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 March 31, 2015

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 April 30, 2015 was 45,074,138.

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	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	62
PART II. OTHER INFORMATION		63
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosure	63
Item 5.	Other Information	63
Item 6.	Exhibits	63
SIGNATURES		64

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 March 31, 2015			As of December 31, 2014
Assets
Cash and due from banks	$	519		$	915
Interest-bearing deposits (including deposits with another FHLBank of $2 as of March 31, 2015 and December 31, 2014)	341			1,010
Securities purchased under agreements to resell	1,745			1,960
Federal funds sold	4,780			6,385
Investment securities:
Trading securities (includes another FHLBank’s bond of $58 and $60 as of March 31, 2015 and December 31, 2014, respectively)	1,258			1,269
Available-for-sale securities	1,905			1,981
Held-to-maturity securities (fair value of $24,177 and $23,988 as of March 31, 2015 and December 31, 2014, respectively)	24,055			23,897
Total investment securities	27,218			27,147
Advances	85,416			99,644
Mortgage loans held for portfolio, net:
Mortgage loans held for portfolio	709			749
Allowance for credit losses on mortgage loans	(2		)	(3		)
Total mortgage loans held for portfolio, net	707			746
Accrued interest receivable	178			179
Derivative assets	151			112
Premises and equipment, net	26			27
Other assets	196			219
Total assets	$	121,277		$	138,344
Liabilities
Interest-bearing deposits	$	1,482		$	1,110
Consolidated obligations, net:
Discount notes	26,902			37,162
Bonds	86,072			92,088
Total consolidated obligations, net	112,974			129,250
Mandatorily redeemable capital stock	17			19
Accrued interest payable	209			145
Affordable Housing Program payable	65			65
Derivative liabilities	149			184
Other liabilities	206			580
Total liabilities	115,102			131,353
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 as of March 31, 2015 and December 31, 2014	748			726
Subclass B2 issued and outstanding shares: 36 and 45 as of March 31, 2015 and December 31, 2014, respectively	3,571			4,424
Total capital stock Class B putable	4,319			5,150
Retained earnings:
Restricted	212			195
Unrestricted	1,565			1,551
Total retained earnings	1,777			1,746
Accumulated other comprehensive income	79			95
Total capital	6,175			6,991
Total liabilities and capital	$	121,277		$	138,344

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 March 31,
	2015			2014
Interest income
Advances	$	62		$	57
Prepayment fees on advances, net	1			—
Interest-bearing deposits	1			1
Securities purchased under agreements to resell	1			—
Federal funds sold	3			2
Trading securities	17			19
Available-for-sale securities	28			32
Held-to-maturity securities	60			62
Mortgage loans	11			13
Total interest income	184			186
Interest expense
Consolidated obligations:
Discount notes	9			8
Bonds	71			88
Total interest expense	80			96
Net interest income	104			90
Reversal of provision for credit losses	(1		)	(4		)
Net interest income after reversal of provision for credit losses	105			94
Noninterest income (loss)
Total other-than-temporary impairment losses	—			—
Net amount of impairment losses reclassified from accumulated other comprehensive income	(1		)	(1		)
Net impairment losses recognized in earnings	(1		)	(1		)
Net losses on trading securities	(12		)	(14		)
Net gains on derivatives and hedging activities	24			15
Gain on extinguishment of debt	—			15
Letters of credit fees	7			7
Other	2			1
Total noninterest income	20			23
Noninterest expense
Compensation and benefits	19			16
Other operating expenses	9			10
Finance Agency	3			3
Office of Finance	1			1
Other	2			1
Total noninterest expense	34			31
Income before assessments	91			86
Affordable Housing Program assessments	9			9
Net income	$	82		$	77

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 March 31,
	2015			2014
Net income	$	82		$	77
Other comprehensive income:
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities:
Net change in fair value on other-than-temporarily impaired available-for-sale securities	(17		)	4
Reclassification of noncredit portion of impairment losses included in net income	1			1
Total other comprehensive (loss) income	(16		)	5
Total comprehensive income	$	66		$	82

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			Total Capital
	Shares		Par Value			Restricted		Unrestricted			Total
Balance, December 31, 2013	49		$	4,883		$	141	$	1,516		$	1,657		$	112		$	6,652
Issuance of capital stock	10		1,023			—		—			—			—			1,023
Repurchase/redemption of capital stock	(15	)	(1,492		)	—		—			—			—			(1,492		)
Net shares reclassified to mandatorily redeemable capital stock	—		(2		)	—		—			—			—			(2		)
Comprehensive income	—		—			15		62			77			5			82
Cash dividends on capital stock	—		—			—		(44		)	(44		)	—			(44		)
Balance, March 31, 2014	44		$	4,412		$	156	$	1,534		$	1,690		$	117		$	6,219
Balance, December 31, 2014	52		$	5,150		$	195	$	1,551		$	1,746		$	95		$	6,991
Issuance of capital stock	9		994			—		—			—			—			994
Repurchase/redemption of capital stock	(18	)	(1,821		)	—		—			—			—			(1,821		)
Net shares reclassified to mandatorily redeemable capital stock	—		(4		)	—		—			—			—			(4		)
Comprehensive income (loss)	—		—			17		65			82			(16		)	66
Cash dividends on capital stock	—		—			—		(51		)	(51		)	—			(51		)
Balance, March 31, 2015	43		$	4,319		$	212	$	1,565		$	1,777		$	79		$	6,175

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 Three Months Ended March 31,
	2015			2014
Operating activities
Net income	$	82		$	77
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	(45		)	(25		)
Reversal of provision for credit losses	(1		)	(4		)
Gain due to change in net fair value adjustment on derivative and hedging activities	(13		)	(16		)
Net change in fair value adjustment on trading securities	12			14
Net impairment losses recognized in earnings	1			1
Gain on extinguishment of debt	—			(15		)
Net change in:
Accrued interest receivable	1			5
Other assets	22			9
Accrued interest payable	64			47
Other liabilities	(27		)	(11		)
Total adjustments	14			5
Net cash provided by operating activities	96			82
Investing activities
Net change in:
Interest-bearing deposits	533			34
Securities purchased under agreements to resell	215			(1,000		)
Federal funds sold	1,605			(3,675		)
Trading securities:
Proceeds from maturities	—			200
Available-for-sale securities:
Proceeds from maturities	69			87
Held-to-maturity securities:
Proceeds from maturities of long-term	950			564
Purchases of long-term	(1,455		)	(1,745		)
Advances:
Proceeds from principal collected	57,614			48,534
Made	(43,198		)	(43,021		)
Mortgage loans:
Proceeds from principal collected	35			38
Proceeds from sale of foreclosed assets	5			7
Purchase of premises, equipment, and software	(1		)	(1		)
Net cash provided by investing activities	16,372			22

7

FEDERAL HOME LOAN BANK OF ATLANTA STATEMENTS OF CASH FLOWS—(Continued) (Unaudited) (In millions)
	For the Three Months Ended March 31,
	2015			2014
Financing activities
Net change in interest-bearing deposits	390			(280		)
Net payments on derivatives containing a financing element	(21		)	(22		)
Proceeds from issuance of consolidated obligations:
Discount notes	209,007			115,262
Bonds	19,926			18,943
Payments for debt issuance costs	(3		)	(2		)
Payments for maturing and retiring consolidated obligations:
Discount notes	(219,266		)	(124,663		)
Bonds	(26,013		)	(11,478		)
Proceeds from issuance of capital stock	994			1,023
Payments for repurchase/redemption of capital stock	(1,821		)	(1,492		)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(6		)	(3		)
Cash dividends paid	(51		)	(44		)
Net cash used in financing activities	(16,864		)	(2,756		)
Net decrease in cash and due from banks	(396		)	(2,652		)
Cash and due from banks at beginning of the period	915			4,374
Cash and due from banks at end of the period	$	519		$	1,722
Supplemental disclosures of cash flow information:
Cash paid for:
Interest	$	19		$	49
Affordable Housing Program assessments, net	$	9		$	8
Noncash investing and financing activities:
Net shares reclassified to mandatorily redeemable capital stock	$	4		$	2
Transfers of mortgage loans to real estate owned	$	5		$	5

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, 2015, 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, 2014, which are contained in the Bank’s 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 13, 2015 (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.

A description of the Bank’s significant accounting policies is included in Note 2—Summary of Significant Accounting Policies to the 2014 audited financial statements contained in the Bank’s Form 10-K.

Revision

The Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for that period. 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:

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

9

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Note 2—Recently Issued and Adopted Accounting Guidance

Recently Issued Accounting Guidance

Simplifying the Presentation of Debt Issuance Costs. In April 2015, the Financial Accounting Standards Board (FASB) issued guidance that requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2015, and early adoption is permitted. The amended guidance will be applied on a retrospective basis. The adoption of this guidance is not expected to have a material effect on the Bank's financial condition or results of operations.

Amendments to the Consolidation Analysis. In February 2015, the FASB issued amended guidance intended to enhance consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new guidance places more emphasis on risk of loss when determining a controlling financial interest. The guidance also reduces the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity. This guidance becomes effective for the Bank for the interim and annual periods ending after December 15, 2015, and early adoption is permitted. The adoption of this guidance is not expected to effect the Bank's financial condition or results of operations.

Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015, the FASB issued amended guidance which eliminates from GAAP the concept of extraordinary items. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amended guidance prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted, provided that the amended guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance will have no effect on the Bank’s financial condition or results of operations.

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.

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 and its effects on the Bank’s financial condition and results of operations has not yet been determined.

Recently Adopted Accounting Guidance

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. The Bank adopted this guidance prospectively on January 1, 2015. The adoption of this guidance did not have a material effect on 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

10

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

exposure to the economic returns of the underlying transferred asset over the transaction’s term. The Bank adopted this guidance effective January 1, 2015. The adoption of this guidance had no effect on the Bank’s financial condition or results of operations.

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. The Bank adopted this guidance prospectively on January 1, 2015. The adoption of this guidance did not have a material 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 March 31, 2015		As of December 31, 2014
Government-sponsored enterprises debt obligations	$	1,199	$	1,208
Another FHLBank’s bond (1)	58		60
State or local housing agency debt obligations	1		1
Total	$	1,258	$	1,269

 ____________

⁽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 March 31,
	2015			2014
Net losses on trading securities held at period end	$	(12	)	$	(14	)

Note 4—Available-for-sale Securities

Major Security Type. Private-label residential mortgaged-backed securities (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 March 31, 2015	$	1,803	$	21	$	123	$	—	$	1,905
As of December 31, 2014	$	1,863	$	19	$	137	$	—	$	1,981

11

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015	4	$	189	$	5	9	$	183	$	16	13	$	372	$	21
As of December 31, 2014	4	$	140	$	2	9	$	191	$	17	13	$	331	$	19

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 March 31, 2015	$	1,174	$	20	$	78	$	—	$	1,232
As of December 31, 2014	$	1,213	$	17	$	90	$	—	$	1,286

Note 5—Held-to-maturity Securities

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

	As of March 31, 2015								As of December 31, 2014
	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	$	79	$	1	$	—	$	80	$	81	$	1	$	—	$	82
Government-sponsored enterprises debt obligations	6,637		4		3		6,638		6,667		2		13		6,656
Mortgage-backed securities:
U.S. agency obligations-guaranteed single-family residential	346		4		—		350		366		5		—		371
Government-sponsored enterprises single-family residential	13,158		127		11		13,274		13,665		125		24		13,766
Government-sponsored enterprises multi-family commercial	2,462		3		4		2,461		1,663		3		7		1,659
Private-label residential	1,373		10		9		1,374		1,455		9		10		1,454
Total	$	24,055	$	149	$	27	$	24,177	$	23,897	$	145	$	54	$	23,988

12

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015
	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	1	$	200	$	—	5	$	1,141	$	3	6	$	1,341	$	3
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	22	1,238		1		21	1,062		10		43	2,300		11
Government-sponsored enterprises multi-family commercial	31	1,685		2		2	289		2		33	1,974		4
Private-label residential	20	239		2		33	399		7		53	638		9
Total	74	$	3,362	$	5	61	$	2,891	$	22	135	$	6,253	$	27

	As of December 31, 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	$	899	$	1	6	$	1,233	$	12	10	$	2,132	$	13
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	8	496		1		26	1,828		23		34	2,324		24
Government-sponsored enterprises multi-family commercial	14	758		1		2	285		6		16	1,043		7
Private-label residential	22	229		1		32	415		9		54	644		10
Total	48	$	2,382	$	4	66	$	3,761	$	50	114	$	6,143	$	54

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 March 31, 2015				As of December 31, 2014
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	968	$	969	$	1,166	$	1,166
Due after one year through five years	5,748		5,749		5,582		5,572
Total non-mortgage-backed securities	6,716		6,718		6,748		6,738
Mortgage-backed securities	17,339		17,459		17,149		17,250
Total	$	24,055	$	24,177	$	23,897	$	23,988

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 March 31, 2015	$	390	$	2	$	3	$	389
As of December 31, 2014	$	419	$	2	$	4	$	417

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 intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments

14

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015.

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 third-party 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 with a population of 10,000 or more people. The Bank’s housing price forecast as of March 31, 2015 included a short-term housing price forecast with projected changes ranging from a decrease of three percent to an increase of eight percent over the 12 month period beginning January 1, 2015. For the vast majority of markets, the projected short-term housing price changes range from an increase of one percent to five 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 Alt-A securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended March 31, 2015, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rates (%)	Default Rates (%)	Loss Severities (%)	Current Credit Enhancement (%)
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
2007	14.82	23.95	36.98	0.06

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 March 31,
	2015			2014
Balance, beginning of period	$	542		$	574
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	1			1
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities)	(10		)	(8		)
Balance, end of period	$	533		$	567

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 and illiquidity in the marketplace. These declines in

15

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015			As of December 31, 2014
Overdrawn demand deposit accounts	$	2		$	—
Due in one year or less	46,608			57,675
Due after one year through two years	9,467			12,283
Due after two years through three years	10,075			9,435
Due after three years through four years	4,046			5,146
Due after four years through five years	2,825			2,910
Due after five years	10,443			10,433
Total par value	83,466			97,882
Discount on AHP (1) advances	(7		)	(7		)
Discount on EDGE (2) advances	(5		)	(5		)
Hedging adjustments	1,965			1,778
Deferred commitment fees	(3		)	(4		)
Total	$	85,416		$	99,644

___________

⁽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 March 31, 2015		As of December 31, 2014
Overdrawn demand deposit accounts	$	2	$	—
Due or convertible in one year or less	49,360		60,551
Due or convertible after one year through two years	9,019		12,040
Due or convertible after two years through three years	8,508		7,866
Due or convertible after three years through four years	3,468		4,241
Due or convertible after four years through five years	2,850		2,900
Due or convertible after five years	10,259		10,284
Total par value	$	83,466	$	97,882

16

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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

	As of March 31, 2015		As of December 31, 2014
Fixed-rate:
Due in one year or less	$	33,357	$	42,839
Due after one year	29,680		30,089
Total fixed-rate	63,037		72,928
Variable-rate:
Due in one year or less	13,253		14,836
Due after one year	7,176		10,118
Total variable-rate	20,429		24,954
Total par value	$	83,466	$	97,882

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. The concentration of the Bank’s advances to its 10 largest borrowers was $59,290 and $72,799, as of March 31, 2015 and December 31, 2014, respectively. This concentration represented 71.0 percent and 74.4 percent, of total advances outstanding as of March 31, 2015 and December 31, 2014, respectively.

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 March 31, 2015 and December 31, 2014. No advance was past due as of March 31, 2015 and December 31, 2014.

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 March 31, 2015			As of December 31, 2014
Fixed-rate medium-term (1)single-family residential mortgage loans	$	93		$	103
Fixed-rate long-term single-family residential mortgage loans	617			648
Total unpaid principal balance	710			751
Premiums	2			2
Discounts	(3		)	(4		)
Total	$	709		$	749

____________

⁽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 March 31, 2015		As of December 31, 2014
Conventional loans	$	659	$	698
Government-guaranteed or insured loans	51		53
Total unpaid principal balance	$	710	$	751

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.

17

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Note 9—Allowance for Credit Losses

The activity in the allowance for credit losses related to conventional single-family residential mortgage loans was as follows:

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	3		$	11
Reversal of provision for credit losses	(1		)	(4		)
Charge-offs	—			(3		)
Balance, end of period	$	2		$	4

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

	As of March 31, 2015		As of December 31, 2014
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1
Collectively evaluated for impairment	2		2
Total allowance for credit losses	$	2	$	3
Recorded investment:
Individually evaluated for impairment	$	14	$	15
Collectively evaluated for impairment	647		685
Total recorded investment	$	661	$	700

18

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	19		$	4		$	23
Past due 60-89 days	5			1			6
Past due 90 days or more	25			5			30
Total past due mortgage loans	49			10			59
Total current mortgage loans	612			41			653
Total mortgage loans (1)	$	661		$	51		$	712
Other delinquency statistics:
In process of foreclosure (2)	$	15		$	2		$	17
Seriously delinquent rate (3)	3.87		%	10.70		%	4.36		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	26		$	—		$	26

____________

⁽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, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	22		$	6		$	28
Past due 60-89 days	6			2			8
Past due 90 days or more	33			6			39
Total past due mortgage loans	61			14			75
Total current mortgage loans	639			39			678
Total mortgage loans (1)	$	700		$	53		$	753
Other delinquency statistics:
In process of foreclosure (2)	$	19		$	1		$	20
Seriously delinquent rate (3)	4.73		%	10.33		%	5.13		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	33		$	—		$	33

____________

⁽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. Troubled debt restructurings are evaluated individually for impairment.

The table below presents the Bank's recorded investment balance in mortgage loans classified as troubled debt restructurings:

	As of March 31, 2015						As of December 31, 2014
	Performing		Non-performing		Total		Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	3	$	14	$	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 restructurings during the three months ended March 31, 2015 and 2014.

The financial amounts related to the Bank's troubled debt restructurings are not material to the Bank's financial condition or results of operations for the periods reported.

20

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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.

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

	As of March 31, 2015		As of December 31, 2014
Fixed-rate	$	74,419	$	77,912
Step up/down	5,901		6,301
Simple variable-rate	5,375		7,550
Variable-rate capped floater	—		25
Total par value	$	85,695	$	91,788

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

	As of March 31, 2015				As of December 31, 2014
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	44,203		0.29	$	52,081		0.24
Due after one year through two years	15,676			1.39	16,116			1.27
Due after two years through three years	12,407			1.99	9,683			2.22
Due after three years through four years	4,826			1.63	4,971			1.67
Due after four years through five years	3,681			1.71	3,094			1.56
Due after five years	4,902			2.19	5,843			2.12
Total par value	85,695			0.98	91,788			0.86
Premiums	65				73
Discounts	(19		)		(21		)
Hedging adjustments	331				248
Total	$	86,072			$	92,088

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

	As of March 31, 2015		As of December 31, 2014
Noncallable	$	59,833	$	69,164
Callable	25,862		22,624
Total par value	$	85,695	$	91,788

21

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 March 31, 2015		As of December 31, 2014
Due or callable in one year or less	$	62,826	$	67,980
Due or callable after one year through two years	11,092		12,220
Due or callable after two years through three years	7,769		7,796
Due or callable after three years through four years	2,538		2,177
Due or callable after four years through five years	803		875
Due or callable after five years	667		740
Total par value	$	85,695	$	91,788

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 March 31, 2015	$	26,902	$	26,913	0.11
As of December 31, 2014	$	37,162	$	37,169	0.10

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 March 31, 2015						As of December 31, 2014
	Required			Actual			Required			Actual
Risk based capital	$	2,010		$	6,113		$	2,113		$	6,914
Total capital-to-assets ratio	4.00		%	5.04		%	4.00		%	5.00		%
Total regulatory capital (1)	$	4,851		$	6,113		$	5,534		$	6,914
Leverage ratio	5.00		%	7.56		%	5.00		%	7.50		%
Leverage capital	$	6,064		$	9,169		$	6,917		$	10,371

____________

⁽¹⁾ Total regulatory capital does not include accumulated other comprehensive income, but does include mandatorily redeemable capital stock.

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

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	19		$	24
Capital stock subject to mandatory redemption reclassified from equity	4			2
Repurchase/redemption of mandatorily redeemable capital stock	(6		)	(3		)
Balance, end of period	$	17		$	23

22

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015		As of December 31, 2014
Due in one year or less	$	10	$	9
Due after one year through two years	6		8
Due after two years through three years	—		1
Due after four years through five years	1		1
Total	$	17	$	19

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			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2013	$	(13	)	$	125		$	112
Other comprehensive income (loss) before reclassifications:
Net change in fair value	—			4			4
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive income	—			5			5
Balance, March 31, 2014	$	(13	)	$	130		$	117
Balance, December 31, 2014	$	(23	)	$	118		$	95
Other comprehensive income before reclassifications:
Net change in fair value	—			(17		)	(17		)
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive loss	—			(16		)	(16		)
Balance, March 31, 2015	$	(23	)	$	102		$	79

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 2014 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

23

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 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 March 31, 2015								As of December 31, 2014
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	110,373	$	506		$	(2,100	)	$	103,004	$	454		$	(1,995	)
Derivatives not designated as hedging instruments:
Interest rate swaps	2,564		14			(123		)	6,348		12			(131		)
Interest rate caps or floors	16,500		16			(10		)	16,500		20			(13		)
Total derivatives not designated as hedging instruments	19,064		30			(133		)	22,848		32			(144		)
Total derivatives before netting and collateral adjustments	$	129,437	536			(2,233		)	$	125,852	486			(2,139		)
Netting adjustments and cash collateral (1)			(385		)	2,084					(374		)	1,955
Derivative assets and derivative liabilities			$	151		$	(149	)			$	112		$	(184	)

___________

⁽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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

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 March 31,
	2015			2014
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	29		$	25
Derivatives not designated as hedging instruments:
Interest rate swaps	10			13
Interest rate caps or floors	—			(5		)
Net interest settlements	(15		)	(18		)
Total net losses related to derivatives not designated as hedging instruments	(5		)	(10		)
Net gains on derivatives and hedging activities	$	24		$	15

24

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 March 31,
	2015												2014
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	$	(184	)	$	219		$	35		$	(192	)	$	(91	)	$	114		$	23	$	(218	)
Consolidated obligations:
Bonds	79			(85		)	(6		)	117			110			(108		)	2		130
Discount notes	1			(1		)	—			1			—			—			—		—
Total	$	(104	)	$	133		$	29		$	(74	)	$	19		$	6		$	25	$	(88	)

____________

⁽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 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 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.

25

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.

	As of March 31, 2015						As of December 31, 2014
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	468		$	(1,755	)	$	439		$	(1,757	)
Cleared derivatives	68			(478		)	47			(382		)
Total gross recognized amount	536			(2,233		)	486			(2,139		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(462		)	1,606			(438		)	1,573
Cleared derivatives	77			478			64			382
Total gross amounts of netting adjustments and cash collateral	(385		)	2,084			(374		)	1,955
Derivative assets and derivative liabilities:
Bilateral derivatives	6			(149		)	1			(184		)
Cleared derivatives	145			—			111			—
Total derivative assets and total derivative liabilities	151			(149		)	112			(184		)
Non-cash collateral received or pledged not offset-cannot be sold or repledged:(1)
Bilateral derivatives	3			—			1			—
Net unsecured amounts: (2)
Bilateral derivatives	3			(149		)	—			(184		)
Cleared derivatives	145			—			111			—
Total net unsecured amount	$	148		$	(149	)	$	111		$	(184	)

____________ 

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

⁽²⁾ The Bank had net credit exposure of $146 and $110 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 was $1,342 for which the Bank has posted collateral with a fair value of $1,194 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 $89 of collateral at fair value to its derivative counterparties as of March 31, 2015.

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

26

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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.

Estimated Fair Value Measurements. 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 or nonrecurring basis on its Statements of Condition. The Bank measures certain impaired mortgage loans held for portfolio and real estate owned at Level 3 on a nonrecurring basis. Impaired mortgage loans are subject to being measured at fair value on a nonrecurring basis due to the recognition of a credit loss. 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.

27

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	As of March 31, 2015
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,199		$	—	$	—		$	1,199
Another FHLBank’s bond	—		58			—		—			58
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,258			—		—			1,258
Available-for-sale securities:
Private-label residential MBS	—		—			1,905		—			1,905
Derivative assets:
Interest-rate related	—		536			—		(385		)	151
Grantor trust (included in Other assets)	26		—			—		—			26
Total recurring assets at fair value	$	26	$	1,794		$	1,905	$	(385	)	$	3,340
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Total recurring liabilities at fair value	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	6	$	—		$	6

____________ 

⁽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, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,208		$	—	$	—		$	1,208
Another FHLBank’s bond	—		60			—		—			60
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,269			—		—			1,269
Available-for-sale securities:
Private-label residential MBS	—		—			1,981		—			1,981
Derivative assets:
Interest-rate related	—		486			—		(374		)	112
Grantor trust (included in Other assets)	25		—			—		—			25
Total recurring assets at fair value	$	25	$	1,755		$	1,981	$	(374	)	$	3,387
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Total recurring liabilities at fair value	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	7	$	—		$	7

____________ 

⁽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.

28

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	1,981		$	2,299
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(1		)	(1		)
Included in other comprehensive income (2)	(16		)	5
Accretion of credit losses in net interest income	10			7
Settlements	(69		)	(87		)
Balance, end of period	$	1,905		$	2,223

____________ 

⁽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.

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 due to the short-term nature and negligible credit risk.

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

29

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014.

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 equivalent to the replacement advance rates for advances with similar terms as of March 31, 2015 and December 31, 2014, respectively. The Bank calculates its replacement advance rates at a spread to its cost of funds. The Bank's cost of funds approximates the consolidated obligation curve. To estimate the fair values of advances with optionality, market-based expectations of future interest rate volatility implied from current market prices for similar options are also used. 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 due to the short-term nature and negligible credit risk.

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 curve 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 March 31, 2015 and December 31, 2014.

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

30

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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 London Interbank Offered Rate (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 Office of Finance constructs an internal curve, referred to as the consolidated obligation curve, using the U.S. Treasury curve as a base curve that is then adjusted by adding indicative spreads obtained from market observable sources. These market indications are generally derived from pricing indications from dealers, historical pricing relationships, recent government-sponsored enterprise trades, and secondary market activity. To estimate the fair values of consolidated obligations with optionality the Bank uses market based expectations of future interest rate volatility implied from current market prices for similar options.

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 March 31, 2015 and December 31, 2014. 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.

31

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

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

	As of March 31, 2015
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	519		$	519		$	519		$	—		$	—	$	—
Interest bearing-deposits	341			341			—			341			—		—
Securities purchased under agreements to resell	1,745			1,745			—			1,745			—		—
Federal funds sold	4,780			4,780			—			4,780			—		—
Trading securities	1,258			1,258			—			1,258			—		—
Available-for-sale securities	1,905			1,905			—			—			1,905		—
Held-to-maturity securities	24,055			24,177			—			22,803			1,374		—
Advances	85,416			84,937			—			84,937			—		—
Mortgage loans held for portfolio, net	707			788			—			788			—		—
Accrued interest receivable	178			178			—			178			—		—
Derivative assets	151			151			—			536			—		(385		)
Grantor trust assets (included in Other assets)	26			26			26			—			—		—
Liabilities:
Interest-bearing deposits	(1,482		)	(1,482		)	—			(1,482		)	—		—
Consolidated obligations, net:
Discount notes	(26,902		)	(26,899		)	—			(26,899		)	—		—
Bonds	(86,072		)	(86,253		)	—			(86,253		)	—		—
Mandatorily redeemable capital stock	(17		)	(17		)	(17		)	—			—		—
Accrued interest payable	(209		)	(209		)	—			(209		)	—		—
Derivative liabilities	(149		)	(149		)	—			(2,233		)	—		2,084

____________ 

⁽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.

32

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

	As of December 31, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	915		$	915		$	915		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	1,960			1,960			—			1,960			—		—
Federal funds sold	6,385			6,385			—			6,385			—		—
Trading securities	1,269			1,269			—			1,269			—		—
Available-for-sale securities	1,981			1,981			—			—			1,981		—
Held-to-maturity securities	23,897			23,988			—			22,534			1,454		—
Advances	99,644			99,579			—			99,579			—		—
Mortgage loans held for portfolio, net	746			828			—			828			—		—
Accrued interest receivable	179			179			—			179			—		—
Derivative assets	112			112			—			486			—		(374		)
Grantor trust assets (included in Other assets)	25			25			25			—			—		—
Liabilities:
Interest-bearing deposits	(1,110		)	(1,110		)	—			(1,110		)	—		—
Consolidated obligations, net:
Discount notes	(37,162		)	(37,162		)	—			(37,162		)	—		—
Bonds	(92,088		)	(92,211		)	—			(92,211		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(145		)	(145		)	—			(145		)	—		—
Derivative liabilities	(184		)	(184		)	—			(2,139		)	—		1,955

____________ 

⁽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 other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $699,589 and $718,218 as of March 31, 2015 and December 31, 2014, respectively, exclusive of the Bank’s own outstanding consolidated obligations. As of March 31, 2015, 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 March 31, 2015.

33

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 March 31, 2015						As of December 31, 2014
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	8,240	$	21,793	$	30,033	$	7,409	$	23,519	$	30,928
Commitments to fund additional advances	309		65		374		189		20		209
Unsettled consolidated obligation bonds, at par (2)	376		—		376		100		—		100
Unsettled consolidated obligation discount notes, at par (2)	—		—		—		50		—		50

____________

⁽¹⁾  Expire within one year includes 17 standby letters of credit for a total of $26 and 17 standby letters of credit for a total of $25 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, $376 and $100 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled, respectively. As of December 31, 2014, $50 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 $130 and $152 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014. 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.

The Bank defines related parties as each of the other FHLBanks and those members with regulatory capital stock outstanding in excess of 10 percent of the Bank's total regulatory capital stock. Based on this definition, two member institutions, Bank of America, National Association and Navy Federal Credit Union, which held 16.5 percent and 10.1 percent, respectively, of the Bank’s total regulatory capital stock as of March 31, 2015, were considered related parties.

34

FEDERAL HOME LOAN BANK OF ATLANTA

NOTES TO FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions)

Total advances outstanding to Bank of America, National Association were $16,512 and $17,512 as of March 31, 2015 and December 31, 2014, respectively. Total deposits held in the name of Bank of America, National Association wereless than$1as ofMarch 31, 2015 and December 31, 2014. No mortgage loans or MBS were acquired from Bank of America, National Association during the three months ended March 31, 2015 and 2014.

Total advances outstanding to Navy Federal Credit Union were $9,986 and $9,942 as of March 31, 2015 and December 31, 2014, respectively. Total deposits held in the name of Navy Federal Credit Union were less than $1 as of March 31, 2015 and December 31, 2014, respectively. No mortgage loans or mortgage-backed securities were acquired from Navy Federal Credit Union during the three months ended March 31, 2015 and 2014.

35

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 March 31, 2015 and December 31, 2014, and results of operations for the quarters ended March 31, 2015 and 2014. 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, 2014.

Executive Summary

Financial Condition

As of March 31, 2015, total assets were $121.3 billion, a decrease of $17.1 billion, or 12.3 percent, from December 31, 2014. This decrease was primarily due to a $14.2 billion, or 14.3 percent, decrease in advances and a $2.5 billion, or 26.6 percent decrease in short-term investments.

As of March 31, 2015, total liabilities were $115.1 billion, a decrease of $16.3 billion, or 12.4 percent, from December 31, 2014. This increase was primarily due to a $16.3 billion, or 12.6 percent, decrease in consolidated obligations (COs).

As of March 31, 2015, total capital was $6.2 billion, a decrease of $816 million, or 11.7 percent, from December 31, 2014. This decrease wasprimarily due to a decrease in the Bank's subclass B2 activity-based capital stock. The decrease in the members' activity-based capital stock resulted from a decrease in advances during the period and a decrease in the factor used to calculate members' activity-based stock requirement from 4.50 percent to 4.25 percent of the members' outstanding par value of advances, which became effective on March 20, 2015.

36

Results of Operations

The Bank recorded net income of $82 million for the first quarter of 2015, an increase of $5 million, or 6.78 percent, from net income of $77 million for the first quarter of 2014. Interest income decreased by $2 million, offset by a $16 million decrease in interest expense, which resulted in an increase in net interest income of $14 million for the first quarter of 2015. The increase in net interest income during the first quarter of 2015, compared to the same period in 2014, is primarily due to a reduction in rates on the Bank's long-term debt during the period. Noninterest income decreased by $3 million during the first quarter of 2015, compared to the same period in 2014, primarily due to an increase in net gains on derivatives and hedging activities offset by the gain on extinguishment of debt in 2014.

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 5.00 percent for the first quarter of 2015, compared to 4.75 percent for the first quarter of 2014. ROE increased for the first quarter of 2015, compared to the first quarter of 2014, primarily as a result of an increase in net income that had a greater impact than the increase in average total capital during the period. ROE spread to three-month average LIBOR increased to 474 basis points for the first quarter of 2015, compared to 451 basis points for the first quarter of 2014. The increase in the ROE spread to LIBOR was primarily due to the increase in ROE.

The Bank's interest rate spread was 30 basis points for the first quarter 2015 compared to 27 basis points for the first quarter 2014.

Business Outlook

The Bank’s business outlook remains largely unchanged from the discussion in the Bank’s Form 10-K. Advances declined during the first quarter of 2015, primarily due to scheduled maturities of short-term advances. The Bank expects overall advances balances to fluctuate during 2015, as members favor short-term advances as they continue to experience high levels of liquidity and low-to-modest loan demand. 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.

37

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
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
Statements of Condition (at period end)
Total assets	$	121,277		$	138,344		$	124,437		$	128,942		$	119,467
Investments (1)	34,084			36,502			30,143			30,894			32,206
Mortgage loans held for portfolio	709			749			792			838			883
Allowance for credit losses on mortgage loans	(2		)	(3		)	(4		)	(6		)	(4		)
Advances	85,416			99,644			88,627			95,128			84,166
Interest-bearing deposits	1,482			1,110			1,271			1,432			1,465
Consolidated obligations, net:
Discount notes	26,902			37,162			26,055			30,679			22,801
Bonds	86,072			92,088			89,670			89,438			88,276
Total consolidated obligations, net (2)	112,974			129,250			115,725			120,117			111,077
Mandatorily redeemable capital stock	17			19			19			21			23
Affordable Housing Program payable	65			65			69			71			76
Capital stock - putable	4,319			5,150			4,654			4,906			4,412
Retained earnings	1,777			1,746			1,739			1,708			1,690
Accumulated other comprehensive income	79			95			127			130			117
Total capital	6,175			6,991			6,520			6,744			6,219
Statements of Income (for the period ended)
Net interest income	104			95			46			92			90
(Reversal) provision for credit losses	(1		)	(1		)	(2		)	2			(4		)
Net impairment losses recognized in earnings	(1		)	—			(2		)	—			(1		)
Net losses on trading securities	(12		)	(14		)	(19		)	(13		)	(14		)
Net gains on derivatives and hedging activities	24			12			77			16			15
Letters of credit fees	7			6			7			6			7
Other income (3)	2			1			4			1			16
Noninterest expense	34			37			32			32			31
Income before assessments	91			64			83			68			86
Affordable Housing Program assessments	9			6			9			6			9
Net income	82			58			74			62			77
Performance Ratios (%)
Return on equity (4)	5.00			3.45			4.45			3.81			4.75
Return on assets (5)	0.25			0.17			0.22			0.19			0.25
Net interest margin (6)	0.31			0.29			0.14			0.29			0.29
Regulatory capital ratio (at period end) (7)	5.04			5.00			5.15			5.15			5.13
Equity to assets ratio (8)	4.94			5.03			5.05			5.03			5.24
Dividend payout ratio (9)	62.06			67.30			58.11			71.35			56.88

38

____________

⁽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):

March 31, 2015	$	699,589
December 31, 2014	718,218
September 30, 2014	701,462
June 30, 2014	680,240
March 31, 2014	643,157

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

⁽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, which does not include accumulated other comprehensive income, but does include mandatorily redeemable capital stock, as a percentage of total assets as of 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 March 31, 2015			As of December 31, 2014			Increase (Decrease)
	Amount		Percent of Total	Amount		Percent of Total	Amount			Percent
Advances	$	85,416	70.44	$	99,644	72.03	$	(14,228	)	(14.28	)
Long-term investments	27,218		22.44	27,147		19.62	71			0.26
Short-term investments	6,866		5.66	9,355		6.76	(2,489		)	(26.61	)
Mortgage loans, net	707		0.58	746		0.54	(39		)	(5.23	)
Other assets	1,070		0.88	1,452		1.05	(382		)	(26.26	)
Total assets	$	121,277	100.00	$	138,344	100.00	$	(17,067	)	(12.34	)
Consolidated obligations, net:
Discount notes	$	26,902	23.37	$	37,162	28.29	$	(10,260	)	(27.61	)
Bonds	86,072		74.78	92,088		70.11	(6,016		)	(6.53	)
Deposits	1,482		1.29	1,110		0.84	372			33.45
Other liabilities	646		0.56	993		0.76	(347		)	(34.88	)
Total liabilities	$	115,102	100.00	$	131,353	100.00	$	(16,251	)	(12.37	)
Capital stock	$	4,319	69.95	$	5,150	73.67	$	(831	)	(16.14	)
Retained earnings	1,777		28.77	1,746		24.96	31			1.79
Accumulated other comprehensive income	79		1.28	95		1.37	(16		)	(17.21	)
Total capital	$	6,175	100.00	$	6,991	100.00	$	(816	)	(11.68	)

Advances

Total advances decreased as of March 31, 2015 compared to December 31, 2014, primarily due to maturing short-term advances and prepayment of these advances during the period. As of March 31, 2015, 75.5 percent of the Bank’s advances were fixed-rate, compared to 74.5 percent as of December 31, 2014. 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, the majority of which are based on LIBOR. As of March 31, 2015 and December 31, 2014, 47.0 percent and 41.9 percent, respectively, of the Bank’s fixed-rate advances were swapped and 2.35 percent and 2.56 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 that may be tied to indices such as the federal funds rate, prime rate, or constant maturity swap rates.

39

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

	As of March 31, 2015			As of December 31, 2014
	Amount		Percent of Total	Amount		Percent of Total
Fixed rate (1)	$	41,814	50.10	$	50,975	52.08
Adjustable or variable rate indexed	20,085		24.06	24,501		25.03
Hybrid	16,955		20.31	17,679		18.06
Convertible	2,935		3.52	3,040		3.11
Amortizing (2)	1,677		2.01	1,687		1.72
Total par value	$	83,466	100.00	$	97,882	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 March 31, 2015		As of December 31, 2014		Amount			Percent
Short-term investments:
Interest-bearing deposits (1)	$	341	$	1,010	$	(669	)	(66.27	)
Securities purchased under agreements to resell	1,745		1,960		(215		)	(10.97	)
Federal funds sold	4,780		6,385		(1,605		)	(25.14	)
Total short-term investments	6,866		9,355		(2,489		)	(26.61	)
Long-term investments:
State or local housing agency debt obligations	80		82		(2		)	(2.47	)
U.S. government agency debt obligations	7,894		7,935		(41		)	(0.52	)
Mortgage-backed securities:
U.S. agency obligations-guaranteed single-family residential	346		366		(20		)	(5.50	)
Government-sponsored enterprises single-family residential	13,158		13,665		(507		)	(3.70	)
Government-sponsored enterprises multi-family commercial	2,462		1,663		799			48.01
Private-label residential	3,278		3,436		(158		)	(4.61	)
Total mortgage-backed securities	19,244		19,130		114			0.59
Total long-term investments	27,218		27,147		71			0.26
Total investments	$	34,084	$	36,502	$	(2,418	)	(6.63	)

____________

⁽¹⁾  As of March 31, 2015 and December 31, 2014, interest-bearing deposits includes a $339 million and $1.0 billion, respectively, business money market account with Branch Banking and Trust Company, one of the Bank’s ten largest borrowers.

Total investments decreased from December 31, 2014 to March 31, 2015 primarily due to a decrease in short-term investments. The amount held in short-term investments will vary each day based on the Bank’s liquidity requirements as a result of advances demand, the earnings rates, and the availability of high quality counterparties in the federal funds market.

40

Finance Agency regulations prohibit an FHLBank from purchasing MBS and asset-backed securities if its investment in such securities exceeds 300 percent of the FHLBank’s previous month-end regulatory capital on the day it purchases the securities. As of March 31, 2015, these investments amounted to 313 percent of the Bank's regulatory capital due to a decrease in regulatory capital that resulted from a decrease in advances. The Bank was in compliance with the regulatory limit at the time of its MBS purchases and will not be required to sell any previously purchased MBS. As of December 31, 2014, the Bank's MBS to regulatory capital amounted to 275.

Mortgage Loans Held for Portfolio

The decrease in mortgage loans held for portfolio from December 31, 2014 to March 31, 2015 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 March 31, 2015 and December 31, 2014, 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 March 31, 2015	As of December 31, 2014
	Percent of Total	Percent of Total
Florida	27.17	26.98
South Carolina	25.46	25.26
Georgia	13.97	14.14
North Carolina	10.49	10.57
Virginia	7.95	8.04
All other	14.96	15.01
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 consolidated obligation bonds from December 31, 2014 to March 31, 2015 is a result of a decrease in advances outstanding during the period. As of March 31, 2015, CO issuances financed 93.2 percent of the $121.3 billion in total assets, remaining relatively stable compared to the financing ratio of 93.4 percent as of December 31, 2014.

As of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 89.2 percent and 88.6 percent, respectively, of the Bank’s fixed-rate CO bonds were swapped. As of March 31, 2015, none of the Bank's variable-rate CO bonds were swapped and 0.33 percent of the Bank’s variable-rate CO bonds were swapped as of December 31, 2014. As of March 31, 2015, and December 31, 2014, 33.1 percent and 4.65 percent, respectively, of the Bank's fixed-rate CO discount notes were swapped.

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 fluctuate significantly. As a matter of prudence, the Bank typically invests deposit funds in liquid short-term assets. 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 March 31, 2015.

41

Capital

The decreasein total capital from December 31, 2014 to March 31, 2015 wasprimarily due to a decrease in the Bank's subclass B2 activity-based capital stock resulting from a decrease in outstanding advances during the period. Also, the Bank's board of directors approved a decrease in the factor used to calculate members' activity-based stock requirement from 4.50 percent to 4.25 percent of the members' outstanding par value of advances, which became effective on March 20, 2015.

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 March 23, 2015, the Bank received notification from the Director that, based on December 31, 2014 data, the Bank meets the definition of “adequately capitalized.”

As of March 31, 2015 and December 31, 2014, the Bank had capital stock subject to mandatory redemption from 13 and 12 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.

42

Results of Operations

The following is a discussion and analysis of the Bank's results of operations for the first quarter of 2015 and 2014.

Net Income

The following table sets forth the Bank’s significant income items for the first quarter of 2015 and 2014, 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 March 31,						Increase (Decrease)
	2015			2014			Amount			Percent
Net interest income	$	104		$	90		$	14		15.63
Reversal of provision for credit losses	(1		)	(4		)	3			74.23
Noninterest income	20			23			(3		)	(9.49	)
Noninterest expense	34			31			3			9.22
Affordable Housing Program assessments	9			9			—			6.65
Net income	$	82		$	77		$	5		6.78

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 Bank also recognizes significant improvements in expected cash flows related to other-than-temporary impairment securities through net interest income.

The increase in net interest income during the first quarter of 2015, compared to the same period in 2014, is primarily due to a reduction in rates on the Bank's long-term debt during the period. The increase in net interest income was partially offset by a 28 basis points decrease in yield on the Bank's long-term investments portfolio during the period. The yield on the Bank’s long-term investments portfolio continued to decline primarily due to the maturity or prepayment of higher yielding investments and the purchase of lower yielding instruments.

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 $131 million and $130 million for the first quarter of 2015 and 2014, 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 first quarter of 2015 and 2014 (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.

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	For the Three Months Ended March 31,
	2015						2014
	Average  Balance			Interest		Yield/     Rate (%)	Average  Balance			Interest		Yield/     Rate (%)
Assets
Interest-bearing deposits (1)	$	2,602		$	1	0.17	$	2,734		$	1	0.13
Securities purchased under agreements to resell	2,694			1		0.12	885			—		0.05
Federal funds sold	8,521			3		0.12	7,726			2		0.08
Long-term investments (2)	26,502			105		1.61	24,231			113		1.89
Advances	92,639			63		0.28	87,626			57		0.26
Mortgage loans (3)	728			11		6.18	903			13		5.89
Loans to other FHLBanks	2			—		0.09	1			—		0.05
Total interest-earning assets	133,688			184		0.56	124,106			186		0.61
Allowance for credit losses on mortgage loans	(3		)				(7		)
Other assets	1,413						1,219
Total assets	$	135,098					$	125,318
Liabilities and Capital
Interest-bearing deposits (4)	$	1,229		—		0.02	$	1,457		—		0.01
Short-term debt	37,455			9		0.10	30,587			8		0.10
Long-term debt	87,383			71		0.33	84,153			88		0.42
Other borrowings	19			—		4.24	24			—		4.74
Total interest-bearing liabilities	126,086			80		0.26	116,221			96		0.34
Other liabilities	2,337						2,527
Total capital	6,675						6,570
Total liabilities and capital	$	135,098					$	125,318
Net interest income and net yield on interest-earning assets				$	104	0.31				$	90	0.29
Interest rate spread						0.30						0.27
Average interest-earning assets to interest-bearing liabilities						106.03						106.78

____________ 

⁽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.

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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 change in net interest income during the first quarter of 2015, compared to the same period in 2014, was primarily rate related.

	For the Three Months Ended March 31,
	2015 vs. 2014
	Volume (1)			Rate (1)			Increase (Decrease)
Increase (decrease) in interest income:
Securities purchased under agreements to resell	$	1		$	—		$	1
Federal funds sold	—			1			1
Long-term investments	10			(18		)	(8		)
Advances	3			3			6
Mortgage loans	(3		)	1			(2		)
Total	11			(13		)	(2		)
Increase (decrease) in interest expense:
Short-term debt	1			—			1
Long-term debt	4			(21		)	(17		)
Total	5			(21		)	(16		)
Increase in net interest income	$	6		$	8		$	14

____________ 

⁽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 March 31,						Increase (Decrease)
	2015			2014			Amount			Percent
Net impairment losses recognized in earnings	$	(1	)	$	(1	)	$	—		11.76
Net losses on trading securities	(12		)	(14		)	2			18.88
Net gains on derivatives and hedging activities	24			15			9			60.87
Gain on extinguishment of debt	—			15			(15		)	(100.00	)
Letters of credit fees	7			7			—			7.55
Other	2			1			1			76.79
Total noninterest income	$	20		$	23		$	(3	)	(9.49	)

The decrease in total noninterest income during the first quarter of 2015, compared to the same period in 2014, is primarily due to an increase in net gains on derivatives and hedging activities offset by the gain on extinguishment of debt in 2014. The increase in net gains on derivatives and hedging activities during the first quarter of 2015 compared to the same period in 2014 includes a $10 million increase in gains, offset by corresponding financial statement line item amortization expenses that are included in net interest income resulting from hedge accounting re-designations and a $3 million decrease in stand-alone derivative interest expense reclassifications. Net gains on derivatives and hedging activities also includes a $4 million decrease in derivative gains for the first quarter of 2015 that is used to offset the $2 million change in fair value on the trading securities for the same period.

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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 March 31, 2015
	Advances			Investments			Consolidated Obligation Bonds			Consolidated Obligation Discount Notes		Balance Sheet			Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(59	)	$	—		$	2		$	—	$	—		$	(57	)
Net interest settlements included in net interest income (2)	(192		)	—			117			1		—			(74		)
Total effect on net interest (expense) income	$	(251	)	$	—		$	119		$	1	$	—		$	(131	)
Net gains on derivatives and hedging activities:
Gains (losses) on fair value hedges	$	35		$	—		$	(6	)	$	—	$	—		$	29
(Losses) gains on derivatives not receiving hedge accounting including net interest settlements	—			(4		)	2			—		(3		)	(5		)
Total net gains (losses) on derivatives and hedging activities	35			(4		)	(4		)	—		(3		)	24
Net losses on trading securities (3)	—			(12		)	—			—		—			(12		)
Total effect on noninterest income (loss)	$	35		$	(16	)	$	(4	)	$	—	$	(3	)	$	12

____________ 

⁽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 March 31, 2014
	Advances			Investments			Consolidated Obligation Bonds			Balance Sheet			Total
Net interest income:
Amortization or accretion of hedging activities in net interest income (1)	$	(45	)	$	—		$	3		$	—		$	(42	)
Net interest settlements included in net interest income (2)	(218		)	—			130			—			(88		)
Total effect on net interest (expense) income	$	(263	)	$	—		$	133		$	—		$	(130	)
Net gains on derivatives and hedging activities:
Gains on fair value hedges	$	23		$	—		$	2		$	—		$	25
Losses on derivatives not receiving hedge accounting including net interest settlements	—			(2		)	(1		)	(7		)	(10		)
Total net gains (losses) on derivatives and hedging activities	23			(2		)	1			(7		)	15
Net losses on trading securities (3)	—			(14		)	—			—			(14		)
Total effect on noninterest income (loss)	$	23		$	(16	)	$	1		$	(7	)	$	1

____________ 

⁽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 first quarter of 2015, compared to the same period in 2014.

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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, a 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 needs for five business days if it is unable to access the capital markets. The Bank met these regulatory liquidity requirements throughout the first quarter of 2015. 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 quarter of 2015.

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 maintains 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 short-term 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 March 31, 2015, 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 March 31, 2015 and December 31, 2014. As of March 31, 2015, the FHLBanks had $812.2 billion in aggregate par value of COs issued and outstanding, $112.6 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.

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 March 31, 2015. 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 March 31, 2015, 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.

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.

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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. The Bank assigns each borrower that is not an insured depository institution or insurance company, such as housing associates, 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 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 March 31, 2015			As of December 31, 2014
Rating	Number of         Borrowers	Outstanding         Advances		Number of         Borrowers	Outstanding         Advances
1	8	$	281	10	$	3,717
2	15	2,318		21	1,473
3	61	30,051		63	26,500
4	105	11,486		101	27,290
5	120	28,512		127	32,825
6	111	7,907		106	2,944
7	44	1,037		52	1,281
8	23	447		22	501
9	16	370		17	381
10	32	561		37	596

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 standby 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 March 31, 2015, six borrowers have been approved for a credit limit higher than 30 percent, and their outstanding advance balance was $17.5 billion.

49

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 March 31, 2015	$	83,466	$	264,030	72.06	3.62	24.32
As of December 31, 2014	97,882		265,103		72.29	3.68	24.03

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 a model risk component that takes into account model data uncertainty and 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.

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 March 31, 2015 and December 31, 2014.

Investments

The Bank is subject to credit risk on unsecured investments, such as interest-bearing deposits, certificates of deposit, 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.

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

50

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.

Finance Agency regulations do not permit the Bank to rely exclusively on nationally recognized statistical rating organization (NRSRO) ratings with respect to its investments. The Bank is required to make a determination of whether a security is investment quality based on its own documented analysis, which includes the NRSRO rating as one of the factors that is assessed to determine investment quality. The Bank monitors the financial condition of investment counterparties to ensure that they are in compliance with the Bank's Risk Management Policy (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.

51

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 March 31, 2015
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure (1)		Total
Australia	$	900	$	—	$	—	$	900
Canada	780		—		—		780
France	—		—		1		1
Germany	1,150		—		49		1,199
Netherlands	750		—		—		750
Norway	550		—		—		550
Switzerland	—		—		2		2
United States of America	650		341		—		991
Total	$	4,780	$	341	$	52	$	5,173

____________ 

⁽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, 2014
	Federal Funds Sold		Interest-bearing   Deposits		Net Derivative Exposure (1)		Total
Australia	$	845	$	—	$	—	$	845
Canada	1,650		—		—		1,650
Germany	1,150		—		29		1,179
Netherlands	1,140		—		—		1,140
Sweden	600		—		—		600
United States of America	1,000		1,010		—		2,010
Total	$	6,385	$	1,010	$	29	$	7,424

____________ 

⁽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 a decrease in unsecured credit exposure in its investment portfolio related to non-U.S. government and non-U.S. government agency counterparties from $7.4 billion as of December 31, 2014 to $5.1 billion as of March 31, 2015. There were five such counterparties, Landesbank Baden-Wuerttemberg, DnB Bank ASA, Bank of Nova Scotia, Rabobank Nederland, and Australia & New Zealand Banking Group that each represented greater than 10 percent, and collectively represented 80.7 percent of the total unsecured credit exposure to non-U.S. government or non-U.S. government agencies counterparties. As of March 31, 2015, the Bank’s unsecured credit portfolio consisted primarily of federal funds sold with overnight maturities.

The Bank’s 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.

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The tables below provide information on the credit ratings of the Bank’s investments held as of March 31, 2015 and December 31, 2014, based on their credit rating as of March 31, 2015 and December 31, 2014 (in millions), respectively. The credit ratings reflect the lowest long-term credit ratings as reported by an NRSRO.

			As of March 31, 2015
			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	$	339	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	341
Securities purchased under agreements to resell	—		—		—		1,000		745		—		—		—		—		—		—		1,745
Federal funds sold	—		900		3,230		650		—		—		—		—		—		—		—		4,780
Total short-term investments	—		902		3,569		1,650		745		—		—		—		—		—		—		6,866
Long-term investments:
State or local housing agency debt obligations	—		80		—		—		—		—		—		—		—		—		—		80
U.S. government agency debt obligations	—		7,894		—		—		—		—		—		—		—		—		—		7,894
Mortgage-backed securities:
U.S. agency obligations-guaranteed single family residential	—		346		—		—		—		—		—		—		—		—		—		346
Government-sponsored enterprises single family residential	—		13,158		—		—		—		—		—		—		—		—		—		13,158
Government-sponsored enterprises multi-family commercial	465		1,997		—		—		—		—		—		—		—		—		—		2,462
Private-label	—		12		52		363		565		398		810		189		99		785		5		3,278
Total mortgage-backed securities	465		15,513		52		363		565		398		810		189		99		785		5		19,244
Total long-term investments	465		23,487		52		363		565		398		810		189		99		785		5		27,218
Total investments	$	465	$	24,389	$	3,621	$	2,013	$	1,310	$	398	$	810	$	189	$	99	$	785	$	5	$	34,084

____________

⁽¹⁾ Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $47 million as of March 31, 2015.

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	As of December 31, 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	—		—		250		1,000		710		—		—		—		—		—		—		1,960
Federal funds sold	—		1,945		3,815		625		—		—		—		—		—		—		—		6,385
Total short-term investments	—		1,947		5,073		1,625		710		—		—		—		—		—		—		9,355
Long-term investments:
State or local housing agency debt obligations	—		82		—		—		—		—		—		—		—		—		—		82
U.S. government agency debt obligations	—		7,935		—		—		—		—		—		—		—		—		—		7,935
Mortgage-backed securities:
U.S. agency obligations-guaranteed single family residential	—		366		—		—		—		—		—		—		—		—		—		366
Government-sponsored enterprises single family residential	—		13,665		—		—		—		—		—		—		—		—		—		13,665
Government-sponsored enterprises multi-family commercial	465		1,198		—		—		—		—		—		—		—		—		—		1,663
Private-label residential	—		14		56		388		591		424		844		219		129		765		6		3,436
Total mortgage-backed securities	465		15,243		56		388		591		424		844		219		129		765		6		19,130
Total long-term investments	465		23,260		56		388		591		424		844		219		129		765		6		27,147
Total investments	$	465	$	25,207	$	5,129	$	2,013	$	1,301	$	424	$	844	$	219	$	129	$	765	$	6	$	36,502

____________

⁽¹⁾ Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $42 million as of December 31, 2014.

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 also from time to time enters into these transactions with members on the same terms as advances. Since transactions with members are secured on the same terms as advances, members are not required to have an investment grade rating. 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 rating of the related non-member counterparties, the Bank considers its credit exposure related to these investments to be minimal.

Non-Private-label MBS

The 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 March 31, 2015 because the decline in fair value is attributable to changes in interest rates and not credit quality, the Bank does not intend to sell

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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.

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 March 31, 2015 (dollars in millions).

	Year of Securitization - Prime
	2008			2007			2006			2005			2004 and   Prior			Total
Investment Ratings:
AA	$	—		$	—		$	—		$	—		$	12		$	12
A	—			—			—			8			44			52
BBB	—			—			—			88			241			329
BB	—			7			—			247			240			494
B	—			14			2			111			179			306
CCC	—			257			21			351			153			782
CC	28			131			37			16			—			212
C	73			10			27			—			—			110
D	—			266			380			138			—			784
Unrated	—			—			—			—			5			5
Total unpaid principal balance	$	101		$	685		$	467		$	959		$	874		$	3,086
Amortized cost	$	84		$	539		$	382		$	875		$	863		$	2,743
Gross unrealized losses	$	—		$	(6	)	$	—		$	(2	)	$	(8	)	$	(16	)
Fair value	$	89		$	582		$	412		$	904		$	865		$	2,852
Other-than-temporary impairment (Year-to-date):
Credit-related losses	$	—		$	(1	)	$	—		$	—		$	—		$	(1	)
Non-credit-related losses	—			(1		)	—			—			—			(1		)
Total other-than-temporary impairment losses	$	—		$	—		$	—		$	—		$	—		$	—
Weighted average percentage of fair value to unpaid principal balance	88.22		%	85.08		%	88.23		%	94.38		%	98.81		%	92.44		%
Original weighted average credit support	15.72		%	14.51		%	10.45		%	7.11		%	3.88		%	8.62		%
Weighted average credit support	2.38		%	0.75		%	0.59		%	5.50		%	11.01		%	5.16		%
Weighted average collateral delinquency	12.98		%	16.36		%	16.60		%	9.90		%	8.34		%	12.00		%

55

	Year of Securitization – Alt-A
	2008			2007			2006			2005			2004 and   Prior			Total
Investment Ratings:
BBB	$	—		$	—		$	—		$	—		$	35		$	35
BB	—			—			—			—			70			70
B	—			—			—			—			94			94
CCC	—			—			—			139			8			147
D	—			36			—			108			—			144
Total unpaid principal balance	$	—		$	36		$	—		$	247		$	207		$	490
Amortized cost	$	—		$	26		$	—		$	200		$	207		$	433
Gross unrealized losses	$	—		$	—		$	—		$	(13	)	$	(1	)	$	(14	)
Fair value	$	—		$	29		$	—		$	190		$	208		$	427
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		%	81.08		%	0.00		%	76.71		%	100.80		%	87.18		%
Original weighted average credit support	0.00		%	12.29		%	0.00		%	28.26		%	8.85		%	18.91		%
Weighted average credit support	0.00		%	0.00		%	0.00		%	7.65		%	13.20		%	9.43		%
Weighted average collateral delinquency	0.00		%	28.42		%	0.00		%	23.41		%	9.60		%	17.96		%

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 March 31, 2015:

	Significant Inputs(1)
	Prepayment Rate	Default Rates	Loss Severities	Current Credit Enhancement
Classification	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
Total Prime	17.32	6.39	24.74	7.51
Total Alt-A	14.13	20.97	39.09	3.61
Total	15.90	12.90	31.14	5.77

____________

⁽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 those securities for which an other-than-temporary impairment was determined to have occurred during the first quarter of 2015, 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.

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 primarily based on a short-term housing price forecast, which was five percentage points lower than the base case, followed by a recovery path with annual rates of housing price growth that were 33.0 percent lower than the base case. For the three months ended March 31, 2015 base case and adverse scenarios for credit losses on all other-than temporary impaired private-label MBS were $1 million and $4 million, respectively.

The adverse case housing price scenario and associated results do not represent the Bank’s current expectations, and therefore

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 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 March 31, 2015.

For cleared derivatives, the Bank is subject to credit risk due to non-performance 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 March 31, 2015.

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.

	As of March 31, 2015
	Notional Amount		Derivatives Fair Value Before Collateral			Cash Collateral Pledged To (From) Counterparty			Other Collateral Pledged To (From) Counterparty			Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	$	16,717	$	52		$	(49	)	$	—		$	3
Liability positions with credit exposure:
Cleared derivatives	56,936		(410		)	555			—			145
Total derivative positions with non-member counterparties to which the Bank had credit exposure	73,653		(358		)	506			—			148
Member institutions (1)	123		3			—			(3		)	—
Total	$	73,776	$	(355	)	$	506		$	(3	)	$	148

____________ 

⁽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.

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	As of December 31, 2014
	Notional Amount		Derivatives Fair Value Before Collateral			Cash Collateral Pledged To (From) Counterparty			Other Collateral Pledged To (From) Counterparty			Net Credit Exposure to Counterparties
Non-member counterparties:
Asset positions with credit exposure:
Single-A	$	11,781	$	29		$	(29	)	$	—		$	—
Cleared derivatives	6,708		—			3			—			3
Liability positions with credit exposure:
Cleared derivatives	48,187		(335		)	443			—			108
Total derivative positions with non-member counterparties to which the Bank had credit exposure	66,676		(306		)	417			—			111
Member institutions (1)	74		1			—			(1		)	—
Total	$	66,750	$	(305	)	$	417		$	(1	)	$	111

____________ 

⁽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 $89 million of collateral (at fair value) to its bilateral derivative counterparties as of March 31, 2015.

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 March 31, 2015, five of the Bank’s eight mortgage insurance providers have been rated below "A" by one or more NRSROs for their claims paying ability or insurer financial strength, and three are no longer rated. 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 March 31, 2015 and December 31, 2014, the allowance for credit losses on MPF loans was $2 millionand $3 million, respectively. The decrease in the allowance for credit losses was related to the improvement of the credit quality of the portfolio.

Critical Accounting Policies and Estimates

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.

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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.

59

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 March 31, 2015		As of December 31, 2014
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	$	9,275	$	9,488
		Non-qualifying hedges	1		2
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	20,689		21,223
		Non-qualifying hedges	40		60
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	445		505
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	35		135
		Total	30,485		31,413
Investments
Pay fixed, receive variable interest rate swap	Converts the investment’s fixed rate to a variable rate index.	Non-qualifying hedges	1,123		1,123
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	1,173		1,173
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	45,084		48,314
		Non-qualifying hedges	965		3,700
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	25,997		21,699
		Non-qualifying hedges	—		1,000
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
		Total	72,046		74,738

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			As of March 31, 2015		As of December 31, 2014
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	8,883		1,775
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		105
Interest rate cap or floor	Protects against changes in income of certain assets due to changes in interest rates.	Non-qualifying hedges	16,500		16,500
		Total	16,605		16,605
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	245		148
Total notional amount			$	129,437	$	125,852

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 March 31, 2015					As of December 31, 2014
	Up 200 Basis Points	Current		Down 200 Basis  Points (1)		Up 200 Basis Points	Current		Down 200 Basis  Points (1)
Assets	0.52	0.36		0.25		0.48	0.36		0.23
Liabilities	0.29	0.39		0.28		0.29	0.39		0.27
Equity	4.89	(0.18	)	(0.25	)	4.00	(0.27	)	(0.39	)
Effective duration gap	0.23	(0.03	)	(0.03	)	0.19	(0.03	)	(0.04	)

____________ 

⁽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

61

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 March 31, 2015						As of December 31, 2014
	Up 200 Basis Points		Current		Down 200 Basis Points (1)		Up 200 Basis Points		Current		Down 200 Basis Points (1)
Assets	$	118,219	$	119,281	$	119,848	$	135,393	$	136,525	$	137,087
Liabilities	112,307		113,057		113,374		128,589		129,432		129,827
Equity	5,912		6,224		6,474		6,804		7,093		7,260

____________ 

⁽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.

As of March 31, 2015, 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 first quarter of 2015, 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.

62

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 March 31, 2015, filed on May 8, 2015, 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.

63

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:	May 8, 2015	By /s/ W. Wesley McMullan
		Name: W. Wesley McMullan     Title: President and Chief Executive Officer
Date:	May 8, 2015	By /s/ Kirk R. Malmberg
		Name: Kirk R. Malmberg     Title: Executive Vice President and Chief Financial Officer

64

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:	May 8, 2015	/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:	May 8, 2015	/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 March 31, 2015, 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:	May 8, 2015	/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

Trading Securities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	$ 1,258		$ 1,269
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	1,199		1,208
Other FHLBank's Bond [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	58	[1]	60	[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.

XML

Advances (Details Textual) (USD $)	Mar. 31, 2015 Institutions	Dec. 31, 2014 Institutions
Advances [Abstract]
Advances to largest borrowers	$ 59,290,000,000	$ 72,799,000,000
Number of largest borrowers	10	10
Largest borrowers concentration in total advances	71.00%	74.40%
Allowance for credit losses on advances	0	0
Advances past due	$ 0	$ 0

XML

Other-than-temporary Impairment Other-than-temporary Impairment (Details) (Alt A [Member], Two Thousand and Seven [Member])	3 Months Ended
	Mar. 31, 2015
Alt A [Member] | Two Thousand and Seven [Member]
Other Than Temporary Impairment Credit Losses Recognized [Abstract]
Significant Inputs Weighted Average Percentage Rate, Prepayment Rate	14.82%
Significant Inputs Weighted Average Percentage Rate Default Rate	23.95%
Significant Inputs Weighted Average Percentage Rate, Loss Severities	36.98%
Significant Inputs Weighted Average Percentage Rate Current Credit Enhancement	0.06%

XML

Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of period	$ 95
Net change in fair value	(17)	4
Accumulated Other Comprehensive Income (Loss), End of period	79
Pension and Postretirement Benefits
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of period	(23)	(13)
Net change in fair value	0
Current period other comprehensive income (loss)	0	0
Accumulated Other Comprehensive Income (Loss), End of period	(23)	(13)
Total Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Beginning of period	95	112
Net change in fair value	(17)	4
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities	1	1
Current period other comprehensive income (loss)	(16)	5
Accumulated Other Comprehensive Income (Loss), End of period	79	117
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 Income (Loss), Beginning of period	118	125
Net change in fair value	(17)	4
Reclassification Adjustment of Non Credit Portion of Impairment Losses Included in Net Income Relating to Available for Sale Securities	1	1
Current period other comprehensive income (loss)	(16)	5
Accumulated Other Comprehensive Income (Loss), End of period	$ 102	$ 130

XML

Mortgage Loans Held for Portfolio (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	$ 710		$ 751
Premiums	2		2
Discounts	(3)		(4)
Total	709		749
Fixed-rate medium-term single-family residential mortgage loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	93	[1]	103	[1]
Mortgage loans on real estate, original contract terms	15 years		15 years
Fixed-rate long-term single-family residential mortgage loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	617		648
Conventional loans
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	659		698
Government Mortgage Loan
Mortgage Loans on Real Estate [Line Items]
Unpaid principal balance	$ 51		$ 53

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

XML

Estimated Fair Values (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014	Dec. 31, 2013
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	1,258		1,269
Available-for-sale Securities, Debt Securities	1,905		1,981
Held-to-maturity securities	24,177		23,988
Advances	0		0
Mortgage loans held for portfolio, net	0		0
Accrued interest receivable	0		0
Derivative assets	151		112
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[1]	(374)	[1]
Grantor trust assets (included in Other assets)	0		0
Liabilities:
Interest-bearing deposits	0		0
Consolidated obligations:
Discount notes	0		0
Bonds	0		0
Mandatorily redeemable capital stock	(17)		(19)		(23)	(24)
Accrued interest payable	0		0
Derivative liabilities	(149)		(184)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[1]	1,955	[1]
Fair Value, Measurements, Recurring [Member]
Assets:
Securities purchased under agreements to resell			0
Trading securities	0		0
Available-for-sale Securities, Debt Securities	0		0
Held-to-maturity securities	0		0
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[2]	(374)	[2]
Grantor trust assets (included in Other assets)	0		0
Consolidated obligations:
Mandatorily redeemable capital stock	0		0
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[2]	1,955	[2]
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	519		915
Interest bearing-deposits	0		0
Securities purchased under agreements to resell	0		0
Federal funds sold	0		0
Trading securities	0		0
Available-for-sale Securities, Debt 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)	26		25
Liabilities:
Interest-bearing deposits	0		0
Consolidated obligations:
Mandatorily redeemable capital stock	(17)		(19)
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	341		1,010
Securities purchased under agreements to resell	1,745		1,960
Federal funds sold	4,780		6,385
Trading securities	1,258		1,269
Available-for-sale Securities, Debt Securities	0		0
Held-to-maturity securities	22,803		22,534
Advances	84,937		99,579
Mortgage loans held for portfolio, net	788		828
Accrued interest receivable	178		179
Derivative assets	536		486
Grantor trust assets (included in Other assets)	0		0
Liabilities:
Interest-bearing deposits	(1,482)		(1,110)
Consolidated obligations:
Mandatorily redeemable capital stock	0		0
Accrued interest payable	(209)		(145)
Derivative liabilities	(2,233)		(2,139)
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		0
Federal funds sold	0		0
Trading securities	0		0
Available-for-sale Securities, Debt Securities	1,905		1,981
Held-to-maturity securities	1,374		1,454
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	519		915
Interest bearing-deposits	341		1,010
Securities purchased under agreements to resell	1,745		1,960
Federal funds sold	4,780		6,385
Trading securities	1,258		1,269
Available-for-sale Securities, Debt Securities	1,905		1,981
Held-to-maturity securities	24,055		23,897
Advances	85,416		99,644
Mortgage loans held for portfolio, net	707		746
Accrued interest receivable	178		179
Derivative assets	151		112
Grantor trust assets (included in Other assets)	26		25
Liabilities:
Interest-bearing deposits	(1,482)		(1,110)
Consolidated obligations:
Mandatorily redeemable capital stock	(17)		(19)
Accrued interest payable	(209)		(145)
Derivative liabilities	(149)		(184)
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and due from banks	519		915
Interest bearing-deposits	341		1,010
Securities purchased under agreements to resell	1,745		1,960
Federal funds sold	4,780		6,385
Trading securities	1,258		1,269
Available-for-sale Securities, Debt Securities	1,905		1,981
Held-to-maturity securities	24,177		23,988
Advances	84,937		99,579
Mortgage loans held for portfolio, net	788		828
Accrued interest receivable	178		179
Derivative assets	151		112
Grantor trust assets (included in Other assets)	26		25
Liabilities:
Interest-bearing deposits	(1,482)		(1,110)
Consolidated obligations:
Mandatorily redeemable capital stock	(17)		(19)
Accrued interest payable	(209)		(145)
Derivative liabilities	(149)		(184)
Discount Notes [Member] | Fair Value, Inputs, Level 1 [Member]
Consolidated obligations:
Discount notes	0		0
Discount Notes [Member] | Fair Value, Inputs, Level 2 [Member]
Consolidated obligations:
Discount notes	(26,899)		(37,162)
Discount Notes [Member] | Fair Value, Inputs, Level 3 [Member]
Consolidated obligations:
Discount notes	0		0
Discount Notes [Member] | Carrying Value [Member]
Consolidated obligations:
Discount notes	(26,902)		(37,162)
Discount Notes [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Discount notes	(26,899)		(37,162)
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 1 [Member]
Consolidated obligations:
Bonds	0		0
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Consolidated obligations:
Bonds	(86,253)		(92,211)
Consolidated Obligation Bonds [Member] | Fair Value, Inputs, Level 3 [Member]
Consolidated obligations:
Bonds	0		0
Consolidated Obligation Bonds [Member] | Carrying Value [Member]
Consolidated obligations:
Bonds	(86,072)		(92,088)
Consolidated Obligation Bonds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Consolidated obligations:
Bonds	$ (86,253)		$ (92,211)

[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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

[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.

XML

Held-to-maturity Securities (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	$ 24,055	$ 23,897
Estimated fair value of held-to-maturity Securities	24,177	23,988
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	968	1,166
Amortized cost of held-to-maturity securites due after one year through five years	5,748	5,582
Fair value of held-to-maturity securites due in one year or less	969	1,166
Fair value of held-to-maturity securites due after one year through five years	5,749	5,572
Other Than Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	6,716	6,748
Estimated fair value of held-to-maturity Securities	6,718	6,738
Mortgage-backed securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	17,339	17,149
Estimated fair value of held-to-maturity Securities	$ 17,459	$ 17,250

XML

Capital and Mandatorily Redeemable Capital Stock (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015						As of December 31, 2014
	Required			Actual			Required			Actual
Risk based capital	$	2,010		$	6,113		$	2,113		$	6,914
Total capital-to-assets ratio	4.00		%	5.04		%	4.00		%	5.00		%
Total regulatory capital (1)	$	4,851		$	6,113		$	5,534		$	6,914
Leverage ratio	5.00		%	7.56		%	5.00		%	7.50		%
Leverage capital	$	6,064		$	9,169		$	6,917		$	10,371

____________

Activity in Mandatorily Redeemable Capital Stock

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

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	19		$	24
Capital stock subject to mandatory redemption reclassified from equity	4			2
Repurchase/redemption of mandatorily redeemable capital stock	(6		)	(3		)
Balance, end of period	$	17		$	23

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 March 31, 2015		As of December 31, 2014
Due in one year or less	$	10	$	9
Due after one year through two years	6		8
Due after two years through three years	—		1
Due after four years through five years	1		1
Total	$	17	$	19

XML

Commitments and Contingencies (Details) (USD $)	Mar. 31, 2015 letter_of_credit		Dec. 31, 2014 letter_of_credit
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Number Of Outstanding Standby Letters Of Credit Renewable Annually	17		17
Standby Letters Of Credit Issued Renewable Annually	$ 26,000,000		$ 25,000,000
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	8,240,000,000	[1]	7,409,000,000	[1]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	21,793,000,000		23,519,000,000
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	30,033,000,000		30,928,000,000
Commitments to Fund Additional Advances [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	309,000,000		189,000,000
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year	65,000,000		20,000,000
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	374,000,000		209,000,000
Consolidated Obligation Bonds [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	376,000,000	[2]	100,000,000	[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	376,000,000	[2]	100,000,000	[2]
Consolidated Obligation Bonds [Member] | Interest rate swaps
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	376,000,000		100,000,000
Discount Notes [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year	0	[2]	50,000,000	[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	0	[2]	50,000,000	[2]
Discount Notes [Member] | Interest rate swaps
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability			$ 50,000,000

[1] Expire within one year includes 17 standby letters of credit for a total of $26 and 17 standby letters of credit for a total of $25 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, $376 and $100 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled, respectively. As of December 31, 2014, $50 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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Derivatives and Hedging Activities (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	$ (104)		$ 19
Gains (Losses) on Hedged Item	133		6
Net Fair Value Hedge Ineffectiveness	29		25
Effect of Derivatives on Net Interest Income	(74)	[1]	(88)	[1]
Advances [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	(184)		(91)
Gains (Losses) on Hedged Item	219		114
Net Fair Value Hedge Ineffectiveness	35		23
Effect of Derivatives on Net Interest Income	(192)	[1]	(218)	[1]
Consolidated Obligation Bonds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	79		110
Gains (Losses) on Hedged Item	(85)		(108)
Net Fair Value Hedge Ineffectiveness	(6)		2
Effect of Derivatives on Net Interest Income	117	[1]	130	[1]
Discount Notes [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivative	1		0
Gains (Losses) on Hedged Item	(1)		0
Net Fair Value Hedge Ineffectiveness	0		0
Effect of Derivatives on Net Interest Income	$ 1	[1]	$ 0	[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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Allowance for Credit Losses (Mortgage Loan Portfolio by Impairment Methodology) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Total allowance for credit losses	$ 2		$ 3
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total recorded investment	712	[1]	753	[2]
Residential Portfolio Segment [Member] | Conventional Single-Family Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses, individually evaluated for impairment	0		1
Allowance for credit losses, collectively evaluated for impairment	2		2
Total allowance for credit losses	2		3		4	11
Recorded investment, individually evaluated for impairment	14		15
Recorded investment, collectively evaluated for impairment	647		685
Total recorded investment	$ 661	[1]	$ 700	[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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Estimated Fair Values (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Assets:
Trading securities	$ 1,258		$ 1,269
Available-for-sale Securities, Debt Securities	1,905		1,981
Derivative assets	151		112
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[1]	(374)	[1]
Grantor trust assets (included in Other assets)	0		0
Liabilities:
Derivative liabilities	(149)		(184)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[1]	1,955	[1]
Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,199		1,208
Other FHLBank's Bond [Member]
Assets:
Trading securities	58	[2]	60	[2]
State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	1		1
Fair Value, Measurements, Recurring [Member]
Assets:
Trading securities	0		0
Available-for-sale Securities, Debt Securities	0		0
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[3]	(374)	[3]
Grantor trust assets (included in Other assets)	0		0
Liabilities:
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[3]	1,955	[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] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Assets:
Available-for-sale Securities, Debt Securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Trading securities	0		0
Available-for-sale Securities, Debt Securities	0		0
Derivative assets	0		0
Grantor trust assets (included in Other assets)	26		25
Total assets at fair value	26		25
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] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Assets:
Available-for-sale Securities, Debt Securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Trading securities	1,258		1,269
Available-for-sale Securities, Debt Securities	0		0
Derivative assets	536		486
Grantor trust assets (included in Other assets)	0		0
Total assets at fair value	1,794		1,755
Liabilities:
Derivative liabilities	(2,233)		(2,139)
Total liabilities at fair value	(2,233)		(2,139)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,199		1,208
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	58		60
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] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Assets:
Available-for-sale Securities, Debt Securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Trading securities	0		0
Available-for-sale Securities, Debt Securities	1,905		1,981
Derivative assets	0		0
Grantor trust assets (included in Other assets)	0		0
Total assets at fair value	1,905		1,981
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] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Assets:
Available-for-sale Securities, Debt Securities	1,905		1,981
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities:
RealEstateOwnedFairValueDisclosure	6		7
Interest rate swaps | Fair Value, Measurements, Recurring [Member]
Assets:
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)		(374)
Liabilities:
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084		1,955
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	536		486
Liabilities:
Derivative liabilities	(2,233)		(2,139)
Interest rate swaps | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Derivative assets	0		0
Liabilities:
Derivative liabilities	0		0
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Trading securities	1,258		1,269
Available-for-sale Securities, Debt Securities	1,905		1,981
Derivative assets	151		112
Grantor trust assets (included in Other assets)	26		25
Total assets at fair value	3,340		3,387
Liabilities:
Derivative liabilities	(149)		(184)
Total liabilities at fair value	(149)		(184)
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government-Sponsored Enterprises Debt Obligations [Member]
Assets:
Trading securities	1,199		1,208
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Other FHLBank's Bond [Member]
Assets:
Trading securities	58		60
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | State or Local Housing Agency Obligations [Member]
Assets:
Trading securities	1		1
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Assets:
Available-for-sale Securities, Debt Securities	1,905		1,981
Estimate of Fair Value Measurement [Member] | Interest rate swaps | Fair Value, Measurements, Recurring [Member]
Assets:
Derivative assets	151		112
Liabilities:
Derivative liabilities	$ (149)		$ (184)

[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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

[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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Transactions With Members and Their Affiliates and With Housing Associates (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Related parties, minimum stock percent owned	10.00%
Advances	$ 85,416		$ 99,644
Bank of America [Member]
Related Party Transaction [Line Items]
Percent of capital stock held	16.50%
Advances	16,512		17,512
Maximum deposits held in the name of a member or affiliate (less than $1)	1		1
Number of mortgage loans acquired	0	0
Navy Federal Credit Union [Member]
Related Party Transaction [Line Items]
Percent of capital stock held	10.10%
Advances	9,986		9,942
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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Estimated Fair Values (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Reconciliation of Available-For-Sale Securities Measured at Fair Value
Included in net impairment losses recognized in earnings	$ 1		$ 1
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-for-Sale Securities, Private Label Residential Mortgage Backed Securities [Member]
Reconciliation of Available-For-Sale Securities Measured at Fair Value
Balance, beginning of year	1,981		2,299
Included in net impairment losses recognized in earnings	(1)	[1]	(1)	[1]
Included in other comprehensive income (2)	(16)	[1],[2]	5	[1],[2]
Accretion of credit losses in net interest income	10	[1]	7	[1]
Settlements	(69)		(87)
Balance, end of year	$ 1,905		$ 2,223

[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	Mar. 31, 2015		Dec. 31, 2014
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	$ 129,437		$ 125,852
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	536		486
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(2,233)		(2,139)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[1]	(374)	[1]
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[1]	1,955	[1]
Derivative assets	151		112
Derivative liabilities	(149)		(184)
Derivative, Collateral, Cash Posted And Related Accrued Interest	1,749		1,613
Derivative, Collateral, Cash Received And Related Accrued Interest	50		32
Designated as Hedging Instrument [Member] | Interest rate swaps
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	110,373		103,004
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	506		454
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(2,100)		(1,995)
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	19,064		22,848
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	30		32
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(133)		(144)
Not Designated as Hedging Instrument [Member] | Interest rate swaps
Derivative [Line Items]
Total notional amount of derivatives before netting and collateral adjustments	2,564		6,348
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	14		12
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(123)		(131)
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		16,500
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	16		20
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ (10)		$ (13)

[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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

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Trading Securities (Tables) (Categories of Investments, Marketable Securities, Trading Securities [Member])

3 Months Ended

Mar. 31, 2015

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 March 31, 2015		As of December 31, 2014
Government-sponsored enterprises debt obligations	$	1,199	$	1,208
Another FHLBank’s bond (1)	58		60
State or local housing agency debt obligations	1		1
Total	$	1,258	$	1,269

 ____________

⁽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 March 31,
	2015			2014
Net losses on trading securities held at period end	$	(12	)	$	(14	)

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Other-than-temporary Impairment (Details Textual)	3 Months Ended
	Mar. 31, 2015
Schedule of Projected Home Price Recovery Ranges [Line Items]
Minimum number of people under CBSA	10,000
Minimum
Schedule of Projected Home Price Recovery Ranges [Line Items]
Housing Price Forecast Current to Trough Assumptions Home Price Percentage Decline Rate	3.00%
Projected house price, increase rate	1.00%
Maximum
Schedule of Projected Home Price Recovery Ranges [Line Items]
Housing Price Forecast Current To Trough Assumptions Home Price Percentage Increase Rate	8.00%
Projected house price, increase rate	5.00%

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Available-for-sale Securities (Details 1) (Residential Mortgage Backed Securities [Member], Mortgage-backed Securities, Issued by Private Enterprises [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015 positions	Dec. 31, 2014 positions
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of available-for-sale securities in unrealized loss position for less than 12 months	4	4
Number of available-for-sale securities in unrealized loss position for 12 months or more	9	9
Number of available-for-sale securities in unrealized loss position	13	13
Estimated fair value of available-for-sale securities in unrealized loss position for less than 12 months	$ 189	$ 140
Estimated fair value of available-for-sale securities in unrealized loss position for 12 months or more	183	191
Estimated fair value of available-for-sale securities in unrealized loss position	372	331
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In AOCI	5	2
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In AOCI	16	17
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated In AOCI	$ 21	$ 19

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Derivatives and Hedging Activities (Details Textual) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative credit-risk-related contingent features net liability position aggregate fair value	$ 1,342
Collateral already posted, aggregate fair value	1,194
Additional collateral	$ 89

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Off Balance Sheet Commitments [Table Text Block]

	As of March 31, 2015						As of December 31, 2014
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	8,240	$	21,793	$	30,033	$	7,409	$	23,519	$	30,928
Commitments to fund additional advances	309		65		374		189		20		209
Unsettled consolidated obligation bonds, at par (2)	376		—		376		100		—		100
Unsettled consolidated obligation discount notes, at par (2)	—		—		—		50		—		50

____________

⁽¹⁾  Expire within one year includes 17 standby letters of credit for a total of $26 and 17 standby letters of credit for a total of $25 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, $376 and $100 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled, respectively. As of December 31, 2014, $50 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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Advances (Details 1) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Advances [Abstract]
Overdrawn demand deposit accounts	$ 2	$ 0
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Next Rolling Twelve Months	49,360	60,551
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Two	9,019	12,040
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Three	8,508	7,866
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Four	3,468	4,241
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, in Rolling Year Five	2,850	2,900
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, after Rolling Year Five	10,259	10,284
Federal Home Loan Bank, Advances, Par Value	$ 83,466	$ 97,882

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Capital and Mandatorily Redeemable Capital Stock (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Equity [Abstract]
Risk Based Capital, Required	$ 2,010		$ 2,113
Risk Based Capital, Actual	6,113		6,914
Regulatory Capital Ratio, Required	4.00%		4.00%
Regulatory Capital Ratio, Actual	5.04%		5.00%
Regulatory Capital, Required	4,851	[1]	5,534	[1]
Regulatory Capital, Actual	6,113	[1]	6,914	[1]
Leverage Ratio, Required	5.00%		5.00%
Leverage Ratio, Actual	7.56%		7.50%
Leverage Capital, Required	6,064		6,917
Leverage Capital, Actual	$ 9,169		$ 10,371

[1] Total regulatory capital does not include accumulated other comprehensive income, but does include mandatorily redeemable capital stock.

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Consolidated Obligations (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	$ 85,695	$ 91,788
Fixed-rate
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	74,419	77,912
Step up/down
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	5,901	6,301
Simple variable-rate
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	5,375	7,550
Variable-rate capped floater
Consolidated Obligation Bonds by Interest-Rate Payment
Debt, Gross	$ 0	$ 25

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Held-to-maturity Securities (Details 3) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	$ 24,055	$ 23,897
Held To Maturity Securities Accumulated Unrecognized Holding Gain	149	145
Held To Maturity Securities Accumulated Unrecognized Holding Loss	27	54
Held-to-maturity securities, fair value	24,177	23,988
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Bank of America Corporation, Charlotte, NC
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	390	419
Held To Maturity Securities Accumulated Unrecognized Holding Gain	2	2
Held To Maturity Securities Accumulated Unrecognized Holding Loss	3	4
Held-to-maturity securities, fair value	$ 389	$ 417

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Recently Issued and Adopted Accounting Guidance

3 Months Ended

Mar. 31, 2015

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

Simplifying the Presentation of Debt Issuance Costs. In April 2015, the Financial Accounting Standards Board (FASB) issued guidance that requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2015, and early adoption is permitted. The amended guidance will be applied on a retrospective basis. The adoption of this guidance is not expected to have a material effect on the Bank's financial condition or results of operations.

Amendments to the Consolidation Analysis. In February 2015, the FASB issued amended guidance intended to enhance consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new guidance places more emphasis on risk of loss when determining a controlling financial interest. The guidance also reduces the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity. This guidance becomes effective for the Bank for the interim and annual periods ending after December 15, 2015, and early adoption is permitted. The adoption of this guidance is not expected to effect the Bank's financial condition or results of operations.

Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015, the FASB issued amended guidance which eliminates from GAAP the concept of extraordinary items. The amended guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amended guidance prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted, provided that the amended guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance will have no effect on the Bank’s financial condition or results of operations.

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.

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 and its effects on the Bank’s financial condition and results of operations has not yet been determined.

Recently Adopted Accounting Guidance

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. The Bank adopted this guidance prospectively on January 1, 2015. The adoption of this guidance did not have a material effect on 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. The Bank adopted this guidance effective January 1, 2015. The adoption of this guidance had no effect on the Bank’s financial condition or results of operations.

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. The Bank adopted this guidance prospectively on January 1, 2015. The adoption of this guidance did not have a material effect on the Bank’s financial condition or results of operations.

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Consolidated Obligations (Details 1) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt, Gross	$ 85,695	$ 91,788
Federal Home Loan Bank, Consolidated Obligations, Bonds	86,072	92,088
Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	44,203	52,081
Bonds, Due after one year through two years	15,676	16,116
Bonds, Due after two years through three years	12,407	9,683
Bonds, Due after three years through four years	4,826	4,971
Bonds, Due after four years through five years	3,681	3,094
Bonds, Due after five years	4,902	5,843
Debt, Gross	85,695	91,788
Premiums	65	73
Discounts	(19)	(21)
Hedging adjustments	331	248
Federal Home Loan Bank, Consolidated Obligations, Bonds	$ 86,072	$ 92,088
Bonds, Due in one year or less, weighted average interest rate	0.29%	0.24%
Bonds, Due after one year through two years, weighted average interest rate	1.39%	1.27%
Bonds, Due after two years through three years, weighted average interest rate	1.99%	2.22%
Bonds, Due after three years through four years, weighted average interest rate	1.63%	1.67%
Bonds, Due after four years through five years, weighted average interest rate	1.71%	1.56%
Bonds, Due after five years, weighted average interest rate	2.19%	2.12%
Total, weighted average interest rate	0.98%	0.86%

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Available-for-sale Securities (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Securities	$ 1,905	$ 1,981
M B S Issued by Members or Affiliates of Members [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of available-for-sale securities	1,174	1,213
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income	20	17
Gross unrealized gains on available-for-sale securities	78	90
Gross unrealized losses on available-for-sale securities	0	0
Available-for-sale Securities, Debt Securities	$ 1,232	$ 1,286

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Advances (Tables)

3 Months Ended

Mar. 31, 2015

Advances [Abstract]

Federal Home Loan Bank, Advances

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

	As of March 31, 2015			As of December 31, 2014
Overdrawn demand deposit accounts	$	2		$	—
Due in one year or less	46,608			57,675
Due after one year through two years	9,467			12,283
Due after two years through three years	10,075			9,435
Due after three years through four years	4,046			5,146
Due after four years through five years	2,825			2,910
Due after five years	10,443			10,433
Total par value	83,466			97,882
Discount on AHP (1) advances	(7		)	(7		)
Discount on EDGE (2) advances	(5		)	(5		)
Hedging adjustments	1,965			1,778
Deferred commitment fees	(3		)	(4		)
Total	$	85,416		$	99,644

___________

⁽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 March 31, 2015		As of December 31, 2014
Overdrawn demand deposit accounts	$	2	$	—
Due or convertible in one year or less	49,360		60,551
Due or convertible after one year through two years	9,019		12,040
Due or convertible after two years through three years	8,508		7,866
Due or convertible after three years through four years	3,468		4,241
Due or convertible after four years through five years	2,850		2,900
Due or convertible after five years	10,259		10,284
Total par value	$	83,466	$	97,882

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

	As of March 31, 2015		As of December 31, 2014
Fixed-rate:
Due in one year or less	$	33,357	$	42,839
Due after one year	29,680		30,089
Total fixed-rate	63,037		72,928
Variable-rate:
Due in one year or less	13,253		14,836
Due after one year	7,176		10,118
Total variable-rate	20,429		24,954
Total par value	$	83,466	$	97,882

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Other-than-Temporary Impairment (Tables)

3 Months Ended

Mar. 31, 2015

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 Alt-A securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended March 31, 2015, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rates (%)	Default Rates (%)	Loss Severities (%)	Current Credit Enhancement (%)
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
2007	14.82	23.95	36.98	0.06

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 March 31,
	2015			2014
Balance, beginning of period	$	542		$	574
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	1			1
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities)	(10		)	(8		)
Balance, end of period	$	533		$	567

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Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	$ 3
Reversal of provision for credit losses	(1)	(4)
Balance, end of period	2
Residential Portfolio Segment [Member] | Conventional Single-Family Mortgage Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning of period	3	11
Reversal of provision for credit losses	(1)	(4)
Charge-offs	0	(3)
Balance, end of period	$ 2	$ 4

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Held-to-maturity Securities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	$ 24,055	$ 23,897
Held To Maturity Securities Accumulated Unrecognized Holding Gain	149	145
Held To Maturity Securities Accumulated Unrecognized Holding Loss	27	54
Held-to-maturity securities, fair value	24,177	23,988
State or Local Housing Agency Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	79	81
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	80	82
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	6,637	6,667
Held To Maturity Securities Accumulated Unrecognized Holding Gain	4	2
Held To Maturity Securities Accumulated Unrecognized Holding Loss	3	13
Held-to-maturity securities, fair value	6,638	6,656
Single Family [Member] | U.S. agency obligations-guaranteed single-family residential
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	346	366
Held To Maturity Securities Accumulated Unrecognized Holding Gain	4	5
Held To Maturity Securities Accumulated Unrecognized Holding Loss	0	0
Held-to-maturity securities, fair value	350	371
Single Family [Member] | Mortgage-backed Securities, Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	13,158	13,665
Held To Maturity Securities Accumulated Unrecognized Holding Gain	127	125
Held To Maturity Securities Accumulated Unrecognized Holding Loss	11	24
Held-to-maturity securities, fair value	13,274	13,766
Multifamily [Member] | Mortgage-backed Securities, Government-sponsored enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	2,462	1,663
Held To Maturity Securities Accumulated Unrecognized Holding Gain	3	3
Held To Maturity Securities Accumulated Unrecognized Holding Loss	4	7
Held-to-maturity securities, fair value	2,461	1,659
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost of held-to-maturity securities	1,373	1,455
Held To Maturity Securities Accumulated Unrecognized Holding Gain	10	9
Held To Maturity Securities Accumulated Unrecognized Holding Loss	9	10
Held-to-maturity securities, fair value	$ 1,374	$ 1,454

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Mortgage Loans Held for Portfolio (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015			As of December 31, 2014
Fixed-rate medium-term (1)single-family residential mortgage loans	$	93		$	103
Fixed-rate long-term single-family residential mortgage loans	617			648
Total unpaid principal balance	710			751
Premiums	2			2
Discounts	(3		)	(4		)
Total	$	709		$	749

____________

⁽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 March 31, 2015		As of December 31, 2014
Conventional loans	$	659	$	698
Government-guaranteed or insured loans	51		53
Total unpaid principal balance	$	710	$	751

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Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2015

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses on Financing Receivables

The activity in the allowance for credit losses related to conventional single-family residential mortgage loans was as follows:

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	3		$	11
Reversal of provision for credit losses	(1		)	(4		)
Charge-offs	—			(3		)
Balance, end of period	$	2		$	4

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 March 31, 2015		As of December 31, 2014
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1
Collectively evaluated for impairment	2		2
Total allowance for credit losses	$	2	$	3
Recorded investment:
Individually evaluated for impairment	$	14	$	15
Collectively evaluated for impairment	647		685
Total recorded investment	$	661	$	700

Past Due Financing Receivables

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

	As of March 31, 2015
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	19		$	4		$	23
Past due 60-89 days	5			1			6
Past due 90 days or more	25			5			30
Total past due mortgage loans	49			10			59
Total current mortgage loans	612			41			653
Total mortgage loans (1)	$	661		$	51		$	712
Other delinquency statistics:
In process of foreclosure (2)	$	15		$	2		$	17
Seriously delinquent rate (3)	3.87		%	10.70		%	4.36		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	26		$	—		$	26

____________

⁽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, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	22		$	6		$	28
Past due 60-89 days	6			2			8
Past due 90 days or more	33			6			39
Total past due mortgage loans	61			14			75
Total current mortgage loans	639			39			678
Total mortgage loans (1)	$	700		$	53		$	753
Other delinquency statistics:
In process of foreclosure (2)	$	19		$	1		$	20
Seriously delinquent rate (3)	4.73		%	10.33		%	5.13		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	33		$	—		$	33

____________

⁽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 mortgage loans classified as troubled debt restructurings:

	As of March 31, 2015						As of December 31, 2014
	Performing		Non-performing		Total		Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	3	$	14	$	11	$	4	$	15

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

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, 2015, 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, 2014, which are contained in the Bank’s 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 13, 2015 (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.

A description of the Bank’s significant accounting policies is included in Note 2—Summary of Significant Accounting Policies to the 2014 audited financial statements contained in the Bank’s Form 10-K.

Revision

The Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for that period. 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:

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

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Consolidated Obligations (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015		As of December 31, 2014
Fixed-rate	$	74,419	$	77,912
Step up/down	5,901		6,301
Simple variable-rate	5,375		7,550
Variable-rate capped floater	—		25
Total par value	$	85,695	$	91,788

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 March 31, 2015				As of December 31, 2014
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	44,203		0.29	$	52,081		0.24
Due after one year through two years	15,676			1.39	16,116			1.27
Due after two years through three years	12,407			1.99	9,683			2.22
Due after three years through four years	4,826			1.63	4,971			1.67
Due after four years through five years	3,681			1.71	3,094			1.56
Due after five years	4,902			2.19	5,843			2.12
Total par value	85,695			0.98	91,788			0.86
Premiums	65				73
Discounts	(19		)		(21		)
Hedging adjustments	331				248
Total	$	86,072			$	92,088

Callable and Noncallable Consolidated Obligations Bonds Outstanding

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

	As of March 31, 2015		As of December 31, 2014
Noncallable	$	59,833	$	69,164
Callable	25,862		22,624
Total par value	$	85,695	$	91,788

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 March 31, 2015		As of December 31, 2014
Due or callable in one year or less	$	62,826	$	67,980
Due or callable after one year through two years	11,092		12,220
Due or callable after two years through three years	7,769		7,796
Due or callable after three years through four years	2,538		2,177
Due or callable after four years through five years	803		875
Due or callable after five years	667		740
Total par value	$	85,695	$	91,788

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 March 31, 2015	$	26,902	$	26,913	0.11
As of December 31, 2014	$	37,162	$	37,169	0.10

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Trading Securities (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Trading Securities [Abstract]
Net losses on trading securities held at period end	$ (12)	$ (14)

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Advances (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Advances [Abstract]
Federal Home Loan Bank, Advances, Fixed Rate, under One Year	$ 33,357	$ 42,839
Federal Home Loan Bank, Advances, Fixed Rate, after One Year	29,680	30,089
Federal Home Loan Bank, Advances, Fixed Rate	63,037	72,928
Federal Home Loan Bank, Advances, Floating Rate, under One Year	13,253	14,836
Federal Home Loan Bank, Advances, Floating Rate, after One Year	7,176	10,118
Federal Home Loan Bank, Advances, Floating Rate	20,429	24,954
Federal Home Loan Bank, Advances, Par Value	$ 83,466	$ 97,882

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Derivatives and Hedging Activities (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Net gains on derivatives and hedged items in fair value hedging relationships	$ 29	$ 25
Net gains (losses) on derivatives not designated as hedging instruments	(5)	(10)
Net gains on derivatives and hedging activities	24	15
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Net gains on derivatives and hedged items in fair value hedging relationships	29	25
Net gains (losses) on derivatives not designated as hedging instruments	10	13
Interest rate caps or floors
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivatives not designated as hedging instruments	0	(5)
Net Interest Settlements
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) on derivatives not designated as hedging instruments	$ (15)	$ (18)

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Statements of Condition (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 519	$ 915
Interest-bearing deposits (including deposits with another FHLBank of $2 as of March 31, 2015 and December 31, 2014)	341	1,010
Securities purchased under agreements to resell	1,745	1,960
Federal funds sold	4,780	6,385
Trading securities (includes another FHLBank’s bond of $58 and $60 as of March 31, 2015 and December 31, 2014, respectively)	1,258	1,269
Available-for-sale securities	1,905	1,981
Held-to-maturity securities (fair value of $24,177 and $23,988 as of March 31, 2015 and December 31, 2014, respectively)	24,055	23,897
Total investment securities	27,218	27,147
Advances	85,416	99,644
Mortgage loans held for portfolio	709	749
Allowance for credit losses on mortgage loans	(2)	(3)
Total mortgage loans held for portfolio, net	707	746
Accrued interest receivable	178	179
Derivative assets	151	112
Premises and equipment, net	26	27
Other assets	196	219
Total assets	121,277	138,344
Liabilities
Interest-bearing deposits	1,482	1,110
Consolidated obligations, net:
Discount notes	26,902	37,162
Bonds	86,072	92,088
Total consolidated obligations, net	112,974	129,250
Mandatorily redeemable capital stock	17	19
Accrued interest payable	209	145
Affordable Housing Program payable	65	65
Derivative liabilities	149	184
Other liabilities	206	580
Total liabilities	115,102	131,353
Commitments and contingencies (Note 15)
Capital
Total capital stock Class B putable	4,319	5,150
Retained earnings:
Restricted	212	195
Unrestricted	1,565	1,551
Total retained earnings	1,777	1,746
Accumulated other comprehensive income	79	95
Total capital	6,175	6,991
Total liabilities and capital	121,277	138,344
Subclass B1
Capital
Total capital stock Class B putable	748	726
Subclass B2
Capital
Total capital stock Class B putable	$ 3,571	$ 4,424

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Held-to-maturity Securities (Details 1) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015 positions	Dec. 31, 2014 positions
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	74	48
Number of unrealized loss positions held more than 12 months	61	66
Total number of unrealized loss positions	135	114
Estimated fair value of unrealized loss positions held less than 12 months	$ 3,362	$ 2,382
Estimated fair value of unrealized loss positions held 12 months or more	2,891	3,761
Total estimated fair value of positions in an unrealized loss	6,253	6,143
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	5	4
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	22	50
Total gross unrealized losses	27	54
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss	27	54
Government-Sponsored Enterprises Debt Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	1	4
Number of unrealized loss positions held more than 12 months	5	6
Total number of unrealized loss positions	6	10
Estimated fair value of unrealized loss positions held less than 12 months	200	899
Estimated fair value of unrealized loss positions held 12 months or more	1,141	1,233
Total estimated fair value of positions in an unrealized loss	1,341	2,132
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3	12
Total gross unrealized losses	3	13
Mortgage-backed Securities, Government-sponsored enterprises [Member] | Single Family [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	22	8
Number of unrealized loss positions held more than 12 months	21	26
Total number of unrealized loss positions	43	34
Estimated fair value of unrealized loss positions held less than 12 months	1,238	496
Estimated fair value of unrealized loss positions held 12 months or more	1,062	1,828
Total estimated fair value of positions in an unrealized loss	2,300	2,324
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	10	23
Total gross unrealized losses	11	24
Mortgage-backed Securities, Government-sponsored enterprises [Member] | Multifamily [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	31	14
Number of unrealized loss positions held more than 12 months	2	2
Total number of unrealized loss positions	33	16
Estimated fair value of unrealized loss positions held less than 12 months	1,685	758
Estimated fair value of unrealized loss positions held 12 months or more	289	285
Total estimated fair value of positions in an unrealized loss	1,974	1,043
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2	6
Total gross unrealized losses	4	7
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Number of unrealized loss positions held less than 12 months	20	22
Number of unrealized loss positions held more than 12 months	33	32
Total number of unrealized loss positions	53	54
Estimated fair value of unrealized loss positions held less than 12 months	239	229
Estimated fair value of unrealized loss positions held 12 months or more	399	415
Total estimated fair value of positions in an unrealized loss	638	644
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2	1
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	7	9
Total gross unrealized losses	$ 9	$ 10

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Statements of Capital (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 6,991	$ 6,652
Issuance of capital stock	994	1,023
Repurchase/redemption of capital stock	(1,821)	(1,492)
Net shares reclassified to mandatorily redeemable capital stock	(4)	(2)
Comprehensive income (loss)	66	82
Cash dividends on capital stock	(51)	(44)
Ending balance	6,175	6,219
Capital Stock Class B Putable
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (shares)	52	49
Beginning balance	5,150	4,883
Issuance of capital stock (shares)	9	10
Issuance of capital stock	994	1,023
Repurchase/redemption of capital stock (shares)	(18)	(15)
Repurchase/redemption of capital stock	(1,821)	(1,492)
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Shares	0	0
Net shares reclassified to mandatorily redeemable capital stock	(4)	(2)
Ending balance (shares)	43	44
Ending balance	4,319	4,412
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,746	1,657
Comprehensive income (loss)	82	77
Cash dividends on capital stock	(51)	(44)
Ending balance	1,777	1,690
Retained Earnings, Restricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	195	141
Comprehensive income (loss)	17	15
Cash dividends on capital stock	0	0
Ending balance	212	156
Retained Earnings, Unrestricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,551	1,516
Comprehensive income (loss)	65	62
Cash dividends on capital stock	(51)	(44)
Ending balance	1,565	1,534
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	95	112
Comprehensive income (loss)	(16)	5
Ending balance	$ 79	$ 117

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Allowance for Credit Losses (Details Textual) (Residential Portfolio Segment [Member], Conventional Single-Family Mortgage Loans)	3 Months Ended
	Mar. 31, 2015
Residential Portfolio Segment [Member] | Conventional Single-Family Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled Debt Restructuring Modification Period	36 months
Target housing expense ratio	31.00%
Maximum loan reamortization period	40 years
Incremental interest rate reduction	0.125%
Interest rate floor on loan modifications	3.00%
Troubaled Debt Restructuring Loan Modification Interest Rate Reduction Period if Expense Ratio is Not Met	36 months

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015								As of December 31, 2014
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	110,373	$	506		$	(2,100	)	$	103,004	$	454		$	(1,995	)
Derivatives not designated as hedging instruments:
Interest rate swaps	2,564		14			(123		)	6,348		12			(131		)
Interest rate caps or floors	16,500		16			(10		)	16,500		20			(13		)
Total derivatives not designated as hedging instruments	19,064		30			(133		)	22,848		32			(144		)
Total derivatives before netting and collateral adjustments	$	129,437	536			(2,233		)	$	125,852	486			(2,139		)
Netting adjustments and cash collateral (1)			(385		)	2,084					(374		)	1,955
Derivative assets and derivative liabilities			$	151		$	(149	)			$	112		$	(184	)

___________

⁽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 March 31,
	2015			2014
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	29		$	25
Derivatives not designated as hedging instruments:
Interest rate swaps	10			13
Interest rate caps or floors	—			(5		)
Net interest settlements	(15		)	(18		)
Total net losses related to derivatives not designated as hedging instruments	(5		)	(10		)
Net gains on derivatives and hedging activities	$	24		$	15

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 March 31,
	2015												2014
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	$	(184	)	$	219		$	35		$	(192	)	$	(91	)	$	114		$	23	$	(218	)
Consolidated obligations:
Bonds	79			(85		)	(6		)	117			110			(108		)	2		130
Discount notes	1			(1		)	—			1			—			—			—		—
Total	$	(104	)	$	133		$	29		$	(74	)	$	19		$	6		$	25	$	(88	)

____________

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

Offsetting of derivative assets and liabilities

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties.

	As of March 31, 2015						As of December 31, 2014
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	468		$	(1,755	)	$	439		$	(1,757	)
Cleared derivatives	68			(478		)	47			(382		)
Total gross recognized amount	536			(2,233		)	486			(2,139		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(462		)	1,606			(438		)	1,573
Cleared derivatives	77			478			64			382
Total gross amounts of netting adjustments and cash collateral	(385		)	2,084			(374		)	1,955
Derivative assets and derivative liabilities:
Bilateral derivatives	6			(149		)	1			(184		)
Cleared derivatives	145			—			111			—
Total derivative assets and total derivative liabilities	151			(149		)	112			(184		)
Non-cash collateral received or pledged not offset-cannot be sold or repledged:(1)
Bilateral derivatives	3			—			1			—
Net unsecured amounts: (2)
Bilateral derivatives	3			(149		)	—			(184		)
Cleared derivatives	145			—			111			—
Total net unsecured amount	$	148		$	(149	)	$	111		$	(184	)

____________ 

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

⁽²⁾ The Bank had net credit exposure of $146 and $110 as of March 31, 2015 and December 31, 2014, 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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Consolidated Obligations (Details 4) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Discount notes	$ 26,902	$ 37,162
Discount Notes [Member]
Short-term Debt [Line Items]
Discount notes	26,902	37,162
Discount notes par value	$ 26,913	$ 37,169
Discount notes weighted average interest rate	0.11%	0.10%

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

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 other FHLBanks’ outstanding consolidated obligations for which the Bank is jointly and severally liable was $699,589 and $718,218 as of March 31, 2015 and December 31, 2014, respectively, exclusive of the Bank’s own outstanding consolidated obligations. As of March 31, 2015, 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 March 31, 2015.

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

	As of March 31, 2015						As of December 31, 2014
	Expire Within One Year		Expire After One Year		Total		Expire Within One Year		Expire After One Year		Total
Standby letters of credit (1)	$	8,240	$	21,793	$	30,033	$	7,409	$	23,519	$	30,928
Commitments to fund additional advances	309		65		374		189		20		209
Unsettled consolidated obligation bonds, at par (2)	376		—		376		100		—		100
Unsettled consolidated obligation discount notes, at par (2)	—		—		—		50		—		50

____________

⁽¹⁾  Expire within one year includes 17 standby letters of credit for a total of $26 and 17 standby letters of credit for a total of $25 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, $376 and $100 of the Bank's unsettled consolidated obligation bonds were hedged with associated interest rate swaps that had traded but not yet settled, respectively. As of December 31, 2014, $50 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 $130 and $152 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014. 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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Estimated Fair Values (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis

Fair Value Measurements. 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 or nonrecurring basis on its Statements of Condition. The Bank measures certain impaired mortgage loans held for portfolio and real estate owned at Level 3 on a nonrecurring basis. Impaired mortgage loans are subject to being measured at fair value on a nonrecurring basis due to the recognition of a credit loss. 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.

	As of March 31, 2015
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,199		$	—	$	—		$	1,199
Another FHLBank’s bond	—		58			—		—			58
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,258			—		—			1,258
Available-for-sale securities:
Private-label residential MBS	—		—			1,905		—			1,905
Derivative assets:
Interest-rate related	—		536			—		(385		)	151
Grantor trust (included in Other assets)	26		—			—		—			26
Total recurring assets at fair value	$	26	$	1,794		$	1,905	$	(385	)	$	3,340
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Total recurring liabilities at fair value	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	6	$	—		$	6

____________ 

⁽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, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,208		$	—	$	—		$	1,208
Another FHLBank’s bond	—		60			—		—			60
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,269			—		—			1,269
Available-for-sale securities:
Private-label residential MBS	—		—			1,981		—			1,981
Derivative assets:
Interest-rate related	—		486			—		(374		)	112
Grantor trust (included in Other assets)	25		—			—		—			25
Total recurring assets at fair value	$	25	$	1,755		$	1,981	$	(374	)	$	3,387
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Total recurring liabilities at fair value	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	7	$	—		$	7

____________ 

⁽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 on a recurring basis using significant unobservable inputs (Level 3):

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	1,981		$	2,299
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(1		)	(1		)
Included in other comprehensive income (2)	(16		)	5
Accretion of credit losses in net interest income	10			7
Settlements	(69		)	(87		)
Balance, end of period	$	1,905		$	2,223

____________ 

⁽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.

De

Carrying Values and Estimated Fair Values

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

	As of March 31, 2015
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	519		$	519		$	519		$	—		$	—	$	—
Interest bearing-deposits	341			341			—			341			—		—
Securities purchased under agreements to resell	1,745			1,745			—			1,745			—		—
Federal funds sold	4,780			4,780			—			4,780			—		—
Trading securities	1,258			1,258			—			1,258			—		—
Available-for-sale securities	1,905			1,905			—			—			1,905		—
Held-to-maturity securities	24,055			24,177			—			22,803			1,374		—
Advances	85,416			84,937			—			84,937			—		—
Mortgage loans held for portfolio, net	707			788			—			788			—		—
Accrued interest receivable	178			178			—			178			—		—
Derivative assets	151			151			—			536			—		(385		)
Grantor trust assets (included in Other assets)	26			26			26			—			—		—
Liabilities:
Interest-bearing deposits	(1,482		)	(1,482		)	—			(1,482		)	—		—
Consolidated obligations, net:
Discount notes	(26,902		)	(26,899		)	—			(26,899		)	—		—
Bonds	(86,072		)	(86,253		)	—			(86,253		)	—		—
Mandatorily redeemable capital stock	(17		)	(17		)	(17		)	—			—		—
Accrued interest payable	(209		)	(209		)	—			(209		)	—		—
Derivative liabilities	(149		)	(149		)	—			(2,233		)	—		2,084

____________ 

⁽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, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	915		$	915		$	915		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	1,960			1,960			—			1,960			—		—
Federal funds sold	6,385			6,385			—			6,385			—		—
Trading securities	1,269			1,269			—			1,269			—		—
Available-for-sale securities	1,981			1,981			—			—			1,981		—
Held-to-maturity securities	23,897			23,988			—			22,534			1,454		—
Advances	99,644			99,579			—			99,579			—		—
Mortgage loans held for portfolio, net	746			828			—			828			—		—
Accrued interest receivable	179			179			—			179			—		—
Derivative assets	112			112			—			486			—		(374		)
Grantor trust assets (included in Other assets)	25			25			25			—			—		—
Liabilities:
Interest-bearing deposits	(1,110		)	(1,110		)	—			(1,110		)	—		—
Consolidated obligations, net:
Discount notes	(37,162		)	(37,162		)	—			(37,162		)	—		—
Bonds	(92,088		)	(92,211		)	—			(92,211		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(145		)	(145		)	—			(145		)	—		—
Derivative liabilities	(184		)	(184		)	—			(2,139		)	—		1,955

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Basis of Presentation Reclassification (Tables)

3 Months Ended

Mar. 31, 2015

Reclassification [Abstract]

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

Revision

The Bank identified a classification error in its previously reported Statements of Cash Flows for the three-month period ended March 31, 2014, contained in the previously filed Quarterly Reports on Form 10-Q for that period. 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:

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

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Capital and Mandatorily Redeemable Capital Stock (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Activity In Mandatorily Redeemable Capital Stock
Balance, beginning of year	$ 19	$ 24
Capital stock subject to mandatorily redemption reclassified from equity	4	2
Repurchase/redemption of mandatorily redeemable capital stock	(6)	(3)
Balance, end of year	$ 17	$ 23

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Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net income	$ 82	$ 77
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	(45)	(25)
Reversal of provision for credit losses	(1)	(4)
Gain due to change in net fair value adjustment on derivative and hedging activities	(13)	(16)
Net change in fair value adjustment on trading securities	12	14
Net impairment losses recognized in earnings	1	1
Gain on extinguishment of debt	0	(15)
Net change in:
Accrued interest receivable	1	5
Other assets	22	9
Accrued interest payable	64	47
Other liabilities	(27)	(11)
Total adjustments	14	5
Net cash provided by operating activities	96	82
Net change in:
Interest-bearing deposits	533	34
Securities purchased under agreements to resell	215	(1,000)
Federal funds sold	1,605	(3,675)
Trading securities:
Proceeds from maturities	0	200
Available-for-sale securities:
Proceeds from maturities	69	87
Held-to-maturity securities:
Proceeds from maturities of long-term	950	564
Purchases of long-term	(1,455)	(1,745)
Advances:
Proceeds from principal collected	57,614	48,534
Made	(43,198)	(43,021)
Mortgage loans:
Proceeds from principal collected	35	38
Proceeds from sale of foreclosed assets	5	7
Purchase of premises, equipment, and software	(1)	(1)
Net cash provided by investing activities	16,372	22
Financing activities
Net change in interest-bearing deposits	390	(280)
Net payments on derivatives containing a financing element	(21)	(22)
Proceeds from issuance of consolidated obligations:
Discount notes	209,007	115,262
Bonds	19,926	18,943
Payments for debt issuance costs	(3)	(2)
Payments for maturing and retiring consolidated obligations:
Discount notes	(219,266)	(124,663)
Bonds	(26,013)	(11,478)
Proceeds from issuance of capital stock	994	1,023
Payments for repurchase/redemption of capital stock	(1,821)	(1,492)
Payments for repurchase/redemption of mandatorily redeemable capital stock	(6)	(3)
Cash dividends paid	(51)	(44)
Net cash used in financing activities	(16,864)	(2,756)
Net decrease in cash and due from banks	(396)	(2,652)
Cash and due from banks at beginning of the period	915	4,374
Cash and due from banks at end of the period	519	1,722
Cash paid for:
Interest	19	49
Affordable Housing Program assessments, net	9	8
Noncash investing and financing activities:
Net shares reclassified to mandatorily redeemable capital stock	4	2
Transfers of mortgage loans to real estate owned	$ 5	$ 5

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Statements of Condition (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Deposits with other FHLBanks	$ 2	$ 2
Other FHLBank's bonds	58	60
Held-to-maturity securities, fair value	$ 24,177	$ 23,988
Capital stock Class B putable par value (per share)	$ 100	$ 100
Subclass B1
Capital stock, shares issued	7	7
Capital stock, shares outstanding	7	7
Subclass B2
Capital stock, shares issued	36	45
Capital stock, shares outstanding	36	45

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Consolidated Obligations

3 Months Ended

Mar. 31, 2015

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 March 31, 2015		As of December 31, 2014
Fixed-rate	$	74,419	$	77,912
Step up/down	5,901		6,301
Simple variable-rate	5,375		7,550
Variable-rate capped floater	—		25
Total par value	$	85,695	$	91,788

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

	As of March 31, 2015				As of December 31, 2014
	Amount			Weighted- average Interest Rate (%)	Amount			Weighted- average Interest Rate (%)
Due in one year or less	$	44,203		0.29	$	52,081		0.24
Due after one year through two years	15,676			1.39	16,116			1.27
Due after two years through three years	12,407			1.99	9,683			2.22
Due after three years through four years	4,826			1.63	4,971			1.67
Due after four years through five years	3,681			1.71	3,094			1.56
Due after five years	4,902			2.19	5,843			2.12
Total par value	85,695			0.98	91,788			0.86
Premiums	65				73
Discounts	(19		)		(21		)
Hedging adjustments	331				248
Total	$	86,072			$	92,088

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

	As of March 31, 2015		As of December 31, 2014
Noncallable	$	59,833	$	69,164
Callable	25,862		22,624
Total par value	$	85,695	$	91,788

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 March 31, 2015		As of December 31, 2014
Due or callable in one year or less	$	62,826	$	67,980
Due or callable after one year through two years	11,092		12,220
Due or callable after two years through three years	7,769		7,796
Due or callable after three years through four years	2,538		2,177
Due or callable after four years through five years	803		875
Due or callable after five years	667		740
Total par value	$	85,695	$	91,788

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 March 31, 2015	$	26,902	$	26,913	0.11
As of December 31, 2014	$	37,162	$	37,169	0.10

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
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	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		45,074,138

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Capital and Mandatorily Redeemable Capital Stock

3 Months Ended

Mar. 31, 2015

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 March 31, 2015						As of December 31, 2014
	Required			Actual			Required			Actual
Risk based capital	$	2,010		$	6,113		$	2,113		$	6,914
Total capital-to-assets ratio	4.00		%	5.04		%	4.00		%	5.00		%
Total regulatory capital (1)	$	4,851		$	6,113		$	5,534		$	6,914
Leverage ratio	5.00		%	7.56		%	5.00		%	7.50		%
Leverage capital	$	6,064		$	9,169		$	6,917		$	10,371

____________

⁽¹⁾ Total regulatory capital does not include accumulated other comprehensive income, but does include mandatorily redeemable capital stock.

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

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	19		$	24
Capital stock subject to mandatory redemption reclassified from equity	4			2
Repurchase/redemption of mandatorily redeemable capital stock	(6		)	(3		)
Balance, end of period	$	17		$	23

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 March 31, 2015		As of December 31, 2014
Due in one year or less	$	10	$	9
Due after one year through two years	6		8
Due after two years through three years	—		1
Due after four years through five years	1		1
Total	$	17	$	19

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Commitments and Contingencies (Details Textual) (USD $)	Mar. 31, 2015 bank	Dec. 31, 2014
Loss Contingencies [Line Items]
Number of Federal Home Loan Banks	12
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable	$ 699,589,000,000	$ 718,218,000,000
Carrying value guarantees related to standby letters of credit	206,000,000	580,000,000
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	30,033,000,000	30,928,000,000
Carrying value guarantees related to standby letters of credit	130,000,000	152,000,000
Mortgages [Member] | Forward Contracts [Member]
Loss Contingencies [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 0	$ 0

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Statements of Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest income
Advances	$ 62	$ 57
Prepayment fees on advances, net	1	0
Interest-bearing deposits	1	1
Securities purchased under agreements to resell	1	0
Federal funds sold	3	2
Trading securities	17	19
Available-for-sale securities	28	32
Held-to-maturity securities	60	62
Mortgage loans	11	13
Total interest income	184	186
Consolidated obligations:
Discount notes	9	8
Bonds	71	88
Total interest expense	80	96
Net interest income	104	90
Reversal of provision for credit losses	(1)	(4)
Net interest income after reversal of provision for credit losses	105	94
Noninterest income (loss)
Total other-than-temporary impairment losses	0	0
Net amount of impairment losses reclassified from accumulated other comprehensive income	(1)	(1)
Net impairment losses recognized in earnings	(1)	(1)
Net losses on trading securities	(12)	(14)
Net gains on derivatives and hedging activities	24	15
Gain on extinguishment of debt	0	15
Letters of credit fees	7	7
Other	2	1
Total noninterest income	20	23
Noninterest expense
Compensation and benefits	19	16
Other operating expenses	9	10
Finance Agency	3	3
Office of Finance	1	1
Other	2	1
Total noninterest expense	34	31
Income before assessments	91	86
Affordable Housing Program assessments	9	9
Net income	$ 82	$ 77

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Held-to-maturity Securities

3 Months Ended

Mar. 31, 2015

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 March 31, 2015								As of December 31, 2014
	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	$	79	$	1	$	—	$	80	$	81	$	1	$	—	$	82
Government-sponsored enterprises debt obligations	6,637		4		3		6,638		6,667		2		13		6,656
Mortgage-backed securities:
U.S. agency obligations-guaranteed single-family residential	346		4		—		350		366		5		—		371
Government-sponsored enterprises single-family residential	13,158		127		11		13,274		13,665		125		24		13,766
Government-sponsored enterprises multi-family commercial	2,462		3		4		2,461		1,663		3		7		1,659
Private-label residential	1,373		10		9		1,374		1,455		9		10		1,454
Total	$	24,055	$	149	$	27	$	24,177	$	23,897	$	145	$	54	$	23,988

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 March 31, 2015
	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	1	$	200	$	—	5	$	1,141	$	3	6	$	1,341	$	3
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	22	1,238		1		21	1,062		10		43	2,300		11
Government-sponsored enterprises multi-family commercial	31	1,685		2		2	289		2		33	1,974		4
Private-label residential	20	239		2		33	399		7		53	638		9
Total	74	$	3,362	$	5	61	$	2,891	$	22	135	$	6,253	$	27

	As of December 31, 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	$	899	$	1	6	$	1,233	$	12	10	$	2,132	$	13
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	8	496		1		26	1,828		23		34	2,324		24
Government-sponsored enterprises multi-family commercial	14	758		1		2	285		6		16	1,043		7
Private-label residential	22	229		1		32	415		9		54	644		10
Total	48	$	2,382	$	4	66	$	3,761	$	50	114	$	6,143	$	54

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 March 31, 2015				As of December 31, 2014
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	968	$	969	$	1,166	$	1,166
Due after one year through five years	5,748		5,749		5,582		5,572
Total non-mortgage-backed securities	6,716		6,718		6,748		6,738
Mortgage-backed securities	17,339		17,459		17,149		17,250
Total	$	24,055	$	24,177	$	23,897	$	23,988

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 March 31, 2015	$	390	$	2	$	3	$	389
As of December 31, 2014	$	419	$	2	$	4	$	417

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Available-for-sale Securities

3 Months Ended

Mar. 31, 2015

Available-for-sale Securities [Abstract]

Available-for-sale Securities

Available-for-sale Securities

Major Security Type. Private-label residential mortgaged-backed securities (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 March 31, 2015	$	1,803	$	21	$	123	$	—	$	1,905
As of December 31, 2014	$	1,863	$	19	$	137	$	—	$	1,981

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 March 31, 2015	4	$	189	$	5	9	$	183	$	16	13	$	372	$	21
As of December 31, 2014	4	$	140	$	2	9	$	191	$	17	13	$	331	$	19

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 March 31, 2015	$	1,174	$	20	$	78	$	—	$	1,232
As of December 31, 2014	$	1,213	$	17	$	90	$	—	$	1,286

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Transactions With Members and Their Affiliates and With Housing Associates

3 Months Ended

Mar. 31, 2015

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.

The Bank defines related parties as each of the other FHLBanks and those members with regulatory capital stock outstanding in excess of 10 percent of the Bank's total regulatory capital stock. Based on this definition, two member institutions, Bank of America, National Association and Navy Federal Credit Union, which held 16.5 percent and 10.1 percent, respectively, of the Bank’s total regulatory capital stock as of March 31, 2015, were considered related parties.

Total advances outstanding to Bank of America, National Association were $16,512 and $17,512 as of March 31, 2015 and December 31, 2014, respectively. Total deposits held in the name of Bank of America, National Association wereless than$1as ofMarch 31, 2015 and December 31, 2014. No mortgage loans or MBS were acquired from Bank of America, National Association during the three months ended March 31, 2015 and 2014.

Total advances outstanding to Navy Federal Credit Union were $9,986 and $9,942 as of March 31, 2015 and December 31, 2014, respectively. Total deposits held in the name of Navy Federal Credit Union were less than $1 as of March 31, 2015 and December 31, 2014, respectively. No mortgage loans or mortgage-backed securities were acquired from Navy Federal Credit Union during the three months ended March 31, 2015 and 2014.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2015

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			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2013	$	(13	)	$	125		$	112
Other comprehensive income (loss) before reclassifications:
Net change in fair value	—			4			4
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive income	—			5			5
Balance, March 31, 2014	$	(13	)	$	130		$	117
Balance, December 31, 2014	$	(23	)	$	118		$	95
Other comprehensive income before reclassifications:
Net change in fair value	—			(17		)	(17		)
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive loss	—			(16		)	(16		)
Balance, March 31, 2015	$	(23	)	$	102		$	79

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Mortgage Loans Held for Portfolio

3 Months Ended

Mar. 31, 2015

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 March 31, 2015			As of December 31, 2014
Fixed-rate medium-term (1)single-family residential mortgage loans	$	93		$	103
Fixed-rate long-term single-family residential mortgage loans	617			648
Total unpaid principal balance	710			751
Premiums	2			2
Discounts	(3		)	(4		)
Total	$	709		$	749

____________

⁽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 March 31, 2015		As of December 31, 2014
Conventional loans	$	659	$	698
Government-guaranteed or insured loans	51		53
Total unpaid principal balance	$	710	$	751

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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Consolidated Obligations (Details Textual)	3 Months Ended
	Mar. 31, 2015 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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Other-than-temporary Impairment

3 Months Ended

Mar. 31, 2015

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 March 31, 2015.

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 third-party 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 with a population of 10,000 or more people. The Bank’s housing price forecast as of March 31, 2015 included a short-term housing price forecast with projected changes ranging from a decrease of three percent to an increase of eight percent over the 12 month period beginning January 1, 2015. For the vast majority of markets, the projected short-term housing price changes range from an increase of one percent to five 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 Alt-A securities for which an other-than-temporary impairment was determined to have occurred during the three-month period ended March 31, 2015, as well as related current credit enhancement:

	Significant Inputs
	Prepayment Rates (%)	Default Rates (%)	Loss Severities (%)	Current Credit Enhancement (%)
Year of Securitization	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)	Weighted     Average (%)
2007	14.82	23.95	36.98	0.06

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 March 31,
	2015			2014
Balance, beginning of period	$	542		$	574
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	1			1
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities)	(10		)	(8		)
Balance, end of period	$	533		$	567

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 and illiquidity in the marketplace. 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

3 Months Ended

Mar. 31, 2015

Advances [Abstract]

Advances

Advances

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

	As of March 31, 2015			As of December 31, 2014
Overdrawn demand deposit accounts	$	2		$	—
Due in one year or less	46,608			57,675
Due after one year through two years	9,467			12,283
Due after two years through three years	10,075			9,435
Due after three years through four years	4,046			5,146
Due after four years through five years	2,825			2,910
Due after five years	10,443			10,433
Total par value	83,466			97,882
Discount on AHP (1) advances	(7		)	(7		)
Discount on EDGE (2) advances	(5		)	(5		)
Hedging adjustments	1,965			1,778
Deferred commitment fees	(3		)	(4		)
Total	$	85,416		$	99,644

___________

⁽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 March 31, 2015		As of December 31, 2014
Overdrawn demand deposit accounts	$	2	$	—
Due or convertible in one year or less	49,360		60,551
Due or convertible after one year through two years	9,019		12,040
Due or convertible after two years through three years	8,508		7,866
Due or convertible after three years through four years	3,468		4,241
Due or convertible after four years through five years	2,850		2,900
Due or convertible after five years	10,259		10,284
Total par value	$	83,466	$	97,882

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

	As of March 31, 2015		As of December 31, 2014
Fixed-rate:
Due in one year or less	$	33,357	$	42,839
Due after one year	29,680		30,089
Total fixed-rate	63,037		72,928
Variable-rate:
Due in one year or less	13,253		14,836
Due after one year	7,176		10,118
Total variable-rate	20,429		24,954
Total par value	$	83,466	$	97,882

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. The concentration of the Bank’s advances to its 10 largest borrowers was $59,290 and $72,799, as of March 31, 2015 and December 31, 2014, respectively. This concentration represented 71.0 percent and 74.4 percent, of total advances outstanding as of March 31, 2015 and December 31, 2014, respectively.

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 March 31, 2015 and December 31, 2014. No advance was past due as of March 31, 2015 and December 31, 2014.

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Allowance for Credit Losses

3 Months Ended

Mar. 31, 2015

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

The activity in the allowance for credit losses related to conventional single-family residential mortgage loans was as follows:

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	3		$	11
Reversal of provision for credit losses	(1		)	(4		)
Charge-offs	—			(3		)
Balance, end of period	$	2		$	4

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

	As of March 31, 2015		As of December 31, 2014
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1
Collectively evaluated for impairment	2		2
Total allowance for credit losses	$	2	$	3
Recorded investment:
Individually evaluated for impairment	$	14	$	15
Collectively evaluated for impairment	647		685
Total recorded investment	$	661	$	700

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 March 31, 2015
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	19		$	4		$	23
Past due 60-89 days	5			1			6
Past due 90 days or more	25			5			30
Total past due mortgage loans	49			10			59
Total current mortgage loans	612			41			653
Total mortgage loans (1)	$	661		$	51		$	712
Other delinquency statistics:
In process of foreclosure (2)	$	15		$	2		$	17
Seriously delinquent rate (3)	3.87		%	10.70		%	4.36		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	26		$	—		$	26

____________

⁽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, 2014
	Conventional Single-family Residential Mortgage Loans			Government-guaranteed or Insured Single-family Residential Mortgage Loans			Total
Past due 30-59 days	$	22		$	6		$	28
Past due 60-89 days	6			2			8
Past due 90 days or more	33			6			39
Total past due mortgage loans	61			14			75
Total current mortgage loans	639			39			678
Total mortgage loans (1)	$	700		$	53		$	753
Other delinquency statistics:
In process of foreclosure (2)	$	19		$	1		$	20
Seriously delinquent rate (3)	4.73		%	10.33		%	5.13		%
Past due 90 days or more and still accruing interest (4)	$	—		$	5		$	5
Loans on nonaccrual status (5)	$	33		$	—		$	33

____________

⁽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. Troubled debt restructurings are evaluated individually for impairment.

The table below presents the Bank's recorded investment balance in mortgage loans classified as troubled debt restructurings:

	As of March 31, 2015						As of December 31, 2014
	Performing		Non-performing		Total		Performing		Non-performing		Total
Conventional single-family residential loans	$	11	$	3	$	14	$	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 restructurings during the three months ended March 31, 2015 and 2014.

The financial amounts related to the Bank's troubled debt restructurings are not material to the Bank's financial condition or results of operations for the periods reported.

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Consolidated Obligations (Details 3) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt, Gross	$ 85,695	$ 91,788
Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	44,203	52,081
Bonds, Due after one year through two years	15,676	16,116
Bonds, Due after two years through three years	12,407	9,683
Bonds, Due after three years through four years	4,826	4,971
Bonds, Due after four years through five years	3,681	3,094
Bonds, Due after five years	4,902	5,843
Debt, Gross	85,695	91,788
Earlier of Contractual Maturity or Next Call Date [Member] | Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Bonds, Due in one year or less	62,826	67,980
Bonds, Due after one year through two years	11,092	12,220
Bonds, Due after two years through three years	7,769	7,796
Bonds, Due after three years through four years	2,538	2,177
Bonds, Due after four years through five years	803	875
Bonds, Due after five years	$ 667	$ 740

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Capital and Mandatorily Redeemable Capital Stock (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract]
Mandatorily redeemable capital stock	$ 17	$ 19	$ 23	$ 24
Redemption period for excess capital stock (in years)	5 years

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Consolidated Obligations (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt, Gross	$ 85,695	$ 91,788
Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Debt, Gross	85,695	91,788
Noncallable | Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Debt, Gross	59,833	69,164
Callable | Consolidated Obligation Bonds [Member]
Debt Instrument [Line Items]
Debt, Gross	$ 25,862	$ 22,624

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2015

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			Total  Accumulated Other Comprehensive Income
Balance, December 31, 2013	$	(13	)	$	125		$	112
Other comprehensive income (loss) before reclassifications:
Net change in fair value	—			4			4
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive income	—			5			5
Balance, March 31, 2014	$	(13	)	$	130		$	117
Balance, December 31, 2014	$	(23	)	$	118		$	95
Other comprehensive income before reclassifications:
Net change in fair value	—			(17		)	(17		)
Reclassification from accumulated other comprehensive income to net income:
Noncredit other-than-temporary impairment losses	—			1			1
Net current period other comprehensive loss	—			(16		)	(16		)
Balance, March 31, 2015	$	(23	)	$	102		$	79

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Advances (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Advances [Abstract]
Overdrawn demand deposit accounts	$ 2		$ 0
Federal Home Loan Bank, Advances, Maturities Summary, in Next Fiscal Year	46,608		57,675
Federal Home Loan Bank Advances, Maturities, Summary in Rolling Year Two	9,467		12,283
Federal Home Loan Bank, Advances, Maturities Summary, in Rolling Year Three	10,075		9,435
Federal Home Loan Bank Advances, Maturities, Summary In Rolling Year Four	4,046		5,146
Federal Home Loan Bank Advances, Maturities, Summary In Rolling Year Five	2,825		2,910
Federal Home Loan Bank Advances, Maturities, Summary After Rolling Year Five	10,443		10,433
Federal Home Loan Bank, Advances, Par Value	83,466		97,882
Federal Home Loan Bank, Advances, Discount on Affordable Housing Program	(7)	[1]	(7)	[1]
Discount on Economic Development and Growth Enhancement Program Advances	(5)	[2]	(5)	[2]
Hedging adjustments	1,965		1,778
Federal Home Loan Bank, Advances, Commitment Fees	(3)		(4)
Federal Home Loan Bank Advances	$ 85,416		$ 99,644

[1] The Affordable Housing Program

[2] The Economic Development and Growth Enhancement program

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Estimated Fair Values

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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.

Estimated Fair Value Measurements. 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 or nonrecurring basis on its Statements of Condition. The Bank measures certain impaired mortgage loans held for portfolio and real estate owned at Level 3 on a nonrecurring basis. Impaired mortgage loans are subject to being measured at fair value on a nonrecurring basis due to the recognition of a credit loss. 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.

	As of March 31, 2015
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,199		$	—	$	—		$	1,199
Another FHLBank’s bond	—		58			—		—			58
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,258			—		—			1,258
Available-for-sale securities:
Private-label residential MBS	—		—			1,905		—			1,905
Derivative assets:
Interest-rate related	—		536			—		(385		)	151
Grantor trust (included in Other assets)	26		—			—		—			26
Total recurring assets at fair value	$	26	$	1,794		$	1,905	$	(385	)	$	3,340
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Total recurring liabilities at fair value	$	—	$	(2,233	)	$	—	$	2,084		$	(149	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	6	$	—		$	6

____________ 

⁽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, 2014
	Fair Value Measurements Using							Netting Adjustment (1)
	Level 1		Level 2			Level 3					Total
Recurring fair value measurements - Assets
Trading securities:
Government-sponsored enterprises debt obligations	$	—	$	1,208		$	—	$	—		$	1,208
Another FHLBank’s bond	—		60			—		—			60
State or local housing agency debt obligations	—		1			—		—			1
Total trading securities	—		1,269			—		—			1,269
Available-for-sale securities:
Private-label residential MBS	—		—			1,981		—			1,981
Derivative assets:
Interest-rate related	—		486			—		(374		)	112
Grantor trust (included in Other assets)	25		—			—		—			25
Total recurring assets at fair value	$	25	$	1,755		$	1,981	$	(374	)	$	3,387
Recurring fair value measurements - Liabilities
Derivative liabilities:
Interest-rate related	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Total recurring liabilities at fair value	$	—	$	(2,139	)	$	—	$	1,955		$	(184	)
Nonrecurring fair value measurements - Assets
Real estate owned	$	—	$	—		$	7	$	—		$	7

____________ 

⁽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 on a recurring basis using significant unobservable inputs (Level 3):

	For the Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	1,981		$	2,299
Total (losses) gains realized and unrealized: (1)
Included in net impairment losses recognized in earnings	(1		)	(1		)
Included in other comprehensive income (2)	(16		)	5
Accretion of credit losses in net interest income	10			7
Settlements	(69		)	(87		)
Balance, end of period	$	1,905		$	2,223

____________ 

⁽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.

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 due to the short-term nature and negligible credit risk.

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014.

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 equivalent to the replacement advance rates for advances with similar terms as of March 31, 2015 and December 31, 2014, respectively. The Bank calculates its replacement advance rates at a spread to its cost of funds. The Bank's cost of funds approximates the consolidated obligation curve. To estimate the fair values of advances with optionality, market-based expectations of future interest rate volatility implied from current market prices for similar options are also used. 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 due to the short-term nature and negligible credit risk.

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 curve 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 March 31, 2015 and December 31, 2014.

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 London Interbank Offered Rate (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 Office of Finance constructs an internal curve, referred to as the consolidated obligation curve, using the U.S. Treasury curve as a base curve that is then adjusted by adding indicative spreads obtained from market observable sources. These market indications are generally derived from pricing indications from dealers, historical pricing relationships, recent government-sponsored enterprise trades, and secondary market activity. To estimate the fair values of consolidated obligations with optionality the Bank uses market based expectations of future interest rate volatility implied from current market prices for similar options.

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 March 31, 2015 and December 31, 2014. 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 March 31, 2015
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	519		$	519		$	519		$	—		$	—	$	—
Interest bearing-deposits	341			341			—			341			—		—
Securities purchased under agreements to resell	1,745			1,745			—			1,745			—		—
Federal funds sold	4,780			4,780			—			4,780			—		—
Trading securities	1,258			1,258			—			1,258			—		—
Available-for-sale securities	1,905			1,905			—			—			1,905		—
Held-to-maturity securities	24,055			24,177			—			22,803			1,374		—
Advances	85,416			84,937			—			84,937			—		—
Mortgage loans held for portfolio, net	707			788			—			788			—		—
Accrued interest receivable	178			178			—			178			—		—
Derivative assets	151			151			—			536			—		(385		)
Grantor trust assets (included in Other assets)	26			26			26			—			—		—
Liabilities:
Interest-bearing deposits	(1,482		)	(1,482		)	—			(1,482		)	—		—
Consolidated obligations, net:
Discount notes	(26,902		)	(26,899		)	—			(26,899		)	—		—
Bonds	(86,072		)	(86,253		)	—			(86,253		)	—		—
Mandatorily redeemable capital stock	(17		)	(17		)	(17		)	—			—		—
Accrued interest payable	(209		)	(209		)	—			(209		)	—		—
Derivative liabilities	(149		)	(149		)	—			(2,233		)	—		2,084

____________ 

⁽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, 2014
				Estimated Fair Value
	Carrying Value			Total			Level 1			Level 2			Level 3		Netting Adjustment (1)
Assets:
Cash and due from banks	$	915		$	915		$	915		$	—		$	—	$	—
Interest bearing-deposits	1,010			1,010			—			1,010			—		—
Securities purchased under agreements to resell	1,960			1,960			—			1,960			—		—
Federal funds sold	6,385			6,385			—			6,385			—		—
Trading securities	1,269			1,269			—			1,269			—		—
Available-for-sale securities	1,981			1,981			—			—			1,981		—
Held-to-maturity securities	23,897			23,988			—			22,534			1,454		—
Advances	99,644			99,579			—			99,579			—		—
Mortgage loans held for portfolio, net	746			828			—			828			—		—
Accrued interest receivable	179			179			—			179			—		—
Derivative assets	112			112			—			486			—		(374		)
Grantor trust assets (included in Other assets)	25			25			25			—			—		—
Liabilities:
Interest-bearing deposits	(1,110		)	(1,110		)	—			(1,110		)	—		—
Consolidated obligations, net:
Discount notes	(37,162		)	(37,162		)	—			(37,162		)	—		—
Bonds	(92,088		)	(92,211		)	—			(92,211		)	—		—
Mandatorily redeemable capital stock	(19		)	(19		)	(19		)	—			—		—
Accrued interest payable	(145		)	(145		)	—			(145		)	—		—
Derivative liabilities	(184		)	(184		)	—			(2,139		)	—		1,955

____________ 

⁽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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Available-for-sale Securities (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Available-for-sale Securities [Line Items]

Available-for-Sale Securities Reconciliation

Major Security Type. Private-label residential mortgaged-backed securities (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 March 31, 2015	$	1,803	$	21	$	123	$	—	$	1,905
As of December 31, 2014	$	1,863	$	19	$	137	$	—	$	1,981

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 March 31, 2015	$	1,174	$	20	$	78	$	—	$	1,232
As of December 31, 2014	$	1,213	$	17	$	90	$	—	$	1,286

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 March 31, 2015	4	$	189	$	5	9	$	183	$	16	13	$	372	$	21
As of December 31, 2014	4	$	140	$	2	9	$	191	$	17	13	$	331	$	19

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Other-than-temporary Impairment (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Schedule of Roll-Forward Cumulative Credit Losses Recognized
Balance, beginning of period	$ 542	$ 574
Amount related to credit loss for which an other-than-temporary impairment was previously recognized	1	1
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities)	(10)	(8)
Balance, end of period	$ 533	$ 567

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Available-for-sale Securities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Securities	$ 1,905	$ 1,981
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized cost of available-for-sale securities	1,803	1,863
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income	21	19
Gross unrealized gains on available-for-sale securities	123	137
Gross unrealized losses on available-for-sale securities	0	0
Available-for-sale Securities, Debt Securities	$ 1,905	$ 1,981

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Statements of Comprehensive Income (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 82	$ 77
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities:
Net change in fair value on other-than-temporarily impaired available-for-sale securities	(17)	4
Reclassification of noncredit portion of impairment losses included in net income	1	1
Total other comprehensive (loss) income	(16)	5
Total comprehensive income	$ 66	$ 82

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Trading Securities

3 Months Ended

Mar. 31, 2015

Trading Securities [Abstract]

Trading Securities

Trading Securities

Major Security Types. Trading securities were as follows:

	As of March 31, 2015		As of December 31, 2014
Government-sponsored enterprises debt obligations	$	1,199	$	1,208
Another FHLBank’s bond (1)	58		60
State or local housing agency debt obligations	1		1
Total	$	1,258	$	1,269

 ____________

⁽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 March 31,
	2015			2014
Net losses on trading securities held at period end	$	(12	)	$	(14	)

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Allowance for Credit Losses (Credit Quality Indicators) (Details) (Residential Portfolio Segment [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	$ 59		$ 75
Total current mortgage loans	653		678
Total recorded investment	712	[1]	753	[2]
In process of foreclosure	17	[3]	20	[3]
Seriously delinquent rate	4.36%	[4]	5.13%	[4]
Past due 90 days or more and still accruing interest	5	[5]	5	[5]
Loans on nonaccrual status	26	[6]	33	[6]
Accrued Interest on Mortgage Loans	3		4
Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	49		61
Total current mortgage loans	612		639
Total recorded investment	661	[1]	700	[2]
In process of foreclosure	15	[3]	19	[3]
Seriously delinquent rate	3.87%	[4]	4.73%	[4]
Past due 90 days or more and still accruing interest	0	[5]	0	[5]
Loans on nonaccrual status	26	[6]	33	[6]
Troubled debt restructurings	14		15
Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	10		14
Total current mortgage loans	41		39
Total recorded investment	51	[1]	53	[2]
In process of foreclosure	2	[3]	1	[3]
Seriously delinquent rate	10.70%	[4]	10.33%	[4]
Past due 90 days or more and still accruing interest	5	[5]	5	[5]
Loans on nonaccrual status	0	[6]	0	[6]
Performing Financing Receivable | Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Troubled debt restructurings	11		11
Nonperforming Financing Receivable | Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Troubled debt restructurings	3		4
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	23		28
Financing Receivables, 30 to 59 Days Past Due [Member] | Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	19		22
Financing Receivables, 30 to 59 Days Past Due [Member] | Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	4		6
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	6		8
Financing Receivables, 60 to 89 Days Past Due [Member] | Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	5		6
Financing Receivables, 60 to 89 Days Past Due [Member] | Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	1		2
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	30		39
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Conventional Single-Family Mortgage Loans
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	25		33
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due mortgage loans	$ 5		$ 6

[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.

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Capital and Mandatorily Redeemable Capital Stock (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Due in one year or less	$ 10	$ 9
Due after one year through two years	6	8
Due after two years through three years	0	1
Due after four years through five years	1	1
Mandatorily redeemable capital stock	$ 17	$ 19	$ 23	$ 24

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Held-to-maturity Securities (Tables) (Held-to-maturity Securities)

3 Months Ended

Mar. 31, 2015

Held-to-maturity Securities

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 March 31, 2015								As of December 31, 2014
	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	$	79	$	1	$	—	$	80	$	81	$	1	$	—	$	82
Government-sponsored enterprises debt obligations	6,637		4		3		6,638		6,667		2		13		6,656
Mortgage-backed securities:
U.S. agency obligations-guaranteed single-family residential	346		4		—		350		366		5		—		371
Government-sponsored enterprises single-family residential	13,158		127		11		13,274		13,665		125		24		13,766
Government-sponsored enterprises multi-family commercial	2,462		3		4		2,461		1,663		3		7		1,659
Private-label residential	1,373		10		9		1,374		1,455		9		10		1,454
Total	$	24,055	$	149	$	27	$	24,177	$	23,897	$	145	$	54	$	23,988

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 March 31, 2015
	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	1	$	200	$	—	5	$	1,141	$	3	6	$	1,341	$	3
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	22	1,238		1		21	1,062		10		43	2,300		11
Government-sponsored enterprises multi-family commercial	31	1,685		2		2	289		2		33	1,974		4
Private-label residential	20	239		2		33	399		7		53	638		9
Total	74	$	3,362	$	5	61	$	2,891	$	22	135	$	6,253	$	27

	As of December 31, 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	$	899	$	1	6	$	1,233	$	12	10	$	2,132	$	13
Mortgage-backed securities:
Government-sponsored enterprises single-family residential	8	496		1		26	1,828		23		34	2,324		24
Government-sponsored enterprises multi-family commercial	14	758		1		2	285		6		16	1,043		7
Private-label residential	22	229		1		32	415		9		54	644		10
Total	48	$	2,382	$	4	66	$	3,761	$	50	114	$	6,143	$	54

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

	As of March 31, 2015				As of December 31, 2014
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Non-mortgage-backed securities:
Due in one year or less	$	968	$	969	$	1,166	$	1,166
Due after one year through five years	5,748		5,749		5,582		5,572
Total non-mortgage-backed securities	6,716		6,718		6,748		6,738
Mortgage-backed securities	17,339		17,459		17,149		17,250
Total	$	24,055	$	24,177	$	23,897	$	23,988

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 March 31, 2015	$	390	$	2	$	3	$	389
As of December 31, 2014	$	419	$	2	$	4	$	417

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Derivatives and Hedging Activities (Details 3) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 536		$ 486
Derivative Liability, Fair Value, Gross Liability	(2,233)		(2,139)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(385)	[1]	(374)	[1]
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	2,084	[1]	1,955	[1]
Derivative assets	151		112
Derivative liabilities	(149)		(184)
Derivative Asset, Fair Value, Amount Offset Against Collateral	148		111
Derivative Liability, Fair Value, Amount Offset Against Collateral	(149)		(184)
Credit Risk Contract [Member]
Derivatives, Fair Value [Line Items]
Credit Derivative Exposure Net	146		110
Over the Counter [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	468		439
Derivative Liability, Fair Value, Gross Liability	(1,755)		(1,757)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(462)		(438)
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	1,606		1,573
Derivative assets	6		1
Derivative liabilities	(149)		(184)
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged	3	[2]	1	[2]
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged	0		0
Derivative Asset, Fair Value, Amount Offset Against Collateral	3		0
Derivative Liability, Fair Value, Amount Offset Against Collateral	(149)		(184)
Exchange Cleared [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	68		47
Derivative Liability, Fair Value, Gross Liability	(478)		(382)
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	77		64
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset	478		382
Derivative assets	145		111
Derivative liabilities	0		0
Derivative Asset, Fair Value, Amount Offset Against Collateral	145	[3]	111	[3]
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ 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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

[2] 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.

[3] The Bank had net credit exposure of $146 and $110 as of March 31, 2015 and December 31, 2014, 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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Basis of Presentation Reclassification (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Increase (Decrease) in Other Operating Liabilities	$ (27)	$ (11)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	14	5
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	96	82
Purchases of long-term	(1,455)	(1,745)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	16,372	22
Scenario, Previously Reported [Member]
Increase (Decrease) in Other Operating Liabilities		(320)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities		(304)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(227)
Purchases of long-term		(1,436)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations		331
Scenario, Actual [Member]
Increase (Decrease) in Other Operating Liabilities		(11)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities		5
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		82
Purchases of long-term		(1,745)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations		$ 22

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2015

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 2014 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 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 March 31, 2015								As of December 31, 2014
	Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities			Notional Amount of Derivatives		Derivative Assets			Derivative Liabilities
Derivatives in hedging relationships:
Interest rate swaps	$	110,373	$	506		$	(2,100	)	$	103,004	$	454		$	(1,995	)
Derivatives not designated as hedging instruments:
Interest rate swaps	2,564		14			(123		)	6,348		12			(131		)
Interest rate caps or floors	16,500		16			(10		)	16,500		20			(13		)
Total derivatives not designated as hedging instruments	19,064		30			(133		)	22,848		32			(144		)
Total derivatives before netting and collateral adjustments	$	129,437	536			(2,233		)	$	125,852	486			(2,139		)
Netting adjustments and cash collateral (1)			(385		)	2,084					(374		)	1,955
Derivative assets and derivative liabilities			$	151		$	(149	)			$	112		$	(184	)

___________

⁽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. Cash collateral posted and related accrued interest was $1,749 and $1,613 as of March 31, 2015 and December 31, 2014, respectively. Cash collateral received and related accrued interest was $50 and $32 as of March 31, 2015 and December 31, 2014, respectively.

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 March 31,
	2015			2014
Derivatives and hedged items in fair value hedging relationships:
Interest rate swaps	$	29		$	25
Derivatives not designated as hedging instruments:
Interest rate swaps	10			13
Interest rate caps or floors	—			(5		)
Net interest settlements	(15		)	(18		)
Total net losses related to derivatives not designated as hedging instruments	(5		)	(10		)
Net gains on derivatives and hedging activities	$	24		$	15

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 March 31,
	2015												2014
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	$	(184	)	$	219		$	35		$	(192	)	$	(91	)	$	114		$	23	$	(218	)
Consolidated obligations:
Bonds	79			(85		)	(6		)	117			110			(108		)	2		130
Discount notes	1			(1		)	—			1			—			—			—		—
Total	$	(104	)	$	133		$	29		$	(74	)	$	19		$	6		$	25	$	(88	)

____________

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

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

The following table presents the fair value of derivative instruments meeting or not meeting netting requirements, including the related collateral received from or pledged to counterparties.

	As of March 31, 2015						As of December 31, 2014
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Gross recognized amount:
Bilateral derivatives	$	468		$	(1,755	)	$	439		$	(1,757	)
Cleared derivatives	68			(478		)	47			(382		)
Total gross recognized amount	536			(2,233		)	486			(2,139		)
Gross amounts of netting adjustments and cash collateral:
Bilateral derivatives	(462		)	1,606			(438		)	1,573
Cleared derivatives	77			478			64			382
Total gross amounts of netting adjustments and cash collateral	(385		)	2,084			(374		)	1,955
Derivative assets and derivative liabilities:
Bilateral derivatives	6			(149		)	1			(184		)
Cleared derivatives	145			—			111			—
Total derivative assets and total derivative liabilities	151			(149		)	112			(184		)
Non-cash collateral received or pledged not offset-cannot be sold or repledged:(1)
Bilateral derivatives	3			—			1			—
Net unsecured amounts: (2)
Bilateral derivatives	3			(149		)	—			(184		)
Cleared derivatives	145			—			111			—
Total net unsecured amount	$	148		$	(149	)	$	111		$	(184	)

____________ 

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

⁽²⁾ The Bank had net credit exposure of $146 and $110 as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 was $1,342 for which the Bank has posted collateral with a fair value of $1,194 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 $89 of collateral at fair value to its derivative counterparties as of March 31, 2015.