10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________ 

FORM 10-Q

_____________________________________

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

For the quarterly period ended September 30, 2014

OR

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

Commission File Number: 000-51845

 _____________________________________ 

FEDERAL HOME LOAN BANK OF ATLANTA

(Exact name of registrant as specified in its charter)

_____________________________________  

Federally chartered corporation	56-6000442
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1475 Peachtree Street, NE, Atlanta, Ga.	30309
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (404) 888-8000

_____________________________________  

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 for the past 90 days.    ý  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ý  Yes    ¨  No

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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

The number of shares outstanding of the registrant’s Class B Stock, par value $100, as of October 31, 2014 was 46,847,312.

Table of Contents

PART I. FINANCIAL INFORMATION		3
Item 1.	Financial Statements (Unaudited)	3
	STATEMENTS OF CONDITION	3
	STATEMENTS OF INCOME	4
	STATEMENTS OF COMPREHENSIVE INCOME	5
	STATEMENTS OF CAPITAL	6
	STATEMENTS OF CASH FLOWS	7
	NOTES TO FINANCIAL STATEMENTS	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	67
PART II. OTHER INFORMATION		69
Item 1.	Legal Proceedings	69
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosure	69
Item 5.	Other Information	69
Item 6.	Exhibits	69
SIGNATURES		70

PART I. FINANCIAL INFORMATION.

Item 1. Financial Statements.

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CONDITION

(Unaudited)

(In millions, except par value)

	As of September 30, 2014			As of December 31, 2013
Assets
Cash and due from banks	$	4,386		$	4,374
Interest-bearing deposits (including deposits with another FHLBank of $2 and $1 as of September 30, 2014 and December 31, 2013, respectively)	1,010			1,007
Securities purchased under agreements to resell	455			—
Federal funds sold	4,095			1,795
Investment securities:
Trading securities (includes another FHLBank’s bond of $61 and $65 as of September 30, 2014 and December 31, 2013, respectively)	1,428			1,667
Available-for-sale securities	2,073			2,299
Held-to-maturity securities (fair value of $21,141 and $20,146 as of September 30, 2014 and December 31, 2013, respectively)	21,082			20,176
Total investment securities	24,583			24,142
Advances	88,627			89,588
Mortgage loans held for portfolio, net:
Mortgage loans held for portfolio	792			929
Allowance for credit losses on mortgage loans	(4		)	(11		)
Total mortgage loans held for portfolio, net	788			918
Accrued interest receivable	184			199
Derivative assets	118			53
Premises and equipment, net	26			29
Other assets	165			211
Total assets	$	124,437		$	122,316
Liabilities
Interest-bearing deposits	$	1,271		$	1,752
Consolidated obligations, net:
Discount notes	26,055			32,202
Bonds	89,670			80,728
Total consolidated obligations, net	115,725			112,930
Mandatorily redeemable capital stock	19			24
Accrued interest payable	202			183
Affordable Housing Program payable	69			74
Derivative liabilities	180			187
Other liabilities	451			514
Total liabilities	117,917			115,664
Commitments and contingencies (Note 15)
Capital
Capital stock Class B putable ($100 par value) issued and outstanding shares:
Subclass B1 issued and outstanding shares: 7 and 10 as of September 30, 2014 and December 31, 2013, respectively	727			946
Subclass B2 issued and outstanding shares: 39 as of September 30, 2014 and December 31, 2013	3,927			3,937
Total capital stock Class B putable	4,654			4,883
Retained earnings:
Restricted	184			141
Unrestricted	1,555			1,516
Total retained earnings	1,739			1,657
Accumulated other comprehensive income	127			112
Total capital	6,520			6,652
Total liabilities and capital	$	124,437		$	122,316

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

3

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF INCOME

(Unaudited)

(In millions)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Interest income
Advances	$	11		$	54		$	119		$	178
Prepayment fees on advances, net	—			1			1			2
Interest-bearing deposits	1			1			3			4
Securities purchased under agreements to resell	1			1			1			1
Federal funds sold	2			1			6			7
Trading securities	19			26			57			79
Available-for-sale securities	30			33			93			98
Held-to-maturity securities	58			65			180			188
Mortgage loans	12			14			38			47
Total interest income	134			196			498			604
Interest expense
Consolidated obligations:
Discount notes	8			5			22			19
Bonds	80			104			247			325
Mandatorily redeemable capital stock	—			1			1			1
Total interest expense	88			110			270			345
Net interest income	46			86			228			259
(Reversal) provision for credit losses	(2		)	1			(4		)	4
Net interest income after (reversal) provision for credit losses	48			85			232			255
Noninterest income (loss)
Total other-than-temporary impairment losses	—			—			—			(1		)
Net amount of impairment losses (reclassified from) recorded in accumulated other comprehensive income	(2		)	—			(3		)	1
Net impairment losses recognized in earnings	(2		)	—			(3		)	—
Net losses on trading securities	(19		)	(15		)	(46		)	(79		)
Net gains on derivatives and hedging activities	77			34			108			151
Gain on early extinguishment of debt	—			2			15			2
Letters of credit fees	7			4			20			14
Gain on litigation settlements, net	4			—			4			—
Other	—			—			2			2
Total noninterest income	67			25			100			90
Noninterest expense
Compensation and benefits	19			16			53			49
Other operating expenses	10			11			29			32
Finance Agency	2			2			7			6
Office of Finance	1			2			4			5
Other	—			—			2			—
Total noninterest expense	32			31			95			92
Income before assessments	83			79			237			253
Affordable Housing Program assessments	9			8			24			25
Net income	$	74		$	71		$	213		$	228

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

4

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In millions)

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2014			2013		2014		2013
Net income	$	74		$	71	$	213	$	228
Other comprehensive income:
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities:
Noncredit losses transferred from held-to-maturity securities	—			—		—		(1		)
Net change in fair value on other-than-temporarily impaired available-for-sale securities	(5		)	16		11		141
Reclassification of noncredit portion of impairment losses included in net income	2			—		3		—
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities	(3		)	16		14		140
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities:
Noncredit losses on held-to-maturity securities	—			—		—		(1		)
Reclassification of noncredit portion from held-to-maturity securities to available-for-sale securities	—			—		—		1
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities	—			—		—		—
Other comprehensive income related to pension and postretirement benefit plans	—			—		1		1
Total other comprehensive (loss) income	(3		)	16		15		141
Total comprehensive income	$	71		$	87	$	228	$	369

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

5

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CAPITAL

(Unaudited)

(In millions)

	Capital Stock Class B Putable					Retained Earnings								Accumulated Other Comprehensive Income (Loss)			Total Capital
	Shares		Par Value			Restricted		Unrestricted			Total
Balance, December 31, 2012	49		$	4,898		$	73	$	1,362		$	1,435		$	(58	)	$	6,275
Issuance of capital stock	34		3,427			—		—			—			—			3,427
Repurchase/redemption of capital stock	(40	)	(3,966		)	—		—			—			—			(3,966		)
Net shares reclassified to mandatorily redeemable capital stock	—		(8		)	—		—			—			—			(8		)
Comprehensive income	—		—			46		182			228			141			369
Cash dividends on capital stock	—		—			—		(84		)	(84		)	—			(84		)
Balance, September 30, 2013	43		$	4,351		$	119	$	1,460		$	1,579		$	83		$	6,013
Balance, December 31, 2013	49		$	4,883		$	141	$	1,516		$	1,657		$	112		$	6,652
Issuance of capital stock	34		3,415			—		—			—			—			3,415
Repurchase/redemption of capital stock	(37	)	(3,640		)	—		—			—			—			(3,640		)
Net shares reclassified to mandatorily redeemable capital stock	—		(4		)	—		—			—			—			(4		)
Comprehensive income	—		—			43		170			213			15			228
Cash dividends on capital stock	—		—			—		(131		)	(131		)	—			(131		)
Balance, September 30, 2014	46		$	4,654		$	184	$	1,555		$	1,739		$	127		$	6,520

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

6

FEDERAL HOME LOAN BANK OF ATLANTA

STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

	For the Nine Months Ended September 30,
	2014			2013
Operating activities
Net income	$	213		$	228
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	(87		)	(64		)
(Reversal) provision for credit losses	(4		)	4
Loss due to change in net fair value adjustment on derivative and hedging activities	60			7
Net change in fair value adjustment on trading securities	46			79
Net impairment losses recognized in earnings	3			—
Gain on early extinguishment of debt	(15		)	(2		)
Net change in:
Accrued interest receivable	15			26
Other assets	41			(14		)
Affordable Housing Program payable	(7		)	(13		)
Accrued interest payable	19			38
Other liabilities	(37		)	1
Total adjustments	34			62
Net cash provided by operating activities	247			290
Investing activities
Net change in:
Interest-bearing deposits	224			968
Securities purchased under agreements to resell	(455		)	(750		)
Federal funds sold	(2,300		)	4,240
Trading securities:
Proceeds from maturities	200			251
Available-for-sale securities:
Proceeds from maturities	261			435
Held-to-maturity securities:
Net change in short-term	—			550
Proceeds from maturities of long-term	2,091			2,897
Purchases of long-term	(3,022		)	(6,042		)
Advances:
Proceeds from principal collected	131,994			127,399
Made	(131,197		)	(119,605		)
Mortgage loans:
Proceeds from principal collected	119			228
Proceeds from sale of held for sale	—			18
Proceeds from sale of foreclosed assets	19			19
Purchase of premise, equipment, and software	(3		)	(2		)
Net cash (used in) provided by investing activities	(2,069		)	10,606

7

FEDERAL HOME LOAN BANK OF ATLANTA STATEMENTS OF CASH FLOWS—(Continued) (Unaudited) (In millions)
	For the Nine Months Ended September 30,
	2014			2013
Financing activities
Net change in deposits	(491		)	(199		)
Net payments on derivatives containing a financing element	(72		)	(121		)
Proceeds from issuance of consolidated obligations:
Discount notes	353,473			197,307
Bonds	64,255			62,917
Payments for debt issuance costs	(7		)	(6		)
Payments for maturing and retiring consolidated obligations:
Discount notes	(359,620		)	(212,758		)
Bonds	(55,339		)	(57,996		)
Proceeds from issuance of capital stock	3,415			3,427
Payments for repurchase/redemption of capital stock	(3,640		)	(3,966		)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(9		)	(24		)
Cash dividends paid	(131		)	(84		)
Net cash provided by (used in) financing activities	1,834			(11,503		)
Net increase (decrease) in cash and due from banks	12			(607		)
Cash and due from banks at beginning of the period	4,374			4,083
Cash and due from banks at end of the period	$	4,386		$	3,476
Supplemental disclosures of cash flow information:
Cash paid for:
Interest	$	261		$	327
Affordable Housing Program assessments, net	$	31		$	34
Noncash investing and financing activities:
Net shares reclassified to mandatorily redeemable capital stock	$	4		$	8
Held-to-maturity securities acquired with accrued liabilities	$	282		$	41
Transfer of held-to-maturity securities to available-for-sale securities	$	—		$	11
Transfers of mortgage loans to real estate owned	$	15		$	23

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

8

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Note 1—Basis of Presentation

The accompanying unaudited interim financial statements of the Federal Home Loan Bank of Atlanta (Bank) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Actual results could be different from these estimates. The foregoing interim financial statements are unaudited; however, in the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods, have been included. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending December 31, 2014, or for other interim periods. The unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2013, which are contained in the Bank’s 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2014 (Form 10-K).

The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting arrangements or by operation of law. Additional information regarding derivative instruments is provided in Note 13—Derivatives and Hedging Activities to the Bank’s interim financial statements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented.

During the three-month period ended March 31, 2014, the Bank made certain enhancements to its allowance for credit loss calculation related to the Bank’s conventional single-family residential mortgage loan portfolio.  The allowance for conventional single-family residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups.  For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics.  For loans that are more than 60 days past due, the allowance is determined using an automated valuation model.  Inherent in the Bank’s evaluation of loan performance is an analysis of various credit enhancements at the individual master commitment level to determine the credit enhancement available to recover losses on conventional single-family residential mortgage loans under each individual master commitment. 

Additionally, during the three-month period ended March 31, 2014, the Bank began to classify as a loss and charge-off the portion of outstanding conventional single-family residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements, once the loans are 180 days delinquent. These changes did not have a material effect on the Bank's financial condition or results of operations.

A description of all of the Bank’s significant accounting policies is included in Note 2—Summary of Significant Accounting Policies to the 2013 audited financial statements contained in the Bank’s Form 10-K. There have been no material changes to these policies as of September 30, 2014.

Revision

During the three-month period ended September 30, 2014, the Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for those periods. After evaluating the quantitative and qualitative aspects of the classification error, the Bank determined that the error was not material to the previously issued Statements of Cash Flows. Accordingly, the classification error has been corrected in this Quarterly Report on Form 10-Q. The correction had no impact on the Bank’s financial condition or results of operations for any period.

9

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table summarizes the revisions made to the Bank’s Statement of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014:

	For the Three Months Ended March 31, 2014						For the Six Months Ended June 30, 2014
	As Originally Reported			As Revised			As Originally Reported			As Revised
Operating activities
Net change in:
Other liabilities	$	(320	)	$	(11	)	$	(322	)	$	(13	)
Total adjustments	(304		)	5			(304		)	5
Net cash (used in) provided by operating activities	(227		)	82			(165		)	144
Investing activities
Held-to-maturity securities:
Purchases of long-term	(1,436		)	(1,745		)	(1,664		)	(1,973		)
Net cash provided by (used in) investing activities	331			22			(9,201		)	(9,510		)

Note 2—Recently Issued and Adopted Accounting Guidance

Recently Issued Accounting Guidance

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In August 2014, the Financial Accounting Standards Board (FASB) issued guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. The guidance becomes effective for the Bank for the interim and annual periods ending after December 15, 2016, and early application is permitted. The adoption of this guidance will have no effect on the Bank's financial condition or results of operations.

Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. In August 2014, the FASB issued amended guidance related to the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2014, and may be adopted using either the modified retrospective transition method or the prospective transition method. The adoption of this guidance is not expected to materially effect the Bank’s financial condition or results of operations.

Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. In June 2014, the FASB issued amended guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings. Specifically, this guidance requires entities to account for (1) repurchase-to-maturity transactions as secured borrowings rather than as sales with forward repurchase agreements; and (2) repurchase agreements executed contemporaneously with the initial transfer of the underlying financial asset with the same counterparty as separate transactions only. In addition, this guidance requires a transferor to disclose additional information about certain transactions, including those in which it retains substantially all of the exposure to the economic returns of the underlying transferred asset over the transaction’s term. This guidance becomes effective for the Bank for the first interim or annual period beginning after December 15, 2014. The changes in accounting for transactions outstanding on the effective date are required to be presented on a cumulative-effect approach. The adoption of this guidance is not expected to materially effect the Bank’s financial condition or results of operations.

Revenue from Contracts with Customers. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for public entities for annual reporting periods beginning after December

10

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

15, 2016, including interim periods within that reporting period, and will be applied retrospectively either to each prior reporting period or with a cumulative effect recognized at the date of initial application. The Bank is in the process of evaluating this guidance, but its effect on the Bank’s financial condition or results of operations is not expected to be material.

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. In January 2014, the FASB issued guidance intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized.The guidance clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This guidance is effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. The adoption of this guidance will result in increased disclosures, but is not expected to materially affect the Bank’s financial condition or results of operations.

Recently Adopted Accounting Guidance

Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.In February 2013, the FASB issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. This guidance requires an entity to measure these obligations as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The Bank adopted this guidance effective January 1, 2014. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations.

Note 3—Trading Securities

Major Security Types. Trading securities were as follows:

	As of September 30, 2014		As of December 31, 2013
Government-sponsored enterprises debt obligations	$	1,366	$	1,601
Another FHLBank’s bond (1)	61		65
State or local housing agency debt obligations	1		1
Total	$	1,428	$	1,667

 ____________

⁽¹⁾  The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.

Net losses on trading securities were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Net losses on trading securities held at period end	$	(19	)	$	(15	)	$	(46	)	$	(77	)
Net losses on trading securities sold or matured during the period	—			—			—			(2		)
Net losses on trading securities	$	(19	)	$	(15	)	$	(46	)	$	(79	)

11

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Note 4—Available-for-sale Securities

The Bank transferred a private-label residential mortgaged-backed security (MBS) from its held-to-maturity portfolio to its available-for-sale portfolio on March 31, 2013. This security represents a private-label residential MBS in the Bank’s held-to-maturity portfolio for which the Bank has recorded an other-than-temporary impairment loss. The Bank believes the other-than-temporary impairment loss constitutes evidence of a significant deterioration in the issuer’s creditworthiness. The Bank has no current plans to sell this security nor is the Bank under any requirement to sell this security.

The following table presents information on the private-label residential MBS transferred. The amounts below represent the value as of the transfer date.

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Estimated Fair Value
Transferred at March 31, 2013	$	12	$	1	$	11

Major Security Types. Private-label residential MBS were as follows:

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	1,934	$	17	$	156	$	—	$	2,073

As of December 31, 2013 $ 2,174 $ 27 $ 152 $ — $ 2,299

The following tables summarize the private-label residential MBS with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 Months					12 Months or More					Total
	Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses
As of September 30, 2014	3	$	135	$	1	9	$	202	$	16	12	$	337	$	17
As of December 31, 2013	6	$	137	$	1	10	$	243	$	26	16	$	380	$	27

A summary of available-for-sale MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized   Cost		Other-than-temporary   Impairment Recognized in  Accumulated Other Comprehensive Income		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair  Value
As of September 30, 2014	$	1,250	$	16	$	103	$	—	$	1,337
As of December 31, 2013	$	1,390	$	26	$	98	$	—	$	1,462

12

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Note 5—Held-to-maturity Securities

Major Security Types. Held-to-maturity securities were as follows:

	As of September 30, 2014								As of December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value
State or local housing agency debt obligations	$	84	$	1	$	—	$	85	$	92	$	1	$	—	$	93
Government-sponsored enterprises debt obligations	4,913		2		16		4,899		3,738		—		24		3,714
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	388		5		—		393		465		7		—		472
Government-sponsored enterprises residential	14,104		126		62		14,168		13,952		109		115		13,946
Private-label residential	1,593		13		10		1,596		1,929		12		20		1,921
Total	$	21,082	$	147	$	88	$	21,141	$	20,176	$	129	$	159	$	20,146

The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	As of September 30, 2014
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	4	$	399	$	1	5	$	1,129	$	15	9	$	1,528	$	16
Mortgage-backed securities:
Government-sponsored enterprises residential	8	298		2		47	3,248		60		55	3,546		62
Private-label residential	15	176		1		31	434		9		46	610		10
Total	27	$	873	$	4	83	$	4,811	$	84	110	$	5,684	$	88

	As of December 31, 2013
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	9	$	1,970	$	24	—	$	—	$	—	9	$	1,970	$	24
Mortgage-backed securities:
Government-sponsored enterprises residential	65	3,932		108		1	147		7		66	4,079		115
Private-label residential	40	817		12		18	241		8		58	1,058		20
Total	114	$	6,719	$	144	19	$	388	$	15	133	$	7,107	$	159

13

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Redemption Terms. The amortized cost and estimated fair value of held-to-maturity securities by contractual maturity are shown below. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

	As of September 30, 2014				As of December 31, 2013
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	568	$	568	$	430	$	430
Due after one year through five years	4,429		4,416		3,400		3,377
Total non-mortgage-backed securities	4,997		4,984		3,830		3,807
Mortgage-backed securities	16,085		16,157		16,346		16,339
Total	$	21,082	$	21,141	$	20,176	$	20,146

A summary of held-to-maturity MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	490	$	3	$	4	$	489
As of December 31, 2013	$	619	$	4	$	8	$	615

Note 6—Other-than-temporary Impairment

The Bank evaluates its individual available-for-sale and held-to-maturity securities holdings in an unrealized loss position for other-than-temporary impairment on a quarterly basis. As part of this process, the Bank considers its intent to sell each debt security and whether it is more likely than not the Bank will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank recognizes the maximum impairment loss in earnings which is equal to the entire difference between the security’s amortized cost basis and its fair value as of the Statements of Condition dates. For securities in an unrealized loss position that meet neither of these conditions, the Bank evaluates whether there is other-than-temporary impairment by performing an analysis to determine if any of these securities will incur a credit loss, which could be up to the difference between the security’s amortized cost basis and its fair value.

Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. The Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation to reduce its risk of loss on such securities. Credit enhancements are defined as the percentage of subordinate tranches, overcollateralization, or excess spread, or the support of monoline insurance, if any, in a security structure that will absorb the losses before the security the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies.

The Bank’s investments in private-label MBS were rated “AAA” (or its equivalent) by a nationally recognized statistical rating organization (NRSRO), such as Moody’s Investors Service (Moody’s) and Standard and Poor’s Ratings Services (S&P), at their purchase dates. The “AAA”-rated securities achieved their ratings through credit enhancement, overcollateralization, and senior-subordinated shifting interest features; the latter results in subordination of payments by junior classes to ensure cash flows to the senior classes. The ratings on all of the Bank’s private-label MBS have changed since their purchase dates.

Non-private-label MBS. The unrealized losses related to U.S. agency MBS are caused by interest rate changes and not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises (GSEs) and the Bank does not expect these securities to be settled at a price less than their amortized cost basis. In addition, the Bank does not

14

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of September 30, 2014.

Private-label MBS. To assess whether the entire amortized cost basis of its private-label MBS will be recovered, the Bank performs a cash flow analysis for each of its private-label MBS. In performing the cash flow analysis for each of these securities, the Bank uses two third-party models. The first model considers borrower characteristics and the particular attributes of the loans underlying the Bank’s securities, in conjunction with assumptions about future changes in home prices and interest rates, to project prepayments, defaults, and loss severities. A significant input to the first model is the forecast of future housing price changes for the relevant states and core based statistical areas (CBSAs), which are based upon an assessment of the individual housing markets. The term CBSA refers collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget; as currently defined, a CBSA must contain at least one urban area of 10,000 or more people. The Bank’s housing price forecast as of September 30, 2014 included a short-term housing price forecast with projected changes ranging from a decrease of three percent to an increase of nine percent over the 12 month period beginning July 1, 2014. For the vast majority of markets, the projected short-term housing price changes range from zero percent to an increase of six percent. Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data.

The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model that allocates the projected loan level cash flows and losses to the various security classes in the securitization structure in accordance with its prescribed cash flow and loss allocation rules. The model classifies securities based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination.

At each quarter end, the Bank compares the present value of the cash flows (discounted at the securities' effective yield) expected to be collected with respect to its private-label MBS to the amortized cost basis of the security to determine whether a credit loss exists. For the Bank’s variable rate and hybrid private-label MBS, the Bank uses a forward interest rate curve to project the future estimated cash flows. The Bank then uses the effective interest rate for the security prior to impairment for determining the present value of the future estimated cash flows. For securities previously identified as other-than-temporarily impaired, the Bank updates its estimate of future estimated cash flows on a quarterly basis.

The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended September 30, 2014, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rate	Default Rates	Loss Severities	Current Credit Enhancement
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
Prime:
2005	15.79	7.96	32.82	0.16
Alt-A:
2007	13.49	26.94	40.27	0.00

15

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	559		$	584		$	574		$	586
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	2			—			3			—
Increase in cash flows expected to be collected, recognized over the remaining life of the securities	(9		)	(4		)	(25		)	(6		)
Balance, end of period	$	552		$	580		$	552		$	580

Certain other private-label MBS that have not been designated as other-than-temporarily impaired have experienced unrealized losses and decreases in fair value due to interest rate volatility, illiquidity in the marketplace, and general disruption in the U.S. mortgage markets. These declines in fair value are considered temporary as the Bank expects to recover the amortized cost basis of the securities, the Bank does not intend to sell these securities, and it is not more likely than not that the Bank will be required to sell these securities before the anticipated recovery of the securities’ remaining amortized cost basis, which may be at maturity. This assessment is based on the fact that the Bank has sufficient capital and liquidity to operate its business and has no need to sell these securities, nor has the Bank entered into any contractual constraints that would require the Bank to sell these securities.

Note 7—Advances

Redemption Terms. The Bank had advances outstanding, as summarized below.

	As of September 30, 2014			As of December 31, 2013
Overdrawn demand deposit accounts	$	—		$	2
Due in one year or less	47,104			51,331
Due after one year through two years	11,049			5,366
Due after two years through three years	9,554			6,136
Due after three years through four years	6,241			8,495
Due after four years through five years	2,868			5,088
Due after five years	10,268			11,464
Total par value	87,084			87,882
Discount on AHP (1) advances	(7		)	(8		)
Discount on EDGE (2) advances	(6		)	(7		)
Hedging adjustments	1,560			1,726
Deferred commitment fees	(4		)	(5		)
Total	$	88,627		$	89,588

___________

⁽¹⁾ The Affordable Housing Program

⁽²⁾ The Economic Development and Growth Enhancement program

16

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date:

	As of September 30, 2014		As of December 31, 2013
Overdrawn demand deposit accounts	$	—	$	2
Due or convertible in one year or less	50,223		54,522
Due or convertible after one year through two years	10,886		5,414
Due or convertible after two years through three years	8,203		5,867
Due or convertible after three years through four years	4,872		6,643
Due or convertible after four years through five years	2,787		4,168
Due or convertible after five years	10,113		11,266
Total par value	$	87,084	$	87,882

Interest-rate Payment Terms. The following table details interest-rate payment terms for advances:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate:
Due in one year or less	$	34,599	$	46,343
Due after one year	29,691		28,535
Total fixed-rate	64,290		74,878
Variable-rate:
Due in one year or less	12,505		4,990
Due after one year	10,289		8,014
Total variable-rate	22,794		13,004
Total par value	$	87,084	$	87,882

Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, thrifts, and credit unions and further is concentrated in certain larger borrowing relationships. As of September 30, 2014 and December 31, 2013, the concentration of the Bank’s advances was $62,761 and $65,472, respectively, to 10 member institutions, representing 72.1 percent and 74.5 percent, respectively, of total advances outstanding.

Based on the collateral pledged as security for advances, the Bank's credit analysis of members’ financial condition, and prior repayment history, no allowance for credit losses on advances was deemed necessary by the Bank as of September 30, 2014 and December 31, 2013. No advance was past due as of September 30, 2014 and December 31, 2013.

Note 8—Mortgage Loans Held for Portfolio

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase:

	As of September 30, 2014			As of December 31, 2013
Fixed-rate medium-term (1)single-family residential mortgage loans	$	113		$	150
Fixed-rate long-term single-family residential mortgage loans	680			781
Total unpaid principal balance	793			931
Premiums	3			3
Discounts	(4		)	(5		)
Total	$	792		$	929

____________

⁽¹⁾Medium-term is defined as a term of 15 years or less.

17

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table details the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type:

	As of September 30, 2014		As of December 31, 2013
Conventional loans	$	737	$	864
Government-guaranteed or insured loans	56		67
Total unpaid principal balance	$	793	$	931

For information related to the Bank's credit risk on mortgage loans and allowance for credit losses, see Note 9—Allowance for Credit Losses to the Bank’s interim financial statements.

Note 9—Allowance for Credit Losses

The activity in the allowance for credit losses was as follows:

	For the Three Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	6		$	11		$	1		$	12
(Reversal) provision for credit losses	(2		)	1			—			1
Charge-offs	—			(1		)	—			(1		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

	For the Nine Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	11		$	10		$	1		$	11
(Reversal) provision for credit losses	(4		)	4			—			4
Charge-offs	(3		)	(3		)	—			(3		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

18

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The recorded investment in conventional single-family residential mortgage loans by impairment methodology was as follows:

	As of September 30, 2014		As of December 31, 2013
Allowance for credit losses:
Individually evaluated for impairment	$	1	$	2
Collectively evaluated for impairment	3		9
Total allowance for credit losses	$	4	$	11
Recorded investment:
Individually evaluated for impairment	$	15	$	15
Collectively evaluated for impairment	724		851
Total recorded investment	$	739	$	866

Key credit quality indicators for mortgage loans include the migration of past due loans, nonaccrual loans, loans in process of foreclosure, and impaired loans. The tables below summarize the Bank's recorded investment in mortgage loans by these key credit quality indicators:

	As of September 30, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	21		$	6		$	27
Past due 60-89 days	7			2			9
Past due 90 days or more	35			5			40
Total past due mortgage loans	63			13			76
Total current mortgage loans	676			43			719
Total mortgage loans (1)	$	739		$	56		$	795
Other delinquency statistics:
In process of foreclosure (2)	$	21		$	2		$	23
Seriously delinquent rate (3)	4.65		%	9.27		%	4.98		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	34		$	—		$	34

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

19

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	As of December 31, 2013
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	30		$	7		$	37
Past due 60-89 days	9			3			12
Past due 90 days or more	51			9			60
Total past due mortgage loans	90			19			109
Total current mortgage loans	776			48			824
Total mortgage loans (1)	$	866		$	67		$	933
Other delinquency statistics:
In process of foreclosure (2)	$	38		$	3		$	41
Seriously delinquent rate (3)	5.90		%	13.13		%	6.42		%
Past due 90 days or more and still accruing interest (4)	$	—		$	9		$	9
Loans on nonaccrual status (5)	$	51		$	—		$	51

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

A troubled debt restructuring is considered to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower's financial difficulties and that concession would not have been considered otherwise. The Bank has granted a concession when it does not expect to collect all amounts due under the original contract as a result of the restructuring. The Bank's conventional single-family residential mortgage loan troubled debt restructurings primarily involve modifying the borrower's monthly payment for a period of up to 36 months to achieve a target housing expense ratio of 31.0 percent of their qualifying monthly income. The outstanding principal balance is first re-amortized to reflect a principal and interest payment for a term not to exceed 40 years. This would result in a balloon payment at the original maturity date of the loan as the maturity date and number of remaining monthly payments are not adjusted. If the 31.0 percent housing expense ratio is not achieved through re-amortization, the interest rate is reduced in 0.125 percent increments below the original note rate, to a floor rate of 3.00 percent, resulting in reduced principal and interest payments, for the temporary payment modification period of up to 36 months, until the target 31.0 percent housing expense ratio is met. A conventional single-family residential mortgage loan in which the borrower filed for Chapter 7 bankruptcy and the bankruptcy court discharged the borrower's obligation to the Bank is considered a troubled debt restructuring.

The table below presents the Bank's recorded investment balance in troubled debt restructured loans as of September 30, 2014 and December 31, 2013:

	Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	4	$	15

Due to the minimal change in terms of modified loans (i.e., no write-offs of principal), the Bank's pre-modification recorded investment was not materially different than the post-modification recorded investment in troubled debt restructuring during the three and nine months ended September 30, 2014 and 2013.

20

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table shows troubled debt restructurings from the previous 12 months that subsequently defaulted during the periods presented. A payment default on a troubled debt restructuring is considered to have occurred if the contractually due principal or interest is 60 days or more past due at any time during the periods presented.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
Conventional single-family residential loans (1)	$	—	$	—	$	2	$	1

____________

⁽¹⁾ For purposes of this disclosure, only the initial default was included; however, a loan can experience another payment default in a subsequent period.

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for credit losses for impaired loans as of September 30, 2014 and December 31, 2013, and the average recorded investment on these loans during the three and nine months ended September 30, 2014 and 2013. Related interest income recognized on these loans during the three and nine months ended September 30, 2014 and 2013 was less than $1.

	As of September 30, 2014						As of December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance
Conventional single-family residential loans	$	8	$	8	$	—	$	—	$	—	$	—
With an allowance
Conventional single-family residential loans	7		7		1		15		15		2
Total	$	15	$	15	$	1	$	15	$	15	$	2

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
With no related allowance
Conventional single-family residential loans:
Average recorded investment	$	8	$	—	$	9	$	—
With an allowance
Conventional single-family residential loans:
Average recorded investment	7		13		7		13

Note 10—Consolidated Obligations

Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the 12 Federal Home Loan Banks (FHLBanks) and are backed only by the financial resources of the FHLBanks. The Federal Home Loan Banks Office of Finance (Office of Finance) tracks the amount of debt issued on behalf of each FHLBank. In addition, the Bank separately tracks and records as a liability its specific portion of consolidated obligations for which it is the primary obligor.

21

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate	$	76,029	$	59,885
Step up/down	6,776		7,617
Simple variable-rate	6,575		13,005
Variable-rate capped floater	35		45
Fixed-rate that converts to variable-rate	10		—
Total par value	$	89,425	$	80,552

Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity:

	As of September 30, 2014				As of December 31, 2013
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	50,245		0.20	$	41,725		0.50
Due after one year through two years	14,529			1.22	9,485			0.67
Due after two years through three years	9,418			2.21	7,503			2.21
Due after three years through four years	5,197			2.10	6,355			2.81
Due after four years through five years	3,116			1.53	5,150			1.67
Due after five years	6,920			2.02	10,334			1.92
Total par value	89,425			0.87	80,552			1.13
Premiums	75				82
Discounts	(23		)		(24		)
Hedging adjustments	193				118
Total	$	89,670			$	80,728

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature:

	As of September 30, 2014		As of December 31, 2013
Noncallable	$	66,566	$	56,569
Callable	22,859		23,983
Total par value	$	89,425	$	80,552

22

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date:

	As of September 30, 2014		As of December 31, 2013
Due or callable in one year or less	$	67,589	$	59,458
Due or callable after one year through two years	10,399		7,795
Due or callable after two years through three years	7,138		4,491
Due or callable after three years through four years	2,696		6,095
Due or callable after four years through five years	871		1,571
Due or callable after five years	732		1,142
Total par value	$	89,425	$	80,552

Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds. Consolidated obligation discount notes are consolidated obligations with original contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature.

The Bank’s participation in consolidated obligation discount notes was as follows:

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of September 30, 2014	$	26,055	$	26,062	0.09
As of December 31, 2013	$	32,202	$	32,208	0.11

Note 11—Capital and Mandatorily Redeemable Capital Stock

Capital. The Bank was in compliance with the Federal Housing Finance Agency's (Finance Agency) regulatory capital rules and requirements as shown in the following table:

	As of September 30, 2014						As of December 31, 2013
	Required			Actual			Required			Actual
Risk based capital	$	1,789		$	6,412		$	2,246		$	6,563
Total capital-to-assets ratio	4.00		%	5.15		%	4.00		%	5.37		%
Total regulatory capital (1)	$	4,977		$	6,412		$	4,893		$	6,563
Leverage ratio	5.00		%	7.73		%	5.00		%	8.05		%
Leverage capital	$	6,222		$	9,618		$	6,116		$	9,845

___________

⁽¹⁾  Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $19and $24 in mandatorily redeemable capital stock as of September 30, 2014 and December 31, 2013, respectively.

23

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Mandatorily Redeemable Capital Stock. The following table provides the activity in mandatorily redeemable capital stock:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	21		$	25		$	24		$	40
Capital stock subject to mandatory redemption reclassified from equity during the period due to:
Attainment of non-member status	3			1			5			8
Repurchase/redemption of mandatorily redeemable capital stock	(5		)	(2		)	(9		)	(24		)
Capital stock previously subject to mandatory redemption reclassified to capital stock	—			—			(1		)	—
Balance, end of period	$	19		$	24		$	19		$	24

The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date.

	As of September 30, 2014		As of December 31, 2013
Due in one year or less	$	4	$	5
Due after one year through two years	8		9
Due after two years through three years	6		8
Due after three years through four years	—		1
Due after four years through five years	1		—
Due after five years	—		1
Total	$	19	$	24

Note 12—Accumulated Other Comprehensive Income

Components comprising accumulated other comprehensive income were as follows:

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities		Total  Accumulated Other Comprehensive Income
Balance, June 30, 2013	$	(16	)	$	83		$	—	$	67
Other comprehensive income before reclassifications:
Net change in fair value	—			16			—		16
Balance, September 30, 2013	$	(16	)	$	99		$	—	$	83
Balance, June 30, 2014	$	(12	)	$	142		$	—	$	130
Other comprehensive income before reclassifications:
Net change in fair value	—			(5		)	—		(5		)
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			2			—		2
Net current period other comprehensive loss	—			(3		)	—		(3		)
Balance, September 30, 2014	$	(12	)	$	139		$	—	$	127

24

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2012	$	(17	)	$	(41	)	$	—		$	(58	)
Other comprehensive income (loss) before reclassifications:
Noncredit other-than-temporary impairment losses	—			—			(1		)	(1		)
Noncredit other-than-temporary impairment losses transferred	—			(1		)	1			—
Net change in fair value	—			141			—			141
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			140			—			141
Balance, September 30, 2013	$	(16	)	$	99		$	—		$	83
Balance, December 31, 2013	$	(13	)	$	125		$	—		$	112
Other comprehensive income before reclassifications:
Net change in fair value	—			11			—			11
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			3			—			3
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			14			—			15
Balance, September 30, 2014	$	(12	)	$	139		$	—		$	127

____________

⁽¹⁾  Included in Compensation and benefits on the Statements of Income.

Note 13—Derivatives and Hedging Activities

Nature of Business Activity

The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and its funding sources that finance these assets. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of interest-earning assets and funding sources. The Bank enters into derivatives to manage the interest-rate risk exposure inherent in its otherwise unhedged assets and funding sources, to achieve the Bank's risk management objectives, and to act as an intermediary between its members and counterparties. For additional information on the Bank’s derivatives and hedging activities, see Note 18—Derivatives and Hedging Activities to the 2013 audited financial statements contained in the Bank’s Form 10-K.

The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. Over-the-counter derivative transactions may be either executed with a counterparty (bilateral derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent), with a Derivative Clearing Organization (cleared derivatives).

Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. The Clearinghouse notifies the clearing agent of the required initial and variation margin and the clearing agent notifies the Bank of the required initial and variation margin. The Bank is not a derivative dealer and does not trade derivatives for short-term profit.

Financial Statement Effect and Additional Financial Information

Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged

25

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged.

The following table summarizes the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of September 30, 2014								As of December 31, 2013
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	97,053	$	549		$	(1,897	)	$	84,740	$	800		$	(2,336	)
Total derivatives in hedging relationships	97,053		549			(1,897		)	84,740		800			(2,336		)
Derivatives not designated as hedging instruments:
Interest rate swaps	9,961		13			(199		)	4,414		14			(309		)
Interest rate swaptions	40		—			—			40		1			(1		)
Interest rate caps or floors	16,500		24			(16		)	12,500		44			(28		)
Total derivatives not designated as hedging instruments	26,501		37			(215		)	16,954		59			(338		)
Total derivatives before netting and collateral adjustments	$	123,554	586			(2,112		)	$	101,694	859			(2,674		)
Netting adjustments			(404		)	404					(741		)	741
Cash collateral and related accrued interest			(64		)	1,528					(65		)	1,746
Total collateral and netting adjustments (1)			(468		)	1,932					(806		)	2,487
Derivative assets and derivative liabilities			$	118		$	(180	)			$	53		$	(187	)

___________

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

The following tables present the components of net gains on derivatives and hedging activities as presented in the Statements of Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	78		$	39		$	129		$	134
Total net gains related to fair value hedge ineffectiveness	78			39			129			134
Derivatives not designated as hedging instruments:
Interest rate swaps	20			16			45			78
Interest rate caps or floors	(4		)	(1		)	(13		)	3
Net interest settlements	(17		)	(20		)	(53		)	(64		)
Total net (losses) gains related to derivatives not designated as hedging instruments	(1		)	(5		)	(21		)	17
Net gains on derivatives and hedging activities	$	77		$	34		$	108		$	151

26

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income:

	For the Three Months Ended September 30,
	2014											2013
Hedged Item Type	Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	319		$	(243	)	$	76	$	(229	)	$	114	$	(68	)	$	46		$	(259	)
Consolidated obligations bonds	(134		)	136			2		118			10		(17		)	(7		)	150
Total	$	185		$	(107	)	$	78	$	(111	)	$	124	$	(85	)	$	39		$	(109	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

	For the Nine Months Ended September 30,
	2014										2013
Hedged Item Type	Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	80	$	47		$	127	$	(671	)	$	1,486		$	(1,333	)	$	153		$	(797	)
Consolidated obligations bonds	80		(78		)	2		383			(700		)	681			(19		)	469
Total	$	160	$	(31	)	$	129	$	(288	)	$	786		$	(652	)	$	134		$	(328	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

Managing Credit Risk on Derivatives

The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions and manages credit risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. For bilateral derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all bilateral derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement and held by the member institution for the benefit of the Bank.

For cleared derivatives, the Clearinghouse is the Bank's counterparty. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency or similar proceeding involving the Clearinghouse or the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

The Bank presents derivative instruments, related cash collateral, including initial and variation margin, received or pledged and associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements.

27

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. Non-cash collateral received from or pledged to counterparties not offset was less than $1 and $0 as of September 30, 2014 and December 31, 2013, respectively.

	As of September 30, 2014						As of December 31, 2013
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	532		$	(1,825	)	$	820		$	(2,545	)
Cleared derivatives	54			(287		)	39			(129		)
Total gross recognized amount	586			(2,112		)	859			(2,674		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(532		)	1,645			(818		)	2,358
Cleared derivatives	64			287			12			129
Total gross amounts of netting adjustments and cash collateral	(468		)	1,932			(806		)	2,487
Derivative assets and derivative liabilities: (1)
Bilateral derivatives	—			(180		)	2			(187		)
Cleared derivatives	118			—			51			—
Total derivative assets and total derivative liabilities	$	118		$	(180	)	$	53		$	(187	)

____________ 

⁽¹⁾ The Bank had net credit exposure of $118 and $47 as of September 30, 2014 and December 31, 2013, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.

Certain of the Bank’s bilateral derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank’s credit rating. If the Bank’s credit rating is lowered by a NRSRO, the Bank may be required to deliver additional collateral on bilateral derivative instruments in net liability positions. The aggregate fair value of all bilateral derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) as of September 30, 2014 was $1,357 for which the Bank has posted collateral with a fair value of $1,180 in the normal course of business. If the Bank’s credit ratings had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver an additional $114 of collateral at fair value to its derivative counterparties as of September 30, 2014.

Note 14—Estimated Fair Values

The Bank records trading securities, available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is a market-based measurement and is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the assets or owes the liability. In general, the transaction price will equal the exit price and, therefore, represent the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction and the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market.

A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. The fair value hierarchy defines fair value in terms of a price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability at the measurement date (an exit price). In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy.

Outlined below is the application of the “fair value hierarchy” to the Bank's financial assets and financial liabilities that are carried at fair value.

28

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. As of September 30, 2014 and December 31, 2013, the Bank carried grantor trust assets at fair value hierarchy Level 1.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. As of September 30, 2014 and December 31, 2013, the Bank carried trading securities and derivatives at fair value hierarchy Level 2.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by little or no market activity and reflect the entity's own assumptions. As of September 30, 2014 and December 31, 2013, the Bank carried available-for-sale securities at fair value hierarchy Level 3.

The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out at fair value as of the beginning of the quarter in which the changes occur. There were no such transfers during the periods presented.

Fair Value on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition:

	As of September 30, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,366		$	—	$	—		$	1,366
Another FHLBank’s bond	—		61			—		—			61
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,428			—		—			1,428
Available-for-sale securities:
Private-label residential MBS	—		—			2,073		—			2,073
Derivative assets:
Interest-rate related	—		586			—		(468		)	118
Grantor trust (included in Other assets)	24		—			—		—			24
Total assets at fair value	$	24	$	2,014		$	2,073	$	(468	)	$	3,643
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)
Total liabilities at fair value	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

29

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	As of December 31, 2013
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,601		$	—	$	—		$	1,601
Another FHLBank’s bond	—		65			—		—			65
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,667			—		—			1,667
Available-for-sale securities:
Private-label residential MBS	—		—			2,299		—			2,299
Derivative assets:
Interest-rate related	—		859			—		(806		)	53
Grantor trust (included in Other assets)	21		—			—		—			21
Total assets at fair value	$	21	$	2,526		$	2,299	$	(806	)	$	4,040
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)
Total liabilities at fair value	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

The following table presents a reconciliation of available-for-sale securities that are measured at fair value using significant unobservable inputs (Level 3):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	2,155		$	2,536		$	2,299		$	2,676
Transfer of private-label MBS from held-to-maturity to available-for-sale	—			—			—			11
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(2		)	—			(3		)	—
Included in other comprehensive income (2)	(3		)	16			14			141
Accretion of credit losses in net interest income	8			4			24			5
Settlements	(85		)	(158		)	(261		)	(435		)
Balance, end of period	$	2,073		$	2,398		$	2,073		$	2,398

____________ 

⁽¹⁾  Related to available-for-sale securities held at period end.

⁽²⁾  This amount is included in other comprehensive income within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income.

Fair Value on a Nonrecurring Basis. The Bank measures certain impaired mortgage loans held for portfolio and real estate owned at Level 3 fair value on a nonrecurring basis. Impaired mortgage loans are subject to being measured at fair value as a result of becoming impaired during the reported period. Real estate owned is measured at fair value when its fair value, less cost to sell, is lower than its carrying value as of the Statements of Condition date. The Bank estimates fair value based on (1) a property appraisal provided by the loan servicer; (2) a broker price opinion provided by the loan servicer; or (3) a current property value provided by a third party vendor, adjusted for estimated selling costs.

30

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table presents the Bank's assets that are measured at fair value on a nonrecurring basis on its Statements of Condition only as of the dates shown:

	As of September 30, 2014		As of December 31, 2013
Real estate owned	$	6	$	9

Described below are the Bank's fair value measurement methodologies for financial assets and liabilities measured or disclosed at fair value.

Cash and Due from Banks. The estimated fair value approximates the recorded carrying value.

Interest-bearing Deposits. The estimated fair value is determined by calculating the present value of the expected future cash flows from the deposits and reducing this amount for accrued interest receivable. The discount rate used in these calculations is the rate for deposits with similar terms and represents market observable rates.

Securities purchased under agreements to resell. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for securities with similar terms and represent market observable rates.

Federal Funds Sold. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for federal funds with similar terms and represent market observable rates.

Investment Securities. The Bank obtains prices from four designated third-party pricing vendors when available to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank.

The Bank periodically conducts reviews of the four pricing vendors to confirm and further augment its understanding of the vendors' pricing processes, methodologies, and control procedures for agency and private-label MBS.

The Bank's valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security.

All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “default” price. All prices that are outside the threshold (“outliers”) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. Alternatively, if the analysis does not provide evidence that an outlier is in fact more representative of the fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security.

If all prices received for a security are outside the tolerance threshold level of the median price, then there is no default price, and the final price is determined by an evaluation of all outlier prices as described above.

As of September 30, 2014 and December 31, 2013, four vendor prices were received for a majority of the Bank's investment securities holdings and the final prices for those securities were computed by averaging the prices received. Based on the Bank's review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or, in those instances in which there were outliers or significant yield variances, the Bank's additional analyses), the Bank believes its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value

31

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

hierarchy. Based on the lack of significant market activity for private-label MBS, the fair value measurement for those securities were classified as Level 3 within the fair value hierarchy as of September 30, 2014 and December 31, 2013.

Mortgage Loans Held for Portfolio. The estimated fair values for mortgage loans are determined based on quoted market prices of similar mortgage loans available in the pass-through securities market. These prices, however, can change rapidly based upon market conditions and are highly dependent upon the underlying prepayment assumptions. The estimated fair values of impaired mortgage loans are based on the current property value, as provided by a third party vendor, adjusted for estimated selling costs.

Advances. The Bank determines the estimated fair values of advances by calculating the present value of expected future cash flows from the advances and excluding the amount of the accrued interest receivable. The discount rates used in these calculations are the replacement advance rates based on the market observable London Interbank Offered Rate (LIBOR) curve for advances with similar terms as of September 30, 2014 and December 31, 2013, respectively. In accordance with the advances regulations, advances with a maturity or repricing period greater than six months require a prepayment fee sufficient to make the Bank financially indifferent to the borrower's decision to prepay the advances, thereby removing prepayment risk from the fair value calculation. The Bank did not adjust the fair value measurement of advances for creditworthiness because advances were fully collateralized (see Note 7—Advances to the Bank’s interim financial statements for additional information).

Accrued Interest Receivable and Payable. The estimated fair value approximates the recorded carrying value.

Derivative Assets and Liabilities. The Bank calculates the fair value of derivatives using a present value of future cash flows discounted by a market observable rate. The Bank used Overnight Index Swap Rate to discount future cash flows for collateralized derivatives.

Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank's derivatives obviate the need to provide such a credit valuation adjustment. The fair values of the Bank's derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis. The Bank and each bilateral derivative counterparty have collateral thresholds that take into account both the Bank's and the counterparty's credit ratings. As a result of these practices and agreements, the Bank has concluded that the impact of the credit differential between the Bank and its derivative counterparties was mitigated to an immaterial level and no further adjustments were deemed necessary to the recorded fair values of derivative assets and liabilities on the Statements of Condition as of September 30, 2014 and December 31, 2013.

Grantor Trust Assets. Grantor trust assets, included as a component of Other assets, are carried at estimated fair value based on quoted market prices.

Interest-bearing Deposits. The Bank determines estimated fair values of Bank deposits by calculating the present value of expected future cash flows from the deposits and reducing this amount for accrued interest payable. The discount rate used in these calculations is based on LIBOR.

Consolidated Obligations. The Bank calculates the fair value of consolidated obligation bonds and discount notes by using the present value of future cash flows using a cost of funds as the discount rate. The cost of funds discount curves are based primarily on the market observable LIBOR and to some extent on the Office of Finance cost of funds curve, which also is market observable.

Mandatorily Redeemable Capital Stock. The fair value of mandatorily redeemable capital stock is par value, including estimated dividends earned at the time of reclassification from capital to liabilities, until such amount is paid. Capital stock can be acquired by members only at par value and redeemed by the Bank at par value. Capital stock is not traded and no market mechanism exists for the exchange of capital stock outside the cooperative structure.

The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the

32

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Bank as of September 30, 2014 and December 31, 2013. Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology.

For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions, although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets versus liabilities.

The carrying values and estimated fair values of the Bank’s financial instruments were as follows:

	As of September 30, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,386		$	4,386		$	4,386		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	455			455			—			455			—		—
Federal funds sold	4,095			4,095			—			4,095			—		—
Trading securities	1,428			1,428			—			1,428			—		—
Available-for-sale securities	2,073			2,073			—			—			2,073		—
Held-to-maturity securities	21,082			21,141			—			19,545			1,596		—
Advances	88,627			88,699			—			88,699			—		—
Mortgage loans held for portfolio, net	788			871			—			871			—		—
Accrued interest receivable	184			184			—			184			—		—
Derivative assets	118			118			—			586			—		(468		)
Grantor trust assets (included in Other assets)	24			24			24			—			—		—
Liabilities:
Interest-bearing deposits	(1,271		)	(1,271		)	—			(1,271		)	—		—
Consolidated obligations, net:
Discount notes	(26,055		)	(26,055		)	—			(26,055		)	—		—
Bonds	(89,670		)	(89,912		)	—			(89,912		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(202		)	(202		)	—			(202		)	—		—
Derivative liabilities	(180		)	(180		)	—			(2,112		)	—		1,932

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

33

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	As of December 31, 2013
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,374		$	4,374		$	4,374		$	—		$	—	$	—
Interest bearing-deposits	1,007			1,007			—			1,007			—		—
Federal funds sold	1,795			1,795			—			1,795			—		—
Trading securities	1,667			1,667			—			1,667			—		—
Available-for-sale securities	2,299			2,299			—			—			2,299		—
Held-to-maturity securities	20,176			20,146			—			18,225			1,921		—
Advances	89,588			89,413			—			89,413			—		—
Mortgage loans held for portfolio, net	918			1,004			—			1,004			—		—
Accrued interest receivable	199			199			—			199			—		—
Derivative assets	53			53			—			859			—		(806		)
Grantor trust assets (included in Other assets)	21			21			21			—			—		—
Liabilities:
Interest-bearing deposits	(1,752		)	(1,752		)	—			(1,752		)	—		—
Consolidated obligations, net:
Discount notes	(32,202		)	(32,203		)	—			(32,203		)	—		—
Bonds	(80,728		)	(80,733		)	—			(80,733		)	—		—
Mandatorily redeemable capital stock	(24		)	(24		)	(24		)	—			—		—
Accrued interest payable	(183		)	(183		)	—			(183		)	—		—
Derivative liabilities	(187		)	(187		)	—			(2,674		)	—		2,487

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

Note 15—Commitments and Contingencies

As described in Note 10–Consolidated Obligations, consolidated obligations are backed only by the financial resources of the 12 FHLBanks. The Finance Agency may at any time require any FHLBank to make principal or interest payments due on any consolidated obligations, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank.

The par value of the FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $701,462 and $654,076 as of September 30, 2014 and December 31, 2013, respectively, exclusive of the Bank’s own outstanding consolidated obligations. The Bank determined that it is not necessary to recognize a liability for the fair value of the Bank’s joint and several liability for all of the consolidated obligations.  As of September 30, 2014, none of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed.  Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks consolidated obligations as of September 30, 2014.

34

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

The following table shows the Bank's outstanding commitments, which represent off-balance sheet obligations:

	As of September 30, 2014						As of December 31, 2013
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	5,437	$	19,172	$	24,609	$	4,785	$	23,004	$	27,789
Commitments to fund additional advances	124		170		294		110		34		144
Unsettled consolidated obligation bonds, at par (2)	472		—		472		171		—		171
Unsettled consolidated obligation discount notes, at par (2)	2,500		—		2,500		467		—		467

____________

⁽¹⁾  Expire within one year includes 17 standby letters of credit for a total of $26 and 14 standby letters of credit for a total of $20 as of September 30, 2014 and December 31, 2013, respectively, that have no stated maturity date and are subject to renewal on an annual basis.

⁽²⁾  Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. As of September 30, 2014 and December 31, 2013, $470 and $145 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled. As of September 30, 2014 and December 31, 2013, $500 and $0 of the Bank's unsettled consolidated obligation discount notes were hedged with associated interest rate swaps that had traded but not yet settled.

The carrying value of the guarantees related to standby letters of credit is recorded in other liabilities and amounted to $97 and $137 as of September 30, 2014 and December 31, 2013, respectively. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on these commitments.

The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that results in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements.

The Bank had no commitments that unconditionally obligate the Bank to purchase closed mortgage loans as of September 30, 2014 and December 31, 2013. Such commitments would be recorded as derivatives at their fair values.

The Bank is subject to legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate, as of the date of the financial statements, that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank’s financial condition or results of operations.

Note 16—Transactions with Members and their Affiliates and with Housing Associates

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members, and certain non-members that own the Bank's capital stock as a result of a merger or acquisition of the Bank's member, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments, to the extent declared by the Bank’s board of directors. All advances are issued to members and eligible “housing associates” under the Federal Home Loan Bank Act of 1932 (FHLBank Act), and mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loan purchases.

Transactions with any member that has an officer or director who also is a director of the Bank are subject to the same Bank policies as transactions with other members, and transactions with members which are entered into in the ordinary course of the Bank’s business are not considered related party transactions subject to disclosure. In August 2013, the Bank sold its multifamily mortgage loan portfolio, with an unpaid principal balance of $18, to a member outside the ordinary course of the Bank’s advances business which resulted in a gain of less than $1.

The Bank defines related parties as each of the other FHLBanks and those members with regulatory capital stock outstandingin excess of 10 percent of the Bank's total regulatory capital stock. Based on this definition, one member institution, Bank of America, National Association, which held 16.0 percent of the Bank’s total regulatory capital stock as of September 30, 2014,

35

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

was considered a related party. Total advances outstanding to Bank of America, National Association were $16,262 and $17,263 as of September 30, 2014 and December 31, 2013, respectively. Total deposits held in the name of Bank of America, National Association wereless than$1as ofSeptember 30, 2014 and December 31, 2013. No mortgage loans or MBS were acquired from Bank of America, National Association during the nine months ended September 30, 2014 and 2013.

Note 17—Subsequent Events

On October 30, 2014, the Bank’s board of directors approved a cash dividend for the third quarter of 2014 in the amount of $51. The Bank paid the third quarter 2014 dividend on November 4, 2014.

36

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

Forward-Looking Information

Some of the statements made in this quarterly report on Form 10-Q may be “forward-looking statements” which include statements with respect to the plans, objectives, expectations, estimates, and future performance of the Bank and involve known and unknown risks, uncertainties, and other factors, many of which may be beyond the Bank’s control and which may cause the Bank’s actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by the forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. The reader can identify these forward-looking statements through the Bank’s use of words such as “may,” “will,” “anticipate,” “hope,” “project,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “could,” “intend,” “seek,” “target,” and other similar words and expressions of the future. Such forward-looking statements include statements regarding any one or more of the following topics:

• the Bank’s business strategy and changes in operations, including, without limitation, product growth and change in product mix;

• future performance, including profitability, developments, or market forecasts;

• forward-looking accounting and financial statement effects; and

• those other factors identified and discussed in the Bank’s public filings with the SEC.

The forward-looking statements may not be realized due to a variety of factors, including, without limitation, those risk factors provided under Item 1A of the Bank’s Form 10-K and those risk factors presented under Item 1A in Part II of this quarterly report on Form 10-Q.

All written or oral statements that are made by or are attributable to the Bank are expressly qualified in their entirety by this cautionary notice. The reader should not place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made. The Bank has no obligation and does not undertake publicly to update, revise, or correct any of the forward-looking statements after the date of this quarterly report, or after the respective dates on which these statements otherwise are made, whether as a result of new information, future events, or otherwise, except as otherwise may be required

by law.

The discussion presented below provides an analysis of the Bank’s financial condition as of September 30, 2014 and December 31, 2013, and results of operations for the third quarter and first nine months of 2014 and 2013. Management’s discussion and analysis should be read in conjunction with the financial statements and accompanying notes presented elsewhere in this report, as well as the Bank’s audited financial statements for the year ended December 31, 2013.

Executive Summary

Financial Condition

As of September 30, 2014, total assets were $124.4 billion, an increase of $2.1 billion, or 1.73 percent, from December 31, 2013. This increase was primarily due to a $3.2 billion, or 11.9 percent, increase in total investments, partially offset by a $961 million, or 1.07 percent, decrease in advances.

As of September 30, 2014, total liabilities were $117.9 billion, an increase of $2.3 billion, or 1.95 percent, from December 31, 2013. This increase was primarily due to a $2.8 billion, or 2.47 percent, increase in consolidated obligations (COs), partially offset by a $481 million, or 27.4 percent, decrease in deposits.

As of September 30, 2014, total capital was $6.5 billion, a decrease of $132 million, or 1.98 percent, from December 31, 2013. This decrease was primarily due to the repurchase/redemption of $3.6 billion in excess capital stock excluding capital stock classified as mandatorily redeemable capital stock, and the payment of $131 million in dividends, partially offset by the issuance of $3.4 billion in capital stock related to new advance activity and the recording of $213 million of net income.

37

Results of Operations

The Bank recorded net income of $74 million for the third quarter of 2014, an increase of $3 million, or 4.13 percent, from net income of $71 million for the third quarter of 2013. Interest income decreased by $62 million offset by a $22 million decrease in interest expense, which resulted in a decrease in net interest income of $40 million for the third quarter of 2014. During the third quarter of 2014, previously restructured advances were prepaid prior to their maturity which resulted in a $48 million gain recorded in net gains on derivatives and hedging activities and a $48 million decrease in net interest income due to accelerated amortization.

The Bank recorded net income of $213 million for the first nine months of 2014, a decrease of $15 million, or 6.67 percent, from net income of $228 million during the same period in 2013. Interest income decreased by $106 million offset by a $75 million decrease in interest expense, which resulted in a decrease in net interest income of $31 million for the first nine months of 2014. For the first nine months of 2014, the Bank recorded a decrease in net gains on derivatives and hedging activities, compared to the same period in 2013, this decrease was due to more stable interest rates during the first nine months of 2014, compared to the same period in 2013. This decrease was partially offset by the prepayment of previously restructured advances prior to their maturity, as previously discussed.

One way in which the Bank analyzes its performance is by comparing its annualized return on equity (ROE) to three-month average LIBOR. The Bank's ROE was 4.45 percent for the third quarter of 2014, compared to 4.50 percent for the third quarter of 2013. ROE decreased for the third quarter of 2014, compared to the third quarter of 2013, primarily as a result of an increase in average total capital during the period which had a greater impact than the increase in net income. ROE spread to three-month average LIBOR decreased to 422 basis points for the third quarter of 2014, compared to 424 basis points for the third quarter of 2013. The decrease in the ROE spread to LIBOR was primarily due to the decrease in ROE.

The Bank's annualized ROE was 4.34 percent for the first nine months of 2014, compared to 4.92 percent during the same period in 2013. ROE decreased for the first nine months of 2014, compared to the same period in 2013, primarily as a result of a decrease in net income, and an increase in average total capital during the period. ROE spread to three-month average LIBOR decreased to 411 basis points for the first nine months of 2014, compared to 464 basis points for the same period in 2013. The decrease in the ROE spread to LIBOR was primarily due to the decrease in ROE.

The Bank's interest rate spread was 13 basis points and 22 basis points for the third quarter and first nine months of 2014, respectively, compared to 26 basis points for the third quarter and the first nine months of 2013.

Business Outlook

The Bank’s business outlook remains largely unchanged from the discussion in the Bank’s Form 10-K. Overall advances remained relatively stable during the third quarter of 2014. Although the Bank continues to see some shift toward slightly longer maturities, overall advances balances are expected to continue fluctuating during 2014, given the large percentage of short-term advances, and members continue to experience high levels of liquidity and slow loan growth. The Bank expects that large member institutions subject to the liquidity coverage ratio rule recently issued by the federal banking agencies may take actions to comply with the rule that could result in changes to demand for advances and letters of credit. The prolonged low interest rate environment continues to place pressure on the Bank's investment portfolio, as higher-yielding investments mature or prepay in an environment with limited attractive reinvestment opportunities.

38

Selected Financial Data

The following table presents a summary of certain financial information for the Bank for the periods indicated (dollars in millions):

	As of and for the Three Months Ended
	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Statements of Condition (at period end)
Total assets	$	124,437		$	128,942		$	119,467		$	122,316		$	112,068
Investments (1)	30,143			30,894			32,206			26,944			28,991
Mortgage loans held for portfolio	792			838			883			929			983
Allowance for credit losses on mortgage loans	(4		)	(6		)	(4		)	(11		)	(11		)
Advances	88,627			95,128			84,166			89,588			78,193
Interest-bearing deposits	1,271			1,432			1,465			1,752			1,890
Consolidated obligations, net:
Discount notes	26,055			30,679			22,801			32,202			16,282
Bonds	89,670			89,438			88,276			80,728			87,139
Total consolidated obligations, net (2)	115,725			120,117			111,077			112,930			103,421
Mandatorily redeemable capital stock	19			21			23			24			24
Affordable Housing Program payable	69			71			76			74			72
Capital stock - putable	4,654			4,906			4,412			4,883			4,351
Retained earnings	1,739			1,708			1,690			1,657			1,579
Accumulated other comprehensive income	127			130			117			112			83
Total capital	6,520			6,744			6,219			6,652			6,013
Statements of Income (for the period ended)
Net interest income	46			92			90			82			86
(Reversal) provision for credit losses	(2		)	2			(4		)	1			1
Net impairment losses recognized in earnings	(2		)	—			(1		)	—			—
Net losses on trading securities	(19		)	(13		)	(14		)	(21		)	(15		)
Net gains on derivatives and hedging activities	77			16			15			53			34
Letters of credit fees	7			6			7			6			4
Other income (3)	4			1			16			38			2
Noninterest expense	32			32			31			35			31
Income before assessments	83			68			86			122			79
Affordable Housing Program assessments	9			6			9			12			8
Net income	74			62			77			110			71
Performance Ratios (%)
Return on equity (4)	4.45			3.81			4.75			6.86			4.50
Return on assets (5)	0.22			0.19			0.25			0.36			0.24
Net interest margin (6)	0.14			0.29			0.29			0.27			0.29
Regulatory capital ratio (at period end) (7)	5.15			5.15			5.13			5.37			5.31
Equity to assets ratio (8)	5.05			5.03			5.24			5.19			5.23
Dividend payout ratio (9)	58.11			71.35			56.88			29.59			40.25

39

____________

⁽¹⁾  Investments consist of interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, and securities classified as trading, available-for-sale, and held-to-maturity.

⁽²⁾  The amounts presented are the Bank’s primary obligations on consolidated obligations outstanding. The par value of the FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was as follows (in millions):

September 30, 2014	$	701,462
June 30, 2014	680,240
March 31, 2013	643,157
December 31, 2013	654,076
September 30, 2013	617,648

⁽³⁾  Other income includes service fees and other. For the periods ended March 31, 2014, December 31, 2013, and September 30, 2013, the amount includes a $15 million, $4 million, and $2 million net gain on early extinguishment of debt, respectively. For the period ended September 30, 2014 and December 31, 2013, amount includes a $4 million and $33 million gain on litigation settlements, net, respectively.

⁽⁴⁾  Calculated as net income divided by average total equity.

⁽⁵⁾  Calculated as net income divided by average total assets.

⁽⁶⁾  Net interest margin is net interest income as a percentage of average earning assets.

⁽⁷⁾  Regulatory capital ratio is regulatory capital stock plus retained earnings as a percentage of total assets at period end.

⁽⁸⁾  Calculated as average equity divided by average total assets.

⁽⁹⁾  Calculated as dividends declared during the period divided by net income during the period.

Financial Condition

The following table presents the distribution of the Bank’s total assets, liabilities, and capital by major class as of the dates indicated (dollars in millions). These items are discussed in more detail below.

	As of September 30, 2014			As of December 31, 2013			Increase (Decrease)
	Amount		Percent of Total	Amount		Percent of Total	Amount			Percent
Advances	$	88,627	71.22	$	89,588	73.24	$	(961	)	(1.07	)
Long-term investments	24,583		19.76	24,142		19.74	441			1.83
Short-term investments	5,560		4.47	2,802		2.29	2,758			98.40
Mortgage loans, net	788		0.63	918		0.75	(130		)	(14.19	)
Other assets	4,879		3.92	4,866		3.98	13			0.28
Total assets	$	124,437	100.00	$	122,316	100.00	$	2,121		1.73
Consolidated obligations, net:
Discount notes	$	26,055	22.10	$	32,202	27.84	$	(6,147	)	(19.09	)
Bonds	89,670		76.04	80,728		69.80	8,942			11.08
Deposits	1,271		1.08	1,752		1.51	(481		)	(27.44	)
Other liabilities	921		0.78	982		0.85	(61		)	(6.33	)
Total liabilities	$	117,917	100.00	$	115,664	100.00	$	2,253		1.95
Capital stock	$	4,654	71.38	$	4,883	73.41	$	(229	)	(4.69	)
Retained earnings	1,739		26.67	1,657		24.90	82			4.95
Accumulated other comprehensive income	127		1.95	112		1.69	15			13.32
Total capital	$	6,520	100.00	$	6,652	100.00	$	(132	)	(1.98	)

Advances

Total advances remained relatively stable as of September 30, 2014 compared to December 31, 2013. As of September 30, 2014, 73.8 percent of the Bank’s advances were fixed-rate, compared to 85.2 percent as of December 31, 2013. However, the Bank often simultaneously enters into derivatives with the issuance of advances to convert the rates on them, in effect, into a short-term variable interest rate, usually based on LIBOR. As of September 30, 2014 and December 31, 2013, 49.1 percent and 41.7 percent, respectively, of the Bank’s fixed-rate advances were swapped and 2.91 percent and 28.2 percent, respectively, of the Bank’s variable-rate advances were swapped. The majority of the Bank’s variable-rate advances were indexed to LIBOR. The Bank also offers variable-rate advances tied to the federal funds rate, prime rate, and constant maturity swap rates.

40

The following table sets forth the par value of outstanding advances by product characteristics (dollars in millions):

	As of September 30, 2014			As of December 31, 2013
	Amount		Percent of Total	Amount		Percent of Total
Fixed rate (1)	$	41,603	47.77	$	49,768	56.63
Adjustable or variable rate indexed	22,334		25.65	12,584		14.32
Hybrid	18,185		20.88	20,333		23.14
Convertible	3,240		3.72	3,510		3.99
Amortizing (2)	1,722		1.98	1,687		1.92
Total par value	$	87,084	100.00	$	87,882	100.00

____________ 

⁽¹⁾  Includes convertible advances whose conversion options have expired.

⁽²⁾  The Bank offers a fixed-rate advance that may be structured with principal amortization in either equal increments or similar to a mortgage.

Refer to Note 7—Advances to the Bank’s interim financial statements for the concentration of the Bank’s advances to its 10 largest borrowing institutions.

Investments

The following table sets forth more detailed information regarding short- and long-term investments held by the Bank (dollars in millions):

					Increase (Decrease)
	As of September 30, 2014		As of December 31, 2013		Amount			Percent
Short-term investments:
Interest-bearing deposits (1)	$	1,010	$	1,007	$	3		0.23
Securities purchased under agreements to resell	455		—		455			100.00
Federal funds sold	4,095		1,795		2,300			128.13
Total short-term investments	5,560		2,802		2,758			98.40
Long-term investments:
State or local housing agency debt obligations	85		93		(8		)	(8.42	)
U.S. government agency debt obligations	6,340		5,404		936			17.30
Mortgage-backed securities:
U.S. government agency securities	388		465		(77		)	(16.58	)
Government-sponsored   enterprises	14,104		13,952		152			1.08
Private-label residential	3,666		4,228		(562		)	(13.27	)
Total mortgage-backed securities	18,158		18,645		(487		)	(2.61	)
Total long-term investments	24,583		24,142		441			1.83
Total investments	$	30,143	$	26,944	$	3,199		11.87

____________

⁽¹⁾  As of September 30, 2014 and December 31, 2013, interest-bearing deposits includes a $1.0 billion business money market account with Branch Banking and Trust Company, one of the Bank’s ten largest borrowers.

The increase in short-term investments from December 31, 2013 to September 30, 2014 was primarily due to an increase in federal funds sold, along with an increase in securities purchased under agreements to resell. The amount held in federal funds sold will vary each day based on the federal funds rates, the Bank’s liquidity requirements as a result of advances demand, and the availability of high quality counterparties in the federal funds market. As of September 30, 2014, the federal funds rate on federal funds sold was at or above the Bank's minimum investment target rate, as determined by the Bank's internal policy, which allowed the Bank to invest its available cash in federal funds sold. The increase in securities purchased under agreements to resell is consistent with the Bank's efforts to reduce its unsecured credit exposure.

41

The Finance Agency limits an FHLBank’s investment in MBS and asset-backed securities by requiring that the total amortized historical costs for these securities classified as held-to-maturity or available-for-sale, and fair value for MBS classified as trading owned by the FHLBank, generally may not exceed 300 percent of the FHLBank’s previous month-end total capital, as defined by regulation, plus its mandatorily redeemable capital stock on the day it purchases the securities. The Bank was in compliance with this regulatory requirement as of September 30, 2014 and December 31, 2013, as these investments amounted to 281 percent and 282 percent of total capital plus mandatorily redeemable capital stock, respectively.

Mortgage Loans Held for Portfolio

The decrease in mortgage loans held for portfolio from December 31, 2013 to September 30, 2014 was primarily due to the maturity and prepayment of these assets during the period. The Bank ceased purchasing new mortgage loans in 2008.

As of September 30, 2014 and December 31, 2013, the Bank’s conventional mortgage loan portfolio was concentrated in the southeastern United States because those members selling loans to the Bank were located primarily in that region. The following table provides the percentage of unpaid principal balance of conventional single-family residential mortgage loans held for portfolio for the five largest state concentrations.

	As of September 30, 2014	As of December 31, 2013
	Percent of Total	Percent of Total
Florida	26.79	27.04
South Carolina	25.16	24.59
Georgia	14.44	14.34
North Carolina	10.54	10.92
Virginia	8.01	7.95
All other	15.06	15.16
Total	100.00	100.00

Consolidated Obligations

The Bank funds its assets primarily through the issuance of consolidated obligation bonds and, to a lesser extent, consolidated obligation discount notes. The decrease in consolidated obligation discount notes and the increase in consolidated obligation bonds from December 31, 2013 to September 30, 2014 are a result of market conditions that favored the issuance of longer term debt during the period. As of September 30, 2014, CO issuances financed 93.0 percent of the $124.4 billion in total assets, remaining relatively stable from the financing ratio of 92.3 percent as of December 31, 2013.

As of September 30, 2014 and December 31, 2013, COs outstanding were primarily fixed rate. However, the Bank often simultaneously enters into derivatives with the issuance of CO bonds to convert the interest rates, in effect, into short-term variable interest rates, usually based on LIBOR. As of September 30, 2014 and December 31, 2013, 86.6 percent and 77.5 percent, respectively, of the Bank’s fixed-rate CO bonds were swapped and 0.53 percent and 0.34 percent, respectively, of the Bank’s variable-rate CO bonds were swapped. As of September 30, 2014, 1.34 percent of the Bank's fixed-rate CO discount notes were swapped. The Bank had no fixed-rate CO discount notes that were swapped to a variable rate as of December 31, 2013.

Deposits

The Bank offers demand and overnight deposit programs to members primarily as a liquidity management service. In addition, a member that services mortgage loans may deposit in the Bank funds collected in connection with the mortgage loans, pending disbursement of those funds to the owners of the mortgage loan. For demand deposits, the Bank pays interest at the overnight rate. Most of these deposits represent member liquidity investments, which members may withdraw on demand. Therefore, the total account balance of the Bank’s deposits may be volatile. Member loan demand, deposit flows, and liquidity management strategies influence the amount and volatility of deposit balances carried with the Bank.

To support its member deposits, the FHLBank Act requires the Bank to have as a reserve an amount equal to or greater than the current deposits received from members. These reserves are required to be invested in obligations of the United States, deposits in eligible banks or trust companies or advances with maturities not exceeding five years. The Bank was in compliance with this depository liquidity requirement as of September 30, 2014.

42

Capital

The decreasein total capital from December 31, 2013 to September 30, 2014 was primarily due to the repurchase/redemption of $3.6 billion in excess capital stock excluding capital stock classified as mandatorily redeemable capital stock, and the payment of $131 million in dividends, partially offset by the issuance of $3.4 billion in capital stock related to new advance activity and $228 million in comprehensive income during the period. Comprehensive income primarily includes $213 million of net income.

The FHLBank Act and Finance Agency regulations specify that each FHLBank must meet certain minimum regulatory capital standards. The Bank was in compliance with these regulatory capital rules and requirements as shown in Note 11—Capital and Mandatorily Redeemable Capital Stock to the Bank's interim financial statements.

Finance Agency regulations establish criteria based on the amount and type of capital held by an FHLBank for four capital classifications as follows:

• Adequately Capitalized - FHLBank meets both risk-based and minimum capital requirements;

• Undercapitalized - FHLBank does not meet one or both of its risk-based or minimum capital requirements;

• Significantly Undercapitalized - FHLBank has less than 75 percent of one or both of its risk-based or minimum capital requirements; and

• Critically Undercapitalized - FHLBank total capital is two percent or less of total assets.

Under the regulations, the Director of the Finance Agency (Director) will make a capital classification for each FHLBank at least quarterly and notify the FHLBank in writing of any proposed action and provide an opportunity for the FHLBank to submit information relevant to such action. The Director is permitted to make discretionary classifications. An FHLBank must provide written notice to the Finance Agency within 10 days of any event or development that has caused or is likely to cause its permanent or total capital to fall below the level required to maintain its most recent capital classification or reclassification. The regulations delineate the types of prompt corrective actions the Director may order in the event an FHLBank is not adequately capitalized, including submission of a capital restoration plan by the FHLBank and restrictions on its dividends, stock redemptions, executive compensation, new business activities, or any other actions the Director determines will ensure safe and sound operations and capital compliance by the FHLBank. On September 23, 2014, the Bank received notification from the Director that, based on June 30, 2014 data, the Bank meets the definition of “adequately capitalized.”

As of September 30, 2014 and December 31, 2013, the Bank had capital stock subject to mandatory redemption from 13 and 17 members and former members, respectively, consisting of B1 membership stock and B2 activity-based capital stock. The Bank is not required to redeem or repurchase such capital stock until the expiration of the five-year redemption period or, with respect to activity-based capital stock, until the later of the expiration of the five-year redemption period or the activity no longer remains outstanding. The Bank, in its discretion, may repurchase excess capital stock subject to certain limitations and thresholds in the Bank's capital plan.

The Bank's capital management plan is discussed in more detail in the Bank's Form 10-K, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Capital.

Results of Operations

The following is a discussion and analysis of the Bank's results of operations for the third quarter and first nine months of 2014 and 2013.

43

Net Income

The following table sets forth the Bank’s significant income items for the third quarter and first nine months of 2014 and 2013, and provides information regarding the changes during the periods (dollars in millions). These items are discussed in more detail below.

	For the Three Months Ended September 30,					Increase (Decrease)					For the Nine Months Ended September 30,					Increase (Decrease)
	2014			2013		Amount			Percent		2014			2013		Amount			Percent
Net interest income	$	46		$	86	$	(40	)	(45.53	)	$	228		$	259	$	(31	)	(11.80	)
(Reversal) provision for credit losses	(2		)	1		(3		)	(196.77	)	(4		)	4		(8		)	(184.72	)
Noninterest income	67			25		42			166.44		100			90		10			10.91
Noninterest expense	32			31		1			6.50		95			92		3			4.69
Affordable Housing Program assessments	9			8		1			4.15		24			25		(1		)	(6.59	)
Net income	$	74		$	71	$	3		4.13		$	213		$	228	$	(15	)	(6.67	)

Net Interest Income

The primary source of the Bank’s earnings is net interest income. Net interest income equals interest earned on assets (including member advances, mortgage loans, MBS held in portfolio, and other investments), less the interest expense incurred on liabilities (including COs, deposits, and other borrowings). Also included in net interest income are miscellaneous related items such as prepayment fees earned and the amortization of debt issuance discounts, concession fees, and certain derivative instruments and hedging activities related adjustments.

The decrease in net interest income during the third quarter and first nine months of 2014, compared to the same periods in 2013, is primarily due to a reduction in yield on the Bank's long-term investments and $48 million of accelerated amortization related to prepayments of previously restructured advances. The accelerated amortization was offset by net gains on derivatives and hedging activities. The decrease in net interest income was partially offset by a reduction in rates on the Bank's long-term debt during the periods.

As discussed above, net interest income includes components of hedging activity. When a hedging relationship is discontinued, the cumulative fair value adjustment on the hedged item will be amortized into interest income or expense over the remaining life of the asset or liability. Also, when hedging relationships qualify for hedge accounting, the interest components of the hedging derivatives will be reflected in interest income or expense. As shown in the table summarizing the net effect of derivatives and hedging activity on the Bank’s results of operations, the impact of hedging on net interest income was a decrease of $203 million and $162 million for the third quarters of 2014 and 2013, respectively, and a decrease of $473 million and $469 million for the first nine months of 2014 and 2013, respectively.

The following table presents spreads between the average yield on total interest-earning assets and the average cost of interest-bearing liabilities for the third quarter and first nine months of 2014 and 2013 (dollars in millions). The interest-rate spread is affected by the inclusion or exclusion of net interest income or expense associated with the Bank's derivatives. For example, as discussed above, if the derivatives qualify for fair-value hedge accounting under GAAP, the interest income or expense associated with the derivatives is included in net interest income and in the calculation of interest-rate spread. If the derivatives do not qualify for fair-value hedge accounting under GAAP, the interest income or expense associated with the derivatives is excluded from net interest income and the calculation of the interest-rate spread and recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities.” Amortization associated with some hedging-related basis adjustments is also reflected in net interest income, which affects interest-rate spread.

44

	For the Three Months Ended September 30,
	2014						2013
	Average  Balance			Interest		Yield/     Rate (%)	Average  Balance			Interest		Yield/     Rate (%)
Assets
Interest-bearing deposits (1)	$	2,693		$	1	0.16	$	2,904		$	1	0.14
Certificates of deposit	—			—		—	225			—		0.18
Securities purchased under agreements to resell	1,987			1		0.06	908			1		0.05
Federal funds sold	8,263			2		0.11	6,385			1		0.09
Long-term investments (2)	23,871			107		1.78	22,625			124		2.16
Advances	92,470			11		0.05	85,190			55		0.26
Mortgage loans (3)	815			12		6.09	1,032			14		5.52
Loans to other FHLBanks	3			—		0.03	2			—		0.70
Total interest-earning assets	130,102			134		0.41	119,271			196		0.65
Allowance for credit losses on mortgage loans	(5		)				(11		)
Other assets	1,496						1,087
Total assets	$	131,593					$	120,347
Liabilities and Capital
Interest-bearing deposits (4)	$	1,502		—		0.01	$	2,588		—		0.01
Short-term debt	31,449			8		0.09	20,393			5		0.09
Long-term debt	89,554			80		0.35	88,231			104		0.47
Other borrowings	21			—		3.72	24			1		2.82
Total interest-bearing liabilities	122,526			88		0.28	111,236			110		0.39
Other liabilities	2,423						2,811
Total capital	6,644						6,300
Total liabilities and capital	$	131,593					$	120,347
Net interest income and net yield on interest-earning assets				$	46	0.14				$	86	0.29
Interest rate spread						0.13						0.26
Average interest-earning assets to interest-bearing liabilities						106.18						107.22

____________ 

⁽¹⁾  Includes amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

⁽²⁾  Includes trading securities at fair value and available-for-sale securities at amortized cost.

⁽³⁾  Nonperforming loans are included in average balances used to determine average rate.

⁽⁴⁾  Includes amounts recognized for the right to return cash collateral received under master netting agreements with derivative counterparties.

45

	For the Nine Months Ended September 30,
	2014						2013
	Average  Balance			Interest		Yield/     Rate (%)	Average  Balance			Interest		Yield/     Rate (%)
Assets
Interest-bearing deposits (1)	$	2,715		$	3	0.15	$	3,319		$	4	0.15
Certificates of deposit	—			—		—	293			—		0.20
Securities purchased under agreements to resell	1,455			1		0.06	914			1		0.08
Federal funds sold	8,143			6		0.10	7,394			7		0.14
Long-term investments (2)	24,117			330		1.83	21,476			365		2.27
Advances	89,900			120		0.18	84,332			180		0.28
Mortgage loans (3)	859			38		5.93	1,120			47		5.63
Loans to other FHLBanks	2			—		0.04	1			—		0.09
Total interest-earning assets	127,191			498		0.52	118,849			604		0.68
Allowance for credit losses on mortgage loans	(6		)				(12		)
Other assets	1,404						1,064
Total assets	$	128,589					$	119,901
Liabilities and Capital
Interest-bearing deposits (4)	$	1,479		—		0.01	$	2,356		—		0.03
Short-term debt	29,835			22		0.10	22,385			19		0.11
Long-term debt	88,209			247		0.37	85,663			325		0.51
Other borrowings	23			1		4.09	31			1		2.38
Total interest-bearing liabilities	119,546			270		0.30	110,435			345		0.42
Other liabilities	2,479						3,263
Total capital	6,564						6,203
Total liabilities and capital	$	128,589					$	119,901
Net interest income and net yield on interest-earning assets				$	228	0.24				$	259	0.29
Interest rate spread						0.22						0.26
Average interest-earning assets to interest-bearing liabilities						106.39						107.62

____________ 

⁽¹⁾  Includes amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

⁽²⁾  Includes trading securities at fair value and available-for-sale securities at amortized cost.

⁽³⁾  Nonperforming loans are included in average balances used to determine average rate.

⁽⁴⁾  Includes amounts recognized for the right to return cash collateral received under master netting agreements with derivative counterparties.

46

Net interest income for the periods presented was affected by changes in average balances (volume change) and changes in average rates (rate change) of interest-earning assets and interest-bearing liabilities. The following table presents the extent to which volume changes and rate changes affected the Bank’s interest income and interest expense (in millions). As noted in the table below, the overall changes in net interest income during the third quarter and first nine months of 2014, compared to the same periods in 2013, were primarily rate related.

	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	2014 vs. 2013									2014 vs. 2013
	Volume (1)			Rate (1)			Increase (Decrease)			Volume (1)			Rate (1)			Increase (Decrease)
Increase (decrease) in interest income:
Interest-bearing deposits	$	—		$	—		$	—		$	(1	)	$	—		$	(1	)
Federal funds sold	1			—			1			1			(2		)	(1		)
Long-term investments	6			(23		)	(17		)	41			(76		)	(35		)
Advances	4			(48		)	(44		)	11			(71		)	(60		)
Mortgage loans	(3		)	1			(2		)	(11		)	2			(9		)
Total	8			(70		)	(62		)	41			(147		)	(106		)
Increase (decrease) in interest expense:
Short-term debt	3			—			3			5			(2		)	3
Long-term debt	2			(26		)	(24		)	9			(87		)	(78		)
Other borrowings	(1		)	—			(1		)	—			—			—
Total	4			(26		)	(22		)	14			(89		)	(75		)
Increase (decrease) in net interest income	$	4		$	(44	)	$	(40	)	$	27		$	(58	)	$	(31	)

____________ 

⁽¹⁾  Volume change is calculated as the change in volume multiplied by the previous rate, while rate change is the change in rate multiplied by the previous volume. The rate/volume change, change in rate multiplied by change in volume, is allocated between volume change and rate change at the ratio each component bears to the absolute value of its total.

Noninterest Income (Loss)

The following table presents the components of noninterest income (loss) (dollars in millions):

	For the Three Months Ended September 30,						Increase (Decrease)					For the Nine Months Ended September 30,						Increase (Decrease)
	2014			2013			Amount			Percent		2014			2013			Amount			Percent
Net impairment losses recognized in earnings	$	(2	)	$	—		$	(2	)	(100.00	)	$	(3	)	$	—		$	(3	)	*
Net losses on trading securities	(19		)	(15		)	(4		)	(16.50	)	(46		)	(79		)	33			42.35
Net gains on derivatives and hedging activities	77			34			43			127.73		108			151			(43		)	(28.71	)
Gain on early extinguishment of debt	—			2			(2		)	(100.00	)	15			2			13			646.09
Letters of credit fees	7			4			3			37.54		20			14			6			40.22
Gain on litigation settlements, net	4			—			4			100.00		4			—			4			100.00
Other	—			—			—			26.13		2			2			—			6.78
Total noninterest income	$	67		$	25		$	42		166.44		$	100		$	90		$	10		10.91

____________ 

* Not meaningful.

The increase in total noninterest income during the third quarter of 2014, compared to the same period in 2013, is primarily due to an increase in net gains on derivatives and hedging activities and gain on litigation settlements on MBS. As previously discussed, previously restructured advances were prepaid prior to their maturity resulting in a decrease to interest income and an increase to net gains on derivatives and hedging activities. Net gains on derivatives and hedging activities in the above table includes derivative gains of $20 million for the third quarter of 2014 that is used to offset the fair value changes on the trading securities of $19 million for the same period.

The decrease in net gains on derivatives and hedging activities during the first nine months of 2014, compared to the same period in 2013, is due to more stable interest rates during the first nine months of 2014, compared to the same period in 2013. This decrease was partially offset by the prepayment of previously restructured advances prior to their maturity as previously

47

discussed. Net gains on derivatives and hedging activities in the above table includes derivative gains of $49 million for the first nine months of 2014 that is used to offset the fair value changes on the trading securities of $46 million for the same period. In addition, total noninterest income increased during the first nine months of 2014, compared to the same period in 2013, due to an increase in gain on litigation settlements on MBS and gain on early extinguishment of debt.

The following tables summarize the net effect of derivatives and hedging activity on the Bank’s results of operations (in millions):

	For the Three Months Ended September 30, 2014
	Advances			Investments			Consolidated Obligation Bonds		Balance Sheet			Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(94	)	$	—		$	2	$	—		$	(92	)
Net interest settlements included in net interest income (2)	(229		)	—			118		—			(111		)
Total effect on net interest (expense) income	$	(323	)	$	—		$	120	$	—		$	(203	)
Net gains on derivatives and hedging activities:
Gains on fair value hedges	$	76		$	—		$	2	$	—		$	78
Gains (losses) on derivatives not receiving hedge accounting including net interest settlements	—			2			—		(3		)	(1		)
Total net gains (losses) on derivatives and hedging activities	76			2			2		(3		)	77
Net losses on trading securities (3)	—			(19		)	—		—			(19		)
Total effect on noninterest income (loss)	$	76		$	(17	)	$	2	$	(3	)	$	58

____________ 

⁽¹⁾  Represents the amortization or accretion of hedging fair value adjustments for both open and closed hedge positions.

⁽²⁾  Represents interest income or expense on derivatives included in net interest income.

⁽³⁾  Includes only those gains or losses on trading securities or financial instruments held at fair value that have an economic derivative “assigned,” therefore, this line item may not agree to the income statement.

	For the Three Months Ended September 30, 2013
	Advances			Investments			Consolidated Obligation Bonds			Balance Sheet			Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(58	)	$	—		$	5		$	—		$	(53	)
Net interest settlements included in net interest income (2)	(259		)	—			150			—			(109		)
Total effect on net interest (expense) income	$	(317	)	$	—		$	155		$	—		$	(162	)
Net gains on derivatives and hedging activities:
Gains (losses) on fair value hedges	$	46		$	—		$	(7	)	$	—		$	39
(Losses) gains on derivatives not receiving hedge accounting including net interest settlements	—			(6		)	3			(2		)	(5		)
Total net gains (losses) on derivatives and hedging activities	46			(6		)	(4		)	(2		)	34
Net losses on trading securities (3)	—			(16		)	—			—			(16		)
Total effect on noninterest income (loss)	$	46		$	(22	)	$	(4	)	$	(2	)	$	18

____________ 

⁽¹⁾  Represents the amortization or accretion of hedging fair value adjustments for both open and closed hedge positions.

⁽²⁾  Represents interest income or expense on derivatives included in net interest income.

⁽³⁾  Includes only those gains or losses on trading securities or financial instruments held at fair value that have an economic derivative “assigned,” therefore, this line item may not agree to the income statement.

48

	For the Nine Months Ended September 30, 2014
	Advances			Investments			Consolidated Obligation Bonds		Balance Sheet			Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(190	)	$	—		$	5	$	—		$	(185	)
Net interest settlements included in net interest income (2)	(671		)	—			383		—			(288		)
Total effect on net interest (expense) income	$	(861	)	$	—		$	388	$	—		$	(473	)
Net gains on derivatives and hedging activities:
Gains on fair value hedges	$	127		$	—		$	2	$	—		$	129
Losses on derivatives not receiving hedge accounting including net interest settlements	—			(5		)	—		(16		)	(21		)
Total net gains (losses) on derivatives and hedging activities	127			(5		)	2		(16		)	108
Net losses on trading securities (3)	—			(46		)	—		—			(46		)
Total effect on noninterest income (loss)	$	127		$	(51	)	$	2	$	(16	)	$	62

____________ 

⁽¹⁾  Represents the amortization or accretion of hedging fair value adjustments for both open and closed hedge positions.

⁽²⁾  Represents interest income or expense on derivatives included in net interest income.

⁽³⁾  Includes only those gains or losses on trading securities or financial instruments held at fair value that have an economic derivative “assigned,” therefore, this line item may not agree to the income statement.

	For the Nine Months Ended September 30, 2013
	Advances			Investments			Consolidated Obligation Bonds			Balance Sheet		Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(162	)	$	—		$	21		$	—	$	(141	)
Net interest settlements included in net interest income (2)	(797		)	—			469			—		(328		)
Total effect on net interest (expense) income	$	(959	)	$	—		$	490		$	—	$	(469	)
Net gains on derivatives and hedging activities:
Gains (losses) on fair value hedges	$	153		$	—		$	(19	)	$	—	$	134
Gains on derivatives not receiving hedge accounting including net interest settlements	4			5			1			7		17
Total net gains (losses) on derivatives and hedging activities	157			5			(18		)	7		151
Net losses on trading securities (3)	—			(79		)	—			—		(79		)
Total effect noninterest income (loss)	$	157		$	(74	)	$	(18	)	$	7	$	72

____________ 

⁽¹⁾  Represents the amortization or accretion of hedging fair value adjustments for both open and closed hedge positions.

⁽²⁾  Represents interest income or expense on derivatives included in net interest income.

⁽³⁾  Includes only those gains or losses on trading securities or financial instruments held at fair value that have an economic derivative “assigned,” therefore, this line item may not agree to the income statement.

Noninterest Expense and Assessments

Total noninterest expense and Affordable Housing Program assessments remained relatively stable for the third quarter and first nine months of 2014, compared to the same periods in 2013.

Liquidity and Capital Resources

Liquidity is necessary to satisfy members’ borrowing needs on a timely basis, repay maturing and called COs, and meet other obligations and operating requirements. Many members rely on the Bank as a source of standby liquidity, and the Bank attempts to be in a position to meet member funding needs on a timely basis. The Bank complies with operational liquidity and contingent liquidity, and other regulatory requirements. The Bank also performs a separate and independent measure of liquidity, the 45-day liquidity measurement, to validate the level of liquidity reserves.

Finance Agency regulations require the Bank to maintain operational liquidity (generally, the ready cash and borrowing capacity available to meet the Bank's intraday needs), and contingent liquidity in an amount sufficient to meet its liquidity

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needs for five business days if it is unable to access the capital markets. The Bank met these regulatory liquidity requirements throughout the first nine months of 2014. The Finance Agency has also provided liquidity guidance to the FHLBanks generally to provide ranges of days within which each FHLBank should maintain positive cash balances based upon different assumptions and scenarios. The Bank has operated within these ranges since the Finance Agency issued this guidance.

The Bank has established an internal liquidity measurement separate from the Finance Agency requirements described above. The Bank performs a supplemental analysis to confirm that liquidity reserves are sufficient to service debt obligations for at least 45 days. This analysis assumes no access to debt market issuance and other management assumptions which are completely independent of the operational and contingent liquidity calculation measured above. The Bank met its 45 day internal liquidity goal throughout the first nine months of 2014.

The Bank’s principal source of liquidity is CO debt instruments. To provide liquidity, the Bank also may use other short-term borrowings, such as federal funds purchased, securities sold under agreements to repurchase, and loans from other FHLBanks. These funding sources depend on the Bank’s ability to access the capital markets at competitive market rates. Although the Bank may maintain secured and unsecured lines of credit with money market counterparties, the Bank’s income and liquidity would be adversely affected if it were not able to access the capital markets at competitive rates for an extended period. Historically, the FHLBanks have had excellent capital market access, although pricing and investor appetite tend to favor discount notes during times of market volatility.

Contingency plans are in place that prioritize the allocation of liquidity resources in the event of operational disruptions at the Bank or the Office of Finance, as well as systemic Federal Reserve wire transfer system disruptions. Under the FHLBank Act, the Secretary of Treasury has the authority, at his discretion, to purchase COs up to an aggregate amount of $4.0 billion. No borrowings under this authority have been outstanding since 1977.

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Off-balance Sheet Commitments

The Bank’s primary off-balance sheet commitments are as follows:

• the Bank’s joint and several liability for all FHLBank COs; and

• the Bank’s outstanding commitments arising from standby letters of credit.

Should an FHLBank be unable to satisfy its payment obligation under a CO for which it is the primary obligor, any of the other FHLBanks, including the Bank, could be called upon to repay all or any part of such payment obligation, as determined or approved by the Finance Agency. As of September 30, 2014, none of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed. Accordingly, the Bank has not recognized a liability for its joint and several obligations related to other FHLBanks’ COs as of September 30, 2014 and December 31, 2013. As of September 30, 2014, the FHLBanks had $816.9 billion in aggregate par value of COs issued and outstanding, $115.5 billion of which was attributable to the Bank. No FHLBank has ever defaulted on its principal or interest payments under any CO, and the Bank has never been required to make payments under any CO as a result of the failure of another FHLBank to meet its obligations.

The Bank generally requires standby letters of credit to contain language permitting the Bank, upon annual renewal dates and prior notice to the beneficiary, to choose not to renew the standby letter of credit, which effectively terminates the standby letter of credit prior to its scheduled final expiration date. The Bank may issue standby letters of credit for terms of longer than one year without annual renewals, or that have no stated maturity and are subject to renewal on an annual basis, based on the creditworthiness of the member applicant and appropriate additional fees. Letters of credit decreased $3.2 billion, or 11.4 percent as of September 30, 2014 from December 31, 2013, as member institutions adjusted to recent liquidity coverage ratio requirements. The Bank expects that the letters of credit balance may continue to fluctuate through the end of the year.

Commitments to extend credit, including standby letters of credit, are agreements to lend. The Bank issues a standby letter of credit for the account of a member in exchange for a fee. A member may use these standby letters of credit to facilitate a financing arrangement. Based on management’s credit analyses and collateral requirements, the Bank does not deem it necessary to have an allowance for credit losses for these unfunded standby letters of credit as of September 30, 2014. Management regularly reviews its standby letter of credit pricing in light of several factors, including the Bank’s potential liquidity needs related to draws on its standby letters of credit.

For more information about the Bank's outstanding standby letters of credit refer to Note 15—Commitments and Contingencies to the Bank’s interim financial statements.

Contractual Obligations

As of September 30, 2014, there has been no material change outside the ordinary course of business in the Bank’s contractual obligations as reported in the Bank’s Form 10-K.

Legislative and Regulatory Developments

Significant regulatory actions and developments for the period covered by this report are summarized below.

Joint Final Rule on Credit Risk Retention for Asset-Backed Securities. On October 22, 2014, the Finance Agency and other U.S. federal regulators jointly approved a final rule requiring sponsors of asset-backed securities (ABS) to retain credit risk in those transactions. The final rule largely retains the risk retention framework contained in the proposal issued by the agencies in August 2013 and generally requires sponsors of ABS to retain a minimum 5% economic interest in a portion of the credit risk of the assets collateralizing the ABS, unless all the securitized assets satisfy specified qualifications. The final rule specifies criteria for qualified residential mortgage (QRM), commercial real estate, auto, and commercial loans that would make them exempt from the risk retention requirement. The definition of QRM is aligned with the definition of “qualified mortgage” (QM) as provided in Section 129C of the Truth in Lending Act, and its implementing regulations, as adopted by the Consumer Financial Protection Bureau. The QM definition requires, among other things, full documentation and verification of consumers’ debt and income and a debt-to-income ratio that does not exceed 43 percent; and restricts the use of certain product features, such as negative amortization and interest-only and balloon payments.

Other exemptions from the credit risk requirement include certain owner-occupied mortgage loans secured by three-to-four unit residential properties that meet the criteria for QM and certain types of community-focused residential mortgages (including extensions of credit made by community development financial institutions). The final rule also includes a provision that

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requires the agencies to periodically review the definition of QRM, the exemption for certain community-focused residential mortgages, and the exemption for certain three-to-four unit residential mortgage loans and consider whether they should be modified.

The final rule exempts agency MBS from the risk retention requirements as long as the sponsoring agency is operating under the conservatorship or receivership of the Finance Agency and fully guarantees the timely payment of principal and interest on all assets in the issued security. Further, MBS issued by any limited-life regulated entity succeeding to either Fannie Mae or Freddie Mac oeprating with capital support from the United States would be exempt from the risk retention requirements. The Bank is currently assessing the impact of the final rule and has not yet determined the effect, if any, that this rule may have on the Bank's operations. The final rule will be effective one year after publication in the Federal Register for residential mortgage-backed securitizations and two years after publication for all other securitization types.

FHLBank Capital Stock and Capital Plans. On October 8, 2014, the Finance Agency issued a proposed rule that would transfer existing parts 931 and 933 of the Federal Housing Finance Board regulations, which address requirements for FHLBanks’ capital stock and capital plans, to new Part 1277 of the Finance Agency regulations. The proposed rule would not make any substantive changes to these requirements, but would delete certain provisions that applied only to the one-time conversion of FHLBank stock to the new capital structure required by the Gramm-Leach- Bliley Act. The proposed rule would also make certain clarifying changes so that the rules would more precisely reflect long-standing practices and requirements with regard to transactions in FHLBank stock. The proposed rule would add appropriate references to ‘‘former members’’ to clarify when former FHLBank members can be required to maintain investment in FHLBank capital stock after withdrawal from the FHLBank. The Bank is currently evaluating the proposed rule. Comments on the proposed rule are due by December 8, 2014.

FHLBank Membership. On September 12, 2014, the Finance Agency issued a proposed rule that would:

• Impose a new test on all Bank members that requires them to maintain at least 1% of their assets in first-lien home mortgage loans, including MBS, on an ongoing basis, with maturities of five years or more to maintain their membership in the Bank. The proposal also suggests the possibility of a 2% or a 5% test as options.

• Require all insured depository members (other than FDIC-insured depositories with less than $1.1 billion in assets) to maintain, on an ongoing basis, at least 10% of their assets in a broader range of residential mortgage loans, including those secured by junior liens and MBS, in order to maintain their membership in the Bank.

• Eliminate all currently eligible captive insurance companies from Bank membership. Current captive insurance company members would have their memberships terminated five years after this rule is finalized. There would be restrictions on the level and maturity of advances that the Bank could make to these members during the sunset period. Under the proposed rule, a captive insurance company is defined as a company that is authorized under state law to conduct an insurance business but whose primary business is not the underwriting of insurance for nonaffiliated persons or entities.

• Clarify how the Bank should determine the principal place of business of certain insurance companies or community development financial institutions for purposes of membership. Current rules define an institution’s principal place of business as the state in which it maintains its home office, and provides certain circumstances under which an institution's principal place of business may be designated in a state other than the state in which it maintains its home office. The proposal provides that insurance companies or community development financial institutions that cannot satisfy the requirements for designation of principal place of business, a Bank shall designate as the principal place of business the geographic location from which the institution actually conducts the predominant portion of its business operations, based on the totality of the circumstances. The changes would apply prospectively.

Comments on the proposed rule are due by January 12, 2015. Although a number of Bank members may not meet one or more of the new tests if the proposed rule is adopted as of September 30, 2014, the future impact of the proposed rule on the Bank’s membership is unknown.

Basel Committee on Bank Supervision - Liquidity Coverage Ratio. On September 3, 2014, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation finalized the liquidity coverage ratio (LCR) rule, applicable to: (i) U.S. banking organizations with $250 billion or more in total consolidated assets or $10 billion or more in total on-balance sheet foreign exposure, and their consolidated subsidiary depository institutions with $10 billion or more in total consolidated assets; and (ii) certain other U.S. bank or savings and loan holding companies having at least $50 billion in total consolidated assets (which will be subject to less stringent requirements under the LCR rule). The LCR rule requires such covered companies to maintain an amount of high quality liquid assets (HQLA) that is no less than 100% of their total net cash outflows over a prospective 30-day stress period. Among other things, the final rule defines the various categories of HQLA, called Levels 1, 2A, or 2B. The treatment of HQLAs for the LCR is most

52

favorable under the Level 1 category, less favorable under the Level 2A category, and least favorable under the Level 2B category.

Under the final rule, collateral pledged to the Bank but not securing existing borrowings may be considered eligible HQLA to the extent the collateral itself qualifies as eligible HQLA; qualifying FHLBank System consolidated obligations are categorized as Level 2A HQLAs; and the amount of a covered company’s funding that is assumed to run off includes 25% of FHLBank advances maturing within 30 days, to the extent such advances are not secured by level 1 or level 2A HQLA, where 0% and 15% run-off assumptions apply, respectively.  At this time, the impact of the final rule is uncertain. The final rule requires that all covered companies be fully compliant by January 1, 2017.

Margin and Capital Requirements for Covered Swap Entities. On September 3, 2014, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, and the Finance Agency (collectively, the Agencies) jointly proposed a rule to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants (collectively, Swap Entities) that are subject to the jurisdiction of one of the Agencies (the Proposed Rule). In addition, the Proposed Rule affords the Agencies discretion to subject other persons to the Proposed Rule’s requirements (together with Swap Entities, the Covered Swap Entities). Comments on the Proposed Rule are due by November 24, 2014.

In addition, on September 17, 2014, the Commodity Futures Trading Commission (CFTC) adopted its version of the Proposed Rule (CFTC Proposed Rule) that generally mirrors the Proposed Rule. The CFTC Proposed Rule will only apply to a limited number of registered swap dealers and major swap participants that are not subject to the jurisdiction of one of the Agencies. Comments on the CFTC Proposed Rule are due by December 2, 2014.

The Proposed Rule would subject non-cleared swaps and non-cleared security-based swaps between Covered Swap Entities, and between Covered Swap Entities and financial end users that have material swaps exposure to a mandatory two-way initial margin requirement.  The amount of initial margin required to be posted or collected would be either the amount calculated using a standardized schedule set forth in the Proposed Rule, which provides the gross initial margin (as a percentage of total notional exposure) for certain asset classes, or an internal margin model conforming to the requirements of the Proposed Rule that is approved by the applicable Agency. The Proposed Rule specifies the types of collateral that may be posted or collected as initial margin (generally, cash, certain government securities, certain liquid debt, certain equity securities and gold); and sets forth haircuts for certain collateral asset classes. Initial margin must be segregated with an independent, third-party custodian and may not be rehypothecated.

The Proposed Rule would require variation margin to be exchanged daily for non-cleared swaps and non-cleared security-based

swaps between Covered Swap Entities and between Covered Swap Entities and all financial end users (without regard to the swaps exposure of the particular financial end-user). The variation margin amount is the daily mark-to-market change in the value of the swap to the Covered Swap Entity, taking into account variation margin previously paid or collected. Variation margin may only be paid or collected in cash, is not subject to segregation with an independent, third-party custodian, and may, if permitted by contract, be rehypothecated.

Under the Proposed Rule, the variation margin requirement would become effective on December 1, 2015 and the initial margin requirement would be phased in over a four-year period commencing on that date. For entities that have less than a $1 trillion notional amount of non-cleared derivatives, the Proposed Rule’s initial margin requirement would not come into effect until December 1, 2019.

The Bank would not be a Covered Swap Entity under the Proposed Rule, although the Finance Agency has discretion to designate the Bank as a Covered Swap Entity. Rather, the Bank would be a financial end-user under the Proposed Rule, and it would likely have material swaps exposure upon the effective date of the Proposed Rule’s initial margin requirement.

Since the Bank is currently posting and collecting variation margin in cash, daily, on its non-cleared swaps, it is not anticipated that the Proposed Rule’s variation margin requirement, if adopted, would have a material impact on the Bank’s costs. However, if the Proposed Rule’s initial margin requirement is adopted, the Bank’s cost of engaging in non-cleared swaps may increase.

Money Market Mutual Fund Reform. On July 23, 2014, the SEC approved final regulations governing money market mutual funds under the Investment Company Act of 1940. The final regulations, among other things, will:

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• Require institutional prime money market funds (including institutional municipal money market funds), to sell and redeem shares based on their floating net asset value, which would result in the daily share prices of these money market funds fluctuating along with changes in the market-based value of the funds’ investments.

• Allow money market fund boards of directors to directly address a run on a fund by imposing liquidity fees or suspending redemptions temporarily if the money market fund's level of weekly liquid assets falls below 30 percent of its total assets.

Include enhanced diversification, disclosure and stress testing requirements, as well as provide updated reporting by money market funds and private funds that operate like money market funds.

The final regulations do not change the existing regulatory treatment of government agency debt (including FHLBank COs) as liquid assets. FHLBank consolidated obligation discount notes continue to be included in the definition of “daily liquid assets,” and the definition of “weekly liquid assets” continues to include FHLBank consolidated obligation discount notes with a remaining maturity up to 60 days. At this time, the future impact of these regulations on demand for FHLBank consolidated obligations is unknown.

Risk Management

The Bank’s lending, investment, and funding activities and the use of derivative hedge instruments expose the Bank to a number of risks. A robust risk management framework aligns risk-taking activities with the Bank’s strategies and risk appetite. A risk management framework also balances risks and rewards. The Bank’s risk management framework consists of risk governance, risk appetite, and risk management policies.

The Bank’s board of directors and management recognize that risks are inherent to the Bank’s business model and that the process of establishing a risk appetite does not imply that the Bank seeks to mitigate or eliminate all risk. By defining and managing to a specific risk appetite, the board of directors and management ensure that there is a common understanding of the Bank’s desired risk profile which enhances their ability to make improved strategic and tactical decisions. Additionally, the Bank aspires to achieve and exceed best practices in governance, ethics, and compliance, and to sustain a corporate culture that fosters transparency, integrity, and adherence to legal and ethical obligations.

The Bank's board of directors and management have established this risk appetite statement and risk metrics for controlling and escalating actions based on the nine continuing objectives that represent the foundation of the Bank's strategic and tactical planning, as described in the Bank's Form 10-K.

Discussion of the Bank’s management of its credit risk and market risk is provided below. Further discussion of these risks, as well as the Bank’s management of its liquidity, operational, and business risks, is contained in the Bank’s Form 10-K.

Credit Risk

The Bank faces credit risk primarily with respect to its advances, investments, derivatives, and mortgage loan assets.

Advances

Secured advances to member financial institutions account for the largest category of Bank assets; thus, advances are a major source of the Bank’s credit risk exposure. The Bank uses a risk-focused approach to credit and collateral underwriting. The Bank attempts to reduce credit risk on advances by monitoring the financial condition of borrowers and the quality and value of the assets borrowers pledge as eligible collateral.

The Bank utilizes a credit risk rating system for its members, which focuses primarily on an institution’s overall financial health and takes into account quality of assets, earnings, and capital position. The Bank assigns each borrower that is an insured depository institution or an insurance company a credit risk rating from one to 10 according to the relative amount of credit risk such borrower poses to the Bank (one being the least amount of credit risk and 10 the greatest amount of credit risk). In general, borrowers in category 10 may have more restrictions on the types of collateral they may use to secure advances, may be required to maintain higher collateral maintenance levels and deliver loan collateral, may be restricted from obtaining further advances, and may face more stringent collateral reporting requirements. At times, the Bank may place more restrictive requirements on a borrower than those generally applicable to borrowers with the same rating based upon the Bank's assessment of the borrower and its collateral. Beginning March 31, 2014, the Bank assigns each borrower that is not an insured depository institution or insurance company, such as housing associates, certified community development financial institutions, and corporate credit unions, a risk level rating based on a risk matrix developed for each entity type. Each matrix has risk levels that generally correspond to the 1-10 credit risk rating for insured depository institutions and insurance

54

companies. Development of these risk matrices for borrowers that are not insured depository institutions or insurance companies enables the Bank to monitor and analyze the financial condition of these borrowers in a more consistent and complete manner.

The following table sets forth the number of borrowers and the par amount of advances outstanding to borrowers with the specified ratings as of the specified dates (dollars in millions).

	As of September 30, 2014			As of December 31, 2013
Rating	Number of         Borrowers	Outstanding         Advances		Number of         Borrowers	Outstanding         Advances
1	10	$	2,874	7	$	63
2	18	2,198		32	4,742
3	67	25,684		48	9,919
4	91	19,478		50	14,433
5	128	30,462		114	13,792
6	111	3,027		101	21,296
7	49	1,114		92	20,333
8	25	664		56	1,063
9	19	542		27	883
10	39	642		52	898

The Bank establishes a credit limit for each borrower. The credit limit is not a committed line of credit, but rather an indication of the borrower’s general borrowing capacity with the Bank. The Bank determines the credit limit in its sole and absolute discretion, by evaluating a wide variety of factors indicating the borrower’s overall creditworthiness. The credit limit generally is expressed as a percentage equal to the ratio of the borrower’s total liabilities to the Bank (including the face amount of outstanding letters of credit, the principal amount of outstanding advances and the total exposure of the Bank to the borrower under any derivative contract) to the borrower’s total assets. Generally, borrowers are held to a credit limit of no more than 30 percent. However, the Bank’s board of directors, or a relevant committee thereof, may approve a higher limit at its discretion, and such borrowers may be subject to certain additional collateral reporting and maintenance requirements. As of September 30, 2014, seven borrowers have been approved for a credit limit higher than 30 percent.

Each borrower must maintain an amount of qualifying collateral that, when discounted to the lendable collateral value (LCV), is equal to at least 100 percent of the outstanding principal amount of all advances and other liabilities of the borrower to the Bank. The LCV is the value that the Bank assigns to each type of qualifying collateral for purposes of determining the amount of credit that such qualifying collateral will support. For each type of qualifying collateral, the Bank discounts the market value of the qualifying collateral to calculate the LCV. The Bank regularly reevaluates the appropriate level of discounting. The following table provides information about the types of collateral held for the Bank’s advances (dollars in millions).

	Total Par  Value of Outstanding Advances		LCV of  Collateral  Pledged by Members		First Mortgage  Collateral (%)	Securities  Collateral (%)	Other Real Estate Related Collateral (%)
As of September 30, 2014	$	87,084	$	270,111	71.31	6.20	22.49
As of December 31, 2013	87,882		231,342		67.20	8.18	24.62

For purposes of determining each member's LCV, the Bank estimates the current market value of all residential first mortgage loans, multifamily and commercial real estate loans, and home equity loans and lines of credit pledged as collateral based on information provided by the member on individual loans or its loan portfolio through the regular collateral reporting process. The estimated market value is discounted to account for the price volatility of loans as well as estimated liquidation and servicing costs in the event of the member's default. Market values, and thus LCVs, change monthly. The use of this market-based valuation methodology allows the Bank to establish its collateral discounts with greater precision and provides greater transparency with respect to the valuation of collateral pledged for advances and other credit products offered by the Bank.

The FHLBank Act affords any security interest granted to the Bank by any member of the Bank, or any affiliate of any such member, priority over the claims and rights of any party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), other than claims and rights of a party that (1) would be entitled to priority under otherwise applicable law; and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with applicable state law.

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In its history, the Bank has never experienced a credit loss on an advance. In consideration of this, and the Bank’s policies and practices detailed above, the Bank has not established an allowance for credit losses on advances as of September 30, 2014 and December 31, 2013.

Investments

The Bank is subject to credit risk on unsecured investments, such as interest-bearing deposits and federal funds sold. These investments are generally transacted with government agencies and large financial institutions that are considered to be of investment quality. The Finance Agency defines investment quality as a security with adequate financial backing so that full and timely payment of principal and interest on such security is expected and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security.

The Bank follows guidelines approved by its board of directors regarding unsecured extensions of credit, in addition to Finance Agency regulations, with respect to term limits and eligible counterparties. On November 8, 2013, the Finance Agency issued a final rule implementing Section 939A of the Dodd-Frank Act, which requires Federal agencies to remove provisions from their regulations that require the use of ratings issued by a NRSRO. The final rule requires the Bank to make its own determination of credit quality with respect to its investments, but does not prevent the Bank from using NRSRO ratings or other third party analysis in its credit determinations. The final rule became effective on May 7, 2014.

To minimize credit risk on investments, Finance Agency regulations prohibit the Bank from investing in any of the following securities:

• instruments such as common stock that represent an ownership interest in an entity, other than stock in small business investment companies or certain investments targeted to low-income people or communities;

• instruments issued by non-United States entities, other than those issued by United States branches and agency offices of foreign commercial banks;

• debt instruments that are not investment quality, other than certain investments targeted to low-income people or communities and instruments that the Bank determined became less than investment quality because of developments or events that occurred after purchase by the Bank;

• whole mortgages or other whole loans, other than (1) those acquired under the Bank’s mortgage purchase programs; (2) certain investments targeted to low-income people or communities; (3) certain marketable direct obligations of state, local, or tribal government units or agencies that are investment quality; (4) MBS or asset-backed securities backed by manufactured housing loans or home equity loans; and (5) certain foreign housing loans authorized under section 12(b) of the FHLBank Act;

• interest-only or principal-only stripped MBS, collateralized mortgage obligations (CMOs), collateralized debt obligations, and real estate mortgage investment conduits (REMICs);

• residual-interest or interest-accrual classes of CMOs and REMICs;

• fixed-rate or variable-rate MBS, CMOs, and REMICs that on the trade date are at rates equal to their contractual cap and that have average lives that vary by more than six years under an assumed instantaneous interest-rate change of 300 basis points; and

• non-U.S. dollar denominated securities.

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The Bank enters into investments only with U.S. counterparties or U.S. branch offices of foreign banks that have been approved by the Bank through its internal approval process, but may have exposure to foreign entities if a counterparty’s parent entity is located in another country. The tables below represent the Bank’s gross exposure, by instrument type, according to the location of the parent company of the counterparty (in millions):

	As of September 30, 2014
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure (1)		Total
Australia	$	395	$	—	$	—	$	395
Canada	1,405		—		—		1,405
Germany	1,160		—		65		1,225
United States of America	1,135		1,010		—		2,145
Total	$	4,095	$	1,010	$	65	$	5,170

____________ 

⁽¹⁾  Amounts do not reflect collateral; see the table under Risk Management–Credit Risk–Derivatives below for a breakdown of the credit ratings of and the Bank’s credit exposure to derivative counterparties, including net exposure after collateral.

	As of December 31, 2013
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure (1)		Total
Canada	$	250	$	—	$	—	$	250
Germany	—		—		67		67
United Kingdom	510		—		—		510
United States of America	1,035		1,007		4		2,046
Total	$	1,795	$	1,007	$	71	$	2,873

____________ 

⁽¹⁾  Amounts do not reflect collateral; see the table under Risk Management–Credit Risk–Derivatives below for a breakdown of the credit ratings of and the Bank’s credit exposure to derivative counterparties, including net exposure after collateral.

The Bank experienced an increase in unsecured credit exposure in its investment portfolio related to non-U.S. government and non-U.S. government agency counterparties from $2.8 billion as of December 31, 2013 to $5.1 billion as of September 30, 2014. There were three such counterparties, Landesbank Baden-Wuerttemberg, Branch Banking and Trust Company, and Bank of Nova Scotia, that each represented greater than 10 percent, and collectively represented 68.1 percent of the total unsecured credit exposure to non-U.S. government or non-U.S. government agencies counterparties. As reported in the Bank's Form 10-K, Branch Banking and Trust was one of the Bank's top 10 advances borrowers as of December 31, 2013. One of the Bank's member directors is a senior executive vice president of Branch Banking and Trust Company and was elected chairman of the Bank's board of directors effective January 1, 2013. Pursuant to Finance Agency regulation, the Bank's member directors serve as officers or directors of a Bank member, and the Bank may enter into business transactions with such members from time to time in the ordinary course of business. As of September 30, 2014, the Bank’s unsecured credit portfolio consisted primarily of federal funds sold with overnight maturities.

The Bank’s Risk Management Policy (RMP) permits the Bank to invest in U.S. agency (Fannie Mae, Freddie Mac and Ginnie Mae) obligations, including CMOs and REMICS backed by such securities, and other MBS, CMOs, and REMICS rated AAA by S&P or Aaa by Moody’s at the time of purchase. The private-label MBS purchased by the Bank originally attained their triple-A ratings through credit enhancements, which primarily consisted of the subordination of the claims of the other tranches of these securities. In addition to NRSRO ratings, the Bank considers a variety of credit quality factors when analyzing potential investments, such as collateral performance, marketability, asset class considerations, local and regional economic conditions, and the financial health of the underlying issuer.

The tables below provide information on the credit ratings of the Bank’s investments held as of September 30, 2014 and December 31, 2013, based on the lowest long-term credit rating as reported by an NRSRO as of September 30, 2014 and December 31, 2013 (in millions), respectively.

57

			As of September 30, 2014
			Carrying Value (1)
			Investment Grade						Below Investment Grade
	AAA		AA		A		BBB		BB		B		CCC		CC		C		D		Unrated		Total
Short-term investments:
Interest-bearing deposits	$	—	$	2	$	1,008	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,010
Securities purchased under agreements to resell	—		—		—		—		455		—		—		—		—		—		—		455
Federal funds sold	—		395		2,820		880		—		—		—		—		—		—		—		4,095
Total short-term investments	—		397		3,828		880		455		—		—		—		—		—		—		5,560
Long-term investments:
State or local housing agency debt obligations	—		85		—		—		—		—		—		—		—		—		—		85
U.S. government agency debt obligations	—		6,340		—		—		—		—		—		—		—		—		—		6,340
Mortgage-backed securities:
U.S. government agency securities	—		388		—		—		—		—		—		—		—		—		—		388
Government-sponsored enterprises	466		13,638		—		—		—		—		—		—		—		—		—		14,104
Private-label	—		33		99		429		518		601		807		231		186		757		5		3,666
Total mortgage-backed securities	466		14,059		99		429		518		601		807		231		186		757		5		18,158
Total long-term investments	466		20,484		99		429		518		601		807		231		186		757		5		24,583
Total investments	$	466	$	20,881	$	3,927	$	1,309	$	973	$	601	$	807	$	231	$	186	$	757	$	5	$	30,143

____________

⁽¹⁾  Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $45 million as of September 30, 2014.

	As of December 31, 2013
	Carrying Value (1)
	Investment Grade								Below Investment Grade
	AAA		AA		A		BBB		BB		B		CCC		CC		C		D		unrated		Total
Short-term investments:
Interest-bearing deposits	$	—	$	1	$	1,006	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,007
Federal funds sold	—		—		1,395		400		—		—		—		—		—		—		—		1,795
Total short-term investments	—		1		2,401		400		—		—		—		—		—		—		—		2,802
Long-term investments:
State or local housing agency debt obligations	—		93		—		—		—		—		—		—		—		—		—		93
U.S. government agency debt obligations	—		5,404		—		—		—		—		—		—		—		—		—		5,404
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	—		465		—		—		—		—		—		—		—		—		—		465
Government-sponsored enterprises residential	466		13,486		—		—		—		—		—		—		—		—		—		13,952
Private-label residential	—		62		123		511		523		809		534		323		161		1,176		6		4,228
Total mortgage-backed securities	466		14,013		123		511		523		809		534		323		161		1,176		6		18,645
Total long-term investments	466		19,510		123		511		523		809		534		323		161		1,176		6		24,142
Total investments	$	466	$	19,511	$	2,524	$	911	$	523	$	809	$	534	$	323	$	161	$	1,176	$	6	$	26,944

____________

⁽¹⁾  Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $49 million as of December 31, 2013.

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The Bank monitors the financial condition of investment counterparties to ensure that they are in compliance with the Bank's RMP and Finance Agency regulations. Unsecured credit exposure to any counterparty is limited by the credit quality and capital of the counterparty and by the capital of the Bank. On a regular basis, management produces financial monitoring reports detailing the financial condition of the Bank’s counterparties. These reports are reviewed by the Bank’s board of directors. The Bank may further limit or suspend overnight and term trading in addition to RMP and regulatory requirements. Limiting or suspending counterparties limits the pool of available counterparties, shifts the geographical distribution of counterparty exposure, and may reduce the Bank’s overall short-term investment opportunities.

Securities Purchased Under Agreements to Resell

Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term secured loans with investment-grade counterparties. The Bank is inherently exposed to credit risk associated with the risk of default by, or insolvency of, any counterparty with whom it conducts business; however, based upon the collateral held as security and the investment-grade of the related counterparties, the Bank considers its credit exposure related to these investments to be minimal.

Non-Private-label MBS

Unrealized losses related to U.S. agency MBS and GSE MBS are caused by interest rate changes. Because these securities are guaranteed by government agencies or GSEs, it is expected that these securities would not be settled at a price less than the amortized cost basis. The Bank does not consider these investments to be other-than-temporarily impaired as of September 30, 2014 because the decline in fair value is attributable to changes in interest rates and not credit quality, the Bank does not intend to sell the investments, and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity.

Private-label MBS

For disclosure purposes, the Bank classifies private-label MBS as either prime or Alt-A based upon the overall credit quality of the underlying loans as determined by the originator at the time of origination, unless otherwise noted. Although there is no universally accepted definition of Alt-A, generally loans with credit characteristics that range between prime and subprime are classified as Alt-A. Participants in the mortgage market have used the Alt-A classification principally to describe loans for which the underwriting process has been streamlined in order to reduce the documentation requirements of the borrower or allow alternative documentation. As of September 30, 2014, based on the classification by the originator at the time of origination, approximately 86.4 percent of the underlying mortgages collateralizing the Bank’s private-label MBS were considered prime, of which 95.1 percent were variable-rate, and the remaining underlying mortgages collateralizing these securities were considered Alt-A, of which 66.4 percent were variable-rate.

The table below provides information on the interest-rate payment terms of the Bank’s private-label MBS backed by prime and Alt-A loans (in millions).

	As of September 30, 2014						As of December 31, 2013
	Fixed-Rate		Variable-Rate		Total		Fixed-Rate		Variable-Rate		Total
Prime	$	169	$	3,264	$	3,433	$	246	$	3,736	$	3,982
Alt-A	181		358		539		233		391		624
Total unpaid principal balance	$	350	$	3,622	$	3,972	$	479	$	4,127	$	4,606

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The tables below provide additional information, including changes in ratings since the original purchase date, on the Bank’s private-label MBS by year of securitization as of September 30, 2014 (dollars in millions).

	Year of Securitization - Prime
	2008			2007			2006			2005			2004 and   Prior			Total
Investment Ratings:
AA	$	—		$	—		$	—		$	—		$	33		$	33
A	—			—			—			10			88			98
BBB	—			—			—			98			281			379
BB	—			8			—			167			270			445
B	—			14			—			233			245			492
CCC	—			273			25			374			101			773
CC	31			139			41			45			—			256
C	77			12			52			65			—			206
D	—			293			394			58			—			745
Unrated	—			—			—			—			6			6
Total unpaid principal balance	$	108		$	739		$	512		$	1,050		$	1,024		$	3,433
Amortized cost	$	91		$	573		$	415		$	959		$	1,011		$	3,049
Gross unrealized losses	$	—		$	(1	)	$	—		$	(4	)	$	(9	)	$	(14	)
Fair value	$	96		$	634		$	454		$	993		$	1,014		$	3,191
Other-than-temporary impairment (Year-to-date):
Credit-related losses	$	—		$	(2	)	$	—		$	(1	)	$	—		$	(3	)
Non-credit-related losses	—			(2		)	—			(1		)	—			(3		)
Total other-than-temporary impairment losses	$	—		$	—		$	—		$	—		$	—		$	—
Weighted average percentage of fair value to unpaid principal balance	88.35		%	85.76		%	88.71		%	94.69		%	99.04		%	92.97		%
Original weighted average credit support	15.72		%	14.37		%	10.47		%	7.02		%	3.73		%	8.41		%
Weighted average credit support	2.44		%	0.79		%	0.64		%	5.41		%	10.40		%	5.10		%
Weighted average collateral delinquency	12.35		%	18.49		%	16.34		%	9.80		%	8.38		%	12.30		%

	Year of Securitization – Alt-A
	2008			2007			2006			2005			2004 and   Prior			Total
Investment Ratings:
A	$	—		$	—		$	—		$	—		$	2		$	2
BBB	—			—			—			—			51			51
BB	—			—			—			—			73			73
B	—			—			—			—			113			113
CCC	—			—			—			144			3			147
D	—			37			—			116			—			153
Total unpaid principal balance	$	—		$	37		$	—		$	260		$	242		$	539
Amortized cost	$	—		$	27		$	—		$	209		$	242		$	478
Gross unrealized losses	$	—		$	—		$	—		$	(12	)	$	(1	)	$	(13	)
Fair value	$	—		$	30		$	—		$	205		$	243		$	478
Other-than-temporary impairment (Year-to-date):
Credit-related losses	$	—		$	—		$	—		$	—		$	—		$	—
Non-credit-related losses	—			—			—			—			—			—
Total other-than-temporary impairment losses	$	—		$	—		$	—		$	—		$	—		$	—
Weighted average percentage of fair value to unpaid principal balance	0.00		%	79.97		%	0.00		%	78.98		%	100.67		%	88.77		%
Original weighted average credit support	0.00		%	12.29		%	0.00		%	27.92		%	8.43		%	18.10		%
Weighted average credit support	0.00		%	0.00		%	0.00		%	8.93		%	12.72		%	10.01		%
Weighted average collateral delinquency	0.00		%	28.96		%	0.00		%	26.77		%	8.70		%	18.82		%

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The following table represents a summary of the significant inputs used to evaluate each of the Bank’s private-label MBS for other-than-temporary impairment as of September 30, 2014:

	Significant Inputs(1)
	Prepayment Rate	Default Rates	Loss Severities	Current Credit Enhancement
Classification	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
Prime	16.38	6.43	32.79	7.26
Alt-A	13.83	22.59	37.94	3.81
Total of all private-label residential MBS	15.26	13.49	35.04	5.75

____________

⁽¹⁾  The classification (prime and Alt-A) is based on the model used to run the estimated cash flows for the individual securities, which may not necessarily be the same as the classification at the time of origination.

For the securities for which an other-than-temporary impairment was determined to have occurred during the third quarter of 2014, a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings is contained in Note 6 —Other-than-temporary Impairment to the Bank’s interim financial statements.

The tables below summarize the total other-than-temporary impairment losses by newly impaired and previously impaired securities (in millions):

	For the Three Months Ended September 30,
	2014								2013
	Credit Losses			Net Noncredit Losses			Total Losses		Credit Losses		Net Noncredit Losses		Total Losses
Securities newly impaired during the period	$	—		$	—		$	—	$	—	$	—	$	—
Securities previously impaired prior to current period (1)	(2		)	(2		)	—		—		—		—
Total	$	(2	)	$	(2	)	$	—	$	—	$	—	$	—

____________ 

⁽¹⁾  For the three months ended September 30, 2014 and 2013, “Securities previously impaired prior to current period” represents all securities that were previously impaired prior to July 1, 2014 and 2013, respectively.

	For the Nine Months Ended September 30,
	2014								2013
	Credit Losses			Net Noncredit Losses			Total Losses		Credit Losses		Net Noncredit Losses		Total Losses
Securities newly impaired during the period	$	—		$	—		$	—	$	—	$	1	$	(1	)
Securities previously impaired prior to current period (1)	(3		)	(3		)	—		—		—		—
Total	$	(3	)	$	(3	)	$	—	$	—	$	1	$	(1	)

____________ 

⁽¹⁾ For the nine months ended September 30, 2014 and 2013, “Securities previously impaired prior to current period” represents all securities that were previously impaired prior to January 1, 2014 and 2013, respectively.

In addition to the cash flow analysis of the Bank’s private-label MBS under a base case (best estimate) housing price scenario as described in Note 6—Other-than-temporary Impairment to the Bank’s interim financial statements, a cash flow analysis was also performed based on a housing price scenario that is more adverse than the base case (adverse case housing price scenario). This more stressful scenario was based on a short-term housing price forecast that was decreased five percentage points relative to the base case, followed by a recovery path that is 33.0 percent lower than the base case.

The adverse case housing price scenario and associated results should not be construed as a prediction of the Bank’s future results, market conditions, or the actual performance of these securities. Rather, the results from this hypothetical adverse case housing price scenario provide a measure of the credit losses the Bank might incur if home price declines (and subsequent recoveries) are more adverse than those projected in the Bank’s base case assessment.

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The following table shows the base case scenario and what the impact on other-than-temporary impairment would have been under the more stressful adverse case housing price scenario (dollars in millions). Under the adverse case housing price scenario, the Bank may recognize a credit loss in excess of the maximum credit loss, the difference between the security’s amortized cost basis and fair value, because the Bank believes fair value would decrease in the adverse case housing price scenario.

	For the Three Months Ended September 30, 2014
	Housing Price Scenario
	Base Case (1)						Adverse Case
	Number of     Securities	Unpaid Principal balance		Other-Than-Temporary Impairment Related  to Credit Loss			Number of     Securities	Unpaid Principal balance		Other-Than-Temporary Impairment Related to Credit Loss
Prime loan (2)	2	$	54	$	(2	)	2	$	54	$	(3	)

____________

⁽¹⁾ Represents the security and related other-than-temporary-impairment credit loss for the three months ended September 30, 2014.

⁽²⁾ Based on the originator’s classification of collateral at the time of origination or based on classification of collateral by an NRSRO upon issuance of the MBS.

The Bank continues to actively monitor the credit quality of its private-label MBS investments. It is not possible to predict the magnitude of additional other-than temporary impairment losses in future periods because that prediction depends on the actual performance of the underlying loan collateral as well as the Bank’s future modeling assumptions. Many factors could influence the Bank’s future modeling assumptions, including economic, financial market, and housing market conditions. If performance of the underlying loan collateral deteriorates and/or the Bank’s modeling assumptions become more pessimistic, the Bank could experience further losses on its investment portfolio.

Derivatives

The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions. The amount of credit risk on derivatives depends on the extent to which netting procedures, collateral requirements, and other credit enhancements are used and are effective in mitigating the risk. The Bank manages credit risk through credit analysis, collateral management, and other credit enhancements. The Bank is also required to follow the requirements set forth by applicable regulations.

For bilateral derivative transactions, the Bank is subject to nonperformance by counterparties to its bilateral derivative transactions. The Bank generally requires collateral on bilateral derivative transactions. The amount of net unsecured credit exposure that is permissible with respect to each counterparty depends on the credit rating of that counterparty. A counterparty must deliver collateral to the Bank if the total market value of the Bank's exposure to that counterparty rises above a specific trigger point. As a result of these risk mitigation initiatives, the Bank does not anticipate any credit losses on its bilateral derivative transactions as of September 30, 2014.

For cleared derivatives, the Bank is subject to credit risk due to nonperformance by the Clearinghouse and clearing agent. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk in the event that the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives mitigates credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily for changes in the value of cleared derivatives through a clearing agent. The Bank does not anticipate any credit losses on its cleared derivatives as of September 30, 2014.

The contractual or notional amount of derivatives transactions reflects the involvement of the Bank in the various classes of financial instruments; however, the maximum credit risk of the Bank with respect to derivative transactions is the estimated cost of replacing the derivative transactions if there is default, minus the value of any related collateral, including initial and variation margin. In determining maximum credit risk, the Bank considers, accrued interest receivables and payables as well as the netting requirements to net assets and liabilities.

The tables below provide information on the credit ratings of, and the Bank’s credit exposure to, its derivative counterparties (in millions). The credit ratings reflect the lowest long-term credit rating by an NRSRO.

62

	As of September 30, 2014
	Notional Amount		Derivatives Fair Value Before Collateral			Cash Collateral Pledged To (From) Counterparty			Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	$	11,608	$	65		$	(65	)	$	—
Cleared derivatives	6,623		—			4			4
Liability positions with credit exposure:
Cleared derivatives	43,503		(234		)	348			114
Total derivative positions with non-member counterparties to which the Bank had credit exposure	61,734		(169		)	287			118
Member institutions (1)	59		—			—			—
Total	$	61,793	$	(169	)	$	287		$	118

____________ 

⁽¹⁾ Collateral held with respect to derivatives with member institutions where the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank.

	As of December 31, 2013
	Notional Amount		Derivatives Fair Value Before Collateral			Cash Collateral Pledged To (From) Counterparty			Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	$	11,026	$	67		$	(65	)	$	2
Cleared derivatives	1,965		4			1			5
Liability positions with credit exposure:
Cleared derivatives	11,030		(94		)	140			46
Total derivative positions with non-member counterparties to which the Bank had credit exposure	24,021		(23		)	76			53
Member institutions (1)	44		—			—			—
Total	$	24,065	$	(23	)	$	76		$	53

____________ 

⁽¹⁾ Collateral held with respect to derivatives with member institutions where the Bank is acting as an intermediary represents the amount of eligible collateral physically held by or on behalf of the Bank or collateral assigned to the Bank, as evidenced by a written security agreement, and held by the member institution for the benefit of the Bank.

Certain of the Bank's bilateral derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is a deterioration in the Bank's credit rating. If the Bank’s credit ratings had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver up to an additional $114 million of collateral at fair value to its derivative counterparties as of September 30, 2014.

The net exposure after collateral is treated as unsecured credit consistent with the Bank's RMP and Finance Agency regulations if the counterparty has an NRSRO rating. If the counterparty does not have an NRSRO rating, the Bank requires collateral for the full amount of the exposure.

Mortgage Loan Programs

The Bank seeks to manage the credit risk associated with the Mortgage Purchase Program (MPP) and the Mortgage Partnership Finance^® Program (MPF^® Program or MPF) by maintaining underwriting and eligibility standards and structuring possible losses into several layers to be shared with the participating financial institutions. In some cases, a portion of the credit support for MPP and MPF loans is provided under a primary and/or supplemental mortgage insurance policy. Currently, eight mortgage insurance companies provide primary and/or supplemental mortgage insurance for loans in which the Bank has a retained interest. As of September 30, 2014, all of the Bank’s mortgage insurance providers have been rated below "A" by one or more

63

NRSROs for their claims paying ability or insurer financial strength. Ratings downgrades imply an increased risk that these mortgage insurers may be unable to fulfill their obligations to pay claims that may be made under the insurance policies. The Bank holds additional risk-based capital to mitigate the incremental risk, if any, that results from the supplemental mortgage insurance providers.

As of September 30, 2014 and December 31, 2013, the allowance for credit losses on MPF loans was $4 millionand $11 million, respectively. The decrease in the allowance for credit losses was related to certain enhancements to the Bank's allowance for credit loss calculation. For additional information related to the Bank's allowance for credit losses policy, see Note 1—Basis of Presentation to the Bank’s interim financial statements.

Critical Accounting Policies and Estimates

During the three-month period ended March 31, 2014, the Bank made certain enhancements to its allowance for credit loss calculation related to the Bank’s conventional single-family residential mortgage loan portfolio.  The allowance for conventional single-family residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups.  For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics.  For loans that are more than 60 days past due, the allowance is determined using an automated valuation model.  Inherent in the Bank’s evaluation of loan performance is an analysis of various credit enhancements at the individual master commitment level to determine the credit enhancement available to recover losses on conventional single-family residential mortgage loans under each individual master commitment. 

Additionally, during the three-month period ended March 31, 2014, the Bank began to classify as a loss and charge-off the portion of outstanding conventional single-family residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements, once the loans are 180 days delinquent. These changes did not have a material effect on the Bank's financial condition or results of operations.

A description of the Bank’s critical accounting policies and estimates is contained in detail in the Bank’s Form 10-K. There have been no material changes to these policies and estimates during the period reported.

Recently Issued and Adopted Accounting Guidance

See Note 2–Recently Issued and Adopted Accounting Guidance to the Bank’s interim financial statements for a discussion of recently issued and adopted accounting guidance.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The following quantitative and qualitative disclosures about market risk should be read in conjunction with the quantitative and qualitative disclosures about market risk that are included in the Bank’s Form 10-K. The information provided herein is intended to update the disclosures made in the Bank’s Form 10-K.

Changes in interest rates and spreads can have a direct effect on the value of the Bank’s assets and liabilities. As a result of the volume of the Bank’s interest-earning assets and interest-bearing liabilities, the component of market risk having the greatest effect on the Bank’s financial condition and results of operations is interest-rate risk. A description of the Bank’s management of interest-rate risk is contained in the Bank’s Form 10-K.

The Bank uses derivative financial instruments to reduce the interest-rate risk exposure inherent in otherwise unhedged assets and funding positions. These derivatives are used to adjust the effective maturity, repricing frequency, or option characteristics of financial instruments to achieve risk management objectives.

64

The following table summarizes the notional amounts of derivative financial instruments (in millions). The category “Fair value hedges” represents hedge strategies for which hedge accounting is achieved. The category “non-qualifying hedges” represents hedge strategies for which the derivatives are not in designated hedge relationships that formally meet the hedge accounting requirements under GAAP.

			As of September 30, 2014		As of December 31, 2013
Hedged Item / Hedging Instrument	Hedging Objective	Hedge Accounting Designation	Notional Amount		Notional Amount
Advances
Pay fixed, receive variable interest rate swap (without options)	Converts the advance’s fixed rate to a variable rate index.	Fair value hedges	$	9,761	$	6,919
		Non-qualifying hedges	5		—
Pay fixed, receive variable interest rate swap (with options)	Converts the advance’s fixed rate to a variable rate index and offsets option risk in the advance.	Fair value hedges	22,056		23,715
		Non-qualifying hedges	40		740
Pay variable with embedded features, receive variable interest rate swap (non-callable)	Reduces interest rate sensitivity and repricing gaps by converting the advance’s variable rate to a different variable rate index and/or offsets embedded option risk in the advance.	Fair value hedges	527		3,522
Pay variable, receive variable basis swap	Reduces interest rate sensitivity and repricing gaps by converting the advance’s variable rate to a different variable rate index.	Non-qualifying hedges	135		145
		Total	32,524		35,041
Investments
Pay fixed, receive variable interest rate swap	Converts the investment’s fixed rate to a variable rate index.	Non-qualifying hedges	1,180		1,380
Pay variable, receive variable interest rate swap	Converts the investment’s variable rate to a different variable rate index.	Non-qualifying hedges	50		50
		Total	1,230		1,430
Consolidated Obligation Bonds
Receive fixed, pay variable interest rate swap (without options)	Converts the bond’s fixed rate to a variable rate index.	Fair value hedges	41,801		26,581
		Non-qualifying hedges	8,270		1,900
Receive fixed, pay variable interest rate swap (with options)	Converts the bond’s fixed rate to a variable rate index and offsets option risk in the bond.	Fair value hedges	22,049		23,983
		Non-qualifying hedges	33		—
Receive variable with embedded features, pay variable interest rate swap (callable)	Reduces interest rate sensitivity and repricing gaps by converting the bond’s variable rate to a different variable rate index and/or offsets embedded option risk in the bond.	Fair value hedges	10		20
Receive variable, pay variable basis swap	Reduces interest rate sensitivity and repricing gaps by converting the bond’s variable rate to a different variable rate index.	Non-qualifying hedges	25		25
		Total	72,188		52,509

65

			As of September 30, 2014		As of December 31, 2013
Hedged Item / Hedging Instrument	Hedging Objective	Hedge Accounting Designation	Notional Amount		Notional Amount
Consolidated Obligation Discount Notes
Receive fixed, pay variable interest rate swap	Converts the discount note's fixed rate to a variable rate index.	Fair value hedges	849		—
		Total	849		—
Balance Sheet
Pay fixed, receive variable interest rate swap	Converts the asset or liability fixed rate to a variable rate index.	Non-qualifying hedges	105		125
Interest rate cap or floor	Protects against changes in income of certain assets due to changes in interest rates.	Non-qualifying hedges	16,500		12,500
		Total	16,605		12,625
Intermediary Positions and Other
Pay fixed, receive variable interest rate swap, and receive-fixed, pay variable interest rate swap	To offset interest rate swaps executed with members by executing interest rate swaps with derivatives counterparties.	Non-qualifying hedges	118		49
Interest rate swaption	To offset swaptions executed with members by executing swaptions with derivatives counterparties.	Non-qualifying hedges	40		40
		Total	158		89
Total notional amount			$	123,554	$	101,694

66

Interest-rate Risk Exposure Measurement

The Bank measures interest-rate risk exposure by various methods, including calculating the effective duration and convexity of assets, liabilities, and equity under various scenarios, and calculating the theoretical market value of equity. Effective duration, normally expressed in years or months, measures the price sensitivity of the Bank's interest-bearing assets and liabilities to changes in interest rates. As effective duration lengthens, market-value changes become more sensitive to interest-rate changes. The Bank employs sophisticated modeling systems to measure effective duration.

Bank policy requires the Bank to maintain its effective duration of equity within a range of +5 years to -5 years, assuming current interest rates, and within a range of +7 years to -7 years, assuming an instantaneous parallel increase or decrease in market interest rates of 200 basis points.

The table below reflects the Bank’s effective duration exposure measurements as calculated in accordance with Bank policy (in years).

	As of September 30, 2014					As of December 31, 2013
	Up 200 Basis Points	Current		Down 200 Basis  Points (1)		Up 200 Basis Points	Current		Down 200 Basis  Points (1)
Assets	0.52	0.38		0.25		0.62	0.47		0.26
Liabilities	0.34	0.44		0.29		0.37	0.48		0.36
Equity	3.76	(0.71	)	(0.43	)	5.21	0.28		(1.44	)
Effective duration gap	0.18	(0.06	)	(0.04	)	0.25	(0.01	)	(0.10	)

____________ 

⁽¹⁾  The “down 200 basis points” scenarios shown above are considered to be “constrained shocks,” intended to prevent the possibility of negative interest rates when a designated low rate environment exists.

The Bank also analyzes its interest-rate risk and market exposure by evaluating the theoretical market value of equity. The market value of equity represents the net result of the present value of future cash flows discounted to arrive at the theoretical market value of each balance sheet item. By using the discounted present value of future cash flows, the Bank is able to factor in the various maturities of assets and liabilities, similar to the effective duration analysis discussed above. The Bank determines the theoretical market value of assets and liabilities utilizing a Level 3 pricing approach as more fully described in Note 14—Estimated Fair Values to the Bank's interim financial statements. The difference between the market value of total assets and the market value of total liabilities is the market value of equity. A more volatile market value of equity under different shock scenarios tends to result in a higher effective duration of equity, indicating increased sensitivity to interest rate changes.

The table below reflects the Bank’s market value of equity measurements as calculated in accordance with Bank policy (in millions).

	As of September 30, 2014						As of December 31, 2013
	Up 200 Basis Points		Current		Down 200 Basis Points (1)		Up 200 Basis Points		Current		Down 200 Basis Points (1)
Assets	$	121,709	$	122,808	$	123,279	$	118,940	$	120,261	$	120,863
Liabilities	115,310		116,202		116,558		112,686		113,632		114,242
Equity	6,399		6,606		6,721		6,254		6,629		6,621

____________ 

⁽¹⁾  The “down 200 basis points” scenarios shown above are considered to be “constrained shocks,” intended to prevent the possibility of negative interest rates when a designated low rate environment exists.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The Bank's President and Chief Executive Officer and the Bank's Executive Vice President and Chief Financial Officer (Certifying Officers) are responsible for establishing and maintaining a system of disclosure controls and procedures designed to ensure that information required to be disclosed by the Bank in the reports filed or submitted under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

67

As of September 30, 2014, the Bank's management, with the participation of the Certifying Officers has evaluated the effectiveness of the design and operation of its disclosure controls and procedures. Based on that evaluation, the Certifying Officers have concluded that the Bank's disclosure controls and procedures (as defined in Rules 13a-15(a) and 15d-15(e) under the Exchange Act) were effective to provide reasonable assurance that information required to be disclosed by the Bank in the reports that it files or submits under the Exchange Act (1) is accumulated and communicated to the Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure; and (2) is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.

In designing and evaluating the Bank's disclosure controls and procedures, the Bank's Certifying Officers recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Changes in Internal Control Over Financial Reporting

During the third quarter of 2014, there were no changes in the Bank's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Bank's internal control over financial reporting.

68

PART II. OTHER INFORMATION.

Item 1. Legal Proceedings.

The Bank is subject to various legal proceedings and actions from time to time in the ordinary course of its business. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of those matters presently known to the Bank will have a material adverse effect on the Bank’s financial condition or results of operations.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, the factors discussed in Part I, “Item 1A. Risk Factors” in the Bank’s Form 10-K, should be carefully considered as they could materially affect the Bank’s business, financial condition or future results. The risks described in the Bank’s Form 10-K are not the only risks facing the Bank. Additional risks and uncertainties not currently known to the Bank or that the Bank currently deems to be immaterial also may materially adversely affect the Bank’s business, financial condition, and/or operating results.

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

Not applicable.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosure.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit No.		Description
3.1		Amended and Restated Organization Certificate of the Federal Home Loan Bank of Atlanta1
3.2		Bylaws of the Federal Home Loan Bank of Atlanta (Revised and Restated through October 25, 2012)1
4.1		Capital Plan of the Federal Home Loan Bank of Atlanta2
31.1		Certification of the President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of the Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		Unaudited financial statements from the Quarterly Report on Form 10-Q of Federal Home Loan Bank of Atlanta for the quarter ended September 30, 2014, filed on November 7, 2014, formatted in XBRL: (i) the Statements of Condition, (ii) Statements of Income, (iii) the Statements of Capital, (iv) the Statements of Cash Flows and (v) the Notes to Financial Statements.
1	Filed on October 26, 2012 with the SEC in the Bank's Form 8-K and incorporated herein by reference.
2	Filed on August 5, 2011 with the SEC in the Bank's Form 8-K and incorporated herein by reference.

69

SIGNATURES

Pursuant to the requirements of Section 12 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 Atlanta
Date:	November 7, 2014	By/s/ W. Wesley McMullan
		Name: W. Wesley McMullan     Title: President and Chief Executive Officer
Date:	November 7, 2014	By/s/Kirk R. Malmberg
		Name: Kirk R. Malmberg     Title: Executive Vice President and Chief Financial Officer

70

EX-31.1

EXHIBIT 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, W. Wesley McMullan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of the Federal Home Loan Bank of Atlanta;

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. The registrant’s other certifying officer and I are 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. The registrant’s other certifying officer and I have disclosed, based on our 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.

Date:	November 7, 2014	/s/ W. Wesley McMullan
		W. Wesley McMullan
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kirk R. Malmberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of the Federal Home Loan Bank of Atlanta;

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. The registrant’s other certifying officer and I are 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. The registrant’s other certifying officer and I have disclosed, based on our 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.

Date:	November 7, 2014	/s/ Kirk R. Malmberg
		Kirk R. Malmberg
		Executive Vice President and
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification 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 Atlanta (the “Registrant”) for the period ended September 30, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), W. Wesley McMullan, President and Chief Executive Officer of the Bank, and Kirk R. Malmberg, Executive Vice President and Chief Financial Officer of the Bank, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1. The Registrant’s 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 Registrant.

Date:	November 7, 2014	/s/ W. Wesley McMullan
		W. Wesley McMullan
		President and Chief Executive Officer
		/s/ Kirk R. Malmberg
		Kirk R. Malmberg
		Executive Vice President and
		Chief Financial Officer

The foregoing certification will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

XML

Basis of Presentation Reclassification (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014 Scenario, Previously Reported [Member]	Jun. 30, 2014 Scenario, Previously Reported [Member]	Mar. 31, 2014 Scenario, Actual [Member]	Jun. 30, 2014 Scenario, Actual [Member]
Increase (Decrease) in Other Operating Liabilities	$ (37)	$ 1	$ (320)	$ (322)	$ (11)	$ (13)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	34	62	(304)	(304)	5	5
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	247	290	(227)	(165)	82	144
Purchases of long-term	(3,022)	(6,042)	(1,436)	(1,664)	(1,745)	(1,973)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	$ (2,069)	$ 10,606	$ 331	$ (9,201)	$ 22	$ (9,510)

XML

Advances (Details 1) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Advances [Abstract]
Overdrawn demand deposit accounts	$ 0	$ 2
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months	50,223	54,522
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two	10,886	5,414
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three	8,203	5,867
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four	4,872	6,643
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five	2,787	4,168
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five	10,113	11,266
Federal Home Loan Bank, Advances, Par Value	$ 87,084	$ 87,882

XML

Held-to-maturity Securities (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of non-mortgage backed held-to-maturity securities	$ 21,082	$ 20,176
Amortized cost of held-to-maturity securities	21,082	20,176
Held-to-maturity Securities, Fair Value	21,141	20,146
Non-mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securites due in one year or less	568	430
Amortized cost of held-to-maturity securites due after one year through five years	4,429	3,400
Amortized cost of non-mortgage backed held-to-maturity securities	4,997	3,830
Fair value of held-to-maturity securites due in one year or less	568	430
Fair value of held-to-maturity securites due after one year through five years	4,416	3,377
Held-to-maturity Securities, Fair Value	4,984	3,807
Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of mortgage-backed held-to-maturity securities	16,085	16,346
Fair value of mortgage-backed securities	$ 16,157	$ 16,339

XML

Capital and Mandatorily Redeemable Capital Stock (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Activity In Mandatorily Redeemable Capital Stock
Balance, beginning of year	$ 21	$ 25	$ 24	$ 40
Attainment of nonmember status	3	1	5	8
Repayments of Mandatory Redeemable Capital Securities	5	2	9	24
Capital stock previously subject to mandatory redemption reclassified to capital	0	0	(1)	0
Balance, end of year	$ 19	$ 24	$ 19	$ 24

XML

Advances (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Advances [Abstract]
Federal Home Loan Bank, Advances, Fixed Rate, under One Year	$ 34,599	$ 46,343
Federal Home Loan Bank, Advances, Fixed Rate, after One Year	29,691	28,535
Federal Home Loan Bank, Advances, Fixed Rate	64,290	74,878
Federal Home Loan Bank, Advances, Floating Rate, under One Year	12,505	4,990
Federal Home Loan Bank, Advances, Floating Rate, after One Year	10,289	8,014
Federal Home Loan Bank, Advances, Floating Rate	22,794	13,004
Federal Home Loan Bank, Advances, Par Value	$ 87,084	$ 87,882

XML

Estimated Fair Values (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Assets:
Trading securities	$ 1,428		$ 1,667
Available-for-sale securities	2,073		2,299
Derivative assets	118		53
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[1]	(806)	[1]
Liabilities:
Derivative liabilities	(180)		(187)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[1]	2,487	[1]
Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,366		1,601
Other FHLBank's Bond [Member]
Assets:
Trading securities	61	[2]	65	[2]
State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	1		1
Private-label MBS
Assets:
Available-for-sale securities	2,073		2,299
Fair Value, Measurements, Recurring [Member]
Assets:
Trading securities	0		0
Available-for-sale securities	0		0
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[3]	(806)	[3]
Grantor trust assets (included in Other assets)	0		0
Liabilities:
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[3]	2,487	[3]
Fair Value, Measurements, Recurring [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Private-label MBS
Assets:
Available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Trading securities	0		0
Available-for-sale securities	0		0
Derivative assets	0		0
Grantor trust assets (included in Other assets)	24		21
Total assets at fair value	24		21
Liabilities:
Derivative liabilities	0		0
Total liabilities at fair value	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Private-label MBS
Assets:
Available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Trading securities	1,428		1,667
Available-for-sale securities	0		0
Derivative assets	586		859
Grantor trust assets (included in Other assets)	0		0
Total assets at fair value	2,014		2,526
Liabilities:
Derivative liabilities	(2,112)		(2,674)
Total liabilities at fair value	(2,112)		(2,674)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,366		1,601
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	61		65
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	1		1
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Private-label MBS
Assets:
Available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Trading securities	0		0
Available-for-sale securities	2,073		2,299
Derivative assets	0		0
Grantor trust assets (included in Other assets)	0		0
Total assets at fair value	2,073		2,299
Liabilities:
Derivative liabilities	0		0
Total liabilities at fair value	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Private-label MBS
Assets:
Available-for-sale securities	2,073		2,299
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets:
Trading securities	1,428		1,667
Grantor trust assets (included in Other assets)	24		21
Total assets at fair value	3,643		4,040
Liabilities:
Total liabilities at fair value	(180)		(187)
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,366		1,601
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	61		65
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	1		1
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Private-label MBS
Assets:
Available-for-sale securities	2,073		2,299
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Derivative assets	0		0
Liabilities:
Derivative liabilities	0		0
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Derivative assets	586		859
Liabilities:
Derivative liabilities	(2,112)		(2,674)
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Derivative assets	0		0
Liabilities:
Derivative liabilities	0		0
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Assets:
Derivative assets	118		53
Liabilities:
Derivative liabilities	$ (180)		$ (187)

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

[2] The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.

[3] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

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Held-to-maturity Securities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	$ 21,082	$ 20,176
Held To Maturity Securities Accumulated Unrecognized Holding Gain	147	129
Held To Maturity Securities Accumulated Unrecognized Holding Loss	88	159
Held-to-maturity Securities, Fair Value	21,141	20,146
State or Local Housing Agency Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	84	92
Held To Maturity Securities Accumulated Unrecognized Holding Gain	1	1
Held To Maturity Securities Accumulated Unrecognized Holding Loss	0	0
Held-to-maturity Securities, Fair Value	85	93
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	4,913	3,738
Held To Maturity Securities Accumulated Unrecognized Holding Gain	2	0
Held To Maturity Securities Accumulated Unrecognized Holding Loss	16	24
Held-to-maturity Securities, Fair Value	4,899	3,714
Mortgage-backed Securities, U.S. Agency Obligations-Guaranteed
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	388	465
Held To Maturity Securities Accumulated Unrecognized Holding Gain	5	7
Held To Maturity Securities Accumulated Unrecognized Holding Loss	0	0
Held-to-maturity Securities, Fair Value	393	472
Mortgage-backed Securities, Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	14,104	13,952
Held To Maturity Securities Accumulated Unrecognized Holding Gain	126	109
Held To Maturity Securities Accumulated Unrecognized Holding Loss	62	115
Held-to-maturity Securities, Fair Value	14,168	13,946
Private-label MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	1,593	1,929
Held To Maturity Securities Accumulated Unrecognized Holding Gain	13	12
Held To Maturity Securities Accumulated Unrecognized Holding Loss	10	20
Held-to-maturity Securities, Fair Value	$ 1,596	$ 1,921

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Consolidated Obligations (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Consolidated Obligation Bonds by Interest-Rate Payment

Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate	$	76,029	$	59,885
Step up/down	6,776		7,617
Simple variable-rate	6,575		13,005
Variable-rate capped floater	35		45
Fixed-rate that converts to variable-rate	10		—
Total par value	$	89,425	$	80,552

Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity

Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity:

	As of September 30, 2014				As of December 31, 2013
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	50,245		0.20	$	41,725		0.50
Due after one year through two years	14,529			1.22	9,485			0.67
Due after two years through three years	9,418			2.21	7,503			2.21
Due after three years through four years	5,197			2.10	6,355			2.81
Due after four years through five years	3,116			1.53	5,150			1.67
Due after five years	6,920			2.02	10,334			1.92
Total par value	89,425			0.87	80,552			1.13
Premiums	75				82
Discounts	(23		)		(24		)
Hedging adjustments	193				118
Total	$	89,670			$	80,728

Callable and Noncallable Consolidated Obligations Bonds Outstanding

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature:

	As of September 30, 2014		As of December 31, 2013
Noncallable	$	66,566	$	56,569
Callable	22,859		23,983
Total par value	$	89,425	$	80,552

Summary of Callable Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity

The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date:

	As of September 30, 2014		As of December 31, 2013
Due or callable in one year or less	$	67,589	$	59,458
Due or callable after one year through two years	10,399		7,795
Due or callable after two years through three years	7,138		4,491
Due or callable after three years through four years	2,696		6,095
Due or callable after four years through five years	871		1,571
Due or callable after five years	732		1,142
Total par value	$	89,425	$	80,552

Consolidated Obligation Discount Notes

The Bank’s participation in consolidated obligation discount notes was as follows:

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of September 30, 2014	$	26,055	$	26,062	0.09
As of December 31, 2013	$	32,202	$	32,208	0.11

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Estimated Fair Values (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Reconciliation of Available-For-Sale Securities Measured at Fair Value
Included in net impairment losses recognized in earnings	$ 2				$ 3		$ 0
Fair Value, Inputs, Level 3 [Member] | Private-label MBS | Available-for-sale Securities
Reconciliation of Available-For-Sale Securities Measured at Fair Value
Balance, beginning of year	2,155		2,536		2,299		2,676
Transfer of private-label MBS from held-to-maturity to available-for-sale	0		0		0		11
Included in net impairment losses recognized in earnings	(2)	[1]	0	[1]	(3)	[1]	0	[1]
Included in other comprehensive income (2)	(3)	[1],[2]	16	[1],[2]	14	[1],[2]	141	[1],[2]
Accretion of credit losses in net interest income	8	[1]	4	[1]	24	[1]	5	[1]
Settlements	(85)		(158)		(261)		(435)
Balance, end of year	$ 2,073		$ 2,398		$ 2,073		$ 2,398

[1] Related to available-for-sale securities held at period end.

[2] This amount is included in other comprehensive income within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income.

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Derivatives and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	$ 123,554		$ 101,694
Derivative assets in hedges	549		800
Derivative liabilities in hedges	(1,897)		(2,336)
Derivative assets not designated as hedging instruments	37		59
Derivative liabilities not designated as hedging instruments	(215)		(338)
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	586		859
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(2,112)		(2,674)
Derivative Asset, Fair Value, Gross Liability	(404)		(741)
Derivative Liability, Fair Value, Gross Asset	404		741
Derivative Asset, Collateral, Obligation to Return Cash, Offset	(64)		(65)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	1,528		1,746
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[1]	(806)	[1]
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[1]	2,487	[1]
Derivative assets	118		53
Derivative liabilities	(180)		(187)
Interest rate swaps
Derivative [Line Items]
Derivative assets in hedges	549		800
Derivative liabilities in hedges	(1,897)		(2,336)
Derivative assets not designated as hedging instruments	13		14
Derivative liabilities not designated as hedging instruments	(199)		(309)
Interest Rate Swaption [Member]
Derivative [Line Items]
Derivative assets not designated as hedging instruments	0		1
Derivative liabilities not designated as hedging instruments	0		(1)
Interest rate caps or floors
Derivative [Line Items]
Derivative assets not designated as hedging instruments	24		44
Derivative liabilities not designated as hedging instruments	(16)		(28)
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	97,053		84,740
Designated as Hedging Instrument [Member] | Interest rate swaps
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	97,053		84,740
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	26,501		16,954
Not Designated as Hedging Instrument [Member] | Interest rate swaps
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	9,961		4,414
Not Designated as Hedging Instrument [Member] | Interest Rate Swaption [Member]
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	40		40
Not Designated as Hedging Instrument [Member] | Interest rate caps or floors
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	$ 16,500		$ 12,500

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

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Mortgage Loans Held for Portfolio (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	$ 793				$ 931
Premiums	3				3
Discounts	(4)				(5)
Total	792				929
Conventional loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	737				864
Government Mortgage Loan [Member]
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	56				67
Fixed-rate medium-term single-family residential mortgage loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	113	[1]			150	[1]
Mortgage loans on real estate, original contract terms	15 years	[1]	15 years	[1]
Fixed-rate long-term single-family residential mortgage loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	$ 680				$ 781

[1] Medium-term is defined as a term of 15 years or less.

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Derivatives and Hedging Activities (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	$ 586		$ 859
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(2,112)		(2,674)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[1]	(806)	[1]
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[1]	2,487	[1]
Net positive credit exposure after cash collateral	118		53
Derivative liabilities	(180)		(187)
Credit Risk Contract [Member]
Derivatives, Fair Value [Line Items]
Credit Derivative Exposure Net	118		47
Over the Counter [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	532		820
Derivative Liability, Fair Value, Gross Liability	(1,825)		(2,545)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(532)		(818)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,645		2,358
Net positive credit exposure after cash collateral	0		2
Derivative liabilities	(180)		(187)
Noncash collateral pledged that cannot be resold or repledged	1		0
Exchange Cleared [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	54		39
Derivative Liability, Fair Value, Gross Liability	(287)		(129)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	64		12
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	287		129
Net positive credit exposure after cash collateral	118	[2]	51	[2]
Derivative liabilities	$ 0		$ 0

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

[2] The Bank had net credit exposure of $118 and $47 as of September 30, 2014 and December 31, 2013, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.

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Estimated Fair Values (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Jun. 30, 2014	Dec. 31, 2013		Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Assets:
Trading securities	$ 1,428			$ 1,667
Available-for-sale securities	2,073			2,299
Held-to-maturity securities	21,141			20,146
Derivative assets	118			53
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[1]		(806)	[1]
Consolidated obligations:
Mandatorily redeemable capital stock	(19)		(21)	(24)		(24)	(25)	(40)
Derivative liabilities	(180)			(187)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[1]		2,487	[1]
Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	0			0
Interest bearing-deposits	0			0
Securities purchased under agreements to resell	0
Federal funds sold	0			0
Trading securities	0			0
Available-for-sale securities	0			0
Held-to-maturity securities	0			0
Advances	0			0
Mortgage loans held for portfolio, net	0			0
Accrued interest receivable	0			0
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(468)	[2]		(806)	[2]
Grantor trust assets (included in Other assets)	0			0
Liabilities:
Interest-bearing deposits	0			0
Consolidated obligations:
Discount notes	0
Bonds	0
Mandatorily redeemable capital stock	0			0
Accrued interest payable	0			0
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,932	[2]		2,487	[2]
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	4,386			4,374
Interest bearing-deposits	0			0
Securities purchased under agreements to resell	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	0			0
Accrued interest receivable	0			0
Derivative assets	0			0
Grantor trust assets (included in Other assets)	24			21
Liabilities:
Interest-bearing deposits	0			0
Consolidated obligations:
Mandatorily redeemable capital stock	(19)			(24)
Accrued interest payable	0			0
Derivative liabilities	0			0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	0			0
Interest bearing-deposits	1,010			1,007
Securities purchased under agreements to resell	455
Federal funds sold	4,095			1,795
Trading securities	1,428			1,667
Available-for-sale securities	0			0
Held-to-maturity securities	19,545			18,225
Advances	88,699			89,413
Mortgage loans held for portfolio, net	871			1,004
Accrued interest receivable	184			199
Derivative assets	586			859
Grantor trust assets (included in Other assets)	0			0
Liabilities:
Interest-bearing deposits	(1,271)			(1,752)
Consolidated obligations:
Mandatorily redeemable capital stock	0			0
Accrued interest payable	(202)			(183)
Derivative liabilities	(2,112)			(2,674)
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	0			0
Interest bearing-deposits	0			0
Securities purchased under agreements to resell	0
Federal funds sold	0			0
Trading securities	0			0
Available-for-sale securities	2,073			2,299
Held-to-maturity securities	1,596			1,921
Advances	0			0
Mortgage loans held for portfolio, net	0			0
Accrued interest receivable	0			0
Derivative assets	0			0
Grantor trust assets (included in Other assets)	0			0
Liabilities:
Interest-bearing deposits	0			0
Consolidated obligations:
Mandatorily redeemable capital stock	0			0
Accrued interest payable	0			0
Derivative liabilities	0			0
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	4,386			4,374
Interest bearing-deposits	1,010			1,007
Securities purchased under agreements to resell	455
Federal funds sold	4,095			1,795
Trading securities	1,428			1,667
Available-for-sale securities	2,073			2,299
Held-to-maturity securities	21,082			20,176
Advances	88,627			89,588
Mortgage loans held for portfolio, net	788			918
Accrued interest receivable	184			199
Derivative assets	118			53
Grantor trust assets (included in Other assets)	24			21
Liabilities:
Interest-bearing deposits	(1,271)			(1,752)
Consolidated obligations:
Mandatorily redeemable capital stock	(19)			(24)
Accrued interest payable	(202)			(183)
Derivative liabilities	(180)			(187)
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	4,386			4,374
Interest bearing-deposits	1,010			1,007
Securities purchased under agreements to resell	455
Federal funds sold	4,095			1,795
Trading securities	1,428			1,667
Available-for-sale securities	2,073			2,299
Held-to-maturity securities	21,141			20,146
Advances	88,699			89,413
Mortgage loans held for portfolio, net	871			1,004
Accrued interest receivable	184			199
Derivative assets	118			53
Grantor trust assets (included in Other assets)	24			21
Liabilities:
Interest-bearing deposits	1,271			1,752
Consolidated obligations:
Mandatorily redeemable capital stock	(19)			(24)
Accrued interest payable	(202)			(183)
Derivative liabilities	(180)			(187)
Discount Notes [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes				0
Discount Notes [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	0			0
Discount Notes [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	(26,055)			(32,203)
Discount Notes [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	0			0
Discount Notes [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	(26,055)			(32,202)
Discount Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	(26,055)			(32,203)
Unsecured Debt [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds				0
Unsecured Debt [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	0			0
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	(89,912)			(80,733)
Unsecured Debt [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	0			0
Unsecured Debt [Member] | Carrying Value [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	(89,670)			(80,728)
Unsecured Debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	(89,912)			(80,733)
Interest rate swaps | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Derivative assets	0			0
Consolidated obligations:
Derivative liabilities	0			0
Interest rate swaps | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Derivative assets	586			859
Consolidated obligations:
Derivative liabilities	(2,112)			(2,674)
Interest rate swaps | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Derivative assets	0			0
Consolidated obligations:
Derivative liabilities	$ 0			$ 0

[1] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

[2] Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

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Derivatives and Hedging Activities (Details Textual) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative credit-risk-related contingent features net liability position aggregate fair value	$ 1,357
Collateral already posted, aggregate fair value	1,180
Additional collateral	$ 114

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Capital and Mandatorily Redeemable Capital Stock (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Equity [Abstract]
Due in one year or less	$ 4		$ 5
Due after one year through two years	8		9
Due after two years through three years	6		8
Due after three years through four years	0		1
Due after four years through five years	1		0
Due after five years	0		1
Mandatorily redeemable capital stock	$ 19	$ 21	$ 24	$ 24	$ 25	$ 40

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Basis of Presentation Reclassification (Tables)

9 Months Ended

Sep. 30, 2014

Reclassification [Abstract]

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

Revision

During the three-month period ended September 30, 2014, the Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for those periods. After evaluating the quantitative and qualitative aspects of the classification error, the Bank determined that the error was not material to the previously issued Statements of Cash Flows. Accordingly, the classification error has been corrected in this Quarterly Report on Form 10-Q. The correction had no impact on the Bank’s financial condition or results of operations for any period.

The following table summarizes the revisions made to the Bank’s Statement of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014:

	For the Three Months Ended March 31, 2014						For the Six Months Ended June 30, 2014
	As Originally Reported			As Revised			As Originally Reported			As Revised
Operating activities
Net change in:
Other liabilities	$	(320	)	$	(11	)	$	(322	)	$	(13	)
Total adjustments	(304		)	5			(304		)	5
Net cash (used in) provided by operating activities	(227		)	82			(165		)	144
Investing activities
Held-to-maturity securities:
Purchases of long-term	(1,436		)	(1,745		)	(1,664		)	(1,973		)
Net cash provided by (used in) investing activities	331			22			(9,201		)	(9,510		)

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Other-than-temporary Impairment Other-than-temporary Impairment (Details)	3 Months Ended
	Sep. 30, 2014
Prime [Member] | Two Thousand Five [Member]
Other Than Temporary Impairment Credit Losses Recognized [Abstract]
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate	15.79%
Significant Inputs Weighted Average Percentage Rate Default Rate	7.96%
Significant Inputs Weighted Average Percentage Rate, Loss Severities	32.82%
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement	0.16%
Alt A [Member] | Two Thousand and Seven [Member]
Other Than Temporary Impairment Credit Losses Recognized [Abstract]
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate	13.49%
Significant Inputs Weighted Average Percentage Rate Default Rate	26.94%
Significant Inputs Weighted Average Percentage Rate, Loss Severities	40.27%
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement	0.00%

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Available-for-sale Securities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Mar. 31, 2013 Transferred During First Quarter Private-Label MBS Transferred [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of available-for-sale securities			$ 12
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income			1
Estimated fair value of available-for-sale securities	$ 2,073	$ 2,299	$ 11

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Derivatives and Hedging Activities (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	$ 185		$ 124		$ 160		$ 786
Gains (Losses) on Hedged Item	(107)		(85)		(31)		(652)
Net Fair Value Hedge Ineffectiveness	78		39		129		134
Effect of Derivatives on Net Interest Income	(111)	[1]	(109)	[1]	(288)	[1]	(328)	[1]
Advances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	319		114		80		1,486
Gains (Losses) on Hedged Item	(243)		(68)		47		(1,333)
Net Fair Value Hedge Ineffectiveness	76		46		127		153
Effect of Derivatives on Net Interest Income	(229)	[1]	(259)	[1]	(671)	[1]	(797)	[1]
Unsecured Debt [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	(134)		10		80		(700)
Gains (Losses) on Hedged Item	136		(17)		(78)		681
Net Fair Value Hedge Ineffectiveness	2		(7)		2		(19)
Effect of Derivatives on Net Interest Income	$ 118	[1]	$ 150	[1]	$ 383	[1]	$ 469	[1]

[1] The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

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Estimated Fair Values (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition:

	As of September 30, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,366		$	—	$	—		$	1,366
Another FHLBank’s bond	—		61			—		—			61
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,428			—		—			1,428
Available-for-sale securities:
Private-label residential MBS	—		—			2,073		—			2,073
Derivative assets:
Interest-rate related	—		586			—		(468		)	118
Grantor trust (included in Other assets)	24		—			—		—			24
Total assets at fair value	$	24	$	2,014		$	2,073	$	(468	)	$	3,643
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)
Total liabilities at fair value	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

	As of December 31, 2013
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,601		$	—	$	—		$	1,601
Another FHLBank’s bond	—		65			—		—			65
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,667			—		—			1,667
Available-for-sale securities:
Private-label residential MBS	—		—			2,299		—			2,299
Derivative assets:
Interest-rate related	—		859			—		(806		)	53
Grantor trust (included in Other assets)	21		—			—		—			21
Total assets at fair value	$	21	$	2,526		$	2,299	$	(806	)	$	4,040
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)
Total liabilities at fair value	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

Reconciliation of Available-For-Sale Securities Measured at Fair Value

The following table presents a reconciliation of available-for-sale securities that are measured at fair value using significant unobservable inputs (Level 3):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	2,155		$	2,536		$	2,299		$	2,676
Transfer of private-label MBS from held-to-maturity to available-for-sale	—			—			—			11
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(2		)	—			(3		)	—
Included in other comprehensive income (2)	(3		)	16			14			141
Accretion of credit losses in net interest income	8			4			24			5
Settlements	(85		)	(158		)	(261		)	(435		)
Balance, end of period	$	2,073		$	2,398		$	2,073		$	2,398

____________ 

⁽¹⁾  Related to available-for-sale securities held at period end.

⁽²⁾  This amount is included in other comprehensive income within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income.

Financial Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The following table presents the Bank's assets that are measured at fair value on a nonrecurring basis on its Statements of Condition only as of the dates shown:

	As of September 30, 2014		As of December 31, 2013
Real estate owned	$	6	$	9

Carrying Values and Estimated Fair Values

The carrying values and estimated fair values of the Bank’s financial instruments were as follows:

	As of September 30, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,386		$	4,386		$	4,386		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	455			455			—			455			—		—
Federal funds sold	4,095			4,095			—			4,095			—		—
Trading securities	1,428			1,428			—			1,428			—		—
Available-for-sale securities	2,073			2,073			—			—			2,073		—
Held-to-maturity securities	21,082			21,141			—			19,545			1,596		—
Advances	88,627			88,699			—			88,699			—		—
Mortgage loans held for portfolio, net	788			871			—			871			—		—
Accrued interest receivable	184			184			—			184			—		—
Derivative assets	118			118			—			586			—		(468		)
Grantor trust assets (included in Other assets)	24			24			24			—			—		—
Liabilities:
Interest-bearing deposits	(1,271		)	(1,271		)	—			(1,271		)	—		—
Consolidated obligations, net:
Discount notes	(26,055		)	(26,055		)	—			(26,055		)	—		—
Bonds	(89,670		)	(89,912		)	—			(89,912		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(202		)	(202		)	—			(202		)	—		—
Derivative liabilities	(180		)	(180		)	—			(2,112		)	—		1,932

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

	As of December 31, 2013
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,374		$	4,374		$	4,374		$	—		$	—	$	—
Interest bearing-deposits	1,007			1,007			—			1,007			—		—
Federal funds sold	1,795			1,795			—			1,795			—		—
Trading securities	1,667			1,667			—			1,667			—		—
Available-for-sale securities	2,299			2,299			—			—			2,299		—
Held-to-maturity securities	20,176			20,146			—			18,225			1,921		—
Advances	89,588			89,413			—			89,413			—		—
Mortgage loans held for portfolio, net	918			1,004			—			1,004			—		—
Accrued interest receivable	199			199			—			199			—		—
Derivative assets	53			53			—			859			—		(806		)
Grantor trust assets (included in Other assets)	21			21			21			—			—		—
Liabilities:
Interest-bearing deposits	(1,752		)	(1,752		)	—			(1,752		)	—		—
Consolidated obligations, net:
Discount notes	(32,202		)	(32,203		)	—			(32,203		)	—		—
Bonds	(80,728		)	(80,733		)	—			(80,733		)	—		—
Mandatorily redeemable capital stock	(24		)	(24		)	(24		)	—			—		—
Accrued interest payable	(183		)	(183		)	—			(183		)	—		—
Derivative liabilities	(187		)	(187		)	—			(2,674		)	—		2,487

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Other-than-temporary Impairment (Details Textual)	9 Months Ended
	Sep. 30, 2014
Schedule of Projected Home Price Recovery Ranges [Line Items]
Minimum number of people under CBSA	10,000
Projected house price, decline rate	0.00%
Projected house price, increase rate	6.00%
Minimum
Schedule of Projected Home Price Recovery Ranges [Line Items]
Home price range	3.00%
Maximum
Schedule of Projected Home Price Recovery Ranges [Line Items]
Home price range	9.00%

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Consolidated Obligations (Details 4) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Short-term Debt [Line Items]
Federal Home Loan Bank, Consolidated Obligations, Discount Notes	$ 26,055	$ 32,202
Discount Notes [Member]
Short-term Debt [Line Items]
Federal Home Loan Bank, Consolidated Obligations, Discount Notes	26,055	32,202
Discount notes par value	$ 26,062	$ 32,208
Discount notes weighted average interest rate	0.09%	0.11%

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Allowance for Credit Losses (Details Textual) (Conventional Single-Family Residential Mortgage Loans, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Conventional Single-Family Residential Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan modification interest rate reduction period			36 months
Target housing expense ratio	31.00%		31.00%
Maximum loan reamortization period			40 years
Incremental interest rate reduction			0.125%
Interest rate floor on loan modifications			3.00%
Maximum loan modification interest rate reduction period if expense ratio is not met			36 months
Period of nonpayment of principal or interest constituting a default			60 days	60 days
Impaired Financing Receivable, with or without Related Allowance, Interest Income, Accrual Method	$ 1	$ 1	$ 1	$ 1

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Held-to-maturity Securities (Details 1) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014 positions	Dec. 31, 2013 positions
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	27	114
Number of unrealized loss positions held more than 12 months	83	19
Total number of unrealized loss positions	110	133
Estimated fair value of unrealized loss positions held less than 12 months	$ 873	$ 6,719
Estimated fair value of unrealized loss positions held 12 months or more	4,811	388
Total estimated fair value of positions in an unrealized loss	5,684	7,107
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	4	144
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	84	15
Held To Maturity Securities Accumulated Unrecognized Holding Loss	88	159
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	4	9
Number of unrealized loss positions held more than 12 months	5	0
Total number of unrealized loss positions	9	9
Estimated fair value of unrealized loss positions held less than 12 months	399	1,970
Estimated fair value of unrealized loss positions held 12 months or more	1,129	0
Total estimated fair value of positions in an unrealized loss	1,528	1,970
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	24
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	15	0
Held To Maturity Securities Accumulated Unrecognized Holding Loss	16	24
Mortgage-backed Securities, Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	8	65
Number of unrealized loss positions held more than 12 months	47	1
Total number of unrealized loss positions	55	66
Estimated fair value of unrealized loss positions held less than 12 months	298	3,932
Estimated fair value of unrealized loss positions held 12 months or more	3,248	147
Total estimated fair value of positions in an unrealized loss	3,546	4,079
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2	108
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	60	7
Held To Maturity Securities Accumulated Unrecognized Holding Loss	62	115
Private-label MBS
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	15	40
Number of unrealized loss positions held more than 12 months	31	18
Total number of unrealized loss positions	46	58
Estimated fair value of unrealized loss positions held less than 12 months	176	817
Estimated fair value of unrealized loss positions held 12 months or more	434	241
Total estimated fair value of positions in an unrealized loss	610	1,058
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	12
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	9	8
Held To Maturity Securities Accumulated Unrecognized Holding Loss	$ 10	$ 20

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Recently Issued and Adopted Accounting Guidance

9 Months Ended

Sep. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued And Adopted Accounting Guidance

Recently Issued and Adopted Accounting Guidance

Recently Issued Accounting Guidance

Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In August 2014, the Financial Accounting Standards Board (FASB) issued guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. The guidance becomes effective for the Bank for the interim and annual periods ending after December 15, 2016, and early application is permitted. The adoption of this guidance will have no effect on the Bank's financial condition or results of operations.

Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. In August 2014, the FASB issued amended guidance related to the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2014, and may be adopted using either the modified retrospective transition method or the prospective transition method. The adoption of this guidance is not expected to materially effect the Bank’s financial condition or results of operations.

Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. In June 2014, the FASB issued amended guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings. Specifically, this guidance requires entities to account for (1) repurchase-to-maturity transactions as secured borrowings rather than as sales with forward repurchase agreements; and (2) repurchase agreements executed contemporaneously with the initial transfer of the underlying financial asset with the same counterparty as separate transactions only. In addition, this guidance requires a transferor to disclose additional information about certain transactions, including those in which it retains substantially all of the exposure to the economic returns of the underlying transferred asset over the transaction’s term. This guidance becomes effective for the Bank for the first interim or annual period beginning after December 15, 2014. The changes in accounting for transactions outstanding on the effective date are required to be presented on a cumulative-effect approach. The adoption of this guidance is not expected to materially effect the Bank’s financial condition or results of operations.

Revenue from Contracts with Customers. In May 2014, the FASB issued guidance on the recognition of revenue from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for public entities for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and will be applied retrospectively either to each prior reporting period or with a cumulative effect recognized at the date of initial application. The Bank is in the process of evaluating this guidance, but its effect on the Bank’s financial condition or results of operations is not expected to be material.

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. In January 2014, the FASB issued guidance intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized.The guidance clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This guidance is effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2014. The adoption of this guidance will result in increased disclosures, but is not expected to materially affect the Bank’s financial condition or results of operations.

Recently Adopted Accounting Guidance

Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date.In February 2013, the FASB issued guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. This guidance requires an entity to measure these obligations as the sum of (1) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (2) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The Bank adopted this guidance effective January 1, 2014. The adoption of this guidance did not have any effect on the Bank's financial condition or results of operations.

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Consolidated Obligations (Details Textual)	9 Months Ended
	Sep. 30, 2014 bank
Debt Disclosure [Abstract]
Number of Federal Home Loan Banks	12
Maximum contractual maturity period of discount notes (up to one year)	1 year

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Available-for-sale Securities (Details 1) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value of available-for-sale securities	$ 2,073	$ 2,299
Private-label MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of available-for-sale securities	1,934	2,174
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income	17	27
Gross unrealized gains on available-for-sale securities	156	152
Gross unrealized losses on available-for-sale securities	0	0
Estimated fair value of available-for-sale securities	$ 2,073	$ 2,299

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Other-than-Temporary Impairment (Tables)

9 Months Ended

Sep. 30, 2014

Other than Temporary Impairment Losses, Investments [Abstract]

Schedule of Significant Inputs in Measuring Other than Temporary Impairments Recognized in Earnings

The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended September 30, 2014, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rate	Default Rates	Loss Severities	Current Credit Enhancement
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
Prime:
2005	15.79	7.96	32.82	0.16
Alt-A:
2007	13.49	26.94	40.27	0.00

Schedule of Roll-Forward Cumulative Credit Losses Recognized

The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	559		$	584		$	574		$	586
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	2			—			3			—
Increase in cash flows expected to be collected, recognized over the remaining life of the securities	(9		)	(4		)	(25		)	(6		)
Balance, end of period	$	552		$	580		$	552		$	580

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Held-to-maturity Securities (Tables) (Categories of Investments, Marketable Securities, Held-to-maturity Securities [Member])

9 Months Ended

Sep. 30, 2014

Categories of Investments, Marketable Securities, Held-to-maturity Securities [Member]

Schedule of Held-to-maturity Securities [Line Items]

Schedule of Held-to-Maturity Securities

Major Security Types. Held-to-maturity securities were as follows:

	As of September 30, 2014								As of December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value
State or local housing agency debt obligations	$	84	$	1	$	—	$	85	$	92	$	1	$	—	$	93
Government-sponsored enterprises debt obligations	4,913		2		16		4,899		3,738		—		24		3,714
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	388		5		—		393		465		7		—		472
Government-sponsored enterprises residential	14,104		126		62		14,168		13,952		109		115		13,946
Private-label residential	1,593		13		10		1,596		1,929		12		20		1,921
Total	$	21,082	$	147	$	88	$	21,141	$	20,176	$	129	$	159	$	20,146

Schedule of Unrealized Loss on Investments

The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	As of September 30, 2014
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	4	$	399	$	1	5	$	1,129	$	15	9	$	1,528	$	16
Mortgage-backed securities:
Government-sponsored enterprises residential	8	298		2		47	3,248		60		55	3,546		62
Private-label residential	15	176		1		31	434		9		46	610		10
Total	27	$	873	$	4	83	$	4,811	$	84	110	$	5,684	$	88

	As of December 31, 2013
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	9	$	1,970	$	24	—	$	—	$	—	9	$	1,970	$	24
Mortgage-backed securities:
Government-sponsored enterprises residential	65	3,932		108		1	147		7		66	4,079		115
Private-label residential	40	817		12		18	241		8		58	1,058		20
Total	114	$	6,719	$	144	19	$	388	$	15	133	$	7,107	$	159

Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities by Contractual Maturity

	As of September 30, 2014				As of December 31, 2013
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	568	$	568	$	430	$	430
Due after one year through five years	4,429		4,416		3,400		3,377
Total non-mortgage-backed securities	4,997		4,984		3,830		3,807
Mortgage-backed securities	16,085		16,157		16,346		16,339
Total	$	21,082	$	21,141	$	20,176	$	20,146

Held-to-Maturity MBS Issued by Members or Affiliates of Members

A summary of held-to-maturity MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	490	$	3	$	4	$	489
As of December 31, 2013	$	619	$	4	$	8	$	615

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Advances (Details Textual) (USD $)	Sep. 30, 2014 Institutions	Dec. 31, 2013 Institutions
Advances [Abstract]
Advances to largest borrowers	$ 62,761,000,000	$ 65,472,000,000
Number of largest borrowers	10	10
Largest borrowers concentration in total advances	72.10%	74.50%
Allowance for credit losses on advances	0	0
Advances past due	$ 0	$ 0

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Available-for-sale Securities (Details 2) (Private-label MBS, USD $) In Millions, unless otherwise specified	Sep. 30, 2014 positions	Dec. 31, 2013 positions
Private-label MBS
Schedule of Available-for-sale Securities [Line Items]
Number of available-for-sale securities in unrealized loss position for less than 12 months	3	6
Number of available-for-sale securities in unrealized loss position for 12 months or more	9	10
Number of available-for-sale securities in unrealized loss position	12	16
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months	$ 135	$ 137
Estimated fair value of available-for-sale securities in unrealized loss position for 12 months or more	202	243
Estimated fair value of available-for-sale securities in unrealized loss position	337	380
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In AOCI	1	1
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In AOCI	16	26
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	$ 17	$ 27

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Advances (Tables)

9 Months Ended

Sep. 30, 2014

Advances [Abstract]

Advances Outstanding by Redemption Terms

The Bank had advances outstanding, as summarized below.

	As of September 30, 2014			As of December 31, 2013
Overdrawn demand deposit accounts	$	—		$	2
Due in one year or less	47,104			51,331
Due after one year through two years	11,049			5,366
Due after two years through three years	9,554			6,136
Due after three years through four years	6,241			8,495
Due after four years through five years	2,868			5,088
Due after five years	10,268			11,464
Total par value	87,084			87,882
Discount on AHP (1) advances	(7		)	(8		)
Discount on EDGE (2) advances	(6		)	(7		)
Hedging adjustments	1,560			1,726
Deferred commitment fees	(4		)	(5		)
Total	$	88,627		$	89,588

___________

⁽¹⁾ The Affordable Housing Program

⁽²⁾ The Economic Development and Growth Enhancement program

Advances by Year of Contractual Maturity or Next Conversion Date

The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date:

	As of September 30, 2014		As of December 31, 2013
Overdrawn demand deposit accounts	$	—	$	2
Due or convertible in one year or less	50,223		54,522
Due or convertible after one year through two years	10,886		5,414
Due or convertible after two years through three years	8,203		5,867
Due or convertible after three years through four years	4,872		6,643
Due or convertible after four years through five years	2,787		4,168
Due or convertible after five years	10,113		11,266
Total par value	$	87,084	$	87,882

Advances by Interest-Rate Payment Terms

The following table details interest-rate payment terms for advances:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate:
Due in one year or less	$	34,599	$	46,343
Due after one year	29,691		28,535
Total fixed-rate	64,290		74,878
Variable-rate:
Due in one year or less	12,505		4,990
Due after one year	10,289		8,014
Total variable-rate	22,794		13,004
Total par value	$	87,084	$	87,882

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Mortgage Loans Held for Portfolio (Tables)

9 Months Ended

Sep. 30, 2014

Mortgage Loans on Real Estate [Abstract]

Schedule of Mortgage Loans Held for Portfolio

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase:

	As of September 30, 2014			As of December 31, 2013
Fixed-rate medium-term (1)single-family residential mortgage loans	$	113		$	150
Fixed-rate long-term single-family residential mortgage loans	680			781
Total unpaid principal balance	793			931
Premiums	3			3
Discounts	(4		)	(5		)
Total	$	792		$	929

____________

⁽¹⁾Medium-term is defined as a term of 15 years or less.

Mortgage Loans Held for Portfolio by Collateral or Guarantee Type

The following table details the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type:

	As of September 30, 2014		As of December 31, 2013
Conventional loans	$	737	$	864
Government-guaranteed or insured loans	56		67
Total unpaid principal balance	$	793	$	931

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Basis of Presentation

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim financial statements of the Federal Home Loan Bank of Atlanta (Bank) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Actual results could be different from these estimates. The foregoing interim financial statements are unaudited; however, in the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods, have been included. The results of operations for interim periods are not necessarily indicative of results to be expected for the year ending December 31, 2014, or for other interim periods. The unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2013, which are contained in the Bank’s 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 14, 2014 (Form 10-K).

The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting arrangements or by operation of law. Additional information regarding derivative instruments is provided in Note 13—Derivatives and Hedging Activities to the Bank’s interim financial statements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented.

During the three-month period ended March 31, 2014, the Bank made certain enhancements to its allowance for credit loss calculation related to the Bank’s conventional single-family residential mortgage loan portfolio.  The allowance for conventional single-family residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups.  For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics.  For loans that are more than 60 days past due, the allowance is determined using an automated valuation model.  Inherent in the Bank’s evaluation of loan performance is an analysis of various credit enhancements at the individual master commitment level to determine the credit enhancement available to recover losses on conventional single-family residential mortgage loans under each individual master commitment. 

Additionally, during the three-month period ended March 31, 2014, the Bank began to classify as a loss and charge-off the portion of outstanding conventional single-family residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements, once the loans are 180 days delinquent. These changes did not have a material effect on the Bank's financial condition or results of operations.

A description of all of the Bank’s significant accounting policies is included in Note 2—Summary of Significant Accounting Policies to the 2013 audited financial statements contained in the Bank’s Form 10-K. There have been no material changes to these policies as of September 30, 2014.

Revision

During the three-month period ended September 30, 2014, the Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for those periods. After evaluating the quantitative and qualitative aspects of the classification error, the Bank determined that the error was not material to the previously issued Statements of Cash Flows. Accordingly, the classification error has been corrected in this Quarterly Report on Form 10-Q. The correction had no impact on the Bank’s financial condition or results of operations for any period.

The following table summarizes the revisions made to the Bank’s Statement of Cash Flows for the three-month period ended March 31, 2014 and the six-month period ended June 30, 2014:

	For the Three Months Ended March 31, 2014						For the Six Months Ended June 30, 2014
	As Originally Reported			As Revised			As Originally Reported			As Revised
Operating activities
Net change in:
Other liabilities	$	(320	)	$	(11	)	$	(322	)	$	(13	)
Total adjustments	(304		)	5			(304		)	5
Net cash (used in) provided by operating activities	(227		)	82			(165		)	144
Investing activities
Held-to-maturity securities:
Purchases of long-term	(1,436		)	(1,745		)	(1,664		)	(1,973		)
Net cash provided by (used in) investing activities	331			22			(9,201		)	(9,510		)

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Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2014

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses on Financing Receivables

The activity in the allowance for credit losses was as follows:

	For the Three Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	6		$	11		$	1		$	12
(Reversal) provision for credit losses	(2		)	1			—			1
Charge-offs	—			(1		)	—			(1		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

	For the Nine Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	11		$	10		$	1		$	11
(Reversal) provision for credit losses	(4		)	4			—			4
Charge-offs	(3		)	(3		)	—			(3		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

Allowance for Credit Losses and Recorded Investment by Impairment Methodology

The recorded investment in conventional single-family residential mortgage loans by impairment methodology was as follows:

	As of September 30, 2014		As of December 31, 2013
Allowance for credit losses:
Individually evaluated for impairment	$	1	$	2
Collectively evaluated for impairment	3		9
Total allowance for credit losses	$	4	$	11
Recorded investment:
Individually evaluated for impairment	$	15	$	15
Collectively evaluated for impairment	724		851
Total recorded investment	$	739	$	866

Past Due Financing Receivables

The tables below summarize the Bank's recorded investment in mortgage loans by these key credit quality indicators:

	As of September 30, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	21		$	6		$	27
Past due 60-89 days	7			2			9
Past due 90 days or more	35			5			40
Total past due mortgage loans	63			13			76
Total current mortgage loans	676			43			719
Total mortgage loans (1)	$	739		$	56		$	795
Other delinquency statistics:
In process of foreclosure (2)	$	21		$	2		$	23
Seriously delinquent rate (3)	4.65		%	9.27		%	4.98		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	34		$	—		$	34

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

	As of December 31, 2013
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	30		$	7		$	37
Past due 60-89 days	9			3			12
Past due 90 days or more	51			9			60
Total past due mortgage loans	90			19			109
Total current mortgage loans	776			48			824
Total mortgage loans (1)	$	866		$	67		$	933
Other delinquency statistics:
In process of foreclosure (2)	$	38		$	3		$	41
Seriously delinquent rate (3)	5.90		%	13.13		%	6.42		%
Past due 90 days or more and still accruing interest (4)	$	—		$	9		$	9
Loans on nonaccrual status (5)	$	51		$	—		$	51

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

Troubled Debt Restructurings on Financing Receivables

The table below presents the Bank's recorded investment balance in troubled debt restructured loans as of September 30, 2014 and December 31, 2013:

	Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	4	$	15

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

The following table shows troubled debt restructurings from the previous 12 months that subsequently defaulted during the periods presented. A payment default on a troubled debt restructuring is considered to have occurred if the contractually due principal or interest is 60 days or more past due at any time during the periods presented.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
Conventional single-family residential loans (1)	$	—	$	—	$	2	$	1

____________

⁽¹⁾ For purposes of this disclosure, only the initial default was included; however, a loan can experience another payment default in a subsequent period.

Impaired Financing Receivables

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for credit losses for impaired loans as of September 30, 2014 and December 31, 2013, and the average recorded investment on these loans during the three and nine months ended September 30, 2014 and 2013. Related interest income recognized on these loans during the three and nine months ended September 30, 2014 and 2013 was less than $1.

	As of September 30, 2014						As of December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance
Conventional single-family residential loans	$	8	$	8	$	—	$	—	$	—	$	—
With an allowance
Conventional single-family residential loans	7		7		1		15		15		2
Total	$	15	$	15	$	1	$	15	$	15	$	2

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
With no related allowance
Conventional single-family residential loans:
Average recorded investment	$	8	$	—	$	9	$	—
With an allowance
Conventional single-family residential loans:
Average recorded investment	7		13		7		13

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Commitments and Contingencies (Details Textual) (USD $)	Sep. 30, 2014 bank	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Number of Federal Home Loan Banks	12
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable	$ 701,462,000,000	$ 654,076,000,000
The value of guarantees related to standby letters of credit recorded in other liabilities	97,000,000	137,000,000
Bank unconditional commitments on closed mortgage loans	$ 0	$ 0

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Trading Securities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	$ 1,428		$ 1,667
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	1,366		1,601
Other FHLBank's Bond [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	61	[1]	65	[1]
State or Local Housing Agency Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	$ 1		$ 1

[1] The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.

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Advances (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Advances [Abstract]
Overdrawn demand deposit accounts	$ 0		$ 2
Federal Home Loan Bank, Advances, Maturities Summary, in Next Fiscal Year	47,104		51,331
Federal Home Loan Bank Advances, Maturities, Summary in Rolling Year Two	11,049		5,366
Federal Home Loan Bank, Advances, Maturities Summary, in Rolling Year Three	9,554		6,136
Federal Home Loan Bank Advances, Maturities, Summary In Rolling Year Four	6,241		8,495
Federal Home Loan Bank Advances, Maturities, Summary In Rolling Year Five	2,868		5,088
Federal Home Loan Bank Advances, Maturities, Summary After Rolling Year Five	10,268		11,464
Federal Home Loan Bank, Advances, Par Value	87,084		87,882
Federal Home Loan Bank, Advances, Discount on Affordable Housing Program	(7)	[1]	(8)	[1]
Discount on Economic Development and Growth Enhancement Program Advances	(6)	[2]	(7)	[2]
Hedging adjustments	1,560		1,726
Federal Home Loan Bank, Advances, Commitment Fees	(4)		(5)
Federal Home Loan Bank Advances	$ 88,627		$ 89,588

[1] The Affordable Housing Program

[2] The Economic Development and Growth Enhancement program

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Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Noncredit other-than-temporary impairment losses	$ 0	$ 0	$ 0		$ (1)
Noncredit other-than-temporary impairment losses transferred	0	0	0		(1)
Net change in fair value	(5)	16	11		141
Other comprehensive income related to pension and postretirement benefit plans	0	0	1	[1]	1	[1]
Pension and Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive (Loss) Income, Beginning of period	(12)	(16)	(13)		(17)
Net change in fair value	0	0	0
Other comprehensive income related to pension and postretirement benefit plans			1		1
Total other comprehensive income (loss)	0		1		1
Accumulated Other Comprehensive (Loss) Income, End of period	(12)	(16)	(12)		(16)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive (Loss) Income, Beginning of period	130	67	112		(58)
Noncredit other-than-temporary impairment losses					(1)
Noncredit other-than-temporary impairment losses transferred					0
Net change in fair value	(5)	16	11		141
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities	2		3
Total other comprehensive income (loss)	(3)		15		141
Accumulated Other Comprehensive (Loss) Income, End of period	127	83	127		83
Available-for-sale Securities | Noncredit Portion of Other Than Temporary Impairment Losses on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive (Loss) Income, Beginning of period	142	83	125		(41)
Noncredit other-than-temporary impairment losses transferred					(1)
Net change in fair value	(5)	16	11		141
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities	2		3
Other comprehensive income related to pension and postretirement benefit plans			0
Total other comprehensive income (loss)	(3)		14		140
Accumulated Other Comprehensive (Loss) Income, End of period	139	99	139		99
Held-to-maturity Securities [Member] | Noncredit Portion of Other Than Temporary Impairment Losses on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive (Loss) Income, Beginning of period	0	0	0		0
Noncredit other-than-temporary impairment losses					(1)
Noncredit other-than-temporary impairment losses transferred					1
Net change in fair value	0	0	0
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities			0
Other comprehensive income related to pension and postretirement benefit plans			0
Total other comprehensive income (loss)	0		0		0
Accumulated Other Comprehensive (Loss) Income, End of period	$ 0	$ 0	$ 0		$ 0

[1] Included in Compensation and benefits on the Statements of Income.

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Statements of Condition (Unaudited) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 4,386	$ 4,374
Interest-bearing deposits (including deposits with another FHLBank of $2 and $1 as of September 30, 2014 and December 31, 2013, respectively)	1,010	1,007
Securities purchased under agreements to resell	455	0
Federal funds sold	4,095	1,795
Trading securities (includes another FHLBank’s bond of $61 and $65 as of September 30, 2014 and December 31, 2013, respectively)	1,428	1,667
Available-for-sale securities	2,073	2,299
Held-to-maturity securities (fair value of $21,141 and $20,146 as of September 30, 2014 and December 31, 2013, respectively)	21,082	20,176
Total investment securities	24,583	24,142
Advances	88,627	89,588
Mortgage loans held for portfolio	792	929
Loans and Leases Receivable, Allowance	(4)	(11)
Total mortgage loans held for portfolio, net	788	918
Accrued interest receivable	184	199
Derivative assets	118	53
Premises and equipment, net	26	29
Other assets	165	211
Total assets	124,437	122,316
Liabilities
Interest-bearing deposits	1,271	1,752
Consolidated obligations, net:
Federal Home Loan Bank, Consolidated Obligations, Discount Notes	26,055	32,202
Bonds	89,670	80,728
Total consolidated obligations, net	115,725	112,930
Mandatorily redeemable capital stock	19	24
Accrued interest payable	202	183
Affordable Housing Program payable	69	74
Derivative liabilities	180	187
Other liabilities	451	514
Total liabilities	117,917	115,664
Commitments and contingencies (Note 15)
Capital
Total capital stock Class B putable	4,654	4,883
Retained earnings:
Restricted	184	141
Unrestricted	1,555	1,516
Total retained earnings	1,739	1,657
Accumulated other comprehensive income	127	112
Total capital	6,520	6,652
Total liabilities and capital	124,437	122,316
Subclass B1
Capital
Total capital stock Class B putable	727	946
Subclass B2
Capital
Total capital stock Class B putable	$ 3,927	$ 3,937

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Available-for-sale Securities (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value of available-for-sale securities	$ 2,073	$ 2,299
Bank of America Corporation, Charlotte, NC
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of available-for-sale securities	1,250	1,390
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income	16	26
Gross unrealized gains on available-for-sale securities	103	98
Gross unrealized losses on available-for-sale securities	0	0
Estimated fair value of available-for-sale securities	$ 1,337	$ 1,462

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Statements of Capital (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 6,652	$ 6,275
Issuance of capital stock			3,415	3,427
Repurchase/redemption of capital stock			(3,640)	(3,966)
Net shares reclassified to mandatorily redeemable capital stock			(4)	(8)
Comprehensive income	71	87	228	369
Cash dividends on capital stock			(131)	(84)
Ending balance	6,520	6,013	6,520	6,013
Capital Stock Class B Putable
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (shares)			49	49
Beginning balance			4,883	4,898
Issuance of capital stock (shares)			34	34
Issuance of capital stock			3,415	3,427
Repurchase/redemption of capital stock (shares)			(37)	(40)
Repurchase/redemption of capital stock			(3,640)	(3,966)
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Shares			0	0
Net shares reclassified to mandatorily redeemable capital stock			(4)	(8)
Ending balance (shares)	46	43	46	43
Ending balance	4,654	4,351	4,654	4,351
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			1,657	1,435
Comprehensive income			213	228
Cash dividends on capital stock			(131)	(84)
Ending balance	1,739	1,579	1,739	1,579
Retained Earnings, Restricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			141	73
Comprehensive income			43	46
Cash dividends on capital stock			0	0
Ending balance	184	119	184	119
Retained Earnings, Unrestricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			1,516	1,362
Comprehensive income			170	182
Cash dividends on capital stock			(131)	(84)
Ending balance	1,555	1,460	1,555	1,460
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			112	(58)
Comprehensive income			15	141
Ending balance	$ 127	$ 83	$ 127	$ 83

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Allowance for Credit Losses (Mortgage Loan Portfolio by Impairment Methodology) (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014		Jun. 30, 2014	Dec. 31, 2013		Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Total allowance for credit losses	$ 4			$ 11		$ 11	$ 12	$ 11
Total recorded investment	795	[1]		933	[2]
Conventional Single-Family Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses, individually evaluated for impairment	1			2
Allowance for credit losses, collectively evaluated for impairment	3			9
Total allowance for credit losses	4		6	11		11	11	10
Recorded investment, individually evaluated for impairment	15			15
Recorded investment, collectively evaluated for impairment	724			851
Total recorded investment	739	[1]		866	[2]
Government-Guaranteed or Insured Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Total recorded investment	$ 56	[1]		$ 67	[2]

[1] The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest.

[2] The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest.

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2014

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

Components Comprising Accumulated Other Comprehensive Loss

Components comprising accumulated other comprehensive income were as follows:

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities		Total  Accumulated Other Comprehensive Income
Balance, June 30, 2013	$	(16	)	$	83		$	—	$	67
Other comprehensive income before reclassifications:
Net change in fair value	—			16			—		16
Balance, September 30, 2013	$	(16	)	$	99		$	—	$	83
Balance, June 30, 2014	$	(12	)	$	142		$	—	$	130
Other comprehensive income before reclassifications:
Net change in fair value	—			(5		)	—		(5		)
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			2			—		2
Net current period other comprehensive loss	—			(3		)	—		(3		)
Balance, September 30, 2014	$	(12	)	$	139		$	—	$	127

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2012	$	(17	)	$	(41	)	$	—		$	(58	)
Other comprehensive income (loss) before reclassifications:
Noncredit other-than-temporary impairment losses	—			—			(1		)	(1		)
Noncredit other-than-temporary impairment losses transferred	—			(1		)	1			—
Net change in fair value	—			141			—			141
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			140			—			141
Balance, September 30, 2013	$	(16	)	$	99		$	—		$	83
Balance, December 31, 2013	$	(13	)	$	125		$	—		$	112
Other comprehensive income before reclassifications:
Net change in fair value	—			11			—			11
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			3			—			3
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			14			—			15
Balance, September 30, 2014	$	(12	)	$	139		$	—		$	127

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Consolidated Obligations (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt, Gross	$ 89,425	$ 80,552
Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt, Gross	89,425	80,552
Noncallable | Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt, Gross	66,566	56,569
Callable | Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt, Gross	$ 22,859	$ 23,983

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

As described in Note 10–Consolidated Obligations, consolidated obligations are backed only by the financial resources of the 12 FHLBanks. The Finance Agency may at any time require any FHLBank to make principal or interest payments due on any consolidated obligations, whether or not the primary obligor FHLBank has defaulted on the payment of that obligation. No FHLBank has ever had to assume or pay the consolidated obligation of another FHLBank.

The par value of the FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $701,462 and $654,076 as of September 30, 2014 and December 31, 2013, respectively, exclusive of the Bank’s own outstanding consolidated obligations. The Bank determined that it is not necessary to recognize a liability for the fair value of the Bank’s joint and several liability for all of the consolidated obligations.  As of September 30, 2014, none of the other FHLBanks defaulted on their consolidated obligations, the Finance Agency was not required to allocate any obligation among the FHLBanks, and no amount of the joint and several obligation was fixed.  Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks consolidated obligations as of September 30, 2014.

The following table shows the Bank's outstanding commitments, which represent off-balance sheet obligations:

	As of September 30, 2014						As of December 31, 2013
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	5,437	$	19,172	$	24,609	$	4,785	$	23,004	$	27,789
Commitments to fund additional advances	124		170		294		110		34		144
Unsettled consolidated obligation bonds, at par (2)	472		—		472		171		—		171
Unsettled consolidated obligation discount notes, at par (2)	2,500		—		2,500		467		—		467

____________

⁽¹⁾  Expire within one year includes 17 standby letters of credit for a total of $26 and 14 standby letters of credit for a total of $20 as of September 30, 2014 and December 31, 2013, respectively, that have no stated maturity date and are subject to renewal on an annual basis.

⁽²⁾  Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. As of September 30, 2014 and December 31, 2013, $470 and $145 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled. As of September 30, 2014 and December 31, 2013, $500 and $0 of the Bank's unsettled consolidated obligation discount notes were hedged with associated interest rate swaps that had traded but not yet settled.

The carrying value of the guarantees related to standby letters of credit is recorded in other liabilities and amounted to $97 and $137 as of September 30, 2014 and December 31, 2013, respectively. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on these commitments.

The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of the member. In addition, standby letters of credit are fully collateralized from the time of issuance. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit that results in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account quality of assets, earnings, and capital position. In general, borrowers categorized into the highest risk rating category have more restrictions on the types of collateral they may use to secure standby letters of credit, may be required to maintain higher collateral maintenance levels and deliver loan collateral, and may face more stringent collateral reporting requirements.

The Bank had no commitments that unconditionally obligate the Bank to purchase closed mortgage loans as of September 30, 2014 and December 31, 2013. Such commitments would be recorded as derivatives at their fair values.

The Bank is subject to legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate, as of the date of the financial statements, that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank’s financial condition or results of operations.

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table summarizes the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of September 30, 2014								As of December 31, 2013
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	97,053	$	549		$	(1,897	)	$	84,740	$	800		$	(2,336	)
Total derivatives in hedging relationships	97,053		549			(1,897		)	84,740		800			(2,336		)
Derivatives not designated as hedging instruments:
Interest rate swaps	9,961		13			(199		)	4,414		14			(309		)
Interest rate swaptions	40		—			—			40		1			(1		)
Interest rate caps or floors	16,500		24			(16		)	12,500		44			(28		)
Total derivatives not designated as hedging instruments	26,501		37			(215		)	16,954		59			(338		)
Total derivatives before netting and collateral adjustments	$	123,554	586			(2,112		)	$	101,694	859			(2,674		)
Netting adjustments			(404		)	404					(741		)	741
Cash collateral and related accrued interest			(64		)	1,528					(65		)	1,746
Total collateral and netting adjustments (1)			(468		)	1,932					(806		)	2,487
Derivative assets and derivative liabilities			$	118		$	(180	)			$	53		$	(187	)

___________

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

Components of Net Losses on Derivatives and Hedging Activities

The following tables present the components of net gains on derivatives and hedging activities as presented in the Statements of Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	78		$	39		$	129		$	134
Total net gains related to fair value hedge ineffectiveness	78			39			129			134
Derivatives not designated as hedging instruments:
Interest rate swaps	20			16			45			78
Interest rate caps or floors	(4		)	(1		)	(13		)	3
Net interest settlements	(17		)	(20		)	(53		)	(64		)
Total net (losses) gains related to derivatives not designated as hedging instruments	(1		)	(5		)	(21		)	17
Net gains on derivatives and hedging activities	$	77		$	34		$	108		$	151

Gain (Losses) on Derivatives and Related Hedged Items Fair Value

The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income:

	For the Three Months Ended September 30,
	2014											2013
Hedged Item Type	Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	319		$	(243	)	$	76	$	(229	)	$	114	$	(68	)	$	46		$	(259	)
Consolidated obligations bonds	(134		)	136			2		118			10		(17		)	(7		)	150
Total	$	185		$	(107	)	$	78	$	(111	)	$	124	$	(85	)	$	39		$	(109	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

	For the Nine Months Ended September 30,
	2014										2013
Hedged Item Type	Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	80	$	47		$	127	$	(671	)	$	1,486		$	(1,333	)	$	153		$	(797	)
Consolidated obligations bonds	80		(78		)	2		383			(700		)	681			(19		)	469
Total	$	160	$	(31	)	$	129	$	(288	)	$	786		$	(652	)	$	134		$	(328	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

Credit risk exposure on derivative instruments, excluding circumstances

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. Non-cash collateral received from or pledged to counterparties not offset was less than $1 and $0 as of September 30, 2014 and December 31, 2013, respectively.

	As of September 30, 2014						As of December 31, 2013
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	532		$	(1,825	)	$	820		$	(2,545	)
Cleared derivatives	54			(287		)	39			(129		)
Total gross recognized amount	586			(2,112		)	859			(2,674		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(532		)	1,645			(818		)	2,358
Cleared derivatives	64			287			12			129
Total gross amounts of netting adjustments and cash collateral	(468		)	1,932			(806		)	2,487
Derivative assets and derivative liabilities: (1)
Bilateral derivatives	—			(180		)	2			(187		)
Cleared derivatives	118			—			51			—
Total derivative assets and total derivative liabilities	$	118		$	(180	)	$	53		$	(187	)

____________ 

⁽¹⁾ The Bank had net credit exposure of $118 and $47 as of September 30, 2014 and December 31, 2013, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.

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Subsequent Events Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 30, 2014, the Bank’s board of directors approved a cash dividend for the third quarter of 2014 in the amount of $51. The Bank paid the third quarter 2014 dividend on November 4, 2014.

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Capital and Mandatorily Redeemable Capital Stock (Details Textual) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract]
Mandatorily redeemable capital stock	$ 19	$ 21	$ 24	$ 24	$ 25	$ 40
Redemption period for excess capital stock (in years)	5 years

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Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating activities
Net income	$ 213	$ 228
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	(87)	(64)
(Reversal) provision for credit losses	(4)	4
Loss due to change in net fair value adjustment on derivative and hedging activities	60	7
Net change in fair value adjustment on trading securities	46	79
Net impairment losses recognized in earnings	3	0
Gain on early extinguishment of debt	(15)	(2)
Net change in:
Accrued interest receivable	15	26
Other assets	41	(14)
Affordable Housing Program payable	(7)	(13)
Accrued interest payable	19	38
Other liabilities	(37)	1
Total adjustments	34	62
Net cash provided by operating activities	247	290
Net change in:
Interest-bearing deposits	224	968
Securities purchased under agreements to resell	(455)	(750)
Federal funds sold	(2,300)	4,240
Trading securities:
Proceeds from maturities	200	251
Available-for-sale securities:
Proceeds from maturities	261	435
Held-to-maturity securities:
Net change in short-term	0	550
Proceeds from maturities of long-term	2,091	2,897
Purchases of long-term	(3,022)	(6,042)
Advances:
Proceeds from principal collected	131,994	127,399
Made	(131,197)	(119,605)
Mortgage loans:
Proceeds from principal collected	119	228
Proceeds from sale of held for sale	0	18
Proceeds from sale of foreclosed assets	19	19
Purchase of premise, equipment, and software	(3)	(2)
Net cash (used in) provided by investing activities	(2,069)	10,606
Financing activities
Net change in deposits	(491)	(199)
Net payments on derivatives containing a financing element	(72)	(121)
Proceeds from issuance of consolidated obligations:
Discount notes	353,473	197,307
Bonds	64,255	62,917
Payments for debt issuance costs	(7)	(6)
Repayments of Long-term Debt [Abstract]
Discount notes	(359,620)	(212,758)
Bonds	(55,339)	(57,996)
Proceeds from issuance of capital stock	3,415	3,427
Payments for repurchase/redemption of capital stock	(3,640)	(3,966)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(9)	(24)
Cash dividends paid	(131)	(84)
Net cash provided by (used in) financing activities	1,834	(11,503)
Net increase (decrease) in cash and due from banks	12	(607)
Cash and due from banks at beginning of the period	4,374	4,083
Cash and due from banks at end of the period	4,386	3,476
Cash paid for:
Interest	261	327
Affordable Housing Program assessments, net	31	34
Noncash investing and financing activities:
Net shares reclassified to mandatorily redeemable capital stock	4	8
Held-to-maturity securities acquired with accrued liabilities	282	41
Transfer of held-to-maturity securities to available-for-sale securities	0	11
Transfers of mortgage loans to real estate owned	$ 15	$ 23

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Statements of Condition (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Deposits with other FHLBanks	$ 2	$ 1
Other FHLBank's bonds	61	65
Held-to-maturity securities, fair value	$ 21,141	$ 20,146
Capital stock Class B putable par value (per share)	$ 100	$ 100
Subclass B1
Capital stock, shares issued	7	10
Capital stock, shares outstanding	7	10
Subclass B2
Capital stock, shares issued	39	39
Capital stock, shares outstanding	39	39

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Consolidated Obligations

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Consolidated Obligations

Consolidated Obligations

Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the 12 Federal Home Loan Banks (FHLBanks) and are backed only by the financial resources of the FHLBanks. The Federal Home Loan Banks Office of Finance (Office of Finance) tracks the amount of debt issued on behalf of each FHLBank. In addition, the Bank separately tracks and records as a liability its specific portion of consolidated obligations for which it is the primary obligor.

Interest-rate Payment Terms. The following table details the Bank’s consolidated obligation bonds by interest-rate payment type:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate	$	76,029	$	59,885
Step up/down	6,776		7,617
Simple variable-rate	6,575		13,005
Variable-rate capped floater	35		45
Fixed-rate that converts to variable-rate	10		—
Total par value	$	89,425	$	80,552

Redemption Terms. The following is a summary of the Bank’s participation in consolidated obligation bonds outstanding, by year of contractual maturity:

	As of September 30, 2014				As of December 31, 2013
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	50,245		0.20	$	41,725		0.50
Due after one year through two years	14,529			1.22	9,485			0.67
Due after two years through three years	9,418			2.21	7,503			2.21
Due after three years through four years	5,197			2.10	6,355			2.81
Due after four years through five years	3,116			1.53	5,150			1.67
Due after five years	6,920			2.02	10,334			1.92
Total par value	89,425			0.87	80,552			1.13
Premiums	75				82
Discounts	(23		)		(24		)
Hedging adjustments	193				118
Total	$	89,670			$	80,728

The following table presents the Bank’s consolidated obligation bonds outstanding by call feature:

	As of September 30, 2014		As of December 31, 2013
Noncallable	$	66,566	$	56,569
Callable	22,859		23,983
Total par value	$	89,425	$	80,552

The following table summarizes the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity or, for callable consolidated obligation bonds, next call date:

	As of September 30, 2014		As of December 31, 2013
Due or callable in one year or less	$	67,589	$	59,458
Due or callable after one year through two years	10,399		7,795
Due or callable after two years through three years	7,138		4,491
Due or callable after three years through four years	2,696		6,095
Due or callable after four years through five years	871		1,571
Due or callable after five years	732		1,142
Total par value	$	89,425	$	80,552

Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds. Consolidated obligation discount notes are consolidated obligations with original contractual maturities of up to one year. These consolidated obligation discount notes are issued at less than their face amounts and redeemed at par value when they mature.

The Bank’s participation in consolidated obligation discount notes was as follows:

	Book Value		Par Value		Weighted-average Interest Rate (%)
As of September 30, 2014	$	26,055	$	26,062	0.09
As of December 31, 2013	$	32,202	$	32,208	0.11

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Federal Home Loan Bank of Atlanta
Entity Central Index Key	0001331465
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		46,847,312

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Capital and Mandatorily Redeemable Capital Stock

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Capital and Mandatorily Redeemable Capital Stock

Capital and Mandatorily Redeemable Capital Stock

Capital. The Bank was in compliance with the Federal Housing Finance Agency's (Finance Agency) regulatory capital rules and requirements as shown in the following table:

	As of September 30, 2014						As of December 31, 2013
	Required			Actual			Required			Actual
Risk based capital	$	1,789		$	6,412		$	2,246		$	6,563
Total capital-to-assets ratio	4.00		%	5.15		%	4.00		%	5.37		%
Total regulatory capital (1)	$	4,977		$	6,412		$	4,893		$	6,563
Leverage ratio	5.00		%	7.73		%	5.00		%	8.05		%
Leverage capital	$	6,222		$	9,618		$	6,116		$	9,845

___________

⁽¹⁾  Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $19and $24 in mandatorily redeemable capital stock as of September 30, 2014 and December 31, 2013, respectively.

Mandatorily Redeemable Capital Stock. The following table provides the activity in mandatorily redeemable capital stock:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	21		$	25		$	24		$	40
Capital stock subject to mandatory redemption reclassified from equity during the period due to:
Attainment of non-member status	3			1			5			8
Repurchase/redemption of mandatorily redeemable capital stock	(5		)	(2		)	(9		)	(24		)
Capital stock previously subject to mandatory redemption reclassified to capital stock	—			—			(1		)	—
Balance, end of period	$	19		$	24		$	19		$	24

The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date.

	As of September 30, 2014		As of December 31, 2013
Due in one year or less	$	4	$	5
Due after one year through two years	8		9
Due after two years through three years	6		8
Due after three years through four years	—		1
Due after four years through five years	1		—
Due after five years	—		1
Total	$	19	$	24

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Estimated Fair Values Estimated Fair Value (Details 2) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
RealEstateOwnedFairValueDisclosure	$ 6	$ 9

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Statements of Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income
Advances	$ 11	$ 54	$ 119	$ 178
Prepayment fees on advances, net	0	1	1	2
Interest-bearing deposits	1	1	3	4
Securities purchased under agreements to resell	1	1	1	1
Federal funds sold	2	1	6	7
Trading securities	19	26	57	79
Available-for-sale securities	30	33	93	98
Held-to-maturity securities	58	65	180	188
Mortgage loans	12	14	38	47
Total interest income	134	196	498	604
Consolidated obligations:
Discount notes	8	5	22	19
Bonds	80	104	247	325
Mandatorily redeemable capital stock	0	1	1	1
Total interest expense	88	110	270	345
Net interest income	46	86	228	259
(Reversal) provision for credit losses	(2)	1	(4)	4
Net interest income after (reversal) provision for credit losses	48	85	232	255
Noninterest income (loss)
Total other-than-temporary impairment losses	0	0	0	(1)
Net amount of impairment losses (reclassified from) recorded in accumulated other comprehensive income	(2)	0	(3)	1
Net impairment losses recognized in earnings	(2)	0	(3)	0
Net losses on trading securities	(19)	(15)	(46)	(79)
Net gains on derivatives and hedging activities	77	34	108	151
Gain on early extinguishment of debt	0	2	15	2
Letters of credit fees	7	4	20	14
Gain on litigation settlements, net	4	0	4	0
Other	0	0	2	2
Total noninterest income	67	25	100	90
Noninterest expense
Compensation and benefits	19	16	53	49
Other operating expenses	10	11	29	32
Finance Agency	2	2	7	6
Office of Finance	1	2	4	5
Other	0	0	2	0
Total noninterest expense	32	31	95	92
Income before assessments	83	79	237	253
Affordable Housing Program assessments	9	8	24	25
Net income	$ 74	$ 71	$ 213	$ 228

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Held-to-maturity Securities

9 Months Ended

Sep. 30, 2014

Held-to-maturity Securities, Unclassified [Abstract]

Held-to-maturity Securities

Held-to-maturity Securities

Major Security Types. Held-to-maturity securities were as follows:

	As of September 30, 2014								As of December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair  Value
State or local housing agency debt obligations	$	84	$	1	$	—	$	85	$	92	$	1	$	—	$	93
Government-sponsored enterprises debt obligations	4,913		2		16		4,899		3,738		—		24		3,714
Mortgage-backed securities:
U.S. agency obligations-guaranteed residential	388		5		—		393		465		7		—		472
Government-sponsored enterprises residential	14,104		126		62		14,168		13,952		109		115		13,946
Private-label residential	1,593		13		10		1,596		1,929		12		20		1,921
Total	$	21,082	$	147	$	88	$	21,141	$	20,176	$	129	$	159	$	20,146

The following tables summarize the held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	As of September 30, 2014
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	4	$	399	$	1	5	$	1,129	$	15	9	$	1,528	$	16
Mortgage-backed securities:
Government-sponsored enterprises residential	8	298		2		47	3,248		60		55	3,546		62
Private-label residential	15	176		1		31	434		9		46	610		10
Total	27	$	873	$	4	83	$	4,811	$	84	110	$	5,684	$	88

	As of December 31, 2013
	Less than 12 Months					12 Months or More					Total
	Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses		Number of Positions	Estimated Fair  Value		Gross Unrealized Losses
Government-sponsored enterprises debt obligations	9	$	1,970	$	24	—	$	—	$	—	9	$	1,970	$	24
Mortgage-backed securities:
Government-sponsored enterprises residential	65	3,932		108		1	147		7		66	4,079		115
Private-label residential	40	817		12		18	241		8		58	1,058		20
Total	114	$	6,719	$	144	19	$	388	$	15	133	$	7,107	$	159

Redemption Terms. The amortized cost and estimated fair value of held-to-maturity securities by contractual maturity are shown below. Expected maturities of some securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.

	As of September 30, 2014				As of December 31, 2013
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	568	$	568	$	430	$	430
Due after one year through five years	4,429		4,416		3,400		3,377
Total non-mortgage-backed securities	4,997		4,984		3,830		3,807
Mortgage-backed securities	16,085		16,157		16,346		16,339
Total	$	21,082	$	21,141	$	20,176	$	20,146

A summary of held-to-maturity MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	490	$	3	$	4	$	489
As of December 31, 2013	$	619	$	4	$	8	$	615

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Available-for-sale Securities

9 Months Ended

Sep. 30, 2014

Available-for-sale Securities [Abstract]

Available-for-sale Securities

Available-for-sale Securities

The Bank transferred a private-label residential mortgaged-backed security (MBS) from its held-to-maturity portfolio to its available-for-sale portfolio on March 31, 2013. This security represents a private-label residential MBS in the Bank’s held-to-maturity portfolio for which the Bank has recorded an other-than-temporary impairment loss. The Bank believes the other-than-temporary impairment loss constitutes evidence of a significant deterioration in the issuer’s creditworthiness. The Bank has no current plans to sell this security nor is the Bank under any requirement to sell this security.

The following table presents information on the private-label residential MBS transferred. The amounts below represent the value as of the transfer date.

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Estimated Fair Value
Transferred at March 31, 2013	$	12	$	1	$	11

Major Security Types. Private-label residential MBS were as follows:

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	1,934	$	17	$	156	$	—	$	2,073

As of December 31, 2013 $ 2,174 $ 27 $ 152 $ — $ 2,299

The following tables summarize the private-label residential MBS with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 Months					12 Months or More					Total
	Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses
As of September 30, 2014	3	$	135	$	1	9	$	202	$	16	12	$	337	$	17
As of December 31, 2013	6	$	137	$	1	10	$	243	$	26	16	$	380	$	27

A summary of available-for-sale MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized   Cost		Other-than-temporary   Impairment Recognized in  Accumulated Other Comprehensive Income		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair  Value
As of September 30, 2014	$	1,250	$	16	$	103	$	—	$	1,337
As of December 31, 2013	$	1,390	$	26	$	98	$	—	$	1,462

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Transactions With Members and Their Affiliates and With Housing Associates

9 Months Ended

Sep. 30, 2014

Related Party Transaction, Due from (to) Related Party [Abstract]

Transactions With Members and Their Affiliates And With Housing Associates

Transactions with Members and their Affiliates and with Housing Associates

The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members, and certain non-members that own the Bank's capital stock as a result of a merger or acquisition of the Bank's member, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments, to the extent declared by the Bank’s board of directors. All advances are issued to members and eligible “housing associates” under the Federal Home Loan Bank Act of 1932 (FHLBank Act), and mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loan purchases.

Transactions with any member that has an officer or director who also is a director of the Bank are subject to the same Bank policies as transactions with other members, and transactions with members which are entered into in the ordinary course of the Bank’s business are not considered related party transactions subject to disclosure. In August 2013, the Bank sold its multifamily mortgage loan portfolio, with an unpaid principal balance of $18, to a member outside the ordinary course of the Bank’s advances business which resulted in a gain of less than $1.

The Bank defines related parties as each of the other FHLBanks and those members with regulatory capital stock outstandingin excess of 10 percent of the Bank's total regulatory capital stock. Based on this definition, one member institution, Bank of America, National Association, which held 16.0 percent of the Bank’s total regulatory capital stock as of September 30, 2014, was considered a related party. Total advances outstanding to Bank of America, National Association were $16,262 and $17,263 as of September 30, 2014 and December 31, 2013, respectively. Total deposits held in the name of Bank of America, National Association wereless than$1as ofSeptember 30, 2014 and December 31, 2013. No mortgage loans or MBS were acquired from Bank of America, National Association during the nine months ended September 30, 2014 and 2013.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2014

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

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income

Components comprising accumulated other comprehensive income were as follows:

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities		Total  Accumulated Other Comprehensive Income
Balance, June 30, 2013	$	(16	)	$	83		$	—	$	67
Other comprehensive income before reclassifications:
Net change in fair value	—			16			—		16
Balance, September 30, 2013	$	(16	)	$	99		$	—	$	83
Balance, June 30, 2014	$	(12	)	$	142		$	—	$	130
Other comprehensive income before reclassifications:
Net change in fair value	—			(5		)	—		(5		)
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			2			—		2
Net current period other comprehensive loss	—			(3		)	—		(3		)
Balance, September 30, 2014	$	(12	)	$	139		$	—	$	127

	Pension and Postretirement Benefits			Noncredit Portion of Other-than- temporary Impairment  Losses on Available-for- sale Securities			Noncredit Portion of Other-than-temporary Impairment Losses on Held-to-maturity Securities			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2012	$	(17	)	$	(41	)	$	—		$	(58	)
Other comprehensive income (loss) before reclassifications:
Noncredit other-than-temporary impairment losses	—			—			(1		)	(1		)
Noncredit other-than-temporary impairment losses transferred	—			(1		)	1			—
Net change in fair value	—			141			—			141
Reclassification from accumulated other comprehensive loss to net income:
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			140			—			141
Balance, September 30, 2013	$	(16	)	$	99		$	—		$	83
Balance, December 31, 2013	$	(13	)	$	125		$	—		$	112
Other comprehensive income before reclassifications:
Net change in fair value	—			11			—			11
Reclassification from accumulated other comprehensive income (loss) to net income:
Noncredit other-than-temporary impairment losses	—			3			—			3
Amortization of pension and postretirement (1)	1			—			—			1
Net current period other comprehensive income	1			14			—			15
Balance, September 30, 2014	$	(12	)	$	139		$	—		$	127

____________

⁽¹⁾  Included in Compensation and benefits on the Statements of Income.

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Transactions With Members and Their Affiliates and With Housing Associates (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Related Party Transaction [Line Items]
Unpaid Principal Balance of Mortgage Loans Sold		$ 18
Gain (Loss) on Sale of Mortgage Loans		1
Related parties, minimum stock percent owned	10.00%
Percent of capital stock held	16.00%
Total advances outstanding to member or affiliate	16,262		17,263
Bank of America [Member]
Related Party Transaction [Line Items]
Maximum deposits held in the name of a member or affiliate (less than $1)	$ 1		$ 1
Number of mortgage loans acquired	0	0

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Mortgage Loans Held for Portfolio

9 Months Ended

Sep. 30, 2014

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans Held for Portfolio

Mortgage Loans Held for Portfolio

The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase:

	As of September 30, 2014			As of December 31, 2013
Fixed-rate medium-term (1)single-family residential mortgage loans	$	113		$	150
Fixed-rate long-term single-family residential mortgage loans	680			781
Total unpaid principal balance	793			931
Premiums	3			3
Discounts	(4		)	(5		)
Total	$	792		$	929

____________

⁽¹⁾Medium-term is defined as a term of 15 years or less.

The following table details the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type:

	As of September 30, 2014		As of December 31, 2013
Conventional loans	$	737	$	864
Government-guaranteed or insured loans	56		67
Total unpaid principal balance	$	793	$	931

For information related to the Bank's credit risk on mortgage loans and allowance for credit losses, see Note 9—Allowance for Credit Losses to the Bank’s interim financial statements.

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Allowance for Credit Losses (Credit Quality Indicators) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Past due 30-59 days	$ 27				$ 27				$ 37
Past due 60-89 days	9				9				12
Past due 90 days or more	40				40				60
Total past due mortgage loans	76				76				109
Total current mortgage loans	719				719				824
Total recorded investment	795	[1]			795	[1]			933	[2]
In process foreclosure	23	[3]			23	[3]			41	[3]
Seriously delinquent rate	4.98%	[4]			4.98%	[4]			6.42%	[4]
Past due 90 days or more and still accruing interest	5	[5]			5	[5]			9	[5]
Loans on nonaccrual status	34	[6]			34	[6]			51	[6]
Accrued Interest on Mortgage Loans	3				3				4
Impaired Financing Receivable, Recorded Investment	15				15				15
Impaired Financing Receivable, Unpaid Principal Balance	15				15				15
Impaired Financing Receivable, Related Allowance	1				1				2
Conventional Single-Family Residential Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Past due 30-59 days	21				21				30
Past due 60-89 days	7				7				9
Past due 90 days or more	35				35				51
Total past due mortgage loans	63				63				90
Total current mortgage loans	676				676				776
Total recorded investment	739	[1]			739	[1]			866	[2]
In process foreclosure	21	[3]			21	[3]			38	[3]
Seriously delinquent rate	4.65%	[4]			4.65%	[4]			5.90%	[4]
Past due 90 days or more and still accruing interest	0	[5]			0	[5]			0	[5]
Loans on nonaccrual status	34	[6]			34	[6]			51	[6]
Troubled debt resructurings	15				15				15
Loan modifications experiencing default in previous twelve months	0	[7]	0	[7]	2	[7]	1	[7]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	8				8				0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	7				7				15
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	8				8				0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	7				7				15
Impaired Financing Receivable, Related Allowance	1				1				2
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	8		0		9		0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	7		13		7		13
Government-Guaranteed or Insured Residential Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Past due 30-59 days	6				6				7
Past due 60-89 days	2				2				3
Past due 90 days or more	5				5				9
Total past due mortgage loans	13				13				19
Total current mortgage loans	43				43				48
Total recorded investment	56	[1]			56	[1]			67	[2]
In process foreclosure	2	[3]			2	[3]			3	[3]
Seriously delinquent rate	9.27%	[4]			9.27%	[4]			13.13%	[4]
Past due 90 days or more and still accruing interest	5	[5]			5	[5]			9	[5]
Loans on nonaccrual status	0	[6]			0	[6]			0	[6]
Performing Financing Receivable | Conventional Single-Family Residential Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Troubled debt resructurings	11				11				11
Nonperforming Financing Receivable | Conventional Single-Family Residential Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Troubled debt resructurings	$ 4				$ 4				$ 4

[1] The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest.

[2] The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest.

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

[4] Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

[5] Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

[6] Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

[7] For purposes of this disclosure, only the initial default was included; however, a loan can experience another payment default in a subsequent period.

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Other-than-temporary Impairment

9 Months Ended

Sep. 30, 2014

Other than Temporary Impairment Losses, Investments [Abstract]

Other-than-temporary Impairment

Other-than-temporary Impairment

The Bank evaluates its individual available-for-sale and held-to-maturity securities holdings in an unrealized loss position for other-than-temporary impairment on a quarterly basis. As part of this process, the Bank considers its intent to sell each debt security and whether it is more likely than not the Bank will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank recognizes the maximum impairment loss in earnings which is equal to the entire difference between the security’s amortized cost basis and its fair value as of the Statements of Condition dates. For securities in an unrealized loss position that meet neither of these conditions, the Bank evaluates whether there is other-than-temporary impairment by performing an analysis to determine if any of these securities will incur a credit loss, which could be up to the difference between the security’s amortized cost basis and its fair value.

Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. The Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation to reduce its risk of loss on such securities. Credit enhancements are defined as the percentage of subordinate tranches, overcollateralization, or excess spread, or the support of monoline insurance, if any, in a security structure that will absorb the losses before the security the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies.

The Bank’s investments in private-label MBS were rated “AAA” (or its equivalent) by a nationally recognized statistical rating organization (NRSRO), such as Moody’s Investors Service (Moody’s) and Standard and Poor’s Ratings Services (S&P), at their purchase dates. The “AAA”-rated securities achieved their ratings through credit enhancement, overcollateralization, and senior-subordinated shifting interest features; the latter results in subordination of payments by junior classes to ensure cash flows to the senior classes. The ratings on all of the Bank’s private-label MBS have changed since their purchase dates.

Non-private-label MBS. The unrealized losses related to U.S. agency MBS are caused by interest rate changes and not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises (GSEs) and the Bank does not expect these securities to be settled at a price less than their amortized cost basis. In addition, the Bank does not intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of September 30, 2014.

Private-label MBS. To assess whether the entire amortized cost basis of its private-label MBS will be recovered, the Bank performs a cash flow analysis for each of its private-label MBS. In performing the cash flow analysis for each of these securities, the Bank uses two third-party models. The first model considers borrower characteristics and the particular attributes of the loans underlying the Bank’s securities, in conjunction with assumptions about future changes in home prices and interest rates, to project prepayments, defaults, and loss severities. A significant input to the first model is the forecast of future housing price changes for the relevant states and core based statistical areas (CBSAs), which are based upon an assessment of the individual housing markets. The term CBSA refers collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget; as currently defined, a CBSA must contain at least one urban area of 10,000 or more people. The Bank’s housing price forecast as of September 30, 2014 included a short-term housing price forecast with projected changes ranging from a decrease of three percent to an increase of nine percent over the 12 month period beginning July 1, 2014. For the vast majority of markets, the projected short-term housing price changes range from zero percent to an increase of six percent. Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data.

The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model that allocates the projected loan level cash flows and losses to the various security classes in the securitization structure in accordance with its prescribed cash flow and loss allocation rules. The model classifies securities based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination.

At each quarter end, the Bank compares the present value of the cash flows (discounted at the securities' effective yield) expected to be collected with respect to its private-label MBS to the amortized cost basis of the security to determine whether a credit loss exists. For the Bank’s variable rate and hybrid private-label MBS, the Bank uses a forward interest rate curve to project the future estimated cash flows. The Bank then uses the effective interest rate for the security prior to impairment for determining the present value of the future estimated cash flows. For securities previously identified as other-than-temporarily impaired, the Bank updates its estimate of future estimated cash flows on a quarterly basis.

The following table represents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended September 30, 2014, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rate	Default Rates	Loss Severities	Current Credit Enhancement
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
Prime:
2005	15.79	7.96	32.82	0.16
Alt-A:
2007	13.49	26.94	40.27	0.00

The following table presents a roll-forward of the amount of credit losses on the Bank’s investment securities recognized in earnings during the life of the securities for which a portion of the other-than-temporary loss was recognized in accumulated other comprehensive income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	559		$	584		$	574		$	586
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	2			—			3			—
Increase in cash flows expected to be collected, recognized over the remaining life of the securities	(9		)	(4		)	(25		)	(6		)
Balance, end of period	$	552		$	580		$	552		$	580

Certain other private-label MBS that have not been designated as other-than-temporarily impaired have experienced unrealized losses and decreases in fair value due to interest rate volatility, illiquidity in the marketplace, and general disruption in the U.S. mortgage markets. These declines in fair value are considered temporary as the Bank expects to recover the amortized cost basis of the securities, the Bank does not intend to sell these securities, and it is not more likely than not that the Bank will be required to sell these securities before the anticipated recovery of the securities’ remaining amortized cost basis, which may be at maturity. This assessment is based on the fact that the Bank has sufficient capital and liquidity to operate its business and has no need to sell these securities, nor has the Bank entered into any contractual constraints that would require the Bank to sell these securities.

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Advances

9 Months Ended

Sep. 30, 2014

Advances [Abstract]

Advances

Advances

Redemption Terms. The Bank had advances outstanding, as summarized below.

	As of September 30, 2014			As of December 31, 2013
Overdrawn demand deposit accounts	$	—		$	2
Due in one year or less	47,104			51,331
Due after one year through two years	11,049			5,366
Due after two years through three years	9,554			6,136
Due after three years through four years	6,241			8,495
Due after four years through five years	2,868			5,088
Due after five years	10,268			11,464
Total par value	87,084			87,882
Discount on AHP (1) advances	(7		)	(8		)
Discount on EDGE (2) advances	(6		)	(7		)
Hedging adjustments	1,560			1,726
Deferred commitment fees	(4		)	(5		)
Total	$	88,627		$	89,588

___________

⁽¹⁾ The Affordable Housing Program

⁽²⁾ The Economic Development and Growth Enhancement program

The following table summarizes advances by year of contractual maturity or, for convertible advances, next conversion date:

	As of September 30, 2014		As of December 31, 2013
Overdrawn demand deposit accounts	$	—	$	2
Due or convertible in one year or less	50,223		54,522
Due or convertible after one year through two years	10,886		5,414
Due or convertible after two years through three years	8,203		5,867
Due or convertible after three years through four years	4,872		6,643
Due or convertible after four years through five years	2,787		4,168
Due or convertible after five years	10,113		11,266
Total par value	$	87,084	$	87,882

Interest-rate Payment Terms. The following table details interest-rate payment terms for advances:

	As of September 30, 2014		As of December 31, 2013
Fixed-rate:
Due in one year or less	$	34,599	$	46,343
Due after one year	29,691		28,535
Total fixed-rate	64,290		74,878
Variable-rate:
Due in one year or less	12,505		4,990
Due after one year	10,289		8,014
Total variable-rate	22,794		13,004
Total par value	$	87,084	$	87,882

Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, thrifts, and credit unions and further is concentrated in certain larger borrowing relationships. As of September 30, 2014 and December 31, 2013, the concentration of the Bank’s advances was $62,761 and $65,472, respectively, to 10 member institutions, representing 72.1 percent and 74.5 percent, respectively, of total advances outstanding.

Based on the collateral pledged as security for advances, the Bank's credit analysis of members’ financial condition, and prior repayment history, no allowance for credit losses on advances was deemed necessary by the Bank as of September 30, 2014 and December 31, 2013. No advance was past due as of September 30, 2014 and December 31, 2013.

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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2014

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

The activity in the allowance for credit losses was as follows:

	For the Three Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	6		$	11		$	1		$	12
(Reversal) provision for credit losses	(2		)	1			—			1
Charge-offs	—			(1		)	—			(1		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

	For the Nine Months Ended September 30,
	2014			2013
	Conventional Single-family Residential Mortgage Loans			Conventional Single-family Residential Mortgage Loans			Multifamily Residential Mortgage Loans			Total
Balance, beginning of period	$	11		$	10		$	1		$	11
(Reversal) provision for credit losses	(4		)	4			—			4
Charge-offs	(3		)	(3		)	—			(3		)
Mortgage loans transferred to held for sale	—			—			(1		)	(1		)
Balance, end of period	$	4		$	11		$	—		$	11

The recorded investment in conventional single-family residential mortgage loans by impairment methodology was as follows:

	As of September 30, 2014		As of December 31, 2013
Allowance for credit losses:
Individually evaluated for impairment	$	1	$	2
Collectively evaluated for impairment	3		9
Total allowance for credit losses	$	4	$	11
Recorded investment:
Individually evaluated for impairment	$	15	$	15
Collectively evaluated for impairment	724		851
Total recorded investment	$	739	$	866

Key credit quality indicators for mortgage loans include the migration of past due loans, nonaccrual loans, loans in process of foreclosure, and impaired loans. The tables below summarize the Bank's recorded investment in mortgage loans by these key credit quality indicators:

	As of September 30, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	21		$	6		$	27
Past due 60-89 days	7			2			9
Past due 90 days or more	35			5			40
Total past due mortgage loans	63			13			76
Total current mortgage loans	676			43			719
Total mortgage loans (1)	$	739		$	56		$	795
Other delinquency statistics:
In process of foreclosure (2)	$	21		$	2		$	23
Seriously delinquent rate (3)	4.65		%	9.27		%	4.98		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	34		$	—		$	34

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $3 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

	As of December 31, 2013
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	30		$	7		$	37
Past due 60-89 days	9			3			12
Past due 90 days or more	51			9			60
Total past due mortgage loans	90			19			109
Total current mortgage loans	776			48			824
Total mortgage loans (1)	$	866		$	67		$	933
Other delinquency statistics:
In process of foreclosure (2)	$	38		$	3		$	41
Seriously delinquent rate (3)	5.90		%	13.13		%	6.42		%
Past due 90 days or more and still accruing interest (4)	$	—		$	9		$	9
Loans on nonaccrual status (5)	$	51		$	—		$	51

____________

⁽¹⁾ The difference between the recorded investment and the carrying value of total mortgage loans of $4 relates to accrued interest.

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

⁽³⁾ Loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total loan portfolio segment.

⁽⁴⁾ Mortgage loans insured or guaranteed by the Federal Housing Administration or the Department of Veterans Affairs.

⁽⁵⁾ Represents mortgage loans with contractual principal or interest payments 90 days or more past due and not accruing interest.

A troubled debt restructuring is considered to have occurred when a concession is granted to a borrower for economic or legal reasons related to the borrower's financial difficulties and that concession would not have been considered otherwise. The Bank has granted a concession when it does not expect to collect all amounts due under the original contract as a result of the restructuring. The Bank's conventional single-family residential mortgage loan troubled debt restructurings primarily involve modifying the borrower's monthly payment for a period of up to 36 months to achieve a target housing expense ratio of 31.0 percent of their qualifying monthly income. The outstanding principal balance is first re-amortized to reflect a principal and interest payment for a term not to exceed 40 years. This would result in a balloon payment at the original maturity date of the loan as the maturity date and number of remaining monthly payments are not adjusted. If the 31.0 percent housing expense ratio is not achieved through re-amortization, the interest rate is reduced in 0.125 percent increments below the original note rate, to a floor rate of 3.00 percent, resulting in reduced principal and interest payments, for the temporary payment modification period of up to 36 months, until the target 31.0 percent housing expense ratio is met. A conventional single-family residential mortgage loan in which the borrower filed for Chapter 7 bankruptcy and the bankruptcy court discharged the borrower's obligation to the Bank is considered a troubled debt restructuring.

The table below presents the Bank's recorded investment balance in troubled debt restructured loans as of September 30, 2014 and December 31, 2013:

	Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	4	$	15

Due to the minimal change in terms of modified loans (i.e., no write-offs of principal), the Bank's pre-modification recorded investment was not materially different than the post-modification recorded investment in troubled debt restructuring during the three and nine months ended September 30, 2014 and 2013.

The following table shows troubled debt restructurings from the previous 12 months that subsequently defaulted during the periods presented. A payment default on a troubled debt restructuring is considered to have occurred if the contractually due principal or interest is 60 days or more past due at any time during the periods presented.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
Conventional single-family residential loans (1)	$	—	$	—	$	2	$	1

____________

⁽¹⁾ For purposes of this disclosure, only the initial default was included; however, a loan can experience another payment default in a subsequent period.

The following tables summarize the recorded investment, unpaid principal balance, and related allowance for credit losses for impaired loans as of September 30, 2014 and December 31, 2013, and the average recorded investment on these loans during the three and nine months ended September 30, 2014 and 2013. Related interest income recognized on these loans during the three and nine months ended September 30, 2014 and 2013 was less than $1.

	As of September 30, 2014						As of December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance
Conventional single-family residential loans	$	8	$	8	$	—	$	—	$	—	$	—
With an allowance
Conventional single-family residential loans	7		7		1		15		15		2
Total	$	15	$	15	$	1	$	15	$	15	$	2

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2014		2013		2014		2013
With no related allowance
Conventional single-family residential loans:
Average recorded investment	$	8	$	—	$	9	$	—
With an allowance
Conventional single-family residential loans:
Average recorded investment	7		13		7		13

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Consolidated Obligations (Details 1) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt, Gross	$ 89,425	$ 80,552
Federal Home Loan Bank, Consolidated Obligations, Bonds	89,670	80,728
Unsecured Debt [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	50,245	41,725
Bonds, Due after one year through two years	14,529	9,485
Bonds, Due after two years through three years	9,418	7,503
Bonds, Due after three years through four years	5,197	6,355
Bonds, Due after four years through five years	3,116	5,150
Bonds, Due after five years	6,920	10,334
Debt, Gross	89,425	80,552
Premiums	75	82
Discounts	(23)	(24)
Hedging adjustments	193	118
Federal Home Loan Bank, Consolidated Obligations, Bonds	$ 89,670	$ 80,728
Bonds, Due in one year or less, weighted average interest rate	0.20%	0.50%
Bonds, Due after one year through two years, weighted average interest rate	1.22%	0.67%
Bonds, Due after two years through three years, weighted average interest rate	2.21%	2.21%
Bonds, Due after three years through four years, weighted average interest rate	2.10%	2.81%
Bonds, Due after four years through five years, weighted average interest rate	1.53%	1.67%
Bonds, Due after five years, weighted average interest rate	2.02%	1.92%
Total, weighted average interest rate	0.87%	1.13%

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Subsequent Events Subsequent Events (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]
Payments of Dividends	$ 51

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Consolidated Obligations (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt, Gross	$ 89,425	$ 80,552
Unsecured Debt [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	50,245	41,725
Bonds, Due after one year through two years	14,529	9,485
Bonds, Due after two years through three years	9,418	7,503
Bonds, Due after three years through four years	5,197	6,355
Bonds, Due after four years through five years	3,116	5,150
Bonds, Due after five years	6,920	10,334
Debt, Gross	89,425	80,552
Earlier of Contractual Maturity or Next Call Date [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	67,589	59,458
Bonds, Due after one year through two years	10,399	7,795
Bonds, Due after two years through three years	7,138	4,491
Bonds, Due after three years through four years	2,696	6,095
Bonds, Due after four years through five years	871	1,571
Bonds, Due after five years	$ 732	$ 1,142

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Consolidated Obligations (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	$ 89,425	$ 80,552
Fixed-rate
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	76,029	59,885
Step up/down
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	6,776	7,617
Simple variable-rate
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	6,575	13,005
Variable-rate capped floater
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	35	45
Fixed-rate that converts to variable-rate [Member]
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	$ 10	$ 0

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Capital and Mandatorily Redeemable Capital Stock (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Schedule of Compliance With Regulatory Capital Requirements

The Bank was in compliance with the Federal Housing Finance Agency's (Finance Agency) regulatory capital rules and requirements as shown in the following table:

	As of September 30, 2014						As of December 31, 2013
	Required			Actual			Required			Actual
Risk based capital	$	1,789		$	6,412		$	2,246		$	6,563
Total capital-to-assets ratio	4.00		%	5.15		%	4.00		%	5.37		%
Total regulatory capital (1)	$	4,977		$	6,412		$	4,893		$	6,563
Leverage ratio	5.00		%	7.73		%	5.00		%	8.05		%
Leverage capital	$	6,222		$	9,618		$	6,116		$	9,845

___________

⁽¹⁾  Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $19and $24 in mandatorily redeemable capital stock as of September 30, 2014 and December 31, 2013, respectively.

Activity in Mandatorily Redeemable Capital Stock

The following table provides the activity in mandatorily redeemable capital stock:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	21		$	25		$	24		$	40
Capital stock subject to mandatory redemption reclassified from equity during the period due to:
Attainment of non-member status	3			1			5			8
Repurchase/redemption of mandatorily redeemable capital stock	(5		)	(2		)	(9		)	(24		)
Capital stock previously subject to mandatory redemption reclassified to capital stock	—			—			(1		)	—
Balance, end of period	$	19		$	24		$	19		$	24

Amount of Mandatorily Redeemable Capital Stock by Year of Redemption

The following table shows the amount of mandatorily redeemable capital stock by year of redemption. The year of redemption in the table is the end of the five-year redemption period, or with respect to activity-based stock, the later of the expiration of the five-year redemption period or the activity’s maturity date.

	As of September 30, 2014		As of December 31, 2013
Due in one year or less	$	4	$	5
Due after one year through two years	8		9
Due after two years through three years	6		8
Due after three years through four years	—		1
Due after four years through five years	1		—
Due after five years	—		1
Total	$	19	$	24

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Other-than-temporary Impairment (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Schedule of Roll-Forward Cumulative Credit Losses Recognized
Balance, beginning of period	$ 559	$ 584	$ 574	$ 586
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	2		3	0
Increase in cash flows expected to be collected, recognized over the remaining life of the securities	(9)	(4)	(25)	(6)
Balance, end of period	$ 552	$ 580	$ 552	$ 580

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Estimated Fair Values

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Estimated Fair Values

Estimated Fair Values

The Bank records trading securities, available-for-sale securities, derivative assets and liabilities, and grantor trust assets (publicly-traded mutual funds) at estimated fair value on a recurring basis. Fair value is a market-based measurement and is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the assets or owes the liability. In general, the transaction price will equal the exit price and, therefore, represent the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction and the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market.

A fair value hierarchy is used to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. The fair value hierarchy defines fair value in terms of a price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability at the measurement date (an exit price). In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy.

Outlined below is the application of the “fair value hierarchy” to the Bank's financial assets and financial liabilities that are carried at fair value.

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. As of September 30, 2014 and December 31, 2013, the Bank carried grantor trust assets at fair value hierarchy Level 1.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. As of September 30, 2014 and December 31, 2013, the Bank carried trading securities and derivatives at fair value hierarchy Level 2.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by little or no market activity and reflect the entity's own assumptions. As of September 30, 2014 and December 31, 2013, the Bank carried available-for-sale securities at fair value hierarchy Level 3.

The Bank utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

For financial instruments carried at fair value, the Bank reviews the fair value hierarchy classification of financial assets and liabilities on a quarterly basis. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out at fair value as of the beginning of the quarter in which the changes occur. There were no such transfers during the periods presented.

Fair Value on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition:

	As of September 30, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,366		$	—	$	—		$	1,366
Another FHLBank’s bond	—		61			—		—			61
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,428			—		—			1,428
Available-for-sale securities:
Private-label residential MBS	—		—			2,073		—			2,073
Derivative assets:
Interest-rate related	—		586			—		(468		)	118
Grantor trust (included in Other assets)	24		—			—		—			24
Total assets at fair value	$	24	$	2,014		$	2,073	$	(468	)	$	3,643
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)
Total liabilities at fair value	$	—	$	(2,112	)	$	—	$	1,932		$	(180	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

	As of December 31, 2013
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,601		$	—	$	—		$	1,601
Another FHLBank’s bond	—		65			—		—			65
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,667			—		—			1,667
Available-for-sale securities:
Private-label residential MBS	—		—			2,299		—			2,299
Derivative assets:
Interest-rate related	—		859			—		(806		)	53
Grantor trust (included in Other assets)	21		—			—		—			21
Total assets at fair value	$	21	$	2,526		$	2,299	$	(806	)	$	4,040
Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)
Total liabilities at fair value	$	—	$	(2,674	)	$	—	$	2,487		$	(187	)

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

The following table presents a reconciliation of available-for-sale securities that are measured at fair value using significant unobservable inputs (Level 3):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Balance, beginning of period	$	2,155		$	2,536		$	2,299		$	2,676
Transfer of private-label MBS from held-to-maturity to available-for-sale	—			—			—			11
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(2		)	—			(3		)	—
Included in other comprehensive income (2)	(3		)	16			14			141
Accretion of credit losses in net interest income	8			4			24			5
Settlements	(85		)	(158		)	(261		)	(435		)
Balance, end of period	$	2,073		$	2,398		$	2,073		$	2,398

____________ 

⁽¹⁾  Related to available-for-sale securities held at period end.

⁽²⁾  This amount is included in other comprehensive income within the net change in fair value on other-than-temporary impairment available-for-sale securities and reclassification of noncredit portion of impairment losses included in net income.

Fair Value on a Nonrecurring Basis. The Bank measures certain impaired mortgage loans held for portfolio and real estate owned at Level 3 fair value on a nonrecurring basis. Impaired mortgage loans are subject to being measured at fair value as a result of becoming impaired during the reported period. Real estate owned is measured at fair value when its fair value, less cost to sell, is lower than its carrying value as of the Statements of Condition date. The Bank estimates fair value based on (1) a property appraisal provided by the loan servicer; (2) a broker price opinion provided by the loan servicer; or (3) a current property value provided by a third party vendor, adjusted for estimated selling costs.

The following table presents the Bank's assets that are measured at fair value on a nonrecurring basis on its Statements of Condition only as of the dates shown:

	As of September 30, 2014		As of December 31, 2013
Real estate owned	$	6	$	9

Described below are the Bank's fair value measurement methodologies for financial assets and liabilities measured or disclosed at fair value.

Cash and Due from Banks. The estimated fair value approximates the recorded carrying value.

Interest-bearing Deposits. The estimated fair value is determined by calculating the present value of the expected future cash flows from the deposits and reducing this amount for accrued interest receivable. The discount rate used in these calculations is the rate for deposits with similar terms and represents market observable rates.

Securities purchased under agreements to resell. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for securities with similar terms and represent market observable rates.

Federal Funds Sold. The estimated fair value is determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the rates for federal funds with similar terms and represent market observable rates.

Investment Securities. The Bank obtains prices from four designated third-party pricing vendors when available to estimate the fair value of its investment securities. The pricing vendors use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to: benchmark yields, reported trades, dealer estimates, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established challenge process in place for all investment securities valuations, which facilitates resolution of potentially erroneous prices identified by the Bank.

The Bank periodically conducts reviews of the four pricing vendors to confirm and further augment its understanding of the vendors' pricing processes, methodologies, and control procedures for agency and private-label MBS.

The Bank's valuation technique for estimating the fair value of its investment securities first requires the establishment of a “median” price for each security.

All prices that are within a specified tolerance threshold of the median price are included in the “cluster” of prices that are averaged to compute a “default” price. All prices that are outside the threshold (“outliers”) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. Alternatively, if the analysis does not provide evidence that an outlier is in fact more representative of the fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security.

If all prices received for a security are outside the tolerance threshold level of the median price, then there is no default price, and the final price is determined by an evaluation of all outlier prices as described above.

As of September 30, 2014 and December 31, 2013, four vendor prices were received for a majority of the Bank's investment securities holdings and the final prices for those securities were computed by averaging the prices received. Based on the Bank's review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices (or, in those instances in which there were outliers or significant yield variances, the Bank's additional analyses), the Bank believes its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value hierarchy. Based on the lack of significant market activity for private-label MBS, the fair value measurement for those securities were classified as Level 3 within the fair value hierarchy as of September 30, 2014 and December 31, 2013.

Mortgage Loans Held for Portfolio. The estimated fair values for mortgage loans are determined based on quoted market prices of similar mortgage loans available in the pass-through securities market. These prices, however, can change rapidly based upon market conditions and are highly dependent upon the underlying prepayment assumptions. The estimated fair values of impaired mortgage loans are based on the current property value, as provided by a third party vendor, adjusted for estimated selling costs.

Advances. The Bank determines the estimated fair values of advances by calculating the present value of expected future cash flows from the advances and excluding the amount of the accrued interest receivable. The discount rates used in these calculations are the replacement advance rates based on the market observable London Interbank Offered Rate (LIBOR) curve for advances with similar terms as of September 30, 2014 and December 31, 2013, respectively. In accordance with the advances regulations, advances with a maturity or repricing period greater than six months require a prepayment fee sufficient to make the Bank financially indifferent to the borrower's decision to prepay the advances, thereby removing prepayment risk from the fair value calculation. The Bank did not adjust the fair value measurement of advances for creditworthiness because advances were fully collateralized (see Note 7—Advances to the Bank’s interim financial statements for additional information).

Accrued Interest Receivable and Payable. The estimated fair value approximates the recorded carrying value.

Derivative Assets and Liabilities. The Bank calculates the fair value of derivatives using a present value of future cash flows discounted by a market observable rate. The Bank used Overnight Index Swap Rate to discount future cash flows for collateralized derivatives.

Derivative instruments are transacted primarily in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point. The Bank does not provide a credit valuation adjustment based on aggregate exposure by derivative counterparty when measuring the fair value of its derivatives. This is because the collateral provisions pertaining to the Bank's derivatives obviate the need to provide such a credit valuation adjustment. The fair values of the Bank's derivatives take into consideration the effects of legally enforceable master netting agreements, where applicable, that allow the Bank to settle positive and negative positions and offset cash collateral with the same counterparty on a net basis. The Bank and each bilateral derivative counterparty have collateral thresholds that take into account both the Bank's and the counterparty's credit ratings. As a result of these practices and agreements, the Bank has concluded that the impact of the credit differential between the Bank and its derivative counterparties was mitigated to an immaterial level and no further adjustments were deemed necessary to the recorded fair values of derivative assets and liabilities on the Statements of Condition as of September 30, 2014 and December 31, 2013.

Grantor Trust Assets. Grantor trust assets, included as a component of Other assets, are carried at estimated fair value based on quoted market prices.

Interest-bearing Deposits. The Bank determines estimated fair values of Bank deposits by calculating the present value of expected future cash flows from the deposits and reducing this amount for accrued interest payable. The discount rate used in these calculations is based on LIBOR.

Consolidated Obligations. The Bank calculates the fair value of consolidated obligation bonds and discount notes by using the present value of future cash flows using a cost of funds as the discount rate. The cost of funds discount curves are based primarily on the market observable LIBOR and to some extent on the Office of Finance cost of funds curve, which also is market observable.

Mandatorily Redeemable Capital Stock. The fair value of mandatorily redeemable capital stock is par value, including estimated dividends earned at the time of reclassification from capital to liabilities, until such amount is paid. Capital stock can be acquired by members only at par value and redeemed by the Bank at par value. Capital stock is not traded and no market mechanism exists for the exchange of capital stock outside the cooperative structure.

The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of September 30, 2014 and December 31, 2013. Although the Bank uses its best judgment in estimating the fair values of these financial instruments, there are inherent limitations in any estimation technique or valuation methodology.

For example, because an active secondary market does not exist for a portion of the Bank’s financial instruments, in certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and evaluation of those factors change. Therefore, these estimated fair values are not necessarily indicative of the amounts that would be realized in current market transactions, although they do reflect the Bank’s judgment of how a market participant would estimate the fair value. The fair value tables presented below do not represent an estimate of the overall fair value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets versus liabilities.

The carrying values and estimated fair values of the Bank’s financial instruments were as follows:

	As of September 30, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,386		$	4,386		$	4,386		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	455			455			—			455			—		—
Federal funds sold	4,095			4,095			—			4,095			—		—
Trading securities	1,428			1,428			—			1,428			—		—
Available-for-sale securities	2,073			2,073			—			—			2,073		—
Held-to-maturity securities	21,082			21,141			—			19,545			1,596		—
Advances	88,627			88,699			—			88,699			—		—
Mortgage loans held for portfolio, net	788			871			—			871			—		—
Accrued interest receivable	184			184			—			184			—		—
Derivative assets	118			118			—			586			—		(468		)
Grantor trust assets (included in Other assets)	24			24			24			—			—		—
Liabilities:
Interest-bearing deposits	(1,271		)	(1,271		)	—			(1,271		)	—		—
Consolidated obligations, net:
Discount notes	(26,055		)	(26,055		)	—			(26,055		)	—		—
Bonds	(89,670		)	(89,912		)	—			(89,912		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(202		)	(202		)	—			(202		)	—		—
Derivative liabilities	(180		)	(180		)	—			(2,112		)	—		1,932

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

	As of December 31, 2013
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	4,374		$	4,374		$	4,374		$	—		$	—	$	—
Interest bearing-deposits	1,007			1,007			—			1,007			—		—
Federal funds sold	1,795			1,795			—			1,795			—		—
Trading securities	1,667			1,667			—			1,667			—		—
Available-for-sale securities	2,299			2,299			—			—			2,299		—
Held-to-maturity securities	20,176			20,146			—			18,225			1,921		—
Advances	89,588			89,413			—			89,413			—		—
Mortgage loans held for portfolio, net	918			1,004			—			1,004			—		—
Accrued interest receivable	199			199			—			199			—		—
Derivative assets	53			53			—			859			—		(806		)
Grantor trust assets (included in Other assets)	21			21			21			—			—		—
Liabilities:
Interest-bearing deposits	(1,752		)	(1,752		)	—			(1,752		)	—		—
Consolidated obligations, net:
Discount notes	(32,202		)	(32,203		)	—			(32,203		)	—		—
Bonds	(80,728		)	(80,733		)	—			(80,733		)	—		—
Mandatorily redeemable capital stock	(24		)	(24		)	(24		)	—			—		—
Accrued interest payable	(183		)	(183		)	—			(183		)	—		—
Derivative liabilities	(187		)	(187		)	—			(2,674		)	—		2,487

____________ 

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral held or placed with the same clearing agents and/or counterparties.

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Trading Securities (Tables) (Categories of Investments, Marketable Securities, Trading Securities [Member])

9 Months Ended

Sep. 30, 2014

Categories of Investments, Marketable Securities, Trading Securities [Member]

Schedule of Trading Securities and Other Trading Assets [Line Items]

Schedule of Major Trading Securities

Major Security Types. Trading securities were as follows:

	As of September 30, 2014		As of December 31, 2013
Government-sponsored enterprises debt obligations	$	1,366	$	1,601
Another FHLBank’s bond (1)	61		65
State or local housing agency debt obligations	1		1
Total	$	1,428	$	1,667

 ____________

⁽¹⁾  The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.

Schedule of Net Unrealized and Realized (Losses) Gains on Trading Securities

Net losses on trading securities were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Net losses on trading securities held at period end	$	(19	)	$	(15	)	$	(46	)	$	(77	)
Net losses on trading securities sold or matured during the period	—			—			—			(2		)
Net losses on trading securities	$	(19	)	$	(15	)	$	(46	)	$	(79	)

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Held-to-maturity Securities (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	$ 21,082	$ 20,176
Held To Maturity Securities Accumulated Unrecognized Holding Gain	147	129
Held To Maturity Securities Accumulated Unrecognized Holding Loss	88	159
Held-to-maturity Securities, Fair Value	21,141	20,146
Mortgage-backed securities [Member] | Bank of America Corporation, Charlotte, NC
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	490	619
Held To Maturity Securities Accumulated Unrecognized Holding Gain	3	4
Held To Maturity Securities Accumulated Unrecognized Holding Loss	4	8
Held-to-maturity Securities, Fair Value	$ 489	$ 615

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Trading Securities (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Trading Securities [Abstract]
Net losses on trading securities held at period end	$ (19)	$ (15)	$ (46)	$ (77)
Net losses on trading securities sold or matured during the period				(2)
Net losses on trading securities	$ (19)	$ (15)	$ (46)	$ (79)

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Statements of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 74	$ 71	$ 213		$ 228
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities:
Noncredit losses transferred from held-to-maturity securities	0	0	0		(1)
Net change in fair value on other-than-temporarily impaired available-for-sale securities	(5)	16	11		141
Reclassification of noncredit portion of impairment losses included in net income	2	0	3		0
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities	(3)	16	14		140
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities:
Noncredit losses on held-to-maturity securities	0	0	0		(1)
Reclassification of noncredit portion from held-to-maturity securities to available-for-sale securities	0	0	0		1
Net noncredit portion of other-than-temporary impairment losses on held-to-maturity securities	0	0	0		0
Other comprehensive income related to pension and postretirement benefit plans	0	0	1	[1]	1	[1]
Total other comprehensive (loss) income	(3)	16	15		141
Total comprehensive income	$ 71	$ 87	$ 228		$ 369

[1] Included in Compensation and benefits on the Statements of Income.

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Trading Securities

9 Months Ended

Sep. 30, 2014

Trading Securities [Abstract]

Trading Securities

Trading Securities

Major Security Types. Trading securities were as follows:

	As of September 30, 2014		As of December 31, 2013
Government-sponsored enterprises debt obligations	$	1,366	$	1,601
Another FHLBank’s bond (1)	61		65
State or local housing agency debt obligations	1		1
Total	$	1,428	$	1,667

 ____________

⁽¹⁾  The Federal Home Loan Bank of Chicago is the primary obligor of this consolidated obligation bond.

Net losses on trading securities were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Net losses on trading securities held at period end	$	(19	)	$	(15	)	$	(46	)	$	(77	)
Net losses on trading securities sold or matured during the period	—			—			—			(2		)
Net losses on trading securities	$	(19	)	$	(15	)	$	(46	)	$	(79	)

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Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of year		$ 12	$ 11	$ 11
(Reversal) provision for credit losses	(2)	1	(4)	4
Charge-offs		(1)		(3)
Mortgage loans transferred to held for sale		(1)		(1)
Balance, end of year	4	11	4	11
Conventional Single-Family Residential Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of year	6	11	11	10
(Reversal) provision for credit losses	(2)	1	(4)	4
Charge-offs	0	(1)	(3)	(3)
Mortgage loans transferred to held for sale	0	0	0	0
Balance, end of year	4	11	4	11
Multifamily Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of year		1		1
(Reversal) provision for credit losses		0		0
Charge-offs		0		0
Mortgage loans transferred to held for sale		(1)		(1)
Balance, end of year		$ 0		$ 0

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014 letter_of_credit		Dec. 31, 2013 letter_of_credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Number Of Outstanding Standby Letters Of Credit	17		14
Bonds, Hedged with Associated Interest Rate Swaps	$ 470		$ 145
Discount notes, hedged with associated interest rate swaps.	500		0
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	5,437	[1]	4,785	[1]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	19,172	[1]	23,004	[1]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	24,609	[1]	27,789	[1]
Letters of Credit Outstanding, Amount	26		20
Loan Origination Commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	124		110
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	170		34
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	294		144
Federal Home Loan Bank Consolidated Obligations Bonds [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	472	[2]	171	[2]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	0	[2]	0	[2]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	472	[2]	171	[2]
Federal Home Loan Bank Consolidated Obligations Discount Notes [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	2,500	[2]	467	[2]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	0	[2]	0	[2]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 2,500	[2]	$ 467	[2]

[1] Expire within one year includes 17 standby letters of credit for a total of $26 and 14 standby letters of credit for a total of $20 as of September 30, 2014 and December 31, 2013, respectively, that have no stated maturity date and are subject to renewal on an annual basis.

[2] Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations. As of September 30, 2014 and December 31, 2013, $470 and $145 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled. As of September 30, 2014 and December 31, 2013, $500 and $0 of the Bank's unsettled consolidated obligation discount notes were hedged with associated interest rate swaps that had traded but not yet settled

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Capital and Mandatorily Redeemable Capital Stock (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2014		Dec. 31, 2013
Equity [Abstract]
Risk Based Capital, Required	$ 1,789		$ 2,246
Risk Based Capital, Actual	6,412		6,563
Regulatory Capital Ratio, Required	4.00%		4.00%
Regulatory Capital Ratio, Actual	5.15%		5.37%
Regulatory Capital, Required	4,977	[1]	4,893	[1]
Regulatory Capital, Actual	6,412	[1]	6,563	[1]
Leverage Ratio, Required	5.00%		5.00%
Federal Home Loan Bank, Leverage Ratio, Actual	7.73%		8.05%
Leverage Capital, Required	6,222		6,116
Leverage Capital, Actual	$ 9,618		$ 9,845

[1] Mandatorily redeemable capital stock is considered capital for regulatory purposes, and “total regulatory capital” includes the Bank’s $19 and $24 in mandatorily redeemable capital stock as of September 30, 2014 and December 31, 2013, respectively.

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Available-for-sale Securities (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Available-for-sale Securities [Line Items]

Information on Private-Label MBS Transferred and Dates

The following table presents information on the private-label residential MBS transferred. The amounts below represent the value as of the transfer date.

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Estimated Fair Value
Transferred at March 31, 2013	$	12	$	1	$	11

Available-for-Sale Securities Reconciliation

Major Security Types. Private-label residential MBS were as follows:

	Amortized     Cost		Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
As of September 30, 2014	$	1,934	$	17	$	156	$	—	$	2,073

As of December 31, 2013 $ 2,174 $ 27 $ 152 $ — $ 2,299

Summary of Available-for-Sale MBS Issued by Members or Affiliates of Members

A summary of available-for-sale MBS issued by members or affiliates of members, Bank of America Corporation, Charlotte, NC, follows:

	Amortized   Cost		Other-than-temporary   Impairment Recognized in  Accumulated Other Comprehensive Income		Gross   Unrealized   Gains		Gross   Unrealized   Losses		Estimated   Fair  Value
As of September 30, 2014	$	1,250	$	16	$	103	$	—	$	1,337
As of December 31, 2013	$	1,390	$	26	$	98	$	—	$	1,462

Categories of Investments, Marketable Securities, Available-for-sale Securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Available-for-Sale Securities with Unrealized Losses

The following tables summarize the private-label residential MBS with unrealized losses. The unrealized losses are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 Months					12 Months or More					Total
	Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses		Number of   Positions	Estimated   Fair  Value		Gross   Unrealized   Losses
As of September 30, 2014	3	$	135	$	1	9	$	202	$	16	12	$	337	$	17
As of December 31, 2013	6	$	137	$	1	10	$	243	$	26	16	$	380	$	27

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Derivatives and Hedging Activities (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains related to fair value hedge ineffectiveness	$ 78	$ 39	$ 129	$ 134
Total net (losses) gains related to derivatives not designated as hedging instruments	(1)	(5)	(21)	17
Net gains on derivatives and hedging activities	77	34	108	151
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total net gains related to fair value hedge ineffectiveness	78	39	129	134
Total net (losses) gains related to derivatives not designated as hedging instruments	20	16	45	78
Interest rate caps or floors
Derivative Instruments, Gain (Loss) [Line Items]
Total net (losses) gains related to derivatives not designated as hedging instruments	(4)	(1)	(13)	3
Net Interest Settlements [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net (losses) gains related to derivatives not designated as hedging instruments	$ (17)	$ (20)	$ (53)	$ (64)

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Off Balance Sheet Commitments [Table Text Block]

	As of September 30, 2014						As of December 31, 2013
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	5,437	$	19,172	$	24,609	$	4,785	$	23,004	$	27,789
Commitments to fund additional advances	124		170		294		110		34		144
Unsettled consolidated obligation bonds, at par (2)	472		—		472		171		—		171
Unsettled consolidated obligation discount notes, at par (2)	2,500		—		2,500		467		—		467

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Nature of Business Activity

The Bank is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and its funding sources that finance these assets. The goal of the Bank’s interest-rate risk management strategies is not to eliminate interest-rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of interest-earning assets and funding sources. The Bank enters into derivatives to manage the interest-rate risk exposure inherent in its otherwise unhedged assets and funding sources, to achieve the Bank's risk management objectives, and to act as an intermediary between its members and counterparties. For additional information on the Bank’s derivatives and hedging activities, see Note 18—Derivatives and Hedging Activities to the 2013 audited financial statements contained in the Bank’s Form 10-K.

The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. Over-the-counter derivative transactions may be either executed with a counterparty (bilateral derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent), with a Derivative Clearing Organization (cleared derivatives).

Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. The Clearinghouse notifies the clearing agent of the required initial and variation margin and the clearing agent notifies the Bank of the required initial and variation margin. The Bank is not a derivative dealer and does not trade derivatives for short-term profit.

Financial Statement Effect and Additional Financial Information

Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk; the overall risk is much smaller. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged.

The following table summarizes the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.

	As of September 30, 2014								As of December 31, 2013
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	97,053	$	549		$	(1,897	)	$	84,740	$	800		$	(2,336	)
Total derivatives in hedging relationships	97,053		549			(1,897		)	84,740		800			(2,336		)
Derivatives not designated as hedging instruments:
Interest rate swaps	9,961		13			(199		)	4,414		14			(309		)
Interest rate swaptions	40		—			—			40		1			(1		)
Interest rate caps or floors	16,500		24			(16		)	12,500		44			(28		)
Total derivatives not designated as hedging instruments	26,501		37			(215		)	16,954		59			(338		)
Total derivatives before netting and collateral adjustments	$	123,554	586			(2,112		)	$	101,694	859			(2,674		)
Netting adjustments			(404		)	404					(741		)	741
Cash collateral and related accrued interest			(64		)	1,528					(65		)	1,746
Total collateral and netting adjustments (1)			(468		)	1,932					(806		)	2,487
Derivative assets and derivative liabilities			$	118		$	(180	)			$	53		$	(187	)

___________

⁽¹⁾  Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions and also cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.

The following tables present the components of net gains on derivatives and hedging activities as presented in the Statements of Income:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2014			2013			2014			2013
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	78		$	39		$	129		$	134
Total net gains related to fair value hedge ineffectiveness	78			39			129			134
Derivatives not designated as hedging instruments:
Interest rate swaps	20			16			45			78
Interest rate caps or floors	(4		)	(1		)	(13		)	3
Net interest settlements	(17		)	(20		)	(53		)	(64		)
Total net (losses) gains related to derivatives not designated as hedging instruments	(1		)	(5		)	(21		)	17
Net gains on derivatives and hedging activities	$	77		$	34		$	108		$	151

The following tables present, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Bank’s net interest income:

	For the Three Months Ended September 30,
	2014											2013
Hedged Item Type	Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	319		$	(243	)	$	76	$	(229	)	$	114	$	(68	)	$	46		$	(259	)
Consolidated obligations bonds	(134		)	136			2		118			10		(17		)	(7		)	150
Total	$	185		$	(107	)	$	78	$	(111	)	$	124	$	(85	)	$	39		$	(109	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

	For the Nine Months Ended September 30,
	2014										2013
Hedged Item Type	Gains (Losses) on Derivative		Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness		Effect of Derivatives on Net Interest Income(1)			Gains (Losses) on Derivative			Gains (Losses) on Hedged Item			Net Fair Value Hedge Ineffectiveness			Effect of Derivatives on Net Interest Income(1)
Advances	$	80	$	47		$	127	$	(671	)	$	1,486		$	(1,333	)	$	153		$	(797	)
Consolidated obligations bonds	80		(78		)	2		383			(700		)	681			(19		)	469
Total	$	160	$	(31	)	$	129	$	(288	)	$	786		$	(652	)	$	134		$	(328	)

____________

⁽¹⁾  The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item.

Managing Credit Risk on Derivatives

The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative transactions and manages credit risk through credit analysis, collateral requirements, and adherence to the requirements set forth in its policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. For bilateral derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in such contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on all bilateral derivatives. Additionally, collateral related to derivatives with member institutions includes collateral assigned to the Bank, as evidenced by a written security agreement and held by the member institution for the benefit of the Bank.

For cleared derivatives, the Clearinghouse is the Bank's counterparty. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency or similar proceeding involving the Clearinghouse or the Bank’s clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

The Bank presents derivative instruments, related cash collateral, including initial and variation margin, received or pledged and associated accrued interest, on a net basis by clearing agent and/or by counterparty when it has met the netting requirements.

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties. Non-cash collateral received from or pledged to counterparties not offset was less than $1 and $0 as of September 30, 2014 and December 31, 2013, respectively.

	As of September 30, 2014						As of December 31, 2013
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	532		$	(1,825	)	$	820		$	(2,545	)
Cleared derivatives	54			(287		)	39			(129		)
Total gross recognized amount	586			(2,112		)	859			(2,674		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(532		)	1,645			(818		)	2,358
Cleared derivatives	64			287			12			129
Total gross amounts of netting adjustments and cash collateral	(468		)	1,932			(806		)	2,487
Derivative assets and derivative liabilities: (1)
Bilateral derivatives	—			(180		)	2			(187		)
Cleared derivatives	118			—			51			—
Total derivative assets and total derivative liabilities	$	118		$	(180	)	$	53		$	(187	)

____________ 

⁽¹⁾ The Bank had net credit exposure of $118 and $47 as of September 30, 2014 and December 31, 2013, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.

Certain of the Bank’s bilateral derivative instruments contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank’s credit rating. If the Bank’s credit rating is lowered by a NRSRO, the Bank may be required to deliver additional collateral on bilateral derivative instruments in net liability positions. The aggregate fair value of all bilateral derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) as of September 30, 2014 was $1,357 for which the Bank has posted collateral with a fair value of $1,180 in the normal course of business. If the Bank’s credit ratings had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver an additional $114 of collateral at fair value to its derivative counterparties as of September 30, 2014.