10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 000-52004

FEDERAL HOME LOAN BANK OF TOPEKA

(Exact name of registrant as specified in its charter)

Federally chartered corporation of the United States	48-0561319
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
500 SW Wanamaker Road Topeka, KS	66606
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 785.233.0507

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒  Yes  ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  ☐ Yes  ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	Shares outstanding as of
	July 31, 2024
Class A Stock, par value $100 per share	3,660,314
Class B Stock, par value $100 per share	22,576,099

.FEDERAL HOME LOAN BANK OF TOPEKA

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION	5
Item 1.	Financial Statements	5
	Statements of Condition	6
	Statements of Income	8
	Statements of Comprehensive Income	10
	Statements of Capital	12
	Statements of Cash Flows	13
	Notes to Financial Statements	15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
	Executive Level Overview	46
	Financial Market Trends	47
	Critical Accounting Policies and Estimates	48
	Results of Operations	49
	Financial Condition	59
	Liquidity and Capital Resources	74
	Risk Management	76
	Recently Issued Accounting Standards	76
	Legislative and Regulatory Developments	77
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	77
Item 4.	Controls and Procedures	82
Part II	OTHER INFORMATION	82
Item 1.	Legal Proceedings	82
Item 1A.	Risk Factors	82
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	82
Item 3.	Defaults Upon Senior Securities	82
Item 4.	Mine Safety Disclosures	82
Item 5.	Other Information	82
Item 6.	Exhibits	83

2

Important Notice about Information in this Quarterly Report

In this quarterly report, unless the context suggests otherwise, references to “FHLBank,” “FHLBank Topeka,” “we,” “us” and “our” mean Federal Home Loan Bank of Topeka, and “FHLBanks” mean all Federal Home Loan Banks, including FHLBank Topeka.

The information contained in this quarterly report is accurate only as of the date of this quarterly report and as of the dates specified herein.

The product and service names used in this quarterly report are the property of FHLBank, and in some cases, other FHLBanks. Where the context suggests otherwise, the products, services and company names mentioned in this quarterly report are the property of their respective owners.

Special Cautionary Notice Regarding Forward-looking Statements

The information in this Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements describing the objectives, projections, estimates or future predictions of FHLBank’s operations. These statements may be identified by the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “is likely,” “could,” “estimate,” “expect,” “will,” “intend,” “probable,” “project,” “should,” or their negatives or other variations of these terms. FHLBank cautions that by their nature forward-looking statements involve risks or uncertainties and that actual results may differ materially from those expressed in any forward-looking statements as a result of such risks and uncertainties, including but not limited to:

•Changes in the general economy and capital markets, the rate of inflation, employment rates, housing market activity and pricing, the size and volatility of the residential mortgage market, geopolitical events, and global economic uncertainty;

•Political events, including legislative, regulatory, judicial, or other developments that affect FHLBank; its members, counterparties or investors in the consolidated obligations of the FHLBanks, such as any government-sponsored enterprise (GSE) reforms, any changes resulting from the Federal Housing Finance Agency’s (FHFA) review and analysis of the FHLBank System, including recommendations published in its “FHLBank System at 100: Focusing on the Future” report, changes in the Federal Home Loan Bank Act of 1932, as amended (Bank Act), changes in applicable sections of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, or changes in other statutes or regulations applicable to the FHLBanks;

•External events, such as economic, financial, or political disruptions, and/or wars, pandemics, and natural disasters, including disasters caused by climate change, which could damage our facilities or the facilities of our members, damage or destroy collateral pledged to secure advances, or mortgage-related assets, which could increase our risk exposure or loss experience;

•Effects of derivative accounting treatment and other accounting rule requirements, or changes in such requirements;

•Competitive forces, including competition for loan demand, purchases of mortgage loans and access to funding;

•The ability of FHLBank to introduce new products and services to meet market demand and to manage successfully the risks associated with all products and services;

•Changes in demand for FHLBank products and services or consolidated obligations of the FHLBank System;

•Membership changes, including changes resulting from member creditworthiness, member failures or mergers, changes due to member eligibility or housing mission focus, or changes in the principal place of business of members;

•Changes in the U.S. government’s long-term debt rating and the long-term credit rating of the senior unsecured debt issues of the FHLBank System;

•Soundness of other financial institutions, including FHLBank members, non-member borrowers, counterparties, and the other FHLBanks and their members, non-member borrowers, and counterparties;

•The ability of each of the other FHLBanks to repay the principal and interest on consolidated obligations for which it is the primary obligor and with respect to which FHLBank, along with the other FHLBanks, has joint and several liability;

•The volume and quality of eligible mortgage loans originated and sold by participating members to FHLBank through its various mortgage finance products (Mortgage Partnership Finance® (MPF®) Program). “Mortgage Partnership Finance,” “MPF,” “MPF Xtra,” and “MPF Direct” are registered trademarks of FHLBank Chicago;

•Changes in the fair value and economic value of, impairments of, and risks associated with, FHLBank’s investments in mortgage loans and mortgage-backed securities (MBS) or other assets and related credit enhancement protections;

•Changes in the value or liquidity of collateral underlying advances to FHLBank members or non-member borrowers or collateral pledged by reverse repurchase and derivative counterparties;

•Volatility of market prices, changes in interest rates and indices and the timing and volume of market activity, including the effects of these factors on amortization/accretion;

•Gains/losses on derivatives or on trading investments and the ability to enter into effective derivative instruments on acceptable terms;

•Changes in FHLBank’s capital structure;

•FHLBank's ability to declare dividends or to pay dividends at rates consistent with past practices;

4

•The ability of FHLBank to keep pace with technological changes and innovation such as artificial intelligence, and the ability to develop and support technology and information systems, including the ability to manage cybersecurity risks and securely access the internet and internet-based systems and services, sufficient to effectively manage the risks of FHLBank’s business; and

•The ability of FHLBank to attract, onboard and retain skilled individuals, including qualified executive officers.

Readers of this quarterly report should not rely solely on the forward-looking statements and should consider all risks and uncertainties addressed throughout this quarterly report, as well as those discussed under Item 1A – “Risk Factors.”

All forward-looking statements contained in this Form 10-Q are expressly qualified in their entirety by reference to this cautionary notice. The reader should not place undue reliance on such forward-looking statements, since the statements speak only as of the date that they are made and FHLBank has no obligation and does not undertake publicly to update, revise or correct any forward-looking statement for any reason to reflect events or circumstances after the date of this quarterly report.

PART I

Item 1: Financial Statements

5

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CONDITION - Unaudited
(In thousands, except par value)
	06/30/2024		12/31/2023
ASSETS
Cash and due from banks	$	26,550	$	26,062
Interest-bearing deposits	2,339,648		1,604,989
Securities purchased under agreements to resell (Note 9)	2,925,000		3,875,000
Federal funds sold	5,292,000		2,080,000
Investment securities:
Trading securities (Note 3)	843,742		908,608
Available-for-sale securities, amortized cost of $12,580,840 and $11,872,397 (Note 3)	12,466,957		11,753,453
Held-to-maturity securities, fair value of $244,428 and $260,653 (Note 3)	247,993		264,796
Total investment securities	13,558,692		12,926,857
Advances (Note 4)	46,219,747		45,444,769
Mortgage loans held for portfolio, net of allowance for credit losses of $4,315 and $5,531 (Note 5)	8,719,897		8,352,713
Accrued interest receivable	275,977		204,243
Derivative assets, net (Notes 6, 9)	316,530		350,367
Other assets	80,996		81,985
TOTAL ASSETS	$	79,755,037	$	74,946,985
LIABILITIES
Deposits (Note 7)	$	817,072	$	752,200
Consolidated obligations, net:
Discount notes (Note 8)	18,209,813		20,743,249
Bonds (Note 8)	56,059,156		49,047,489
Total consolidated obligations, net	74,268,969		69,790,738
Mandatorily redeemable capital stock (Note 10)	3,442		247
Accrued interest payable	380,927		361,840
Affordable Housing Program payable	89,134		77,794
Derivative liabilities, net (Notes 6, 9)	951		860
Other liabilities	59,833		72,654
TOTAL LIABILITIES	75,620,328		71,056,333
Commitments and contingencies (Note 13)

The accompanying notes are an integral part of these financial statements.

6

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CONDITION - Unaudited
(In thousands, except par value)
	06/30/2024		12/31/2023
CAPITAL
Capital stock outstanding - putable:
Class A ($100 par value; 3,186 and 2,789 shares issued and outstanding) (Note 10)	$	318,601	$	278,887
Class B ($100 par value; 24,174 and 23,288 shares issued and outstanding) (Note 10)	2,417,398		2,328,796
Total capital stock	2,735,999		2,607,683
Retained earnings:
Unrestricted	1,055,506		989,457
Restricted	456,945		412,483
Total retained earnings	1,512,451		1,401,940
Accumulated other comprehensive income (loss) (Note 11)	(113,741)		(118,971)
TOTAL CAPITAL	4,134,709		3,890,652
TOTAL LIABILITIES AND CAPITAL	$	79,755,037	$	74,946,985

The accompanying notes are an integral part of these financial statements.

7

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF INCOME - Unaudited
(In thousands)
	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
INTEREST INCOME:
Interest-bearing deposits	$	38,243	$	36,687	$	74,244	$	67,384
Securities purchased under agreements to resell	40,123		32,356		80,366		62,638
Federal funds sold	56,945		52,930		111,068		100,286
Trading securities	6,392		9,620		12,910		19,980
Available-for-sale securities	193,900		144,744		383,959		261,580
Held-to-maturity securities	3,598		4,168		7,306		8,274
Advances	634,504		613,730		1,226,491		1,150,324
Mortgage loans held for portfolio	78,337		62,836		152,813		123,644
Other	179		191		356		951
Total interest income	1,052,221		957,262		2,049,513		1,795,061
INTEREST EXPENSE:
Deposits	10,146		7,180		19,876		14,749
Consolidated obligations:
Discount notes	233,774		288,183		461,315		551,704
Bonds	669,999		539,939		1,293,539		1,001,821
Mandatorily redeemable capital stock	52		5		55		8
Other	292		288		629		709
Total interest expense	914,263		835,595		1,775,414		1,568,991
NET INTEREST INCOME	137,958		121,667		274,099		226,070
Provision (reversal) for credit losses on mortgage loans	(863)		746		(1,063)		344
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL)	138,821		120,921		275,162		225,726
OTHER INCOME (LOSS):
Net gains (losses) on trading securities	3,938		(4,601)		5,729		4,383
Net gains (losses) on derivatives	1,678		20,294		10,206		19,769
Standby bond purchase agreement commitment fees	737		689		1,488		1,370
Letters of credit fees	2,294		2,034		4,661		3,944
Other	614		609		1,093		1,172
Total other income (loss)	9,261		19,025		23,177		30,638

The accompanying notes are an integral part of these financial statements.

8

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF INCOME - Unaudited
(In thousands)
	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
OTHER EXPENSES:
Compensation and benefits	$	12,535	$	11,769	$	24,855	$	23,476
Other operating	7,015		5,594		13,528		11,273
Federal Housing Finance Agency	1,370		1,531		2,739		3,062
Office of Finance	1,243		963		2,371		2,059
Mortgage loans transaction service fees	1,712		1,586		3,379		3,150
Voluntary housing and community investment program contributions	3,919		—		3,919		—
Other	101		503		527		1,071
Total other expenses	27,895		21,946		51,318		44,091
INCOME BEFORE ASSESSMENTS	120,187		118,000		247,021		212,273
Affordable Housing Program	12,024		11,800		24,708		21,228
NET INCOME	$	108,163	$	106,200	$	222,313	$	191,045

The accompanying notes are an integral part of these financial statements.

9

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF COMPREHENSIVE INCOME - Unaudited
(In thousands)
	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Net income	$	108,163	$	106,200	$	222,313	$	191,045
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	(19,131)		(1,446)		5,061		441
Defined benefit pension plan	169		—		169		—
Total other comprehensive income (loss)	(18,962)		(1,446)		5,230		441
TOTAL COMPREHENSIVE INCOME (LOSS)	$	89,201	$	104,754	$	227,543	$	191,486

The accompanying notes are an integral part of these financial statements.

10

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CAPITAL - Unaudited
(In thousands)
	Capital Stock1									Retained Earnings						Accumulated		Total Capital
																Other
	Class A			Class B			Total									Comprehensive
	Shares	Par Value		Shares	Par Value		Shares	Par Value		Unrestricted		Restricted		Total		Income (Loss)
Balance at March 31, 2023	2,924	$	292,424	23,697	$	2,369,665	26,621	$	2,662,089	$	930,383	$	355,358	$	1,285,741	$	(82,383)	$	3,865,447
Comprehensive income										84,960		21,240		106,200		(1,446)		104,754
Proceeds from issuance of capital stock	20	1,987		6,384	638,376		6,404	640,363										640,363
Repurchase/redemption of capital stock	(3,674)	(367,414)		(644)	(64,341)		(4,318)	(431,755)										(431,755)
Net reclassification of shares to mandatorily redeemable capital stock	(2,246)	(224,688)		(577)	(57,572)		(2,823)	(282,260)										(282,260)
Net transfer of shares between Class A and Class B	6,498	649,860		(6,498)	(649,860)		—	—										—
Dividends on capital stock (Class A - 4.0%, Class B - 9.0%):
Cash payment										(63)				(63)				(63)
Stock issued				558	55,812		558	55,812		(55,812)				(55,812)				—
Balance at June 30, 2023	3,522	$	352,169	22,920	$	2,292,080	26,442	$	2,644,249	$	959,468	$	376,598	$	1,336,066	$	(83,829)	$	3,896,486
	Capital Stock1									Retained Earnings						Accumulated		Total Capital
																Other
	Class A			Class B			Total									Comprehensive
	Shares	Par Value		Shares	Par Value		Shares	Par Value		Unrestricted		Restricted		Total		Income (Loss)
Balance at March 31, 2024	3,447	$	344,697	21,530	$	2,153,012	24,977	$	2,497,709	$	1,026,464	$	435,313	$	1,461,777	$	(94,779)	$	3,864,707
Comprehensive income										86,531		21,632		108,163		(18,962)		89,201
Proceeds from issuance of capital stock	2	184		5,119	511,848		5,121	512,032										512,032
Repurchase/redemption of capital stock	(2,090)	(209,050)		(442)	(44,154)		(2,532)	(253,204)										(253,204)
Net reclassification of shares to mandatorily redeemable capital stock	(710)	(70,955)		(70)	(6,994)		(780)	(77,949)										(77,949)
Net transfer of shares between Class A and Class B	2,537	253,725		(2,537)	(253,725)		—	—										—
Dividends on capital stock (Class A - 4.8%, Class B - 9.5%):
Cash payment										(78)				(78)				(78)
Stock issued				574	57,411		574	57,411		(57,411)				(57,411)				—
Balance at June 30, 2024	3,186	$	318,601	24,174	$	2,417,398	27,360	$	2,735,999	$	1,055,506	$	456,945	$	1,512,451	$	(113,741)	$	4,134,709

1    Putable

The accompanying notes are an integral part of these financial statements.

11

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CAPITAL - Unaudited
(In thousands)
	Capital Stock1									Retained Earnings						Accumulated		Total Capital
																Other
	Class A			Class B			Total									Comprehensive
	Shares	Par Value		Shares	Par Value		Shares	Par Value		Unrestricted		Restricted		Total		Income (Loss)
Balance at December 31, 2022	2,388	$	238,777	22,689	$	2,268,932	25,077	$	2,507,709	$	914,716	$	338,389	$	1,253,105	$	(84,270)	$	3,676,544
Comprehensive income										152,836		38,209		191,045		441		191,486
Proceeds from issuance of capital stock	20	1,987		16,614	1,661,386		16,634	1,663,373										1,663,373
Repurchase/redemption of capital stock	(10,122)	(1,012,265)		(1,291)	(129,024)		(11,413)	(1,141,289)										(1,141,289)
Net reclassification of shares to mandatorily redeemable capital stock	(3,025)	(302,540)		(1,911)	(190,957)		(4,936)	(493,497)										(493,497)
Net transfer of shares between Class A and Class B	14,261	1,426,210		(14,261)	(1,426,210)		—	—										—
Dividends on capital stock (Class A - 3.9%, Class B - 8.9%):
Cash payment										(131)				(131)				(131)
Stock issued				1,080	107,953		1,080	107,953		(107,953)				(107,953)				—
Balance at June 30, 2023	3,522	$	352,169	22,920	$	2,292,080	26,442	$	2,644,249	$	959,468	$	376,598	$	1,336,066	$	(83,829)	$	3,896,486
	Capital Stock1									Retained Earnings						Accumulated		Total Capital
																Other
	Class A			Class B			Total									Comprehensive
	Shares	Par Value		Shares	Par Value		Shares	Par Value		Unrestricted		Restricted		Total		Income (Loss)
Balance at December 31, 2023	2,789	$	278,887	23,288	$	2,328,796	26,077	$	2,607,683	$	989,457	$	412,483	$	1,401,940	$	(118,971)	$	3,890,652
Comprehensive income										177,851		44,462		222,313		5,230		227,543
Proceeds from issuance of capital stock	4	374		10,267	1,026,667		10,271	1,027,041										1,027,041
Repurchase/redemption of capital stock	(7,051)	(705,102)		(728)	(72,825)		(7,779)	(777,927)										(777,927)
Net reclassification of shares to mandatorily redeemable capital stock	(2,235)	(223,433)		(90)	(9,009)		(2,325)	(232,442)										(232,442)
Net transfer of shares between Class A and Class B	9,679	967,875		(9,679)	(967,875)		—	—										—
Dividends on capital stock (Class A - 4.7%, Class B - 9.5%):
Cash payment										(158)				(158)				(158)
Stock issued				1,116	111,644		1,116	111,644		(111,644)				(111,644)				—
Balance at June 30, 2024	3,186	$	318,601	24,174	$	2,417,398	27,360	$	2,735,999	$	1,055,506	$	456,945	$	1,512,451	$	(113,741)	$	4,134,709

1    Putable

The accompanying notes are an integral part of these financial statements.

12

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CASH FLOWS - Unaudited
(In thousands)
	Six Months Ended
	06/30/2024		06/30/2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	222,313	$	191,045
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization:
Premiums and discounts on consolidated obligations, net	(95,070)		90,352
Concessions on consolidated obligations	3,281		2,982
Premiums and discounts on investments, net	(21,769)		(11,299)
Premiums, discounts and commitment fees on advances, net	(1,355)		(1,515)
Premiums, discounts and deferred loan costs on mortgage loans, net	6,170		6,402
Fair value adjustments on hedged assets or liabilities	(2,169)		(878)
Premises, software and equipment	1,715		1,470
Provision (reversal) for credit losses on mortgage loans	(1,063)		344
Other adjustments, net	163		28
Net (gains) losses on trading securities	(5,729)		(4,383)
Net change in derivatives and hedging activities	139,589		86,051
(Increase) decrease in accrued interest receivable	(70,951)		(668)
Change in net accrued interest included in derivative assets	(27,554)		(50,118)
(Increase) decrease in other assets	12		(250)
Increase (decrease) in accrued interest payable	18,888		147,395
Change in net accrued interest included in derivative liabilities	17,820		(3,473)
Increase (decrease) in Affordable Housing Program liability	11,340		15,166
Increase (decrease) in other liabilities	(12,684)		(5,309)
Total adjustments	(39,366)		272,297
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	182,947		463,342
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in interest-bearing deposits	(667,257)		(54,177)
Net (increase) decrease in securities purchased under resale agreements	950,000		350,000
Net (increase) decrease in Federal funds sold	(3,212,000)		(650,000)
Proceeds from maturities of and principal repayments on trading securities	70,595		362,322
Proceeds from maturities of and principal repayments on available-for-sale securities	469,988		987,677
Purchases of available-for-sale securities	(1,231,147)		(1,978,587)

The accompanying notes are an integral part of these financial statements.

13

FEDERAL HOME LOAN BANK OF TOPEKA
STATEMENTS OF CASH FLOWS - Unaudited
(In thousands)
	Six Months Ended
	06/30/2024		06/30/2023
Proceeds from maturities of and principal repayments on held-to-maturity securities	16,793		60,106
Advances repaid	141,008,993		420,013,035
Advances originated	(141,882,373)		(419,767,039)
Principal collected on mortgage loans	388,840		356,663
Purchases of mortgage loans	(761,033)		(523,336)
Net proceeds from sale of foreclosed assets	230		148
Purchases of premises, software and equipment	(1,078)		(2,933)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(4,849,449)		(846,121)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits	97,859		(180,628)
Net proceeds from issuance of consolidated obligations:
Discount notes	276,214,528		207,990,326
Bonds	35,851,865		29,982,709
Payments for maturing, retired and transferred consolidated obligations:
Discount notes	(278,654,498)		(211,986,290)
Bonds	(28,875,030)		(24,463,213)
Bonds transferred to other FHLBanks	—		(999,987)
Net interest payments received (paid) for financing derivatives	12,609		10,656
Proceeds from issuance of capital stock	1,027,041		1,663,373
Payments for repurchase/redemption of capital stock	(777,927)		(1,141,289)
Payments for repurchase of mandatorily redeemable capital stock	(229,299)		(493,521)
Cash dividends paid	(158)		(131)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	4,666,990		382,005
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	488		(774)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	26,062		25,964
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	26,550	$	25,190
Supplemental disclosures:
Interest paid	$	764,281	$	506,095
Affordable Housing Program payments	$	13,779	$	6,111
Net transfers of mortgage loans to other assets	$	92	$	707

The accompanying notes are an integral part of these financial statements.

14

FEDERAL HOME LOAN BANK OF TOPEKA

Notes to Financial Statements - Unaudited

June 30, 2024

NOTE 1 – BASIS OF PRESENTATION

Basis of Presentation: The accompanying interim financial statements of FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of FHLBank’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period.

FHLBank’s significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2023. The interim financial statements presented herein should be read in conjunction with FHLBank’s audited financial statements and notes thereto, which are included in FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 11, 2024 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K.

Use of Estimates: The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates.

NOTE 2 – RECENTLY ISSUED ACCOUNTING STANDARDS AND INTERPRETATIONS AND CHANGES IN AND ADOPTIONS OF ACCOUNTING PRINCIPLES

Segment Reporting (ASU 2023-07). In July 2023, the FASB issued amendments to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocations of capital for additional, more detailed information about a reportable segment’s expenses, including entities with a single reportable segment. The ASU is effective for FHLBank for the annual period ending December 31, 2024 and will be effective for interim periods beginning January 1, 2025. The adoption of this guidance is not expected to have a material effect on FHLBank’s disclosures.

NOTE 3 – INVESTMENTS

FHLBank's investment portfolio consists of interest-bearing deposits, securities purchased under agreements to resell, Federal funds sold, and debt securities.

Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a Nationally Recognized Statistical Rating Organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of June 30, 2024, approximately 25 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of June 30, 2024 and December 31, 2023, all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of June 30, 2024 and December 31, 2023. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $3,689,000 and $2,353,000, respectively, as of June 30, 2024, and $3,271,000 and $927,000, respectively, as of December 31, 2023.

15

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). Based upon the collateral held as security and collateral maintenance provisions with its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of June 30, 2024 and December 31, 2023. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $1,324,000 and $1,749,000 as of June 30, 2024 and December 31, 2023, respectively.

Debt Securities: FHLBank invests in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. FHLBank is prohibited by FHFA regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities, but FHLBank is not required to divest instruments that experience credit deterioration after their purchase.

FHLBank's debt securities include the following major security types, which are based on the issuer and the risk characteristics of the security:

▪U.S. Treasury obligations - sovereign debt of the United States;

▪GSE debentures - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government;

▪State or local housing agency obligations - municipal bonds issued by housing finance agencies;

▪U.S. obligation MBS - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and

▪GSE MBS - single-family and multifamily MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac).

Trading Securities: Trading securities by major security type as of June 30, 2024 and December 31, 2023 are summarized in Table 3.1 (in thousands):

Table 3.1

	Fair Value
	06/30/2024		12/31/2023
Non-mortgage-backed securities:
GSE debentures	$	241,444	$	288,438
Non-mortgage-backed securities	241,444		288,438
Mortgage-backed securities:
GSE MBS	602,298		620,170
Mortgage-backed securities	602,298		620,170
TOTAL	$	843,742	$	908,608

Net gains (losses) on trading securities during the three and six months ended June 30, 2024 and 2023 are shown in Table 3.2 (in thousands):

Table 3.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Net gains (losses) on trading securities held as of June 30, 2024	$	3,691	$	(6,039)	$	5,116	$	388
Net gains (losses) on trading securities sold or matured prior to June 30, 2024	247		1,438		613		3,995
NET GAINS (LOSSES) ON TRADING SECURITIES	$	3,938	$	(4,601)	$	5,729	$	4,383

16

Available-for-sale Securities: Available-for-sale securities by major security type as of June 30, 2024 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $34,648,000 as of June 30, 2024.

Table 3.3

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	3,233,566	$	—	$	(59,986)	$	3,173,580
Non-mortgage-backed securities	3,233,566		—		(59,986)		3,173,580
Mortgage-backed securities:
U.S. obligation MBS	90,164		—		(1,317)		88,847
GSE MBS	9,257,110		39,266		(91,846)		9,204,530
Mortgage-backed securities	9,347,274		39,266		(93,163)		9,293,377
TOTAL	$	12,580,840	$	39,266	$	(153,149)	$	12,466,957

Available-for-sale securities by major security type as of December 31, 2023 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $29,768,000 as of December 31, 2023.

Table 3.4

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	2,983,880	$	—	$	(46,012)	$	2,937,868
Non-mortgage-backed securities	2,983,880		—		(46,012)		2,937,868
Mortgage-backed securities:
U.S. obligation MBS	109,083		—		(1,548)		107,535
GSE MBS	8,779,434		32,178		(103,562)		8,708,050
Mortgage-backed securities	8,888,517		32,178		(105,110)		8,815,585
TOTAL	$	11,872,397	$	32,178	$	(151,122)	$	11,753,453

17

Table 3.5 summarizes the available-for-sale securities with gross unrealized losses as of June 30, 2024 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.5

	06/30/2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	461,246	$	(4,624)	$	2,712,334	$	(55,362)	$	3,173,580	$	(59,986)
Non-mortgage-backed securities	461,246		(4,624)		2,712,334		(55,362)		3,173,580		(59,986)
Mortgage-backed securities:
U.S. obligation MBS	—		—		88,846		(1,317)		88,846		(1,317)
GSE MBS	1,637,287		(5,271)		3,976,284		(86,575)		5,613,571		(91,846)
Mortgage-backed securities	1,637,287		(5,271)		4,065,130		(87,892)		5,702,417		(93,163)
TOTAL	$	2,098,533	$	(9,895)	$	6,777,464	$	(143,254)	$	8,875,997	$	(153,149)

Table 3.6 summarizes the available-for-sale securities with gross unrealized losses as of December 31, 2023 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.6

	12/31/2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	1,280,546	$	(10,036)	$	1,657,322	$	(35,976)	$	2,937,868	$	(46,012)
Non-mortgage-backed securities	1,280,546		(10,036)		1,657,322		(35,976)		2,937,868		(46,012)
Mortgage-backed securities:
U.S. obligation MBS	71,883		(366)		35,652		(1,182)		107,535		(1,548)
GSE MBS	2,863,223		(23,525)		3,164,674		(80,037)		6,027,897		(103,562)
Mortgage-backed securities	2,935,106		(23,891)		3,200,326		(81,219)		6,135,432		(105,110)
TOTAL	$	4,215,652	$	(33,927)	$	4,857,648	$	(117,195)	$	9,073,300	$	(151,122)

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The amortized cost and fair values of available-for-sale securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.7

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	3,233,566		3,173,580		2,983,880		2,937,868
Due after five years through ten years	—		—		—		—
Due after ten years	—		—		—		—
Non-mortgage-backed securities	3,233,566		3,173,580		2,983,880		2,937,868
Mortgage-backed securities	9,347,274		9,293,377		8,888,517		8,815,585
TOTAL	$	12,580,840	$	12,466,957	$	11,872,397	$	11,753,453

Held-to-maturity Securities: Held-to-maturity securities by major security type as of June 30, 2024 are summarized in Table 3.8 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $567,000 as of June 30, 2024.

Table 3.8

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	34,790	$	—	$	(561)	$	34,229
Non-mortgage-backed securities	34,790		—		(561)		34,229
Mortgage-backed securities:
GSE MBS	213,203		174		(3,178)		210,199
Mortgage-backed securities	213,203		174		(3,178)		210,199
TOTAL	$	247,993	$	174	$	(3,739)	$	244,428

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Held-to-maturity securities by major security type as of December 31, 2023 are summarized in Table 3.9 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $612,000 as of December 31, 2023.

Table 3.9

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	35,855	$	—	$	(646)	$	35,209
Non-mortgage-backed securities	35,855		—		(646)		35,209
Mortgage-backed securities:
GSE MBS	228,941		188		(3,685)		225,444
Mortgage-backed securities	228,941		188		(3,685)		225,444
TOTAL	$	264,796	$	188	$	(4,331)	$	260,653

The amortized cost and fair values of held-to-maturity securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.10 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.10

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	—		—		—		—
Due after five years through ten years	34,790		34,229		35,855		35,209
Due after ten years	—		—		—		—
Non-mortgage-backed securities	34,790		34,229		35,855		35,209
Mortgage-backed securities	213,203		210,199		228,941		225,444
TOTAL	$	247,993	$	244,428	$	264,796	$	260,653

Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. As of June 30, 2024 and 2023, FHLBank did not recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments.

Although certain available-for-sale securities were in an unrealized loss position, these losses are considered temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis.

FHLBank's held-to-maturity and available-for-sale securities: (1) were all highly rated and/or had short remaining terms to maturity; (2) had not experienced, nor did FHLBank expect, any payment default on the instruments; (3) in the case of U.S. obligations, carry an explicit government guarantee such that FHLBank considers the risk of nonpayment to be zero; and (4) in the case of GSE debentures or MBS, the securities are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

20

NOTE 4 – ADVANCES

General Terms: FHLBank offers fixed and variable rate advance products with different maturities, interest rates, payment characteristics and optionality. As of June 30, 2024 and December 31, 2023, FHLBank had advances outstanding at interest rates ranging from 0.43 percent to 7.20 percent and 0.42 percent to 7.20 percent, respectively. Table 4.1 presents advances summarized by redemption term as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). The redemption term represents the period in which principal amounts are contractually due. Carrying amounts exclude accrued interest receivable of $180,274,000 and $118,604,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 4.1

	06/30/2024				12/31/2023
Redemption Term	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	30,020,868	5.31	%	$	29,786,238	5.32	%
Due after one year through two years	4,534,314		4.14		4,213,704		4.01
Due after two years through three years	4,279,823		4.29		3,882,479		4.22
Due after three years through four years	3,662,221		4.41		3,086,881		4.04
Due after four years through five years	2,225,050		4.07		2,837,481		4.03
Thereafter	1,821,405		3.21		1,863,519		3.04
Total par value	46,543,681		4.89	%	45,670,302		4.85	%
Discounts	(8,920)				(10,276)
Hedging adjustments	(315,014)				(215,257)
TOTAL	$	46,219,747			$	45,444,769

FHLBank offers advances that may be prepaid without prepayment or termination fees on predetermined exercise dates (call dates) prior to the stated advance maturity (callable advances). In exchange for receiving the right to call the advance on a predetermined call schedule, the borrower may pay a higher rate for the advance relative to an equivalent maturity, non-callable advance. The borrower generally exercises its call options on these advances when interest rates decline (fixed rate advances) or spreads change (adjustable rate advances). FHLBank also offers fixed rate advances that include a put option held by FHLBank (putable advances). On the date FHLBank exercises its put option, the borrower has the option to prepay the advance in full without a fee or roll into another advance product. A putable advance carries a lower interest rate than a comparable-maturity fixed rate advance without the put feature. FHLBank would generally exercise its put option when interest rates increase. Other advances are prepayable with a prepayment fee that makes FHLBank economically indifferent to the prepayment.

Convertible advances allow FHLBank to convert an advance from one interest payment term structure to another. When issuing convertible advances, FHLBank purchases put options from a member that allow FHLBank to convert the fixed rate advance to a variable rate advance at the current market rate or another structure after an agreed-upon lockout period. A convertible advance carries a lower interest rate than a comparable-maturity fixed rate advance without the conversion feature. Convertible advances are no longer a current product offering; however, $105,900,000 remains outstanding at June 30, 2024.

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Table 4.2 presents advances summarized by redemption term or next call date and by redemption term or next put or conversion date as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.2

	Redemption Term or Next Call Date				Redemption Term or Next Put or Conversion Date
Redemption Term	06/30/2024		12/31/2023		06/30/2024		12/31/2023
Due in one year or less	$	30,995,431	$	31,038,961	$	32,190,718	$	31,299,438
Due after one year through two years	4,507,500		3,920,260		4,450,064		4,552,204
Due after two years through three years	3,871,314		3,562,900		4,424,323		3,954,979
Due after three years through four years	3,274,786		2,678,103		3,113,721		2,750,881
Due after four years through five years	2,172,244		2,715,262		1,478,050		1,600,481
Thereafter	1,722,406		1,754,816		886,805		1,512,319
TOTAL PAR VALUE	$	46,543,681	$	45,670,302	$	46,543,681	$	45,670,302

Interest Rate Payment Terms: Table 4.3 details additional interest rate payment and redemption terms for advances as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.3

Redemption Term	06/30/2024		12/31/2023
Fixed rate:
Due in one year or less	$	18,020,968	$	26,714,638
Due after one year through three years	6,399,722		6,034,768
Due after three years through five years	4,883,976		5,072,017
Due after five years through fifteen years	1,732,546		1,762,808
Due after fifteen years	27,284		28,659
Total fixed rate	31,064,496		39,612,890
Variable rate:
Due in one year or less	11,999,900		3,071,600
Due after one year through three years	2,414,415		2,061,415
Due after three years through five years	1,003,295		852,345
Due after five years through fifteen years	59,075		69,552
Due after fifteen years	2,500		2,500
Total variable rate	15,479,185		6,057,412
TOTAL PAR VALUE	$	46,543,681	$	45,670,302

Credit Risk Exposure and Security Terms: FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the types and level of collateral to be the primary indicator of credit quality on advances. As of June 30, 2024 and December 31, 2023, FHLBank had rights to collateral on a borrower-by-borrower basis with an estimated value greater than its outstanding advances.

FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. As of June 30, 2024 and December 31, 2023, no advances were past due, on nonaccrual status, or considered impaired.

Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no losses are expected on advances as of June 30, 2024 and December 31, 2023, and therefore no allowance for credit losses on advances was recorded.

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NOTE 5 – MORTGAGE LOANS

Mortgage loans held for portfolio consist of loans obtained through the MPF Program and are either conventional mortgage loans or government-guaranteed or -insured mortgage loans. Under the MPF Program, FHLBank purchases single-family mortgage loans that are originated or acquired by participating financial institutions (PFIs). These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies.

Mortgage Loans Held for Portfolio: Table 5.1 presents information as of June 30, 2024 and December 31, 2023 on mortgage loans held for portfolio (in thousands). Carrying amounts exclude accrued interest receivable of $49,332,000 and $45,669,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 5.1

	06/30/2024		12/31/2023
Real estate:
Fixed rate, medium-term1, single-family mortgages	$	988,507	$	1,055,326
Fixed rate, long-term, single-family mortgages	7,660,125		7,227,825
Total unpaid principal balance	8,648,632		8,283,151
Premiums	95,453		94,485
Discounts	(6,253)		(5,591)
Deferred loan costs, net	36		39
Hedging adjustments	(13,656)		(13,840)
Total before allowance for credit losses on mortgage loans	8,724,212		8,358,244
Allowance for credit losses on mortgage loans	(4,315)		(5,531)
MORTGAGE LOANS HELD FOR PORTFOLIO, NET	$	8,719,897	$	8,352,713

1    Medium-term defined as a term of 15 years or less at origination.

Table 5.2 presents information as of June 30, 2024 and December 31, 2023 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands):

Table 5.2

	06/30/2024		12/31/2023
Conventional loans	$	8,321,184	$	7,953,624
Government-guaranteed or -insured loans	327,448		329,527
TOTAL UNPAID PRINCIPAL BALANCE	$	8,648,632	$	8,283,151

Payment Status of Mortgage Loans: Payment status is the key credit quality indicator for conventional mortgage loans and allows FHLBank to monitor borrower performance. A past due loan is one where the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.

23

Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of June 30, 2024 (dollar amounts in thousands):

Table 5.3

	06/30/2024
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2020		2020		2021		2022		2023		2024
Amortized Cost:1
Past due 30-59 days delinquent	$	19,893	$	3,616	$	7,901	$	5,795	$	2,713	$	909	$	40,827		$	7,494		$	48,321
Past due 60-89 days delinquent	6,788		1,108		1,333		1,064		1,085		—		11,378			2,636			14,014
Past due 90 days or more delinquent	13,046		961		261		2,155		477		—		16,900			3,611			20,511
Total past due	39,727		5,685		9,495		9,014		4,275		909		69,105			13,741			82,846
Total current loans	2,594,213		1,445,958		1,654,358		816,415		1,107,724		705,050		8,323,718			317,648			8,641,366
Total mortgage loans	$	2,633,940	$	1,451,643	$	1,663,853	$	825,429	$	1,111,999	$	705,959	$	8,392,823		$	331,389		$	8,724,212
Other delinquency statistics:
In process of foreclosure2													$	3,542		$	175		$	3,717
Serious delinquency rate3													0.2		%	1.1		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	3,611		$	3,611
Loans on nonaccrual status4													$	20,902		$	—		$	20,902

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $10,591,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

24

Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2023 (dollar amounts in thousands):

Table 5.4

	12/31/2023
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2019		2019		2020		2021		2022		2023
Amortized Cost:1
Past due 30-59 days delinquent	$	19,739	$	7,135	$	5,601	$	5,955	$	6,745	$	2,746	$	47,921		$	10,327		$	58,248
Past due 60-89 days delinquent	5,013		1,319		479		931		2,047		—		9,789			2,972			12,761
Past due 90 days or more delinquent	8,063		5,185		1,354		1,170		447		—		16,219			2,659			18,878
Total past due	32,815		13,639		7,434		8,056		9,239		2,746		73,929			15,958			89,887
Total current loans	1,770,552		971,328		1,506,877		1,720,492		852,858		1,128,557		7,950,664			317,693			8,268,357
Total mortgage loans	$	1,803,367	$	984,967	$	1,514,311	$	1,728,548	$	862,097	$	1,131,303	$	8,024,593		$	333,651		$	8,358,244
Other delinquency statistics:
In process of foreclosure2													$	6,008		$	763		$	6,771
Serious delinquency rate3													0.2		%	0.8		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	2,657		$	2,657
Loans on nonaccrual status4													$	19,383		$	—		$	19,383

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $12,502,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Allowance for Credit Losses:

Conventional Mortgage Loans: Conventional loans are evaluated collectively when similar risk characteristics exist. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowance for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current economic conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a third-party projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior. The forecasts used in the calculation of expected credit losses cover the contractual terms of the loans rather than a reversion to historical trends after a forecasted period. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses.

Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or by using third party estimates or property valuation model(s). The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses.

25

FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three and six months ended June 30, 2024 and 2023.

Table 5.5

	Three Months Ended				Six Months Ended
Conventional Loans	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of the period	$	5,202	$	5,836	$	5,531	$	6,378
Net (charge-offs) recoveries	(24)		48		(153)		(92)
Provision (reversal) for credit losses	(863)		746		(1,063)		344
Balance, end of the period	$	4,315	$	6,630	$	4,315	$	6,630

Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, and/or the Department of Housing and Urban Development. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial; consequently, no allowance for credit losses for government-guaranteed or -insured mortgage loans was recorded as of June 30, 2024 and December 31, 2023. Furthermore, none of these mortgage loans have been placed on nonaccrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.

NOTE 6 – DERIVATIVES AND HEDGING ACTIVITIES

Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of June 30, 2024 and December 31, 2023 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral.

Table 6.1

	06/30/2024						12/31/2023
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate swaps	$	40,379,766	$	128,645	$	356,687	$	44,804,870	$	116,352	$	410,595
Total derivatives designated as hedging relationships	40,379,766		128,645		356,687		44,804,870		116,352		410,595
Derivatives not designated as hedging instruments:
Interest rate swaps	6,607,099		19,451		90		6,383,296		22,072		152
Interest rate caps/floors	1,804,000		4,194		—		304,000		698		—
Mortgage delivery commitments	62,180		64		30		41,641		133		5
Total derivatives not designated as hedging instruments	8,473,279		23,709		120		6,728,937		22,903		157
TOTAL	$	48,853,045	152,354		356,807		$	51,533,807	139,255		410,752
Netting adjustments and cash collateral1			164,176		(355,856)				211,112		(409,892)
DERIVATIVE ASSETS AND LIABILITIES			$	316,530	$	951			$	350,367	$	860

1    Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

26

FHLBank carries derivative instruments at fair value on its Statements of Condition. Changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item.

Gains (losses) on fair value hedges include unrealized changes in fair value as well as net interest settlements. For the three months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.2 (in thousands):

Table 6.2

	Three Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	634,504	$	193,900	$	233,774	$	669,999
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	57,347	$	42,784	$	(3,609)	$	(29,912)
Hedged items2	17,281		13,646		1,640		(42,552)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	74,628	$	56,430	$	(1,969)	$	(72,464)

	Three Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	613,730	$	144,744	$	288,183	$	539,939
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	241,132	$	155,006	$	(19,567)	$	(169,181)
Hedged items2	(179,348)		(100,723)		8,142		95,419
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	61,784	$	54,283	$	(11,425)	$	(73,762)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

27

For the six months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.3 (in thousands):

Table 6.3

	Six Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,226,491	$	383,959	$	461,315	$	1,293,539
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	252,237	$	188,471	$	(6,663)	$	(114,399)
Hedged items2	(99,758)		(74,607)		2,353		(35,509)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	152,479	$	113,864	$	(4,310)	$	(149,908)

	Six Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,150,324	$	261,580	$	551,704	$	1,001,821
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	162,326	$	83,788	$	(2,909)	$	(114,280)
Hedged items2	(60,907)		10,777		(17,749)		(28,759)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	101,419	$	94,565	$	(20,658)	$	(143,039)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

28

Table 6.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of June 30, 2024 and December 31, 2023 (in thousands):

Table 6.4

06/30/2024
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	14,400,473	$	(307,745)	$	(7,269)	$	(315,014)
Available-for-sale securities	7,172,766		(331,365)		—		(331,365)
Consolidated obligation discount notes	(4,699,519)		4,665		—		4,665
Consolidated obligation bonds	(13,227,169)		330,478		(5,744)		324,734
12/31/2023
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	13,545,019	$	(206,332)	$	(8,924)	$	(215,256)
Available-for-sale securities	6,367,691		(256,757)		—		(256,757)
Consolidated discount notes	(3,874,550)		2,313		—		2,313
Consolidated obligation bonds	(20,374,603)		366,180		(5,937)		360,243

1    Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated other comprehensive income (AOCI) is excluded).

2    Included in amortized cost of the hedged asset/liability.

Table 6.5 provides information regarding net gains (losses) on derivatives recorded in non-interest income (in thousands).

Table 6.5

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Derivatives not designated as hedging instruments:
Economic hedges:
Interest rate swaps	$	(5,118)	$	11,371	$	(4,344)	$	3,084
Interest rate caps/floors	(1,192)		475		(1,796)		125
Net interest settlements	8,282		9,257		16,820		17,555
Price alignment interest	(117)		(182)		(242)		(391)
Mortgage delivery commitments	(177)		(627)		(232)		(604)
NET GAINS (LOSSES) ON DERIVATIVES	$	1,678	$	20,294	$	10,206	$	19,769

For uncleared derivative transactions, FHLBank has entered into bilateral security agreements with its counterparties with bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts.

29

Bilateral derivative transactions executed on or after September 1, 2022, are subject to two-way initial margin requirements if aggregate uncleared derivative exposure to a counterparty exceeds a specified threshold. The initial margin is required to be held at a third-party custodian, and the secured party can only take ownership upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding. As of June 30, 2024, FHLBank was not required to pledge to or receive initial margin from bilateral derivative counterparties.

FHLBank utilizes two Derivative Clearing Organizations (Clearinghouse) for all cleared derivative transactions, LCH Limited and CME Clearing. At both Clearinghouses, initial margin is considered cash collateral. For cleared derivatives, the Clearinghouse determines initial margin requirements and generally, credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to credit rating downgrades. FHLBank was not required to post additional initial margin by its clearing agents as of June 30, 2024 and December 31, 2023.

FHLBank’s net exposure on derivative agreements is presented in Note 9.

NOTE 7 – DEPOSITS

FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. A member that services mortgage loans may also deposit funds collected in connection with the mortgage loans, pending disbursement of these funds to the owners of the mortgage loans. FHLBank classifies these funds as other deposits. Deposits classified as demand and overnight pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit.

Table 7.1 details the types of deposits held by FHLBank as of June 30, 2024 and December 31, 2023 (in thousands):

Table 7.1

	06/30/2024		12/31/2023
Interest-bearing:
Demand	$	324,971	$	297,267
Overnight	423,300		391,900
Term	9,400		10,650
Total interest-bearing	757,671		699,817
Non-interest-bearing:
Other	59,401		52,383
Total non-interest-bearing	59,401		52,383
TOTAL DEPOSITS	$	817,072	$	752,200

30

NOTE 8 – CONSOLIDATED OBLIGATIONS

Consolidated Obligation Bonds: Table 8.1 presents FHLBank’s participation in consolidated obligation bonds outstanding as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 8.1

	06/30/2024				12/31/2023
Year of Contractual Maturity	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	34,655,725	4.89	%	$	28,152,305	4.90	%
Due after one year through two years	9,574,220		4.49		9,327,370		4.21
Due after two years through three years	4,066,610		2.35		4,294,125		2.01
Due after three years through four years	1,691,350		2.89		1,780,895		2.01
Due after four years through five years	1,474,000		3.62		1,467,440		2.96
Thereafter	4,925,005		3.19		4,387,255		2.63
Total par value	56,386,910		4.40	%	49,409,390		4.15	%
Premiums	11,423				12,874
Discounts	(2,473)				(3,108)
Concession fees	(11,970)				(11,424)
Hedging adjustments	(324,734)				(360,243)
TOTAL	$	56,059,156			$	49,047,489

FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of FHLBank on predetermined call dates in accordance with terms of bond offerings. FHLBank’s consolidated obligation bonds outstanding as of June 30, 2024 and December 31, 2023 includes callable bonds totaling $18,362,300,000 and $22,940,000,000, respectively. Table 8.2 summarizes FHLBank’s consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.2

Year of Maturity or Next Call Date	06/30/2024		12/31/2023
Due in one year or less	$	45,978,225	$	40,475,305
Due after one year through two years	7,458,720		6,503,370
Due after two years through three years	1,482,610		1,227,125
Due after three years through four years	793,850		362,895
Due after four years through five years	259,000		493,940
Thereafter	414,505		346,755
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.3

	06/30/2024		12/31/2023
Fixed rate	$	21,241,410	$	28,093,390
Simple variable rate	33,518,500		19,524,000
Step	1,627,000		1,792,000
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

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Consolidated Discount Notes: Table 8.4 summarizes FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands):

Table 8.4

	Carrying Value		Par Value		Weighted Average Interest Rate1
June 30, 2024	$	18,209,813	$	18,418,401	5.11	%
December 31, 2023	$	20,743,249	$	20,903,145	5.15	%

1    Represents yield to maturity excluding concession fees.

NOTE 9 – ASSETS AND LIABILITIES SUBJECT TO OFFSETTING

FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, including associated accrued interest.

FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

Tables 9.1 and 9.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.1

06/30/2024
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	140,522	$	(138,570)	$	1,952	$	(64)	$	1,888
Cleared derivatives	11,832		302,746		314,578		—		314,578
Total derivative assets	152,354		164,176		316,530		(64)		316,466
Securities purchased under agreements to resell	2,925,000		—		2,925,000		(2,925,000)		—
TOTAL	$	3,077,354	$	164,176	$	3,241,530	$	(2,925,064)	$	316,466

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

32

Table 9.2

12/31/2023
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	136,141	$	(133,650)	$	2,491	$	(133)	$	2,358
Cleared derivatives	3,114		344,762		347,876		—		347,876
Total derivative assets	139,255		211,112		350,367		(133)		350,234
Securities purchased under agreements to resell	3,875,000		—		3,875,000		(3,875,000)		—
TOTAL	$	4,014,255	$	211,112	$	4,225,367	$	(3,875,133)	$	350,234

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Tables 9.3 and 9.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.3

06/30/2024
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	353,412	$	(352,461)	$	951	$	(30)	$	921
Cleared derivatives	3,395		(3,395)		—		—		—
Total derivative liabilities	356,807		(355,856)		951		(30)		921
TOTAL	$	356,807	$	(355,856)	$	951	$	(30)	$	921

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

33

Table 9.4

12/31/2023
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	402,527	$	(401,667)	$	860	$	(5)	$	855
Cleared derivatives	8,225		(8,225)		—		—		—
Total derivative liabilities	410,752		(409,892)		860		(5)		855
TOTAL	$	410,752	$	(409,892)	$	860	$	(5)	$	855

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

NOTE 10 – CAPITAL

Capital Requirements: FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the FHFA's capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock.

•Risk-based capital. FHLBank must maintain at all times permanent capital in an amount at least equal to the sum of its credit risk, market risk and operational risk capital requirements. The risk-based capital requirements are all calculated in accordance with the rules and regulations of the FHFA. Only permanent capital, defined as the amounts paid-in for Class B Common Stock and retained earnings, can be used by FHLBank to satisfy its risk-based capital requirement. The FHFA may require FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined, but the FHFA has not placed any such requirement on FHLBank to date.

•Total regulatory capital. The GLB Act requires FHLBank to maintain at all times at least a 4.0 percent total capital-to-asset ratio. Total regulatory capital is defined as the sum of permanent capital, Class A Common Stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses.

•Leverage capital. FHLBank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.0 percent, with the leverage capital ratio defined as the sum of permanent capital weighted 1.5 times and non-permanent capital (currently only Class A Common Stock) weighted 1.0 times, divided by total assets.

Table 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 10.1

	06/30/2024						12/31/2023
	Required			Actual			Required			Actual
Regulatory capital requirements:
Risk-based capital	$	805,359		$	3,932,532		$	746,439		$	3,730,738
Total regulatory capital-to-asset ratio	4.0		%	5.3		%	4.0		%	5.4		%
Total regulatory capital	$	3,190,201		$	4,251,892		$	2,997,879		$	4,009,870
Leverage capital ratio	5.0		%	7.8		%	5.0		%	7.8		%
Leverage capital	$	3,987,752		$	6,218,158		$	3,747,349		$	5,875,238

34

Mandatorily Redeemable Capital Stock: FHLBank is a cooperative whose members own most of FHLBank’s capital stock. Former members (including certain non-members that own FHLBank capital stock as a result of merger or acquisition, relocation, charter termination, or involuntary termination of an FHLBank member) own the remaining capital stock to support business transactions still carried on FHLBank's Statements of Condition. Shares cannot be purchased or sold except between FHLBank and its members at a price equal to the $100 per share par value.

Table 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three and six months ended June 30, 2024 and 2023 (in thousands):

Table 10.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of period	$	205	$	269	$	247	$	280
Capital stock subject to mandatory redemption reclassified from equity during the period	77,949		282,260		232,442		493,497
Redemption or repurchase of mandatorily redeemable capital stock during the period	(74,762)		(282,271)		(229,299)		(493,521)
Stock dividend classified as mandatorily redeemable capital stock during the period	50		5		52		7
Balance, end of period	$	3,442	$	263	$	3,442	$	263

Excess Capital Stock: Excess capital stock is defined as the amount of stock held by a member (or former member) in excess of that institution’s minimum stock purchase requirement. FHFA rules limit the ability of FHLBank to create excess member stock under certain circumstances. For example, FHLBank may not pay dividends in the form of capital stock or issue new excess stock to members if FHLBank’s excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause FHLBank’s excess stock to exceed one percent of its total assets. As of June 30, 2024, FHLBank’s excess stock was less than one percent of total assets.

Capital Classification Determination: The FHFA determines each FHLBank’s capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, that FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA is required to provide an FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent review by the FHFA, FHLBank Topeka was classified as adequately capitalized.

35

NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE INCOME

Table 11.1 summarizes the changes in AOCI for the three months ended June 30, 2024 and 2023 (in thousands):

Table 11.1

	Three Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at March 31, 2023	$	(82,556)	$	173	$	(82,383)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(1,446)				(1,446)
Net current period other comprehensive income (loss)	(1,446)		—		(1,446)
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at March 31, 2024	$	(94,752)	$	(27)	$	(94,779)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)				(19,131)
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	(19,131)		169		(18,962)
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

1    Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses).

Table 11.2 summarizes the changes in AOCI for the six months ended June 30, 2024 and 2023 (in thousands):

Table 11.2

	Six Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at December 31, 2022	$	(84,443)	$	173	$	(84,270)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	441				441
Net current period other comprehensive income (loss)	441		—		441
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at December 31, 2023	$	(118,944)	$	(27)	$	(118,971)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	5,061				5,061
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	5,061		169		5,230
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

36

NOTE 12 – FAIR VALUES

The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by FHLBank using available market and other pertinent information and reflect FHLBank’s best judgment of appropriate valuation methods. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Although FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique. Therefore, the fair values may not be indicative of the amounts that would have been realized in market transactions as of June 30, 2024 and December 31, 2023. Additionally, these values do not represent an estimate of the overall market value of FHLBank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities.

Subjectivity of Estimates: Estimates of the fair value of advances with options, mortgage instruments, and derivatives with embedded options are subjective and require judgments regarding significant matters such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates.

Fair Value Hierarchy: The fair value hierarchy requires FHLBank to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of the market observability of the fair value measurement for the asset or liability. FHLBank must disclose the level within the fair value hierarchy in which the measurements are classified for all assets and liabilities.

The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels:

•Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that FHLBank can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

•Level 2 Inputs – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets and liabilities in active markets; (2) quoted prices for similar assets and liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3 Inputs – Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models using an unobservable discount rate, or similar techniques.

FHLBank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. There were no transfers of assets or liabilities between fair value levels during the three and six months ended June 30, 2024 and 2023.

Tables 12.1 and 12.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of June 30, 2024 and December 31, 2023. FHLBank records trading securities, available-for-sale securities, derivative assets, and derivative liabilities at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. FHLBank measures all other financial assets and liabilities at amortized cost. Further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis are presented in Tables 12.3 and 12.4.

37

The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of June 30, 2024 and December 31, 2023 are summarized in Tables 12.1 and 12.2 (in thousands):

Table 12.1

	06/30/2024
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,550	$	26,550	$	26,550	$	—	$	—	$	—
Interest-bearing deposits	2,339,648		2,339,114		—		2,339,114		—		—
Securities purchased under agreements to resell	2,925,000		2,925,000		—		2,925,000		—		—
Federal funds sold	5,292,000		5,292,000		—		5,292,000		—		—
Trading securities	843,742		843,742		—		843,742		—		—
Available-for-sale securities	12,466,957		12,466,957		—		12,466,957		—		—
Held-to-maturity securities	247,993		244,428		—		210,199		34,229		—
Advances	46,219,747		46,240,518		—		46,240,518		—		—
Mortgage loans held for portfolio, net of allowance	8,719,897		7,725,206		—		7,721,106		4,100		—
Accrued interest receivable	275,977		275,977		—		275,977		—		—
Derivative assets	316,530		316,530		—		152,354		—		164,176
Liabilities:
Deposits	817,072		817,069		—		817,069		—		—
Consolidated obligation discount notes	18,209,813		18,210,161		—		18,210,161		—		—
Consolidated obligation bonds	56,059,156		55,121,561		—		55,121,561		—		—
Mandatorily redeemable capital stock	3,442		3,442		3,442		—		—		—
Accrued interest payable	380,927		380,927		—		380,927		—		—
Derivative liabilities	951		951		—		356,807		—		(355,856)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,491		—		32,491		—		—
Financing obligation payable	(35,000)		(32,491)		—		(32,491)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

38

Table 12.2

	12/31/2023
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,062	$	26,062	$	26,062	$	—	$	—	$	—
Interest-bearing deposits	1,604,989		1,604,989		—		1,604,989		—		—
Securities purchased under agreements to resell	3,875,000		3,875,000		—		3,875,000		—		—
Federal funds sold	2,080,000		2,080,000		—		2,080,000		—		—
Trading securities	908,608		908,608		—		908,608		—		—
Available-for-sale securities	11,753,453		11,753,453		—		11,753,453		—		—
Held-to-maturity securities	264,796		260,653		—		225,444		35,209		—
Advances	45,444,769		45,452,358		—		45,452,358		—		—
Mortgage loans held for portfolio, net of allowance	8,352,713		7,493,015		—		7,490,867		2,148		—
Accrued interest receivable	204,243		204,243		—		204,243		—		—
Derivative assets	350,367		350,367		—		139,255		—		211,112
Liabilities:
Deposits	752,200		752,209		—		752,209		—		—
Consolidated obligation discount notes	20,743,249		20,743,707		—		20,743,707		—		—
Consolidated obligation bonds	49,047,489		48,096,791		—		48,096,791		—		—
Mandatorily redeemable capital stock	247		247		247		—		—		—
Accrued interest payable	361,840		361,840		—		361,840		—		—
Derivative liabilities	860		860		—		410,752		—		(409,892)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,695		—		32,695		—		—
Financing obligation payable	(35,000)		(32,695)		—		(32,695)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

39

Fair Value Measurements: Tables 12.3 and 12.4 present, for each hierarchy level, FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended June 30, 2024 and December 31, 2023 (in thousands).

Table 12.3

	06/30/2024
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	241,444	$	—	$	241,444	$	—	$	—
GSE MBS	602,298		—		602,298		—		—
Total trading securities	843,742		—		843,742		—		—
Available-for-sale securities:
U.S. Treasury obligations	3,173,580		—		3,173,580		—		—
U.S. obligation MBS	88,847		—		88,847		—		—
GSE MBS	9,204,530		—		9,204,530		—		—
Total available-for-sale securities	12,466,957		—		12,466,957		—		—
Derivative assets:
Interest-rate related	316,466		—		152,290		—		164,176
Mortgage delivery commitments	64		—		64		—		—
Total derivative assets	316,530		—		152,354		—		164,176
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,627,229	$	—	$	13,463,053	$	—	$	164,176
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	921	$	—	$	356,777	$	—	$	(355,856)
Mortgage delivery commitments	30		—		30		—		—
Total derivative liabilities	951		—		356,807		—		(355,856)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	951	$	—	$	356,807	$	—	$	(355,856)
Nonrecurring fair value measurements - Assets2:
Impaired mortgage loans	$	4,146	$	—	$	—	$	4,146	$	—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	4,146	$	—	$	—	$	4,146	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the six months ended June 30, 2024 and still outstanding as of June 30, 2024.

40

Table 12.4

	12/31/2023
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	288,438	$	—	$	288,438	$	—	$	—
GSE MBS	620,170		—		620,170		—		—
Total trading securities	908,608		—		908,608		—		—
Available-for-sale securities:
U.S. Treasury obligations	2,937,868		—		2,937,868		—		—
U.S. obligation MBS	107,535		—		107,535		—		—
GSE MBS	8,708,050		—		8,708,050		—		—
Total available-for-sale securities	11,753,453		—		11,753,453		—		—
Derivative assets:
Interest-rate related	350,234		—		139,122		—		211,112
Mortgage delivery commitments	133		—		133		—		—
Total derivative assets	350,367		—		139,255		—		211,112
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,012,428	$	—	$	12,801,316	$	—	$	211,112
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	855	$	—	$	410,747	$	—	$	(409,892)
Mortgage delivery commitments	5		—		5		—		—
Total derivative liabilities	860		—		410,752		—		(409,892)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	860	$	—	$	410,752	$	—	$	(409,892)
Nonrecurring fair value measurements - Assets2:
Held-to-maturity securities:
Impaired mortgage loans	$	2,178	$	—	$	—	$	2,178	$	—
Real estate owned	43		—		—		43		—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	2,221	$	—	$	—	$	2,221	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the year ended December 31, 2023 and still outstanding as of December 31, 2023.

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Joint and Several Liability: As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. The par amounts for which FHLBank Topeka is jointly and severally liable were approximately $1,117,189,190,000 and $1,134,003,465,000 as of June 30, 2024 and December 31, 2023, respectively.

41

Off-balance Sheet Commitments: Table 13.1 presents off-balance sheet commitments at June 30, 2024 and December 31, 2023 (in thousands). No allowance for credit losses was recorded on these commitments at June 30, 2024 and December 31, 2023.

Table 13.1

	06/30/2024						12/31/2023
Notional Amount	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit outstanding	$	7,086,338	$	59,337	$	7,145,675	$	7,242,988	$	5,670	$	7,248,658
Advance commitments outstanding	12,636		3,069		15,705		48,526		3,615		52,141
Principal commitments for standby bond purchase agreements	116,055		869,045		985,100		283,220		716,295		999,515
Commitments to fund or purchase mortgage loans	62,180		—		62,180		41,641		—		41,641
Commitments to issue consolidated bonds, at par	2,000		—		2,000		1,300,000		—		1,300,000
Commitments to issue consolidated discount notes, at par	55,912		—		55,912		—		—		—

Commitments to Extend Credit: FHLBank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances and are fully collateralized at the time of issuance with assets allowed by FHLBank’s Member Products Policy (MPP). Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If FHLBank is required to make payment for a beneficiary's draw, the member either reimburses FHLBank for the amount drawn or, subject to FHLBank's discretion, the amount drawn may be converted into a collateralized advance to the member. However, standby letters of credit usually expire without being drawn upon. FHLBank's current outstanding standby letters of credit expire no later than 2026. Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $2,542,000 and $2,367,000 as of June 30, 2024 and December 31, 2023, respectively. Advance commitments legally bind and unconditionally obligate FHLBank for additional advances up to 24 months in the future. Based upon management’s credit analysis of members and collateral requirements under the MPP, FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments.

Standby Bond-Purchase Agreements: FHLBank has entered into standby bond purchase agreements with state housing authorities whereby FHLBank, for a fee, agrees to purchase and hold the authorities’ bonds until the designated marketing agent can find a suitable investor or the housing authority repurchases the bond according to a schedule established by the standby agreement. Each standby agreement dictates the specific terms that would require FHLBank to purchase the bond and typically allows FHLBank to terminate the agreement upon the occurrence of a default event of the issuer. The bond purchase commitments entered into by FHLBank expire no later than 2029, though some are renewable at the option of FHLBank. As of June 30, 2024 and December 31, 2023, the total commitments for bond purchases included agreements with two in-district state housing authorities. FHLBank was not required to purchase any bonds under any agreements during the six months ended June 30, 2024 and 2023.

Commitments to Purchase Mortgage Loans: These commitments that unconditionally obligate FHLBank to purchase mortgage loans from participating FHLBank Topeka members in the MPF Program are generally for periods not to exceed 60 calendar days. Certain commitments are recorded as derivatives at their fair values on the Statements of Condition. FHLBank recorded mortgage delivery commitment net derivative asset balances of $34,000 and $128,000 as of June 30, 2024 and December 31, 2023, respectively.

Commitments to Issue Consolidated Obligations: FHLBank enters into commitments to issue consolidated obligation bonds and discount notes outstanding in the normal course of its business. Most settle within the shortest period possible and are considered regular way trades; however, certain commitments are recorded as derivatives at their fair values on the Statements of Condition.

42

NOTE 14 – TRANSACTIONS WITH STOCKHOLDERS

FHLBank is a cooperative whose members own most of the capital stock of FHLBank and generally receive dividends on their investments. In addition, certain former members that still have outstanding transactions are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. Nearly all outstanding advances are with current members, and the majority of outstanding mortgage loans held for portfolio were purchased from current or former members. FHLBank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases.

Transactions with members are entered into in the ordinary course of business. In instances where members also have officers or directors who are directors of FHLBank, transactions with those members are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as other transactions with members. For financial reporting and disclosure purposes, FHLBank defines related parties as FHLBank directors’ financial institutions and members with capital stock investments in excess of 10 percent of FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock.

Activity with Members that Exceed a 10 Percent Ownership in FHLBank Regulatory Capital Stock: Tables 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). An officer of BOKF, N.A. currently serves on FHLBank’s board of directors.

Table 14.1

06/30/2024
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	3,202	1.0	%	$	510,050	21.1	%	$	513,252	18.7	%
BOKF, N.A.	OK	72,297		22.6		325,208		13.4		397,505		14.5
TOTAL		$	75,499	23.6	%	$	835,258	34.5	%	$	910,757	33.2	%

Table 14.2

12/31/2023
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	35,473	12.7	%	$	443,345	19.0	%	$	478,818	18.4	%
BOKF, N.A.	OK	500		0.2		347,012		14.9		347,512		13.3
TOTAL		$	35,973	12.9	%	$	790,357	33.9	%	$	826,330	31.7	%

Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 are summarized in Table 14.3 (dollar amounts in thousands).

Table 14.3

	06/30/2024				12/31/2023				06/30/2024				12/31/2023
Member Name	Outstanding Advances		Percent of Total		Outstanding Advances		Percent of Total		Outstanding Deposits		Percent of Total		Outstanding Deposits		Percent of Total
MidFirst Bank	$	10,840,000	23.3	%	$	9,585,000	21.0	%	$	5,078	0.6	%	$	3,751	0.5	%
BOKF, N.A.	6,500,000		14.0		7,675,000		16.8		58,766		7.2		22,325		3.0	%
TOTAL	$	17,340,000	37.3	%	$	17,260,000	37.8	%	$	63,844	7.8	%	$	26,076	3.5	%

BOKF, N.A. sold $12,143,000 and $20,941,000 mortgage loans into the MPF Program during the three and six months ended June 30, 2024, respectively. MidFirst Bank did not sell any mortgage loans into the MPF Program during the three and six months ended June 30, 2024 and 2023.

43

Transactions with FHLBank Directors’ Financial Institutions: Table 14.4 presents information as of June 30, 2024 and December 31, 2023 for members that had an officer or director serving on FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock.

Table 14.4

	06/30/2024				12/31/2023
	Outstanding Amount		Percent of Total		Outstanding Amount		Percent of Total
Advances	$	6,700,733	14.4	%	$	270,308	0.6	%
Deposits	$	61,071	7.5	%	$	7,314	1.0	%
Class A Common Stock	$	76,257	23.9	%	$	4,314	1.5	%
Class B Common Stock	337,262		13.9		14,924		0.6
TOTAL CAPITAL STOCK	$	413,519	15.1	%	$	19,238	0.7	%

Table 14.5 presents mortgage loans acquired during the three and six months ended June 30, 2024 and 2023 for members that had an officer or director serving on FHLBank’s board of directors in 2024 or 2023 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors.

Table 14.5

	Three Months Ended								Six Months Ended
	06/30/2024				06/30/2023				06/30/2024				06/30/2023
	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
Mortgage loans acquired	$	19,738	4.0	%	$	4,473	1.3	%	$	34,984	4.6	%	$	8,984	1.7	%

NOTE 15 – TRANSACTIONS WITH OTHER FHLBANKS

From time to time, one FHLBank may transfer to another FHLBank the consolidated obligations for which the transferring FHLBank was originally the primary obligor but upon transfer the assuming FHLBank becomes the primary obligor. During the first quarter of 2023, FHLBank Topeka transferred debt obligations with a par amount of $1,000,000,000 to another FHLBank. There were no transfers of debt obligations to other FHLBanks during the three and six months ended June 30, 2024.

44

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to assist the reader in understanding our business and assessing our operations both historically and prospectively. This discussion should be read in conjunction with our interim financial statements and related notes presented under Part I, Item 1 of this quarterly report on Form 10-Q and the annual report on Form 10-K for the year ended December 31, 2023, which includes audited financial statements and related notes for the year ended December 31, 2023. Our MD&A includes the following sections:

•Selected Financial Data – a tabular summary of selected balances, financial ratios and other financial information;

•Executive Level Overview – a general description of our business and financial highlights;

•Financial Market Trends – a discussion of current trends in the financial markets and overall economic environment, including the related impact on our operations;

•Critical Accounting Policies and Estimates – a discussion of accounting policies that require critical estimates and assumptions;

•Results of Operations – an analysis of our operating results, including disclosures about the sustainability of our earnings;

•Financial Condition – an analysis of our financial position;

•Liquidity and Capital Resources – an analysis of our cash flows and capital position;

•Risk Management – a discussion of our risk management strategies;

•Recently Issued Accounting Standards; and

•Legislative and Regulatory Developments.

45

Executive Level Overview

Table 1 presents selected financial data for the periods indicated (dollar amounts in thousands):

Table 1

	06/30/2024			03/31/2024			12/31/2023			09/30/2023			06/30/2023
Statement of Condition (as of period end):
Total assets	$	79,755,037		$	73,664,303		$	74,946,985		$	73,136,292		$	72,859,560
Investments1	24,115,340			22,855,565			20,486,846			19,967,164			20,184,671
Advances	46,219,747			41,660,129			45,444,769			44,322,221			43,957,361
Mortgage loans, net	8,719,897			8,440,064			8,352,713			8,207,138			8,064,228
Total liabilities	75,620,328			69,799,596			71,056,333			69,244,674			68,963,074
Deposits	817,072			846,628			752,200			751,952			539,157
Consolidated obligations, net2	74,268,969			68,462,333			69,790,738			67,991,607			67,944,534
Total capital	4,134,709			3,864,707			3,890,652			3,891,618			3,896,486
Capital stock	2,735,999			2,497,709			2,607,683			2,649,451			2,644,249
Retained earnings	1,512,451			1,461,777			1,401,940			1,371,586			1,336,066
Statement of Income (for the quarterly period ended):
Net interest income	137,958			136,141			119,072			114,908			121,667
Other income (loss)	9,261			13,916			6,382			10,927			19,025
Voluntary housing and community investment program contributions3	3,919			—			3,000			—			—
Other expenses	23,976			23,423			26,268			23,649			21,946
Income before assessments	120,187			126,834			97,139			102,219			118,000
Affordable Housing Program (AHP) assessments	12,024			12,684			9,714			10,222			11,800
Net income	108,163			114,150			87,425			91,997			106,200
Selected Financial Ratios and Other Financial Data (for the quarterly period ended):
Dividends paid	57,489			54,313			57,071			56,477			55,875
Weighted average dividend rate4	8.79		%	8.76		%	8.84		%	8.62		%	8.31		%
Dividend payout ratio5	53.15		%	47.58		%	65.28		%	61.39		%	52.61		%
Return on average equity	10.76		%	11.96		%	9.06		%	9.39		%	10.81		%
Return on average assets	0.56		%	0.62		%	0.46		%	0.49		%	0.55		%
Average equity to average assets	5.19		%	5.19		%	5.04		%	5.18		%	5.10		%
Net interest margin6	0.72		%	0.74		%	0.62		%	0.61		%	0.63		%
Total capital ratio7	5.18		%	5.25		%	5.19		%	5.32		%	5.35		%
Regulatory capital ratio8	5.33		%	5.38		%	5.35		%	5.50		%	5.46		%

1    Includes trading securities, available-for-sale securities, held-to-maturity securities, interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold.

2    Consolidated obligations are bonds and discount notes that we are primarily liable to repay. See Note 13 to the financial statements for a description of the par amount of consolidated obligations of all FHLBanks for which we are jointly and severally liable.

3    Voluntary housing and community investment program contributions are expensed in the period they are approved by the board of directors and/or awarded.

4    Dividends paid in cash and stock on both classes of stock as a percentage of average capital stock eligible for dividends.

5    Ratio disclosed represents dividends declared and paid during the period as a percentage of net income for the period presented. FHFA regulation requires dividends be paid out of known income prior to declaration date.

6    Net interest income as a percentage of average earning assets.

7    GAAP capital stock, which excludes mandatorily redeemable capital stock, plus retained earnings and accumulated other comprehensive income (AOCI) as a percentage of total assets.

8    Regulatory capital (i.e., permanent capital and Class A Common Stock) as a percentage of total assets.

We are a regional wholesale bank that makes advances (loans) to, purchases mortgage loans from, and provides limited other financial services primarily to our members. Our mission is to be a reliable source of liquidity and low-cost funding for our members in support of residential mortgage lending and related housing and economic development needs of the communities served by our members. As an independent, member-owned cooperative, we seek to maintain a balance between our public purpose and our ability to provide adequate returns on the capital supplied by our members. Our members include commercial banks, savings institutions, credit unions, insurance companies, and community development financial institutions.

46

Second Quarter 2024 Financial Highlights:

•Net interest income/margin: Net interest income increased $16.3 million to $138.0 million for the quarter ended June 30, 2024 compared to $121.7 million for the quarter ended June 30, 2023. The increase in net interest income was primarily attributed to improvements in funding and asset spreads combined with the increase in interest rates, including the impact of higher interest rates on fair value hedges. Net interest margin increased nine basis points for the current quarter, from 0.63 percent for the quarter ended June 30, 2023 to 0.72 percent for the quarter ended June 30, 2024. Net interest spread increased seven basis points, from 0.34 percent for the quarter ended June 30, 2023 to 0.41 percent for the quarter ended June 30, 2024.

•Total assets: Total assets increased from $74.9 billion as of December 31, 2023 to $79.8 billion as of June 30, 2024, driven by the $3.6 billion increase in short- and long-term investments between periods and a $0.8 billion increase in advances. The average balance of interest-earning assets increased $0.5 billion between the quarter ended June 30, 2024 and the same period in the prior year, driven by a $2.2 billion increase in the average balance of short- and long-term investments and a $0.6 billion increase in mortgage loans, partially offset by a $2.4 billion decrease in the average balance of advances.

•Primary Mission Assets: Advances to members and housing associates and mortgage loans purchased from members are Primary Mission Assets because they are fundamental to the business and mission of FHLBank. The Primary Mission Asset ratio, as defined by the FHFA under its core mission achievement guidance, is calculated as average advances and average mortgage loans to average consolidated obligations (less certain U.S. Treasury securities), based on year-to-date averages. As of June 30, 2024 and December 31, 2023, our Primary Mission Asset ratio was 78 percent and 81 percent, respectively.

•Advances: Advances increased to $46.2 billion at June 30, 2024 compared to $45.4 billion at December 31, 2023, representing 58.0 percent of total assets as of June 30, 2024, compared to 60.6 percent as of December 31, 2023. The average balance of advances decreased $2.4 billion, or 5.0 percent to $45.3 billion for the quarter ended June 30, 2024 when compared to the prior year period. The decrease in the average balance of advances between periods reflects the decline in on-balance sheet liquidity held by depository members. We continue to execute our liquidity mission by serving as a reliable source of liquidity and funding for members.

•Mortgage loans: Mortgage loans increased to $8.7 billion at June 30, 2024 compared to $8.4 billion at December 31, 2023, representing 10.9 percent of total assets at June 30, 2024, compared to 11.1 percent at December 31, 2023. The average balance of mortgage loans increased $0.6 billion, or 7.8 percent, for the three months ended June 30, 2024 when compared to the prior year period. Interest income continues to be positively impacted by originations at interest rates higher than the weighted average rate of the existing portfolio.

•Performance ratios: Return on average equity (ROE) held steady at 10.8 percent for the quarters ended June 30, 2024 and June 30, 2023.

•Dividends: The Class A Common Stock dividend rate of 4.75 percent per annum and the Class B Common Stock dividend rate of 9.50 percent per annum combined for a weighted average dividend rate for the quarter ended June 30, 2024 of 8.79 percent.

Financial Market Trends

The primary external factors that affect net interest income are market interest rates and the general state of the economy, as discussed in greater detail below.

47

General discussion of the level of market interest rates:

Table 2 presents selected market interest rates as of the dates or for the periods shown.

Table 2

	06/30/2024		06/30/2023		06/30/2024		06/30/2023		06/30/2024		12/31/2023
Market Instrument	Three-month		Three-month		Six-month		Six-month		Ending		Ending
	Average		Average		Average		Average		Rate		Rate
Secured Overnight Financing Rate1	5.32	%	4.97	%	5.32	%	4.73	%	5.33	%	5.38	%
Federal funds effective rate1	5.33		4.99		5.33		4.76		5.33		5.33
Federal Reserve interest rate on reserve balances1	5.40		5.06		5.40		4.82		5.40		5.40
3-month U.S. Treasury bill1	5.39		5.17		5.39		4.94		5.36		5.34
2-year U.S. Treasury note1	4.84		4.28		4.66		4.32		4.75		4.25
5-year U.S. Treasury note1	4.46		3.70		4.29		3.75		4.38		3.85
10-year U.S. Treasury note1	4.45		3.60		4.30		3.62		4.40		3.88
30-year residential mortgage note rate1,2	7.08		6.64		6.98		6.54		7.03		6.76

1    Source is Bloomberg.

2    Mortgage Bankers Association weekly 30-year fixed rate mortgage contract rate.

The Federal Open Market Committee (FOMC) held rates steady for the seventh consecutive time at its meeting in July 2024, as inflation remains above their two percent target. Recent indicators suggest that economic activity has been expanding at a solid pace with job gains remaining strong and the unemployment rate remaining low. The FOMC does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two percent.

We issue debt at a spread to U.S. Treasury securities; as a result, the level of interest rates impacts the cost of issuing FHLBank consolidated obligations and the cost of advances to our members and housing associates. The cost of issuing short-term debt has increased with the increases in market rates, but the high demand for short-term Agency debt has kept this spread to the comparable Treasury security relatively narrow. After months of temporary measures, legislation to fund the government through September 30, 2024 was signed on March 23, 2024, easing the threat of a government shutdown. Historically, the threat of a government shutdown has not had a significant impact on the demand for or cost to issue FHLBank debt.

Volatility in the capital markets can also impact the demand for and cost of debt issued by the FHLBanks. Efforts of the Federal Reserve Board to ease inflation have contributed to volatility in the financial markets, financial difficulties experienced by some depository institutions, and uncertainties about the economic outlook. Continued inflation and higher interest rates could impact economic growth and member demand for advances. For further discussion, see this Item 2 – “Financial Condition – Consolidated Obligations.”

Critical Accounting Policies and Estimates

The preparation of our financial statements in accordance with GAAP requires management to make a number of judgments, estimates, and assumptions that affect our reported results and disclosures. Several of our accounting policies are inherently subject to valuation assumptions and other subjective assessments and are more critical than others in terms of their importance to results. Given the assumptions and judgment used, we have identified the accounting for derivatives and hedging activities as a critical accounting estimate. Our financial condition and results of operations could be materially affected under different conditions or different assumptions related to this accounting estimate.

The accounting policies that management believes are the most critical to an understanding of our financial results and condition and require complex management judgment are described under Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our annual report on Form 10-K, incorporated by reference herein. There were no material changes to our critical accounting policies and estimates during the quarter ended June 30, 2024.

48

Results of Operations

Earnings Analysis: Table 3 presents changes in the major components of our net income (dollar amounts in thousands):

Table 3

	Increase (Decrease) in Earnings Components
	Three Months Ended				Six Months Ended
	06/30/2024 vs. 06/30/2023				06/30/2024 vs. 06/30/2023
	Dollar Change		Percentage Change		Dollar Change		Percentage Change
Total interest income	$	94,959	9.9	%	$	254,452	14.2	%
Total interest expense	78,668		9.4		206,423		13.2
Net interest income	16,291		13.4		48,029		21.2
Provision (reversal) for credit losses on mortgage loans	(1,609)		(215.7)		(1,407)		(409.0)
Net interest income after mortgage loan loss provision	17,900		14.8		49,436		21.9
Net gains (losses) on trading securities	8,539		185.6		1,346		30.7
Net gains (losses) on derivatives	(18,616)		(91.7)		(9,563)		(48.4)
Other non-interest income	313		9.4		756		11.7
Total other income (loss)	(9,764)		(51.3)		(7,461)		(24.4)
Operating expenses	1,421		25.4		2,255		20.0
Other non-interest expenses	4,528		27.7		4,972		15.2
Total other expenses	5,949		27.1		7,227		16.4
AHP assessments	224		1.9		3,480		16.4
NET INCOME	$	1,963	1.8	%	$	31,268	16.4	%

Net income increased $2.0 million, or 1.8 percent, to $108.2 million for the three months ended June 30, 2024 compared to $106.2 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, net income increased $31.3 million, or 16.4 percent, to $222.3 million compared to $191.0 million for the same period in the prior year. The increase in net income is substantially attributed to the increase in net interest income, partially offset by fair value fluctuations of derivatives and trading securities, increases in operating expenses, and statutory and voluntary contributions to housing and community investment programs, see “Net Interest Income and Net Interest Margin,” and “Other Expenses” under this Item 2.

Net Interest Income and Net Interest Margin: Net interest income increased $16.3 million for the quarter, or 13.4 percent, from $121.7 million for the three months ended June 30, 2023 to $138.0 million for the three months ended June 30, 2024. Net interest income increased $48.0 million for the current year-to-date period, from $226.1 million for the six months ended June 30, 2023 to $274.1 million for the six months ended June 30, 2024. Balance sheet composition, market interest rates and trends, and net interest spread affect net interest income and net interest margin on earning assets, including advances, mortgage loans, and investments. The increase for both the three- and six-month periods was primarily attributed to improvements in funding spreads resulting from the maturities of higher-costing debt. Asset spreads also improved, particularly on long-term investments and advances, combined with the impact of higher interest rates on fair value hedges.

Net interest margin increased nine basis points for the current quarter, from 0.63 percent for the quarter ended June 30, 2023 to 0.72 percent for the quarter ended June 30, 2024. Net interest margin increased thirteen basis points, from 0.60 percent to 0.73 percent for the six months ended June 30, 2024 compared to the prior year period (see Table 10). Net interest spread increased seven basis points, from 0.34 percent for the quarter ended June 30, 2023 to 0.41 percent for the quarter ended June 30, 2024. Net interest spread increased nine basis points, from 0.33 percent to 0.42 percent for the six months ended June 30, 2024 compared to the prior year period. The increase in net interest spread was partially due to shifts in balance sheet composition between advances and investments, with spread improvements in both asset categories. Net interest margin increased as a result of the improvement in net interest spread. For further discussion of advances, mortgage loans, and consolidated obligations, see this Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition.” Overnight investments also provided a positive contribution, as the yield increased more than the cost of the associated short-term debt.

49

Net interest income and net interest margin are also impacted by derivative and hedging activities, as net interest settlements on derivatives and the changes in fair values of hedged assets and liabilities and the corresponding derivative instruments designated in fair value hedging relationships are recorded in net interest income. The increase in net interest income resulting from fair value hedging was driven by the relative increase in swap index rates year over year, and the impact of those swap index rate increases on net interest settlements. For the current quarter, net interest income increased $55.4 million due to net interest settlements received on fair value hedges compared to $22.3 million for the same period in the prior year. For the current year-to-date period, net interest income increased $103.8 million due to net interest settlements received on fair value hedges compared to $27.0 million for the same period in the prior year. Tables 4 through 7 present the impact of derivatives and hedging activities recorded in net interest income (in thousands):

Table 4

	Three Months Ended 06/30/2024
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Unrealized gains (losses) due to fair value changes	$	87	$	9,311	$	—	$	667	$	118	$	10,183
Net amortization/accretion of hedging activities	834		—		179		—		97		1,110
Net interest received (paid)	78,591		52,258		—		(2,730)		(72,725)		55,394
Price alignment amount	(4,884)		(5,139)		—		94		46		(9,883)
TOTAL	$	74,628	$	56,430	$	179	$	(1,969)	$	(72,464)	$	56,804

Table 5

	Three Months Ended 06/30/2023
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Unrealized gains (losses) due to fair value changes	$	684	$	12,811	$	—	$	(1,252)	$	2,391	$	14,634
Net amortization/accretion of hedging activities	955		—		266		—		—		1,221
Net interest received (paid)	63,707		45,084		—		(10,345)		(76,196)		22,250
Price alignment amount	(3,562)		(3,612)		—		172		43		(6,959)
TOTAL	$	61,784	$	54,283	$	266	$	(11,425)	$	(73,762)	$	31,146

Table 6

	Six Months Ended 06/30/2024
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Unrealized gains (losses) due to fair value changes	$	1,305	$	20,410	$	—	$	1,243	$	1,772	$	24,730
Net amortization/accretion of hedging activities	1,655		—		321		—		193		2,169
Net interest received (paid)	158,499		103,013		—		(5,705)		(152,002)		103,805
Price alignment amount	(8,980)		(9,559)		—		152		129		(18,258)
TOTAL	$	152,479	$	113,864	$	321	$	(4,310)	$	(149,908)	$	112,446

50

Table 7

	Six Months Ended 06/30/2023
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Unrealized gains (losses) due to fair value changes	$	(4,485)	$	18,885	$	—	$	3,111	$	1,361	$	18,872
Net amortization/accretion of hedging activities	418		—		459		—		—		877
Net interest received (paid)	112,726		82,973		—		(24,238)		(144,484)		26,977
Price alignment amount	(7,240)		(7,293)		—		469		84		(13,980)
TOTAL	$	101,419	$	94,565	$	459	$	(20,658)	$	(143,039)	$	32,746

51

Average Balances and Yields: Table 8 presents average balances and annualized yields of major earning asset categories and the sources funding those earning assets (dollar amounts in thousands):

Table 8

	Three Months Ended
	06/30/2024						06/30/2023
	Average Balance		Interest Income/ Expense		Yield		Average Balance		Interest Income/ Expense		Yield
Interest-earning assets:
Interest-bearing deposits	$	2,849,201	$	38,243	5.40	%	$	2,916,614	$	36,687	5.05	%
Securities purchased under agreements to resell	2,961,374		40,123		5.45		2,573,077		32,356		5.04
Federal funds sold	4,218,769		56,945		5.43		4,190,220		52,930		5.07
Investment securities1,2	13,555,518		203,890		6.05		11,660,984		158,532		5.45
Advances1,2	45,303,516		634,504		5.63		47,703,045		613,730		5.16
Mortgage loans3,4	8,611,177		78,337		3.66		7,985,358		62,836		3.16
Other interest-earning assets	35,220		179		2.03		36,264		191		2.11
Total earning assets	77,534,775		1,052,221		5.46		77,065,562		957,262		4.98
Other non-interest-earning assets	290,933						228,830
Total assets	$	77,825,708					$	77,294,392
Interest-bearing liabilities:
Deposits	$	793,332	$	10,146	5.14	%	$	610,795	$	7,180	4.71	%
Consolidated obligations1:
Discount Notes	17,685,703		233,774		5.32		23,340,502		288,183		4.95
Bonds	54,332,298		669,999		4.96		48,175,525		539,939		4.50
Other borrowings	43,629		344		3.17		43,313		293		2.72
Total interest-bearing liabilities	72,854,962		914,263		5.05		72,170,135		835,595		4.64
Capital and other non-interest-bearing funds	4,970,746						5,124,257
Total funding	$	77,825,708					$	77,294,392
Net interest income and net interest spread5			$	137,958	0.41	%			$	121,667	0.34	%
Net interest margin6					0.72	%					0.63	%

1    Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

2    Interest income includes prepayment/yield maintenance fees.

3    Credit enhancement income payments made to PFIs are netted against interest earnings on the mortgage loans. The expense related to these payments was $1.8 million and $1.6 million for the three months ended June 30, 2024 and 2023, respectively.

4    Mortgage loans average balance includes outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

5    Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

6    Net interest margin is defined as net interest income as a percentage of average interest-earning assets.

52

Changes in the volume of interest-earning assets and the level of interest rates influence changes in net interest income, net interest spread and net interest margin. Table 9 summarizes changes in interest income and interest expense (in thousands):

Table 9

	Three Months Ended
	06/30/2024 vs. 06/30/2023
	Increase (Decrease) Due to
	Volume1,2		Rate1,2		Total
Interest Income3:
Interest-bearing deposits	$	(863)	$	2,419	$	1,556
Securities purchased under agreements to resell	5,133		2,634		7,767
Federal funds sold	363		3,652		4,015
Investment securities	27,424		17,934		45,358
Advances	(31,862)		52,636		20,774
Mortgage loans	5,181		10,320		15,501
Other assets	(5)		(7)		(12)
Total interest-earning assets	5,371		89,588		94,959
Interest Expense3:
Deposits	2,292		674		2,966
Consolidated obligations:
Discount notes	(73,634)		19,225		(54,409)
Bonds	72,881		57,179		130,060
Other borrowings	2		49		51
Total interest-bearing liabilities	1,541		77,127		78,668
Change in net interest income	$	3,830	$	12,461	$	16,291

1    Changes in interest income and interest expense not identifiable as either volume-related or rate-related have been allocated to volume and rate based upon the proportion of the absolute value of the volume and rate changes.

2    Amounts used to calculate volume and rate changes are based on numbers in dollars. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same results.

3    Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

53

Table 10 presents average balances and yields of major earning asset categories and the sources funding those earning assets (dollar amounts in thousands):

Table 10

	Six Months Ended
	06/30/2024						06/30/2023
	Average Balance		Interest Income/Expense		Yield		Average Balance		Interest Income/Expense		Yield
Interest-earning assets:
Interest-bearing deposits	$	2,765,842	$	74,244	5.40	%	$	2,820,352	$	67,384	4.82	%
Securities purchased under agreements to resell	2,970,495		80,366		5.44		2,625,967		62,638		4.81
Federal funds sold	4,114,582		111,068		5.43		4,187,790		100,286		4.83
Investment securities1,2	13,433,226		404,175		6.05		11,332,922		289,834		5.16
Advances1,2	43,827,139		1,226,491		5.63		47,124,490		1,150,324		4.92
Mortgage loans3,4	8,504,308		152,813		3.61		7,944,645		123,644		3.14
Other interest-earning assets	35,220		356		2.03		61,050		951		3.14
Total earning assets	75,650,812		2,049,513		5.45		76,097,216		1,795,061		4.76
Other non-interest-earning assets	253,907						291,515
Total assets	$	75,904,719					$	76,388,731
Interest-bearing liabilities:
Deposits	$	777,366	19,876		5.14		$	660,938	14,749		4.50
Consolidated obligations1:
Discount Notes	17,421,905		461,315		5.33		23,745,681		551,704		4.69
Bonds	52,787,438		1,293,539		4.93		46,966,842		1,001,821		4.30
Other borrowings	43,897		684		3.13		49,122		717		2.95
Total interest-bearing liabilities	71,030,606		1,775,414		5.03		71,422,583		1,568,991		4.43
Capital and other non-interest-bearing funds	4,874,113						4,966,148
Total funding	$	75,904,719					$	76,388,731
Net interest income and net interest spread5			$	274,099	0.42	%			$	226,070	0.33	%
Net interest margin6					0.73	%					0.60	%

1    Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

2    Interest income includes prepayment/yield maintenance fees.

3    Credit enhancement income payments made to PFIs are netted against interest earnings on the mortgage loans. The expense related to these payments was $3.5 million and $3.2 million for the six months ended June 30, 2024 and 2023, respectively.

4    Mortgage loans average balance includes outstanding principal for non-performing conventional loans. However, these loans no longer accrue interest.

5    Net interest spread is the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

6    Net interest margin is defined as net interest income as a percentage of average interest-earning assets.

54

Changes in the volume of interest-earning assets and the level of interest rates influence changes in net interest income, net interest spread and net interest margin. Table 11 summarizes changes in interest income and interest expense (in thousands):

Table 11

	Six Months Ended
	06/30/2024 vs. 06/30/2023
	Increase (Decrease) Due to
	Volume1,2		Rate1,2		Total
Interest Income3:
Interest-bearing deposits	$	(1,324)	$	8,184	$	6,860
Securities purchased under agreements to resell	8,763		8,965		17,728
Federal funds sold	(1,780)		12,562		10,782
Investment securities	58,591		55,750		114,341
Advances	(84,271)		160,438		76,167
Mortgage loans	9,131		20,038		29,169
Other assets	(325)		(270)		(595)
Total earning assets	(11,215)		265,667		254,452
Interest Expense3:
Deposits	2,805		2,322		5,127
Consolidated obligations:
Discount notes	(160,382)		69,993		(90,389)
Bonds	132,535		159,183		291,718
Other borrowings	(79)		46		(33)
Total interest-bearing liabilities	(25,121)		231,544		206,423
Change in net interest income	$	13,906	$	34,123	$	48,029

1    Changes in interest income and interest expense not identifiable as either volume-related or rate-related have been allocated to volume and rate based upon the proportion of the absolute value of the volume and rate changes.

2    Amounts used to calculate volume and rate changes are based on numbers in dollars. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same results.

3    Interest income/expense and average rates include the effect of associated derivatives that qualify for fair value hedge accounting treatment.

55

Net Gains (Losses) on Derivatives: Tables 12 through 15 present the earnings impact of derivatives by financial instrument as recorded in other non-interest income (in thousands):

Table 12

	Three Months Ended 06/30/2024
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Derivatives not designated as hedging instruments:
Economic hedges – unrealized gains (losses) due to fair value changes	$	—	$	(6,242)	$	—	$	(68)	$	—	$	(6,310)
Mortgage delivery commitments	—		—		(177)		—		—		(177)
Economic hedges – net interest received (paid)	1,155		7,727		—		(600)		—		8,282
Price alignment amount	(80)		(45)		—		8		—		(117)
Net gains (losses) on derivatives	1,075		1,440		(177)		(660)		—		1,678
Net gains (losses) on trading securities hedged on an economic basis with derivatives	—		3,947		—		—		—		3,947
TOTAL	$	1,075	$	5,387	$	(177)	$	(660)	$	—	$	5,625

Table 13

	Three Months Ended 06/30/2023
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Derivatives not designated as hedging instruments:
Economic hedges – unrealized gains (losses) due to fair value changes	$	4,295	$	7,302	$	—	$	171	$	78	$	11,846
Mortgage delivery commitments	—		—		(627)		—		—		(627)
Economic hedges – net interest received (paid)	981		9,195		—		(696)		(223)		9,257
Price alignment amount	(33)		(163)		—		5		9		(182)
Net gains (losses) on derivatives	5,243		16,334		(627)		(520)		(136)		20,294
Net gains (losses) on trading securities hedged on an economic basis with derivatives	—		(4,586)		—		—		—		(4,586)
TOTAL	$	5,243	$	11,748	$	(627)	$	(520)	$	(136)	$	15,708

56

Table 14

	Six Months Ended 06/30/2024
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Derivatives not designated as hedging instruments:
Economic hedges – unrealized gains (losses) due to fair value changes	$	2,545	$	(8,000)	$	—	$	(685)	$	—	$	(6,140)
Mortgage delivery commitments	—		—		(232)		—		—		(232)
Economic hedges – net interest received (paid)	2,318		15,350		—		(848)		—		16,820
Price alignment amount	(142)		(110)		—		10		—		(242)
Net gains (losses) on derivatives	4,721		7,240		(232)		(1,523)		—		10,206
Net gains (losses) on trading securities hedged on an economic basis with derivatives	—		5,672		—		—		—		5,672
TOTAL	$	4,721	$	12,912	$	(232)	$	(1,523)	$	—	$	15,878

Table 15

	Six Months Ended 06/30/2023
	Advances		Investments		Mortgage Loans		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds		Total
Derivatives not designated as hedging instruments:
Economic hedges – unrealized gains (losses) due to fair value changes	$	4,126	$	(4,121)	$	—	$	2,809	$	395	$	3,209
Mortgage delivery commitments	—		—		(604)		—		—		(604)
Economic hedges – net interest received (paid)	1,280		17,209		—		(443)		(491)		17,555
Price alignment amount	(48)		(349)		—		(11)		17		(391)
Net gains (losses) on derivatives	5,358		12,739		(604)		2,355		(79)		19,769
Net gains (losses) on trading securities hedged on an economic basis with derivatives	—		4,367		—		—		—		4,367
TOTAL	$	5,358	$	17,106	$	(604)	$	2,355	$	(79)	$	24,136

For the three months ended June 30, 2024, net gains and losses on derivatives resulted in an increase in net income of $1.7 million compared to an increase of $20.3 million for the prior year period. For the six months ended June 30, 2024, net gains and losses on derivatives resulted in an increase in net income of $10.2 million compared to an increase of $19.8 million for the prior year period. The change between periods was attributed to fair value fluctuations resulting from an increase in the level of swap index rates.

57

Tables 16 and 17 present the relationship between the hedged trading securities and the associated interest rate swaps that do not qualify for hedge accounting treatment by investment type (in thousands):

Table 16

	Three Months Ended
	06/30/2024						06/30/2023
	Gains (Losses) on Derivatives		Gains (Losses) on Trading Securities		Net		Gains (Losses) on Derivatives		Gains (Losses) on Trading Securities		Net
U.S. Treasury obligations	$	—	$	—	$	—	$	(1,816)	$	1,399	$	(417)
GSE debentures	(2,035)		1,703		(332)		639		(855)		(216)
GSE MBS	(3,015)		2,244		(771)		8,005		(5,130)		2,875
TOTAL	$	(5,050)	$	3,947	$	(1,103)	$	6,828	$	(4,586)	$	2,242

Table 17

	Six Months Ended
	06/30/2024						06/30/2023
	Gains (Losses) on Derivatives		Gains (Losses) on Trading Securities		Net		Gains (Losses) on Derivatives		Gains (Losses) on Trading Securities		Net
U.S. Treasury obligations	$	—	$	—	$	—	$	(3,747)	$	3,174	$	(573)
GSE debentures	(3,664)		3,006		(658)		(2,231)		1,168		(1,063)
GSE MBS	(2,540)		2,666		126		1,731		26		1,757
TOTAL	$	(6,204)	$	5,672	$	(532)	$	(4,247)	$	4,368	$	121

For additional detail regarding gains and losses on trading securities, see Table 18 and related discussion under this Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations.”

See Tables 37 and 38 under Item 3 – “Quantitative and Qualitative Disclosures About Market Risk” for additional detail regarding notional and fair value amounts of derivative instruments.

Net Gains (Losses) on Trading Securities: Our trading portfolio is comprised primarily of fixed rate GSE debentures and fixed rate multifamily GSE MBS, with a small percentage of variable rate single-family GSE MBS. Periodically, we also invest in short-term securities and U.S. Treasury obligations classified as trading. In general, the fixed rate securities are related to economic hedges in the form of interest rate swaps that convert fixed rates to variable rates on the fixed rate securities and the related economic hedges. The fair values of the fixed rate GSE debentures are affected by changes in intermediate term interest rates and credit spreads and are swapped on an economic basis to the Secured Overnight Financing Rate (SOFR). The fair values of the fixed rate multifamily GSE MBS are affected by changes in mortgage rates and credit spreads are swapped on an economic basis to SOFR. The fair values of the U.S. Treasury obligations are affected by changes in intermediate term Treasury rates and swapped on an economic basis to the Overnight Index Swap rate (OIS) or SOFR.

58

All unrealized gains and losses related to trading securities are recorded in other income (loss) as net gains (losses) on trading securities; however, only gains and losses relating to trading securities that are related to economic hedges are included in Tables 16 and 17. Unrealized gains (losses) fluctuate as the fair value of our trading portfolio fluctuates. There are a number of factors that can impact the fair value of a trading security including the movement in interest rates, changes in credit spreads, the passage of time, and changes in price volatility. Table 18 presents the major components of the net gains (losses) on trading securities (in thousands):

Table 18

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Trading securities not hedged:
U.S. obligation MBS and GSE MBS	$	(9)	$	(15)	$	57	$	16
Total trading securities not hedged	(9)		(15)		57		16
Trading securities hedged on an economic basis with derivatives:
U.S. Treasury obligations	—		1,399		—		3,173
GSE debentures	1,703		(855)		3,006		1,168
GSE MBS	2,244		(5,130)		2,666		26
Total trading securities hedged on an economic basis with derivatives	3,947		(4,586)		5,672		4,367
TOTAL	$	3,938	$	(4,601)	$	5,729	$	4,383

The unrealized gains on the securities in the trading portfolio for the current periods reflect the changes in term Treasury and mortgage rates relative to the prevailing yields at the end of the prior year periods. In addition to interest rates and credit spreads, the value of these securities is affected by price convergence to par which results in a decrease in their current premium price (i.e., time decay).

Other Expenses: Other expenses, which includes compensation and benefits, other operating expenses and voluntary housing and community investment program contributions, increased $5.9 million and $7.2 million for the three and six months ended June 30, 2024, respectively. The increase in both periods is primarily a result of $3.9 million in voluntary grant programs awarded in partnership with FHLBank members to support affordable housing and community development initiatives throughout Colorado, Kansas, Nebraska, and Oklahoma. These voluntary contributions are in addition to the ten percent of earnings that are required to fund affordable housing initiatives. Compensation and benefits expense also increased due to hiring for new and open positions and higher incentive accruals based on incentive plan goal attainment.

59

Financial Condition

Overall: Table 19 presents the percentage concentration of the major components of our Statements of Condition:

Table 19

	Component Concentration
	06/30/2024		12/31/2023
Assets:
Cash and due from banks	—	%	0.1	%
Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold	13.2		10.1
Investment securities	17.0		17.2
Advances	58.0		60.6
Mortgage loans, net	10.9		11.1
Other assets	0.9		0.9
Total assets	100.0	%	100.0	%
Liabilities:
Deposits	1.1	%	1.0	%
Consolidated obligation discount notes, net	22.8		27.7
Consolidated obligation bonds, net	70.3		65.4
Other liabilities	0.6		0.7
Total liabilities	94.8		94.8
Capital:
Capital stock outstanding	3.4		3.5
Retained earnings	1.9		1.9
Accumulated other comprehensive income (loss)	(0.1)		(0.2)
Total capital	5.2		5.2
Total liabilities and capital	100.0	%	100.0	%

60

Table 20 presents changes in the major components of our Statements of Condition (dollar amounts in thousands):

Table 20

	Increase (Decrease) in Components
	06/30/2024 vs. 12/31/2023
	Dollar Change		Percent Change
Assets:
Cash and due from banks	$	488	1.9	%
Interest-bearing deposits, securities purchased under agreements to resell and Federal funds sold	2,996,659		39.6
Investment securities	631,835		4.9
Advances	774,978		1.7
Mortgage loans, net	367,184		4.4
Other assets	36,908		5.8
Total assets	$	4,808,052	6.4	%
Liabilities:
Deposits	$	64,872	8.6	%
Consolidated obligation discount notes, net	(2,533,436)		(12.2)
Consolidated obligation bonds, net	7,011,667		14.3
Other liabilities	20,892		4.1
Total liabilities	4,563,995		6.4
Capital:
Capital stock outstanding	128,316		4.9
Retained earnings	110,511		7.9
Accumulated other comprehensive income (loss)	5,230		(4.4)
Total capital	244,057		6.3
Total liabilities and capital	$	4,808,052	6.4	%

Total assets increased between periods, from $74.9 billion at December 31, 2023 to $79.8 billion at June 30, 2024, driven by the $3.6 billion increase in short- and long-term investments between periods and an $0.8 billion increase in advances. Asset composition remained relatively consistent from December 31, 2023 to June 30, 2024, with a decrease in advance balances from 60.6 percent of total assets at December 31, 2023 to 58.0 percent at June 30, 2024. Federal funds sold contributed to the increase in short-term investments to 13.2 percent of total assets as of June 30, 2024 compared to 10.1 percent as of December 31, 2023. Total liabilities increased $4.6 billion from December 31, 2023 to June 30, 2024, which corresponded to the increase in assets, but the composition of debt shifted between periods. Consolidated obligation bonds and discount notes represented 70.3 percent and 29.7 percent of total consolidated obligations, respectively, at December 31, 2023 compared to 75.5 percent and 24.5 percent at June 30, 2024. This composition shift is mostly due to an increase in floating rate bonds and a decrease in discount notes. Total capital increased $0.2 billion, or 6.3 percent, from December 31, 2023 to June 30, 2024 due primarily to an increase in required capital stock.

61

Advances: Advances are one of the primary ways we fulfill our mission of providing liquidity to our members and constituted the largest asset on our balance sheet at June 30, 2024 and December 31, 2023. Advance par value increased by 1.9 percent, from $45.7 billion at December 31, 2023 to $46.5 billion at June 30, 2024 (see Table 21). During the second quarter of 2024, insurance companies and community banks increased advance borrowing, while some large financial institutions replaced other wholesale funding with advances. The composition of the advance portfolio remains concentrated in advances that either reprice or mature on a relatively short-term basis; line of credit and adjustable rate advances increased to 62.5 percent of the portfolio at June 30, 2024 compared to 39.0 percent as of December 31, 2023. Within the population of advances that reprice or mature on a relatively short-term basis, composition has shifted from short-term fixed rate advances to adjustable rate advances.

As of June 30, 2024 and December 31, 2023, 63.1 percent and 65.1 percent, respectively, of our members carried outstanding advance balances. Advance balances may be impacted by rising interest rates intended to curb inflationary pressures and the related inflationary effects on member balance sheets, including decreased loan demand and the inability to grow or retain deposit balances. Members also have access to other wholesale funding sources, which may impact the demand for advances on the basis of relative cost.

We elect to swap a significant portion of advances with longer maturities to short-term indices to synthetically create adjustable rate advances to manage interest rate risk. When coupled with the volume of our short-term advances, advances that effectively re-price at least every three months represent 96.1 percent and 95.9 percent of our total advance portfolio as of June 30, 2024 and December 31, 2023, respectively. We anticipate continuing the practice of swapping advances with longer maturities to short-term indices.

62

Table 21 summarizes advances outstanding by product (dollar amounts in thousands). An individual advance may be reclassified to a different product type between periods due to the occurrence of a triggering event such as the passing of a call date (i.e., from fixed rate callable advance to regular fixed rate advance) or conversion of an advance (i.e., from fixed rate convertible advance to adjustable rate callable advance).

Table 21

	06/30/2024				12/31/2023
	Dollar		Percent		Dollar		Percent
Line of Credit:
Overnight line of credit1	$	13,571,467	29.2	%	$	11,747,448	25.7	%
Adjustable rate:
Standard advance products:
Regular adjustable rate advances	14,058,250		30.2		4,418,750		9.7
Adjustable rate callable advances	1,399,400		3.0		1,616,400		3.5
Standard housing and community development advances:
Adjustable rate callable advances	21,535		0.1		22,262		0.1
Total adjustable rate term advances	15,479,185		33.3		6,057,412		13.3
Fixed rate:
Standard advance products:
Short-term fixed rate advances2	1,009,311		2.2		12,313,627		27.0
Regular fixed rate advances	12,591,936		27.1		12,359,319		27.1
Fixed rate callable advances	48,302		0.1		68,402		0.2
Fixed rate putable advances	2,780,950		6.0		2,071,800		4.5
Fixed rate convertible advances	105,900		0.2		113,400		0.3
Standard housing and community development advances:
Regular fixed rate advances	256,542		0.6		291,064		0.6
Fixed rate callable advances	458		—		458		—
Total fixed rate term advances	16,793,399		36.2		27,218,070		59.7
Amortizing:
Standard advance products:
Fixed rate amortizing advances	481,892		1.0		415,568		0.9
Fixed rate callable amortizing advances	17,429		—		18,367		—
Standard housing and community development advances:
Fixed rate amortizing advances	187,146		0.3		202,036		0.4
Fixed rate callable amortizing advances	13,165		—		11,401		—
Total amortizing advances	699,632		1.3		647,372		1.3
TOTAL PAR VALUE	$	46,543,683	100.0	%	$	45,670,302	100.0	%

1    Represents fixed rate line of credit advances with daily maturities.

2    Represents non-amortizing, non-prepayable loans with terms to maturity from 3 to 93 days.

63

Table 22 presents information on our five largest borrowers (dollar amounts in thousands). We do not expect to incur any credit losses on these advances based on our rights to collateral with an estimated fair value in excess of the book value of these advances. We have not experienced a credit loss on an advance since the inception of FHLBank.

Table 22

Borrower Name	06/30/2024				12/31/2023
	Advance Par Value		Percent of Total Advance Par		Advance Par Value		Percent of Total Advance Par
MidFirst Bank	$	10,840,000	23.3	%	$	9,585,000	21.0	%
BOKF, N.A.	6,500,000		14.0		7,675,000		16.8
United of Omaha Life Insurance Co.	2,867,135		6.2		2,278,283		5.0
First United Bank & Trust	2,692,833		5.8		1,881,516		4.1
Capitol Federal Savings Bank	2,293,074		4.9		2,375,410		5.2
TOTAL	$	25,193,042	54.2	%	$	23,795,209	52.1	%

Table 23 presents the accrued interest income associated with the five borrowers with the highest interest income for the periods presented (dollar amounts in thousands). If the borrower was not one of our top five borrowers for whom we accrued the highest amount of interest income for one of the periods presented, the applicable columns are left blank.

Table 23

	Three Months Ended
	06/30/2024				06/30/2023
Borrower Name	Advance Income		Percent of Total Advance Income1		Advance Income		Percent of Total Advance Income1
MidFirst Bank	$	140,283	25.0	%	$	162,117	29.3	%
BOKF, N.A.	99,259		17.7		66,915		12.1
United of Omaha Life Insurance Co.	33,208		5.9		19,292		3.5
Security Life of Denver Insurance Co.	30,351		5.4		19,598		3.5
First United Bank & Trust Co.	26,687		4.8
Capitol Federal Savings Bank					29,444		5.3
TOTAL	$	329,788	58.8	%	$	297,366	53.7	%

1    Total advance income by borrower excludes: (1) changes in unrealized gains (losses) from qualifying fair value hedging relationships; (2) net interest settlements on derivatives hedging the advances; and (3) prepayment fees received.

64

Table 24 presents accrued interest income associated with the five borrowers with the highest interest income for the periods presented (dollar amounts in thousands). If the borrower was not one of our top five borrowers for whom we accrued the highest amount of interest income for one of the periods presented, the applicable columns are left blank.

Table 24

	Six Months Ended
	06/30/2024				06/30/2023
Borrower Name	Advance Income		Percent of Total Advance Income1		Advance Income		Percent of Total Advance Income1
MidFirst Bank	$	266,545	24.8	%	$	298,697	28.5	%
BOKF, N.A.	193,896		18.0		119,190		11.4
United of Omaha Life Insurance Co.	58,321		5.4		36,221		3.5
Security Life of Denver Insurance Co.	55,126		5.1		36,476		3.5
First United Bank & Trust Co.	48,696		4.5
Capitol Federal Savings Bank					62,310		5.9
TOTAL	$	622,584	57.8	%	$	552,894	52.8	%

1    Total advance income by borrower excludes: (1) changes in unrealized gains (losses) from qualifying fair value hedging relationships; (2) net interest settlements on derivatives hedging the advances; and (3) prepayment fees received.

MPF Program: The MPF Program is a secondary mortgage market alternative for our members, predominately utilized by the smaller institutions in our district. We participate in the MPF Program through the MPF Provider, a division of FHLBank Chicago. Under the MPF Program, participating members can sell us conventional and government residential mortgage loans.

The mortgage loan portfolio increased slightly between periods, from $8.4 billion at December 31, 2023 to $8.7 billion at June 30, 2024. Mortgage rates have remained elevated, which has reduced origination volume and refinancing incentive for borrowers and slowed prepayments in recent periods, although purchase volume has continued to exceed principal repayments. Net mortgage loans as a percentage of total assets decreased, from 11.1 percent as of December 31, 2023 to 10.9 percent as of June 30, 2024. The principal amount of new mortgage loans acquired and held on our balance sheet from our PFIs during the six months ended June 30, 2024 was $0.8 billion.

Future growth in the MPF portfolio is a function of asset size and composition, most notably the balance of advances, and capital level, as growth in advances impacts our total assets and capital level, which allows the balance of mortgage loans to increase while maintaining our targeted Acquired Member Assets (AMA) risk tolerance. The other factors that may influence future growth in our mortgage loans held for portfolio include: (1) the level of interest rates and the shape of the yield curve; (2) the mortgage loan origination volume of current PFIs; (3) refinancing activity; (4) the relative competitiveness of MPF pricing to the prices offered by other buyers of residential mortgage loans; (5) a PFI's level of excess risk-based capital relative to the required risk-based capital charge associated with the PFI's credit enhancement obligations on MPF mortgage loans; and (6) the number of new and delivering PFIs.

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Table 25 presents the outstanding balances of mortgage loans sold to us, net of participations, from our top five PFIs and the percentage of those loans to total mortgage loans outstanding (dollar amounts in thousands).

Table 25

	06/30/2024				12/31/2023
	Mortgage Loan Balance		Percent of Total Mortgage Loans		Mortgage Loan Balance		Percent of Total Mortgage Loans
Farmers Bank & Trust	$	423,048	4.9	%	$	338,745	4.1	%
Fidelity Bank	389,461		4.5		366,733		4.4
Tulsa Teachers Credit Union	301,057		3.5		304,925		3.7
West Gate Bank	282,557		3.3		267,101		3.2
Community National Bank & Trust	227,358		2.6		226,466		2.7
TOTAL	$	1,623,481	18.8	%	$	1,503,970	18.1	%

Two indications of credit quality are scores provided by Fair Isaac Corporation (FICO®) and loan-to-value (LTV) ratios. FICO is a widely used credit industry indicator to assess borrower credit quality with scores typically ranging from 300 to 850 with the low end of the scale indicating greater credit risk. The MPF Program requires a minimum FICO score of 620 for all conventional loans. LTV is a primary variable in credit performance. Generally speaking, a higher LTV ratio means greater risk of loss in the event of a default and also means higher loss severity. The weighted average FICO score and LTV recorded at origination for conventional mortgage loans outstanding as of June 30, 2024 was 750 and 74.8 percent, respectively. See Note 5 of the Notes to Financial Statements under Part I, Item 1 for additional information regarding credit quality indicators.

Allowance for Credit Losses on Mortgage Loans Held for Portfolio – The allowance for credit losses on mortgage loans decreased $1.2 million from December 31, 2023 to June 30, 2024. Delinquencies of conventional loans remained at low levels relative to the portfolio, at 0.8 percent of the amortized cost of total conventional loans at June 30, 2024 and December 31, 2023. We believe that policies and procedures are in place to effectively manage the credit risk on mortgage loans held for portfolio. See Note 5 of the Notes to Financial Statements under Part I, Item 1 for a summary of the allowance for credit losses on mortgage loans as well as payment status and other delinquency statistics for our mortgage loan portfolio.

Investments: Investments are used to manage interest rate and duration risk, enhance income, and provide liquidity and primary and secondary market support for the U.S. housing securities market. Total investments increased $3.6 billion from December 31, 2023 to June 30, 2024 driven by increases in Federal funds sold, interest bearing deposits, MBS securities, and U.S. treasury obligations.

Short-term Investments – Short-term investments, which are used to provide funds for our members, maintain liquidity, meet other financial obligations such as debt servicing, and enhance income, consist primarily of reverse repurchase agreements, interest-bearing deposits, Federal funds sold, and certificates of deposit.

Within our portfolio of short-term investments, counterparty credit risk arises from unsecured exposures. Our short-term unsecured credit investments have maturities generally ranging between overnight and three months and may include the following types:

•Interest-bearing deposits. Unsecured deposits that earn interest.

•Federal funds sold. Unsecured loans of reserve balances at the Federal Reserve Banks between financial institutions that are made on either an overnight or term basis, but typically made on an overnight basis.

•Certificates of deposit. Unsecured negotiable promissory notes issued by banks and payable to the bearer at maturity.

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Table 26 presents the carrying value of our unsecured credit exposure with private counterparties by investment type (in thousands). The unsecured investment credit exposure presented may not reflect the average or maximum exposure during the period as the balances presented reflect the balances at period end.

Table 26

	06/30/2024		12/31/2023
Interest-bearing deposits	$	2,339,114	$	1,604,423
Federal funds sold	5,292,000		2,080,000
TOTAL UNSECURED INVESTMENT CREDIT EXPOSURE1	$	7,631,114	$	3,684,423

1    Excludes unsecured investment credit exposure to U.S. government, U.S. government agencies, instrumentalities, GSEs and supranational entities and does not include related accrued interest.

We actively monitor our credit exposures and the credit quality of our counterparties, including an assessment of each counterparty’s financial performance, capital adequacy, sovereign support and the current market perceptions of the counterparties. General macro-economic, political and market conditions may also be considered when deciding on unsecured exposure. As a result, we may further limit existing exposures.

We manage our credit risk by conducting pre-purchase credit due diligence and ongoing surveillance described previously and generally investing in unsecured investments of highly-rated counterparties. From time to time, we extend unsecured credit to qualified members by investing in overnight Federal funds issued by them. As of June 30, 2024, all unsecured investments were rated as investment grade based on NRSROs (see Table 29).

Table 27 presents the amount of our unsecured investment credit exposure by remaining contractual maturity and by the domicile of the counterparty or the domicile of the counterparty’s parent for U.S. branches and agency offices of foreign commercial banks as of June 30, 2024 (in thousands). We also mitigate the credit risk on investments by purchasing instruments that have short-term maturities.

Table 27

Domicile of Counterparty	Overnight
Domestic	$	2,406,114
U.S. Branches and agency offices of foreign commercial banks:
Canada	2,300,000
Australia	1,150,000
Germany	700,000
Finland	575,000
Netherlands	250,000
United Kingdom	250,000
Total U.S. Branches and agency offices of foreign commercial banks	5,225,000
TOTAL UNSECURED INVESTMENT CREDIT EXPOSURE1	$	7,631,114

1    Excludes unsecured investment credit exposure to U.S. government, U.S. government agencies, instrumentalities, GSEs and supranational entities, and does not include related accrued interest.

Unsecured credit exposure continues to be conservatively placed. In addition, we anticipate continued future investment in reverse repurchase agreements, which are secured investments. To enhance our liquidity position, we classify our unsecured short-term investment securities in our trading portfolio, which allows us to sell these securities if necessary.

Long-term investments – Our long-term investment portfolio consists primarily of GSE MBS and U.S. Treasury obligations. Our Risk Management Policy (RMP) restricts the acquisition of investments to highly rated long-term securities. Generally, fixed rate U.S. Treasury obligations are either classified as trading securities and economically swapped to variable rates or classified as available-for-sale securities and swapped to variable rates in qualifying fair value hedging relationships. In addition to serving as excellent collateral, U.S. Treasury obligations also help satisfy regulatory liquidity requirements. We also purchase fixed rate securities for duration and interest rate risk management.

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According to FHFA regulation, no additional MBS purchases may be made if the aggregate value of our MBS exceeds 300 percent of our regulatory capital. Further, quarterly increases in holdings of MBS are restricted to no more than 50 percent of regulatory capital. As of June 30, 2024, the aggregate value of our MBS portfolio represented 245 percent of our regulatory capital. We are below our regulatory threshold primarily due to an increase in regulatory capital despite increased MBS purchases in recent periods. We expect to be below our regulatory limit in the near-term but continue to remain opportunistic about future MBS purchases.

Major Security Types – Securities for which we have the ability and intent to hold to maturity are classified as held-to-maturity securities and recorded at carrying value, which is the net total of par, premiums, and discounts. We classify certain investments as trading or available-for-sale securities and carry them at fair value, generally for liquidity purposes, to provide a fair value offset to the gains (losses) on the interest rate swaps associated with swapped securities, and for asset/liability management purposes. Liquidity or other asset/liability management strategies may require periodic sale of these securities but they are not actively traded; most often, they are held until maturity or call date. Securities acquired as asset/liability management tools to manage duration risk, which may be sold when the duration exposure is within risk tolerances, are classified as trading or available-for-sale securities. Changes in the fair values of investments classified as trading are recorded through other income and the original premiums/discounts on these investments are not amortized.

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See Note 3 of the Notes to Financial Statements under Part I, Item 1 of this quarterly report for additional information on our different investment classifications including the types of securities held under each classification. The carrying values by contractual maturities of our investments as of June 30, 2024 are summarized by security type in Table 28 (dollar amounts in thousands) with certain weighted average yield metrics along with carrying values as of December 31, 2023. Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or yield maintenance fees.

Table 28

	06/30/2024														12/31/2023
	Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years			Carrying Value		Carrying Value
Trading securities:
GSE debentures	$	241,444		$	—		$	—		$	—		$	241,444	$	288,438
GSE MBS	430,881			161,384			5,885			4,148			602,298		620,170
Total trading securities	672,325			161,384			5,885			4,148			843,742		908,608
Available-for-sale securities:
U.S. Treasury obligations	—			3,173,580			—			—			3,173,580		2,937,868
U.S. obligation MBS	—			—			—			88,846			88,846		107,535
GSE MBS	355,299			2,150,041			3,579,237			3,119,954			9,204,531		8,708,050
Total available-for-sale securities	355,299			5,323,621			3,579,237			3,208,800			12,466,957		11,753,453
Held-to-maturity securities:
State or local housing agency obligations	—			—			34,790			—			34,790		35,855
GSE MBS	—			40,778			1,733			170,692			213,203		228,941
Total held-to-maturity securities	—			40,778			36,523			170,692			247,993		264,796
Total securities	1,027,624			5,525,783			3,621,645			3,383,640			13,558,692		12,926,857
Interest-bearing deposits	2,339,648			—			—			—			2,339,648		1,604,989
Federal funds sold	5,292,000			—			—			—			5,292,000		2,080,000
Securities purchased under agreements to resell	2,925,000			—			—			—			2,925,000		3,875,000
TOTAL INVESTMENTS	$	11,584,272		$	5,525,783		$	3,621,645		$	3,383,640		$	24,115,340	$	20,486,846
Weighted average yields1:
Available-for-sale securities	2.26		%	2.98		%	4.01		%	4.91		%
Held-to-maturity securities	—		%	3.15		%	2.68		%	1.72		%

1    The weighted average yields are calculated as the sum of each debt security using the period end balances multiplied by the coupon rate adjusted by the impact of amortization and accretion of premiums and discounts, divided by the total debt securities in the applicable portfolio. The result is then multiplied by 100 to express it as a percentage.

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Securities Ratings – Tables 29 and 30 present the carrying value of our investments by rating as of June 30, 2024 and December 31, 2023 (in thousands). The ratings presented are the lowest ratings available for the security, issuer, or counterparty based on NRSROs, where available. Some counterparties for collateralized overnight borrowing are not rated by an NRSRO because they are not issuers of debt or are otherwise not required to be rated by an NRSRO. We also utilize other credit quality factors when analyzing potential investments including, but not limited to, collateral performance, marketability, asset class or sector considerations, local and regional economic conditions, and/or the financial health of the underlying issuer.

Table 29

	06/30/2024
	Carrying Value1
	Investment Grade						Unrated		Total
	Triple-A		Double-A		Single-A
Interest-bearing deposits2	$	—	$	534	$	2,339,114	$	—	$	2,339,648
Federal funds sold2	—		1,725,000		3,567,000		—		5,292,000
Securities purchased under agreements to resell3	—		250,000		—		2,675,000		2,925,000
Investment securities:
Non-mortgage-backed securities:
U.S. Treasury obligations	—		3,173,580		—		—		3,173,580
GSE debentures	—		241,444		—		—		241,444
State or local housing agency obligations	34,790		—		—		—		34,790
Total non-mortgage-backed securities	34,790		3,415,024		—		—		3,449,814
Mortgage-backed securities:
U.S. obligation MBS	—		88,846		—		—		88,846
GSE MBS	—		10,020,032		—		—		10,020,032
Total mortgage-backed securities	—		10,108,878		—		—		10,108,878
TOTAL INVESTMENTS	$	34,790	$	15,499,436	$	5,906,114	$	2,675,000	$	24,115,340

1    Investment amounts represent the carrying value and do not include related accrued interest receivable of $46.4 million at June 30, 2024.

2    Amounts include unsecured credit exposure with overnight maturities.

3    Amounts represent collateralized overnight borrowings.

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Table 30

	12/31/2023
	Carrying Value1
	Investment Grade						Unrated		Total
	Triple-A		Double-A		Single-A
Interest-bearing deposits2	$	87	$	566	$	1,604,336	$	—	$	1,604,989
Federal funds sold2	—		—		2,080,000		—		2,080,000
Securities purchased under agreements to resell3	—		—		1,500,000		2,375,000		3,875,000
Investment securities:
Non-mortgage-backed securities:
U.S. Treasury obligations	—		2,937,868		—		—		2,937,868
GSE debentures	—		288,438		—		—		288,438
State or local housing agency obligations	35,855		—		—		—		35,855
Total non-mortgage-backed securities	35,855		3,226,306		—		—		3,262,161
Mortgage-backed securities:
U.S. obligation MBS	—		107,535		—		—		107,535
GSE MBS	—		9,557,161		—		—		9,557,161
Total mortgage-backed securities	—		9,664,696		—		—		9,664,696
TOTAL INVESTMENTS	$	35,942	$	12,891,568	$	5,184,336	$	2,375,000	$	20,486,846

1    Investment amounts represent the carrying value and do not include related accrued interest receivable of $39.9 million at December 31, 2023.

2    Amounts include unsecured credit exposure with overnight maturities.

3    Amounts represent collateralized overnight borrowings.

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Table 31 details interest rate payment terms for the carrying value of our investment securities as of June 30, 2024 and December 31, 2023 (in thousands). We generally manage the interest rate risk associated with our fixed rate trading and available-for-sale securities by entering into interest rate swaps that convert the investment's fixed rate to a variable rate index (see Tables 37 and 38 under Part I, Item 3 – “Quantitative and Qualitative Disclosures About Market Risk).”

Table 31

	06/30/2024		12/31/2023
Trading securities:
Non-mortgage-backed securities:
Fixed rate	$	241,444	$	288,438
Non-mortgage-backed securities	241,444		288,438
Mortgage-backed securities:
Fixed rate	592,265		609,139
Variable rate	10,033		11,031
Mortgage-backed securities	602,298		620,170
Total trading securities	843,742		908,608
Available-for-sale securities:
Non-mortgage-backed securities:
Fixed rate	3,173,578		2,937,868
Non-mortgage-backed securities	3,173,578		2,937,868
Mortgage-backed securities:
Fixed rate	4,285,686		3,727,446
Variable rate	5,007,693		5,088,139
Mortgage-backed securities	9,293,379		8,815,585
Total available-for-sale securities	12,466,957		11,753,453
Held-to-maturity securities:
Non-mortgage-backed securities:
Variable rate	34,790		35,855
Non-mortgage-backed securities	34,790		35,855
Mortgage-backed securities:
Fixed rate	19,590		23,650
Variable rate	193,613		205,291
Mortgage-backed securities	213,203		228,941
Total held-to-maturity securities	247,993		264,796
TOTAL	$	13,558,692	$	12,926,857

Deposits: Deposits are generally an insignificant source of funding. Total deposits increased $64.9 million from December 31, 2023 to June 30, 2024 primarily due to an increase in demand and overnight deposits. The level of deposits is driven by member demand for deposit products, which in turn is a function of the liquidity position of members. Factors that influence deposit levels include turnover in member investment and loan portfolios, changes in members’ customer deposit balances, changes in members’ demand for liquidity, and our deposit pricing as compared to other short-term market rates. Fluctuations in deposits have little impact on our ability to obtain liquidity. Specific disclosures about deposits that exceed Federal Deposit Insurance Corporation (FDIC) limits have been omitted as deposits are not insured by the FDIC. Historically, we have had stable and ready access to the capital markets through consolidated obligations and can replace any reduction in deposits with similarly or even lower priced borrowings.

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Consolidated Obligations: Consolidated obligations are the joint and several debt obligations of the FHLBanks and consist of bonds and discount notes. Consolidated obligations represent the primary source of liabilities we use to fund advances, mortgage loans and investments. As noted under Part I, Item 3 – “Quantitative and Qualitative Disclosures About Market Risk,” we use debt with a variety of maturities and option characteristics to manage our interest rate risk profile and maintain sufficient levels of liquidity. We make use of derivative transactions, executed in conjunction with specific consolidated obligation debt issues, to synthetically structure funding terms and costs.

Table 32 presents the carrying value of consolidated obligation bonds and discounts notes as of June 30, 2024 and December 31, 2023 (in thousands).

Table 32

	06/30/2024		12/31/2023
Bonds:
Par value	$	56,386,910	$	49,409,390
Premiums	11,423		12,874
Discounts	(2,473)		(3,108)
Concession fees	(11,970)		(11,424)
Hedging adjustments	(324,734)		(360,243)
Total bonds	56,059,156		49,047,489
Discount Notes:
Par value	18,418,401		20,903,145
Discounts	(203,342)		(157,163)
Concession fees	(581)		(420)
Hedging adjustments	(4,665)		(2,313)
Total discount notes	18,209,813		20,743,249
TOTAL	$	74,268,969	$	69,790,738

Total consolidated obligations increased $4.5 billion, or 6.4 percent, from December 31, 2023 to June 30, 2024 aligning with the increase in total assets. The distribution between consolidated obligation bonds and discount notes shifted between periods, from 70.3 percent and 29.7 percent, respectively, at December 31, 2023 compared to 75.5 percent and 24.5 percent at June 30, 2024, respectively, mostly due to an increase in floating rate bonds and a decrease in discount notes. Callable bonds are typically fixed or structured rate debt that pay higher coupons to investors because of the optionality held by the issuer. When a swap is called by the counterparty in a swapped callable bond transaction, we call the hedged bond. Unswapped callable bonds provide us with options to replace the bonds at lower costs if interest rates decline. Our funding mix generally is driven by asset composition, but we may also shift our debt composition as a result of market conditions that impact the cost of unswapped consolidated obligations and the cost of consolidated obligations swapped or indexed to SOFR or OIS. For additional information on market trends impacting the cost of issuing debt, see “Financial Market Trends”, “Liquidity and Capital Resources – Liquidity – Sources of Liquidity” and “Risk Management – Interest Rate Risk Management” under this Item 2.

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Liquidity and Capital Resources

Liquidity: We maintain high levels of liquidity to achieve our mission of serving as a dependable and economical funding source for our members and housing associates. As part of fulfilling our mission, we also maintain minimum liquidity requirements in accordance with certain FHFA regulations and guidelines and in accordance with policies established by management and the board of directors. Our business model enables us to manage the levels of our assets, liabilities, and capital in response to changes in member credit demand, membership composition, and market conditions. As such, assets and liabilities utilized for liquidity purposes can vary significantly in the normal course of business due to the amount and timing of cash flows as a result of these factors.

Sources and Uses of Liquidity – A primary source of our liquidity is the issuance of consolidated obligations. The capital markets traditionally have treated FHLBank obligations as U.S. government agency debt. As a result, even though the U.S. government does not guarantee FHLBank debt, we generally have comparatively stable access to funding at relatively favorable spreads to U.S. Treasury rates. We are primarily and directly liable for our portion of consolidated obligations (i.e., those obligations issued on our behalf). In addition, we are jointly and severally liable with the other FHLBanks for the payment of principal and interest on the consolidated obligations of all FHLBanks. Our uses of liquidity primarily include repaying called and maturing consolidated obligations for which we are the primary obligor, issuing advances, and purchasing investments and mortgage loans. We also use liquidity to repay member deposits, pledge collateral to derivative counterparties, and redeem or repurchase capital stock. Our other sources of liquidity include our short-term liquidity portfolio, deposit inflows, repayments of advances and mortgage loans, maturing investments, trading and available-for-sale investments, other secured and unsecured borrowings, interest income, or the sale of unencumbered assets.

During the six months ended June 30, 2024, proceeds (net of premiums and discounts) from the issuance of bonds and discount notes were $35.9 billion and $276.2 billion, respectively, compared to $30.0 billion and $208.0 billion for the six months ended June 30, 2023. The difference between the proceeds from bonds and discount notes reflects the cumulative effect of using short-term discount notes to fund short-term advances and our short-term liquidity portfolio. High demand for Agency debt has kept the spread to U.S. Treasury obligations relatively narrow. Our ability to issue debt remains robust, but volatility in the capital markets can impact the demand for and cost of debt issued by the FHLBanks.

Our short-term liquidity portfolio consists of cash, short-term investments, and long-term investments with remaining maturities of one year or less. Short-term investments may include Federal funds sold, interest-bearing demand deposits, reverse repurchase agreements, and certificates of deposit. The short-term liquidity portfolio increased between periods, at $8.0 billion as of December 31, 2023 and $11.6 billion as of June 30, 2024. The maturities of our short-term investments are structured to provide periodic cash flows to support our ongoing liquidity needs. To enhance our liquidity position, short-term investment securities (i.e., marketable certificates of deposit) are also classified as trading when held so that they can be readily sold should liquidity be needed immediately.

Investment securities on our balance sheet are also a source of potential liquidity. U.S. Treasury obligations, GSE debentures, and GSE MBS can be sold or pledged as collateral for financing in the securities repurchase agreement market. In addition to balance sheet sources of liquidity, we have established lines of credit with numerous counterparties in the Federal funds market as well as with the other FHLBanks. We expect to maintain a sufficient level of liquidity for the foreseeable future.

During the six months ended June 30, 2024, advance disbursements totaled $141.9 billion compared to $419.8 billion for the prior year period which reflects the decrease in member utilization of advances compared to the prior year period, especially short-term advances, due to declines in on-balance sheet liquidity needs, as previously discussed. Investment purchases (excluding overnight investments) totaled $1.2 billion in the six months ended June 30, 2024 compared to $2.0 billion in the same period in 2023. Payments on maturing and retired consolidated obligation bonds and discount notes were $28.9 billion and $278.7 billion, respectively, for the six months ended June 30, 2024 compared to $24.5 billion and $212.0 billion for the prior year period.

Capital: Total capital increased $244.1 million, or 6.3 percent, from December 31, 2023 to June 30, 2024 due to an increase in capital stock (see Table 33) and retained earnings in excess of dividends paid. We strive to manage our average capital ratio above our minimum regulatory and RMP requirements in an effort to ensure that we have the ability to issue additional consolidated obligations should the need arise. Excess capital capacity ensures we are able to meet the liquidity needs of our members and/or repurchase excess stock either upon the submission of a redemption request by a member or at our discretion for balance sheet or capital management purposes.

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Our activity-based stock purchase requirements are consistent with our cooperative structure; members’ stock ownership requirements and the dollar amount of dividends paid to members generally increase as their activities with us increase. To the extent that a member’s asset-based stock purchase requirement is insufficient to cover the member’s activity-based stock purchase requirement, the member is required to purchase Class B Common Stock. We believe the value of our products and services is enhanced by dividend yields. Factors that affect members’ willingness to enter into activity with us and purchase additional required activity-based stock include, but are not limited to, our dividend rates, the risk-based capital weighting of our capital stock, and alternative investment or borrowing opportunities available to our members.

Table 33 provides a summary of member capital requirements under our current capital plan as of June 30, 2024 and December 31, 2023 (in thousands):

Table 33

Requirement	06/30/2024		12/31/2023
Asset-based (Class A Common Stock only)	$	187,101	$	184,901
Activity-based (additional Class B Common Stock)1	2,234,149		2,182,176
Total Required Stock2	2,421,250		2,367,077
Excess Stock (Class A and B Common Stock)	318,191		240,853
Total Regulatory Capital Stock2	$	2,739,441	$	2,607,930
Activity-based Requirements:
Advances3	$	2,089,931	$	2,050,911
Letters of credit	17,864		18,122
AMA assets (mortgage loans)4	258,345		247,490
Total Activity-based Requirement	2,366,140		2,316,523
Asset-based Requirement (Class A Common Stock) not supporting member activity1	55,110		50,554
Total Required Stock2	$	2,421,250	$	2,367,077

1    Class A Common Stock, up to a member’s asset-based stock requirement, will be used to satisfy a member’s activity-based stock requirement before any Class B Common Stock is purchased by the member.

2    Includes mandatorily redeemable capital stock.

3    Advances to housing associates have no activity-based requirements because housing associates cannot own FHLBank stock.

4    Non-members previously required to purchase AMA activity-based stock are subject to the stock requirement in place at the time their membership ended as long as there are unpaid principal balances outstanding.

We are subject to various capital requirements under provisions of the GLB Act, the FHFA’s capital structure regulation and our RMP. See Item 1 – “Business – Capital, Capital Rules and Dividends” for details on the various capital requirements. We have been in compliance with each of the capital rules and requirements at all times, as applicable, since the implementation of our capital plan. See Note 10 of the Notes to Financial Statements under Part I, Item 1 for additional information and compliance as of June 30, 2024 and December 31, 2023.

Capital Distributions: Dividends may be paid in cash or capital stock as authorized by our board of directors. Quarterly dividends can be paid out of current and previous unrestricted retained earnings, subject to FHFA regulation and our capital plan.

Dividends paid to members totaled $111.8 million for the six months ended June 30, 2024 compared to $108.1 million for the same period in the prior year. The weighted average dividend rate was 8.79 percent and 8.78 percent for the three and six months ended June 30, 2024, respectively, which represented a dividend payout ratio of 53.1 percent and 50.3 percent, respectively. The weighted average dividend rate was 8.31 percent and 8.22 percent for the three and six months ended June 30, 2023, respectively, which represented a dividend payout ratio of 52.6 percent and 56.6 percent, respectively. The dividend payout ratio represents dividends declared and paid during a period as a percentage of net income for the period, although FHFA regulation requires dividends be paid out of known income prior to the declaration date. For example, dividends declared and paid in June 2024 were based on income during the three months ended May 31, 2024. (See Part I, Item 1 – “Business – Capital, Capital Rules and Dividends” in our annual report on Form 10-K for the year ended December 31, 2023 for other factors that contribute to the level of dividends paid.)

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In accordance with our capital plan, we must pay holders of Class A Common Stock the dividend parity threshold (DPT) rate before paying a higher rate to holders of Class B Common Stock. The DPT is a dividend rate expressed as a percentage per annum up to which the dividends paid per share on Class A Common Stock and Class B Common Stock must be equal. When the overnight Federal funds effective rate is below 2.00 percent, the DPT is zero for that dividend period (DPT is floored at zero). Table 34 presents the dividend rates per annum paid on capital stock under our capital plan for the quarterly periods listed below:

Table 34

Applicable Rate per Annum	06/30/2024		03/31/2024		12/31/2023		09/30/2023		06/30/2023
Class A Common Stock	4.75	%	4.75	%	4.75	%	4.50	%	4.00	%
Class B Common Stock	9.50		9.50		9.50		9.25		9.00
Weighted Average1	8.79		8.76		8.84		8.62		8.31
Dividend Parity Threshold:
Average effective overnight Federal funds rate	5.33	%	5.33	%	5.33	%	5.26	%	4.99	%
Spread to index	(2.00)		(2.00)		(2.00)		(2.00)		(2.00)
TOTAL (floored at zero percent)	3.33	%	3.33	%	3.33	%	3.26	%	2.99	%

1    Weighted average dividend rates are dividends paid in cash and stock on both classes of stock divided by the average of capital stock eligible for dividends.

We anticipate that our stock dividends on Class A Common Stock and Class B Common Stock will remain at or near current dividend rates throughout 2024. Historically, dividend rates have moved directionally with short-term interest rates. Market conditions and movements in short-term interest rates can be unpredictable, and adverse market conditions may result in lower dividend rates in future quarters. If there is a change to the DPT in the future, the capital plan requires that we provide members notice of that change 90 days prior to a dividend payment.

Under the capital plan, all dividends paid in the form of capital stock must be paid in the form of Class B Common Stock. We expect to continue paying dividends primarily in the form of capital stock, but future dividends may be paid in cash. The payment of cash dividends instead of stock dividends should not have a significant impact from a liquidity perspective, as the subsequent redemption of excess stock created by stock dividends would utilize liquidity resources in the same manner as a cash dividend. FHFA regulation prohibits any FHLBank from paying a stock dividend if excess stock outstanding will exceed one percent of its total assets after payment of the stock dividend.

Risk Management

Active risk management continues to be an essential part of our operations and a key determinant of our ability to maintain earnings to return an acceptable dividend to our members, support our affordable housing mission, and meet retained earnings thresholds. See Part II, Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Risk Management” in our Form 10-K for information on our enterprise risk management program. A separate discussion of market risk is included under Part I, Item 3 – “Quantitative and Qualitative Disclosures About Market Risk” of this Form 10-Q.

Interest Rate Risk Management: Interest rate risk is the risk that relative and absolute changes in interest rates may adversely affect an institution's financial condition and performance. The goal of an interest rate risk management strategy is not necessarily to eliminate interest rate risk, but to manage it by setting, and operating within, an appropriate framework and limits. We generally manage interest rate risk by acquiring and maintaining a portfolio of assets and liabilities and entering into related derivative transactions to limit the expected mismatches in duration and market value of equity (MVE) sensitivity. See Part I, Item 3 - “Quantitative and Qualitative Disclosures About Market Risk” for additional information on interest rate risk measurement.

Recently Issued Accounting Standards

See Note 2 of the Notes to Financial Statements under Part I, Item 1 – "Financial Statements" for a discussion of recently issued accounting standards.

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Legislative and Regulatory Developments

Significant regulatory actions and developments for the period covered by this report not previously disclosed are summarized below.

FHFA’s Review and Analysis of the FHLBank System. On November 7, 2023, FHFA issued a written report titled “FHLBank System at 100: Focusing on the Future” (System at 100 Report), presenting its review and analysis of the FHLBank System and the actions and recommendations it plans to pursue in service of its vision for the future of the FHLBank System. The report focused on four broad themes: (1) the mission of the FHLBank System; (2) the FHLBank System as a stable and reliable source of liquidity; (3) housing and community development; and (4) FHLBank System operational efficiency, structure, and governance. FHFA has stated that it expects to continue a multi-year, collaborative effort with the FHLBanks, their member institutions, and other stakeholders to address the recommended actions in the System at 100 Report and has stated that it can implement some of the recommendations from the report through ongoing supervision, guidance, or rulemaking, as well as through statutory changes by proposing specific requests for Congressional action.

FHFA made legislative recommendations for the FHLBank System in its 2023 Report to Congress issued on June 14, 2024, consistent with proposed plans and actions included in the System at 100 Report.

In April 2024, FHFA provided an update on its plan to implement the System at 100 Report’s recommendations and announced key priorities for 2024, including, among others, (1) clarifying the FHLBank System mission; (2) aligning eligibility requirements for different types of FHLBank members; and (3) streamlining requirements related to the Affordable Housing Program (AHP). FHFA stated it would maintain transparency and continue robust stakeholder engagement during the implementation process.

On May 16, 2024, FHFA issued a request for input on updates to the mission statement for the FHLBank System, establishment of methods for measuring and evaluating mission achievement, which could include updating the list of the FHLBanks’ core mission activities, and institution of a member incentive program that would provide added benefits in accordance with the members’ respective engagement with the FHLBanks’ housing finance and community development mission.

On June 20, 2024, FHFA issued a request for input regarding the efficiency and effectiveness of the FHLBanks’ AHP competitive application process, including scope, complexity, documentation requirements, and interaction with other funders’ requirements, as well as suggestions for potential improvements, such as simplification of the AHP application process.

Feedback received from commentators in response to FHFA’s requests for input may impact future FHFA supervisory, advisory, regulatory, or statutory proposals. We continue to monitor FHFA’s efforts to implement the recommendations from the System at 100 Report, and we are not able to predict what actions will ultimately result, the timing or extent of any actions or changes, or the ultimate effect on the Bank, its members, or the FHLBank System in the future. We plan to continue to engage with FHFA and other stakeholders in an effort to ensure that the FHLBank System remains well positioned to serve our members and their communities. For a further discussion of the System at 100 Report, including proposed plans and actions, and related risks, see Part I, Item 1A – Risk Factors of our annual report on Form 10-K for fiscal year ended December 31, 2023.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk that changes in market value may adversely affect our financial condition and performance. Interest rate risk is a component of market risk and represents our most significant market risk exposure. Interest rate risk is the risk that the market value of our asset, liability, and derivative portfolios will be negatively impacted by interest rate volatility or that earnings will be affected significantly by interest rate changes. We manage interest rate risk through the characteristics of our portfolio of assets and liabilities and by using derivative transactions to limit duration mismatches and reduce MVE sensitivity. Matching the duration of assets with the duration of liabilities funding those assets is accomplished through the use of different debt maturities and embedded option characteristics, as well as the use of derivatives, primarily interest rate swaps, interest rate caps, and interest rate floors. Interest rate swaps increase the flexibility of our funding alternatives by providing cash flows or characteristics that might not be as readily available or cost-effective if obtained in the standard GSE debt market.

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Duration of Equity: DOE aggregates the estimated sensitivity of market value for each of our financial assets and liabilities to changes in interest rates. A positive DOE results when the duration of assets and designated derivatives is greater than the duration of liabilities and designated derivatives, indicating a degree of interest rate risk exposure in a rising interest rate environment. A negative DOE results in the opposite scenario, indicating a degree of interest rate risk exposure in a declining interest rate environment. Higher DOE numbers, whether positive or negative, indicate greater volatility of market value in response to changing interest rates. A decline in market value does not necessarily translate directly into a decline in income, especially for entities that do not trade financial instruments. Changes in market value may indicate trends in income over longer periods, and knowing the sensitivity of our market value to changes in interest rates provides a measure of the interest rate risk we take.

Under the RMP, our base case DOE is generally limited to a range of ±5.0 assuming current interest rates. In addition, our DOE is generally limited to a range of ±7.0 assuming an instantaneous parallel increase or decrease in interest rates of 200 basis points. During periods of extremely low interest rates, the FHFA requires that the FHLBanks employ a constrained down shock analysis to limit the evolution of forward interest rates to positive non-zero values. Since our market risk model imposes a positive non-zero boundary on post-shock interest rates, no additional calculations are necessary to meet this FHFA requirement when applicable. When DOE exceeds the limits established by the RMP, corrective actions taken may include: (1) the purchase of interest rate caps, interest rate floors, or other derivatives; (2) the sale of assets; and/or (3) the addition to the balance sheet of assets or liabilities having characteristics that are such that they counterbalance the excessive duration observed.

Table 35 presents our DOE in the base and the up and down 200 basis point interest rate shock scenarios:

Table 35

Duration of Equity
Date	Up 200 Basis Points	Base	Down 200 Basis Points
06/30/2024	2.7	2.4	1.5
03/31/2024	3.3	2.3	1.3
12/31/2023	3.3	2.1	1.2
09/30/2023	3.2	2.2	1.9
06/30/2023	2.3	1.6	2.0

The primary factors contributing to the net changes in duration from December 31, 2023 to June 30, 2024 were: (1) the relative change in interest rates and the relative level of mortgage rates during the period along with variable rate CMOs and their effective cap levels; (2) the relative percent of total assets represented by the fixed rate mortgage loan portfolio during the period; and (3) asset/liability actions taken by management throughout the period, including the continued issuance of discount notes and short-term variable rate consolidated obligations to fund advance activity and the addition of interest rate cap positions. The increase in interest rates and the relative level of shorter-term interest rates during the period impacted the implied forward rates and the valuation of the variable rate CMO investments with lower effective interest rate caps. To reduce the impact of the general duration lengthening from the variable rate CMO investments with lower effective interest rate caps, stand-alone interest caps were purchased during the quarter, leading to the less asset sensitive DOE in the +200 interest rate shock scenario.

In addition, the relative changes in interest rates and mortgage rates during the period caused the mortgage loan portfolio contribution to duration to change marginally less than the associated liabilities, contributing to the increase in the asset sensitive DOE profile in the base case. The mortgage loan portfolio generally has a longer duration profile in the interest rate shock scenarios contributing to the asset-sensitive DOE in the up and down 200 basis point shock scenarios. However, the prepayment sensitivity and market value changes in our mortgage portfolio currently align well with our non-swapped callable debt portfolio in these scenarios generating a relatively stable sensitivity profile in the interest rate shock scenarios.

The change in interest rates during the period generally lengthens the duration profile for both the fixed rate mortgage loan portfolio and the associated unswapped callable consolidated obligation bonds funding these assets. However, the growth in advances during the period generated a smaller contribution and an overall modest duration profile change from the mortgage loan and unswapped callable bond portfolios, This behavior is expected since DOE is a market value weighted measure and as portfolio weightings change in relation to total market value of assets, the respective contributions increase or decrease to overall DOE. Even with the increase in our mortgage loan portfolio balance, the net impact was a slight decrease as a percentage of total assets during this period, as discussed in Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – MPF Program” so the duration profile changed as expected as prepayments shifted slightly for both new production mortgage loans, as well as the outstanding fixed rate mortgage loan portfolio.

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To effectively manage these changes in the mortgage loan portfolio (including new production and prepaid loans) and related sensitivity to changes in market conditions, unswapped callable consolidated obligation bonds that either matured or were called were generally replaced with reissuance of unswapped callable consolidated obligation bonds with relatively long maturities and short lock-out periods (generally three months to one year). Generally, changes in the profile of the liability portfolio corresponds with the expected duration profile of the new fixed rate mortgage loans, all else being equal, and positions the balance sheet for future changes in rates, including changes in interest rate increases where the mortgage loan portfolio will likely lengthen in duration as expected prepayments slow. For further discussion of the call and reissuance of consolidated obligation bonds, see Item 7 – “Management's Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Consolidated Obligations.” The combination of these factors contributed to the net DOE changes in all scenarios during the period.

Duration gap is the difference between the duration of our assets and the duration of our liabilities. Our base duration gap was 1.5 months and 1.3 months for June 30, 2024 and December 31, 2023, respectively.

Market Value of Equity

MVE is the net value of our assets and liabilities. Estimating sensitivity of MVE to changes in interest rates is another measure of interest rate risk. The RMP measures our market value risk in terms of the MVE in relation to total regulatory capital stock outstanding (TRCS). TRCS includes all capital stock outstanding, including stock subject to mandatory redemption. As a cooperative, we believe using the TRCS results is an appropriate measure because it reflects our market value relative to the book value of our capital stock. Our RMP stipulates MVE shall not be less than: (1) 100 percent of TRCS under the base case scenario; or (2) 90 percent of TRCS under a ±200 basis point instantaneous parallel shock in interest rates. Table 36 presents MVE as a percent of TRCS. As of June 30, 2024, all scenarios are well above the specified limits and much of the relative level in the ratios during the periods covered by the table can be attributed to the relative level of the fixed rate mortgage loan and associated funding portfolio market values along with the relative level of outstanding capital.

The MVE to TRCS ratios can be impacted by the market value of equity sensitivity and level of capital outstanding based on our capital management approach. The relative level of advance, mortgage loan, and letters of credit balances, which trigger required stock, and excess stock as of June 30, 2024 (see Table 33 under Part I, Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources - Capital”) contributed to the MVE levels as of June 30, 2024. These relationships and associated risk sensitivity primarily generate the changes in the MVE/TRCS levels and produce the changes in the ratios in all interest rate scenarios in the table below.

Generally, a positive duration position accompanied by rising interest rates would negatively impact the base market value of equity (numerator). Likewise, as capital increases, the MVE/TRCS ratio declines since the capital level is the denominator in the ratio. While the change in interest rates contributed to the overall impact on base MVE during the period, the changes were limited with the ratio maintaining consistent levels in the base case and interest rate shock scenarios during the period.

Table 36

Market Value of Equity as a Percent of Total Regulatory Capital Stock
Date	Up 200 Basis Points	Base	Down 200 Basis Points
06/30/2024	142	149	155
03/31/2024	147	155	161
12/31/2023	145	153	157
09/30/2023	136	144	150
06/30/2023	143	148	154

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Detail of Derivative Instruments by Type of Instrument by Type of Risk

Various types of derivative instruments are utilized to mitigate the interest rate risks described in the preceding sections as well as to better match the terms of assets and liabilities. Tables 37 and 38 present the notional amount and fair value amount (fair value includes net accrued interest receivable or payable on the derivative) for derivative instruments by hedged item, hedging instrument, hedging objective and accounting designation (in thousands):

Table 37

06/30/2024
Hedged Item	Hedging Instrument	Hedging Objective	Accounting Designation	Notional Amount		Fair Value Amount
Advances
Fixed rate non-callable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index	Fair Value Hedge	$	11,569,357	$	3,849
Fixed rate convertible advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index and offset option risk in the advance	Fair Value Hedge	105,900		2,278
Fixed rate putable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index and offset option risk in the advance	Fair Value Hedge	2,780,950		3,638
Fixed rate non-callable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index	Economic Hedge	198,423		1,195
Firm commitment to issue a fixed rate advance	Forward settling interest rate swap	Protect against fair value risk	Fair Value Hedge	15,704		42
Investments
Fixed rate non-MBS available-for-sale investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Fair Value Hedge	3,300,000		(2,666)
Fixed rate MBS available-for-sale investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Fair Value Hedge	4,391,965		57,255
Fixed rate non-MBS trading investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Economic Hedge	243,000		—
Fixed rate MBS trading investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Economic Hedge	608,487		18,154
Adjustable rate MBS with embedded caps	Interest rate cap	Offset the interest rate cap embedded in a variable rate investment	Economic Hedge	1,804,000		4,194
Mortgage Loans Held for Portfolio
Fixed rate mortgage purchase commitments	Mortgage purchase commitment	Protect against fair value risk	Economic Hedge	62,180		34
Consolidated Obligation Discount Notes
Fixed rate non-callable consolidated obligation discount notes with tenors less than 6 months	Receive fixed, pay variable interest rate swap	Convert the discount note's fixed rate to a variable rate	Economic Hedge	5,557,189		12
Fixed rate non-callable consolidated obligation discount notes with tenors of 6 to 12 months	Receive fixed, pay variable interest rate swap	Convert the discount note's fixed rate to a variable rate	Fair Value Hedge	4,636,122		2,166
Firm commitment to issue consolidated obligation discount note	Receive fixed, pay variable interest rate swap	Protect against fair value risk	Fair Value Hedge	54,468		(1)
Consolidated Obligation Bonds
Fixed rate non-callable consolidated obligation bonds	Receive fixed, pay variable interest rate swap	Convert the bond’s fixed rate to a variable rate index	Fair Value Hedge	2,283,000		(44,673)
Fixed rate callable consolidated obligation bonds	Receive fixed, pay variable interest rate swap	Convert the bond’s fixed rate to a variable rate index and offset option risk in the bond	Fair Value Hedge	10,235,300		(187,282)
Callable step-up/step-down consolidated obligation bonds	Receive variable interest rate with embedded features, pay variable interest rate swap	Reduce interest rate sensitivity and repricing gaps by converting the bond’s variable rate to a different variable rate index and/or to offset embedded options risk in the bond	Fair Value Hedge	1,007,000		(62,648)
TOTAL				$	48,853,045	$	(204,453)

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Table 38

12/31/2023
Hedged Item	Hedging Instrument	Hedging Objective	Accounting Designation	Notional Amount		Fair Value Amount
Advances
Fixed rate non-callable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index	Fair Value Hedge	$	11,315,760	$	(2,205)
Fixed rate convertible advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index and offset option risk in the advance	Fair Value Hedge	113,400		4,215
Fixed rate putable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index and offset option risk in the advance	Fair Value Hedge	2,071,800		(9,227)
Fixed rate non-callable advances	Pay fixed, receive variable interest rate swap	Convert the advance’s fixed rate to a variable rate index	Economic Hedge	201,138		834
Firm commitment to issue a fixed rate advance	Forward settling interest rate swap	Protect against fair value risk	Fair Value Hedge	52,141		7
Investments
Fixed rate non-MBS available-for-sale investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Fair Value Hedge	3,050,000		(4,065)
Fixed rate MBS available-for-sale investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Fair Value Hedge	3,766,473		48,363
Fixed rate non-MBS trading investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Economic Hedge	293,000		(26)
Fixed rate MBS trading investments	Pay fixed, receive variable interest rate swap	Convert the investment’s fixed rate to a variable rate index	Economic Hedge	628,027		20,659
Adjustable rate MBS with embedded caps	Interest rate cap	Offset the interest rate cap embedded in a variable rate investment	Economic Hedge	304,000		698
Mortgage Loans Held for Portfolio
Fixed rate mortgage purchase commitments	Mortgage purchase commitment	Protect against fair value risk	Economic Hedge	41,641		128
Consolidated Obligation Discount Notes
Fixed rate non-callable consolidated obligation discount notes with tenors less than 6 months	Receive fixed, pay variable interest rate swap	Convert the discount note's fixed rate to a variable rate	Economic Hedge	5,261,131		453
Fixed rate non-callable consolidated obligation discount notes with tenors of 6 to 12 months	Receive fixed, pay variable interest rate swap	Convert the discount note's fixed rate to a variable rate	Fair Value Hedge	3,727,296		911
Consolidated Obligation Bonds
Fixed rate non-callable consolidated obligation bonds	Receive fixed, pay variable interest rate swap	Convert the bond’s fixed rate to a variable rate index	Fair Value Hedge	4,599,000		(18,313)
Fixed rate callable consolidated obligation bonds	Receive fixed, pay variable interest rate swap	Convert the bond’s fixed rate to a variable rate index and offset option risk in the bond	Fair Value Hedge	14,797,000		(241,011)
Callable step-up/step-down consolidated obligation bonds	Receive variable interest rate with embedded features, pay variable interest rate swap	Reduce interest rate sensitivity and repricing gaps by converting the bond’s variable rate to a different variable rate index and/or to offset embedded options risk in the bond	Fair Value Hedge	1,312,000		(72,918)
TOTAL				$	51,533,807	$	(271,497)

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Disclosure Controls and Procedures

Senior management is responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide a reasonable level of assurance in achieving their desired objectives; however, in designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Management, with the participation of the President and Chief Executive Officer (CEO), our principal executive officer, and the Chief Accounting Officer, our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2024. Based upon that evaluation, the CEO and Chief Accounting Officer have concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2024.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended June 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. OTHER INFORMATION

Item 1: Legal Proceedings

We are subject to various pending legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these matters will have a material adverse effect on our financial condition or results of operations. Additionally, management does not believe that we are subject to any material pending legal proceedings outside of ordinary litigation incidental to our business.

Item 1A: Risk Factors

There have been no material changes to the risk factors previously disclosed in our annual report on Form 10-K filed on March 11, 2024, and such risk factors are incorporated by reference herein.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3: Defaults Upon Senior Securities

None.

Item 4: Mine Safety Disclosures

Not applicable.

Item 5: Other Information

None.

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Item 6: Exhibits

Exhibit No.	Description
3.1	Exhibit 3.1 to the FHLBank’s registration statement on Form 10, filed May 15, 2006, and made effective on July 14, 2006 (File No. 000-52004), Federal Home Loan Bank of Topeka Articles and Organization Certificate, is incorporated herein by reference as Exhibit 3.1.
3.2	Exhibit 3.1 to the Current Report on Form 8-K, filed October 26, 2022, Federal Home Loan Bank of Topeka Amended and Restated Bylaws, is incorporated herein by reference as Exhibit 3.2.
4.1	Exhibit 4.1 to the Annual Report on Form 10-K, filed March 20, 2020, Federal Home Loan Bank of Topeka Capital Plan.
31.1	Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Accounting Officer (Principal Financial Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of President and Chief Executive Officer (Principal Executive Officer) and Chief Accounting Officer (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

*     Represents a management contract or a compensatory plan or arrangement.

83

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Federal Home Loan Bank of Topeka
August 8, 2024	By: /s/ Jeffrey B. Kuzbel
Date	Jeffrey B. Kuzbel
	President and Chief Executive Officer
August 8, 2024	By: /s/ Amy J. Crouch
Date	Amy J. Crouch
	First Vice President and Chief Accounting Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

     I, Jeffrey B. Kuzbel, President and Chief Executive Officer of Federal Home Loan Bank of Topeka (the “registrant”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of the registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2024

By: /s/ Jeffrey B. Kuzbel

Jeffrey B. Kuzbel

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

     I, Amy J. Crouch, First Vice President and Chief Accounting Officer of Federal Home Loan Bank of Topeka (the “registrant”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of the registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2024

By: /s/ Amy J. Crouch

Amy J. Crouch

First Vice President and Chief Accounting Officer

EX-32

Exhibit 32

CERTIFICATION FURNISHED PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of the Federal Home Loan Bank of Topeka (the “Bank”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jeffrey B. Kuzbel, as Chief Executive Officer, and Amy J. Crouch, as Interim Principal Financial Officer of the Bank, each hereby certifies, pursuant to 18 U.S.C. Section 1350, that, to the best of his/her knowledge:

(1)  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Bank.

August 8, 2024	By: /s/ Jeffrey B. Kuzbel
Date	Jeffrey B. Kuzbel
	President and Chief Executive Officer
August 8, 2024	By: /s/ Amy J. Crouch
Date	Amy J. Crouch
	First Vice President and Chief Accounting Officer

A signed original of this written statement required by Section 906 has been provided to the Bank and will be retained by the Bank and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-52004
Entity Registrant Name	FEDERAL HOME LOAN BANK OF TOPEKA
Entity Incorporation, State or Country Code	X1
Entity Tax Identification Number	48-0561319
Entity Address, Address Line One	500 SW Wanamaker Road
Entity Address, City or Town	Topeka
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66606
City Area Code	785
Local Phone Number	233.0507
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001325878
Class A [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		3,660,314
Class B [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		22,576,099

XML

Statements Of Condition - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks		$ 26,550	$ 26,062
Interest-bearing deposits		2,339,648	1,604,989
Securities purchased under agreements to resell (Note 9)		2,925,000	3,875,000
Federal funds sold		5,292,000	2,080,000
Investment securities:
Trading securities (Note 3)		843,742	908,608
Available-for-sale securities, amortized cost of $12,580,840 and $11,872,397 (Note 3)		12,466,957	11,753,453
Held-to-maturity securities, fair value of $244,428 and $260,653 (Note 3)		247,993	264,796
Total investment securities		13,558,692	12,926,857
Advances (Note 4)		46,219,747	45,444,769
Mortgage loans held for portfolio, net of allowance for credit losses of $4,315 and $5,531 (Note 5)		8,719,897	8,352,713
Accrued interest receivable		275,977	204,243
Derivative assets, net (Notes 6, 9)		316,530	350,367
Other assets		80,996	81,985
TOTAL ASSETS		79,755,037	74,946,985
LIABILITIES
Deposits (Note 7)		817,072	752,200
Consolidated obligations, net:
Discount notes (Note 8)		18,209,813	20,743,249
Bonds (Note 8)		56,059,156	49,047,489
Total consolidated obligations, net		74,268,969	69,790,738
Mandatorily redeemable capital stock (Note 10)		3,442	247
Accrued interest payable		380,927	361,840
Affordable Housing Program payable		89,134	77,794
Derivative liabilities, net (Notes 6, 9)		951	860
Other liabilities		59,833	72,654
TOTAL LIABILITIES		75,620,328	71,056,333
Commitments and contingencies (Note 13)
Capital stock outstanding - putable:
Total capital stock (Note 10)	[1]	2,735,999	2,607,683
Retained earnings:
Unrestricted		1,055,506	989,457
Restricted		456,945	412,483
Total retained earnings		1,512,451	1,401,940
Accumulated other comprehensive income (loss) (Note 11)		(113,741)	(118,971)
TOTAL CAPITAL		4,134,709	3,890,652
TOTAL LIABILITIES AND CAPITAL		79,755,037	74,946,985
Class A [Member]
Capital stock outstanding - putable:
Total capital stock (Note 10)	[1]	318,601	278,887
Class B [Member]
Capital stock outstanding - putable:
Total capital stock (Note 10)	[1]	$ 2,417,398	$ 2,328,796

[1] Putable

XML

Statements Of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Investment securities:
Available-for-sale securities, amortized cost of $12,580,840 and $11,872,397 (Note 3)		$ 12,580,840	$ 11,872,397
Held-to-maturity, Fair Value		$ 244,428	260,653
Capital stock outstanding - putable:
Common Stock, par value per share		$ 100
Residential Portfolio Segment [Member]
Mortgage loans held for portfolio, net of allowance for credit losses of $4,315 and $5,531 (Note 5)		$ 4,315	$ 5,531
Class A [Member]
Capital stock outstanding - putable:
Common Stock, par value per share	[1]	$ 100	$ 100
Common Stock, Shares, Issued	[1]	3,186	2,789
Common Stock, Shares Outstanding	[1]	3,186	2,789
Class B [Member]
Capital stock outstanding - putable:
Common Stock, par value per share	[1]	$ 100	$ 100
Common Stock, Shares, Issued	[1]	24,174	23,288
Common Stock, Shares Outstanding	[1]	24,174	23,288

[1] Putable

XML

Statements Of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INTEREST INCOME:
Interest-bearing deposits	$ 38,243	$ 36,687	$ 74,244	$ 67,384
Securities purchased under agreements to resell	40,123	32,356	80,366	62,638
Federal funds sold	56,945	52,930	111,068	100,286
Trading securities	6,392	9,620	12,910	19,980
Available-for-sale securities	193,900	144,744	383,959	261,580
Held-to-maturity securities	3,598	4,168	7,306	8,274
Advances	634,504	613,730	1,226,491	1,150,324
Mortgage loans held for portfolio	78,337	62,836	152,813	123,644
Other	179	191	356	951
Total interest income	1,052,221	957,262	2,049,513	1,795,061
INTEREST EXPENSE:
Deposits	10,146	7,180	19,876	14,749
Consolidated obligations:
Discount notes	233,774	288,183	461,315	551,704
Bonds	669,999	539,939	1,293,539	1,001,821
Mandatorily redeemable capital stock	52	5	55	8
Other	292	288	629	709
Total interest expense	914,263	835,595	1,775,414	1,568,991
NET INTEREST INCOME	137,958	121,667	274,099	226,070
Provision (reversal) for credit losses on mortgage loans	(863)	746	(1,063)	344
NET INTEREST INCOME AFTER LOAN LOSS PROVISION (REVERSAL)	138,821	120,921	275,162	225,726
OTHER INCOME (LOSS):
Net gains (losses) on trading securities	3,938	(4,601)	5,729	4,383
Net gains (losses) on derivatives	1,678	20,294	10,206	19,769
Standby bond purchase agreement commitment fees	737	689	1,488	1,370
Letters of credit fees	2,294	2,034	4,661	3,944
Other	614	609	1,093	1,172
Total other income (loss)	9,261	19,025	23,177	30,638
OTHER EXPENSES:
Compensation and benefits	12,535	11,769	24,855	23,476
Other operating	7,015	5,594	13,528	11,273
Federal Housing Finance Agency	1,370	1,531	2,739	3,062
Office of Finance	1,243	963	2,371	2,059
Mortgage loans transaction service fees	1,712	1,586	3,379	3,150
Voluntary housing and community investment program contributions	3,919	0	3,919	0
Other	101	503	527	1,071
Total other expenses	27,895	21,946	51,318	44,091
INCOME BEFORE ASSESSMENTS	120,187	118,000	247,021	212,273
Affordable Housing Program	12,024	11,800	24,708	21,228
NET INCOME	$ 108,163	$ 106,200	$ 222,313	$ 191,045

XML

Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net income	$ 108,163	$ 106,200	$ 222,313	$ 191,045
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale securities	(19,131)	(1,446)	5,061	441
Defined benefit pension plan	169	0	169	0
Total other comprehensive income (loss)	(18,962)	(1,446)	5,230	441
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 89,201	$ 104,754	$ 227,543	$ 191,486

XML

Statements Of Capital - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		$ 3,864,707	$ 3,865,447	$ 3,890,652	$ 3,676,544
Comprehensive income		89,201	104,754	227,543	191,486
Proceeds from issuance of capital stock		512,032	640,363	1,027,041	1,663,373
Repurchase/redemption of capital stock		(253,204)	(431,755)	(777,927)	(1,141,289)
Net reclassification of shares to mandatorily redeemable capital stock		(77,949)	(282,260)	(232,442)	(493,497)
Net transfer of shares between Class A and Class B		0	0	0	0
Dividends on capital stock
Cash payment		(78)	(63)	(158)	(131)
Stock issued		0	0	0	0
Balance at the end of the period		$ 4,134,709	$ 3,896,486	$ 4,134,709	$ 3,896,486
Capital Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period, shares	[1]	24,977	26,621	26,077	25,077
Balance at the beginning of the period	[1]	$ 2,497,709	$ 2,662,089	$ 2,607,683	$ 2,507,709
Proceeds from issuance of capital stock, shares	[1]	5,121	6,404	10,271	16,634
Proceeds from issuance of capital stock	[1]	$ 512,032	$ 640,363	$ 1,027,041	$ 1,663,373
Repurchase/redemption of capital stock, shares	[1]	(2,532)	(4,318)	(7,779)	(11,413)
Repurchase/redemption of capital stock	[1]	$ (253,204)	$ (431,755)	$ (777,927)	$ (1,141,289)
Net reclassification of shares to mandatorily redeemable capital stock, shares	[1]	(780)	(2,823)	(2,325)	(4,936)
Net reclassification of shares to mandatorily redeemable capital stock	[1]	$ (77,949)	$ (282,260)	$ (232,442)	$ (493,497)
Net transfer of shares between Class A and Class B, shares	[1]	0	0	0	0
Net transfer of shares between Class A and Class B	[1]	$ 0	$ 0	$ 0	$ 0
Dividends on capital stock
Stock issued, shares	[1]	574	558	1,116	1,080
Stock issued	[1]	$ 57,411	$ 55,812	$ 111,644	$ 107,953
Balance at the end of the period, shares	[1]	27,360	26,442	27,360	26,442
Balance at the end of the period	[1]	$ 2,735,999	$ 2,644,249	$ 2,735,999	$ 2,644,249
Total Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		1,461,777	1,285,741	1,401,940	1,253,105
Comprehensive income		108,163	106,200	222,313	191,045
Dividends on capital stock
Cash payment		(78)	(63)	(158)	(131)
Stock issued		(57,411)	(55,812)	(111,644)	(107,953)
Balance at the end of the period		1,512,451	1,336,066	1,512,451	1,336,066
Unrestricted Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		1,026,464	930,383	989,457	914,716
Comprehensive income		86,531	84,960	177,851	152,836
Dividends on capital stock
Cash payment		(78)	(63)	(158)	(131)
Stock issued		(57,411)	(55,812)	(111,644)	(107,953)
Balance at the end of the period		1,055,506	959,468	1,055,506	959,468
Restricted Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		435,313	355,358	412,483	338,389
Comprehensive income		21,632	21,240	44,462	38,209
Dividends on capital stock
Balance at the end of the period		456,945	376,598	456,945	376,598
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period		(94,779)	(82,383)	(118,971)	(84,270)
Comprehensive income		(18,962)	(1,446)	5,230	441
Dividends on capital stock
Balance at the end of the period		$ (113,741)	$ (83,829)	$ (113,741)	$ (83,829)
Class A [Member] | Capital Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period, shares	[1]	3,447	2,924	2,789	2,388
Balance at the beginning of the period	[1]	$ 344,697	$ 292,424	$ 278,887	$ 238,777
Proceeds from issuance of capital stock, shares	[1]	2	20	4	20
Proceeds from issuance of capital stock	[1]	$ 184	$ 1,987	$ 374	$ 1,987
Repurchase/redemption of capital stock, shares	[1]	(2,090)	(3,674)	(7,051)	(10,122)
Repurchase/redemption of capital stock	[1]	$ (209,050)	$ (367,414)	$ (705,102)	$ (1,012,265)
Net reclassification of shares to mandatorily redeemable capital stock, shares	[1]	(710)	(2,246)	(2,235)	(3,025)
Net reclassification of shares to mandatorily redeemable capital stock	[1]	$ (70,955)	$ (224,688)	$ (223,433)	$ (302,540)
Net transfer of shares between Class A and Class B, shares	[1]	2,537	6,498	9,679	14,261
Net transfer of shares between Class A and Class B	[1]	$ 253,725	$ 649,860	$ 967,875	$ 1,426,210
Dividends on capital stock
Balance at the end of the period, shares	[1]	3,186	3,522	3,186	3,522
Balance at the end of the period	[1]	$ 318,601	$ 352,169	$ 318,601	$ 352,169
Class B [Member] | Capital Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period, shares	[1]	21,530	23,697	23,288	22,689
Balance at the beginning of the period	[1]	$ 2,153,012	$ 2,369,665	$ 2,328,796	$ 2,268,932
Proceeds from issuance of capital stock, shares	[1]	5,119	6,384	10,267	16,614
Proceeds from issuance of capital stock	[1]	$ 511,848	$ 638,376	$ 1,026,667	$ 1,661,386
Repurchase/redemption of capital stock, shares	[1]	(442)	(644)	(728)	(1,291)
Repurchase/redemption of capital stock	[1]	$ (44,154)	$ (64,341)	$ (72,825)	$ (129,024)
Net reclassification of shares to mandatorily redeemable capital stock, shares	[1]	(70)	(577)	(90)	(1,911)
Net reclassification of shares to mandatorily redeemable capital stock	[1]	$ (6,994)	$ (57,572)	$ (9,009)	$ (190,957)
Net transfer of shares between Class A and Class B, shares	[1]	(2,537)	(6,498)	(9,679)	(14,261)
Net transfer of shares between Class A and Class B	[1]	$ (253,725)	$ (649,860)	$ (967,875)	$ (1,426,210)
Dividends on capital stock
Stock issued, shares	[1]	574	558	1,116	1,080
Stock issued	[1]	$ 57,411	$ 55,812	$ 111,644	$ 107,953
Balance at the end of the period, shares	[1]	24,174	22,920	24,174	22,920
Balance at the end of the period	[1]	$ 2,417,398	$ 2,292,080	$ 2,417,398	$ 2,292,080

[1] Putable

XML

Statements Of Capital (Parenthetical)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 Rate	Jun. 30, 2023 Rate	Jun. 30, 2024 Rate	Jun. 30, 2023 Rate
Class A [Member]
Dividends on capital stock, percentage rate	4.80%	4.00%	4.70%	3.90%
Class B [Member]
Dividends on capital stock, percentage rate	9.50%	9.00%	9.50%	8.90%

XML

Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 222,313	$ 191,045
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Premiums and discounts on consolidated obligations, net	(95,070)	90,352
Concessions on consolidated obligations	3,281	2,982
Premiums and discounts on investments, net	(21,769)	(11,299)
Premiums, discounts and commitment fees on advances, net	(1,355)	(1,515)
Premiums, discounts and deferred loan costs on mortgage loans, net	6,170	6,402
Fair value adjustments on hedged assets or liabilities	(2,169)	(878)
Premises, software and equipment	1,715	1,470
Provision (reversal) for credit losses on mortgage loans	(1,063)	344
Other adjustments, net	163	28
Net (gains) losses on trading securities	(5,729)	(4,383)
Net change in derivatives and hedging activities	139,589	86,051
(Increase) decrease in accrued interest receivable	(70,951)	(668)
Change in net accrued interest included in derivative assets	(27,554)	(50,118)
(Increase) decrease in other assets	12	(250)
Increase (decrease) in accrued interest payable	18,888	147,395
Change in net accrued interest included in derivative liabilities	17,820	(3,473)
Increase (decrease) in Affordable Housing Program liability	11,340	15,166
Increase (decrease) in other liabilities	(12,684)	(5,309)
Total adjustments	(39,366)	272,297
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	182,947	463,342
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (increase) decrease in interest-bearing deposits	(667,257)	(54,177)
Net (increase) decrease in securities purchased under resale agreements	950,000	350,000
Net (increase) decrease in Federal funds sold	(3,212,000)	(650,000)
Proceeds from maturities of and principal repayments on trading securities	70,595	362,322
Proceeds from maturities of and principal repayments on available-for-sale securities	469,988	987,677
Purchases of available-for-sale securities	(1,231,147)	(1,978,587)
Proceeds from maturities of and principal repayments on held-to-maturity securities	16,793	60,106
Advances repaid	141,008,993	420,013,035
Advances originated	(141,882,373)	(419,767,039)
Principal collected on mortgage loans	388,840	356,663
Purchases of mortgage loans	(761,033)	(523,336)
Net proceeds from sale of foreclosed assets	230	148
Purchases of premises, software and equipment	(1,078)	(2,933)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(4,849,449)	(846,121)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits	97,859	(180,628)
Net proceeds from issuance of consolidated obligations:
Discount notes	276,214,528	207,990,326
Bonds	35,851,865	29,982,709
Payments for maturing, retired and transferred consolidated obligations:
Discount notes	(278,654,498)	(211,986,290)
Bonds	(28,875,030)	(24,463,213)
Bonds transferred to other FHLBanks	0	(999,987)
Net interest payments received (paid) for financing derivatives	12,609	10,656
Proceeds from issuance of capital stock	1,027,041	1,663,373
Payments for repurchase/redemption of capital stock	(777,927)	(1,141,289)
Payments for repurchase of mandatorily redeemable capital stock	(229,299)	(493,521)
Cash dividends paid	(158)	(131)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	4,666,990	382,005
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	488	(774)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	26,062	25,964
CASH AND CASH EQUIVALENTS AT END OF PERIOD	26,550	25,190
Supplemental disclosures:
Interest paid	764,281	506,095
Affordable Housing Program payments	13,779	6,111
Net transfers of mortgage loans to other assets	$ 92	$ 707

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Basis of Presentation: The accompanying interim financial statements of FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of FHLBank’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period.

FHLBank’s significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2023. The interim financial statements presented herein should be read in conjunction with FHLBank’s audited financial statements and notes thereto, which are included in FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 11, 2024 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K.

Use of Estimates: The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates.

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Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles

6 Months Ended

Jun. 30, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recently Issued Accounting Standards And Interpretations And Changes In And Adoptions Of Accounting Principles

RECENTLY ISSUED ACCOUNTING STANDARDS AND INTERPRETATIONS AND CHANGES IN AND ADOPTIONS OF ACCOUNTING PRINCIPLES

Segment Reporting (ASU 2023-07). In July 2023, the FASB issued amendments to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocations of capital for additional, more detailed information about a reportable segment’s expenses, including entities with a single reportable segment. The ASU is effective for FHLBank for the annual period ending December 31, 2024 and will be effective for interim periods beginning January 1, 2025. The adoption of this guidance is not expected to have a material effect on FHLBank’s disclosures.

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Investment Securities

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENTS

FHLBank's investment portfolio consists of interest-bearing deposits, securities purchased under agreements to resell, Federal funds sold, and debt securities.

Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a Nationally Recognized Statistical Rating Organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of June 30, 2024, approximately 25 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of June 30, 2024 and December 31, 2023, all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of June 30, 2024 and December 31, 2023. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $3,689,000 and $2,353,000, respectively, as of June 30, 2024, and $3,271,000 and $927,000, respectively, as of December 31, 2023.

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). Based upon the collateral held as security and collateral maintenance provisions with its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of June 30, 2024 and December 31, 2023. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $1,324,000 and $1,749,000 as of June 30, 2024 and December 31, 2023, respectively.

Debt Securities: FHLBank invests in debt securities, which are classified as either trading, available-for-sale, or held-to-maturity. FHLBank is prohibited by FHFA regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality, other than certain investments targeted at low-income persons or communities, but FHLBank is not required to divest instruments that experience credit deterioration after their purchase.

FHLBank's debt securities include the following major security types, which are based on the issuer and the risk characteristics of the security:

▪U.S. Treasury obligations - sovereign debt of the United States;

▪GSE debentures - debentures issued by other FHLBanks, Federal National Mortgage Association (Fannie Mae), Federal Farm Credit Bank and Federal Agricultural Mortgage Corporation. GSE securities are not guaranteed by the U.S. government;

▪State or local housing agency obligations - municipal bonds issued by housing finance agencies;

▪U.S. obligation MBS - single-family MBS issued by Government National Mortgage Association (Ginnie Mae), which are guaranteed by the U.S. government; and

▪GSE MBS - single-family and multifamily MBS issued by Fannie Mae and Federal Home Loan Mortgage Corporation (Freddie Mac).

Trading Securities: Trading securities by major security type as of June 30, 2024 and December 31, 2023 are summarized in Table 3.1 (in thousands):

Table 3.1

	Fair Value
	06/30/2024		12/31/2023
Non-mortgage-backed securities:
GSE debentures	$	241,444	$	288,438
Non-mortgage-backed securities	241,444		288,438
Mortgage-backed securities:
GSE MBS	602,298		620,170
Mortgage-backed securities	602,298		620,170
TOTAL	$	843,742	$	908,608

Net gains (losses) on trading securities during the three and six months ended June 30, 2024 and 2023 are shown in Table 3.2 (in thousands):

Table 3.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Net gains (losses) on trading securities held as of June 30, 2024	$	3,691	$	(6,039)	$	5,116	$	388
Net gains (losses) on trading securities sold or matured prior to June 30, 2024	247		1,438		613		3,995
NET GAINS (LOSSES) ON TRADING SECURITIES	$	3,938	$	(4,601)	$	5,729	$	4,383

Available-for-sale Securities: Available-for-sale securities by major security type as of June 30, 2024 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $34,648,000 as of June 30, 2024.

Table 3.3

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	3,233,566	$	—	$	(59,986)	$	3,173,580
Non-mortgage-backed securities	3,233,566		—		(59,986)		3,173,580
Mortgage-backed securities:
U.S. obligation MBS	90,164		—		(1,317)		88,847
GSE MBS	9,257,110		39,266		(91,846)		9,204,530
Mortgage-backed securities	9,347,274		39,266		(93,163)		9,293,377
TOTAL	$	12,580,840	$	39,266	$	(153,149)	$	12,466,957

Available-for-sale securities by major security type as of December 31, 2023 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $29,768,000 as of December 31, 2023.

Table 3.4

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	2,983,880	$	—	$	(46,012)	$	2,937,868
Non-mortgage-backed securities	2,983,880		—		(46,012)		2,937,868
Mortgage-backed securities:
U.S. obligation MBS	109,083		—		(1,548)		107,535
GSE MBS	8,779,434		32,178		(103,562)		8,708,050
Mortgage-backed securities	8,888,517		32,178		(105,110)		8,815,585
TOTAL	$	11,872,397	$	32,178	$	(151,122)	$	11,753,453

Table 3.5 summarizes the available-for-sale securities with gross unrealized losses as of June 30, 2024 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.5

	06/30/2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	461,246	$	(4,624)	$	2,712,334	$	(55,362)	$	3,173,580	$	(59,986)
Non-mortgage-backed securities	461,246		(4,624)		2,712,334		(55,362)		3,173,580		(59,986)
Mortgage-backed securities:
U.S. obligation MBS	—		—		88,846		(1,317)		88,846		(1,317)
GSE MBS	1,637,287		(5,271)		3,976,284		(86,575)		5,613,571		(91,846)
Mortgage-backed securities	1,637,287		(5,271)		4,065,130		(87,892)		5,702,417		(93,163)
TOTAL	$	2,098,533	$	(9,895)	$	6,777,464	$	(143,254)	$	8,875,997	$	(153,149)

Table 3.6 summarizes the available-for-sale securities with gross unrealized losses as of December 31, 2023 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.6

	12/31/2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	1,280,546	$	(10,036)	$	1,657,322	$	(35,976)	$	2,937,868	$	(46,012)
Non-mortgage-backed securities	1,280,546		(10,036)		1,657,322		(35,976)		2,937,868		(46,012)
Mortgage-backed securities:
U.S. obligation MBS	71,883		(366)		35,652		(1,182)		107,535		(1,548)
GSE MBS	2,863,223		(23,525)		3,164,674		(80,037)		6,027,897		(103,562)
Mortgage-backed securities	2,935,106		(23,891)		3,200,326		(81,219)		6,135,432		(105,110)
TOTAL	$	4,215,652	$	(33,927)	$	4,857,648	$	(117,195)	$	9,073,300	$	(151,122)

The amortized cost and fair values of available-for-sale securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.7

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	3,233,566		3,173,580		2,983,880		2,937,868
Due after five years through ten years	—		—		—		—
Due after ten years	—		—		—		—
Non-mortgage-backed securities	3,233,566		3,173,580		2,983,880		2,937,868
Mortgage-backed securities	9,347,274		9,293,377		8,888,517		8,815,585
TOTAL	$	12,580,840	$	12,466,957	$	11,872,397	$	11,753,453

Held-to-maturity Securities: Held-to-maturity securities by major security type as of June 30, 2024 are summarized in Table 3.8 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $567,000 as of June 30, 2024.

Table 3.8

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	34,790	$	—	$	(561)	$	34,229
Non-mortgage-backed securities	34,790		—		(561)		34,229
Mortgage-backed securities:
GSE MBS	213,203		174		(3,178)		210,199
Mortgage-backed securities	213,203		174		(3,178)		210,199
TOTAL	$	247,993	$	174	$	(3,739)	$	244,428

Held-to-maturity securities by major security type as of December 31, 2023 are summarized in Table 3.9 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $612,000 as of December 31, 2023.

Table 3.9

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	35,855	$	—	$	(646)	$	35,209
Non-mortgage-backed securities	35,855		—		(646)		35,209
Mortgage-backed securities:
GSE MBS	228,941		188		(3,685)		225,444
Mortgage-backed securities	228,941		188		(3,685)		225,444
TOTAL	$	264,796	$	188	$	(4,331)	$	260,653

The amortized cost and fair values of held-to-maturity securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.10 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.10

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	—		—		—		—
Due after five years through ten years	34,790		34,229		35,855		35,209
Due after ten years	—		—		—		—
Non-mortgage-backed securities	34,790		34,229		35,855		35,209
Mortgage-backed securities	213,203		210,199		228,941		225,444
TOTAL	$	247,993	$	244,428	$	264,796	$	260,653

Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. As of June 30, 2024 and 2023, FHLBank did not recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments.

Although certain available-for-sale securities were in an unrealized loss position, these losses are considered temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis.

FHLBank's held-to-maturity and available-for-sale securities: (1) were all highly rated and/or had short remaining terms to maturity; (2) had not experienced, nor did FHLBank expect, any payment default on the instruments; (3) in the case of U.S. obligations, carry an explicit government guarantee such that FHLBank considers the risk of nonpayment to be zero; and (4) in the case of GSE debentures or MBS, the securities are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

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Advances

6 Months Ended

Jun. 30, 2024

Advances [Abstract]

Advances

ADVANCES

General Terms: FHLBank offers fixed and variable rate advance products with different maturities, interest rates, payment characteristics and optionality. As of June 30, 2024 and December 31, 2023, FHLBank had advances outstanding at interest rates ranging from 0.43 percent to 7.20 percent and 0.42 percent to 7.20 percent, respectively. Table 4.1 presents advances summarized by redemption term as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). The redemption term represents the period in which principal amounts are contractually due. Carrying amounts exclude accrued interest receivable of $180,274,000 and $118,604,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 4.1

	06/30/2024				12/31/2023
Redemption Term	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	30,020,868	5.31	%	$	29,786,238	5.32	%
Due after one year through two years	4,534,314		4.14		4,213,704		4.01
Due after two years through three years	4,279,823		4.29		3,882,479		4.22
Due after three years through four years	3,662,221		4.41		3,086,881		4.04
Due after four years through five years	2,225,050		4.07		2,837,481		4.03
Thereafter	1,821,405		3.21		1,863,519		3.04
Total par value	46,543,681		4.89	%	45,670,302		4.85	%
Discounts	(8,920)				(10,276)
Hedging adjustments	(315,014)				(215,257)
TOTAL	$	46,219,747			$	45,444,769

FHLBank offers advances that may be prepaid without prepayment or termination fees on predetermined exercise dates (call dates) prior to the stated advance maturity (callable advances). In exchange for receiving the right to call the advance on a predetermined call schedule, the borrower may pay a higher rate for the advance relative to an equivalent maturity, non-callable advance. The borrower generally exercises its call options on these advances when interest rates decline (fixed rate advances) or spreads change (adjustable rate advances). FHLBank also offers fixed rate advances that include a put option held by FHLBank (putable advances). On the date FHLBank exercises its put option, the borrower has the option to prepay the advance in full without a fee or roll into another advance product. A putable advance carries a lower interest rate than a comparable-maturity fixed rate advance without the put feature. FHLBank would generally exercise its put option when interest rates increase. Other advances are prepayable with a prepayment fee that makes FHLBank economically indifferent to the prepayment.

Convertible advances allow FHLBank to convert an advance from one interest payment term structure to another. When issuing convertible advances, FHLBank purchases put options from a member that allow FHLBank to convert the fixed rate advance to a variable rate advance at the current market rate or another structure after an agreed-upon lockout period. A convertible advance carries a lower interest rate than a comparable-maturity fixed rate advance without the conversion feature. Convertible advances are no longer a current product offering; however, $105,900,000 remains outstanding at June 30, 2024.

Table 4.2 presents advances summarized by redemption term or next call date and by redemption term or next put or conversion date as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.2

	Redemption Term or Next Call Date				Redemption Term or Next Put or Conversion Date
Redemption Term	06/30/2024		12/31/2023		06/30/2024		12/31/2023
Due in one year or less	$	30,995,431	$	31,038,961	$	32,190,718	$	31,299,438
Due after one year through two years	4,507,500		3,920,260		4,450,064		4,552,204
Due after two years through three years	3,871,314		3,562,900		4,424,323		3,954,979
Due after three years through four years	3,274,786		2,678,103		3,113,721		2,750,881
Due after four years through five years	2,172,244		2,715,262		1,478,050		1,600,481
Thereafter	1,722,406		1,754,816		886,805		1,512,319
TOTAL PAR VALUE	$	46,543,681	$	45,670,302	$	46,543,681	$	45,670,302

Interest Rate Payment Terms: Table 4.3 details additional interest rate payment and redemption terms for advances as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.3

Redemption Term	06/30/2024		12/31/2023
Fixed rate:
Due in one year or less	$	18,020,968	$	26,714,638
Due after one year through three years	6,399,722		6,034,768
Due after three years through five years	4,883,976		5,072,017
Due after five years through fifteen years	1,732,546		1,762,808
Due after fifteen years	27,284		28,659
Total fixed rate	31,064,496		39,612,890
Variable rate:
Due in one year or less	11,999,900		3,071,600
Due after one year through three years	2,414,415		2,061,415
Due after three years through five years	1,003,295		852,345
Due after five years through fifteen years	59,075		69,552
Due after fifteen years	2,500		2,500
Total variable rate	15,479,185		6,057,412
TOTAL PAR VALUE	$	46,543,681	$	45,670,302

Credit Risk Exposure and Security Terms: FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the types and level of collateral to be the primary indicator of credit quality on advances. As of June 30, 2024 and December 31, 2023, FHLBank had rights to collateral on a borrower-by-borrower basis with an estimated value greater than its outstanding advances.

FHLBank continues to evaluate and make changes to its collateral guidelines, as necessary, based on current market conditions. As of June 30, 2024 and December 31, 2023, no advances were past due, on nonaccrual status, or considered impaired.

Based on the collateral held as security, FHLBank's credit extension and collateral policies, and repayment history on advances, no losses are expected on advances as of June 30, 2024 and December 31, 2023, and therefore no allowance for credit losses on advances was recorded.

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Mortgage Loans

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Mortgage Loans

MORTGAGE LOANS

Mortgage loans held for portfolio consist of loans obtained through the MPF Program and are either conventional mortgage loans or government-guaranteed or -insured mortgage loans. Under the MPF Program, FHLBank purchases single-family mortgage loans that are originated or acquired by participating financial institutions (PFIs). These mortgage loans are credit-enhanced by PFIs or are guaranteed or insured by Federal agencies.

Mortgage Loans Held for Portfolio: Table 5.1 presents information as of June 30, 2024 and December 31, 2023 on mortgage loans held for portfolio (in thousands). Carrying amounts exclude accrued interest receivable of $49,332,000 and $45,669,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 5.1

	06/30/2024		12/31/2023
Real estate:
Fixed rate, medium-term1, single-family mortgages	$	988,507	$	1,055,326
Fixed rate, long-term, single-family mortgages	7,660,125		7,227,825
Total unpaid principal balance	8,648,632		8,283,151
Premiums	95,453		94,485
Discounts	(6,253)		(5,591)
Deferred loan costs, net	36		39
Hedging adjustments	(13,656)		(13,840)
Total before allowance for credit losses on mortgage loans	8,724,212		8,358,244
Allowance for credit losses on mortgage loans	(4,315)		(5,531)
MORTGAGE LOANS HELD FOR PORTFOLIO, NET	$	8,719,897	$	8,352,713

1    Medium-term defined as a term of 15 years or less at origination.

Table 5.2 presents information as of June 30, 2024 and December 31, 2023 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands):

Table 5.2

	06/30/2024		12/31/2023
Conventional loans	$	8,321,184	$	7,953,624
Government-guaranteed or -insured loans	327,448		329,527
TOTAL UNPAID PRINCIPAL BALANCE	$	8,648,632	$	8,283,151

Payment Status of Mortgage Loans: Payment status is the key credit quality indicator for conventional mortgage loans and allows FHLBank to monitor borrower performance. A past due loan is one where the borrower has failed to make a full payment of principal and interest within 30 days of its due date. Other delinquency statistics include nonaccrual loans and loans in process of foreclosure.

Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of June 30, 2024 (dollar amounts in thousands):

Table 5.3

	06/30/2024
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2020		2020		2021		2022		2023		2024
Amortized Cost:1
Past due 30-59 days delinquent	$	19,893	$	3,616	$	7,901	$	5,795	$	2,713	$	909	$	40,827		$	7,494		$	48,321
Past due 60-89 days delinquent	6,788		1,108		1,333		1,064		1,085		—		11,378			2,636			14,014
Past due 90 days or more delinquent	13,046		961		261		2,155		477		—		16,900			3,611			20,511
Total past due	39,727		5,685		9,495		9,014		4,275		909		69,105			13,741			82,846
Total current loans	2,594,213		1,445,958		1,654,358		816,415		1,107,724		705,050		8,323,718			317,648			8,641,366
Total mortgage loans	$	2,633,940	$	1,451,643	$	1,663,853	$	825,429	$	1,111,999	$	705,959	$	8,392,823		$	331,389		$	8,724,212
Other delinquency statistics:
In process of foreclosure2													$	3,542		$	175		$	3,717
Serious delinquency rate3													0.2		%	1.1		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	3,611		$	3,611
Loans on nonaccrual status4													$	20,902		$	—		$	20,902

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $10,591,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2023 (dollar amounts in thousands):

Table 5.4

	12/31/2023
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2019		2019		2020		2021		2022		2023
Amortized Cost:1
Past due 30-59 days delinquent	$	19,739	$	7,135	$	5,601	$	5,955	$	6,745	$	2,746	$	47,921		$	10,327		$	58,248
Past due 60-89 days delinquent	5,013		1,319		479		931		2,047		—		9,789			2,972			12,761
Past due 90 days or more delinquent	8,063		5,185		1,354		1,170		447		—		16,219			2,659			18,878
Total past due	32,815		13,639		7,434		8,056		9,239		2,746		73,929			15,958			89,887
Total current loans	1,770,552		971,328		1,506,877		1,720,492		852,858		1,128,557		7,950,664			317,693			8,268,357
Total mortgage loans	$	1,803,367	$	984,967	$	1,514,311	$	1,728,548	$	862,097	$	1,131,303	$	8,024,593		$	333,651		$	8,358,244
Other delinquency statistics:
In process of foreclosure2													$	6,008		$	763		$	6,771
Serious delinquency rate3													0.2		%	0.8		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	2,657		$	2,657
Loans on nonaccrual status4													$	19,383		$	—		$	19,383

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $12,502,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Allowance for Credit Losses:

Conventional Mortgage Loans: Conventional loans are evaluated collectively when similar risk characteristics exist. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowance for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current economic conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a third-party projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior. The forecasts used in the calculation of expected credit losses cover the contractual terms of the loans rather than a reversion to historical trends after a forecasted period. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses.

Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or by using third party estimates or property valuation model(s). The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses.

FHLBank established an allowance for credit losses on its conventional mortgage loans held for portfolio. Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three and six months ended June 30, 2024 and 2023.

Table 5.5

	Three Months Ended				Six Months Ended
Conventional Loans	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of the period	$	5,202	$	5,836	$	5,531	$	6,378
Net (charge-offs) recoveries	(24)		48		(153)		(92)
Provision (reversal) for credit losses	(863)		746		(1,063)		344
Balance, end of the period	$	4,315	$	6,630	$	4,315	$	6,630

Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, and/or the Department of Housing and Urban Development. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial; consequently, no allowance for credit losses for government-guaranteed or -insured mortgage loans was recorded as of June 30, 2024 and December 31, 2023. Furthermore, none of these mortgage loans have been placed on nonaccrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.

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Derivatives And Hedging Activities

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging Activities

DERIVATIVES AND HEDGING ACTIVITIES

Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of June 30, 2024 and December 31, 2023 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral.

Table 6.1

	06/30/2024						12/31/2023
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate swaps	$	40,379,766	$	128,645	$	356,687	$	44,804,870	$	116,352	$	410,595
Total derivatives designated as hedging relationships	40,379,766		128,645		356,687		44,804,870		116,352		410,595
Derivatives not designated as hedging instruments:
Interest rate swaps	6,607,099		19,451		90		6,383,296		22,072		152
Interest rate caps/floors	1,804,000		4,194		—		304,000		698		—
Mortgage delivery commitments	62,180		64		30		41,641		133		5
Total derivatives not designated as hedging instruments	8,473,279		23,709		120		6,728,937		22,903		157
TOTAL	$	48,853,045	152,354		356,807		$	51,533,807	139,255		410,752
Netting adjustments and cash collateral1			164,176		(355,856)				211,112		(409,892)
DERIVATIVE ASSETS AND LIABILITIES			$	316,530	$	951			$	350,367	$	860

1    Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

FHLBank carries derivative instruments at fair value on its Statements of Condition. Changes in fair value of the derivative hedging instrument and the hedged item attributable to the hedged risk for designated fair value hedges are recorded in net interest income in the same line as the earnings effect of the hedged item.

Gains (losses) on fair value hedges include unrealized changes in fair value as well as net interest settlements. For the three months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.2 (in thousands):

Table 6.2

	Three Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	634,504	$	193,900	$	233,774	$	669,999
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	57,347	$	42,784	$	(3,609)	$	(29,912)
Hedged items2	17,281		13,646		1,640		(42,552)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	74,628	$	56,430	$	(1,969)	$	(72,464)

	Three Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	613,730	$	144,744	$	288,183	$	539,939
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	241,132	$	155,006	$	(19,567)	$	(169,181)
Hedged items2	(179,348)		(100,723)		8,142		95,419
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	61,784	$	54,283	$	(11,425)	$	(73,762)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

For the six months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.3 (in thousands):

Table 6.3

	Six Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,226,491	$	383,959	$	461,315	$	1,293,539
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	252,237	$	188,471	$	(6,663)	$	(114,399)
Hedged items2	(99,758)		(74,607)		2,353		(35,509)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	152,479	$	113,864	$	(4,310)	$	(149,908)

	Six Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,150,324	$	261,580	$	551,704	$	1,001,821
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	162,326	$	83,788	$	(2,909)	$	(114,280)
Hedged items2	(60,907)		10,777		(17,749)		(28,759)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	101,419	$	94,565	$	(20,658)	$	(143,039)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

Table 6.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of June 30, 2024 and December 31, 2023 (in thousands):

Table 6.4

06/30/2024
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	14,400,473	$	(307,745)	$	(7,269)	$	(315,014)
Available-for-sale securities	7,172,766		(331,365)		—		(331,365)
Consolidated obligation discount notes	(4,699,519)		4,665		—		4,665
Consolidated obligation bonds	(13,227,169)		330,478		(5,744)		324,734
12/31/2023
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	13,545,019	$	(206,332)	$	(8,924)	$	(215,256)
Available-for-sale securities	6,367,691		(256,757)		—		(256,757)
Consolidated discount notes	(3,874,550)		2,313		—		2,313
Consolidated obligation bonds	(20,374,603)		366,180		(5,937)		360,243

1    Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated other comprehensive income (AOCI) is excluded).

2    Included in amortized cost of the hedged asset/liability.

Table 6.5 provides information regarding net gains (losses) on derivatives recorded in non-interest income (in thousands).

Table 6.5

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Derivatives not designated as hedging instruments:
Economic hedges:
Interest rate swaps	$	(5,118)	$	11,371	$	(4,344)	$	3,084
Interest rate caps/floors	(1,192)		475		(1,796)		125
Net interest settlements	8,282		9,257		16,820		17,555
Price alignment interest	(117)		(182)		(242)		(391)
Mortgage delivery commitments	(177)		(627)		(232)		(604)
NET GAINS (LOSSES) ON DERIVATIVES	$	1,678	$	20,294	$	10,206	$	19,769

For uncleared derivative transactions, FHLBank has entered into bilateral security agreements with its counterparties with bilateral-collateral-exchange provisions that require all credit exposures be collateralized, subject to minimum transfer amounts.

Bilateral derivative transactions executed on or after September 1, 2022, are subject to two-way initial margin requirements if aggregate uncleared derivative exposure to a counterparty exceeds a specified threshold. The initial margin is required to be held at a third-party custodian, and the secured party can only take ownership upon the occurrence of certain events, including an event of default due to bankruptcy, insolvency, or similar proceeding. As of June 30, 2024, FHLBank was not required to pledge to or receive initial margin from bilateral derivative counterparties.

FHLBank utilizes two Derivative Clearing Organizations (Clearinghouse) for all cleared derivative transactions, LCH Limited and CME Clearing. At both Clearinghouses, initial margin is considered cash collateral. For cleared derivatives, the Clearinghouse determines initial margin requirements and generally, credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to credit rating downgrades. FHLBank was not required to post additional initial margin by its clearing agents as of June 30, 2024 and December 31, 2023.

FHLBank’s net exposure on derivative agreements is presented in Note 9.

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Deposits

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

Deposits

DEPOSITS

FHLBank offers demand, overnight and short-term deposit programs to its members and to other qualifying non-members. A member that services mortgage loans may also deposit funds collected in connection with the mortgage loans, pending disbursement of these funds to the owners of the mortgage loans. FHLBank classifies these funds as other deposits. Deposits classified as demand and overnight pay interest based on a daily interest rate. Term deposits pay interest based on a fixed rate determined at the issuance of the deposit.

Table 7.1 details the types of deposits held by FHLBank as of June 30, 2024 and December 31, 2023 (in thousands):

Table 7.1

	06/30/2024		12/31/2023
Interest-bearing:
Demand	$	324,971	$	297,267
Overnight	423,300		391,900
Term	9,400		10,650
Total interest-bearing	757,671		699,817
Non-interest-bearing:
Other	59,401		52,383
Total non-interest-bearing	59,401		52,383
TOTAL DEPOSITS	$	817,072	$	752,200

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Consolidated Obligations

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Consolidated Obligations

CONSOLIDATED OBLIGATIONS

Consolidated Obligation Bonds: Table 8.1 presents FHLBank’s participation in consolidated obligation bonds outstanding as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 8.1

	06/30/2024				12/31/2023
Year of Contractual Maturity	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	34,655,725	4.89	%	$	28,152,305	4.90	%
Due after one year through two years	9,574,220		4.49		9,327,370		4.21
Due after two years through three years	4,066,610		2.35		4,294,125		2.01
Due after three years through four years	1,691,350		2.89		1,780,895		2.01
Due after four years through five years	1,474,000		3.62		1,467,440		2.96
Thereafter	4,925,005		3.19		4,387,255		2.63
Total par value	56,386,910		4.40	%	49,409,390		4.15	%
Premiums	11,423				12,874
Discounts	(2,473)				(3,108)
Concession fees	(11,970)				(11,424)
Hedging adjustments	(324,734)				(360,243)
TOTAL	$	56,059,156			$	49,047,489

FHLBank issues optional principal redemption bonds (callable bonds) that may be redeemed in whole or in part at the discretion of FHLBank on predetermined call dates in accordance with terms of bond offerings. FHLBank’s consolidated obligation bonds outstanding as of June 30, 2024 and December 31, 2023 includes callable bonds totaling $18,362,300,000 and $22,940,000,000, respectively. Table 8.2 summarizes FHLBank’s consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.2

Year of Maturity or Next Call Date	06/30/2024		12/31/2023
Due in one year or less	$	45,978,225	$	40,475,305
Due after one year through two years	7,458,720		6,503,370
Due after two years through three years	1,482,610		1,227,125
Due after three years through four years	793,850		362,895
Due after four years through five years	259,000		493,940
Thereafter	414,505		346,755
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.3

	06/30/2024		12/31/2023
Fixed rate	$	21,241,410	$	28,093,390
Simple variable rate	33,518,500		19,524,000
Step	1,627,000		1,792,000
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

Consolidated Discount Notes: Table 8.4 summarizes FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands):

Table 8.4

	Carrying Value		Par Value		Weighted Average Interest Rate1
June 30, 2024	$	18,209,813	$	18,418,401	5.11	%
December 31, 2023	$	20,743,249	$	20,903,145	5.15	%

1    Represents yield to maturity excluding concession fees.

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Assets and Liabilities Subject to Offsetting

6 Months Ended

Jun. 30, 2024

Offsetting [Abstract]

Assets and Liabilities Subject to Offsetting

ASSETS AND LIABILITIES SUBJECT TO OFFSETTING

FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, including associated accrued interest.

FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

Tables 9.1 and 9.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.1

06/30/2024
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	140,522	$	(138,570)	$	1,952	$	(64)	$	1,888
Cleared derivatives	11,832		302,746		314,578		—		314,578
Total derivative assets	152,354		164,176		316,530		(64)		316,466
Securities purchased under agreements to resell	2,925,000		—		2,925,000		(2,925,000)		—
TOTAL	$	3,077,354	$	164,176	$	3,241,530	$	(2,925,064)	$	316,466

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.2

12/31/2023
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	136,141	$	(133,650)	$	2,491	$	(133)	$	2,358
Cleared derivatives	3,114		344,762		347,876		—		347,876
Total derivative assets	139,255		211,112		350,367		(133)		350,234
Securities purchased under agreements to resell	3,875,000		—		3,875,000		(3,875,000)		—
TOTAL	$	4,014,255	$	211,112	$	4,225,367	$	(3,875,133)	$	350,234

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Tables 9.3 and 9.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.3

06/30/2024
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	353,412	$	(352,461)	$	951	$	(30)	$	921
Cleared derivatives	3,395		(3,395)		—		—		—
Total derivative liabilities	356,807		(355,856)		951		(30)		921
TOTAL	$	356,807	$	(355,856)	$	951	$	(30)	$	921

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.4

12/31/2023
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	402,527	$	(401,667)	$	860	$	(5)	$	855
Cleared derivatives	8,225		(8,225)		—		—		—
Total derivative liabilities	410,752		(409,892)		860		(5)		855
TOTAL	$	410,752	$	(409,892)	$	860	$	(5)	$	855

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

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Capital

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Capital

CAPITAL

Capital Requirements: FHLBank is subject to three capital requirements under the provisions of the Gramm-Leach-Bliley Act (GLB Act) and the FHFA's capital structure regulation. Regulatory capital does not include AOCI but does include mandatorily redeemable capital stock.

•Risk-based capital. FHLBank must maintain at all times permanent capital in an amount at least equal to the sum of its credit risk, market risk and operational risk capital requirements. The risk-based capital requirements are all calculated in accordance with the rules and regulations of the FHFA. Only permanent capital, defined as the amounts paid-in for Class B Common Stock and retained earnings, can be used by FHLBank to satisfy its risk-based capital requirement. The FHFA may require FHLBank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined, but the FHFA has not placed any such requirement on FHLBank to date.

•Total regulatory capital. The GLB Act requires FHLBank to maintain at all times at least a 4.0 percent total capital-to-asset ratio. Total regulatory capital is defined as the sum of permanent capital, Class A Common Stock, any general loss allowance, if consistent with GAAP and not established for specific assets, and other amounts from sources determined by the FHFA as available to absorb losses.

•Leverage capital. FHLBank is required to maintain at all times a leverage capital-to-assets ratio of at least 5.0 percent, with the leverage capital ratio defined as the sum of permanent capital weighted 1.5 times and non-permanent capital (currently only Class A Common Stock) weighted 1.0 times, divided by total assets.

Table 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 10.1

	06/30/2024						12/31/2023
	Required			Actual			Required			Actual
Regulatory capital requirements:
Risk-based capital	$	805,359		$	3,932,532		$	746,439		$	3,730,738
Total regulatory capital-to-asset ratio	4.0		%	5.3		%	4.0		%	5.4		%
Total regulatory capital	$	3,190,201		$	4,251,892		$	2,997,879		$	4,009,870
Leverage capital ratio	5.0		%	7.8		%	5.0		%	7.8		%
Leverage capital	$	3,987,752		$	6,218,158		$	3,747,349		$	5,875,238

Mandatorily Redeemable Capital Stock: FHLBank is a cooperative whose members own most of FHLBank’s capital stock. Former members (including certain non-members that own FHLBank capital stock as a result of merger or acquisition, relocation, charter termination, or involuntary termination of an FHLBank member) own the remaining capital stock to support business transactions still carried on FHLBank's Statements of Condition. Shares cannot be purchased or sold except between FHLBank and its members at a price equal to the $100 per share par value.

Table 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three and six months ended June 30, 2024 and 2023 (in thousands):

Table 10.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of period	$	205	$	269	$	247	$	280
Capital stock subject to mandatory redemption reclassified from equity during the period	77,949		282,260		232,442		493,497
Redemption or repurchase of mandatorily redeemable capital stock during the period	(74,762)		(282,271)		(229,299)		(493,521)
Stock dividend classified as mandatorily redeemable capital stock during the period	50		5		52		7
Balance, end of period	$	3,442	$	263	$	3,442	$	263

Excess Capital Stock: Excess capital stock is defined as the amount of stock held by a member (or former member) in excess of that institution’s minimum stock purchase requirement. FHFA rules limit the ability of FHLBank to create excess member stock under certain circumstances. For example, FHLBank may not pay dividends in the form of capital stock or issue new excess stock to members if FHLBank’s excess stock exceeds one percent of its total assets or if the issuance of excess stock would cause FHLBank’s excess stock to exceed one percent of its total assets. As of June 30, 2024, FHLBank’s excess stock was less than one percent of total assets.

Capital Classification Determination: The FHFA determines each FHLBank’s capital classification on at least a quarterly basis. If an FHLBank is determined to be other than adequately capitalized, that FHLBank becomes subject to additional supervisory authority by the FHFA. Before implementing a reclassification, the Director of the FHFA is required to provide an FHLBank with written notice of the proposed action and an opportunity to submit a response. As of the most recent review by the FHFA, FHLBank Topeka was classified as adequately capitalized.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

ACCUMULATED OTHER COMPREHENSIVE INCOME

Table 11.1 summarizes the changes in AOCI for the three months ended June 30, 2024 and 2023 (in thousands):

Table 11.1

	Three Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at March 31, 2023	$	(82,556)	$	173	$	(82,383)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(1,446)				(1,446)
Net current period other comprehensive income (loss)	(1,446)		—		(1,446)
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at March 31, 2024	$	(94,752)	$	(27)	$	(94,779)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)				(19,131)
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	(19,131)		169		(18,962)
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

1    Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses).

Table 11.2 summarizes the changes in AOCI for the six months ended June 30, 2024 and 2023 (in thousands):

Table 11.2

	Six Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at December 31, 2022	$	(84,443)	$	173	$	(84,270)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	441				441
Net current period other comprehensive income (loss)	441		—		441
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at December 31, 2023	$	(118,944)	$	(27)	$	(118,971)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	5,061				5,061
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	5,061		169		5,230
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

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Fair Values

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Values

FAIR VALUES

The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by FHLBank using available market and other pertinent information and reflect FHLBank’s best judgment of appropriate valuation methods. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Although FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique. Therefore, the fair values may not be indicative of the amounts that would have been realized in market transactions as of June 30, 2024 and December 31, 2023. Additionally, these values do not represent an estimate of the overall market value of FHLBank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities.

Subjectivity of Estimates: Estimates of the fair value of advances with options, mortgage instruments, and derivatives with embedded options are subjective and require judgments regarding significant matters such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, methods to determine possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates.

Fair Value Hierarchy: The fair value hierarchy requires FHLBank to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of the market observability of the fair value measurement for the asset or liability. FHLBank must disclose the level within the fair value hierarchy in which the measurements are classified for all assets and liabilities.

The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels:

•Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that FHLBank can access on the measurement date. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

•Level 2 Inputs – Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (1) quoted prices for similar assets and liabilities in active markets; (2) quoted prices for similar assets and liabilities in markets that are not active; (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals and implied volatilities); and (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3 Inputs – Unobservable inputs for the asset or liability. Valuations are derived from techniques that use significant assumptions not observable in the market, which include pricing models, discounted cash flow models using an unobservable discount rate, or similar techniques.

FHLBank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. There were no transfers of assets or liabilities between fair value levels during the three and six months ended June 30, 2024 and 2023.

Tables 12.1 and 12.2 present the carrying value, fair value and fair value hierarchy of financial assets and liabilities as of June 30, 2024 and December 31, 2023. FHLBank records trading securities, available-for-sale securities, derivative assets, and derivative liabilities at fair value on a recurring basis, and on occasion certain mortgage loans held for portfolio and certain other assets at fair value on a nonrecurring basis. FHLBank measures all other financial assets and liabilities at amortized cost. Further details about the financial assets and liabilities held at fair value on either a recurring or non-recurring basis are presented in Tables 12.3 and 12.4.

The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of June 30, 2024 and December 31, 2023 are summarized in Tables 12.1 and 12.2 (in thousands):

Table 12.1

	06/30/2024
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,550	$	26,550	$	26,550	$	—	$	—	$	—
Interest-bearing deposits	2,339,648		2,339,114		—		2,339,114		—		—
Securities purchased under agreements to resell	2,925,000		2,925,000		—		2,925,000		—		—
Federal funds sold	5,292,000		5,292,000		—		5,292,000		—		—
Trading securities	843,742		843,742		—		843,742		—		—
Available-for-sale securities	12,466,957		12,466,957		—		12,466,957		—		—
Held-to-maturity securities	247,993		244,428		—		210,199		34,229		—
Advances	46,219,747		46,240,518		—		46,240,518		—		—
Mortgage loans held for portfolio, net of allowance	8,719,897		7,725,206		—		7,721,106		4,100		—
Accrued interest receivable	275,977		275,977		—		275,977		—		—
Derivative assets	316,530		316,530		—		152,354		—		164,176
Liabilities:
Deposits	817,072		817,069		—		817,069		—		—
Consolidated obligation discount notes	18,209,813		18,210,161		—		18,210,161		—		—
Consolidated obligation bonds	56,059,156		55,121,561		—		55,121,561		—		—
Mandatorily redeemable capital stock	3,442		3,442		3,442		—		—		—
Accrued interest payable	380,927		380,927		—		380,927		—		—
Derivative liabilities	951		951		—		356,807		—		(355,856)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,491		—		32,491		—		—
Financing obligation payable	(35,000)		(32,491)		—		(32,491)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

Table 12.2

	12/31/2023
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,062	$	26,062	$	26,062	$	—	$	—	$	—
Interest-bearing deposits	1,604,989		1,604,989		—		1,604,989		—		—
Securities purchased under agreements to resell	3,875,000		3,875,000		—		3,875,000		—		—
Federal funds sold	2,080,000		2,080,000		—		2,080,000		—		—
Trading securities	908,608		908,608		—		908,608		—		—
Available-for-sale securities	11,753,453		11,753,453		—		11,753,453		—		—
Held-to-maturity securities	264,796		260,653		—		225,444		35,209		—
Advances	45,444,769		45,452,358		—		45,452,358		—		—
Mortgage loans held for portfolio, net of allowance	8,352,713		7,493,015		—		7,490,867		2,148		—
Accrued interest receivable	204,243		204,243		—		204,243		—		—
Derivative assets	350,367		350,367		—		139,255		—		211,112
Liabilities:
Deposits	752,200		752,209		—		752,209		—		—
Consolidated obligation discount notes	20,743,249		20,743,707		—		20,743,707		—		—
Consolidated obligation bonds	49,047,489		48,096,791		—		48,096,791		—		—
Mandatorily redeemable capital stock	247		247		247		—		—		—
Accrued interest payable	361,840		361,840		—		361,840		—		—
Derivative liabilities	860		860		—		410,752		—		(409,892)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,695		—		32,695		—		—
Financing obligation payable	(35,000)		(32,695)		—		(32,695)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

Fair Value Measurements: Tables 12.3 and 12.4 present, for each hierarchy level, FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended June 30, 2024 and December 31, 2023 (in thousands).

Table 12.3

	06/30/2024
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	241,444	$	—	$	241,444	$	—	$	—
GSE MBS	602,298		—		602,298		—		—
Total trading securities	843,742		—		843,742		—		—
Available-for-sale securities:
U.S. Treasury obligations	3,173,580		—		3,173,580		—		—
U.S. obligation MBS	88,847		—		88,847		—		—
GSE MBS	9,204,530		—		9,204,530		—		—
Total available-for-sale securities	12,466,957		—		12,466,957		—		—
Derivative assets:
Interest-rate related	316,466		—		152,290		—		164,176
Mortgage delivery commitments	64		—		64		—		—
Total derivative assets	316,530		—		152,354		—		164,176
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,627,229	$	—	$	13,463,053	$	—	$	164,176
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	921	$	—	$	356,777	$	—	$	(355,856)
Mortgage delivery commitments	30		—		30		—		—
Total derivative liabilities	951		—		356,807		—		(355,856)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	951	$	—	$	356,807	$	—	$	(355,856)
Nonrecurring fair value measurements - Assets2:
Impaired mortgage loans	$	4,146	$	—	$	—	$	4,146	$	—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	4,146	$	—	$	—	$	4,146	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the six months ended June 30, 2024 and still outstanding as of June 30, 2024.

Table 12.4

	12/31/2023
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	288,438	$	—	$	288,438	$	—	$	—
GSE MBS	620,170		—		620,170		—		—
Total trading securities	908,608		—		908,608		—		—
Available-for-sale securities:
U.S. Treasury obligations	2,937,868		—		2,937,868		—		—
U.S. obligation MBS	107,535		—		107,535		—		—
GSE MBS	8,708,050		—		8,708,050		—		—
Total available-for-sale securities	11,753,453		—		11,753,453		—		—
Derivative assets:
Interest-rate related	350,234		—		139,122		—		211,112
Mortgage delivery commitments	133		—		133		—		—
Total derivative assets	350,367		—		139,255		—		211,112
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,012,428	$	—	$	12,801,316	$	—	$	211,112
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	855	$	—	$	410,747	$	—	$	(409,892)
Mortgage delivery commitments	5		—		5		—		—
Total derivative liabilities	860		—		410,752		—		(409,892)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	860	$	—	$	410,752	$	—	$	(409,892)
Nonrecurring fair value measurements - Assets2:
Held-to-maturity securities:
Impaired mortgage loans	$	2,178	$	—	$	—	$	2,178	$	—
Real estate owned	43		—		—		43		—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	2,221	$	—	$	—	$	2,221	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the year ended December 31, 2023 and still outstanding as of December 31, 2023.

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Commitments And Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Joint and Several Liability: As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks. The par amounts for which FHLBank Topeka is jointly and severally liable were approximately $1,117,189,190,000 and $1,134,003,465,000 as of June 30, 2024 and December 31, 2023, respectively.

Off-balance Sheet Commitments: Table 13.1 presents off-balance sheet commitments at June 30, 2024 and December 31, 2023 (in thousands). No allowance for credit losses was recorded on these commitments at June 30, 2024 and December 31, 2023.

Table 13.1

	06/30/2024						12/31/2023
Notional Amount	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit outstanding	$	7,086,338	$	59,337	$	7,145,675	$	7,242,988	$	5,670	$	7,248,658
Advance commitments outstanding	12,636		3,069		15,705		48,526		3,615		52,141
Principal commitments for standby bond purchase agreements	116,055		869,045		985,100		283,220		716,295		999,515
Commitments to fund or purchase mortgage loans	62,180		—		62,180		41,641		—		41,641
Commitments to issue consolidated bonds, at par	2,000		—		2,000		1,300,000		—		1,300,000
Commitments to issue consolidated discount notes, at par	55,912		—		55,912		—		—		—

Commitments to Extend Credit: FHLBank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. These standby letters of credit are subject to the same collateralization and borrowing limits that are applicable to advances and are fully collateralized at the time of issuance with assets allowed by FHLBank’s Member Products Policy (MPP). Standby letters of credit may be offered to assist members and non-member housing associates in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If FHLBank is required to make payment for a beneficiary's draw, the member either reimburses FHLBank for the amount drawn or, subject to FHLBank's discretion, the amount drawn may be converted into a collateralized advance to the member. However, standby letters of credit usually expire without being drawn upon. FHLBank's current outstanding standby letters of credit expire no later than 2026. Unearned fees as well as the value of the guarantees related to standby letters of credit are recorded in other liabilities and amounted to $2,542,000 and $2,367,000 as of June 30, 2024 and December 31, 2023, respectively. Advance commitments legally bind and unconditionally obligate FHLBank for additional advances up to 24 months in the future. Based upon management’s credit analysis of members and collateral requirements under the MPP, FHLBank does not expect to incur any credit losses on the outstanding letters of credit or advance commitments.

Standby Bond-Purchase Agreements: FHLBank has entered into standby bond purchase agreements with state housing authorities whereby FHLBank, for a fee, agrees to purchase and hold the authorities’ bonds until the designated marketing agent can find a suitable investor or the housing authority repurchases the bond according to a schedule established by the standby agreement. Each standby agreement dictates the specific terms that would require FHLBank to purchase the bond and typically allows FHLBank to terminate the agreement upon the occurrence of a default event of the issuer. The bond purchase commitments entered into by FHLBank expire no later than 2029, though some are renewable at the option of FHLBank. As of June 30, 2024 and December 31, 2023, the total commitments for bond purchases included agreements with two in-district state housing authorities. FHLBank was not required to purchase any bonds under any agreements during the six months ended June 30, 2024 and 2023.

Commitments to Purchase Mortgage Loans: These commitments that unconditionally obligate FHLBank to purchase mortgage loans from participating FHLBank Topeka members in the MPF Program are generally for periods not to exceed 60 calendar days. Certain commitments are recorded as derivatives at their fair values on the Statements of Condition. FHLBank recorded mortgage delivery commitment net derivative asset balances of $34,000 and $128,000 as of June 30, 2024 and December 31, 2023, respectively.

Commitments to Issue Consolidated Obligations: FHLBank enters into commitments to issue consolidated obligation bonds and discount notes outstanding in the normal course of its business. Most settle within the shortest period possible and are considered regular way trades; however, certain commitments are recorded as derivatives at their fair values on the Statements of Condition.

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Transactions With Stockholders

6 Months Ended

Jun. 30, 2024

Federal Home Loan Banks [Abstract]

Transactions With Stockholders

TRANSACTIONS WITH STOCKHOLDERS

FHLBank is a cooperative whose members own most of the capital stock of FHLBank and generally receive dividends on their investments. In addition, certain former members that still have outstanding transactions are also required to maintain their investments in FHLBank capital stock until the transactions mature or are paid off. Nearly all outstanding advances are with current members, and the majority of outstanding mortgage loans held for portfolio were purchased from current or former members. FHLBank also maintains demand deposit accounts for members primarily to facilitate settlement activities that are directly related to advances and mortgage loan purchases.

Transactions with members are entered into in the ordinary course of business. In instances where members also have officers or directors who are directors of FHLBank, transactions with those members are subject to the same eligibility and credit criteria, as well as the same terms and conditions, as other transactions with members. For financial reporting and disclosure purposes, FHLBank defines related parties as FHLBank directors’ financial institutions and members with capital stock investments in excess of 10 percent of FHLBank’s total regulatory capital stock outstanding, which includes mandatorily redeemable capital stock.

Activity with Members that Exceed a 10 Percent Ownership in FHLBank Regulatory Capital Stock: Tables 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). An officer of BOKF, N.A. currently serves on FHLBank’s board of directors.

Table 14.1

06/30/2024
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	3,202	1.0	%	$	510,050	21.1	%	$	513,252	18.7	%
BOKF, N.A.	OK	72,297		22.6		325,208		13.4		397,505		14.5
TOTAL		$	75,499	23.6	%	$	835,258	34.5	%	$	910,757	33.2	%

Table 14.2

12/31/2023
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	35,473	12.7	%	$	443,345	19.0	%	$	478,818	18.4	%
BOKF, N.A.	OK	500		0.2		347,012		14.9		347,512		13.3
TOTAL		$	35,973	12.9	%	$	790,357	33.9	%	$	826,330	31.7	%

Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 are summarized in Table 14.3 (dollar amounts in thousands).

Table 14.3

	06/30/2024				12/31/2023				06/30/2024				12/31/2023
Member Name	Outstanding Advances		Percent of Total		Outstanding Advances		Percent of Total		Outstanding Deposits		Percent of Total		Outstanding Deposits		Percent of Total
MidFirst Bank	$	10,840,000	23.3	%	$	9,585,000	21.0	%	$	5,078	0.6	%	$	3,751	0.5	%
BOKF, N.A.	6,500,000		14.0		7,675,000		16.8		58,766		7.2		22,325		3.0	%
TOTAL	$	17,340,000	37.3	%	$	17,260,000	37.8	%	$	63,844	7.8	%	$	26,076	3.5	%

BOKF, N.A. sold $12,143,000 and $20,941,000 mortgage loans into the MPF Program during the three and six months ended June 30, 2024, respectively. MidFirst Bank did not sell any mortgage loans into the MPF Program during the three and six months ended June 30, 2024 and 2023.

Transactions with FHLBank Directors’ Financial Institutions: Table 14.4 presents information as of June 30, 2024 and December 31, 2023 for members that had an officer or director serving on FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock.

Table 14.4

	06/30/2024				12/31/2023
	Outstanding Amount		Percent of Total		Outstanding Amount		Percent of Total
Advances	$	6,700,733	14.4	%	$	270,308	0.6	%
Deposits	$	61,071	7.5	%	$	7,314	1.0	%
Class A Common Stock	$	76,257	23.9	%	$	4,314	1.5	%
Class B Common Stock	337,262		13.9		14,924		0.6
TOTAL CAPITAL STOCK	$	413,519	15.1	%	$	19,238	0.7	%

Table 14.5 presents mortgage loans acquired during the three and six months ended June 30, 2024 and 2023 for members that had an officer or director serving on FHLBank’s board of directors in 2024 or 2023 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors.

Table 14.5

	Three Months Ended								Six Months Ended
	06/30/2024				06/30/2023				06/30/2024				06/30/2023
	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
Mortgage loans acquired	$	19,738	4.0	%	$	4,473	1.3	%	$	34,984	4.6	%	$	8,984	1.7	%

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Transactions With Other FHLBanks

6 Months Ended

Jun. 30, 2024

Federal Home Loan Banks [Abstract]

Transactions With Other Fhlbanks

TRANSACTIONS WITH OTHER FHLBANKS

From time to time, one FHLBank may transfer to another FHLBank the consolidated obligations for which the transferring FHLBank was originally the primary obligor but upon transfer the assuming FHLBank becomes the primary obligor. During the first quarter of 2023, FHLBank Topeka transferred debt obligations with a par amount of $1,000,000,000 to another FHLBank. There were no transfers of debt obligations to other FHLBanks during the three and six months ended June 30, 2024.

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation, Policy

Basis of Presentation: The accompanying interim financial statements of FHLBank are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instruction provided by Article 10, Rule 10-01 of Regulation S-X. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of FHLBank’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period.

FHLBank’s significant accounting policies and certain other disclosures are set forth in the notes to the audited financial statements for the year ended December 31, 2023. The interim financial statements presented herein should be read in conjunction with FHLBank’s audited financial statements and notes thereto, which are included in FHLBank’s annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 11, 2024 (annual report on Form 10-K). The notes to the interim financial statements highlight significant changes to the notes included in the annual report on Form 10-K.

Use Of Estimates, Policy

Use of Estimates: The preparation of financial statements under GAAP requires management to make estimates and assumptions as of the date of the financial statements in determining the reported amounts of assets, liabilities and estimated fair values and in determining the disclosure of any contingent assets or liabilities. Estimates and assumptions by management also affect the reported amounts of income and expense during the reporting period. The most significant of these estimates include the fair value of derivatives. Many of the estimates and assumptions, including those used in financial models, are based on financial market conditions as of the date of the financial statements. Because of the volatility of the financial markets, as well as other factors that affect management estimates, actual results may vary from these estimates.

New Accounting Pronouncements, Policy

Segment Reporting (ASU 2023-07). In July 2023, the FASB issued amendments to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocations of capital for additional, more detailed information about a reportable segment’s expenses, including entities with a single reportable segment. The ASU is effective for FHLBank for the annual period ending December 31, 2024 and will be effective for interim periods beginning January 1, 2025. The adoption of this guidance is not expected to have a material effect on FHLBank’s disclosures.

Credit Loss, Financial Instrument, Policy

Interest-Bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold: FHLBank invests in interest-bearing deposits, securities purchased under agreements to resell, and Federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by a Nationally Recognized Statistical Rating Organization (NRSRO). These may differ from internal ratings of the investments, if applicable. As of June 30, 2024, approximately 25 percent of these overnight investments were with counterparties not rated by an NRSRO. All transactions with unrated counterparties are secured transactions.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. FHFA regulations include a limit on the amount of unsecured credit FHLBank may extend to a counterparty. As of June 30, 2024 and December 31, 2023, all investments in interest-bearing deposits and Federal funds sold were repaid or expected to be repaid according to the contractual terms. No allowance for credit losses was recorded for these assets as of June 30, 2024 and December 31, 2023. Carrying values of interest-bearing deposits and Federal funds sold exclude accrued interest receivable of $3,689,000 and $2,353,000, respectively, as of June 30, 2024, and $3,271,000 and $927,000, respectively, as of December 31, 2023.

Securities purchased under agreements to resell are short-term and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). Based upon the collateral held as security and collateral maintenance provisions with its counterparties, FHLBank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell as of June 30, 2024 and December 31, 2023. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $1,324,000 and $1,749,000 as of June 30, 2024 and December 31, 2023, respectively.

Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Securities: FHLBank evaluates available-for-sale and held-to-maturity investment securities for credit losses on a quarterly basis. As of June 30, 2024 and 2023, FHLBank did not recognize a provision for credit losses associated with available-for-sale investments or held-to-maturity investments.

Although certain available-for-sale securities were in an unrealized loss position, these losses are considered temporary as FHLBank expects to recover the entire amortized cost basis on these available-for-sale investment securities. FHLBank neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security's remaining amortized cost basis.

FHLBank's held-to-maturity and available-for-sale securities: (1) were all highly rated and/or had short remaining terms to maturity; (2) had not experienced, nor did FHLBank expect, any payment default on the instruments; (3) in the case of U.S. obligations, carry an explicit government guarantee such that FHLBank considers the risk of nonpayment to be zero; and (4) in the case of GSE debentures or MBS, the securities are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs.

Credit Risk Exposure and Security Terms: FHLBank manages its credit exposure to advances through an integrated approach that includes establishing a credit limit for each borrower. This approach includes an ongoing review of each borrower's financial condition, in conjunction with FHLBank's collateral and lending policies to limit risk of loss, while balancing borrowers' needs for a reliable source of funding. Using a risk-based approach and taking into consideration each borrower's financial strength, FHLBank considers the types and level of collateral to be the primary indicator of credit quality on advances.

Allowance for Credit Losses:

Conventional Mortgage Loans: Conventional loans are evaluated collectively when similar risk characteristics exist. Conventional loans that do not share risk characteristics with other pools are evaluated for expected credit losses on an individual basis. FHLBank determines its allowance for credit losses on conventional loans through analyses that include consideration of various loan portfolio and collateral-related characteristics, such as past performance, current economic conditions, and reasonable and supportable forecasts of expected economic conditions. FHLBank uses a third-party projected cash flow model to estimate expected credit losses over the life of the loans. This model relies on a number of inputs, such as both current and forecasted property values and interest rates as well as historical borrower behavior. The forecasts used in the calculation of expected credit losses cover the contractual terms of the loans rather than a reversion to historical trends after a forecasted period. FHLBank also incorporates associated credit enhancements, as available, to determine its estimate of expected credit losses.

Certain conventional loans may be evaluated for credit losses using the practical expedient for collateral dependent assets. A mortgage loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be substantially through the sale of the underlying collateral. FHLBank may estimate the fair value of this collateral by applying an appropriate loss severity rate or by using third party estimates or property valuation model(s). The expected credit loss of a collateral dependent mortgage loan is equal to the difference between the amortized cost of the loan and the estimated fair value of the collateral, less estimated selling costs. FHLBank records a direct charge-off of the loan balance if certain triggering criteria are met. Expected recoveries of prior charge-offs, if any, are included in the allowance for credit losses.

Government-Guaranteed or -Insured Mortgage Loans: FHLBank invests in fixed rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, the Rural Housing Service of the Department of Agriculture, and/or the Department of Housing and Urban Development. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-guaranteed or -insured mortgage loans. Based on FHLBank's assessment of its servicers and the collateral backing the loans, the risk of loss was immaterial; consequently, no allowance for credit losses for government-guaranteed or -insured mortgage loans was recorded as of June 30, 2024 and December 31, 2023. Furthermore, none of these mortgage loans have been placed on nonaccrual status because of the U.S. government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met.

Derivatives, Offsetting Fair Value Amounts, Policy

FHLBank presents certain financial instruments, including derivatives, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, including associated accrued interest.

FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

Fair Value of Financial Instruments, Policy

The fair value amounts recorded on the Statements of Condition and presented in the note disclosures have been determined by FHLBank using available market and other pertinent information and reflect FHLBank’s best judgment of appropriate valuation methods. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Although FHLBank uses its best judgment in estimating the fair value of its financial instruments, there are inherent limitations in any valuation technique.

Fair Value Transfer, Policy

FHLBank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Trading Securities by Major Security Type

Trading securities by major security type as of June 30, 2024 and December 31, 2023 are summarized in Table 3.1 (in thousands):

Table 3.1

	Fair Value
	06/30/2024		12/31/2023
Non-mortgage-backed securities:
GSE debentures	$	241,444	$	288,438
Non-mortgage-backed securities	241,444		288,438
Mortgage-backed securities:
GSE MBS	602,298		620,170
Mortgage-backed securities	602,298		620,170
TOTAL	$	843,742	$	908,608

Net Gains (Losses) on Trading Securities

Net gains (losses) on trading securities during the three and six months ended June 30, 2024 and 2023 are shown in Table 3.2 (in thousands):

Table 3.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Net gains (losses) on trading securities held as of June 30, 2024	$	3,691	$	(6,039)	$	5,116	$	388
Net gains (losses) on trading securities sold or matured prior to June 30, 2024	247		1,438		613		3,995
NET GAINS (LOSSES) ON TRADING SECURITIES	$	3,938	$	(4,601)	$	5,729	$	4,383

Available-for-sale Securities by Major Security Type

Available-for-sale securities by major security type as of June 30, 2024 are summarized in Table 3.3 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $34,648,000 as of June 30, 2024.

Table 3.3

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	3,233,566	$	—	$	(59,986)	$	3,173,580
Non-mortgage-backed securities	3,233,566		—		(59,986)		3,173,580
Mortgage-backed securities:
U.S. obligation MBS	90,164		—		(1,317)		88,847
GSE MBS	9,257,110		39,266		(91,846)		9,204,530
Mortgage-backed securities	9,347,274		39,266		(93,163)		9,293,377
TOTAL	$	12,580,840	$	39,266	$	(153,149)	$	12,466,957

Available-for-sale securities by major security type as of December 31, 2023 are summarized in Table 3.4 (in thousands). Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and fair value hedge accounting adjustments, and excludes accrued interest receivable of $29,768,000 as of December 31, 2023.

Table 3.4

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
U.S. Treasury obligations	$	2,983,880	$	—	$	(46,012)	$	2,937,868
Non-mortgage-backed securities	2,983,880		—		(46,012)		2,937,868
Mortgage-backed securities:
U.S. obligation MBS	109,083		—		(1,548)		107,535
GSE MBS	8,779,434		32,178		(103,562)		8,708,050
Mortgage-backed securities	8,888,517		32,178		(105,110)		8,815,585
TOTAL	$	11,872,397	$	32,178	$	(151,122)	$	11,753,453

Available-for-sale securities with unrealized losses, fair value

Table 3.5 summarizes the available-for-sale securities with gross unrealized losses as of June 30, 2024 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.5

	06/30/2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	461,246	$	(4,624)	$	2,712,334	$	(55,362)	$	3,173,580	$	(59,986)
Non-mortgage-backed securities	461,246		(4,624)		2,712,334		(55,362)		3,173,580		(59,986)
Mortgage-backed securities:
U.S. obligation MBS	—		—		88,846		(1,317)		88,846		(1,317)
GSE MBS	1,637,287		(5,271)		3,976,284		(86,575)		5,613,571		(91,846)
Mortgage-backed securities	1,637,287		(5,271)		4,065,130		(87,892)		5,702,417		(93,163)
TOTAL	$	2,098,533	$	(9,895)	$	6,777,464	$	(143,254)	$	8,875,997	$	(153,149)

Table 3.6 summarizes the available-for-sale securities with gross unrealized losses as of December 31, 2023 (in thousands). The gross unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

Table 3.6

	12/31/2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities:
U.S. Treasury obligations	$	1,280,546	$	(10,036)	$	1,657,322	$	(35,976)	$	2,937,868	$	(46,012)
Non-mortgage-backed securities	1,280,546		(10,036)		1,657,322		(35,976)		2,937,868		(46,012)
Mortgage-backed securities:
U.S. obligation MBS	71,883		(366)		35,652		(1,182)		107,535		(1,548)
GSE MBS	2,863,223		(23,525)		3,164,674		(80,037)		6,027,897		(103,562)
Mortgage-backed securities	2,935,106		(23,891)		3,200,326		(81,219)		6,135,432		(105,110)
TOTAL	$	4,215,652	$	(33,927)	$	4,857,648	$	(117,195)	$	9,073,300	$	(151,122)

Securities Classified By Contractual Maturity

The amortized cost and fair values of available-for-sale securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.7 (in thousands). Expected maturities of MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.7

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	3,233,566		3,173,580		2,983,880		2,937,868
Due after five years through ten years	—		—		—		—
Due after ten years	—		—		—		—
Non-mortgage-backed securities	3,233,566		3,173,580		2,983,880		2,937,868
Mortgage-backed securities	9,347,274		9,293,377		8,888,517		8,815,585
TOTAL	$	12,580,840	$	12,466,957	$	11,872,397	$	11,753,453

The amortized cost and fair values of held-to-maturity securities by contractual maturity as of June 30, 2024 and December 31, 2023 are shown in Table 3.10 (in thousands). Expected maturities of certain securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

Table 3.10

	06/30/2024				12/31/2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	—		—		—		—
Due after five years through ten years	34,790		34,229		35,855		35,209
Due after ten years	—		—		—		—
Non-mortgage-backed securities	34,790		34,229		35,855		35,209
Mortgage-backed securities	213,203		210,199		228,941		225,444
TOTAL	$	247,993	$	244,428	$	264,796	$	260,653

Held-To-Maturity Securities by Major Security Type

Held-to-maturity Securities: Held-to-maturity securities by major security type as of June 30, 2024 are summarized in Table 3.8 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $567,000 as of June 30, 2024.

Table 3.8

	06/30/2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	34,790	$	—	$	(561)	$	34,229
Non-mortgage-backed securities	34,790		—		(561)		34,229
Mortgage-backed securities:
GSE MBS	213,203		174		(3,178)		210,199
Mortgage-backed securities	213,203		174		(3,178)		210,199
TOTAL	$	247,993	$	174	$	(3,739)	$	244,428

Held-to-maturity securities by major security type as of December 31, 2023 are summarized in Table 3.9 (in thousands). Carrying value equals amortized cost, which includes adjustments made to the cost basis of an investment for accretion and amortization, and excludes accrued interest receivable of $612,000 as of December 31, 2023.

Table 3.9

	12/31/2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities:
State or local housing agency obligations	$	35,855	$	—	$	(646)	$	35,209
Non-mortgage-backed securities	35,855		—		(646)		35,209
Mortgage-backed securities:
GSE MBS	228,941		188		(3,685)		225,444
Mortgage-backed securities	228,941		188		(3,685)		225,444
TOTAL	$	264,796	$	188	$	(4,331)	$	260,653

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Advances (Tables)

6 Months Ended

Jun. 30, 2024

Advances [Abstract]

Advances Table

Table 4.1 presents advances summarized by redemption term as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). The redemption term represents the period in which principal amounts are contractually due. Carrying amounts exclude accrued interest receivable of $180,274,000 and $118,604,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 4.1

	06/30/2024				12/31/2023
Redemption Term	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	30,020,868	5.31	%	$	29,786,238	5.32	%
Due after one year through two years	4,534,314		4.14		4,213,704		4.01
Due after two years through three years	4,279,823		4.29		3,882,479		4.22
Due after three years through four years	3,662,221		4.41		3,086,881		4.04
Due after four years through five years	2,225,050		4.07		2,837,481		4.03
Thereafter	1,821,405		3.21		1,863,519		3.04
Total par value	46,543,681		4.89	%	45,670,302		4.85	%
Discounts	(8,920)				(10,276)
Hedging adjustments	(315,014)				(215,257)
TOTAL	$	46,219,747			$	45,444,769

Table 4.2 presents advances summarized by redemption term or next call date and by redemption term or next put or conversion date as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.2

	Redemption Term or Next Call Date				Redemption Term or Next Put or Conversion Date
Redemption Term	06/30/2024		12/31/2023		06/30/2024		12/31/2023
Due in one year or less	$	30,995,431	$	31,038,961	$	32,190,718	$	31,299,438
Due after one year through two years	4,507,500		3,920,260		4,450,064		4,552,204
Due after two years through three years	3,871,314		3,562,900		4,424,323		3,954,979
Due after three years through four years	3,274,786		2,678,103		3,113,721		2,750,881
Due after four years through five years	2,172,244		2,715,262		1,478,050		1,600,481
Thereafter	1,722,406		1,754,816		886,805		1,512,319
TOTAL PAR VALUE	$	46,543,681	$	45,670,302	$	46,543,681	$	45,670,302

Interest Rate Payment Terms: Table 4.3 details additional interest rate payment and redemption terms for advances as of June 30, 2024 and December 31, 2023 (in thousands):

Table 4.3

Redemption Term	06/30/2024		12/31/2023
Fixed rate:
Due in one year or less	$	18,020,968	$	26,714,638
Due after one year through three years	6,399,722		6,034,768
Due after three years through five years	4,883,976		5,072,017
Due after five years through fifteen years	1,732,546		1,762,808
Due after fifteen years	27,284		28,659
Total fixed rate	31,064,496		39,612,890
Variable rate:
Due in one year or less	11,999,900		3,071,600
Due after one year through three years	2,414,415		2,061,415
Due after three years through five years	1,003,295		852,345
Due after five years through fifteen years	59,075		69,552
Due after fifteen years	2,500		2,500
Total variable rate	15,479,185		6,057,412
TOTAL PAR VALUE	$	46,543,681	$	45,670,302

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Mortgage Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Mortgage Loans Held For Portfolio

Table 5.1 presents information as of June 30, 2024 and December 31, 2023 on mortgage loans held for portfolio (in thousands). Carrying amounts exclude accrued interest receivable of $49,332,000 and $45,669,000 as of June 30, 2024 and December 31, 2023, respectively.

Table 5.1

	06/30/2024		12/31/2023
Real estate:
Fixed rate, medium-term1, single-family mortgages	$	988,507	$	1,055,326
Fixed rate, long-term, single-family mortgages	7,660,125		7,227,825
Total unpaid principal balance	8,648,632		8,283,151
Premiums	95,453		94,485
Discounts	(6,253)		(5,591)
Deferred loan costs, net	36		39
Hedging adjustments	(13,656)		(13,840)
Total before allowance for credit losses on mortgage loans	8,724,212		8,358,244
Allowance for credit losses on mortgage loans	(4,315)		(5,531)
MORTGAGE LOANS HELD FOR PORTFOLIO, NET	$	8,719,897	$	8,352,713

1    Medium-term defined as a term of 15 years or less at origination.

Table 5.2 presents information as of June 30, 2024 and December 31, 2023 on the outstanding unpaid principal balance of mortgage loans held for portfolio (in thousands):

Table 5.2

	06/30/2024		12/31/2023
Conventional loans	$	8,321,184	$	7,953,624
Government-guaranteed or -insured loans	327,448		329,527
TOTAL UNPAID PRINCIPAL BALANCE	$	8,648,632	$	8,283,151

Financing Receivable Credit Quality Indicators

Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of June 30, 2024 (dollar amounts in thousands):

Table 5.3

	06/30/2024
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2020		2020		2021		2022		2023		2024
Amortized Cost:1
Past due 30-59 days delinquent	$	19,893	$	3,616	$	7,901	$	5,795	$	2,713	$	909	$	40,827		$	7,494		$	48,321
Past due 60-89 days delinquent	6,788		1,108		1,333		1,064		1,085		—		11,378			2,636			14,014
Past due 90 days or more delinquent	13,046		961		261		2,155		477		—		16,900			3,611			20,511
Total past due	39,727		5,685		9,495		9,014		4,275		909		69,105			13,741			82,846
Total current loans	2,594,213		1,445,958		1,654,358		816,415		1,107,724		705,050		8,323,718			317,648			8,641,366
Total mortgage loans	$	2,633,940	$	1,451,643	$	1,663,853	$	825,429	$	1,111,999	$	705,959	$	8,392,823		$	331,389		$	8,724,212
Other delinquency statistics:
In process of foreclosure2													$	3,542		$	175		$	3,717
Serious delinquency rate3													0.2		%	1.1		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	3,611		$	3,611
Loans on nonaccrual status4													$	20,902		$	—		$	20,902

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $10,591,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2023 (dollar amounts in thousands):

Table 5.4

	12/31/2023
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2019		2019		2020		2021		2022		2023
Amortized Cost:1
Past due 30-59 days delinquent	$	19,739	$	7,135	$	5,601	$	5,955	$	6,745	$	2,746	$	47,921		$	10,327		$	58,248
Past due 60-89 days delinquent	5,013		1,319		479		931		2,047		—		9,789			2,972			12,761
Past due 90 days or more delinquent	8,063		5,185		1,354		1,170		447		—		16,219			2,659			18,878
Total past due	32,815		13,639		7,434		8,056		9,239		2,746		73,929			15,958			89,887
Total current loans	1,770,552		971,328		1,506,877		1,720,492		852,858		1,128,557		7,950,664			317,693			8,268,357
Total mortgage loans	$	1,803,367	$	984,967	$	1,514,311	$	1,728,548	$	862,097	$	1,131,303	$	8,024,593		$	333,651		$	8,358,244
Other delinquency statistics:
In process of foreclosure2													$	6,008		$	763		$	6,771
Serious delinquency rate3													0.2		%	0.8		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	2,657		$	2,657
Loans on nonaccrual status4													$	19,383		$	—		$	19,383

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $12,502,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Financing Receivable, Past Due

Table 5.3 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of June 30, 2024 (dollar amounts in thousands):

Table 5.3

	06/30/2024
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2020		2020		2021		2022		2023		2024
Amortized Cost:1
Past due 30-59 days delinquent	$	19,893	$	3,616	$	7,901	$	5,795	$	2,713	$	909	$	40,827		$	7,494		$	48,321
Past due 60-89 days delinquent	6,788		1,108		1,333		1,064		1,085		—		11,378			2,636			14,014
Past due 90 days or more delinquent	13,046		961		261		2,155		477		—		16,900			3,611			20,511
Total past due	39,727		5,685		9,495		9,014		4,275		909		69,105			13,741			82,846
Total current loans	2,594,213		1,445,958		1,654,358		816,415		1,107,724		705,050		8,323,718			317,648			8,641,366
Total mortgage loans	$	2,633,940	$	1,451,643	$	1,663,853	$	825,429	$	1,111,999	$	705,959	$	8,392,823		$	331,389		$	8,724,212
Other delinquency statistics:
In process of foreclosure2													$	3,542		$	175		$	3,717
Serious delinquency rate3													0.2		%	1.1		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	3,611		$	3,611
Loans on nonaccrual status4													$	20,902		$	—		$	20,902

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $10,591,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Table 5.4 presents the payment status based on amortized cost as well as other delinquency statistics for FHLBank’s mortgage loans as of December 31, 2023 (dollar amounts in thousands):

Table 5.4

	12/31/2023
	Conventional Loans															Government Loans			Total
	Origination Year												Subtotal
	Prior to 2019		2019		2020		2021		2022		2023
Amortized Cost:1
Past due 30-59 days delinquent	$	19,739	$	7,135	$	5,601	$	5,955	$	6,745	$	2,746	$	47,921		$	10,327		$	58,248
Past due 60-89 days delinquent	5,013		1,319		479		931		2,047		—		9,789			2,972			12,761
Past due 90 days or more delinquent	8,063		5,185		1,354		1,170		447		—		16,219			2,659			18,878
Total past due	32,815		13,639		7,434		8,056		9,239		2,746		73,929			15,958			89,887
Total current loans	1,770,552		971,328		1,506,877		1,720,492		852,858		1,128,557		7,950,664			317,693			8,268,357
Total mortgage loans	$	1,803,367	$	984,967	$	1,514,311	$	1,728,548	$	862,097	$	1,131,303	$	8,024,593		$	333,651		$	8,358,244
Other delinquency statistics:
In process of foreclosure2													$	6,008		$	763		$	6,771
Serious delinquency rate3													0.2		%	0.8		%	0.2		%
Past due 90 days or more and still accruing interest													$	—		$	2,657		$	2,657
Loans on nonaccrual status4													$	19,383		$	—		$	19,383

1    Excludes accrued interest receivable.

2    Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

3    Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

4    Includes $12,502,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

Financing Receivable, Allowance for Credit Loss

Table 5.5 presents a roll-forward of the allowance for credit losses on mortgage loans for the three and six months ended June 30, 2024 and 2023.

Table 5.5

	Three Months Ended				Six Months Ended
Conventional Loans	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of the period	$	5,202	$	5,836	$	5,531	$	6,378
Net (charge-offs) recoveries	(24)		48		(153)		(92)
Provision (reversal) for credit losses	(863)		746		(1,063)		344
Balance, end of the period	$	4,315	$	6,630	$	4,315	$	6,630

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Derivatives And Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments, Gain (Loss) [Line Items]

Fair Value of Derivative Instruments

Table 6.1 presents outstanding notional amounts and fair values of the derivatives outstanding by type of derivative and by hedge designation as of June 30, 2024 and December 31, 2023 (in thousands). Total derivative assets and liabilities include the effect of netting adjustments and cash collateral.

Table 6.1

	06/30/2024						12/31/2023
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate swaps	$	40,379,766	$	128,645	$	356,687	$	44,804,870	$	116,352	$	410,595
Total derivatives designated as hedging relationships	40,379,766		128,645		356,687		44,804,870		116,352		410,595
Derivatives not designated as hedging instruments:
Interest rate swaps	6,607,099		19,451		90		6,383,296		22,072		152
Interest rate caps/floors	1,804,000		4,194		—		304,000		698		—
Mortgage delivery commitments	62,180		64		30		41,641		133		5
Total derivatives not designated as hedging instruments	8,473,279		23,709		120		6,728,937		22,903		157
TOTAL	$	48,853,045	152,354		356,807		$	51,533,807	139,255		410,752
Netting adjustments and cash collateral1			164,176		(355,856)				211,112		(409,892)
DERIVATIVE ASSETS AND LIABILITIES			$	316,530	$	951			$	350,367	$	860

1    Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

Net Gains or Losses on Derivatives and Hedging Activities

For the three months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.2 (in thousands):

Table 6.2

	Three Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	634,504	$	193,900	$	233,774	$	669,999
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	57,347	$	42,784	$	(3,609)	$	(29,912)
Hedged items2	17,281		13,646		1,640		(42,552)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	74,628	$	56,430	$	(1,969)	$	(72,464)

	Three Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	613,730	$	144,744	$	288,183	$	539,939
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	241,132	$	155,006	$	(19,567)	$	(169,181)
Hedged items2	(179,348)		(100,723)		8,142		95,419
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	61,784	$	54,283	$	(11,425)	$	(73,762)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

For the six months ended June 30, 2024 and 2023, FHLBank recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on FHLBank’s net interest income as presented in Table 6.3 (in thousands):

Table 6.3

	Six Months Ended
	06/30/2024
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,226,491	$	383,959	$	461,315	$	1,293,539
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	252,237	$	188,471	$	(6,663)	$	(114,399)
Hedged items2	(99,758)		(74,607)		2,353		(35,509)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	152,479	$	113,864	$	(4,310)	$	(149,908)

	Six Months Ended
	06/30/2023
	Interest Income/Expense
	Advances		Available-for-sale Securities		Consolidated Obligation Discount Notes		Consolidated Obligation Bonds
Total amounts presented in the Statements of Income	$	1,150,324	$	261,580	$	551,704	$	1,001,821
Gains (losses) on fair value hedging relationships:
Interest rate contracts:
Derivatives1	$	162,326	$	83,788	$	(2,909)	$	(114,280)
Hedged items2	(60,907)		10,777		(17,749)		(28,759)
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS	$	101,419	$	94,565	$	(20,658)	$	(143,039)

1    Includes net interest settlements in interest income/expense.

2    Includes amortization/accretion on closed fair value relationships in interest income.

Cumulative Basis Adjustments for Fair Value Hedges

Table 6.4 presents the cumulative basis adjustments on hedged items designated as fair value hedges and the related amortized cost of the hedged items as of June 30, 2024 and December 31, 2023 (in thousands):

Table 6.4

06/30/2024
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	14,400,473	$	(307,745)	$	(7,269)	$	(315,014)
Available-for-sale securities	7,172,766		(331,365)		—		(331,365)
Consolidated obligation discount notes	(4,699,519)		4,665		—		4,665
Consolidated obligation bonds	(13,227,169)		330,478		(5,744)		324,734
12/31/2023
Line Item in Statements of Condition of Hedged Item	Carrying Value of Hedged Asset/(Liability)1		Basis Adjustments for Active Hedging Relationships2		Basis Adjustments for Discontinued Hedging Relationships2		Cumulative Amount of Fair Value Hedging Basis Adjustments2
Advances	$	13,545,019	$	(206,332)	$	(8,924)	$	(215,256)
Available-for-sale securities	6,367,691		(256,757)		—		(256,757)
Consolidated discount notes	(3,874,550)		2,313		—		2,313
Consolidated obligation bonds	(20,374,603)		366,180		(5,937)		360,243

1    Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated other comprehensive income (AOCI) is excluded).

2    Included in amortized cost of the hedged asset/liability.

Net Gains or Losses on Derivatives Not Designated as Hedging Instruments

Table 6.5 provides information regarding net gains (losses) on derivatives recorded in non-interest income (in thousands).

Table 6.5

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Derivatives not designated as hedging instruments:
Economic hedges:
Interest rate swaps	$	(5,118)	$	11,371	$	(4,344)	$	3,084
Interest rate caps/floors	(1,192)		475		(1,796)		125
Net interest settlements	8,282		9,257		16,820		17,555
Price alignment interest	(117)		(182)		(242)		(391)
Mortgage delivery commitments	(177)		(627)		(232)		(604)
NET GAINS (LOSSES) ON DERIVATIVES	$	1,678	$	20,294	$	10,206	$	19,769

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Deposits (Tables)

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

Deposits

Table 7.1 details the types of deposits held by FHLBank as of June 30, 2024 and December 31, 2023 (in thousands):

Table 7.1

	06/30/2024		12/31/2023
Interest-bearing:
Demand	$	324,971	$	297,267
Overnight	423,300		391,900
Term	9,400		10,650
Total interest-bearing	757,671		699,817
Non-interest-bearing:
Other	59,401		52,383
Total non-interest-bearing	59,401		52,383
TOTAL DEPOSITS	$	817,072	$	752,200

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Consolidated Obligations (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Consolidated Bonds Obligations Outstanding By Maturity

Table 8.1 presents FHLBank’s participation in consolidated obligation bonds outstanding as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 8.1

	06/30/2024				12/31/2023
Year of Contractual Maturity	Amount		Weighted Average Interest Rate		Amount		Weighted Average Interest Rate
Due in one year or less	$	34,655,725	4.89	%	$	28,152,305	4.90	%
Due after one year through two years	9,574,220		4.49		9,327,370		4.21
Due after two years through three years	4,066,610		2.35		4,294,125		2.01
Due after three years through four years	1,691,350		2.89		1,780,895		2.01
Due after four years through five years	1,474,000		3.62		1,467,440		2.96
Thereafter	4,925,005		3.19		4,387,255		2.63
Total par value	56,386,910		4.40	%	49,409,390		4.15	%
Premiums	11,423				12,874
Discounts	(2,473)				(3,108)
Concession fees	(11,970)				(11,424)
Hedging adjustments	(324,734)				(360,243)
TOTAL	$	56,059,156			$	49,047,489

Table 8.2 summarizes FHLBank’s consolidated obligation bonds outstanding by year of maturity, or by the next call date for callable bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.2

Year of Maturity or Next Call Date	06/30/2024		12/31/2023
Due in one year or less	$	45,978,225	$	40,475,305
Due after one year through two years	7,458,720		6,503,370
Due after two years through three years	1,482,610		1,227,125
Due after three years through four years	793,850		362,895
Due after four years through five years	259,000		493,940
Thereafter	414,505		346,755
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

Consolidated Bonds by Interest-Rate Payment Type

Table 8.3 summarizes interest rate payment terms for consolidated obligation bonds as of June 30, 2024 and December 31, 2023 (in thousands):

Table 8.3

	06/30/2024		12/31/2023
Fixed rate	$	21,241,410	$	28,093,390
Simple variable rate	33,518,500		19,524,000
Step	1,627,000		1,792,000
TOTAL PAR VALUE	$	56,386,910	$	49,409,390

Consolidated Discount Notes Outstanding

Table 8.4 summarizes FHLBank’s participation in consolidated obligation discount notes, all of which are due within one year (dollar amounts in thousands):

Table 8.4

	Carrying Value		Par Value		Weighted Average Interest Rate1
June 30, 2024	$	18,209,813	$	18,418,401	5.11	%
December 31, 2023	$	20,743,249	$	20,903,145	5.15	%

1    Represents yield to maturity excluding concession fees.

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Assets and Liabilities Subject to Offsetting (Tables)

6 Months Ended

Jun. 30, 2024

Offsetting [Abstract]

Schedule of Offsetting Assets

Tables 9.1 and 9.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.1

06/30/2024
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	140,522	$	(138,570)	$	1,952	$	(64)	$	1,888
Cleared derivatives	11,832		302,746		314,578		—		314,578
Total derivative assets	152,354		164,176		316,530		(64)		316,466
Securities purchased under agreements to resell	2,925,000		—		2,925,000		(2,925,000)		—
TOTAL	$	3,077,354	$	164,176	$	3,241,530	$	(2,925,064)	$	316,466

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.2

12/31/2023
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statements of Condition		Net Amounts of Assets Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative assets:
Uncleared derivatives	$	136,141	$	(133,650)	$	2,491	$	(133)	$	2,358
Cleared derivatives	3,114		344,762		347,876		—		347,876
Total derivative assets	139,255		211,112		350,367		(133)		350,234
Securities purchased under agreements to resell	3,875,000		—		3,875,000		(3,875,000)		—
TOTAL	$	4,014,255	$	211,112	$	4,225,367	$	(3,875,133)	$	350,234

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Schedule of Offsetting Liabilities

Tables 9.3 and 9.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of FHLBank’s master netting arrangements or similar agreements as of June 30, 2024 and December 31, 2023 (in thousands):

Table 9.3

06/30/2024
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	353,412	$	(352,461)	$	951	$	(30)	$	921
Cleared derivatives	3,395		(3,395)		—		—		—
Total derivative liabilities	356,807		(355,856)		951		(30)		921
TOTAL	$	356,807	$	(355,856)	$	951	$	(30)	$	921

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.4

12/31/2023
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Condition		Net Amounts of Liabilities Presented in the Statements of Condition		Gross Amounts Not Offset in the Statement of Condition1		Net Amount
Derivative liabilities:
Uncleared derivatives	$	402,527	$	(401,667)	$	860	$	(5)	$	855
Cleared derivatives	8,225		(8,225)		—		—		—
Total derivative liabilities	410,752		(409,892)		860		(5)		855
TOTAL	$	410,752	$	(409,892)	$	860	$	(5)	$	855

1    Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

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Capital (Tables)

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Regulatory Capital Requirements

Table 10.1 illustrates that FHLBank was in compliance with its regulatory capital requirements as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands):

Table 10.1

	06/30/2024						12/31/2023
	Required			Actual			Required			Actual
Regulatory capital requirements:
Risk-based capital	$	805,359		$	3,932,532		$	746,439		$	3,730,738
Total regulatory capital-to-asset ratio	4.0		%	5.3		%	4.0		%	5.4		%
Total regulatory capital	$	3,190,201		$	4,251,892		$	2,997,879		$	4,009,870
Leverage capital ratio	5.0		%	7.8		%	5.0		%	7.8		%
Leverage capital	$	3,987,752		$	6,218,158		$	3,747,349		$	5,875,238

Mandatorily Redeemable Capital Stock Rollforward

Table 10.2 presents a roll-forward of mandatorily redeemable capital stock for the three and six months ended June 30, 2024 and 2023 (in thousands):

Table 10.2

	Three Months Ended				Six Months Ended
	06/30/2024		06/30/2023		06/30/2024		06/30/2023
Balance, beginning of period	$	205	$	269	$	247	$	280
Capital stock subject to mandatory redemption reclassified from equity during the period	77,949		282,260		232,442		493,497
Redemption or repurchase of mandatorily redeemable capital stock during the period	(74,762)		(282,271)		(229,299)		(493,521)
Stock dividend classified as mandatorily redeemable capital stock during the period	50		5		52		7
Balance, end of period	$	3,442	$	263	$	3,442	$	263

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income Or Loss

Table 11.1 summarizes the changes in AOCI for the three months ended June 30, 2024 and 2023 (in thousands):

Table 11.1

	Three Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at March 31, 2023	$	(82,556)	$	173	$	(82,383)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(1,446)				(1,446)
Net current period other comprehensive income (loss)	(1,446)		—		(1,446)
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at March 31, 2024	$	(94,752)	$	(27)	$	(94,779)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)				(19,131)
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	(19,131)		169		(18,962)
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

1    Recorded in “Other” non-interest expense on the Statements of Income. Amount represents a debit (increase to other expenses).

Table 11.2 summarizes the changes in AOCI for the six months ended June 30, 2024 and 2023 (in thousands):

Table 11.2

	Six Months Ended
	Net Unrealized Gains (Losses) on Available-for-sale Securities		Defined Benefit Pension Plan		Total AOCI
Balance at December 31, 2022	$	(84,443)	$	173	$	(84,270)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	441				441
Net current period other comprehensive income (loss)	441		—		441
Balance at June 30, 2023	$	(84,002)	$	173	$	(83,829)
Balance at December 31, 2023	$	(118,944)	$	(27)	$	(118,971)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	5,061				5,061
Impact of settlements - defined benefit pension plan			169		169
Net current period other comprehensive income (loss)	5,061		169		5,230
Balance at June 30, 2024	$	(113,883)	$	142	$	(113,741)

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Fair Values (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Summary

The carrying value, fair value and fair value hierarchy of FHLBank’s financial assets and liabilities as of June 30, 2024 and December 31, 2023 are summarized in Tables 12.1 and 12.2 (in thousands):

Table 12.1

	06/30/2024
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,550	$	26,550	$	26,550	$	—	$	—	$	—
Interest-bearing deposits	2,339,648		2,339,114		—		2,339,114		—		—
Securities purchased under agreements to resell	2,925,000		2,925,000		—		2,925,000		—		—
Federal funds sold	5,292,000		5,292,000		—		5,292,000		—		—
Trading securities	843,742		843,742		—		843,742		—		—
Available-for-sale securities	12,466,957		12,466,957		—		12,466,957		—		—
Held-to-maturity securities	247,993		244,428		—		210,199		34,229		—
Advances	46,219,747		46,240,518		—		46,240,518		—		—
Mortgage loans held for portfolio, net of allowance	8,719,897		7,725,206		—		7,721,106		4,100		—
Accrued interest receivable	275,977		275,977		—		275,977		—		—
Derivative assets	316,530		316,530		—		152,354		—		164,176
Liabilities:
Deposits	817,072		817,069		—		817,069		—		—
Consolidated obligation discount notes	18,209,813		18,210,161		—		18,210,161		—		—
Consolidated obligation bonds	56,059,156		55,121,561		—		55,121,561		—		—
Mandatorily redeemable capital stock	3,442		3,442		3,442		—		—		—
Accrued interest payable	380,927		380,927		—		380,927		—		—
Derivative liabilities	951		951		—		356,807		—		(355,856)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,491		—		32,491		—		—
Financing obligation payable	(35,000)		(32,491)		—		(32,491)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

Table 12.2

	12/31/2023
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Assets:
Cash and due from banks	$	26,062	$	26,062	$	26,062	$	—	$	—	$	—
Interest-bearing deposits	1,604,989		1,604,989		—		1,604,989		—		—
Securities purchased under agreements to resell	3,875,000		3,875,000		—		3,875,000		—		—
Federal funds sold	2,080,000		2,080,000		—		2,080,000		—		—
Trading securities	908,608		908,608		—		908,608		—		—
Available-for-sale securities	11,753,453		11,753,453		—		11,753,453		—		—
Held-to-maturity securities	264,796		260,653		—		225,444		35,209		—
Advances	45,444,769		45,452,358		—		45,452,358		—		—
Mortgage loans held for portfolio, net of allowance	8,352,713		7,493,015		—		7,490,867		2,148		—
Accrued interest receivable	204,243		204,243		—		204,243		—		—
Derivative assets	350,367		350,367		—		139,255		—		211,112
Liabilities:
Deposits	752,200		752,209		—		752,209		—		—
Consolidated obligation discount notes	20,743,249		20,743,707		—		20,743,707		—		—
Consolidated obligation bonds	49,047,489		48,096,791		—		48,096,791		—		—
Mandatorily redeemable capital stock	247		247		247		—		—		—
Accrued interest payable	361,840		361,840		—		361,840		—		—
Derivative liabilities	860		860		—		410,752		—		(409,892)
Other Asset (Liability):
Industrial revenue bonds	35,000		32,695		—		32,695		—		—
Financing obligation payable	(35,000)		(32,695)		—		(32,695)		—		—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral and related accrued interest held or placed with the same clearing agent or derivative counterparty.

Hierarchy Level for Financial Assets and Liabilities - Recurring and Nonrecurring

Tables 12.3 and 12.4 present, for each hierarchy level, FHLBank’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis on the Statements of Condition as of or for the periods ended June 30, 2024 and December 31, 2023 (in thousands).

Table 12.3

	06/30/2024
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	241,444	$	—	$	241,444	$	—	$	—
GSE MBS	602,298		—		602,298		—		—
Total trading securities	843,742		—		843,742		—		—
Available-for-sale securities:
U.S. Treasury obligations	3,173,580		—		3,173,580		—		—
U.S. obligation MBS	88,847		—		88,847		—		—
GSE MBS	9,204,530		—		9,204,530		—		—
Total available-for-sale securities	12,466,957		—		12,466,957		—		—
Derivative assets:
Interest-rate related	316,466		—		152,290		—		164,176
Mortgage delivery commitments	64		—		64		—		—
Total derivative assets	316,530		—		152,354		—		164,176
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,627,229	$	—	$	13,463,053	$	—	$	164,176
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	921	$	—	$	356,777	$	—	$	(355,856)
Mortgage delivery commitments	30		—		30		—		—
Total derivative liabilities	951		—		356,807		—		(355,856)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	951	$	—	$	356,807	$	—	$	(355,856)
Nonrecurring fair value measurements - Assets2:
Impaired mortgage loans	$	4,146	$	—	$	—	$	4,146	$	—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	4,146	$	—	$	—	$	4,146	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the six months ended June 30, 2024 and still outstanding as of June 30, 2024.

Table 12.4

	12/31/2023
	Total		Level 1		Level 2		Level 3		Netting Adjustment and Cash Collateral1
Recurring fair value measurements - Assets:
Trading securities:
GSE debentures	$	288,438	$	—	$	288,438	$	—	$	—
GSE MBS	620,170		—		620,170		—		—
Total trading securities	908,608		—		908,608		—		—
Available-for-sale securities:
U.S. Treasury obligations	2,937,868		—		2,937,868		—		—
U.S. obligation MBS	107,535		—		107,535		—		—
GSE MBS	8,708,050		—		8,708,050		—		—
Total available-for-sale securities	11,753,453		—		11,753,453		—		—
Derivative assets:
Interest-rate related	350,234		—		139,122		—		211,112
Mortgage delivery commitments	133		—		133		—		—
Total derivative assets	350,367		—		139,255		—		211,112
TOTAL RECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	13,012,428	$	—	$	12,801,316	$	—	$	211,112
Recurring fair value measurements - Liabilities:
Derivative liabilities:
Interest-rate related	$	855	$	—	$	410,747	$	—	$	(409,892)
Mortgage delivery commitments	5		—		5		—		—
Total derivative liabilities	860		—		410,752		—		(409,892)
TOTAL RECURRING FAIR VALUE MEASUREMENTS - LIABILITIES	$	860	$	—	$	410,752	$	—	$	(409,892)
Nonrecurring fair value measurements - Assets2:
Held-to-maturity securities:
Impaired mortgage loans	$	2,178	$	—	$	—	$	2,178	$	—
Real estate owned	43		—		—		43		—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS - ASSETS	$	2,221	$	—	$	—	$	2,221	$	—

1    Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

2    Includes assets adjusted to fair value during the year ended December 31, 2023 and still outstanding as of December 31, 2023.

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Commitments And Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Off Balance Sheet Commitments

Table 13.1 presents off-balance sheet commitments at June 30, 2024 and December 31, 2023 (in thousands). No allowance for credit losses was recorded on these commitments at June 30, 2024 and December 31, 2023.

Table 13.1

	06/30/2024						12/31/2023
Notional Amount	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit outstanding	$	7,086,338	$	59,337	$	7,145,675	$	7,242,988	$	5,670	$	7,248,658
Advance commitments outstanding	12,636		3,069		15,705		48,526		3,615		52,141
Principal commitments for standby bond purchase agreements	116,055		869,045		985,100		283,220		716,295		999,515
Commitments to fund or purchase mortgage loans	62,180		—		62,180		41,641		—		41,641
Commitments to issue consolidated bonds, at par	2,000		—		2,000		1,300,000		—		1,300,000
Commitments to issue consolidated discount notes, at par	55,912		—		55,912		—		—		—

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Transactions With Stockholders (Tables)

6 Months Ended

Jun. 30, 2024

Related Party Transactions, by Balance Sheet Grouping

Tables 14.1 and 14.2 present information on members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 (dollar amounts in thousands). An officer of BOKF, N.A. currently serves on FHLBank’s board of directors.

Table 14.1

06/30/2024
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	3,202	1.0	%	$	510,050	21.1	%	$	513,252	18.7	%
BOKF, N.A.	OK	72,297		22.6		325,208		13.4		397,505		14.5
TOTAL		$	75,499	23.6	%	$	835,258	34.5	%	$	910,757	33.2	%

Table 14.2

12/31/2023
Member Name	State	Total Class A Stock Par Value		Percent of Total Class A		Total Class B Stock Par Value		Percent of Total Class B		Total Capital Stock Par Value		Percent of Total Capital Stock
MidFirst Bank	OK	$	35,473	12.7	%	$	443,345	19.0	%	$	478,818	18.4	%
BOKF, N.A.	OK	500		0.2		347,012		14.9		347,512		13.3
TOTAL		$	35,973	12.9	%	$	790,357	33.9	%	$	826,330	31.7	%

Advance and deposit balances with members that owned more than 10 percent of outstanding FHLBank regulatory capital stock as of June 30, 2024 and December 31, 2023 are summarized in Table 14.3 (dollar amounts in thousands).

Table 14.3

	06/30/2024				12/31/2023				06/30/2024				12/31/2023
Member Name	Outstanding Advances		Percent of Total		Outstanding Advances		Percent of Total		Outstanding Deposits		Percent of Total		Outstanding Deposits		Percent of Total
MidFirst Bank	$	10,840,000	23.3	%	$	9,585,000	21.0	%	$	5,078	0.6	%	$	3,751	0.5	%
BOKF, N.A.	6,500,000		14.0		7,675,000		16.8		58,766		7.2		22,325		3.0	%
TOTAL	$	17,340,000	37.3	%	$	17,260,000	37.8	%	$	63,844	7.8	%	$	26,076	3.5	%

BOKF, N.A. sold $12,143,000 and $20,941,000 mortgage loans into the MPF Program during the three and six months ended June 30, 2024, respectively. MidFirst Bank did not sell any mortgage loans into the MPF Program during the three and six months ended June 30, 2024 and 2023.

Related Party Transactions, by Balance Sheet Grouping - Directors'

Table 14.4 presents information as of June 30, 2024 and December 31, 2023 for members that had an officer or director serving on FHLBank’s board of directors (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors. Capital stock listed is regulatory capital stock, which includes mandatorily redeemable capital stock.

Table 14.4

	06/30/2024				12/31/2023
	Outstanding Amount		Percent of Total		Outstanding Amount		Percent of Total
Advances	$	6,700,733	14.4	%	$	270,308	0.6	%
Deposits	$	61,071	7.5	%	$	7,314	1.0	%
Class A Common Stock	$	76,257	23.9	%	$	4,314	1.5	%
Class B Common Stock	337,262		13.9		14,924		0.6
TOTAL CAPITAL STOCK	$	413,519	15.1	%	$	19,238	0.7	%

Schedule Of Related Party Transactions, Mortgage Loans Disclosure

Table 14.5 presents mortgage loans acquired during the three and six months ended June 30, 2024 and 2023 for members that had an officer or director serving on FHLBank’s board of directors in 2024 or 2023 (dollar amounts in thousands). Information is only included for the period in which the officer or director served on FHLBank’s board of directors.

Table 14.5

	Three Months Ended								Six Months Ended
	06/30/2024				06/30/2023				06/30/2024				06/30/2023
	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
Mortgage loans acquired	$	19,738	4.0	%	$	4,473	1.3	%	$	34,984	4.6	%	$	8,984	1.7	%

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Investment Securities (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Marketable Securities [Line Items]
Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold, Percentage Unrated	25.00%
Securities Purchased under Agreements to Resell, Allowance for Credit Loss	$ 0		$ 0
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss, Not Previously Recorded	0	$ 0
Debt Securities, Held-to-maturity, Credit Loss Expense (Reversal)	0	$ 0
Interest-bearing Deposits and Federal Funds Sold [Member]
Marketable Securities [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 0		$ 0
Interest-bearing Deposits [Member]
Marketable Securities [Line Items]
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable		Accrued interest receivable
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss	$ 3,689		$ 3,271
Federal Funds Sold [Member]
Marketable Securities [Line Items]
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable		Accrued interest receivable
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss	$ 2,353		$ 927
Securities Borrowed or Purchased under Agreements to Resell [Member]
Marketable Securities [Line Items]
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable		Accrued interest receivable
Financial Asset, Amortized Cost, Accrued Interest, after Allowance for Credit Loss	$ 1,324		$ 1,749

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Investment Securities Investment Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Trading securities	$ 843,742	$ 908,608
GSE Debenture [Member]
Debt and Equity Securities, FV-NI [Line Items]
Trading securities	241,444	288,438
Non-mortgage-backed securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Trading securities	241,444	288,438
GSE MBS [Member]
Debt and Equity Securities, FV-NI [Line Items]
Trading securities	602,298	620,170
Mortgage-backed securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Trading securities	$ 602,298	$ 620,170

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Investment Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Net gains (losses) on trading securities held as of June 30, 2024	$ 3,691	$ (6,039)	$ 5,116	$ 388
Net gains (losses) on trading securities sold or matured prior to June 30, 2024	247	1,438	613	3,995
NET GAINS (LOSSES) ON TRADING SECURITIES	$ 3,938	$ (4,601)	$ 5,729	$ 4,383

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Investment Securities (Available-For-Sale Securities by Major Security Type) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss	$ 34,648	$ 29,768
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable	Accrued interest receivable
Total, Amortized Cost	$ 12,580,840	$ 11,872,397
Gross Unrecognized Gains	39,266	32,178
Gross Unrecognized Losses	(153,149)	(151,122)
Fair Value	12,466,957	11,753,453
U.S. Treasury obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Total, Amortized Cost	3,233,566	2,983,880
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	(59,986)	(46,012)
Fair Value	3,173,580	2,937,868
Non-mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total, Amortized Cost	3,233,566	2,983,880
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	(59,986)	(46,012)
Fair Value	3,173,580	2,937,868
U.S. obligation MBS [Member]
Debt Securities, Available-for-sale [Line Items]
Total, Amortized Cost	90,164	109,083
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	(1,317)	(1,548)
Fair Value	88,847	107,535
GSE MBS [Member]
Debt Securities, Available-for-sale [Line Items]
Total, Amortized Cost	9,257,110	8,779,434
Gross Unrecognized Gains	39,266	32,178
Gross Unrecognized Losses	(91,846)	(103,562)
Fair Value	9,204,530	8,708,050
Mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total, Amortized Cost	9,347,274	8,888,517
Gross Unrecognized Gains	39,266	32,178
Gross Unrecognized Losses	(93,163)	(105,110)
Fair Value	$ 9,293,377	$ 8,815,585

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Investment Securities (Available-for-sale securities with unrealized losses, fair value) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	$ 2,098,533	$ 4,215,652
Less than 12 Months, Unrealized Losses	(9,895)	(33,927)
12 Months or More, Fair Value	6,777,464	4,857,648
12 Months or More, Unrealized Losses	(143,254)	(117,195)
TOTAL, Fair Value	8,875,997	9,073,300
TOTAL, Unrealized Losses	(153,149)	(151,122)
U.S. Treasury obligations [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	461,246	1,280,546
Less than 12 Months, Unrealized Losses	(4,624)	(10,036)
12 Months or More, Fair Value	2,712,334	1,657,322
12 Months or More, Unrealized Losses	(55,362)	(35,976)
TOTAL, Fair Value	3,173,580	2,937,868
TOTAL, Unrealized Losses	(59,986)	(46,012)
Non-mortgage-backed securities [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	461,246	1,280,546
Less than 12 Months, Unrealized Losses	(4,624)	(10,036)
12 Months or More, Fair Value	2,712,334	1,657,322
12 Months or More, Unrealized Losses	(55,362)	(35,976)
TOTAL, Fair Value	3,173,580	2,937,868
TOTAL, Unrealized Losses	(59,986)	(46,012)
U.S. obligation MBS [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	0	71,883
Less than 12 Months, Unrealized Losses	0	(366)
12 Months or More, Fair Value	88,846	35,652
12 Months or More, Unrealized Losses	(1,317)	(1,182)
TOTAL, Fair Value	88,846	107,535
TOTAL, Unrealized Losses	(1,317)	(1,548)
GSE MBS [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	1,637,287	2,863,223
Less than 12 Months, Unrealized Losses	(5,271)	(23,525)
12 Months or More, Fair Value	3,976,284	3,164,674
12 Months or More, Unrealized Losses	(86,575)	(80,037)
TOTAL, Fair Value	5,613,571	6,027,897
TOTAL, Unrealized Losses	(91,846)	(103,562)
Mortgage-backed securities [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Less than 12 Months, Fair Value	1,637,287	2,935,106
Less than 12 Months, Unrealized Losses	(5,271)	(23,891)
12 Months or More, Fair Value	4,065,130	3,200,326
12 Months or More, Unrealized Losses	(87,892)	(81,219)
TOTAL, Fair Value	5,702,417	6,135,432
TOTAL, Unrealized Losses	$ (93,163)	$ (105,110)

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Investment Securities (Available-For-Sale Securities Classified By Contractual Maturities) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost	$ 12,580,840	$ 11,872,397
Fair Value	12,466,957	11,753,453
Non-mortgage-backed securities [Member]
Available-for-sale Securities, Debt Maturities [Abstract]
Due in one year or less, Amortized Cost	0	0
Due after one year through five years, Amortized Cost	3,233,566	2,983,880
Due after five years through ten years, Amortized Cost	0	0
Due after ten years, Amortized Cost	0	0
Amortized Cost	3,233,566	2,983,880
Due in one year or less, Fair Value	0	0
Due after one year through five years, Fair Value	3,173,580	2,937,868
Due after five years though ten years, Fair Value	0	0
Due after ten years, Fair Value	0	0
Fair Value	3,173,580	2,937,868
Mortgage-backed securities [Member]
Available-for-sale Securities, Debt Maturities [Abstract]
Mortgage-backed securities, Amortized Cost	9,347,274	8,888,517
Mortgage-backed securities, Fair Value	9,293,377	8,815,585
Fair Value	$ 9,293,377	$ 8,815,585

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Investment Securities (Held-To-Maturity Securities by Major Security Type) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss	$ 567	$ 612
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable	Accrued interest receivable
Amortized Cost	$ 247,993	$ 264,796
Gross Unrecognized Gains	174	188
Gross Unrecognized Losses	(3,739)	(4,331)
Held-to-maturity, Fair Value	244,428	260,653
State or local housing agency obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	34,790	35,855
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	(561)	(646)
Held-to-maturity, Fair Value	34,229	35,209
Non-mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	34,790	35,855
Gross Unrecognized Gains	0	0
Gross Unrecognized Losses	(561)	(646)
Held-to-maturity, Fair Value	34,229	35,209
GSE MBS [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost		228,941
Gross Unrecognized Gains	174	188
Gross Unrecognized Losses	(3,178)	(3,685)
Held-to-maturity, Fair Value	210,199	225,444
Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	213,203	228,941
Gross Unrecognized Gains	174	188
Gross Unrecognized Losses	(3,178)	(3,685)
Held-to-maturity, Fair Value	$ 210,199	$ 225,444

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Investment Securities (Held-To-Maturity Securities Classified By Contractual Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, after Allowance for Credit Loss, Rolling Maturity [Abstract]
Amortized Cost	$ 247,993	$ 264,796
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract]
TOTAL	244,428	260,653
Non-mortgage-backed securities [Member]
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, after Allowance for Credit Loss, Rolling Maturity [Abstract]
Due in one year or less, Amortized Cost	0	0
Due after one year through five years, Amortized Cost	0	0
Due after five years through ten years, Amortized Cost	34,790	35,855
Due after ten years, Amortized Cost	0	0
Non-mortgage-backed securities	34,790	35,855
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract]
Due in one year or less, Fair Value	0	0
Due after one year through five years, Fair Value	0	0
Due after five years through ten years, Fair Value	34,229	35,209
Due after ten years, Fair Value	0	0
Non-mortgage-backed securities	34,229	35,209
TOTAL	34,229	35,209
Mortgage-backed securities [Member]
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, after Allowance for Credit Loss, Rolling Maturity [Abstract]
Mortgage-backed securities	213,203	228,941
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract]
Mortgage-backed securities	210,199	225,444
TOTAL	$ 210,199	$ 225,444

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Advances (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Par Value	$ 46,543,681	$ 45,670,302
Minimum [Member]
Federal Home Loan Bank, Advances [Line Items]
FHLB advances, outstanding interest rate	0.43%	0.42%
Maximum [Member]
Federal Home Loan Bank, Advances [Line Items]
FHLB advances, outstanding interest rate	7.20%	7.20%
Federal Home Loan Bank Advances Receivable [Member]
Federal Home Loan Bank, Advances [Line Items]
Financing Receivable, Excluding Accrued Interest, Nonaccrual	$ 0	$ 0
Financing Receivable, Excluding Accrued Interest, Modified, Accumulated	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	0	0
FinancialAssetPastDue [Member] | Federal Home Loan Bank Advances Receivable [Member]
Federal Home Loan Bank, Advances [Line Items]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	0	$ 0
Federal Home Loan Bank, Advances, Convertible Option [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Par Value	$ 105,900

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Advances (Advances Redemption Terms) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amount
Due in one year or less	$ 30,020,868	$ 29,786,238
Due after one year through two years	4,534,314	4,213,704
Due after two years through three years	4,279,823	3,882,479
Due after three years through four years	3,662,221	3,086,881
Due after four years through five years	2,225,050	2,837,481
Thereafter	1,821,405	1,863,519
TOTAL PAR VALUE	46,543,681	45,670,302
Discounts	(8,920)	(10,276)
Hedging adjustments	(315,014)	(215,257)
TOTAL	$ 46,219,747	$ 45,444,769
Weighted Average Interest Rate
Due in one year or less	5.31%	5.32%
Due after one year through two years	4.14%	4.01%
Due after two years through three years	4.29%	4.22%
Due after three years through four years	4.41%	4.04%
Due after four years through five years	4.07%	4.03%
Thereafter	3.21%	3.04%
Total par value	4.89%	4.85%
Federal Home Loan Bank Advances Receivable [Member]
Federal Home Loan Bank, Advances [Line Items]
Advances, Accrued Interest, after Allowance for Credit Loss	$ 180,274	$ 118,604
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable	Accrued interest receivable

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Advances (Advances by Year of Redemption Term, Next Call Date, or Next Convert Date) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Redemption Term, Year of Redemption Term or Next Call Date
Due in one year or less	$ 30,995,431	$ 31,038,961
Due after one year through two years	4,507,500	3,920,260
Due after two years through three years	3,871,314	3,562,900
Due after three years through four years	3,274,786	2,678,103
Due after four years through five years	2,172,244	2,715,262
Thereafter	1,722,406	1,754,816
TOTAL PAR VALUE	46,543,681	45,670,302
Redemption Term, Year of Redemption Term or Next Conversion Date
Due in one year or less	32,190,718	31,299,438
Due after one year through two years	4,450,064	4,552,204
Due after two years through three years	4,424,323	3,954,979
Due after three years through four years	3,113,721	2,750,881
Due after four years through five years	1,478,050	1,600,481
Thereafter	886,805	1,512,319
TOTAL PAR VALUE	$ 46,543,681	$ 45,670,302

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Advances (Advances by Interest Rate Payment Terms) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fixed rate:
Due in one year or less	$ 18,020,968	$ 26,714,638
Due after one year through three years	6,399,722	6,034,768
Due after three years through five years	4,883,976	5,072,017
Due after five years through fifteen years	1,732,546	1,762,808
Due after fifteen years	27,284	28,659
Total fixed rate	31,064,496	39,612,890
Variable rate:
Due in one year or less	11,999,900	3,071,600
Due after one year through three years	2,414,415	2,061,415
Due after three years through five years	1,003,295	852,345
Due after five years through fifteen years	59,075	69,552
Due after fifteen years	2,500	2,500
Total variable rate	15,479,185	6,057,412
TOTAL PAR VALUE	$ 46,543,681	$ 45,670,302

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Mortgage Loans Mortgage Loans (Narrative) (Details) - Residential Portfolio Segment [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 4,315	$ 5,531
US Government Agency Insured Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans on non-accrual status	0	0
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 0	$ 0

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Mortgage Loans (Mortgage Loans Held For Portfolio) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Residential Mortgage Loans [Line Items]
MORTGAGE LOANS HELD FOR PORTFOLIO, NET		$ 8,719,897	$ 8,352,713
Fixed rates, medium-term [Member] | Single-family mortgage [Member]
Residential Mortgage Loans [Line Items]
Total unpaid principal balance	[1]	988,507	1,055,326
Fixed rates, long-term [Member] | Single-family mortgage [Member]
Residential Mortgage Loans [Line Items]
Total unpaid principal balance		7,660,125	7,227,825
Residential Portfolio Segment [Member]
Residential Mortgage Loans [Line Items]
Financing Receivable, Accrued Interest, after Allowance for Credit Loss		$ 49,332	$ 45,669
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]		Accrued interest receivable	Accrued interest receivable
Total unpaid principal balance		$ 8,648,632	$ 8,283,151
Premiums		95,453	94,485
Discounts		(6,253)	(5,591)
Deferred loan costs, net		36	39
Hedging adjustments		(13,656)	(13,840)
Total before allowance for credit losses on mortgage loans		8,724,212	8,358,244
Allowance for credit losses on mortgage loans		(4,315)	(5,531)
MORTGAGE LOANS HELD FOR PORTFOLIO, NET		$ 8,719,897	$ 8,352,713

[1] Medium-term defined as a term of 15 years or less at origination.

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Mortgage Loans (Mortgage Loans Held For Portfolio by Collateral or Guarantee Type) (Details) - Residential Portfolio Segment [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Residential Mortgage Loans [Line Items]
Total unpaid principal balance	$ 8,648,632	$ 8,283,151
Government Loans [Member]
Residential Mortgage Loans [Line Items]
Total unpaid principal balance	327,448	329,527
Conventional Loans [Member]
Residential Mortgage Loans [Line Items]
Total unpaid principal balance	$ 8,321,184	$ 7,953,624

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Mortgage Loans Mortgage Loans (Credit Quality Indicator for Conventional Mortgage Loans) (Details) - USD ($) $ in Thousands		Jun. 30, 2024		Dec. 31, 2023
Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	$ 8,724,212		$ 8,358,244
In process of foreclosure, included above	[2]	3,717		6,771
Past due 90 days or more and still accruing interest		3,611		2,657
Loans on non-accrual status		20,902	[3]	19,383	[4]
Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	2,633,940		1,803,367
Originated, Four Years before Current Year	[1]	1,451,643		984,967
Originated, Three Years before Current Year	[1]	1,663,853		1,514,311
Originated, Two Years before Current Year	[1]	825,429		1,728,548
Originated, Fiscal Year before Current Year	[1]	1,111,999		862,097
Originated, Current Year	[1]	705,959		1,131,303
Total before allowance for credit losses on mortgage loans	[1]	8,392,823		8,024,593
In process of foreclosure, included above	[2]	3,542		6,008
Past due 90 days or more and still accruing interest		0		0
Loans on non-accrual status		20,902	[3]	19,383	[4]
Financing Receivable, Nonaccrual, No Allowance		10,591		12,502
Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	331,389		333,651
In process of foreclosure, included above	[2]	175		763
Past due 90 days or more and still accruing interest		3,611		2,657
Loans on non-accrual status		0	[3]	0	[4]
Financial Asset, 30 to 59 Days Past Due [Member] | Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	48,321		58,248
Financial Asset, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	19,893		19,739
Originated, Four Years before Current Year	[1]	3,616		7,135
Originated, Three Years before Current Year	[1]	7,901		5,601
Originated, Two Years before Current Year	[1]	5,795		5,955
Originated, Fiscal Year before Current Year	[1]	2,713		6,745
Originated, Current Year	[1]	909		2,746
Total before allowance for credit losses on mortgage loans	[1]	40,827		47,921
Financial Asset, 30 to 59 Days Past Due [Member] | Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	7,494		10,327
Financial Asset, 60 to 89 Days Past Due [Member] | Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	14,014		12,761
Financial Asset, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	6,788		5,013
Originated, Four Years before Current Year	[1]	1,108		1,319
Originated, Three Years before Current Year	[1]	1,333		479
Originated, Two Years before Current Year	[1]	1,064		931
Originated, Fiscal Year before Current Year	[1]	1,085		2,047
Originated, Current Year	[1]	0		0
Total before allowance for credit losses on mortgage loans	[1]	11,378		9,789
Financial Asset, 60 to 89 Days Past Due [Member] | Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	2,636		2,972
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	$ 20,511		$ 18,878
Serious delinquency rate	[5]	0.20%		0.20%
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	$ 13,046		$ 8,063
Originated, Four Years before Current Year	[1]	961		5,185
Originated, Three Years before Current Year	[1]	261		1,354
Originated, Two Years before Current Year	[1]	2,155		1,170
Originated, Fiscal Year before Current Year	[1]	477		447
Originated, Current Year	[1]	0		0
Total before allowance for credit losses on mortgage loans	[1]	$ 16,900		$ 16,219
Serious delinquency rate	[5]	0.20%		0.20%
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	$ 3,611		$ 2,659
Serious delinquency rate	[5]	1.10%		0.80%
FinancialAssetPastDue [Member] | Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	$ 82,846		$ 89,887
FinancialAssetPastDue [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	39,727		32,815
Originated, Four Years before Current Year	[1]	5,685		13,639
Originated, Three Years before Current Year	[1]	9,495		7,434
Originated, Two Years before Current Year	[1]	9,014		8,056
Originated, Fiscal Year before Current Year	[1]	4,275		9,239
Originated, Current Year	[1]	909		2,746
Total before allowance for credit losses on mortgage loans	[1]	69,105		73,929
FinancialAssetPastDue [Member] | Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	13,741		15,958
Financial Asset, Not Past Due [Member] | Mortgage Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	8,641,366		8,268,357
Financial Asset, Not Past Due [Member] | Conventional Mortgage Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Originated, More than Five Years before Current Year	[1]	2,594,213		1,770,552
Originated, Four Years before Current Year	[1]	1,445,958		971,328
Originated, Three Years before Current Year	[1]	1,654,358		1,506,877
Originated, Two Years before Current Year	[1]	816,415		1,720,492
Originated, Fiscal Year before Current Year	[1]	1,107,724		852,858
Originated, Current Year	[1]	705,050		1,128,557
Total before allowance for credit losses on mortgage loans	[1]	8,323,718		7,950,664
Financial Asset, Not Past Due [Member] | Government Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Total before allowance for credit losses on mortgage loans	[1]	$ 317,648		$ 317,693

[1] Excludes accrued interest receivable.

[2] Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans dependent on their delinquency status.

[3] Includes $10,591,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

[4] Includes $12,502,000 of conventional mortgage loans on nonaccrual status that did not have an associated allowance for credit losses because either these loans were previously charged off to the expected recoverable value or the fair value of the underlying collateral was greater than the amortized cost of the loans.

[5] Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total amortized cost for the portfolio class.

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Mortgage Loans (Rollforward of Allowance for Credit Losses on Conventional Mortgage Loans) (Details) - Conventional Loans [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Allowance for credit losses:
Balance, beginning of the period	$ 5,202	$ 5,836	$ 5,531	$ 6,378
Net (charge-offs) recoveries	(24)	48	(153)	(92)
Provision (reversal) for credit losses	(863)	746	(1,063)	344
Balance, end of the period	$ 4,315	$ 6,630	$ 4,315	$ 6,630

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Derivatives And Hedging Activities (Fair Values of Derivatives Instruments) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		$ 48,853,045	$ 51,533,807
TOTAL, Derivative Assets		152,354	139,255
TOTAL, Derivative Liabilities		356,807	410,752
Netting adjustments and cash collateral, Derivative Assets	[1],[2]	164,176	211,112
Netting adjustments and cash collateral, Derivative Liabilities	[1],[2]	(355,856)	(409,892)
DERIVATIVE ASSETS		316,530	350,367
DERIVATIVE LIABILITIES		951	860
Cash collateral posted		581,618	649,456
Cash collateral received		61,586	28,452
Derivatives designated as hedging instruments: [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		40,379,766	44,804,870
TOTAL, Derivative Assets		128,645	116,352
TOTAL, Derivative Liabilities		356,687	410,595
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		8,473,279	6,728,937
TOTAL, Derivative Assets		23,709	22,903
TOTAL, Derivative Liabilities		120	157
Interest rate swaps [Member] | Derivatives designated as hedging instruments: [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		40,379,766
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		6,607,099	6,383,296
TOTAL, Derivative Assets		19,451	22,072
TOTAL, Derivative Liabilities		90	152
Interest rate caps/floors [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		1,804,000	304,000
TOTAL, Derivative Assets		4,194	698
TOTAL, Derivative Liabilities		0	0
Mortgage delivery commitments [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		62,180	41,641
TOTAL, Derivative Assets		64	133
TOTAL, Derivative Liabilities		$ 30	$ 5

[1] Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

[2] Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

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Derivatives And Hedging Activities (Net Gains or Losses on Derivatives and Hedging Activities) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Total amounts presented in the Statements of Income, Advances		$ 634,504	$ 613,730	$ 1,226,491	$ 1,150,324
Total amounts presented in the Statements of Income, Available-for-sale Securities		193,900	144,744	383,959	261,580
Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes		233,774	288,183	461,315	551,704
Total amounts presented in the Statements of Income, Consolidated Obligations Bonds		669,999	539,939	1,293,539	1,001,821
Interest Rate Contract [Member] | Advances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS		$ 74,628	$ 61,784	$ 152,479	$ 101,419
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Total amounts presented in the Statements of Income, Advances	Total amounts presented in the Statements of Income, Advances	Total amounts presented in the Statements of Income, Advances	Total amounts presented in the Statements of Income, Advances
Interest Rate Contract [Member] | Advances [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives1	[1]	$ 57,347	$ 241,132	$ 252,237	$ 162,326
Hedged items2	[2]	17,281	(179,348)	(99,758)	(60,907)
Interest Rate Contract [Member] | Available-for-Sale Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS		$ 56,430	$ 54,283	$ 113,864	$ 94,565
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Total amounts presented in the Statements of Income, Available-for-sale Securities	Total amounts presented in the Statements of Income, Available-for-sale Securities	Total amounts presented in the Statements of Income, Available-for-sale Securities	Total amounts presented in the Statements of Income, Available-for-sale Securities
Interest Rate Contract [Member] | Available-for-Sale Securities [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives1	[1]	$ 42,784	$ 155,006	$ 188,471	$ 83,788
Hedged items2	[2]	13,646	(100,723)	(74,607)	10,777
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS		$ (1,969)	$ (11,425)	$ (4,310)	$ (20,658)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes	Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes	Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes	Total amounts presented in the Statements of Income, Consolidated Obligations Discount Notes
Interest Rate Contract [Member] | Consolidated Obligations Discount Notes [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives1	[1]	$ (3,609)	$ (19,567)	$ (6,663)	$ (2,909)
Hedged items2	[2]	1,640	8,142	2,353	(17,749)
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON FAIR VALUE HEDGING RELATIONSHIPS		$ (72,464)	$ (73,762)	$ (149,908)	$ (143,039)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Total amounts presented in the Statements of Income, Consolidated Obligations Bonds	Total amounts presented in the Statements of Income, Consolidated Obligations Bonds	Total amounts presented in the Statements of Income, Consolidated Obligations Bonds	Total amounts presented in the Statements of Income, Consolidated Obligations Bonds
Interest Rate Contract [Member] | Consolidated Obligations Bonds [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives1	[1]	$ (29,912)	$ (169,181)	$ (114,399)	$ (114,280)
Hedged items2	[2]	$ (42,552)	$ 95,419	$ (35,509)	$ (28,759)

[1] Includes net interest settlements in interest income/expense.

[2] Includes amortization/accretion on closed fair value relationships in interest income.

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Derivatives And Hedging Activities Derivatives And Hedging Activities (Cumulative Basis Adjustments for Fair Value Hedges) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Advances [Member]
Derivatives, Fair Value [Line Items]
Carrying Value of Hedged Asset, Fair Value Hedge1	[1]	$ 14,400,473	$ 13,545,019
Hedged Asset, Statement of Financial Position [Extensible Enumeration]		Advances (Note 4)	Advances (Note 4)
Asset, Basis Adjustments for Active Hedging Relationships2	[2]	$ (307,745)	$ (206,332)
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2	[2]	(7,269)	(8,924)
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2	[2]	(315,014)	(215,256)
Available-for-Sale Securities [Member]
Derivatives, Fair Value [Line Items]
Carrying Value of Hedged Asset, Fair Value Hedge1	[1]	$ 7,172,766	$ 6,367,691
Hedged Asset, Statement of Financial Position [Extensible Enumeration]		Available-for-sale securities, amortized cost of $12,580,840 and $11,872,397 (Note 3)	Available-for-sale securities, amortized cost of $12,580,840 and $11,872,397 (Note 3)
Asset, Basis Adjustments for Active Hedging Relationships2	[2]	$ (331,365)	$ (256,757)
Hedged Asset, Basis Adjustments for Discontinued Hedging Relationships2	[2]	0	0
Hedged Asset, Cumulative Amount of Fair Value Hedging Basis Adjustments2	[2]	(331,365)	(256,757)
Consolidated Obligation Discount Notes [Member]
Derivatives, Fair Value [Line Items]
Carrying Value of Hedged Liability, Fair Value Hedge1	[1]	$ (4,699,519)	$ (3,874,550)
Hedged Liability, Statement of Financial Position [Extensible Enumeration]		Discount notes (Note 8)	Discount notes (Note 8)
Liability, Basis Adjustments for Active Hedging Relationships2	[2]	$ 4,665	$ 2,313
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2	[2]	0	0
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2	[2]	4,665	2,313
Consolidated Obligation Bonds [Member]
Derivatives, Fair Value [Line Items]
Carrying Value of Hedged Liability, Fair Value Hedge1	[1]	$ (13,227,169)	$ (20,374,603)
Hedged Liability, Statement of Financial Position [Extensible Enumeration]		Bonds (Note 8)	Bonds (Note 8)
Liability, Basis Adjustments for Active Hedging Relationships2	[2]	$ 330,478	$ 366,180
Hedged Liability, Basis Adjustments for Discontinued Hedging Relationships2	[2]	(5,744)	(5,937)
Hedged Liability, Cumulative Amount of Fair Value Hedging Basis Adjustments2	[2]	$ 324,734	$ 360,243

[1] Includes only the portion of carrying value representing the hedged items in fair value hedging relationships. For available-for-sale securities, amortized cost is considered to be carrying value (i.e., the fair value adjustment recorded in accumulated other comprehensive income (AOCI) is excluded).

[2] Included in amortized cost of the hedged asset/liability.

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Derivatives And Hedging Activities (Net Gains Or Losses On Derivatives And Hedging Activities in Non-Interest Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	$ 1,678	$ 20,294	$ 10,206	$ 19,769
Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	(5,118)	11,371	(4,344)	3,084
Interest rate caps/floors [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	(1,192)	475	(1,796)	125
Net Interest Settlements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	8,282	9,257	16,820	17,555
Price alignment interest
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	(117)	(182)	(242)	(391)
Mortgage delivery commitments [Member] | Mortgage Receivable [Member]
Derivative Instruments, Gain (Loss) [Line Items]
NET GAINS (LOSSES) ON DERIVATIVES	$ (177)	$ (627)	$ (232)	$ (604)

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Deposits (Types Of Deposits) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Interest-bearing:
Demand	$ 324,971	$ 297,267
Overnight	423,300	391,900
Term Deposits	9,400	10,650
Total interest-bearing	757,671	699,817
Non-interest-bearing:
Other	59,401	52,383
Total non-interest-bearing	59,401	52,383
TOTAL DEPOSITS	$ 817,072	$ 752,200

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Consolidated Obligations (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Par value	$ 56,386,910	$ 49,409,390
Federal Home Loan Bank, Consolidated Obligations, Callable Option [Member]
Debt Instrument [Line Items]
Par value	$ 18,362,300	$ 22,940,000

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Consolidated Obligations (Consolidated Bond Obligations Outstanding By Contractual Maturity) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total par value	$ 56,386,910	$ 49,409,390
Total par value, Weighted Average Interest Rate	4.40%	4.15%
Premium	$ 11,423	$ 12,874
Discounts	(2,473)	(3,108)
Concession fees	(11,970)	(11,424)
Hedging adjustments	(324,734)	(360,243)
TOTAL	56,059,156	49,047,489
Contractual Maturity Date, Long-term Debt [Member]
Debt Instrument [Line Items]
Due in one year or less	$ 34,655,725	$ 28,152,305
Due in one year or less, Weighted Average Interest Rate	4.89%	4.90%
Due after one year through two years	$ 9,574,220	$ 9,327,370
Due after one year through two years, Weighted Average Interest Rate	4.49%	4.21%
Due after two years through three years	$ 4,066,610	$ 4,294,125
Due after two years through three years, Weighted Average Interest Rate	2.35%	2.01%
Due after three years through four years	$ 1,691,350	$ 1,780,895
Due after three years through four years, Weighted Average Interest Rate	2.89%	2.01%
Due after four years through five years	$ 1,474,000	$ 1,467,440
Due after four years through five years, Weighted Average Interest Rate	3.62%	2.96%
Thereafter	$ 4,925,005	$ 4,387,255
Thereafter, Weighted Average Interest Rate	3.19%	2.63%

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Consolidated Obligations (Consolidated Bond Obligations By Contractual Maturity Or Next Call Date) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total par value	$ 56,386,910	$ 49,409,390
Earlier of Contractual Maturity or Next Call Date [Member]
Debt Instrument [Line Items]
Due in one year or less	45,978,225	40,475,305
Due after one year through two years	7,458,720	6,503,370
Due after two years through three years	1,482,610	1,227,125
Due after three years through four years	793,850	362,895
Due after four years through five years	259,000	493,940
Thereafter	$ 414,505	$ 346,755

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Consolidated Obligations (Consolidated Bonds By Interest-Rate Payment Type) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total par value	$ 56,386,910	$ 49,409,390
Fixed rate [Member]
Debt Instrument [Line Items]
Total par value	21,241,410	28,093,390
Simple variable rate [Member]
Debt Instrument [Line Items]
Total par value	33,518,500	19,524,000
Step [Member]
Debt Instrument [Line Items]
Total par value	$ 1,627,000	$ 1,792,000

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Consolidated Obligations (Consolidated Discount Notes Outstanding) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Short-term Debt [Line Items]
Carrying Value		$ 18,209,813	$ 20,743,249
Consolidated Obligation Discount Notes [Member]
Short-term Debt [Line Items]
Par Value		$ 18,418,401	$ 20,903,145
Weighted Average Interest Rate	[1]	5.11%	5.15%

[1] Represents yield to maturity excluding concession fees.

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Assets and Liabilities Subject to Offsetting Assets Subject to Offsetting (Schedule of Offsetting Assets) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Offsetting Assets [Line Items]
Derivative assets, Gross Amounts of Recognized Assets		$ 152,354	$ 139,255
Derivative assets, Gross Amounts Offset in the Statement of Condition	[1],[2]	164,176	211,112
Total derivative assets		316,530	350,367
Derivative Asset, Gross Amounts Not Offset in the Statement of Condition	[3]	(64)	(133)
Derivative Asset, Net Amount		316,466	350,234
Securities purchased under agreements to resell, Gross Amounts of Recognized Assets		2,925,000	3,875,000
Securities Purchased under Agreements to Resell, Gross Amounts Offset in the Statements of Condition		0	0
Securities Purchased under Agreements to Resell, Net Amounts of Liabilities Presented in the Statement of Condition		2,925,000	3,875,000
Securities purchased under agreements to resell, Gross Amounts Not Offset in the Statement of Condition	[3]	(2,925,000)	(3,875,000)
Security Purchased under Agreement to Resell, Net Amount		0	0
TOTAL, Gross Amounts of Recognized Assets		3,077,354	4,014,255
TOTAL, Gross Amounts Offset in the Statement of Condition		164,176	211,112
TOTAL, Net Amounts of Assets Presented in the Statement of Condition		3,241,530	4,225,367
TOTAL, Gross Amounts Not Offset in the Statement of Condition1	[3]	(2,925,064)	(3,875,133)
TOTAL, Net Amount		316,466	350,234
Uncleared derivatives [Member]
Offsetting Assets [Line Items]
Derivative assets, Gross Amounts of Recognized Assets		140,522	136,141
Derivative assets, Gross Amounts Offset in the Statement of Condition		(138,570)	(133,650)
Total derivative assets		1,952	2,491
Derivative Asset, Gross Amounts Not Offset in the Statement of Condition	[3]	(64)	(133)
Derivative Asset, Net Amount		1,888	2,358
Cleared derivatives [Member]
Offsetting Assets [Line Items]
Derivative assets, Gross Amounts of Recognized Assets		11,832	3,114
Derivative assets, Gross Amounts Offset in the Statement of Condition		302,746	344,762
Total derivative assets		314,578	347,876
Derivative Asset, Gross Amounts Not Offset in the Statement of Condition	[3]	0	0
Derivative Asset, Net Amount		$ 314,578	$ 347,876

[1] Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

[2] Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

[3] Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

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Assets and Liabilities Subject to Offsetting Liabilities Subject to Offsetting (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Offsetting Liabilities [Line Items]
Derivative liabilities, Gross Amounts of Recognized Liabilities		$ 356,807	$ 410,752
Derivative liabilities, Gross Amounts Offset in the Statement of Condition	[1],[2]	(355,856)	(409,892)
Total derivative liabilities		951	860
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition	[3]	(30)	(5)
Derivative liabilities, Net Amount		921	855
TOTAL, Gross Amounts of Recognized Liabilities		356,807	410,752
TOTAL, Gross Amounts Offset in the Statement of Condition		(355,856)	(409,892)
TOTAL, Net Amounts of Liabilities Presented in the Statement of Condition		951	860
TOTAL, Gross Amounts Not Offset in the Statement of Condition	[3]	(30)	(5)
TOTAL, Net Amount		921	855
Uncleared derivatives [Member]
Offsetting Liabilities [Line Items]
Derivative liabilities, Gross Amounts of Recognized Liabilities		353,412	402,527
Derivative liabilities, Gross Amounts Offset in the Statement of Condition		(352,461)	(401,667)
Total derivative liabilities		951	860
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition	[3]	(30)	(5)
Derivative liabilities, Net Amount		921	855
Cleared derivatives [Member]
Offsetting Liabilities [Line Items]
Derivative liabilities, Gross Amounts of Recognized Liabilities		3,395	8,225
Derivative liabilities, Gross Amounts Offset in the Statement of Condition		(3,395)	(8,225)
Total derivative liabilities		0	0
Derivative liabilities, Gross Amounts Not Offset in the Statement of Condition	[3]	0	0
Derivative liabilities, Net Amount		$ 0	$ 0

[1] Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

[2] Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

[3] Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

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Capital (Narrative) (Details)		6 Months Ended
		Jun. 30, 2024 $ / shares Rate	Dec. 31, 2023 $ / shares
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage capital, permanent capital weight		1.5
Common Stock, par value per share		$ 100
Excess Stock (less than) | Rate		1.00%
Class A [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Leverage capital, non-permanent capital weight		1
Common Stock, par value per share	[1]	$ 100	$ 100
Class B [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Stock, par value per share	[1]	$ 100	$ 100

[1] Putable

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Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Regulatory capital requirements:
Risk-based capital, Required	$ 805,359	$ 746,439
Risk-based capital, Actual	$ 3,932,532	$ 3,730,738
Total regulatory capital-to-asset ratio, Actual	5.30%	5.40%
Total regulatory capital, Required	$ 3,190,201	$ 2,997,879
Total regulatory capital, Actual	$ 4,251,892	$ 4,009,870
Leverage capital ratio, Actual	7.80%	7.80%
Leverage capital, Required	$ 3,987,752	$ 3,747,349
Leverage capital, Actual	$ 6,218,158	$ 5,875,238

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Capital (Mandatorily Redeemable Capital Stock Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Mandatorily Redeemable Capital Stock [Roll Forward]
Balance, beginning of period	$ 205	$ 269	$ 247	$ 280
Capital stock subject to mandatory redemption reclassified from equity during the period	77,949	282,260	232,442	493,497
Redemption or repurchase of mandatorily redeemable capital stock during the period	(74,762)	(282,271)	(229,299)	(493,521)
Stock dividend classified as mandatorily redeemable capital stock during the period	50	5	52	7
Balance, end of period	$ 3,442	$ 263	$ 3,442	$ 263

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Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Or Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income [Roll Forward]
Balance at the beginning of the period	$ 3,864,707	$ 3,865,447	$ 3,890,652	$ 3,676,544
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)	(1,446)	5,061	441
Reclassifications from other comprehensive income (loss) to net income:
Total other comprehensive income (loss)	(18,962)	(1,446)	5,230	441
Balance at the end of the period	4,134,709	3,896,486	4,134,709	3,896,486
Total AOCI [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Balance at the beginning of the period	(94,779)	(82,383)	(118,971)	(84,270)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)	(1,446)	5,061	441
Impact of settlements - defined benefit pension plan	169		169
Reclassifications from other comprehensive income (loss) to net income:
Total other comprehensive income (loss)	(18,962)	(1,446)	5,230	441
Balance at the end of the period	(113,741)	(83,829)	(113,741)	(83,829)
Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Balance at the beginning of the period	(94,752)	(82,556)	(118,944)	(84,443)
Other comprehensive income (loss) before reclassification:
Unrealized gains (losses)	(19,131)	(1,446)	5,061	441
Reclassifications from other comprehensive income (loss) to net income:
Total other comprehensive income (loss)	(19,131)	(1,446)	5,061	441
Balance at the end of the period	(113,883)	(84,002)	(113,883)	(84,002)
Defined Benefit Pension Plan [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Balance at the beginning of the period	(27)	173	(27)	173
Other comprehensive income (loss) before reclassification:
Impact of settlements - defined benefit pension plan	169		169
Reclassifications from other comprehensive income (loss) to net income:
Total other comprehensive income (loss)	169	0	169	0
Balance at the end of the period	$ 142	$ 173	$ 142	$ 173

XML

Fair Values (Fair Value Summary) (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Assets:
Cash and due from banks		$ 26,550		$ 26,062
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Held-to-maturity securities, Carrying Value		247,993		264,796
Held-to-maturity securities		244,428		260,653
Accrued interest receivable		275,977		204,243
Derivative assets		316,530		350,367
Netting adjustments and cash collateral, Derivative Assets	[1],[2]	164,176		211,112
Liabilities:
Accrued interest payable		380,927		361,840
Derivative liabilities		951		860
Netting adjustments and cash collateral, Derivative Liabilities	[1],[2]	(355,856)		(409,892)
Other Asset (Liability):
Advances (Note 4)		46,219,747		45,444,769
Mortgage loans held for portfolio, net of allowance for credit losses of $4,315 and $5,531 (Note 5)		8,719,897		8,352,713
Discount notes (Note 8)		18,209,813		20,743,249
Bonds (Note 8)		56,059,156		49,047,489
Mandatorily redeemable capital stock (Note 10)		3,442	$ 205	247	$ 263	$ 269	$ 280
Carrying Value [Member]
Assets:
Cash and due from banks		26,550		26,062
Interest-bearing deposits		2,339,648		1,604,989
Securities purchased under agreements to resell		2,925,000		3,875,000
Federal funds sold		5,292,000		2,080,000
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Held-to-maturity securities, Carrying Value		247,993		264,796
Advances		46,219,747		45,444,769
Mortgage loans held for portfolio, net of allowance		8,719,897		8,352,713
Accrued interest receivable		275,977		204,243
Derivative assets		316,530		350,367
Liabilities:
Deposits		817,072		752,200
Mandatorily redeemable capital stock		3,442		247
Accrued interest payable		380,927		361,840
Derivative liabilities		951		860
Carrying Value [Member] | Industrial revenue bond [Member]
Other Asset (Liability):
Other asset (liability), asset		35,000		35,000
Carrying Value [Member] | Financing lease payable [Member]
Other Asset (Liability):
Other asset (liability), liability		(35,000)		(35,000)
Carrying Value [Member] | Consolidated Obligation Discount Notes [Member]
Liabilities:
Consolidated obligation discount notes		18,209,813		20,743,249
Carrying Value [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Consolidated obligation bonds		56,059,156		49,047,489
Fair Value [Member]
Assets:
Cash and due from banks		26,550		26,062
Interest-bearing deposits		2,339,114		1,604,989
Securities purchased under agreements to resell		2,925,000		3,875,000
Federal funds sold		5,292,000		2,080,000
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Held-to-maturity securities		244,428		260,653
Advances		46,240,518		45,452,358
Mortgage loans held for portfolio, net of allowance		7,725,206		7,493,015
Accrued interest receivable		275,977		204,243
Derivative assets		316,530		350,367
Liabilities:
Deposits		817,069		752,209
Mandatorily redeemable capital stock		3,442		247
Accrued interest payable		380,927		361,840
Derivative liabilities		951		860
Fair Value [Member] | Industrial revenue bond [Member]
Other Asset (Liability):
Other asset (liability), asset		32,491		32,695
Fair Value [Member] | Financing lease payable [Member]
Other Asset (Liability):
Other asset (liability), liability		(32,491)		(32,695)
Fair Value [Member] | Consolidated Obligation Discount Notes [Member]
Liabilities:
Consolidated obligation discount notes		18,210,161		20,743,707
Fair Value [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Consolidated obligation bonds		55,121,561		48,096,791
Level 1 [Member]
Assets:
Cash and due from banks		26,550		26,062
Interest-bearing deposits		0		0
Securities purchased under agreements to resell		0		0
Federal funds sold		0		0
Trading securities		0		0
Available-for-sale securities		0		0
Held-to-maturity securities		0		0
Advances		0		0
Mortgage loans held for portfolio, net of allowance		0		0
Accrued interest receivable		0		0
Derivative assets		0		0
Liabilities:
Deposits		0		0
Mandatorily redeemable capital stock		3,442		247
Accrued interest payable		0		0
Derivative liabilities		0		0
Level 1 [Member] | Industrial revenue bond [Member]
Other Asset (Liability):
Other asset (liability), asset		0		0
Level 1 [Member] | Financing lease payable [Member]
Other Asset (Liability):
Other asset (liability), liability		0		0
Level 1 [Member] | Consolidated Obligation Discount Notes [Member]
Liabilities:
Consolidated obligation discount notes		0		0
Level 1 [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Consolidated obligation bonds		0		0
Level 2 [Member]
Assets:
Cash and due from banks		0		0
Interest-bearing deposits		2,339,114		1,604,989
Securities purchased under agreements to resell		2,925,000		3,875,000
Federal funds sold		5,292,000		2,080,000
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Held-to-maturity securities		210,199		225,444
Advances		46,240,518		45,452,358
Mortgage loans held for portfolio, net of allowance		7,721,106		7,490,867
Accrued interest receivable		275,977		204,243
Derivative assets		152,354		139,255
Liabilities:
Deposits		817,069		752,209
Mandatorily redeemable capital stock		0		0
Accrued interest payable		380,927		361,840
Derivative liabilities		356,807		410,752
Level 2 [Member] | Industrial revenue bond [Member]
Other Asset (Liability):
Other asset (liability), asset		32,491		32,695
Level 2 [Member] | Financing lease payable [Member]
Other Asset (Liability):
Other asset (liability), liability		(32,491)		(32,695)
Level 2 [Member] | Consolidated Obligation Discount Notes [Member]
Liabilities:
Consolidated obligation discount notes		18,210,161		20,743,707
Level 2 [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Consolidated obligation bonds		55,121,561		48,096,791
Level 3 [Member]
Assets:
Cash and due from banks		0		0
Interest-bearing deposits		0		0
Securities purchased under agreements to resell		0		0
Federal funds sold		0		0
Trading securities		0		0
Available-for-sale securities		0		0
Held-to-maturity securities		34,229		35,209
Advances		0		0
Mortgage loans held for portfolio, net of allowance		4,100		2,148
Accrued interest receivable		0		0
Derivative assets		0		0
Liabilities:
Deposits		0		0
Mandatorily redeemable capital stock		0		0
Accrued interest payable		0		0
Derivative liabilities		0		0
Level 3 [Member] | Industrial revenue bond [Member]
Other Asset (Liability):
Other asset (liability), asset		0		0
Level 3 [Member] | Financing lease payable [Member]
Other Asset (Liability):
Other asset (liability), liability		0		0
Level 3 [Member] | Consolidated Obligation Discount Notes [Member]
Liabilities:
Consolidated obligation discount notes		0		0
Level 3 [Member] | Consolidated Obligation Bonds [Member]
Liabilities:
Consolidated obligation bonds		$ 0		$ 0

[1] Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

[2] Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

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Fair Values (Hierarchy Level for Financial Assets And Liabilities - Recurring And Nonrecurring) (Details) - USD ($) $ in Thousands		Jun. 30, 2024		Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		$ 843,742		$ 908,608
Available-for-sale securities		12,466,957		11,753,453
Total derivative assets		316,530		350,367
Netting adjustments and cash collateral, Derivative Assets	[1],[2]	164,176		211,112
Total derivative liabilities		951		860
Netting adjustments and cash collateral, Derivative Liabilities	[1],[2]	(355,856)		(409,892)
Held-to-maturity securities		244,428		260,653
U.S. Treasury obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		3,173,580		2,937,868
GSE Debenture [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		241,444		288,438
U.S. obligation MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		88,847		107,535
GSE MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		602,298		620,170
Available-for-sale securities		9,204,530		8,708,050
Held-to-maturity securities		210,199		225,444
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Total derivative assets		152,354		139,255
Total derivative liabilities		356,807		410,752
Held-to-maturity securities		210,199		225,444
Mortgage loans held for portfolio		7,721,106		7,490,867
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0		0
Available-for-sale securities		0		0
Total derivative assets		0		0
Total derivative liabilities		0		0
Held-to-maturity securities		34,229		35,209
Mortgage loans held for portfolio		4,100		2,148
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Total derivative assets		316,530		350,367
Total derivative liabilities		951		860
Held-to-maturity securities		244,428		260,653
Mortgage loans held for portfolio		7,725,206		7,493,015
Recurring fair value measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Netting adjustments and cash collateral, Derivative Assets	[2]	164,176		211,112
Netting adjustments and cash collateral, Derivative Liabilities	[2]	(355,856)		(409,892)
Recurring fair value measurements [Member] | Interest-rate related [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Netting adjustments and cash collateral, Derivative Assets	[2]	164,176		211,112
Netting adjustments and cash collateral, Derivative Liabilities	[2]	(355,856)		(409,892)
Recurring fair value measurements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Total derivative assets		152,354		139,255
TOTAL FAIR VALUE MEASUREMENTS - ASSETS		13,463,053		12,801,316
Total derivative liabilities		356,807		410,752
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES		356,807		410,752
Recurring fair value measurements [Member] | Level 2 [Member] | Interest-rate related [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets		152,290		139,122
Total derivative liabilities		356,777		410,747
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. Treasury obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		3,173,580		2,937,868
Recurring fair value measurements [Member] | Level 2 [Member] | GSE Debenture [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		241,444		288,438
Recurring fair value measurements [Member] | Level 2 [Member] | U.S. obligation MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		88,847		107,535
Recurring fair value measurements [Member] | Level 2 [Member] | GSE MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		602,298		620,170
Available-for-sale securities		9,204,530		8,708,050
Recurring fair value measurements [Member] | Level 2 [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets		64		133
Total derivative liabilities		30		5
Recurring fair value measurements [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		843,742		908,608
Available-for-sale securities		12,466,957		11,753,453
Total derivative assets		316,530		350,367
TOTAL FAIR VALUE MEASUREMENTS - ASSETS		13,627,229		13,012,428
Total derivative liabilities		951		860
TOTAL FAIR VALUE MEASUREMENTS - LIABILITIES		951		860
Recurring fair value measurements [Member] | Fair Value [Member] | Interest-rate related [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets		316,466		350,234
Total derivative liabilities		921		855
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. Treasury obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		3,173,580		2,937,868
Recurring fair value measurements [Member] | Fair Value [Member] | GSE Debenture [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		241,444		288,438
Recurring fair value measurements [Member] | Fair Value [Member] | U.S. obligation MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		88,847		107,535
Recurring fair value measurements [Member] | Fair Value [Member] | GSE MBS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		602,298		620,170
Available-for-sale securities		9,204,530		8,708,050
Recurring fair value measurements [Member] | Fair Value [Member] | Mortgage Receivable [Member] | Mortgage delivery commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total derivative assets		64		133
Total derivative liabilities		30		5
Nonrecurring fair value measurements - Assets: [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
TOTAL FAIR VALUE MEASUREMENTS - ASSETS		4,146	[3]	2,221	[4]
Mortgage loans held for portfolio		4,146	[3]	2,178	[4]
Real estate owned	[4]			43
Nonrecurring fair value measurements - Assets: [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
TOTAL FAIR VALUE MEASUREMENTS - ASSETS		4,146	[3]	2,221	[4]
Mortgage loans held for portfolio		$ 4,146	[3]	2,178	[4]
Real estate owned	[4]			$ 43

[1] Amounts represent the application of the netting requirements that allow FHLBank to settle positive and negative positions and cash collateral, including accrued interest, held or placed with the same clearing agent and/or derivative counterparty. Cash collateral posted was $581,618,000 and $649,456,000 as of June 30, 2024 and December 31, 2023, respectively. Cash collateral received was $61,586,000 and $28,452,000 as of June 30, 2024 and December 31, 2023, respectively.

[2] Represents the effect of legally enforceable master netting agreements that allow FHLBank to net settle positive and negative positions and also derivative cash collateral, including related accrued interest, held or placed with the same clearing agent or derivative counterparty.

[3] Includes assets adjusted to fair value during the six months ended June 30, 2024 and still outstanding as of June 30, 2024.

[4] Includes assets adjusted to fair value during the year ended December 31, 2023 and still outstanding as of December 31, 2023.

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Commitments And Contingencies (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Off-balance Sheet Commitments:
Obligation with Joint and Several Liability Arrangement, Description	As provided in the Bank Act or in FHFA regulations, consolidated obligations are backed only by the financial resources of the FHLBanks. FHLBank Topeka is jointly and severally liable with the other FHLBanks for the payment of principal and interest on all of the consolidated obligations issued by the FHLBanks.
Obligation with joint and several liability arrangement, off balance sheet amount	$ 1,117,189,190		$ 1,134,003,465
Carrying value included in other liabilities	$ 59,833		$ 72,654
Number of in-district state housing authorities with standby bond purchase agreements	2		2
Stand by Bond Purchase Agreements, Aquired And Sold At Par, During the Period	$ 0	$ 0
Mortgage Delivery Commitments Derivative Asset (Liability)	$ 34		$ 128
Standby Letters of Credit Outstanding [Member]
Off-balance Sheet Commitments:
Commitment Expiration Year (no later than)	2026
Carrying value included in other liabilities	$ 2,542		$ 2,367
Forward Settling Advance Commitments [Member]
Off-balance Sheet Commitments:
Term (up to)	24 months
Commitments for standby bond purchases [Member]
Off-balance Sheet Commitments:
Commitment Expiration Year (no later than)	2029
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member]
Off-balance Sheet Commitments:
Term (up to)	60 calendar days

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Commitments And Contingencies (Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Standby letters of credit outstanding [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	$ 7,086,338	$ 7,242,988
Expire After One Year	59,337	5,670
Total	7,145,675	7,248,658
Advance commitments outstanding [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	12,636	48,526
Expire After One Year	3,069	3,615
Total	15,705	52,141
Principal commitments for standby bond purchase agreements [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	116,055	283,220
Expire After One Year	869,045	716,295
Total	985,100	999,515
Commitments to issue consolidated bonds, at par [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	2,000	1,300,000
Expire After One Year	0	0
Total	2,000	1,300,000
Commitments to issue consolidated obligations discount notes, at par [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	55,912	0
Expire After One Year	0	0
Total	55,912	0
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off Balance Sheet Risks, Face Amount, Expiring Within One Year	62,180	41,641
Expire After One Year	0	0
Total	$ 62,180	$ 41,641

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Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Outstanding Advances	$ 46,219,747		$ 46,219,747		$ 45,444,769
Outstanding Deposits	817,072		817,072		752,200
Ten Percent Owner [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 910,757		$ 910,757		$ 826,330
Regulatory Capital Stock, Percent Of Total	33.20%		33.20%		31.70%
Outstanding Advances	$ 17,340,000		$ 17,340,000		$ 17,260,000
Outstanding Advances, Percent of Total	37.30%		37.30%		37.80%
Outstanding Deposits	$ 63,844		$ 63,844		$ 26,076
Outstanding Deposits, Percent of Total	7.80%		7.80%		3.50%
Ten Percent Owner [Member] | Total Class A Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 75,499		$ 75,499		$ 35,973
Regulatory Capital Stock, Percent Of Total	23.60%		23.60%		12.90%
Ten Percent Owner [Member] | Total Class B Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 835,258		$ 835,258		$ 790,357
Regulatory Capital Stock, Percent Of Total	34.50%		34.50%		33.90%
MidFirst Bank [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 513,252		$ 513,252		$ 478,818
Regulatory Capital Stock, Percent Of Total	18.70%		18.70%		18.40%
Outstanding Advances	$ 10,840,000		$ 10,840,000		$ 9,585,000
Outstanding Advances, Percent of Total	23.30%		23.30%		21.00%
Outstanding Deposits	$ 5,078		$ 5,078		$ 3,751
Outstanding Deposits, Percent of Total	0.60%		0.60%		0.50%
Loans And Leases Receivable, Acquired or Funded With Related Party During Period	$ 0	$ 0	$ 0	$ 0
MidFirst Bank [Member] | Total Class A Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 3,202		$ 3,202		$ 35,473
Regulatory Capital Stock, Percent Of Total	1.00%		1.00%		12.70%
MidFirst Bank [Member] | Total Class B Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 510,050		$ 510,050		$ 443,345
Regulatory Capital Stock, Percent Of Total	21.10%		21.10%		19.00%
BOKF, N.A. [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 397,505		$ 397,505		$ 347,512
Regulatory Capital Stock, Percent Of Total	14.50%		14.50%		13.30%
Outstanding Advances	$ 6,500,000		$ 6,500,000		$ 7,675,000
Outstanding Advances, Percent of Total	14.00%		14.00%		16.80%
Outstanding Deposits	$ 58,766		$ 58,766		$ 22,325
Outstanding Deposits, Percent of Total	7.20%		7.20%		3.00%
Loans And Leases Receivable, Acquired or Funded With Related Party During Period	$ 12,143		$ 20,941
BOKF, N.A. [Member] | Total Class A Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 72,297		$ 72,297		$ 500
Regulatory Capital Stock, Percent Of Total	22.60%		22.60%		0.20%
BOKF, N.A. [Member] | Total Class B Stock [Member]
Related Party Transaction [Line Items]
Regulatory Capital Stock, Total Par Value	$ 325,208		$ 325,208		$ 347,012
Regulatory Capital Stock, Percent Of Total	13.40%		13.40%		14.90%

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Transactions With Stockholders (Related Party Transactions, by Balance Sheet Grouping-Directors) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Advances, Outstanding Amount	$ 46,219,747	$ 45,444,769
Deposits, Outstanding Amount	817,072	752,200
Director [Member]
Related Party Transaction [Line Items]
Advances, Outstanding Amount	$ 6,700,733	$ 270,308
Advances, Percent of Total	14.40%	0.60%
Deposits, Outstanding Amount	$ 61,071	$ 7,314
Deposits, Percent of Total	7.50%	1.00%
TOTAL CAPITAL STOCK, Outstanding Amount	$ 413,519	$ 19,238
TOTAL CAPITAL STOCK, Percent Of Total	15.10%	0.70%
Director [Member] | Class A [Member]
Related Party Transaction [Line Items]
TOTAL CAPITAL STOCK, Outstanding Amount	$ 76,257	$ 4,314
TOTAL CAPITAL STOCK, Percent Of Total	23.90%	1.50%
Director [Member] | Class B [Member]
Related Party Transaction [Line Items]
TOTAL CAPITAL STOCK, Outstanding Amount	$ 337,262	$ 14,924
TOTAL CAPITAL STOCK, Percent Of Total	13.90%	0.60%

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Transactions With Stockholders (Schedule Of Related Party Transactions, Mortgage Loans Disclosure) (Details) - Director [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Mortgage loans acquired	$ 19,738	$ 4,473	$ 34,984	$ 8,984
Mortgage loans acquired, Percent of Total	4.00%	1.30%	4.60%	1.70%

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Transactions With Other FHLBanks (Details2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Mar. 31, 2023	Jun. 30, 2024
Federal Home Loan Banks [Abstract]
Bonds Transferred to Other Federal Home Loan Banks, PAR	$ 0	$ 1,000,000	$ 0