower's financial difficulties and that concession would not have been considered otherwise. The Bank has granted a concession when it does not expect to collect all amounts due under the original contract as a result of the restructuring. The Bank's conventional single-family residential mortgage loan troubled debt restructurings primarily involve modifying the borrower's monthly payment for a period of up to 36 months to achieve a target housing expense ratio of 31.0 percent of their qualifying monthly income. The outstanding principal balance is first re-amortized to reflect a principal and interest payment for a term not to exceed 40 years. This would result in a balloon payment at the original maturity date of the loan as the maturity date and number of remaining monthly payments are not adjusted. If the 31.0 percent housing expense ratio is not achieved through re-amortization, the interest rate is reduced in 0.125 percent increments below the original note rate, to a floor rate of 3.00 percent, resulting in reduced principal and interest payments, for the temporary payment modification period of up to 36 months, until the target 31.0 percent housing expense ratio is met. A conventional single-family residential mortgage loan in which the borrower filed for Chapter 7 bankruptcy and the bankruptcy court discharged the borrower's obligation to the Bank is considered a troubled debt restructuring. | |||||||||||||||||||||||||
The table below presents the Bank's recorded investment balance in troubled debt restructured loans as of the dates presented: | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Performing | Non-performing | Total | Performing | Non-performing | Total | ||||||||||||||||||||
Conventional single-family residential loans | $ | 11 | $ | 4 | $ | 15 | $ | 9 | $ | 2 | $ | 11 | |||||||||||||
Due to the minimal change in terms of modified loans (i.e., no write-offs of principal), the Bank's pre-modification recorded investment was not materially different than the post-modification recorded investment in troubled debt restructuring during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, certain conventional single-family residential mortgage loans modified as troubled debt restructurings and experiencing a payment default within the previous 12 months were $2, less than $1, and $1 respectively. A payment default on a troubled debt restructuring is considered to have occurred if the contractually due principal or interest is 60 days or more past due at any time during the reported periods. | |||||||||||||||||||||||||
The following tables summarize the recorded investment, unpaid principal balance, and related allowance for credit losses for impaired loans individually assessed for impairment as of December 31, 2013 and 2012, and the average recorded investment and related interest income recognized on these loans during the years ended December 31, 2013 and 2012. All impaired conventional single-family residential loans had an allowance for credit losses as of December 31, 2013 and 2012. | |||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Conventional single-family residential loans | $ | 15 | $ | 15 | $ | 2 | $ | 15 | $ | — | |||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Conventional single-family residential loans | $ | 13 | $ | 13 | $ | 1 | $ | 13 | $ | — | |||||||||||||||
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2013 | |
Deposits [Abstract] | ' |
Deposits | ' |
Deposits | |
The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit in the Bank funds collected in connection with the mortgage loans, pending disbursement of such funds to the owners of the mortgage loans. The Bank classifies these items as interest-bearing deposits on the Statements of Condition. | |
The Bank pays interest on demand and overnight deposits based on a daily interest rate. |
Consolidated_Obligations
Consolidated Obligations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Consolidated Obligations | ' | |||||||||||
Consolidated Obligations | ||||||||||||
Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the FHLBanks and are backed only by the financial resources of the FHLBanks. | ||||||||||||
The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf), and also is jointly and severally liable with the other 11 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the consolidated obligation represents a primary liability of such FHLBank. Although it has never occurred, to the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank that is primarily liable for such consolidated obligation, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank for any payments made on its behalf and other associated costs (including interest to be determined by the Finance Agency). If, however, the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its repayment obligations, the Finance Agency may allocate the outstanding liabilities of the noncomplying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank's participation in all consolidated obligations outstanding. The Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. | ||||||||||||
The par value of the 12 FHLBanks' outstanding consolidated obligations, including consolidated obligations issued by the Bank, was $766,837 and $687,903 as of December 31, 2013 and 2012, respectively. Regulations require each FHLBank to maintain, in the aggregate, unpledged qualifying assets equal to that FHLBank's consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; assets with an assessment or rating at least equivalent to the current assessment or rating of the consolidated obligations; obligations of or fully guaranteed by the United States; mortgages guaranteed or insured by the United States or its agencies; participations, mortgages, or other securities of or issued by certain government-sponsored enterprises; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. The Bank held unpledged qualifying assets of $122,024 and $123,523 as of December 31, 2013 and 2012, respectively, compared to a book value of $112,930 and $114,684 in consolidated obligations as of December 31, 2013 and 2012, respectively. | ||||||||||||
General Terms. Consolidated obligations are issued with either fixed-rate coupon payment terms or variable-rate coupon payment terms that use a variety of indices for interest-rate resets including the London Interbank Offered Rate (LIBOR), Constant Maturity Treasury (CMT), and others. To meet the expected specific needs of certain investors in consolidated obligations, both fixed-rate consolidated obligation bonds and variable-rate consolidated obligation bonds also may contain certain features, which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank generally enters into derivatives containing offsetting features that, in effect, convert the terms of the consolidated obligation bond to those of a simple variable-rate consolidated obligation bond. | ||||||||||||
These consolidated obligations, beyond having fixed-rate or simple variable-rate coupon payment terms, also may have the following broad term regarding either principal repayment or coupon payment terms: | ||||||||||||
Optional Principal Redemption Consolidated Obligation Bonds (callable bonds) that the Bank may redeem in whole or in part at its discretion on predetermined call dates according to the terms of the consolidated obligation bond offerings. | ||||||||||||
With respect to interest payments, consolidated obligation bonds also may have the following terms: | ||||||||||||
Step-up/down Consolidated Obligation Bonds have coupons at fixed rates for specified intervals over the lives of the consolidated obligation bonds. At the end of each specified interval, the coupon rate increases (decreases) or steps up (steps down). These consolidated obligation bond issues generally contain call provisions enabling the bonds to be called at the Bank's discretion; and | ||||||||||||
Variable-rate Capped Floater Consolidated Obligation Bonds pay interest at variable rates subject to an interest-rate ceiling. | ||||||||||||
Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Fixed-rate | $ | 59,885 | $ | 76,212 | ||||||||
Step up/down | 7,617 | 4,419 | ||||||||||
Simple variable-rate | 13,005 | 1,250 | ||||||||||
Variable-rate capped floater | 45 | 20 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Amount | Weighted- | Amount | Weighted- | |||||||||
average | average | |||||||||||
Interest Rate (%) | Interest Rate (%) | |||||||||||
Due in one year or less | $ | 41,725 | 0.5 | $ | 55,397 | 0.79 | ||||||
Due after one year through two years | 9,485 | 0.67 | 7,587 | 2.08 | ||||||||
Due after two years through three years | 7,503 | 2.21 | 2,507 | 1.92 | ||||||||
Due after three years through four years | 6,355 | 2.81 | 3,344 | 4.25 | ||||||||
Due after four years through five years | 5,150 | 1.67 | 6,298 | 2.82 | ||||||||
Due after five years | 10,334 | 1.92 | 6,768 | 2.31 | ||||||||
Total par value | 80,552 | 1.13 | 81,901 | 1.36 | ||||||||
Premiums | 82 | 91 | ||||||||||
Discounts | (24 | ) | (34 | ) | ||||||||
Hedging adjustments | 118 | 989 | ||||||||||
Total | $ | 80,728 | $ | 82,947 | ||||||||
The Bank’s consolidated obligation bonds outstanding by call feature: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Noncallable | $ | 56,569 | $ | 71,880 | ||||||||
Callable | 23,983 | 10,021 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Due or callable in one year or less | $ | 59,458 | $ | 62,540 | ||||||||
Due or callable after one year through two years | 7,795 | 6,550 | ||||||||||
Due or callable after two years through three years | 4,491 | 2,136 | ||||||||||
Due or callable after three years through four years | 6,095 | 3,024 | ||||||||||
Due or callable after four years through five years | 1,571 | 6,028 | ||||||||||
Due or callable after five years | 1,142 | 1,623 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds. Consolidated obligation discount notes are consolidated obligations with contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature. | ||||||||||||
The Bank’s participation in consolidated obligation discount notes was as follows: | ||||||||||||
Book Value | Par Value | Weighted-average | ||||||||||
Interest Rate (%) | ||||||||||||
As of December 31, 2013 | $ | 32,202 | $ | 32,208 | 0.11 | |||||||
As of December 31, 2012 | $ | 31,737 | $ | 31,745 | 0.12 | |||||||
Assessments
Assessments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Assessments [Abstract] | ' | ||||||||||||
Assessments | ' | ||||||||||||
Assessments | |||||||||||||
Affordable Housing Program. Annually, the FHLBanks must set aside for the AHP the greater of the aggregate of $100 or 10 percent of each FHLBank's regulatory income. Regulatory income is defined as GAAP income before interest expense related to mandatorily redeemable capital stock and the assessment for AHP, but after any assessment for REFCORP. The AHP and REFCORP assessments were calculated simultaneously due to their interdependence on each other. The Bank accrues this expense monthly based on its regulatory income before assessments. The Bank reduces the AHP liability as members use subsidies. | |||||||||||||
If the Bank experienced a regulatory loss during a quarter, but still had regulatory income for the year, the Bank's obligation to the AHP would be calculated based on the Bank's year-to-date regulatory income. If the Bank had regulatory income in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation. If the Bank experienced a regulatory loss for a full year, the Bank would have no obligation to the AHP for the year, since each FHLBank's required annual AHP contribution is limited to its annual regulatory income. If the aggregate 10 percent calculation described above was less than $100 for all 12 FHLBanks, each FHLBank would be required to assure that the aggregate contribution of the FHLBanks equals $100. The proration would be made on the basis of an FHLBank's income in relation to the income of all FHLBanks for the previous year. There was no shortfall in 2013, 2012, or 2011. If an FHLBank finds that its required contributions are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. No FHLBank made such an application in 2013, 2012, or 2011. The Bank had outstanding principal in AHP-related advances of $41 and $48 as of December 31, 2013 and 2012, respectively. | |||||||||||||
A rollforward of the Bank's AHP liability is as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 80 | $ | 109 | $ | 126 | |||||||
AHP assessments | 37 | 30 | 21 | ||||||||||
Subsidy usage, net | (43 | ) | (59 | ) | (38 | ) | |||||||
Balance, end of year | $ | 74 | $ | 80 | $ | 109 | |||||||
REFCORP. Prior to the satisfaction of the FHLBanks' REFCORP obligation in July 2011, each FHLBank was required to make payments to REFCORP (20 percent of annual GAAP net income before REFCORP assessments and after payment of AHP assessments) until the total amount of payments actually made was equivalent to a $300 million annual annuity whose final maturity date was April 15, 2030. |
Capital_and_Mandatorily_Redeem
Capital and Mandatorily Redeemable Capital Stock | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Capital and Mandatorily Redeemable Capital Stock | ' | |||||||||||||||
Capital and Mandatorily Redeemable Capital Stock | ||||||||||||||||
Capital. The Bank is subject to three regulatory capital requirements under its capital plan, the FHLBank Act, and Finance Agency regulations. First, the Bank must maintain permanent capital at all times in an amount at least equal to the sum of its credit risk capital requirement, its market risk capital requirement, and its operations risk capital requirement, calculated in accordance with the rules and regulations of the Finance Agency. Only “permanent capital,” defined by the FHLBank Act and regulations as retained earnings (determined in accordance with GAAP) and the amounts paid-in for Class B stock, satisfies the risk-based capital requirement. The Finance Agency may require the Bank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined. | ||||||||||||||||
Second, the FHLBank Act requires the Bank to maintain at all times total capital in an amount equal to at least four percent of total assets. | ||||||||||||||||
Third, the FHLBank Act requires the Bank to maintain at all times weighted-leverage capital in an amount equal to at least five percent of total assets. “Total capital” is defined in the regulations as the sum of permanent capital, the amount paid-in for Class A stock (if any), the amount of the Bank's general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. As of December 31, 2013, the Bank has not issued any Class A stock and has no general allowance for losses or any other instruments identified in the capital plan and approved by the Finance Agency; therefore, the Bank's total capital is equal to its permanent capital. “Weighted-leverage capital” is defined as the sum of permanent capital weighted 1.5 times and nonpermanent capital weighted 1.0 times. It should be noted that, although mandatorily redeemable capital stock is not included in capital for financial reporting purposes, such outstanding stock is considered capital for determining compliance with these regulatory capital requirements. | ||||||||||||||||
The Bank was in compliance with the Finance Agency's regulatory capital rules and requirements as shown in the following table: | ||||||||||||||||
As of December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Required | Actual | Required | Actual | |||||||||||||
Risk based capital | $ | 2,246 | $ | 6,563 | $ | 1,625 | $ | 6,373 | ||||||||
Total capital-to-assets ratio | 4 | % | 5.37 | % | 4 | % | 5.15 | % | ||||||||
Total regulatory capital (1) | $ | 4,893 | $ | 6,563 | $ | 4,948 | $ | 6,373 | ||||||||
Leverage ratio | 5 | % | 8.05 | % | 5 | % | 7.73 | % | ||||||||
Leverage capital | $ | 6,116 | $ | 9,845 | $ | 6,185 | $ | 9,560 | ||||||||
___________ | ||||||||||||||||
(1) | Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $24 and $40 in mandatorily redeemable capital stock as of December 31, 2013 and 2012, respectively. | |||||||||||||||
The Bank offers two subclasses of Class B stock, each of which is issued, redeemed, and repurchased at a par value of $100 per share. Member shares cannot be purchased or sold except between the Bank and its members at $100 per share par value. Shares of subclass B1 capital stock are issued to meet the membership stock requirement under the capital plan and shares of subclass B2 capital stock are issued to meet the activity-based stock requirement under the capital plan. Activity-based stock held by a member is that amount of subclass B2 capital stock that the member is required to own for as long as certain transactions between the Bank and the member remain outstanding. The manner in which the activity-based stock requirement is determined under the capital plan is set forth below. | ||||||||||||||||
The minimum stock requirement for each member is the sum of the membership stock requirement and the activity-based stock requirement. The capital plan permits the Bank's board of directors to set the membership and activity-based stock requirements within a range as set forth in the capital plan. As of December 31, 2013, the membership stock requirement was an amount of subclass B1 capital stock equal to 0.12 percent (12 basis points) of the member's total assets as of December 31, 2012, subject to a cap of $20. The membership stock requirement is recalculated at least annually by March 31, using the member's total assets as of the preceding calendar year-end. As of December 31, 2013, the activity-based stock requirement was an amount of subclass B2 capital stock equal to the sum of the following: | ||||||||||||||||
• | 4.50 percent of the member's outstanding par value of advances; and | |||||||||||||||
• | 8.00 percent of targeted debt/equity investments (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004. | |||||||||||||||
The activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as single-family residential mortgage loan assets), although this percentage was set at zero as of December 31, 2013 and 2012. | ||||||||||||||||
The FHLBank Act and Finance Agency regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum regulatory capital requirement. Therefore, from time to time the Bank's board of directors may adjust the membership stock requirement and the activity-based stock requirement within specified ranges set forth in the capital plan. Any adjustment outside the ranges would require an amendment to the capital plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the minimum stock requirement. The FHLBank Act provides that the Bank may repurchase, at its sole discretion, any member's capital stock investment that exceeds the required minimum amount (excess capital stock). Finance Agency rules limit the ability of the Bank to create member excess stock under certain circumstances. The Bank may not pay dividends in the form of capital stock or issue excess capital stock to any member if the Bank's excess capital stock exceeds one percent of its total assets or if the issuance of excess capital stock would cause the Bank's excess capital stock to exceed one percent of its total assets. As of December 31, 2013 and 2012, the Bank's excess capital stock did not exceed one percent of its total assets. | ||||||||||||||||
A member may obtain redemption of its excess Class B capital stock at par value payable in cash five years after providing written notice to the Bank. The Bank, at its option, may repurchase a member's excess capital stock before expiration of the five-year notice period. The Bank's authority to redeem or repurchase capital stock is subject to a number of limitations. | ||||||||||||||||
The Bank's board of directors may, but is not required to, declare and pay non-cumulative dividends out of unrestricted retained earnings and current earnings in either cash or capital stock in compliance with Finance Agency rules. All shares of capital stock share in any dividend without preference. Dividends are computed on the average daily balance of capital stock outstanding during the relevant time period. The Bank may not pay a dividend if the Bank is not in compliance with any of its regulatory capital requirements or if the payment, if made, would cause the Bank to fail to meet any of its regulatory capital requirements. | ||||||||||||||||
As of December 31, 2013 and 2012, the 10 largest holders of capital stock held $3,139, or 64.0 percent, and $3,053, or 61.8 percent, respectively, of the total regulatory capital stock of the Bank. | ||||||||||||||||
Mandatorily Redeemable Capital Stock. Dividends on mandatorily redeemable capital stock, recorded as interest expense, were $1, $3, and $4 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||
The following table provides the activity in mandatorily redeemable capital stock: | ||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Balance, beginning of year | $ | 40 | $ | 286 | $ | 529 | ||||||||||
Capital stock subject to mandatory redemption reclassified from equity during the year due to: | ||||||||||||||||
Attainment of non-member status | 9 | 90 | 149 | |||||||||||||
Withdrawal | — | 1 | 4 | |||||||||||||
Repurchase/redemption of mandatorily redeemable capital stock | (25 | ) | (308 | ) | (369 | ) | ||||||||||
Capital stock no longer subject to redemption due to the transfer of stock from a non-member to a member | — | (29 | ) | (27 | ) | |||||||||||
Balance, end of year | $ | 24 | $ | 40 | $ | 286 | ||||||||||
As of December 31, 2013, the Bank's outstanding mandatorily redeemable capital stock consisted of B1 membership stock and B2 activity-based stock. The Bank is not required to redeem activity-based stock until the later of the expiration of the redemption period, which is five years after notification is received, or until the activity no longer remains outstanding. | ||||||||||||||||
The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date. | ||||||||||||||||
As of December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Due in one year or less | $ | 5 | $ | — | ||||||||||||
Due after one year through two years | 9 | 12 | ||||||||||||||
Due after two years through three years | 8 | 9 | ||||||||||||||
Due after three years through four years | 1 | 17 | ||||||||||||||
Due after four years through five years | — | 1 | ||||||||||||||
Due after five years | 1 | 1 | ||||||||||||||
Total | $ | 24 | $ | 40 | ||||||||||||
A member may cancel or revoke its written notice of redemption or its notice of withdrawal from membership at any time prior to the end of the five-year redemption period, subject to payment of a cancellation fee as set forth in the capital plan. If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock would no longer be classified as interest expense. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Components comprising accumulated other comprehensive income (loss) were as follows: | ||||||||||||||||
Pension and | Noncredit Portion | Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities | Total Accumulated | |||||||||||||
Postretirement | of Other-than- | Other | ||||||||||||||
Benefits | temporary | Comprehensive Income | ||||||||||||||
Impairment Losses | (Loss) | |||||||||||||||
on Available-for- | ||||||||||||||||
sale Securities | ||||||||||||||||
Balance, December 31, 2010 | $ | (10 | ) | $ | (392 | ) | $ | — | $ | (402 | ) | |||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | — | (37 | ) | (37 | ) | ||||||||||
Noncredit other-than-temporary impairment losses transferred | — | (37 | ) | 37 | — | |||||||||||
Net change in fair value | — | (69 | ) | — | (69 | ) | ||||||||||
Actuarial loss | (5 | ) | — | — | (5 | ) | ||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | 100 | — | 100 | ||||||||||||
Amortization of pension and postretirement (1) | 2 | — | — | 2 | ||||||||||||
Net current period other comprehensive loss | (3 | ) | (6 | ) | — | (9 | ) | |||||||||
Balance, December 31, 2011 | (13 | ) | (398 | ) | — | (411 | ) | |||||||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Net change in fair value | — | 341 | — | 341 | ||||||||||||
Actuarial loss | (5 | ) | — | — | (5 | ) | ||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | 16 | — | 16 | ||||||||||||
Amortization of pension and postretirement (1) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive (loss) income | (4 | ) | 357 | — | 353 | |||||||||||
Balance, December 31, 2012 | (17 | ) | (41 | ) | — | (58 | ) | |||||||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | — | (1 | ) | (1 | ) | ||||||||||
Noncredit other-than-temporary impairment losses transferred | — | (1 | ) | 1 | — | |||||||||||
Net change in fair value | — | 167 | — | 167 | ||||||||||||
Actuarial gain | 3 | — | — | 3 | ||||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Amortization of pension and postretirement (1) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive income | 4 | 166 | — | 170 | ||||||||||||
Balance, December 31, 2013 | $ | (13 | ) | $ | 125 | $ | — | $ | 112 | |||||||
____________ | ||||||||||||||||
-1 | Included in Compensation and benefits on the Statements of Income. |
Pension_and_Post_Retirement_Be
Pension and Post Retirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pension and Post Retirement Benefit Plans | ' | |||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ||||||||||||||||||||||||
The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Plan), a tax-qualified defined-benefit pension plan. The Pentegra 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, including the certified zone status, are not applicable to the Pentegra Plan. Under the Pentegra Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Plan covers substantially all officers and employees of the Bank hired before March 1, 2011. | ||||||||||||||||||||||||
The Pentegra Plan operates on a fiscal year from July 1 through June 30. The Pentegra Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888 and the three-digit plan number is 333. There are no collective bargaining agreements in place at the Bank. | ||||||||||||||||||||||||
The Pentegra 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 fair value of assets divided by the funding target (100% of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the fair 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 Plan is for the year ended June 30, 2012. For the Pentegra Plan years ended June 30, 2012 and 2011, the Bank's contribution was not more than five percent of the total contributions to the Pentegra Plan. | ||||||||||||||||||||||||
The following table presents information on Pentegra Plan net pension cost and funded status: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $ | 7 | $ | 9 | $ | 9 | ||||||||||||||||||
Pentegra Plan funded status as of July 1(1) | 101.31 | % | 108.39 | % | 90.29 | % | ||||||||||||||||||
Bank's funded status as of the plan year end | 99.6 | % | 105.26 | % | 88.82 | % | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
(1) The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants were permitted to make contributions through March 15 of the following year (i.e. through March 15, 2014 for the plan year ended June 30, 2013 and through March 15, 2013 for the plan year ended June 30, 2012). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2015 for the plan year July 1, 2013 through June 30, 2014 and April 2014 for the plan year July 1, 2012 through June 2013. Form 5500 was filed in March 2013 for the plan year July 1, 2011 through June 30, 2012. | ||||||||||||||||||||||||
The Bank also participates in a qualified, defined contribution plan. The Bank's contribution to this plan is equal to a percentage of voluntary contributions, subject to certain limitations, plus contributions for all employees hired on or after March 1, 2011. The Bank contributed $2 to this plan during the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
The Bank offers a supplemental nonqualified defined contribution retirement plan to eligible executives. The Bank's contribution to this plan is equal to a percentage of voluntary contributions. The Bank contributed less than $1 to this plan during the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
In addition, the Bank maintains a nonqualified deferred compensation plan, available to Bank directors and officers at the senior vice president level and above, which is, in substance, an unfunded supplemental savings plan. The plan's liability consists of the accumulated compensation deferrals and accrued earnings on the deferrals. The Bank's minimum obligation from this plan was $1 as of December 31, 2013 and 2012. Operating expense includes deferred compensation and accrued earnings of less than $1 during the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
The Bank offers a supplemental nonqualified defined benefit pension plan to eligible executives and a postretirement health benefit plan to eligible retirees. There are no funded plan assets that have been designated to provide supplemental retirement plan or postretirement health benefits. The obligations and funding status of the Bank's supplemental defined benefit pension plan and postretirement health benefit plan as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health | |||||||||||||||||||||||
Benefit Plan | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 26 | $ | 20 | $ | 13 | $ | 12 | ||||||||||||||||
Service cost | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Interest cost | 1 | 1 | — | — | ||||||||||||||||||||
Actuarial loss | (1 | ) | 5 | (2 | ) | — | ||||||||||||||||||
Benefits paid | (2 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||
Benefit obligation at end of year | 25 | 26 | 11 | 13 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | — | — | — | — | ||||||||||||||||||||
Employer contributions | 2 | 1 | 1 | — | ||||||||||||||||||||
Benefits paid | (2 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||
Fair value of plan assets at end of year | — | — | — | — | ||||||||||||||||||||
Funded status at end of year | $ | (25 | ) | $ | (26 | ) | $ | (11 | ) | $ | (13 | ) | ||||||||||||
Amounts recognized in “Other liabilities” on the Statements of Condition for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan were $36 and $39 as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Net loss | $ | 11 | $ | 14 | $ | 3 | $ | 5 | ||||||||||||||||
Prior service credit | — | — | (2 | ) | (2 | ) | ||||||||||||||||||
Total amount recognized | $ | 11 | $ | 14 | $ | 1 | $ | 3 | ||||||||||||||||
The accumulated benefit obligation for the supplemental defined benefit pension plan was $16 as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Amortization of prior service credit | — | — | — | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||
Amortization of net loss | 2 | 1 | 1 | — | — | — | ||||||||||||||||||
Settlement loss | — | — | 1 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | 4 | 3 | 4 | 1 | 1 | 1 | ||||||||||||||||||
Other changes in benefit obligations recognized in other comprehensive income (loss): | ||||||||||||||||||||||||
Net (gain) loss | (1 | ) | 5 | 2 | (2 | ) | — | 1 | ||||||||||||||||
Amortization of net loss | (2 | ) | (1 | ) | (1 | ) | — | — | — | |||||||||||||||
Amortization of prior service credit | — | — | — | 1 | 1 | 1 | ||||||||||||||||||
Settlement loss | — | — | (1 | ) | — | — | — | |||||||||||||||||
Total recognized in other comprehensive income (loss) | (3 | ) | 4 | — | (1 | ) | 1 | 2 | ||||||||||||||||
Total recognized in periodic benefit cost and other comprehensive income (loss) | $ | 1 | $ | 7 | $ | 4 | $ | — | $ | 2 | $ | 3 | ||||||||||||
The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | Total | ||||||||||||||||||||||
Net loss | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
Prior service credit | — | (1 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 1 | $ | (1 | ) | $ | — | |||||||||||||||||
The measurement date used to determine the Bank's 2013 benefit obligation was December 31, 2013. | ||||||||||||||||||||||||
Key assumptions used for the actuarial calculations to determine benefit obligations for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan (%) | Postretirement Health Benefit Plan (%) | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 5.04 | 4.1 | 5.05 | 4.15 | ||||||||||||||||||||
Rate of compensation increase | 5.5 | 5.5 | N/A | N/A | ||||||||||||||||||||
Key assumptions used for the actuarial calculations to determine net periodic benefit cost for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan (%) | Postretirement Health | |||||||||||||||||||||||
Benefit Plan (%) | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.1 | 3.73 | 4.53 | 4.15 | 4.4 | 5.55 | ||||||||||||||||||
Rate of compensation increase | 5.5 | 5.5 | 5.5 | N/A | N/A | N/A | ||||||||||||||||||
The discount rate used for the years ended December 31, 2013 and December 31, 2012 was derived by matching projected benefit payments to bond yields obtained from the Towers Watson's proprietary RATE:Link 40-90 pension discount curve developed as of the measurement date. The Towers Watson RATE:Link 40-90 pension discount curve is based on certain corporate bonds rated Aa whose weighted average yields lie within the 40th to 90th percentiles of the bonds considered. The discount rate used for the year ended December 31, 2011 was derived using a discounted cash flow approach, which incorporated matching the timing and amount of each expected future benefit payment against the Citigroup Pension Discount Curve. | ||||||||||||||||||||||||
Assumed health-care cost trend rates for the Bank's postretirement health benefit plan were as follows: | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Assumed for next year (%) | 7.75 | 8 | ||||||||||||||||||||||
Ultimate rate (%) | 5 | 5 | ||||||||||||||||||||||
Year that ultimate rate is reached | 2023 | 2017 | ||||||||||||||||||||||
As of December 31, 2013, a one percentage point change in the assumed health-care cost trend rates would have the following effects: | ||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on total service and interest cost components | $ | — | $ | — | ||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | — | (1 | ) | |||||||||||||||||||||
The supplemental defined benefit pension plan and postretirement health benefit plan are not funded plans; therefore, the Bank will not make contributions to them in 2014 except for the payment of benefits. | ||||||||||||||||||||||||
The benefits the Bank expects to pay in each of the next five years and subsequent five years for the supplemental defined benefit pension plan are listed in the table below: | ||||||||||||||||||||||||
Years | Supplemental Defined Benefit Pension Plan | |||||||||||||||||||||||
2014 | $ | 2 | ||||||||||||||||||||||
2015 | 2 | |||||||||||||||||||||||
2016 | 2 | |||||||||||||||||||||||
2017 | 3 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019-2023 | 14 | |||||||||||||||||||||||
The benefits the Bank expects to pay for the postretirement health benefit plan for the years 2014 through 2018 is less than $1 per year and for 2019 through 2023 the amount expected to be paid totals $3. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivatives and Hedging Activities | ' | |||||||||||||||||||||||
Derivatives and Hedging Activities | ||||||||||||||||||||||||
Nature of Business Activity | ||||||||||||||||||||||||
The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and its funding sources that finance these assets. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of interest-earning assets and funding sources. | ||||||||||||||||||||||||
The Bank enters into derivatives to manage the interest-rate risk exposure inherent in its otherwise unhedged assets and funding sources, to achieve the Bank's risk management objectives, and to act as an intermediary between its members and counterparties. Finance Agency regulations and the Bank's risk management policy 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 the Bank's financial management strategy. | ||||||||||||||||||||||||
The most common ways in which the Bank uses derivatives are to: | ||||||||||||||||||||||||
• | 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 bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps; | |||||||||||||||||||||||
• | reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond; | |||||||||||||||||||||||
• | reduce the interest-rate sensitivity and repricing gaps of assets and liabilities; | |||||||||||||||||||||||
• | mitigate the adverse earnings effects of the shortening or extension of certain assets (e.g., mortgage assets); | |||||||||||||||||||||||
• | protect the value of existing asset or liability positions; | |||||||||||||||||||||||
• | manage embedded options in assets and liabilities; and | |||||||||||||||||||||||
• | achieve overall asset/liability management objectives. | |||||||||||||||||||||||
Application of Derivatives | ||||||||||||||||||||||||
General. The Bank may use derivatives to, in effect, adjust the term, repricing frequency, or option characteristics of financial instruments to achieve its risk management and funding objectives. The Bank uses derivatives in three ways: (1) as a fair value hedge of an underlying financial instrument or a firm commitment; (2) as an intermediary transaction; or (3) as a non-qualifying hedge for purposes of asset or liability management. In addition to using derivatives to manage mismatches of interest rates between assets and liabilities, the Bank also uses derivatives to manage embedded options in assets and liabilities, to hedge the fair value of existing assets and liabilities, to hedge the duration risk of prepayable instruments, to offset exactly other derivatives executed with members (when the Bank serves as an intermediary) and to reduce funding costs. | ||||||||||||||||||||||||
The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies. | ||||||||||||||||||||||||
The Bank 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 with a counterparty (bilateral derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent), with a Derivative Clearing Organization (cleared derivatives). | ||||||||||||||||||||||||
Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. The Clearinghouse notifies the clearing agent of the required initial and variation margin and the clearing agent notifies the Bank of the required initial and variation margin. The Bank is not a derivative dealer and does not trade derivatives for short-term profit. | ||||||||||||||||||||||||
The Bank uses derivatives when they are considered to be the most cost-effective alternative to achieve the Bank's financial and risk management objectives. Accordingly, the Bank may enter into derivatives that do not qualify for hedge accounting (non-qualifying hedges). | ||||||||||||||||||||||||
Types of Derivatives | ||||||||||||||||||||||||
The Bank may use the following derivatives to reduce funding costs and to manage its exposure to interest-rate risks inherent in the normal course of business. | ||||||||||||||||||||||||
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 paid 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-rate for the same period of time. The variable rate received or paid by the Bank in most derivative transactions agreements is LIBOR. | ||||||||||||||||||||||||
Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest-rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank when it is planning to lend or borrow funds in the future against future interest rate changes. The Bank may purchase both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date and a receiver swaption is the option to receive fixed interest payments at a later date. | ||||||||||||||||||||||||
Interest-Rate Cap and Floor Agreements. In an interest-rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest-rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps may be used in conjunction with liabilities and floors may be used in conjunction with assets. Caps and floors are designed as protection against the interest rate on a variable-rate asset or liability rising above or falling below a certain level. | ||||||||||||||||||||||||
Types of Hedged Items | ||||||||||||||||||||||||
The Bank documents at inception all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition or (2) firm commitments. The Bank also formally assesses (both at the hedge's inception and at least quarterly on an ongoing basis) whether the derivatives that it uses in hedging relationships have been effective in offsetting changes in the fair value of hedged items attributable to the risk being hedged and whether those derivatives may be expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. | ||||||||||||||||||||||||
Consolidated Obligations. While consolidated obligations are the joint and several obligations of the FHLBanks, each FHLBank has consolidated obligations for which it is the primary obligor. The Bank enters into derivatives to hedge the interest-rate risk associated with its specific debt issuances in conjunction with associated interest-rate risk on advances. The Bank 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, in a typical transaction, fixed-rate consolidated obligations are issued for the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows to the Bank designed to mirror in timing and amount the cash outflows the Bank pays on the consolidated obligation. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances (typically one- or three-month LIBOR). These transactions are typically treated as fair-value hedges. This intermediation between the capital and swap markets permits the Bank to raise funds at lower costs than otherwise would be available through the issuance of simple fixed-rate consolidated obligations in the capital markets. | ||||||||||||||||||||||||
Advances. The Bank offers a variety of advance structures to meet members' funding needs. These advances may have maturities of up to 30 years with variable or fixed rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and/or options characteristics of advances in order to more closely match the characteristics of the Bank's funding liabilities. In general, whenever a member executes a fixed-rate advance or a variable-rate advance with embedded options, the Bank simultaneously will execute a derivative with terms that offset the terms and embedded options in the advance. For example, the Bank may hedge a fixed-rate advance with an interest-rate swap where the Bank pays a fixed-rate coupon and receives a variable-rate coupon, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair-value hedge. | ||||||||||||||||||||||||
Mortgage Assets. The Bank has invested in mortgage assets. The prepayment options embedded in mortgage assets may result in extensions or contractions in the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest-rate and prepayment risk associated with mortgages through a combination of debt issuance and derivatives. The Bank issues both callable and noncallable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may use derivatives to match the expected prepayment characteristics of the mortgages. | ||||||||||||||||||||||||
Options (interest-rate caps, interest-rate floors and/or options) also may be used to hedge prepayment risk on the mortgages, many of which are not identified to specific mortgages and, therefore, do not receive fair-value or cash-flow hedge accounting treatment. The Bank also may purchase interest-rate caps and floors, swaptions, callable swaps, calls, and puts to minimize the prepayment risk embedded in the mortgage loans. Although these derivatives are valid non-qualifying hedges against the prepayment risk of the loans, they do not receive either fair-value or cash-flow hedge accounting. These derivatives are marked-to-market through earnings. | ||||||||||||||||||||||||
Firm Commitments. Certain mortgage purchase commitments are considered derivatives. Mortgage purchase commitments are recorded on the balance sheet at fair value, with changes in fair value recognized in current-period earnings. When the mortgage purchase commitment derivative settles, the current fair value of the commitment is included with the basis of the mortgage loan and amortized accordingly. | ||||||||||||||||||||||||
The Bank also may enter into a fair value hedge of a firm commitment for a forward starting advance through the use of an interest-rate swap. In this case, the swap will function as the hedging instrument for both the firm commitment and the subsequent advance. The basis movement associated with the firm commitment will be recorded as a basis adjustment of the advance at the time the commitment is terminated and the advance is issued. The basis adjustment will then be amortized into interest income over the life of the advance using the level-yield method. | ||||||||||||||||||||||||
Investments. The Bank invests in MBS, U.S. agency obligations, certificates of deposit, and the taxable portion of state or local housing finance agency obligations. The interest-rate and prepayment risks associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest-rate risks by funding investment securities with consolidated obligations that have call features, or by hedging the prepayment risk with caps or floors, or by adjusting the duration of the securities by using derivatives to modify the cash flows of the securities. Investment securities may be classified as trading, available-for-sale or held-to-maturity. | ||||||||||||||||||||||||
The Bank also may manage the risk arising from changing market prices and volatility of investment securities classified as trading by entering into derivatives (non-qualifying hedges) that offset the changes in fair value of the securities. | ||||||||||||||||||||||||
Financial Statement Effect and Additional Financial Information | ||||||||||||||||||||||||
Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives reflects the Bank's involvement in the various classes of financial instruments and represents neither the actual amounts exchanged nor the overall exposure of the Bank 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 counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. | ||||||||||||||||||||||||
The following table summarizes the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest. | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Notional | Derivative Assets | Derivative Liabilities | Notional | Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Amount of Derivatives | Amount of Derivatives | |||||||||||||||||||||||
Derivatives in hedging relationships: | ||||||||||||||||||||||||
Interest rate swaps | $ | 84,740 | $ | 800 | $ | (2,336 | ) | $ | 102,660 | $ | 1,129 | $ | (3,689 | ) | ||||||||||
Total derivatives in hedging relationships | 84,740 | 800 | (2,336 | ) | 102,660 | 1,129 | (3,689 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | 4,414 | 14 | (309 | ) | 9,570 | 29 | (497 | ) | ||||||||||||||||
Interest rate swaptions | 40 | 1 | (1 | ) | — | — | — | |||||||||||||||||
Interest rate caps or floors | 12,500 | 44 | (28 | ) | 12,500 | 32 | (22 | ) | ||||||||||||||||
Total derivatives not designated as hedging instruments | 16,954 | 59 | (338 | ) | 22,070 | 61 | (519 | ) | ||||||||||||||||
Total derivatives before netting and collateral adjustments | $ | 101,694 | 859 | (2,674 | ) | $ | 124,730 | 1,190 | (4,208 | ) | ||||||||||||||
Netting adjustments | (741 | ) | 741 | (1,089 | ) | 1,089 | ||||||||||||||||||
Cash collateral and related accrued interest | (65 | ) | 1,746 | (88 | ) | 2,961 | ||||||||||||||||||
Total collateral and netting adjustments (1) | (806 | ) | 2,487 | (1,177 | ) | 4,050 | ||||||||||||||||||
Derivative assets and derivative liabilities | $ | 53 | $ | (187 | ) | $ | 13 | $ | (158 | ) | ||||||||||||||
___________ | ||||||||||||||||||||||||
(1) | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty. | |||||||||||||||||||||||
The following tables present the components of net gains (losses) on derivatives and hedging activities as presented in the Statements of Income: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Derivatives and hedged items in fair value hedging relationships: | ||||||||||||||||||||||||
Interest rate swaps | $ | 180 | $ | 167 | $ | 144 | ||||||||||||||||||
Total net gains related to fair value hedge ineffectiveness | 180 | 167 | 144 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | 102 | 52 | 12 | |||||||||||||||||||||
Interest rate caps or floors | 6 | (1 | ) | (23 | ) | |||||||||||||||||||
Net interest settlements | (84 | ) | (101 | ) | (142 | ) | ||||||||||||||||||
Total net gains (losses) related to derivatives not designated as hedging instruments | 24 | (50 | ) | (153 | ) | |||||||||||||||||||
Net gains (losses) on derivatives and hedging activities | $ | 204 | $ | 117 | $ | (9 | ) | |||||||||||||||||
The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income: | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | 1,880 | $ | (1,678 | ) | $ | 202 | $ | (1,033 | ) | ||||||||||||||
Consolidated obligations bonds | (868 | ) | 846 | (22 | ) | 602 | ||||||||||||||||||
Total | $ | 1,012 | $ | (832 | ) | $ | 180 | $ | (431 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | 554 | $ | (355 | ) | $ | 199 | $ | (1,397 | ) | ||||||||||||||
Consolidated obligations bonds | (191 | ) | 159 | (32 | ) | 574 | ||||||||||||||||||
Total | $ | 363 | $ | (196 | ) | $ | 167 | $ | (823 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | (201 | ) | $ | 347 | $ | 146 | $ | (2,054 | ) | ||||||||||||||
Consolidated obligations: | ||||||||||||||||||||||||
Bonds | 23 | (25 | ) | (2 | ) | 804 | ||||||||||||||||||
Discount notes | (2 | ) | 2 | — | 2 | |||||||||||||||||||
Total | $ | (180 | ) | $ | 324 | $ | 144 | $ | (1,248 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
Managing Credit Risk on Derivatives | ||||||||||||||||||||||||
The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions and manages credit risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. For bilateral derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all bilateral derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement and held by the member institution for the benefit of the Bank. | ||||||||||||||||||||||||
For cleared derivatives, the Clearinghouse is the Bank's counterparty. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the value of cleared derivatives. The Bank 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 the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. | ||||||||||||||||||||||||
The Bank presents derivative instruments, related cash collateral, including initial and variation margin, received or pledged and associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements. | ||||||||||||||||||||||||
The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||
Gross recognized amount: | ||||||||||||||||||||||||
Bilateral derivatives | $ | 820 | $ | (2,545 | ) | $ | 1,190 | $ | (4,208 | ) | ||||||||||||||
Cleared derivatives | 39 | (129 | ) | — | — | |||||||||||||||||||
Total gross recognized amount | 859 | (2,674 | ) | 1,190 | (4,208 | ) | ||||||||||||||||||
Gross amounts of netting adjustments and cash collateral: | ||||||||||||||||||||||||
Bilateral derivatives | (818 | ) | 2,358 | (1,177 | ) | 4,050 | ||||||||||||||||||
Cleared derivatives | 12 | 129 | — | — | ||||||||||||||||||||
Total gross amounts of netting adjustments and cash collateral | (806 | ) | 2,487 | (1,177 | ) | 4,050 | ||||||||||||||||||
Derivative assets and derivative liabilities: | ||||||||||||||||||||||||
Bilateral derivatives | 2 | (187 | ) | 13 | (158 | ) | ||||||||||||||||||
Cleared derivatives | 51 | — | — | — | ||||||||||||||||||||
Total derivative assets and total derivative liabilities | 53 | (187 | ) | 13 | (158 | ) | ||||||||||||||||||
Non-cash collateral received or pledged not offset- cannot be sold or repledged: (1) | ||||||||||||||||||||||||
Bilateral derivatives | — | — | 1 | — | ||||||||||||||||||||
Cleared derivatives | — | — | — | — | ||||||||||||||||||||
Total cannot be sold or repledged | — | — | 1 | — | ||||||||||||||||||||
Net unsecured amounts: (2) | ||||||||||||||||||||||||
Bilateral derivatives | 2 | (187 | ) | 12 | (158 | ) | ||||||||||||||||||
Cleared derivatives | 51 | — | — | — | ||||||||||||||||||||
Total net unsecured amount | $ | 53 | $ | (187 | ) | $ | 12 | $ | (158 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Collateral held with respect to derivatives with member institutions where the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. | |||||||||||||||||||||||
(2) | The Bank had net credit exposure of $47 and $8 as of December 31, 2013 and 2012, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net position. | |||||||||||||||||||||||
Certain of the Bank’s bilateral derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank’s credit rating. If the Bank’s credit rating is lowered by a NRSRO, the Bank may be required to deliver additional collateral on derivative instruments in net liability positions. The aggregate fair value of all bilateral derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) as of December 31, 2013 was $1,791, for which the Bank has posted collateral with a fair value of $1,605 in the normal course of business. If the Bank’s credit ratings had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver an additional $65 of collateral at fair value to its bilateral derivative counterparties as of December 31, 2013. |
Estimated_Fair_Values
Estimated Fair Values | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Estimated Fair Values | ' | |||||||||||||||||||||||
Estimated Fair Values | ||||||||||||||||||||||||
The Bank records trading securities, available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is a market-based measurement and is defined 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. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the assets or owes the liability. In general, the transaction price will equal the exit price and, therefore, represent the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction and the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market. | ||||||||||||||||||||||||
A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. The fair value hierarchy defines fair value in terms of a price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability at the measurement date (an exit price). In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy. | ||||||||||||||||||||||||
Outlined below is the application of the “fair value hierarchy” to the Bank's financial assets and financial liabilities that are carried at fair value. | ||||||||||||||||||||||||
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. 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. As of December 31, 2013, the Bank carried grantor trust assets at fair value hierarchy Level 1. | ||||||||||||||||||||||||
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. As of December 31, 2013, the Bank carried trading securities and derivatives at fair value hierarchy Level 2. | ||||||||||||||||||||||||
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by little or no market activity and reflect the entity's own assumptions. As of December 31, 2013, the Bank carried available-for-sale securities at fair value hierarchy Level 3. | ||||||||||||||||||||||||
The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||||||||||||||||||||||
Fair Value on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition: | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustment (1) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | — | $ | 1,601 | $ | — | $ | — | $ | 1,601 | ||||||||||||||
Another FHLBank’s bond | — | 65 | — | — | 65 | |||||||||||||||||||
State or local housing agency debt obligations | — | 1 | — | — | 1 | |||||||||||||||||||
Total trading securities | — | 1,667 | — | — | 1,667 | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Private-label residential MBS | — | — | 2,299 | — | 2,299 | |||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Interest-rate related | — | 859 | — | (806 | ) | 53 | ||||||||||||||||||
Grantor trust (included in Other assets) | 21 | — | — | — | 21 | |||||||||||||||||||
Total assets at fair value | $ | 21 | $ | 2,526 | $ | 2,299 | $ | (806 | ) | $ | 4,040 | |||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Interest-rate related | $ | — | $ | (2,674 | ) | $ | — | $ | 2,487 | $ | (187 | ) | ||||||||||||
Total liabilities at fair value | $ | — | $ | (2,674 | ) | $ | — | $ | 2,487 | $ | (187 | ) | ||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustment (1) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | — | $ | 2,291 | $ | — | $ | — | $ | 2,291 | ||||||||||||||
Another FHLBank’s bond | — | 77 | — | — | 77 | |||||||||||||||||||
State or local housing agency debt obligations | — | 2 | — | — | 2 | |||||||||||||||||||
Total trading securities | — | 2,370 | — | — | 2,370 | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Private-label residential MBS | — | — | 2,676 | — | 2,676 | |||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Interest-rate related | — | 1,190 | — | (1,177 | ) | 13 | ||||||||||||||||||
Grantor trust (included in Other assets) | 17 | — | — | — | 17 | |||||||||||||||||||
Total assets at fair value | $ | 17 | $ | 3,560 | $ | 2,676 | $ | (1,177 | ) | $ | 5,076 | |||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Interest-rate related | $ | — | $ | (4,208 | ) | $ | — | $ | 4,050 | $ | (158 | ) | ||||||||||||
Total liabilities at fair value | $ | — | $ | (4,208 | ) | $ | — | $ | 4,050 | $ | (158 | ) | ||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Amounts represent the effect of legally enforceable master netting agreements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||||||||||||||||||||
For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out at fair value as of the beginning of the quarter in which the changes occur. There were no such transfers during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
The following table presents a reconciliation of available-for-sale securities that are measured at fair value using significant unobservable inputs (Level 3): | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Balance, beginning of year | $ | 2,676 | $ | 2,942 | $ | 3,319 | ||||||||||||||||||
Transfer of private-label MBS from held-to-maturity to available-for-sale | 11 | 6 | 451 | |||||||||||||||||||||
Total (losses) gains realized and unrealized: (1) | ||||||||||||||||||||||||
Included in net impairment losses recognized in earnings | — | (16 | ) | (111 | ) | |||||||||||||||||||
Included in other comprehensive income (loss) (2) | 167 | 357 | 31 | |||||||||||||||||||||
Accretion of credit losses in net interest income | 10 | 4 | (11 | ) | ||||||||||||||||||||
Settlements | (565 | ) | (617 | ) | (737 | ) | ||||||||||||||||||
Balance, end of year | $ | 2,299 | $ | 2,676 | $ | 2,942 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Related to available-for-sale securities held at year end. | |||||||||||||||||||||||
(2) | This amount is included in other comprehensive income (loss) within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income. | |||||||||||||||||||||||
Described below are the Bank's fair value measurement methodologies for financial assets and liabilities measured or disclosed at fair value. | ||||||||||||||||||||||||
Cash and Due from Banks. The estimated fair value approximates the recorded carrying value. | ||||||||||||||||||||||||
Interest-bearing Deposits. The estimated fair value is determined by calculating the present value of the expected future cash flows from the deposits and reducing this amount for accrued interest receivable. The discount rate used in these calculations is the rate for deposits with similar terms and represents market observable rates. | ||||||||||||||||||||||||
Securities purchased under agreements to resell. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for securities with similar terms and represent market observable rates. | ||||||||||||||||||||||||
Federal Funds Sold. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for federal funds with similar terms and represent market observable rates. | ||||||||||||||||||||||||
Investment Securities. The Bank obtains prices from four designated third-party pricing vendors when available to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. 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 investment securities do not trade on a daily basis, the pricing vendors use available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank. | ||||||||||||||||||||||||
The Bank periodically conducts reviews of the four pricing vendors to confirm and further augment its understanding of the vendors' pricing processes, methodologies, and control procedures for agency and private-label MBS. | ||||||||||||||||||||||||
The Bank's valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security. | ||||||||||||||||||||||||
All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “default” price. All prices that are outside the threshold (“outliers”) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. Alternatively, if the analysis does not provide evidence that an outlier is in fact more representative of the 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, 2013 and 2012, four vendor prices were received for a majority of the Bank's investment securities holdings and the final prices for those securities were computed by averaging the prices received. Based on the Bank's review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or, in those instances in which there were outliers or significant yield variances, the Bank's additional analyses), the Bank believes its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value hierarchy. Based on the lack of significant market activity for private-label MBS, the fair value measurement for those securities were classified as Level 3 within the fair value hierarchy as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
As an additional step for certain securities, the Bank reviewed the final fair value estimates of its private-label MBS holdings for reasonableness using an implied yield test. The Bank calculated an implied yield for certain of its private-label MBS using the estimated fair value derived from the process described above and the security's projected cash flows from the Bank's other-than-temporary impairment process and compared such yield to the market yield for comparable securities according to a third source to the extent comparable market yield data was available. This analysis did not indicate that any material adjustments to the fair value estimates were necessary. | ||||||||||||||||||||||||
Mortgage Loans Held for Portfolio. The estimated fair values for mortgage loans are determined based on quoted market prices of similar mortgage loans available in the pass-through securities market. These prices, however, can change rapidly based upon market conditions and are highly dependent upon the underlying prepayment assumptions. | ||||||||||||||||||||||||
Advances. The Bank determines the estimated fair values of advances by calculating the present value of expected future cash flows from the advances and excluding the amount of the accrued interest receivable. The discount rates used in these calculations are the replacement advance rates based on the market observable LIBOR curve for advances with similar terms as of December 31, 2013 and 2012, respectively. In accordance with the advances regulations, advances with a maturity or repricing period greater than six months require a prepayment fee sufficient to make the Bank financially indifferent to the borrower's decision to prepay the advances, thereby removing prepayment risk from the fair value calculation. The Bank did not adjust the fair value measurement of advances for creditworthiness because advances were fully collateralized as described in Note 10–Advances. | ||||||||||||||||||||||||
Accrued Interest Receivable and Payable. The estimated fair value approximates the recorded carrying value. | ||||||||||||||||||||||||
Derivative Assets and Liabilities. The Bank calculates the fair value of derivatives using a present value of future cash flows discounted by a market observable rate. The Bank used OIS to discount future cash flows for collateralized derivatives. | ||||||||||||||||||||||||
Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank's derivatives obviate the need to provide such a credit valuation adjustment. The fair values of the Bank's derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis. The Bank and each bilateral derivative counterparty have bilateral collateral thresholds that take into account both the Bank's and the counterparty's credit ratings. As a result of these practices and agreements, the Bank has concluded that the impact of the credit differential between the Bank and its derivative counterparties was mitigated to an immaterial level and no further adjustments were deemed necessary to the recorded fair values of derivative assets and liabilities on the Statements of Condition as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
Grantor Trust Assets. Grantor trust assets, included as a component of Other assets, are carried at estimated fair value based on quoted market prices. | ||||||||||||||||||||||||
Interest-bearing Deposits. The Bank determines estimated fair values of Bank deposits by calculating the present value of expected future cash flows from the deposits and reducing this amount for accrued interest payable. The discount rate used in these calculations is based on LIBOR. | ||||||||||||||||||||||||
Consolidated Obligations. The Bank calculates the fair value of consolidated obligation bonds and discount notes by using the present value of future cash flows using a cost of funds as the discount rate. The cost of funds discount curves are based primarily on the market observable LIBOR and to some extent on the Office of Finance cost of funds curve, which also is market observable. | ||||||||||||||||||||||||
Mandatorily Redeemable Capital Stock. The fair value of mandatorily redeemable capital stock is par value, including estimated dividends earned at the time of reclassification from capital to liabilities, until such amount is paid. Capital stock can be acquired by members only at par value and redeemed by the Bank at par value. Capital stock is not traded and no market mechanism exists for the exchange of capital stock outside the cooperative structure. | ||||||||||||||||||||||||
The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of December 31, 2013 and 2012. Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology. | ||||||||||||||||||||||||
For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions, although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets versus liabilities. | ||||||||||||||||||||||||
The carrying values and estimated fair values of the Bank’s financial instruments were as follows: | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 4,374 | $ | 4,374 | $ | 4,374 | $ | — | $ | — | $ | — | ||||||||||||
Interest bearing-deposits | 1,007 | 1,007 | — | 1,007 | — | — | ||||||||||||||||||
Federal funds sold | 1,795 | 1,795 | — | 1,795 | — | — | ||||||||||||||||||
Trading securities | 1,667 | 1,667 | — | 1,667 | — | — | ||||||||||||||||||
Available-for-sale securities | 2,299 | 2,299 | — | — | 2,299 | — | ||||||||||||||||||
Held-to-maturity securities | 20,176 | 20,146 | — | 18,225 | 1,921 | — | ||||||||||||||||||
Mortgage loans held for portfolio, net | 918 | 1,004 | — | 1,004 | — | — | ||||||||||||||||||
Advances | 89,588 | 89,413 | — | 89,413 | — | — | ||||||||||||||||||
Accrued interest receivable | 199 | 199 | — | 199 | — | — | ||||||||||||||||||
Derivative assets | 53 | 53 | — | 859 | — | (806 | ) | |||||||||||||||||
Grantor trust assets (included in Other assets) | 21 | 21 | 21 | — | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | (1,752 | ) | (1,752 | ) | — | (1,752 | ) | — | — | |||||||||||||||
Consolidated obligations, net: | ||||||||||||||||||||||||
Discount notes | (32,202 | ) | (32,203 | ) | — | (32,203 | ) | — | — | |||||||||||||||
Bonds | (80,728 | ) | (80,733 | ) | — | (80,733 | ) | — | — | |||||||||||||||
Mandatorily redeemable capital stock | (24 | ) | (24 | ) | (24 | ) | — | — | — | |||||||||||||||
Accrued interest payable | (183 | ) | (183 | ) | — | (183 | ) | — | — | |||||||||||||||
Derivative liabilities | (187 | ) | (187 | ) | — | (2,674 | ) | — | 2,487 | |||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 4,083 | $ | 4,083 | $ | 4,083 | $ | — | $ | — | $ | — | ||||||||||||
Interest bearing-deposits | 1,005 | 1,005 | — | 1,005 | — | — | ||||||||||||||||||
Securities purchased under agreements to resell | 250 | 250 | — | 250 | — | — | ||||||||||||||||||
Federal funds sold | 7,235 | 7,235 | — | 7,235 | — | — | ||||||||||||||||||
Trading securities | 2,370 | 2,370 | — | 2,370 | — | — | ||||||||||||||||||
Available-for-sale securities | 2,676 | 2,676 | — | — | 2,676 | — | ||||||||||||||||||
Held-to-maturity securities | 16,918 | 17,124 | — | 14,366 | 2,758 | — | ||||||||||||||||||
Mortgage loans held for portfolio, net (1) | 1,244 | 1,358 | — | 1,358 | — | — | ||||||||||||||||||
Advances (2) | 87,503 | 87,933 | — | 87,933 | — | — | ||||||||||||||||||
Accrued interest receivable | 240 | 240 | — | 240 | — | — | ||||||||||||||||||
Derivative assets | 13 | 13 | — | 1,190 | — | (1,177 | ) | |||||||||||||||||
Grantor trust assets (included in Other assets) | 17 | 17 | 17 | — | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | (2,094 | ) | (2,094 | ) | — | (2,094 | ) | — | — | |||||||||||||||
Consolidated obligations, net: | ||||||||||||||||||||||||
Discount notes | (31,737 | ) | (31,739 | ) | — | (31,739 | ) | — | — | |||||||||||||||
Bonds (3) | (82,947 | ) | (83,671 | ) | — | (83,671 | ) | — | — | |||||||||||||||
Mandatorily redeemable capital stock | (40 | ) | (40 | ) | (40 | ) | — | — | — | |||||||||||||||
Accrued interest payable | (229 | ) | (229 | ) | — | (229 | ) | — | — | |||||||||||||||
Derivative liabilities | (158 | ) | (158 | ) | — | (4,208 | ) | — | 4,050 | |||||||||||||||
____________ | ||||||||||||||||||||||||
-1 | The estimated fair value of mortgage loans held for portfolio, net was adjusted by $19, which represents a change of 1.36 percent from the previously reported value. | |||||||||||||||||||||||
(2) | The estimated fair value of advances was adjusted by $12, which represents a change of 0.01 percent from the previously reported value. | |||||||||||||||||||||||
(3) | The estimated fair value of consolidated obligation bonds was adjusted by $79, which represents a change of 0.09 percent from the previously reported value. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
As described in Note 13–Consolidated Obligations, consolidated obligations are backed only by the financial resources of the 12 FHLBanks. The Finance Agency may at any time require any FHLBank to make principal or interest payments due on any consolidated obligations, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank. | ||||||||
The Bank determined it is not necessary to recognize a liability for the fair value of the Bank's joint and several liability for all of the consolidated obligations. The joint and several obligations are mandated by Finance Agency regulations and are not the result of arms-length transactions among the FHLBanks. The FHLBanks have no control over the amount of the guaranty or the determination of how each FHLBank would perform under the joint and several obligation. Accordingly, the Bank has not recognized a liability for its joint and several obligation related to other FHLBanks' consolidated obligations as of December 31, 2013 and 2012. The par value of the FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $654,076 and $574,257 as of December 31, 2013 and 2012, respectively, exclusive of the Bank’s own outstanding consolidated obligations. | ||||||||
The Bank issues standby letters of credit for the account of its members for a fee. A standby letter of credit is a financing arrangement between the Bank and its member. If the Bank is required to make payment for a beneficiary's draw, the Bank in its discretion may convert such paid amount to an advance to the member and will require a corresponding activity-based capital stock purchase. | ||||||||
The Bank’s outstanding standby letters of credit were as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Standby letters of credit | $ | 27,789 | $ | 17,687 | ||||
Original terms (1) | One month to 20 years | Less than four months to 20 years | ||||||
Final expiration year | 2030 | 2030 | ||||||
____________ | ||||||||
(1) | The Bank had 14 standby letters of credit for a total of $20 as of December 31, 2013, and five standby letters of credit for a total of $49 as of December 31, 2012, that have no stated maturity date and are subject to renewal on an annual basis. | |||||||
The carrying value of the guarantees related to standby letters of credit is recorded in other liabilities and amounted to $137 and $74 as of December 31, 2013 and 2012, respectively. Based on the Bank's credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on these commitments. | ||||||||
The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that results in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements. | ||||||||
Commitments that legally bind and unconditionally obligate the Bank for additional advances were $144 and $5 as of December 31, 2013 and December 31, 2012, respectively, and may be outstanding for periods of up to two years. | ||||||||
The Bank had no commitments that unconditionally obligate the Bank to purchase closed mortgage loans as of December 31, 2013 and 2012. Such commitments would be recorded as derivatives at their fair values. | ||||||||
As of December 31, 2013, the Bank had committed to the issuance of $171 (par value) in consolidated obligation bonds, of which $145 were hedged with associated interest rate swaps, and $467 (par value) in consolidated obligation discount notes, none of which were hedged with associated interest rate swaps, that had traded but not yet settled. As of December 31, 2012, the Bank had committed to the issuance of $3,055 (par value) in consolidated obligation bonds, of which $3,035 were hedged with associated interest rate swaps that had traded but not yet settled. | ||||||||
The Bank charged to operating expenses net rental costs of $2 for the years ended December 31, 2013, 2012, and 2011. | ||||||||
Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from increases in property taxes and maintenance expenses. Such increases are not expected to have a material effect on the Bank's results of operations. | ||||||||
The Bank is subject to legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate, as of the date of the financial statements, that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank’s financial condition or results of operations. |
Transactions_With_Members_and_
Transactions With Members and Their Affiliates and With Housing Associates | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | ' |
Transactions With Members And Their Affiliates And With Housing Associates | ' |
Transactions with Members and their Affiliates and with Housing Associates | |
The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members, and certain non-members that own the Bank's capital stock as a result of a merger or acquisition of the Bank's member, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments, to the extent declared by the Bank’s board of directors. All advances are issued to members and eligible “housing associates” under the FHLBank Act, and mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loan purchases. | |
Transactions with any member that has an officer or director who also is a director of the Bank are subject to the same Bank policies as transactions with other members, and transactions with members which are entered into in the ordinary course of the Bank's business are not considered related party transactions subject to disclosure. | |
The Bank defines related parties as each of the other FHLBanks and those members with regulatory capital stock outstanding in excess of 10 percent of the Bank's total regulatory capital stock. Based on this definition, one member institution, Bank of America, National Association, which held 16.2 percent of the Bank’s total regulatory capital stock as of December 31, 2013, was considered a related party. Total advances outstanding to Bank of America, National Association were $17,263 and $9,914 as of December 31, 2013 and 2012, respectively. Total deposits held in the name of Bank of America, National Association were less than $1 as of December 31, 2013 and 2012. No mortgage loans or mortgage-backed securities were acquired from Bank of America, National Association during the three years ended December 31, 2013. | |
During 2013, the Bank agreed with certain of its defendants to settle claims arising from certain investments in private-label mortgage-backed securities. The gross settlement of these claims was $40, resulting in a gain of $33, net of legal fees and expenses, which is recorded in Other Income (Loss) as "Gain on Litigation Settlements." Included in these settlements was $25 (net of legal fees and expenses) related to one of the Bank’s members. |
Transactions_with_Other_FHLBan
Transactions with Other FHLBanks | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Transactions with Other FHLBanks [Abstract] | ' | ||||||||||||
Transactions With Other FHLBanks | ' | ||||||||||||
Transactions with Other FHLBanks | |||||||||||||
The Bank's activities with other FHLBanks are summarized below and have been identified in the Statements of Condition, Statements of Income and Statements of Cash Flows. | |||||||||||||
Borrowings with Other FHLBanks. Occasionally, the Bank loans (or borrows) short-term funds to (from) other FHLBanks. There were no loans to or borrowings from other FHLBanks outstanding as of December 31, 2013 and 2012. Interest income on loans to other FHLBanks and interest expense on borrowings from other FHLBanks was less than $1 for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||
The following table summarizes the cash flow activities for loans to and borrowings from other FHLBanks: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investing activities: | |||||||||||||
Loans made to other FHLBanks | $ | (305 | ) | $ | (484 | ) | $ | (859 | ) | ||||
Principal collected on loans to other FHLBanks | 305 | 484 | 859 | ||||||||||
Net change in loans to other FHLBanks | $ | — | $ | — | $ | — | |||||||
Financing activities: | |||||||||||||
Proceeds from short-term borrowings from other FHLBanks | $ | 2,270 | $ | 446 | $ | 3,066 | |||||||
Payments of short-term borrowings from other FHLBanks | (2,270 | ) | (446 | ) | (3,066 | ) | |||||||
Net change in borrowings from other FHLBanks | $ | — | $ | — | $ | — | |||||||
Investment in Another FHLBank's Consolidated Obligation Bond. The Bank's trading investment securities portfolio includes a consolidated obligation bond for which FHLBank Chicago is the primary obligor. The balance of this investment is presented in Note 5—Trading Securities. This consolidated obligation bond was purchased in the open market from a third party and is accounted for in the same manner as other similarly classified investments (see Note 2—Summary of Significant Accounting Policies). Interest income earned on the consolidated obligation bond on which FHLBank Chicago is the primary obligor totaled $9, $10, and $8 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||
MPF Program® Service Fees and Loan Participations. Beginning in 2005, the Bank began paying a fee to FHLBank Chicago for services performed by it under the MPF Program, one of the programs through which the Bank historically purchased mortgage loans. These fees totaled less than $1 for the year ended December 31, 2013, and $1 for the years ended December 31, 2012 and 2011 . | |||||||||||||
MPF Program Purchase of Participation Interests from Other FHLBanks. In 2000 and 2001, the Bank, together with FHLBank Pittsburgh and FHLBank Chicago, participated in the funding of one master commitment with a member of FHLBank Pittsburgh. As of December 31, 2013, the Bank's outstanding balance related to these MPF Program assets was $2. | |||||||||||||
Standby Letters of Credit Participation. In 2013, the Bank, together with the FHLBank of Seattle, entered into a participation agreement whereby FHLBank of Seattle guaranteed a standby letter of credit in the amount of $150. Fees paid to FHLBank Seattle associated with this agreement totaled less than $1 for the year ended December 31, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Use of Estimates | ' | |
Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. | ||
Estimated Fair Values | ' | |
Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank's best judgment of appropriate valuation methods. Although the Bank 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. | ||
Financial Instruments Meeting Netting Requirements | ' | |
Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting arrangements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. | ||
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. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 18—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. | ||
Investment | ' | |
Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. These investments provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans which are classified as assets in the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty has the option to (1) place an equivalent amount of additional securities in safekeeping in the name of the Bank or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans conducted with investment-grade counterparties and are carried at cost. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. | ||
Investment Securities. The Bank classifies certain investments acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net (losses) gains on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank's liquidity position. | ||
The Bank carries at amortized cost, and classifies as held-to-maturity, investments for which it has both the ability and intent to hold to maturity, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. | ||
The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in accumulated other comprehensive income (loss). The Bank intends to hold its available-for-sale securities for an indefinite period of time, but may sell them prior to maturity in response to changes in interest rates, changes in prepayment risk, or other factors. | ||
Certain changes in circumstances may cause the Bank to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. Thus, the sale or transfer of a held-to-maturity security to another investment classification due to certain changes in circumstances, such as evidence of significant deterioration in the issuer's creditworthiness, is not considered inconsistent with its original classification. | ||
Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances: | ||
• | the Bank has an intent to sell the impaired debt security; | |
• | if, based on available evidence, the Bank believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or | |
• | the Bank does not expect to recover the entire amortized cost basis of the impaired debt security. | |
If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security's amortized cost basis and its fair value as of the Statements of Condition date. | ||
For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in accumulated other comprehensive income (loss), which is a component of capital. The credit loss on a debt security is limited to the amount of that security's unrealized losses. The total other-than-temporary impairment is presented in the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in accumulated other comprehensive income (loss). The remaining amount in the Statements of Income represents the credit loss for the period. | ||
For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security's amortized cost less the amount of other-than-temporary impairment recognized in accumulated other comprehensive income (loss) prior to the determination of this additional other-than-temporary impairment and its fair value. Any additional credit loss is limited to that security's unrealized losses, or the difference between the security's amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in accumulated other comprehensive income (loss) related to the security, is reclassified out of accumulated other comprehensive income (loss) and recognized in earnings. Any credit loss in excess of the related accumulated other comprehensive income (loss) is recorded as additional total other-than-temporary impairment loss and recognized in earnings. | ||
For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income (loss) to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income (loss). | ||
Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security's expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. | ||
Advances | ' | |
Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the level-yield method. The Bank records interest on advances to interest income as earned. | ||
Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which the Bank funds a new advance within a short period of time from the prepayment of an existing advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using a level-yield method. This amortization is recorded in advance interest income. | ||
If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance and the Bank records the net fees as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. | ||
Mortgage Loans Held for Portfolio | ' | |
Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. | ||
The Bank defers and amortizes premiums and accretes discounts paid to and received by the participating financial institutions (PFI), and mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. | ||
A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of the (1) U.S. government guarantee or insurance on the loan and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. | ||
A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. | ||
Finance Agency regulations require that mortgage loans held in the Bank's portfolios be credit enhanced so that the Bank's risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk and in some instances all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. | ||
Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank's portfolio as of the Statements of Condition date. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for each of its portfolio segments of financing receivables: advances and letters of credit, government-guaranteed or insured single-family residential mortgage loans held for portfolio, conventional single-family residential mortgage loans held for portfolio, multifamily residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. | ||
A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables. The Bank determined that no further disaggregation of the portfolio segments identified above is needed as the credit risk arising from these financing receivables is assessed and measured by the Bank at the portfolio segment level. | ||
The Bank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower, an ongoing review of each borrower's financial condition, and conservative collateral and lending policies to limit risk of loss while balancing each borrower's needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower's advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. In addition, community financial institutions (CFIs) are eligible to utilize expanded statutory collateral provisions for small business, agriculture loans, and community development loans. The Bank's capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank's overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances. | ||
Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it, or requires the borrower to specifically assign or place physical possession of the collateral with the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank's security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law; and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. | ||
Using a risk-based approach and taking into consideration each borrower's financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. As of December 31, 2013 and 2012, the Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit. | ||
The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. As of December 31, 2013 and 2012, no advance was past due, on nonaccrual status, or considered impaired. In addition, there were no troubled debt restructurings related to advances. | ||
Based upon the collateral held as security, the Bank's collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances as of December 31, 2013 and 2012. Accordingly, as of December 31, 2013 and 2012, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure. | ||
The Bank invested in government-guaranteed or insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. 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 insurance or guarantee with respect to defaulted government-guaranteed or insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance, or guarantees. Based on the Bank's assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or insured mortgage loan portfolio as of December 31, 2013 and 2012. | ||
Modified loans that are considered a troubled debt restructuring, and certain other identified conventional single-family residential mortgage loans, are evaluated individually for impairment. All other conventional single-family residential mortgage loans are evaluated collectively for impairment. The overall allowance for credit losses on conventional single-family residential mortgage loans is determined by an analysis (at least quarterly) that includes consideration of various data, such as past performance, current performance, loan portfolio characteristics, collateral valuations, industry data, and prevailing economic conditions. Inherent in the Bank's evaluation of past performance is an analysis of various credit enhancements at the individual master commitment level to determine the credit enhancement available to recover losses on conventional single-family residential mortgage loans under each individual master commitment. | ||
A modified loan that is considered a troubled debt restructuring is individually evaluated for impairment when determining its related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date as well as the economic loss attributable to delaying the original contractual principal and interest due dates. | ||
The Bank sold its multifamily residential mortgage loan portfolio in August 2013. Prior to the sale, multifamily residential mortgage loans were individually evaluated for impairment. An independent third-party loan review was performed annually on all the Bank's multifamily residential mortgage loans to identify credit risks and to assess the overall ability of the Bank to collect on those loans. The allowance for credit losses related to multifamily residential mortgage loans was comprised of specific reserves and a general reserve. The Bank established a specific reserve for all multifamily residential mortgage loans with a credit rating at or below a predetermined classification. A general reserve was maintained on multifamily residential mortgage loans not subject to specific reserve allocations to recognize the economic uncertainty and the imprecision inherent in estimating and measuring losses when evaluating reserves for individual loans. To establish the general reserve, the Bank assigned a risk classification to this population of loans. A specified percentage was allocated to the general reserve for designated risk classification levels. The loans and risk classification designations were reviewed by the Bank on an annual basis. | ||
The Bank evaluates whether to record a charge-off on a conventional mortgage loan upon the occurrence of a confirming event. Confirming events include, but are not limited to, the occurrence of foreclosure or notification of a claim against any of the credit enhancements. A charge-off is recorded if the recorded investment in the loan will not be recovered. | ||
Term federal funds are generally short-term and their recorded balance approximates fair value. The Bank invests in federal funds with investment-grade counterparties that are only evaluated for purposes of an allowance for credit losses if the investment is not paid when due. As of December 31, 2013 and 2012, all investments in federal funds were repaid or expected to repay according to the contracted terms. | ||
Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans with investment-grade counterparties. The terms of these loans are structured such that if the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for the securities purchased under agreements to resell as of December 31, 2013 and 2012. | ||
Real Estate Owned | ' | |
Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is recorded at the lower of cost or fair value, less estimated selling costs. The Bank 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 recorded investment in the loan at the date of transfer from loans to REO. Any subsequent realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition. As of December 31, 2013 and 2012, REO was $19 and $18, respectively. | ||
Derivatives | ' | |
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, including initial and variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities in the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify 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 (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities.” Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities.” A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank's risk management program and Finance Agency regulatory requirements, but does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. | ||
The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly affect the operating results of the Bank. | ||
The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains (losses) on derivatives and hedging activities” on the Statements of Income. | ||
The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a 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 due to the Bank's determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when management decides to cease the specific hedging activity, the Bank will either terminate the derivative or continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings. | ||
Embedded Derivatives | ' | |
The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt or purchased financial instruments (i.e., 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 it is determined that (1) the embedded derivative possesses 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 a non-qualifying 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 (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value and no portion of the contract could be designated as a hedging instrument. | ||
Premises and Equipment | ' | |
Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank's accumulated depreciation was $63 and $59 as of December 31, 2013 and 2012, respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware-three; office equipment-eight; office furniture and building improvements-10; and building-40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $5 for the years ended December 31, 2013 and 2012, and $4 for the year ended December 31, 2011. The Bank includes gains and losses on disposal of premises and equipment in noninterest income (loss). | ||
Software | ' | |
The Bank records the cost of purchased software and certain costs incurred in developing computer software for internal use at cost, less accumulated amortization. The Bank amortizes capitalized computer software cost using the straight-line method over an estimated useful life of five years. As of December 31, 2013 and 2012, the gross carrying amount of computer software included in other assets was $60 and $59, and accumulated amortization was $48 and $43, respectively. Amortization of computer software was $5 for the year ended December 31, 2013, and $6 for the years ended December 31, 2012 and 2011. The Bank includes gains and losses on disposal of capitalized software cost in noninterest income (loss). | ||
Consolidated Obligations | ' | |
Consolidated Obligations. The Bank records consolidated obligations at amortized cost. The Bank accretes discounts and amortizes premiums as well as hedging basis adjustments on consolidated obligations to interest expense using the contractual interest method over the contractual terms to maturity of the consolidated obligations. | ||
The Bank defers and amortizes the concessions paid to dealers in connection with the sale of consolidated obligations using the contractual interest method over the contractual term of the corresponding consolidated obligation. When consolidated obligations are called prior to contractual maturity, the related unamortized concessions are written off to interest expense. The Office of Finance prorates the amount of these concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. Unamortized concessions are included in “Other assets” on the Statements of Condition and the amortization of such concessions is included in consolidated obligations interest expense. | ||
Mandatorily Redeemable Capital Stock | ' | |
Mandatorily Redeemable Capital Stock. The Bank reclassifies stock subject to redemption from capital to a liability after 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. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and reflected as interest expense in the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is reflected as cash outflows in the financing activities section of the Statements of Cash Flows. | ||
If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense. | ||
Restricted Retained Earnings | ' | |
Restricted Retained Earnings. In 2011, the FHLBanks entered into a Joint Capital Enhancement Agreement, as amended (Capital Agreement), which is intended to enhance the capital position of each FHLBank. Under the Capital Agreement, beginning in the third quarter of 2011, each FHLBank began to allocate 20 percent of its net income each quarter, historically paid to satisfy its Resolution Funding Corporation (REFCORP) obligation, to a separate retained earnings account until the account balance equals at least one percent of the Bank’s average balance of outstanding consolidated obligations for the previous quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. | ||
Finance Agency and Office of Finance Expenses | ' | |
Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks' portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank's minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. As approved by the Office of Finance Board of Directors, effective January 1, 2011, each FHLBank's proportionate share of Office of Finance operating and capital expenditures is calculated using a formula that is based upon the following components: (1) two-thirds based upon each FHLBank's share of total consolidated obligations outstanding and (2) one-third based upon an equal pro rata allocation. | ||
Affordable Housing Program | ' | |
Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP, providing subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP advances at interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank's related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the level-yield method over the life of the advance. | ||
REFCORP. Although FHLBanks are exempt from ordinary federal, state, and local taxation except for local real estate tax, the FHLBanks were required to make quarterly payments to REFCORP through the second quarter of 2011. These payments represented a portion of the interest on bonds issued by REFCORP, a corporation established by Congress in 1989 to provide funding for the resolution and disposition of insolvent savings institutions. | ||
Recently adopted accounting guidance | ' | |
Recently Adopted Accounting Guidance | ||
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. In July 2013, the FASB issued guidance permitting the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. Treasury Rate and the London Interbank Offered Rate (LIBOR). This guidance was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Bank adopted this guidance effective July 17, 2013. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations, as the Bank has not designated any hedging relationships using OIS as the benchmark interest rate. | ||
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued amended guidance to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. For public entities, this amended guidance was effective for reporting periods beginning after December 15, 2012. The Bank adopted this guidance effective January 1, 2013, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. | ||
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. In January 2013, the FASB issued guidance to clarify the scope of transactions that are subject to previously issued guidance on disclosures about offsetting assets and liabilities. The disclosure guidance on offsetting assets and liabilities applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with GAAP or subject to a master netting arrangement or similar agreement. This guidance was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. | ||
Disclosures about Offsetting Assets and Liabilities. In December 2011, FASB issued disclosure requirements intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on an entity’s financial position. Entities are required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, entities are required to disclose collateral received and posted in connection with master netting agreements or similar arrangements. This guidance was effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Bank adopted and applied this guidance retrospectively effective January 1, 2013 for all comparative periods presented, which resulted in additional disclosures. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations. |
Trading_Securities_Tables
Trading Securities (Tables) (Categories of Investments, Marketable Securities, Trading Securities [Member]) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | |||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | |||||||||||
Schedule of Major Trading Securities | ' | |||||||||||
Major Security Types. Trading securities were as follows: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Government-sponsored enterprises debt obligations | $ | 1,601 | $ | 2,291 | ||||||||
Another FHLBank’s bond (1) | 65 | 77 | ||||||||||
State or local housing agency debt obligations | 1 | 2 | ||||||||||
Total | $ | 1,667 | $ | 2,370 | ||||||||
____________ | ||||||||||||
(1) | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. | |||||||||||
Schedule of Net Unrealized and Realized (Losses) Gains on Trading Securities | ' | |||||||||||
Net unrealized and realized (losses) gains on trading securities were as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net unrealized (losses) gains on trading securities held at year end | $ | (84 | ) | $ | (60 | ) | $ | 8 | ||||
Net realized/unrealized losses on trading securities sold/matured during the year | (16 | ) | (7 | ) | (6 | ) | ||||||
Net (losses) gains on trading securities | $ | (100 | ) | $ | (67 | ) | $ | 2 | ||||
Availableforsale_Securities_Ta
Available-for-sale Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | |||||||||||||||||||||||||||||||||||
Information on Private-Label MBS Transferred and Dates | ' | |||||||||||||||||||||||||||||||||||
The following table presents information on private-label MBS transferred. The amounts below represent the values as of the transfer date. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Estimated | Amortized | Other-than-temporary | Estimated | Amortized | Other-Than-Temporary | Estimated | ||||||||||||||||||||||||||||
Cost | Impairment | Fair Value | Cost | Impairment | Fair Value | Cost | Impairment | Fair Value | ||||||||||||||||||||||||||||
Recognized in | Recognized in | Recognized in | ||||||||||||||||||||||||||||||||||
Accumulated Other | Accumulated Other | Accumulated Other | ||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||
Transferred at March 31, | $ | 12 | $ | 1 | $ | 11 | $ | 6 | $ | — | $ | 6 | $ | 322 | $ | 20 | $ | 302 | ||||||||||||||||||
Transferred at June 30, | — | — | — | — | — | — | 52 | 6 | 46 | |||||||||||||||||||||||||||
Transferred at September 30, | — | — | — | — | — | — | 23 | 2 | 21 | |||||||||||||||||||||||||||
Transferred at December 31, | — | — | — | — | — | — | 91 | 9 | 82 | |||||||||||||||||||||||||||
Total | $ | 12 | $ | 1 | $ | 11 | $ | 6 | $ | — | $ | 6 | $ | 488 | $ | 37 | $ | 451 | ||||||||||||||||||
Available-for-Sale Securities Reconciliation | ' | |||||||||||||||||||||||||||||||||||
Major Security Type. Private-label residential MBS were as follows: | ||||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||
Cost | Impairment | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Recognized in | Gains | Losses | ||||||||||||||||||||||||||||||||||
Accumulated Other | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | $ | 2,174 | $ | 27 | $ | 152 | $ | — | $ | 2,299 | ||||||||||||||||||||||||||
As of December 31, 2012 | $ | 2,717 | $ | 120 | $ | 79 | $ | — | $ | 2,676 | ||||||||||||||||||||||||||
Summary of Available-for-Sale MBS Issued by Members or Affiliates of Members | ' | |||||||||||||||||||||||||||||||||||
A summary of available-for-sale MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows: | ||||||||||||||||||||||||||||||||||||
Amortized | Other-than-temporary | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||
Cost | Impairment | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Recognized in | Gains | Losses | ||||||||||||||||||||||||||||||||||
Other Accumulated | ||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | $ | 1,390 | $ | 26 | $ | 98 | $ | — | $ | 1,462 | ||||||||||||||||||||||||||
As of December 31, 2012 | $ | 1,712 | $ | 112 | $ | 41 | $ | — | $ | 1,641 | ||||||||||||||||||||||||||
Categories of Investments, Marketable Securities, Available-for-sale Securities [Member] | ' | |||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | |||||||||||||||||||||||||||||||||||
Available-for-Sale Securities with Unrealized Losses | ' | |||||||||||||||||||||||||||||||||||
The following tables summarize the private-label residential MBS with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | ||||||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||||
As of December 31, 2013 | 6 | $ | 137 | $ | 1 | 10 | $ | 243 | $ | 26 | 16 | $ | 380 | $ | 27 | |||||||||||||||||||||
As of December 31, 2012 | 3 | $ | 154 | $ | 1 | 26 | $ | 1,240 | $ | 119 | 29 | $ | 1,394 | $ | 120 | |||||||||||||||||||||
Schedule of Interest Rate Payment Terms For Investments | ' | |||||||||||||||||||||||||||||||||||
The following table details interest-rate payment terms for investment securities classified as available-for-sale: | ||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Fixed-rate | $ | 41 | $ | 55 | ||||||||||||||||||||||||||||||||
Variable-rate | 2,133 | 2,662 | ||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 2,174 | $ | 2,717 | ||||||||||||||||||||||||||||||||
Heldtomaturity_Securities_Tabl
Held-to-maturity Securities (Tables) (Held-to-maturity Securities [Member]) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Held-to-maturity Securities [Member] | ' | ||||||||||||||||||||||||||||||||
Schedule of Held-to-maturity Securities [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of Held-to-Maturity Securities | ' | ||||||||||||||||||||||||||||||||
Major Security Types. Held-to-maturity securities were as follows: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Certificates of deposit | $ | — | $ | — | $ | — | $ | — | $ | 550 | $ | — | $ | — | $ | 550 | |||||||||||||||||
State or local housing agency debt obligations | 92 | 1 | — | 93 | 106 | 2 | — | 108 | |||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 3,738 | — | 24 | 3,714 | 2,133 | — | — | 2,133 | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
U.S. agency obligations-guaranteed residential | 465 | 7 | — | 472 | 622 | 8 | — | 630 | |||||||||||||||||||||||||
Government-sponsored enterprises residential | 13,952 | 109 | 115 | 13,946 | 10,763 | 184 | 2 | 10,945 | |||||||||||||||||||||||||
Private-label residential | 1,929 | 12 | 20 | 1,921 | 2,744 | 36 | 22 | 2,758 | |||||||||||||||||||||||||
Total | $ | 20,176 | $ | 129 | $ | 159 | $ | 20,146 | $ | 16,918 | $ | 230 | $ | 24 | $ | 17,124 | |||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | |||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | |||||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 9 | $ | 1,970 | $ | 24 | — | $ | — | $ | — | 9 | $ | 1,970 | $ | 24 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | 65 | 3,932 | 108 | 1 | 147 | 7 | 66 | 4,079 | 115 | ||||||||||||||||||||||||
Private-label residential | 40 | 817 | 12 | 18 | 241 | 8 | 58 | 1,058 | 20 | ||||||||||||||||||||||||
Total | 114 | $ | 6,719 | $ | 144 | 19 | $ | 388 | $ | 15 | 133 | $ | 7,107 | $ | 159 | ||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||
Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | |||||||||||||||||||||||||
Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | Positions | Fair Value | Unrealized | |||||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | 3 | $ | 750 | $ | — | — | $ | — | $ | — | 3 | $ | 750 | $ | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | 1 | 154 | 1 | 1 | 13 | 1 | 2 | 167 | 2 | ||||||||||||||||||||||||
Private-label residential | — | — | — | 43 | 974 | 22 | 43 | 974 | 22 | ||||||||||||||||||||||||
Total | 4 | $ | 904 | $ | 1 | 44 | $ | 987 | $ | 23 | 48 | $ | 1,891 | $ | 24 | ||||||||||||||||||
Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities by Contractual Maturity | ' | ||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | ||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||||||||
Non-mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 430 | $ | 430 | $ | 1,092 | $ | 1,093 | |||||||||||||||||||||||||
Due after one year through five years | 3,400 | 3,377 | 1,697 | 1,698 | |||||||||||||||||||||||||||||
Total non-mortgage-backed securities | 3,830 | 3,807 | 2,789 | 2,791 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 16,346 | 16,339 | 14,129 | 14,333 | |||||||||||||||||||||||||||||
Total | $ | 20,176 | $ | 20,146 | $ | 16,918 | $ | 17,124 | |||||||||||||||||||||||||
Schedule of Interest Rate Payment Terms For Investments | ' | ||||||||||||||||||||||||||||||||
The following table details interest-rate payment terms for investment securities classified as held-to-maturity: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Non-mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Fixed-rate | $ | 1,586 | $ | 656 | |||||||||||||||||||||||||||||
Variable-rate | 2,244 | 2,133 | |||||||||||||||||||||||||||||||
Total non-mortgage-backed securities | 3,830 | 2,789 | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||
Fixed-rate | 3,624 | 2,689 | |||||||||||||||||||||||||||||||
Variable-rate | 12,722 | 11,440 | |||||||||||||||||||||||||||||||
Total mortgage-backed securities | 16,346 | 14,129 | |||||||||||||||||||||||||||||||
Total amortized cost | $ | 20,176 | $ | 16,918 | |||||||||||||||||||||||||||||
Held-to-Maturity MBS Issued by Members or Affiliates of Members | ' | ||||||||||||||||||||||||||||||||
A summary of held-to-maturity MBS issued by members or affiliates of members follows: | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
Bank of America Corporation, Charlotte, NC | $ | 619 | $ | 4 | $ | 8 | $ | 615 | $ | 896 | $ | 11 | $ | 8 | $ | 899 | |||||||||||||||||
OtherthanTemporary_Impairment_
Other-than-Temporary Impairment (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other than Temporary Impairment Losses, Investments [Abstract] | ' | |||||||||||
Schedule of Projected Home Price Recovery Ranges | ' | |||||||||||
The following table presents projected home price recovery ranges by months following the short-term housing price forecast: | ||||||||||||
Months | Annualized Rates (%) | |||||||||||
1 to 6 | 0.00 to 3.00 | |||||||||||
7 to 12 | 1.00 to 4.00 | |||||||||||
13 to 18 | 2.00 to 4.00 | |||||||||||
19 to 30 | 2.00 to 5.00 | |||||||||||
31 to 54 | 2.00 to 6.00 | |||||||||||
Thereafter | 2.30 to 5.60 | |||||||||||
Other-than-Temporary Impairment, Credit Losses Recognized in Earnings | ' | |||||||||||
The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for the one Alt-A security for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2013, as well as related current credit enhancement: | ||||||||||||
Significant Inputs | ||||||||||||
Prepayment Rate | Default Rates | Loss Severities | Current Credit Enhancement | |||||||||
Year of | Weighted | Weighted | Weighted | Weighted | ||||||||
Securitization | Average | Average | Average | Average | ||||||||
(%) | (%) | (%) | (%) | |||||||||
2004 and prior | 12.08 | 22.32 | 44.43 | 18.89 | ||||||||
Schedule of Roll-Forward Cumulative Credit Losses Recognized | ' | |||||||||||
The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income (loss): | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 586 | $ | 582 | $ | 464 | ||||||
Amount related to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 11 | |||||||||
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | — | 16 | 107 | |||||||||
Increase in cash flows expected to be collected, recognized over the remaining life of the securities | (12 | ) | (12 | ) | — | |||||||
Balance, end of year | $ | 574 | $ | 586 | $ | 582 | ||||||
Mortgage_Loans_Held_for_Portfo1
Mortgage Loans Held for Portfolio (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Mortgage Loans on Real Estate [Abstract] | ' | ||||||||
Schedule of Mortgage Loans Held for Portfolio | ' | ||||||||
The following table presents information on mortgage loans held for portfolio: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Fixed-rate medium-term(1) single-family residential mortgage loans | $ | 150 | $ | 230 | |||||
Fixed-rate long-term single-family residential mortgage loans | 781 | 1,007 | |||||||
Multifamily residential mortgage loans | — | 20 | |||||||
Total unpaid principal balance | 931 | 1,257 | |||||||
Premiums | 3 | 5 | |||||||
Discounts | (5 | ) | (7 | ) | |||||
Total | $ | 929 | $ | 1,255 | |||||
____________ | |||||||||
(1) Medium-term is defined as a term of 15 years or less. | |||||||||
Mortgage Loans Held for Portfolio by Collateral or Guarantee Type | ' | ||||||||
The following table details the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Conventional loans | $ | 864 | $ | 1,165 | |||||
Government-guaranteed or insured loans | 67 | 92 | |||||||
Total unpaid principal balance | $ | 931 | $ | 1,257 | |||||
Advances_Tables
Advances (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Advances [Abstract] | ' | |||||||||||||
Advances Outstanding by Redemption Terms | ' | |||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due in one year or less | 51,331 | 41,482 | ||||||||||||
Due after one year through two years | 5,366 | 7,915 | ||||||||||||
Due after two years through three years | 6,136 | 4,735 | ||||||||||||
Due after three years through four years | 8,495 | 5,821 | ||||||||||||
Due after four years through five years | 5,088 | 8,758 | ||||||||||||
Due after five years | 11,464 | 15,157 | ||||||||||||
Total par value | 87,882 | 83,870 | ||||||||||||
Discount on AHP advances | (8 | ) | (11 | ) | ||||||||||
Discount on EDGE advances | (7 | ) | (8 | ) | ||||||||||
Hedging adjustments | 1,726 | 3,658 | ||||||||||||
Deferred commitment fees | (5 | ) | (6 | ) | ||||||||||
Total | $ | 89,588 | $ | 87,503 | ||||||||||
Advances by Year of Contractual Maturity or Next Call Date | ' | |||||||||||||
The following table summarizes advances by year of contractual maturity or next call date for callable advances: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due or callable in one year or less | 51,339 | 41,482 | ||||||||||||
Due or callable after one year through two years | 5,375 | 7,915 | ||||||||||||
Due or callable after two years through three years | 6,159 | 4,745 | ||||||||||||
Due or callable after three years through four years | 8,495 | 5,830 | ||||||||||||
Due or callable after four years through five years | 5,088 | 8,758 | ||||||||||||
Due or callable after five years | 11,424 | 15,138 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Advances by Year of Contractual Maturity or Next Conversion Date | ' | |||||||||||||
The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Overdrawn demand deposit accounts | $ | 2 | $ | 2 | ||||||||||
Due or convertible in one year or less | 54,522 | 46,198 | ||||||||||||
Due or convertible after one year through two years | 5,414 | 7,886 | ||||||||||||
Due or convertible after two years through three years | 5,867 | 4,748 | ||||||||||||
Due or convertible after three years through four years | 6,643 | 5,368 | ||||||||||||
Due or convertible after four years through five years | 4,168 | 6,570 | ||||||||||||
Due or convertible after five years | 11,266 | 13,098 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Advances by Interest-Rate Payment Terms | ' | |||||||||||||
The following table details interest-rate payment terms for advances: | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Fixed-rate: | ||||||||||||||
Due in one year or less | $ | 46,343 | $ | 38,307 | ||||||||||
Due after one year | 28,535 | 33,425 | ||||||||||||
Total fixed-rate | 74,878 | 71,732 | ||||||||||||
Variable-rate: | ||||||||||||||
Due in one year or less | 4,990 | 3,177 | ||||||||||||
Due after one year | 8,014 | 8,961 | ||||||||||||
Total variable-rate | 13,004 | 12,138 | ||||||||||||
Total par value | $ | 87,882 | $ | 83,870 | ||||||||||
Schedule of Types of Collateral Held for Advances | ' | |||||||||||||
following table provides information about the types of collateral held for the Bank's advances: | ||||||||||||||
Total Par Value of Outstanding Advances | LCV of Collateral Pledged by Members | First Mortgage Collateral (%) | Securities Collateral (%) | Other Real Estate Related Collateral (%) | ||||||||||
As of December 31, 2013 | $ | 87,882 | $ | 231,342 | 67.2 | 8.18 | 24.62 | |||||||
As of December 31, 2012 | 83,870 | 217,935 | 69.78 | 7.09 | 23.13 | |||||||||
Allowance_for_Credit_Losses_Ta
Allowance for Credit Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Allowance for Credit Losses [Abstract] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||
The activity in the allowance for credit losses was as follows: | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
Provision for credit losses | 5 | — | — | 5 | |||||||||||||||||||||
Charge-offs | (4 | ) | — | — | (4 | ) | |||||||||||||||||||
Mortgage loans transferred to held for sale | — | — | (1 | ) | (1 | ) | |||||||||||||||||||
Balance, end of year | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | 5 | $ | — | $ | 1 | $ | 6 | |||||||||||||||||
Provision for credit losses | 6 | — | — | 6 | |||||||||||||||||||||
Charge-offs | (1 | ) | — | — | (1 | ) | |||||||||||||||||||
Balance, end of year | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Balance, beginning of year | $ | — | $ | — | $ | 1 | $ | 1 | |||||||||||||||||
Provision for credit losses | 5 | — | — | 5 | |||||||||||||||||||||
Charge-offs | — | — | — | — | |||||||||||||||||||||
Balance, end of year | $ | 5 | $ | — | $ | 1 | $ | 6 | |||||||||||||||||
Allowance for Credit Losses and Recorded Investment by Impairment Methodology | ' | ||||||||||||||||||||||||
The recorded investment in mortgage loans by impairment methodology was as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Total | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||
Collectively evaluated for impairment | 9 | — | 9 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 11 | $ | — | $ | 11 | |||||||||||||||||||
Recorded investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 15 | $ | — | $ | 15 | |||||||||||||||||||
Collectively evaluated for impairment | 851 | 67 | 918 | ||||||||||||||||||||||
Total recorded investment (1) | $ | 866 | $ | 67 | $ | 933 | |||||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1 | $ | — | $ | 1 | $ | 2 | |||||||||||||||||
Collectively evaluated for impairment | 9 | — | — | 9 | |||||||||||||||||||||
Total allowance for credit losses | $ | 10 | $ | — | $ | 1 | $ | 11 | |||||||||||||||||
Recorded investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13 | $ | — | $ | 21 | $ | 34 | |||||||||||||||||
Collectively evaluated for impairment | 1,135 | 93 | — | 1,228 | |||||||||||||||||||||
Total recorded investment (1) | $ | 1,148 | $ | 93 | $ | 21 | $ | 1,262 | |||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. | |||||||||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||
The tables below summarize the Bank's recorded investment in mortgage loans by these key credit quality indicators: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Single-family Residential Mortgage Loans | Total | |||||||||||||||||||||||
Past due 30-59 days | $ | 30 | $ | 7 | $ | 37 | |||||||||||||||||||
Past due 60-89 days | 9 | 3 | 12 | ||||||||||||||||||||||
Past due 90 days or more | 51 | 9 | 60 | ||||||||||||||||||||||
Total past due mortgage loans | 90 | 19 | 109 | ||||||||||||||||||||||
Total current mortgage loans | 776 | 48 | 824 | ||||||||||||||||||||||
Total mortgage loans (1) | $ | 866 | $ | 67 | $ | 933 | |||||||||||||||||||
Other delinquency statistics: | |||||||||||||||||||||||||
In process of foreclosure (2) | $ | 38 | $ | 3 | $ | 41 | |||||||||||||||||||
Seriously delinquent rate (3) | 5.9 | % | 13.13 | % | 6.42 | % | |||||||||||||||||||
Past due 90 days or more and still accruing interest (4) | $ | — | $ | 9 | $ | 9 | |||||||||||||||||||
Loans on nonaccrual status (5) | $ | 51 | $ | — | $ | 51 | |||||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||||||||||||||||||||||||
(2) Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in lieu has been reported. Loans in the process of foreclosure are included in past due or current loans depending 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 loan portfolio segment. | |||||||||||||||||||||||||
(4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | |||||||||||||||||||||||||
(5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Conventional Single-family Residential Mortgage Loans | Government-guaranteed or Insured Single-family Residential Mortgage Loans | Multifamily Residential Mortgage Loans | Total | ||||||||||||||||||||||
Past due 30-59 days | $ | 34 | $ | 8 | $ | — | $ | 42 | |||||||||||||||||
Past due 60-89 days | 12 | 4 | — | 16 | |||||||||||||||||||||
Past due 90 days or more | 78 | 11 | — | 89 | |||||||||||||||||||||
Total past due mortgage loans | 124 | 23 | — | 147 | |||||||||||||||||||||
Total current mortgage loans | 1,024 | 70 | 21 | 1,115 | |||||||||||||||||||||
Total mortgage loans (1) | $ | 1,148 | $ | 93 | $ | 21 | $ | 1,262 | |||||||||||||||||
Other delinquency statistics: | |||||||||||||||||||||||||
In process of foreclosure (2) | $ | 59 | $ | 5 | $ | — | $ | 64 | |||||||||||||||||
Seriously delinquent rate (3) | 6.78 | % | 11.45 | % | 0 | % | 7.01 | % | |||||||||||||||||
Past due 90 days or more and still accruing interest (4) | $ | — | $ | 11 | $ | — | $ | 11 | |||||||||||||||||
Loans on nonaccrual status (5) | $ | 78 | $ | — | $ | — | $ | 78 | |||||||||||||||||
____________ | |||||||||||||||||||||||||
(1) The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. | |||||||||||||||||||||||||
(2) Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in lieu has been reported. Loans in the process of foreclosure are included in past due or current loans depending 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 loan portfolio segment. | |||||||||||||||||||||||||
(4) Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | |||||||||||||||||||||||||
(5) Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. | |||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||
The table below presents the Bank's recorded investment balance in troubled debt restructured loans as of the dates presented: | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Performing | Non-performing | Total | Performing | Non-performing | Total | ||||||||||||||||||||
Conventional single-family residential loans | $ | 11 | $ | 4 | $ | 15 | $ | 9 | $ | 2 | $ | 11 | |||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||
All impaired conventional single-family residential loans had an allowance for credit losses as of December 31, 2013 and 2012. | |||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Conventional single-family residential loans | $ | 15 | $ | 15 | $ | 2 | $ | 15 | $ | — | |||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Conventional single-family residential loans | $ | 13 | $ | 13 | $ | 1 | $ | 13 | $ | — | |||||||||||||||
Consolidated_Obligations_Table
Consolidated Obligations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Consolidated Obligation Bonds by Interest-Rate Payment | ' | |||||||||||
Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Fixed-rate | $ | 59,885 | $ | 76,212 | ||||||||
Step up/down | 7,617 | 4,419 | ||||||||||
Simple variable-rate | 13,005 | 1,250 | ||||||||||
Variable-rate capped floater | 45 | 20 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity | ' | |||||||||||
Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Amount | Weighted- | Amount | Weighted- | |||||||||
average | average | |||||||||||
Interest Rate (%) | Interest Rate (%) | |||||||||||
Due in one year or less | $ | 41,725 | 0.5 | $ | 55,397 | 0.79 | ||||||
Due after one year through two years | 9,485 | 0.67 | 7,587 | 2.08 | ||||||||
Due after two years through three years | 7,503 | 2.21 | 2,507 | 1.92 | ||||||||
Due after three years through four years | 6,355 | 2.81 | 3,344 | 4.25 | ||||||||
Due after four years through five years | 5,150 | 1.67 | 6,298 | 2.82 | ||||||||
Due after five years | 10,334 | 1.92 | 6,768 | 2.31 | ||||||||
Total par value | 80,552 | 1.13 | 81,901 | 1.36 | ||||||||
Premiums | 82 | 91 | ||||||||||
Discounts | (24 | ) | (34 | ) | ||||||||
Hedging adjustments | 118 | 989 | ||||||||||
Total | $ | 80,728 | $ | 82,947 | ||||||||
Callable and Noncallable Consolidated Obligations Bonds Outstanding | ' | |||||||||||
The Bank’s consolidated obligation bonds outstanding by call feature: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Noncallable | $ | 56,569 | $ | 71,880 | ||||||||
Callable | 23,983 | 10,021 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
Summary of Callable Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity | ' | |||||||||||
The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date: | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Due or callable in one year or less | $ | 59,458 | $ | 62,540 | ||||||||
Due or callable after one year through two years | 7,795 | 6,550 | ||||||||||
Due or callable after two years through three years | 4,491 | 2,136 | ||||||||||
Due or callable after three years through four years | 6,095 | 3,024 | ||||||||||
Due or callable after four years through five years | 1,571 | 6,028 | ||||||||||
Due or callable after five years | 1,142 | 1,623 | ||||||||||
Total par value | $ | 80,552 | $ | 81,901 | ||||||||
Consolidated Obligation Discount Notes | ' | |||||||||||
The Bank’s participation in consolidated obligation discount notes was as follows: | ||||||||||||
Book Value | Par Value | Weighted-average | ||||||||||
Interest Rate (%) | ||||||||||||
As of December 31, 2013 | $ | 32,202 | $ | 32,208 | 0.11 | |||||||
As of December 31, 2012 | $ | 31,737 | $ | 31,745 | 0.12 | |||||||
Assessments_Tables
Assessments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Assessments [Abstract] | ' | ||||||||||||
Schedule of Activity in Affordable Housing Program Obligation | ' | ||||||||||||
A rollforward of the Bank's AHP liability is as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 80 | $ | 109 | $ | 126 | |||||||
AHP assessments | 37 | 30 | 21 | ||||||||||
Subsidy usage, net | (43 | ) | (59 | ) | (38 | ) | |||||||
Balance, end of year | $ | 74 | $ | 80 | $ | 109 | |||||||
Capital_and_Mandatorily_Redeem1
Capital and Mandatorily Redeemable Capital Stock (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Compliance With Regulatory Capital Requirements | ' | |||||||||||||||
The Bank was in compliance with the Finance Agency's regulatory capital rules and requirements as shown in the following table: | ||||||||||||||||
As of December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Required | Actual | Required | Actual | |||||||||||||
Risk based capital | $ | 2,246 | $ | 6,563 | $ | 1,625 | $ | 6,373 | ||||||||
Total capital-to-assets ratio | 4 | % | 5.37 | % | 4 | % | 5.15 | % | ||||||||
Total regulatory capital (1) | $ | 4,893 | $ | 6,563 | $ | 4,948 | $ | 6,373 | ||||||||
Leverage ratio | 5 | % | 8.05 | % | 5 | % | 7.73 | % | ||||||||
Leverage capital | $ | 6,116 | $ | 9,845 | $ | 6,185 | $ | 9,560 | ||||||||
___________ | ||||||||||||||||
(1) | Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $24 and $40 in mandatorily redeemable capital stock as of December 31, 2013 and 2012, respectively. | |||||||||||||||
Activity in Mandatorily Redeemable Capital Stock | ' | |||||||||||||||
The following table provides the activity in mandatorily redeemable capital stock: | ||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Balance, beginning of year | $ | 40 | $ | 286 | $ | 529 | ||||||||||
Capital stock subject to mandatory redemption reclassified from equity during the year due to: | ||||||||||||||||
Attainment of non-member status | 9 | 90 | 149 | |||||||||||||
Withdrawal | — | 1 | 4 | |||||||||||||
Repurchase/redemption of mandatorily redeemable capital stock | (25 | ) | (308 | ) | (369 | ) | ||||||||||
Capital stock no longer subject to redemption due to the transfer of stock from a non-member to a member | — | (29 | ) | (27 | ) | |||||||||||
Balance, end of year | $ | 24 | $ | 40 | $ | 286 | ||||||||||
Amount of Mandatorily Redeemable Capital Stock by Year of Redemption | ' | |||||||||||||||
The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date. | ||||||||||||||||
As of December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Due in one year or less | $ | 5 | $ | — | ||||||||||||
Due after one year through two years | 9 | 12 | ||||||||||||||
Due after two years through three years | 8 | 9 | ||||||||||||||
Due after three years through four years | 1 | 17 | ||||||||||||||
Due after four years through five years | — | 1 | ||||||||||||||
Due after five years | 1 | 1 | ||||||||||||||
Total | $ | 24 | $ | 40 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Components Comprising Accumulated Other Comprehensive Loss | ' | |||||||||||||||
Components comprising accumulated other comprehensive income (loss) were as follows: | ||||||||||||||||
Pension and | Noncredit Portion | Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities | Total Accumulated | |||||||||||||
Postretirement | of Other-than- | Other | ||||||||||||||
Benefits | temporary | Comprehensive Income | ||||||||||||||
Impairment Losses | (Loss) | |||||||||||||||
on Available-for- | ||||||||||||||||
sale Securities | ||||||||||||||||
Balance, December 31, 2010 | $ | (10 | ) | $ | (392 | ) | $ | — | $ | (402 | ) | |||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | — | (37 | ) | (37 | ) | ||||||||||
Noncredit other-than-temporary impairment losses transferred | — | (37 | ) | 37 | — | |||||||||||
Net change in fair value | — | (69 | ) | — | (69 | ) | ||||||||||
Actuarial loss | (5 | ) | — | — | (5 | ) | ||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | 100 | — | 100 | ||||||||||||
Amortization of pension and postretirement (1) | 2 | — | — | 2 | ||||||||||||
Net current period other comprehensive loss | (3 | ) | (6 | ) | — | (9 | ) | |||||||||
Balance, December 31, 2011 | (13 | ) | (398 | ) | — | (411 | ) | |||||||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Net change in fair value | — | 341 | — | 341 | ||||||||||||
Actuarial loss | (5 | ) | — | — | (5 | ) | ||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | 16 | — | 16 | ||||||||||||
Amortization of pension and postretirement (1) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive (loss) income | (4 | ) | 357 | — | 353 | |||||||||||
Balance, December 31, 2012 | (17 | ) | (41 | ) | — | (58 | ) | |||||||||
Other comprehensive loss before reclassifications: | ||||||||||||||||
Noncredit other-than-temporary impairment losses | — | — | (1 | ) | (1 | ) | ||||||||||
Noncredit other-than-temporary impairment losses transferred | — | (1 | ) | 1 | — | |||||||||||
Net change in fair value | — | 167 | — | 167 | ||||||||||||
Actuarial gain | 3 | — | — | 3 | ||||||||||||
Reclassification from other comprehensive loss to net income: | ||||||||||||||||
Amortization of pension and postretirement (1) | 1 | — | — | 1 | ||||||||||||
Net current period other comprehensive income | 4 | 166 | — | 170 | ||||||||||||
Balance, December 31, 2013 | $ | (13 | ) | $ | 125 | $ | — | $ | 112 | |||||||
Pension_and_Post_Retirement_Be1
Pension and Post Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Multiemployer Plan | ' | |||||||||||||||||||||||
The following table presents information on Pentegra Plan net pension cost and funded status: | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $ | 7 | $ | 9 | $ | 9 | ||||||||||||||||||
Pentegra Plan funded status as of July 1(1) | 101.31 | % | 108.39 | % | 90.29 | % | ||||||||||||||||||
Bank's funded status as of the plan year end | 99.6 | % | 105.26 | % | 88.82 | % | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
(1) The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants were permitted to make contributions through March 15 of the following year (i.e. through March 15, 2014 for the plan year ended June 30, 2013 and through March 15, 2013 for the plan year ended June 30, 2012). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2015 for the plan year July 1, 2013 through June 30, 2014 and April 2014 for the plan year July 1, 2012 through June 2013. Form 5500 was filed in March 2013 for the plan year July 1, 2011 through June 30, 2012. | ||||||||||||||||||||||||
Schedule of Obligations and Funding Status | ' | |||||||||||||||||||||||
The obligations and funding status of the Bank's supplemental defined benefit pension plan and postretirement health benefit plan as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health | |||||||||||||||||||||||
Benefit Plan | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 26 | $ | 20 | $ | 13 | $ | 12 | ||||||||||||||||
Service cost | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Interest cost | 1 | 1 | — | — | ||||||||||||||||||||
Actuarial loss | (1 | ) | 5 | (2 | ) | — | ||||||||||||||||||
Benefits paid | (2 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||
Benefit obligation at end of year | 25 | 26 | 11 | 13 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | — | — | — | — | ||||||||||||||||||||
Employer contributions | 2 | 1 | 1 | — | ||||||||||||||||||||
Benefits paid | (2 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||
Fair value of plan assets at end of year | — | — | — | — | ||||||||||||||||||||
Funded status at end of year | $ | (25 | ) | $ | (26 | ) | $ | (11 | ) | $ | (13 | ) | ||||||||||||
Schedule of Amounts Recognized in Balance Sheet | ' | |||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Net loss | $ | 11 | $ | 14 | $ | 3 | $ | 5 | ||||||||||||||||
Prior service credit | — | — | (2 | ) | (2 | ) | ||||||||||||||||||
Total amount recognized | $ | 11 | $ | 14 | $ | 1 | $ | 3 | ||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||||||||||
Components of the net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||
Interest cost | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Amortization of prior service credit | — | — | — | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||
Amortization of net loss | 2 | 1 | 1 | — | — | — | ||||||||||||||||||
Settlement loss | — | — | 1 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | 4 | 3 | 4 | 1 | 1 | 1 | ||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||
Other changes in benefit obligations recognized in other comprehensive income (loss): | ||||||||||||||||||||||||
Net (gain) loss | (1 | ) | 5 | 2 | (2 | ) | — | 1 | ||||||||||||||||
Amortization of net loss | (2 | ) | (1 | ) | (1 | ) | — | — | — | |||||||||||||||
Amortization of prior service credit | — | — | — | 1 | 1 | 1 | ||||||||||||||||||
Settlement loss | — | — | (1 | ) | — | — | — | |||||||||||||||||
Total recognized in other comprehensive income (loss) | (3 | ) | 4 | — | (1 | ) | 1 | 2 | ||||||||||||||||
Total recognized in periodic benefit cost and other comprehensive income (loss) | $ | 1 | $ | 7 | $ | 4 | $ | — | $ | 2 | $ | 3 | ||||||||||||
Schedule of Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan | Postretirement Health Benefit Plan | Total | ||||||||||||||||||||||
Net loss | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||
Prior service credit | — | (1 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 1 | $ | (1 | ) | $ | — | |||||||||||||||||
Schedule of Assumptions Used | ' | |||||||||||||||||||||||
Key assumptions used for the actuarial calculations to determine benefit obligations for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan (%) | Postretirement Health Benefit Plan (%) | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 5.04 | 4.1 | 5.05 | 4.15 | ||||||||||||||||||||
Rate of compensation increase | 5.5 | 5.5 | N/A | N/A | ||||||||||||||||||||
Key assumptions used for the actuarial calculations to determine net periodic benefit cost for the Bank's supplemental defined benefit pension plan and postretirement health benefit plan for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||||||||||
Supplemental Defined Benefit Pension Plan (%) | Postretirement Health | |||||||||||||||||||||||
Benefit Plan (%) | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.1 | 3.73 | 4.53 | 4.15 | 4.4 | 5.55 | ||||||||||||||||||
Rate of compensation increase | 5.5 | 5.5 | 5.5 | N/A | N/A | N/A | ||||||||||||||||||
Schedule of Health Care Cost Trend Rates | ' | |||||||||||||||||||||||
Assumed health-care cost trend rates for the Bank's postretirement health benefit plan were as follows: | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Assumed for next year (%) | 7.75 | 8 | ||||||||||||||||||||||
Ultimate rate (%) | 5 | 5 | ||||||||||||||||||||||
Year that ultimate rate is reached | 2023 | 2017 | ||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||||
As of December 31, 2013, a one percentage point change in the assumed health-care cost trend rates would have the following effects: | ||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||
Effect on total service and interest cost components | $ | — | $ | — | ||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | — | (1 | ) | |||||||||||||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||||||||||||
The benefits the Bank expects to pay in each of the next five years and subsequent five years for the supplemental defined benefit pension plan are listed in the table below: | ||||||||||||||||||||||||
Years | Supplemental Defined Benefit Pension Plan | |||||||||||||||||||||||
2014 | $ | 2 | ||||||||||||||||||||||
2015 | 2 | |||||||||||||||||||||||
2016 | 2 | |||||||||||||||||||||||
2017 | 3 | |||||||||||||||||||||||
2018 | 3 | |||||||||||||||||||||||
2019-2023 | 14 | |||||||||||||||||||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Fair Value of Derivative Instruments | ' | |||||||||||||||||||||||
The following table summarizes the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest. | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Notional | Derivative Assets | Derivative Liabilities | Notional | Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Amount of Derivatives | Amount of Derivatives | |||||||||||||||||||||||
Derivatives in hedging relationships: | ||||||||||||||||||||||||
Interest rate swaps | $ | 84,740 | $ | 800 | $ | (2,336 | ) | $ | 102,660 | $ | 1,129 | $ | (3,689 | ) | ||||||||||
Total derivatives in hedging relationships | 84,740 | 800 | (2,336 | ) | 102,660 | 1,129 | (3,689 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | 4,414 | 14 | (309 | ) | 9,570 | 29 | (497 | ) | ||||||||||||||||
Interest rate swaptions | 40 | 1 | (1 | ) | — | — | — | |||||||||||||||||
Interest rate caps or floors | 12,500 | 44 | (28 | ) | 12,500 | 32 | (22 | ) | ||||||||||||||||
Total derivatives not designated as hedging instruments | 16,954 | 59 | (338 | ) | 22,070 | 61 | (519 | ) | ||||||||||||||||
Total derivatives before netting and collateral adjustments | $ | 101,694 | 859 | (2,674 | ) | $ | 124,730 | 1,190 | (4,208 | ) | ||||||||||||||
Netting adjustments | (741 | ) | 741 | (1,089 | ) | 1,089 | ||||||||||||||||||
Cash collateral and related accrued interest | (65 | ) | 1,746 | (88 | ) | 2,961 | ||||||||||||||||||
Total collateral and netting adjustments (1) | (806 | ) | 2,487 | (1,177 | ) | 4,050 | ||||||||||||||||||
Derivative assets and derivative liabilities | $ | 53 | $ | (187 | ) | $ | 13 | $ | (158 | ) | ||||||||||||||
___________ | ||||||||||||||||||||||||
(1) | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty. | |||||||||||||||||||||||
Components of Net Losses on Derivatives and Hedging Activities | ' | |||||||||||||||||||||||
The following tables present the components of net gains (losses) on derivatives and hedging activities as presented in the Statements of Income: | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Derivatives and hedged items in fair value hedging relationships: | ||||||||||||||||||||||||
Interest rate swaps | $ | 180 | $ | 167 | $ | 144 | ||||||||||||||||||
Total net gains related to fair value hedge ineffectiveness | 180 | 167 | 144 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | 102 | 52 | 12 | |||||||||||||||||||||
Interest rate caps or floors | 6 | (1 | ) | (23 | ) | |||||||||||||||||||
Net interest settlements | (84 | ) | (101 | ) | (142 | ) | ||||||||||||||||||
Total net gains (losses) related to derivatives not designated as hedging instruments | 24 | (50 | ) | (153 | ) | |||||||||||||||||||
Net gains (losses) on derivatives and hedging activities | $ | 204 | $ | 117 | $ | (9 | ) | |||||||||||||||||
Gain (Losses) on Derivatives and Related Hedged Items Fair Value | ' | |||||||||||||||||||||||
The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income: | ||||||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | 1,880 | $ | (1,678 | ) | $ | 202 | $ | (1,033 | ) | ||||||||||||||
Consolidated obligations bonds | (868 | ) | 846 | (22 | ) | 602 | ||||||||||||||||||
Total | $ | 1,012 | $ | (832 | ) | $ | 180 | $ | (431 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | 554 | $ | (355 | ) | $ | 199 | $ | (1,397 | ) | ||||||||||||||
Consolidated obligations bonds | (191 | ) | 159 | (32 | ) | 574 | ||||||||||||||||||
Total | $ | 363 | $ | (196 | ) | $ | 167 | $ | (823 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||
Hedged | Gains (Losses) on Derivative | Gains (Losses) on Hedged Item | Net Fair Value | Effect of Derivatives on Net Interest Income (1) | ||||||||||||||||||||
Item Type | Hedge Ineffectiveness | |||||||||||||||||||||||
Advances | $ | (201 | ) | $ | 347 | $ | 146 | $ | (2,054 | ) | ||||||||||||||
Consolidated obligations: | ||||||||||||||||||||||||
Bonds | 23 | (25 | ) | (2 | ) | 804 | ||||||||||||||||||
Discount notes | (2 | ) | 2 | — | 2 | |||||||||||||||||||
Total | $ | (180 | ) | $ | 324 | $ | 144 | $ | (1,248 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. | |||||||||||||||||||||||
Offsetting of derivative assets and liabilities | ' | |||||||||||||||||||||||
The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. | ||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||
Gross recognized amount: | ||||||||||||||||||||||||
Bilateral derivatives | $ | 820 | $ | (2,545 | ) | $ | 1,190 | $ | (4,208 | ) | ||||||||||||||
Cleared derivatives | 39 | (129 | ) | — | — | |||||||||||||||||||
Total gross recognized amount | 859 | (2,674 | ) | 1,190 | (4,208 | ) | ||||||||||||||||||
Gross amounts of netting adjustments and cash collateral: | ||||||||||||||||||||||||
Bilateral derivatives | (818 | ) | 2,358 | (1,177 | ) | 4,050 | ||||||||||||||||||
Cleared derivatives | 12 | 129 | — | — | ||||||||||||||||||||
Total gross amounts of netting adjustments and cash collateral | (806 | ) | 2,487 | (1,177 | ) | 4,050 | ||||||||||||||||||
Derivative assets and derivative liabilities: | ||||||||||||||||||||||||
Bilateral derivatives | 2 | (187 | ) | 13 | (158 | ) | ||||||||||||||||||
Cleared derivatives | 51 | — | — | — | ||||||||||||||||||||
Total derivative assets and total derivative liabilities | 53 | (187 | ) | 13 | (158 | ) | ||||||||||||||||||
Non-cash collateral received or pledged not offset- cannot be sold or repledged: (1) | ||||||||||||||||||||||||
Bilateral derivatives | — | — | 1 | — | ||||||||||||||||||||
Cleared derivatives | — | — | — | — | ||||||||||||||||||||
Total cannot be sold or repledged | — | — | 1 | — | ||||||||||||||||||||
Net unsecured amounts: (2) | ||||||||||||||||||||||||
Bilateral derivatives | 2 | (187 | ) | 12 | (158 | ) | ||||||||||||||||||
Cleared derivatives | 51 | — | — | — | ||||||||||||||||||||
Total net unsecured amount | $ | 53 | $ | (187 | ) | $ | 12 | $ | (158 | ) | ||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Collateral held with respect to derivatives with member institutions where the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. | |||||||||||||||||||||||
(2) | The Bank had net credit exposure of $47 and $8 as of December 31, 2013 and 2012, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net position. |
Estimated_Fair_Values_Tables
Estimated Fair Values (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||||||
Fair Value on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition: | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustment (1) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | — | $ | 1,601 | $ | — | $ | — | $ | 1,601 | ||||||||||||||
Another FHLBank’s bond | — | 65 | — | — | 65 | |||||||||||||||||||
State or local housing agency debt obligations | — | 1 | — | — | 1 | |||||||||||||||||||
Total trading securities | — | 1,667 | — | — | 1,667 | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Private-label residential MBS | — | — | 2,299 | — | 2,299 | |||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Interest-rate related | — | 859 | — | (806 | ) | 53 | ||||||||||||||||||
Grantor trust (included in Other assets) | 21 | — | — | — | 21 | |||||||||||||||||||
Total assets at fair value | $ | 21 | $ | 2,526 | $ | 2,299 | $ | (806 | ) | $ | 4,040 | |||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Interest-rate related | $ | — | $ | (2,674 | ) | $ | — | $ | 2,487 | $ | (187 | ) | ||||||||||||
Total liabilities at fair value | $ | — | $ | (2,674 | ) | $ | — | $ | 2,487 | $ | (187 | ) | ||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Fair Value Measurements Using | Netting Adjustment (1) | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | — | $ | 2,291 | $ | — | $ | — | $ | 2,291 | ||||||||||||||
Another FHLBank’s bond | — | 77 | — | — | 77 | |||||||||||||||||||
State or local housing agency debt obligations | — | 2 | — | — | 2 | |||||||||||||||||||
Total trading securities | — | 2,370 | — | — | 2,370 | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Private-label residential MBS | — | — | 2,676 | — | 2,676 | |||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Interest-rate related | — | 1,190 | — | (1,177 | ) | 13 | ||||||||||||||||||
Grantor trust (included in Other assets) | 17 | — | — | — | 17 | |||||||||||||||||||
Total assets at fair value | $ | 17 | $ | 3,560 | $ | 2,676 | $ | (1,177 | ) | $ | 5,076 | |||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Interest-rate related | $ | — | $ | (4,208 | ) | $ | — | $ | 4,050 | $ | (158 | ) | ||||||||||||
Total liabilities at fair value | $ | — | $ | (4,208 | ) | $ | — | $ | 4,050 | $ | (158 | ) | ||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Amounts represent the effect of legally enforceable master netting agreements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||||||||||||||||||||
Reconciliation of Available-For-Sale Securities Measured at Fair Value | ' | |||||||||||||||||||||||
The following table presents a reconciliation of available-for-sale securities that are measured at fair value using significant unobservable inputs (Level 3): | ||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Balance, beginning of year | $ | 2,676 | $ | 2,942 | $ | 3,319 | ||||||||||||||||||
Transfer of private-label MBS from held-to-maturity to available-for-sale | 11 | 6 | 451 | |||||||||||||||||||||
Total (losses) gains realized and unrealized: (1) | ||||||||||||||||||||||||
Included in net impairment losses recognized in earnings | — | (16 | ) | (111 | ) | |||||||||||||||||||
Included in other comprehensive income (loss) (2) | 167 | 357 | 31 | |||||||||||||||||||||
Accretion of credit losses in net interest income | 10 | 4 | (11 | ) | ||||||||||||||||||||
Settlements | (565 | ) | (617 | ) | (737 | ) | ||||||||||||||||||
Balance, end of year | $ | 2,299 | $ | 2,676 | $ | 2,942 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
(1) | Related to available-for-sale securities held at year end. | |||||||||||||||||||||||
(2) | This amount is included in other comprehensive income (loss) within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income. | |||||||||||||||||||||||
Carrying Values and Estimated Fair Values | ' | |||||||||||||||||||||||
The carrying values and estimated fair values of the Bank’s financial instruments were as follows: | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 4,374 | $ | 4,374 | $ | 4,374 | $ | — | $ | — | $ | — | ||||||||||||
Interest bearing-deposits | 1,007 | 1,007 | — | 1,007 | — | — | ||||||||||||||||||
Federal funds sold | 1,795 | 1,795 | — | 1,795 | — | — | ||||||||||||||||||
Trading securities | 1,667 | 1,667 | — | 1,667 | — | — | ||||||||||||||||||
Available-for-sale securities | 2,299 | 2,299 | — | — | 2,299 | — | ||||||||||||||||||
Held-to-maturity securities | 20,176 | 20,146 | — | 18,225 | 1,921 | — | ||||||||||||||||||
Mortgage loans held for portfolio, net | 918 | 1,004 | — | 1,004 | — | — | ||||||||||||||||||
Advances | 89,588 | 89,413 | — | 89,413 | — | — | ||||||||||||||||||
Accrued interest receivable | 199 | 199 | — | 199 | — | — | ||||||||||||||||||
Derivative assets | 53 | 53 | — | 859 | — | (806 | ) | |||||||||||||||||
Grantor trust assets (included in Other assets) | 21 | 21 | 21 | — | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | (1,752 | ) | (1,752 | ) | — | (1,752 | ) | — | — | |||||||||||||||
Consolidated obligations, net: | ||||||||||||||||||||||||
Discount notes | (32,202 | ) | (32,203 | ) | — | (32,203 | ) | — | — | |||||||||||||||
Bonds | (80,728 | ) | (80,733 | ) | — | (80,733 | ) | — | — | |||||||||||||||
Mandatorily redeemable capital stock | (24 | ) | (24 | ) | (24 | ) | — | — | — | |||||||||||||||
Accrued interest payable | (183 | ) | (183 | ) | — | (183 | ) | — | — | |||||||||||||||
Derivative liabilities | (187 | ) | (187 | ) | — | (2,674 | ) | — | 2,487 | |||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and due from banks | $ | 4,083 | $ | 4,083 | $ | 4,083 | $ | — | $ | — | $ | — | ||||||||||||
Interest bearing-deposits | 1,005 | 1,005 | — | 1,005 | — | — | ||||||||||||||||||
Securities purchased under agreements to resell | 250 | 250 | — | 250 | — | — | ||||||||||||||||||
Federal funds sold | 7,235 | 7,235 | — | 7,235 | — | — | ||||||||||||||||||
Trading securities | 2,370 | 2,370 | — | 2,370 | — | — | ||||||||||||||||||
Available-for-sale securities | 2,676 | 2,676 | — | — | 2,676 | — | ||||||||||||||||||
Held-to-maturity securities | 16,918 | 17,124 | — | 14,366 | 2,758 | — | ||||||||||||||||||
Mortgage loans held for portfolio, net (1) | 1,244 | 1,358 | — | 1,358 | — | — | ||||||||||||||||||
Advances (2) | 87,503 | 87,933 | — | 87,933 | — | — | ||||||||||||||||||
Accrued interest receivable | 240 | 240 | — | 240 | — | — | ||||||||||||||||||
Derivative assets | 13 | 13 | — | 1,190 | — | (1,177 | ) | |||||||||||||||||
Grantor trust assets (included in Other assets) | 17 | 17 | 17 | — | — | — | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest-bearing deposits | (2,094 | ) | (2,094 | ) | — | (2,094 | ) | — | — | |||||||||||||||
Consolidated obligations, net: | ||||||||||||||||||||||||
Discount notes | (31,737 | ) | (31,739 | ) | — | (31,739 | ) | — | — | |||||||||||||||
Bonds (3) | (82,947 | ) | (83,671 | ) | — | (83,671 | ) | — | — | |||||||||||||||
Mandatorily redeemable capital stock | (40 | ) | (40 | ) | (40 | ) | — | — | — | |||||||||||||||
Accrued interest payable | (229 | ) | (229 | ) | — | (229 | ) | — | — | |||||||||||||||
Derivative liabilities | (158 | ) | (158 | ) | — | (4,208 | ) | — | 4,050 | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Outstanding Standby Letters of Credit | ' | |||||||
The Bank’s outstanding standby letters of credit were as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Standby letters of credit | $ | 27,789 | $ | 17,687 | ||||
Original terms (1) | One month to 20 years | Less than four months to 20 years | ||||||
Final expiration year | 2030 | 2030 | ||||||
____________ | ||||||||
(1) | The Bank had 14 standby letters of credit for a total of $20 as of December 31, 2013, and five standby letters of credit for a total of $49 as of December 31, 2012, that have no stated maturity date and are subject to renewal on an annual basis. |
Transactions_with_Other_FHLBan1
Transactions with Other FHLBanks (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Transactions with Other FHLBanks [Abstract] | ' | ||||||||||||
Schedule of Loans to and From Other Federal Home Loan Banks | ' | ||||||||||||
The following table summarizes the cash flow activities for loans to and borrowings from other FHLBanks: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investing activities: | |||||||||||||
Loans made to other FHLBanks | $ | (305 | ) | $ | (484 | ) | $ | (859 | ) | ||||
Principal collected on loans to other FHLBanks | 305 | 484 | 859 | ||||||||||
Net change in loans to other FHLBanks | $ | — | $ | — | $ | — | |||||||
Financing activities: | |||||||||||||
Proceeds from short-term borrowings from other FHLBanks | $ | 2,270 | $ | 446 | $ | 3,066 | |||||||
Payments of short-term borrowings from other FHLBanks | (2,270 | ) | (446 | ) | (3,066 | ) | |||||||
Net change in borrowings from other FHLBanks | $ | — | $ | — | $ | — | |||||||
Nature_of_Operations_Details
Nature of Operations (Details) | Dec. 31, 2013 |
bank | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of Federal Home Loan Banks | 12 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Accumulated depreciation and amortization | $63 | $59 | ' |
Depreciation and amortization expense | 5 | 5 | 4 |
Gross carrying amount of computer software capitalized | 60 | 59 | ' |
Joint Capital Enhancement Agreement percentage | 20.00% | ' | ' |
Other Assets | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Real estate owned, acquired through foreclosure | 19 | 18 | ' |
Automobiles and Computer Hardware | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of premises and equipment (in years) | '3 years | ' | ' |
Office Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of premises and equipment (in years) | '8 years | ' | ' |
Office Furniture and Building Improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of premises and equipment (in years) | '10 years | ' | ' |
Building | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of premises and equipment (in years) | '40 years | ' | ' |
Computer Software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of premises and equipment (in years) | '5 years | ' | ' |
Depreciation and amortization expense | 5 | 6 | 6 |
Accumulated amortization of computer software capitalized | $48 | $43 | ' |
Cash_and_Due_from_Banks_Detail
Cash and Due from Banks (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and due from banks | $4,374 | $4,083 |
Average compensating balances | 7 | 1 |
Interest-bearing deposits | 1,007 | 1,005 |
Federal Reserve Bank Cash | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash and due from banks | 4,363 | 4,073 |
Pass-through Reserves | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Interest-bearing deposits | $1,006 | $1,004 |
Trading_Securities_Details
Trading Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | $1,667 | $2,370 | ||
Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,601 | 2,291 | ||
Other FHLBank's Bond [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 65 | [1] | 77 | [1] |
State or Local Housing Agency Obligations [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | $1 | $2 | ||
[1] | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. |
Trading_Securities_Details_1
Trading Securities (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Trading Securities [Abstract] | ' | ' | ' |
Net (losses) gains on trading securities held at period end | ($84) | ($60) | $8 |
Net unrealized/realized losses on trading securities sold/matured during the period | -16 | -7 | -6 |
Net (losses) gains on trading securities | ($100) | ($67) | $2 |
Availableforsale_Securities_De
Available-for-sale Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Transferred During First Quarter | Transferred During First Quarter | Transferred During First Quarter | Transferred During Second Quarter | Transferred During Second Quarter | Transferred During Second Quarter | Transferred During Third Quarter | Transferred During Third Quarter | Transferred During Third Quarter | Transferred During Fourth Quarter | Transferred During Fourth Quarter | Transferred During Fourth Quarter | ||
Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | Private-Label MBS Transferred [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized cost of available-for-sale securities | $2,174 | $2,717 | $12 | $6 | $488 | $12 | $6 | $322 | $0 | $0 | $52 | $0 | $0 | $23 | $0 | $0 | $91 |
Other Than Temporarily Impaired Losses, Not Credit Losses, Available for Sale Securities | ' | ' | 1 | 0 | 37 | 1 | 0 | 20 | 0 | 0 | 6 | 0 | 0 | 2 | 0 | 0 | 9 |
Estimated fair value of available-for-sale securities | $2,299 | $2,676 | $11 | $6 | $451 | $11 | $6 | $302 | $0 | $0 | $46 | $0 | $0 | $21 | $0 | $0 | $82 |
Availableforsale_Securities_De1
Available-for-sale Securities (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | $2,174 | $2,717 |
Estimated fair value of available-for-sale securities | 2,299 | 2,676 |
Fixed-rate | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | 41 | 55 |
Variable-rate | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | 2,133 | 2,662 |
Private-label MBS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | 2,174 | 2,717 |
Other-than-temporary impairment recognized in accumulated other comprehensive loss | 27 | 120 |
Gross unrealized gains on available-for-sale securities | 152 | 79 |
Gross unrealized losses on available-for-sale securities | 0 | 0 |
Estimated fair value of available-for-sale securities | $2,299 | $2,676 |
Availableforsale_Securities_De2
Available-for-sale Securities (Details 2) (Private-label MBS, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | positions | positions |
Private-label MBS | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of available-for-sale securities in unrealzed loss position for less than 12 months | 6 | 3 |
Number of available-for-sale securities in unrealzed loss position for 12 months or more | 10 | 26 |
Number of available-for-sale securities in unrealzed loss position | 16 | 29 |
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months | $137 | $154 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 1 | 1 |
Estimated fair value of available-for-sale securities in unrealized loss position for 12 months or more | 243 | 1,240 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 26 | 119 |
Estimated fair value of available-for-sale securities in unrealized loss position | 380 | 1,394 |
Gross unrealized losses on available-for-sale securities | $27 | $120 |
Availableforsale_Securities_De3
Available-for-sale Securities (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | $2,174 | $2,717 |
Estimated fair value of available-for-sale securities | 2,299 | 2,676 |
Bank of America Corporation, Charlotte, NC | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost of available-for-sale securities | 1,390 | 1,712 |
Other-than-temporary impairment recognized in accumulated other comprehensive loss | 26 | 112 |
Gross unrealized gains on available-for-sale securities | 98 | 41 |
Gross unrealized losses on available-for-sale securities | 0 | 0 |
Estimated fair value of available-for-sale securities | $1,462 | $1,641 |
Heldtomaturity_Securities_Deta
Held-to-maturity Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | $20,176 | $16,918 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 129 | 230 |
Gross unrealized losses on held-to-maturity securities | 159 | 24 |
Estimated fair value of held-to-maturity securites | 20,146 | 17,124 |
Certificates of Deposit [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 0 | 550 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Gross unrealized losses on held-to-maturity securities | 0 | 0 |
Estimated fair value of held-to-maturity securites | 0 | 550 |
State or Local Housing Agency Obligations [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 92 | 106 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 1 | 2 |
Gross unrealized losses on held-to-maturity securities | 0 | 0 |
Estimated fair value of held-to-maturity securites | 93 | 108 |
Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 3,738 | 2,133 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 0 | 0 |
Gross unrealized losses on held-to-maturity securities | 24 | 0 |
Estimated fair value of held-to-maturity securites | 3,714 | 2,133 |
Mortgage-backed Securities, U.S. Agency Obligations-Guaranteed | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 465 | 622 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 7 | 8 |
Gross unrealized losses on held-to-maturity securities | 0 | 0 |
Estimated fair value of held-to-maturity securites | 472 | 630 |
Mortgage-backed Securities, Government-sponsored enterprises [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 13,952 | 10,763 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 109 | 184 |
Gross unrealized losses on held-to-maturity securities | 115 | 2 |
Estimated fair value of held-to-maturity securites | 13,946 | 10,945 |
Private-label MBS | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 1,929 | 2,744 |
Held To Maturity Securities Accumulated Unrecognized Holding Gain | 12 | 36 |
Gross unrealized losses on held-to-maturity securities | 20 | 22 |
Estimated fair value of held-to-maturity securites | $1,921 | $2,758 |
Heldtomaturity_Securities_Deta1
Held-to-maturity Securities (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | positions | positions |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Number of unrealized loss positions held less than 12 months | 114 | 4 |
Number of unrealized loss positions held more than 12 months | 19 | 44 |
Total number of unrealized loss positions | 133 | 48 |
Estimated fair value of unrealized loss positions held less than 12 months | $6,719 | $904 |
Estimated fair value of unrealized loss positions held 12 months or more | 388 | 987 |
Total estimated fair value of positions in an unrealized loss | 7,107 | 1,891 |
Gross unrealized losses of positions held less than 12 months | 144 | 1 |
Gross unrealized losses of positions held less 12 months or more | 15 | 23 |
Total gross unrealized losses | 159 | 24 |
Certificates of Deposit [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Total gross unrealized losses | 0 | 0 |
Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Number of unrealized loss positions held less than 12 months | 9 | 3 |
Number of unrealized loss positions held more than 12 months | 0 | 0 |
Total number of unrealized loss positions | 9 | 3 |
Estimated fair value of unrealized loss positions held less than 12 months | 1,970 | 750 |
Estimated fair value of unrealized loss positions held 12 months or more | 0 | 0 |
Total estimated fair value of positions in an unrealized loss | 1,970 | 750 |
Gross unrealized losses of positions held less than 12 months | 24 | 0 |
Gross unrealized losses of positions held less 12 months or more | 0 | 0 |
Total gross unrealized losses | 24 | 0 |
Mortgage-backed Securities, Government-sponsored enterprises [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Number of unrealized loss positions held less than 12 months | 65 | 1 |
Number of unrealized loss positions held more than 12 months | 1 | 1 |
Total number of unrealized loss positions | 66 | 2 |
Estimated fair value of unrealized loss positions held less than 12 months | 3,932 | 154 |
Estimated fair value of unrealized loss positions held 12 months or more | 147 | 13 |
Total estimated fair value of positions in an unrealized loss | 4,079 | 167 |
Gross unrealized losses of positions held less than 12 months | 108 | 1 |
Gross unrealized losses of positions held less 12 months or more | 7 | 1 |
Total gross unrealized losses | 115 | 2 |
Private-label MBS | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Number of unrealized loss positions held less than 12 months | 40 | 0 |
Number of unrealized loss positions held more than 12 months | 18 | 43 |
Total number of unrealized loss positions | 58 | 43 |
Estimated fair value of unrealized loss positions held less than 12 months | 817 | 0 |
Estimated fair value of unrealized loss positions held 12 months or more | 241 | 974 |
Total estimated fair value of positions in an unrealized loss | 1,058 | 974 |
Gross unrealized losses of positions held less than 12 months | 12 | 0 |
Gross unrealized losses of positions held less 12 months or more | 8 | 22 |
Total gross unrealized losses | $20 | $22 |
Heldtomaturity_Securities_Deta2
Held-to-maturity Securities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of non-mortgage backed held-to-maturity securities | $20,176 | $16,918 |
Amortized cost of held-to-maturity securities | 20,176 | 16,918 |
Estimated fair value of held-to-maturity securites | 20,146 | 17,124 |
Non-mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securites due in one year or less | 430 | 1,092 |
Amortized cost of held-to-maturity securites due after one year through five years | 3,400 | 1,697 |
Amortized cost of non-mortgage backed held-to-maturity securities | 3,830 | 2,789 |
Amortized cost of held-to-maturity securities | 3,830 | 2,789 |
Fair value of held-to-maturity securites due in one year or less | 430 | 1,093 |
Fair value of held-to-maturity securites due after one year through five years | 3,377 | 1,698 |
Estimated fair value of held-to-maturity securites | 3,807 | 2,791 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of mortgage-backed held-to-maturity securities | 16,346 | 14,129 |
Amortized cost of held-to-maturity securities | 16,346 | 14,129 |
Fair value of mortgage-backed securities | $16,339 | $14,333 |
Heldtomaturity_Securities_Deta3
Held-to-maturity Securities (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | $20,176 | $16,918 |
Gross unrealized gains on held-to-maturity securities | 129 | 230 |
Gross unrealized losses on held-to-maturity securities | 159 | 24 |
Estimated fair value of held-to-maturity securites | 20,146 | 17,124 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 16,346 | 14,129 |
Mortgage-backed securities [Member] | Bank of America Corporation, Charlotte, NC | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 619 | 896 |
Gross unrealized gains on held-to-maturity securities | 4 | 11 |
Gross unrealized losses on held-to-maturity securities | 8 | 8 |
Estimated fair value of held-to-maturity securites | 615 | 899 |
Non-mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 3,830 | 2,789 |
Estimated fair value of held-to-maturity securites | 3,807 | 2,791 |
Fixed-rate | Mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 3,624 | 2,689 |
Fixed-rate | Non-mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 1,586 | 656 |
Variable-rate | Mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | 12,722 | 11,440 |
Variable-rate | Non-mortgage Backed Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized cost of held-to-maturity securities | $2,244 | $2,133 |
Recovered_Sheet1
Other-than-temporary Impairment (Details) | Dec. 31, 2013 |
Minimum | ' |
Schedule of Projected Home Price Recovery Ranges | ' |
1 to 6 | 0.00% |
7 to 12 | 1.00% |
13 to 18 | 2.00% |
19 to 30 | 2.00% |
31 to 54 | 2.00% |
Thereafter | 2.30% |
Maximum | ' |
Schedule of Projected Home Price Recovery Ranges | ' |
1 to 6 | 3.00% |
7 to 12 | 4.00% |
13 to 18 | 4.00% |
19 to 30 | 5.00% |
31 to 54 | 6.00% |
Thereafter | 5.60% |
Otherthantemporary_Impairment_1
Other-than-temporary Impairment (Details 1) (Alt-A [Member], 2004 And Prior [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Alt-A [Member] | 2004 And Prior [Member] | ' |
Other-than-Temporary Impairment, Credit Losses Recognized in Earnings | ' |
Weighted Average Interest Rate on Investments, prepayment rate | 12.08% |
Weighted Average Interest Rate on Investments, default rate | 22.32% |
Weighted Average Interest Rate on Investments, loss severities | 44.43% |
Weighted Average Interest Rate on Investments, current credit enhancement | 18.89% |
Otherthantemporary_Impairment_2
Other-than-temporary Impairment (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Roll-Forward Cumulative Credit Losses Recognized | ' | ' | ' |
Balance, beginning of year | $586 | $582 | $464 |
Amount related to credit loss for which an other-than-temporary impairment was not previously recognized | 0 | 0 | 11 |
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | 0 | 16 | 107 |
Increase in cash flows expected to be collected, recognized over the remaining life of the securities | -12 | -12 | 0 |
Balance, end of year | $574 | $586 | $582 |
Otherthantemporary_Impairment_3
Other-than-temporary Impairment (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Other-than-temporary Impairment (Textual) [Abstract] | ' |
Minimum number of people under CBSA | 10,000 |
Projected House Price, Decline Rate | 1.00% |
Projected House Price, Increase Rate | 5.00% |
Number of projected discovery paths for the housing market | 5 |
Minimum | ' |
Other-than-temporary Impairment (Additional Textual) [Abstract] | ' |
Home price range | 5.00% |
Maximum | ' |
Other-than-temporary Impairment (Additional Textual) [Abstract] | ' |
Home price range | 7.00% |
Mortgage_Loans_Held_for_Portfo2
Mortgage Loans Held for Portfolio (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid principal balance | $931 | $1,257 | ' | ||
Premiums | 3 | 5 | ' | ||
Discounts | -5 | -7 | ' | ||
Total | 929 | 1,255 | ' | ||
Conventional loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid principal balance | 864 | 1,165 | ' | ||
Government Mortgage Loan [Member] | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid principal balance | 67 | 92 | ' | ||
Fixed-rate medium-term single-family residential mortgage loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid principal balance | 150 | [1] | 230 | [1] | ' |
Mortgage loans on real estate, original contract terms | '15 years | ' | ' | ||
Fixed-rate long-term single-family residential mortgage loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid principal balance | 781 | 1,007 | ' | ||
Multifamily residential mortgage loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Unpaid Principal Balance of Mortgage Loans Sold | 18 | ' | ' | ||
Gain (Loss) on Sale of Mortgage Loans | 1 | ' | ' | ||
Unpaid principal balance | 0 | 20 | ' | ||
Single family residential mortgage loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Credit enhancement fees | $1 | $2 | $2 | ||
[1] | Medium-term is defined as a term of 15 years or less. |
Advances_Details
Advances (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances [Abstract] | ' | ' |
Overdrawn demand deposit accounts | $2 | $2 |
Due in one year or less | 51,331 | 41,482 |
Due after one year through two years | 5,366 | 7,915 |
Due after two years through three years | 6,136 | 4,735 |
Due after three years through four years | 8,495 | 5,821 |
Due after four years through five years | 5,088 | 8,758 |
Due after five years | 11,464 | 15,157 |
Federal Home Loan Bank Advances at par value | 87,882 | 83,870 |
Discount on Affordable Housing Program Advances | -8 | -11 |
Discount on Economic Development and Growth Enhancement Program Advances | -7 | -8 |
Hedging adjustments | 1,726 | 3,658 |
Deferred commitment fees | -5 | -6 |
Federal Home Loan Bank Advances | $89,588 | $87,503 |
Advances_Details_2
Advances (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances [Abstract] | ' | ' |
Overdrawn demand deposit accounts | $2 | $2 |
Due or callable in one year or less | 51,339 | 41,482 |
Due or callable after one year through two years | 5,375 | 7,915 |
Due or callable after two years through three years | 6,159 | 4,745 |
Due or callable after three years through four years | 8,495 | 5,830 |
Due or callable after four years through five years | 5,088 | 8,758 |
Due or callable after five years | 11,424 | 15,138 |
Federal Home Loan Bank Advances at par value | $87,882 | $83,870 |
Advances_Details_3
Advances (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances [Abstract] | ' | ' |
Overdrawn demand deposit accounts | $2 | $2 |
Due or convertible in one year or less | 54,522 | 46,198 |
Due or convertible after one year through two years | 5,414 | 7,886 |
Due or convertible after two years through three years | 5,867 | 4,748 |
Due or convertible after three years through four years | 6,643 | 5,368 |
Due or convertible after four years through five years | 4,168 | 6,570 |
Due or convertible after five years | 11,266 | 13,098 |
Federal Home Loan Bank Advances at par value | $87,882 | $83,870 |
Advances_Details_4
Advances (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances [Abstract] | ' | ' |
Fixed rate, due in one year or less | $46,343 | $38,307 |
Fixed rate, due after one year | 28,535 | 33,425 |
Total fixed-rate | 74,878 | 71,732 |
Variable rate, due in one year or less | 4,990 | 3,177 |
Variable rate, due after one year | 8,014 | 8,961 |
Total variable-rate | 13,004 | 12,138 |
Federal Home Loan Bank Advances at par value | $87,882 | $83,870 |
Advances_Details_5
Advances (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Advances [Line Items] | ' | ' |
Federal Home Loan Bank Advances at par value | $87,882 | $83,870 |
First Mortgage Collateral [Member] | ' | ' |
Advances [Line Items] | ' | ' |
Securities Held as Collateral, Percent of Total | 67.20% | 69.78% |
Securities Collateral [Member] | ' | ' |
Advances [Line Items] | ' | ' |
Securities Held as Collateral, Percent of Total | 8.18% | 7.09% |
Other Real Estate Related Collateral [Member] | ' | ' |
Advances [Line Items] | ' | ' |
Securities Held as Collateral, Percent of Total | 24.62% | 23.13% |
Lendable Collateral Value [Member] | ' | ' |
Advances [Line Items] | ' | ' |
Securities Held as Collateral, at Fair Value | $231,342 | $217,935 |
Advances_Details_Textual
Advances (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Institutions | Institutions | |
Advances (Textual) [Abstract] | ' | ' |
Federal Home Loan Bank, Advances, Interest Rate on Affordable Housing Program Subsidized Loans | 0.00% | ' |
Federal Home Loan Bank Advances at par value | $87,882,000,000 | $83,870,000,000 |
Number of largest borrowers | 10 | 10 |
Advances to largest borrowers | 65,472,000,000 | 62,488,000,000 |
Largest borrowers concentration in total advances | 74.50% | 74.50% |
Allowance for credit losses on advances | 0 | 0 |
Advances past due | 0 | 0 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ' | ' |
Advances (Textual) [Abstract] | ' | ' |
Federal Home Loan Bank Advances at par value | 39,000,000 | 20,000,000 |
Federal Home Loan Bank, Advances, Convertible Option [Member] | ' | ' |
Advances (Textual) [Abstract] | ' | ' |
Federal Home Loan Bank Advances at par value | $3,510,000,000 | $5,174,000,000 |
Minimum | ' | ' |
Advances (Textual) [Abstract] | ' | ' |
Federal Home Loan Bank advances interest rate | 0.00% | ' |
Maximum | ' | ' |
Advances (Textual) [Abstract] | ' | ' |
Federal Home Loan Bank advances interest rate | 8.64% | ' |
Allowance_for_Credit_Losses_Ro
Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of year | $11 | $6 | $1 |
Provision for credit losses | 5 | 6 | 5 |
Charge-offs | -4 | -1 | 0 |
Allowance for Loan and Lease Losses, Loans Sold | -1 | ' | ' |
Balance, end of year | 11 | 11 | 6 |
Conventional Single-Family Residential Mortgage Loans | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of year | 10 | 5 | 0 |
Provision for credit losses | 5 | 6 | 5 |
Charge-offs | -4 | -1 | 0 |
Allowance for Loan and Lease Losses, Loans Sold | 0 | ' | ' |
Balance, end of year | 11 | 10 | 5 |
Government-Guaranteed or Insured Residential Mortgage Loans | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of year | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Loans Sold | 0 | ' | ' |
Balance, end of year | 0 | 0 | 0 |
Multifamily Mortgage | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of year | 1 | 1 | 1 |
Provision for credit losses | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Loans Sold | -1 | ' | ' |
Balance, end of year | $0 | $1 | $1 |
Allowance_for_Credit_Losses_Mo
Allowance for Credit Losses (Mortgage Loan Portfolio by Impairment Methodology) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||
Allowance for credit losses, individually evaluated for impairment | $2 | $2 | ' | ' | ||
Allowance for credit losses, collectively evaluated for impairment | 9 | 9 | ' | ' | ||
Total allowance for credit losses | 11 | 11 | 6 | 1 | ||
Recorded investment, individually evaluated for impairment | 15 | 34 | ' | ' | ||
Recorded investment, collectively evaluated for impairment | 918 | 1,228 | ' | ' | ||
Total recorded investment | 933 | [1] | 1,262 | [2] | ' | ' |
Accrued Interest on Mortgage Loans | 4 | 7 | ' | ' | ||
Conventional Single-Family Residential Mortgage Loans | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||
Allowance for credit losses, individually evaluated for impairment | 2 | 1 | ' | ' | ||
Allowance for credit losses, collectively evaluated for impairment | 9 | 9 | ' | ' | ||
Total allowance for credit losses | 11 | 10 | 5 | 0 | ||
Recorded investment, individually evaluated for impairment | 15 | 13 | ' | ' | ||
Recorded investment, collectively evaluated for impairment | 851 | 1,135 | ' | ' | ||
Total recorded investment | 866 | [1] | 1,148 | [2] | ' | ' |
Government-Guaranteed or Insured Residential Mortgage Loans | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||
Allowance for credit losses, individually evaluated for impairment | 0 | 0 | ' | ' | ||
Allowance for credit losses, collectively evaluated for impairment | 0 | 0 | ' | ' | ||
Total allowance for credit losses | 0 | 0 | 0 | 0 | ||
Recorded investment, individually evaluated for impairment | 0 | 0 | ' | ' | ||
Recorded investment, collectively evaluated for impairment | 67 | 93 | ' | ' | ||
Total recorded investment | 67 | [1] | 93 | [2] | ' | ' |
Multifamily Mortgage | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||
Allowance for credit losses, individually evaluated for impairment | ' | 1 | ' | ' | ||
Allowance for credit losses, collectively evaluated for impairment | ' | 0 | ' | ' | ||
Total allowance for credit losses | 0 | 1 | 1 | 1 | ||
Recorded investment, individually evaluated for impairment | ' | 21 | ' | ' | ||
Recorded investment, collectively evaluated for impairment | ' | 0 | ' | ' | ||
Total recorded investment | ' | $21 | [2] | ' | ' | |
[1] | The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||||
[2] | The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. |
Allowance_for_Credit_Losses_Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Past due 30-59 days | $37 | $42 | ||
Past due 60-89 days | 12 | 16 | ||
Past due 90 days or more | 60 | 89 | ||
Total past due mortgage loans | 109 | 147 | ||
Total current mortgage loans | 824 | 1,115 | ||
Total recorded investment | 933 | [1] | 1,262 | [2] |
In process foreclosure | 41 | [3] | 64 | [3] |
Seriously delinquent rate | 6.42% | [4] | 7.01% | [4] |
Past due 90 days or more and still accruing interest | 9 | [5] | 11 | [5] |
Loans on nonaccrual status | 51 | [6] | 78 | [6] |
Conventional Single-Family Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Past due 30-59 days | 30 | 34 | ||
Past due 60-89 days | 9 | 12 | ||
Past due 90 days or more | 51 | 78 | ||
Total past due mortgage loans | 90 | 124 | ||
Total current mortgage loans | 776 | 1,024 | ||
Total recorded investment | 866 | [1] | 1,148 | [2] |
In process foreclosure | 38 | [3] | 59 | [3] |
Seriously delinquent rate | 5.90% | [4] | 6.78% | [4] |
Past due 90 days or more and still accruing interest | 0 | [5] | 0 | [5] |
Loans on nonaccrual status | 51 | [6] | 78 | [6] |
Troubled debt resructurings | 15 | 11 | ||
Recorded Investment | 15 | 13 | ||
Unpaid Principal Balance | 15 | 13 | ||
Related Allowance | 2 | 1 | ||
Average Recorded Investment | 15 | 13 | ||
Interest Income Recognized | 0 | 0 | ||
Government-Guaranteed or Insured Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Past due 30-59 days | 7 | 8 | ||
Past due 60-89 days | 3 | 4 | ||
Past due 90 days or more | 9 | 11 | ||
Total past due mortgage loans | 19 | 23 | ||
Total current mortgage loans | 48 | 70 | ||
Total recorded investment | 67 | [1] | 93 | [2] |
In process foreclosure | 3 | [3] | 5 | [3] |
Seriously delinquent rate | 13.13% | [4] | 11.45% | [4] |
Past due 90 days or more and still accruing interest | 9 | [5] | 11 | [5] |
Loans on nonaccrual status | 0 | [6] | 0 | [6] |
Multifamily Mortgage | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Past due 30-59 days | ' | 0 | ||
Past due 60-89 days | ' | 0 | ||
Past due 90 days or more | ' | 0 | ||
Total past due mortgage loans | ' | 0 | ||
Total current mortgage loans | ' | 21 | ||
Total recorded investment | ' | 21 | [2] | |
In process foreclosure | ' | 0 | [3] | |
Seriously delinquent rate | ' | 0.00% | [4] | |
Past due 90 days or more and still accruing interest | ' | 0 | [5] | |
Loans on nonaccrual status | ' | 0 | [6] | |
Performing Financing Receivable | Conventional Single-Family Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Troubled debt resructurings | 11 | 9 | ||
Nonperforming Financing Receivable | Conventional Single-Family Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Troubled debt resructurings | $4 | $2 | ||
[1] | The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest. | |||
[2] | The difference between the recorded investment and the carrying value of total mortgage loans of $7 relates to accrued interest. | |||
[3] | Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in lieu has been reported. Loans in the process of foreclosure are included in past due or current loans depending on their delinquency status. | |||
[4] | Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment. | |||
[5] | Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs. | |||
[6] | Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest. |
Allowance_for_Credit_Losses_De
Allowance for Credit Losses (Details Textual) (Conventional Single-Family Residential Mortgage Loans, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Conventional Single-Family Residential Mortgage Loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum loan modification interest rate reduction period | '36 months | ' | ' |
Maximum loan reamortization period | '40 years | ' | ' |
Target housing expense ratio | 31.00% | ' | ' |
Incremental interest rate reduction | 0.13% | ' | ' |
Interest rate floor on loan modifications | 3.00% | ' | ' |
Maximum loan modification interest rate reduction period if expense ratio is not met | '36 months | ' | ' |
Loan modifications experiencing default in previous twelve months (less than $1 million) | $2 | $1 | $1 |
Period of nonpayment of principal or interest constituting a default | '60 days | ' | ' |
Consolidated_Obligations_Detai
Consolidated Obligations (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
bank | ||
Schedule of Short-term and Long-term Debt [Line Items] | ' | ' |
Number of Federal Home Loan Banks | 12 | ' |
Debt, Gross | $80,552 | $81,901 |
Unpledged qualifying assets held by the Bank | 122,024 | 123,523 |
Book value of unpledged qualifying assets held by the Bank | 112,930 | 114,684 |
Maximum contractual maturity period of discount notes (up to one year) | '1 year | ' |
FHLBank | ' | ' |
Schedule of Short-term and Long-term Debt [Line Items] | ' | ' |
Debt, Gross | $766,837 | $687,903 |
Other FHLBanks | ' | ' |
Schedule of Short-term and Long-term Debt [Line Items] | ' | ' |
Number of Federal Home Loan Banks | 11 | ' |
Consolidated_Obligations_Detai1
Consolidated Obligations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Consolidated Obligation Bonds by Interest-Rate Payment | ' | ' |
Debt, Gross | $80,552 | $81,901 |
Fixed-rate | ' | ' |
Consolidated Obligation Bonds by Interest-Rate Payment | ' | ' |
Debt, Gross | 59,885 | 76,212 |
Step up/down | ' | ' |
Consolidated Obligation Bonds by Interest-Rate Payment | ' | ' |
Debt, Gross | 7,617 | 4,419 |
Simple variable-rate | ' | ' |
Consolidated Obligation Bonds by Interest-Rate Payment | ' | ' |
Debt, Gross | 13,005 | 1,250 |
Variable-rate capped floater | ' | ' |
Consolidated Obligation Bonds by Interest-Rate Payment | ' | ' |
Debt, Gross | $45 | $20 |
Consolidated_Obligations_Detai2
Consolidated Obligations (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | $80,552 | $81,901 |
Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bonds, Due in one year or less | 41,725 | 55,397 |
Bonds, Due after one year through two years | 9,485 | 7,587 |
Bonds, Due after two years through three years | 7,503 | 2,507 |
Bonds, Due after three years through four years | 6,355 | 3,344 |
Bonds, Due after four years through five years | 5,150 | 6,298 |
Bonds, Due after five years | 10,334 | 6,768 |
Debt, Gross | 80,552 | 81,901 |
Premiums | 82 | 91 |
Discounts | -24 | -34 |
Hedging adjustments | 118 | 989 |
Total | $80,728 | $82,947 |
Bonds, Due in one year or less, weighted average interest rate | 0.50% | 0.79% |
Bonds, Due after one year through two years, weighted average interest rate | 0.67% | 2.08% |
Bonds, Due after two years through three years, weighted average interest rate | 2.21% | 1.92% |
Bonds, Due after three years through four years, weighted average interest rate | 2.81% | 4.25% |
Bonds, Due after four years through five years, weighted average interest rate | 1.67% | 2.82% |
Bonds, Due after five years, weighted average interest rate | 1.92% | 2.31% |
Total, weighted average interest rate | 1.13% | 1.36% |
Consolidated_Obligations_Detai3
Consolidated Obligations (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | $80,552 | $81,901 |
Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | 80,552 | 81,901 |
Noncallable | Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | 56,569 | 71,880 |
Callable | Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | $23,983 | $10,021 |
Consolidated_Obligations_Detai4
Consolidated Obligations (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt, Gross | $80,552 | $81,901 |
Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bonds, Due in one year or less | 41,725 | 55,397 |
Bonds, Due after one year through two years | 9,485 | 7,587 |
Bonds, Due after two years through three years | 7,503 | 2,507 |
Bonds, Due after three years through four years | 6,355 | 3,344 |
Bonds, Due after four years through five years | 5,150 | 6,298 |
Bonds, Due after five years | 10,334 | 6,768 |
Debt, Gross | 80,552 | 81,901 |
Earlier of Contractual Maturity or Next Call Date [Member] | Unsecured Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bonds, Due in one year or less | 59,458 | 62,540 |
Bonds, Due after one year through two years | 7,795 | 6,550 |
Bonds, Due after two years through three years | 4,491 | 2,136 |
Bonds, Due after three years through four years | 6,095 | 3,024 |
Bonds, Due after four years through five years | 1,571 | 6,028 |
Bonds, Due after five years | $1,142 | $1,623 |
Consolidated_Obligations_Detai5
Consolidated Obligations (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Discount notes | $32,202 | $31,737 |
Discount Notes [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Discount notes | 32,202 | 31,737 |
Discount notes par value | $32,208 | $31,745 |
Discount notes weighted average interest rate | 0.11% | 0.12% |
Assessments_Details
Assessments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Affordable Housing Program [Roll Forward] | ' | ' | ' |
AHP Obligation, beginning balance | $80 | $109 | $126 |
AHP Assessments | 37 | 30 | 21 |
Subsidy usage, net | -43 | -59 | -38 |
AHP Obligation, ending balance | $74 | $80 | $109 |
Assessments_Details_1
Assessments (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
bank | ||
Assessments [Abstract] | ' | ' |
Portion of net earnings set aside after assessment for resolution funding corporation | $100,000,000 | ' |
Percentage of current year net earnings set aside after assessment for resolution funding corporation | 10.00% | ' |
Number of Federal Home Loan Banks | 12 | ' |
Principal outstanding from affordable housing program advances | 41,000,000 | 48,000,000 |
Congressionally mandated Federal Home Loan Bank assessments income percentage allocated after affordable housing program assessments | 20.00% | ' |
Congressionally mandated Federal Home Loan Bank assessments, annual annuity payment | $300,000,000 | ' |
Capital_and_Mandatorily_Redeem2
Capital and Mandatorily Redeemable Capital Stock (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
investor | ||||
class | ||||
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract] | ' | ' | ' | ' |
Required regulatory capital ratio | 4.00% | 4.00% | ' | ' |
Required leverage ratio | 5.00% | 5.00% | ' | ' |
Weight applied to permanent capital in computing leverage ratio | 1.5 | ' | ' | ' |
Weight applied to nonpermanent capital in computing leverage ratio | 1 | ' | ' | ' |
Mandatorily redeemable capital stock | $24 | $40 | $286 | $529 |
Number of subclasses of capital stock | 2 | ' | ' | ' |
Capital stock Class B putable par value (per share) | $100 | $100 | ' | ' |
Membership stock requirement percentage | 0.12% | ' | ' | ' |
Membership stock requirement, maximum | 20 | ' | ' | ' |
Activity based capital stock required by members as a percent of total advances and mortgage loans oustanding as disclosed in the statement of condition | 4.50% | ' | ' | ' |
Activity based capital stock required by members as a percent of targeted debt or equity investments sold by member to the bank | 8.00% | ' | ' | ' |
Activity based capital stock required by member as a percentage of outstanding balance of acquired member assets | 0.00% | 0.00% | ' | ' |
Redemption period for excess capital stock (in years) | '5 years | ' | ' | ' |
Number of largest holders of capital stock | 10 | ' | ' | ' |
Aggregate amount of capital stock held by ten largest holders of capital stock | 3,139 | 3,053 | ' | ' |
Aggregate percentage of capital stock held by ten largest holders of capital stock | 64.00% | 61.80% | ' | ' |
Interest expense on capital securities | $1 | $3 | $4 | ' |
Capital_and_Mandatorily_Redeem3
Capital and Mandatorily Redeemable Capital Stock (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Equity [Abstract] | ' | ' | ||
Risk Based Capital, Required | $2,246 | $1,625 | ||
Risk Based Capital, Actual | 6,563 | 6,373 | ||
Regulatory Capital Ratio, Required | 4.00% | 4.00% | ||
Regulatory Capital Ratio, Actual | 5.37% | 5.15% | ||
Regulatory Capital, Required | 4,893 | [1] | 4,948 | [1] |
Regulatory Capital, Actual | 6,563 | [1] | 6,373 | [1] |
Leverage Ratio, Required | 5.00% | 5.00% | ||
Leverage Ratio, Actual | 8.05% | 7.73% | ||
Leverage Capital, Required | 6,116 | 6,185 | ||
Leverage Capital, Actual | $9,845 | $9,560 | ||
[1] | Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital†includes the Bank’s $24 and $40 in mandatorily redeemable capital stock as of December 31, 2013 and 2012, respectively. |
Capital_and_Mandatorily_Redeem4
Capital and Mandatorily Redeemable Capital Stock (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Activity In Mandatorily Redeemable Capital Stock | ' | ' | ' |
Balance, beginning of year | $40 | $286 | $529 |
Attainment of nonmember status | 9 | 90 | 149 |
Withdrawal | 0 | 1 | 4 |
Repurchase/redemption of mandatorily redeemable capital stock | -25 | -308 | -369 |
Capital stock no longer subject to redemption due to the transfer of stock from a nonmember to a member | 0 | -29 | -27 |
Balance, end of year | $24 | $40 | $286 |
Capital_and_Mandatorily_Redeem5
Capital and Mandatorily Redeemable Capital Stock (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Equity [Abstract] | ' | ' | ' | ' |
Due in one year or less | $5 | $0 | ' | ' |
Due after one year through two years | 9 | 12 | ' | ' |
Due after two years through three years | 8 | 9 | ' | ' |
Due after three years through four years | 1 | 17 | ' | ' |
Due after four years through five years | 0 | 1 | ' | ' |
Due after five years | 1 | 1 | ' | ' |
Mandatorily redeemable capital stock | $24 | $40 | $286 | $529 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Held-to-maturity Securities | $1 | $0 | $37 |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | -1 | 0 | -37 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 167 | 341 | -69 |
Pension and Postretirement Benefits | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income, Beginning of period | -17 | -13 | -10 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Held-to-maturity Securities | 0 | ' | 0 |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 0 | ' | 0 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 3 | -5 | -5 |
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities | ' | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 1 | 1 | 2 |
Current period other comprehensive (loss) income | 4 | -4 | -3 |
Accumulated Other Comprehensive (Loss) Income, End of period | -13 | -17 | -13 |
Total Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income, Beginning of period | -58 | -411 | -402 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Held-to-maturity Securities | -1 | ' | -37 |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 0 | ' | 0 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 167 | 341 | -69 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 3 | -5 | -5 |
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities | ' | 16 | 100 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 1 | 1 | 2 |
Current period other comprehensive (loss) income | 170 | 353 | -9 |
Accumulated Other Comprehensive (Loss) Income, End of period | 112 | -58 | -411 |
Available-for-sale Securities | Noncredit Portion of Other Than Temporary Impairment Losses | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income, Beginning of period | -41 | -398 | -392 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Held-to-maturity Securities | 0 | ' | 0 |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | -1 | ' | -37 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 167 | 341 | -69 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 0 | 0 | 0 |
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities | ' | 16 | 100 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Current period other comprehensive (loss) income | 166 | 357 | -6 |
Accumulated Other Comprehensive (Loss) Income, End of period | 125 | -41 | -398 |
Held-to-maturity Securities [Member] | Noncredit Portion of Other Than Temporary Impairment Losses | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income, Beginning of period | 0 | 0 | 0 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Held-to-maturity Securities | -1 | ' | -37 |
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, before Tax | 1 | ' | 37 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 0 | 0 | 0 |
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities | ' | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 0 | 0 | 0 |
Current period other comprehensive (loss) income | 0 | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income, End of period | $0 | $0 | $0 |
Pension_and_Post_Retirement_Be2
Pension and Post Retirement Benefit Plans (Multi-employer Plan) (Details) (Multiemployer Plans, Pension [Member], USD $) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 01, 2013 | Jul. 01, 2012 | Jul. 01, 2011 | |||
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' | ' | |||
Bank's funded status as of the plan year end | 99.60% | 105.26% | 88.82% | ' | ' | ' | |||
Pentegra Defined Benefit Plan [Member] | ' | ' | ' | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' | ' | |||
Entity tax identification number | '135645888 | ' | ' | ' | ' | ' | |||
Multiemployer plan number | '333 | ' | ' | ' | ' | ' | |||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $7 | $9 | $9 | ' | ' | ' | |||
Pentegra Plan funded status as of July 1 | ' | ' | ' | 101.31% | [1] | 108.39% | [1] | 90.29% | [1] |
[1] | The Pentegra Plan's funded status as of July 1 is preliminary and may increase because the plan's participants were permitted to make contributions through March 15 of the following year (i.e. through March 15, 2014 for the plan year ended June 30, 2013 and through March 15, 2013 for the plan year ended June 30, 2012). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2015 for the plan year July 1, 2013 through June 30, 2014 and April 2014 for the plan year July 1, 2012 through June 2013. Form 5500 was filed in March 2013 for the plan year July 1, 2011 through June 30, 2012. |
Pension_and_Post_Retirement_Be3
Pension and Post Retirement Benefit Plans (Defined Contribution Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Qualifed Defined Contribution Plan [Member] | ' | ' | ' |
Defined Contribution Plan Disclosures [Line Items] | ' | ' | ' |
Voluntary employer contributions to defined contribution plan | $2 | $2 | $2 |
Nonqualifed Defined Contribution Plan [Member] | ' | ' | ' |
Defined Contribution Plan Disclosures [Line Items] | ' | ' | ' |
Voluntary employer contributions to defined contribution plan | $1 | $1 | $1 |
Pension_and_Post_Retirement_Be4
Pension and Post Retirement Benefit Plans (Deferred Compensation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Minimum obligation under deferred compensation plan | $1 | $1 | ' |
Deferred compensation and accrued earnings Included in operating expenses (less than $1 million) | $1 | $1 | $1 |
Pension_and_Post_Retirement_Be5
Pension and Post Retirement Benefit Plans (Defined Benefit Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Liabilities | ' | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Defined benefit plan amounts recognized in other liabilities | $36 | $39 | ' |
Supplemental Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation, beginning balance | 26 | 20 | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 1 | ' |
Actuarial loss | -1 | 5 | ' |
Benefits paid | -2 | -1 | ' |
Benefit obligation, ending balance | 25 | 26 | 20 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets, beginning balance | 0 | 0 | ' |
Employer contributions | 2 | 1 | ' |
Fair value of plan assets, ending balance | 0 | 0 | 0 |
Funded status at end of year | -25 | -26 | ' |
Accumulated benefit obligation | 16 | 16 | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2013 | 2 | ' | ' |
2014 | 2 | ' | ' |
2015 | 2 | ' | ' |
2016 | 3 | ' | ' |
2017 | 3 | ' | ' |
2019 - 2023 | 14 | ' | ' |
Postretirement Health Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation, beginning balance | 13 | 12 | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 0 | 0 | ' |
Actuarial loss | -2 | 0 | ' |
Benefits paid | -1 | 0 | ' |
Benefit obligation, ending balance | 11 | 13 | 12 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets, beginning balance | 0 | 0 | ' |
Employer contributions | 1 | 0 | ' |
Fair value of plan assets, ending balance | 0 | 0 | 0 |
Funded status at end of year | -11 | -13 | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2019 - 2023 | 3 | ' | ' |
2014 - 2018 (less than $1 million per year) | $1 | ' | ' |
Pension_and_Post_Retirement_Be6
Pension and Post Retirement Benefit Plans (Pension in Accumulated Other Comprehensive Income) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Supplemental Defined Benefit Pension Plan [Member] | ' | ' |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' |
Net loss | $11 | $14 |
Prior service credit | 0 | 0 |
Total amount recognized | 11 | 14 |
Postretirement Health Benefit Plan [Member] | ' | ' |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' |
Net loss | 3 | 5 |
Prior service credit | -2 | -2 |
Total amount recognized | $1 | $3 |
Pension_and_Post_Retirement_Be7
Pension and Post Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | $1 | $1 | $1 |
Interest cost | 1 | 1 | 1 |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of net loss | 2 | 1 | 1 |
Settlement loss | 0 | 0 | 1 |
Net periodic benefit cost | 4 | 3 | 4 |
Postretirement Health Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 1 | 1 |
Amortization of prior service credit | -1 | -1 | -1 |
Amortization of net loss | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $1 | $1 | $1 |
Pension_and_Post_Retirement_Be8
Pension and Post Retirement Benefit Plans (Pension Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Net (gain) loss | ($1) | $5 | $2 |
Amortization of net loss | -2 | -1 | -1 |
Amortization of prior service credit | 0 | 0 | 0 |
Settlement loss | 0 | 0 | -1 |
Total recognized in other comprehensive income (loss) | -3 | 4 | 0 |
Total recognized in periodic benefit cost and other comprehensive income (loss) | 1 | 7 | 4 |
Postretirement Health Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Net (gain) loss | -2 | 0 | 1 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service credit | 1 | 1 | 1 |
Settlement loss | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | -1 | 1 | 2 |
Total recognized in periodic benefit cost and other comprehensive income (loss) | $0 | $2 | $3 |
Pension_and_Post_Retirement_Be9
Pension and Post Retirement Benefit Plans (Expected AOCI Recognized in Net Periodic Benefit Cost in Next Fiscal Year) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ' |
Net loss | $1 |
Prior service credit | -1 |
Total | 0 |
Supplemental Defined Benefit Pension Plan [Member] | ' |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ' |
Net loss | 1 |
Prior service credit | 0 |
Total | 1 |
Postretirement Health Benefit Plan [Member] | ' |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ' |
Net loss | 0 |
Prior service credit | -1 |
Total | ($1) |
Recovered_Sheet2
Pension and Post Retirement Benefit Plans (Key Assumptions and Sensitivity Analysis) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Postretirement Health Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Benefit obligation, discount rate | 5.05% | 4.15% | ' |
Defined Benefit Plan, Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Net periodic benefit cost, discount rate | 4.15% | 4.40% | 5.55% |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ' | ' | ' |
Assumed for next year (%) | 7.75% | 8.00% | ' |
Ultimate rate (%) | 5.00% | 5.00% | ' |
Year that ultimate rate is reached | '2023 | '2017 | ' |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ' | ' | ' |
Effect on total service and interest cost components, one point increase | $0 | ' | ' |
Effect on total service and interest cost components, one point decrease | 0 | ' | ' |
Effect on accumulated postretirement benefit obligation, one point increase | 0 | ' | ' |
Effect on accumulated postretirement benefit obligation, one point decrease | ($1) | ' | ' |
Supplemental Defined Benefit Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Benefit obligation, discount rate | 5.04% | 4.10% | ' |
Benefit obligation, rate of compensation increase | 5.50% | 5.50% | ' |
Defined Benefit Plan, Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Net periodic benefit cost, discount rate | 4.10% | 3.73% | 4.53% |
Net periodic benefit cost, rate of compensation increase | 5.50% | 5.50% | 5.50% |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | $101,694 | $124,730 | ||
Derivative assets in hedges | 800 | 1,129 | ||
Derivative liabilities in hedges | -2,336 | -3,689 | ||
Derivative assets not designated as hedging instruments | 59 | 61 | ||
Derivative liabilities not designated as hedging instruments | -338 | -519 | ||
Total derivative assets before netting and collateral adjustments | 859 | 1,190 | ||
Total derivative liabilities before netting and collateral adjustments | 2,674 | 4,208 | ||
Derivative assets | 53 | 13 | ||
Derivative liabilities | -187 | -158 | ||
Interest rate swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets in hedges | 800 | 1,129 | ||
Derivative liabilities in hedges | -2,336 | -3,689 | ||
Derivative assets not designated as hedging instruments | 14 | 29 | ||
Derivative liabilities not designated as hedging instruments | -309 | -497 | ||
Interest Rate Swaption [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets not designated as hedging instruments | 1 | 0 | ||
Derivative liabilities not designated as hedging instruments | 1 | 0 | ||
Interest rate caps or floors | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets not designated as hedging instruments | 44 | 32 | ||
Derivative liabilities not designated as hedging instruments | -28 | -22 | ||
Designated as Hedging Instrument [Member] | Interest rate swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | 84,740 | 102,660 | ||
Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | 16,954 | 22,070 | ||
Not Designated as Hedging Instrument [Member] | Interest rate swaps | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | 4,414 | 9,570 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swaption [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | 40 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate caps or floors | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total notional amount of derivatives before netting and collateral adjustments | 12,500 | 12,500 | ||
Netting adjustments | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets offset against collateral | -741 | -1,089 | ||
Derivative liabilities offset against collateral | 741 | 1,089 | ||
Cash collateral and related accrued interest | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets offset against collateral | -65 | -88 | ||
Derivative liabilities offset against collateral | 1,746 | 2,961 | ||
Total collateral and netting adjustment | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative assets offset against collateral | -806 | [1] | -1,177 | [1] |
Derivative liabilities offset against collateral | $2,487 | [1] | $4,050 | [1] |
[1] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty. |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net gains (losses) on derivatives and hedged items in fair value hedging relationships | $180 | $167 | $144 |
Net gains (losses) on derivatives not designated as hegding instruments | 24 | -50 | -153 |
Net gains (losses) on derivatives and hedging activities | 204 | 117 | -9 |
Interest rate swaps | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net gains (losses) on derivatives and hedged items in fair value hedging relationships | 180 | 167 | 144 |
Net gains (losses) on derivatives not designated as hegding instruments | 102 | 52 | 12 |
Interest rate caps or floors | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net gains (losses) on derivatives not designated as hegding instruments | 6 | -1 | -23 |
Net Interest Settlements [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net gains (losses) on derivatives not designated as hegding instruments | ($84) | ($101) | ($142) |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Details 2) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Gains (Losses) on Derivative | $1,012 | $363 | ($180) | |||
Gains (Losses) on Hedged Item | -832 | -196 | 324 | |||
Net Fair Value Hedge Ineffectiveness | 180 | 167 | 144 | |||
Effect of Derivatives on Net Interest Income | -431 | [1] | -823 | [1] | -1,248 | [1] |
Advances [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Gains (Losses) on Derivative | 1,880 | 554 | -201 | |||
Gains (Losses) on Hedged Item | -1,678 | -355 | 347 | |||
Net Fair Value Hedge Ineffectiveness | 202 | 199 | 146 | |||
Effect of Derivatives on Net Interest Income | -1,033 | [1] | -1,397 | [1] | -2,054 | [1] |
Unsecured Debt [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Gains (Losses) on Derivative | -868 | -191 | 23 | |||
Gains (Losses) on Hedged Item | 846 | 159 | -25 | |||
Net Fair Value Hedge Ineffectiveness | -22 | -32 | -2 | |||
Effect of Derivatives on Net Interest Income | 602 | [1] | 574 | [1] | 804 | [1] |
Discount Notes [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Gains (Losses) on Derivative | ' | ' | -2 | |||
Gains (Losses) on Hedged Item | ' | ' | 2 | |||
Net Fair Value Hedge Ineffectiveness | ' | ' | 0 | |||
Effect of Derivatives on Net Interest Income | ' | ' | $2 | [1] | ||
[1] | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $859 | $1,190 | ||
Derivative Liability, Fair Value, Gross Liability | -2,674 | -4,208 | ||
Derivative assets | 53 | 13 | ||
Derivative liabilities | -187 | -158 | ||
Noncash collateral pledged that cannot be resold or repledged | 0 | [1] | 1 | [1] |
Noncash collateral received that cannot be resold or repledged | 0 | [1] | 0 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 53 | [2] | 12 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 187 | [2] | 158 | [2] |
Credit Risk Contract [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Credit Derivative Exposure Net | 47 | 8 | ||
Total collateral and netting adjustment | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative assets offset against collateral | -806 | -1,177 | ||
Derivative liabilities offset against collateral | 2,487 | 4,050 | ||
Over the Counter [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 820 | 1,190 | ||
Derivative Liability, Fair Value, Gross Liability | -2,545 | -4,208 | ||
Derivative assets offset against collateral | -818 | -1,177 | ||
Derivative liabilities offset against collateral | 2,358 | 4,050 | ||
Derivative assets | 2 | 13 | ||
Derivative liabilities | -187 | -158 | ||
Noncash collateral pledged that cannot be resold or repledged | 0 | [1] | 1 | [1] |
Noncash collateral received that cannot be resold or repledged | 0 | [1] | 0 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2 | [2] | 12 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 187 | [2] | 158 | [2] |
Exchange Cleared [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 39 | 0 | ||
Derivative Liability, Fair Value, Gross Liability | -129 | 0 | ||
Derivative assets offset against collateral | 12 | 0 | ||
Derivative liabilities offset against collateral | 129 | 0 | ||
Derivative assets | 51 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Noncash collateral pledged that cannot be resold or repledged | 0 | [1] | 0 | [1] |
Noncash collateral received that cannot be resold or repledged | 0 | [1] | 0 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 51 | [2] | 0 | [2] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $0 | [2] | $0 | [2] |
[1] | Collateral held with respect to derivatives with member institutions where the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank. | |||
[2] | The Bank had net credit exposure of $47 and $8 as of December 31, 2013 and 2012, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net position. |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Maximum contractual maturity period (in years) | '30 years |
Derivative credit-risk-related contingent features net liability position aggregate fair value | $1,791 |
Collateral already posted, aggregate fair value | 1,605 |
Additional collateral | $65 |
Estimated_Fair_Values_Details
Estimated Fair Values (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | $1,667 | $2,370 | ||
Estimated fair value of available-for-sale securities | 2,299 | 2,676 | ||
Derivative assets | 53 | 13 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | -187 | -158 | ||
Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,601 | 2,291 | ||
Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 65 | [1] | 77 | [1] |
State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1 | 2 | ||
Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 2,299 | 2,676 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Estimated fair value of available-for-sale securities | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 21 | 17 | ||
Total assets at fair value | 21 | 17 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 | ||
Estimated fair value of available-for-sale securities | 0 | 0 | ||
Derivative assets | 859 | 1,190 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Total assets at fair value | 2,526 | 3,560 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | -2,674 | -4,208 | ||
Total liabilities at fair value | -2,674 | -4,208 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,601 | 2,291 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 65 | 77 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1 | 2 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Estimated fair value of available-for-sale securities | 2,299 | 2,676 | ||
Derivative assets | 0 | 0 | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ||
Total assets at fair value | 2,299 | 2,676 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 2,299 | 2,676 | ||
Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | [2] | 0 | [3] |
Estimated fair value of available-for-sale securities | 0 | 0 | ||
Derivative assets | -806 | -1,177 | ||
Grantor trust assets (included in Other assets) | 0 | [2] | 0 | [3] |
Total assets at fair value | -806 | [2] | -1,177 | [3] |
Liabilities: | ' | ' | ||
Derivative liabilities | 2,487 | 4,050 | ||
Total liabilities at fair value | 2,487 | [2] | 4,050 | [3] |
Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | [2] | 0 | [3] |
Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | [2] | 0 | [3] |
Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | [2] | 0 | [3] |
Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 0 | [2] | 0 | [3] |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 | ||
Grantor trust assets (included in Other assets) | 21 | 17 | ||
Total assets at fair value | 4,040 | 5,076 | ||
Liabilities: | ' | ' | ||
Total liabilities at fair value | -187 | -158 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Government-Sponsored Enterprises Debt Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,601 | 2,291 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other FHLBank's Bond [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 65 | 77 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | State or Local Housing Agency Obligations [Member] | ' | ' | ||
Assets: | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1 | 2 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Private-label MBS | ' | ' | ||
Assets: | ' | ' | ||
Estimated fair value of available-for-sale securities | 2,299 | 2,676 | ||
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 859 | 1,190 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | -2,674 | -4,208 | ||
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 0 | 0 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 0 | 0 | ||
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Total collateral and netting adjustment | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | -806 | [2] | -1,177 | [3] |
Liabilities: | ' | ' | ||
Derivative liabilities | 2,487 | [2] | 4,050 | [3] |
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 53 | 13 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | ($187) | ($158) | ||
[1] | The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond. | |||
[2] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||
[3] | Amounts represent the effect of legally enforceable master netting agreements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. |
Estimated_Fair_Values_Details_
Estimated Fair Values (Details 1) (Fair Value, Inputs, Level 3 [Member], Private-label MBS, Available-for-sale Securities, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Fair Value, Inputs, Level 3 [Member] | Private-label MBS | Available-for-sale Securities | ' | ' | ' | |||
Reconciliation of Available-For-Sale Securities Measured at Fair Value | ' | ' | ' | |||
Balance, beginning of year | $2,676 | $2,942 | $3,319 | |||
Transfer of private-label MBS from held-to-maturity to available-for-sale | 11 | 6 | 451 | |||
Included in net impairment losses recognized in earnings | 0 | [1] | -16 | [1] | -111 | [1] |
Included in other comprehensive loss | 167 | [1],[2] | 357 | [1],[2] | 31 | [1],[2] |
Accretion of credit losses in net interest income | 10 | [1] | 4 | [1] | -11 | [1] |
Settlements | -565 | -617 | -737 | |||
Balance, end of year | $2,299 | $2,676 | $2,942 | |||
[1] | Related to available-for-sale securities held at year end. | |||||
[2] | This amount is included in other comprehensive income (loss) within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income. |
Estimated_Fair_Values_Details_1
Estimated Fair Values (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Assets: | ' | ' | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | $1,667 | $2,370 | ' | ' | ||
Available-for-sale securities | 2,299 | 2,676 | ' | ' | ||
Held-to-maturity securities | 20,146 | 17,124 | ' | ' | ||
Net positive credit exposure after cash collateral | 53 | 13 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | -24 | -40 | -286 | -529 | ||
Derivative liabilities | -187 | -158 | ' | ' | ||
change in estimated fair value of mortgage loans held for portfolio | ' | 19 | ' | ' | ||
Percentage change from previously reported value of change in estimate of estimated fair value of mortgage loans net | ' | 1.36% | ' | ' | ||
change in estimated fair value of advances | ' | 12 | ' | ' | ||
Percentage change from previously reported value of change in estimate of estimated fair value of advances | ' | 0.01% | ' | ' | ||
Change in estimated fair value of consolidated obligation bonds | ' | 79 | ' | ' | ||
Percentage change from previously reported value of change in estimate of estimated fair value of consolidated obligation bonds | ' | 0.09% | ' | ' | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 4,374 | 4,083 | ' | ' | ||
Interest bearing-deposits | 0 | 0 | ' | ' | ||
Securities purchased under agreements to resell | ' | 0 | ' | ' | ||
Federal funds sold | 0 | 0 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ' | ' | ||
Available-for-sale securities | 0 | 0 | ' | ' | ||
Held-to-maturity securities | 0 | 0 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 0 | 0 | ' | ' | ||
Advances (2) | 0 | 0 | ' | ' | ||
Accrued interest receivable | 0 | 0 | ' | ' | ||
Net positive credit exposure after cash collateral | 0 | 0 | ' | ' | ||
Grantor trust assets (included in Other assets) | 21 | 17 | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | 0 | 0 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | -24 | -40 | ' | ' | ||
Accrued interest payable | 0 | 0 | ' | ' | ||
Derivative liabilities | 0 | 0 | ' | ' | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 0 | 0 | ' | ' | ||
Interest bearing-deposits | 1,007 | 1,005 | ' | ' | ||
Securities purchased under agreements to resell | ' | 250 | ' | ' | ||
Federal funds sold | 1,795 | 7,235 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 | ' | ' | ||
Available-for-sale securities | 0 | 0 | ' | ' | ||
Held-to-maturity securities | 18,225 | 14,366 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 1,004 | 1,358 | [1] | ' | ' | |
Advances (2) | 89,413 | 87,933 | [2] | ' | ' | |
Accrued interest receivable | 199 | 240 | ' | ' | ||
Net positive credit exposure after cash collateral | 859 | 1,190 | ' | ' | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | -1,752 | -2,094 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | 0 | 0 | ' | ' | ||
Accrued interest payable | -183 | -229 | ' | ' | ||
Derivative liabilities | -2,674 | -4,208 | ' | ' | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 0 | 0 | ' | ' | ||
Interest bearing-deposits | 0 | 0 | ' | ' | ||
Securities purchased under agreements to resell | ' | 0 | ' | ' | ||
Federal funds sold | 0 | 0 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | 0 | ' | ' | ||
Available-for-sale securities | 2,299 | 2,676 | ' | ' | ||
Held-to-maturity securities | 1,921 | 2,758 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 0 | 0 | ' | ' | ||
Advances (2) | 0 | 0 | ' | ' | ||
Accrued interest receivable | 0 | 0 | ' | ' | ||
Net positive credit exposure after cash collateral | 0 | 0 | ' | ' | ||
Grantor trust assets (included in Other assets) | 0 | 0 | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | 0 | 0 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | 0 | 0 | ' | ' | ||
Accrued interest payable | 0 | 0 | ' | ' | ||
Derivative liabilities | 0 | 0 | ' | ' | ||
Total collateral and netting adjustment | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 0 | 0 | ' | ' | ||
Interest bearing-deposits | 0 | 0 | ' | ' | ||
Securities purchased under agreements to resell | ' | 0 | ' | ' | ||
Federal funds sold | 0 | 0 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 0 | [3] | 0 | [4] | ' | ' |
Available-for-sale securities | 0 | 0 | ' | ' | ||
Held-to-maturity securities | 0 | 0 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 0 | 0 | ' | ' | ||
Advances (2) | 0 | 0 | ' | ' | ||
Accrued interest receivable | 0 | 0 | ' | ' | ||
Net positive credit exposure after cash collateral | -806 | -1,177 | ' | ' | ||
Grantor trust assets (included in Other assets) | 0 | [3] | 0 | [4] | ' | ' |
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | 0 | 0 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | 0 | 0 | ' | ' | ||
Accrued interest payable | 0 | 0 | ' | ' | ||
Derivative liabilities | 2,487 | 4,050 | ' | ' | ||
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 4,374 | 4,083 | ' | ' | ||
Interest bearing-deposits | 1,007 | 1,005 | ' | ' | ||
Securities purchased under agreements to resell | ' | 250 | ' | ' | ||
Federal funds sold | 1,795 | 7,235 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 | ' | ' | ||
Available-for-sale securities | 2,299 | 2,676 | ' | ' | ||
Held-to-maturity securities | 20,176 | 16,918 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 918 | 1,244 | ' | ' | ||
Advances (2) | 89,588 | 87,503 | ' | ' | ||
Accrued interest receivable | 199 | 240 | ' | ' | ||
Net positive credit exposure after cash collateral | 53 | 13 | ' | ' | ||
Grantor trust assets (included in Other assets) | 21 | 17 | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | -1,752 | -2,094 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | -24 | -40 | ' | ' | ||
Accrued interest payable | -183 | -229 | ' | ' | ||
Derivative liabilities | -187 | -158 | ' | ' | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Cash and due from banks | 4,374 | 4,083 | ' | ' | ||
Interest bearing-deposits | 1,007 | 1,005 | ' | ' | ||
Securities purchased under agreements to resell | ' | 250 | ' | ' | ||
Federal funds sold | 1,795 | 7,235 | ' | ' | ||
Trading securities (includes another FHLBank’s bond of $65 and $77 as of December 31, 2013 and 2012, respectively) | 1,667 | 2,370 | ' | ' | ||
Available-for-sale securities | 2,299 | 2,676 | ' | ' | ||
Held-to-maturity securities | 20,146 | 17,124 | ' | ' | ||
Mortgage loans held for portfolio, net (1) | 1,004 | 1,358 | [1] | ' | ' | |
Advances (2) | 89,413 | 87,933 | [2] | ' | ' | |
Accrued interest receivable | 199 | 240 | ' | ' | ||
Net positive credit exposure after cash collateral | 53 | 13 | ' | ' | ||
Grantor trust assets (included in Other assets) | 21 | 17 | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||
Interest-bearing deposits | -1,752 | -2,094 | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Mandatorily redeemable capital stock | -24 | -40 | ' | ' | ||
Accrued interest payable | -183 | -229 | ' | ' | ||
Derivative liabilities | -187 | -158 | ' | ' | ||
Unsecured Debt [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | 0 | 0 | ' | ' | ||
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | -80,733 | -83,671 | [5] | ' | ' | |
Unsecured Debt [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | 0 | 0 | ' | ' | ||
Unsecured Debt [Member] | Total collateral and netting adjustment | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | 0 | 0 | ' | ' | ||
Unsecured Debt [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | -80,728 | -82,947 | ' | ' | ||
Unsecured Debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Bonds (3) | -80,733 | -83,671 | [5] | ' | ' | |
Discount Notes [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | 0 | 0 | ' | ' | ||
Discount Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | -32,203 | -31,739 | ' | ' | ||
Discount Notes [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | 0 | 0 | ' | ' | ||
Discount Notes [Member] | Total collateral and netting adjustment | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | 0 | 0 | ' | ' | ||
Discount Notes [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | -32,202 | -31,737 | ' | ' | ||
Discount Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ||
Consolidated obligations: | ' | ' | ' | ' | ||
Discount notes | ($32,203) | ($31,739) | ' | ' | ||
[1] | The estimated fair value of mortgage loans held for portfolio, net was adjusted by $19, which represents a change of 1.36 percent from the previously reported value. | |||||
[2] | The estimated fair value of advances was adjusted by $12, which represents a change of 0.01 percent from the previously reported value. | |||||
[3] | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||
[4] | Amounts represent the effect of legally enforceable master netting agreements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same counterparties. | |||||
[5] | The estimated fair value of consolidated obligation bonds was adjusted by $79, which represents a change of 0.09 percent from the previously reported value. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
bank | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Number of Federal Home Loan Banks | 12 | ' | ' |
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable | $654,076 | $574,257 | ' |
The value of guarantees related to standby letters of credit recorded in other liabilities | 137 | 74 | ' |
Other Commitment | 144 | 5 | ' |
Bank unconditional commitments on closed mortgage loans | 0 | 0 | ' |
Commitment to issue consolidated obligation bonds | 171 | 3,055 | ' |
Amount of consolidated obligation bonds to be issued that are hedged with interest rate swaps | 145 | 3,035 | ' |
Consolidated Obligation Discount Note Issuance Commitment Par Value | 467 | ' | ' |
Discount notes, hedged with associated interest rate swaps. | 0 | ' | ' |
Operating leases rent expense | $2 | $2 | $2 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Outstanding Standby Letters of Credit | ' | ' | ||
Number Of outstanding standby letters of credit | 14 | 5 | ||
Standby Letters of Credit | ' | ' | ||
Outstanding Standby Letters of Credit | ' | ' | ||
Outstanding notional | 27,789 | 17,687 | ||
Letter of credit final expiration year | '2030 | '2030 | ||
Minimum | Standby Letters of Credit | ' | ' | ||
Outstanding Standby Letters of Credit | ' | ' | ||
Original terms | '1 month | [1] | '4 months | [1] |
Maximum | Standby Letters of Credit | ' | ' | ||
Outstanding Standby Letters of Credit | ' | ' | ||
Original terms | '20 years | [1] | '20 years | [1] |
Standby Letters of Credit | ' | ' | ||
Outstanding Standby Letters of Credit | ' | ' | ||
Outstanding notional | 20 | 49 | ||
[1] | The Bank had 14 standby letters of credit for a total of $20 as of December 31, 2013, and five standby letters of credit for a total of $49 as of December 31, 2012, that have no stated maturity date and are subject to renewal on an annual basis. |
Transactions_With_Members_and_1
Transactions With Members and Their Affiliates and With Housing Associates (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Transactions with Members and their Affiliates and with Housing Associates (Textual) [Abstract] | ' | ' | ' |
Related parties, minimum stock percent owned | 10.00% | ' | ' |
Percent of capital stock held by Bank of America, National Association | 16.20% | ' | ' |
Total advances outstanding to Bank of America, National Association | $17,263 | $9,914 | ' |
Maximum deposits held in the name of Bank of America, National Association | 1 | 1 | ' |
Number of mortgage loans acquired | 0 | 0 | ' |
Litigation Settlement, Amount | 40 | ' | ' |
Gain on litigation settlements | 33 | 0 | 0 |
Litigation Settlement with Member, Net | $25 | ' | ' |
Transactions_with_Other_FHLBan2
Transactions with Other FHLBanks (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Other Transactions [Line Items] | ' | ' | ' |
Interest income on loans to other FHLBanks (less than $1 million) | $1 | $1 | $1 |
Interest expense on loans to other FHLBanks (less than $1 million) | 0 | 1 | 1 |
Loans made to other FHLBanks | -305 | -484 | -859 |
Principal collected on loans to other FHLBanks | 305 | 484 | 859 |
Net change in loans to other FHLBanks | 0 | 0 | 0 |
Proceeds from short-term borrowings from other FHLBanks | 2,270 | 446 | 3,066 |
Payments of short-term borrowings from other FHLBanks | -2,270 | -446 | -3,066 |
Net change in borrowings from other FHLBanks | 0 | 0 | 0 |
Standby Letter of Credit Participation Agreement, Amount | 150 | ' | ' |
Participation agreement fees (less than $1 million) | 1 | ' | ' |
FHLBank of Chicago [Member] | ' | ' | ' |
Schedule of Other Transactions [Line Items] | ' | ' | ' |
Interest income on consolidated obligation bonds | 9 | 10 | 8 |
Loan portfolio expense | 1 | 1 | 1 |
FHLBank of Pittsburgh [Member] | ' | ' | ' |
Schedule of Other Transactions [Line Items] | ' | ' | ' |
Participation interests purchased from other banks | $2 | ' | ' |