10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2017

OR

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

Commission File Number:  000-51404

FEDERAL HOME LOAN BANK OF INDIANAPOLIS

(Exact name of registrant as specified in its charter)

Federally chartered corporation (State or other jurisdiction of incorporation or organization)	35-6001443 (I.R.S. employer identification number)
8250 Woodfield Crossing Boulevard Indianapolis, IN (Address of principal executive offices)	46240 (Zip code)

(317) 465-0200

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.

x  Yes            o  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x   Yes            o  No

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

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

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o  Yes            x  No

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

	Shares outstanding as of July 31, 2017
Class B Stock, par value $100	18,949,958

Table of Contents		Page
		Number
	Glossary of Terms	3
	Special Note Regarding Forward-Looking Statements	5
PART I.	FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS (unaudited)
	Statements of Condition as of June 30, 2017 and December 31, 2016	6
	Statements of Income for the Three and Six Months Ended June 30, 2017 and 2016	7
	Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2017 and 2016	8
	Statements of Capital for the Six Months Ended June 30, 2016 and 2017	9
	Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016	10
	Notes to Financial Statements:
	Note 1 - Summary of Significant Accounting Policies	12
	Note 2 - Recently Adopted and Issued Accounting Guidance	12
	Note 3 - Available-for-Sale Securities	13
	Note 4 - Held-to-Maturity Securities	15
	Note 5 - Other-Than-Temporary Impairment	17
	Note 6 - Advances	16
	Note 7 - Mortgage Loans Held for Portfolio	18
	Note 8 - Allowance for Credit Losses	18
	Note 9 - Derivatives and Hedging Activities	22
	Note 10 - Consolidated Obligations	26
	Note 11 - Affordable Housing Program	27
	Note 12 - Capital	27
	Note 13 - Accumulated Other Comprehensive Income (Loss)	29
	Note 14 - Segment Information	31
	Note 15 - Estimated Fair Values	32
	Note 16 - Commitments and Contingencies	35
	Note 17 - Related Party and Other Transactions	36
Item 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	Presentation	37
	Executive Summary	37
	Selected Financial Data	39
	Results of Operations and Changes in Financial Condition	40
	Operating Segments	46
	Analysis of Financial Condition	47
	Liquidity and Capital Resources	51
	Off-Balance Sheet Arrangements	53
	Critical Accounting Policies and Estimates	53
	Recent Accounting and Regulatory Developments	55
	Risk Management	56
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	59
Item 4.	CONTROLS AND PROCEDURES	60
PART II.	OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	60
Item 1A.	RISK FACTORS	60
Item 6.	EXHIBITS	61

GLOSSARY OF TERMS

ABS: Asset-Backed Securities

Advance: Secured loan to members, former members or Housing Associates

AFS: Available-for-Sale

AHP: Affordable Housing Program

AMA: Acquired Member Assets

AOCI: Accumulated Other Comprehensive Income (Loss)

Bank Act: Federal Home Loan Bank Act of 1932, as amended

bps: basis points

CBSA: Core Based Statistical Areas, refer collectively to metropolitan and micropolitan statistical areas as defined by the United States Office of Management and Budget

CDFI: Community Development Financial Institution

CE: Credit Enhancement

CEO: Chief Executive Officer

CFI: Community Financial Institution

CFPB: Consumer Financial Protection Bureau

CFTC: United States Commodity Futures Trading Commission

Clearinghouse: A United States Commodity Futures Trading Commission-registered derivatives clearing organization

CME:CME Clearing

CMO: Collateralized Mortgage Obligation

CO bond: Consolidated Obligation bond

DB plan: Pentegra Defined Benefit Pension Plan for Financial Institutions

DC plan: Pentegra Defined Contribution Retirement Savings Plan for Financial Institutions

Director: Director of the Federal Housing Finance Agency

Dodd-Frank Act: Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended

Exchange Act: Securities Exchange Act of 1934, as amended

Fannie Mae: Federal National Mortgage Association

FASB: Financial Accounting Standards Board

FDIC: Federal Deposit Insurance Corporation

FHA: Federal Housing Administration

FHLBank: A Federal Home Loan Bank

FHLBanks: The 11 Federal Home Loan Banks or a subset thereof

FHLBank System: The 11 Federal Home Loan Banks and the Office of Finance

FICO®: Fair Isaac Corporation, the creators of the FICO credit score

Final Membership Rule: Final Rule on FHLBank Membership issued by the Federal Housing Finance Agency effective February 19, 2016

Finance Agency: Federal Housing Finance Agency, successor to Finance Board

Finance Board: Federal Housing Finance Board, predecessor to Finance Agency

Fitch: Fitch Ratings, Inc.

FLA: First Loss Account

FOMC: Federal Open Market Committee

Form 8-K: Current Report on Form 8-K as filed with the SEC under the Exchange Act

Form 10-K: Annual Report on Form 10-K as filed with the SEC under the Exchange Act

Form 10-Q: Quarterly Report on Form 10-Q as filed with the SEC under the Exchange Act

FRB: Federal Reserve Board

Freddie Mac: Federal Home Loan Mortgage Corporation

GAAP: Generally Accepted Accounting Principles in the United States of America

GDP: Gross Domestic Product

Genworth: Genworth Mortgage Insurance Corporation

Ginnie Mae: Government National Mortgage Association

GLB Act: Gramm-Leach-Bliley Act of 1999, as amended

GSE: United States Government-Sponsored Enterprise

HERA: Housing and Economic Recovery Act of 2008, as amended

Housing Associate: Approved lender under Title II of the National Housing Act of 1934 that is either a government agency or is chartered under federal or state law with rights and powers similar to those of a corporation

HTM: Held-to-Maturity

HUD: United States Department of Housing and Urban Development

JCE Agreement: Joint Capital Enhancement Agreement, as amended, among the 11 FHLBanks

3

KESA: Key Employee Severance Agreement between our Bank and an NEO

LCH:LCH.Clearnet LLC

LIBOR: London Interbank Offered Rate

LRA: Lender Risk Account

LTV: Loan-to-Value

MAP-21: Moving Ahead for Progress in the 21st Century Act, enacted on July 6, 2012

MBS: Mortgage-Backed Securities

MCC: Master Commitment Contract

MDC: Mandatory Delivery Commitment

MGIC: Mortgage Guaranty Insurance Corporation

Moody's: Moody's Investor Services

MPF: Mortgage Partnership Finance®

MPP: Mortgage Purchase Program, including Original and Advantage unless indicated otherwise

MRCS: Mandatorily Redeemable Capital Stock

MVE: Market Value of Equity

NRSRO: Nationally Recognized Statistical Rating Organization

OCC: Office of the Comptroller of the Currency

OCI: Other Comprehensive Income (Loss)

OIS: Overnight Indexed Swap

ORERC: Other Real Estate-Related Collateral

OTTI: Other-Than-Temporary Impairment or -Temporarily Impaired (as the context indicates)

PFI: Participating Financial Institution

PMI: Primary Mortgage Insurance

REMIC: Real Estate Mortgage Investment Conduit

REO: Real Estate Owned

RHA: Rural Housing Service of the Department of Agriculture

RMBS: Residential Mortgage-Backed Securities

S&P: Standard & Poor's Rating Service

Safety and Soundness Act: Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended

SEC: Securities and Exchange Commission

Securities Act: Securities Act of 1933, as amended

SERP: Federal Home Loan Bank of Indianapolis 2005 Supplemental Executive Retirement Plan and a similar frozen plan

SMI: Supplemental Mortgage Insurance

TBA: To Be Announced

TDR: Troubled Debt Restructuring

TVA: Tennessee Valley Authority

UCC: Uniform Commercial Code

UPB: Unpaid Principal Balance

VA: Department of Veterans Affairs

VaR: Value at Risk

VIE: Variable Interest Entity

WAIR: Weighted-Average Interest Rate

4

Special Note Regarding Forward-Looking Statements

Statements in this Form 10-Q, including statements describing our objectives, projections, estimates or predictions, may be considered to be "forward-looking statements." These statements may use forward-looking terminology, such as "anticipates," "believes," "could," "estimates," "may," "should," "expects," "will," or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty and that actual results either could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the following:

• economic and market conditions, including the timing and volume of market activity, inflation or deflation, changes in the value of global currencies, and changes in the financial condition of market participants;

• volatility of market prices, interest rates, and indices or other factors, resulting from the effects of, and changes in, various monetary or fiscal policies and regulations, including those determined by the FRB and the FDIC, or a decline in liquidity in the financial markets, that could affect the value of investments (including OTTI of private-label RMBS), or collateral we hold as security for the obligations of our members and counterparties;

• demand for our advances and purchases of mortgage loans resulting from:

◦ changes in our members' deposit flows and credit demands;

◦ federal or state regulatory developments impacting suitability or eligibility of membership classes;

◦ membership changes, including, but not limited to, mergers, acquisitions and consolidations of charters;

◦ changes in the general level of housing activity in the United States and particularly our district states of Indiana and Michigan, the level of refinancing activity and consumer product preferences; and

◦ competitive forces, including, without limitation, other sources of funding available to our members;

• changes in mortgage asset prepayment patterns, delinquency rates and housing values or improper or inadequate mortgage originations and mortgage servicing;

• ability to introduce and successfully manage new products and services, including new types of collateral securing advances;

• political events, including administrative, legislative, regulatory, or other developments, and judicial rulings that affect us, our status as a secured creditor, our members (or certain classes of members), prospective members, counterparties, GSE's generally, one or more of the FHLBanks and/or investors in the consolidated obligations of the FHLBanks;

• ability to access the capital markets and raise capital market funding on acceptable terms;

• changes in our credit ratings or the credit ratings of the other FHLBanks and the FHLBank System;

• changes in the level of government guarantees provided to other United States and international financial institutions;

• competition from other entities borrowing funds in the capital markets;

• dealer commitment to supporting the issuance of our consolidated obligations;

• ability of one or more of the FHLBanks to repay its portion of the consolidated obligations, or otherwise meet its financial obligations;

• ability to attract and retain skilled personnel;

• ability to develop, implement and support technology and information systems sufficient to manage our business effectively;

• nonperformance of counterparties to uncleared and cleared derivative transactions;

• changes in terms of derivative agreements and similar agreements;

• loss arising from natural disasters, acts of war or acts of terrorism;

• changes in or differing interpretations of accounting guidance; and

• other risk factors identified in our filings with the SEC.

Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, additional disclosures may be made through reports filed with the SEC in the future, including our Forms 10-K, 10-Q and 8-K.

5

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

Federal Home Loan Bank of Indianapolis

Statements of Condition

(Unaudited, $ amounts in thousands, except par value)

	June 30, 2017		December 31, 2016
Assets:
Cash and due from banks	$	92,082	$	546,612
Interest-bearing deposits	334,432		150,225
Securities purchased under agreements to resell	2,527,000		1,781,309
Federal funds sold	2,575,000		1,650,000
Available-for-sale securities (Notes 3 and 5)	7,071,810		6,059,835
Held-to-maturity securities (estimated fair values of $5,675,036 and $5,848,692, respectively)(Notes 4 and 5)	5,633,192		5,819,573
Advances (Note 6)	32,253,350		28,095,953
Mortgage loans held for portfolio, net of allowance for loan losses of $(850) and $(850), respectively (Notes 7 and 8)	9,894,442		9,501,397
Accrued interest receivable	99,055		93,716
Premises, software, and equipment, net	36,871		37,638
Derivative assets, net (Note 9)	155,301		134,848
Other assets	39,441		36,294
Total assets	$	60,711,976	$	53,907,400
Liabilities:
Deposits	$	674,476	$	524,073
Consolidated obligations (Note 10):
Discount notes	21,036,075		16,801,763
Bonds	35,281,636		33,467,279
Total consolidated obligations, net	56,317,711		50,269,042
Accrued interest payable	117,220		98,411
Affordable Housing Program payable (Note 11)	24,629		26,598
Derivative liabilities, net (Note 9)	2,394		25,225
Mandatorily redeemable capital stock (Note 12)	166,835		170,043
Other liabilities	685,280		357,812
Total liabilities	57,988,545		51,471,204
Commitments and contingencies (Note 16)
Capital (Note 12):
Capital stock (putable at par value of $100 per share):
Class B-1 issued and outstanding shares: 17,002,171 and 14,897,390, respectively	1,700,217		1,489,739
Class B-2 issued and outstanding shares: 16,266 and 28,416, respectively	1,627		2,842
Total capital stock	1,701,844		1,492,581
Retained earnings:
Unrestricted	759,041		734,982
Restricted	166,126		152,265
Total retained earnings	925,167		887,247
Total accumulated other comprehensive income (Note 13)	96,420		56,368
Total capital	2,723,431		2,436,196
Total liabilities and capital	$	60,711,976	$	53,907,400

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

6

Federal Home Loan Bank of Indianapolis

Statements of Income

(Unaudited, $ amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Interest Income:
Advances	$	94,618		$	51,246		$	168,899		$	99,756
Prepayment fees on advances, net	84			31			102			199
Interest-bearing deposits	636			234			971			398
Securities purchased under agreements to resell	2,887			636			3,705			2,223
Federal funds sold	9,333			3,313			17,030			5,510
Available-for-sale securities	29,337			15,922			53,719			29,779
Held-to-maturity securities	28,415			27,513			53,878			53,789
Mortgage loans held for portfolio	78,304			67,759			154,280			137,171
Other interest income, net	266			452			851			737
Total interest income	243,880			167,106			453,435			329,562
Interest Expense:
Consolidated obligation discount notes	41,758			15,171			67,254			31,103
Consolidated obligation bonds	134,222			104,318			256,773			200,399
Deposits	1,079			147			1,831			222
Mandatorily redeemable capital stock	1,756			1,871			3,509			2,868
Total interest expense	178,815			121,507			329,367			234,592
Net interest income	65,065			45,599			124,068			94,970
Provision for (reversal of) credit losses	130			(242		)	281			(217		)
Net interest income after provision for credit losses	64,935			45,841			123,787			95,187
Other Income (Loss):
Total other-than-temporary impairment losses	—			—			—			—
Non-credit portion reclassified to (from) other comprehensive income, net	(111		)	(93		)	(193		)	(93		)
Net other-than-temporary impairment losses, credit portion	(111		)	(93		)	(193		)	(93		)
Net gains (losses) on derivatives and hedging activities	(4,710		)	(2,793		)	(9,085		)	(4,890		)
Service fees	244			380			462			743
Standby letters of credit fees	217			221			405			405
Other, net (Note 16)	527			402			913			750
Total other income (loss)	(3,833		)	(1,883		)	(7,498		)	(3,085		)
Other Expenses:
Compensation and benefits	10,995			11,093			22,759			21,921
Other operating expenses	6,309			6,025			12,020			11,336
Federal Housing Finance Agency	777			660			1,603			1,449
Office of Finance	700			633			2,009			1,588
Other	263			242			506			506
Total other expenses	19,044			18,653			38,897			36,800
Income before assessments	42,058			25,305			77,392			55,302
Affordable Housing Program assessments	4,381			2,717			8,090			5,817
Net income	$	37,677		$	22,588		$	69,302		$	49,485

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

7

Federal Home Loan Bank of Indianapolis

Statements of Comprehensive Income

(Unaudited, $ amounts in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
Net income	$	37,677	$	22,588		$	69,302	$	49,485
Other Comprehensive Income (Loss):
Net change in unrealized gains (losses) on available-for-sale securities	14,854		(693		)	37,610		(906		)
Non-credit portion of other-than-temporary impairment losses on available-for-sale securities:
Reclassification of non-credit portion to other income (loss)	73		93			155		93
Net change in fair value not in excess of cumulative non-credit losses	85		28			2		52
Unrealized gains (losses)	990		(506		)	1,582		(6,297		)
Net non-credit portion of other-than-temporary impairment losses on available-for-sale securities	1,148		(385		)	1,739		(6,152		)
Non-credit portion of other-than-temporary impairment losses on held-to-maturity securities:
Reclassification of non-credit portion to other income (loss)	38		—			38		—
Accretion of non-credit portion	6		8			12		16
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities	44		8			50		16
Pension benefits, net	325		(858		)	653		(616		)
Total other comprehensive income (loss)	16,371		(1,928		)	40,052		(7,658		)
Total comprehensive income	$	54,048	$	20,660		$	109,354	$	41,827

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

8

Federal Home Loan Bank of Indianapolis

Statements of Capital

Six Months Ended June 30, 2016 and 2017

(Unaudited, $ amounts and shares in thousands)

	Capital Stock Class B Putable					Retained Earnings								Accumulated Other Comprehensive Income (Loss)			Total Capital
	Shares		Par Value			Unrestricted			Restricted		Total
Balance, December 31, 2015	15,278		$	1,527,806		$	705,449		$	129,664	$	835,113		$	22,878		$	2,385,797
Total comprehensive income						39,588			9,897		49,485			(7,658		)	41,827
Proceeds from issuance of capital stock	515		51,539														51,539
Shares reclassified to mandatorily redeemable capital stock, net	(1,789	)	(178,898		)												(178,898		)
Distributions on mandatorily redeemable capital stock						(1,038		)	—		(1,038		)				(1,038		)
Cash dividends on capital stock (4.25% annualized)						(30,182		)	—		(30,182		)				(30,182		)
Balance, June 30, 2016	14,004		$	1,400,447		$	713,817		$	139,561	$	853,378		$	15,220		$	2,269,045
Balance, December 31, 2016	14,926		$	1,492,581		$	734,982		$	152,265	$	887,247		$	56,368		$	2,436,196
Total comprehensive income						55,441			13,861		69,302			40,052			109,354
Proceeds from issuance of capital stock	2,092		209,263														209,263
Cash dividends on capital stock (4.25% annualized)						(31,382		)	—		(31,382		)				(31,382		)
Balance, June 30, 2017	17,018		$	1,701,844		$	759,041		$	166,126	$	925,167		$	96,420		$	2,723,431

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

9

Federal Home Loan Bank of Indianapolis

Statements of Cash Flows

(Unaudited, $ amounts in thousands)

	Six Months Ended June 30,
	2017			2016
Operating Activities:
Net income	$	69,302		$	49,485
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	39,903			25,429
Prepayment fees on advances, net of related swap termination fees	—			(526		)
Changes in net derivative and hedging activities	(10,381		)	25,847
Net other-than-temporary impairment losses, credit portion	193			93
Provision for (reversal of) credit losses	281			(217		)
Changes in:
Accrued interest receivable	(5,456		)	(9,222		)
Other assets	(812		)	430
Accrued interest payable	18,813			6,382
Other liabilities	3,393			12,886
Total adjustments, net	45,934			61,102
Net cash provided by operating activities	115,236			110,587
Investing Activities:
Net change in:
Interest-bearing deposits	(214,162		)	(464,022		)
Securities purchased under agreements to resell	(745,691		)	(2,000,000		)
Federal funds sold	(925,000		)	(1,350,000		)
Available-for-sale securities:
Proceeds from maturities	726,741			230,099
Purchases	(1,347,941		)	(2,242,700		)
Held-to-maturity securities:
Proceeds from maturities	603,556			636,471
Purchases	(423,325		)	(699,192		)
Advances:
Principal repayments	111,970,703			68,037,610
Disbursements to members	(116,127,479		)	(67,480,894		)
Mortgage loans held for portfolio:
Principal collections	571,048			685,139
Purchases from members	(991,250		)	(1,305,002		)
Purchases of premises, software, and equipment	(2,206		)	(1,896		)
Net cash used in investing activities	(6,905,006		)	(5,954,387		)

(continued)

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

10

Federal Home Loan Bank of Indianapolis

Statements of Cash Flows, continued

(Unaudited, $ amounts in thousands)

	Six Months Ended June 30,
	2017			2016
Financing Activities:
Changes in deposits	138,364			106,621
Net payments on derivative contracts with financing elements	(10,079		)	(16,540		)
Net proceeds from issuance of consolidated obligations:
Discount notes	108,963,689			153,113,474
Bonds	12,522,925			17,767,472
Payments for matured and retired consolidated obligations:
Discount notes	(104,740,562		)	(156,449,992		)
Bonds	(10,713,770		)	(13,182,770		)
Proceeds from issuance of capital stock	209,263			51,539
Payments for redemption/repurchase of mandatorily redeemable capital stock	(3,208		)	(16,396		)
Dividend payments on capital stock	(31,382		)	(30,182		)
Net cash provided by financing activities	6,335,240			1,343,226
Net decrease in cash and due from banks	(454,530		)	(4,500,574		)
Cash and due from banks at beginning of period	546,612			4,931,602
Cash and due from banks at end of period	$	92,082		$	431,028
Supplemental Disclosures:
Interest payments	$	242,369		$	188,309
Purchases of securities, traded but not yet settled	455,289			56,556
Affordable Housing Program payments	10,059			10,997
Capitalized interest on certain held-to-maturity securities	817			655
Par value of shares reclassified to mandatorily redeemable capital stock, net	—			178,898

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

11

Federal Home Loan Bank of Indianapolis

Notes to Financial Statements

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 1 - Summary of Significant Accounting Policies

We use certain acronyms and terms throughout these notes to financial statements, which are defined in the Glossary of Terms. Unless the context otherwise requires, the terms "Bank," "we," "us," and "our" refer to the Federal Home Loan Bank of Indianapolis or its management.

Basis of Presentation. The accompanying interim financial statements have been prepared in accordance with GAAP and SEC requirements for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Certain disclosures that would substantially duplicate the disclosures in the financial statements, and notes thereto, included in our 2016 Form 10-K have been omitted unless the information contained in those disclosures materially changed. Therefore, these interim financial statements should be read in conjunction with our audited financial statements, and notes thereto, included in our 2016 Form 10-K.

The financial statements contain all adjustments that are, in the opinion of management, necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full calendar year or any other interim period.

Our significant accounting policies and certain other disclosures are set forthin our 2016 Form 10-K in Note 1 - Summary of Significant Accounting Policies. There have been no significant changes to these policies through June 30, 2017, except for our policy on derivatives, which has been updated to reflect changes made to the CME rulebook.

Derivatives. We record derivative instruments, related cash collateral (including initial and variation margin received or pledged/posted) and associated accrued interest on a net basis, by clearing agent and/or by counterparty when the netting requirements have been met, as either derivative assets or derivative liabilities at their estimated fair values. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability.

We use two clearinghouses for all cleared derivative transactions, LCH and CME. Effective January 3, 2017, CME made certain amendments to its rulebook, including changing the legal characterization of variation margin payments to be daily settled contracts, rather than cash collateral. Variation margin payments related to LCH contracts continue to be characterized as cash collateral. Initial margin continues to be considered by both clearinghouses as cash collateral.

Use of Estimates.When preparing financial statements in accordance with GAAP, we are required to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant estimates include derivatives and hedging activities, fair value estimates, the provision for credit losses, and OTTI. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

Reclassifications. We have reclassified certain amounts from the prior period to conform to the current period presentation. These reclassifications had no effect on net income, total comprehensive income, total capital, or net cash flows.

Note 2 - Recently Adopted and Issued Accounting Guidance

Recently Adopted Accounting Guidance.

Contingent Put and Call Options in Debt Instruments. On March 14, 2016, the FASB issued amendments to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host contracts. The amendments require entities to apply only the four-step decision sequence when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks.

12

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

This amended guidance was effective for the interim and annual periods beginning on January 1, 2017. The adoption of this guidance on January 1, 2017 had no effect on our financial condition, results of operations, or cash flows.

Recently Issued Accounting Guidance.

Premium Amortization on Purchased Callable Debt Securities. On March 30, 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities purchased at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. No change is required for securities purchased at a discount.

These amendments are effective beginning on January 1, 2019. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. The amendments should be applied using a modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are in the process of evaluating these amendments; therefore, their effect on our financial condition, results of operations, and cash flows has not yet been determined.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. On March 10, 2017, the FASB issued amendments to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement.

These amendments are effective for interim and annual periods beginning on January 1, 2018. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. The amendments should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit. The adoption of these amendments will result in a reclassification on the income statement only. As such, it will have no effect on our financial condition, results of operations, or cash flows.

Classification of Certain Cash Receipts and Cash Payments. On August 26, 2016, the FASB issued amendments to clarify existing guidance on the classification of certain cash receipts and payments on the statement of cash flows to reduce current and potential future diversity in practice regarding eight specific cash flow issues.

These amendments are effective for interim and annual periods beginning on January 1, 2018. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. These amendments should be applied using a retrospective transition method to each period presented. The adoption of these amendments will have no effect on our financial condition, results of operations, or cash flows.

Note 3 - Available-for-Sale Securities

Major Security Types.The following table presents ourAFS securities by type of security.

						Gross		Gross
	Amortized		Non-Credit			Unrealized		Unrealized			Estimated
June 30, 2017	Cost (1)		OTTI			Gains		Losses			Fair Value
GSE and TVA debentures	$	4,681,231	$	—		$	46,946	$	(128	)	$	4,728,049
GSE MBS	2,069,238		—			30,337		(77		)	2,099,498
Private-label RMBS	215,586		(106		)	28,783		—			244,263
Total AFS securities	$	6,966,055	$	(106	)	$	106,066	$	(205	)	$	7,071,810
December 31, 2016
GSE and TVA debentures	$	4,693,211	$	—		$	25,624	$	(4,201	)	$	4,714,634
GSE MBS	1,058,037		—			18,279		(234		)	1,076,082
Private-label RMBS	242,181		(263		)	27,201		—			269,119
Total AFS securities	$	5,993,429	$	(263	)	$	71,104	$	(4,435	)	$	6,059,835

13

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses) and fair-value hedge accounting adjustments.

Unrealized Loss Positions. The following table presents impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	40,168	$	(128	)	$	—	$	—		$	40,168	$	(128	)
GSE MBS	49,795		(77		)	—		—			49,795		(77		)
Private-label RMBS	—		—			2,649		(106		)	2,649		(106		)
Total impaired AFS securities	$	89,963	$	(205	)	$	2,649	$	(106	)	$	92,612	$	(311	)
December 31, 2016
GSE and TVA debentures	$	525,722	$	(3,604	)	$	176,104	$	(597	)	$	701,826	$	(4,201	)
GSE MBS	—		—			78,704		(234		)	78,704		(234		)
Private-label RMBS	—		—			3,002		(263		)	3,002		(263		)
Total impaired AFS securities	$	525,722	$	(3,604	)	$	257,810	$	(1,094	)	$	783,532	$	(4,698	)

Contractual Maturity.The amortized cost and estimated fair value of non-MBS AFS securities are presented below by contractual maturity. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.

	June 30, 2017				December 31, 2016
	Amortized		Estimated		Amortized		Estimated
Year of Contractual Maturity	Cost		Fair Value		Cost		Fair Value
Due in 1 year or less	$	338,025	$	338,371	$	972,508	$	974,215
Due after 1 year through 5 years	2,251,296		2,273,386		1,841,488		1,855,517
Due after 5 years through 10 years	1,839,988		1,863,092		1,734,156		1,740,029
Due after 10 years	251,922		253,200		145,059		144,873
Total non-MBS	4,681,231		4,728,049		4,693,211		4,714,634
Total MBS	2,284,824		2,343,761		1,300,218		1,345,201
Total AFS securities	$	6,966,055	$	7,071,810	$	5,993,429	$	6,059,835

Realized Gains and Losses. There were no sales of AFS securities during the three or six months ended June 30, 2017. As of June 30, 2017, we had no intention of selling the AFS securities in an unrealized loss position nor did we consider it more likely than not that we will be required to sell these securities before our anticipated recovery of each security's remaining amortized cost basis.

14

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 4 - Held-to-Maturity Securities

Major Security Types.The following table presents our HTM securities by type of security.

								Gross		Gross
								Unrecognized		Unrecognized
	Amortized		Non-Credit			Carrying		Holding		Holding			Estimated
June 30, 2017	Cost (1)		OTTI			Value		Gains		Losses			Fair Value
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,848,319	$	—		$	2,848,319	$	7,496	$	(6,294	)	$	2,849,521
GSE MBS	2,731,973		—			2,731,973		45,066		(3,783		)	2,773,256
Private-label RMBS	44,676		—			44,676		218		(358		)	44,536
Private-label ABS	8,277		(53		)	8,224		32		(533		)	7,723
Total HTM securities	$	5,633,245	$	(53	)	$	5,633,192	$	52,812	$	(10,968	)	$	5,675,036
December 31, 2016
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,678,437	$	—		$	2,678,437	$	5,412	$	(12,720	)	$	2,671,129
GSE MBS	3,082,343		—			3,082,343		46,480		(8,841		)	3,119,982
Private-label RMBS	49,748		—			49,748		61		(533		)	49,276
Private-label ABS	9,148		(103		)	9,045		40		(780		)	8,305
Total HTM securities	$	5,819,676	$	(103	)	$	5,819,573	$	51,993	$	(22,874	)	$	5,848,692

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses).

Unrealized Loss Positions. The following table presents impaired HTM securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses (1)
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	467,766	$	(2,648	)	$	1,031,269	$	(3,646	)	$	1,499,035	$	(6,294	)
GSE MBS	569,000		(3,488		)	142,130		(295		)	711,130		(3,783		)
Private-label RMBS	7,561		(3		)	18,143		(355		)	25,704		(358		)
Private-label ABS	—		—			7,724		(554		)	7,724		(554		)
Total impaired HTM securities	$	1,044,327	$	(6,139	)	$	1,199,266	$	(4,850	)	$	2,243,593	$	(10,989	)
December 31, 2016
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	367,474	$	(997	)	$	1,426,182	$	(11,723	)	$	1,793,656	$	(12,720	)
GSE MBS	1,281,827		(7,915		)	320,141		(926		)	1,601,968		(8,841		)
Private-label RMBS	18,166		(62		)	15,770		(471		)	33,936		(533		)
Private-label ABS	—		—			8,304		(843		)	8,304		(843		)
Total impaired HTM securities	$	1,667,467	$	(8,974	)	$	1,770,397	$	(13,963	)	$	3,437,864	$	(22,937	)

⁽¹⁾  For private-label ABS, the total of unrealized losses does not agree to total gross unrecognized holding losses at June 30, 2017 and December 31, 2016 of $533 and $780, respectively. Total unrealized losses include non-credit-related OTTI losses recorded in AOCI of $53 and $103, respectively, and gross unrecognized holding gains on previously OTTI securities of $32 and $40, respectively.

15

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 6 - Advances

The following table presents advances outstanding by year of contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,779		3.38	$	—		—
Due in 1 year or less	16,238,103			1.24	12,598,864			0.91
Due after 1 year through 2 years	2,374,373			1.78	2,752,629			1.74
Due after 2 years through 3 years	2,791,702			1.74	1,920,962			2.10
Due after 3 years through 4 years	2,098,808			1.63	2,605,198			1.38
Due after 4 years through 5 years	2,084,100			1.69	2,009,395			1.47
Thereafter	6,699,872			1.46	6,244,912			1.20
Total advances, par value	32,288,737			1.42	28,131,960			1.22
Fair-value hedging adjustments	(51,704		)		(57,716		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	16,317				21,709
Total advances	$	32,253,350			$	28,095,953

The following table presents advances outstanding by the earlier of the year of contractual maturity or the next call date and next put date.

	Year of Contractual Maturity or Next Call Date				Year of Contractual Maturity or Next Put Date
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
Overdrawn demand and overnight deposit accounts	$	1,779	$	—	$	1,779	$	—
Due in 1 year or less	23,793,604		19,390,714		16,419,603		12,767,364
Due after 1 year through 2 years	1,967,873		2,502,629		2,374,373		2,757,629
Due after 2 years through 3 years	2,066,702		1,856,463		3,029,302		1,915,962
Due after 3 years through 4 years	1,326,508		1,548,998		2,565,308		2,605,198
Due after 4 years through 5 years	870,300		900,095		2,416,500		2,535,895
Thereafter	2,261,971		1,933,061		5,481,872		5,549,912
Total advances, par value	$	32,288,737	$	28,131,960	$	32,288,737	$	28,131,960

In accordance with the Final Membership Rule, captive insurance companies that were admitted as FHLBank members on orafter September 12, 2014 repaid all of their outstanding advances and had their memberships terminated by February 19, 2017.

Under the Final Membership Rule, captive insurance companies that were admitted as FHLBank members prior to September 12, 2014, and do not meet the new definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership, shall have their memberships terminated no later than February 19, 2021. Prior to termination, new or renewed extensions of credit to such members will be subject to certain restrictions relating to maturity dates and the ratio of advances to the captive insurer's total assets and may be subject to additional restrictions at our discretion. The outstanding advances to these captive insurers mature on various dates through 2025.

Credit Risk Exposure and Security Terms. At June 30, 2017 and December 31, 2016, our top five borrowers held 45% and 43%, respectively, of total advances outstanding, at par. We held sufficient collateral to secure the advances to these borrowers.

See Note 9 - Allowance for Credit Losses in our 2016 Form 10-K for information related to credit risk on advances and allowance methodology for credit losses.

16

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 5 - Other-Than-Temporary Impairment

OTTI Evaluation Process and Results - Private-label RMBS and ABS. On a quarterly basis, we evaluate for OTTI our individual AFS and HTM investment securities that have been previously OTTI or are in an unrealized loss position.

Significant Inputs. The FHLBanks developed a short-term housing price forecast with projected changes ranging from a decrease of 5% to an increase of 11% over a twelve-month period. For the vast majority of housing markets, the changes range from an increase of 1% to an increase of 6%. Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data.

The following table presents the significant modeling assumptions used to determine the amount of credit loss recognized in earnings during the three months ended June 30, 2017 on the two securities for which an OTTI was determined to have occurred, as well as the related current credit enhancement.

	Significant Modeling Assumptions for OTTI private-label RMBS for the three months ended June 30, 2017
Year of Securitization	Prepayment Rates		Default Rates		Loss Severities		Current Credit  Enhancement
Prime - 2006	9	%	13	%	33	%	0	%
Subprime - 1998(1)	7	%	41	%	40	%	0	%

⁽¹⁾  Modeling assumptions assume no payout from monoline bond insurers.

Results of OTTI Evaluation Process - Private-label RMBS and ABS. As part of our evaluation, we consider whether we intend to sell each security and whether it is more likely than not that we will be required to sell the security before its anticipated recovery of amortized cost.

If either of these conditions is met, we recognize an OTTI loss in earnings equal to the entire difference between the debt security's amortized cost and its estimated fair value at the statement of condition date. We did not have any such change in intent or likelihood during the three and six months ended June 30, 2017.

For those remaining securities that meet neither of these conditions, we performed a cash flow analysis to determine whether we expect to recover the entire amortized cost of each security. As a result of our analysis, on two securities previously OTTI, credit losses were recognized for the three and six months ended June 30, 2017 of $111 and $193, respectively. OTTI credit losses were recognized on one security for the three and six months ended June 30, 2016 of $93. We determined that the unrealized losses on the remaining private-label RMBS and ABS were temporary as we expect to recover the entire amortized cost.

Evaluation Process and Results - All Other AFS and HTM Securities.

Other U.S. and GSE Obligations and TVA Debentures. For other U.S. obligations, GSE obligations, and TVA debentures, we determined that, based on current expectations, the strength of the issuers' guarantees through direct obligations of or support from the United States government is sufficient to protect us from any losses. As a result, all of the gross unrealized losses as of June 30, 2017 are considered temporary.

17

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 7 - Mortgage Loans Held for Portfolio

The following tables present information on mortgage loans held for portfolio by term, type, and product.

Term	June 30, 2017			December 31, 2016
Fixed-rate long-term mortgages	$	8,499,668		$	8,086,412
Fixed-rate medium-term (1) mortgages	1,174,779			1,206,978
Total mortgage loans held for portfolio, UPB	9,674,447			9,293,390
Unamortized premiums	221,789			210,116
Unamortized discounts	(2,593		)	(2,383		)
Fair-value hedging adjustments	1,649			1,124
Allowance for loan losses	(850		)	(850		)
Total mortgage loans held for portfolio, net	$	9,894,442		$	9,501,397

⁽¹⁾  Defined as a term of 15 years or less at origination.

Type	June 30, 2017		December 31, 2016
Conventional	$	9,212,060	$	8,796,407
Government-guaranteed or -insured	462,387		496,983
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

Product	June 30, 2017		December 31, 2016
MPP	$	9,339,161	$	8,930,194
MPF Program	335,286		363,196
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

In December 2016, we agreed to sell a 90% participating interest in a $100 million MCC of certain newly acquired MPP loans to the FHLBank of Atlanta. Principal amounts settled in December 2016 totaled $72 million, and the remaining $18 million settled in January 2017.

See Note 8 - Allowance for Credit Losses for information related to our credit risk on mortgage loans and allowance methodology for loan losses.

Note 8 - Allowance for Credit Losses

A description of the allowance methodologies for our portfolio segments as well as our policy for impairing financing receivables and charging them off when necessary is disclosed inNote 1 - Summary of Significant Accounting Policies and Note 9 - Allowance for Credit Losses in our 2016 Form 10-K.

Conventional MortgageLoans.

Conventional MPP.The following table presents the activity in the LRA.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2017			2016			2017			2016
Liability, beginning of period	$	130,728		$	96,663		$	125,683		$	91,552
Additions	6,536			10,011			11,767			15,418
Claims paid	(146		)	(276		)	(248		)	(485		)
Distributions to PFIs	(277		)	(833		)	(361		)	(920		)
Liability, end of period	$	136,841		$	105,565		$	136,841		$	105,565

18

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents the impact of credit enhancements on the allowance for MPP loan losses.

MPP Credit Waterfall	June 30, 2017			December 31, 2016
Estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	7,432		$	8,689
Portion of estimated incurred losses recoverable from PMI	(1,791		)	(1,981		)
Portion of estimated incurred losses recoverable from LRA (2)	(1,876		)	(2,418		)
Portion of estimated incurred losses recoverable from SMI	(3,065		)	(3,590		)
Allowance for unrecoverable PMI/SMI	50			50
Allowance for MPP loan losses	$	750		$	750

⁽¹⁾  Based on a loss emergence period of 24 months.

⁽²⁾  Amounts recoverable are limited to (i) the estimated losses remaining after borrower's equity and PMI and (ii) the remaining balance in each pool's portion of the LRA. The remainder of the LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

19

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Credit Quality Indicators. The tables below present the key credit quality indicators for our mortgage loans held for portfolio.

Delinquency Status as of June 30, 2017	Conventional			Government			Total
Past due:
30-59 days	$	36,986		$	11,767		$	48,753
60-89 days	8,966			2,326			11,292
90 days or more	22,679			1,463			24,142
Total past due	68,631			15,556			84,187
Total current	9,396,980			454,736			9,851,716
Total mortgage loans, recorded investment	$	9,465,611		$	470,292		$	9,935,903
Other Delinquency Statistics as of June 30, 2017
In process of foreclosure(1)	$	13,833		$	—		$	13,833
Serious delinquency rate (2)	0.24		%	0.31		%	0.24		%
Past due 90 days or more still accruing interest (3)	$	19,543		$	1,463		$	21,006
On non-accrual status	$	4,022		$	—		$	4,022

Delinquency Status as of December 31, 2016	Conventional			Government			Total
Past due:
30-59 days	$	46,118		$	17,183		$	63,301
60-89 days	11,044			3,548			14,592
90 days or more	29,098			2,350			31,448
Total past due	86,260			23,081			109,341
Total current	8,949,441			482,316			9,431,757
Total mortgage loans, recorded investment	$	9,035,701		$	505,397		$	9,541,098
Other Delinquency Statistics as of December 31, 2016
In process of foreclosure(1)	$	17,749		$	—		$	17,749
Serious delinquency rate (2)	0.32		%	0.46		%	0.33		%
Past due 90 days or more still accruing interest (3)	$	25,375		$	2,350		$	27,725
On non-accrual status	$	4,699		$	—		$	4,699

⁽¹⁾  Includes loans for which the decision of foreclosure or similar alternative, such as pursuit of deed-in-lieu of foreclosure, has been reported. Loans in process of foreclosure are included in past due categories depending on their delinquency status, but are not necessarily considered to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

⁽²⁾  Represents loans 90 days or more past due (including loans in process of foreclosure) expressed as a percentage of the total recorded investment in mortgage loans. The percentage excludes principal and interest amounts previously paid in full by the servicers on conventional loans that are pending resolution of potential loss claims. Our servicers repurchase seriously delinquent government loans, including FHA loans, when certain criteria are met.

⁽³⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the mortgagor's payment status, we do not consider these loans to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

20

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Allowance for Loan Losses on Mortgage Loans. The tables below present a rollforward of our allowance for loan losses, the allowance for loan losses by impairment methodology, and the recorded investment in mortgage loans by impairment methodology.

	Three Months Ended June 30,						Six Months Ended June 30,
Rollforward of Allowance for Loan Losses	2017			2016			2017			2016
Balance, beginning of period	$	850		$	850		$	850		$	1,125
Charge-offs, net of recoveries	(130		)	242			(281		)	(58		)
Provision for (reversal of) loan losses	130			(242		)	281			(217		)
Balance, end of period	$	850		$	850		$	850		$	850

Allowance for Loan Losses by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	730	$	750
Conventional loans individually evaluated for impairment (1)	120		100
Total allowance for loan losses	$	850	$	850
Recorded Investment by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	9,450,390	$	9,020,194
Conventional loans individually evaluated for impairment (1)	15,221		15,507
Total recorded investment	$	9,465,611	$	9,035,701

⁽¹⁾  The recorded investment in our MPP conventional loans individually evaluated for impairment excludes principal previously paid in full by the servicers as of June 30, 2017 and December 31, 2016 of $3,273 and $2,814, respectively, that remains subject to potential claims by those servicers for any losses resulting from past or future liquidations of the underlying properties. However, the MPP allowance for loan losses as of June 30, 2017 and December 31, 2016 includes $73 and $70, respectively, for these potential claims.

Individually Evaluated Impaired Loans. The tables below present the conventional loans individually evaluated for impairment with and without an allowance for loan losses. The first table presents the recorded investment, UPB and related allowance associated with these loans, while the next table presents the average recorded investment of these loans and related interest income recognized. Due to the minimal change in terms of modified loans (i.e., no principal forgiven), our pre-modification recorded investment in TDRs was not materially different than the post-modification recorded investment.

	June 30, 2017						December 31, 2016
Individually Evaluated Impaired Loans	Recorded Investment		UPB		Related Allowance for Loan Losses		Recorded Investment		UPB		Related Allowance for Loan Losses
MPP conventional loans without allowance for loan losses (1)	$	13,945	$	14,007	$	—	$	15,158	$	15,219	$	—
MPP conventional loans with allowance for loan losses	1,276		1,279		47		349		358		30
Total	$	15,221	$	15,286	$	47	$	15,507	$	15,577	$	30

⁽¹⁾  No allowance for loan losses was recorded on these impaired loans after consideration of the underlying loan-specific attribute data, estimated liquidation value of real estate collateral held, estimated costs associated with maintaining and disposing of the collateral, and credit enhancements.

	Three Months Ended				Three Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,537	$	161	$	16,474	$	175
MPP conventional loans with allowance for loan losses	1,279		19		1,268		17
Total	$	15,816	$	180	$	17,742	$	192

21

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

	Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,475	$	354	$	16,330	$	387
MPP conventional loans with allowance for loan losses	1,283		25		1,272		28
Total	$	15,758	$	379	$	17,602	$	415

Note 9 - Derivatives and Hedging Activities

Financial Statement Effect and Additional Financial Information.

Derivative Notional Amounts. We record derivative instruments, related cash collateral (including initial and variation margin received or pledged/posted) and associated accrued interest on a net basis, by clearing agent and/or by counterparty when the netting requirements have been met. The following table presents the notional amount and estimated fair value of derivative assets and liabilities.

	Notional		Estimated Fair Value			Estimated Fair Value
	Amount of		of Derivative			of Derivative
June 30, 2017	Derivatives		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	26,869,481	$	215,237		$	91,410
Total derivatives designated as hedging instruments	26,869,481		215,237			91,410
Derivatives not designated as hedging instruments:
Interest-rate swaps	131,500		255			17
Swaptions	200,000		—			—
Interest-rate caps/floors	323,500		189			—
Interest-rate forwards	154,000		392			—
MDCs	153,159		20			491
Total derivatives not designated as hedging instruments	962,159		856			508
Total derivatives before adjustments	$	27,831,640	216,093			91,918
Netting adjustments (1)			(89,505		)	(89,505		)
Cash collateral and variation margin for daily settled contracts (1)			28,713			(19		)
Total derivatives, net			$	155,301		$	2,394
December 31, 2016
Derivatives designated as hedging instruments:
Interest-rate swaps	$	23,998,498	$	230,705		$	102,201
Total derivatives designated as hedging instruments	23,998,498		230,705			102,201
Derivatives not designated as hedging instruments:
Interest-rate swaps	901,344		1,430			31
Swaptions	350,000		2			50
Interest-rate caps/floors	364,500		322			2
Interest-rate forwards	99,100		339			352
MDCs	99,002		303			471
Total derivatives not designated as hedging instruments	1,813,946		2,396			906
Total derivatives before adjustments	$	25,812,444	233,101			103,107
Netting adjustments (1)			(133,089		)	(133,089		)
Cash collateral (1)			34,836			55,207
Total derivatives, net			$	134,848		$	25,225

22

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty (including fair value adjustments on derivatives for which variation margin payments are characterized as daily settled contracts). Cash collateral pledged to counterparties at June 30, 2017 and December 31, 2016 totaled $92,236 and $35,422, respectively. Cash collateral received from counterparties at June 30, 2017 and December 31, 2016 totaled $43,756 and $55,793, respectively. Variation margin for daily settled contracts totaled $19,748 at June 30, 2017. See Note 1 - Summary of Significant Accounting Policies for more information.

The following table presents separately the estimated fair value of derivative instruments meeting and not meeting netting requirements, including the effect of the related collateral received from or pledged to counterparties and variation margin for daily settled contracts.

	June 30, 2017						December 31, 2016
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	81,432		$	36,230		$	86,606		$	45,449
Cleared	134,249			55,197			145,853			56,835
Total gross recognized amount	215,681			91,427			232,459			102,284
Gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	(69,910		)	(34,327		)	(76,255		)	(21,047		)
Cleared (1)	9,118			(55,197		)	(21,998		)	(56,835		)
Total gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts	(60,792		)	(89,524		)	(98,253		)	(77,882		)
Net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	11,522			1,903			10,351			24,402
Cleared	143,367			—			123,855			—
Total net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts	154,889			1,903			134,206			24,402
Derivative instruments not meeting netting requirements (2)	412			491			642			823
Total derivatives, at estimated fair value	$	155,301		$	2,394		$	134,848		$	25,225

⁽¹⁾  Variation margin for daily settled contracts totaled $19,748 at June 30, 2017.

⁽²⁾  Includes MDCs and certain interest-rate forwards.

23

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents the components of net gains (losses) on derivatives and hedging activities reported in other income (loss).

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2017			2016			2017			2016
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	(3,859	)	$	(2,134	)	$	(7,833	)	$	(2,577	)
Total net gain (loss) related to fair-value hedge ineffectiveness	(3,859		)	(2,134		)	(7,833		)	(2,577		)
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(66		)	(198		)	(88		)	(1,413		)
Swaptions	(38		)	—			(177		)	—
Interest-rate caps/floors	(177		)	(16		)	(131		)	(47		)
Interest-rate forwards	(773		)	(2,863		)	(941		)	(5,337		)
Net interest settlements	(144		)	(12		)	(291		)	(124		)
MDCs	397			2,430			476			4,608
Total net gain (loss) on derivatives not designated as hedging instruments	(801		)	(659		)	(1,152		)	(2,313		)
Other (1)	(50		)	—			(100		)	—
Net gains (losses) on derivatives and hedging activities	$	(4,710	)	$	(2,793	)	$	(9,085	)	$	(4,890	)

⁽¹⁾  Consists of price alignment amounts on derivatives for which variation margin payments are characterized as daily settled contracts.

24

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair-value hedging relationships and the effect of those derivatives on net interest income.

	Gain (Loss)			Gain (Loss)			Net Fair-			Effect on
	on			on Hedged			Value Hedge			Net Interest
Three Months Ended June 30, 2017	Derivative			Item			Ineffectiveness			Income (1)
Advances	$	(24,561	)	$	23,769		$	(792	)	$	(8,912	)
AFS securities	(42,407		)	40,147			(2,260		)	(13,928		)
CO bonds	10,380			(11,187		)	(807		)	4,377
Total	$	(56,588	)	$	52,729		$	(3,859	)	$	(18,463	)
Three Months Ended June 30, 2016
Advances	$	(26,669	)	$	25,772		$	(897	)	$	(25,941	)
AFS securities	(51,639		)	47,568			(4,071		)	(25,700		)
CO bonds	8,451			(5,617		)	2,834			4,640
Total	$	(69,857	)	$	67,723		$	(2,134	)	$	(47,001	)
Six Months Ended June 30, 2017
Advances	$	(8,825	)	$	9,241		$	416		$	(20,391	)
AFS securities	(25,332		)	20,064			(5,268		)	(30,793		)
CO Bonds	4,828			(7,809		)	(2,981		)	7,765
Total	$	(29,329	)	$	21,496		$	(7,833	)	$	(43,419	)
Six Months Ended June 30, 2016
Advances	$	(119,715	)	$	119,978		$	263		$	(53,904	)
AFS securities	(111,255		)	107,262			(3,993		)	(52,091		)
CO Bonds	20,796			(19,643		)	1,153			10,267
Total	$	(210,174	)	$	207,597		$	(2,577	)	$	(95,728	)

⁽¹⁾  Includes the effect of derivatives in fair-value hedging relationships on net interest income that is recorded in the interest income/expense line item of the respective hedged items. Excludes the interest income/expense of the respective hedged items, which fully offset the interest income/expense of the derivatives, except to the extent of any hedge ineffectiveness. Net interest settlements on derivatives that are not in fair-value hedging relationships are reported in other income (loss). These amounts do not include the effect of amortization/accretion related to fair value hedging activities.

Managing Credit Risk on Derivatives. We are subject to credit risk due to the risk of nonperformance by the counterparties to our derivative transactions.

For our uncleared derivatives, we have credit support agreements that contain provisions requiring us to post additional collateral with our counterparties if there is deterioration in our credit rating. If our credit rating is lowered by an NRSRO, we could be required to deliver additional collateral on uncleared derivative instruments in net liability positions. The aggregate estimated 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 on cash collateral) at June 30, 2017 was $6,480, for which we have posted collateral, including accrued interest, with an estimated fair value of $8,173 in the normal course of business. In addition, we held other derivative instruments in a net liability position of $491 that are not subject to credit support agreements containing credit risk-related contingent features. If our credit rating had been lowered by an NRSRO (from an S&P equivalent of AA+ to AA), we could have been required to deliver up to an additional $500 of collateral (at estimated fair value) to our uncleared derivative counterparties at June 30, 2017.

25

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

For cleared derivatives, the clearinghouse is our counterparty. We use two clearinghouses for all cleared derivative transactions, LCH and CME. Collateral is required to be posted daily for changes in the value of cleared derivatives to mitigate each counterparty's credit risk. The clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent notifies us. The requirement that we post initial and variation margin through the clearing agent for the benefit of the clearinghouse exposes us to institutional credit risk in the event that the clearing agent or clearinghouse fails to meet its obligations.

Effective January 3, 2017, CME made certain amendments to its rulebook, including changing the legal characterization of variation margin payments to be daily settled contracts, rather than cash collateral. Variation margin payments related to LCH contracts continue to be characterized as cash collateral. Initial margin continues to be considered by both clearinghouses as cash collateral.

For cleared derivatives, the clearinghouse determines margin requirements, into which credit ratings are not generally factored. However, clearing agents may require additional margin to be posted by us based on credit considerations, including but not limited to any credit rating downgrades. At June 30, 2017, we were not required by our clearing agents to post any additional margin.

Note 10 - Consolidated Obligations

In addition to being the primary obligor for all consolidated obligations issued on our behalf, we are jointly and severally liable with each of the other FHLBanks for the payment of the principal and interest on all FHLBank outstanding consolidated obligations. The par values of the FHLBanks' outstanding consolidated obligations at June 30, 2017 and December 31, 2016 totaled $1.0 trillion and $989.3 billion, respectively.

Discount Notes. The following table presents our discount notes outstanding, all of which are due within one year of issuance.

Discount Notes	June 30, 2017			December 31, 2016
Book value	$	21,036,075		$	16,801,763
Par value	21,072,353			16,819,659
Weighted average effective interest rate	0.96		%	0.51		%

CO Bonds. The following table presents our CO bonds outstanding by contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	14,708,530		1.12	$	16,234,460		0.85
Due after 1 year through 2 years	8,357,605			1.31	6,122,190			0.96
Due after 2 years through 3 years	3,300,980			2.08	2,718,945			1.65
Due after 3 years through 4 years	1,458,370			2.51	1,684,530			3.17
Due after 4 years through 5 years	993,820			2.06	1,040,000			2.17
Thereafter	6,495,000			2.87	5,708,000			2.92
Total CO bonds, par value	35,314,305			1.66	33,508,125			1.44
Unamortized premiums	28,092				27,462
Unamortized discounts	(12,116		)		(12,059		)
Unamortized concessions	(13,989		)		(13,705		)
Fair-value hedging adjustments	(34,656		)		(42,544		)
Total CO bonds	$	35,281,636			$	33,467,279

26

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following tables present our participation in CO bonds outstanding by redemption feature and the earlier of the year of contractual maturity or next call date.

Redemption Feature	June 30, 2017		December 31, 2016
Non-callable / non-putable	$	26,086,305	$	25,627,125
Callable	9,228,000		7,881,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

Year of Contractual Maturity or Next Call Date	June 30, 2017		December 31, 2016
Due in 1 year or less	$	23,234,530	$	23,825,460
Due after 1 year through 2 years	7,629,605		4,675,190
Due after 2 years through 3 years	2,212,980		2,240,945
Due after 3 years through 4 years	827,370		1,257,530
Due after 4 years through 5 years	381,820		474,000
Thereafter	1,028,000		1,035,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

Note 11 - Affordable Housing Program

The following table summarizes the activity in our AHP funding obligation.

	Three Months Ended June 30,						Six Months Ended June 30,
AHP Activity	2017			2016			2017			2016
Liability at beginning of period	$	27,203		$	28,235		$	26,598		$	31,103
Assessment (expense)	4,381			2,717			8,090			5,817
Subsidy usage, net (1)	(6,955		)	(5,029		)	(10,059		)	(10,997		)
Liability at end of period	$	24,629		$	25,923		$	24,629		$	25,923

⁽¹⁾  Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

We had no outstanding principal in AHP-related advances at June 30, 2017 or December 31, 2016.

Note 12 - Capital

Mandatorily Redeemable Capital Stock.The following table presents the activity related to MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2017			2016			2017			2016
Liability at beginning of period	$	166,930		$	192,548		$	170,043		$	14,063
Reclassification from capital stock	—			—			—			178,898
Redemptions/repurchases	(95		)	(14,945		)	(3,208		)	(16,396		)
Accrued distributions	—			—			—			1,038
Liability at end of period	$	166,835		$	177,603		$	166,835		$	177,603

In accordance with the Final Membership Rule, captive insurance companies that were admitted as FHLBank members on orafter September 12, 2014 had their memberships terminated by February 19, 2017. As a result, all of their outstanding Class B stock, totaling $3,021 at December 31, 2016, was repurchased on or before February 19, 2017.

Captive insurance companies that were admitted as FHLBank members prior to September 12, 2014, and do not meet the new definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership, shall have their memberships terminated no later than February 19, 2021. Upon termination, all of their outstanding Class B stock shall be repurchased, or redeemed after a five-year redemption period.

27

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

As a result of, and effective with, the Final Membership Rule in February 2016, we reclassified all of the outstanding Class B stock of our captive insurance company members totaling $178,898 to MRCS.

The following table presents MRCS by contractual year of redemption. The year of redemption is the later of: (i) the final year of the five-year redemption period, or (ii) the first year in which a non-member no longer has an activity-based stock requirement.

MRCS Contractual Year of Redemption	June 30, 2017		December 31, 2016
Year 1 (1)	$	10,476	$	8,630
Year 2	—		5,054
Year 3	13		13
Year 4	73		—
Year 5	4,085		4,158
Thereafter (2)	152,188		152,188
Total MRCS	$	166,835	$	170,043

⁽¹⁾  Balances at June 30, 2017 and December 31, 2016 include $5,422 and $5,609, respectively, of Class B stock that had reached the end of the five-year redemption period but will not be redeemed until the associated credit products and other obligations are no longer outstanding.

⁽²⁾  Represents the five-year redemption period of outstanding Class B stock held by certain captive insurance companies which begins immediately upon their termination of memberships no later than February 19, 2021, in accordance with the Final Membership Rule.

The following table presents the distributions related to MRCS.

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2017		2016		2017		2016
Recorded as interest expense	$	1,756	$	1,871	$	3,509	$	2,868
Recorded as distributions from retained earnings	—		—		—		1,038
Total	$	1,756	$	1,871	$	3,509	$	3,906

Capital Requirements. We are subject to capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 15 - Capital in our 2016 Form 10-K. As presented in the following table, we were in compliance with the Finance Agency's capital requirements at June 30, 2017 and December 31, 2016. For regulatory purposes, AOCI is not considered capital; MRCS, however, is considered capital.

	June 30, 2017						December 31, 2016
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	851,196		$	2,793,846		$	760,946		$	2,549,871
Regulatory permanent capital-to-asset ratio	4.00		%	4.60		%	4.00		%	4.73		%
Regulatory permanent capital	$	2,428,479		$	2,793,846		$	2,156,296		$	2,549,871
Leverage ratio	5.00		%	6.90		%	5.00		%	7.10		%
Leverage capital	$	3,035,599		$	4,190,769		$	2,695,370		$	3,824,806

28

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 13 - Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of the changes in the components of AOCI for the three and six months ended June 30, 2016 and 2017.

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, March 31, 2016	$	(116	)	$	24,462		$	(124	)	$	(7,074	)	$	17,148
OCI before reclassifications:
Net change in unrealized gains (losses)	(693		)	(506		)	—			—			(1,199		)
Net change in fair value	—			28			—			—			28
Accretion of non-credit losses	—			—			8			—			8
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(858		)	(858		)
Total other comprehensive income (loss)	(693		)	(385		)	8			(858		)	(1,928		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, March 31, 2017	$	62,224		$	27,529		$	(97	)	$	(9,607	)	$	80,049
OCI before reclassifications:
Net change in unrealized gains (losses)	14,854			990			—			—			15,844
Net change in fair value	—			85			—			—			85
Accretion of non-credit losses	—			—			6			—			6
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			73			38			—			111
Pension benefits, net	—			—			—			325			325
Total other comprehensive income (loss)	14,854			1,148			44			325			16,371
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

29

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, December 31, 2015	$	97		$	30,229		$	(132	)	$	(7,316	)	$	22,878
OCI before reclassifications:
Net change in unrealized gains (losses)	(906		)	(6,297		)	—			—			(7,203		)
Net change in fair value	—			52			—			—			52
Accretion of non-credit losses	—			—			16			—			16
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(616		)	(616		)
Total other comprehensive income (loss)	(906		)	(6,152		)	16			(616		)	(7,658		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, December 31, 2016	$	39,468		$	26,938		$	(103	)	$	(9,935	)	$	56,368
OCI before reclassifications:
Net change in unrealized gains (losses)	37,610			1,582			—			—			39,192
Net change in fair value	—			2			—			—			2
Accretion of non-credit losses	—			—			12			—			12
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			155			38			—			193
Pension benefits, net	—			—			—			653			653
Total other comprehensive income (loss)	37,610			1,739			50			653			40,052
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

30

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 14 - Segment Information

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2017									Three Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	47,255		$	17,810		$	65,065		$	32,418		$	13,181		$	45,599
Provision for (reversal of) credit losses	—			130			130			—			(242		)	(242		)
Other income (loss)	(3,329		)	(504		)	(3,833		)	(1,518		)	(365		)	(1,883		)
Other expenses	16,031			3,013			19,044			15,816			2,837			18,653
Income before assessments	27,895			14,163			42,058			15,084			10,221			25,305
Affordable Housing Program assessments	2,965			1,416			4,381			1,695			1,022			2,717
Net income	$	24,930		$	12,747		$	37,677		$	13,389		$	9,199		$	22,588
	Six Months Ended June 30, 2017									Six Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	88,791		$	35,277		$	124,068		$	65,490		$	29,480		$	94,970
Provision for (reversal of) credit losses	—			281			281			—			(217		)	(217		)
Other income (loss)	(7,003		)	(495		)	(7,498		)	(2,460		)	(625		)	(3,085		)
Other expenses	32,826			6,071			38,897			31,226			5,574			36,800
Income before assessments	48,962			28,430			77,392			31,804			23,498			55,302
Affordable Housing Program assessments	5,247			2,843			8,090			3,467			2,350			5,817
Net income	$	43,715		$	25,587		$	69,302		$	28,337		$	21,148		$	49,485

We measure the performance of each segment based upon the net interest spread of the underlying portfolio(s). Therefore, each segment's performance begins with net interest income. Direct other income and expense items also affect each segment's results. Direct other income/expense related to the Traditional segment includes the direct earnings impact of derivatives and hedging activities related to advances and investments as well as all other income and expense not associated with mortgage loans. The Mortgage Loans segment includes the direct earnings impact of derivatives and hedging activities as well as direct compensation, benefits and other expenses (including an allocation for indirect overhead) associated with operating the MPP and MPF Program and volume-driven costs associated with master servicing and quality control fees. The assessments related to AHP have been allocated to each segment based upon its proportionate share of income before assessments.

The following table presents asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2017	$	50,817,534	$	9,894,442	$	60,711,976
December 31, 2016	44,406,003		9,501,397		53,907,400

31

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 15 - Estimated Fair Values

The following tables present the carrying value and estimated fair value of each of our financial instruments. The total of the estimated fair values does not represent an estimate of our overall market value as a going concern, which would take into account, among other considerations, future business opportunities and the net profitability of assets and liabilities.

	June 30, 2017
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	92,082	$	92,082	$	92,082	$	—	$	—	$	—
Interest-bearing deposits	334,432		334,432		334,192		240		—		—
Securities purchased under agreements to resell	2,527,000		2,527,005		—		2,527,005		—		—
Federal funds sold	2,575,000		2,575,000		—		2,575,000		—		—
AFS securities	7,071,810		7,071,810		—		6,827,547		244,263		—
HTM securities	5,633,192		5,675,036		—		5,622,777		52,259		—
Advances	32,253,350		32,212,637		—		32,212,637		—		—
Mortgage loans held for portfolio, net	9,894,442		9,996,869		—		9,982,042		14,827		—
Accrued interest receivable	99,055		99,055		—		99,055		—		—
Derivative assets, net	155,301		155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		20,233		—		—		—
Liabilities:
Deposits	674,476		674,476		—		674,476		—		—
Consolidated Obligations:
Discount notes	21,036,075		21,072,353		—		21,072,353		—		—
Bonds	35,281,636		35,464,780		—		35,464,780		—		—
Accrued interest payable	117,220		117,220		—		117,220		—		—
Derivative liabilities, net	2,394		2,394		—		91,918		—		(89,524		)
MRCS	166,835		166,835		166,835		—		—		—

32

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

	December 31, 2016
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	546,612	$	546,612	$	546,612	$	—	$	—	$	—
Interest-bearing deposits	150,225		150,225		150,072		153		—		—
Securities purchased under agreements to resell	1,781,309		1,781,309		—		1,781,309		—		—
Federal funds sold	1,650,000		1,650,000		—		1,650,000		—		—
AFS securities	6,059,835		6,059,835		—		5,790,716		269,119		—
HTM securities	5,819,573		5,848,692		—		5,791,111		57,581		—
Advances	28,095,953		28,059,477		—		28,059,477		—		—
Mortgage loans held for portfolio, net	9,501,397		9,587,394		—		9,567,140		20,254		—
Accrued interest receivable	93,716		93,716		—		93,716		—		—
Derivative assets, net	134,848		134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		18,117		—		—		—
Liabilities:
Deposits	524,073		524,073		—		524,073		—		—
Consolidated Obligations:
Discount notes	16,801,763		16,819,659		—		16,819,659		—		—
Bonds	33,467,279		33,614,346		—		33,614,346		—		—
Accrued interest payable	98,411		98,411		—		98,411		—		—
Derivative liabilities, net	25,225		25,225		—		103,107		—		(77,882		)
MRCS	170,043		170,043		170,043		—		—		—

⁽¹⁾  Represents the application of the netting requirements that allow the settlement of (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

Summary of Valuation Techniques and Significant Inputs. A description of the valuation techniques, significant inputs, and levels of fair value hierarchy is disclosed in Note 19 - Estimated Fair Values in our 2016 Form 10-K. No changes have been made in the current year.

33

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Estimated Fair Value Measurements. The following tables present, by level within the fair value hierarchy, the estimated fair value of our financial assets and liabilities that are recorded at estimated fair value on a recurring or non-recurring basis on our statement of condition.

									Netting
June 30, 2017	Total		Level 1		Level 2		Level 3		Adjustment(1)
AFS securities:
GSE and TVA debentures	$	4,728,049	$	—	$	4,728,049	$	—	$	—
GSE MBS	2,099,498		—		2,099,498		—		—
Private-label RMBS	244,263		—		—		244,263		—
Total AFS securities	7,071,810		—		6,827,547		244,263		—
Derivative assets:
Interest-rate related	154,889		—		215,681		—		(60,792		)
Interest-rate forwards	392		—		392		—		—
MDCs	20		—		20		—		—
Total derivative assets, net	155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		—		—		—
Total assets at recurring estimated fair value	$	7,247,344	$	20,233	$	7,043,640	$	244,263	$	(60,792	)
Derivative liabilities:
Interest-rate related	$	1,903	$	—	$	91,427	$	—	$	(89,524	)
Interest-rate forwards	—		—		—		—		—
MDCs	491		—		491		—		—
Total derivative liabilities, net	2,394		—		91,918		—		(89,524		)
Total liabilities at recurring estimated fair value	$	2,394	$	—	$	91,918	$	—	$	(89,524	)
Mortgage loans held for portfolio (2)	$	4,107	$	—	$	—	$	4,107	$	—
Total assets at non-recurring estimated fair value	$	4,107	$	—	$	—	$	4,107	$	—
December 31, 2016
AFS securities:
GSE and TVA debentures	$	4,714,634	$	—	$	4,714,634	$	—	$	—
GSE MBS	1,076,082		—		1,076,082		—		—
Private-label RMBS	269,119		—		—		269,119		—
Total AFS securities	6,059,835		—		5,790,716		269,119		—
Derivative assets:
Interest-rate related	134,206		—		232,459		—		(98,253		)
Interest-rate forwards	339		—		339		—		—
MDCs	303		—		303		—		—
Total derivative assets, net	134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		—		—		—
Total assets at recurring estimated fair value	$	6,212,800	$	18,117	$	6,023,817	$	269,119	$	(98,253	)
Derivative liabilities:
Interest-rate related	$	24,402	$	—	$	102,284	$	—	$	(77,882	)
Interest-rate forwards	352		—		352		—		—
MDCs	471		—		471		—		—
Total derivative liabilities, net	25,225		—		103,107		—		(77,882		)
Total liabilities at recurring estimated fair value	$	25,225	$	—	$	103,107	$	—	$	(77,882	)
Mortgage loans held for portfolio (3)	$	3,492	$	—	$	—	$	3,492	$	—
Total assets at non-recurring estimated fair value	$	3,492	$	—	$	—	$	3,492	$	—

34

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

⁽²⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2017.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2016.

Level 3 Disclosures for All Assets and Liabilities that are Measured at Fair Value on a Recurring Basis. The table below presents a rollforward of our AFS private-label RMBS measured at estimated fair value on a recurring basis using level 3 significant inputs. The estimated fair values were determined using a pricing source, such as a dealer quote or comparable security price, for which the significant unobservable inputs used to determine the price were not readily available.

	Three Months Ended June 30,						Six Months Ended June 30,
Level 3 Rollforward - AFS private-label RMBS	2017			2016			2017			2016
Balance, beginning of period	$	257,671		$	300,758		$	269,119		$	319,186
Total realized and unrealized gains (losses):
Accretion of credit losses in interest income	1,785			2,164			3,656			5,300
Net losses on changes in fair value in other income (loss)	(73		)	(93		)	(155		)	(93		)
Net change in fair value not in excess of cumulative non-credit losses in OCI	85			28			2			52
Unrealized gains (losses) in OCI	990			(506		)	1,582			(6,297		)
Reclassification of non-credit portion in OCI to other income (loss)	73			93			155			93
Purchases, issuances, sales and settlements:
Settlements	(16,268		)	(14,301		)	(30,096		)	(30,098		)
Balance, end of period	$	244,263		$	288,143		$	244,263		$	288,143
Net gains (losses) included in earnings attributable to changes in fair value relating to assets still held at end of period	$	1,712		$	2,071		$	3,501		$	4,347

Note 16 - Commitments and Contingencies

The following table presents our off-balance-sheet commitments at their notional amounts.

	June 30, 2017
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	121,273	$	175,095	$	296,368
Unused lines of credit (1)	1,082,709		—		1,082,709
Commitments to fund additional advances (2)	55,000		—		55,000
Commitments to fund or purchase mortgage loans, net (3)	153,159		—		153,159
Unsettled CO bonds, at par	616,400		—		616,400

⁽¹⁾  Maximum line of credit amount per member is $50,000.

⁽²⁾  Generally for periods up to six months.

⁽³⁾  Generally for periods up to 91 days.

Pledged Collateral.At June 30, 2017 and December 31, 2016, we had pledged cash collateral, at par, of $92,222 and $35,421, respectively, to counterparties and clearing agents. Additionally, at June 30, 2017, variation margin for daily settled contracts totaled $19,748. At June 30, 2017 and December 31, 2016, we had not pledged any securities as collateral.

35

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Legal Proceedings. We are subject to legal proceedings arising in the normal course of business. We record an accrual for a loss contingency when it is probable that a loss for which we could be liable has been incurred and the amount can be reasonably estimated. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these proceedings could have a material effect on our financial condition, results of operations or cash flows.

In 2010, we filed a complaint asserting claims against several entities for negligent misrepresentation and violations of state and federal securities law occurring in connection with the sale of private-label RMBS to us. In 2013, 2014 and 2015, we executed confidential settlement agreements with certain defendants in this litigation, pursuant to which we have dismissed all pending claims against, and provided legal releases to, certain entities with respect to all applicable securities at issue in the litigation, in consideration of our receipt of cash payments from or on behalf of those defendants. We had previously dismissed the complaint as to the other named defendants. As a result, all proceedings in the RMBS litigation we filed have been concluded. Cash settlement payments, net of legal fees and litigation expenses, totaled $178 for both the three and six months ended June 30, 2017, compared to $60 for the both the three and six months ended June 30, 2016, and were recorded in other income.

Additional discussion of other commitments and contingencies is provided inNote 6 - Advances; Note 7 - Mortgage Loans Held for Portfolio; Note 9 - Derivatives and Hedging Activities; Note 10 - Consolidated Obligations; Note 12 - Capital; and Note 15 - Estimated Fair Values.

Note 17 - Related Party and Other Transactions

Transactions with Related Parties. The following table presents the aggregate outstanding balances with directors' financial institutions and their balance as a percent of the total balance on our statement of condition.

	Capital Stock and MRCS				Advances
Date	Par value		% of Total		Par value		% of Total
June 30, 2017	$	40,227	2	%	$	573,208	2	%
December 31, 2016	50,810		3	%	627,105		2	%

The par values at June 30, 2017 reflect changes in the composition of directors' financial institutions effective January 1, 2017, due to changes in board membership resulting from the 2016 director election.

The following table presents transactions with directors' financial institutions, taking into account the beginning and ending dates of the directors' terms, merger activity and other changes in the composition of directors' financial institutions.

	Three Months Ended June 30,				Six Months Ended June 30,
Transactions with Directors' Financial Institutions	2017		2016		2017		2016
Net capital stock issuances (redemptions and repurchases)	$	2,364	$	629	$	3,574	$	629
Net advances (repayments)	77,100		112,390		64,851		163,961
Mortgage loans purchases	10,570		13,930		14,047		18,996

Transactions with Other FHLBanks. In December 2016, we agreed to sell a 90% participating interest in a $100 million MCC of certain newly acquired MPP loans to the FHLBank of Atlanta. Principal amounts settled in December 2016 totaled $72 million, and the remaining $18 million settled in January 2017.

36

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Presentation 

This discussion and analysis by management of the Bank's financial condition and results of operations should be read in conjunction with our 2016 Form 10-K and the Financial Statements and related Notes to Financial Statements contained in Item 1. Financial Statements.

As used in this Item, unless the context otherwise requires, the terms "Bank," "we," "us," and "our" refer to the Federal Home Loan Bank of Indianapolis or its management. We use certain acronyms and terms throughout this Item that are defined in the Glossary of Terms.

Unless otherwise stated, amounts disclosed in this Item are rounded to the nearest million; therefore, dollar amounts of less than one million may not be reflected and, due to rounding, may not appear to agree to the amounts presented in thousands in the Financial Statements and related Notes to Financial Statements. Amounts used to calculate dollar and percentage changes are based on numbers in thousands. Accordingly, calculations based upon the disclosed amounts (millions) may not produce the same results.

Executive Summary

Overview. We are a regional wholesale bank that: makes secured loans in the form of advances to our members; purchases whole mortgage loans from our members; purchases other investments; and provides other financial services to our members. 

We are wholly owned by our member institutions. All members are required to purchase a minimum amount of our Class B capital stock as a condition of membership. Pursuant to our capital plan, members may be required to purchase additional stock to support their use of our products and services.

Our principal source of funding is the proceeds from the sale to the public of FHLBank debt instruments, called consolidated obligations, which are the joint and several obligation of all FHLBanks. We obtain additional funds from deposits, other borrowings, and the sale of capital stock to our members.

Our primary source of revenue is interest earned on advances, mortgage loans, and long- and short-term investments.

Our net interest income is primarily determined by the interest spread between the interest rate earned on our assets and the interest rate paid on our share of the consolidated obligations. We use funding and hedging strategies to manage the related interest-rate risk.

We group our products and services within two operating segments:

• Traditional, which consists of (i) credit products (including advances, letters of credit, and lines of credit), (ii) investments (including federal funds sold, securities purchased under agreements to resell, AFS securities and HTM securities) and (iii) correspondent services and deposits; and

• Mortgage loans, which consist of (i) mortgage loans purchased from our members through our MPP and (ii) participating interests purchased in 2012 - 2014 from the FHLBank of Topeka in mortgage loans originated by certain of its PFIs under the MPF Program.

Economic Environment. The Bank’s financial performance is influenced by the level and volatility of market interest rates, national and regional economic conditions, and the strength of the housing markets.

In June 2017, the FOMC increased the target range for the federal funds rate by 25 bps from 1.0% to 1.25%. Solid job gains, a declining unemployment rate, increasing household spending, and expanding business fixed investment were noted as support for increasing the federal funds target range. The FOMC intends to maintain its policy of reinvesting principal payments received from its agency debt and MBS holdings in the near term, but the FOMC anticipates implementing a balance sheet normalization this year, which would gradually reduce the Federal Reserve’s balance of securities by decreasing the amount of principal payments reinvested. Yields on U.S. Treasuries were fairly stable during the second quarter of 2017, with the 10-year yield ranging from 2.14% to 2.41%, and ending the quarter at 2.30%.

37

U.S. GDP increased at an annual rate of 2.6% during the second quarter of 2017 based on the advance estimate by the Bureau of Economic Analysis. The second quarter increase in real GDP reflected growth from personal consumption expenditures, nonresidential fixed investment and exports, partially offset by decreases in private residential fixed investment and private inventory investment.

The U.S. Bureau of Labor Statistics reported modest job growth nationally during the second quarter of 2017, with a preliminary estimate of payroll employment increasing by 581,000 during the period. The quarter-end unemployment rate of 4.5% is down slightly from the end of the first quarter. Employment growth in health care, social assistance, financial activities, and mining were cited as contributors to employment growth. Indiana and Michigan’s preliminary unemployment rates for June 2017 were 3.0% and 3.8%, respectively. Each state’s preliminary rate for June represented the lowest monthly rate year-to-date.

Freddie Mac’s June 23, 2017 Outlook noted several favorable economic factors that led to strong home sales and construction during the first quarter of 2017. The home sales market is projected to be strong for the year, despite slowing activity during April and a modest slowing of housing starts in May. However, mortgage lending is projected to slow in coming years as mortgage rates are projected to remain above the level where refinancing activity would be expected to increase.

Indiana University’s Center for Economic Model Research projects an annual income growth rate for Indiana of 4.4% through 2020, slightly higher than its 4.2% projection for the national income growth rate. Indiana’s unemployment rate is projected to increase from 4.0% for the first quarter of 2017 to 4.3% by the end of 2020. The University of Michigan Research Seminar in Quantitative Economics projects Michigan’s job growth rate to range between 0.6% and 1.1% during 2017 and 2018, following a peak of 3.0% for the fourth quarter of 2016. Professional and business services, along with construction and private education, are expected to drive job growth, overcoming modest declines projected in the manufacturing sector.

Impact on Operating Results. Market interest rates and trends affect yields and margins on earning assets, including advances, purchased mortgage loans, and our investment portfolio, which contribute to our overall profitability. Additionally, market interest rates drive mortgage origination and prepayment activity, which can lead to both favorable and unfavorable interest margin volatility in our MPP and MBS portfolios.

Lending and investing activity by our member institutions is a key driver for our balance sheet and income growth. Such activity is a function of both prevailing interest rates and economic activity. Positive economic trends can be expected to drive interest rates higher, which could impair growth of the mortgage market. A less active mortgage market could affect demand for advances and activity levels in our MPP. However, borrowing patterns between our insurance company members and depository members tend to differ during various economic and market conditions, thereby easing the potential magnitude of our core business fluctuations during business cycles. Member demand for liquidity during stressed market conditions can lead to growth in advances. Local economic factors relating to the housing market, including interest rates and housing affordability, may also influence demand for advances and MPP sales activity by our member financial institutions in Indiana and Michigan.

See Results of Operations and Changes in Financial Condition herein for a detailed discussion of our results.

38

Selected Financial Data

The following table presents a summary of selected financial information ($ amounts in millions).

	As of and for the Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Statement of Condition:
Advances	$	32,253		$	29,671		$	28,096		$	26,473		$	26,465
Mortgage loans held for portfolio, net	9,894			9,633			9,501			9,270			8,772
Cash and investments (1)	18,234			17,059			16,008			16,864			16,471
Total assets	60,712			56,669			53,907			52,909			52,001
Discount notes	21,036			18,399			16,802			16,393			15,920
CO bonds	35,282			34,470			33,467			32,740			32,467
Total consolidated obligations	56,318			52,869			50,269			49,133			48,387
MRCS	167			167			170			179			178
Capital stock	1,702			1,554			1,493			1,438			1,400
Retained earnings (2)	925			903			887			862			854
AOCI	96			80			56			40			15
Total capital	2,723			2,537			2,436			2,340			2,269
Statement of Income:
Net interest income	$	65		$	59		$	54		$	49		$	46
Provision for (reversal of) credit losses	—			—			—			—			—
Other income (loss)	(4		)	(3		)	13			(4		)	(2		)
Other expenses	19			21			22			19			18
AHP assessments	4			4			5			3			2
Net income	$	38		$	31		$	40		$	23		$	24
Selected Financial Ratios:
Net interest margin  (3)	0.44		%	0.43		%	0.41		%	0.38		%	0.36		%
Return on average equity (4)	5.77		%	5.18		%	6.73		%	4.03		%	4.15		%
Return on average assets (4)	0.25		%	0.23		%	0.30		%	0.18		%	0.18		%
Weighted average dividend rate (5)	4.25		%	4.25		%	4.25		%	4.25		%	4.25		%
Dividend payout ratio (6)	41.98		%	49.21		%	37.14		%	63.28		%	68.28		%
Total capital ratio (7)	4.49		%	4.48		%	4.52		%	4.42		%	4.36		%
Total regulatory capital ratio (8)	4.60		%	4.63		%	4.73		%	4.69		%	4.68		%
Average equity to average assets	4.41		%	4.46		%	4.51		%	4.41		%	4.32		%

⁽¹⁾  Consists of cash, interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, AFS securities, and HTM securities.

⁽²⁾  Includes restricted and unrestricted retained earnings.

⁽³⁾  Annualized net interest income expressed as a percentage of average interest-earning assets.

⁽⁴⁾  Annualized.

⁽⁵⁾  Annualized dividends paid in cash during the period divided by the average amount of Class B capital stock eligible for dividends under our capital plan, excluding MRCS.

⁽⁶⁾  Dividends paid in cash during the period divided by net income for the period. By dividing dividends paid in cash during the period by the net income for the prior period, the dividend payout ratios for each of the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, would be 50%, 39%, 65%, 65% and 57%, respectively.

⁽⁷⁾  Capital stock plus retained earnings and AOCI expressed as a percentage of total assets.

⁽⁸⁾  Capital stock plus retained earnings and MRCS expressed as a percentage of total assets.

39

Results of Operations and Changes in Financial Condition

Results of Operations for the Three and Six Months Ended June 30, 2017 and 2016. The following table presents the comparative highlights of our results of operations ($ amounts in millions).

	Three Months Ended June 30,											Six Months Ended June 30,
Comparative Highlights	2017			2016			$ Change			% Change		2017			2016			$ Change			% Change
Net interest income	$	65		$	46		$	19		43	%	$	124		$	95		$	29		31	%
Provision for (reversal of) credit losses	—			—			—					—			—			—
Net interest income after provision for credit losses	65			46			19			42	%	124			95			29			30	%
Other income (loss)	(4		)	(2		)	(2		)			(7		)	(3		)	(4		)
Other expenses	19			18			1					40			37			3
Income before assessments	42			26			16			66	%	77			55			22			40	%
AHP assessments	4			3			1					8			6			2
Net income	38			23			15			67	%	69			49			20			40	%
Total other comprehensive income (loss)	16			(2		)	18					40			(8		)	48
Total comprehensive income	$	54		$	21		$	33		162	%	$	109		$	41		$	68		161	%

The increase in net income for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was primarily due to higher net interest income, partially offset by net losses on derivatives and hedging activities.

The increase in total OCI for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was primarily due to an increase in the unrealized gains on non-OTTI AFS securities.

Changes in Financial Condition for the Six Months Ended June 30, 2017. The following table presents the comparative highlights of the changes in our financial condition ($ amounts in millions).

Condensed Statements of Condition	June 30, 2017		December 31, 2016		$ Change			% Change
Advances	$	32,253	$	28,096	$	4,157		15	%
Mortgage loans held for portfolio, net	9,894		9,501		393			4	%
Cash and investments (1)	18,234		16,008		2,226			14	%
Other assets	331		302		29			9	%
Total assets	$	60,712	$	53,907	$	6,805		13	%
Consolidated obligations	$	56,318	$	50,269	$	6,049		12	%
MRCS	167		170		(3		)	(2	%)
Other liabilities	1,504		1,032		472			46	%
Total liabilities	57,989		51,471		6,518			13	%
Capital stock, Class B putable	1,702		1,493		209			14	%
Retained earnings (2)	925		887		38			4	%
AOCI	96		56		40			71	%
Total capital	2,723		2,436		287			12	%
Total liabilities and capital	$	60,712	$	53,907	$	6,805		13	%
Total regulatory capital(3)	$	2,794	$	2,550	$	244		10	%

⁽¹⁾  Consists of cash, interest-bearing deposits, securities purchased under agreements to resell, federal funds sold, AFS securities, and HTM securities.

⁽²⁾  Includes restricted retained earnings at June 30, 2017 and December 31, 2016 of $166 million and $152 million, respectively.

⁽³⁾  Total capital less AOCI plus MRCS.

40

The increase in total assets at June 30, 2017 compared to December 31, 2016 was primarily driven by an increase in advances outstanding. The increase in total liabilities at June 30, 2017 compared to December 31, 2016 was attributable to a net increase in consolidated obligations to fund our asset growth. The increase in total capital at June 30, 2017 compared to December 31, 2016 was primarily a result of additional capital stock issued to members, other comprehensive income and the growth of retained earnings.

Analysis of Results of Operations for the Three and Six Months Ended June 30, 2017 and 2016.

Net Interest Income.The following table presents average daily balances, interest income/expense, and average yields of our major categories of interest-earning assets and their funding sources ($ amounts in millions). 

	Three Months Ended June 30,
	2017						2016
	Average Balance		Interest Income/ Expense		Average Yield(1)		Average Balance		Interest Income/ Expense		Average Yield (1)
Assets:
Federal funds sold and securities purchased under agreements to resell	$	5,045	$	12	0.97	%	$	4,241	$	4	0.37	%
Investment securities (2)	12,634		57		1.83	%	12,025		43		1.45	%
Advances (3)	31,016		95		1.22	%	25,174		51		0.82	%
Mortgage loans held for portfolio (3)	9,738		78		3.23	%	8,512		68		3.20	%
Other assets (interest-earning) (4)	377		1		0.96	%	318		1		0.87	%
Total interest-earning assets	58,810		243		1.66	%	50,270		167		1.34	%
Other assets (5)	420						310
Total assets	$	59,230					$	50,580
Liabilities and Capital:
Interest-bearing deposits	$	555	1		0.78	%	$	587	—		0.10	%
Discount notes	20,390		42		0.82	%	15,307		15		0.40	%
CO bonds (3)	34,786		134		1.55	%	31,701		104		1.32	%
MRCS	167		1		4.22	%	179		2		4.20	%
Total interest-bearing liabilities	55,898		178		1.28	%	47,774		121		1.02	%
Other liabilities	722						623
Total capital	2,610						2,183
Total liabilities and capital	$	59,230					$	50,580
Net interest income			$	65					$	46
Net spread on interest-earning assets less interest-bearing liabilities					0.38	%					0.32	%
Net interest margin (6)					0.44	%					0.36	%
Average interest-earning assets to interest-bearing liabilities	1.05						1.05

41

	Six Months Ended June 30,
	2017						2016
	Average Balance		Interest Income/ Expense		Average Yield (1)		Average Balance		Interest Income/ Expense		Average Yield (1)
Assets:
Federal funds sold and securities purchased under agreements to resell	$	4,956	$	21	0.84	%	$	4,219	$	8	0.37	%
Investment securities (2)	12,443		107		1.74	%	11,631		83		1.44	%
Advances (3)	29,553		169		1.15	%	25,671		100		0.78	%
Mortgage loans held for portfolio (3)	9,655		154		3.22	%	8,364		137		3.30	%
Other assets (interest-earning) (4)	323		2		1.14	%	297		1		0.77	%
Total interest-earning assets	56,930		453		1.61	%	50,182		329		1.32	%
Other assets (5)	468						402
Total assets	$	57,398					$	50,584
Liabilities and Capital:
Interest-bearing deposits	$	560	2		0.66	%	$	574	—		0.08	%
Discount notes	19,097		67		0.71	%	16,300		31		0.38	%
CO Bonds (3)	34,324		257		1.51	%	30,684		200		1.31	%
MRCS	168		3		4.22	%	127		3		4.53	%
Total interest-bearing liabilities	54,149		329		1.23	%	47,685		234		0.99	%
Other liabilities	706						639
Total capital	2,543						2,260
Total liabilities and capital	$	57,398					$	50,584
Net interest income			$	124					$	95
Net spread on interest-earning assets less interest-bearing liabilities					0.38	%					0.33	%
Net interest margin (6)					0.44	%					0.38	%
Average interest-earning assets to interest-bearing liabilities	1.05						1.05

⁽¹⁾  Annualized. 

⁽²⁾  Consists of AFS and HTM securities. The average balances of investment securities are based on amortized cost; therefore, the resulting yields do not reflect changes in the estimated fair value of AFS securities that are included as a component of OCI, nor do they reflect OTTI-related non-credit losses. Interest income/expense includes the effect of associated derivative transactions.

⁽³⁾  Interest income/expense and average yield include all other components of interest, including the impact of net interest payments or receipts on derivatives in qualifying hedge relationships, amortization of hedge accounting adjustments, and prepayment fees on advances.

⁽⁴⁾  Consists of interest-bearing deposits, loans to other FHLBanks (if applicable), and grantor trust assets that are carried at estimated fair value. Includes the rights or obligations to cash collateral, except for variation margin payments characterized as daily settled contracts.

⁽⁵⁾  Includes changes in the estimated fair value of AFS securities and the effect of OTTI-related non-credit losses on AFS and HTM securities.

⁽⁶⁾ Annualized net interest income expressed as a percentage of the average balance of interest-earning assets.

42

The increase in net interest income for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was due to higher spreads and asset growth.

Yields. The yield on total interest-earning assets for the three months ended June 30, 2017 was 1.66%, an increase of 32 bps compared to the same period in 2016, resulting primarily from higher yields on advances and investment securities. The cost of total interest-bearing liabilities for the three months ended June 30, 2017 was 1.28%, an increase of 26 bps from the prior year period due to higher funding costs on consolidated obligations. The net effect was an increase in the net interest spread to 0.38% for the three months ended June 30, 2017 from 0.32% for the three months ended June 30, 2016.

The yield on total interest-earning assets for the six months ended June 30, 2017 was 1.61%, an increase of 29 bps compared to the same period in 2016, resulting primarily from higher yields on advances and investment securities, partially offset by lower yields on mortgage loans. The decrease in the yields on mortgage loans was due to declining mortgage rates in 2016. The cost of total interest-bearing liabilities for the six months ended June 30, 2017 was 1.23%, an increase of 24 bps from the prior year period due to higher funding costs on consolidated obligations. The net effect was an increase in the net interest spread to 0.38% for the six months ended June 30, 2017 from 0.33% for the six months ended June 30, 2016.

Average Balances. The average balances of interest-earning assets for both the three and six months ended June 30, 2017 increased compared to the respective periods in 2016, largely due to advances, mortgage loans and investment securities. The average amount of advances outstanding increased for the three and six months ended June 30, 2017 by 23% and 15%, respectively, generally driven by member funding needs. The average outstanding amount of mortgage loans held for portfolio increased for the three and six months ended June 30, 2017 by 14% and 15%, respectively, due to strong demand by our members for MPP Advantage. Additionally, the increase in the average balances of investment securities was due primarily to purchases of GSE debentures and GSE MBS. The increase in average interest-bearing liabilities was due to an increase in consolidated obligations to fund the increases in the average balances of all interest-earning assets.

Provision for (Reversal of) Credit Losses. The change in the provision for (reversal of) credit losses for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was insignificant.

Other Income (Loss).The following table presents a comparison of the components of other income ($ amounts in millions). 

	Three Months Ended June 30,						Six Months Ended June 30,
Components	2017			2016			2017			2016
Total OTTI losses	$	—		$	—		$	—		$	—
Non-credit portion reclassified to (from) other comprehensive income	—			—			—			—
Net OTTI credit losses	—			—			—			—
Net gains (losses) on derivatives and hedging activities	(5		)	(3		)	(9		)	(5		)
Other	1			1			2			2
Total other income (loss)	$	(4	)	$	(2	)	$	(7	)	$	(3	)

The decrease in total other income for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was primarily due to net losses on derivatives and hedging activities.

Net Gains (Losses) on Derivatives and Hedging Activities. Our net gains (losses) on derivatives and hedging activities fluctuate due tovolatility in the overall interest rate environment as we hedge our asset and liability risk exposures. In general, we hold derivatives and associated hedged items to the maturity, call, or put date. Therefore, due to timing, nearly all of the cumulative net gains and losses for these financial instruments will generally reverse over the remaining contractual terms of the hedged items. However, there may be instances when we terminate these instruments prior to the maturity, call or put date. Terminating the financial instrument or hedging relationship may result in a realized gain or loss. See Notes to Financial Statements - Note 9 - Derivatives and Hedging Activitiesfor more information.

43

For those hedging relationships that qualified for hedge accounting, the differences between the changes in the estimated fair value of the hedged items and the changes in the estimated fair value of the associated interest rate swaps, i.e., hedge ineffectiveness, resulted in a net loss for the three and six months ended June 30, 2017 of $4 million and $8 million, respectively, compared to a net loss of $2 million and $3 million, respectively, for the same periods in 2016. The increase in losses was due primarily to marginal mismatches in coupon durations on, and the increase in volume of, swapped GSE debentures. There is no offsetting hedge ineffectiveness on the related funding due to the issuance of floating rate notes.

For derivatives not qualifying for hedge accounting (economic hedges), the net interest settlements and the changes in the estimated fair value of the derivatives are recorded in net gains (losses) on derivatives and hedging activities. For economic hedges, the Bank recorded a net loss of $1 million for both the three and six months ended June 30, 2017, compared to net losses of $1 million and $2 million, respectively, for the same periods in 2016.

The tables below present the net effect of derivatives on net interest income and other income (loss), within the net gains (losses) on derivatives and hedging activities, by type of hedge and hedged item ($ amounts in millions).

Three Months Ended June 30, 2017	Advances			Investments			Mortgage Loans			CO Bonds			Discount Notes		Other		Total
Net interest income:
Amortization/accretion of hedging activities (1)	$	—		$	—		$	—		$	—		$	—	$	—	$	—
Net interest settlements (2)	(9		)	(14		)	—			5			—		—		(18		)
Total net interest income	(9		)	(14		)	—			5			—		—		(18		)
Net gains (losses) on derivatives and hedging activities:
Gains (losses) on fair-value hedges	(1		)	(2		)	—			(1		)	—		—		(4		)
Gains (losses) on derivatives not qualifying for hedge accounting (3)	—			—			(1		)	—			—		—		(1		)
Other (4)	—			—			—			—			—		—		—
Net gains (losses) on derivatives and hedging activities	(1		)	(2		)	(1		)	(1		)	—		—		(5		)
Total net effect of derivatives and hedging activities	$	(10	)	$	(16	)	$	(1	)	$	4		$	—	$	—	$	(23	)

Three Months Ended June 30, 2016	Advances			Investments			Mortgage Loans			CO Bonds		Discount Notes		Total
Net interest income:
Amortization/accretion of hedging activities (1)	$	—		$	3		$	—		$	—	$	—	$	3
Net interest settlements (2)	(26		)	(26		)	—			5		—		(47		)
Total net interest income	(26		)	(23		)	—			5		—		(44		)
Net gains (losses) on derivatives and hedging activities:
Gains (losses) on fair-value hedges	(1		)	(4		)	—			3		—		(2		)
Gains (losses) on derivatives not qualifying for hedge accounting (3)	—			—			(1		)	—		—		(1		)
Net gains (losses) on derivatives and hedging activities	(1		)	(4		)	(1		)	3		—		(3		)
Total net effect of derivatives and hedging activities	$	(27	)	$	(27	)	$	(1	)	$	8	$	—	$	(47	)

44

Six Months Ended June 30, 2017	Advances			Investments			Mortgage Loans			CO Bonds			Discount Notes		Other		Total
Net interest income:
Amortization/accretion of hedging activities (1)	$	—		$	1		$	—		$	—		$	—	$	—	$	1
Net interest settlements (2)	(20		)	(31		)	—			8			—		—		(43		)
Total net interest income	(20		)	(30		)	—			8			—		—		(42		)
Net gains (losses) on derivatives and hedging activities:
Gains (losses) on fair-value hedges	—			(5		)	—			(3		)	—		—		(8		)
Gains (losses) on derivatives not qualifying for hedge accounting (3)	—			—			(1		)	—			—		—		(1		)
Other (4)	—			—			—			—			—		—		—
Net gains (losses) on derivatives and hedging activities	—			(5		)	(1		)	(3		)	—		—		(9		)
Total net effect of derivatives and hedging activities	$	(20	)	$	(35	)	$	(1	)	$	5		$	—	$	—	$	(51	)

Six Months Ended June 30, 2016	Advances			Investments			Mortgage Loans			CO Bonds		Discount Notes		Total
Net interest income:
Amortization/accretion of hedging activities (1)	$	—		$	6		$	(1	)	$	—	$	—	$	5
Net interest settlements (2)	(54		)	(52		)	—			10		—		(96		)
Total net interest income	(54		)	(46		)	(1		)	10		—		(91		)
Net gains (losses) on derivatives and hedging activities:
Gains (losses) on fair-value hedges	—			(4		)	—			1		—		(3		)
Gains (losses) on derivatives not qualifying for hedge accounting (3)	(1		)	—			(1		)	—		—		(2		)
Net gains (losses) on derivatives and hedging activities	(1		)	(4		)	(1		)	1		—		(5		)
Total net effect of derivatives and hedging activities	$	(55	)	$	(50	)	$	(2	)	$	11	$	—	$	(96	)

⁽¹⁾  Represents the amortization/accretion of fair value hedge accounting adjustments for both current and terminated hedge positions.

⁽²⁾  Represents interest income/expense on derivatives in qualifying hedge relationships. Excludes the interest income/expense of the respective hedged items, which fully offset the interest income/expense of the derivatives, except to the extent of any hedge ineffectiveness.

⁽³⁾ Includes net interest settlements on derivatives not qualifying for hedge accounting. See Notes to Financial Statements - Note 9 - Derivatives and Hedging Activities for additional information.

⁽⁴⁾ Consists of price alignment amounts on derivatives for which variation margin payments are characterized as daily settled contracts.

Other Expenses. The following table presents a comparison of the components of other expenses ($ amounts in millions).

	Three Months Ended June 30,				Six Months Ended June 30,
Components	2017		2016		2017		2016
Compensation and benefits	$	11	$	11	$	24	$	22
Other operating expenses	6		6		12		11
Finance Agency and Office of Finance expenses	2		1		4		3
Other	—		—		—		1
Total other expenses	$	19	$	18	$	40	$	37

The increase in compensation and benefits for the six months ended June 30, 2017 compared to the same period in 2016 was primarily due to an increase in personnel. The increase in other operating expenses for the six months ended June 30, 2017 compared to the same period in 2016 was primarily due to higher contractual services and professional fees as a result of strategic and operational initiatives.

45

Total Other Comprehensive Income (Loss). Total other comprehensive income for the three and six months ended June 30, 2017 consisted substantially of unrealized gains on non-OTTI AFS securities. Total other comprehensive loss for the three and six months ended June 30, 2016 consisted primarily of unrealized losses on OTTI and non-OTTI AFS securities.

Operating Segments

Our products and services are grouped within two operating segments:traditional and mortgage loans.

Traditional. The Traditional segment consists of (i) credit products (including advances, letters of credit, and lines of credit), (ii) investments (including federal funds sold, securities purchased under agreements to resell, AFS securities and HTM securities), and (iii) correspondent services and deposits. The following table presents the financial performance of our Traditional segment ($ amounts in millions). 

	Three Months Ended June 30,						Six Months Ended June 30,
Traditional	2017			2016			2017			2016
Net interest income	$	47		$	32		$	89		$	65
Provision for (reversal of) credit losses	—			—			—			—
Other income (loss)	(4		)	(1		)	(7		)	(2		)
Other expenses	16			15			34			31
Income before assessments	27			16			48			32
Total assessments	2			2			5			4
Net income	$	25		$	14		$	43		$	28

The increase in net income for the Traditional segment for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was due to higher net interest income, primarily as a result of a higher average balance of, and higher spreads on, both advances and investments outstanding. This increase was partially offset by net losses on derivatives and hedging activities and higher expenses.

Mortgage Loans. The Mortgage Loans segment includes (i) mortgage loans purchased from our members through our MPP and (ii) participating interests purchased in 2012 - 2014 from the FHLBank of Topeka in mortgage loans originated by certain of its PFIs under the MPF Program. The following table presents the financial performance of our Mortgage Loans segment ($ amounts in millions). 

	Three Months Ended June 30,				Six Months Ended June 30,
Mortgage Loans	2017		2016		2017		2016
Net interest income	$	18	$	14	$	35	$	30
Provision for (reversal of) credit losses	—		—		—		—
Other income (loss)	—		—		—		(1		)
Other expenses	3		3		6		6
Income before assessments	15		11		29		23
Total assessments	2		1		3		2
Net income	$	13	$	10	$	26	$	21

The increase in net income for the Mortgage Loans segment for the three and six months ended June 30, 2017 compared to the respective periods in 2016 was primarily due to higher net interest income resulting from an increase in the average outstanding balance of mortgage loans held for portfolio.

46

Analysis of Financial Condition

Total Assets. The table below presents the comparative highlights of our major asset categories ($ amounts in millions).

	June 30, 2017				December 31, 2016
Major Asset Categories	Carrying Value		% of Total		Carrying Value		% of Total
Advances	$	32,253	54	%	$	28,096	52	%
Mortgage loans held for portfolio, net	9,894		16	%	9,501		18	%
Cash and short-term investments	5,529		9	%	4,128		8	%
Investment securities	12,705		21	%	11,880		22	%
Other assets (1)	331		—	%	302		—	%
Total assets	$	60,712	100	%	$	53,907	100	%

⁽¹⁾  Includes accrued interest receivable, premises, software and equipment, derivative assets and other miscellaneous assets.

Total assets were $60.7 billion as of June 30, 2017, a net increase of $6.8 billion or 13% compared to December 31, 2016, driven primarily by an increase in advances outstanding.

Advances. In general, advances fluctuate in accordance with our members' funding needs, primarily determined by their deposit levels, mortgage pipelines, investment opportunities, available collateral, other balance sheet strategies, and the cost of alternative funding options. Advances at carrying value totaled $32.3 billion at June 30, 2017, a net increase of $4.2 billion or 15% compared to December 31, 2016. This increase was primarily due to an increase in short-term advances to depository institution members.

Advances due in one year or less increased from 45% of the total outstanding, at par, at December 31, 2016 to 50% of the total outstanding, at par, at June 30, 2017, reflecting members' increased demand for short-term funding. See Notes to Financial Statements - Note 6 - Advancesfor more information.

In accordance with the Final Membership Rule, by February 19, 2017, the memberships of the eight captive insurers that were admitted as members on or after September 12, 2014 were terminated and all of their outstanding advances were fully repaid.

The table below presents advances by type of financial institution ($ amounts in millions).

	June 30, 2017				December 31, 2016
Borrower Type	Par Value		% of Total		Par Value		% of Total
Depository institutions:
Commercial banks and savings institutions	$	15,020	47	%	$	10,805	39	%
Credit unions	2,487		8	%	2,385		8	%
Total depository institutions	17,507		55	%	13,190		47	%
Insurance companies:
Captive insurance companies (1)	—		—	%	56		—	%
Captive insurance companies (2)	3,051		9	%	3,310		12	%
Other insurance companies	11,637		36	%	11,482		41	%
Total insurance companies	14,688		45	%	14,848		53	%
Total members	32,195		100	%	28,038		100	%
Former members	94		—	%	94		—	%
Total advances	$	32,289	100	%	$	28,132	100	%

⁽¹⁾   Memberships terminated by February 19, 2017.

⁽²⁾ Memberships must terminate no later than February 19, 2021.

47

When a borrower prepays an advance, the Bank's future income will be lower if the principal portion of the prepaid advance is reinvested in lower-yielding assets that continue to be funded by higher-cost debt. At June 30, 2017, we had $8.2 billion, or 25%, of advances outstanding, at par, that may be prepaid without prepayment or termination fees. All other advances may only be prepaid by the borrower paying a fee that is sufficient to make us financially indifferent to the prepayment.

Mortgage Loans Held for Portfolio.In general, our volume of mortgage loan purchases is affected by several factors, including interest rates, competition, the general level of housing and refinancing activity in the United States, consumer product preferences and regulatory considerations.

To continue to meet the needs of our members and maintain an appropriate level of mortgage loans held for portfolio on our statement of condition, in December 2016, we agreed to sell a 90% participating interest in a $100 million MCC of certain newly acquired MPP loans to the FHLBank of Atlanta. Principal amounts settled in December 2016 totaled $72 million, and the remaining $18 million settled in January 2017.

A breakdown of mortgage loans held for portfolio by primary product type is presented below ($ amounts in millions).

	June 30, 2017				December 31, 2016
Product Type	UPB		% of Total		UPB		% of Total
MPP:
Conventional Original	$	966	10	%	$	1,096	12	%
Conventional Advantage	7,979		82	%	7,412		80	%
FHA	394		4	%	422		4	%
Total MPP	9,339		96	%	8,930		96	%
MPF Program:
Conventional	267		3	%	288		3	%
Government	68		1	%	75		1	%
Total MPF Program	335		4	%	363		4	%
Total mortgage loans held for portfolio	$	9,674	100	%	$	9,293	100	%

The increase in the UPB of mortgage loans held for portfolio was due to purchases under MPP Advantage exceeding repayments of outstanding MPP and MPF Program loans. Over time, the outstanding balance of mortgage loans purchased under our original MPP and the MPF Program will continue to decrease.

We have established and maintain an allowance for loan losses based on our best estimate of probable losses over the loss emergence period. Our estimate of MPP losses remaining after borrower's equity, but before credit enhancements, was $7 million at June 30, 2017 and $9 million at December 31, 2016. After consideration of the portion recoverable under the associated credit enhancements, the resulting allowance for MPP loan losses was less than $1 million at June 30, 2017 and December 31, 2016. See Notes to Financial Statements - Note 8 - Allowance for Credit Lossesfor more information.

48

Cash and Investments.The following table presents a comparison of the components of our cash and investments at carrying value ($ amounts in millions).

Components of Cash and Investments	June 30, 2017		December 31, 2016		Change
Cash and short-term investments:
Cash and due from banks	$	92	$	547	$	(455	)
Interest-bearing deposits	335		150		185
Securities purchased under agreements to resell	2,527		1,781		746
Federal funds sold	2,575		1,650		925
Total cash and short-term investments	5,529		4,128		1,401
Investment securities:
AFS securities:
GSE and TVA debentures	4,728		4,715		13
GSE MBS	2,100		1,076		1,024
Private-label RMBS	244		269		(25		)
Total AFS securities	7,072		6,060		1,012
HTM securities:
Other U.S. obligations - guaranteed MBS	2,848		2,679		169
GSE MBS	2,732		3,082		(350		)
Private-label RMBS and ABS	53		59		(6		)
Total HTM securities	5,633		5,820		(187		)
Total investment securities	12,705		11,880		825
Total cash and investments, carrying value	$	18,234	$	16,008	$	2,226

Cash and Short-Term Investments.Cash andshort-term investments totaled $5.5 billion at June 30, 2017, an increase of 34% compared to December 31, 2016. Cash and short-term investments as a percent of total assets were 9% at June 30, 2017 compared to 8% at December 31, 2016.

The total outstanding balance and composition of our short-term investment portfolio is influenced by our liquidity needs, member advance activity, market conditions and the availability of short-term investments at attractive interest rates, relative to our cost of funds.

Investment Securities.AFS securities totaled $7.1 billion at June 30, 2017, a net increase of 17% compared to $6.1 billion at December 31, 2016. The increase resulted substantially from purchases of GSE MBS to maintain a ratio of MBS and ABS to total regulatory capital of up to 300%. Net unrealized gains on AFS securities at June 30, 2017 were $106 million, an increase of $39 million compared to December 31, 2016, primarily due to increased volume and changes in interest rates, credit spreads and volatility. The percentage of non-MBS AFS securities due in one year or less decreased to 7% at June 30, 2017 from 21% at December 31, 2016, and the percentage due after one year through five years increased to 48% at June 30, 2017 from 39% at December 31, 2016. The percentage due after 5 years through 10 years increased to 39% at June 30, 2017 from 37% at December 31, 2016. The changes were due primarily to reinvestments in longer-term securities during 2017. See Notes to Financial Statements - Note 3 - Available-for-Sale Securities for more information.

HTM securities totaled $5.6 billion at June 30, 2017, a net decrease of 3% compared to $5.8 billion at December 31, 2016, primarily due to principal paydowns. At June 30, 2017, the estimated fair value of our HTM securities in an unrealized loss position totaled $2.2 billion, a decrease of 35% from $3.4 billion at December 31, 2016, primarily due to changes in interest rates, credit spreads and volatility. The unrealized losses decreased from $23 million at December 31, 2016 to $11 million at June 30, 2017. See Notes to Financial Statements - Note 4 - Held-to-Maturity Securities for more information.

See Risk Management - CreditRisk Management - Investments - Long-Term Investments herein for more information on our investment securities.

49

Interest Rate Payment Terms. Our AFS and HTM securities are presented below at amortized cost by interest-rate payment terms ($ amounts in millions).    

Interest Rate Payment Terms	June 30, 2017		December 31, 2016
AFS Securities:
Total non-MBS fixed-rate	$	4,681	$	4,693
MBS:
Fixed-rate	2,072		1,061
Variable-rate	213		239
Total MBS	2,285		1,300
Total AFS securities, at amortized cost	$	6,966	$	5,993
HTM Securities:
MBS and ABS:
Fixed-rate	$	1,330	$	1,512
Variable-rate	4,303		4,308
Total MBS and ABS	5,633		5,820
Total HTM securities, at amortized cost	$	5,633	$	5,820

Fixed-rate AFS MBS at June 30, 2017 increased significantly compared to December 31, 2016, but substantially all of the fixed-rate AFS securities are swapped to effectively create variable-rate securities, consistent with our balance sheet strategies to manage interest-rate risk.

Total Liabilities. Total liabilities were $58.0 billion at June 30, 2017, a net increase of 13% compared to December 31, 2016. This increase was due to an increase in consolidated obligations to fund our asset growth.

Deposits (Liabilities). Total deposits were $674 million at June 30, 2017, an increase of 29% compared to December 31, 2016. These deposits represent a relatively small portion of our funding. The balances of these accounts can fluctuate from period to period and vary depending upon such factors as the attractiveness of our deposit pricing relative to the rates available on alternative money market instruments, members' preferences with respect to the maturity of their investments, and members' liquidity.

Consolidated Obligations.The overall balance of our consolidated obligations fluctuates in relation to our total assets and the availability of alternative sources of funds. The composition of our consolidated obligations can fluctuate significantly based on comparative changes in their cost levels, supply and demand conditions, demand for advances, and our overall balance sheet management strategy. Discount notes are issued to provide short-term funds, while CO bonds are generally issued to provide a longer-term mix of funding.

The following table presents a breakdown by term of our consolidated obligations outstanding ($ amounts in millions).

	June 30, 2017				December 31, 2016
By Term	Par Value		% of Total		Par Value		% of Total
Consolidated obligations due in 1 year or less:
Discount notes	$	21,072	37	%	$	16,820	34	%
CO bonds	14,709		26	%	16,234		32	%
Total due in 1 year or less	35,781		63	%	33,054		66	%
Long-term CO bonds	20,606		37	%	17,274		34	%
Total consolidated obligations	$	56,387	100	%	$	50,328	100	%

50

We maintain a liquidity and funding balance between our financial assets and financial liabilities. Additionally, the FHLBanks work collectively to manage FHLB System-wide liquidity and funding and jointly monitor System-wide refinancing risk. In managing and monitoring the amounts of assets that require refunding, the FHLBanks may consider contractual maturities of the financial assets, as well as certain assumptions regarding expected cash flows (i.e., estimated prepayments and scheduled amortizations). See Notes to Financial Statements - Note 3 - Available-for-Sale Securities, Note 4 - Held-to-Maturity Securities, Note 6 - Advances, and Note 10 - Consolidated Obligations for more detailed information regarding contractual maturities of certain of our financial assets and liabilities.

Derivatives.Asof June 30, 2017 and December 31, 2016, we had derivative assets, net of collateral held or posted, including accrued interest, with estimated fair values of $155 million and $135 million, respectively, and derivative liabilities, net of collateral held or posted, including accrued interest, with estimated fair values of $2 million and $25 million, respectively. Increases and decreases in the fair value of derivatives are primarily caused by changes in the derivatives' respective underlying interest-rate indices.

The volume of derivative hedges is often expressed in terms of notional amounts, which is the amount upon which interest payments are calculated. The following table presents the notional amounts by type of hedged item, whether or not it is in a qualifying hedge relationship ($ amounts in millions).

Hedged Item	June 30, 2017		December 31, 2016
Advances	$	9,867	$	9,382
Investments	7,189		6,244
Mortgage loans	507		548
CO bonds	10,269		8,865
Discount notes	—		773
Total notional	$	27,832	$	25,812

Total Capital. Total capital at June 30, 2017 was $2.7 billion, a net increase of $287 million or 12% compared to December 31, 2016. This increase is due to members' purchases of additional capital stock, OCI and the growth of retained earnings.

The following table presents a percentage breakdown of the components of GAAP capital.

Components	June 30, 2017		December 31, 2016
Capital stock	62	%	61	%
Retained earnings	34	%	37	%
AOCI	4	%	2	%
Total GAAP capital	100	%	100	%

The following table presents a reconciliation of GAAP capital to regulatory capital ($ amounts in millions).

Reconciliation	June 30, 2017			December 31, 2016
Total GAAP capital	$	2,723		$	2,436
Exclude: AOCI	(96		)	(56		)
Add: MRCS	167			170
Total regulatory capital	$	2,794		$	2,550

Liquidity and Capital Resources

Liquidity.Our primary sources of liquidity are holdings of cash and short-term investments and the issuance of consolidated obligations. Our cash and short-term investments portfolio totaled $5.5 billion at June 30, 2017. During the first six months of 2017, we maintained sufficient access to funding; our net proceeds from the issuance of consolidated obligations totaled $121.5 billion.

We have not identified any trends, demands, commitments, events or uncertainties that are likely to materially increase or decrease our liquidity.

51

Capital Resources.

Total Regulatory Capital. A breakdown of our outstanding capital stock, categorized by type of member institution, and MRCS is provided in the following table ($ amounts in millions).

	June 30, 2017				December 31, 2016
By Type of Member Institution	Amount		% of Total		Amount		% of Total
Depository institutions:
Commercial banks and savings institutions	$	865	46	%	$	691	41	%
Credit unions	221		12	%	212		14	%
Total depository institutions	1,086		58	%	903		55	%
Insurance companies	616		33	%	590		35	%
CDFIs	—		—	%	—		—	%
Total capital stock, putable at par value	1,702		91	%	1,493		90	%
MRCS:
Captive insurance companies (1)	—		—	%	3		—	%
Captive insurance companies (2)	152		8	%	152		9	%
Former members (3)	15		1	%	15		1	%
Total MRCS	167		9	%	170		10	%
Total regulatory capital stock	$	1,869	100	%	$	1,663	100	%

⁽¹⁾   Memberships terminated by February 19, 2017.

⁽²⁾ Memberships must terminate no later than February 19, 2021.

⁽³⁾  Balances at June 30, 2017 and December 31, 2016 include $5 million and $6 million, respectively, of MRCS that had reached the end of the five-year redemption period but will not be redeemed or repurchased until the associated credit products and other obligations are no longer outstanding.

Our remaining captive insurance company members that do not meet the new definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership shall have their memberships terminated no later than February 19, 2021. Upon termination, all of their outstanding Class B capital stock shall be repurchased, or redeemed after a five-year redemption period.

Excess Stock.Excess stock is capital stock that is not required as a condition of membership or to support outstanding obligations of members or former members to us. In general, the level of excess stock fluctuates with our members' level of advances. The following table presents the composition of our excess stock ($ amounts in millions).

Components of Excess Stock	June 30, 2017			December 31, 2016
Member capital stock not subject to outstanding redemption requests	$	229		$	238
Member capital stock subject to outstanding redemption requests	4			2
MRCS	33			25
Total excess capital stock	$	266		$	265
Excess stock as a percentage of regulatory capital stock	14		%	16		%

Finance Agency rules limit the ability of an FHLBank to issue excess stock under certain circumstances, including when its total excess stock exceeds 1% of total assets or if the issuance of excess stock would cause total excess stock to exceed 1% of total assets. Our excess stock totaled $266 million at June 30, 2017, which was 0.4% of our total assets. Therefore, we are currently permitted to issue new excess stock to members and distribute stock dividends, should we choose to do so, subject to these regulatory limitations.

Capital Distributions.On July 27, 2017, our board of directors declared a cash dividend of 4.25% (annualized) on our Class B-1 capital stock and 3.40% (annualized) on our Class B-2 capital stock.

52

Adequacy of Capital.We must maintain sufficient permanent capital to meet the combined credit risk, market risk and operations risk components of the Finance Agency's risk-based capital requirement. As presented in the following table, we were in compliance with the requirement at June 30, 2017 and December 31, 2016 ($ amounts in millions).

Risk-Based Capital Components	June 30, 2017		December 31, 2016
Credit risk	$	366	$	346
Market risk	289		239
Operations risk	196		176
Total risk-based capital requirement	$	851	$	761
Permanent capital	$	2,794	$	2,550

The increase in the total risk-based capital requirement was primarily caused by an increase in both the credit risk and market risk components. The increase in credit risk was mainly the result of longer maturities of our GSE debentures while the increase in market risk was due to changes in portfolio composition and market environment, including interest rates, spreads and volatility. The operations risk capital component is calculated as 30% of the credit and market risk capital components. For information concerning the Finance Agency's proposed rule on FHLBank capital requirements, see Recent Accounting and Regulatory Developments - Legislative and Regulatory Developments in this Item 2.

Off-Balance Sheet Arrangements

At June 30, 2017, principal previously paid in full by our MPP servicers totaling $3 million remains subject to potential claims by those servicers for any losses resulting from past or future liquidations of the underlying properties. An estimate of the losses is included in the MPP allowance for loan losses. See Notes to Financial Statements - Note 8 - Allowance for Credit Losses for more information.

SeeNotes to Financial Statements - Note 16 - Commitments and Contingenciesfor information on additional commitments and contingencies.

Critical Accounting Policies and Estimates

We determined that four of our accounting policies are critical because they require management to make particularly difficult, subjective, and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts could be reported under different conditions or using different assumptions. These accounting policies relate to:

• Derivatives and hedging activities (see Notes to Financial Statements - Note 9 - Derivatives and Hedging Activitiesfor more detail);

• Fair value estimates (see Notes to Financial Statements - Note 15 - Estimated Fair Valuesfor more detail);

• Provision for credit losses (see Notes to Financial Statements - Note 8 - Allowance for Credit Lossesfor more detail); and

• OTTI (see Notes to Financial Statements - Note 5 - Other-Than-Temporary Impairmentfor more detail).

A full discussion of our critical accounting policies and estimates is included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates in our 2016 Form 10-K. See below for additional information regarding certain of these policies.

53

Provision for Credit Losses.

Mortgage Loans Acquired under the MPP. Our allowance for loan losses incorporates our analysis of delinquent conventional MPP loans, using the estimated fair value of the underlying collateral, further reduced by estimated liquidation costs.

We also performed our loan loss analysis at December 31, 2016 considering an adverse scenario whereby we used a haircut on our underlying collateral values of 20% for delinquent conventional loans, including individually evaluated loans. We consider such a haircut to represent the most distressed scenario that is reasonably possible to occur over the loss emergence period of 24 months. In this distressed scenario, while holding all other assumptions constant, our estimated incurred losses remaining after borrowers' equity, but before credit enhancements, would increase by only $4.7 million. Additionally, such increase would be substantially offset by credit enhancements. Therefore, the allowance for loan losses continues to be based upon our best estimate of the probable losses over the loss emergence period that would not be recovered from the credit enhancements.

Other-Than-Temporary Impairment. The following table presents the significant modeling assumptions used to determine whether a security was OTTI during the three months ended June 30, 2017, as well as the related current credit enhancement as of June 30, 2017 ($ amounts in millions).

			Significant Modeling Assumptions  for all private-label RMBS and ABS (2)						Current Credit Enhancement (2)
Classification	UPB (1)		Prepayment Rates		Default Rates		Loss Severities
Private-label RMBS:
Total Prime	$	299	12	%	7	%	24	%	4	%
Total Alt-A	1		11	%	4	%	11	%	11	%
Total private-label RMBS	$	300	12	%	7	%	24	%	4	%
Home equity loan ABS:
Total subprime - home equity loans (3)	$	1	7	%	30	%	42	%	—	%

⁽¹⁾  Excludes one manufactured housing loan ABS, with a UPB of $7 million, for which underlying collateral data is not readily available and alternative procedures are used to evaluate for OTTI.

⁽²⁾  Weighted average based on UPB.

⁽³⁾  Modeling assumptions assume no payout from monoline bond insurers.

In addition to evaluating our private-label RMBS under a best estimate scenario, we perform a cash flow analysis for each of these securities under a more stressful housing price scenario. This more stressful scenario is primarily based on a short-term housing price forecast that is 5% lower than the best estimate scenario, followed by a recovery path with annual rates of housing price growth that are 33% lower than the best estimate.

The actual OTTI-related credit losses recognized in earnings for the three months ended June 30, 2017 totaled $111 thousand. Under the more stressful scenario, the estimated OTTI-related credit losses for the same period totaled $135 thousand. The adverse scenario and associated results do not represent our current expectations and, therefore, should not be construed as a prediction of our future results, market conditions or the performance of these securities.

Additional information regarding OTTI of our private-label RMBS and ABS is provided in Notes to Financial Statements - Note 5 - Other-Than-Temporary Impairment.

54

Recent Accounting and Regulatory Developments

Accounting Developments. See Notes to Financial Statements - Note 2 - Recently Adopted and Issued Accounting Guidance for a description of how recent accounting developments may impact our financial condition, results of operations or cash flows.

Legislative and Regulatory Developments.

Finance Agency Final Rule on Minority and Women Inclusion.On July 13, 2017, the Finance Agency issued a final rule, effective August 24, 2017, amending its Minority and Women Inclusion regulations to clarify the scope of the FHLBanks' obligation to promote diversity and ensure inclusion. The final rule updates the existing Finance Agency regulations aimed at promoting diversity and the inclusion and participation of minorities, women, and individuals with disabilities, and the businesses they own ("MWDOB") in all FHLBank business and activities, including management, employment, customer outreach and access, MWDOB participation in financial transactions with the FHLBank, and contracting. The final rule encourages the FHLBanks to expand contracting opportunities for minorities, women, and individuals with disabilities through subcontracting arrangements and to track the cumulative spend associated with such diverse subcontracting arrangements. In addition, the final rule requires each FHLBank to:

• develop stand-alone, board-approved diversity and inclusion strategic plans or incorporate diversity and inclusion principles into its existing strategic planning processes and adopt strategies for promoting diversity and ensuring inclusion;

• amend its policies on equal opportunity in employment by adding sexual orientation, gender identity, and status as a parent to the list of protected classifications;

• establish a process to grant or deny requests for accommodations to employees and job applicants based on their religious beliefs or practices;

• provide information in its annual reports to the Finance Agency about its efforts to advance diversity and inclusion through identifying and selecting MWDOB firms for participation in financial transactions with the FHLBank, identifying ways in which it may give consideration to MWDOB business with the FHLBank when reviewing and evaluating vendor contract proposals, and enhancing customer access by MWDOB businesses (including through the FHLBank's affordable housing and community investment programs;

• report data regarding the number of diverse individuals currently in supervisory or managerial positions and its strategies for promoting the diversity of supervisors and managers;

• classify and provide additional data in its annual reports about the number of, and amounts paid under, its MWDOB contracts, as well as demographic data regarding the categories of MWDOB entities to which it awards vendor contracts; and

• provide data to the Finance Agency regarding the type of contracts it considers exempt from these diversity and inclusion requirements, as well as the criteria and rationale for establishing such exemptions and an analysis of any potential negative or adverse impact such exemptions might have on contracting opportunities for MWDOB businesses or diverse individuals.

We do not expect this final rule to materially affect our financial condition or results of operations, but we anticipate that it may result in increased compliance costs and substantially increase the amount of tracking, monitoring, and reporting that will be required of each FHLBank.

Finance Agency Final Rule on Membership for Non-Federally-Insured Credit Unions. On June 5, 2017, the Finance Agency issued a final rule on FHLBank membership, implementing 2015 statutory amendments to the Bank Act that authorizes FHLBanks to accept applications for membership from state-chartered credit unions without federal share insurance, provided certain prerequisites are met. The final rule generally treats these credit unions the same as other depository institutions with regard to membership criteria, with an additional requirement that each credit union obtain: (1) an affirmative statement from its state regulator that it meets the requirements for federal insurance as of the date of its application for FHLBank membership; (2) a written statement from the state regulator that it cannot or will not make any determination regarding the credit union’s eligibility for federal insurance; or (3) if the state regulator fails or refuses to respond to the credit union’s request within six months, confirmation of the failure to receive a response.

The final rule became effective July 5, 2017. We do not expect this rule to materially affect our financial condition or results of operations.

55

Finance Agency Proposed Rule on Capital Requirements. On July 3, 2017, the Finance Agency published a proposed rule to adopt, with amendments, the Finance Board regulations pertaining to the capital requirements for the FHLBanks. The proposed rule would carry over most of the existing regulations without material change, but would substantively revise the credit risk component of the risk-based capital requirement, as well as the limitations on extensions of unsecured credit and derivative exposure. The main revisions would remove requirements that the FHLBanks calculate credit risk capital charges and unsecured credit limits based on ratings issued by an NRSRO, and instead require that the FHLBanks establish and use their own internal rating methodology. With respect to derivatives, the proposed rule would impose a new capital charge for cleared derivatives, which under the existing rule do not carry a capital charge, and would change the way that the capital charge and risk limits were calculated for uncleared derivatives, in both cases to align with the Dodd-Frank Act’s clearing mandate and derivatives reforms. The proposed rule also would revise the percentages used in the regulation’s tables to calculate credit risk capital charges for advances and for non-mortgage assets. The Finance Agency proposes to retain for now the percentages used in the tables to calculate capital charges for mortgage-related assets, and to address at a later date the methodology for residential mortgage assets. While a March 2009 regulatory directive pertaining to certain liquidity matters would remain in place, the Finance Agency also proposes to rescind certain minimum regulatory liquidity requirements and address these liquidity requirements in a separate rulemaking.

We are evaluating the proposed rule but do not expect this rule, if adopted as proposed, to materially affect our financial condition or results of operations. Comments on the proposed rule are due by September 1, 2017.

Risk Management

We have exposure to a number of risks in pursuing our business objectives. These risks may be broadly classified as market, credit, liquidity, operational, and business. Market risk is discussed in Item 3. Quantitative and Qualitative Disclosures about Market Risk. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management in our 2016 Form 10-K for more information.

Credit Risk Management. We face credit risk on advances and other credit products, investments, mortgage loans, derivative financial instruments, and AHP grants.

Advances and Other Credit Products.We manage our exposure to credit risk on advances primarily through a combination of our security interests in assets pledged by our borrowers and ongoing reviews of our borrowers' financial strength. Credit analyses are performed on existing borrowers, with the frequency and scope determined by the financial strength of the borrower and/or the amount of our credit products outstanding to that borrower. We establish limits and other requirements for advances and other credit products.

As of June 30, 2017 and December 31, 2016, advances to our insurance company members represented 45% and 53%, respectively, of our total advances, at par. In 2016, our board of directors modified the initial borrowing limit for our insurance company members (excluding captive insurance companies) to 25% of their total general account assets less money borrowed. As of June 30, 2017, no insurance company member (excluding captive insurers) had total credit products outstanding in excess of this threshold.

The Final Membership Rule did not require us to terminate any credit extensions to captive insurance companies that were outstanding on the effective date. However, new or renewed credit extensions to captive insurance companies that became members prior to September 12, 2014 are subject to certain restrictions relating to maturity dates and cannot exceed 40% of the member's total assets. As of June 30, 2017, we had advances outstanding, at par, of $1.7 billion to one captive insurance company member whose total credit products exceeded the percentage limit. We may impose additional restrictions on extensions of credit to our members, including captive insurance companies, at our discretion.

Concentration. Our credit risk is magnified due to the concentration of advances in a few borrowers. As of June 30, 2017, our top borrower held 15% of total advances outstanding, at par, and our top five borrowers held 45% of total advances outstanding, at par. As a result of this concentration, we perform frequent credit and collateral reviews on our largest borrowers. In addition, we analyze the implications to our financial management and profitability if we were to lose the business of one or more of these borrowers.

56

Investments. We are also exposed to credit risk through our investment portfolios. Our policies restrict the acquisition of investments to high-quality, short-term money market instruments and high-quality long-term securities.

Short-Term Investments. The following table presents the unsecured investment credit exposures to private counterparties, categorized by the domicile of the counterparty's ultimate parent, based on the lowest of the counterparty's NRSRO long-term credit ratings, stated in terms of the S&P equivalent. The table does not reflect the foreign sovereign government's credit rating ($ amounts in millions).

June 30, 2017	AA		A		Total
Domestic	$	—	$	965	$	965
Canada	—		255		255
Sweden	970		—		970
Australia	720		—		720
Total unsecured credit exposure	$	1,690	$	1,220	$	2,910

Long-Term Investments. A Finance Agency regulation provides that the total value of our investments in MBS and ABS, calculated using amortized historical cost, must not exceed 300% of our total regulatory capital, as of the day we purchase the securities, based on the capital amount most recently reported to the Finance Agency. Total regulatory capital consists of retained earnings, Class B capital stock and MRCS. These investments totaled 286% of total regulatory capital at June 30, 2017. Generally, our goal is to maintain these investments near the 300% limit in order to enhance earnings and capital for our members and diversify our revenue stream.

The following table presents the carrying values of our investments, excluding accrued interest, grouped by credit rating and investment category. Applicable rating levels are determined using the lowest relevant long-term rating from S&P, Moody's and Fitch, each stated in terms of the S&P equivalent. Rating modifiers are ignored when determining the applicable rating level for a given counterparty or investment. Amounts reported do not reflect any subsequent changes in ratings, outlook, or watch status ($ amounts in millions).

													Below
													Investment
June 30, 2017	AAA			AA			A			BBB			Grade			Total
Short-term investments:
Interest-bearing deposits	$	—		$	—		$	335		$	—		$	—		$	335
Securities purchased under agreements to resell	—			2,527			—			—			—			2,527
Federal funds sold	—			1,690			885			—			—			2,575
Total short-term investments	—			4,217			1,220			—			—			5,437
Long-term investments:
GSE and TVA debentures	—			4,728			—			—			—			4,728
GSE MBS	—			4,832			—			—			—			4,832
Other U.S. obligations - guaranteed RMBS	—			2,848			—			—			—			2,848
Private-label RMBS and ABS	—			6			17			5			269			297
Total long-term investments	—			12,414			17			5			269			12,705
Total investments, carrying value	$	—		$	16,631		$	1,237		$	5		$	269		$	18,142
Percentage of total	—		%	92		%	7		%	—		%	1		%	100		%

57

Mortgage Loans Held for Portfolio. See Risk Management - Mortgage Loans Held for Portfolio of our 2016 Form 10-K for information on loss allocation structures, mortgage insurance, and state concentrations for mortgage loans.

LRA. The following table presents the changes in the LRA for original MPP and MPP Advantage ($ amounts in millions).

	Three Months Ended June 30, 2017						Three Months Ended June 30, 2016
LRA Activity	Original		Advantage		Total		Original			Advantage		Total
Liability, beginning of period	$	8	$	123	$	131	$	9		$	88	$	97
Additions	—		6		6		1			9		10
Claims paid	—		—		—		—			—		—
Distributions to PFIs	—		—		—		(1		)	—		(1		)
Liability, end of period	$	8	$	129	$	137	$	9		$	97	$	106

	Six Months Ended June 30, 2017						Six Months Ended June 30, 2016
LRA Activity	Original		Advantage		Total		Original			Advantage		Total
Liability, beginning of period	$	8	$	118	$	126	$	9		$	83	$	92
Additions	—		11		11		1			14		15
Claims paid	—		—		—		—			—		—
Distributions to PFIs	—		—		—		(1		)	—		(1		)
Liability, end of period	$	8	$	129	$	137	$	9		$	97	$	106

Derivatives.The following table presents key information on derivative counterparties on a settlement date basis using the lowest credit ratings from S&P or Moody's, stated in terms of the S&P equivalent ($ amounts in millions).

June 30, 2017	Notional Amount		Net Estimated Fair Value Before Collateral and Variation Margin for Daily Settled Contracts			Cash Collateral Pledged To (From) Counterparties and Variation Margin for Daily Settled Contracts (1)			Net Credit Exposure
Non-member counterparties:
Asset positions with credit exposure
Uncleared derivatives - AA	$	2,713	$	12		$	(8	)	$	4
Uncleared derivatives - A	3,681		40			(36		)	4
Uncleared derivatives - BBB	78		—			—			—
Cleared derivatives (2)	13,103		80			54			134
Liability positions with credit exposure
Bilateral derivatives - A	3,777		(5		)	9			4
Cleared derivatives (2)	2,738		(1		)	10			9
Total derivative positions with credit exposure to non-member counterparties	26,090		126			29			155
Member institutions (3)	7		—			—			—
Subtotal - derivative positions with credit exposure	26,097		$	126		$	29		$	155
Derivative positions without credit exposure	1,735
Total derivative positions	$	27,832

⁽¹⁾  Includes variation margin for daily settled contracts of $20 million at June 30, 2017.

⁽²⁾  Represents derivative transactions cleared with a clearinghouse, which is not rated.

⁽³⁾  Includes MDCs from member institutions (MPP).

58

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As used in this Item, unless the context otherwise requires, the terms "Bank," "we," "us," and "our" refer to the Federal Home Loan Bank of Indianapolis or its management. We use certain acronyms and terms throughout this Item which are defined in the Glossary of Terms.

Measuring Market Risks

To evaluate market risk, we utilize multiple risk measurements, including duration of equity, duration gap, convexity, VaR, earnings at risk, and changes in MVE. Periodically, we conduct stress tests to measure and analyze the effects that extreme movements in the level of interest rates and the shape of the yield curve would have on our risk position.

Market Risk-Based Capital Requirement. When calculating the risk-based capital requirement, the VaR comprising the first factor of the market risk component is defined as the potential dollar loss from adverse market movements, for a holding period of 120 business days, with a 99% confidence interval, based on those historical prices and market rates. The table below presents the VaR ($ amounts in millions).

Date	VaR
June 30, 2017	$	289
December 31, 2016	239

Certain Market and Interest-Rate Risk Metrics under Potential Interest-Rate Scenarios. We also monitor the sensitivities of MVE and duration of equity to potential interest-rate scenarios. We measure potential changes in the market value to book value of equity based on the current month-end level of rates versus large parallel rate shifts. The following table presents certain market and interest-rate metrics under different interest-rate scenarios ($ amounts in millions). 

June 30, 2017	Down 200 (1)			Down 100 (1)			Base			Up 100			Up 200
MVE	$	2,720		$	2,846		$	2,823		$	2,760		$	2,679
Percent change in MVE from base	(3.6		)%	0.8		%	0		%	(2.2		)%	(5.1		)%
MVE/Book value of equity (2)	94.1		%	98.5		%	97.7		%	95.5		%	92.7		%
Duration of equity (3)	(5.2)			(0.9)			1.7			2.7			3.2

December 31, 2016
MVE	$	2,545		$	2,634		$	2,604		$	2,546		$	2,467
Percent change in MVE from base	(2.3		)%	1.1		%	0		%	(2.2		)%	(5.3		)%
MVE/Book value of equity (2)	97.7		%	101.1		%	99.9		%	97.7		%	94.7		%
Duration of equity (3)	(5.3)			(0.1)			1.7			2.8			3.4

⁽¹⁾  Given the current low interest rate environment, we adjusted the downward rate shocks to prevent the assumed interest rate from becoming negative.

⁽²⁾  The change in the MVE/book value of equity from December 31, 2016 resulted primarily from the change in market value of the assets and liabilities in response to changes in the market environment and changes in portfolio composition.

⁽³⁾  We use interest rate shocks in 50 bp increments to determine duration of equity.

Duration Gap. The base case duration gap was 0.04% at June 30, 2017 compared to 0.03% at December 31, 2016.

See Item 7A. Quantitative and Qualitative Disclosures About Market Risk - Use of Derivative Hedges in our 2016 Form 10-K for information about our use of derivative hedges.

59

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We are responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in our reports filed under the Securities Exchange Act of 1934, as amended ("Exchange Act") is: (a) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms; and (b) accumulated and communicated to our management, including our principal executive officer, principal financial officer, and principal accounting officer, to allow timely decisions regarding required disclosures. As of June 30, 2017, we conducted an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (the principal executive officer), Chief Financial Officer (the principal financial officer), and Chief Accounting Officer (the principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. Based on that evaluation, our Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer concluded that our disclosure controls and procedures were effective as of June 30, 2017.

Internal Control Over Financial Reporting

Changes in Internal Control Over Financial Reporting.There were no changes in our internal control over financial reporting, as defined in rules 13a-15(f) and 15(d)-15(f) of the Exchange Act, that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls.We do not expect that our disclosure controls and procedures and other internal controls will prevent all error and fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can only be reasonable assurance that any design will succeed in achieving its stated goals under all potential future conditions. Additionally, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Part II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We are unaware of any potential claims against us that could be material.

Item 1A. RISK FACTORS

There have been no material changes in the risk factors described in Item 1A. Risk Factors of our 2016 Form 10-K.

60

Item 6. EXHIBITS

EXHIBIT INDEX

Exhibit Number	Description
31.1	Certification of the President - Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of the Executive Vice President - Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3	Certification of the Senior Vice President - Chief Accounting Officer pursuant to Section 302 of the Sarbanes - Oxley Act of 2002
32	Certification of the President - Chief Executive Officer, Executive Vice President - Chief Financial Officer, and Senior Vice President - Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

61

SIGNATURES

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

	FEDERAL HOME LOAN BANK OF INDIANAPOLIS
August 10, 2017	By:	/s/ CINDY L. KONICH
	Name:	Cindy L. Konich
	Title:	President - Chief Executive Officer
August 10, 2017	By:	/s/ GREGORY L. TEARE
	Name:	Gregory L. Teare
	Title:	Executive Vice President - Chief Financial Officer
August 10, 2017	By:	/s/ K. LOWELL SHORT, JR.
	Name:	K. Lowell Short, Jr.
	Title:	Senior Vice President - Chief Accounting Officer

62

EX-31.1

Exhibit 31.1

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

I, Cindy L. Konich, certify that:

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

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(s) 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(s) 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: August 10, 2017

By: /s/ CINDY L. KONICH

Name: Cindy L. Konich

Title: President - Chief Executive Officer

EX-31.2

Exhibit 31.2

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

I, Gregory L. Teare, certify that:

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

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(s) 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(s) 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: August 10, 2017

By: /s/ GREGORY L. TEARE

Name: Gregory L. Teare

Title: Executive Vice President - Chief Financial Officer

EX-31.3

Exhibit 31.3

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

I, K. Lowell Short, Jr., certify that:

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

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(s) 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(s) 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: August 10, 2017

By: /s/ K. LOWELL SHORT, JR.

Name: K. Lowell Short, Jr.

Title: Senior Vice President - Chief Accounting Officer

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

In connection with the quarterly report of the Federal Home Loan Bank of Indianapolis ("Bank")on Form 10-Q for the period ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof ("Report"), each of the undersigned officers certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

By: /s/ CINDY L. KONICH

Cindy L. Konich

President - Chief Executive Officer

August 10, 2017

By: /s/ GREGORY L. TEARE

Gregory L. Teare

Executive Vice President - Chief Financial Officer

August 10, 2017

By: /s/ K. LOWELL SHORT, JR.

K. Lowell Short, Jr.

Senior Vice President - Chief Accounting Officer

August 10, 2017

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Entity Information [Line Items]
Entity Registrant Name	Federal Home Loan Bank of Indianapolis
Entity Central Index Key	0001331754
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Common B Shares Outstanding		18,949,958

XML

Statements of Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and due from banks	$ 92,082	$ 546,612
Interest-bearing deposits	334,432	150,225
Securities purchased under agreements to resell	2,527,000	1,781,309
Federal funds sold	2,575,000	1,650,000
Available-for-sale securities (Notes 3 and 5)	7,071,810	6,059,835
Held-to-maturity securities (estimated fair values of $5,675,036 and $5,848,692, respectively) (Notes 4 and 5)	5,633,192	5,819,573
Advances (Note 6)	32,253,350	28,095,953
Mortgage loans held for portfolio, net of allowance for loan losses of $(850) and $(850), respectively (Notes 7 and 8)	9,894,442	9,501,397
Accrued interest receivable	99,055	93,716
Premises, software, and equipment, net	36,871	37,638
Derivative assets, net (Note 9)	155,301	134,848
Other assets	39,441	36,294
Total assets	60,711,976	53,907,400
Liabilities:
Deposits	674,476	524,073
Consolidated obligations (Note 10):
Discount notes	21,036,075	16,801,763
Bonds	35,281,636	33,467,279
Total consolidated obligations, net	56,317,711	50,269,042
Accrued interest payable	117,220	98,411
Affordable Housing Program payable (Note 11)	24,629	26,598
Derivative liabilities, net (Note 9)	2,394	25,225
Mandatorily redeemable capital stock (Note 12)	166,835	170,043
Other liabilities	685,280	357,812
Total liabilities	57,988,545	51,471,204
Commitments and contingencies (Note 16)
Capital stock (putable at par value of $100 per share):
Capital stock	1,701,844	1,492,581
Retained earnings:
Unrestricted	759,041	734,982
Restricted	166,126	152,265
Total retained earnings	925,167	887,247
Total accumulated other comprehensive income (Note 13)	96,420	56,368
Total capital	2,723,431	2,436,196
Total liabilities and capital	60,711,976	53,907,400
Class B-1 issued and outstanding shares: 17,002,171 and 14,897,390, respectively
Capital stock (putable at par value of $100 per share):
Capital stock	1,700,217	1,489,739
Class B-2 issued and outstanding shares: 16,266 and 28,416, respectively
Capital stock (putable at par value of $100 per share):
Capital stock	$ 1,627	$ 2,842

XML

Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Common stock putable, par value per share (usd per share)	$ 100	$ 100
Held-to-Maturity Securities - Estimated Fair Values	$ 5,675,036	$ 5,848,692
Allowance for loan losses	$ (850)	$ (850)
Class B-1 [Member]
Common stock issued (in shares)	17,002,171	14,897,390
Common stock outstanding (in shares)	17,002,171	14,897,390
Class B-2 [Member]
Common stock issued (in shares)	16,266	28,416
Common stock outstanding (in shares)	16,266	28,416

XML

Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest Income:
Advances	$ 94,618	$ 51,246	$ 168,899	$ 99,756
Prepayment fees on advances, net	84	31	102	199
Interest-bearing deposits	636	234	971	398
Securities purchased under agreements to resell	2,887	636	3,705	2,223
Federal funds sold	9,333	3,313	17,030	5,510
Available-for-sale securities	29,337	15,922	53,719	29,779
Held-to-maturity securities	28,415	27,513	53,878	53,789
Mortgage loans held for portfolio	78,304	67,759	154,280	137,171
Other interest income, net	266	452	851	737
Total interest income	243,880	167,106	453,435	329,562
Interest Expense:
Consolidated obligation discount notes	41,758	15,171	67,254	31,103
Consolidated obligation bonds	134,222	104,318	256,773	200,399
Deposits	1,079	147	1,831	222
Mandatorily redeemable capital stock	1,756	1,871	3,509	2,868
Total interest expense	178,815	121,507	329,367	234,592
Net interest income	65,065	45,599	124,068	94,970
Provision for (reversal of) credit losses	130	(242)	281	(217)
Net interest income after provision for credit losses	64,935	45,841	123,787	95,187
Other Income (Loss):
Total other-than-temporary impairment losses	0	0	0	0
Non-credit portion reclassified to (from) other comprehensive income, net	(111)	(93)	(193)	(93)
Net other-than-temporary impairment losses, credit portion	(111)	(93)	(193)	(93)
Net gains (losses) on derivatives and hedging activities	(4,710)	(2,793)	(9,085)	(4,890)
Service fees	244	380	462	743
Standby letters of credit fees	217	221	405	405
Other, net (Note 16)	527	402	913	750
Total other income (loss)	(3,833)	(1,883)	(7,498)	(3,085)
Other Expenses:
Compensation and benefits	10,995	11,093	22,759	21,921
Other operating expenses	6,309	6,025	12,020	11,336
Federal Housing Finance Agency	777	660	1,603	1,449
Office of Finance	700	633	2,009	1,588
Other	263	242	506	506
Total other expenses	19,044	18,653	38,897	36,800
Income before assessments	42,058	25,305	77,392	55,302
Affordable Housing Program assessments	4,381	2,717	8,090	5,817
Net Income	$ 37,677	$ 22,588	$ 69,302	$ 49,485

XML

Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 37,677	$ 22,588	$ 69,302	$ 49,485
Other Comprehensive Income (Loss):
Net change in unrealized gains (losses) on available-for-sale securities	14,854	(693)	37,610	(906)
Non-credit portion of other-than-temporary impairment losses on available-for-sale securities:
Reclassification of non-credit portion to other income (loss)	73	93	155	93
Net change in fair value not in excess of cumulative non-credit losses	85	28	2	52
Unrealized gains (losses)	990	(506)	1,582	(6,297)
Net non-credit portion of other-than-temporary impairment losses on available-for-sale securities	1,148	(385)	1,739	(6,152)
Non-credit portion of other-than-temporary impairment losses on held-to-maturity securities:
Reclassification Adjustment Of Noncredit Portion Of Impairment Losses Included In Net Income Relating To HTM Securities	38	0	38	0
Accretion of non-credit portion	6	8	12	16
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities	44	8	50	16
Pension benefits, net	325	(858)	653	(616)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	16,371	(1,928)	40,052	(7,658)
Total comprehensive income	$ 54,048	$ 20,660	$ 109,354	$ 41,827

XML

Statements of Capital (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 2,436,196	$ 2,385,797
Total comprehensive income	$ 54,048	$ 20,660	109,354	41,827
Proceeds from issuance of capital stock			209,263	51,539
Shares reclassified to mandatorily redeemable capital stock, net	0	0	0	(178,898)
Distributions on mandatorily redeemable capital stock				(1,038)
Cash dividends on capital stock (4.25% and 4.25% in 2017 and 2016, respectively, annualized)			(31,382)	(30,182)
Ending Balance	$ 2,723,431	$ 2,269,045	$ 2,723,431	$ 2,269,045
Capital Stock Class B Putable [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance, Shares			14,926	15,278
Beginning Balance			$ 1,492,581	$ 1,527,806
Proceeds from issuance of capital stock, shares			2,092	515
Proceeds from issuance of capital stock			$ 209,263	$ 51,539
Shares reclassified to mandatorily redeemable capital stock, net, shares				(1,789)
Shares reclassified to mandatorily redeemable capital stock, net			$ 0	$ (178,898)
Ending Balance, Shares	17,018	14,004	17,018	14,004
Ending Balance	$ 1,701,844	$ 1,400,447	$ 1,701,844	$ 1,400,447
Retained Earnings Total [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			887,247	835,113
Total comprehensive income			69,302	49,485
Distributions on mandatorily redeemable capital stock				(1,038)
Cash dividends on capital stock (4.25% and 4.25% in 2017 and 2016, respectively, annualized)			(31,382)	(30,182)
Ending Balance	925,167	853,378	925,167	853,378
Retained Earnings, Unrestricted [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			734,982	705,449
Total comprehensive income			55,441	39,588
Distributions on mandatorily redeemable capital stock				(1,038)
Cash dividends on capital stock (4.25% and 4.25% in 2017 and 2016, respectively, annualized)			(31,382)	(30,182)
Ending Balance	759,041	713,817	759,041	713,817
Retained Earnings, Restricted [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			152,265	129,664
Total comprehensive income			13,861	9,897
Distributions on mandatorily redeemable capital stock				0
Cash dividends on capital stock (4.25% and 4.25% in 2017 and 2016, respectively, annualized)			0	0
Ending Balance	166,126	139,561	166,126	139,561
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			56,368	22,878
Total comprehensive income			40,052	(7,658)
Ending Balance	$ 96,420	$ 15,220	$ 96,420	$ 15,220

XML

Statements of Capital (Unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Annualized Dividend Rate on Capital Stock (percentage)	4.25%	4.25%

XML

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
Operating Activities:
Net income		$ 69,302	$ 49,485
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation		39,903	25,429
Prepayment fees on advances, net of related swap termination fees		0	(526)
Changes in net derivative and hedging activities		(10,381)	25,847
Net other-than-temporary impairment losses, credit portion		193	93
Provision for (reversal of) credit losses		281	(217)
Changes in:
Accrued interest receivable		(5,456)	(9,222)
Other assets		(812)	430
Accrued interest payable		18,813	6,382
Other liabilities		3,393	12,886
Total adjustments, net		45,934	61,102
Net cash provided by operating activities		115,236	110,587
Net change in:
Interest-bearing deposits		(214,162)	(464,022)
Securities purchased under agreements to resell		(745,691)	(2,000,000)
Federal funds sold		(925,000)	(1,350,000)
Available-for-sale securities:
Proceeds from maturities		726,741	230,099
Purchases		(1,347,941)	(2,242,700)
Held-to-maturity securities:
Proceeds from maturities		603,556	636,471
Purchases		(423,325)	(699,192)
Advances:
Principal repayments		111,970,703	68,037,610
Disbursements to members		(116,127,479)	(67,480,894)
Mortgage loans held for portfolio:
Principal collections		571,048	685,139
Purchases from members		(991,250)	(1,305,002)
Purchases of premises, software, and equipment		(2,206)	(1,896)
Net cash used in investing activities		(6,905,006)	(5,954,387)
Financing Activities:
Changes in deposits		138,364	106,621
Net payments on derivative contracts with financing elements		(10,079)	(16,540)
Net proceeds from issuance of consolidated obligations:
Discount notes		108,963,689	153,113,474
Bonds		12,522,925	17,767,472
Payments for matured and retired consolidated obligations:
Discount notes		(104,740,562)	(156,449,992)
Bonds		(10,713,770)	(13,182,770)
Proceeds from issuance of capital stock		209,263	51,539
Payments for redemption/repurchase of mandatorily redeemable capital stock		(3,208)	(16,396)
Dividend payments on capital stock		(31,382)	(30,182)
Net cash provided by financing activities		6,335,240	1,343,226
Net decrease in cash and due from banks		(454,530)	(4,500,574)
Cash and due from banks at beginning of period		546,612	4,931,602
Cash and due from banks at end of period		92,082	431,028
Supplemental Disclosures:
Interest payments		242,369	188,309
Purchases of securities traded but not yet settled		455,289	56,556
Affordable Housing Program payments	[1]	10,059	10,997
Capitalized interest on certain held-to-maturity securities		817	655
Par value of shares reclassified to mandatorily redeemable capital stock, net		$ 0	$ 178,898

[1] Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

We use certain acronyms and terms throughout these notes to financial statements, which are defined in the Glossary of Terms. Unless the context otherwise requires, the terms "Bank," "we," "us," and "our" refer to the Federal Home Loan Bank of Indianapolis or its management.

Basis of Presentation. The accompanying interim financial statements have been prepared in accordance with GAAP and SEC requirements for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Certain disclosures that would substantially duplicate the disclosures in the financial statements, and notes thereto, included in our 2016 Form 10-K have been omitted unless the information contained in those disclosures materially changed. Therefore, these interim financial statements should be read in conjunction with our audited financial statements, and notes thereto, included in our 2016 Form 10-K.

The financial statements contain all adjustments that are, in the opinion of management, necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented. All such adjustments were of a normal recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full calendar year or any other interim period.

Our significant accounting policies and certain other disclosures are set forthin our 2016 Form 10-K in Note 1 - Summary of Significant Accounting Policies. There have been no significant changes to these policies through June 30, 2017, except for our policy on derivatives, which has been updated to reflect changes made to the CME rulebook.

Derivatives. We record derivative instruments, related cash collateral (including initial and variation margin received or pledged/posted) and associated accrued interest on a net basis, by clearing agent and/or by counterparty when the netting requirements have been met, as either derivative assets or derivative liabilities at their estimated fair values. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability.

We use two clearinghouses for all cleared derivative transactions, LCH and CME. Effective January 3, 2017, CME made certain amendments to its rulebook, including changing the legal characterization of variation margin payments to be daily settled contracts, rather than cash collateral. Variation margin payments related to LCH contracts continue to be characterized as cash collateral. Initial margin continues to be considered by both clearinghouses as cash collateral.

Use of Estimates.When preparing financial statements in accordance with GAAP, we are required to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant estimates include derivatives and hedging activities, fair value estimates, the provision for credit losses, and OTTI. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

Reclassifications. We have reclassified certain amounts from the prior period to conform to the current period presentation. These reclassifications had no effect on net income, total comprehensive income, total capital, or net cash flows.

XML

Recently Adopted and Issued Accounting Guidance

6 Months Ended

Jun. 30, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted and Issued Accounting Guidance

Note 2 - Recently Adopted and Issued Accounting Guidance

Recently Adopted Accounting Guidance.

Contingent Put and Call Options in Debt Instruments. On March 14, 2016, the FASB issued amendments to clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host contracts. The amendments require entities to apply only the four-step decision sequence when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks.

This amended guidance was effective for the interim and annual periods beginning on January 1, 2017. The adoption of this guidance on January 1, 2017 had no effect on our financial condition, results of operations, or cash flows.

Recently Issued Accounting Guidance.

Premium Amortization on Purchased Callable Debt Securities. On March 30, 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities purchased at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. No change is required for securities purchased at a discount.

These amendments are effective beginning on January 1, 2019. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. The amendments should be applied using a modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are in the process of evaluating these amendments; therefore, their effect on our financial condition, results of operations, and cash flows has not yet been determined.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. On March 10, 2017, the FASB issued amendments to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement.

These amendments are effective for interim and annual periods beginning on January 1, 2018. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. The amendments should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit. The adoption of these amendments will result in a reclassification on the income statement only. As such, it will have no effect on our financial condition, results of operations, or cash flows.

Classification of Certain Cash Receipts and Cash Payments. On August 26, 2016, the FASB issued amendments to clarify existing guidance on the classification of certain cash receipts and payments on the statement of cash flows to reduce current and potential future diversity in practice regarding eight specific cash flow issues.

These amendments are effective for interim and annual periods beginning on January 1, 2018. Early adoption is permitted; however, we plan to adopt the amendments on the effective date. These amendments should be applied using a retrospective transition method to each period presented. The adoption of these amendments will have no effect on our financial condition, results of operations, or cash flows.

XML

Available-for-Sale Securities

6 Months Ended

Jun. 30, 2017

Available-for-sale Securities [Abstract]

Available-for-sale Securities

Note 3 - Available-for-Sale Securities

Major Security Types.The following table presents ourAFS securities by type of security.

						Gross		Gross
	Amortized		Non-Credit			Unrealized		Unrealized			Estimated
June 30, 2017	Cost (1)		OTTI			Gains		Losses			Fair Value
GSE and TVA debentures	$	4,681,231	$	—		$	46,946	$	(128	)	$	4,728,049
GSE MBS	2,069,238		—			30,337		(77		)	2,099,498
Private-label RMBS	215,586		(106		)	28,783		—			244,263
Total AFS securities	$	6,966,055	$	(106	)	$	106,066	$	(205	)	$	7,071,810
December 31, 2016
GSE and TVA debentures	$	4,693,211	$	—		$	25,624	$	(4,201	)	$	4,714,634
GSE MBS	1,058,037		—			18,279		(234		)	1,076,082
Private-label RMBS	242,181		(263		)	27,201		—			269,119
Total AFS securities	$	5,993,429	$	(263	)	$	71,104	$	(4,435	)	$	6,059,835

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses) and fair-value hedge accounting adjustments.

Unrealized Loss Positions. The following table presents impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	40,168	$	(128	)	$	—	$	—		$	40,168	$	(128	)
GSE MBS	49,795		(77		)	—		—			49,795		(77		)
Private-label RMBS	—		—			2,649		(106		)	2,649		(106		)
Total impaired AFS securities	$	89,963	$	(205	)	$	2,649	$	(106	)	$	92,612	$	(311	)
December 31, 2016
GSE and TVA debentures	$	525,722	$	(3,604	)	$	176,104	$	(597	)	$	701,826	$	(4,201	)
GSE MBS	—		—			78,704		(234		)	78,704		(234		)
Private-label RMBS	—		—			3,002		(263		)	3,002		(263		)
Total impaired AFS securities	$	525,722	$	(3,604	)	$	257,810	$	(1,094	)	$	783,532	$	(4,698	)

Contractual Maturity.The amortized cost and estimated fair value of non-MBS AFS securities are presented below by contractual maturity. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.

	June 30, 2017				December 31, 2016
	Amortized		Estimated		Amortized		Estimated
Year of Contractual Maturity	Cost		Fair Value		Cost		Fair Value
Due in 1 year or less	$	338,025	$	338,371	$	972,508	$	974,215
Due after 1 year through 5 years	2,251,296		2,273,386		1,841,488		1,855,517
Due after 5 years through 10 years	1,839,988		1,863,092		1,734,156		1,740,029
Due after 10 years	251,922		253,200		145,059		144,873
Total non-MBS	4,681,231		4,728,049		4,693,211		4,714,634
Total MBS	2,284,824		2,343,761		1,300,218		1,345,201
Total AFS securities	$	6,966,055	$	7,071,810	$	5,993,429	$	6,059,835

Realized Gains and Losses. There were no sales of AFS securities during the three or six months ended June 30, 2017. As of June 30, 2017, we had no intention of selling the AFS securities in an unrealized loss position nor did we consider it more likely than not that we will be required to sell these securities before our anticipated recovery of each security's remaining amortized cost basis.

XML

Held-to-Maturity Securities

6 Months Ended

Jun. 30, 2017

Held-to-maturity Securities [Abstract]

Held-to-Maturity Securities

Note 4 - Held-to-Maturity Securities

Major Security Types.The following table presents our HTM securities by type of security.

								Gross		Gross
								Unrecognized		Unrecognized
	Amortized		Non-Credit			Carrying		Holding		Holding			Estimated
June 30, 2017	Cost (1)		OTTI			Value		Gains		Losses			Fair Value
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,848,319	$	—		$	2,848,319	$	7,496	$	(6,294	)	$	2,849,521
GSE MBS	2,731,973		—			2,731,973		45,066		(3,783		)	2,773,256
Private-label RMBS	44,676		—			44,676		218		(358		)	44,536
Private-label ABS	8,277		(53		)	8,224		32		(533		)	7,723
Total HTM securities	$	5,633,245	$	(53	)	$	5,633,192	$	52,812	$	(10,968	)	$	5,675,036
December 31, 2016
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,678,437	$	—		$	2,678,437	$	5,412	$	(12,720	)	$	2,671,129
GSE MBS	3,082,343		—			3,082,343		46,480		(8,841		)	3,119,982
Private-label RMBS	49,748		—			49,748		61		(533		)	49,276
Private-label ABS	9,148		(103		)	9,045		40		(780		)	8,305
Total HTM securities	$	5,819,676	$	(103	)	$	5,819,573	$	51,993	$	(22,874	)	$	5,848,692

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses).

Unrealized Loss Positions. The following table presents impaired HTM securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses (1)
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	467,766	$	(2,648	)	$	1,031,269	$	(3,646	)	$	1,499,035	$	(6,294	)
GSE MBS	569,000		(3,488		)	142,130		(295		)	711,130		(3,783		)
Private-label RMBS	7,561		(3		)	18,143		(355		)	25,704		(358		)
Private-label ABS	—		—			7,724		(554		)	7,724		(554		)
Total impaired HTM securities	$	1,044,327	$	(6,139	)	$	1,199,266	$	(4,850	)	$	2,243,593	$	(10,989	)
December 31, 2016
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	367,474	$	(997	)	$	1,426,182	$	(11,723	)	$	1,793,656	$	(12,720	)
GSE MBS	1,281,827		(7,915		)	320,141		(926		)	1,601,968		(8,841		)
Private-label RMBS	18,166		(62		)	15,770		(471		)	33,936		(533		)
Private-label ABS	—		—			8,304		(843		)	8,304		(843		)
Total impaired HTM securities	$	1,667,467	$	(8,974	)	$	1,770,397	$	(13,963	)	$	3,437,864	$	(22,937	)

⁽¹⁾  For private-label ABS, the total of unrealized losses does not agree to total gross unrecognized holding losses at June 30, 2017 and December 31, 2016 of $533 and $780, respectively. Total unrealized losses include non-credit-related OTTI losses recorded in AOCI of $53 and $103, respectively, and gross unrecognized holding gains on previously OTTI securities of $32 and $40, respectively.

XML

Other-Than-Temporary Impairment

6 Months Ended

Jun. 30, 2017

Other than Temporary Impairment Losses, Investments [Abstract]

Other-Than-Temporary-Impairment

Note 5 - Other-Than-Temporary Impairment

OTTI Evaluation Process and Results - Private-label RMBS and ABS. On a quarterly basis, we evaluate for OTTI our individual AFS and HTM investment securities that have been previously OTTI or are in an unrealized loss position.

Significant Inputs. The FHLBanks developed a short-term housing price forecast with projected changes ranging from a decrease of 5% to an increase of 11% over a twelve-month period. For the vast majority of housing markets, the changes range from an increase of 1% to an increase of 6%. Thereafter, a unique path is projected for each geographic area based on an internally developed framework derived from historical data.

The following table presents the significant modeling assumptions used to determine the amount of credit loss recognized in earnings during the three months ended June 30, 2017 on the two securities for which an OTTI was determined to have occurred, as well as the related current credit enhancement.

	Significant Modeling Assumptions for OTTI private-label RMBS for the three months ended June 30, 2017
Year of Securitization	Prepayment Rates		Default Rates		Loss Severities		Current Credit  Enhancement
Prime - 2006	9	%	13	%	33	%	0	%
Subprime - 1998(1)	7	%	41	%	40	%	0	%

⁽¹⁾  Modeling assumptions assume no payout from monoline bond insurers.

Results of OTTI Evaluation Process - Private-label RMBS and ABS. As part of our evaluation, we consider whether we intend to sell each security and whether it is more likely than not that we will be required to sell the security before its anticipated recovery of amortized cost.

If either of these conditions is met, we recognize an OTTI loss in earnings equal to the entire difference between the debt security's amortized cost and its estimated fair value at the statement of condition date. We did not have any such change in intent or likelihood during the three and six months ended June 30, 2017.

For those remaining securities that meet neither of these conditions, we performed a cash flow analysis to determine whether we expect to recover the entire amortized cost of each security. As a result of our analysis, on two securities previously OTTI, credit losses were recognized for the three and six months ended June 30, 2017 of $111 and $193, respectively. OTTI credit losses were recognized on one security for the three and six months ended June 30, 2016 of $93. We determined that the unrealized losses on the remaining private-label RMBS and ABS were temporary as we expect to recover the entire amortized cost.

Evaluation Process and Results - All Other AFS and HTM Securities.

Other U.S. and GSE Obligations and TVA Debentures. For other U.S. obligations, GSE obligations, and TVA debentures, we determined that, based on current expectations, the strength of the issuers' guarantees through direct obligations of or support from the United States government is sufficient to protect us from any losses. As a result, all of the gross unrealized losses as of June 30, 2017 are considered temporary.

XML

Advances

6 Months Ended

Jun. 30, 2017

Advances [Abstract]

Advances

Note 6 - Advances

The following table presents advances outstanding by year of contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,779		3.38	$	—		—
Due in 1 year or less	16,238,103			1.24	12,598,864			0.91
Due after 1 year through 2 years	2,374,373			1.78	2,752,629			1.74
Due after 2 years through 3 years	2,791,702			1.74	1,920,962			2.10
Due after 3 years through 4 years	2,098,808			1.63	2,605,198			1.38
Due after 4 years through 5 years	2,084,100			1.69	2,009,395			1.47
Thereafter	6,699,872			1.46	6,244,912			1.20
Total advances, par value	32,288,737			1.42	28,131,960			1.22
Fair-value hedging adjustments	(51,704		)		(57,716		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	16,317				21,709
Total advances	$	32,253,350			$	28,095,953

The following table presents advances outstanding by the earlier of the year of contractual maturity or the next call date and next put date.

	Year of Contractual Maturity or Next Call Date				Year of Contractual Maturity or Next Put Date
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
Overdrawn demand and overnight deposit accounts	$	1,779	$	—	$	1,779	$	—
Due in 1 year or less	23,793,604		19,390,714		16,419,603		12,767,364
Due after 1 year through 2 years	1,967,873		2,502,629		2,374,373		2,757,629
Due after 2 years through 3 years	2,066,702		1,856,463		3,029,302		1,915,962
Due after 3 years through 4 years	1,326,508		1,548,998		2,565,308		2,605,198
Due after 4 years through 5 years	870,300		900,095		2,416,500		2,535,895
Thereafter	2,261,971		1,933,061		5,481,872		5,549,912
Total advances, par value	$	32,288,737	$	28,131,960	$	32,288,737	$	28,131,960

In accordance with the Final Membership Rule, captive insurance companies that were admitted as FHLBank members on orafter September 12, 2014 repaid all of their outstanding advances and had their memberships terminated by February 19, 2017.

Under the Final Membership Rule, captive insurance companies that were admitted as FHLBank members prior to September 12, 2014, and do not meet the new definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership, shall have their memberships terminated no later than February 19, 2021. Prior to termination, new or renewed extensions of credit to such members will be subject to certain restrictions relating to maturity dates and the ratio of advances to the captive insurer's total assets and may be subject to additional restrictions at our discretion. The outstanding advances to these captive insurers mature on various dates through 2025.

Credit Risk Exposure and Security Terms. At June 30, 2017 and December 31, 2016, our top five borrowers held 45% and 43%, respectively, of total advances outstanding, at par. We held sufficient collateral to secure the advances to these borrowers.

See Note 9 - Allowance for Credit Losses in our 2016 Form 10-K for information related to credit risk on advances and allowance methodology for credit losses.

XML

Mortgage Loans Held for Portfolio

6 Months Ended

Jun. 30, 2017

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans Held for Portfolio

Note 7 - Mortgage Loans Held for Portfolio

The following tables present information on mortgage loans held for portfolio by term, type, and product.

Term	June 30, 2017			December 31, 2016
Fixed-rate long-term mortgages	$	8,499,668		$	8,086,412
Fixed-rate medium-term (1) mortgages	1,174,779			1,206,978
Total mortgage loans held for portfolio, UPB	9,674,447			9,293,390
Unamortized premiums	221,789			210,116
Unamortized discounts	(2,593		)	(2,383		)
Fair-value hedging adjustments	1,649			1,124
Allowance for loan losses	(850		)	(850		)
Total mortgage loans held for portfolio, net	$	9,894,442		$	9,501,397

⁽¹⁾  Defined as a term of 15 years or less at origination.

Type	June 30, 2017		December 31, 2016
Conventional	$	9,212,060	$	8,796,407
Government-guaranteed or -insured	462,387		496,983
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

Product	June 30, 2017		December 31, 2016
MPP	$	9,339,161	$	8,930,194
MPF Program	335,286		363,196
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

In December 2016, we agreed to sell a 90% participating interest in a $100 million MCC of certain newly acquired MPP loans to the FHLBank of Atlanta. Principal amounts settled in December 2016 totaled $72 million, and the remaining $18 million settled in January 2017.

See Note 8 - Allowance for Credit Losses for information related to our credit risk on mortgage loans and allowance methodology for loan losses.

XML

Allowance for Credit Losses

6 Months Ended

Jun. 30, 2017

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

Note 8 - Allowance for Credit Losses

A description of the allowance methodologies for our portfolio segments as well as our policy for impairing financing receivables and charging them off when necessary is disclosed inNote 1 - Summary of Significant Accounting Policies and Note 9 - Allowance for Credit Losses in our 2016 Form 10-K.

Conventional MortgageLoans.

Conventional MPP.The following table presents the activity in the LRA.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2017			2016			2017			2016
Liability, beginning of period	$	130,728		$	96,663		$	125,683		$	91,552
Additions	6,536			10,011			11,767			15,418
Claims paid	(146		)	(276		)	(248		)	(485		)
Distributions to PFIs	(277		)	(833		)	(361		)	(920		)
Liability, end of period	$	136,841		$	105,565		$	136,841		$	105,565

The following table presents the impact of credit enhancements on the allowance for MPP loan losses.

MPP Credit Waterfall	June 30, 2017			December 31, 2016
Estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	7,432		$	8,689
Portion of estimated incurred losses recoverable from PMI	(1,791		)	(1,981		)
Portion of estimated incurred losses recoverable from LRA (2)	(1,876		)	(2,418		)
Portion of estimated incurred losses recoverable from SMI	(3,065		)	(3,590		)
Allowance for unrecoverable PMI/SMI	50			50
Allowance for MPP loan losses	$	750		$	750

⁽¹⁾  Based on a loss emergence period of 24 months.

⁽²⁾  Amounts recoverable are limited to (i) the estimated losses remaining after borrower's equity and PMI and (ii) the remaining balance in each pool's portion of the LRA. The remainder of the LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

Credit Quality Indicators. The tables below present the key credit quality indicators for our mortgage loans held for portfolio.

Delinquency Status as of June 30, 2017	Conventional			Government			Total
Past due:
30-59 days	$	36,986		$	11,767		$	48,753
60-89 days	8,966			2,326			11,292
90 days or more	22,679			1,463			24,142
Total past due	68,631			15,556			84,187
Total current	9,396,980			454,736			9,851,716
Total mortgage loans, recorded investment	$	9,465,611		$	470,292		$	9,935,903
Other Delinquency Statistics as of June 30, 2017
In process of foreclosure(1)	$	13,833		$	—		$	13,833
Serious delinquency rate (2)	0.24		%	0.31		%	0.24		%
Past due 90 days or more still accruing interest (3)	$	19,543		$	1,463		$	21,006
On non-accrual status	$	4,022		$	—		$	4,022

Delinquency Status as of December 31, 2016	Conventional			Government			Total
Past due:
30-59 days	$	46,118		$	17,183		$	63,301
60-89 days	11,044			3,548			14,592
90 days or more	29,098			2,350			31,448
Total past due	86,260			23,081			109,341
Total current	8,949,441			482,316			9,431,757
Total mortgage loans, recorded investment	$	9,035,701		$	505,397		$	9,541,098
Other Delinquency Statistics as of December 31, 2016
In process of foreclosure(1)	$	17,749		$	—		$	17,749
Serious delinquency rate (2)	0.32		%	0.46		%	0.33		%
Past due 90 days or more still accruing interest (3)	$	25,375		$	2,350		$	27,725
On non-accrual status	$	4,699		$	—		$	4,699

⁽¹⁾  Includes loans for which the decision of foreclosure or similar alternative, such as pursuit of deed-in-lieu of foreclosure, has been reported. Loans in process of foreclosure are included in past due categories depending on their delinquency status, but are not necessarily considered to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

⁽²⁾  Represents loans 90 days or more past due (including loans in process of foreclosure) expressed as a percentage of the total recorded investment in mortgage loans. The percentage excludes principal and interest amounts previously paid in full by the servicers on conventional loans that are pending resolution of potential loss claims. Our servicers repurchase seriously delinquent government loans, including FHA loans, when certain criteria are met.

⁽³⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the mortgagor's payment status, we do not consider these loans to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

Allowance for Loan Losses on Mortgage Loans. The tables below present a rollforward of our allowance for loan losses, the allowance for loan losses by impairment methodology, and the recorded investment in mortgage loans by impairment methodology.

	Three Months Ended June 30,						Six Months Ended June 30,
Rollforward of Allowance for Loan Losses	2017			2016			2017			2016
Balance, beginning of period	$	850		$	850		$	850		$	1,125
Charge-offs, net of recoveries	(130		)	242			(281		)	(58		)
Provision for (reversal of) loan losses	130			(242		)	281			(217		)
Balance, end of period	$	850		$	850		$	850		$	850

Allowance for Loan Losses by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	730	$	750
Conventional loans individually evaluated for impairment (1)	120		100
Total allowance for loan losses	$	850	$	850
Recorded Investment by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	9,450,390	$	9,020,194
Conventional loans individually evaluated for impairment (1)	15,221		15,507
Total recorded investment	$	9,465,611	$	9,035,701

⁽¹⁾  The recorded investment in our MPP conventional loans individually evaluated for impairment excludes principal previously paid in full by the servicers as of June 30, 2017 and December 31, 2016 of $3,273 and $2,814, respectively, that remains subject to potential claims by those servicers for any losses resulting from past or future liquidations of the underlying properties. However, the MPP allowance for loan losses as of June 30, 2017 and December 31, 2016 includes $73 and $70, respectively, for these potential claims.

Individually Evaluated Impaired Loans. The tables below present the conventional loans individually evaluated for impairment with and without an allowance for loan losses. The first table presents the recorded investment, UPB and related allowance associated with these loans, while the next table presents the average recorded investment of these loans and related interest income recognized. Due to the minimal change in terms of modified loans (i.e., no principal forgiven), our pre-modification recorded investment in TDRs was not materially different than the post-modification recorded investment.

	June 30, 2017						December 31, 2016
Individually Evaluated Impaired Loans	Recorded Investment		UPB		Related Allowance for Loan Losses		Recorded Investment		UPB		Related Allowance for Loan Losses
MPP conventional loans without allowance for loan losses (1)	$	13,945	$	14,007	$	—	$	15,158	$	15,219	$	—
MPP conventional loans with allowance for loan losses	1,276		1,279		47		349		358		30
Total	$	15,221	$	15,286	$	47	$	15,507	$	15,577	$	30

⁽¹⁾  No allowance for loan losses was recorded on these impaired loans after consideration of the underlying loan-specific attribute data, estimated liquidation value of real estate collateral held, estimated costs associated with maintaining and disposing of the collateral, and credit enhancements.

	Three Months Ended				Three Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,537	$	161	$	16,474	$	175
MPP conventional loans with allowance for loan losses	1,279		19		1,268		17
Total	$	15,816	$	180	$	17,742	$	192

	Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,475	$	354	$	16,330	$	387
MPP conventional loans with allowance for loan losses	1,283		25		1,272		28
Total	$	15,758	$	379	$	17,602	$	415

XML

Derivative and Hedging Activities

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Note 9 - Derivatives and Hedging Activities

Financial Statement Effect and Additional Financial Information.

Derivative Notional Amounts. We record derivative instruments, related cash collateral (including initial and variation margin received or pledged/posted) and associated accrued interest on a net basis, by clearing agent and/or by counterparty when the netting requirements have been met. The following table presents the notional amount and estimated fair value of derivative assets and liabilities.

	Notional		Estimated Fair Value			Estimated Fair Value
	Amount of		of Derivative			of Derivative
June 30, 2017	Derivatives		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	26,869,481	$	215,237		$	91,410
Total derivatives designated as hedging instruments	26,869,481		215,237			91,410
Derivatives not designated as hedging instruments:
Interest-rate swaps	131,500		255			17
Swaptions	200,000		—			—
Interest-rate caps/floors	323,500		189			—
Interest-rate forwards	154,000		392			—
MDCs	153,159		20			491
Total derivatives not designated as hedging instruments	962,159		856			508
Total derivatives before adjustments	$	27,831,640	216,093			91,918
Netting adjustments (1)			(89,505		)	(89,505		)
Cash collateral and variation margin for daily settled contracts (1)			28,713			(19		)
Total derivatives, net			$	155,301		$	2,394
December 31, 2016
Derivatives designated as hedging instruments:
Interest-rate swaps	$	23,998,498	$	230,705		$	102,201
Total derivatives designated as hedging instruments	23,998,498		230,705			102,201
Derivatives not designated as hedging instruments:
Interest-rate swaps	901,344		1,430			31
Swaptions	350,000		2			50
Interest-rate caps/floors	364,500		322			2
Interest-rate forwards	99,100		339			352
MDCs	99,002		303			471
Total derivatives not designated as hedging instruments	1,813,946		2,396			906
Total derivatives before adjustments	$	25,812,444	233,101			103,107
Netting adjustments (1)			(133,089		)	(133,089		)
Cash collateral (1)			34,836			55,207
Total derivatives, net			$	134,848		$	25,225

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty (including fair value adjustments on derivatives for which variation margin payments are characterized as daily settled contracts). Cash collateral pledged to counterparties at June 30, 2017 and December 31, 2016 totaled $92,236 and $35,422, respectively. Cash collateral received from counterparties at June 30, 2017 and December 31, 2016 totaled $43,756 and $55,793, respectively. Variation margin for daily settled contracts totaled $19,748 at June 30, 2017. See Note 1 - Summary of Significant Accounting Policies for more information.

The following table presents separately the estimated fair value of derivative instruments meeting and not meeting netting requirements, including the effect of the related collateral received from or pledged to counterparties and variation margin for daily settled contracts.

	June 30, 2017						December 31, 2016
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	81,432		$	36,230		$	86,606		$	45,449
Cleared	134,249			55,197			145,853			56,835
Total gross recognized amount	215,681			91,427			232,459			102,284
Gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	(69,910		)	(34,327		)	(76,255		)	(21,047		)
Cleared (1)	9,118			(55,197		)	(21,998		)	(56,835		)
Total gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts	(60,792		)	(89,524		)	(98,253		)	(77,882		)
Net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	11,522			1,903			10,351			24,402
Cleared	143,367			—			123,855			—
Total net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts	154,889			1,903			134,206			24,402
Derivative instruments not meeting netting requirements (2)	412			491			642			823
Total derivatives, at estimated fair value	$	155,301		$	2,394		$	134,848		$	25,225

⁽¹⁾  Variation margin for daily settled contracts totaled $19,748 at June 30, 2017.

⁽²⁾  Includes MDCs and certain interest-rate forwards.

The following table presents the components of net gains (losses) on derivatives and hedging activities reported in other income (loss).

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2017			2016			2017			2016
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	(3,859	)	$	(2,134	)	$	(7,833	)	$	(2,577	)
Total net gain (loss) related to fair-value hedge ineffectiveness	(3,859		)	(2,134		)	(7,833		)	(2,577		)
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(66		)	(198		)	(88		)	(1,413		)
Swaptions	(38		)	—			(177		)	—
Interest-rate caps/floors	(177		)	(16		)	(131		)	(47		)
Interest-rate forwards	(773		)	(2,863		)	(941		)	(5,337		)
Net interest settlements	(144		)	(12		)	(291		)	(124		)
MDCs	397			2,430			476			4,608
Total net gain (loss) on derivatives not designated as hedging instruments	(801		)	(659		)	(1,152		)	(2,313		)
Other (1)	(50		)	—			(100		)	—
Net gains (losses) on derivatives and hedging activities	$	(4,710	)	$	(2,793	)	$	(9,085	)	$	(4,890	)

⁽¹⁾  Consists of price alignment amounts on derivatives for which variation margin payments are characterized as daily settled contracts.

The following table presents, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair-value hedging relationships and the effect of those derivatives on net interest income.

	Gain (Loss)			Gain (Loss)			Net Fair-			Effect on
	on			on Hedged			Value Hedge			Net Interest
Three Months Ended June 30, 2017	Derivative			Item			Ineffectiveness			Income (1)
Advances	$	(24,561	)	$	23,769		$	(792	)	$	(8,912	)
AFS securities	(42,407		)	40,147			(2,260		)	(13,928		)
CO bonds	10,380			(11,187		)	(807		)	4,377
Total	$	(56,588	)	$	52,729		$	(3,859	)	$	(18,463	)
Three Months Ended June 30, 2016
Advances	$	(26,669	)	$	25,772		$	(897	)	$	(25,941	)
AFS securities	(51,639		)	47,568			(4,071		)	(25,700		)
CO bonds	8,451			(5,617		)	2,834			4,640
Total	$	(69,857	)	$	67,723		$	(2,134	)	$	(47,001	)
Six Months Ended June 30, 2017
Advances	$	(8,825	)	$	9,241		$	416		$	(20,391	)
AFS securities	(25,332		)	20,064			(5,268		)	(30,793		)
CO Bonds	4,828			(7,809		)	(2,981		)	7,765
Total	$	(29,329	)	$	21,496		$	(7,833	)	$	(43,419	)
Six Months Ended June 30, 2016
Advances	$	(119,715	)	$	119,978		$	263		$	(53,904	)
AFS securities	(111,255		)	107,262			(3,993		)	(52,091		)
CO Bonds	20,796			(19,643		)	1,153			10,267
Total	$	(210,174	)	$	207,597		$	(2,577	)	$	(95,728	)

⁽¹⁾  Includes the effect of derivatives in fair-value hedging relationships on net interest income that is recorded in the interest income/expense line item of the respective hedged items. Excludes the interest income/expense of the respective hedged items, which fully offset the interest income/expense of the derivatives, except to the extent of any hedge ineffectiveness. Net interest settlements on derivatives that are not in fair-value hedging relationships are reported in other income (loss). These amounts do not include the effect of amortization/accretion related to fair value hedging activities.

Managing Credit Risk on Derivatives. We are subject to credit risk due to the risk of nonperformance by the counterparties to our derivative transactions.

For our uncleared derivatives, we have credit support agreements that contain provisions requiring us to post additional collateral with our counterparties if there is deterioration in our credit rating. If our credit rating is lowered by an NRSRO, we could be required to deliver additional collateral on uncleared derivative instruments in net liability positions. The aggregate estimated 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 on cash collateral) at June 30, 2017 was $6,480, for which we have posted collateral, including accrued interest, with an estimated fair value of $8,173 in the normal course of business. In addition, we held other derivative instruments in a net liability position of $491 that are not subject to credit support agreements containing credit risk-related contingent features. If our credit rating had been lowered by an NRSRO (from an S&P equivalent of AA+ to AA), we could have been required to deliver up to an additional $500 of collateral (at estimated fair value) to our uncleared derivative counterparties at June 30, 2017.

For cleared derivatives, the clearinghouse is our counterparty. We use two clearinghouses for all cleared derivative transactions, LCH and CME. Collateral is required to be posted daily for changes in the value of cleared derivatives to mitigate each counterparty's credit risk. The clearinghouse notifies the clearing agent of the required initial and variation margin, and the clearing agent notifies us. The requirement that we post initial and variation margin through the clearing agent for the benefit of the clearinghouse exposes us to institutional credit risk in the event that the clearing agent or clearinghouse fails to meet its obligations.

Effective January 3, 2017, CME made certain amendments to its rulebook, including changing the legal characterization of variation margin payments to be daily settled contracts, rather than cash collateral. Variation margin payments related to LCH contracts continue to be characterized as cash collateral. Initial margin continues to be considered by both clearinghouses as cash collateral.

For cleared derivatives, the clearinghouse determines margin requirements, into which credit ratings are not generally factored. However, clearing agents may require additional margin to be posted by us based on credit considerations, including but not limited to any credit rating downgrades. At June 30, 2017, we were not required by our clearing agents to post any additional margin.

XML

Consolidated Obligations

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Consolidated Obligations

Note 10 - Consolidated Obligations

In addition to being the primary obligor for all consolidated obligations issued on our behalf, we are jointly and severally liable with each of the other FHLBanks for the payment of the principal and interest on all FHLBank outstanding consolidated obligations. The par values of the FHLBanks' outstanding consolidated obligations at June 30, 2017 and December 31, 2016 totaled $1.0 trillion and $989.3 billion, respectively.

Discount Notes. The following table presents our discount notes outstanding, all of which are due within one year of issuance.

Discount Notes	June 30, 2017			December 31, 2016
Book value	$	21,036,075		$	16,801,763
Par value	21,072,353			16,819,659
Weighted average effective interest rate	0.96		%	0.51		%

CO Bonds. The following table presents our CO bonds outstanding by contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	14,708,530		1.12	$	16,234,460		0.85
Due after 1 year through 2 years	8,357,605			1.31	6,122,190			0.96
Due after 2 years through 3 years	3,300,980			2.08	2,718,945			1.65
Due after 3 years through 4 years	1,458,370			2.51	1,684,530			3.17
Due after 4 years through 5 years	993,820			2.06	1,040,000			2.17
Thereafter	6,495,000			2.87	5,708,000			2.92
Total CO bonds, par value	35,314,305			1.66	33,508,125			1.44
Unamortized premiums	28,092				27,462
Unamortized discounts	(12,116		)		(12,059		)
Unamortized concessions	(13,989		)		(13,705		)
Fair-value hedging adjustments	(34,656		)		(42,544		)
Total CO bonds	$	35,281,636			$	33,467,279

The following tables present our participation in CO bonds outstanding by redemption feature and the earlier of the year of contractual maturity or next call date.

Redemption Feature	June 30, 2017		December 31, 2016
Non-callable / non-putable	$	26,086,305	$	25,627,125
Callable	9,228,000		7,881,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

Year of Contractual Maturity or Next Call Date	June 30, 2017		December 31, 2016
Due in 1 year or less	$	23,234,530	$	23,825,460
Due after 1 year through 2 years	7,629,605		4,675,190
Due after 2 years through 3 years	2,212,980		2,240,945
Due after 3 years through 4 years	827,370		1,257,530
Due after 4 years through 5 years	381,820		474,000
Thereafter	1,028,000		1,035,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

XML

Affordable Housing Program

6 Months Ended

Jun. 30, 2017

Affordable Housing Program (AHP) [Abstract]

Affordable Housing Program

Note 11 - Affordable Housing Program

The following table summarizes the activity in our AHP funding obligation.

	Three Months Ended June 30,						Six Months Ended June 30,
AHP Activity	2017			2016			2017			2016
Liability at beginning of period	$	27,203		$	28,235		$	26,598		$	31,103
Assessment (expense)	4,381			2,717			8,090			5,817
Subsidy usage, net (1)	(6,955		)	(5,029		)	(10,059		)	(10,997		)
Liability at end of period	$	24,629		$	25,923		$	24,629		$	25,923

⁽¹⁾  Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

We had no outstanding principal in AHP-related advances at June 30, 2017 or December 31, 2016.

XML

Capital

6 Months Ended

Jun. 30, 2017

Capital [Abstract]

Capital

Note 12 - Capital

Mandatorily Redeemable Capital Stock.The following table presents the activity related to MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2017			2016			2017			2016
Liability at beginning of period	$	166,930		$	192,548		$	170,043		$	14,063
Reclassification from capital stock	—			—			—			178,898
Redemptions/repurchases	(95		)	(14,945		)	(3,208		)	(16,396		)
Accrued distributions	—			—			—			1,038
Liability at end of period	$	166,835		$	177,603		$	166,835		$	177,603

In accordance with the Final Membership Rule, captive insurance companies that were admitted as FHLBank members on orafter September 12, 2014 had their memberships terminated by February 19, 2017. As a result, all of their outstanding Class B stock, totaling $3,021 at December 31, 2016, was repurchased on or before February 19, 2017.

Captive insurance companies that were admitted as FHLBank members prior to September 12, 2014, and do not meet the new definition of "insurance company" or fall within another category of institution that is eligible for FHLBank membership, shall have their memberships terminated no later than February 19, 2021. Upon termination, all of their outstanding Class B stock shall be repurchased, or redeemed after a five-year redemption period.

As a result of, and effective with, the Final Membership Rule in February 2016, we reclassified all of the outstanding Class B stock of our captive insurance company members totaling $178,898 to MRCS.

The following table presents MRCS by contractual year of redemption. The year of redemption is the later of: (i) the final year of the five-year redemption period, or (ii) the first year in which a non-member no longer has an activity-based stock requirement.

MRCS Contractual Year of Redemption	June 30, 2017		December 31, 2016
Year 1 (1)	$	10,476	$	8,630
Year 2	—		5,054
Year 3	13		13
Year 4	73		—
Year 5	4,085		4,158
Thereafter (2)	152,188		152,188
Total MRCS	$	166,835	$	170,043

⁽¹⁾  Balances at June 30, 2017 and December 31, 2016 include $5,422 and $5,609, respectively, of Class B stock that had reached the end of the five-year redemption period but will not be redeemed until the associated credit products and other obligations are no longer outstanding.

⁽²⁾  Represents the five-year redemption period of outstanding Class B stock held by certain captive insurance companies which begins immediately upon their termination of memberships no later than February 19, 2021, in accordance with the Final Membership Rule.

The following table presents the distributions related to MRCS.

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2017		2016		2017		2016
Recorded as interest expense	$	1,756	$	1,871	$	3,509	$	2,868
Recorded as distributions from retained earnings	—		—		—		1,038
Total	$	1,756	$	1,871	$	3,509	$	3,906

Capital Requirements. We are subject to capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 15 - Capital in our 2016 Form 10-K. As presented in the following table, we were in compliance with the Finance Agency's capital requirements at June 30, 2017 and December 31, 2016. For regulatory purposes, AOCI is not considered capital; MRCS, however, is considered capital.

	June 30, 2017						December 31, 2016
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	851,196		$	2,793,846		$	760,946		$	2,549,871
Regulatory permanent capital-to-asset ratio	4.00		%	4.60		%	4.00		%	4.73		%
Regulatory permanent capital	$	2,428,479		$	2,793,846		$	2,156,296		$	2,549,871
Leverage ratio	5.00		%	6.90		%	5.00		%	7.10		%
Leverage capital	$	3,035,599		$	4,190,769		$	2,695,370		$	3,824,806

XML

Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2017

AOCI Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income

Note 13 - Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of the changes in the components of AOCI for the three and six months ended June 30, 2016 and 2017.

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, March 31, 2016	$	(116	)	$	24,462		$	(124	)	$	(7,074	)	$	17,148
OCI before reclassifications:
Net change in unrealized gains (losses)	(693		)	(506		)	—			—			(1,199		)
Net change in fair value	—			28			—			—			28
Accretion of non-credit losses	—			—			8			—			8
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(858		)	(858		)
Total other comprehensive income (loss)	(693		)	(385		)	8			(858		)	(1,928		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, March 31, 2017	$	62,224		$	27,529		$	(97	)	$	(9,607	)	$	80,049
OCI before reclassifications:
Net change in unrealized gains (losses)	14,854			990			—			—			15,844
Net change in fair value	—			85			—			—			85
Accretion of non-credit losses	—			—			6			—			6
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			73			38			—			111
Pension benefits, net	—			—			—			325			325
Total other comprehensive income (loss)	14,854			1,148			44			325			16,371
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, December 31, 2015	$	97		$	30,229		$	(132	)	$	(7,316	)	$	22,878
OCI before reclassifications:
Net change in unrealized gains (losses)	(906		)	(6,297		)	—			—			(7,203		)
Net change in fair value	—			52			—			—			52
Accretion of non-credit losses	—			—			16			—			16
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(616		)	(616		)
Total other comprehensive income (loss)	(906		)	(6,152		)	16			(616		)	(7,658		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, December 31, 2016	$	39,468		$	26,938		$	(103	)	$	(9,935	)	$	56,368
OCI before reclassifications:
Net change in unrealized gains (losses)	37,610			1,582			—			—			39,192
Net change in fair value	—			2			—			—			2
Accretion of non-credit losses	—			—			12			—			12
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			155			38			—			193
Pension benefits, net	—			—			—			653			653
Total other comprehensive income (loss)	37,610			1,739			50			653			40,052
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

XML

Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Note 14 - Segment Information

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2017									Three Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	47,255		$	17,810		$	65,065		$	32,418		$	13,181		$	45,599
Provision for (reversal of) credit losses	—			130			130			—			(242		)	(242		)
Other income (loss)	(3,329		)	(504		)	(3,833		)	(1,518		)	(365		)	(1,883		)
Other expenses	16,031			3,013			19,044			15,816			2,837			18,653
Income before assessments	27,895			14,163			42,058			15,084			10,221			25,305
Affordable Housing Program assessments	2,965			1,416			4,381			1,695			1,022			2,717
Net income	$	24,930		$	12,747		$	37,677		$	13,389		$	9,199		$	22,588
	Six Months Ended June 30, 2017									Six Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	88,791		$	35,277		$	124,068		$	65,490		$	29,480		$	94,970
Provision for (reversal of) credit losses	—			281			281			—			(217		)	(217		)
Other income (loss)	(7,003		)	(495		)	(7,498		)	(2,460		)	(625		)	(3,085		)
Other expenses	32,826			6,071			38,897			31,226			5,574			36,800
Income before assessments	48,962			28,430			77,392			31,804			23,498			55,302
Affordable Housing Program assessments	5,247			2,843			8,090			3,467			2,350			5,817
Net income	$	43,715		$	25,587		$	69,302		$	28,337		$	21,148		$	49,485

We measure the performance of each segment based upon the net interest spread of the underlying portfolio(s). Therefore, each segment's performance begins with net interest income. Direct other income and expense items also affect each segment's results. Direct other income/expense related to the Traditional segment includes the direct earnings impact of derivatives and hedging activities related to advances and investments as well as all other income and expense not associated with mortgage loans. The Mortgage Loans segment includes the direct earnings impact of derivatives and hedging activities as well as direct compensation, benefits and other expenses (including an allocation for indirect overhead) associated with operating the MPP and MPF Program and volume-driven costs associated with master servicing and quality control fees. The assessments related to AHP have been allocated to each segment based upon its proportionate share of income before assessments.

The following table presents asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2017	$	50,817,534	$	9,894,442	$	60,711,976
December 31, 2016	44,406,003		9,501,397		53,907,400

XML

Estimated Fair Values

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Estimated Fair Values

Note 15 - Estimated Fair Values

The following tables present the carrying value and estimated fair value of each of our financial instruments. The total of the estimated fair values does not represent an estimate of our overall market value as a going concern, which would take into account, among other considerations, future business opportunities and the net profitability of assets and liabilities.

	June 30, 2017
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	92,082	$	92,082	$	92,082	$	—	$	—	$	—
Interest-bearing deposits	334,432		334,432		334,192		240		—		—
Securities purchased under agreements to resell	2,527,000		2,527,005		—		2,527,005		—		—
Federal funds sold	2,575,000		2,575,000		—		2,575,000		—		—
AFS securities	7,071,810		7,071,810		—		6,827,547		244,263		—
HTM securities	5,633,192		5,675,036		—		5,622,777		52,259		—
Advances	32,253,350		32,212,637		—		32,212,637		—		—
Mortgage loans held for portfolio, net	9,894,442		9,996,869		—		9,982,042		14,827		—
Accrued interest receivable	99,055		99,055		—		99,055		—		—
Derivative assets, net	155,301		155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		20,233		—		—		—
Liabilities:
Deposits	674,476		674,476		—		674,476		—		—
Consolidated Obligations:
Discount notes	21,036,075		21,072,353		—		21,072,353		—		—
Bonds	35,281,636		35,464,780		—		35,464,780		—		—
Accrued interest payable	117,220		117,220		—		117,220		—		—
Derivative liabilities, net	2,394		2,394		—		91,918		—		(89,524		)
MRCS	166,835		166,835		166,835		—		—		—

	December 31, 2016
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	546,612	$	546,612	$	546,612	$	—	$	—	$	—
Interest-bearing deposits	150,225		150,225		150,072		153		—		—
Securities purchased under agreements to resell	1,781,309		1,781,309		—		1,781,309		—		—
Federal funds sold	1,650,000		1,650,000		—		1,650,000		—		—
AFS securities	6,059,835		6,059,835		—		5,790,716		269,119		—
HTM securities	5,819,573		5,848,692		—		5,791,111		57,581		—
Advances	28,095,953		28,059,477		—		28,059,477		—		—
Mortgage loans held for portfolio, net	9,501,397		9,587,394		—		9,567,140		20,254		—
Accrued interest receivable	93,716		93,716		—		93,716		—		—
Derivative assets, net	134,848		134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		18,117		—		—		—
Liabilities:
Deposits	524,073		524,073		—		524,073		—		—
Consolidated Obligations:
Discount notes	16,801,763		16,819,659		—		16,819,659		—		—
Bonds	33,467,279		33,614,346		—		33,614,346		—		—
Accrued interest payable	98,411		98,411		—		98,411		—		—
Derivative liabilities, net	25,225		25,225		—		103,107		—		(77,882		)
MRCS	170,043		170,043		170,043		—		—		—

⁽¹⁾  Represents the application of the netting requirements that allow the settlement of (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

Summary of Valuation Techniques and Significant Inputs. A description of the valuation techniques, significant inputs, and levels of fair value hierarchy is disclosed in Note 19 - Estimated Fair Values in our 2016 Form 10-K. No changes have been made in the current year.

Estimated Fair Value Measurements. The following tables present, by level within the fair value hierarchy, the estimated fair value of our financial assets and liabilities that are recorded at estimated fair value on a recurring or non-recurring basis on our statement of condition.

									Netting
June 30, 2017	Total		Level 1		Level 2		Level 3		Adjustment(1)
AFS securities:
GSE and TVA debentures	$	4,728,049	$	—	$	4,728,049	$	—	$	—
GSE MBS	2,099,498		—		2,099,498		—		—
Private-label RMBS	244,263		—		—		244,263		—
Total AFS securities	7,071,810		—		6,827,547		244,263		—
Derivative assets:
Interest-rate related	154,889		—		215,681		—		(60,792		)
Interest-rate forwards	392		—		392		—		—
MDCs	20		—		20		—		—
Total derivative assets, net	155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		—		—		—
Total assets at recurring estimated fair value	$	7,247,344	$	20,233	$	7,043,640	$	244,263	$	(60,792	)
Derivative liabilities:
Interest-rate related	$	1,903	$	—	$	91,427	$	—	$	(89,524	)
Interest-rate forwards	—		—		—		—		—
MDCs	491		—		491		—		—
Total derivative liabilities, net	2,394		—		91,918		—		(89,524		)
Total liabilities at recurring estimated fair value	$	2,394	$	—	$	91,918	$	—	$	(89,524	)
Mortgage loans held for portfolio (2)	$	4,107	$	—	$	—	$	4,107	$	—
Total assets at non-recurring estimated fair value	$	4,107	$	—	$	—	$	4,107	$	—
December 31, 2016
AFS securities:
GSE and TVA debentures	$	4,714,634	$	—	$	4,714,634	$	—	$	—
GSE MBS	1,076,082		—		1,076,082		—		—
Private-label RMBS	269,119		—		—		269,119		—
Total AFS securities	6,059,835		—		5,790,716		269,119		—
Derivative assets:
Interest-rate related	134,206		—		232,459		—		(98,253		)
Interest-rate forwards	339		—		339		—		—
MDCs	303		—		303		—		—
Total derivative assets, net	134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		—		—		—
Total assets at recurring estimated fair value	$	6,212,800	$	18,117	$	6,023,817	$	269,119	$	(98,253	)
Derivative liabilities:
Interest-rate related	$	24,402	$	—	$	102,284	$	—	$	(77,882	)
Interest-rate forwards	352		—		352		—		—
MDCs	471		—		471		—		—
Total derivative liabilities, net	25,225		—		103,107		—		(77,882		)
Total liabilities at recurring estimated fair value	$	25,225	$	—	$	103,107	$	—	$	(77,882	)
Mortgage loans held for portfolio (3)	$	3,492	$	—	$	—	$	3,492	$	—
Total assets at non-recurring estimated fair value	$	3,492	$	—	$	—	$	3,492	$	—

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

⁽²⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2017.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2016.

Level 3 Disclosures for All Assets and Liabilities that are Measured at Fair Value on a Recurring Basis. The table below presents a rollforward of our AFS private-label RMBS measured at estimated fair value on a recurring basis using level 3 significant inputs. The estimated fair values were determined using a pricing source, such as a dealer quote or comparable security price, for which the significant unobservable inputs used to determine the price were not readily available.

	Three Months Ended June 30,						Six Months Ended June 30,
Level 3 Rollforward - AFS private-label RMBS	2017			2016			2017			2016
Balance, beginning of period	$	257,671		$	300,758		$	269,119		$	319,186
Total realized and unrealized gains (losses):
Accretion of credit losses in interest income	1,785			2,164			3,656			5,300
Net losses on changes in fair value in other income (loss)	(73		)	(93		)	(155		)	(93		)
Net change in fair value not in excess of cumulative non-credit losses in OCI	85			28			2			52
Unrealized gains (losses) in OCI	990			(506		)	1,582			(6,297		)
Reclassification of non-credit portion in OCI to other income (loss)	73			93			155			93
Purchases, issuances, sales and settlements:
Settlements	(16,268		)	(14,301		)	(30,096		)	(30,098		)
Balance, end of period	$	244,263		$	288,143		$	244,263		$	288,143
Net gains (losses) included in earnings attributable to changes in fair value relating to assets still held at end of period	$	1,712		$	2,071		$	3,501		$	4,347

XML

Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 16 - Commitments and Contingencies

The following table presents our off-balance-sheet commitments at their notional amounts.

	June 30, 2017
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	121,273	$	175,095	$	296,368
Unused lines of credit (1)	1,082,709		—		1,082,709
Commitments to fund additional advances (2)	55,000		—		55,000
Commitments to fund or purchase mortgage loans, net (3)	153,159		—		153,159
Unsettled CO bonds, at par	616,400		—		616,400

⁽¹⁾  Maximum line of credit amount per member is $50,000.

⁽²⁾  Generally for periods up to six months.

⁽³⁾  Generally for periods up to 91 days.

Pledged Collateral.At June 30, 2017 and December 31, 2016, we had pledged cash collateral, at par, of $92,222 and $35,421, respectively, to counterparties and clearing agents. Additionally, at June 30, 2017, variation margin for daily settled contracts totaled $19,748. At June 30, 2017 and December 31, 2016, we had not pledged any securities as collateral.

Legal Proceedings. We are subject to legal proceedings arising in the normal course of business. We record an accrual for a loss contingency when it is probable that a loss for which we could be liable has been incurred and the amount can be reasonably estimated. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these proceedings could have a material effect on our financial condition, results of operations or cash flows.

In 2010, we filed a complaint asserting claims against several entities for negligent misrepresentation and violations of state and federal securities law occurring in connection with the sale of private-label RMBS to us. In 2013, 2014 and 2015, we executed confidential settlement agreements with certain defendants in this litigation, pursuant to which we have dismissed all pending claims against, and provided legal releases to, certain entities with respect to all applicable securities at issue in the litigation, in consideration of our receipt of cash payments from or on behalf of those defendants. We had previously dismissed the complaint as to the other named defendants. As a result, all proceedings in the RMBS litigation we filed have been concluded. Cash settlement payments, net of legal fees and litigation expenses, totaled $178 for both the three and six months ended June 30, 2017, compared to $60 for the both the three and six months ended June 30, 2016, and were recorded in other income.

Additional discussion of other commitments and contingencies is provided inNote 6 - Advances; Note 7 - Mortgage Loans Held for Portfolio; Note 9 - Derivatives and Hedging Activities; Note 10 - Consolidated Obligations; Note 12 - Capital; and Note 15 - Estimated Fair Values.

XML

Transactions with Related Parties and Other Entities

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Transactions with Related Parties and Other Entities

Note 17 - Related Party and Other Transactions

Transactions with Related Parties. The following table presents the aggregate outstanding balances with directors' financial institutions and their balance as a percent of the total balance on our statement of condition.

	Capital Stock and MRCS				Advances
Date	Par value		% of Total		Par value		% of Total
June 30, 2017	$	40,227	2	%	$	573,208	2	%
December 31, 2016	50,810		3	%	627,105		2	%

The par values at June 30, 2017 reflect changes in the composition of directors' financial institutions effective January 1, 2017, due to changes in board membership resulting from the 2016 director election.

The following table presents transactions with directors' financial institutions, taking into account the beginning and ending dates of the directors' terms, merger activity and other changes in the composition of directors' financial institutions.

	Three Months Ended June 30,				Six Months Ended June 30,
Transactions with Directors' Financial Institutions	2017		2016		2017		2016
Net capital stock issuances (redemptions and repurchases)	$	2,364	$	629	$	3,574	$	629
Net advances (repayments)	77,100		112,390		64,851		163,961
Mortgage loans purchases	10,570		13,930		14,047		18,996

Transactions with Other FHLBanks. In December 2016, we agreed to sell a 90% participating interest in a $100 million MCC of certain newly acquired MPP loans to the FHLBank of Atlanta. Principal amounts settled in December 2016 totaled $72 million, and the remaining $18 million settled in January 2017.

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation, Policy

Basis of Presentation. The accompanying interim financial statements have been prepared in accordance with GAAP and SEC requirements for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements.

Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block]

Derivatives. We record derivative instruments, related cash collateral (including initial and variation margin received or pledged/posted) and associated accrued interest on a net basis, by clearing agent and/or by counterparty when the netting requirements have been met, as either derivative assets or derivative liabilities at their estimated fair values. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability.

We use two clearinghouses for all cleared derivative transactions, LCH and CME. Effective January 3, 2017, CME made certain amendments to its rulebook, including changing the legal characterization of variation margin payments to be daily settled contracts, rather than cash collateral. Variation margin payments related to LCH contracts continue to be characterized as cash collateral. Initial margin continues to be considered by both clearinghouses as cash collateral.

Reclassifications, Policy

Reclassifications. We have reclassified certain amounts from the prior period to conform to the current period presentation. These reclassifications had no effect on net income, total comprehensive income, total capital, or net cash flows.

Use of Estimates, Policy

Use of Estimates.When preparing financial statements in accordance with GAAP, we are required to make subjective assumptions and estimates that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of income and expense. The most significant estimates include derivatives and hedging activities, fair value estimates, the provision for credit losses, and OTTI. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

XML

Available-for-Sale Securities (Tables)

6 Months Ended

Jun. 30, 2017

Available-for-sale Securities [Line Items]

Available-for-Sale (AFS) Securities by Major Security Type

The following table presents ourAFS securities by type of security.

						Gross		Gross
	Amortized		Non-Credit			Unrealized		Unrealized			Estimated
June 30, 2017	Cost (1)		OTTI			Gains		Losses			Fair Value
GSE and TVA debentures	$	4,681,231	$	—		$	46,946	$	(128	)	$	4,728,049
GSE MBS	2,069,238		—			30,337		(77		)	2,099,498
Private-label RMBS	215,586		(106		)	28,783		—			244,263
Total AFS securities	$	6,966,055	$	(106	)	$	106,066	$	(205	)	$	7,071,810
December 31, 2016
GSE and TVA debentures	$	4,693,211	$	—		$	25,624	$	(4,201	)	$	4,714,634
GSE MBS	1,058,037		—			18,279		(234		)	1,076,082
Private-label RMBS	242,181		(263		)	27,201		—			269,119
Total AFS securities	$	5,993,429	$	(263	)	$	71,104	$	(4,435	)	$	6,059,835

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses) and fair-value hedge accounting adjustments.

Available-for-sale Securities

Available-for-sale Securities [Line Items]

AFS Securities in a Continuous Unrealized Loss Position

The following table presents impaired AFS securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	40,168	$	(128	)	$	—	$	—		$	40,168	$	(128	)
GSE MBS	49,795		(77		)	—		—			49,795		(77		)
Private-label RMBS	—		—			2,649		(106		)	2,649		(106		)
Total impaired AFS securities	$	89,963	$	(205	)	$	2,649	$	(106	)	$	92,612	$	(311	)
December 31, 2016
GSE and TVA debentures	$	525,722	$	(3,604	)	$	176,104	$	(597	)	$	701,826	$	(4,201	)
GSE MBS	—		—			78,704		(234		)	78,704		(234		)
Private-label RMBS	—		—			3,002		(263		)	3,002		(263		)
Total impaired AFS securities	$	525,722	$	(3,604	)	$	257,810	$	(1,094	)	$	783,532	$	(4,698	)

AFS Securities by Contractual Maturity

The amortized cost and estimated fair value of non-MBS AFS securities are presented below by contractual maturity. MBS are not presented by contractual maturity because their actual maturities will likely differ from their contractual maturities as borrowers have the right to prepay their obligations with or without prepayment fees.

	June 30, 2017				December 31, 2016
	Amortized		Estimated		Amortized		Estimated
Year of Contractual Maturity	Cost		Fair Value		Cost		Fair Value
Due in 1 year or less	$	338,025	$	338,371	$	972,508	$	974,215
Due after 1 year through 5 years	2,251,296		2,273,386		1,841,488		1,855,517
Due after 5 years through 10 years	1,839,988		1,863,092		1,734,156		1,740,029
Due after 10 years	251,922		253,200		145,059		144,873
Total non-MBS	4,681,231		4,728,049		4,693,211		4,714,634
Total MBS	2,284,824		2,343,761		1,300,218		1,345,201
Total AFS securities	$	6,966,055	$	7,071,810	$	5,993,429	$	6,059,835

XML

Held-to-Maturity Securities (Tables)

6 Months Ended

Jun. 30, 2017

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

HTM Securities by Major Security Type

The following table presents our HTM securities by type of security.

								Gross		Gross
								Unrecognized		Unrecognized
	Amortized		Non-Credit			Carrying		Holding		Holding			Estimated
June 30, 2017	Cost (1)		OTTI			Value		Gains		Losses			Fair Value
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,848,319	$	—		$	2,848,319	$	7,496	$	(6,294	)	$	2,849,521
GSE MBS	2,731,973		—			2,731,973		45,066		(3,783		)	2,773,256
Private-label RMBS	44,676		—			44,676		218		(358		)	44,536
Private-label ABS	8,277		(53		)	8,224		32		(533		)	7,723
Total HTM securities	$	5,633,245	$	(53	)	$	5,633,192	$	52,812	$	(10,968	)	$	5,675,036
December 31, 2016
MBS and ABS:
Other U.S. obligations -guaranteed MBS	$	2,678,437	$	—		$	2,678,437	$	5,412	$	(12,720	)	$	2,671,129
GSE MBS	3,082,343		—			3,082,343		46,480		(8,841		)	3,119,982
Private-label RMBS	49,748		—			49,748		61		(533		)	49,276
Private-label ABS	9,148		(103		)	9,045		40		(780		)	8,305
Total HTM securities	$	5,819,676	$	(103	)	$	5,819,573	$	51,993	$	(22,874	)	$	5,848,692

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses).

HTM Securities [Member]

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

HTM Securities in a Continuous Unrealized Loss Position

The following table presents impaired HTM securities (i.e., in an unrealized loss position), aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months					12 months or more					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2017	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses (1)
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	467,766	$	(2,648	)	$	1,031,269	$	(3,646	)	$	1,499,035	$	(6,294	)
GSE MBS	569,000		(3,488		)	142,130		(295		)	711,130		(3,783		)
Private-label RMBS	7,561		(3		)	18,143		(355		)	25,704		(358		)
Private-label ABS	—		—			7,724		(554		)	7,724		(554		)
Total impaired HTM securities	$	1,044,327	$	(6,139	)	$	1,199,266	$	(4,850	)	$	2,243,593	$	(10,989	)
December 31, 2016
MBS and ABS:
Other U.S. obligations - guaranteed MBS	$	367,474	$	(997	)	$	1,426,182	$	(11,723	)	$	1,793,656	$	(12,720	)
GSE MBS	1,281,827		(7,915		)	320,141		(926		)	1,601,968		(8,841		)
Private-label RMBS	18,166		(62		)	15,770		(471		)	33,936		(533		)
Private-label ABS	—		—			8,304		(843		)	8,304		(843		)
Total impaired HTM securities	$	1,667,467	$	(8,974	)	$	1,770,397	$	(13,963	)	$	3,437,864	$	(22,937	)

⁽¹⁾  For private-label ABS, the total of unrealized losses does not agree to total gross unrecognized holding losses at June 30, 2017 and December 31, 2016 of $533 and $780, respectively. Total unrealized losses include non-credit-related OTTI losses recorded in AOCI of $53 and $103, respectively, and gross unrecognized holding gains on previously OTTI securities of $32 and $40, respectively

XML

Other-Than-Temporary Impairment (Tables)

6 Months Ended

Jun. 30, 2017

Other than Temporary Impairment Losses, Investments [Abstract]

Schedule of Significant Inputs In Measuring Other Than Temporary Impairments Recognized in Earnings [Table Text Block]

The following table presents the significant modeling assumptions used to determine the amount of credit loss recognized in earnings during the three months ended June 30, 2017 on the two securities for which an OTTI was determined to have occurred, as well as the related current credit enhancement.

	Significant Modeling Assumptions for OTTI private-label RMBS for the three months ended June 30, 2017
Year of Securitization	Prepayment Rates		Default Rates		Loss Severities		Current Credit  Enhancement
Prime - 2006	9	%	13	%	33	%	0	%
Subprime - 1998(1)	7	%	41	%	40	%	0	%

⁽¹⁾  Modeling assumptions assume no payout from monoline bond insurers.

XML

Advances (Tables)

6 Months Ended

Jun. 30, 2017

Advances [Abstract]

Summary of Advances Redemption Terms

The following table presents advances outstanding by year of contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,779		3.38	$	—		—
Due in 1 year or less	16,238,103			1.24	12,598,864			0.91
Due after 1 year through 2 years	2,374,373			1.78	2,752,629			1.74
Due after 2 years through 3 years	2,791,702			1.74	1,920,962			2.10
Due after 3 years through 4 years	2,098,808			1.63	2,605,198			1.38
Due after 4 years through 5 years	2,084,100			1.69	2,009,395			1.47
Thereafter	6,699,872			1.46	6,244,912			1.20
Total advances, par value	32,288,737			1.42	28,131,960			1.22
Fair-value hedging adjustments	(51,704		)		(57,716		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	16,317				21,709
Total advances	$	32,253,350			$	28,095,953

The following table presents advances outstanding by the earlier of the year of contractual maturity or the next call date and next put date.

	Year of Contractual Maturity or Next Call Date				Year of Contractual Maturity or Next Put Date
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
Overdrawn demand and overnight deposit accounts	$	1,779	$	—	$	1,779	$	—
Due in 1 year or less	23,793,604		19,390,714		16,419,603		12,767,364
Due after 1 year through 2 years	1,967,873		2,502,629		2,374,373		2,757,629
Due after 2 years through 3 years	2,066,702		1,856,463		3,029,302		1,915,962
Due after 3 years through 4 years	1,326,508		1,548,998		2,565,308		2,605,198
Due after 4 years through 5 years	870,300		900,095		2,416,500		2,535,895
Thereafter	2,261,971		1,933,061		5,481,872		5,549,912
Total advances, par value	$	32,288,737	$	28,131,960	$	32,288,737	$	28,131,960

XML

Mortgage Loans Held for Portfolio (Tables)

6 Months Ended

Jun. 30, 2017

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans Held for Portfolio

The following tables present information on mortgage loans held for portfolio by term, type, and product.

Term	June 30, 2017			December 31, 2016
Fixed-rate long-term mortgages	$	8,499,668		$	8,086,412
Fixed-rate medium-term (1) mortgages	1,174,779			1,206,978
Total mortgage loans held for portfolio, UPB	9,674,447			9,293,390
Unamortized premiums	221,789			210,116
Unamortized discounts	(2,593		)	(2,383		)
Fair-value hedging adjustments	1,649			1,124
Allowance for loan losses	(850		)	(850		)
Total mortgage loans held for portfolio, net	$	9,894,442		$	9,501,397

⁽¹⁾  Defined as a term of 15 years or less at origination.

Type	June 30, 2017		December 31, 2016
Conventional	$	9,212,060	$	8,796,407
Government-guaranteed or -insured	462,387		496,983
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

Product	June 30, 2017		December 31, 2016
MPP	$	9,339,161	$	8,930,194
MPF Program	335,286		363,196
Total mortgage loans held for portfolio, UPB	$	9,674,447	$	9,293,390

XML

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2017

Allowance for Credit Losses [Abstract]

Changes in Lender Risk Account

The following table presents the activity in the LRA.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2017			2016			2017			2016
Liability, beginning of period	$	130,728		$	96,663		$	125,683		$	91,552
Additions	6,536			10,011			11,767			15,418
Claims paid	(146		)	(276		)	(248		)	(485		)
Distributions to PFIs	(277		)	(833		)	(361		)	(920		)
Liability, end of period	$	136,841		$	105,565		$	136,841		$	105,565

Impact of MPP Risk Sharing Structure on Allowance for Credit Losses

The following table presents the impact of credit enhancements on the allowance for MPP loan losses.

MPP Credit Waterfall	June 30, 2017			December 31, 2016
Estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	7,432		$	8,689
Portion of estimated incurred losses recoverable from PMI	(1,791		)	(1,981		)
Portion of estimated incurred losses recoverable from LRA (2)	(1,876		)	(2,418		)
Portion of estimated incurred losses recoverable from SMI	(3,065		)	(3,590		)
Allowance for unrecoverable PMI/SMI	50			50
Allowance for MPP loan losses	$	750		$	750

⁽¹⁾  Based on a loss emergence period of 24 months.

⁽²⁾  Amounts recoverable are limited to (i) the estimated losses remaining after borrower's equity and PMI and (ii) the remaining balance in each pool's portion of the LRA. The remainder of the LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

Recorded Investment in Delinquent Mortgage Loans

The tables below present the key credit quality indicators for our mortgage loans held for portfolio.

Delinquency Status as of June 30, 2017	Conventional			Government			Total
Past due:
30-59 days	$	36,986		$	11,767		$	48,753
60-89 days	8,966			2,326			11,292
90 days or more	22,679			1,463			24,142
Total past due	68,631			15,556			84,187
Total current	9,396,980			454,736			9,851,716
Total mortgage loans, recorded investment	$	9,465,611		$	470,292		$	9,935,903
Other Delinquency Statistics as of June 30, 2017
In process of foreclosure(1)	$	13,833		$	—		$	13,833
Serious delinquency rate (2)	0.24		%	0.31		%	0.24		%
Past due 90 days or more still accruing interest (3)	$	19,543		$	1,463		$	21,006
On non-accrual status	$	4,022		$	—		$	4,022

Delinquency Status as of December 31, 2016	Conventional			Government			Total
Past due:
30-59 days	$	46,118		$	17,183		$	63,301
60-89 days	11,044			3,548			14,592
90 days or more	29,098			2,350			31,448
Total past due	86,260			23,081			109,341
Total current	8,949,441			482,316			9,431,757
Total mortgage loans, recorded investment	$	9,035,701		$	505,397		$	9,541,098
Other Delinquency Statistics as of December 31, 2016
In process of foreclosure(1)	$	17,749		$	—		$	17,749
Serious delinquency rate (2)	0.32		%	0.46		%	0.33		%
Past due 90 days or more still accruing interest (3)	$	25,375		$	2,350		$	27,725
On non-accrual status	$	4,699		$	—		$	4,699

⁽¹⁾  Includes loans for which the decision of foreclosure or similar alternative, such as pursuit of deed-in-lieu of foreclosure, has been reported. Loans in process of foreclosure are included in past due categories depending on their delinquency status, but are not necessarily considered to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

⁽²⁾  Represents loans 90 days or more past due (including loans in process of foreclosure) expressed as a percentage of the total recorded investment in mortgage loans. The percentage excludes principal and interest amounts previously paid in full by the servicers on conventional loans that are pending resolution of potential loss claims. Our servicers repurchase seriously delinquent government loans, including FHA loans, when certain criteria are met.

⁽³⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the mortgagor's payment status, we do not consider these loans to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policiesin our 2016 Form 10-K.

Rollforward of Allowance for Credit Losses on Mortgage Loans

The tables below present a rollforward of our allowance for loan losses, the allowance for loan losses by impairment methodology, and the recorded investment in mortgage loans by impairment methodology.

	Three Months Ended June 30,						Six Months Ended June 30,
Rollforward of Allowance for Loan Losses	2017			2016			2017			2016
Balance, beginning of period	$	850		$	850		$	850		$	1,125
Charge-offs, net of recoveries	(130		)	242			(281		)	(58		)
Provision for (reversal of) loan losses	130			(242		)	281			(217		)
Balance, end of period	$	850		$	850		$	850		$	850

Allowance for Credit Losses and Recorded Investment by Impairment Methodology [Table Text Block]

Allowance for Loan Losses by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	730	$	750
Conventional loans individually evaluated for impairment (1)	120		100
Total allowance for loan losses	$	850	$	850
Recorded Investment by Impairment Methodology	June 30, 2017		December 31, 2016
Conventional loans collectively evaluated for impairment	$	9,450,390	$	9,020,194
Conventional loans individually evaluated for impairment (1)	15,221		15,507
Total recorded investment	$	9,465,611	$	9,035,701

⁽¹⁾  The recorded investment in our MPP conventional loans individually evaluated for impairment excludes principal previously paid in full by the servicers as of June 30, 2017 and December 31, 2016 of $3,273 and $2,814, respectively, that remains subject to potential claims by those servicers for any losses resulting from past or future liquidations of the underlying properties. However, the MPP allowance for loan losses as of June 30, 2017 and December 31, 2016 includes $73 and $70, respectively, for these potential claims.

Individually Evaluated Impaired Loan Statistics by Product Class Level

The first table presents the recorded investment, UPB and related allowance associated with these loans, while the next table presents the average recorded investment of these loans and related interest income recognized. Due to the minimal change in terms of modified loans (i.e., no principal forgiven), our pre-modification recorded investment in TDRs was not materially different than the post-modification recorded investment.

	June 30, 2017						December 31, 2016
Individually Evaluated Impaired Loans	Recorded Investment		UPB		Related Allowance for Loan Losses		Recorded Investment		UPB		Related Allowance for Loan Losses
MPP conventional loans without allowance for loan losses (1)	$	13,945	$	14,007	$	—	$	15,158	$	15,219	$	—
MPP conventional loans with allowance for loan losses	1,276		1,279		47		349		358		30
Total	$	15,221	$	15,286	$	47	$	15,507	$	15,577	$	30

⁽¹⁾  No allowance for loan losses was recorded on these impaired loans after consideration of the underlying loan-specific attribute data, estimated liquidation value of real estate collateral held, estimated costs associated with maintaining and disposing of the collateral, and credit enhancements.

Average Recorded Investment and Interest Income on Impaired Loans

	Three Months Ended				Three Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,537	$	161	$	16,474	$	175
MPP conventional loans with allowance for loan losses	1,279		19		1,268		17
Total	$	15,816	$	180	$	17,742	$	192

	Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016
Individually Evaluated Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
MPP conventional loans without allowance for loan losses	$	14,475	$	354	$	16,330	$	387
MPP conventional loans with allowance for loan losses	1,283		25		1,272		28
Total	$	15,758	$	379	$	17,602	$	415

XML

Derivative and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table presents the notional amount and estimated fair value of derivative assets and liabilities.

	Notional		Estimated Fair Value			Estimated Fair Value
	Amount of		of Derivative			of Derivative
June 30, 2017	Derivatives		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	26,869,481	$	215,237		$	91,410
Total derivatives designated as hedging instruments	26,869,481		215,237			91,410
Derivatives not designated as hedging instruments:
Interest-rate swaps	131,500		255			17
Swaptions	200,000		—			—
Interest-rate caps/floors	323,500		189			—
Interest-rate forwards	154,000		392			—
MDCs	153,159		20			491
Total derivatives not designated as hedging instruments	962,159		856			508
Total derivatives before adjustments	$	27,831,640	216,093			91,918
Netting adjustments (1)			(89,505		)	(89,505		)
Cash collateral and variation margin for daily settled contracts (1)			28,713			(19		)
Total derivatives, net			$	155,301		$	2,394
December 31, 2016
Derivatives designated as hedging instruments:
Interest-rate swaps	$	23,998,498	$	230,705		$	102,201
Total derivatives designated as hedging instruments	23,998,498		230,705			102,201
Derivatives not designated as hedging instruments:
Interest-rate swaps	901,344		1,430			31
Swaptions	350,000		2			50
Interest-rate caps/floors	364,500		322			2
Interest-rate forwards	99,100		339			352
MDCs	99,002		303			471
Total derivatives not designated as hedging instruments	1,813,946		2,396			906
Total derivatives before adjustments	$	25,812,444	233,101			103,107
Netting adjustments (1)			(133,089		)	(133,089		)
Cash collateral (1)			34,836			55,207
Total derivatives, net			$	134,848		$	25,225

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed with the same clearing agent and/or counterparty (including fair value adjustments on derivatives for which variation margin payments are characterized as daily settled contracts). Cash collateral pledged to counterparties at June 30, 2017 and December 31, 2016 totaled $92,236 and $35,422, respectively. Cash collateral received from counterparties at June 30, 2017 and December 31, 2016 totaled $43,756 and $55,793, respectively. Variation margin for daily settled contracts totaled $19,748 at June 30, 2017. See Note 1 - Summary of Significant Accounting Policies for more information.

Offsetting of Derivative Assets and Derivative Liabilities

The following table presents separately the estimated fair value of derivative instruments meeting and not meeting netting requirements, including the effect of the related collateral received from or pledged to counterparties and variation margin for daily settled contracts.

	June 30, 2017						December 31, 2016
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	81,432		$	36,230		$	86,606		$	45,449
Cleared	134,249			55,197			145,853			56,835
Total gross recognized amount	215,681			91,427			232,459			102,284
Gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	(69,910		)	(34,327		)	(76,255		)	(21,047		)
Cleared (1)	9,118			(55,197		)	(21,998		)	(56,835		)
Total gross amounts of netting adjustments, cash collateral and variation margin for daily settled contracts	(60,792		)	(89,524		)	(98,253		)	(77,882		)
Net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts
Uncleared	11,522			1,903			10,351			24,402
Cleared	143,367			—			123,855			—
Total net amounts after netting adjustments, cash collateral and variation margin for daily settled contracts	154,889			1,903			134,206			24,402
Derivative instruments not meeting netting requirements (2)	412			491			642			823
Total derivatives, at estimated fair value	$	155,301		$	2,394		$	134,848		$	25,225

⁽¹⁾  Variation margin for daily settled contracts totaled $19,748 at June 30, 2017.

⁽²⁾  Includes MDCs and certain interest-rate forwards.

Components of Net Gains (Losses) on Derivatives and Hedging Activities

The following table presents the components of net gains (losses) on derivatives and hedging activities reported in other income (loss).

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2017			2016			2017			2016
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	(3,859	)	$	(2,134	)	$	(7,833	)	$	(2,577	)
Total net gain (loss) related to fair-value hedge ineffectiveness	(3,859		)	(2,134		)	(7,833		)	(2,577		)
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(66		)	(198		)	(88		)	(1,413		)
Swaptions	(38		)	—			(177		)	—
Interest-rate caps/floors	(177		)	(16		)	(131		)	(47		)
Interest-rate forwards	(773		)	(2,863		)	(941		)	(5,337		)
Net interest settlements	(144		)	(12		)	(291		)	(124		)
MDCs	397			2,430			476			4,608
Total net gain (loss) on derivatives not designated as hedging instruments	(801		)	(659		)	(1,152		)	(2,313		)
Other (1)	(50		)	—			(100		)	—
Net gains (losses) on derivatives and hedging activities	$	(4,710	)	$	(2,793	)	$	(9,085	)	$	(4,890	)

⁽¹⁾  Consists of price alignment amounts on derivatives for which variation margin payments are characterized as daily settled con

Effect of Fair Value Hedge-Related Derivative Instruments

The following table presents, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair-value hedging relationships and the effect of those derivatives on net interest income.

	Gain (Loss)			Gain (Loss)			Net Fair-			Effect on
	on			on Hedged			Value Hedge			Net Interest
Three Months Ended June 30, 2017	Derivative			Item			Ineffectiveness			Income (1)
Advances	$	(24,561	)	$	23,769		$	(792	)	$	(8,912	)
AFS securities	(42,407		)	40,147			(2,260		)	(13,928		)
CO bonds	10,380			(11,187		)	(807		)	4,377
Total	$	(56,588	)	$	52,729		$	(3,859	)	$	(18,463	)
Three Months Ended June 30, 2016
Advances	$	(26,669	)	$	25,772		$	(897	)	$	(25,941	)
AFS securities	(51,639		)	47,568			(4,071		)	(25,700		)
CO bonds	8,451			(5,617		)	2,834			4,640
Total	$	(69,857	)	$	67,723		$	(2,134	)	$	(47,001	)
Six Months Ended June 30, 2017
Advances	$	(8,825	)	$	9,241		$	416		$	(20,391	)
AFS securities	(25,332		)	20,064			(5,268		)	(30,793		)
CO Bonds	4,828			(7,809		)	(2,981		)	7,765
Total	$	(29,329	)	$	21,496		$	(7,833	)	$	(43,419	)
Six Months Ended June 30, 2016
Advances	$	(119,715	)	$	119,978		$	263		$	(53,904	)
AFS securities	(111,255		)	107,262			(3,993		)	(52,091		)
CO Bonds	20,796			(19,643		)	1,153			10,267
Total	$	(210,174	)	$	207,597		$	(2,577	)	$	(95,728	)

⁽¹⁾  Includes the effect of derivatives in fair-value hedging relationships on net interest income that is recorded in the interest income/expense line item of the respective hedged items. Excludes the interest income/expense of the respective hedged items, which fully offset the interest income/expense of the derivatives, except to the extent of any hedge ineffectiveness. Net interest settlements on derivatives that are not in fair-value hedging relationships are reported in other income (loss). These amounts do not include the effect of amortization/accretion related to fair value hedging activities.

XML

Consolidated Obligations (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Discount Notes

The following table presents our discount notes outstanding, all of which are due within one year of issuance.

Discount Notes	June 30, 2017			December 31, 2016
Book value	$	21,036,075		$	16,801,763
Par value	21,072,353			16,819,659
Weighted average effective interest rate	0.96		%	0.51		%

CO Bonds by Year of Contractual Maturity

The following table presents our CO bonds outstanding by contractual maturity.

	June 30, 2017				December 31, 2016
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	14,708,530		1.12	$	16,234,460		0.85
Due after 1 year through 2 years	8,357,605			1.31	6,122,190			0.96
Due after 2 years through 3 years	3,300,980			2.08	2,718,945			1.65
Due after 3 years through 4 years	1,458,370			2.51	1,684,530			3.17
Due after 4 years through 5 years	993,820			2.06	1,040,000			2.17
Thereafter	6,495,000			2.87	5,708,000			2.92
Total CO bonds, par value	35,314,305			1.66	33,508,125			1.44
Unamortized premiums	28,092				27,462
Unamortized discounts	(12,116		)		(12,059		)
Unamortized concessions	(13,989		)		(13,705		)
Fair-value hedging adjustments	(34,656		)		(42,544		)
Total CO bonds	$	35,281,636			$	33,467,279

CO Bonds by Redemption Feature

The following tables present our participation in CO bonds outstanding by redemption feature and the earlier of the year of contractual maturity or next call date.

Redemption Feature	June 30, 2017		December 31, 2016
Non-callable / non-putable	$	26,086,305	$	25,627,125
Callable	9,228,000		7,881,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

CO Bonds by Contractual Maturity or Next Call Date

Year of Contractual Maturity or Next Call Date	June 30, 2017		December 31, 2016
Due in 1 year or less	$	23,234,530	$	23,825,460
Due after 1 year through 2 years	7,629,605		4,675,190
Due after 2 years through 3 years	2,212,980		2,240,945
Due after 3 years through 4 years	827,370		1,257,530
Due after 4 years through 5 years	381,820		474,000
Thereafter	1,028,000		1,035,000
Total CO bonds, par value	$	35,314,305	$	33,508,125

XML

Affordable Housing Program (Tables)

6 Months Ended

Jun. 30, 2017

Affordable Housing Program (AHP) [Abstract]

Schedule of Activity in Affordable Housing Program Obligation

The following table summarizes the activity in our AHP funding obligation.

	Three Months Ended June 30,						Six Months Ended June 30,
AHP Activity	2017			2016			2017			2016
Liability at beginning of period	$	27,203		$	28,235		$	26,598		$	31,103
Assessment (expense)	4,381			2,717			8,090			5,817
Subsidy usage, net (1)	(6,955		)	(5,029		)	(10,059		)	(10,997		)
Liability at end of period	$	24,629		$	25,923		$	24,629		$	25,923

⁽¹⁾  Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

XML

Capital (Tables)

6 Months Ended

Jun. 30, 2017

Capital [Abstract]

MRCS Activity

The following table presents the activity related to MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2017			2016			2017			2016
Liability at beginning of period	$	166,930		$	192,548		$	170,043		$	14,063
Reclassification from capital stock	—			—			—			178,898
Redemptions/repurchases	(95		)	(14,945		)	(3,208		)	(16,396		)
Accrued distributions	—			—			—			1,038
Liability at end of period	$	166,835		$	177,603		$	166,835		$	177,603

Mandatorily Redeemable Capital Stock [Table Text Block]

MRCS Contractual Year of Redemption	June 30, 2017		December 31, 2016
Year 1 (1)	$	10,476	$	8,630
Year 2	—		5,054
Year 3	13		13
Year 4	73		—
Year 5	4,085		4,158
Thereafter (2)	152,188		152,188
Total MRCS	$	166,835	$	170,043

⁽¹⁾  Balances at June 30, 2017 and December 31, 2016 include $5,422 and $5,609, respectively, of Class B stock that had reached the end of the five-year redemption period but will not be redeemed until the associated credit products and other obligations are no longer outstanding.

⁽²⁾  Represents the five-year redemption period of outstanding Class B stock held by certain captive insurance companies which begins immediately upon their termination of memberships no later than February 19, 2021, in accordance with the Final Membership Rule.

Schedule of Distributions on Mandatorily Redeemable Capital Stock

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2017		2016		2017		2016
Recorded as interest expense	$	1,756	$	1,871	$	3,509	$	2,868
Recorded as distributions from retained earnings	—		—		—		1,038
Total	$	1,756	$	1,871	$	3,509	$	3,906

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

We are subject to capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 15 - Capital in our 2016 Form 10-K. As presented in the following table, we were in compliance with the Finance Agency's capital requirements at June 30, 2017 and December 31, 2016. For regulatory purposes, AOCI is not considered capital; MRCS, however, is considered capital.

	June 30, 2017						December 31, 2016
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	851,196		$	2,793,846		$	760,946		$	2,549,871
Regulatory permanent capital-to-asset ratio	4.00		%	4.60		%	4.00		%	4.73		%
Regulatory permanent capital	$	2,428,479		$	2,793,846		$	2,156,296		$	2,549,871
Leverage ratio	5.00		%	6.90		%	5.00		%	7.10		%
Leverage capital	$	3,035,599		$	4,190,769		$	2,695,370		$	3,824,806

XML

Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2017

AOCI Attributable to Parent [Abstract]

Schedule of Changes in the Components of AOCI

The following table presents a summary of the changes in the components of AOCI for the three and six months ended June 30, 2016 and 2017.

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, March 31, 2016	$	(116	)	$	24,462		$	(124	)	$	(7,074	)	$	17,148
OCI before reclassifications:
Net change in unrealized gains (losses)	(693		)	(506		)	—			—			(1,199		)
Net change in fair value	—			28			—			—			28
Accretion of non-credit losses	—			—			8			—			8
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(858		)	(858		)
Total other comprehensive income (loss)	(693		)	(385		)	8			(858		)	(1,928		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, March 31, 2017	$	62,224		$	27,529		$	(97	)	$	(9,607	)	$	80,049
OCI before reclassifications:
Net change in unrealized gains (losses)	14,854			990			—			—			15,844
Net change in fair value	—			85			—			—			85
Accretion of non-credit losses	—			—			6			—			6
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			73			38			—			111
Pension benefits, net	—			—			—			325			325
Total other comprehensive income (loss)	14,854			1,148			44			325			16,371
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

AOCI Rollforward	Unrealized Gains (Losses) on AFS Securities			Non-Credit OTTI on AFS Securities			Non-Credit OTTI on HTM Securities			Pension Benefits			Total AOCI
Balance, December 31, 2015	$	97		$	30,229		$	(132	)	$	(7,316	)	$	22,878
OCI before reclassifications:
Net change in unrealized gains (losses)	(906		)	(6,297		)	—			—			(7,203		)
Net change in fair value	—			52			—			—			52
Accretion of non-credit losses	—			—			16			—			16
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			93			—			—			93
Pension benefits, net	—			—			—			(616		)	(616		)
Total other comprehensive income (loss)	(906		)	(6,152		)	16			(616		)	(7,658		)
Balance, June 30, 2016	$	(809	)	$	24,077		$	(116	)	$	(7,932	)	$	15,220
Balance, December 31, 2016	$	39,468		$	26,938		$	(103	)	$	(9,935	)	$	56,368
OCI before reclassifications:
Net change in unrealized gains (losses)	37,610			1,582			—			—			39,192
Net change in fair value	—			2			—			—			2
Accretion of non-credit losses	—			—			12			—			12
Reclassifications from OCI to net income:
Non-credit portion of OTTI losses	—			155			38			—			193
Pension benefits, net	—			—			—			653			653
Total other comprehensive income (loss)	37,610			1,739			50			653			40,052
Balance, June 30, 2017	$	77,078		$	28,677		$	(53	)	$	(9,282	)	$	96,420

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Financial Performance by Operating Segment

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2017									Three Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	47,255		$	17,810		$	65,065		$	32,418		$	13,181		$	45,599
Provision for (reversal of) credit losses	—			130			130			—			(242		)	(242		)
Other income (loss)	(3,329		)	(504		)	(3,833		)	(1,518		)	(365		)	(1,883		)
Other expenses	16,031			3,013			19,044			15,816			2,837			18,653
Income before assessments	27,895			14,163			42,058			15,084			10,221			25,305
Affordable Housing Program assessments	2,965			1,416			4,381			1,695			1,022			2,717
Net income	$	24,930		$	12,747		$	37,677		$	13,389		$	9,199		$	22,588
	Six Months Ended June 30, 2017									Six Months Ended June 30, 2016
	Traditional			Mortgage Loans			Total			Traditional			Mortgage Loans			Total
Net interest income	$	88,791		$	35,277		$	124,068		$	65,490		$	29,480		$	94,970
Provision for (reversal of) credit losses	—			281			281			—			(217		)	(217		)
Other income (loss)	(7,003		)	(495		)	(7,498		)	(2,460		)	(625		)	(3,085		)
Other expenses	32,826			6,071			38,897			31,226			5,574			36,800
Income before assessments	48,962			28,430			77,392			31,804			23,498			55,302
Affordable Housing Program assessments	5,247			2,843			8,090			3,467			2,350			5,817
Net income	$	43,715		$	25,587		$	69,302		$	28,337		$	21,148		$	49,485

Schedule of Segment Assets by Segment

The following table presents asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2017	$	50,817,534	$	9,894,442	$	60,711,976
December 31, 2016	44,406,003		9,501,397		53,907,400

XML

Estimated Fair Values (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following tables present the carrying value and estimated fair value of each of our financial instruments. The total of the estimated fair values does not represent an estimate of our overall market value as a going concern, which would take into account, among other considerations, future business opportunities and the net profitability of assets and liabilities.

	June 30, 2017
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	92,082	$	92,082	$	92,082	$	—	$	—	$	—
Interest-bearing deposits	334,432		334,432		334,192		240		—		—
Securities purchased under agreements to resell	2,527,000		2,527,005		—		2,527,005		—		—
Federal funds sold	2,575,000		2,575,000		—		2,575,000		—		—
AFS securities	7,071,810		7,071,810		—		6,827,547		244,263		—
HTM securities	5,633,192		5,675,036		—		5,622,777		52,259		—
Advances	32,253,350		32,212,637		—		32,212,637		—		—
Mortgage loans held for portfolio, net	9,894,442		9,996,869		—		9,982,042		14,827		—
Accrued interest receivable	99,055		99,055		—		99,055		—		—
Derivative assets, net	155,301		155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		20,233		—		—		—
Liabilities:
Deposits	674,476		674,476		—		674,476		—		—
Consolidated Obligations:
Discount notes	21,036,075		21,072,353		—		21,072,353		—		—
Bonds	35,281,636		35,464,780		—		35,464,780		—		—
Accrued interest payable	117,220		117,220		—		117,220		—		—
Derivative liabilities, net	2,394		2,394		—		91,918		—		(89,524		)
MRCS	166,835		166,835		166,835		—		—		—

	December 31, 2016
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustment (1)
Assets:
Cash and due from banks	$	546,612	$	546,612	$	546,612	$	—	$	—	$	—
Interest-bearing deposits	150,225		150,225		150,072		153		—		—
Securities purchased under agreements to resell	1,781,309		1,781,309		—		1,781,309		—		—
Federal funds sold	1,650,000		1,650,000		—		1,650,000		—		—
AFS securities	6,059,835		6,059,835		—		5,790,716		269,119		—
HTM securities	5,819,573		5,848,692		—		5,791,111		57,581		—
Advances	28,095,953		28,059,477		—		28,059,477		—		—
Mortgage loans held for portfolio, net	9,501,397		9,587,394		—		9,567,140		20,254		—
Accrued interest receivable	93,716		93,716		—		93,716		—		—
Derivative assets, net	134,848		134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		18,117		—		—		—
Liabilities:
Deposits	524,073		524,073		—		524,073		—		—
Consolidated Obligations:
Discount notes	16,801,763		16,819,659		—		16,819,659		—		—
Bonds	33,467,279		33,614,346		—		33,614,346		—		—
Accrued interest payable	98,411		98,411		—		98,411		—		—
Derivative liabilities, net	25,225		25,225		—		103,107		—		(77,882		)
MRCS	170,043		170,043		170,043		—		—		—

⁽¹⁾  Represents the application of the netting requirements that allow the settlement of (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

Schedule of Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The following tables present, by level within the fair value hierarchy, the estimated fair value of our financial assets and liabilities that are recorded at estimated fair value on a recurring or non-recurring basis on our statement of condition.

									Netting
June 30, 2017	Total		Level 1		Level 2		Level 3		Adjustment(1)
AFS securities:
GSE and TVA debentures	$	4,728,049	$	—	$	4,728,049	$	—	$	—
GSE MBS	2,099,498		—		2,099,498		—		—
Private-label RMBS	244,263		—		—		244,263		—
Total AFS securities	7,071,810		—		6,827,547		244,263		—
Derivative assets:
Interest-rate related	154,889		—		215,681		—		(60,792		)
Interest-rate forwards	392		—		392		—		—
MDCs	20		—		20		—		—
Total derivative assets, net	155,301		—		216,093		—		(60,792		)
Grantor trust assets (included in other assets)	20,233		20,233		—		—		—
Total assets at recurring estimated fair value	$	7,247,344	$	20,233	$	7,043,640	$	244,263	$	(60,792	)
Derivative liabilities:
Interest-rate related	$	1,903	$	—	$	91,427	$	—	$	(89,524	)
Interest-rate forwards	—		—		—		—		—
MDCs	491		—		491		—		—
Total derivative liabilities, net	2,394		—		91,918		—		(89,524		)
Total liabilities at recurring estimated fair value	$	2,394	$	—	$	91,918	$	—	$	(89,524	)
Mortgage loans held for portfolio (2)	$	4,107	$	—	$	—	$	4,107	$	—
Total assets at non-recurring estimated fair value	$	4,107	$	—	$	—	$	4,107	$	—
December 31, 2016
AFS securities:
GSE and TVA debentures	$	4,714,634	$	—	$	4,714,634	$	—	$	—
GSE MBS	1,076,082		—		1,076,082		—		—
Private-label RMBS	269,119		—		—		269,119		—
Total AFS securities	6,059,835		—		5,790,716		269,119		—
Derivative assets:
Interest-rate related	134,206		—		232,459		—		(98,253		)
Interest-rate forwards	339		—		339		—		—
MDCs	303		—		303		—		—
Total derivative assets, net	134,848		—		233,101		—		(98,253		)
Grantor trust assets (included in other assets)	18,117		18,117		—		—		—
Total assets at recurring estimated fair value	$	6,212,800	$	18,117	$	6,023,817	$	269,119	$	(98,253	)
Derivative liabilities:
Interest-rate related	$	24,402	$	—	$	102,284	$	—	$	(77,882	)
Interest-rate forwards	352		—		352		—		—
MDCs	471		—		471		—		—
Total derivative liabilities, net	25,225		—		103,107		—		(77,882		)
Total liabilities at recurring estimated fair value	$	25,225	$	—	$	103,107	$	—	$	(77,882	)
Mortgage loans held for portfolio (3)	$	3,492	$	—	$	—	$	3,492	$	—
Total assets at non-recurring estimated fair value	$	3,492	$	—	$	—	$	3,492	$	—

⁽¹⁾  Represents the application of the netting requirements that allow us to settle (i) positive and negative positions and (ii) cash collateral and related accrued interest held or placed, with the same clearing agent and/or counterparty (includes fair value adjustments on derivatives of $19,748 at June 30, 2017 for which variation margin payments are characterized as daily settled contracts).

⁽²⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2017.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2016.

Reconciliation of AFS Private-label RMBS Measured at Estimated Fair Value on a Recurring Basis using Level 3 Significant Inputs

The table below presents a rollforward of our AFS private-label RMBS measured at estimated fair value on a recurring basis using level 3 significant inputs. The estimated fair values were determined using a pricing source, such as a dealer quote or comparable security price, for which the significant unobservable inputs used to determine the price were not readily available.

	Three Months Ended June 30,						Six Months Ended June 30,
Level 3 Rollforward - AFS private-label RMBS	2017			2016			2017			2016
Balance, beginning of period	$	257,671		$	300,758		$	269,119		$	319,186
Total realized and unrealized gains (losses):
Accretion of credit losses in interest income	1,785			2,164			3,656			5,300
Net losses on changes in fair value in other income (loss)	(73		)	(93		)	(155		)	(93		)
Net change in fair value not in excess of cumulative non-credit losses in OCI	85			28			2			52
Unrealized gains (losses) in OCI	990			(506		)	1,582			(6,297		)
Reclassification of non-credit portion in OCI to other income (loss)	73			93			155			93
Purchases, issuances, sales and settlements:
Settlements	(16,268		)	(14,301		)	(30,096		)	(30,098		)
Balance, end of period	$	244,263		$	288,143		$	244,263		$	288,143
Net gains (losses) included in earnings attributable to changes in fair value relating to assets still held at end of period	$	1,712		$	2,071		$	3,501		$	4,347

XML

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Off-Balance Sheet Commitments

The following table presents our off-balance-sheet commitments at their notional amounts.

	June 30, 2017
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	121,273	$	175,095	$	296,368
Unused lines of credit (1)	1,082,709		—		1,082,709
Commitments to fund additional advances (2)	55,000		—		55,000
Commitments to fund or purchase mortgage loans, net (3)	153,159		—		153,159
Unsettled CO bonds, at par	616,400		—		616,400

⁽¹⁾  Maximum line of credit amount per member is $50,000.

⁽²⁾  Generally for periods up to six months.

⁽³⁾  Generally for periods up to 91 days.

XML

Transactions with Related Parties and Other Entities (Tables) - Directors' Financial Institutions

6 Months Ended

Jun. 30, 2017

Related Party Transaction [Line Items]

Outstanding Balances and Balance as a Percent of Total Balance with Respect to Transactions with Related Parties

The following table presents the aggregate outstanding balances with directors' financial institutions and their balance as a percent of the total balance on our statement of condition.

	Capital Stock and MRCS				Advances
Date	Par value		% of Total		Par value		% of Total
June 30, 2017	$	40,227	2	%	$	573,208	2	%
December 31, 2016	50,810		3	%	627,105		2	%

Directors' Financial institutions Activity [Table Text Block]

The following table presents transactions with directors' financial institutions, taking into account the beginning and ending dates of the directors' terms, merger activity and other changes in the composition of directors' financial institutions.

	Three Months Ended June 30,				Six Months Ended June 30,
Transactions with Directors' Financial Institutions	2017		2016		2017		2016
Net capital stock issuances (redemptions and repurchases)	$	2,364	$	629	$	3,574	$	629
Net advances (repayments)	77,100		112,390		64,851		163,961
Mortgage loans purchases	10,570		13,930		14,047		18,996

XML

Available-for-Sale Securities (Major Security Types) (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	[1]	$ 6,966,055	$ 5,993,429
Non-Credit OTTI		(106)	(263)
Gross Unrealized Gains		106,066	71,104
Gross Unrealized Losses		(205)	(4,435)
Estimated Fair Value		7,071,810	6,059,835
GSE and TVA debentures
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	[1]	4,681,231	4,693,211
Non-Credit OTTI		0	0
Gross Unrealized Gains		46,946	25,624
Gross Unrealized Losses		(128)	(4,201)
Estimated Fair Value		4,728,049	4,714,634
GSE MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	[1]	2,069,238	1,058,037
Non-Credit OTTI		0	0
Gross Unrealized Gains		30,337	18,279
Gross Unrealized Losses		(77)	(234)
Estimated Fair Value		2,099,498	1,076,082
Residential Mortgage Backed Securities [Member] | Private-label RMBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	[1]	215,586	242,181
Non-Credit OTTI		(106)	(263)
Gross Unrealized Gains		28,783	27,201
Gross Unrealized Losses		0	0
Estimated Fair Value		$ 244,263	$ 269,119

[1] Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses) and fair-value hedge accounting adjustments.

XML

Available-for-Sale Securities (Unrealized Loss Positions) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available-for-sale Securities [Line Items]
Less than 12 Months, Estimated Fair Value	$ 89,963	$ 525,722
Less than 12 Months, Unrealized Losses	(205)	(3,604)
12 Months or More, Estimated Fair Value	2,649	257,810
12 Months or More, Unrealized Losses	(106)	(1,094)
Total Estimated Fair Value	92,612	783,532
Total Unrealized Losses	(311)	(4,698)
GSE and TVA debentures
Available-for-sale Securities [Line Items]
Less than 12 Months, Estimated Fair Value	40,168	525,722
Less than 12 Months, Unrealized Losses	(128)	(3,604)
12 Months or More, Estimated Fair Value	0	176,104
12 Months or More, Unrealized Losses	0	(597)
Total Estimated Fair Value	40,168	701,826
Total Unrealized Losses	(128)	(4,201)
GSE MBS
Available-for-sale Securities [Line Items]
Less than 12 Months, Estimated Fair Value	49,795	0
Less than 12 Months, Unrealized Losses	(77)	0
12 Months or More, Estimated Fair Value	0	78,704
12 Months or More, Unrealized Losses	0	(234)
Total Estimated Fair Value	49,795	78,704
Total Unrealized Losses	(77)	(234)
Residential Mortgage Backed Securities [Member] | Private-label RMBS
Available-for-sale Securities [Line Items]
Less than 12 Months, Estimated Fair Value	0	0
Less than 12 Months, Unrealized Losses	0	0
12 Months or More, Estimated Fair Value	2,649	3,002
12 Months or More, Unrealized Losses	(106)	(263)
Total Estimated Fair Value	2,649	3,002
Total Unrealized Losses	$ (106)	$ (263)

XML

Available-for-Sale Securities (Year of Contractual Maturity) (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Available-for-sale Securities [Line Items]
Amortized Cost	[1]	$ 6,966,055	$ 5,993,429
Estimated Fair Value		7,071,810	6,059,835
Non-MBS
Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost		338,025	972,508
Due after one year through five years, Amortized Cost		2,251,296	1,841,488
Due after five years through ten years, Amortized Cost		1,839,988	1,734,156
Due after ten years, Amortized Cost		251,922	145,059
Amortized Cost		4,681,231	4,693,211
Due in one year or less, Estimated Fair Value		338,371	974,215
Due after one year through five years, Estimated Fair Value		2,273,386	1,855,517
Due after five years through ten years, Estimated Fair Value		1,863,092	1,740,029
Due after ten years, Estimated Fair Value		253,200	144,873
Estimated Fair Value		4,728,049	4,714,634
MBS
Available-for-sale Securities [Line Items]
Amortized Cost		2,284,824	1,300,218
Estimated Fair Value		$ 2,343,761	$ 1,345,201

[1] Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses) and fair-value hedge accounting adjustments.

XML

Held-to-Maturity Securities (Major Security Types) (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	$ 5,633,245	$ 5,819,676
Non-Credit (OTTI)		(53)	(103)
Carrying Value		5,633,192	5,819,573
Gross Unrecognized Holding Gains		52,812	51,993
Gross Unrecognized Holding Losses		(10,968)	(22,874)
Estimated Fair Value		5,675,036	5,848,692
Other U.S. obligations -guaranteed MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	2,848,319	2,678,437
Non-Credit (OTTI)		0	0
Carrying Value		2,848,319	2,678,437
Gross Unrecognized Holding Gains		7,496	5,412
Gross Unrecognized Holding Losses		(6,294)	(12,720)
Estimated Fair Value		2,849,521	2,671,129
GSE MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	2,731,973	3,082,343
Non-Credit (OTTI)		0	0
Carrying Value		2,731,973	3,082,343
Gross Unrecognized Holding Gains		45,066	46,480
Gross Unrecognized Holding Losses		(3,783)	(8,841)
Estimated Fair Value		2,773,256	3,119,982
Asset-backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	8,277	9,148
Non-Credit (OTTI)		(53)	(103)
Carrying Value		8,224	9,045
Gross Unrecognized Holding Gains		32	40
Gross Unrecognized Holding Losses		(533)	(780)
Estimated Fair Value		7,723	8,305
Residential Mortgage Backed Securities [Member] | Private-label RMBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	44,676	49,748
Non-Credit (OTTI)		0	0
Carrying Value		44,676	49,748
Gross Unrecognized Holding Gains		218	61
Gross Unrecognized Holding Losses		(358)	(533)
Estimated Fair Value		$ 44,536	$ 49,276

[1] Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal, and, if applicable, OTTI recognized in earnings (credit losses).

XML

Held-to-Maturity Securities (Unrealized Loss Position) (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value		$ 1,044,327	$ 1,667,467
Less than 12 Months, Unrealized Losses		(6,139)	(8,974)
12 Months or More, Estimated Fair Value		1,199,266	1,770,397
12 Months or More, Unrealized Losses		(4,850)	(13,963)
Total Estimated Fair Value		2,243,593	3,437,864
Unrealized Loss Position	[1]	(10,989)	(22,937)
Gross Unrecognized Holding Losses		(10,968)	(22,874)
Non-Credit (OTTI)		(53)	(103)
Gross Unrecognized Holding Gains		52,812	51,993
Other U.S. obligations -guaranteed MBS
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value		467,766	367,474
Less than 12 Months, Unrealized Losses		(2,648)	(997)
12 Months or More, Estimated Fair Value		1,031,269	1,426,182
12 Months or More, Unrealized Losses		(3,646)	(11,723)
Total Estimated Fair Value		1,499,035	1,793,656
Unrealized Loss Position	[1]	(6,294)	(12,720)
Gross Unrecognized Holding Losses		(6,294)	(12,720)
Non-Credit (OTTI)		0	0
Gross Unrecognized Holding Gains		7,496	5,412
GSE MBS
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value		569,000	1,281,827
Less than 12 Months, Unrealized Losses		(3,488)	(7,915)
12 Months or More, Estimated Fair Value		142,130	320,141
12 Months or More, Unrealized Losses		(295)	(926)
Total Estimated Fair Value		711,130	1,601,968
Unrealized Loss Position	[1]	(3,783)	(8,841)
Gross Unrecognized Holding Losses		(3,783)	(8,841)
Non-Credit (OTTI)		0	0
Gross Unrecognized Holding Gains		45,066	46,480
Asset-backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value		0	0
Less than 12 Months, Unrealized Losses		0	0
12 Months or More, Estimated Fair Value		7,724	8,304
12 Months or More, Unrealized Losses		(554)	(843)
Total Estimated Fair Value		7,724	8,304
Unrealized Loss Position	[1]	(554)	(843)
Gross Unrecognized Holding Losses		(533)	(780)
Non-Credit (OTTI)		(53)	(103)
Gross Unrecognized Holding Gains		32	40
Residential Mortgage Backed Securities [Member] | Private-label RMBS
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value		7,561	18,166
Less than 12 Months, Unrealized Losses		(3)	(62)
12 Months or More, Estimated Fair Value		18,143	15,770
12 Months or More, Unrealized Losses		(355)	(471)
Total Estimated Fair Value		25,704	33,936
Unrealized Loss Position	[1]	(358)	(533)
Gross Unrecognized Holding Losses		(358)	(533)
Non-Credit (OTTI)		0	0
Gross Unrecognized Holding Gains		$ 218	$ 61

[1] For private-label ABS, the total of unrealized losses does not agree to total gross unrecognized holding losses at June 30, 2017 and December 31, 2016 of $533 and $780, respectively. Total unrealized losses include non-credit-related OTTI losses recorded in AOCI of $53 and $103, respectively, and gross unrecognized holding gains on previously OTTI securities of $32 and $40, respectively

XML

Other-Than-Temporary Impairment (Securities with OTTI Losses) (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017 USD ($) securities	Jun. 30, 2016 USD ($) securities	Jun. 30, 2017 USD ($) securities	Jun. 30, 2016 USD ($) securities
Other than Temporary Impairment, Disclosure [Line Items]
Projected Change In The Twelve Month Housing Price Percentage Rate Maximum Decrease		(5.00%)		(5.00%)
Projected Change In The Twelve Month Housing Price Percentage Rate Maximum Increase		11.00%		11.00%
Projected Change In The Short Term Housing Price Percentage Rate Maximum Decrease In Vast Majority Of Markets		1.00%		1.00%
Number of securities | securities		2	1	2	1
Net other-than-temporary impairment losses, credit portion | $		$ 111	$ 93	$ 193	$ 93
Projected Change In The Shortterm Housing Price Percentage Rate Maximum Increase In Vast Majority Of Markets		6.00%		6.00%
Subprime [Member] | Private-label RMBS | Residential Mortgage Backed Securities [Member]
Other than Temporary Impairment, Disclosure [Line Items]
Prepayent Rates	[1]	7.00%
Other Than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Qualitative Disclosures, Default Rate	[1]	41.00%
Loss Severities	[1]	40.00%
Current Credit Enhancement	[1]	0.00%		0.00%
Prime [Member] | Private-label RMBS | Residential Mortgage Backed Securities [Member]
Other than Temporary Impairment, Disclosure [Line Items]
Prepayent Rates		9.00%
Other Than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Qualitative Disclosures, Default Rate		13.00%
Loss Severities		33.00%
Current Credit Enhancement		0.00%		0.00%

[1] Modeling assumptions assume no payout from monoline bond insurers.

XML

Advances (Narratives) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Federal Home Loan Bank, Advances [Line Items]
Percent of Advances Par Value Held by Top Five Borrowers	45.00%	43.00%
Total advances, par value	$ 32,288,737	$ 28,131,960

XML

Advances by Year of Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Year of Contractual Maturity, Amount
Overdrawn demand and overnight deposit accounts	$ 1,779	$ 0
Due in 1 year or less	16,238,103	12,598,864
Due after 1 year through 2 years	2,374,373	2,752,629
Due after 2 years through 3 years	2,791,702	1,920,962
Due after 3 years through 4 years	2,098,808	2,605,198
Due after 4 years through 5 years	2,084,100	2,009,395
Thereafter	6,699,872	6,244,912
Total advances, par value	$ 32,288,737	$ 28,131,960
Year of Contractual Maturity, WAIR %
Overdrawn demand and overnight deposit accounts	3.38%	0.00%
Due in 1 year or less	1.24%	0.91%
Due after 1 year through 2 years	1.78%	1.74%
Due after 2 years through 3 years	1.74%	2.10%
Due after 3 years through 4 years	1.63%	1.38%
Due after 4 years through 5 years	1.69%	1.47%
Thereafter	1.46%	1.20%
Total advances, par value	1.42%	1.22%
Fair-value hedging adjustments	$ (51,704)	$ (57,716)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	16,317	21,709
Total Advances	$ 32,253,350	$ 28,095,953

XML

Advances Earlier of Contractual Maturity or Next Call Date and Year of Contractual Maturity or Next Put Date (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Advances [Abstract]
Overdrawn demand and overnight deposit accounts	$ 1,779	$ 0
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Call Date, Rolling Year, Par Value [Abstract]
Due in 1 year or less	23,793,604	19,390,714
Due after 1 year through 2 years	1,967,873	2,502,629
Due after 2 years through 3 years	2,066,702	1,856,463
Due after 3 years through 4 years	1,326,508	1,548,998
Due after 4 years through 5 years	870,300	900,095
Thereafter	2,261,971	1,933,061
Federal Home Loan Bank, Advances, Earlier of Contractual Maturity or Next Put or Convert Date, Rolling Year, Par Value [Abstract]
Due in 1 year or less	16,419,603	12,767,364
Due after 1 year through 2 years	2,374,373	2,757,629
Due after 2 years through 3 years	3,029,302	1,915,962
Due after 3 years through 4 years	2,565,308	2,605,198
Due after 4 years through 5 years	2,416,500	2,535,895
Thereafter	5,481,872	5,549,912
Total advances, par value	$ 32,288,737	$ 28,131,960

XML

Mortgage Loans Held for Portfolio (Details) - USD ($) $ in Thousands		1 Months Ended		6 Months Ended
		Jan. 31, 2017	Dec. 31, 2016	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			$ 9,293,390	$ 9,674,447
Unamortized premiums			210,116	221,789
Unamortized discounts			(2,383)	(2,593)
Fair-value hedging adjustments			1,124	1,649
Allowance for loan losses			(850)	(850)
Total mortgage loans held for portfolio, net			9,501,397	9,894,442
Principal Amount of Mortgage Loans Sold		$ 18,000	72,000
Fixed-rate long-term mortgages
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			8,086,412	8,499,668
Fixed-rate medium-term mortgages
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB	[1]		1,206,978	$ 1,174,779
Fixed-rate medium-term mortgages | Maximum
Mortgage Loans on Real Estate [Line Items]
Original term				15 years
Conventional
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			8,796,407	$ 9,212,060
Mortgage Purchase Program
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			8,930,194	9,339,161
Mortgage Partnership Finance Program
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			363,196	335,286
Conventional
Mortgage Loans on Real Estate [Line Items]
Allowance for loan losses			(850)	(850)	$ (850)	$ (850)	$ (850)	$ (1,125)
Conventional | Mortgage Purchase Program
Mortgage Loans on Real Estate [Line Items]
Allowance for loan losses			(750)	(750)
Government-guaranteed or -insured
Mortgage Loans on Real Estate [Line Items]
Mortgage Loans Held for Portfolio, UPB			$ 496,983	$ 462,387

[1] Defined as a term of 15 years or less at origination.

XML

Allowance for Credit Losses (Credit Enhancements) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Credit Enhancement Fund [Roll Forward]
Balance of LRA, beginning of period		$ 130,728	$ 96,663	$ 125,683	$ 91,552
Additions		6,536	10,011	11,767	15,418
Claim paid		(146)	(276)	(248)	(485)
Distributions to members		(277)	(833)	(361)	(920)
Balance of LRA, end of period		136,841	105,565	136,841	105,565
Allowance for loan losses		850		850			$ 850
Conventional
Credit Enhancement Fund [Roll Forward]
Allowance for loan losses		850	$ 850	850	$ 850	$ 850	850	$ 850	$ 1,125
Mortgage Purchase Program | Conventional
Credit Enhancement Fund [Roll Forward]
Estimated incurred losses remaining after borrower's equity, before credit enhancements	[1]	7,432		7,432			8,689
Allowance for unrecoverable PMI/SMI		50		50			50
Allowance for loan losses		750		750			750
Mortgage Purchase Program | Conventional | PMI
Credit Enhancement Fund [Roll Forward]
Portion of estimated losses recoverable from		(1,791)		(1,791)			(1,981)
Mortgage Purchase Program | Conventional | LRA
Credit Enhancement Fund [Roll Forward]
Portion of estimated losses recoverable from	[2]	(1,876)		(1,876)			(2,418)
Mortgage Purchase Program | Conventional | SMI
Credit Enhancement Fund [Roll Forward]
Portion of estimated losses recoverable from		$ (3,065)		$ (3,065)			$ (3,590)

[1] Based on a loss emergence period of 24 months.

[2] Amounts recoverable are limited to (i) the estimated losses remaining after borrower's equity and PMI and (ii) the remaining balance in each pool's portion of the LRA. The remainder of the LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

XML

Allowance for Credit Losses (Allowance) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses on mortgage loans, beginning of period				$ 850
Provision for (reversal of) loan losses		$ 130	$ (242)	281	$ (217)
Allowance for loan losses on mortgage loans, end of period		850		850
Total allowance for loan losses		850		850		$ 850	$ 850
Total recorded investment						9,935,903	9,541,098
Conventional
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses on mortgage loans, beginning of period		850	850	850	1,125
Charge-offs, net of recoveries		130	242	281	58
Provision for (reversal of) loan losses		130	(242)	281	(217)
Allowance for loan losses on mortgage loans, end of period		850	850	850	850
Allowance for loan losses, loans collectively evaluated for impairment						730	750
Allowance for loan losses, loans individually evaluated for impairment	[1]					120	100
Total allowance for loan losses		850	$ 850	850	$ 1,125	850	850
Recorded Investment, loans collectively evaluated for impairment						9,450,390	9,020,194
Recorded Investment, loans individually evaluated for impairment	[1]					15,221	15,507
Total recorded investment						9,465,611	9,035,701
Principal paid in full by servicers						3,273	2,814
Potential claims included in allowance						73	70
Mortgage Purchase Program | Conventional
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses on mortgage loans, beginning of period				750
Allowance for loan losses on mortgage loans, end of period		750		750
Total allowance for loan losses		$ 750		$ 750		$ 750	$ 750

[1] The recorded investment in our MPP conventional loans individually evaluated for impairment excludes principal previously paid in full by the servicers as of June 30, 2017 and December 31, 2016 of $3,273 and $2,814, respectively, that remains subject to potential claims by those servicers for any losses resulting from past or future liquidations of the underlying properties. However, the MPP allowance for loan losses as of June 30, 2017 and December 31, 2016 includes $73 and $70, respectively, for these potential claims.

XML

Allowance for Credit Losses (Past Due) (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 84,187	$ 109,341
Total current		9,851,716	9,431,757
Total recorded investment		9,935,903	9,541,098
In process of foreclosure	[1]	$ 13,833	$ 17,749
Serious delinquency rate (percentage)	[2]	0.24%	0.33%
Past due 90 days or more still accruing interest	[3]	$ 21,006	$ 27,725
On non-accrual status		$ 4,022	4,699
Delinquent loan receivable (in days)		90 days
Conventional
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 68,631	86,260
Total current		9,396,980	8,949,441
Total recorded investment		9,465,611	9,035,701
In process of foreclosure	[1]	$ 13,833	$ 17,749
Serious delinquency rate (percentage)	[2]	0.24%	0.32%
Past due 90 days or more still accruing interest	[3]	$ 19,543	$ 25,375
On non-accrual status		4,022	4,699
US Government Agency Insured Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		15,556	23,081
Total current		454,736	482,316
Total recorded investment		470,292	505,397
In process of foreclosure	[1]	$ 0	$ 0
Serious delinquency rate (percentage)	[2]	0.31%	0.46%
Past due 90 days or more still accruing interest	[3]	$ 1,463	$ 2,350
On non-accrual status		0	0
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		48,753	63,301
Financing Receivables, 30 to 59 Days Past Due [Member] | Conventional
Financing Receivable, Recorded Investment [Line Items]
Total past due		36,986	46,118
Financing Receivables, 30 to 59 Days Past Due [Member] | US Government Agency Insured Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		11,767	17,183
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		11,292	14,592
Financing Receivables, 60 to 89 Days Past Due [Member] | Conventional
Financing Receivable, Recorded Investment [Line Items]
Total past due		8,966	11,044
Financing Receivables, 60 to 89 Days Past Due [Member] | US Government Agency Insured Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		2,326	3,548
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		24,142	31,448
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Conventional
Financing Receivable, Recorded Investment [Line Items]
Total past due		22,679	29,098
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | US Government Agency Insured Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 1,463	$ 2,350

[1] Includes loans for which the decision of foreclosure or similar alternative, such as pursuit of deed-in-lieu of foreclosure, has been reported. Loans in process of foreclosure are included in past due categories depending on their delinquency status, but are not necessarily considered to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policies in our 2016 Form 10-K.

[2] Represents loans 90 days or more past due (including loans in process of foreclosure) expressed as a percentage of the total recorded investment in mortgage loans. The percentage excludes principal and interest amounts previously paid in full by the servicers on conventional loans that are pending resolution of potential loss claims. Our servicers repurchase seriously delinquent government loans, including FHA loans, when certain criteria are met.

[3] Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the mortgagor's payment status, we do not consider these loans to be on non-accrual status. For additional discussion, see Note 1 - Summary of Significant Accounting Policies in our 2016 Form 10-K.

XML

Allowance for Credit Losses (Impaired Debt) (Details) - Mortgage Purchase Program - Conventional - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Conventional loans without allowance for loan losses, Recorded Investment	[1]	$ 13,945		$ 13,945		$ 15,158
Conventional loans with allowance for loan losses, Recorded Investment		1,276		1,276		349
Total recorded investment		15,221		15,221		15,507
Conventional loans without allowance for loan losses, UPB	[1]	14,007		14,007		15,219
Conventional loans with allowance for loan losses, UPB		1,279		1,279		358
Total UPB		15,286		15,286		15,577
Allowance for loan losses		47		47		$ 30
Conventional loans without allowance, Average Recorded Investment		14,537	$ 16,474	14,475	$ 16,330
Conventional loans without allowance, Interest Income Recognized		161	175	354	387
Conventional loans with allowance, Average Recorded Investment		1,279	1,268	1,283	1,272
Conventional loans with allowance, Interest Income Recognized		19	17	25	28
Impaired Financing Receivable, Average Recorded Investment		15,816	17,742	15,758	17,602
Impaired Financing Receivable, Interest Income, Accrual Method		$ 180	$ 192	$ 379	$ 415

[1] No allowance for loan losses was recorded on these impaired loans after consideration of the underlying loan-specific attribute data, estimated liquidation value of real estate collateral held, estimated costs associated with maintaining and disposing of the collateral, and credit enhancements.

XML

Derivative and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative, Collateral, Right to Reclaim Cash	$ 92,236	$ 35,422
Notional Amount of Derivatives	27,831,640	25,812,444
Estimated Fair Value of Derivative Assets	216,093	233,101
Estimated Fair Value of Derivative Liabilities	91,918	103,107
Netting adjustments, assets	(89,505)	(133,089)
Derivative Asset Fair Value Gross Asset and Right to Reclaim Cash Offset	28,713	34,836
Netting adjustments, liabilities	(89,505)	(133,089)
Cash collateral and related accrued interest, liabilities	(19)	55,207
Derivative Asset, net	155,301	134,848
Derivative Liability, net	2,394	25,225
Derivative, Collateral, Obligation to Return Cash	43,756	55,793
Variation Margin for Daily Settled Contracts, Net	19,748
Derivatives designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	26,869,481	23,998,498
Estimated Fair Value of Derivative Assets	215,237	230,705
Estimated Fair Value of Derivative Liabilities	91,410	102,201
Derivatives designated as hedging instruments: | Interest-rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	26,869,481	23,998,498
Estimated Fair Value of Derivative Assets	215,237	230,705
Estimated Fair Value of Derivative Liabilities	91,410	102,201
Derivatives not designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	962,159	1,813,946
Estimated Fair Value of Derivative Assets	856	2,396
Estimated Fair Value of Derivative Liabilities	508	906
Derivatives not designated as hedging instruments: | Interest-rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	131,500	901,344
Estimated Fair Value of Derivative Assets	255	1,430
Estimated Fair Value of Derivative Liabilities	17	31
Derivatives not designated as hedging instruments: | Interest Rate Swaption [Member]
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	200,000	350,000
Estimated Fair Value of Derivative Assets	0	2
Estimated Fair Value of Derivative Liabilities	0	50
Derivatives not designated as hedging instruments: | Interest-rate caps/floors
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	323,500	364,500
Estimated Fair Value of Derivative Assets	189	322
Estimated Fair Value of Derivative Liabilities	0	2
Derivatives not designated as hedging instruments: | Interest-rate forwards
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	154,000	99,100
Estimated Fair Value of Derivative Assets	392	339
Estimated Fair Value of Derivative Liabilities	0	352
Mortgages [Member] | Derivatives not designated as hedging instruments: | Interest-rate forwards
Derivatives, Fair Value [Line Items]
Notional Amount of Derivatives	153,159	99,002
Estimated Fair Value of Derivative Assets	20	303
Estimated Fair Value of Derivative Liabilities	$ 491	$ 471

XML

Derivative and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Variation Margin for Daily Settled Contracts, Net	$ (19,748)
Derivative Asset, Gross recognized amount	215,681	$ 232,459
Derivative Liability, Gross recognized amount	91,427	102,284
Derivative Asset Gross Netting Adjustment and Cash Collateral	(60,792)	(98,253)
Derivative Liability, Gross amounts of netting adjustments and cash collateral	(89,524)	(77,882)
Derivative Asset,Net amounts after netting adjustments and cash collateral	154,889	134,206
Derivative Liability, Net amounts after netting adjustments and cash collateral	1,903	24,402
Derivative Asset, Derivative instruments not meeting netting requirements	412	642
Derivative Liability, Derivative instruments not meeting netting requirements	491	823
Derivative Asset, net	155,301	134,848
Derivative Liability, net	2,394	25,225
Uncleared
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset, Gross recognized amount	81,432	86,606
Derivative Liability, Gross recognized amount	36,230	45,449
Derivative Asset Gross Netting Adjustment and Cash Collateral	(69,910)	(76,255)
Derivative Liability, Gross amounts of netting adjustments and cash collateral	(34,327)	(21,047)
Derivative Asset,Net amounts after netting adjustments and cash collateral	11,522	10,351
Derivative Liability, Net amounts after netting adjustments and cash collateral	1,903	24,402
Cleared
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Asset, Gross recognized amount	134,249	145,853
Derivative Liability, Gross recognized amount	55,197	56,835
Derivative Asset Gross Netting Adjustment and Cash Collateral	9,118	(21,998)
Derivative Liability, Gross amounts of netting adjustments and cash collateral	(55,197)	(56,835)
Derivative Asset,Net amounts after netting adjustments and cash collateral	143,367	123,855
Derivative Liability, Net amounts after netting adjustments and cash collateral	$ 0	$ 0

XML

Derivative and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net	$ (3,859)	$ (2,134)	$ (7,833)	$ (2,577)
Total net gain (loss) on derivatives not designated as hedging instruments	(801)	(659)	(1,152)	(2,313)
Derivative Instruments, Other Gain (Loss)	(50)	0	(100)	0
Net gains (losses) on derivatives and hedging activities	(4,710)	(2,793)	(9,085)	(4,890)
Interest-rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net	(3,859)	(2,134)	(7,833)	(2,577)
Total net gain (loss) on derivatives not designated as hedging instruments	(66)	(198)	(88)	(1,413)
Interest Rate Swaption [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments	(38)	0	(177)	0
Interest-rate caps/floors
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments	(177)	(16)	(131)	(47)
Interest-rate forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments	(773)	(2,863)	(941)	(5,337)
Net interest settlements
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments	(144)	(12)	(291)	(124)
Mortgages [Member] | Interest-rate forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments	$ 397	$ 2,430	$ 476	$ 4,608

XML

Derivative and Hedging Activities (Derivatives in Statement of Income and Impact on Interest) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives	$ (56,588)	$ (69,857)	$ (29,329)	$ (210,174)
Gain (Loss) on Hedged Item	52,729	67,723	21,496	207,597
Net Fair Value Hedge Ineffectiveness	(3,859)	(2,134)	(7,833)	(2,577)
Effect on Net Interest Income	(18,463)	(47,001)	(43,419)	(95,728)
Advances
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives	(24,561)	(26,669)	(8,825)	(119,715)
Gain (Loss) on Hedged Item	23,769	25,772	9,241	119,978
Net Fair Value Hedge Ineffectiveness	(792)	(897)	416	263
Effect on Net Interest Income	(8,912)	(25,941)	(20,391)	(53,904)
Available-for-sale Securities
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives	(42,407)	(51,639)	(25,332)	(111,255)
Gain (Loss) on Hedged Item	40,147	47,568	20,064	107,262
Net Fair Value Hedge Ineffectiveness	(2,260)	(4,071)	(5,268)	(3,993)
Effect on Net Interest Income	(13,928)	(25,700)	(30,793)	(52,091)
CO bonds
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivatives	10,380	8,451	4,828	20,796
Gain (Loss) on Hedged Item	(11,187)	(5,617)	(7,809)	(19,643)
Net Fair Value Hedge Ineffectiveness	(807)	2,834	(2,981)	1,153
Effect on Net Interest Income	$ 4,377	$ 4,640	$ 7,765	$ 10,267

XML

Derivative and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash collateral pledged to counterparties	$ 92,236	$ 35,422
Cash collateral received from counterparties	43,756	$ 55,793
Net liability position, aggregate fair value	6,480
Collateral already posted, estimated fair value	8,173
Other derivative instruments in a net liability position	491
Additional collateral, fair value	$ 500

XML

Consolidated Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Schedule of Short-term and Long-term Debt [Line Items]
FHLB System outstanding consolidated obligations	$ 1,000,000,000	$ 989,300,000
Discount Notes maturity period (years)	1 year
Discount Note [Abstract]
Discount Notes - Book Value	$ 21,036,075	16,801,763
Discount Notes - Par Value	$ 21,072,353	$ 16,819,659
Weighted average effective interest rate (percentage)	0.96%	0.51%
CO Bonds [Abstract]
Due in 1 year or less	$ 14,708,530	$ 16,234,460
Due after 1 year through 2 years	8,357,605	6,122,190
Due after 2 years through 3 years	3,300,980	2,718,945
Due after 3 years through 4 years	1,458,370	1,684,530
Due after 4 years through 5 years	993,820	1,040,000
Thereafter	6,495,000	5,708,000
Unamortized premiums	28,092	27,462
Unamortized discounts	(12,116)	(12,059)
Unamortized concessions	(13,989)	(13,705)
Fair-value hedging adjustments	$ (34,656)	$ (42,544)
Due in 1 year or less, WAIR %	1.12%	0.85%
Due after 1 year through 2 years, WAIR %	1.31%	0.96%
Due after 2 years through 3 years, WAIR %	2.08%	1.65%
Due after 3 years through 4 years, WAIR %	2.51%	3.17%
Due after 4 years through 5 years, WAIR %	2.06%	2.17%
Thereafter, WAIR %	2.87%	2.92%
Total WAIR%	1.66%	1.44%
CO Bonds, Par value	$ 35,314,305	$ 33,508,125
Due in 1 year or less	23,234,530	23,825,460
Due after 1 year through 2 years	7,629,605	4,675,190
Due after 2 years through 3 years	2,212,980	2,240,945
Due after 3 years through 4 years	827,370	1,257,530
Due after 4 years through 5 years	381,820	474,000
Thereafter	1,028,000	1,035,000
Bonds	35,281,636	33,467,279
Federal Home Loan Bank Consolidated Obligations With No Related Option Feature [Member]
CO Bonds [Abstract]
CO Bonds, Par value	26,086,305	25,627,125
Federal Home Loan Bank Consolidated Obligations Callable Option [Member]
CO Bonds [Abstract]
CO Bonds, Par value	$ 9,228,000	$ 7,881,000

XML

Affordable Housing Program (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Affordable Housing Program Funding Obligation [Roll Forward]
Balance at beginning of period		$ 27,203	$ 28,235	$ 26,598	$ 31,103
Assessment (expense)		4,381	2,717	8,090	5,817
Subsidy usage, net	[1]	(6,955)	(5,029)	(10,059)	(10,997)
Balance at end of period		$ 24,629	$ 25,923	$ 24,629	$ 25,923

[1] Subsidies disbursed are reported net of returns/recaptures of previously disbursed subsidies.

XML

Capital (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Feb. 01, 2016
Capital [Abstract]
Financial Instruments Subject to Mandatory Redemption Past Contractual Redemption Date Due to Outstanding Activity To Be Repurchased or Redeemed No Later Than February 19 2017						$ 3,021
Mandatorily Redeemable Capital Stock Activity [Roll Forward]
Liability at beginning of period		$ 166,930	$ 192,548	$ 170,043	$ 14,063
Reclassification from capital stock		0	0	0	178,898
Redemptions/repurchases		(95)	(14,945)	(3,208)	(16,396)
Accrued distributions		0	0	0	1,038
Liability at end of period		166,835	177,603	166,835	177,603
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount [Abstract]
Year 1	[1]	10,476		10,476		8,630
Year 2		0		0		5,054
Year 3		13		13		13
Year 4		73		73		0
Year 5		4,085		4,085		4,158
Thereafter	[2]	152,188		152,188		152,188
Financial Instruments Subject to Mandatory Redemption, Past Contractual Redemption Date, Due to Outstanding Activity		5,422		5,422		5,609
Recorded as interest expense		1,756	1,871	3,509	2,868
Recorded as distributions from retained earnings		0	0	0	1,038
Total		1,756	$ 1,871	3,509	$ 3,906
Regulatory Capital Requirements [Abstract]
Federal Home Loan Bank, Risk-Based Capital, Required		851,196		851,196		760,946
Federal Home Loan Bank, Risk-Based Capital, Actual		$ 2,793,846		$ 2,793,846		$ 2,549,871
Regulatory permanent capital-to-asset ratio, Required (percentage)		4.00%		4.00%		4.00%
Federal Home Loan Bank, Regulatory Capital Ratio, Actual (percentage)		4.60%		4.60%		4.73%
Federal Home Loan Bank, Regulatory Capital, Required		$ 2,428,479		$ 2,428,479		$ 2,156,296
Federal Home Loan Bank, Regulatory Capital, Actual		$ 2,793,846		$ 2,793,846		$ 2,549,871
Leverage ratio, Required (percentage)		5.00%		5.00%		5.00%
Federal Home Loan Bank, Leverage Ratio, Actual (percentage)		6.90%		6.90%		7.10%
Federal Home Loan Bank, Leverage Capital, Required		$ 3,035,599		$ 3,035,599		$ 2,695,370
Federal Home Loan Bank, Leverage Capital, Actual		$ 4,190,769		$ 4,190,769		$ 3,824,806
Class B Stock of Captive Insurance Company Members Reclassified to MRCS							$ 178,898

[1] Balances at June 30, 2017 and December 31, 2016 include $5,422 and $5,609, respectively, of Class B stock that had reached the end of the five-year redemption period but will not be redeemed until the associated credit products and other obligations are no longer outstanding.

[2] Represents the five-year redemption period of outstanding Class B stock held by certain captive insurance companies which begins immediately upon their termination of memberships no later than February 19, 2021, in accordance with the Final Membership Rule.

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other than Temporary Impairment Losses, Investments, Reclassification Adjustment of Noncredit Portion Included in Net Income, Availabe-for-sale Securities, before Tax	$ 73	$ 93	$ 155	$ 93
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	96,420		96,420			$ 56,368
Net change in unrealized gains (losses) on available-for-sale securities	14,854	(693)	37,610	(906)
Net change in fair value	85	28	2	52
Accretion of non-credit portion	(6)	(8)	(12)	(16)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	16,371	(1,928)	40,052	(7,658)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	96,420	15,220	96,420	15,220	$ 80,049	56,368	$ 17,148	$ 22,878
Net change in unrealized gains (losses) on available-for-sale securities	15,844	(1,199)	39,192	(7,203)
Net change in fair value	85	28	2	52
Accretion of non-credit portion	6	8	12	16
Non-credit portion of OTTI losses	111	93	193	93
Pension benefits, net	325	(858)	653	(616)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	16,371	(1,928)	40,052	(7,658)
Unrealized Gains (Losses) on AFS Securities
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	77,078	(809)	77,078	(809)	62,224	39,468	(116)	97
Net change in unrealized gains (losses) on available-for-sale securities	14,854	(693)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	14,854	(693)	37,610	(906)
Unrealized Gains (Losses) on AFS Securities | Available-for-sale Securities
Accumulated Other Comprehensive Income [Roll Forward]
Net change in unrealized gains (losses) on available-for-sale securities			37,610	(906)
Non-Credit OTTI | Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other than Temporary Impairment Losses, Investments, Reclassification Adjustment of Noncredit Portion Included in Net Income, Availabe-for-sale Securities, before Tax			155	93
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	28,677	24,077	28,677	24,077	27,529	26,938	24,462	30,229
Net change in unrealized gains (losses) on available-for-sale securities	990	(506)	1,582	(6,297)
Net change in fair value	85	28	2	52
Non-credit portion of OTTI losses	73	93
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	1,148	(385)	1,739	(6,152)
Non-Credit OTTI | HTM Securities [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	(53)	(116)	(53)	(116)	(97)	(103)	(124)	(132)
Accretion of non-credit portion	6	8	12	16
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	44	8	50	16
Pension Benefits
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated Other Comprehensive Income (Loss), before Federal Home Loan Bank Assessments	(9,282)	(7,932)	(9,282)	(7,932)	$ (9,607)	$ (9,935)	$ (7,074)	$ (7,316)
Pension benefits, net	325	(858)	653	(616)
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	$ 325	$ (858)	$ 653	$ (616)

XML

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net interest income	$ 65,065	$ 45,599	$ 124,068	$ 94,970
Provision for (reversal of) credit losses	130	(242)	281	(217)
Other income (loss)	(3,833)	(1,883)	(7,498)	(3,085)
Other expenses	19,044	18,653	38,897	36,800
Income before assessments	42,058	25,305	77,392	55,302
Affordable Housing Program assessments	4,381	2,717	8,090	5,817
Net Income	37,677	22,588	69,302	49,485
Assets	60,711,976		60,711,976		$ 53,907,400
Traditional
Segment Reporting Information [Line Items]
Net interest income	47,255	32,418	88,791	65,490
Provision for (reversal of) credit losses	0	0	0	0
Other income (loss)	(3,329)	(1,518)	(7,003)	(2,460)
Other expenses	16,031	15,816	32,826	31,226
Income before assessments	27,895	15,084	48,962	31,804
Affordable Housing Program assessments	2,965	1,695	5,247	3,467
Net Income	24,930	13,389	43,715	28,337
Assets	50,817,534		50,817,534		44,406,003
Mortgage Loans
Segment Reporting Information [Line Items]
Net interest income	17,810	13,181	35,277	29,480
Provision for (reversal of) credit losses	130	(242)	281	(217)
Other income (loss)	(504)	(365)	(495)	(625)
Other expenses	3,013	2,837	6,071	5,574
Income before assessments	14,163	10,221	28,430	23,498
Affordable Housing Program assessments	1,416	1,022	2,843	2,350
Net Income	12,747	$ 9,199	25,587	$ 21,148
Assets	$ 9,894,442		$ 9,894,442		$ 9,501,397

XML

Estimated Fair Values (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Variation Margin for Daily Settled Contracts, Net	$ (19,748)
Assets:
Cash and due from banks	92,082		$ 546,612
AFS securities	7,071,810		6,059,835
Held-to-maturity securities (estimated fair values of $5,675,036 and $5,848,692, respectively) (Notes 4 and 5)	5,633,192		5,819,573
HTM securities	5,675,036		5,848,692
Accrued interest receivable	99,055		93,716
Derivative assets, net	155,301		134,848
Netting adjustment	(60,792)		(98,253)
Consolidated Obligations:
Accrued interest payable	117,220		98,411
Derivative liabilities, net (Note 9)	2,394		25,225
Netting adjustment	(89,524)		(77,882)
MRCS	166,835	$ 166,930	170,043	$ 177,603	$ 192,548	$ 14,063
Level 1 [Member]
Assets:
Cash and due from banks	92,082		546,612
Interest-bearing deposits	334,192		150,072
Securities purchased under agreements to resell	0		0
Federal funds sold	0		0
AFS securities	0		0
HTM securities	0		0
Advances	0		0
Mortgage loans held for portfolio, net	0		0
Accrued interest receivable	0		0
Derivative assets, net	0		0
Grantor trust assets (included in other assets)	20,233		18,117
Liabilities:
Deposits	0		0
Consolidated Obligations:
Discount notes	0		0
Bonds	0		0
Accrued interest payable	0		0
Derivative liabilities, net (Note 9)	0		0
MRCS	166,835		170,043
Level 2 [Member]
Assets:
Cash and due from banks	0		0
Interest-bearing deposits	240		153
Securities purchased under agreements to resell	2,527,005		1,781,309
Federal funds sold	2,575,000		1,650,000
AFS securities	6,827,547		5,790,716
HTM securities	5,622,777		5,791,111
Advances	32,212,637		28,059,477
Mortgage loans held for portfolio, net	9,982,042		9,567,140
Accrued interest receivable	99,055		93,716
Derivative assets, net	216,093		233,101
Grantor trust assets (included in other assets)	0		0
Liabilities:
Deposits	674,476		524,073
Consolidated Obligations:
Discount notes	21,072,353		16,819,659
Bonds	35,464,780		33,614,346
Accrued interest payable	117,220		98,411
Derivative liabilities, net (Note 9)	91,918		103,107
MRCS	0		0
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
AFS securities	244,263		269,119
HTM securities	52,259		57,581
Advances	0		0
Mortgage loans held for portfolio, net	14,827		20,254
Accrued interest receivable	0		0
Derivative assets, net	0		0
Grantor trust assets (included in other assets)	0		0
Liabilities:
Deposits	0		0
Consolidated Obligations:
Discount notes	0		0
Bonds	0		0
Accrued interest payable	0		0
Derivative liabilities, net (Note 9)	0		0
MRCS	0		0
Fair Value
Assets:
Cash and due from banks	92,082		546,612
Interest-bearing deposits	334,432		150,225
Securities purchased under agreements to resell	2,527,005		1,781,309
Federal funds sold	2,575,000		1,650,000
AFS securities	7,071,810		6,059,835
HTM securities	5,675,036		5,848,692
Advances	32,212,637		28,059,477
Mortgage loans held for portfolio, net	9,996,869		9,587,394
Accrued interest receivable	99,055		93,716
Derivative assets, net	155,301		134,848
Grantor trust assets (included in other assets)	20,233		18,117
Liabilities:
Deposits	674,476		524,073
Consolidated Obligations:
Discount notes	21,072,353		16,819,659
Bonds	35,464,780		33,614,346
Accrued interest payable	117,220		98,411
Derivative liabilities, net (Note 9)	2,394		25,225
MRCS	166,835		170,043
Carrying value
Assets:
Cash and due from banks	92,082		546,612
Interest-bearing deposits	334,432		150,225
Securities purchased under agreements to resell	2,527,000		1,781,309
Federal funds sold	2,575,000		1,650,000
AFS securities	7,071,810		6,059,835
Held-to-maturity securities (estimated fair values of $5,675,036 and $5,848,692, respectively) (Notes 4 and 5)	5,633,192		5,819,573
Advances	32,253,350		28,095,953
Mortgage loans held for portfolio, net	9,894,442		9,501,397
Accrued interest receivable	99,055		93,716
Derivative assets, net	155,301		134,848
Grantor trust assets (included in other assets)	20,233		18,117
Liabilities:
Deposits	674,476		524,073
Consolidated Obligations:
Discount notes	21,036,075		16,801,763
Bonds	35,281,636		33,467,279
Accrued interest payable	117,220		98,411
Derivative liabilities, net (Note 9)	2,394		25,225
MRCS	$ 166,835		$ 170,043

XML

Estimated Fair Values (Estimated Fair Value on a Recurring and Non-Recurring Basis) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variation Margin for Daily Settled Contracts, Net	$ 19,748,000
AFS securities	7,071,810,000	$ 6,059,835,000
Derivative Asset [Abstract]
Derivative Asset	155,301,000	134,848,000
Netting adjustment	(60,792,000)	(98,253,000)
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	2,394,000	25,225,000
Netting adjustment	(89,524,000)	(77,882,000)
GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	4,728,049,000	4,714,634,000
GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	2,099,498,000	1,076,082,000
Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	244,263,000	269,119,000
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	7,071,810,000	6,059,835,000
Derivative Asset [Abstract]
Derivative Asset	155,301,000	134,848,000
Netting adjustment	(60,792,000)	(98,253,000)
Grantor trust assets (included in other assets)	20,233,000	18,117,000
Total assets at estimated fair value	7,247,344,000	6,212,800,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	2,394,000	25,225,000
Netting adjustment	(89,524,000)	(77,882,000)
Total liabilities at recurring estimated fair value	2,394,000	25,225,000
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member]
Derivative Asset [Abstract]
Derivative Asset	154,889,000	134,206,000
Netting adjustment	(60,792,000)	(98,253,000)
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	1,903,000	24,402,000
Netting adjustment	(89,524,000)	(77,882,000)
Fair Value, Measurements, Recurring [Member] | Interest-rate forwards
Derivative Asset [Abstract]
Derivative Asset	392,000	339,000
Netting adjustment	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	352,000
Netting adjustment	0	0
Fair Value, Measurements, Recurring [Member] | Interest-rate forwards | Mortgages [Member]
Derivative Asset [Abstract]
Derivative Asset	20,000	303,000
Netting adjustment		0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	491,000	471,000
Netting adjustment	0	0
Fair Value, Measurements, Recurring [Member] | GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	4,728,049,000	4,714,634,000
Fair Value, Measurements, Recurring [Member] | GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	2,099,498,000	1,076,082,000
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	244,263,000	269,119,000
Fair Value, Measurements, Nonrecurring [Member]
Derivative Asset [Abstract]
Total assets at estimated fair value	4,107,000	3,492,000
Derivative Liability [Abstract]
Mortgage loans held for portfolio	4,107,000	3,492,000
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Derivative Asset [Abstract]
Derivative Asset	0	0
Grantor trust assets (included in other assets)	20,233,000	18,117,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Mortgage loans held for portfolio	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Derivative Asset [Abstract]
Derivative Asset	0	0
Grantor trust assets (included in other assets)	20,233,000	18,117,000
Total assets at estimated fair value	20,233,000	18,117,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Total liabilities at recurring estimated fair value	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member]
Derivative Asset [Abstract]
Derivative Asset	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards
Derivative Asset [Abstract]
Derivative Asset	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards | Mortgages [Member]
Derivative Asset [Abstract]
Derivative Asset	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Derivative Asset [Abstract]
Total assets at estimated fair value	0	0
Derivative Liability [Abstract]
Mortgage loans held for portfolio	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	6,827,547,000	5,790,716,000
Derivative Asset [Abstract]
Derivative Asset	216,093,000	233,101,000
Grantor trust assets (included in other assets)	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	91,918,000	103,107,000
Mortgage loans held for portfolio	9,982,042,000	9,567,140,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	6,827,547,000	5,790,716,000
Derivative Asset [Abstract]
Derivative Asset	216,093,000	233,101,000
Grantor trust assets (included in other assets)	0	0
Total assets at estimated fair value	7,043,640,000	6,023,817,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	91,918,000	103,107,000
Total liabilities at recurring estimated fair value	91,918,000	103,107,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member]
Derivative Asset [Abstract]
Derivative Asset	215,681,000	232,459,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	91,427,000	102,284,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards
Derivative Asset [Abstract]
Derivative Asset	392,000	339,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	352,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards | Mortgages [Member]
Derivative Asset [Abstract]
Derivative Asset	20,000	303,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	491,000	471,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	4,728,049,000	4,714,634,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	2,099,498,000	1,076,082,000
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Derivative Asset [Abstract]
Total assets at estimated fair value	0	0
Derivative Liability [Abstract]
Mortgage loans held for portfolio	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	244,263,000	269,119,000
Derivative Asset [Abstract]
Derivative Asset	0	0
Grantor trust assets (included in other assets)	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Mortgage loans held for portfolio	14,827,000	20,254,000
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	244,263,000	269,119,000
Derivative Asset [Abstract]
Derivative Asset	0	0
Grantor trust assets (included in other assets)	0	0
Total assets at estimated fair value	244,263,000	269,119,000
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Total liabilities at recurring estimated fair value	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member]
Derivative Asset [Abstract]
Derivative Asset	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards
Derivative Asset [Abstract]
Derivative Asset	0	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Interest-rate forwards | Mortgages [Member]
Derivative Asset [Abstract]
Derivative Asset	0	0
Netting adjustment	0
Derivative Liability [Abstract]
Derivative liabilities, net (Note 9)	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	0	0
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities	244,263,000	269,119,000
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Derivative Asset [Abstract]
Total assets at estimated fair value	4,107,000	3,492,000
Derivative Liability [Abstract]
Mortgage loans held for portfolio	$ 4,107,000	$ 3,492,000

XML

Estimated Fair Values (Level 3 Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Net change in fair value not in excess of cumulative non-credit losses in OCI	$ 85	$ 28	$ 2	$ 52
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period				319,186
Accretion of credit losses in interest income			3,656	5,300
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			(155)	(93)
Net change in fair value not in excess of cumulative non-credit losses in OCI			2	52
Unrealized gains (losses) in OCI			1,582	(6,297)
Non-Credit Portion of OTTI Losses			155	93
Settlements			(30,096)	(30,098)
Net gains (losses) included in earnings attributable to changes in fair value relating to assets still held at end of period			3,501	4,347
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Private-label RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, end of period	244,263	288,143	244,263	288,143
Private-label RMBS | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Available-for-sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	257,671	300,758	269,119
Accretion of credit losses in interest income	1,785	2,164
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(73)	(93)
Net change in fair value not in excess of cumulative non-credit losses in OCI	85	28
Unrealized gains (losses) in OCI	990	(506)
Non-Credit Portion of OTTI Losses	73	93
Settlements	(16,268)	(14,301)
Balance, end of period	244,263	288,143	$ 244,263	$ 288,143
Net gains (losses) included in earnings attributable to changes in fair value relating to assets still held at end of period	$ 1,712	$ 2,071

XML

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Loss Contingencies [Line Items]
Commitments to fund additional Advances are generally for periods up			6 months
Period for Mortgage Loan Commitments			91 days
Cash collateral pledged	$ 92,222,000		$ 92,222,000		$ 35,421,000
Variation Margin for Daily Settled Contracts, Net	19,748,000		19,748,000
Gain (Loss) Related to Litigation Settlement	178,000	$ 60,000	178,000	$ 60,000
Letters of credit outstanding
Loss Contingencies [Line Items]
Off-balance-sheet commitments, Total	296,368,000		296,368,000
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Off-balance-sheet commitments expire within one year	121,273,000		121,273,000
Off-balance-sheet commitments expire after one year	175,095,000		175,095,000
Unused lines of credit
Loss Contingencies [Line Items]
Off-balance-sheet commitments expire within one year	1,082,709,000		1,082,709,000
Off-balance-sheet commitments expire after one year	0		0
Off-balance-sheet commitments, Total	1,082,709,000		1,082,709,000
Commitments to fund additional advances
Loss Contingencies [Line Items]
Off-balance-sheet commitments expire within one year	55,000,000		55,000,000
Off-balance-sheet commitments expire after one year	0		0
Off-balance-sheet commitments, Total	55,000,000		55,000,000
CO bonds
Loss Contingencies [Line Items]
Off-balance-sheet commitments expire within one year	616,400,000		616,400,000
Off-balance-sheet commitments expire after one year	0		0
Off-balance-sheet commitments, Total	616,400,000		616,400,000
MDCs
Loss Contingencies [Line Items]
Off-balance-sheet commitments, Total	153,159,000		153,159,000
MDCs | Interest-rate forwards
Loss Contingencies [Line Items]
Off-balance-sheet commitments expire within one year	153,159,000		153,159,000
Off-balance-sheet commitments expire after one year	0		0
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Maximum line of credit	$ 50,000,000		$ 50,000,000

XML

Transactions with Related Parties and Other Entities (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transaction [Line Items]
Principal Amount of Mortgage Loans Sold	$ 18,000	$ 72,000
Proceeds from issuance of capital stock					$ 209,263	$ 51,539
Total advances, par value		28,131,960	$ 32,288,737		32,288,737
Total mortgage loans held for portfolio, UPB		9,293,390	9,674,447		9,674,447
Directors' Financial Institutions
Related Party Transaction [Line Items]
Net Capital Stock Issuances To Directors' Financial Institutions			2,364	$ 629	3,574	629
Net Advances to Directors Financial Institutions			77,100	112,390	64,851	163,961
Capital Stock, including MRCS, par value		$ 50,810	$ 40,227		$ 40,227
Capital Stock, including MRCS, % of Total (percentage)		3.00%	2.00%		2.00%
Total advances, par value		$ 627,105	$ 573,208		$ 573,208
Advances, % of Total (percentage)		2.00%	2.00%		2.00%
Mortgage loans purchased from Directors' Financial Institutions			$ 10,570	$ 13,930	$ 14,047	$ 18,996