x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
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) |
Large accelerated filer | ¨ | Accelerated filer | ¨ |
Non-accelerated filer | x (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
PART I. | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9 | ||
Item 9A. | ||
Item 9B. | ||
PART III. | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV. | ||
Item 15. | ||
Item 16. | ||
• | the Bank’s business strategy and changes in operations, including, without limitation, product growth and change in product mix; |
• | future performance, including profitability, dividends, retained earnings, developments, or market forecasts; |
• | repurchases of stock in excess of a stockholder’s total stock investment requirement (excess stock); |
• | credit losses on advances and investments in mortgage loans and mortgage-backed securities (MBS), particularly private-label MBS; |
• | balance sheet changes and components thereof, such as changes in advances balances and the size of the Bank’s portfolio of investments in mortgage assets; |
• | the Bank’s minimum retained earnings target; |
• | the interest rate environment in which the Bank does business; |
• | forward-looking accounting and financial statement effects; and |
• | those other factors identified and discussed in the Bank’s public filings with the Securities and Exchange Commission (SEC). |
• | future economic and market conditions, including, for example, inflation and deflation, the timing and volume of market activity; general consumer confidence and spending habits; the strength of local economies in which the Bank conducts its business; housing prices, employment rates, and interest-rate changes that affect the housing markets; |
• | changes in the demand for the Bank’s advances and other products and services resulting from changes in members’ deposit flows and credit demands, as well as from changes in other sources of funding and liquidity available to members; |
• | changes in the financial health of the Bank’s members; |
• | volatility of market prices, rates, and indices that could affect the value of collateral held by the Bank as security for the obligations of Bank members and counterparties to derivatives and similar agreements; |
• | the risk of changes in interest rates on the Bank’s interest-rate sensitive assets and liabilities; |
• | changes in various governmental monetary or fiscal policies, as well as legislative and regulatory changes, including changes in accounting principles generally accepted in the United States of America (GAAP) and related industry practices and standards, or the application thereof; |
• | changes in the credit ratings of the U.S. government and/or the FHLBanks; |
• | political, national, and world events, including acts of war, terrorism, natural disasters or other catastrophic events, and legislative, regulatory, judicial, or other developments that affect the economy, the Bank’s market area, the Bank, its members, counterparties, its federal regulators, and/or investors in the consolidated obligations of the FHLBanks; |
• | competitive forces, including other sources of funding available to Bank members, other entities borrowing funds in the capital markets, and the ability to attract and retain skilled individuals; |
• | the Bank’s ability to develop, implement, promote the efficient performance of, and support and safeguard, technology and information systems, including those provided by third-parties, sufficient to measure and effectively manage the risks of the Bank’s business without significant interruption; |
• | changes in investor demand for consolidated obligations of the FHLBanks and/or the terms of derivatives and similar agreements, including changes in investor preference and demand for certain terms of these instruments, which may be less attractive to the Bank, or which the Bank may be unable to offer; |
• | the Bank’s ability to introduce, support, and manage the growth of new products and services and to successfully manage the risks associated with those products and services; |
• | the Bank’s ability to successfully manage the credit and other risks associated with any new types of collateral securing advances; |
• | the availability from acceptable counterparties, upon acceptable terms, of swaps, options, and other derivative financial instruments of the types and in the quantities needed for investment funding and risk-management purposes; |
• | the uncertainty and costs of litigation, including litigation filed against one or more of the FHLBanks; |
• | membership changes, including changes resulting from mergers or changes in the principal place of business of Bank members, which could result in decreased advances or other business from such members; |
• | changes in the FHLBank Act or Finance Agency regulations that affect FHLBank operations and regulatory oversight or changes in other statutes or regulations applicable to the FHLBanks; and |
• | adverse developments or events, including financial restatements, affecting or involving one or more other FHLBanks or the FHLBank System in general. |
• | when the ratio is at least 70 percent or higher, the strategic plan should include an assessment of the FHLBank’s prospects for maintaining this level; |
• | when the ratio is at least 55 percent but less than 70 percent, the strategic plan should explain the FHLBank’s plan to increase its mission focus; and |
• | when the ratio is below 55 percent, the strategic plan should include an explanation of the circumstances that caused the ratio to be at that level and detailed plans to increase the ratio. If the FHLBank maintains a ratio below 55 percent |
• | Credit Products; |
• | Community Investment Services; and |
• | Cash Management and Other Services. |
• | providing funding for mortgages held in the member’s portfolio, including both conforming and nonconforming mortgages; |
• | providing temporary funding during the origination, packaging, and sale of mortgages into the secondary market; |
• | providing funding for commercial real estate loans; |
• | assisting with asset-liability management by matching the maturity and prepayment characteristics of mortgage loans or adjusting the sensitivity of the member’s balance sheet to interest-rate changes; |
• | providing a cost-effective alternative to meet contingent liquidity needs and adhere to liquidity management strategies; and |
• | providing funding for community investment and economic development. |
• | Daily Rate Credit Advance (DRC Advance). The DRC Advance provides short-term funding with rate resets on a daily basis, similar to federal funds lines. The DRC Advance is available generally from one day to 12 months. |
• | Adjustable Rate Credit Advance (ARC Advance). The ARC Advance is a long-term advance available for a term generally of up to 10 years with rate resets at specified intervals. |
• | Float-to-Fixed Advance. This is an advance that floats to London Interbank Offered Rate (LIBOR) and changes to a predetermined fixed rate on a predetermined date prior to maturity. The Bank offers this product with a maturity generally of up to 15 years. |
• | Fixed Rate Credit Advance (FRC Advance). The FRC Advance offers fixed-rate funds with principal due at maturity generally from one month to 20 years. |
• | Callable Advance. The callable advance is a fixed-rate advance with a fixed maturity and the option for the borrower to prepay the advance on an option exercise date(s) before maturity without a fee. The options can be Bermudan (periodically during the life of the advance) or European (one-time). The Bank offers this product with a maturity generally of up to 10 years with options generally from three months to 10 years. |
• | Expander Advance. The expander advance is a fixed-rate advance with a fixed maturity and an option by the borrower to increase the amount of the advance in the future at a predetermined interest rate. The option may be Bermudan or European. The Bank has established internal limits on the amount of such options that may be sold based upon which quarter they will mature. The Bank offers this product with a maturity generally of two years to 20 years with an option exercise date that can be set generally from one month to 10 years. |
• | Principal Reducing Credit Advance (PRC Advance). The PRC Advance is a fixed-rate advance with a final maturity generally of up to 20 years and predetermined principal reductions on specific dates. The reduction schedule is predetermined by the borrower and may be scheduled on a monthly, quarterly, semi-annual, or annual basis. Amortization options include equal payments or structures similar to a mortgage. |
As of December 31, | |||||||||||
2017 | 2016 | ||||||||||
Amount | Percent of Total | Amount | Percent of Total | ||||||||
Fixed rate (1) | $ | 42,984 | 42.04 | $ | 38,941 | 39.62 | |||||
Adjustable or variable-rate indexed | 38,344 | 37.50 | 34,930 | 35.54 | |||||||
Hybrid | 18,901 | 18.48 | 21,453 | 21.83 | |||||||
Convertible | 693 | 0.68 | 1,497 | 1.52 | |||||||
Principal reducing credit | 1,327 | 1.30 | 1,467 | 1.49 | |||||||
Total par value | $ | 102,249 | 100.00 | $ | 98,288 | 100.00 |
As of December 31, 2017 | ||||||||||
Institution | State | Advances Par Value | Percent of Total Advances | Weighted-average Interest Rate (%) (1) | ||||||
Bank of America, National Association | North Carolina | $ | 21,010 | 20.55 | 1.32 | |||||
Navy Federal Credit Union | Virginia | 15,530 | 15.19 | 2.26 | ||||||
Capital One, National Association | Virginia | 8,608 | 8.42 | 1.45 | ||||||
TIAA, FSB | Florida | 7,081 | 6.92 | 1.78 | ||||||
Branch Banking and Trust Company | North Carolina | 5,042 | 4.93 | 1.90 | ||||||
BankUnited, National Association | Florida | 4,771 | 4.67 | 1.40 | ||||||
Regions Bank | Alabama | 4,152 | 4.06 | 1.44 | ||||||
Pentagon Federal Credit Union | Virginia | 2,361 | 2.31 | 2.48 | ||||||
Compass Bank | Alabama | 1,625 | 1.59 | 1.73 | ||||||
United Bank | Virginia | 1,260 | 1.23 | 1.60 | ||||||
Subtotal (10 largest borrowers) | 71,440 | 69.87 | 1.69 | |||||||
Subtotal (all other borrowers) | 30,809 | 30.13 | 1.72 | |||||||
Total par value | $ | 102,249 | 100.00 | 1.70 |
As of December 31, 2017 | ||||||||
Institution | State | Advances Par Value and Standby Letters of Credit Balance | Percent of Total Advances Par Value and Standby Letters of Credit | |||||
Bank of America, National Association | North Carolina | $ | 31,108 | 23.49 | ||||
Navy Federal Credit Union | Virginia | 15,661 | 11.82 | |||||
Capital One, National Association | Virginia | 9,115 | 6.88 | |||||
Compass Bank | Alabama | 8,218 | 6.21 | |||||
TIAA, FSB | Florida | 7,232 | 5.46 | |||||
SunTrust Bank | Georgia | 6,708 | 5.06 | |||||
Branch Banking and Trust Company | North Carolina | 5,042 | 3.81 | |||||
BankUnited, National Association | Florida | 4,771 | 3.60 | |||||
Pentagon Federal Credit Union | Virginia | 4,289 | 3.24 | |||||
Regions Bank | Alabama | 4,152 | 3.14 | |||||
Subtotal (10 largest borrowers) | 96,296 | 72.71 | ||||||
Subtotal (all other borrowers) | 36,142 | 27.29 | ||||||
Total advances par value and standby letters of credit | $ | 132,438 | 100.00 |
• | the Competitive AHP is offered annually through a competitive application process and provides funds for either rental or ownership real estate projects submitted through member financial institutions; |
• | the Set-aside AHP currently consists of the following nine distinct products: First-time Homebuyer, Community Partners, Foreclosure Recovery, Veterans Purchase, Returning Veterans Purchase, Veterans Rehabilitation, Returning Veterans Rehabilitation, Community Rebuild and Restore, and Structured Partnership Product. The Set-aside AHP products are available on a first-come, first-served basis and provide no-cost funds through member financial institutions to be used for down payments, closing costs, and other costs associated with the purchase, purchase/rehabilitation, or rehabilitation of homes for families at or below 80 percent of the area median income; and |
• | the discounted advance program consists of the Community Investment Program and the Economic Development Program, which both provide the Bank’s members with access to low-cost funding to create affordable rental and homeownership opportunities and to engage in commercial and economic development activities that benefit low- and moderate-income individuals and neighborhoods. |
• | cash; |
• | obligations of, or fully guaranteed by, the United States; |
• | secured advances; |
• | mortgages that have any guaranty, insurance, or commitment from the United States or any agency of the United States; and |
• | investments described in Section 16(a) of the FHLBank Act which, among other items, include securities that a fiduciary or trust fund may purchase under the laws of the state in which the FHLBank is located. |
• | the Bank is unable to provide the required certification; |
• | the Bank projects, at any time, that it will fail to comply with its liquidity requirements or will be unable to meet all of its current obligations due during the quarter; |
• | the Bank actually fails to comply with its liquidity requirements or to meet all of its current obligations due during the quarter; or |
• | the Bank negotiates to enter or enters into an agreement with one or more other FHLBanks to obtain financial assistance to meet its current obligations due during the quarter. |
• | the Bank becomes a noncomplying FHLBank as a result of failing to provide a required certification related to liquidity requirements and ability to meet all current obligations; |
• | the Bank becomes a noncomplying FHLBank as a result of being required to provide notice to the Finance Agency of certain matters related to liquidity requirements or inability to meet current obligations; or |
• | the Finance Agency determines that the Bank will cease to be in compliance with its liquidity requirements or will lack the capacity to meet all of its current obligations due during the quarter. |
• | 4.25 percent of the member’s outstanding par value of advances; and |
• | 8.00 percent of any outstanding targeted debt/equity investment (such as multifamily residential mortgage loan assets) sold by the member to the Bank on or after December 17, 2004. |
• | preserve a favorable interest-rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps; |
• | reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond; |
• | reduce the interest-rate sensitivity and repricing gaps of assets and liabilities; |
• | mitigate the adverse earnings effects of the shortening or lengthening of certain assets (e.g., mortgage assets); |
• | protect the value of existing asset or liability positions; |
• | manage embedded options in assets and liabilities; and |
• | achieve overall asset/liability management objectives. |
2017 | 2016 | |||||||||||
Amount | Annualized Rate (%) (1) | Amount | Annualized Rate (%) (2) | |||||||||
First quarter | $ | 57 | 4.77 | $ | 52 | 4.66 | ||||||
Second quarter | 61 | 4.77 | 59 | 4.87 | ||||||||
Third quarter | 58 | 4.91 | 55 | 4.64 | ||||||||
Fourth quarter | 62 | 5.01 | 60 | 4.64 |
As of and for the Years Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Statements of Condition (as of year end) | |||||||||||||||||||
Total assets (1) | $ | 146,566 | $ | 138,671 | $ | 142,246 | $ | 138,344 | $ | 122,316 | |||||||||
Advances | 102,440 | 99,077 | 104,168 | 99,644 | 89,588 | ||||||||||||||
Mortgage loans held for portfolio | 436 | 524 | 586 | 749 | 929 | ||||||||||||||
Allowance for credit losses on mortgage loans | (1 | ) | (1 | ) | (2 | ) | (3 | ) | (11 | ) | |||||||||
Investments (2) | 40,378 | 36,510 | 35,175 | 36,502 | 26,944 | ||||||||||||||
Interest-bearing deposits | 1,177 | 1,118 | 1,084 | 1,110 | 1,752 | ||||||||||||||
Consolidated obligations, net: | |||||||||||||||||||
Discount notes (1) (3) | 50,139 | 41,292 | 69,434 | 37,162 | 32,202 | ||||||||||||||
Bonds (1) (3) | 87,523 | 88,647 | 63,953 | 92,088 | 80,728 | ||||||||||||||
Total consolidated obligations, net (1) (3) | 137,662 | 129,939 | 133,387 | 129,250 | 112,930 | ||||||||||||||
Mandatorily redeemable capital stock | 1 | 1 | 14 | 19 | 24 | ||||||||||||||
Affordable Housing Program payable | 77 | 69 | 63 | 65 | 74 | ||||||||||||||
Capital stock - putable | 5,154 | 4,955 | 5,101 | 5,150 | 4,883 | ||||||||||||||
Retained earnings | 2,003 | 1,892 | 1,840 | 1,746 | 1,657 | ||||||||||||||
Accumulated other comprehensive income | 110 | 104 | 75 | 95 | 112 | ||||||||||||||
Total capital | 7,267 | 6,951 | 7,016 | 6,991 | 6,652 | ||||||||||||||
Statements of Income (for the year ended) | |||||||||||||||||||
Net interest income | 157 | 334 | 243 | 323 | 341 | ||||||||||||||
(Reversal) provision for credit losses | — | (1 | ) | (1 | ) | (5 | ) | 5 | |||||||||||
Net impairment losses recognized in earnings | (2 | ) | (3 | ) | (5 | ) | (3 | ) | — | ||||||||||
Net losses on trading securities | (5 | ) | (30 | ) | (61 | ) | (60 | ) | (100 | ) | |||||||||
Net gains on derivatives and hedging activities | 341 | 119 | 261 | 120 | 204 | ||||||||||||||
Standby letters of credit fees | 26 | 28 | 28 | 26 | 20 | ||||||||||||||
Other income (4) | 7 | (3 | ) | 2 | 22 | 42 | |||||||||||||
Noninterest expense | 136 | 137 | 135 | 132 | 127 | ||||||||||||||
Income before assessments | 388 | 309 | 334 | 301 | 375 | ||||||||||||||
Affordable Housing Program assessments | 39 | 31 | 33 | 30 | 37 | ||||||||||||||
Net income | 349 | 278 | 301 | 271 | 338 | ||||||||||||||
Performance Ratios (%) | |||||||||||||||||||
Return on equity (5) | 4.97 | 4.08 | 4.63 | 4.11 | 5.42 | ||||||||||||||
Return on assets (6) | 0.25 | 0.20 | 0.23 | 0.21 | 0.28 | ||||||||||||||
Net interest margin (7) | 0.11 | 0.24 | 0.19 | 0.25 | 0.29 | ||||||||||||||
Regulatory capital ratio (as of year end) (8) | 4.88 | 4.94 | 4.89 | 5.00 | 5.37 | ||||||||||||||
Equity to assets ratio (9) | 4.97 | 4.88 | 4.91 | 5.09 | 5.18 | ||||||||||||||
Dividend payout ratio (10) | 68.40 | 81.08 | 68.48 | 67.30 | 34.52 |
(1) | The Bank adopted new accounting guidance related to the presentation of debt issuance costs effective January 1, 2016. As a result, $7 million of debt issuance costs that were included in other assets were reclassified as a reduction in the corresponding consolidated obligations balance on the Bank’s Statements of Condition as of December 31, 2015. |
December 31, 2017 | $ | 896,441 | |
December 31, 2016 | 859,361 | ||
December 31, 2015 | 771,948 | ||
December 31, 2014 | 718,218 | ||
December 31, 2013 | 654,076 |
As of December 31, | ||||||||||||||||||
2017 | 2016 | Increase (Decrease) | ||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent | |||||||||||||
Advances | $ | 102,440 | 69.89 | $ | 99,077 | 71.45 | $ | 3,363 | 3.39 | |||||||||
Investment securities | 26,322 | 17.96 | 26,248 | 18.93 | 74 | 0.28 | ||||||||||||
Other investments | 14,056 | 9.59 | 10,262 | 7.40 | 3,794 | 36.96 | ||||||||||||
Mortgage loans, net | 435 | 0.30 | 523 | 0.38 | (88 | ) | (16.78 | ) | ||||||||||
Loan to another FHLBank | 200 | 0.14 | — | — | 200 | 100.00 | ||||||||||||
Other assets | 3,113 | 2.12 | 2,561 | 1.84 | 552 | 21.58 | ||||||||||||
Total assets | $ | 146,566 | 100.00 | $ | 138,671 | 100.00 | $ | 7,895 | 5.69 | |||||||||
Consolidated obligations, net: | ||||||||||||||||||
Discount notes | $ | 50,139 | 35.99 | $ | 41,292 | 31.35 | $ | 8,847 | 21.43 | |||||||||
Bonds | 87,523 | 62.83 | 88,647 | 67.30 | (1,124 | ) | (1.27 | ) | ||||||||||
Deposits | 1,177 | 0.85 | 1,118 | 0.85 | 59 | 5.28 | ||||||||||||
Other liabilities | 460 | 0.33 | 663 | 0.50 | (203 | ) | (30.52 | ) | ||||||||||
Total liabilities | $ | 139,299 | 100.00 | $ | 131,720 | 100.00 | $ | 7,579 | 5.75 | |||||||||
Capital stock | $ | 5,154 | 70.93 | $ | 4,955 | 71.28 | $ | 199 | 4.03 | |||||||||
Retained earnings | 2,003 | 27.56 | 1,892 | 27.22 | 111 | 5.82 | ||||||||||||
Accumulated other comprehensive income | 110 | 1.51 | 104 | 1.50 | 6 | 5.91 | ||||||||||||
Total capital | $ | 7,267 | 100.00 | $ | 6,951 | 100.00 | $ | 316 | 4.55 |
As of December 31, | |||||||||||
2017 | 2016 | ||||||||||
Amount | Weighted-average Interest Rate (%) | Amount | Weighted-average Interest Rate (%) | ||||||||
Due in one year or less | $ | 60,795 | 1.51 | $ | 47,325 | 0.86 | |||||
Due after one year through two years | 10,779 | 1.70 | 8,244 | 2.11 | |||||||
Due after two years through three years | 14,210 | 1.68 | 5,904 | 1.53 | |||||||
Due after three years through four years | 4,162 | 2.22 | 5,859 | 1.33 | |||||||
Due after four years through five years | 3,729 | 2.19 | 11,846 | 1.68 | |||||||
Due after five years | 8,574 | 2.92 | 19,110 | 1.78 | |||||||
Total par value | 102,249 | 1.72 | 98,288 | 1.31 | |||||||
Discount on AHP advances | (4 | ) | (5 | ) | |||||||
Discount on EDGE (1) advances | (3 | ) | (4 | ) | |||||||
Hedging adjustments | 198 | 798 | |||||||||
Total | $ | 102,440 | $ | 99,077 |
As of December 31, | Increase (Decrease) | |||||||||||||
2017 | 2016 | Amount | Percent | |||||||||||
Investment securities: | ||||||||||||||
State or local housing agency debt obligations | $ | 1 | $ | 77 | $ | (76 | ) | (98.31 | ) | |||||
Government-sponsored enterprises debt obligations | 5,406 | 6,302 | (896 | ) | (14.23 | ) | ||||||||
Mortgage-backed securities: | ||||||||||||||
U.S. agency obligations-guaranteed residential | 157 | 209 | (52 | ) | (24.97 | ) | ||||||||
Government-sponsored enterprises residential | 9,357 | 10,752 | (1,395 | ) | (12.96 | ) | ||||||||
Government-sponsored enterprises commercial | 9,729 | 6,773 | 2,956 | 43.65 | ||||||||||
Private-label residential | 1,672 | 2,135 | (463 | ) | (21.71 | ) | ||||||||
Total mortgage-backed securities | 20,915 | 19,869 | 1,046 | 5.27 | ||||||||||
Total investment securities | 26,322 | 26,248 | 74 | 0.28 | ||||||||||
Other investments: | ||||||||||||||
Interest-bearing deposits (1) | 2,176 | 1,106 | 1,070 | 96.64 | ||||||||||
Securities purchased under agreements to resell | 2,500 | 1,386 | 1,114 | 80.40 | ||||||||||
Federal funds sold | 9,380 | 7,770 | 1,610 | 20.72 | ||||||||||
Total other investments | 14,056 | 10,262 | 3,794 | 36.96 | ||||||||||
Total investments | $ | 40,378 | $ | 36,510 | $ | 3,868 | 10.59 |
(1) | Interest-bearing deposits include a $401 million and $1.1 billion, business money market account with Branch Banking and Trust Company, one of the Bank’s 10 largest borrowers as of December 31, 2017 and 2016, and a $46 million business money market account with United Bank one of the Bank’s 10 largest borrowers as of December 31, 2017. |
As of December 31, | |||||
2017 | 2016 | ||||
Percent of Total | Percent of Total | ||||
Florida | 23.14 | 24.44 | |||
South Carolina | 20.80 | 22.00 | |||
Georgia | 10.22 | 11.18 | |||
Virginia | 10.70 | 9.82 | |||
North Carolina | 8.62 | 9.08 | |||
All other | 26.52 | 23.48 | |||
Total | 100.00 | 100.00 |
• | Adequately Capitalized - FHLBank meets or exceeds 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. |
Increase (Decrease) | |||||||||||||||||||||||||
For the Years Ended December 31, | 2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||||||||
2017 | 2016 | 2015 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Net interest income | $ | 157 | $ | 334 | $ | 243 | $ | (177 | ) | (53.12 | ) | $ | 91 | 37.87 | |||||||||||
Reversal of provision for credit losses | — | (1 | ) | (1 | ) | 1 | 40.48 | — | 11.16 | ||||||||||||||||
Noninterest income | 367 | 111 | 225 | 256 | 228.54 | (114 | ) | (50.54 | ) | ||||||||||||||||
Noninterest expense | 136 | 137 | 135 | (1 | ) | (0.86 | ) | 2 | 2.22 | ||||||||||||||||
Total assessments | 39 | 31 | 33 | 8 | 25.11 | (2 | ) | (7.60 | ) | ||||||||||||||||
Net income | $ | 349 | $ | 278 | $ | 301 | $ | 71 | 25.26 | $ | (23 | ) | (7.52 | ) |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income: | |||||||||||
Advances | $ | 817 | $ | 586 | $ | 141 | |||||
Investments | 677 | 489 | 427 | ||||||||
Mortgage loans | 25 | 31 | 40 | ||||||||
Total interest income | 1,519 | 1,106 | 608 | ||||||||
Interest expense: | |||||||||||
Consolidated obligations | 1,351 | 768 | 364 | ||||||||
Interest-bearing deposits | 11 | 4 | — | ||||||||
Mandatorily redeemable capital stock | — | — | 1 | ||||||||
Total interest expense | 1,362 | 772 | 365 | ||||||||
Net interest income | $ | 157 | $ | 334 | $ | 243 |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (%) | Average Balance | Interest | Yield/ Rate (%) | Average Balance | Interest | Yield/ Rate (%) | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Interest-bearing deposits (1) | $ | 1,751 | $ | 29 | 1.68 | $ | 2,718 | $ | 17 | 0.64 | $ | 2,437 | $ | 5 | 0.20 | ||||||||||||||
Securities purchased under agreements to resell | 1,023 | 10 | 1.01 | 992 | 4 | 0.38 | 2,522 | 3 | 0.13 | ||||||||||||||||||||
Federal funds sold | 12,016 | 128 | 1.06 | 8,501 | 36 | 0.42 | 7,990 | 11 | 0.14 | ||||||||||||||||||||
Investment securities (2) | 25,671 | 510 | 1.99 | 26,696 | 432 | 1.62 | 25,982 | 408 | 1.57 | ||||||||||||||||||||
Advances | 97,988 | 817 | 0.83 | 98,396 | 586 | 0.60 | 91,405 | 141 | 0.15 | ||||||||||||||||||||
Mortgage loans (3) | 486 | 25 | 5.20 | 520 | 31 | 5.96 | 664 | 40 | 5.95 | ||||||||||||||||||||
Loans to other FHLBanks | 5 | — | 0.76 | 4 | — | 0.40 | 7 | — | 0.14 | ||||||||||||||||||||
Total interest-earning assets | 138,940 | 1,519 | 1.09 | 137,827 | 1,106 | 0.80 | 131,007 | 608 | 0.46 | ||||||||||||||||||||
Allowance for credit losses on mortgage loans | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||
Other assets | 1,999 | 1,881 | 1,435 | ||||||||||||||||||||||||||
Total assets | $ | 140,938 | $ | 139,706 | $ | 132,440 | |||||||||||||||||||||||
Liabilities and Capital | |||||||||||||||||||||||||||||
Interest-bearing deposits (4) | $ | 1,173 | 11 | 0.92 | $ | 1,190 | 4 | 0.31 | $ | 1,253 | — | 0.03 | |||||||||||||||||
Consolidated obligations, net: | |||||||||||||||||||||||||||||
Discount notes | 48,676 | 436 | 0.90 | 58,744 | 249 | 0.42 | 42,328 | 59 | 0.14 | ||||||||||||||||||||
Bonds | 83,198 | 915 | 1.10 | 70,877 | 519 | 0.73 | 80,267 | 305 | 0.38 | ||||||||||||||||||||
Other borrowings | 4 | — | 3.54 | 9 | — | 4.80 | 19 | 1 | 4.01 | ||||||||||||||||||||
Total interest-bearing liabilities | 133,051 | 1,362 | 1.02 | 130,820 | 772 | 0.59 | 123,867 | 365 | 0.29 | ||||||||||||||||||||
Other liabilities | 882 | 2,067 | 2,076 | ||||||||||||||||||||||||||
Total capital | 7,005 | 6,819 | 6,497 | ||||||||||||||||||||||||||
Total liabilities and capital | $ | 140,938 | $ | 139,706 | $ | 132,440 | |||||||||||||||||||||||
Net interest income and net yield on interest-earning assets | $ | 157 | 0.11 | $ | 334 | 0.24 | $ | 243 | 0.19 | ||||||||||||||||||||
Interest-rate spread | 0.07 | 0.21 | 0.17 | ||||||||||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 104.43 | 105.36 | 105.77 |
(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 mortgage 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. |
2017 vs. 2016 | 2016 vs. 2015 | ||||||||||||||||||||||
Volume (1) | Rate (1) | Increase (Decrease) | Volume (1) | Rate (1) | Increase (Decrease) | ||||||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||||||||
Interest-bearing deposits | $ | (8 | ) | $ | 20 | $ | 12 | $ | 1 | $ | 11 | $ | 12 | ||||||||||
Securities purchased under agreements to resell | — | 6 | 6 | (3 | ) | 4 | 1 | ||||||||||||||||
Federal funds sold | 20 | 72 | 92 | 1 | 24 | 25 | |||||||||||||||||
Investment securities | (17 | ) | 95 | 78 | 11 | 13 | 24 | ||||||||||||||||
Advances | (2 | ) | 233 | 231 | 11 | 434 | 445 | ||||||||||||||||
Mortgage loans | (2 | ) | (4 | ) | (6 | ) | (9 | ) | — | (9 | ) | ||||||||||||
Total | (9 | ) | 422 | 413 | 12 | 486 | 498 | ||||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||||||||
Interest-bearing deposits | — | 7 | 7 | — | 4 | 4 | |||||||||||||||||
Consolidated obligations, net: | |||||||||||||||||||||||
Discount notes | (49 | ) | 236 | 187 | 31 | 159 | 190 | ||||||||||||||||
Bonds | 102 | 294 | 396 | (40 | ) | 254 | 214 | ||||||||||||||||
Other borrowings | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Total | 53 | 537 | 590 | (10 | ) | 417 | 407 | ||||||||||||||||
(Decrease) increase in net interest income | $ | (62 | ) | $ | (115 | ) | $ | (177 | ) | $ | 22 | $ | 69 | $ | 91 |
(1) | Volume change is calculated as the change in volume multiplied by the previous rate, while rate change is calculated as the change in rate multiplied by the previous volume. The rate/volume change, calculated as the change in rate multiplied by the change in volume, is allocated between volume change and rate change at the ratio each component bears to the absolute value of its total. |
Increase (Decrease) | |||||||||||||||||||||||||
For the Years Ended December 31, | 2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||||||||||
2017 | 2016 | 2015 | Amount | Percent | Amount | Percent | |||||||||||||||||||
Net impairment losses recognized in earnings | $ | (2 | ) | $ | (3 | ) | $ | (5 | ) | $ | 1 | 15.12 | $ | 2 | 53.90 | ||||||||||
Net losses on trading securities | (5 | ) | (30 | ) | (61 | ) | 25 | 81.95 | 31 | 50.87 | |||||||||||||||
Net gains on derivatives and hedging activities | 341 | 119 | 261 | 222 | 185.87 | (142 | ) | (54.40 | ) | ||||||||||||||||
Standby letters of credit fees | 26 | 28 | 28 | (2 | ) | (3.23 | ) | — | (3.15 | ) | |||||||||||||||
Loss on litigation settlements, net | — | (6 | ) | — | 6 | 100.00 | (6 | ) | (100.00 | ) | |||||||||||||||
Other | 7 | 3 | 2 | 4 | 96.15 | 1 | 89.90 | ||||||||||||||||||
Total noninterest income | $ | 367 | $ | 111 | $ | 225 | $ | 256 | 228.54 | $ | (114 | ) | (50.54 | ) |
For the Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Advances | Investments | Consolidated Obligation Bonds | Consolidated Obligation Discount Notes | Balance Sheet | Other(4) | Total | |||||||||||||||||||||
Net interest income: | |||||||||||||||||||||||||||
Amortization or accretion of hedging activities in net interest income (1) | $ | (356 | ) | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | (354 | ) | |||||||||||
Net interest settlements included in net interest income (2) | (254 | ) | — | 75 | (3 | ) | — | — | (182 | ) | |||||||||||||||||
Total effect on net interest income | $ | (610 | ) | $ | — | $ | 77 | $ | (3 | ) | $ | — | $ | — | $ | (536 | ) | ||||||||||
Net gains on derivatives and hedging activities: | |||||||||||||||||||||||||||
Gains on fair value hedges | $ | 340 | $ | — | $ | 2 | $ | 1 | $ | — | $ | — | $ | 343 | |||||||||||||
Losses on derivatives not receiving hedge accounting including net interest settlements | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
Price alignment on derivatives | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
Total net gains (losses) on derivatives and hedging activities | 340 | — | 2 | 1 | (3 | ) | 1 | 341 | |||||||||||||||||||
Net losses on trading securities (3) | — | (6 | ) | — | — | — | — | (6 | ) | ||||||||||||||||||
Total effect on noninterest income | $ | 340 | $ | (6 | ) | $ | 2 | $ | 1 | $ | (3 | ) | $ | 1 | $ | 335 |
For the Year Ended December 31, 2016 | |||||||||||||||||||||||
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) | $ | (140 | ) | $ | — | $ | — | $ | — | $ | — | $ | (140 | ) | |||||||||
Net interest settlements included in net interest income (2) | (529 | ) | — | 230 | (3 | ) | — | (302 | ) | ||||||||||||||
Total effect on net interest income | $ | (669 | ) | $ | — | $ | 230 | $ | (3 | ) | $ | — | $ | (442 | ) | ||||||||
Net gains on derivatives and hedging activities: | |||||||||||||||||||||||
Gains (losses) on fair value hedges | $ | 131 | $ | — | $ | (8 | ) | $ | (3 | ) | $ | — | $ | 120 | |||||||||
(Losses) gains on derivatives not receiving hedge accounting including net interest settlements | — | (2 | ) | 2 | — | (1 | ) | (1 | ) | ||||||||||||||
Total net gains (losses) on derivatives and hedging activities | 131 | (2 | ) | (6 | ) | (3 | ) | (1 | ) | 119 | |||||||||||||
Net losses on trading securities (3) | — | (30 | ) | — | — | — | (30 | ) | |||||||||||||||
Total effect on noninterest income | $ | 131 | $ | (32 | ) | $ | (6 | ) | $ | (3 | ) | $ | (1 | ) | $ | 89 |
(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 Year Ended December 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) | $ | (385 | ) | $ | — | $ | 4 | $ | — | $ | — | $ | (381 | ) | |||||||||
Net interest settlements included in net interest income (2) | (713 | ) | — | 469 | 9 | — | (235 | ) | |||||||||||||||
Total effect on net interest income | $ | (1,098 | ) | $ | — | $ | 473 | $ | 9 | $ | — | $ | (616 | ) | |||||||||
Net gains on derivatives and hedging activities: | |||||||||||||||||||||||
Gains (losses) on fair value hedges | $ | 279 | $ | — | $ | (12 | ) | $ | 2 | $ | — | $ | 269 | ||||||||||
(Losses) gains on derivatives not receiving hedge accounting including net interest settlements | — | (6 | ) | 2 | — | (4 | ) | (8 | ) | ||||||||||||||
Total net gains (losses) on derivatives and hedging activities | 279 | (6 | ) | (10 | ) | 2 | (4 | ) | 261 | ||||||||||||||
Net losses on trading securities (3) | — | (61 | ) | — | — | — | (61 | ) | |||||||||||||||
Total effect on noninterest income | $ | 279 | $ | (67 | ) | $ | (10 | ) | $ | 2 | $ | (4 | ) | $ | 200 |
(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 Years Ended December 31, | Increase (Decrease) | ||||||||||||||||||
2017 | 2016 | 2015 | 2017 vs. 2016 | 2016 vs. 2015 | |||||||||||||||
Noninterest expense: | |||||||||||||||||||
Compensation and benefits | $ | 82 | $ | 79 | $ | 76 | $ | 3 | $ | 3 | |||||||||
Cost of quarters | 5 | 5 | 5 | — | — | ||||||||||||||
Other operating expenses | 31 | 32 | 34 | (1 | ) | (2 | ) | ||||||||||||
Total operating expenses | 118 | 116 | 115 | 2 | 1 | ||||||||||||||
Finance Agency and Office of Finance | 15 | 15 | 15 | — | — | ||||||||||||||
Other | 3 | 6 | 5 | (3 | ) | 1 | |||||||||||||
Total noninterest expense | 136 | 137 | 135 | (1 | ) | 2 | |||||||||||||
Affordable Housing Program assessments | 39 | 31 | 33 | 8 | (2 | ) | |||||||||||||
Total noninterest expense and assessments | $ | 175 | $ | 168 | $ | 168 | $ | 7 | $ | — |
• | the Bank’s joint and several liability for all FHLBank consolidated obligations; and |
• | the Bank’s outstanding commitments arising from standby letters of credit. |
One year or less | After one year through three years | After three years through five years | After five years | Total | |||||||||||||||
Consolidated obligations bonds | $ | 60,410 | $ | 21,177 | $ | 4,790 | $ | 1,225 | $ | 87,602 | |||||||||
Pension and post-retirement contributions | 16 | 14 | 10 | 27 | 67 | ||||||||||||||
Operating leases | 1 | 1 | — | — | 2 | ||||||||||||||
Mandatorily redeemable capital stock | 1 | — | — | — | 1 | ||||||||||||||
Total | $ | 60,428 | $ | 21,192 | $ | 4,800 | $ | 1,252 | $ | 87,672 |
• | Fair Value Measurements; |
• | Other-than-temporary Impairment; |
• | Allowance for Credit Losses; and |
• | Derivatives and Hedging Activities. |
• | market indices (primarily LIBOR and the Overnight Index Swap curve); |
• | discount rates; |
• | prepayments; |
• | market volatility; and |
• | other factors, including default and loss rates. |
• | conversion of a fixed rate to a variable rate; |
• | conversion of a variable rate with a fixed component to another variable rate; and |
• | macro hedging of balance sheet risks. |
• | the hedging strategy; |
• | identification of the hedging instrument and the hedged item; |
• | determination of the appropriate accounting designation; |
• | the method used for the determination of effectiveness for transactions qualifying for hedge accounting; and |
• | the method for recording ineffectiveness for hedging relationships. |
• | reduces marginal tax rates for many corporate and individual taxpayers; |
• | limits some housing-related tax deductions by limiting the mortgage interest deductions to the first $750 thousand in principal value of mortgages, limiting the state and local tax deduction to a combined $10 thousand for income, sales, and property taxes, and for alternative minimum taxpayers, eliminating the deduction for home equity loan interest, all of which changes may particularly affect states with higher property values and/or higher state and local taxes; and |
• | changes tax rules for some classes of FHLBank members by limiting tax deductions for FDIC premiums paid by banks with more than $10 billion of total consolidated assets and amending a variety of tax provisions applicable to insurance companies. |
• | Capital Adequacy - maintain adequate levels of capital components (retained earnings and capital stock) that protect against the risks inherent on the Bank’s balance sheet and provide sufficient resiliency to withstand potential stressed losses. |
• | Market Risk/Earnings - maintain an adequate ROE spread to average three-month LIBOR, while providing attractive funding for advance products, consistent payment of dividends, reliable access to funding, and maintenance of retained earnings in excess of stressed retained earnings targets within a conservative risk management framework. |
• | Liquidity Risk - maintain sufficient liquidity and funding sources to allow the Bank to meet expected and unexpected obligations. |
• | Credit and Concentration Risk - avoid credit losses by managing credit and collateral risk exposures within acceptable parameters. Achieve this objective through data-driven analysis (and when appropriate, perform shareholder-specific analysis), monitoring, and verification. Monitor through enhanced reporting any elevated risk concentrations, and when appropriate, manage and mitigate the increased risk. |
• | Governance/Compliance/Legal - compliance with all applicable laws and regulations and manage other legal exposures. |
• | Mission/Business Model - (1) deliver financial services and consistent access to affordable funds that are the size and structure shareholders desire, helping them to manage risk and extend credit in their communities, while achieving the Bank’s affordable housing mission goals; and (2) provide value through the consistent payment of dividends and the repurchasing of excess stock. |
• | Operational Risk - (1) manage the key risks associated with operational availability of critical systems, the integrity and security of the Bank’s information, and the alignment of technology investment with key business objectives through enterprise-wide risk management practices and governance based on industry standards; (2) deliver an employee value |
• | Reputation - recognize the importance of and promote positive awareness and perception of the Bank and its mission among key external stakeholders impacting the Bank’s ability to achieve its mission. |
• | As a fair-value hedge of an underlying financial instrument or a firm commitment. For example, the Bank uses derivatives to reduce the interest-rate net sensitivity of consolidated obligations, advances, investments, and mortgage loans by, in effect, converting them to a short-term interest rate, usually based on LIBOR. The Bank also uses derivatives to manage embedded options in assets and liabilities and to hedge the market value of existing assets and liabilities. The Bank’s management reevaluates its hedging strategies from time to time and may change the hedging techniques used or adopt new strategies as deemed prudent. |
• | As an asset-liability management tool, for which hedge accounting is not applied (non-qualifying hedge). The Bank may enter into derivatives that do not qualify for hedge accounting. As a result, the Bank recognizes the change in fair value and interest income or expense of these derivatives in the “Noninterest income (loss)” section of the Statements of Income as “Net gains on derivatives and hedging activities” with no offsetting fair-value adjustments of the hedged asset, liability, or firm commitment. Consequently, these transactions can introduce earnings volatility. |
As of December 31, | ||||||||||||
2017 | 2016 | |||||||||||
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 | $ | 4,722 | $ | 4,761 | ||||||
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 | 20,182 | 23,654 | ||||||||
Non-qualifying hedges | — | 40 | ||||||||||
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 | 118 | 227 | ||||||||
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 | — | 10 | ||||||||
Total | 25,022 | 28,692 | ||||||||||
Investments | ||||||||||||
Pay fixed, receive variable interest rate swap | Converts the investment’s fixed rate to a variable-rate index. | Non-qualifying hedges | 56 | 256 | ||||||||
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 | 10,067 | 15,201 | ||||||||
Non-qualifying hedges | — | 150 | ||||||||||
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 | 7,585 | 5,144 | ||||||||
Total | 17,652 | 20,495 |
As of December 31, | ||||||||||||
2017 | 2016 | |||||||||||
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 | 2,383 | 16,040 | ||||||||
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 | 13,000 | 15,000 | ||||||||
Total | 13,105 | 15,105 | ||||||||||
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 | 715 | 597 | ||||||||
Stand-alone derivatives | ||||||||||||
Mortgage delivery commitment | Exposed to fair-value risk associated with fixed-rate mortgage purchase commitments | N/A | — | 12 | ||||||||
Total Notional Amount | $ | 58,933 | $ | 81,197 |
As of December 31, | |||||||||||||||||
2017 | 2016 | ||||||||||||||||
Up 200 Basis Points | Current | Down 200 Basis Points (1) | Up 200 Basis Points | Current | Down 200 Basis Points (1) | ||||||||||||
Assets | 0.27 | 0.19 | 0.16 | 0.36 | 0.25 | 0.19 | |||||||||||
Liabilities | 0.15 | 0.17 | 0.17 | 0.20 | 0.22 | 0.22 | |||||||||||
Equity | 2.54 | 0.51 | 0.07 | 3.55 | 0.82 | (0.32 | ) | ||||||||||
Effective duration gap | 0.12 | 0.02 | (0.01 | ) | 0.16 | 0.03 | (0.03 | ) |
As of December 31, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Up 200 Basis Points | Current | Down 200 Basis Points (1) | Up 200 Basis Points | Current | Down 200 Basis Points (1) | ||||||||||||||||||
Assets | $ | 145,420 | $ | 146,087 | $ | 147,041 | $ | 136,659 | $ | 137,500 | $ | 138,439 | |||||||||||
Liabilities | 138,283 | 138,732 | 139,131 | 130,111 | 130,660 | 130,985 | |||||||||||||||||
Equity | 7,137 | 7,355 | 7,910 | 6,548 | 6,840 | 7,454 |
As of December 31, | ||||||||||||||
2017 | 2016 | |||||||||||||
Rating | Number of Borrowers | Outstanding Advances | Number of Borrowers | Outstanding Advances | ||||||||||
1 | 16 | $ | 2,380 | 24 | $ | 3,424 | ||||||||
2 | 51 | 20,549 | 42 | 17,447 | ||||||||||
3 | 84 | 53,972 | 75 | 18,012 | ||||||||||
4 | 79 | 6,366 | 95 | 17,605 | ||||||||||
5 | 104 | 13,557 | 103 | 17,613 | ||||||||||
6 | 60 | 3,021 | 80 | 21,466 | ||||||||||
7 | 28 | 740 | 31 | 1,349 | ||||||||||
8 | 10 | 321 | 8 | 139 | ||||||||||
9 | 9 | 139 | 9 | 98 | ||||||||||
10 | 12 | 180 | 23 | 380 |
Total Par Value of Outstanding Advances | LCV of Collateral Pledged by Members | First Mortgage Collateral (%) | Securities Collateral (%) | Other Real Estate Related Collateral (%) | |||||||||
As of December 31, 2017 | $ | 102,249 | $ | 330,093 | 67.96 | 5.43 | 24.61 | ||||||
As of December 31, 2016 | 98,288 | 305,884 | 68.29 | 3.77 | 27.94 |
• | 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 of 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 the following: (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 of investment quality; (4) MBS or asset-backed securities that are backed by manufactured housing loans or home equity loans; and (5) certain foreign housing loans that are 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 are at rates equal to their contractual cap on the trade date 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. |
As of December 31, 2017 | |||||||||||||||
Federal Funds Sold | Interest-bearing Deposits | Net Derivative Exposure (1) | Total | ||||||||||||
Australia | $ | 1,920 | $ | — | $ | — | $ | 1,920 | |||||||
Austria | 640 | — | — | 640 | |||||||||||
Canada | 1,250 | — | — | 1,250 | |||||||||||
France | 100 | — | — | 100 | |||||||||||
Germany | 350 | — | — | 350 | |||||||||||
Netherlands | 1,255 | — | — | 1,255 | |||||||||||
Norway | 1,125 | — | — | 1,125 | |||||||||||
Sweden | 750 | — | — | 750 | |||||||||||
Switzerland | — | — | 33 | 33 | |||||||||||
United States of America | 1,990 | 2,176 | — | 4,166 | |||||||||||
Total | $ | 9,380 | $ | 2,176 | $ | 33 | $ | 11,589 |
As of December 31, 2016 | |||||||||||||||
Federal Funds Sold | Interest-bearing Deposits | Net Derivative Exposure (1) | Total | ||||||||||||
Australia | $ | 1,855 | $ | — | $ | — | $ | 1,855 | |||||||
Canada | 350 | — | — | 350 | |||||||||||
France | 1,250 | — | — | 1,250 | |||||||||||
Germany | 1,185 | — | — | 1,185 | |||||||||||
Netherlands | 1,165 | — | — | 1,165 | |||||||||||
Norway | 1,125 | — | — | 1,125 | |||||||||||
Switzerland | — | — | 22 | 22 | |||||||||||
United States of America | 840 | 1,106 | — | 1,946 | |||||||||||
Total | $ | 7,770 | $ | 1,106 | $ | 22 | $ | 8,898 |
As of December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Investment Grade | Below Investment Grade | ||||||||||||||||||||||||||||||||||||||||||||||
AAA | AA | A | BBB | BB | B | CCC | CC | C | D | Unrated | Total | ||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||
State or local housing agency debt obligations | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||||||||||||
Government-sponsored enterprises debt obligations | — | 5,406 | — | — | — | — | — | — | — | — | — | 5,406 | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency obligations-guaranteed residential | — | 157 | — | — | — | — | — | — | — | — | — | 157 | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | — | 9,357 | — | — | — | — | — | — | — | — | — | 9,357 | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises commercial | 577 | 9,152 | — | — | — | — | — | — | — | — | — | 9,729 | |||||||||||||||||||||||||||||||||||
Private-label | — | 1 | 15 | 206 | 261 | 131 | 659 | 56 | 9 | 246 | 88 | 1,672 | |||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 577 | 18,667 | 15 | 206 | 261 | 131 | 659 | 56 | 9 | 246 | 88 | 20,915 | |||||||||||||||||||||||||||||||||||
Total investment securities | 577 | 24,074 | 15 | 206 | 261 | 131 | 659 | 56 | 9 | 246 | 88 | 26,322 | |||||||||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | — | 1,729 | 401 | 46 | — | — | — | — | — | — | — | 2,176 | |||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | — | 1,500 | 1,000 | — | — | — | — | — | — | — | — | 2,500 | |||||||||||||||||||||||||||||||||||
Federal funds sold | — | 2,670 | 5,050 | 1,660 | — | — | — | — | — | — | — | 9,380 | |||||||||||||||||||||||||||||||||||
Total other investments | — | 5,899 | 6,451 | 1,706 | — | — | — | — | — | — | — | 14,056 | |||||||||||||||||||||||||||||||||||
Total investments | $ | 577 | $ | 29,973 | $ | 6,466 | $ | 1,912 | $ | 261 | $ | 131 | $ | 659 | $ | 56 | $ | 9 | $ | 246 | $ | 88 | $ | 40,378 |
(1) | Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $36 million as of December 31, 2017. |
As of December 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Investment Grade | Below Investment Grade | ||||||||||||||||||||||||||||||||||||||||||||||
AAA | AA | A | BBB | BB | B | CCC | CC | C | D | Unrated | Total | ||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||
State or local housing agency debt obligations | $ | — | $ | 77 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 77 | |||||||||||||||||||||||
Government-sponsored enterprises debt obligations | — | 6,302 | — | — | — | — | — | — | — | — | — | 6,302 | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency obligations-guaranteed residential | — | 209 | — | — | — | — | — | — | — | — | — | 209 | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | — | 10,752 | — | — | — | — | — | — | — | — | — | 10,752 | |||||||||||||||||||||||||||||||||||
Government-sponsored enterprises commercial | 463 | 6,310 | — | — | — | — | — | — | — | — | — | 6,773 | |||||||||||||||||||||||||||||||||||
Private-label residential | — | 3 | 20 | 255 | 398 | 172 | 621 | 8 | 91 | 556 | 11 | 2,135 | |||||||||||||||||||||||||||||||||||
Total mortgage-backed securities | 463 | 17,274 | 20 | 255 | 398 | 172 | 621 | 8 | 91 | 556 | 11 | 19,869 | |||||||||||||||||||||||||||||||||||
Total investment securities | 463 | 23,653 | 20 | 255 | 398 | 172 | 621 | 8 | 91 | 556 | 11 | 26,248 | |||||||||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | — | 5 | 1,056 | 45 | — | — | — | — | — | — | — | 1,106 | |||||||||||||||||||||||||||||||||||
Securities purchased under agreements to resell | — | 886 | 500 | — | — | — | — | — | — | — | — | 1,386 | |||||||||||||||||||||||||||||||||||
Federal funds sold | — | 1,855 | 5,165 | 750 | — | — | — | — | — | — | — | 7,770 | |||||||||||||||||||||||||||||||||||
Total other investments | — | 2,746 | 6,721 | 795 | — | — | — | — | — | — | — | 10,262 | |||||||||||||||||||||||||||||||||||
Total investments | $ | 463 | $ | 26,399 | $ | 6,741 | $ | 1,050 | $ | 398 | $ | 172 | $ | 621 | $ | 8 | $ | 91 | $ | 556 | $ | 11 | $ | 36,510 |
(1) | Investment amounts noted in the above table represent the carrying value and do not include related accrued interest receivable of $35 million as of December 31, 2016. |
Prime | Alt-A | Total | |||||||||
Investment Ratings: | |||||||||||
AA | $ | 1 | $ | — | $ | 1 | |||||
A | 15 | — | 15 | ||||||||
BBB | 198 | 8 | 206 | ||||||||
BB | 250 | 11 | 261 | ||||||||
B | 99 | 32 | 131 | ||||||||
CCC | 642 | 92 | 734 | ||||||||
CC | 36 | 25 | 61 | ||||||||
C | 9 | — | 9 | ||||||||
D | 215 | 60 | 275 | ||||||||
Unrated | 97 | — | 97 | ||||||||
Total unpaid principal balance | $ | 1,562 | $ | 228 | $ | 1,790 | |||||
Amortized cost | $ | 1,354 | $ | 184 | $ | 1,538 | |||||
Gross unrealized losses | $ | (1 | ) | $ | — | $ | (1 | ) | |||
Fair value | $ | 1,483 | $ | 197 | $ | 1,680 | |||||
Other-than-temporary impairment (Year-to-date): | |||||||||||
Total other-than-temporary impairment losses | $ | — | $ | — | $ | — | |||||
Net amount of impairment losses reclassified from accumulated other comprehensive income | (2 | ) | — | (2 | ) | ||||||
Net impairment losses recognized in earnings | $ | (2 | ) | $ | — | $ | (2 | ) | |||
Weighted average percentage of fair value to unpaid principal balance | 94.95 | % | 86.11 | % | 93.82 | % | |||||
Original weighted average credit support | 9.32 | % | 24.44 | % | 11.25 | % | |||||
Weighted average credit support | 5.54 | % | 10.59 | % | 6.19 | % | |||||
Weighted average collateral delinquency | 11.55 | % | 16.67 | % | 12.21 | % |
Significant Inputs - Weighted Average (%) | ||||||||
Classification of Securities (1) | Prepayment Rate | Default Rates | Loss Severities | Current Credit Enhancement (%) | ||||
Prime | 15.98 | 5.52 | 23.34 | 8.31 | ||||
Alt-A | 13.67 | 21.05 | 36.43 | 3.97 | ||||
Total | 14.87 | 13.00 | 29.64 | 6.22 |
As of December 31, 2017 | ||||||||||||||||
Notional Amount | Net Derivatives Fair Value Before Collateral | Cash Collateral Pledged To (From) Counterparty | Net Credit Exposure to Counterparties | |||||||||||||
Non-member counterparties: | ||||||||||||||||
Asset positions with credit exposure: | ||||||||||||||||
Cleared derivatives | $ | 3,625 | $ | 33 | $ | (9 | ) | $ | 24 | |||||||
Liability positions with credit exposure: | ||||||||||||||||
Double-A | 500 | — | — | — | ||||||||||||
Single-A | 5,689 | (21 | ) | 22 | 1 | |||||||||||
Triple-B | 6,699 | (4 | ) | 4 | — | |||||||||||
Cleared derivatives | 28,843 | (106 | ) | 415 | 309 | |||||||||||
Total derivative positions with non-member counterparties to which the Bank had credit exposure | 45,356 | (98 | ) | 432 | 334 | |||||||||||
Member institutions (1) | 3 | — | — | — | ||||||||||||
Total | $ | 45,359 | $ | (98 | ) | $ | 432 | $ | 334 |
As of December 31, 2016 | ||||||||||||||||
Notional Amount | Net Derivatives Fair Value Before Collateral | Cash Collateral Pledged To (From) Counterparty | Net Credit Exposure to Counterparties | |||||||||||||
Non-member counterparties: | ||||||||||||||||
Asset positions with credit exposure: | ||||||||||||||||
Double-A | $ | 12 | $ | — | $ | — | $ | — | ||||||||
Cleared derivatives | 944 | 22 | (13 | ) | 9 | |||||||||||
Liability positions with credit exposure: | ||||||||||||||||
Single-A | 125 | — | — | — | ||||||||||||
Cleared derivatives | 49,771 | (512 | ) | 858 | 346 | |||||||||||
Total derivative positions with non-member counterparties to which the Bank had credit exposure | 50,852 | (490 | ) | 845 | 355 | |||||||||||
Member institutions (1) | 3 | — | — | — | ||||||||||||
Total | $ | 50,855 | $ | (490 | ) | $ | 845 | $ | 355 |
• | competition for advances from traditional and nontraditional sources; and |
• | legislative and regulatory changes that could affect the Bank’s cost of doing business or alter the Bank’s business model. |
• | the cost of the Bank’s funds and operating overhead increases; |
• | the yield on variable-rate assets held by the Bank increases; |
• | the fair value of fixed-rate investments and mortgage loans held in portfolio decreases; and |
• | mortgage loan prepayment rates decrease and result in lower levels of mortgage loan refinance activity, which may result in the reduction of Bank advances to members as increased rates tend to slow home sales. |
As of December 31, | |||||||
2017 | 2016 | ||||||
Assets | |||||||
Cash and due from banks | $ | $ | |||||
Interest-bearing deposits (including deposits with another FHLBank of $22 and $5 as of December 31, 2017 and 2016, respectively) | |||||||
Securities purchased under agreements to resell | |||||||
Federal funds sold | |||||||
Investment securities: | |||||||
Trading securities | |||||||
Available-for-sale securities | |||||||
Held-to-maturity securities (fair value of $25,219 and $24,633 as of December 31, 2017 and 2016, respectively) | |||||||
Total investment securities | |||||||
Advances | |||||||
Mortgage loans held for portfolio, net: | |||||||
Mortgage loans held for portfolio | |||||||
Allowance for credit losses on mortgage loans | ( | ) | ( | ) | |||
Total mortgage loans held for portfolio, net | |||||||
Loan to another FHLBank | |||||||
Accrued interest receivable | |||||||
Derivative assets | |||||||
Premises and equipment, net | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities | |||||||
Interest-bearing deposits | $ | $ | |||||
Consolidated obligations, net: | |||||||
Discount notes | |||||||
Bonds | |||||||
Total consolidated obligations, net | |||||||
Mandatorily redeemable capital stock | |||||||
Accrued interest payable | |||||||
Affordable Housing Program payable | |||||||
Derivative liabilities | |||||||
Other liabilities | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 19) | |||||||
Capital | |||||||
Capital stock Class B putable ($100 par value) issued and outstanding shares: | |||||||
Subclass B1 issued and outstanding shares: 8 as of December 31, 2017 and 2016 | |||||||
Subclass B2 issued and outstanding shares: 44 and 42 as of December 31, 2017 and 2016, respectively | |||||||
Total capital stock Class B putable | |||||||
Retained earnings: | |||||||
Restricted | |||||||
Unrestricted | |||||||
Total retained earnings | |||||||
Accumulated other comprehensive income | |||||||
Total capital | |||||||
Total liabilities and capital | $ | $ |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Interest income | |||||||||||
Advances | $ | $ | $ | ||||||||
Prepayment fees, net | |||||||||||
Interest-bearing deposits | |||||||||||
Securities purchased under agreements to resell | |||||||||||
Federal funds sold | |||||||||||
Trading securities | |||||||||||
Available-for-sale securities | |||||||||||
Held-to-maturity securities | |||||||||||
Mortgage loans | |||||||||||
Total interest income | |||||||||||
Interest expense | |||||||||||
Consolidated obligations: | |||||||||||
Discount notes | |||||||||||
Bonds | |||||||||||
Interest-bearing deposits | |||||||||||
Mandatorily redeemable capital stock | |||||||||||
Total interest expense | |||||||||||
Net interest income | |||||||||||
Reversal of provision for credit losses | ( | ) | ( | ) | |||||||
Net interest income after reversal of provision for credit losses | |||||||||||
Noninterest income (loss) | |||||||||||
Total other-than-temporary impairment losses | ( | ) | |||||||||
Net amount of impairment losses reclassified from accumulated other comprehensive income | ( | ) | ( | ) | ( | ) | |||||
Net impairment losses recognized in earnings | ( | ) | ( | ) | ( | ) | |||||
Net losses on trading securities | ( | ) | ( | ) | ( | ) | |||||
Net gains on derivatives and hedging activities | |||||||||||
Standby letters of credit fees | |||||||||||
Loss on litigation settlements, net | ( | ) | |||||||||
Other | |||||||||||
Total noninterest income | |||||||||||
Noninterest expense | |||||||||||
Compensation and benefits | |||||||||||
Other operating expenses | |||||||||||
Finance Agency | |||||||||||
Office of Finance | |||||||||||
Other | |||||||||||
Total noninterest expense | |||||||||||
Income before assessments | |||||||||||
Affordable Housing Program assessments | |||||||||||
Net income | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net income | $ | $ | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities: | |||||||||||
Noncredit losses on available-for-sale securities | ( | ) | |||||||||
Net change in fair value on other-than-temporarily impaired available-for-sale securities | ( | ) | |||||||||
Reclassification of noncredit portion of impairment losses included in net income | |||||||||||
Total net noncredit portion of other-than-temporary impairment losses on available-for-sale securities | ( | ) | |||||||||
Pension and postretirement benefit plans | ( | ) | |||||||||
Total other comprehensive income (loss) | ( | ) | |||||||||
Total comprehensive income | $ | $ | $ |
Capital Stock Class B Putable | Retained Earnings | Accumulated Other Comprehensive Income | Total Capital | |||||||||||||||||||||||
Shares | Par Value | Restricted | Unrestricted | Total | ||||||||||||||||||||||
Balance, December 31, 2014 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Issuance of capital stock | — | — | — | — | ||||||||||||||||||||||
Repurchase/redemption of capital stock | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||
Net shares reclassified to mandatorily redeemable capital stock | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||
Comprehensive income (loss) | — | — | ( | ) | ||||||||||||||||||||||
Cash dividends on capital stock | — | — | — | ( | ) | ( | ) | — | ( | ) | ||||||||||||||||
Balance, December 31, 2015 | ||||||||||||||||||||||||||
Issuance of capital stock | — | — | — | — | ||||||||||||||||||||||
Repurchase/redemption of capital stock | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||
Net shares reclassified to mandatorily redeemable capital stock | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||
Comprehensive income | — | — | ||||||||||||||||||||||||
Cash dividends on capital stock | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||
Balance, December 31, 2016 | ||||||||||||||||||||||||||
Issuance of capital stock | — | — | — | — | ||||||||||||||||||||||
Repurchase/redemption of capital stock | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||
Net shares reclassified to mandatorily redeemable capital stock | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||
Comprehensive income | — | — | ||||||||||||||||||||||||
Cash dividends on capital stock | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | $ | $ | $ |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operating activities | |||||||||||
Net income | $ | $ | $ | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | ( | ) | ( | ) | ( | ) | |||||
Reversal of provision for credit losses | ( | ) | ( | ) | |||||||
Net change in fair value adjustment on derivative and hedging activities | |||||||||||
Net change in fair value adjustment on trading securities | |||||||||||
Net impairment losses recognized in earnings | |||||||||||
Net change in: | |||||||||||
Accrued interest receivable | ( | ) | ( | ) | |||||||
Other assets | ( | ) | |||||||||
Affordable Housing Program payable | ( | ) | |||||||||
Accrued interest payable | ( | ) | |||||||||
Other liabilities | ( | ) | ( | ) | |||||||
Total adjustments | ( | ) | ( | ) | |||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Net change in: | |||||||||||
Interest-bearing deposits | ( | ) | |||||||||
Securities purchased under agreements to resell | ( | ) | ( | ) | |||||||
Federal funds sold | ( | ) | ( | ) | |||||||
Loan to another FHLBank | ( | ) | |||||||||
Trading securities: | |||||||||||
Proceeds from principal collected | |||||||||||
Purchases of long-term | ( | ) | |||||||||
Available-for-sale securities: | |||||||||||
Proceeds from principal collected | |||||||||||
Held-to-maturity securities: | |||||||||||
Proceeds from principal collected | |||||||||||
Purchases of long-term | ( | ) | ( | ) | ( | ) | |||||
Advances: | |||||||||||
Proceeds from principal collected | |||||||||||
Made | ( | ) | ( | ) | ( | ) | |||||
Mortgage loans: | |||||||||||
Proceeds from principal collected | |||||||||||
Purchases from another FHLBank | ( | ) | ( | ) | |||||||
Proceeds from sale of foreclosed assets | |||||||||||
Purchases of premises, equipment, and software | ( | ) | ( | ) | ( | ) | |||||
Net cash (used in) provided by investing activities | ( | ) | ( | ) | |||||||
FEDERAL HOME LOAN BANK OF ATLANTA STATEMENTS OF CASH FLOWS—(Continued) (In millions) | |||||||||||
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Financing activities | |||||||||||
Net change in interest-bearing deposits | ( | ) | |||||||||
Net payments on derivatives containing a financing element | ( | ) | ( | ) | ( | ) | |||||
Proceeds from issuance of consolidated obligations: | |||||||||||
Discount notes | |||||||||||
Bonds | |||||||||||
Payments for debt issuance costs | ( | ) | ( | ) | ( | ) | |||||
Payments for maturing and retiring consolidated obligations: | |||||||||||
Discount notes | ( | ) | ( | ) | ( | ) | |||||
Bonds | ( | ) | ( | ) | ( | ) | |||||
Proceeds from issuance of capital stock | |||||||||||
Payments for repurchase/redemption of capital stock | ( | ) | ( | ) | ( | ) | |||||
Payments for repurchase/redemption of mandatorily redeemable capital stock | ( | ) | ( | ) | ( | ) | |||||
Cash dividends paid | ( | ) | ( | ) | ( | ) | |||||
Net cash provided by (used in) financing activities | ( | ) | |||||||||
Net increase in cash and due from banks | |||||||||||
Cash and due from banks at beginning of the year | |||||||||||
Cash and due from banks at end of the year | $ | $ | $ | ||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | $ | ||||||||
Affordable Housing Program assessments, net | $ | $ | $ | ||||||||
Noncash investing and financing activities: | |||||||||||
Net shares reclassified to mandatorily redeemable capital stock | $ | $ | $ | ||||||||
Held-to-maturity securities acquired with accrued liabilities | $ | $ | $ | ||||||||
Transfers of mortgage loans to real estate owned | $ | $ | $ |
• | the Bank has an intent to sell the impaired debt security; |
• | if, based on available evidence, the Bank believes it is more likely than not that it will be required to sell the impaired debt security before the recovery of its amortized cost basis; or |
• | the Bank does not expect to recover the entire amortized cost basis of the impaired debt security. |
As of December 31, | |||||||
2017 | 2016 | ||||||
Government-sponsored enterprises debt obligations | $ | $ | |||||
State or local housing agency debt obligations | |||||||
Total | $ | $ |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net gains (losses) on trading securities held at year end | $ | $ | ( | ) | $ | ( | ) | ||||
Net losses on trading securities that matured during the year | ( | ) | ( | ) | |||||||
Net losses on trading securities | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Amortized Cost | Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income (1) | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||
As of December 31, 2017 | $ | $ | $ | $ | $ | ||||||||||||||
As of December 31, 2016 | $ | $ | $ | $ | $ |
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 December 31, 2017 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
As of December 31, 2016 | $ | $ | $ | $ | $ | $ |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Variable-rate | $ | $ | ||||||
Fixed-rate | ||||||||
Total amortized cost | $ | $ |
Amortized Cost | Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||
As of December 31, 2017 | $ | $ | $ | $ | $ | ||||||||||||||
As of December 31, 2016 | $ | $ | $ | $ | $ |
As of December 31, | |||||||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Government-sponsored enterprises debt obligations | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||
U.S. agency obligations-guaranteed residential | |||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | |||||||||||||||||||||||||||||||
Government-sponsored enterprises commercial | |||||||||||||||||||||||||||||||
Private-label residential | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
As of December 31, 2017 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
State or local housing agency debt obligations | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises commercial | ||||||||||||||||||||||||||||||||
Private-label residential | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
As of December 31, 2016 | ||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises residential | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises commercial | ||||||||||||||||||||||||||||||||
Private-label residential | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
As of December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Non-mortgage-backed securities: | |||||||||||||||
Due in one year or less | $ | $ | $ | $ | |||||||||||
Due after one year through five years | |||||||||||||||
Due after five years through 10 years | |||||||||||||||
Due after 10 years | |||||||||||||||
Total non-mortgage-backed securities | |||||||||||||||
Mortgage-backed securities | |||||||||||||||
Total | $ | $ | $ | $ |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Non-mortgage-backed securities: | ||||||||
Fixed-rate | $ | $ | ||||||
Variable-rate | ||||||||
Total non-mortgage-backed securities | ||||||||
Mortgage-backed securities: | ||||||||
Fixed-rate | ||||||||
Variable-rate | ||||||||
Total mortgage-backed securities | ||||||||
Total amortized cost | $ | $ |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
As of December 31, 2017 | $ | $ | $ | $ | |||||||||||
As of December 31, 2016 | $ | $ | $ | $ |
Significant Inputs - Weighted Average (%) (1) | ||||||||
Classification of Securities | Prepayment Rates | Default Rates | Loss Severities | Current Credit Enhancement (%) | ||||
Prime | ||||||||
Alt-A | ||||||||
Total |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | |||||||||||
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities) | ( | ) | ( | ) | ( | ) | |||||
Balance, end of year | $ | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Due in one year or less | $ | $ | |||||
Due after one year through two years | |||||||
Due after two years through three years | |||||||
Due after three years through four years | |||||||
Due after four years through five years | |||||||
Due after five years | |||||||
Total par value | |||||||
Discount on AHP advances | ( | ) | ( | ) | |||
Discount on EDGE advances | ( | ) | ( | ) | |||
Hedging adjustments | |||||||
Total | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Due or callable in one year or less | $ | $ | |||||
Due or callable after one year through two years | |||||||
Due or callable after two years through three years | |||||||
Due or callable after three years through four years | |||||||
Due or callable after four years through five years | |||||||
Due or callable after five years | |||||||
Total par value | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Due or convertible in one year or less | $ | $ | |||||
Due or convertible after one year through two years | |||||||
Due or convertible after two years through three years | |||||||
Due or convertible after three years through four years | |||||||
Due or convertible after four years through five years | |||||||
Due or convertible after five years | |||||||
Total par value | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Fixed-rate: | |||||||
Due in one year or less | $ | $ | |||||
Due after one year | |||||||
Total fixed-rate | |||||||
Variable-rate: | |||||||
Due in one year or less | |||||||
Due after one year | |||||||
Total variable-rate | |||||||
Total par value | $ | $ |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Medium-term (15 years or less) | $ | $ | ||||||
Long-term (greater than 15 years) | ||||||||
Total unpaid principal balance | ||||||||
Premiums | ||||||||
Discounts | ( | ) | ( | ) | ||||
Total | $ | $ |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Conventional mortgage loans | $ | $ | ||||||
Government-guaranteed or insured mortgage loans | ||||||||
Total unpaid principal balance | $ | $ |
For the Years Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Balance, beginning of year | $ | $ | $ | |||||||||
Reversal of provision for credit losses | ( | ) | ( | ) | ||||||||
Balance, end of year | $ | $ | $ |
As of December 31, | ||||||||
2017 | 2016 | |||||||
Allowance for credit losses: | ||||||||
Collectively evaluated for impairment | $ | $ | ||||||
Recorded investment: | ||||||||
Individually evaluated for impairment | $ | $ | ||||||
Collectively evaluated for impairment | ||||||||
Total recorded investment | $ | $ |
As of December 31, 2017 | |||||||||||
Conventional Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Total | |||||||||
Past due 30-59 days | $ | $ | $ | ||||||||
Past due 60-89 days | |||||||||||
Past due 90 days or more | |||||||||||
Total past due mortgage loans | |||||||||||
Total current mortgage loans | |||||||||||
Total mortgage loans (1) | $ | $ | $ | ||||||||
Other delinquency statistics: | |||||||||||
In process of foreclosure (2) | $ | $ | $ | ||||||||
Seriously delinquent rate (3) | % | % | % | ||||||||
Past due 90 days or more and still accruing interest (4) | $ | $ | $ | ||||||||
Mortgage loans on nonaccrual status (5) | $ | $ | $ |
As of December 31, 2016 | |||||||||||
Conventional Residential Mortgage Loans | Government-guaranteed or Insured Residential Mortgage Loans | Total | |||||||||
Past due 30-59 days | $ | $ | $ | ||||||||
Past due 60-89 days | |||||||||||
Past due 90 days or more | |||||||||||
Total past due mortgage loans | |||||||||||
Total current mortgage loans | |||||||||||
Total mortgage loans (1) | $ | $ | $ | ||||||||
Other delinquency statistics: | |||||||||||
In process of foreclosure (2) | $ | $ | $ | ||||||||
Seriously delinquent rate (3) | % | % | % | ||||||||
Past due 90 days or more and still accruing interest (4) | $ | $ | $ | ||||||||
Mortgage loans on nonaccrual status (5) | $ | $ | $ |
As of December 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Performing | Non-performing | Total | Performing | Non-performing | Total | |||||||||||||||||||
Conventional residential mortgage loans | $ | $ | $ | $ | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Fixed-rate | $ | $ | |||||
Step up/down | |||||||
Simple variable-rate | |||||||
Total par value | $ | $ |
As of December 31, | |||||||||||
2017 | 2016 | ||||||||||
Amount | Weighted- average Interest Rate (%) | Amount | Weighted- average Interest Rate (%) | ||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through two years | |||||||||||
Due after two years through three years | |||||||||||
Due after three years through four years | |||||||||||
Due after four years through five years | |||||||||||
Due after five years | |||||||||||
Total par value | |||||||||||
Premiums | |||||||||||
Discounts | ( | ) | ( | ) | |||||||
Hedging adjustments | ( | ) | |||||||||
Total | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Noncallable | $ | $ | |||||
Callable | |||||||
Total par value | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Due or callable in one year or less | $ | $ | |||||
Due or callable after one year through two years | |||||||
Due or callable after two years through three years | |||||||
Due or callable after three years through four years | |||||||
Due or callable after four years through five years | |||||||
Due or callable after five years | |||||||
Total par value | $ | $ |
Book Value | Par Value | Weighted-average Interest Rate (%) | |||||||
As of December 31, 2017 | $ | $ | |||||||
As of December 31, 2016 | $ | $ |
For the Years Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Balance, beginning of year | $ | $ | $ | |||||||||
AHP assessments | ||||||||||||
Subsidy usage, net | ( | ) | ( | ) | ( | ) | ||||||
Balance, end of year | $ | $ | $ |
As of December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Required | Actual | Required | Actual | ||||||||||||
Risk-based capital | $ | $ | $ | $ | |||||||||||
Total regulatory capital ratio | % | % | % | % | |||||||||||
Total regulatory capital | $ | $ | $ | $ | |||||||||||
Leverage capital ratio | % | % | % | % | |||||||||||
Leverage capital | $ | $ | $ | $ |
• |
• |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Net reclassification from capital during the year | |||||||||||
Repurchase/redemption of mandatorily redeemable capital stock | ( | ) | ( | ) | ( | ) | |||||
Balance, end of year | $ | $ | $ |
As of December 31, | |||||||
2017 | 2016 | ||||||
Due in one year or less | $ | $ | |||||
Due after three years through four years | |||||||
Total | $ | $ |
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, 2014 | $ | ( | ) | $ | $ | ||||||
Other comprehensive income before reclassifications: | |||||||||||
Net change in fair value | ( | ) | ( | ) | |||||||
Actuarial gain | |||||||||||
Reclassification from accumulated other comprehensive income to net income: | |||||||||||
Noncredit other-than-temporary impairment losses | |||||||||||
Amortization of pension and postretirement (1) | |||||||||||
Net current period other comprehensive income (loss) | ( | ) | ( | ) | |||||||
Balance, December 31, 2015 | ( | ) | |||||||||
Other comprehensive income before reclassifications: | |||||||||||
Noncredit other-than-temporary impairment losses | ( | ) | ( | ) | |||||||
Net change in fair value | |||||||||||
Actuarial loss | ( | ) | ( | ) | |||||||
Reclassification from accumulated other comprehensive income to net income: | |||||||||||
Noncredit other-than-temporary impairment losses | |||||||||||
Amortization of pension and postretirement (1) | |||||||||||
Net current period other comprehensive income | |||||||||||
Balance, December 31, 2016 | ( | ) | |||||||||
Other comprehensive income before reclassifications: | |||||||||||
Net change in fair value | |||||||||||
Actuarial loss | ( | ) | ( | ) | |||||||
Prior service cost | ( | ) | ( | ) | |||||||
Reclassification from accumulated other comprehensive income to net income: | |||||||||||
Noncredit other-than-temporary impairment losses | |||||||||||
Amortization of pension and postretirement (1) | |||||||||||
Net current period other comprehensive (loss) income | ( | ) | |||||||||
Balance, December 31, 2017 | $ | ( | ) | $ | $ |
2017 | 2016 | 2015 | ||||||||||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $ | $ | $ | |||||||||
Pentegra Plan funded status as of July 1(1) | % | % | % | |||||||||
Bank’s funded status as of the plan year end | % | % | % |
• | preserve a favorable interest-rate spread between the yield of an asset (e.g., an advance) and the cost of the related liability (e.g., the consolidated obligation bond used to fund the advance) by converting both fixed-rate instruments to a variable rate using interest-rate swaps; |
• | reduce funding costs by combining a derivative with a consolidated obligation because the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation bond; |
• | reduce the interest-rate sensitivity and repricing gaps of assets and liabilities; |
• | mitigate the adverse earnings effects from the shortening or lengthening of certain assets (e.g., mortgage assets); |
• | protect the value of existing asset or liability positions; |
• | manage embedded options in assets and liabilities; and |
• | achieve overall asset/liability management objectives. |
As of December 31, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Notional Amount of Derivatives | Derivative Assets | Derivative Liabilities | Notional Amount of Derivatives | Derivative Assets | Derivative Liabilities | ||||||||||||||||||
Derivatives in hedging relationships: | |||||||||||||||||||||||
Interest-rate swaps (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest-rate swaps (1) | |||||||||||||||||||||||
Interest-rate caps or floors | |||||||||||||||||||||||
Mortgage delivery commitments | |||||||||||||||||||||||
Total derivatives not designated as hedging instruments | |||||||||||||||||||||||
Total derivatives before netting and collateral adjustments | $ | $ | |||||||||||||||||||||
Netting adjustments and cash collateral (2) | ( | ) | ( | ) | |||||||||||||||||||
Derivative assets and derivative liabilities | $ | $ | $ | $ |
(1) |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Derivatives and hedged items in fair value hedging relationships: | |||||||||||
Interest-rate swaps | $ | $ | $ | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Interest-rate swaps | |||||||||||
Interest-rate caps or floors | ( | ) | ( | ) | ( | ) | |||||
Net interest settlements | ( | ) | ( | ) | ( | ) | |||||
Total net losses related to derivatives not designated as hedging instruments | ( | ) | ( | ) | ( | ) | |||||
Other (1) | |||||||||||
Net gains on derivatives and hedging activities | $ | $ | $ |
For the Year Ended December 31, 2017 | ||||||||||||||||
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) | ||||||||||||
Advances | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Consolidated obligations: | ||||||||||||||||
Bonds | ( | ) | ||||||||||||||
Discount notes | ( | ) | ( | ) | ||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. |
For the Year Ended December 31, 2016 | ||||||||||||||||
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) | ||||||||||||
Advances | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Consolidated obligations: | ||||||||||||||||
Bonds | ( | ) | ( | ) | ||||||||||||
Discount notes | ( | ) | ( | ) | ( | ) | ||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
(1) | The net interest on derivatives in fair value hedge relationships is presented in the interest income or expense line item of the respective hedged item. |
For the Year Ended December 31, 2015 | ||||||||||||||||
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) | ||||||||||||
Advances | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Consolidated obligations: | ||||||||||||||||
Bonds | ( | ) | ( | ) | ||||||||||||
Discount notes | ( | ) | ||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
(1) |
As of December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||
Gross recognized amount: | |||||||||||||||
Uncleared derivatives | $ | $ | $ | $ | |||||||||||
Cleared derivatives | |||||||||||||||
Total gross recognized amount | |||||||||||||||
Gross amounts of netting adjustments and cash collateral: | |||||||||||||||
Uncleared derivatives | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Cleared derivatives | ( | ) | ( | ) | |||||||||||
Total gross amounts of netting adjustments and cash collateral: | ( | ) | ( | ) | |||||||||||
Net amounts after netting adjustments and cash collateral: | |||||||||||||||
Uncleared derivatives | |||||||||||||||
Cleared derivatives | |||||||||||||||
Total net amounts after netting adjustments and cash collateral | |||||||||||||||
Non-cash collateral received or pledged not offset- cannot be sold or repledged: (1) | |||||||||||||||
Uncleared derivatives | |||||||||||||||
Cleared derivatives | |||||||||||||||
Total cannot be sold or repledged (1) | |||||||||||||||
Net unsecured amounts: (1) | |||||||||||||||
Uncleared derivatives | |||||||||||||||
Cleared derivatives | |||||||||||||||
Total net unsecured amount (1) | $ | $ | $ | $ |
(1) |
As of December 31, 2017 | |||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments and Cash Collateral (1) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | |||||||||||||||||||
Trading securities: | |||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | $ | $ | $ | $ | ||||||||||||||
Available-for-sale securities: | |||||||||||||||||||
Private-label residential MBS | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Interest-rate related | |||||||||||||||||||
Grantor trust (included in Other assets) | |||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest-rate related | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | ( | ) | $ |
As of December 31, 2016 | |||||||||||||||||||
Fair Value Measurements Using | Netting Adjustments and Cash Collateral (1) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | |||||||||||||||||||
Trading securities: | |||||||||||||||||||
Government-sponsored enterprises debt obligations | $ | $ | $ | $ | $ | ||||||||||||||
State or local housing agency debt obligations | |||||||||||||||||||
Total trading securities | |||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||
Private-label residential MBS | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Interest-rate related | |||||||||||||||||||
Grantor trust (included in Other assets) | |||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||
Interest-rate related | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Total liabilities at fair value | $ | $ | $ | $ | ( | ) | $ |
For the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Balance, beginning of year | $ | $ | $ | ||||||||
Total (losses) gains realized and unrealized: (1) | |||||||||||
Included in net impairment losses recognized in earnings | ( | ) | ( | ) | ( | ) | |||||
Included in other comprehensive income | ( | ) | |||||||||
Accretion of credit losses in net interest income | |||||||||||
Settlements | ( | ) | ( | ) | ( | ) | |||||
Balance, end of year | $ | $ | $ |
(1) |
• | Interest-rate related - the Overnight Index Swap curve for collateralized derivatives; and |
• | Mortgage delivery commitments - to be announced (TBA) securities prices adjusted for differences in coupon, average loan rate, and seasoning. |
As of December 31, 2017 | |||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral (1) | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | $ | — | ||||||||||||||||
Interest bearing-deposits | — | ||||||||||||||||||||||
Securities purchased under agreements to resell | — | ||||||||||||||||||||||
Federal funds sold | — | ||||||||||||||||||||||
Trading securities | — | ||||||||||||||||||||||
Available-for-sale securities | — | ||||||||||||||||||||||
Held-to-maturity securities | — | ||||||||||||||||||||||
Advances | — | ||||||||||||||||||||||
Mortgage loans held for portfolio, net | — | ||||||||||||||||||||||
Loan to another FHLBank | — | ||||||||||||||||||||||
Accrued interest receivable | — | ||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Grantor trust assets (included in Other assets) | — | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing deposits | — | ||||||||||||||||||||||
Consolidated obligations, net: | |||||||||||||||||||||||
Discount notes | — | ||||||||||||||||||||||
Bonds | — | ||||||||||||||||||||||
Mandatorily redeemable capital stock | — | ||||||||||||||||||||||
Accrued interest payable | — | ||||||||||||||||||||||
Derivative liabilities | ( | ) |
(1) | Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. |
As of December 31, 2016 | |||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Netting Adjustments and Cash Collateral (1) | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | $ | — | ||||||||||||||||
Interest bearing-deposits | — | ||||||||||||||||||||||
Securities purchased under agreements to resell | — | ||||||||||||||||||||||
Federal funds sold | — | ||||||||||||||||||||||
Trading securities | — | ||||||||||||||||||||||
Available-for-sale securities | — | ||||||||||||||||||||||
Held-to-maturity securities | — | ||||||||||||||||||||||
Advances | — | ||||||||||||||||||||||
Mortgage loans held for portfolio, net | — | ||||||||||||||||||||||
Accrued interest receivable | — | ||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Grantor trust assets (included in Other assets) | — | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing deposits | — | ||||||||||||||||||||||
Consolidated obligations, net: | |||||||||||||||||||||||
Discount notes | — | ||||||||||||||||||||||
Bonds | — | ||||||||||||||||||||||
Mandatorily redeemable capital stock | — | ||||||||||||||||||||||
Accrued interest payable | — | ||||||||||||||||||||||
Derivative liabilities | ( | ) |
(1) |
As of December 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Expire Within One Year | Expire After One Year | Total | Expire Within One Year | Expire After One Year | Total | |||||||||||||||||||
Standby letters of credit (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commitments to fund additional advances | ||||||||||||||||||||||||
Unsettled consolidated obligation bonds, at par (2) | ||||||||||||||||||||||||
Commitments to purchase mortgage loans |
(1) |
(2) |
As of December 31, 2017 | |||||||||||||||||
Regulatory Capital Stock Outstanding | Percent of Total Regulatory Capital Stock Outstanding | Par Value of Advances | Percent of Total Par Value of Advances | Interest-bearing Deposits | Percent of Total Interest-bearing Deposits | ||||||||||||
Bank of America, National Association | $ | $ | $ | ||||||||||||||
Navy Federal Credit Union |
As of December 31, 2016 | |||||||||||||||||
Regulatory Capital Stock Outstanding | Percent of Total Regulatory Capital Stock Outstanding | Par Value of Advances | Percent of Total Par Value of Advances | Interest-bearing Deposits | Percent of Total Interest-bearing Deposits | ||||||||||||
Capital One, National Association | $ | $ | $ | ||||||||||||||
Navy Federal Credit Union | |||||||||||||||||
Bank of America, National Association |
For the Years Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Investing activities: | ||||||||||||
Loans made to other FHLBanks | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Principal collected on loans made to other FHLBanks | ||||||||||||
Net change in loans made to other FHLBanks | $ | ( | ) | $ | $ | |||||||
Financing activities: | ||||||||||||
Proceeds from short-term borrowings from other FHLBanks | $ | $ | $ | |||||||||
Payments of short-term borrowings from other FHLBanks | ( | ) | ( | ) | ||||||||
Net change in borrowings from other FHLBanks | $ | $ | $ |
For the Year Ended December 31, 2017 | |||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Total | |||||||||||||||
Interest income | $ | 534 | $ | 497 | $ | 421 | $ | 67 | $ | 1,519 | |||||||||
Interest expense | 412 | 374 | 307 | 269 | 1,362 | ||||||||||||||
Net interest income (expense) | 122 | 123 | 114 | (202 | ) | 157 | |||||||||||||
Noninterest income | 18 | 18 | 12 | 319 | 367 | ||||||||||||||
Noninterest expense | 36 | 36 | 30 | 34 | 136 | ||||||||||||||
Affordable Housing Program assessments | 11 | 10 | 10 | 8 | 39 | ||||||||||||||
Net income | $ | 93 | $ | 95 | $ | 86 | $ | 75 | $ | 349 | |||||||||
For the Year Ended December 31, 2016 | |||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Total | |||||||||||||||
Interest income | $ | 290 | $ | 292 | $ | 266 | $ | 258 | $ | 1,106 | |||||||||
Interest expense | 222 | 199 | 186 | 165 | 772 | ||||||||||||||
Net interest income | 68 | 93 | 80 | 93 | 334 | ||||||||||||||
Reversal of provision for credit losses | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Noninterest income (loss) | 69 | 28 | 17 | (3 | ) | 111 | |||||||||||||
Noninterest expense | 38 | 34 | 31 | 34 | 137 | ||||||||||||||
Affordable Housing Program assessments | 10 | 9 | 6 | 6 | 31 | ||||||||||||||
Net income | $ | 89 | $ | 79 | $ | 60 | $ | 50 | $ | 278 |
As of December 31, | ||||||||||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||||||||||
Due in one year or less | Due after one year through five years | Due after five through 10 years | Due after 10 years | Total | ||||||||||||||||||||||||
Interest-bearing deposits | $ | 2,176 | $ | — | $ | — | $ | — | $ | 2,176 | $ | 1,106 | $ | 1,088 | ||||||||||||||
Securities purchased under agreements to resell | 2,500 | — | — | — | 2,500 | 1,386 | 2,500 | |||||||||||||||||||||
Federal funds sold | 9,380 | — | — | — | 9,380 | 7,770 | 5,421 | |||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||
Government-sponsored enterprises debt obligations | — | — | 56 | — | 56 | 261 | 1,212 | |||||||||||||||||||||
Another FHLBank’s bond | — | — | — | — | — | — | 52 | |||||||||||||||||||||
State and local housing agency debt obligations | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||
Total trading securities | — | — | 56 | — | 56 | 262 | 1,265 | |||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||
Private-label residential MBS | — | 1 | — | 1,103 | 1,104 | 1,345 | 1,662 | |||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||
State and local housing agency debt obligations | — | — | 1 | — | 1 | 76 | 76 | |||||||||||||||||||||
Government-sponsored enterprises debt obligations | 2,912 | 1,973 | 405 | 60 | 5,350 | 6,041 | 5,693 | |||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||
U.S. agency obligations- guaranteed residential | — | — | 6 | 151 | 157 | 209 | 279 | |||||||||||||||||||||
Government-sponsored enterprises residential | 2 | 25 | 538 | 8,792 | 9,357 | 10,752 | 11,958 | |||||||||||||||||||||
Government-sponsored enterprises commercial | — | 1,507 | 7,812 | 410 | 9,729 | 6,773 | 4,140 | |||||||||||||||||||||
Private-label residential | 7 | 5 | — | 556 | 568 | 790 | 1,093 | |||||||||||||||||||||
Total held-to-maturity securities | 2,921 | 3,510 | 8,762 | 9,969 | 25,162 | 24,641 | 23,239 | |||||||||||||||||||||
Total investment securities | 2,921 | 3,511 | 8,818 | 11,072 | 26,322 | 26,248 | 26,166 | |||||||||||||||||||||
Total investments | $ | 16,977 | $ | 3,511 | $ | 8,818 | $ | 11,072 | $ | 40,378 | $ | 36,510 | $ | 35,175 | ||||||||||||||
Yield on trading securities | — | — | 2.64 | % | — | |||||||||||||||||||||||
Yield on available-for-sale securities | — | 5.95 | % | — | 5.34 | % | ||||||||||||||||||||||
Yield on held-to-maturity securities | 1.19 | % | 1.72 | % | 1.45 | % | 2.08 | % | ||||||||||||||||||||
Yield on total investment securities | 1.19 | % | 1.72 | % | 1.45 | % | 2.37 | % |
As of December 31, 2017 | |||||||
Total Carrying Value | Total Fair Value | ||||||
Bank of America Corporation, Charlotte, NC | $ | 866 | $ | 867 |
As of December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Advances | $ | 102,440 | $ | 99,077 | $ | 104,168 | $ | 99,644 | $ | 89,588 | |||||||||
Real estate mortgages | $ | 436 | $ | 524 | $ | 586 | $ | 749 | $ | 929 | |||||||||
Nonaccrual real estate mortgages, unpaid principal balance | $ | 11 | $ | 11 | $ | 18 | $ | 33 | $ | 51 | |||||||||
Real estate mortgages past due 90 days or more and still accruing interest, unpaid principal balance (1) | $ | — | $ | 1 | $ | 3 | $ | 5 | $ | 9 | |||||||||
Troubled debt restructurings, unpaid principal balance (not included above) (2) | $ | 9 | $ | 10 | $ | 13 | $ | 11 | $ | 11 | |||||||||
Interest contractually due during the year | $ | 1 | |||||||||||||||||
Interest actually received during the year | $ | — |
For the Years Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 1 | $ | 2 | $ | 3 | $ | 11 | $ | 11 | |||||||||
(Reversal) provision for credit losses | — | (1 | ) | (1 | ) | (5 | ) | 5 | |||||||||||
Charge-offs | — | — | — | (3 | ) | (4 | ) | ||||||||||||
Mortgage loans transferred to held for sale | — | — | — | — | (1 | ) | |||||||||||||
Balance, end of year | $ | 1 | $ | 1 | $ | 2 | $ | 3 | $ | 11 | |||||||||
Ratio of net charge-offs during the year to average loans outstanding during the year (in basis points) | 4 | 2 | 4 | 39 | 35 |
As of and for the Years Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Consolidated obligation discount notes: | |||||||||||
Amount outstanding at the end of the year | $ | 50,139 | $ | 41,292 | $ | 69,434 | |||||
Weighted average interest rate at the end of the year | 1.21 | % | 0.48 | % | 0.27 | % | |||||
Daily average outstanding for the year | $ | 48,676 | $ | 58,774 | $ | 42,328 | |||||
Weighted average interest rate for the year | 0.90 | % | 0.42 | % | 0.14 | % | |||||
Maximum amount outstanding at any month-end during the year | $ | 56,059 | $ | 69,375 | $ | 69,434 | |||||
Consolidated obligation bonds: | |||||||||||
Amount outstanding at the end of the year | $ | 33,392 | $ | 41,705 | $ | 13,279 | |||||
Weighted average interest rate at the end of the year | 1.31 | % | 0.68 | % | 0.26 | % | |||||
Daily average outstanding for the year | $ | 32,213 | $ | 27,227 | $ | 20,262 | |||||
Weighted average interest rate for the year | 0.90 | % | 0.65 | % | 0.18 | % | |||||
Maximum amount outstanding at any month-end during the year | $ | 43,230 | $ | 41,705 | $ | 26,773 |
• | the firm’s borrowings are in good standing and neither Lender has the right to take action against PwC, as borrower, in connection with the financings; |
• | the debt balances outstanding are immaterial to PwC and to each Lender; |
• | PwC has borrowing relationships with a diverse group of lenders, therefore PwC is not dependent on any single lender or group of lenders; |
• | the PwC audit engagement team has no involvement in PwC’s treasury function and PwC’s treasury function has no oversight or ability to influence the PwC audit engagement team; and |
• | neither Lender has made any attempt to influence the conduct of the Bank’s audit or the objectivity and impartiality of any member of PwC’s audit engagement team. |
• | although the Lenders owned more than 10 percent of the Bank’s capital stock, the Lenders’ voting rights are each less than 10 percent; |
• | as of December 31, 2017 and as of the date of the filing of this Form 10-K, no officer or director of either Lender served on the board of directors of the Bank; and |
• | the Lenders are subject to the same terms and conditions for conducting business with the Bank as any other member. |
• | a member directorship be held only by an officer or director of a member institution located within the Bank’s district; |
• | the member institution meet all minimum capital requirements established by its regulator(s); and |
• | the member institution be a member as of the record date established for the election of the member director. |
• | who is a bona fide resident of the Bank’s district; |
• | who is not a director, officer, or employee of a member institution or of any recipient of advances from the Bank; and |
• | who is not an officer of any FHLBank. |
Name | Age | Director Since | Expiration of Current Term as Director | Board Committees | |||||
Brian E. Argrett(1) | 54 | 2016 | 12/31/2021 | (5)(7)(8)(9) | |||||
Travis Cosby, III(1) | 59 | 2014 | 12/31/2021 | (5)(7)(8)(9) | |||||
Suzanne S. DeFerie(1) | 61 | 2015 | 12/31/2020 | (5)(7)(8)(9) | |||||
R. Thornwell Dunlap, III(1) | 60 | 2016 | 12/31/2019 | (6)(8)(10)(11) | |||||
F. Gary Garczynski(2)(3) | 71 | 2007 | 12/31/2020 | (5)(6)(7)(8)(9)(10)(11) | |||||
William C. Handorf(2) | 73 | 2007 | 12/31/2019 | (5)(7)(8)(9) | |||||
Scott C. Harvard(1)(4) | 63 | 2017 | 12/31/2020 | (5)(6)(8)(10) | |||||
Jonathan Kislak(2) | 69 | 2008 | 12/31/2018 | (7)(8)(9)(11) | |||||
LaSalle D. Leffall, III(2) | 55 | 2007 | 12/31/2020 | (5)(7)(8)(10) | |||||
Kim C. Liddell(1) | 57 | 2015 | 12/31/2018 | (6)(8)(9)(11) | |||||
Miriam Lopez(1) | 67 | 2008 | 12/31/2018 | (6)(8)(10)(11) | |||||
John B. Rucker(2) | 66 | 2017 | 12/31/2019 | (6)(8)(10)(11) | |||||
Robert L. Strickland, Jr.(2)(3)(4) | 66 | 2007 | 12/31/2021 | (6)(8)(10)(11) | |||||
Richard A. Whaley(1) | 58 | 2013 | 12/31/2018 | (5)(6)(7)(8)(9)(10)(11) |
(1) | Member Director |
(2) | Independent Director |
(3) | Public Interest Director |
(4) | Mr. Harvard previously served as a director from 2003-2012. Mr. Strickland previously served as a director from 2002-2004. |
(5) | Member of Audit Committee |
(6) | Member of Credit and Member Services Committee |
(7) | Member of Enterprise Risk and Operations Committee |
(8) | Member of Executive Committee |
(9) | Member of Finance Committee |
(10) | Member of Governance and Compensation Committee |
(11) | Member of Housing and Community Investment Committee |
• | Audit Committee oversees the Bank’s financial reporting process, system of internal control, audit process, policies and procedures for assessing and monitoring implementation of the strategic plan, and the Bank’s process for monitoring compliance with laws and regulations. |
• | Credit and Member Services Committee oversees the Bank’s credit and collateral policies and related programs, services, products and documentation, and the Bank’s credit and collateral risk management program, strategies, and activities. |
• | Enterprise Risk and Operations Committee oversees the Bank’s enterprise risk management functions, operations, information technology, and other related matters. |
• | Executive Committee exercises most of the powers of the board in the management and direction of the affairs of the Bank during the intervals between board meetings. |
• | Finance Committee oversees matters affecting the Bank’s financial performance, capital management and other related matters, including the Bank’s market and liquidity risk management program, strategies, and activities. |
• | Governance and Compensation Committee oversees the Bank’s governance practices, compensation and benefits programs, and other related matters. |
• | Housing and Community Investment Committee oversees the Bank’s housing and community investment policies, programs, and other relevant matters, including any other Bank products, services, and programs that may provide grants, subsidies, or other forms of assistance to support affordable housing and community economic development for low- and moderate-income individuals and communities. |
Executive Officer | Age | Title | ||
W. Wesley McMullan | 54 | President and Chief Executive Officer | ||
Kirk R. Malmberg | 57 | Executive Vice President and Chief Financial Officer | ||
Cathy C. Adams | 58 | Executive Vice President and Chief Operations Officer | ||
Robert F. Dozier, Jr. | 49 | Executive Vice President and Chief Business Officer | ||
Robert C. Bennett | 63 | Senior Vice President and Chief Information Officer | ||
Julia S. Brown | 53 | Senior Vice President, Corporate Secretary | ||
Bryan Delong | 54 | Senior Vice President, Director of Human Resources and Staff Services | ||
Arthur L. Fleming | 59 | Senior Vice President, Director of Community Investment Services | ||
Annette Hunter | 53 | Senior Vice President, Director of Accounting Operations | ||
Haig H. Kazazian, III | 52 | Senior Vice President, Treasurer | ||
Robert S. Kovach | 54 | Senior Vice President, Chief Credit Officer | ||
Eric M. Mondres | 63 | Senior Vice President, Director of Government and Industry Relations | ||
Reginald T. O'Shields | 47 | Senior Vice President, General Counsel | ||
Richard A. Patrick | 62 | Senior Vice President, Chief Audit Officer | ||
William T. Shaw | 46 | First Vice President, Controller | ||
Alp E. Can | 42 | First Vice President, Chief Risk Officer |
Name | Title | |
W. Wesley McMullan | President and Chief Executive Officer | |
Kirk R. Malmberg | Executive Vice President and Chief Financial Officer | |
Cathy C. Adams | Executive Vice President and Chief Operations Officer | |
Robert F. Dozier, Jr. | Executive Vice President and Chief Business Officer | |
Robert S. Kovach | Senior Vice President, Chief Credit Officer |
• | executive compensation must be reasonable and comparable to that offered to executives in similar positions at other comparable financial institutions; |
• | executive incentive compensation should be consistent with sound risk management and preservation of the par value of the FHLBank’s capital stock; |
• | a significant percentage of an executive’s incentive-based compensation should be tied to longer-term performance and outcome indicators; |
• | a significant percentage of an executive’s incentive-based compensation should be deferred and made contingent upon the FHLBank’s financial performance over several years; and |
• | the FHLBank’s board of directors should promote accountability and transparency in the process of setting compensation. |
• | achievement of performance objectives for 2017 as determined by the board; |
• | fulfillment of the Bank’s public policy mission; |
• | demonstration of leadership and vision for the Bank; |
• | implementation and maintenance of effective business strategies and operations, legal and regulatory compliance programs, risk management activities, and internal controls commensurate with the Bank’s size, scope, and complexity; |
• | establishment and maintenance of strong relationships between the Bank and its customers, shareholders, employees, regulators, and other stakeholders; and |
• | the Bank’s 2017 financial results. |
• | FHLBank Boston |
• | FHLBank Chicago |
• | FHLBank Cincinnati |
• | FHLBank Des Moines |
• | FHLBank New York |
• | FHLBank Pittsburgh |
• | FHLBank San Francisco |
• Associated Banc-Corp | • Huntington Bancshares | ||
• Bank of the West | • People’s Bank | ||
• City National Bank | • Synovus Financial Corporation | ||
• Commerce Bancshares | • Umpqua Bank | ||
• Comerica | • Webster Bank | ||
• EverBank |
• American Financial Group | • Humana | ||
• American National Insurance | • Huntington Bancshares | ||
• Associated Banc-Corp | • People’s Bank | ||
• Assurant | • Phoenix Companies | ||
• Bank of the West | • Progressive | ||
• Chubb | • Reinsurance Group of America (RGA) | ||
• Cigna | • Santander Consumer USA | ||
• City National Bank | • Synovus Financial Corporation | ||
• CNO Financial | • TD Ameritrade | ||
• Comerica | • Umpqua Bank | ||
• Commerce Bancshares | • Unum | ||
• Cullen Frost Bankers | • Visa | ||
• EverBank | • Webster Bank |
Percent of Base Salary (%) | ||||||
Title | Threshold | Target | Maximum | |||
President and Chief Executive Officer | 40.00 | 75.00 | 98.00 | |||
Executive Vice President | 30.00 | 55.00 | 80.00 | |||
Senior Vice President | 24.00 | 48.00 | 70.00 |
President and Chief Executive Officer | ||||||||
Percent of Base Salary | ||||||||
Goal | Weight (%) | Threshold (%) | Target (%) | Maximum (%) | ||||
Shareholder Focus - Shareholder Activity | 34.00 | 13.60 | 25.50 | 33.32 | ||||
Risk Management - Risk Appetite | 33.00 | 13.20 | 24.75 | 32.34 | ||||
Risk Management - ROE Spread to 3-Month LIBOR | 33.00 | 13.20 | 24.75 | 32.34 | ||||
Total | 100.00 | 40.00 | 75.00 | 98.00 | ||||
Executive Vice President | ||||||||
Percent of Base Salary | ||||||||
Goal | Weight (%) | Threshold (%) | Target (%) | Maximum (%) | ||||
Shareholder Focus - Shareholder Activity | 34.00 | 10.20 | 18.70 | 27.20 | ||||
Risk Management - Risk Appetite | 33.00 | 9.90 | 18.15 | 26.40 | ||||
Risk Management - ROE Spread to 3-Month LIBOR | 33.00 | 9.90 | 18.15 | 26.40 | ||||
Total | 100.00 | 30.00 | 55.00 | 80.00 | ||||
Senior Vice President | ||||||||
Percent of Base Salary | ||||||||
Goal | Weight (%) | Threshold (%) | Target (%) | Maximum (%) | ||||
Shareholder Focus - Shareholder Activity | 25.00 | 6.00 | 12.00 | 17.50 | ||||
Risk Management - Risk Appetite | 25.00 | 6.00 | 12.00 | 17.50 | ||||
Risk Management - ROE Spread to 3-Month LIBOR | 25.00 | 6.00 | 12.00 | 17.50 | ||||
Individual and Team Goals | 25.00 | 6.00 | 12.00 | 17.50 | ||||
Total | 100.00 | 24.00 | 48.00 | 70.00 |
Name | Shareholder Activity (%) | Risk Appetite (%) | ROE Spread to 3-Month LIBOR (%) | Individual/Team Goals (%) | Total Award (%) of Base Salary | Overall Award Level | Total Calculated Award | Deferred Incentive | ||||||||||||
W. Wesley McMullan | 33.32 | 31.88 | 32.34 | N/A | 97.54 | Target-Max | $ | 795,964 | $ | 397,982 | ||||||||||
Kirk R. Malmberg | 27.20 | 25.91 | 26.40 | N/A | 79.51 | Target-Max | 403,887 | 201,944 | ||||||||||||
Cathy C. Adams | 27.20 | 25.91 | 26.40 | N/A | 79.51 | Target-Max | 391,961 | 195,981 | ||||||||||||
Robert F. Dozier, Jr. | 27.20 | 25.91 | 26.40 | N/A | 79.51 | Target-Max | 387,986 | 193,993 | ||||||||||||
Robert S. Kovach | 17.50 | 17.17 | 17.50 | 17.50 | 69.67 | Target-Max | 278,540 | 139,270 |
Payment Year | Payment | |
2019 | 1/3 of balance (± 1-year return) | |
2020 | 1/2 of balance (± 2-year return) | |
2021 | Remaining balance (± 3-year return) |
F. Gary Garczynski, Chairman | Richard A. Whaley, Vice Chairman | |
Brian E. Argrett | Jonathan Kislak | |
Travis Cosby, III | LaSalle D. Leffall, III | |
Suzanne S. DeFerie | Kim C. Liddell | |
R. Thornwell Dunlap, III | Miriam Lopez | |
William C. Handorf | John B. Rucker | |
Scott C. Harvard | Robert L. Strickland, Jr. |
Name and Principal Position (a) | Year (b) | Salary (c) | Bonus (d) (2) | Non-Equity Incentive Plan Compensation (e) (3) | Change in Pension Value and Nonqualified Deferred Compensation Earnings (f) (4) | All Other Compensation (g) (5) | Total (h) | |||||||||||||||||||
W. Wesley McMullan President and Chief Executive Officer | 2017 | $ | 816,000 | $ | 100 | $ | 833,345 | $ | 2,409,977 | $ | 74,001 | $ | 4,133,423 | |||||||||||||
2016 | 800,000 | 100 | 799,865 | 1,871,447 | 69,688 | 3,541,100 | ||||||||||||||||||||
2015 | 751,000 | 100 | 757,270 | 498,478 | 64,679 | 2,071,527 | ||||||||||||||||||||
Kirk R. Malmberg Executive Vice President and Chief Financial Officer | 2017 | 508,000 | 100 | 422,788 | 1,008,531 | 35,736 | 1,975,155 | |||||||||||||||||||
2016 | 495,000 | 600 | 401,882 | 775,473 | 32,682 | 1,705,637 | ||||||||||||||||||||
2015 | 473,000 | 100 | 387,308 | 245,184 | 29,244 | 1,134,836 | ||||||||||||||||||||
Cathy C. Adams Executive Vice President and Chief Operations Officer | 2017 | 493,000 | 100 | 410,273 | 1,248,856 | 34,833 | 2,187,062 | |||||||||||||||||||
2016 | 480,000 | 1,100 | 389,676 | 1,123,030 | 29,873 | 2,023,679 | ||||||||||||||||||||
2015 | 458,000 | 100 | 374,990 | 335,020 | 28,319 | 1,196,429 | ||||||||||||||||||||
Robert F. Dozier, Jr. Executive Vice President and Chief Business Officer | 2017 | 488,000 | 100 | 406,101 | 105,000 | 108,482 | 1,107,683 | |||||||||||||||||||
2016 | 475,000 | 200 | 385,605 | 67,000 | 28,614 | 956,419 | ||||||||||||||||||||
2015 | 453,000 | 100 | 370,880 | 38,000 | 29,352 | 891,332 | ||||||||||||||||||||
Robert S. Kovach Senior Vice President and Chief Credit Officer (1) | 2017 | 399,800 | 100 | 291,721 | 323,000 | 24,252 | 1,038,873 | |||||||||||||||||||
2016 | 390,000 | 100 | 278,317 | 190,000 | 23,491 | 881,908 |
Name | Bank Contributions under the 401(k) Plan (1) | Matching contributions under the Bank’s non-qualified Defined Contribution Benefit Equalization Plan (2) | Perquisite (3) | Tax Gross-ups (4) | Total | |||||||||||||||
W. Wesley McMullan | $ | 15,065 | $ | 33,895 | $ | 24,991 | $ | 50 | $ | 74,001 | ||||||||||
Kirk R. Malmberg | 16,200 | 14,280 | 5,206 | 50 | 35,736 | |||||||||||||||
Cathy C. Adams | 16,200 | 13,380 | 5,203 | 50 | 34,833 | |||||||||||||||
Robert F. Dozier, Jr. | 27,000 | 74,791 | 6,641 | 50 | 108,482 | |||||||||||||||
Robert S. Kovach | 5,536 | 18,452 | 214 | 50 | 24,252 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards | ||||||||||||
Name (a) | Threshold (b) (1) | Target (c) (1) | Maximum (d) (1) | |||||||||
W. Wesley McMullan | $ | 326,400 | $ | 612,000 | $ | 799,680 | ||||||
Kirk R. Malmberg | 152,400 | 279,400 | 406,400 | |||||||||
Cathy C. Adams | 147,900 | 271,150 | 394,400 | |||||||||
Robert F. Dozier, Jr. | 146,400 | 268,400 | 390,400 | |||||||||
Robert S. Kovach | 95,952 | 191,904 | 279,860 |
Name (a) | Plan Name (b) | Number of Years of Credited Service (c) | Present Value of Accumulated Benefit (d) (1) | Payments during last fiscal year (e) | ||||||||
W. Wesley McMullan | Pension Plan | 29.8 | $ | 1,958,000 | $ | — | ||||||
Excess Plan | 29.8 | 9,348,000 | — | |||||||||
Kirk R. Malmberg (2) | Pension Plan | 20.8 | 1,529,000 | — | ||||||||
Excess Plan | 20.8 | 3,258,000 | — | |||||||||
Cathy C. Adams | Pension Plan | 30.0 | 2,297,000 | — | ||||||||
Excess Plan | 30.0 | 5,168,000 | — | |||||||||
Robert F. Dozier, Jr. (3) | Pension Plan | — | — | — | ||||||||
Excess Plan | 5.5 | 319,000 | — | |||||||||
Robert S. Kovach (2) | Pension Plan | 30.0 | 1,444,000 | — | ||||||||
Excess Plan | 30.0 | 507,000 | — |
• | increase the amount that the Bank contributes to Mr. Dozier under the Bank’s 401(k) Plan and DCBEP by two percent; |
• | permit Mr. Dozier to participate in the DCBEP outside of the 401(k) benefit limits imposed by the Internal Revenue Service; and |
• | provide an additional contribution by the Bank of 12% of Mr. Dozier’s ICP awards to the DCBEP. |
• | provide that any executive hired or promoted to the level of senior vice president or higher after January 1, 2018 (“eligible executives”), will not be eligible to receive the defined benefit feature of the BEP and will instead receive a Bank contribution of up to 10.0% applied to both annual base pay and ICP award amounts under the defined contribution portion of the BEP; |
• | provide eligible executives with a contribution equivalent to 10% of base pay offset by contributions to the 401(K) Plan; and |
• | provide eligible executives with a contribution equivalent to 10% of incentive compensation. |
Name (a) | Executive Contributions in Last Fiscal Year (b) (1) | Bank Contributions in Last Fiscal Year (c) (2) | Aggregate Earnings In Last Fiscal Year (d) (3) | Aggregate Withdrawals / Distributions (e) | Aggregate Balance at Last Fiscal Year End (f) (4) | |||||||||||||||
W. Wesley McMullan | $ | 57,600 | $ | 33,895 | $ | 210,893 | $ | — | $ | 2,616,510 | ||||||||||
Kirk R. Malmberg | 77,600 | 14,280 | 208,160 | — | 1,327,015 | |||||||||||||||
Cathy C. Adams | 212,640 | 13,380 | 240,894 | (24,393 | ) | 1,648,255 | ||||||||||||||
Robert F. Dozier, Jr. | 11,280 | 74,791 | 9,369 | — | 95,440 | |||||||||||||||
Robert S. Kovach | 95,941 | 18,452 | 187,041 | — | 1,138,681 |
Potential Payments upon Termination | ||||||||||||||||||||||||||||
Cause | Severance | Medical, Dental, and Vision Insurance Benefits | Pension Benefit Enhancements | Other Perquisites | Total | |||||||||||||||||||||||
2017 ICP Award | Deferred Incentive for Prior Periods (1) | Annual Base Salary | ||||||||||||||||||||||||||
Resignation without Good Reason | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Involuntary Termination For Cause | — | — | — | — | — | — | — | |||||||||||||||||||||
Involuntary Termination Without Cause | 795,964 | 788,778 | 816,000 | 48,136 | — | — | 2,448,878 | |||||||||||||||||||||
Resignation For Good Reason | 795,964 | 788,778 | 816,000 | 48,136 | — | — | 2,448,878 |
• | Severance, if and as determined at the sole discretion of the board. |
• | Amounts accrued and vested through the Bank’s Pension Plan and the Excess Plan (the Bank’s qualified and non-qualified defined benefit plans). Up to three months of incremental service under the Bank’s Pension Plan may be granted, in the sole discretion of the board, if an employee is provided with severance pay. |
• | Amounts accrued and vested through the 401(k) Plan and the DCBEP (the Bank’s qualified and non-qualified defined contribution plans) and amounts contributed and associated earnings under the Bank’s deferred compensation plan. |
• | Accrued vacation and applicable retiree medical benefits and applicable retiree life insurance. |
• | the participant’s failure to perform substantially his/her duties; |
• | the participant’s engagement in illegal conduct or willful misconduct injurious to the Bank; |
• | the participant’s material violation of law or regulation or of the Bank’s written policies or guidelines; |
• | a written request from the Finance Agency requesting that the Bank terminate the participant’s employment; |
• | crimes involving a felony, fraud or other dishonest acts; |
• | certain other notices from or actions by the Finance Agency; |
• | the participant’s breach of fiduciary duty or breach of certain covenants in the Severance Plan; and |
• | the participant’s refusal to comply with a lawful directive from the chief executive officer or the board of directors. |
• | a material diminution in the participant’s base salary or in his/her duties or authority; |
• | the Bank requiring the participant to be based at any office or location other than in Atlanta, Georgia; or |
• | or a material breach of the Severance Plan by the Bank. |
• | The chief executive officer would receive a cash payment equal to 2.5 times his/her annual base salary amount. |
• | An executive vice president would receive a cash payment equal to 1.75 times his/her annual base salary amount. |
• | Participants would receive a lump sum cash payment equal to the amount that would have been payable pursuant to the participant’s incentive compensation award for the year in which the date of a Qualifying Termination occurs, prorated based on the number of days the participant was employed that year. |
• | Participants would receive a lump sum cash payment for outplacement assistance in the amount of $7,500. |
• | the merger, reorganization, or consolidation of the Bank with or into, or acquisition of the Bank by, another Federal Home Loan Bank or other entity; |
• | the sale or transfer of all or substantially all of the business or assets of the Bank to another Federal Home Loan Bank or other entity; or |
• | a change in the composition of the Bank’s board that causes the combined number of member directors from the jurisdictions of Alabama, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina and Virginia to cease to constitute a majority of the Bank’s directors; or |
• | the Bank’s liquidation or dissolution. |
Title | Amount | |||
Chairman of the Board | $ | 100,000 | ||
Vice Chairman of the Board | 95,000 | |||
Chairman of the Audit Committee | 95,000 | |||
Other Committee Chairmen (excluding Audit and Executive) | 90,000 | |||
All Other Directors | 80,000 |
2017 Director Compensation | ||||||||||||||||
Name (a) | Fees Earned or Paid in Cash (b) | Change in Pension Value and Nonqualified Deferred Compensation Earnings (c) (1) | All Other Compensation (d) (2) | Total (e) | ||||||||||||
Brian E. Argrett | $ | 80,000 | $ | — | $ | 3,858 | $ | 83,858 | ||||||||
Travis Cosby, III | 80,000 | — | 4,370 | 84,370 | ||||||||||||
Suzanne S. DeFerie | 80,000 | — | 1,151 | 81,151 | ||||||||||||
R. Thornwell Dunlap, III | 90,000 | — | 7,038 | 97,038 | ||||||||||||
F. Gary Garczynski | 100,000 | — | 6,589 | 106,589 | ||||||||||||
William C. Handorf | 90,000 | — | 1,540 | 91,540 | ||||||||||||
Scott C. Harvard | 80,000 | — | 2,754 | 82,754 | ||||||||||||
Jonathan Kislak(3) | 95,000 | — | 5,526 | 100,526 | ||||||||||||
LaSalle D. Leffall, III | 90,000 | — | 3,040 | 93,040 | ||||||||||||
Kim C. Liddell | 80,000 | — | 867 | 80,867 | ||||||||||||
Miriam Lopez | 90,000 | — | 5,998 | 95,998 | ||||||||||||
John B. Rucker | 80,000 | 650 | 2,910 | 83,560 | ||||||||||||
Robert L. Strickland, Jr. | 90,000 | — | 4,214 | 94,214 | ||||||||||||
Richard A. Whaley | 95,000 | 878 | 2,184 | 98,062 |
Title | Amount | |||
Chairman of the Board | $ | 130,000 | ||
Vice Chairman of the Board | 120,000 | |||
Chairman of the Audit Committee | 115,000 | |||
Other Committee Chairmen (excluding Audit and Executive) | 110,000 | |||
All Other Directors | 100,000 |
Commercial Banks | Savings Institutions | Credit Unions | Insurance Companies | CDFIs | Mandatorily Redeemable Capital Stock | Total | |||||||||||||||||||||
December 31, 2017 | $ | 3,346 | $ | 445 | $ | 1,233 | $ | 128 | $ | 2 | $ | 1 | $ | 5,155 | |||||||||||||
December 31, 2016 | 3,393 | 366 | 1,100 | 94 | 2 | 1 | 4,956 | ||||||||||||||||||||
December 31, 2015 | 3,557 | 368 | 1,094 | 81 | 1 | 14 | 5,115 | ||||||||||||||||||||
December 31, 2014 | 3,821 | 381 | 872 | 75 | 1 | 19 | 5,169 | ||||||||||||||||||||
December 31, 2013 | 3,766 | 290 | 739 | 86 | 2 | 24 | 4,907 |
Name and Address | Number of Shares Owned | Percent of Total Capital Stock | |||
Bank of America, National Association | 18,854,277 | 32.24 | |||
100 North Tryon Street | |||||
Charlotte, NC 28255 | |||||
Navy Federal Credit Union | 5,053,199 | 8.64 | |||
820 Follin Lane | |||||
Vienna, VA 22180 | |||||
Branch Banking and Trust Company | 3,344,264 | 5.72 | |||
200 West Second Street | |||||
Winston Salem, NC 27104 |
Member Name | City, State | Number of Shares Owned | Percent of Total Capital Stock | ||||
First Bank | Southern Pines, NC | 196,460 | 0.34 | ||||
Marquis Bank | Coral Gables, FL | 23,446 | 0.04 | ||||
First Bank | Strasburg, VA | 6,442 | 0.01 | ||||
Citizens Bank of Americus | Americus, GA | 5,867 | 0.01 | ||||
Community Bankers' Bank | Midlothian, VA | 5,371 | 0.01 | ||||
Countybank | Greenwood, SC | 4,704 | 0.01 | ||||
City First Bank of D.C., National Association | Washington, DC | 3,848 | 0.01 | ||||
First Community Bank of Central Alabama | Wetumpka, AL | 3,194 | 0.01 | ||||
1880 Bank | Cambridge, MD | 2,964 | 0.01 |
• | have been made in the ordinary course of the Bank’s business; |
• | have been made subject to the same Bank policies as transactions with the Bank’s members generally; and |
• | in the opinion of management, do not involve more than the normal risk of collection or present other unfavorable features. |
For the Years Ended December 31, | |||||||
2017 | 2016 | ||||||
Audit fees(1) | $ | 778 | $ | 841 | |||
Audit-related fees(2) | 41 | 48 | |||||
All other fees(3) | 3 | 8 | |||||
Total fees | $ | 822 | $ | 897 |
(a) | Financial Statements. The following financial statements of the Federal Home Loan Bank of Atlanta, set forth in Item 8 above, are filed as part of this Report. |
Report of Independent Registered Public Accounting Firm |
Statements of Condition as of December 31, 2017 and 2016 |
Statements of Income for the Years Ended December 31, 2017, 2016, and 2015 |
Statements of Comprehensive Income for the Years Ended December 31, 2017, 2016, and 2015 |
Statements of Capital Accounts for the Years Ended December 31, 2017, 2016, and 2015 |
Statements of Cash Flows for the Years Ended December 31, 2017, 2016, and 2015 |
Notes to Financial Statements |
(b) | Exhibits. The exhibits listed below are being filed with or incorporated by reference as a part of this Report: |
Exhibit No. | Exhibit Description | Form | Exhibit | Dated Filed | ||||
3.1 | 8-K | 3.1 | 10/26/12 | |||||
3.2 | 8-K | 3.1 | 2/1/16 | |||||
4.1 | 8-K | 99.2 | 8/5/11 | |||||
10.1 | ||||||||
10.2 | 8-K | 10.1 | 1/9/09 | |||||
10.3 | 10-12G | 10.5 | 3/17/06 | |||||
10.4 | ||||||||
10.5 | 10-K | 10.8 | 3/23/12 | |||||
10.6 | 10-K | 10.6 | 3/14/14 | |||||
10.7 | 10-K | 10.7 | 3/9/17 | |||||
10.8 | 10-K | 10.8 | 3/9/17 | |||||
10.9 | 8-K | 99.1 | 8/5/11 | |||||
12.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
99.1 | ||||||||
101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. + | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document.+ | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document.+ | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document.+ | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document.+ | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document.+ | |||||||
* Denotes management contract or compensatory plan. | ||||||||
+ Furnished herewith. |
Federal Home Loan Bank of Atlanta | ||
Date: | March 8, 2018 | By /s/ W. Wesley McMullan |
Name: W. Wesley McMullan Title: President and Chief Executive Officer |
Date: | March 8, 2018 | By /s/ W. Wesley McMullan |
Name: W. Wesley McMullan | ||
Title: President and Chief Executive Officer | ||
Date: | March 8, 2018 | By /s/ Kirk R. Malmberg |
Name: Kirk R. Malmberg | ||
Title: Executive Vice President and Chief Financial Officer | ||
Date: | March 8, 2018 | By /s/ William T. Shaw |
Name: William T. Shaw | ||
Title: First Vice President | ||
and Controller | ||
Date: | March 8, 2018 | By /s/ F. Gary Garczynski |
Name: F. Gary Garczynski | ||
Title: Chairman of the Board of Directors | ||
Date: | March 8, 2018 | By /s/ Richard A. Whaley |
Name: Richard A. Whaley | ||
Title: Vice Chairman of the Board of Directors | ||
Date: | March 8, 2018 | By /s/ Brian E. Argrett |
Name: Brian E. Argrett | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Travis Cosby, III |
Name: Travis Cosby, III | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Suzanne S. DeFerie |
Name: Suzanne S. DeFerie | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ R. Thornwell Dunlap, III |
Name: Thornwell Dunlap, III | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ William C. Handorf |
Name: William C. Handorf | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Scott C. Harvard |
Name: Scott C. Harvard | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Jonathan Kislak |
Name: Jonathan Kislak | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ LaSalle D. Leffall, III |
Name: LaSalle D. Leffall, III | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Kim C. Liddell |
Name: Kim C. Liddell | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Miriam Lopez |
Name: Miriam Lopez | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ John B. Rucker |
Name: John B. Rucker | ||
Title: Director | ||
Date: | March 8, 2018 | By /s/ Robert L. Strickland, Jr. |
Name: Robert L. Strickland, Jr. | ||
Title: Director |
(i) | is an amount equal to the regular account and maximum 401(k) account contributions permitted under the Savings Plan for the calendar year as determined under the Savings Plan if its provisions were administered without regard to the Code Limitations and if compensation as defined in the Savings Plan included any deferrals made under this Section 4.01; and |
(ii) | (ii) is an amount equal to his regular account and 401(k) account contributions actually made under the Savings Plan for the calendar year. |
(a) | For each elective contribution addition credited to a Member under Section 4.01, such Member shall also be credited with an additional employer matching contribution, subject to a maximum employer matching contribution of 6% of such Member’s Compensation, under this Plan equal to the employer matching contributions, if any, that would be credited under the Savings Plan with respect to such amount if contributed to the Savings Plan, determined as if the provisions of the Savings Plan were administered without regard to the Code Limitations and determined after taking into account the Member's actual contributions to and actual matching contributions under the Savings Plan. |
(b) | Each Member whose non-elective employer contributions under the Savings Plan are limited by a Code Limitation, shall receive an employer non-elective contribution under this Plan equal to the employer non-elective contribution, if any, that would be credited under the Savings Plan with respect to such Member, provided such employer non-elective contribution shall be subject to a maximum of 4% of such Member’s Compensation, determined without regard to the Code Limitations. |
(i) | 15% of any bonuses paid in the current Plan Year to an eligible Executive Retirement Plan Participant; |
(ii) | 9% of such Executive Retirement Plan Participant’s Compensation earned during the current Plan Year, offset by the amount of any employer non-elective contribution contributed on behalf of such Executive Retirement Plan Participant under Section 4.03(b) of this Plan, and offset by the amount of any employer non-elective contribution contributed on behalf of such Executive Retirement Plan Participant under the Savings Plan; |
(i) | 10% of any bonuses paid in the current Plan Year to an eligible Executive Retirement Plan Participant; |
(ii) | 4% of such Executive Retirement Plan Participant’s Compensation earned during the current Plan Year, offset by the amount of any employer non-elective contribution contributed on behalf of such Executive Retirement Plan Participant under Section 4.03(b) of this Plan, and offset by the amount of any employer non-elective |
(i) | Mr. Dozier shall be deemed to have met the requirements to participate in the Retirement Fund, and shall receive benefits under this Plan in accordance with the provisions of Article III above. |
(ii) | Notwithstanding the provisions of Articles IV and V above, and provided that Mr. Dozier has met the requirements to receive elective deferral and employer contributions and other benefits as set forth in Article IV, above, Mr. Dozier shall receive an employer contribution equal to (a) plus (b) below. For clarity, the purpose of this Section is to provide a total employer contribution equal to 12% of Mr. Dozier’s combined Compensation plus bonuses under this Plan, but offset by amounts already contributed to the Plan under Article IV and by amounts already contributed to the Savings Plan. |
a. | 12% of any bonuses paid in the current Plan Year to Mr. Dozier; |
b. | 6% of Mr. Dozier’s Compensation earned during the current Plan Year, offset by the amount of any employer non-elective contribution contributed on behalf of Mr. Dozier under Section 4.03 of this Plan, and offset by the amount of any employer non-elective contribution contributed on behalf of Mr. Dozier under the Savings Plan; |
Department: Corporate Secretary | Name of Policy: 2018 Directors’ Compensation Policy | Department Policy Number: 1 |
Effective Date: January 1, 2018 | Supersedes Revisions: January 1, 2017 | Authority to Approve and Amend: Board of Directors |
Next Review Date: December 2018 | Department Policy Owner: Corporate Secretary |
1. | Effective January 1, 2018, the following annual compensation limits shall apply: |
1. | Effective January 1, 2018, the following annual compensation limits shall apply: |
a) | Chairman of the Board $130,000 |
b) | Vice Chairman of the Board $120,000 |
c) | Chairman of the Audit Committee $115,000 |
d) | Other Chairmen of Committees (excluding Audit and Executive) $110,000 |
e) | All Other Directors $100,000 |
2. | Each director shall have the opportunity to be paid an amount equal to approximately one-seventh of such director’s annual limit for actual attendance at each scheduled in-person board meeting and board committee meetings, as further described in Section B. The seventh payment opportunity shall be subject to adjustment as further described in Section C. |
3. | In determining the above director compensation levels, the board considered a comparative compensation study prepared by a third party with expertise in compensation matters, the compensation of directors of other Federal Home Loan Banks in 2017, including median compensation and the provision for payment of certain expenses described in Section D.3 and D.4. The board established the above director compensation levels after evaluating the foregoing data and considering the time that directors are expected to devote to Bank business and the need to ensure the Bank’s future ability to attract qualified directors. The compensation levels reflect the board’s assessment of appropriate and comparable pay that will allow the Bank to recruit and retain highly qualified directors and compensate them for the time required in performing their duties. |
1. | Each director is strongly encouraged to attend all meetings of the board and board committees on which the director serves, and is expected to attend no less than 75 percent of all such meetings each year. |
2. | The Bank will pay a fee only for a director’s actual attendance at no less than 75 percent of the board meetings (including scheduled board meetings, new director orientation, joint meetings of the Affordable Housing Advisory Council and board or committee, board strategy sessions, and board teleconferences) and meetings of each committee of the board (including any ad hoc committee established by the board for a specific purpose) on which the director serves during each interim period, as identified below. In the event two or more committees on which a director serves are scheduled to meet concurrently, only one committee meeting will be required for the purpose of calculating the director’s attendance. Interested directors are not required to attend board or committee meetings that are devoted exclusively to director election matters. As ex officio members of all committees, the Chairman and Vice Chairman of the board are encouraged, but not required, to attend committee teleconferences and unscheduled committee meetings (meetings added after the 2018 board and committee meeting schedule is approved by the board). |
3. | The first interim period shall begin on December 11, 2017 and end on the last day of the first scheduled in-person board meeting for 2018. Each successive interim period shall begin on the calendar day immediately following a scheduled board meeting through and including the day of the next scheduled board meeting, with the seventh interim period ending on December 16, 2018 after the seventh scheduled in-person board meeting, as follows: |
Interim Period | Start Date | End Date |
First | December 11, 2017 | February 1, 2018 |
Second | February 2, 2018 | March 29, 2018 |
Third | March 30, 2018 | May 17, 2018 |
Fourth | May 18, 2018 | July 26, 2018 |
Fifth | July 27, 2018 | September 30, 2018 |
Sixth | October 1, 2018 | October 31, 2018 |
Seventh | November 1, 2018 | December 16, 2018 |
4. | Participation by telephone for in-person meetings is discouraged unless necessary to attain a quorum. The Bank will not pay a separate fee for a director’s attendance at meetings other than those described above. |
5. | The Bank will not advance the payment of fees to any director. |
1. | Compensation paid to directors must reflect the time required of them in the performance of official Bank business. The time required will be measured principally by attendance and participation at board and board committee meetings, as described above, and secondarily by performance of other duties. These other duties include time spent: (a) preparing for board meetings; (b) chairing meetings as appropriate; (c) reviewing materials sent to directors on a periodic basis; (d) attending other related events such as management conferences, FHLBank System meetings, and director training; and (e) fulfilling the responsibilities of directors. |
2. | Before the seventh payment is made, the Governance and Compensation Committee (GCC) shall review the cumulative attendance and performance of each director during 2018 and, in consultation with the Chairman, recommend to the board a reduction, elimination or increase in the final payment opportunity. No increase shall exceed the applicable compensation limit. In the event a director serves on the board for only a portion of a calendar year, the final payment for such director shall be subject to the same cumulative attendance and performance review through the director’s final date of service. |
1. | In accordance with the Bank’s normal reimbursement policy, the Bank will reimburse a director’s travel expenses and any registration fees incurred in connection with attendance at any board or board committee meeting, the Council of FHLBanks’ directors conference, PricewaterhouseCoopers’ audit committee conference, any seminar or event specifically identified in the director education plan, any meeting or event that Bank management invites a director to attend in order to engage with shareholders or otherwise to represent the Bank’s interests, and provided the director is the Bank’s designated representative, meetings of the FHLBank Chairs/Vice Chairs and Council of FHLBanks’ board of representatives. Please consult the Bank’s Travel and Entertainment Policy for a more detailed explanation regarding expense reimbursement. |
2. | The Bank will reimburse a director’s registration fees and travel expenses incurred in connection with any other meeting, hearing, ceremony, continuing education seminar, or other event only if the Chairman determines that the meeting is relevant to the Bank’s business activities or the director’s duties as a board member and the director attends the meeting at the request of, or with the approval of, the Chairman. The Vice Chairman shall approve all such fees and expenses for the Chairman. These amounts will be reimbursable to the extent provided for such purpose in the Bank’s annual budget and in accordance with the Bank’s Travel and Entertainment Policy. The Bank will not pay a fee for a director’s participation in these types of activities, and in accordance with 12 C.F.R. Part 1261, the Bank will not reimburse directors for entertainment expenses at these events. |
3. | The Bank will pay the transportation and other reasonable and ordinary travel expenses, including meals and incidental activities, of one guest of a director to attend board or shareholder meetings only as specified in advance by the Bank. |
4. | A board member may invite a guest to Bank-sponsored board dinners or receptions held in connection with board meetings at the expense of the Bank, so long as such guest otherwise pays his or her own transportation and travel expenses. |
5. | Amounts paid by the Bank for any of the foregoing director or guest expenses will be reported as compensation to the director to the extent of and in compliance with applicable Internal Revenue Service laws and regulations and such expenses are in addition to the compensation limits identified in Section A above. Therefore, a director’s total annual compensation limit shall consist of (1) annual compensation set forth in Section A above and (2) payment for such reasonable and ordinary guest expenses set forth in Section D.3 above. |
Years Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Earnings: | |||||||||||||||||||||
Income before assessments | $ | 388 | $ | 309 | $ | 334 | $ | 301 | $ | 375 | |||||||||||
Fixed charges | 1,362 | 772 | 365 | 355 | 450 | ||||||||||||||||
Earnings available for fixed charges | $ | 1,750 | $ | 1,081 | $ | 699 | $ | 656 | $ | 825 | |||||||||||
Fixed charges: | |||||||||||||||||||||
Interest on consolidated obligations | $ | 1,351 | $ | 768 | $ | 364 | $ | 354 | $ | 448 | |||||||||||
Interest on deposits | 11 | 4 | — | — | 1 | ||||||||||||||||
Mandatorily redeemable capital stock | — | — | 1 | 1 | 1 | ||||||||||||||||
Fixed charges | $ | 1,362 | $ | 772 | $ | 365 | $ | 355 | $ | 450 | |||||||||||
Ratio of earnings to fixed charges | 1.28 | 1.40 | 1.92 | 1.85 | 1.83 |
1. | I have reviewed this annual report on Form 10-K 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: | March 8, 2018 | /s/ W. Wesley McMullan |
W. Wesley McMullan | ||
President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K 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: | March 8, 2018 | /s/ Kirk R. Malmberg |
Kirk R. Malmberg | ||
Executive Vice President and | ||
Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | March 8, 2018 | /s/ W. Wesley McMullan |
W. Wesley McMullan | ||
President and Chief Executive Officer | ||
Date: | March 8, 2018 | /s/ Kirk R. Malmberg |
Kirk R. Malmberg | ||
Executive Vice President and Chief Financial Officer | ||
• | an analysis of the risks and benefits of retaining the same firm as independent auditor versus engaging a different firm, including consideration of: |
◦ | PwC’s engagement audit partner, engagement quality review partner and audit team rotation; |
◦ | PwC’s tenure as the Bank’s and the FHLBank System’s independent auditor; |
◦ | benefits associated with engaging a different firm as independent auditor; and |
◦ | potential disruption and risks associated with changing the Bank’s independent auditor. |
• | the firm’s depth and breadth of understanding of the Bank's business, operations, and accounting policies and practices; |
• | PwC’s historical and recent performance on the Bank’s audit, including the results of an internal survey of PwC service and quality; |
• | an analysis of PwC’s known legal risks and significant proceedings; |
• | external data relating to audit quality and performance, including recent PCAOB audit quality inspection reports on PwC and its peer firms; and |
• | the appropriateness of PwC’s fees, on both an absolute basis and as compared to its peer firms. |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Feb. 28, 2018 |
Jun. 30, 2017 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Federal Home Loan Bank of Atlanta | ||
Entity Central Index Key | 0001331465 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 58,472,142 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filing Status | No | ||
Entity Well Known Seasoned Issued | No | ||
Entity Public Float | $ 0 | ||
Common Stock, Value, Outstanding | $ 4,681,354,700 |
Statements of Condition (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deposits with other FHLBanks | $ 22 | $ 5 |
Held-to-maturity securities, fair value | $ 25,219 | $ 24,633 |
Capital stock Class B putable par value (per share) | $ 100 | $ 100 |
Subclass B1 [Member] | ||
Capital stock, shares issued | 8 | 8 |
Capital stock, shares outstanding | 8 | 8 |
Subclass B2 [Member] | ||
Capital stock, shares issued | 44 | 42 |
Capital stock, shares outstanding | 44 | 42 |
Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 349 | $ 278 | $ 301 |
Net noncredit portion of other-than-temporary impairment losses on available-for-sale securities: | |||
Noncredit losses on available-for-sale securities | 0 | (1) | 0 |
Net change in fair value on other-than-temporarily impaired available-for-sale securities | 8 | 27 | (28) |
Reclassification of noncredit portion of impairment losses included in net income | 2 | 3 | 5 |
Total net noncredit portion of other-than-temporary impairment losses on available-for-sale securities | 10 | 29 | (23) |
Pension and postretirement benefit plans | (4) | 0 | 3 |
Total other comprehensive income (loss) | 6 | 29 | (20) |
Total comprehensive income | $ 355 | $ 307 | $ 281 |
Nature of Operations |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The Federal Home Loan Bank of Atlanta (Bank) is a federally chartered corporation and is one of 11 district Federal Home Loan Banks (FHLBanks). Each FHLBank operates as a separate entity within a defined geographic district and has its own management, employees, and board of directors. The Bank’s defined geographic district includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. The FHLBanks are government-sponsored enterprises that were organized under the Federal Home Loan Bank Act of 1932, as amended (FHLBank Act), to serve the public by enhancing the availability of credit for residential mortgages and targeted community developments. The primary function of the Bank is to provide readily available, competitively priced funding to its member institutions. The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock are entitled to receive dividends on their capital stock, to the extent declared by the Bank’s board of directors. Federally-insured depository institutions, insurance companies, privately-insured state-chartered credit unions, and community development financial institutions that are located in the Bank’s defined geographic district and engaged in residential housing finance are eligible to apply for membership. All members must purchase and hold capital stock of the Bank. A member’s stock requirement is based on the amount of its total assets, as well as the amount of certain of its business activities with the Bank. Housing associates (including state and local housing authorities) that meet certain statutory criteria may also borrow from the Bank. While they are eligible to borrow, housing associates are not members of the Bank and are not allowed to hold capital stock. The Federal Housing Finance Agency (Finance Agency) is the independent federal regulator of the FHLBanks and is responsible for ensuring that the FHLBanks (1) operate in a safe and sound manner, including that they maintain adequate capital and internal controls; (2) foster liquid, efficient, competitive, and resilient national housing finance markets through their operations and activities; (3) comply with applicable laws and regulations; and (4) carry out their housing finance mission through authorized activities that are consistent with the public interest. The Finance Agency also establishes policies and regulations covering the operations of the FHLBanks. The Bank does not have any special purpose entities or any other types of off-balance sheet conduits. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank’s management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank’s best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. The net exposure for these financial instruments can change on a daily basis; therefore, there may be a delay between the time this exposure change is identified and additional collateral is requested, and the time when this collateral is received or pledged. There may be a delay for excess collateral to be returned. For derivative instruments, any excess cash collateral received or pledged is recognized as a derivative liability or derivative asset based on the terms of the individual master agreement between the Bank and its derivative counterparty. Additional information regarding these agreements is provided in Note 17—Derivatives and Hedging Activities. Based on the fair value of the related securities held as collateral, the securities purchased under agreements to resell were fully collateralized for the periods presented. Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. Interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty has the option to (1) place an equivalent amount of additional securities in safekeeping in the name of the Bank, or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans transacted with counterparties that are considered by the Bank to be of investment quality. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Investment Securities. The Bank classifies certain investment securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net losses on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank’s liquidity position. Investment securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in other comprehensive income. The Bank intends to hold its available-for-sale securities for an indefinite period of time but may sell them prior to maturity in response to changes in interest rates, prepayment risk, or other factors. Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances:
If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security’s amortized cost basis and its fair value as of the Statements of Condition date. For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in other comprehensive income. The credit loss on a debt security is limited to the amount of that security’s unrealized losses. The total other-than-temporary impairment is presented on the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in other comprehensive income. The remaining amount on the Statements of Income represents the credit loss for the period. For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security’s amortized cost, less the amount of other-than-temporary impairment recognized in other comprehensive income prior to the determination of this additional other-than-temporary impairment, and its fair value. Any additional credit loss is limited to that security’s unrealized losses or the difference between the security’s amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in accumulated other comprehensive income related to the security, is reclassified out of accumulated other comprehensive income and recognized in earnings. Any credit loss in excess of the related other comprehensive income is recorded as additional total other-than-temporary impairment loss and recognized in earnings. For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income. Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security’s expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as “Prepayment fees, net” in the interest income section of the Statements of Income. Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of (1) the U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. Finance Agency regulations require that mortgage loans held in the Bank’s portfolios be credit enhanced so that the Bank’s risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank’s portfolio as of the Statements of Condition date. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for the following portfolio segments of financing receivables: advances and standby letters of credit, government-guaranteed or -insured residential mortgage loans held for portfolio, conventional residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables; however, the Bank determined that no further disaggregation of the portfolio segments identified above is needed. The Bank manages its credit exposure to advances and standby letters of credit through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower’s financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower’s needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower’s advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank’s capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank’s overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances and standby letters of credit. Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. Using a risk-based approach and taking into consideration each borrower’s financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. The Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2017 and 2016. The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2017 and 2016. In addition, there were no troubled debt restructurings related to advances as of December 31, 2017 and 2016. Based upon the collateral held as security, the Bank’s collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances or standby letters of credit as of December 31, 2017 and 2016. Accordingly, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure as of December 31, 2017 and 2016. The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable insurance or guarantee with respect to defaulted government-guaranteed or -insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees. Based on the Bank’s assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2017 and 2016. Modified loans that are considered a troubled debt restructuring are evaluated individually for impairment. All other conventional residential mortgage loans are evaluated collectively for impairment. The allowance for conventional residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups. For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics. For loans that are more than 60 days past due, the allowance is determined using an automated valuation model. Modified loans that are considered a troubled debt restructuring are individually evaluated for impairment when determining the related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates. A charge-off is recorded if the recorded investment in the loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional residential mortgage loan upon the occurrence of a confirming event. Once a loan is 180 days delinquent, the Bank classifies as a loss and charges off the portion of outstanding conventional residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements. Term federal funds sold are generally short-term, their recorded balance approximates fair value, and they are transacted with counterparties that the Bank considers to be of investment quality. The Bank’s investment in federal funds sold are evaluated for purposes of an allowance for credit losses only if the investment is not paid when due. All investments in federal funds sold are unsecured and were repaid or expected to be repaid according to the contracted terms as of December 31, 2017 and 2016. Securities purchased under agreements to resell are considered collateralized financing arrangements and effectively represent short-term loans transacted with counterparties that the Bank considers to be of investment quality. The terms of these loans are structured such that if the fair value of the underlying securities decreases below the fair value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement is recognized in earnings. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for the securities purchased under agreements to resell as of December 31, 2017 and 2016. Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value, less estimated selling costs and is subsequently carried at the lower of that amount or current fair value, less estimated selling costs. The Bank recognizes a charge-off to the allowance for credit losses if the fair value of the REO, less estimated selling costs is less than the recorded investment in the loan at the date of transfer from loans to REO. Any subsequent realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition and was $2 as of December 31, 2017 and 2016, respectively. Derivatives. All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, including initial and certain variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify as, a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank’s risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank’s results of operations. The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a hedged risk, including hedged items such as firm commitments; (2) the derivative and/or the hedged item expires or is sold, terminated, or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) the bank determines that designating the derivative as a hedging instrument is no longer appropriate. When hedge accounting is discontinued due to the Bank’s determination that a derivative no longer qualifies as an effective fair-value hedge of an existing hedged item, or when the bank decides to cease the specific hedging activity, the Bank will either (1) terminate the derivative, or (2) continue to carry the derivative on the Statements of Condition at its fair value, cease to adjust the hedged asset or liability for changes in fair value, and amortize the cumulative basis adjustment on the hedged item into earnings over the remaining life of the hedged item using the level-yield method. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Bank will carry the derivative at its fair value on the Statements of Condition, recognizing changes in the fair value of the derivative in current-period earnings. The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to a non-qualifying hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current-period earnings (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument. Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank’s accumulated depreciation was $68 and $64 as of December 31, 2017 and 2016, respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware—three; office equipment—eight; office furniture and building improvements—10; and building—40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $4 for the years ended December 31, 2017, 2016, and 2015. The Bank includes gains and losses on disposal of premises and equipment in noninterest income (loss). The Bank records the cost of purchased software and certain costs incurred in developing computer software for internal use at cost, less accumulated amortization. The Bank amortizes capitalized computer software cost using the straight-line method over an estimated useful life of five years. The gross carrying amount of computer software included in other assets was $58 and $55, and accumulated amortization was $50 and $48, as of December 31, 2017 and 2016, respectively. Amortization of computer software was $2, $3, and $5 for the years ended December 31, 2017, 2016, and 2015, respectively. The Bank includes gains and losses on disposal of capitalized software cost in noninterest income (loss). Deposits. The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds to the owners of the mortgage loans. The Bank records these items in “Interest-bearing deposits” on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate. Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation. Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a merger or acquisition, charter termination, or involuntary termination from membership since the member shares will then meet the definition of a mandatorily redeemable financial instrument. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows. If a member cancels its written notice of redemption or notice of withdrawal, the Bank will reclassify mandatorily redeemable capital stock from a liability to capital. After the reclassification, dividends on the capital stock no longer will be classified as interest expense. Restricted Retained Earnings. The FHLBanks have entered into a Joint Capital Enhancement Agreement, as amended (Capital Agreement), which is intended to enhance the capital position of each FHLBank. Under the Capital Agreement, each FHLBank allocates 20 percent of its net income each quarter to a separate retained earnings account until the account balance equals at least one percent of the FHLBank’s average balance of outstanding consolidated obligations for the previous quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks’ portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank’s minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank’s proportionate share of the Office of Finance’s operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation. |
Recently Issued and Adopted Accounting Guidance |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
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 Targeted Improvements to Accounting for Hedging Activities. In August 2017, the Financial Accounting Standards Board (FASB) issued amended guidance intended to better portray the economic results of an entity’s risk management activities in its financial statements. This guidance requires that, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line item that is used to present the earnings effect of the hedged item. In addition, the amendments permit (1) measuring the change in fair value of the hedged item on the basis of the benchmark rate component of the contractual coupon cash flows determined at hedged inception; (2) measuring the hedged item in a partial-term fair value hedge of interest-rate risk by assuming that the hedged item has a term that reflects only the designated cash flows being hedged; and (3) considering only how changes in the benchmark interest rate affect a decision to settle a prepayable instrument before its scheduled maturity in calculating the change in the fair value of the hedged item attributable to interest-rate risk. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2018. Early application is permitted although the Bank does not intend to adopt this guidance early. The amended presentation and disclosure guidance will be applied prospectively. The Bank is in the process of evaluating this guidance, and its impact on the Bank’s financial condition and results of operations has not yet been determined. Premium Amortization on Purchased Callable Debt Securities. In March 2017, the FASB issued guidance intended to better align the amortization period of callable debt securities held at a premium to expectations incorporated in market pricing on the underlying securities. This guidance shortens the amortization period for certain callable debt securities held at a premium by requiring that the premium be amortized to the earliest call date. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2018. Early application is permitted although the Bank does not intend to adopt this guidance early. This guidance will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the fiscal year in which this guidance is adopted. The Bank is in the process of evaluating this guidance, but this guidance is not expected to have a material impact on the Bank’s financial condition or results of operations. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued guidance intended to improve the timeliness of recording credit losses on loans and other financial instruments held by financial institutions and other organizations. This guidance requires all expected credit losses for financial assets that are held at the reporting date to be measured based on historical experience, current conditions, and reasonable and supportable forecasts. Credit losses related to available-for-sale securities will be recorded through an allowance for credit losses. Additionally, this guidance amends the accounting for purchased financial assets with credit deterioration and requires enhanced disclosures that provide additional information to help financial statement users better understand significant estimates and judgments. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2019. Early application is permitted for the interim and annual periods beginning after December 15, 2018, although the Bank does not intend to adopt this guidance early. While the Bank is in the process of evaluating this guidance, its adoption may result in an increase in the allowance for credit losses, but its impact on the Bank’s financial condition and results of operations will depend upon the composition of the financial assets held by the Bank at the adoption date, as well as the economic conditions and forecasts at that time. Leases. In February 2016, the FASB issued guidance on accounting for leases and disclosure of key information about leasing arrangements. This guidance requires lessees to recognize the following for all operating and finance leases at the commencement date: (1) a lease liability, which is the obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset representing the lessee’s right to use, or control the use of, the underlying asset for the lease term. A lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities for short-term leases with a term of 12 months or less. This guidance does not fundamentally change lessor accounting; however, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2018. Early application is permitted although the Bank does not intend to adopt this guidance early. This guidance will be applied on a modified retrospective basis for leases existing at, or entered into after, the earliest period presented in the financial statements. The adoption of this guidance is not expected to have a material impact on the Bank’s financial condition or results of operations. Recently Adopted Accounting Guidance Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. In March 2017, the FASB issued guidance intended to improve the presentation of net periodic pension and postretirement benefit costs. This guidance requires an employer to report the service cost component in the same line item as compensation costs on the income statement, while the other components of net benefit cost are required to be presented separately from the service cost component. Additionally, this guidance only allows the service cost component to be eligible for capitalization, when applicable. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018. For the presentation of the service cost component and the other components of net benefit cost on the income statement, this guidance was applied retrospectively. For the capitalization of the service cost component of net benefit cost in assets, this guidance was applied prospectively on and after the effective date. The adoption of this guidance did not have a material impact on the Bank's financial condition or results of operations. Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued guidance intended to reduce diversity in practice in how cash receipts and cash payments are presented and classified on the Statements of Cash Flows for certain transactions. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018. The adoption of this guidance did not have an impact on the Bank’s financial condition, results of operations, or cash flows. Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued guidance designed to improve the recognition, measurement, presentation, and disclosure of financial instruments through targeted changes to existing GAAP. This guidance requires, among other things, the following: (1) use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (3) separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, these changes eliminate the requirement to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. This guidance became effective for the Bank for the interim and annual periods beginning on January 1, 2018. The adoption of this guidance did not have an impact 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 this 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. Financial instruments and other contractual rights are excluded from the scope of this new revenue recognition guidance and continue to be accounted for under existing guidance. In 2017 and 2016, the FASB issued amendments, which did not change the core principle of the original guidance, but clarified certain aspects of the guidance. This guidance became effective for the Bank for the interim and annual reporting periods beginning on January 1, 2018. Because the majority of the Bank’s financial instruments and other contractual rights that generate revenue are covered by other GAAP, this guidance did not have an impact on the Bank’s financial condition or results of operations. |
Cash and Due from Banks |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks |
Trading Securities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Securities | Trading Securities Major Security Types. The following table presents trading securities.
The following table presents net losses on trading securities.
|
Available-for-sale Securities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Available-for-sale Securities Major Security Type. The following table presents information on private-label residential mortgage-backed securities (MBS) that are classified as available-for-sale.
____________ (1) Amounts represent the non-credit portion of an other-than-temporary impairment during the life of the security. The following table presents private-label residential MBS that are classified as available-for-sale with unrealized losses. The unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position.
Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as available-for-sale.
The following table presents private-label residential MBS that are classified as available-for-sale and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC.
|
Held-to-maturity Securities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity Securities, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity Securities | Held-to-maturity Securities Major Security Types. The following table presents held-to-maturity securities.
The following tables present held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and by the length of time that the individual securities have been in a continuous unrealized loss position.
Redemption Terms. The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.
Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as held-to-maturity.
The following table presents private-label residential MBS that are classified as held-to-maturity and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC.
|
Other-than-temporary Impairment |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than Temporary Impairment Losses, Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other-than-temporary Impairment | Other-than-temporary Impairment Mortgage-backed Securities. The Bank’s investments in MBS consist of U.S. agency guaranteed securities and senior tranches of private-label MBS. The Bank has increased exposure to the risk of loss on its investments in MBS when the loans backing the MBS exhibit high rates of delinquency and foreclosures, as well as losses on the sale of foreclosed properties. To reduce its risk of loss on such securities, the Bank regularly requires high levels of credit enhancements from the structure of the collateralized mortgage obligation. 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 that the Bank purchased will take a loss. The Bank does not purchase credit enhancements for its MBS from monoline insurance companies. Non-private-label MBS. The unrealized losses related to U.S. agency MBS are caused by interest rate changes, not credit quality. These securities are guaranteed by government agencies or government-sponsored enterprises and the Bank does not expect these securities to be settled at a price less than their amortized cost basis. In addition, the Bank does not intend to sell these investments and it is not more likely than not that the Bank will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The Bank does not consider these investments to be other-than-temporarily impaired as of December 31, 2017. 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 using 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 (CBSA), 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 December 31, 2017 included a short-term housing price forecast with projected changes ranging from a decrease of five percent to an increase of 12 percent over the 12 month period beginning October 1, 2017. For the vast majority of markets, the projected short-term housing price changes range from an increase of two percent to an increase of six percent. Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data. The month-by-month projections of future loan performance derived from the first model, which reflect projected prepayments, defaults, and loss severities, were then input into a second model. The second model 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. 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 presents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2017, as well as the related current credit enhancement.
____________ (1) The classification of securities is based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. 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.
|
Advances |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances | Advances Redemption Terms. The Bank had advances outstanding at interest rates ranging from zero percent to 7.54 percent as of December 31, 2017. Advances with interest rates of zero percent are AHP and EDGE subsidized advances and certain structured advances. The following table presents the Bank’s advances outstanding.
The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $17,920 and $27,459 as of December 31, 2017 and 2016, respectively. The following table presents advances by year of contractual maturity or next call date for callable advances.
Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $693 and $1,497 as of December 31, 2017 and 2016, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date.
Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances.
Credit Risk. The Bank’s potential credit risk from advances is concentrated in commercial banks, savings institutions, 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 $71,440 and $67,493 as of December 31, 2017 and 2016, respectively. This concentration represented 69.9 percent and 68.7 percent of total advances outstanding as of December 31, 2017 and 2016, 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 December 31, 2017 and 2016. No advance was past due as of December 31, 2017 and 2016. |
Mortgage Loans Held for Portfolio |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Held for Portfolio | Mortgage Loans Held for Portfolio The Bank purchased fixed-rate residential mortgage loans directly from PFIs, who service and credit enhance the residential mortgage loans that they sold to the Bank. The Bank ceased purchasing these loans directly from PFIs in 2008. The Bank may also acquire fixed-rate residential mortgage loans through participations in eligible mortgage loans purchased from other FHLBanks. The following table presents information on mortgage loans held for portfolio by contractual maturity at the time of purchase.
The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type.
The Bank records credit enhancement fees related to residential mortgage loans as a reduction to mortgage loan interest income. |
Allowance for Credit Losses |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses The following table presents the activity in the allowance for credit losses related to conventional residential mortgage loans.
The following table presents the recorded investment in conventional residential mortgage loans by impairment methodology.
Key credit quality indicators for mortgage loans include the migration of past due mortgage loans, nonaccrual mortgage loans, and mortgage loans in process of foreclosure. The following tables present the Bank’s recorded investment in mortgage loans by these key credit quality indicators.
____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage 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.
____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage 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 that would not have been considered otherwise is granted to a borrower for economic or legal reasons related to the borrower’s financial difficulties. 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. In the event the Bank grants a concession, the borrower’s monthly payment is restructured for a period of up to 36 months to try to achieve a target housing expense ratio of not more than 31.0 percent of their qualifying income. To restructure the loan, the outstanding principal balance is first re-amortized to reflect a principal and interest payment for a term not to exceed 40 years. This results 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 below the original note rate in 0.125 percent increments to a floor rate of 3.00 percent until the target 31.0 percent housing expense ratio is met. These reductions in principal and interest payments are for the temporary payment modification period of up to 36 months. Additionally, a conventional 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 following table presents the Bank’s recorded investment balance in mortgage loans classified as troubled debt restructurings.
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 years ended December 31, 2017, 2016, and 2015. |
Consolidated Obligations |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Obligations | Consolidated Obligations Consolidated obligations, consisting of consolidated obligation bonds and discount notes, are the joint and several obligations of the FHLBanks and are backed only by the financial resources of the FHLBanks. The Bank is primarily liable for its portion of consolidated obligations (i.e., those issued on its behalf) and also is jointly and severally liable with the other 10 FHLBanks for the payment of principal and interest on all consolidated obligations of each of the FHLBanks. The Finance Agency, at its discretion, may require any FHLBank to make principal or interest payments due on any consolidated obligation, whether or not the consolidated obligation represents a primary liability of such FHLBank. Although it has never occurred, to the extent that an FHLBank makes any payment on a consolidated obligation on behalf of another FHLBank that is primarily liable for such consolidated obligation, Finance Agency regulations provide that the paying FHLBank is entitled to reimbursement from the noncomplying FHLBank for any payments made on its behalf and any other associated costs (including interest to be determined by the Finance Agency). However, if the Finance Agency determines that the noncomplying FHLBank is unable to satisfy its repayment obligations, the Finance Agency may allocate the outstanding liabilities of the noncomplying FHLBank among the remaining FHLBanks on a pro rata basis in proportion to each FHLBank’s participation in all consolidated obligations outstanding. The Finance Agency reserves the right to allocate the outstanding liabilities for the consolidated obligations among the FHLBanks in any other manner it may determine to ensure that the FHLBanks operate in a safe and sound manner. The par value of the FHLBanks’ outstanding consolidated obligations, including consolidated obligations issued by the Bank, was $1,034,260 and $989,311 as of December 31, 2017 and 2016, respectively. Regulations require each FHLBank to maintain, in the aggregate, unpledged qualifying assets equal to that FHLBank’s consolidated obligations outstanding. Qualifying assets are defined as cash; secured advances; obligations of or fully guaranteed by the United States; mortgages guaranteed or insured by the United States or its agencies; participations, mortgages, or other securities of or issued by certain government-sponsored enterprises; and such securities as fiduciary and trust funds may invest in under the laws of the state in which the FHLBank is located. The Bank held unpledged qualifying assets of $146,018 and $138,097 as of December 31, 2017 and 2016, respectively, compared to a book value of $137,662 and $129,939 in consolidated obligations as of December 31, 2017 and 2016, respectively. General Terms. Consolidated obligations are issued with either fixed- or variable-rate coupon payment terms that use a variety of indices for interest-rate resets including the London Interbank Offered Rate (LIBOR), Constant Maturity Treasury, and others. To meet the expected specific needs of certain investors in consolidated obligations, both fixed- and variable-rate consolidated obligation bonds may contain certain features, which may result in complex coupon payment terms and call options. When such consolidated obligations are issued, the Bank generally enters into derivatives containing offsetting features that, in effect, convert the terms of the consolidated obligation bond to those of a simple variable-rate consolidated obligation bond. These consolidated obligations, beyond having fixed-rate or simple variable-rate coupon payment terms, may also have the following broad term regarding either principal repayment or coupon payment terms: Optional Principal Redemption Consolidated Obligation Bonds (callable bonds) that the Bank may redeem in whole or in part at its discretion on predetermined call dates according to the terms of the consolidated obligation bond offerings. With respect to interest payments, consolidated obligation bonds may have the following term in addition to fixed-rate and simple variable-rate payment terms: Step-up/down Consolidated Obligation Bonds have coupons at fixed rates for specified intervals over the lives of the consolidated obligation bonds. At the end of each specified interval, the coupon rate increases (or decreases) or steps up (or steps down). These consolidated obligation bond issues generally contain call provisions enabling the bonds to be called at the Bank’s discretion. Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type.
Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity.
The following table presents the Bank’s consolidated obligation bonds outstanding by call feature.
The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date.
Consolidated Obligation Discount Notes. Consolidated obligation discount notes are issued to raise short-term funds and have 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 following table presents the Bank’s participation in consolidated obligation discount notes.
|
Afforable Housing Program |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assessments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affordable Housing Program | Affordable Housing Program Affordable Housing Program. Annually, each FHLBank must set aside 10 percent of its income subject to assessment for the AHP, or such additional prorated sums as may be required so that the aggregate annual contribution of the FHLBanks is not less than $100. For purposes of the AHP calculation, each FHLBank’s income subject to assessment is defined as the individual FHLBank’s net income before assessments, plus interest expense related to mandatorily redeemable capital stock. The Bank accrues this expense monthly based on its income subject to assessment. The Bank reduces the AHP liability as members use subsidies. If the Bank experienced a net loss during a quarter but had income subject to assessment in subsequent quarters, it would be required to contribute additional amounts to meet its calculated annual obligation based on the Bank’s year-to-date income subject to assessment. If the Bank experienced a net loss for a full year, the Bank would have no obligation to the AHP for the year since each FHLBank’s required annual AHP contribution is limited to its annual income subject to assessment. If the aggregate of 10 percent of income subject to assessment for all FHLBanks was less than $100, each FHLBank would be required to contribute additional amounts so that the aggregate contribution of the FHLBanks equals the required $100. Each FHLBanks’ prorated contribution would be determined based on its income in relation to the income of all FHLBanks for the previous year. There was no shortfall in the years ended December 31, 2017, 2016, or 2015. If an FHLBank finds that its required contributions are contributing to the financial instability of that FHLBank, it may apply to the Finance Agency for a temporary suspension of its contributions. No FHLBank made such an application in the years ended December 31, 2017, 2016, or 2015. The Bank had outstanding principal in AHP-related advances of $24 and $27 as of December 31, 2017 and 2016, respectively. The following table presents a rollforward of the Bank’s AHP liability.
|
Capital and Mandatorily Redeemable Capital Stock |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital and Mandatorily Redeemable Capital Stock | Capital and Mandatorily Redeemable Capital Stock Capital. The Bank is subject to the following three regulatory capital requirements under its capital plan, the FHLBank Act, and Finance Agency regulations. Risk-Based Capital. The Bank must maintain, at all times, permanent capital in an amount at least equal to the sum of its credit risk capital requirement, its market risk capital requirement, and its operations risk capital requirement, calculated in accordance with the rules and regulations of the Finance Agency. Permanent capital is defined by the FHLBank Act and regulations as the sum of retained earnings and the amounts paid-in for Class B stock. Only permanent capital satisfies the risk-based capital requirement. The Finance Agency may require the Bank to maintain a greater amount of permanent capital than is required by the risk-based capital requirement as defined. Total Regulatory Capital. The FHLBank Act requires the Bank to maintain total regulatory capital in an amount equal to at least four percent of total assets at all times. Total regulatory capital is defined as the sum of permanent capital, the amount paid-in for Class A stock (if any), the amount of the Bank’s general allowance for losses (if any), and the amount of any other instruments identified in the capital plan and approved by the Finance Agency. The Bank has not issued any Class A stock, has no general allowance for losses, and has no other instruments identified in the capital plan and approved by the Finance Agency; therefore, the Bank’s total regulatory capital is equal to its permanent capital as of December 31, 2017 and 2016. Total regulatory capital does not include accumulated other comprehensive income but does include mandatorily redeemable capital stock. Leverage Capital. The FHLBank Act requires the Bank to maintain leverage capital in an amount equal to at least five percent of total assets at all times. Leverage capital is defined as the sum of permanent capital weighted 1.5 times and all other capital weighted 1.0 times. Although mandatorily redeemable capital stock is not included in capital for financial reporting purposes, such outstanding stock is considered capital for determining compliance with these regulatory capital requirements. The following table presents the Bank’s compliance with the Finance Agency’s regulatory capital rules and requirements.
The Bank offers two subclasses of Class B stock, each of which is issued, redeemed, and repurchased at a par value of $100 per share. Member shares cannot be purchased or sold except between the Bank and its members at $100 per share par value. Shares of subclass B1 capital stock are issued to meet the membership stock requirement under the capital plan and shares of subclass B2 capital stock are issued to meet the activity-based stock requirement under the capital plan. Activity-based stock held by a member is that amount of subclass B2 capital stock that the member is required to own for as long as certain transactions between the Bank and the member remain outstanding. The manner in which the activity-based stock requirement is determined under the capital plan is set forth below. The minimum stock requirement for each member is the sum of the membership stock requirement and the activity-based stock requirement. The capital plan permits the Bank’s board of directors to set the membership and activity-based stock requirements within a range as set forth in the capital plan. As of December 31, 2017, the membership stock requirement was an amount of subclass B1 capital stock equal to 0.09 percent (nine basis points) of the member’s total assets as of December 31, 2016, subject to a cap of $15. The membership stock requirement is recalculated using the member’s total assets as of the preceding calendar year-end at least annually by March 31. As of December 31, 2017, the activity-based stock requirement was an amount of subclass B2 capital stock equal to the sum of the following:
The activity-based stock requirement also may include a percentage of any outstanding balance of acquired member assets (such as residential mortgage loan assets) although this percentage was set at zero as of December 31, 2017 and 2016. The FHLBank Act and Finance Agency regulations require that the minimum stock requirement for members must be sufficient to enable the Bank to meet its minimum regulatory capital requirement. Therefore, from time to time, the Bank’s board of directors may adjust the membership stock requirement and the activity-based stock requirement within specified ranges set forth in the capital plan. Any adjustment outside the ranges would require an amendment to the capital plan and Finance Agency approval. Each member is required to comply promptly with any adjustment to the minimum stock requirement. The FHLBank Act provides that the Bank may repurchase, at its sole discretion, any member’s capital stock investment that exceeds the required minimum amount (excess capital stock). Under certain circumstances, Finance Agency rules limit the ability of the Bank to create member excess stock. The Bank may not pay dividends in the form of capital stock or issue excess capital stock to any member if the Bank’s excess capital stock exceeds one percent of its total assets or if the issuance of excess capital stock would cause the Bank’s excess capital stock to exceed one percent of its total assets. As of December 31, 2017 and 2016, the Bank’s excess capital stock did not exceed one percent of its total assets. A member may redeem its excess Class B capital stock at par value payable in cash five years after providing written notice to the Bank. The Bank, at its option, may repurchase a member’s excess capital stock before expiration of the five-year notice period. The Bank’s authority to redeem or repurchase capital stock is subject to a number of limitations. Under Finance Agency rules, the Bank’s board of directors may, but is not required to, declare and pay non-cumulative dividends in cash or capital stock from unrestricted retained earnings and current earnings. All shares of capital stock share in any dividend without preference. Dividends are computed on the average daily balance of capital stock outstanding during the relevant time period. The Bank may not pay a dividend if the Bank is not in compliance with any of its regulatory capital requirements or if a payment would cause the Bank to fail to meet any of its regulatory capital requirements. The Bank paid cash dividends in the amounts of $238, $226, and $207 during the years ended December 31, 2017, 2016, and 2015, respectively. The concentration of the Bank’s regulatory capital stock to its 10 largest shareholders was $3,183, or 61.8 percent, and $3,018, or 60.9 percent, as of December 31, 2017 and 2016, respectively. The following table presents the activity in mandatorily redeemable capital stock.
As of December 31, 2017, the Bank’s outstanding mandatorily redeemable capital stock consisted of B1 membership stock and B2 activity-based stock. The Bank is not required to redeem activity-based stock until the later of the expiration of the redemption period, which is five years after notification is received, or until the activity no longer remains outstanding. The following table presents 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.
|
Accumulated Other Comprehensive Income |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table presents the components comprising accumulated other comprehensive income.
____________ (1) Included in Compensation and benefits on the Statements of Income.
|
Pension and Post Retirement Benefit Plans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Post Retirement Benefit Plans | Pension and Postretirement Benefit Plans The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra Plan), a tax-qualified defined-benefit pension plan. The Pentegra Plan is treated as a multiemployer plan for accounting purposes but operates as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, certain multiemployer plan disclosures are not applicable to the Pentegra Plan. Under the Pentegra Plan, contributions made by a participating employer may be used to provide benefits to employees of other participating employers because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer. Also, in the event a participating employer is unable to meet its contribution requirements, the required contributions for the other participating employers could increase proportionately. The Pentegra Plan covers substantially all officers and employees of the Bank hired before March 1, 2011. The Pentegra Plan operates on a fiscal year from July 1 through June 30. The Pentegra Plan files one Form 5500 on behalf of all employers who participate in the plan. The Employer Identification Number is 13-5645888, and the three-digit plan number is 333. There are no collective bargaining agreements in place at the Bank. The Pentegra Plan’s annual valuation process includes separately calculating the plan’s funded status and the funded status of each participating employer. The funded status is defined as the fair value of assets divided by the funding target (100 percent of the present value of all benefit liabilities accrued at that date). As permitted by ERISA, the Pentegra Plan accepts contributions for the prior plan year up to eight and a half months after the asset valuation date. As a result, the fair value of assets at the valuation date (July 1) will increase by any subsequent contributions designated for the immediately preceding plan year ended June 30. The most recent Form 5500 available for the Pentegra Plan is for the year ended June 30, 2016. The contributions made by the Bank during 2017 and 2016 were more than five percent of the total contributions for each of the Pentegra Plan years ended June 30, 2016 and 2015. The following table presents information on the net pension costs and funded status of the Pentegra Plan.
____________ (1) The Pentegra Plan’s funded status as of July 1 is preliminary and may increase because the plan’s participants are permitted to make contributions through March 15 of the following year (i.e. through March 15, 2018 for the plan year ended June 30, 2017 and through March 15, 2017 for the plan year ended June 30, 2016). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2019 for the plan year July 1, 2017 through June 30, 2018 and April 2018 for the plan year July 1, 2016 through June 2017. Form 5500 was filed in April 2017 for the plan year July 1, 2015 through June 30, 2016. The Bank also participates in a qualified defined contribution plan. The Bank’s contribution to this plan is equal to a percentage of voluntary contributions, subject to certain limitations, plus contributions for all employees hired on or after March 1, 2011. The Bank contributed $3 to this plan during the year ended December 31, 2017, and $2 during each of the years ended December 31, 2016 and 2015. The Bank offers a supplemental nonqualified defined contribution retirement plan to eligible executives. The Bank’s contribution to this plan is equal to a percentage of voluntary contributions. The Bank contributions to this plan were not material during each of the years ended December 31, 2017, 2016, and 2015. In addition, the Bank maintains a nonqualified deferred compensation plan, available to Bank directors and officers at the senior vice president level and above, which is, in substance, an unfunded supplemental savings plan. The plan’s liability consists of the accumulated compensation deferrals and accrued earnings on those deferrals. The Bank’s minimum obligation from this plan was $3 as of December 31, 2017 and 2016. Operating expense includes deferred compensation and accrued earnings of $1 during each of the years ended December 31, 2017, 2016, and 2015. The Bank offers a supplemental nonqualified defined benefit pension plan to eligible executives and a postretirement health benefit plan to eligible retirees. There are no funded plan assets that have been designated to provide supplemental retirement plan or postretirement health benefits. Amounts recognized in other liabilities (funded status) on the Statements of Condition for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan were $65 and $56 as of December 31, 2017 and 2016, respectively. The net periodic benefit costs recognized in “Compensation and benefits” on the Statements of Income for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan were $6 for each of the years ended December 31, 2017, 2016, and 2015. The amount recognized in other comprehensive income (loss) related to pension and postretirement benefit plans on the Statements of Comprehensive Income for the Bank’s supplemental defined benefit pension plan and postretirement health benefit plan was a loss of $4, income of less than $1, and $3 for the years ended December 31, 2017, 2016, and 2015, respectively. |
Derivatives and Hedging Activities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 on its interest-bearing liabilities that finance these assets. 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 that it is willing to accept. In addition, the Bank monitors the risk to its interest income, net interest margin, and average maturity of its interest-earning assets and funding sources. 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. The Bank enters into derivatives to manage the interest-rate risk exposure that is inherent in its otherwise unhedged assets and funding sources, to achieve the Bank’s risk management objectives, and to act as an intermediary between its members and counterparties. Finance Agency regulations and the Bank’s risk management policy prohibit the trading or speculative use of these derivative instruments and limit credit risk arising from these instruments. The use of derivatives is an integral part of the Bank’s financial management strategy. The most common ways in which the Bank uses derivatives are to:
Application of Derivatives General. The Bank designates derivative instruments in the following three ways: (1) as a fair value hedge of an underlying financial instrument or a firm commitment; (2) as an intermediary transaction; or (3) as a non-qualifying hedge for purposes of asset or liability management. The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies. The Bank transacts most of its derivatives with large banks and major broker-dealers. Some of these banks and broker-dealers or their affiliates buy, sell, and distribute consolidated obligations. The Bank’s over-the-counter derivatives transactions may either be (1) uncleared derivatives, which are executed bilaterally with a counterparty; or (2) cleared derivatives, which are cleared through a Futures Commission Merchant (clearing agent) with a Derivatives Clearing Organization (Clearinghouse). Once a derivatives transaction has been accepted for clearing by a Clearinghouse, the executing counterparty is replaced with the Clearinghouse as the counterparty. The Bank is not a derivatives dealer and does not trade derivatives for short-term profit. The Bank uses derivatives when they are considered to be the most cost-effective alternative to achieve the Bank’s long-term financial and risk management objectives. Accordingly, the Bank may enter into derivatives that do not qualify for hedge accounting (non-qualifying hedges). Types of Derivatives The Bank may use the following derivatives to reduce funding costs and to manage its exposure to interest-rate risks inherent in the normal course of business. Interest-Rate Swaps. An interest-rate swap is an agreement between two entities to exchange cash flows in the future. The agreement sets the dates on which the cash flows will be exchanged and the manner in which the cash flows will be calculated. One of the simplest forms of an interest-rate swap involves the promise by one party to pay cash flows equivalent to the interest on a notional principal amount at a predetermined fixed rate for a given period of time. In return for this promise, this party receives cash flows equivalent to the interest on the same notional principal amount at a variable rate for the same period of time. The variable rate received or paid by the Bank in most derivative transactions agreements is LIBOR. Swaptions. A swaption is an option on a swap that gives the buyer the right to enter into a specified interest-rate swap at a certain time in the future. When used as a hedge, a swaption can protect the Bank against future interest rate changes when it is planning to lend or borrow funds in the future. The Bank may enter into both payer swaptions and receiver swaptions. A payer swaption is the option to make fixed interest payments at a later date, and a receiver swaption is the option to receive fixed interest payments at a later date. Interest-Rate Cap and Floor Agreements. In an interest-rate cap agreement, a cash flow is generated if the price or rate of an underlying variable rises above a certain threshold (or cap) price. In an interest-rate floor agreement, a cash flow is generated if the price or rate of an underlying variable falls below a certain threshold (or floor) price. Caps may be used in conjunction with liabilities, and floors may be used in conjunction with assets. Caps and floors are designed to protect against the interest rate on a variable-rate asset or liability rising above or falling below a certain level. Types of Hedged Items At inception, the Bank documents all relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to (1) assets and liabilities on the Statements of Condition; or (2) firm commitments. The Bank also formally assesses (both at the hedge’s inception and at least quarterly on an ongoing basis) whether the derivatives that it uses in hedging relationships have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives may be expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. Consolidated Obligations. While consolidated obligations are the joint and several obligations of the FHLBanks, each FHLBank has consolidated obligations for which it is the primary obligor. The Bank enters into derivatives to hedge the interest-rate risk associated with its specific debt issuances in conjunction with the associated interest-rate risk on advances. The Bank manages the risk arising from changing market prices and volatility of a consolidated obligation by matching the cash inflow on the derivative with the cash outflow on the consolidated obligation. For instance, in a typical transaction, fixed-rate consolidated obligations are issued for the Bank, and the Bank simultaneously enters into a matching derivative in which the counterparty pays fixed cash flows to the Bank designed to mirror cash outflows that the Bank pays on the consolidated obligation in timing and amount. The Bank pays a variable cash flow that closely matches the interest payments it receives on short-term or variable-rate advances (typically one- or three-month LIBOR). These transactions are typically treated as fair- value hedges. This intermediation between the capital and swap markets permits the Bank to raise funds at lower costs than otherwise would be available through the issuance of simple fixed-rate consolidated obligations in the capital markets. Advances. The Bank offers a variety of advance structures to meet members’ funding needs. These advances may have maturities of up to 30 years with variable or fixed rates and may include early termination features or options. The Bank may use derivatives to adjust the repricing and/or options characteristics of advances in order to more closely match the characteristics of the Bank’s funding liabilities. In general, whenever a member executes a fixed- or a variable-rate advance with embedded options, the Bank simultaneously will execute a derivative with terms that offset the terms and embedded options in the advance. For example, the Bank may hedge a fixed-rate advance with an interest-rate swap in which the Bank pays a fixed-rate coupon and receives a variable-rate coupon, effectively converting the fixed-rate advance to a variable-rate advance. This type of hedge is typically treated as a fair-value hedge. Mortgage Assets. The Bank has invested in mortgage assets. The prepayment options embedded in mortgage assets may shorten or lengthen the expected repayment of these investments, depending on changes in estimated prepayment speeds. The Bank manages the interest-rate and prepayment risk associated with mortgages through a combination of debt issuance and derivatives. The Bank issues both callable and non-callable debt to achieve cash flow patterns and liability durations similar to those expected on the mortgage loans. The Bank may use derivatives to match the expected prepayment characteristics of the mortgages. Options (interest-rate caps, interest-rate floors and/or options) also may be used to hedge prepayment risk on the mortgages. Many options are not identified to specific mortgages and therefore, do not receive fair-value or cash-flow hedge accounting treatment. The Bank also may purchase interest-rate caps and floors, swaptions, callable swaps, calls, and puts to minimize the prepayment risk embedded in the mortgage loans. Although these derivatives are valid non-qualifying hedges against the prepayment risk of the loans, they do not receive either fair-value or cash-flow hedge accounting. These derivatives are marked-to-market through earnings. Firm Commitments. Certain mortgage purchase commitments are considered derivatives. Mortgage purchase commitments are recorded on the balance sheet at fair value, with changes in fair value recognized in current-period earnings. When the mortgage purchase commitment derivative settles, the current fair value of the commitment is included with the basis of the mortgage loan and amortized accordingly. The Bank also may enter into a fair value hedge of a firm commitment for a forward starting advance through the use of an interest-rate swap. In this case, the swap functions as the hedging instrument for both the firm commitment and the subsequent advance. The basis movement associated with the firm commitment is recorded as a basis adjustment of the advance at the time the commitment is terminated and the advance is issued. The basis adjustment is then amortized into interest income over the life of the advance using the level-yield method. Investments. The Bank invests in MBS, U.S. agency obligations, certificates of deposit, and the taxable portion of state or local housing finance agency obligations. The interest-rate and prepayment risk associated with these investment securities are managed through a combination of debt issuance and derivatives. The Bank may manage the prepayment and interest-rate risks by funding investment securities with consolidated obligations that have call features, by hedging the prepayment risk with caps or floors, or by adjusting the duration of the securities by using derivatives to modify the cash flows of the securities. Investment securities may be classified as trading, available-for-sale, or held-to-maturity. The Bank also may manage the risk arising from changing market prices and volatility of investment securities classified as trading by entering into derivatives (non-qualifying hedges) that offset the changes in fair value of these securities. Financial Statement Effect and Additional Financial Information Derivative Notional Amounts. The notional amount of derivatives serves as a factor in determining periodic interest payments or cash flows received and paid. However, the notional amount of derivatives 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 presents the notional amount, fair value of derivative instruments (excluding fair value adjustments related to variation margin on daily settled contracts), and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments, cash collateral, and variation margin for daily settled contracts. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.
___________
(2) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty and effective January 3, 2017, includes fair value adjustments on derivatives for which variation margin is characterized as a daily settled contract. Cash collateral posted and related accrued interest was $507 and $1,061 as of December 31, 2017 and 2016, respectively. Cash collateral received and related accrued interest was $34 and $22 as of December 31, 2017 and 2016, respectively. The following table presents the components of net gains on derivatives and hedging activities as presented on the Statements of Income.
___________ (1)Consists of price alignment amount on derivatives for which variation margin is characterized as daily settled contract. 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.
____________
____________
____________
Managing Credit Risk on Derivatives The Bank is subject to credit risk to its derivative transactions due to the risk of nonperformance by counterparties and manages this 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 uncleared 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 uncleared 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. Certain of the Bank’s uncleared 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 an NRSRO, the Bank may be required to deliver additional collateral on uncleared derivative instruments in net liability positions. The aggregate fair value of all uncleared derivative instruments with credit-risk-related contingent features that were in a net liability position (before cash collateral and related accrued interest) as of December 31, 2017 was $14, for which the Bank had no collateral posted as of December 31, 2017. 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 $9 of collateral at fair value to its uncleared derivative counterparties as of December 31, 2017. 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. The Bank currently utilizes the following two Clearinghouses for all cleared derivative transactions: LCH.Clearnet LLC and CME Clearing. Effective January 3, 2017, CME Clearing made certain amendments to its rulebook changing the legal characterization of variation margin payments to be daily settled payments, rather than collateral. Variation margin on daily settled contracts is netted directly against the derivative’s gross recognized amount. The Bank continues to characterize variation margin payments with LCH.Clearnet LLC as cash collateral. At both Clearinghouses, initial margin is considered cash collateral. Because the Bank is required to post initial and variation margin through the clearing agent to the Clearinghouse, it 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/payments is posted daily through a clearing agent for changes in the fair 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 and the related cash collateral (including initial and certain variation margin) that is received or pledged, plus the 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.
____________ (1) The Bank had net credit exposure of $226 and $346 as of December 31, 2017 and 2016, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.
|
Estimated Fair Values |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 defined under GAAP 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 asset or owes the liability. In general, the transaction price will equal the exit price and therefore, represents 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, 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. 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 liabilities that are carried at fair value or disclosed in the notes to the financial statements. 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. The Bank carried grantor trust assets at fair value hierarchy Level 1 as of December 31, 2017 and 2016. 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. The Bank carried trading securities and derivatives at fair value hierarchy Level 2 as of December 31, 2017 and 2016. Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by limited market activity and reflect the entity’s own assumptions. The Bank carried available-for-sale securities at fair value hierarchy Level 3 as of December 31, 2017 and 2016. 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 within the fair value hierarchy. 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 on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition.
(1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.
____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty. 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).
____________
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 values approximate the carrying values due to the short-term nature and negligible credit risk. Interest-bearing deposits assets and liabilities. The estimated fair values of overnight interest-bearing deposits approximate the carrying values due to the short-term nature and negligible credit risk. Securities purchased under agreements to resell. The estimated fair values are 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 values of overnight federal funds sold approximate the carrying values due to the short-term nature and negligible credit risk. The estimated fair values of term federal funds sold are determined by calculating the present value of the expected future cash flows. The discount rates used in these calculations are the interest rates for federal funds with similar terms and represent market observable interest rates. Investment securities. The Bank obtains prices from multiple 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, the following: 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 its pricing vendors to confirm and further augment its understanding of the vendors’ pricing processes, methodologies, and control procedures for U.S. 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 “resultant” 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 resultant price. Alternatively, if the analysis does not provide evidence that an outlier is more representative of the fair value and the resultant price is the best estimate, then the resultant 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 resultant price, and the final price is determined by an evaluation of all outlier prices as described above. Multiple third-party 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 as of December 31, 2017 and 2016. 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 the Bank’s additional analysis in those instances in which there were outliers or significant yield variances), the Bank believes that its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further that the fair value measurements are classified appropriately in the fair value hierarchy. Based on the lack of significant market activity for private-label MBS, the fair value measurement for those securities were classified as Level 3 within the fair value hierarchy as of December 31, 2017 and 2016. Advances. The Bank determines the estimated fair values of advances by calculating the present value of expected future cash flows from the advances, 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. 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 (See “Consolidated obligations” paragraph within this note for a discussion of 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 Finance Agency’s advances regulations, advances with a maturity or repricing period greater than six months require a prepayment fee sufficient enough 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. Mortgage loans held for portfolio. The estimated fair values of 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. Accrued interest receivable and payable. The estimated fair values approximate the carrying values due to the short-term nature and negligible credit risk. Derivative assets and liabilities. The Bank calculates the fair values of derivatives using a discounted cash flow analysis. The Bank’s discounted cash flow analysis utilizes market-observable inputs. Inputs by class of derivatives are as follows:
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 uncleared 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 December 31, 2017 and 2016. Grantor trust assets. Grantor trust assets, recorded in “Other assets” on the Statements of Condition, are carried at estimated fair value based on quoted market prices. Consolidated obligations. The Bank calculates the estimates fair values of consolidated obligation bonds and discount notes by calculating the present value of future cash flows using 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 and also includes estimated dividends earned at the time of reclassification from capital to liabilities, until such amount is paid. Capital stock can be acquired by members only at par value and redeemed by the Bank at par value. Capital stock is not traded and no market mechanism exists for the exchange of capital stock outside the cooperative structure. The following estimated fair value amounts have been determined by the Bank using available market information and the Bank’s best judgment of appropriate valuation methods. These estimates are based on pertinent information available to the Bank as of December 31, 2017 and 2016. 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 following tables present the carrying values and estimated fair values of the Bank’s financial instruments.
____________
____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.
|
Commitments and Contingencies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Consolidated obligations are backed only by the financial resources of the FHLBanks. At any time, the Finance Agency may require any FHLBank to make principal or interest payments due on any consolidated obligation, 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 $896,441 and $859,361 as of December 31, 2017 and 2016, respectively, exclusive of the Bank’s own outstanding consolidated obligations. 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 as of December 31, 2017 and 2016. Accordingly, the Bank has not recognized a liability for its joint and several obligation related to the other FHLBanks’ consolidated obligations as of December 31, 2017 and 2016. The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations.
The Bank issues standby letters of credit on behalf of its members to support certain obligations of the members to third-party beneficiaries. Standby letters of credit may be offered to assist members in facilitating residential housing finance, community lending, and asset-liability management, and to provide liquidity. In particular, members often use standby letters of credit as collateral for deposits from federal and state government agencies. Standby letters of credit are executed for members for a fee. If the Bank is required to make a payment for a beneficiary's draw, the member either reimburses the Bank for the amount drawn or, subject to the Bank's discretion, the amount drawn may be converted into a collateralized advance to the member and will require a corresponding activity-based capital stock purchase. However, standby letters of credit usually expire without being drawn upon. 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 result in an internal credit rating, which focuses primarily on an institution’s overall financial health and takes into account the 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 that 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 carrying value of the guarantees related to standby letters of credit is recorded in “Other liabilities” on the Statements of Condition and amounted to $119 and $135 as of December 31, 2017 and 2016, respectively. Based on the Bank’s credit analyses and collateral requirements, the Bank does not deem it necessary to record any additional liability on the Statements of Condition for these commitments. The Bank may enter into commitments that unconditionally obligate it to purchase mortgage loans. Commitments are generally for periods not exceeding 91 days. Delivery commitments are recorded at fair value as “Derivative assets” or “Derivative liabilities” on the Statements of Condition. The Bank charged to operating expenses net rental costs of $1 for the year ended December 31, 2017, and $2 for each of the years ended December 31, 2016 and 2015. Lease agreements for Bank premises generally provide for increases in the basic rentals resulting from increases in property taxes and maintenance expenses. Such increases are not expected to have a material effect on the Bank’s results of operations. The Bank is subject to legal proceedings arising in the normal course of business. After consultation with legal counsel, management does not anticipate, as of the date of the financial statements, that the ultimate liability, if any, arising out of these matters will have a material effect on the Bank’s financial condition or results of operations.
|
Transactions with Shareholders |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions With Shareholders [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TransactionsWithShareholders | Transactions with Shareholders The Bank is a cooperative whose member institutions own substantially all of the capital stock of the Bank. Former members and certain non-members, which own the Bank’s capital stock as a result of a merger or acquisition of a member of the Bank, own the remaining capital stock to support business transactions still carried on the Bank’s Statements of Condition. All holders of the Bank’s capital stock receive dividends on their investments, to the extent declared by the Bank’s board of directors. All advances are issued to members and eligible housing associates under the FHLBank Act, and mortgage loans held for portfolio are purchased from members. The Bank also maintains demand deposit accounts primarily to facilitate settlement activities that are related directly to advances and mortgage loan purchases. Transactions with any member that has an officer or director who is also a director of the Bank are subject to the same Bank policies as transactions with other members. Related Parties. In accordance with GAAP, financial statements are required to disclose material related-party transactions other than compensation arrangements, expense allowances, or other similar items that occur in the ordinary course of business. Under GAAP, related parties include owners of more than 10 percent of the voting interests of the Bank. Due to limits on member voting rights under the FHLBank Act and Finance Agency regulations, no member owned more than 10 percent of the total voting interests. Therefore, the Bank had no such related party transactions required to be disclosed for the periods presented. Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank’s total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding.
|
Transactions with Other FHLBanks |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Other FHLBanks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions With Other FHLBanks | Transactions with Other FHLBanks The Bank’s activities with other FHLBanks are summarized below. Loans to and Borrowings from Other FHLBanks. Occasionally, the Bank loans short-term funds to or borrows short-term funds from the other FHLBanks. There was a $200 loan outstanding to FHLBank Des Moines and no outstanding borrowings from other FHLBanks as of December 31, 2017. There were no outstanding loans to or borrowings from the other FHLBanks as of December 31, 2016. Interest income on loans to and interest expense on borrowings from the other FHLBanks were not material during each of the years ended December 31, 2017, 2016, and 2015. The following table presents the cash flow activities for loans to and borrowings from other FHLBanks.
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | On February 1, 2018, the Bank’s board of directors approved a cash dividend for the fourth quarter of 2017. The Bank paid the fourth quarter 2017 dividend on February 6, 2018, in the amount of $65. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) requires the Bank’s management to make subjective assumptions and estimates, which are based upon the information then available to the Bank and are inherently uncertain and subject to change. These assumptions and estimates may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. Actual results could differ significantly from these estimates. | ||||||||||||
Estimated Fair Values | Estimated Fair Values. The estimated fair value amounts, recorded on the Statements of Condition and in the note disclosures for the periods presented, have been determined by the Bank using available market and other pertinent information and reflect the Bank’s best judgment of appropriate valuation methods. Although the Bank uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any valuation technique. Therefore, these fair values may not be indicative of the amounts that would have been realized in market transactions at the reporting dates. | ||||||||||||
Financial Instruments Meeting Netting Requirements | Financial Instruments Meeting Netting Requirements. The Bank has certain financial instruments, including derivative instruments and securities purchased under agreements to resell, that are subject to offset under master netting agreements or by operation of law. The Bank has elected to offset its derivative asset and liability positions, as well as cash collateral received or pledged, when it has the legal right of offset under these master agreements. The Bank does not have any offsetting liabilities related to its securities purchased under agreements to resell for the periods presented. |
||||||||||||
Investments | Interest-bearing Deposits, Securities Purchased under Agreements to Resell, and Federal Funds Sold. Interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold provide short-term liquidity and are carried at cost. The Bank treats securities purchased under agreements to resell as short-term collateralized loans, which are classified as assets on the Statements of Condition. Securities purchased under agreements to resell are held in safekeeping in the name of the Bank by third-party custodians approved by the Bank. Should the fair value of the underlying securities decrease below the fair value required as collateral, the counterparty has the option to (1) place an equivalent amount of additional securities in safekeeping in the name of the Bank, or (2) remit an equivalent amount of cash; otherwise, the dollar value of the resale agreement will be decreased accordingly. Federal funds sold consist of short-term, unsecured loans transacted with counterparties that are considered by the Bank to be of investment quality. Interest on interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold is accrued as earned and recorded in interest income on the Statements of Income. Investment Securities. The Bank classifies certain investment securities acquired for purposes of liquidity and asset-liability management as trading investments and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in noninterest income (loss) as “Net losses on trading securities” on the Statements of Income, along with gains and losses on sales of investment securities using the specific identification method. The Bank does not participate in speculative trading practices in these investments and generally holds them until maturity, except to the extent management deems necessary to manage the Bank’s liquidity position. Investment securities that the Bank has both the ability and intent to hold to maturity are classified as held-to-maturity and are carried at amortized cost, adjusted for periodic principal repayments, amortization of premiums, and accretion of discounts. Amortization of premiums and accretion of discounts are computed using the contractual level-yield method (contractual interest method), adjusted for actual prepayments. The contractual interest method recognizes the income effects of premiums and discounts over the contractual life of the securities based on the actual behavior of the underlying assets, including adjustments for actual prepayment activities, and reflects the contractual terms of the securities without regard to changes in estimated prepayments based on assumptions about future borrower behavior. The Bank classifies certain securities that are not held-to-maturity or trading as available-for-sale and carries these securities at their estimated fair value. The Bank records changes in the fair value of these investments in other comprehensive income. The Bank intends to hold its available-for-sale securities for an indefinite period of time but may sell them prior to maturity in response to changes in interest rates, prepayment risk, or other factors. Other-than-temporary Impairment of Investment Securities. The Bank evaluates its individual available-for-sale and held-to-maturity securities in unrealized loss positions for other-than-temporary impairment on a quarterly basis. A security is considered impaired when its fair value is less than its amortized cost. The Bank considers an other-than-temporary impairment to have occurred under any of the following circumstances:
If either of the first two conditions above is met, the Bank recognizes an other-than-temporary impairment loss in earnings equal to the entire difference between the security’s amortized cost basis and its fair value as of the Statements of Condition date. For securities in an unrealized loss position that meet neither of the first two conditions, the Bank performs a cash flow analysis to determine if it will recover the entire amortized cost basis of each of these securities. The present value of the cash flows expected to be collected is compared to the amortized cost basis of the debt security to determine whether a credit loss exists. If there is a credit loss (the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security), the carrying value of the debt security is adjusted to its fair value. However, rather than recognizing the entire difference between the amortized cost basis and fair value in earnings, only the amount of the impairment representing the credit loss (i.e., the credit component) is recognized in earnings, while the amount related to all other factors (i.e., the non-credit component) is recognized in other comprehensive income. The credit loss on a debt security is limited to the amount of that security’s unrealized losses. The total other-than-temporary impairment is presented on the Statements of Income with an offset for the amount of the non-credit component of other-than-temporary impairment that is recognized in other comprehensive income. The remaining amount on the Statements of Income represents the credit loss for the period. For subsequent accounting of an other-than-temporarily impaired security, the Bank records an additional other-than-temporary impairment if the present value of cash flows expected to be collected is less than the amortized cost of the security. The total amount of this additional other-than-temporary impairment (both credit and non-credit component, if any) is determined as the difference between the security’s amortized cost, less the amount of other-than-temporary impairment recognized in other comprehensive income prior to the determination of this additional other-than-temporary impairment, and its fair value. Any additional credit loss is limited to that security’s unrealized losses or the difference between the security’s amortized cost and its fair value as of the Statements of Condition date. This additional credit loss, up to the amount in accumulated other comprehensive income related to the security, is reclassified out of accumulated other comprehensive income and recognized in earnings. Any credit loss in excess of the related other comprehensive income is recorded as additional total other-than-temporary impairment loss and recognized in earnings. For debt securities classified as available-for-sale, the Bank does not accrete the other-than-temporary impairment recognized in accumulated other comprehensive income to the carrying value. Rather, subsequent related increases and decreases (if not an other-than-temporary impairment) in the fair value of available-for-sale securities are netted against the non-credit component of other-than-temporary impairment recognized previously in accumulated other comprehensive income. Upon subsequent evaluation of a debt security where there is no additional other-than-temporary impairment, the Bank adjusts the accretable yield on a prospective basis if there is a significant increase in the security’s expected cash flows. As of the impairment measurement date, a new accretable yield is calculated for the impaired investment security. This adjusted yield is then used to calculate the interest income recognized over the remaining life of the security so as to match the amount and timing of future cash flows expected to be collected. Subsequent significant increases in estimated cash flows change the accretable yield on a prospective basis. |
||||||||||||
Advances | Advances. The Bank reports advances (secured loans to members, former members, or housing associates), net of discounts on advances related to the Affordable Housing Program (AHP) and the Economic Development and Growth Enhancement Program (EDGE), unearned commitment fees, and hedging basis adjustments. The Bank accretes the discounts on advances and amortizes the recognized unearned commitment fees and hedging adjustments to interest income using the contractual interest method. The Bank records interest on advances to interest income as earned. Prepayment Fees. The Bank charges a borrower a prepayment fee when the borrower prepays certain advances before the original maturity date. The Bank records prepayment fees, net of basis adjustments related to hedging activities included in the carrying value of the advance as “Prepayment fees on advances, net” in the interest income section of the Statements of Income. In cases in which there is a prepayment of an existing advance and a contemporaneous funding of a new advance, the Bank evaluates whether the new advance meets the accounting criteria to qualify as a modification of an existing advance or whether it constitutes a new advance. If the new advance qualifies as a modification of the existing advance, the hedging basis adjustments and the net prepayment fee on the prepaid advance are recorded in the carrying value of the modified advance and amortized over the life of the modified advance using the contractual interest method. This amortization is recorded in advance interest income. If the Bank determines that the transaction does not qualify as a modification of an existing advance, it is treated as an advance termination with subsequent funding of a new advance, and the Bank records the net fees as “Prepayment fees, net” in the interest income section of the Statements of Income.
|
||||||||||||
Mortgage Loans Held for Portfolio | Mortgage Loans Held for Portfolio. The Bank classifies mortgage loans that it has the intent and ability to hold for the foreseeable future, or until maturity or payoff, as held for portfolio. Accordingly, these mortgage loans are reported net of unamortized premiums, unaccreted discounts, mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, and any allowance for credit losses. The Bank defers and amortizes premiums and accretes discounts (1) paid to and received by the participating financial institutions (PFIs), and (2) mark-to-market basis adjustments on loans initially classified as mortgage loan commitments, as interest income using the contractual interest method. A mortgage loan is considered past due when the principal or interest payment is not received in accordance with the contractual terms of the loan. The Bank places a conventional mortgage loan on nonaccrual status when the collection of the contractual principal or interest from the borrower is 90 days or more past due. When a mortgage loan is placed on nonaccrual status, accrued but uncollected interest is reversed against interest income. The Bank records cash payments received on nonaccrual loans as interest income and as a reduction of principal as specified in the contractual agreement. A loan on nonaccrual status may be restored to accrual status when the contractual principal and interest are less than 90 days past due. A government-guaranteed or -insured loan is not placed on nonaccrual status when the collection of the contractual principal or interest is 90 days or more past due because of (1) the U.S. government guarantee or insurance on the loan, and (2) the contractual obligation of the loan servicer to repurchase the loan when certain criteria are met. A mortgage loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the mortgage loan agreement. Interest income is recognized in the same manner as nonaccrual loans. Finance Agency regulations require that mortgage loans held in the Bank’s portfolios be credit enhanced so that the Bank’s risk of loss is limited to the losses of an investor in at least an investment-grade category, such as “BBB.” For conventional mortgage loans, PFIs retain a portion of the credit risk on the loans they sell to the Bank by providing credit enhancement either through a direct liability to pay credit losses up to a specified amount or through a contractual obligation to provide supplemental mortgage insurance. PFIs are paid a credit enhancement fee (CE Fee) for assuming credit risk, and in some instances, all or a portion of the CE Fee may be performance based. CE Fees are paid monthly based on the remaining unpaid principal balance of the loans in a master commitment. CE Fees are recorded as an offset to mortgage loan interest income. To the extent that the Bank experiences losses in a master commitment, it may be able to recapture CE Fees paid to the PFI to offset these losses. Allowance for Credit Losses. The allowance for credit losses is a valuation allowance separately established for each identified portfolio segment of financing receivables, if necessary, to provide for probable incurred losses in the Bank’s portfolio as of the Statements of Condition date. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology for determining its allowance for credit losses. The Bank has developed and documented a systematic methodology for determining an allowance for credit losses for the following portfolio segments of financing receivables: advances and standby letters of credit, government-guaranteed or -insured residential mortgage loans held for portfolio, conventional residential mortgage loans held for portfolio, term federal funds sold, and term securities purchased under agreements to resell. A portfolio segment may be further disaggregated into classes of financing receivables to the extent that it is needed to understand the exposure to credit risk arising from these financing receivables; however, the Bank determined that no further disaggregation of the portfolio segments identified above is needed. The Bank manages its credit exposure to advances and standby letters of credit through an integrated approach that includes (1) establishing a credit limit for each borrower; (2) an ongoing review of each borrower’s financial condition; and (3) collateral and lending policies to limit risk of loss, while balancing each borrower’s needs for a reliable source of funding. In addition, the Bank lends to financial institutions within its district and housing associates in accordance with federal statutes and Finance Agency regulations. Specifically, the Bank complies with the FHLBank Act, which requires the Bank to obtain sufficient collateral to fully secure advances. The estimated value of the collateral required to secure each borrower’s advances is calculated by applying discounts to the fair value or unpaid principal balance of the collateral, as applicable. The Bank accepts certain investment securities, residential mortgage loans, deposits, and other real estate related assets as collateral. The Bank’s capital stock owned by its member borrower is also pledged as additional collateral. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and the Bank’s overall credit exposure to the borrower. The Bank can call for additional or substitute collateral to protect its security interest. The Bank believes that these policies effectively manage credit risk from advances and standby letters of credit. Based upon the financial condition of the borrower, the Bank either allows a borrower to retain physical possession of the collateral pledged to it or requires the borrower to specifically assign the collateral to or place the collateral in physical possession of the Bank or its safekeeping agent. The Bank requires its borrowers to execute an advances and security agreement that establishes the Bank’s security interest in all collateral pledged by the borrower to the Bank. The Bank perfects its security interest in all pledged collateral. The FHLBank Act affords any security interest granted to the Bank by a borrower priority over the claims or rights of any other party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), except for claims or rights of a third party that (1) would be entitled to priority under otherwise applicable law, and (2) is an actual bona fide purchaser for value or is an actual secured party whose security interest is perfected in accordance with state law. Using a risk-based approach and taking into consideration each borrower’s financial strength, the Bank considers the types and amounts of pledged collateral to be the primary indicator of credit quality on its advances. The Bank had rights to collateral on a borrower-by-borrower basis with an estimated value equal to or greater than its outstanding extensions of credit as of December 31, 2017 and 2016. The Bank continues to evaluate and make changes to its collateral policies, as necessary, based on current market conditions. No advance was past due, on nonaccrual status, or considered impaired as of December 31, 2017 and 2016. In addition, there were no troubled debt restructurings related to advances as of December 31, 2017 and 2016. Based upon the collateral held as security, the Bank’s collateral policies, credit analysis, and the repayment history on advances, the Bank did not anticipate any credit losses on advances or standby letters of credit as of December 31, 2017 and 2016. Accordingly, the Bank has not recorded any allowance for credit losses on advances, nor has the Bank recorded any liability to reflect an allowance for credit losses for off-balance sheet credit exposure as of December 31, 2017 and 2016. The Bank invested in government-guaranteed or -insured fixed-rate mortgage loans secured by one-to-four family residential properties. Government-guaranteed or -insured mortgage loans are mortgage loans guaranteed or insured by the Department of Veterans Affairs or the Federal Housing Administration. The servicer provides and maintains insurance or a guarantee from the applicable government agency. The servicer is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable insurance or guarantee with respect to defaulted government-guaranteed or -insured mortgage loans. Any losses incurred on these loans that are not recovered from the issuer or the guarantor are absorbed by the servicers. Therefore, the Bank only has credit risk for these loans if the servicer fails to pay for losses not covered by insurance or guarantees. Based on the Bank’s assessment of its servicers, the Bank did not establish an allowance for credit losses for its government-guaranteed or -insured mortgage loan portfolio as of December 31, 2017 and 2016. Modified loans that are considered a troubled debt restructuring are evaluated individually for impairment. All other conventional residential mortgage loans are evaluated collectively for impairment. The allowance for conventional residential mortgage loans is determined by an analysis (performed at least quarterly) that includes segregating the portfolio into various aging groups. For loans that are 60 days or less past due, the Bank calculates a loss severity, default rate, and the expected loss based on individual loan characteristics. For loans that are more than 60 days past due, the allowance is determined using an automated valuation model. Modified loans that are considered a troubled debt restructuring are individually evaluated for impairment when determining the related allowance for credit losses. Credit loss is measured by factoring in expected cash shortfalls (i.e., loss severity rate) incurred as of the reporting date, as well as the economic loss attributable to delaying the original contractual principal and interest due dates. A charge-off is recorded if the recorded investment in the loan will not be recovered. The Bank evaluates whether to record a charge-off on a conventional residential mortgage loan upon the occurrence of a confirming event. Once a loan is 180 days delinquent, the Bank classifies as a loss and charges off the portion of outstanding conventional residential mortgage loan balances in excess of the fair value of the underlying property, less costs to sell and adjusted for any available credit enhancements. Term federal funds sold are generally short-term, their recorded balance approximates fair value, and they are transacted with counterparties that the Bank considers to be of investment quality. The Bank’s investment in federal funds sold are evaluated for purposes of an allowance for credit losses only if the investment is not paid when due. All investments in federal funds sold are unsecured and were repaid or expected to be repaid according to the contracted terms as of December 31, 2017 and 2016. |
||||||||||||
Real Estate Owned | Real estate owned (REO) includes assets that have been received in satisfaction of debt through foreclosures. REO is initially recorded at fair value, less estimated selling costs and is subsequently carried at the lower of that amount or current fair value, less estimated selling costs. The Bank recognizes a charge-off to the allowance for credit losses if the fair value of the REO, less estimated selling costs is less than the recorded investment in the loan at the date of transfer from loans to REO. Any subsequent realized gains, realized or unrealized losses, and carrying costs are included in noninterest income (loss) on the Statements of Income. REO is recorded in “Other assets” on the Statements of Condition and was $2 as of December 31, 2017 and 2016, respectively. | ||||||||||||
Derivatives | Derivatives. All derivatives are recognized on the Statements of Condition at their fair values and are reported as either derivative assets or derivative liabilities, net of cash collateral, including initial and certain variation margin, and accrued interest received from or pledged to clearing agents and/or counterparties. The fair values of derivatives are netted by the clearing agent and/or counterparty when the netting requirements have been met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. Cash flows associated with derivatives are reflected as cash flows from operating activities on the Statements of Cash Flows unless the derivative meets the criteria to be a financing derivative. Derivatives not used for intermediary purposes are designated as either (1) a hedge of the fair value of (a) a recognized asset or liability or (b) an unrecognized firm commitment (a fair-value hedge); or (2) a non-qualifying hedge of an asset or liability for asset-liability management purposes. Changes in the fair value of a derivative that are effective as, and that are designated and qualify as, a fair-value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk (including changes that reflect losses or gains on firm commitments), are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. Any hedge ineffectiveness (which represents the amount by which the change in the fair value of the derivative differs from the change in the fair value of the hedged item) is recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. A non-qualifying hedge is a derivative hedging specific or non-specific underlying assets, liabilities, or firm commitments that is an acceptable hedging strategy under the Bank’s risk management program and Finance Agency regulatory requirements, but it does not qualify or was not designated for fair value or cash flow hedge accounting. A non-qualifying hedge introduces the potential for earnings variability because only the change in fair value of the derivative is recorded and is not offset by corresponding changes in the fair value of the non-qualifying hedged asset, liability, or firm commitment, unless such asset, liability, or firm commitment is required to be accounted for at fair value through earnings. Both the net interest on the derivative and the fair value adjustments of a non-qualifying hedge are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The derivatives used in intermediary activities do not qualify for hedge accounting treatment and are separately marked-to-market through earnings. These amounts are recorded in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The net result of the accounting for these derivatives does not significantly impact the Bank’s results of operations. The net settlement of interest receivables and payables related to derivatives designated as fair-value hedges are recognized as adjustments to the interest income or interest expense of the designated hedged item. The net settlement of interest receivables and payables related to intermediated derivatives for members and other non-qualifying hedges are recognized in noninterest income (loss) as “Net gains on derivatives and hedging activities” on the Statements of Income. The Bank discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer expected to be effective in offsetting changes in the fair value of a hedged risk, including hedged items such as firm commitments; (2) the derivative and/or the hedged item expires or is sold, terminated, or exercised; (3) a hedged firm commitment no longer meets the definition of a firm commitment; or (4) the bank determines that designating the derivative as a hedging instrument is no longer appropriate. |
||||||||||||
Embedded Derivatives | The Bank may issue debt, make advances, or purchase financial instruments in which a derivative instrument may be “embedded.” Upon execution of these transactions, the Bank assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the advance, debt, or purchased financial instruments (i.e., the host contract) and whether a separate, non-embedded instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract; and (2) a separate, stand-alone instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract, carried at fair value, and designated as a stand-alone derivative instrument pursuant to a non-qualifying hedge. However, if the entire contract (the host contract and the embedded derivative) is to be measured at fair value, with changes in fair value reported in current-period earnings (e.g., an investment security classified as “trading”), or if the Bank could not identify and measure reliably the embedded derivative for purposes of separating that derivative from its host contract, the entire contract would be carried on the Statements of Condition at fair value, and no portion of the contract could be designated as a hedging instrument. | ||||||||||||
Premises and Equipment | Premises, Equipment, and Software. The Bank records premises and equipment at cost less accumulated depreciation. The Bank’s accumulated depreciation was $68 and $64 as of December 31, 2017 and 2016, respectively. The Bank computes depreciation using the straight-line method over the estimated useful lives of assets. The estimated useful lives in years are generally as follows: automobiles and computer hardware—three; office equipment—eight; office furniture and building improvements—10; and building—40. The Bank amortizes leasehold improvements using the straight-line method over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Bank capitalizes improvements and expenses ordinary maintenance and repairs when incurred. Depreciation expense was $4 for the years ended December 31, 2017, 2016, and 2015. The Bank includes gains and losses on disposal of premises and equipment in noninterest income (loss). | ||||||||||||
Software | The Bank records the cost of purchased software and certain costs incurred in developing computer software for internal use at cost, less accumulated amortization. The Bank amortizes capitalized computer software cost using the straight-line method over an estimated useful life of five years. The gross carrying amount of computer software included in other assets was $58 and $55, and accumulated amortization was $50 and $48, as of December 31, 2017 and 2016, respectively. Amortization of computer software was $2, $3, and $5 for the years ended December 31, 2017, 2016, and 2015, respectively. The Bank includes gains and losses on disposal of capitalized software cost in noninterest income (loss). | ||||||||||||
Deposits | Deposits. The Bank offers demand and overnight deposits for members and qualifying non-members. A member that services mortgage loans may deposit funds in the Bank that were collected in connection with the mortgage loans, pending disbursement of such funds to the owners of the mortgage loans. The Bank records these items in “Interest-bearing deposits” on the Statements of Condition. The Bank pays interest on demand and overnight deposits based on a daily interest rate. | ||||||||||||
Consolidated Obligations | Consolidated Obligations. The Bank records consolidated obligations at amortized cost. Additionally, the Bank pays concessions to dealers in connection with the issuance of certain consolidated obligations. The Office of Finance prorates the concessions to the Bank based upon the percentage of the debt issued that is assumed by the Bank. The Bank records concessions paid on consolidated obligations as a direct deduction from their carrying amounts, consistent with the presentation of discounts on consolidated obligations. The Bank accretes discounts and amortizes premiums, as well as concessions and hedging basis adjustments on consolidated obligations, to interest expense using the contractual interest method over the contractual term of the corresponding consolidated obligation. |
||||||||||||
Mandatorily Redeemable Capital Stock | Mandatorily Redeemable Capital Stock. The Bank reclassifies stock that is subject to redemption from capital to a liability after a member submits a written redemption request, gives notice of intent to withdraw from membership, or attains non-member status through a merger or acquisition, charter termination, or involuntary termination from membership since the member shares will then meet the definition of a mandatorily redeemable financial instrument. Member shares meeting this definition are reclassified to a liability at fair value. Dividends declared on shares classified as a liability are accrued at the expected dividend rate and recorded as interest expense on the Statements of Income. The repurchase or redemption of these mandatorily redeemable financial instruments is recorded as cash outflows in the financing activities section of the Statements of Cash Flows. |
||||||||||||
Restricted Retained Earnings | Restricted Retained Earnings. The FHLBanks have entered into a Joint Capital Enhancement Agreement, as amended (Capital Agreement), which is intended to enhance the capital position of each FHLBank. Under the Capital Agreement, each FHLBank allocates 20 percent of its net income each quarter to a separate retained earnings account until the account balance equals at least one percent of the FHLBank’s average balance of outstanding consolidated obligations for the previous quarter. Restricted retained earnings are not available to pay dividends and are presented separately on the Statements of Condition. | ||||||||||||
Finance Agency and Office of Finance Expenses | Finance Agency and Office of Finance Expenses. The Finance Agency allocates the FHLBanks’ portion of its expenses and working capital fund among the FHLBanks based on the ratio between each FHLBank’s minimum required regulatory capital and the aggregate minimum required regulatory capital of every FHLBank. Each FHLBank’s proportionate share of the Office of Finance’s operating and capital expenditures is calculated using a formula that is (1) two-thirds based upon each FHLBank’s share of total consolidated obligations outstanding, and (2) one-third based upon an equal pro rata allocation. | ||||||||||||
Affordable Housing Program | Affordable Housing Program. The FHLBank Act requires each FHLBank to establish and fund an AHP that provides subsidies to members to assist in the purchase, construction, or rehabilitation of housing for very low-to-moderate-income households. The Bank charges the required funding for AHP against earnings and establishes a corresponding liability. The Bank issues AHP advances at interest rates below the customary interest rate for non-subsidized advances. A discount on the AHP advance and charge against the AHP liability is recorded for the present value of the variation in the cash flow caused by the difference in the interest rate between the AHP advance rate and the Bank’s related cost of funds for comparable maturity funding. As an alternative, the Bank has the authority to make the AHP subsidy available to members as a grant. The discount on AHP advances is accreted to interest income on advances using the contractual interest method over the life of the advance. |
Trading Securities (Tables) - Categories of Investments, Marketable Securities, Trading Securities [Member] |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Major Trading Securities | Major Security Types. The following table presents trading securities.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Unrealized and Realized (Losses) Gains on Trading Securities | The following table presents net losses on trading securities.
|
Available-for-sale Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities Reconciliation | Major Security Type. The following table presents information on private-label residential mortgage-backed securities (MBS) that are classified as available-for-sale.
____________ (1) Amounts represent the non-credit portion of an other-than-temporary impairment during the life of the security.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Available-for-Sale MBS Issued by Members or Affiliates or Members | The following table presents private-label residential MBS that are classified as available-for-sale and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 table presents private-label residential MBS that are classified as available-for-sale with unrealized losses. The unrealized losses are aggregated by the length of time that the individual securities have been in a continuous unrealized loss position.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Payment Terms For Investments | Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as available-for-sale.
|
Held-to-maturity Securities (Tables) - Held-to-maturity Securities [Member] |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Held-to-maturity Securities [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Held-to-Maturity Securities | Major Security Types. The following table presents held-to-maturity securities.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | The following tables present held-to-maturity securities with unrealized losses. The unrealized losses are aggregated by major security type and by the length of time that the individual securities have been in a continuous unrealized loss position.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities by Contractual Maturity | Redemption Terms. The following table presents the amortized cost and estimated fair value of held-to-maturity securities by contractual maturity. MBS are not presented by contractual maturity because their actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment fees.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Payment Terms For Investments | Interest-rate Payment Terms. The following table presents interest-rate payment terms for investment securities classified as held-to-maturity.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity MBS Issued by Members or Affiliates of Members | The following table presents private-label residential MBS that are classified as held-to-maturity and issued by members or affiliates of members, all of which have been issued by Bank of America Corporation, Charlotte, NC.
|
Other-than-Temporary Impairment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other than Temporary Impairment Losses, Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Significant Inputs in Measuring Other than Temporary Impairments Recongized in Earnings | The following table presents a summary of the significant inputs used to measure the amount of the credit loss recognized in earnings for those securities for which an other-than-temporary impairment was determined to have occurred during the year ended December 31, 2017, as well as the related current credit enhancement.
____________ (1) The classification of securities is based on current characteristics and performance, which may be different from the securities’ classification as determined by the originator at the time of origination. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Advances (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank, Advances | The following table presents the Bank’s advances outstanding.
The Bank offers callable advances to members that may be prepaid on prescribed dates (call dates) without incurring prepayment or termination fees. The Bank also offers prepayable advances, which are variable-rate advances that may be contractually prepaid by the borrower on specified dates without incurring prepayment or termination fees. Other advances may be prepaid only by paying a fee to the Bank, so the Bank is financially indifferent to the prepayment of the advance. The Bank had callable and prepayable advances outstanding of $17,920 and $27,459 as of December 31, 2017 and 2016, respectively. The following table presents advances by year of contractual maturity or next call date for callable advances.
Convertible advances offered by the Bank allow the Bank to convert the fixed-rate advance to a variable-rate advance at the current market rate on certain specified dates. The Bank had convertible advances outstanding of $693 and $1,497 as of December 31, 2017 and 2016, respectively. The following table presents advances by year of contractual maturity or, for convertible advances, next conversion date.
Interest-rate Payment Terms. The following table presents interest-rate payment terms for advances.
|
Mortgage Loans Held for Porfolio (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans Held for Portfolio by Collateral or Guarantee Type | The following table presents the unpaid principal balance of mortgage loans held for portfolio by collateral or guarantee type.
|
Allowance for Credit Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses related to conventional residential mortgage loans.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Recorded Investment by Impairment Methodology | The following table presents the recorded investment in conventional residential mortgage loans by impairment methodology.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables | Key credit quality indicators for mortgage loans include the migration of past due mortgage loans, nonaccrual mortgage loans, and mortgage loans in process of foreclosure. The following tables present the Bank’s recorded investment in mortgage loans by these key credit quality indicators.
____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage 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.
____________ (1) The difference between the recorded investment and the carrying value of total mortgage loans of $2 relates to accrued interest. (2) Includes mortgage loans where the decision of foreclosure or similar alternative, such as a pursuit of deed-in-lieu, has been reported. Mortgage loans in the process of foreclosure are included in past due or current mortgage loans depending on their delinquency status. (3) Mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total mortgage 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 following table presents the Bank’s recorded investment balance in mortgage loans classified as troubled debt restructurings.
|
Consolidated Obligations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Consolidated Obligation Bonds By Interest Rate Payment Terms [Table Text Block] | Interest-rate Payment Terms. The following table presents the Bank’s consolidated obligation bonds by interest-rate payment type.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Obligation Bonds Outstanding, by Year of Contractual Maturity | Redemption Terms. The following table presents the Bank’s participation in consolidated obligation bonds outstanding by year of contractual maturity.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Obligation Bonds by Interest-Rate Payment | The following table presents the Bank’s consolidated obligation bonds outstanding by call feature.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Maturities of Consolidated Obligation Bonds By Contractual Or Next Call Date [Table Text Block] | The following table presents the Bank’s consolidated obligation bonds outstanding, by year of contractual maturity, or for callable consolidated obligation bonds, by next call date.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Obligation Discount Notes | The following table presents the Bank’s participation in consolidated obligation discount notes.
|
Affordable Housing Program (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assessments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity in Affordable Housing Program Obligation | The following table presents a rollforward of the Bank’s AHP liability.
|
Capital and Mandatorily Redeemable Capital Stock (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance With Regulatory Capital Requirements | The following table presents the Bank’s compliance with the Finance Agency’s regulatory capital rules and requirements.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Mandatorily Redeemable Capital Stock | The following table presents the activity in mandatorily redeemable capital stock.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of Mandatorily Redeemable Capital Stock by Year of Redemption | The following table presents 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.
|
Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Comprising Accumulated Other Comprehensive Income | The following table presents the components comprising accumulated other comprehensive income.
____________ (1) Included in Compensation and benefits on the Statements of Income.
|
Pension and Post Retirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Multiemployer Plan | The following table presents information on the net pension costs and funded status of the Pentegra Plan.
____________ (1) The Pentegra Plan’s funded status as of July 1 is preliminary and may increase because the plan’s participants are permitted to make contributions through March 15 of the following year (i.e. through March 15, 2018 for the plan year ended June 30, 2017 and through March 15, 2017 for the plan year ended June 30, 2016). Contributions made before the March 15th deadline may be credited to the plan for the plan year ended June 30 of the previous year and included in the final valuation as of July 1 of the year the plan ended. The final funded status as of July 1 will not be available until the Form 5500 for the plan year July 1 through June 30 is filed. Form 5500 is due to be filed no later than April 2019 for the plan year July 1, 2017 through June 30, 2018 and April 2018 for the plan year July 1, 2016 through June 2017. Form 5500 was filed in April 2017 for the plan year July 1, 2015 through June 30, 2016.
|
Derivatives and Hedging Activities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | The following table presents the notional amount, fair value of derivative instruments (excluding fair value adjustments related to variation margin on daily settled contracts), and total derivative assets and liabilities. Total derivative assets and liabilities include the effect of netting adjustments, cash collateral, and variation margin for daily settled contracts. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest.
___________
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Gains on Derivatives and Hedging Activities | The following table presents the components of net gains on derivatives and hedging activities as presented on the Statements of Income.
___________ (1)Consists of price alignment amount on derivatives for which variation margin is characterized as daily settled contract.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
____________
____________
____________ (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.
____________ (1) The Bank had net credit exposure of $226 and $346 as of December 31, 2017 and 2016, respectively, due to instances where the Bank’s pledged collateral to a counterparty exceeds the Bank’s net derivative liability position.
|
Estimated Fair Values (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Estimated Fair Value Measurements on a Recurring Basis. The following tables present, for each fair value hierarchy level, the Bank’s financial assets and liabilities that are measured at fair value on a recurring basis on its Statements of Condition.
(1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.
____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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).
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values and Estimated Fair Values | The following tables present the carrying values and estimated fair values of the Bank’s financial instruments.
____________
____________ (1) Amounts represent the application of the netting requirements that allow the Bank to settle positive and negative positions, cash collateral and related accrued interest held or placed with the same clearing agents and/or counterparty.
|
Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Off Balance Sheet Commitments [Table Text Block] | The following table presents the Bank’s outstanding commitments, which represent off-balance sheet obligations.
(2) Expiration is based on settlement period rather than underlying contractual maturity of consolidated obligations.
|
Transactions with Shareholders (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions With Shareholders [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Transactions with Shareholders [Table Text Block] | Shareholder Concentrations. The Bank considers shareholder concentration as members or non-members with regulatory capital stock outstanding in excess of 10 percent of the Bank’s total regulatory capital stock. The following tables present transactions with shareholders whose holdings of regulatory capital stock exceed 10 percent of total regulatory capital stock outstanding.
|
Transaction with Other FHLBanks (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Other FHLBanks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans to and From Other Federal Home Loan Banks | The following table presents the cash flow activities for loans to and borrowings from other FHLBanks.
|
Nature of Operations (Details) |
Dec. 31, 2017
bank
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Cash and Due from Banks (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash and Cash Equivalents [Line Items] | ||
Average collected cash balances | $ 7 | $ 7 |
Trading Securities (Trading Securities by Major Security Type) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities, Debt | $ 56 | $ 262 |
Government-sponsored enterprises debt obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities, Debt | 56 | 261 |
State or local housing agency debt obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities, Debt | $ 0 | $ 1 |
Trading Securities (Net losses on Trading Securities) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Trading Securities [Abstract] | |||
Net gains (losses) on trading securities held at year end | $ 1 | $ (8) | $ (61) |
Net losses on trading securities that matured during the year | (6) | (22) | 0 |
Net losses on trading securities | $ (5) | $ (30) | $ (61) |
Available-for-sale Securities (Available-for-sale by Major Security Type) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost of available-for-sale securities | $ 970 | $ 1,221 | ||
Available-for-sale Securities | 1,104 | 1,345 | ||
Residential Mortgage Backed Securities [Member] | Mortgage-backed Securities, Private-label residential [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized cost of available-for-sale securities | 970 | 1,221 | ||
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income | [1] | 1 | 6 | |
Gross unrealized gains on available-for-sale securities | 135 | 130 | ||
Gross unrealized losses on available-for-sale securities | 0 | 0 | ||
Available-for-sale Securities | $ 1,104 | $ 1,345 | ||
|
Available-for-sale Securities Available-for-sale Securities (Interest Rate Payment Terms) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 970 | $ 1,221 |
Variable-rate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | 955 | 1,202 |
Fixed-rate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 15 | $ 19 |
Available-for-sale Securities (Summary of Available-for-sale MBS issued by Members or Affiliates of Members) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | $ 970 | $ 1,221 |
Available-for-sale Securities | 1,104 | 1,345 |
Bank of America Corporation, Charlotte, NC [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of available-for-sale securities | 638 | 792 |
Other-than-temporary Impairment Recognized in Accumulated Other Comprehensive Income | 1 | 5 |
Gross unrealized gains on available-for-sale securities | 104 | 102 |
Gross unrealized losses on available-for-sale securities | 0 | 0 |
Available-for-sale Securities | $ 741 | $ 889 |
Held-to-maturity Securities Held-to-maturity Securities (Summary of Held-to-maturity MBS issued by Members or Affiliated of Members) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 25,162 | $ 24,641 |
Held-to-maturity securities Gross Unrealized Gains | 99 | 56 |
Gross Unrealized Losses on held-to-maturity securities | 42 | 64 |
Held-to-maturity securities, fair value | 25,219 | 24,633 |
Mortgage-backed Securities, Private-label residential [Member] | Bank of America Corporation, Charlotte, NC [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | 125 | 177 |
Held-to-maturity securities Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses on held-to-maturity securities | 0 | 2 |
Held-to-maturity securities, fair value | $ 126 | $ 175 |
Other-than-temporary Impairment (Roll-forward of Credit Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Schedule of Roll-Forward Cumulative Credit Losses Recognized | |||
Balance, beginning of year | $ 455 | $ 505 | $ 542 |
Amount related to credit loss for which an other-than-temporary impairment was previously recognized | 2 | 3 | 5 |
Increase in cash flows expected to be collected, (accreted as interest income over the remaining lives of the applicable securities) | (63) | (53) | (42) |
Balance, end of year | $ 394 | $ 455 | $ 505 |
Advances (Redemption Terms) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Advances [Abstract] | ||
Due in one year or less | $ 60,795 | $ 47,325 |
Due after one year through two years | 10,779 | 8,244 |
Due after two years through three years | 14,210 | 5,904 |
Due after three years through four years | 4,162 | 5,859 |
Due after four years through five years | 3,729 | 11,846 |
Due after five years | 8,574 | 19,110 |
Federal Home Loan Bank Advances at par value | 102,249 | 98,288 |
Discount on AHP advances | (4) | (5) |
Discount on EDGE advances | (3) | (4) |
Hedging adjustments | 198 | 798 |
Federal Home Loan Bank Advances | $ 102,440 | $ 99,077 |
Advances (Advances by Year of Contractual Maturity or Next Call Date for Callable Advances) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Advances [Abstract] | ||
Due or callable in one year or less | $ 74,706 | $ 72,404 |
Due or callable after one year through two years | 10,191 | 7,680 |
Due or callable after two years through three years | 4,300 | 3,740 |
Due or callable after three years through four years | 3,191 | 2,289 |
Due or callable after four years through five years | 2,842 | 4,570 |
Due or callable after five years | 7,019 | 7,605 |
Federal Home Loan Bank Advances at par value | $ 102,249 | $ 98,288 |
Advances (Advances by Year of Contracutal Maturity for Convertible Advances) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Advances [Abstract] | ||
Due or convertible in one year or less | $ 60,984 | $ 47,935 |
Due or convertible after one year through two years | 10,846 | 7,724 |
Due or convertible after two years through three years | 14,326 | 5,943 |
Due or convertible after three years through four years | 4,184 | 5,867 |
Due or convertible after four years through five years | 3,695 | 11,866 |
Due or convertible after five years | 8,214 | 18,953 |
Federal Home Loan Bank Advances at par value | $ 102,249 | $ 98,288 |
Advances (Interest-rate Payment Terms) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Advances [Abstract] | ||
Fixed-rate, due in one year or less | $ 37,107 | $ 38,597 |
Fixed-rate, due after one year | 22,044 | 24,528 |
Total fixed-rate | 59,151 | 63,125 |
Variable-rate, due in one year or less | 23,687 | 8,728 |
Variable-rate, due after one year | 19,411 | 26,435 |
Total variable-rate | 43,098 | 35,163 |
Federal Home Loan Bank Advances at par value | $ 102,249 | $ 98,288 |
Advances (Narrative) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
Institutions
|
Dec. 31, 2016
USD ($)
Institutions
|
---|---|---|
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank, Advances, Interest Rate on Affordable Housing Program Subsidized Loans | 0.00% | |
Federal Home Loan Bank Advances at par value | $ 102,249 | $ 98,288 |
Number of Top Advances Borrowers | Institutions | 10 | 10 |
Federal Home Loan Bank Advances to Ten Largest Borrowers | $ 71,440 | $ 67,493 |
Federal Home Loan Bank Advances Ten Largest Borrowers Percent of Total | 69.90% | 68.70% |
Allowance for credit losses on advances | $ 0 | $ 0 |
Advances past due | 0 | 0 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank Advances at par value | 17,920 | 27,459 |
Federal Home Loan Bank, Advances, Convertible Option [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank Advances at par value | $ 693 | $ 1,497 |
Minimum [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank advances interest rate | 0.00% | |
Maximum [Member] | ||
Advances (Textual) [Abstract] | ||
Federal Home Loan Bank advances interest rate | 7.54% |
Mortgage Loans Held for Portfolio (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 436 | $ 525 |
Premiums | 2 | 2 |
Discounts | (2) | (3) |
Total | 436 | 524 |
Fixed-rate medium-term residential mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 19 | $ 40 |
Mortgage loans on real estate, original contract terms | 15 years | 15 years |
Fixed-rate long-term residential mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 417 | $ 485 |
Conventional loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 409 | 492 |
Government-guaranteed or insured mortgage loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 27 | $ 33 |
Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance, beginning of year | $ 1 | ||
Reversal of provision for credit losses | 0 | $ (1) | $ (1) |
Balance, end of year | 1 | 1 | |
Residential Portfolio Segment [Member] | Conventional Mortgage Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Balance, beginning of year | 1 | 2 | 3 |
Reversal of provision for credit losses | 0 | (1) | (1) |
Balance, end of year | $ 1 | $ 1 | $ 2 |
Allowance for Credit Losses (Mortgage Loan Portfolio by Impairment Methodology) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
---|---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total allowance for credit losses | $ 1 | $ 1 | ||||||||
Residential Portfolio Segment [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total recorded investment | 438 | [1] | 526 | [2] | ||||||
Residential Portfolio Segment [Member] | Conventional Mortgage Loans [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Allowance for credit losses, collectively evaluated for impairment | 1 | 1 | ||||||||
Total allowance for credit losses | 1 | 1 | $ 2 | $ 3 | ||||||
Recorded investment, individually evaluated for impairment | 11 | 12 | ||||||||
Recorded investment, collectively evaluated for impairment | 400 | 481 | ||||||||
Total recorded investment | $ 411 | [1] | $ 493 | [2] | ||||||
|
Allowance for Credit Losses (Credit Quality Indicators) (Details) - Residential Portfolio Segment [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | $ 37 | $ 38 | |||||||||||||||
Total current mortgage loans | 401 | 488 | |||||||||||||||
Total recorded investment | 438 | [1] | 526 | [2] | |||||||||||||
In process foreclosure | [3] | $ 6 | $ 7 | ||||||||||||||
Seriously delinquent rate | [4] | 3.37% | 2.53% | ||||||||||||||
Past due 90 days or more and still accruing interest | [5] | $ 0 | $ 1 | ||||||||||||||
Mortgage loans on nonaccrual status | [6] | 12 | 12 | ||||||||||||||
Accrued Interest on Mortgage Loans | 2 | 2 | |||||||||||||||
Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 33 | 32 | |||||||||||||||
Total current mortgage loans | 378 | 461 | |||||||||||||||
Total recorded investment | 411 | [1] | 493 | [2] | |||||||||||||
In process foreclosure | [3] | $ 6 | $ 6 | ||||||||||||||
Seriously delinquent rate | [4] | 3.51% | 2.44% | ||||||||||||||
Past due 90 days or more and still accruing interest | [5] | $ 0 | $ 0 | ||||||||||||||
Mortgage loans on nonaccrual status | [6] | 12 | 12 | ||||||||||||||
Troubled debt restructurings | 11 | 12 | |||||||||||||||
Government-guaranteed or insured mortgage loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 4 | 6 | |||||||||||||||
Total current mortgage loans | 23 | 27 | |||||||||||||||
Total recorded investment | 27 | [1] | 33 | [2] | |||||||||||||
In process foreclosure | [3] | $ 0 | $ 1 | ||||||||||||||
Seriously delinquent rate | [4] | 1.33% | 3.75% | ||||||||||||||
Past due 90 days or more and still accruing interest | [5] | $ 0 | $ 1 | ||||||||||||||
Mortgage loans on nonaccrual status | [6] | 0 | 0 | ||||||||||||||
Performing Financial Instruments [Member] | Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Troubled debt restructurings | 9 | 10 | |||||||||||||||
Nonperforming Financial Instruments [Member] | Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Troubled debt restructurings | 2 | 2 | |||||||||||||||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 17 | 21 | |||||||||||||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 14 | 17 | |||||||||||||||
Financing Receivables, 30 to 59 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 3 | 4 | |||||||||||||||
Financing Receivables, 60 to 89 Days Past Due [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 8 | 4 | |||||||||||||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 7 | 3 | |||||||||||||||
Financing Receivables, 60 to 89 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 1 | 1 | |||||||||||||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 12 | 13 | |||||||||||||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Conventional Mortgage Loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | 12 | 12 | |||||||||||||||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Government-guaranteed or insured mortgage loans [Member] | |||||||||||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||||||||||
Total past due mortgage loans | $ 0 | $ 1 | |||||||||||||||
|
Allowance for Credit Losses (Narrative) (Details) - Residential Portfolio Segment [Member] - Conventional Mortgage Loans [Member] |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
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% |
Troubled Debt Restructuring Modification Interest Rate Reduction Period if Expense Ratio is Not Met | 36 months |
Consolidated Obligations (Narrative) (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017
USD ($)
bank
|
Dec. 31, 2016
USD ($)
|
|
Schedule of Short-term and Long-term Debt [Line Items] | ||
Number of Federal Home Loan Banks | bank | 11 | |
Par Value FHLBanks' Outstanding Consolidated Obligations | $ 1,034,260 | $ 989,311 |
Unpledged qualifying assets held by the Bank | 146,018 | 138,097 |
Federal Home Loan Bank, Consolidated Obligations | $ 137,662 | $ 129,939 |
Maximum contractual maturity period of discount notes (up to one year) | 1 year | |
Other FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Number of Federal Home Loan Banks | bank | 10 |
Consolidated Obligations (Interest-rate Payment Terms) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | $ 87,602 | $ 88,616 |
Fixed-rate [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | 19,978 | 23,674 |
Step up/down [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | 1,864 | 2,534 |
Simple variable-rate [Member] | ||
Consolidated Obligation Bonds by Interest-Rate Payment [Line Items] | ||
Bonds par value | $ 65,760 | $ 62,408 |
Consolidated Obligations (Redemption Terms) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, Consolidated Obligations, Bonds | $ 87,523 | $ 88,647 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | 60,410 | 65,378 |
Bonds, Due after one year through two years | 17,826 | 17,065 |
Bonds, Due after two years through three years | 3,351 | 1,849 |
Bonds, Due after three years through four years | 1,287 | 1,482 |
Bonds, Due after four years through five years | 3,503 | 1,117 |
Bonds, Due after five years | 1,225 | 1,725 |
Bonds par value | 87,602 | 88,616 |
Premiums | 14 | 24 |
Discounts | (10) | (12) |
Hedging adjustments | (83) | 19 |
Federal Home Loan Bank, Consolidated Obligations, Bonds | $ 87,523 | $ 88,647 |
Bonds, Due in one year or less, weighted average interest rate | 1.34% | 0.91% |
Bonds, Due after one year through two years, weighted average interest rate | 1.41% | 1.05% |
Bonds, Due after two years through three years, weighted average interest rate | 1.67% | 1.67% |
Bonds, Due after three years through four years, weighted average interest rate | 1.72% | 1.68% |
Bonds, Due after four years through five years, weighted average interest rate | 2.21% | 1.58% |
Bonds, Due after five years, weighted average interest rate | 3.03% | 2.37% |
Total, weighted average interest rate | 1.43% | 1.00% |
Consolidated Obligations (Bonds by Callable Feature) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Bonds par value | $ 87,602 | $ 88,616 |
Noncallable [Member] | ||
Debt Instrument [Line Items] | ||
Bonds par value | 79,847 | 83,487 |
Callable [Member] | ||
Debt Instrument [Line Items] | ||
Bonds par value | $ 7,755 | $ 5,129 |
Consolidated Obligations (Bonds by Maturity or Call Date) (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | $ 60,410 | $ 65,378 |
Bonds, Due after one year through two years | 17,826 | 17,065 |
Bonds, Due after two years through three years | 3,351 | 1,849 |
Bonds, Due after three years through four years | 1,287 | 1,482 |
Bonds, Due after four years through five years | 3,503 | 1,117 |
Bonds, Due after five years | 1,225 | 1,725 |
Bonds par value | 87,602 | 88,616 |
Earlier of Contractual Maturity or Next Call Date [Member] | ||
Debt Instrument [Line Items] | ||
Bonds, Due in one year or less | 66,715 | 70,232 |
Bonds, Due after one year through two years | 17,071 | 15,250 |
Bonds, Due after two years through three years | 2,362 | 1,399 |
Bonds, Due after three years through four years | 612 | 1,103 |
Bonds, Due after four years through five years | 308 | 162 |
Bonds, Due after five years | $ 534 | $ 470 |
Consolidated Obligations (Discount Notes) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Short-term Debt [Line Items] | ||
Discount notes | $ 50,139 | $ 41,292 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Discount notes | 50,139 | 41,292 |
Discount notes par value | $ 50,217 | $ 41,334 |
Discount notes weighted average interest rate | 1.21% | 0.48% |
Affordable Housing Program (Roll-forward) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Affordable Housing Program [Roll Forward] | |||
AHP Obligation, beginning balance | $ 69 | $ 63 | $ 65 |
AHP Assessments | 39 | 31 | 33 |
Subsidy usage, net | (31) | (25) | (35) |
AHP Obligation, ending balance | $ 77 | $ 69 | $ 63 |
Affordable Housing Program (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Assessments [Abstract] | ||
Affordable Housing Program required aggregate contribution amount | $ 100 | |
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding | $ 24 | $ 27 |
Affordable Housing Program required contribution percentage | 10.00% |
Capital and Mandatorily Redeemable Capital Stock (Narrative) (Details) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
class
investor
$ / shares
|
Dec. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
|
|
Capital and Mandatorily Redeemable Capital Stock (Textual) [Abstract] | |||
Number of Finance Agency Regulatory Capital Requirements | 3 | ||
Total regulatory capital ratio, Required | 4.00% | 4.00% | |
Required leverage ratio | 5.00% | 5.00% | |
Weight applied to permanent capital in computing leverage ratio | 1.5 | ||
Weight applied to nonpermanent capital in computing leverage ratio | 1.0 | ||
Number of subclasses of capital stock | class | 2 | ||
Capital stock Class B putable par value (per share) | $ / shares | $ 100 | $ 100 | |
Membership stock requirement percentage | 0.09% | ||
Membership stock requirement, maximum | $ 15 | ||
Activity based capital stock required by members as a percent of total advances and mortgage loans oustanding as disclosed in the statement of condition | 4.25% | ||
Activity based capital stock required by members as a percent of targeted debt or equity investments sold by member to the bank | 8.00% | ||
Activity based capital stock required by member as a percentage of outstanding balance of acquired member assets | 0.00% | 0.00% | |
Dividends, Common Stock, Cash | $ 238 | $ 226 | $ 207 |
Redemption period for excess capital stock (in years) | 5 years | ||
Number of largest holders of capital stock | investor | 10 | ||
Aggregate amount of capital stock held by ten largest holders of capital stock | $ 3,183 | $ 3,018 | |
Aggregate percentage of capital stock held by ten largest holders of capital stock | 61.80% | 60.90% |
Capital and Mandatorily Redeemable Capital Stock (Regulatory Capital Rules and Requirements) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Capital [Abstract] | ||
Risk based capital, Required | $ 1,581 | $ 1,701 |
Risk based capital, Actual | $ 7,157 | $ 6,848 |
Total regulatory capital ratio, Required | 4.00% | 4.00% |
Total regulatory capital ratio, Actual | 4.88% | 4.94% |
Total regulatory capital, Required | $ 5,863 | $ 5,547 |
Total regulatory capital, Actual | $ 7,157 | $ 6,848 |
Leverage capital ratio, Required | 5.00% | 5.00% |
Leverage capital ratio, Actual | 7.33% | 7.41% |
Leverage Capital, Required | $ 7,328 | $ 6,934 |
Leverage Capital, Actual | $ 10,736 | $ 10,273 |
Capital and Mandatorily Redeemable Capital Stock (Mandatorily Redeemable Capital Stock Roll-forward) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Activity In Mandatorily Redeemable Capital Stock | |||
Balance, beginning of year | $ 1 | $ 14 | $ 19 |
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | 34 | 7 | 21 |
Repurchase/redemption of mandatorily redeemable capital stock | (34) | (20) | (26) |
Balance, end of year | $ 1 | $ 1 | $ 14 |
Capital and Mandatorily Redeemable Capital Stock (Mandatorily Redeemable Capital Stock by Year of Redemption) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Capital [Abstract] | ||||
Due in one year or less | $ 1 | $ 0 | ||
Due after three years through four years | 0 | 1 | ||
Mandatorily redeemable capital stock | $ 1 | $ 1 | $ 14 | $ 19 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net change in fair value | $ 8 | $ 27 | $ (28) | |||
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 2 | 3 | 5 | |||
Pension and postretirement benefit plans | (4) | 0 | 3 | |||
Pension and Postretirement Benefits [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | (20) | (20) | (23) | |||
Noncredit other-than-temporary impairment losses | 0 | |||||
Net change in fair value | 0 | 0 | 0 | |||
Actuarial (loss) gain | (5) | (1) | 1 | |||
Prior service cost | (1) | |||||
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 0 | 0 | 0 | |||
Pension and postretirement benefit plans | [1] | 2 | 1 | 2 | ||
Net current period other comprehensive income (loss) | (4) | 0 | 3 | |||
Accumulated Other Comprehensive Income (Loss), End of period | (24) | (20) | (20) | |||
Total Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | 104 | 75 | 95 | |||
Noncredit other-than-temporary impairment losses | (1) | |||||
Net change in fair value | 8 | 27 | (28) | |||
Actuarial (loss) gain | (5) | (1) | 1 | |||
Prior service cost | (1) | |||||
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 2 | 3 | 5 | |||
Pension and postretirement benefit plans | [1] | 2 | 1 | 2 | ||
Net current period other comprehensive income (loss) | 6 | 29 | (20) | |||
Accumulated Other Comprehensive Income (Loss), End of period | 110 | 104 | 75 | |||
Available-for-sale Securities [Member] | Noncredit Portion of Other Than Temporary Impairment Losses [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Beginning of period | 124 | 95 | 118 | |||
Noncredit other-than-temporary impairment losses | (1) | |||||
Net change in fair value | 8 | 27 | (28) | |||
Actuarial (loss) gain | 0 | 0 | 0 | |||
Prior service cost | 0 | |||||
Reclassification of noncredit portion of other-than-temporary impairment losses included in net income | 2 | 3 | 5 | |||
Pension and postretirement benefit plans | 0 | 0 | 0 | |||
Net current period other comprehensive income (loss) | 10 | 29 | (23) | |||
Accumulated Other Comprehensive Income (Loss), End of period | $ 134 | $ 124 | $ 95 | |||
|
Pension and Post Retirement Benefit Plans (Multi-employer Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jul. 01, 2017 |
Jul. 01, 2016 |
Jul. 01, 2015 |
|||
Multiemployer Plans [Line Items] | ||||||||
Multiemployer plan number | 333 | |||||||
Pentegra Defined Benefit Plan [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Pension Cost (Reversal of Cost) | $ 12 | $ 12 | $ 11 | |||||
Pentegra Plan funded status as of July 1 | [1] | 111.30% | 104.72% | 107.01% | ||||
Bank's funded status as of the plan year end | 117.96% | 105.51% | 108.82% | |||||
Multiemployer Plans, Pension [Member] | ||||||||
Multiemployer Plans [Line Items] | ||||||||
Entity tax identification number | 135645888 | |||||||
|
Pension and Post Retirement Benefit Plans (Defined Contribution Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Qualifed Defined Contribution Plan [Member] | |||
Defined Contribution Plan Disclosures [Line Items] | |||
Defined Contribution Plan, Cost | $ 3 | $ 2 | $ 2 |
Pension and Post Retirement Benefit Plans (Deferred Compensation) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Tax, after Reclassification Adjustment, Attributable to Parent | $ (4) | $ 0 | $ 3 |
Minimum obligation under deferred compensation plan | 3 | 3 | |
Deferred compensation and accrued earnings included in operating expenses | $ 1 | $ 1 | $ 1 |
Pension and Post Retirement Benefit Plans (Defined Benefit Plan) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 3 | $ 3 |
Other Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan amounts recognized in other liabilities | $ 65 | $ 56 |
Pension and Post Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net pension cost charged to compensation and benefit expense for the year ended December 31 | $ 6 | $ 6 | $ 6 |
Pension and Post Retirement Benefit Plans (Pension Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total recognized in other comprehensive income (loss) | $ (4) | $ 0 | $ 3 |
Derivatives and Hedging Activities (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 507 | $ 1,061 | ||||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 34 | 22 | ||||||||
Total notional amount of derivatives before netting and collateral adjustments | 58,933 | 81,197 | ||||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 209 | 282 | ||||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 369 | 1,073 | ||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | 125 | 73 | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (348) | (966) | |||||||
Derivative assets | 334 | 355 | ||||||||
Derivative liabilities | 21 | 107 | ||||||||
Variation Margin for Daily Settled Contracts, Net | 107 | |||||||||
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Total notional amount of derivatives before netting and collateral adjustments | 45,057 | [3] | 65,027 | |||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 198 | [3] | 256 | |||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 359 | [3] | 1,029 | |||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Total notional amount of derivatives before netting and collateral adjustments | 13,876 | 16,170 | ||||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 11 | 26 | ||||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 10 | 44 | ||||||||
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Total notional amount of derivatives before netting and collateral adjustments | 876 | [3] | 1,158 | |||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 9 | [3] | 9 | |||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 9 | [3] | 31 | |||||||
Not Designated as Hedging Instrument [Member] | Interest Rate Caps or Floors [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Total notional amount of derivatives before netting and collateral adjustments | 13,000 | 15,000 | ||||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 2 | 17 | ||||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 1 | 13 | ||||||||
Not Designated as Hedging Instrument [Member] | Mortgages [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Total notional amount of derivatives before netting and collateral adjustments | 0 | 12 | ||||||||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | ||||||||
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 0 | $ 0 | ||||||||
|
Derivatives and Hedging Activities (Net Gains (Losses) on Derivatives and Hedging Activities) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivatives and hedged items in fair value hedging relationships | $ 343 | $ 120 | $ 269 | |||
Net gains (losses) on derivatives not designated as hegding instruments | (3) | (1) | (8) | |||
Derivative Instruments, Other Gain (Loss) | 1 | [1] | 0 | 0 | ||
Net gains on derivatives and hedging activities | 341 | 119 | 261 | |||
Interest Rate Swaps [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivatives and hedged items in fair value hedging relationships | 343 | 120 | 269 | |||
Net gains (losses) on derivatives not designated as hegding instruments | 6 | 30 | 53 | |||
Interest Rate Caps or Floors [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivatives not designated as hegding instruments | (3) | (1) | (2) | |||
Net Interest Settlements [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains (losses) on derivatives not designated as hegding instruments | $ (6) | $ (30) | $ (59) | |||
|
Derivatives and Hedging Activities (Effect of Fair Value Hedged Related Derivative Instruments) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) on Derivative | $ 486 | $ 372 | $ 349 | |||
Gains (Losses) on Hedged Item | (143) | (252) | (80) | |||
Net Fair Value Hedge Ineffectiveness | 343 | 120 | 269 | |||
Effect of Derivatives on Net Interest Income | [1] | (182) | (302) | (235) | ||
Advances [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) on Derivative | 580 | 524 | 448 | |||
Gains (Losses) on Hedged Item | (240) | (393) | (169) | |||
Net Fair Value Hedge Ineffectiveness | 340 | 131 | 279 | |||
Effect of Derivatives on Net Interest Income | [1] | (254) | (529) | (713) | ||
Consolidated Obligation Bonds [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) on Derivative | (97) | (154) | (93) | |||
Gains (Losses) on Hedged Item | 99 | 146 | 81 | |||
Net Fair Value Hedge Ineffectiveness | 2 | (8) | (12) | |||
Effect of Derivatives on Net Interest Income | [1] | 75 | 230 | 469 | ||
Short-term Debt [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) on Derivative | 3 | 2 | (6) | |||
Gains (Losses) on Hedged Item | (2) | (5) | 8 | |||
Net Fair Value Hedge Ineffectiveness | 1 | (3) | 2 | |||
Effect of Derivatives on Net Interest Income | [1] | $ (3) | $ (3) | $ 9 | ||
|
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | $ 209 | $ 282 | |||||||
Derivative Liability, Fair Value, Gross Liability | 369 | 1,073 | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | 125 | 73 | ||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (348) | (966) | ||||||
Derivative assets | 334 | 355 | |||||||
Derivative liabilities | 21 | 107 | |||||||
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged | [3] | 0 | 0 | ||||||
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged | 0 | 0 | |||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [3] | 334 | 355 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 21 | 107 | |||||||
Credit Risk Contract [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Credit Derivative Exposure Net | 226 | 346 | |||||||
Over the Counter [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 19 | 70 | |||||||
Derivative Liability, Fair Value, Gross Liability | 106 | 370 | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (17) | (69) | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (85) | (263) | |||||||
Derivative assets | 2 | 1 | |||||||
Derivative liabilities | 21 | 107 | |||||||
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged | 0 | 0 | |||||||
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged | 0 | 0 | |||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | 1 | |||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 21 | 107 | |||||||
Exchange Cleared [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 190 | 212 | |||||||
Derivative Liability, Fair Value, Gross Liability | 263 | 703 | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 142 | 142 | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (263) | (703) | |||||||
Derivative assets | 332 | 354 | |||||||
Derivative liabilities | 0 | 0 | |||||||
Derivative, Collateral, Obligation to Return Securities That Cannot Be Sold or Repledged | 0 | 0 | |||||||
Derivative, Collateral, Right to Reclaim Securities That Cannot Be Sold or Repledged | 0 | 0 | |||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 332 | 354 | |||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 | |||||||
|
Derivatives and Hedging Activities (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Federal Home Loan Bank, Advances, Maximum Contractual Maturity Period | 30 years |
Derivative credit-risk-related contingent features net liability position aggregate fair value | $ 14 |
Collateral already posted, aggregate fair value | 0 |
Additional collateral | $ 9 |
Estimated Fair Values (Estimated Fair Value Measurements on a Recurring Basis) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Assets: | |||||||
Trading Securities, Debt | $ 56 | $ 262 | |||||
Available-for-sale Securities | 1,104 | 1,345 | |||||
Derivative assets | 334 | 355 | |||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | 125 | 73 | ||||
Liabilities: | |||||||
Derivative liabilities | 21 | 107 | |||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (348) | (966) | ||||
Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 56 | 261 | |||||
State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 1 | |||||
Fair Value, Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2] | 125 | 73 | ||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||
Liabilities: | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | (348) | (966) | ||||
Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||||||
Assets: | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 125 | 73 | |||||
Liabilities: | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (348) | (966) | |||||
Fair Value, Inputs, Level 1 [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 0 | |||||
Available-for-sale Securities | 0 | 0 | |||||
Derivative assets | 0 | 0 | |||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||
Liabilities: | |||||||
Derivative liabilities | 0 | 0 | |||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||
Total recurring assets at fair value | 48 | 37 | |||||
Liabilities: | |||||||
Total liabilities at fair value | 0 | 0 | |||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 0 | |||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 0 | 0 | |||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||||||
Assets: | |||||||
Derivative assets | 0 | 0 | |||||
Liabilities: | |||||||
Derivative liabilities | 0 | 0 | |||||
Fair Value, Inputs, Level 2 [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 56 | 262 | |||||
Available-for-sale Securities | 0 | 0 | |||||
Derivative assets | 209 | 282 | |||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||
Liabilities: | |||||||
Derivative liabilities | 369 | 1,073 | |||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 262 | ||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||
Total recurring assets at fair value | 265 | 544 | |||||
Liabilities: | |||||||
Total liabilities at fair value | 369 | 1,073 | |||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 56 | 261 | |||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 1 | ||||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 0 | 0 | |||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||||||
Assets: | |||||||
Derivative assets | 209 | 282 | |||||
Liabilities: | |||||||
Derivative liabilities | 369 | 1,073 | |||||
Fair Value, Inputs, Level 3 [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 0 | |||||
Available-for-sale Securities | 1,104 | 1,345 | |||||
Derivative assets | 0 | 0 | |||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||
Liabilities: | |||||||
Derivative liabilities | 0 | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||
Total recurring assets at fair value | 1,104 | 1,345 | |||||
Liabilities: | |||||||
Total liabilities at fair value | 0 | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 0 | ||||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||||||
Assets: | |||||||
Derivative assets | 0 | 0 | |||||
Liabilities: | |||||||
Derivative liabilities | 0 | 0 | |||||
Estimate of Fair Value Measurement [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||
Derivative assets | 334 | 355 | |||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||
Liabilities: | |||||||
Derivative liabilities | 21 | 107 | |||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 262 | ||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||
Total recurring assets at fair value | 1,542 | 1,999 | |||||
Liabilities: | |||||||
Total liabilities at fair value | 21 | 107 | |||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government-sponsored enterprises debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 56 | 261 | |||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | State or local housing agency debt obligations [Member] | |||||||
Assets: | |||||||
Trading Securities, Debt | 1 | ||||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Private-label residential [Member] | |||||||
Assets: | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||||||
Assets: | |||||||
Derivative assets | 334 | 355 | |||||
Liabilities: | |||||||
Derivative liabilities | $ 21 | $ 107 | |||||
|
Estimated Fair Values (Roll-forward of Level 3 Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - Available-for-Sale Securities, Private Label Residential Mortgage Backed Securities [Member] - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||
Reconciliation of Available-For-Sale Securities Measured at Fair Value | |||||||
Balance, beginning of year | $ 1,345 | $ 1,662 | $ 1,981 | ||||
Included in net impairment losses recognized in earnings | (2) | (3) | [1] | (5) | [1] | ||
Included in other comprehensive loss | 10 | 29 | [1] | (23) | [1] | ||
Accretion of credit losses in net interest income | 62 | 53 | [1] | 42 | [1] | ||
Settlements | (311) | (396) | (333) | ||||
Balance, end of year | $ 1,104 | $ 1,345 | $ 1,662 | ||||
|
Estimated Fair Values (Fair Value Summary) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
---|---|---|---|---|---|---|---|---|---|
Assets: | |||||||||
Cash and due from banks | $ 2,357 | $ 1,815 | $ 1,751 | $ 915 | |||||
Trading Securities, Debt | 56 | 262 | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||||
Held-to-maturity Securities | 25,162 | 24,641 | |||||||
Held-to-maturity securities | 25,219 | 24,633 | |||||||
Loan to another FHLBank | 200 | 0 | |||||||
Interest Receivable | 208 | 171 | |||||||
Derivative assets | 334 | 355 | |||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | 125 | 73 | ||||||
Liabilities: | |||||||||
Mandatorily redeemable capital stock | 1 | 1 | $ 14 | $ 19 | |||||
Accrued interest payable | 142 | 128 | |||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (348) | (966) | ||||||
Derivative liabilities | 21 | 107 | |||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets: | |||||||||
Cash and due from banks | 2,357 | 1,815 | |||||||
Interest bearing-deposits | 0 | 0 | |||||||
Securities purchased under agreements to resell | 0 | 0 | |||||||
Federal funds sold | 0 | 0 | |||||||
Trading Securities, Debt | 0 | 0 | |||||||
Available-for-sale Securities | 0 | 0 | |||||||
Held-to-maturity securities | 0 | 0 | |||||||
Advances | 0 | 0 | |||||||
Mortgage loans held for portfolio, net | 0 | 0 | |||||||
Loan to another FHLBank | 0 | ||||||||
Interest Receivable | 0 | 0 | |||||||
Derivative assets | 0 | 0 | |||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||||
Liabilities: | |||||||||
Interest-bearing deposits | 0 | 0 | |||||||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares | 1 | 1 | |||||||
Accrued interest payable | 0 | 0 | |||||||
Derivative liabilities | 0 | 0 | |||||||
Fair Value, Inputs, Level 1 [Member] | Consolidated Obligation Bonds [Member] | |||||||||
Liabilities: | |||||||||
Bonds | 0 | 0 | |||||||
Fair Value, Inputs, Level 1 [Member] | Short-term Debt [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 0 | 0 | |||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets: | |||||||||
Cash and due from banks | 0 | 0 | |||||||
Interest bearing-deposits | 2,176 | 1,106 | |||||||
Securities purchased under agreements to resell | 2,500 | 1,386 | |||||||
Federal funds sold | 9,380 | 7,770 | |||||||
Trading Securities, Debt | 56 | 262 | |||||||
Available-for-sale Securities | 0 | 0 | |||||||
Held-to-maturity securities | 24,643 | 23,843 | |||||||
Advances | 102,446 | 99,062 | |||||||
Mortgage loans held for portfolio, net | 467 | 569 | |||||||
Loan to another FHLBank | 200 | ||||||||
Accrued interest receivable | 208 | 171 | |||||||
Derivative assets | 209 | 282 | |||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||||
Liabilities: | |||||||||
Interest-bearing deposits | 1,177 | 1,118 | |||||||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares | 0 | 0 | |||||||
Accrued interest payable | 142 | 128 | |||||||
Derivative liabilities | 369 | 1,073 | |||||||
Fair Value, Inputs, Level 2 [Member] | Consolidated Obligation Bonds [Member] | |||||||||
Liabilities: | |||||||||
Bonds | 87,501 | 88,768 | |||||||
Fair Value, Inputs, Level 2 [Member] | Short-term Debt [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 50,132 | 41,293 | |||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets: | |||||||||
Cash and due from banks | 0 | 0 | |||||||
Interest bearing-deposits | 0 | 0 | |||||||
Securities purchased under agreements to resell | 0 | 0 | |||||||
Federal funds sold | 0 | 0 | |||||||
Trading Securities, Debt | 0 | 0 | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||||
Held-to-maturity securities | 576 | 790 | |||||||
Advances | 0 | 0 | |||||||
Mortgage loans held for portfolio, net | 0 | 0 | |||||||
Loan to another FHLBank | 0 | ||||||||
Interest Receivable | 0 | 0 | |||||||
Derivative assets | 0 | 0 | |||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||||
Liabilities: | |||||||||
Interest-bearing deposits | 0 | 0 | |||||||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares | 0 | 0 | |||||||
Accrued interest payable | 0 | 0 | |||||||
Derivative liabilities | 0 | 0 | |||||||
Fair Value, Inputs, Level 3 [Member] | Consolidated Obligation Bonds [Member] | |||||||||
Liabilities: | |||||||||
Bonds | 0 | 0 | |||||||
Fair Value, Inputs, Level 3 [Member] | Short-term Debt [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 0 | 0 | |||||||
Carrying Value [Member] | |||||||||
Assets: | |||||||||
Cash and due from banks | 2,357 | 1,815 | |||||||
Interest bearing-deposits | 2,176 | 1,106 | |||||||
Securities purchased under agreements to resell | 2,500 | 1,386 | |||||||
Federal funds sold | 9,380 | 7,770 | |||||||
Trading Securities, Debt | 56 | 262 | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||||
Held-to-maturity Securities | 25,162 | 24,641 | |||||||
Advances | 102,440 | 99,077 | |||||||
Mortgage loans held for portfolio, net | 435 | 523 | |||||||
Interest Receivable | 208 | 171 | |||||||
Derivative assets | 334 | 355 | |||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||||
Liabilities: | |||||||||
Interest-bearing deposits | 1,177 | 1,118 | |||||||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Fair Value of Shares | 1 | 1 | |||||||
Accrued interest payable | 142 | 128 | |||||||
Derivative liabilities | 21 | 107 | |||||||
Carrying Value [Member] | Consolidated Obligation Bonds [Member] | |||||||||
Liabilities: | |||||||||
Bonds | 87,523 | 88,647 | |||||||
Carrying Value [Member] | Short-term Debt [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 50,139 | 41,292 | |||||||
Estimate of Fair Value Measurement [Member] | |||||||||
Assets: | |||||||||
Cash and due from banks | 2,357 | 1,815 | |||||||
Interest bearing-deposits | 2,176 | 1,106 | |||||||
Securities purchased under agreements to resell | 2,500 | 1,386 | |||||||
Federal funds sold | 9,380 | 7,770 | |||||||
Trading securities | 56 | 262 | |||||||
Available-for-sale Securities | 1,104 | 1,345 | |||||||
Held-to-maturity securities | 25,219 | 24,633 | |||||||
Advances | 102,446 | 99,062 | |||||||
Mortgage loans held for portfolio, net | 467 | 569 | |||||||
Loan to another FHLBank | 200 | ||||||||
Accrued interest receivable | 208 | 171 | |||||||
Derivative assets | 334 | 355 | |||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||||
Liabilities: | |||||||||
Interest-bearing deposits | 1,177 | 1,118 | |||||||
Mandatorily redeemable capital stock | 1 | 1 | |||||||
Accrued interest payable | 142 | 128 | |||||||
Derivative liabilities | 21 | 107 | |||||||
Estimate of Fair Value Measurement [Member] | Consolidated Obligation Bonds [Member] | |||||||||
Liabilities: | |||||||||
Bonds | 87,501 | 88,768 | |||||||
Estimate of Fair Value Measurement [Member] | Short-term Debt [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 41,293 | ||||||||
Estimate of Fair Value Measurement [Member] | Discount Notes [Member] | |||||||||
Liabilities: | |||||||||
Discount notes | 50,132 | ||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Assets: | |||||||||
Trading Securities, Debt | 0 | ||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [2] | 125 | 73 | ||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||||
Liabilities: | |||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [2] | (348) | (966) | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets: | |||||||||
Trading Securities, Debt | 0 | ||||||||
Grantor trust assets (included in Other assets) | 48 | 37 | |||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets: | |||||||||
Trading Securities, Debt | 262 | ||||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets: | |||||||||
Trading Securities, Debt | 0 | ||||||||
Grantor trust assets (included in Other assets) | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | |||||||||
Assets: | |||||||||
Trading Securities, Debt | 262 | ||||||||
Grantor trust assets (included in Other assets) | $ 48 | $ 37 | |||||||
|
Commitments and Contingencies (Details) $ in Millions |
Dec. 31, 2017
USD ($)
letter_of_credit
|
Dec. 31, 2016
USD ($)
letter_of_credit
|
|||||
---|---|---|---|---|---|---|---|
Standby Letters of Credit [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number Of Outstanding Standby Letters Of Credit Renewable Annually | letter_of_credit | 16 | 12 | |||||
Standby Letters Of Credit Issued Renewable Annually | $ 59 | $ 34 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | [1] | 9,520 | 10,934 | ||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 20,669 | 21,734 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 30,189 | 32,668 | |||||
Commitments to Fund Additional Advances [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 0 | 100 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 200 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 0 | 300 | |||||
Unsettled Consolidation Obligation Bonds [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | [2] | 3 | 15 | ||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | [2] | 0 | 0 | ||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | [2] | 3 | 15 | ||||
Mortgages [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 0 | 12 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 0 | $ 12 | |||||
|
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Loss Contingencies [Line Items] | |||
The FHLBank's outstanding consolidated obligations for which the Bank is jointly and severally liable | $ 896,441 | $ 859,361 | |
Operating leases rent expense | 1 | 2 | $ 2 |
Carrying value guarantees related to standby letters of credit | $ 219 | 358 | |
CommitmentsToPurchaseMortgageLoansMaximumTerm | 91 days | ||
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Carrying value guarantees related to standby letters of credit | $ 119 | $ 135 |
Transactions with Shareholders (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Minimum | ||
RelatedPartyTransactionDefinitionOfRelatedPartyCapitalStockPercentage | 10.00% | |
Definition of shareholder concentration, percentage | 10.00% | |
Federal Home Loan Bank, Regulatory Capital, Actual | $ 7,157 | $ 6,848 |
Federal Home Loan Bank, Advances, Par Value | 102,249 | 98,288 |
Capital One, National Association [Member] | ||
Minimum | ||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 745 | |
Percent of Total Regulatory Capital Stock Outstanding | 15.03% | |
Federal Home Loan Bank, Advances, Par Value | $ 17,176 | |
Percent of Total Par Value Advances | 17.48% | |
Interest-bearing Deposits | $ 16 | |
Percent of Total Interest-bearing Deposits | 1.41% | |
Navy Federal Credit Union [Member] | ||
Minimum | ||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 675 | $ 589 |
Percent of Total Regulatory Capital Stock Outstanding | 13.09% | 11.88% |
Federal Home Loan Bank, Advances, Par Value | $ 15,530 | $ 13,495 |
Percent of Total Par Value Advances | 15.19% | 13.73% |
Interest-bearing Deposits | $ 195 | $ 156 |
Percent of Total Interest-bearing Deposits | 16.58% | 13.93% |
Bank of America [Member] | ||
Minimum | ||
Federal Home Loan Bank, Regulatory Capital, Actual | $ 908 | $ 504 |
Percent of Total Regulatory Capital Stock Outstanding | 17.61% | 10.17% |
Federal Home Loan Bank, Advances, Par Value | $ 21,010 | $ 11,511 |
Percent of Total Par Value Advances | 20.55% | 11.71% |
Interest-bearing Deposits | $ 0 | $ 0 |
Percent of Total Interest-bearing Deposits | 0.01% | 0.01% |
Transaction with Other FHLBanks (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Schedule of Other Transactions [Line Items] | |||||
Loan to another FHLBank | $ 0 | $ 200 | $ 0 | ||
Percent of Total Master Commitment Acquired from a Member of FHLBank Indianapolis | 90.00% | ||||
Dollar Value of Master Commitment Agreement Executed between An FHLBank and A Member | $ 100 | ||||
Principal Amount of Mortgage Loans Purchased | $ 18 | 72 | |||
Loans made to other FHLBanks | (950) | (1,010) | $ (11,759) | ||
Principal collected on loans made to other FHLBanks | 750 | 1,010 | 11,759 | ||
Increase (Decrease) in Loans to Federal Home Loan Banks | (200) | 0 | 0 | ||
Proceeds from short-term borrowings from other FHLBanks | 500 | 0 | 927 | ||
Payments of short-term borrowings from other FHLBanks | (500) | 0 | (927) | ||
Increase (Decrease) in Loans from Federal Home Loan Banks | 0 | 0 | $ 0 | ||
Outstanding Balance of Mortgage Loans Purchased under Master Commitment Agreement between A Member and An FHLBank | 72 | 84 | 72 | ||
Loans from Other Federal Home Loan Banks | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details) $ in Millions |
Feb. 01, 2018
USD ($)
|
---|---|
Subsequent Events [Abstract] | |
Payments of Dividends | $ 65 |
%N;%#9SZ,%Z>^F_XW9-L-5U^6-E]D
M+V,[9\GJ)*$K";U75%IAS462#?>_F"!H@J9X>QU/.-[">#O%\W6\%4F<)'Z2
M'$Y)6!=$'EID"N.P$X9.6#MAX>0D<==.3/#"B189DWOLQ$$G3CMQPHG33EPN
M1K_2(F.+A!,/G7CM1*2[\NHFI2VD$RT*(>3828!.@IYG <<7,+[0F10BDT*9
M=')LM81\8KJ7T$:I;93"1HGFCYB)%1!93DQWDV-\Y,H+*W[D8)X9KR "9.PY
M 1*3P)G1?HST8\ 6%)^D(RX2/C!9#.D_9#T0WH< ,5IJ!2C- :60IS5P=EE(787'D+N+!/IF!,F> S-B2.7-2
M('OE70BV-D+N0B:#@HRDHA ^NT) ;&(?7J&;QS*T!3"6H1R /!+[X*!%@-C4
M%HN<+*FMU84XI04PDT?['X&']AIA0*Y]WG6@T4&5)+9@ !3:VPL X ;N9K_O/%U^[KIAAO! 38C07_P,N(!S<9^(\2B5,^*)R,%;)
M6<6E(MGK-/(NC..TL]_/M#B!S@2Z$&Z##YF,0N9?F65%IM6(]'3V/?-7O#U0
M=S:E#X:C"'LN>>.BER))MAFY>*$9 <0Z5J(
M4_H?/5VG;U (-Q$)LY(@$3)%(")A70JP*:^.0N/O$3)%Z"Q!"D=S82Q\:(00;3
MC38R@%PK'E2*T@4WJ5=,.A>3(4?,B,ENTA2%HV0.N6&YDY%Y960>&;DC(YOE
M2-T#F4-0ZI>!O#+03,8J=E2@60J80>">AP>5HF2A3'*OEMQ3)@MF5EZ"U>.%
M6G@)B@<*M9@9!3!S#L.#R7._$!#[O_SX@3*UH+L\[K<_A\0+0A9:$'B@4"W(
MG\4*F4/@@A!_%P+P_Z5J,>CNY2!7B0>49XZ6Z*9%ZSOS&^:GIA/!CDG5[4U/
M/C(FB2*,GY2I6EW3TX*2H]337,WY>%>-"\EZ>P]'TY^!ZB]02P,$% @
M8&%H3!QUYE(# @ /08 !D !X;"]W;W)K%%DUHS$3KWO17CBW8%C;\K@C*V(=RC>H?=2
M\"3-V"40S3''*8:O8G9+!$/V)07?2G'D_\#Y-GR_J7 ?X?L_%%YO$Z2;!&DD
M2/];XE;,S5])V*JG"FP3I\F1T@PZ3O+*NPSL/8]O\CM\FO9'89M..W(V'E\V
M]K\VQ@-*2:YPA%K\8(LAH?;A>(MG.XW99'C3SS^(+=^X> =02P,$% @
M8&%H3,\[W*^T 0 T@, !D !X;"]W;W)K
+626+,! #0 P
M&0 'AL+W=O8\V:?L&HBFF-,8PQF3X2C"-V?>N.RYH ]I1LZ>:,8<)@Q=838+@CCV
M18+&) [T4SF-EV^C#K>A?/O!X6V<8!