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, 2019

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	35-6001443
(State or other jurisdiction of incorporation)	(IRS employer identification number)
8250 Woodfield Crossing Blvd. Indianapolis, IN	46240
(Address of principal executive offices)	(Zip code)

(317) 465-0200

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x   Yes            o  No

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

o  Large accelerated filer	o  Accelerated filer	o  Emerging growth company
x Non-accelerated filer	o  Smaller reporting company

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the 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, 2019
Class B Stock, par value $100	22,485,561

Table of Contents		Page
		Number
	Special Note Regarding Forward-Looking Statements	3
PART I.	FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS (unaudited)
	Statements of Condition as of June 30, 2019 and December 31, 2018	4
	Statements of Income for the Three and Six Months Ended June 30, 2019 and 2018	5
	Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2019 and 2018	6
	Statements of Capital for the Three and Six Months Ended June 30, 2018 and 2019	7
	Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018	9
	Notes to Financial Statements:
	Note 1 - Summary of Significant Accounting Policies	11
	Note 2 - Recently Adopted Accounting Guidance	11
	Note 3 - Investment Securities	12
	Note 4 - Advances	15
	Note 5 - Mortgage Loans Held for Portfolio	16
	Note 6 - Allowance for Credit Losses	16
	Note 7 - Derivatives and Hedging Activities	19
	Note 8 - Consolidated Obligations	24
	Note 9 - Affordable Housing Program	25
	Note 10 - Capital	25
	Note 11 - Accumulated Other Comprehensive Income	26
	Note 12 - Segment Information	28
	Note 13 - Estimated Fair Values	29
	Note 14 - Commitments and Contingencies	32
	Note 15 - Related Party and Other Transactions	33
	Glossary of Terms	34
Item 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	Presentation	36
	Executive Summary	36
	Selected Financial Data	38
	Results of Operations and Changes in Financial Condition	39
	Operating Segments	45
	Analysis of Financial Condition	46
	Liquidity and Capital Resources	51
	Off-Balance Sheet Arrangements	53
	Critical Accounting Policies and Estimates	53
	Recent Accounting and Regulatory Developments	54
	Risk Management	55
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	58
Item 4.	CONTROLS AND PROCEDURES	59
PART II.	OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	59
Item 1A.	RISK FACTORS	59
Item 6.	EXHIBITS	60

As used in this Form 10-Q, unless the context otherwise requires, the terms "we," "us," "our," and the "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout that are defined herein or in the Glossary of Terms in Part I Item 1.

Special Note Regarding Forward-Looking Statements

Certain 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 or collateral we hold as security for the obligations of our members and counterparties;

• changes in 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 Michigan and Indiana, 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 federal government shutdowns, 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, GSEs 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;

• 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.

3

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, 2019		December 31, 2018
Assets:
Cash and due from banks	$	76,477	$	100,735
Interest-bearing deposits	656,051		1,210,705
Securities purchased under agreements to resell	4,249,710		3,212,726
Federal funds sold	2,858,000		3,085,000
Trading securities (Note 3)	3,192,790		—
Available-for-sale securities (Note 3)	8,395,767		7,703,596
Held-to-maturity securities (estimated fair values of $5,097,578 and $5,676,145, respectively) (Note 3)	5,088,423		5,673,720
Advances (Note 4)	33,890,767		32,727,668
Mortgage loans held for portfolio, net of allowance for loan losses of $(600) and $(600), respectively (Notes 5 and 6)	11,363,834		11,384,978
Accrued interest receivable	140,913		124,611
Premises, software, and equipment, net	37,443		37,198
Derivative assets, net (Note 7)	157,136		116,764
Other assets	42,482		33,998
Total assets	$	70,149,793	$	65,411,699
Liabilities:
Deposits	$	855,307	$	500,440
Consolidated obligations (Note 8):
Discount notes	22,645,457		20,895,262
Bonds	42,726,793		40,265,465
Total consolidated obligations, net	65,372,250		61,160,727
Accrued interest payable	190,180		179,728
Affordable Housing Program payable (Note 9)	40,247		40,747
Derivative liabilities, net (Note 7)	2,825		21,067
Mandatorily redeemable capital stock (Note 10)	174,193		168,876
Other liabilities	315,915		289,665
Total liabilities	66,950,917		62,361,250
Commitments and contingencies (Note 14)
Capital (Note 10):
Capital stock (putable at par value of $100 per share):
Class B-1 issued and outstanding shares: 20,482,199 and 19,306,333, respectively	2,048,220		1,930,633
Class B-2 issued and outstanding shares: 3,028 and 3,192, respectively	303		319
Total capital stock	2,048,523		1,930,952
Retained earnings:
Unrestricted	856,911		855,311
Restricted	236,142		222,499
Total retained earnings	1,093,053		1,077,810
Total accumulated other comprehensive income (Note 11)	57,300		41,687
Total capital	3,198,876		3,050,449
Total liabilities and capital	$	70,149,793	$	65,411,699

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

4

Federal Home Loan Bank of Indianapolis

Statements of Income

(Unaudited, $ amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Interest Income:
Advances	$	222,146		$	177,745		$	433,900		$	321,539
Interest-bearing deposits	5,421			3,871			9,687			7,079
Securities purchased under agreements to resell	25,846			15,715			45,660			20,812
Federal funds sold	20,134			7,633			40,515			19,921
Trading securities	10,654			—			13,455			—
Available-for-sale securities	56,786			47,924			106,267			88,490
Held-to-maturity securities	38,973			37,120			79,857			72,040
Mortgage loans held for portfolio	93,446			85,575			189,699			169,129
Other interest income	—			5			—			17
Total interest income	473,406			375,588			919,040			699,027
Interest Expense:
Consolidated obligation discount notes	139,139			90,099			258,513			160,457
Consolidated obligation bonds	268,849			211,068			531,858			389,296
Deposits	3,521			2,633			6,515			4,610
Mandatorily redeemable capital stock	2,353			1,885			5,071			4,630
Total interest expense	413,862			305,685			801,957			558,993
Net interest income	59,544			69,903			117,083			140,034
Provision for (reversal of) credit losses	(40		)	(357		)	14			(461		)
Net interest income after provision for credit losses	59,584			70,260			117,069			140,495
Other Income:
Net realized gains from sale of available-for-sale securities	—			32,407			—			32,407
Net realized losses from sale of held-to-maturity securities	—			(45		)	—			(45		)
Net gains on trading securities	16,585			—			20,656			—
Net gains (losses) on derivatives and hedging activities	(14,365		)	(2,988		)	(17,787		)	2,944
Service fees	202			280			395			505
Standby letters of credit fees	143			193			302			291
Other, net	903			461			2,918			393
Total other income	3,468			30,308			6,484			36,495
Other Expenses:
Compensation and benefits	13,424			12,881			27,557			25,858
Other operating expenses	7,146			6,932			13,120			13,350
Federal Housing Finance Agency	1,001			843			1,997			1,763
Office of Finance	1,009			1,240			2,145			2,431
Other	1,284			1,993			2,372			2,884
Total other expenses	23,864			23,889			47,191			46,286
Income before assessments	39,188			76,679			76,362			130,704
Affordable Housing Program assessments	4,154			7,856			8,143			13,533
Net income	$	35,034		$	68,823		$	68,219		$	117,171

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

5

Federal Home Loan Bank of Indianapolis

Statements of Comprehensive Income

(Unaudited, $ amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net income	$	35,034		$	68,823		$	68,219		$	117,171
Other Comprehensive Income:
Net change in unrealized gains (losses) on available-for-sale securities	(7,924		)	(12,581		)	18,981			9,972
Net non-credit portion of other-than-temporary impairment losses	—			(29,300		)	—			(29,271		)
Pension benefits, net	(3,715		)	(6,539		)	(3,368		)	(6,216		)
Total other comprehensive income (loss)	(11,639		)	(48,420		)	15,613			(25,515		)
Total comprehensive income	$	23,395		$	20,403		$	83,832		$	91,656

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

6

Federal Home Loan Bank of Indianapolis

Statements of Capital

Three Months Ended June 30, 2018 and 2019

(Unaudited, $ amounts and shares in thousands)

	Capital Stock					Retained Earnings								Accumulated Other Comprehensive Income			Total Capital
	Shares		Par Value			Unrestricted			Restricted		Total
Balance, March 31, 2018	18,809		$	1,880,945		$	800,447		$	193,221	$	993,668		$	134,311		$	3,008,924
Total comprehensive income						55,058			13,765		68,823			(48,420		)	20,403
Proceeds from issuance of capital stock	345		34,412														34,412
Shares reclassified to mandatorily redeemable capital stock, net	(232	)	(23,163		)												(23,163		)
Distributions on mandatorily redeemable capital stock						(5		)	—		(5		)				(5		)
Cash dividends on capital stock (4.25% annualized)						(19,612		)	—		(19,612		)				(19,612		)
Balance, June 30, 2018	18,922		$	1,892,194		$	835,888		$	206,986	$	1,042,874		$	85,891		$	3,020,959
Balance, March 31, 2019	19,853		$	1,985,330		$	855,314		$	229,136	$	1,084,450		$	68,939		$	3,138,719
Total comprehensive income						28,028			7,006		35,034			(11,639		)	23,395
Proceeds from issuance of capital stock	632		63,193														63,193
Shares reclassified to mandatorily redeemable capital stock, net	—		—														—
Distributions on mandatorily redeemable capital stock						(1		)	—		(1		)				(1		)
Cash dividends on capital stock (5.50% annualized)						(26,430		)	—		(26,430		)				(26,430		)
Balance, June 30, 2019	20,485		$	2,048,523		$	856,911		$	236,142	$	1,093,053		$	57,300		$	3,198,876

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

7

Federal Home Loan Bank of Indianapolis

Statements of Capital

Six Months Ended June 30, 2018 and 2019

(Unaudited, $ amounts and shares in thousands)

	Capital Stock					Retained Earnings								Accumulated Other Comprehensive Income			Total Capital
	Shares		Par Value			Unrestricted			Restricted		Total
Balance, December 31, 2017	18,578		$	1,857,766		$	792,783		$	183,551	$	976,334		$	111,406		$	2,945,506
Total comprehensive income						93,736			23,435		117,171			(25,515		)	91,656
Proceeds from issuance of capital stock	576		57,591														57,591
Shares reclassified to mandatorily redeemable capital stock, net	(232	)	(23,163		)												(23,163		)
Distributions on mandatorily redeemable capital stock						(5		)	—		(5		)				(5		)
Cash dividends on capital stock (5.50% annualized)						(50,626		)	—		(50,626		)				(50,626		)
Balance, June 30, 2018	18,922		$	1,892,194		$	835,888		$	206,986	$	1,042,874		$	85,891		$	3,020,959
Balance, December 31, 2018	19,310		$	1,930,952		$	855,311		$	222,499	$	1,077,810		$	41,687		$	3,050,449
Total comprehensive income						54,576			13,643		68,219			15,613			83,832
Proceeds from issuance of capital stock	1,196		119,680														119,680
Shares reclassified to mandatorily redeemable capital stock, net	(21	)	(2,109		)												(2,109		)
Distributions on mandatorily redeemable capital stock						(1		)	—		(1		)				(1		)
Cash dividends on capital stock (5.50% annualized)						(52,975		)	—		(52,975		)				(52,975		)
Balance, June 30, 2019	20,485		$	2,048,523		$	856,911		$	236,142	$	1,093,053		$	57,300		$	3,198,876

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

8

Federal Home Loan Bank of Indianapolis

Statements of Cash Flows

(Unaudited, $ amounts in thousands)

	Six Months Ended June 30,
	2019			2018
Operating Activities:
Net income	$	68,219		$	117,171
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation	65,681			40,516
Changes in net derivative and hedging activities	(279,398		)	131,793
Provision for (reversal of) credit losses	14			(461		)
Net gains on trading securities	(20,656		)	—
Net realized gains from sale of available-for-sale securities	—			(32,407		)
Net realized losses from sale of held-to-maturity securities	—			45
Changes in:
Accrued interest receivable	(24,853		)	(8,921		)
Other assets	(3,598		)	4,724
Accrued interest payable	10,213			22,467
Other liabilities	9,280			17,063
Total adjustments, net	(243,317		)	174,819
Net cash provided by (used in) operating activities	(175,098		)	291,990
Investing Activities:
Net change in:
Interest-bearing deposits	268,159			(206,548		)
Securities purchased under agreements to resell	(1,036,984		)	(1,320,066		)
Federal funds sold	227,000			(122,000		)
Trading securities:
Purchases	(3,172,134		)	—
Available-for-sale securities:
Proceeds from maturities	289,500			69,662
Proceeds from sales	—			203,841
Purchases	(595,818		)	(481,325		)
Held-to-maturity securities:
Proceeds from maturities	577,125			392,057
Proceeds from sales	—			41,226
Purchases	—			(352,231		)
Advances:
Principal repayments	230,990,466			165,153,875
Disbursements to members	(231,826,261		)	(165,114,221		)
Mortgage loans held for portfolio:
Principal collections	605,627			589,590
Purchases from members	(587,879		)	(1,137,284		)
Purchases of premises, software, and equipment	(3,605		)	(2,487		)
Loans to other Federal Home Loan Banks:
Principal repayments	—			400,000
Disbursements	—			(400,000		)
Net cash provided by (used in) investing activities	(4,264,804		)	(2,285,911		)

(continued)

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

9

Federal Home Loan Bank of Indianapolis

Statements of Cash Flows, continued

(Unaudited, $ amounts in thousands)

	Six Months Ended June 30,
	2019			2018
Financing Activities:
Changes in deposits	270,707			86,116
Net payments on derivative contracts with financing elements	1,296			(895		)
Net proceeds from issuance of consolidated obligations:
Discount notes	151,187,829			179,134,205
Bonds	13,680,362			8,868,317
Payments for matured and retired consolidated obligations:
Discount notes	(149,470,837		)	(177,520,886		)
Bonds	(11,323,625		)	(8,542,040		)
Proceeds from issuance of capital stock	119,680			57,591
Proceeds from issuance of mandatorily redeemable capital stock	3,704			—
Payments for redemption/repurchase of mandatorily redeemable capital stock	(497		)	(6,577		)
Dividend payments on capital stock	(52,975		)	(50,626		)
Net cash provided by (used in) financing activities	4,415,644			2,025,205
Net increase (decrease) in cash and due from banks	(24,258		)	31,284
Cash and due from banks at beginning of period	100,735			55,269
Cash and due from banks at end of period	$	76,477		$	86,553
Supplemental Disclosures:
Interest payments	$	728,901		$	498,725
Purchases of securities, traded but not yet settled	—			100,643
Affordable Housing Program payments	8,643			10,065
Capitalized interest on certain held-to-maturity securities	3,289			2,749
Par value of shares reclassified to mandatorily redeemable capital stock, net	2,109			23,163

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

10

Federal Home Loan Bank of Indianapolis

Notes to Financial Statements

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 1 - Summary of Significant Accounting Policies

Unless the context otherwise requires, the terms "we," "us," "our," and "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout these Notes to Financial Statements that are defined herein or in the Glossary of Terms.

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 have substantially duplicated the disclosures in the financial statements, and notes thereto, included in our 2018 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 2018 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 2018 Form 10-K in Note 1 - Summary of Significant Accounting Policies. See Note 2 - Recently Adopted and Issued Accounting Guidance for the changes effective January 1, 2019.

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 pertain to derivatives and hedging activities, fair value and provision for credit losses. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

Note 2 - Recently Adopted Accounting Guidance

Leases (ASU 2016-02). On February 25, 2016, the FASB issued guidance that requires a lessee, in an operating or finance lease, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. However, for a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize a lease asset and lease liability. Under previous guidance, a lessee was not required to recognize a lease asset and lease liability arising from an operating lease on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. Upon adoption, we reported higher assets and liabilities as a result of including right-of-use assets and lease liabilities on the statement of condition, but its effect on our financial condition, results of operations, and cash flows was not material.

Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08).On March 30, 2017, the FASB issued guidance to shorten the amortization period for certain callable debt securities purchased at a premium. Specifically, the guidance requires the premium to be amortized to the earliest call date. No change is required for securities purchased at a discount, which continue to be amortized to their contractual maturities.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.

11

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). On August 28, 2017, the FASB issued amended guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair-value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, net income, or cash flows. However, the adoption resulted in a prospective change in the statement of income in which the net losses resulting from the changes in the fair value of the hedging instruments and the changes in the fair value of the associated hedged items attributable to the hedged risk for qualifying fair-value hedging relationships for the three and six months ended June 30, 2019 of $8,575 and $22,451, respectively, are presented in interest income instead of other income.

Inclusion of SOFR OIS Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2018-16). On October 25, 2018, to facilitate the LIBOR to SOFR transition, the FASB issued guidance permitting the use of the OIS rate based on SOFR as an eligible U.S. benchmark interest rate for hedge accounting purposes.

This guidance was effective for the interim and annual periods beginning on January 1, 2019, concurrent with the adoption of ASU 2017-12. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.

Note 3 - Investment Securities

Trading Securities.

In January 2019, the Bank began purchasing U.S. Treasury securities to enhance its liquidity.

Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net gains on trading securities held at period end	$	16,585	$	—	$	20,656	$	—
Net gains (losses) on trading securities that sold/matured during the period	—		—		—		—
Net gains on trading securities	$	16,585	$	—	$	20,656	$	—

Available-for-Sale Securities.

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
GSE and TVA debentures	$	4,094,182	$	34,685	$	(126	)	$	4,128,741
GSE MBS	4,229,618		43,231		(5,823		)	4,267,026
Total AFS securities	$	8,323,800	$	77,916	$	(5,949	)	$	8,395,767
December 31, 2018
GSE and TVA debentures	$	4,239,622	$	37,458	$	—		$	4,277,080
GSE MBS	3,410,988		27,797		(12,269		)	3,426,516
Total AFS securities	$	7,650,610	$	65,255	$	(12,269	)	$	7,703,596

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal and, if applicable, fair-value hedging adjustments.

12

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	41,574	$	(126	)	$	—	$	—		$	41,574	$	(126	)
GSE MBS	996,946		(4,557		)	143,310		(1,266		)	1,140,256		(5,823		)
Total impaired AFS securities	$	1,038,520	$	(4,683	)	$	143,310	$	(1,266	)	$	1,181,830	$	(5,949	)
December 31, 2018
GSE MBS	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)
Total impaired AFS securities	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)

Realized Gains and Losses. There were no sales of AFS securities during the three and six months ended June 30, 2019. As of June 30, 2019, we had no intention of selling any 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.

During the three months ended June 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. Of the OTTI AFS securities sold in 2018, none were in an unrealized loss position. Proceeds from the AFS sales totaled $203,841, resulting in realized gains of $32,407 determined by the specific identification method.

Held-to-Maturity Securities.

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

			Gross		Gross
			Unrecognized		Unrecognized
	Amortized		Holding		Holding			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
MBS:
Other U.S. obligations - guaranteed MBS	$	3,284,393	$	7,004	$	(10,851	)	$	3,280,546
GSE MBS	1,804,030		15,422		(2,420		)	1,817,032
Total HTM securities	$	5,088,423	$	22,426	$	(13,271	)	$	5,097,578
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	3,468,882	$	11,034	$	(1,552	)	$	3,478,364
GSE MBS	2,204,838		7,673		(14,730		)	2,197,781
Total HTM securities	$	5,673,720	$	18,707	$	(16,282	)	$	5,676,145

⁽¹⁾  Carrying value equals amortized cost. Includes adjustments made to the cost basis of an investment for accretion, amortization and collection of principal.

13

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
MBS:
Other U.S. obligations - guaranteed MBS	$	1,060,651	$	(7,658	)	$	604,717	$	(3,193	)	$	1,665,368	$	(10,851	)
GSE MBS	112,610		(108		)	706,867		(2,312		)	819,477		(2,420		)
Total impaired HTM securities	$	1,173,261	$	(7,766	)	$	1,311,584	$	(5,505	)	$	2,484,845	$	(13,271	)
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	829,121	$	(873	)	$	417,952	$	(679	)	$	1,247,073	$	(1,552	)
GSE MBS	435,756		(890		)	716,647		(13,840		)	1,152,403		(14,730		)
Total impaired HTM securities	$	1,264,877	$	(1,763	)	$	1,134,599	$	(14,519	)	$	2,399,476	$	(16,282	)

Realized Gains and Losses. There were no sales of HTM securities during the three and six months ended June 30, 2019. As of June 30, 2019, we had no intention of selling any HTM 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.

During the three months ended June 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. The amortized cost of the HTM securities sold totaled $41,271. Proceeds from the HTM sales totaled $41,226, resulting in realized losses of $45 determined by the specific identification method. For each of these HTM securities, we had previously collected at least 85% of the principal outstanding at the time of acquisition due to prepayments or scheduled payments over the term. As such, the sales were considered maturities for purposes of security classification.

Other-Than-Temporary Impairment.

Evaluation Process and Results - 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, 2019 are considered temporary.

14

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 4 - Advances

The following table presents advances outstanding by redemption term.

	June 30, 2019			December 31, 2018
Redemption Term	Amount		WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,540	4.82	$	—		—
Due in 1 year or less	14,533,278		2.41	15,595,985			2.47
Due after 1 year through 2 years	2,772,361		2.22	2,957,861			2.19
Due after 2 years through 3 years	1,705,538		2.35	2,444,486			2.46
Due after 3 years through 4 years	2,798,794		2.42	2,139,695			2.36
Due after 4 years through 5 years	3,824,147		2.51	1,977,925			2.76
Thereafter	8,029,497		2.40	7,713,409			2.41
Total advances, par value	33,665,155		2.40	32,829,361			2.44
Fair-value hedging adjustments	223,316			(106,499		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	2,296			4,806
Total advances	$	33,890,767		$	32,727,668

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

	Earlier of Redemption or Next Call Date				Earlier of Redemption or Next Put Date
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Overdrawn demand and overnight deposit accounts	$	1,540	$	—	$	1,540	$	—
Due in 1 year or less	21,307,139		22,574,897		15,789,378		15,595,985
Due after 1 year through 2 years	2,189,212		2,061,411		3,665,361		3,682,461
Due after 2 years through 3 years	1,453,238		1,356,186		2,525,938		3,660,486
Due after 3 years through 4 years	2,075,604		1,581,905		3,319,299		2,547,995
Due after 4 years through 5 years	2,323,647		1,425,525		3,739,647		2,633,030
Thereafter	4,314,775		3,829,437		4,623,992		4,709,404
Total advances, par value	$	33,665,155	$	32,829,361	$	33,665,155	$	32,829,361

Credit Risk Exposure and Security Terms. At June 30, 2019 and December 31, 2018, our top five borrowers held 42% and 40%, respectively, of total advances outstanding, at par. As security for the advances to these and our other borrowers, we held, or had access to, collateral with an estimated fair value at June 30, 2019 and December 31, 2018 that was well in excess of the advances outstanding on those dates, respectively. For information related to our credit risk on advances and allowance methodology for credit losses, see Note 7 - Allowance for Credit Losses in our 2018 Form 10-K.

15

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 5 - Mortgage Loans Held for Portfolio

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

Term	June 30, 2019			December 31, 2018
Fixed-rate long-term mortgages	$	10,186,522		$	10,145,476
Fixed-rate medium-term (1) mortgages	931,624			992,059
Total mortgage loans held for portfolio, UPB	11,118,146			11,137,535
Unamortized premiums	248,770			251,778
Unamortized discounts	(2,348		)	(2,415		)
Fair-value hedging adjustments	(134		)	(1,320		)
Allowance for loan losses	(600		)	(600		)
Total mortgage loans held for portfolio, net	$	11,363,834		$	11,384,978

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

Type	June 30, 2019		December 31, 2018
Conventional	$	10,769,196	$	10,769,980
Government-guaranteed or -insured	348,950		367,555
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

Product	June 30, 2019		December 31, 2018
MPP	$	10,871,758	$	10,875,079
MPF Program	246,388		262,456
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

For information related to our credit risk on mortgage loans and allowance methodology for loan losses, see Note 6 - Allowance for Credit Losses.

Note 6 - 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 7 - Allowance for Credit Losses in our 2018 Form 10-K.

Conventional MortgageLoans.

Conventional MPP.The following table presents the activity in the LRA, which is reported in other liabilities.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2019			2018			2019			2018
Liability, beginning of period	$	176,637		$	153,274		$	174,096		$	148,715
Additions	3,920			8,325			6,990			13,471
Claims paid	(55		)	(79		)	(142		)	(249		)
Distributions to PFIs	(428		)	(181		)	(870		)	(598		)
Liability, end of period	$	180,074		$	161,339		$	180,074		$	161,339

16

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, 2019	Conventional		Government		Total
Past due:
30-59 days	$	36,192	$	8,740	$	44,932
60-89 days	9,371		1,643		11,014
90 days or more	10,709		2,023		12,732
Total past due	56,272		12,406		68,678
Total current	11,003,241		342,313		11,345,554
Total mortgage loans, recorded investment (1)	$	11,059,513	$	354,719	$	11,414,232
Delinquency Status as of December 31, 2018
Past due:
30-59 days	$	36,594	$	9,352	$	45,946
60-89 days	7,904		2,870		10,774
90 days or more	13,764		1,697		15,461
Total past due	58,262		13,919		72,181
Total current	11,003,243		359,758		11,363,001
Total mortgage loans, recorded investment (1)	$	11,061,505	$	373,677	$	11,435,182

Other Delinquency Statistics as of June 30, 2019	Conventional			Government			Total
In process of foreclosure(2)	$	4,877		$	—		$	4,877
Serious delinquency rate (3)	0.10		%	0.57		%	0.11		%
Past due 90 days or more still accruing interest (4)	$	9,777		$	2,023		$	11,800
On non-accrual status	$	1,577		$	—		$	1,577
Other Delinquency Statistics as of December 31, 2018
In process of foreclosure(2)	$	6,836		$	—		$	6,836
Serious delinquency rate (3)	0.12		%	0.45		%	0.14		%
Past due 90 days or more still accruing interest (4)	$	12,849		$	1,697		$	14,546
On non-accrual status	$	1,762		$	—		$	1,762

⁽¹⁾  The recorded investment in a loan is the UPB of the loan, adjusted for accrued interest, net of any deferred loan fees or costs, unamortized premiums or discounts (which may include the basis adjustment related to any gain or loss on a delivery commitment prior to being funded) and direct charge-offs. The recorded investment is not net of any valuation allowance.

⁽²⁾  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.

⁽³⁾  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.

⁽⁴⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the loan's delinquency status, we do not consider these loans to be on non-accrual status.

17

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Allowance for Loan Losses on Mortgage Loans. The following table presents the components of the allowance for loan losses, including the credit enhancement waterfall for MPP.

Components of Allowance for Loan Losses	June 30, 2019			December 31, 2018
MPP estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	4,952		$	3,505
Portion of estimated incurred losses recoverable from credit enhancements:
PMI	(769		)	(627		)
LRA (2)	(2,492		)	(1,137		)
SMI	(1,206		)	(1,256		)
Total portion recoverable from credit enhancements	(4,467		)	(3,020		)
Allowance for unrecoverable PMI/SMI	15			15
Allowance for MPP loan losses	500			500
Allowance for MPF Program loan losses	100			100
Allowance for loan losses	$	600		$	600

⁽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 total LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

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	2019			2018			2019			2018
Balance, beginning of period	$	600		$	850		$	600		$	850
Charge-offs	(21		)	(33		)	(75		)	(183		)
Recoveries	61			140			61			394
Provision for (reversal of) loan losses	(40		)	(357		)	14			(461		)
Balance, end of period	$	600		$	600		$	600		$	600

Allowance for Loan Losses by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	485	$	563
Conventional loans individually evaluated for impairment (1)	115		37
Total allowance for loan losses	$	600	$	600
Recorded Investment by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	11,045,639	$	11,048,075
Conventional loans individually evaluated for impairment (1)	13,874		13,430
Total recorded investment in conventional loans	$	11,059,513	$	11,061,505

⁽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, 2019 and December 31, 2018 of $1,395 and $1,552, 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, 2019 and December 31, 2018 includes $9 and $16, respectively, for these potential claims.

18

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 7 - Derivatives and 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.

Uncleared Derivatives. For certain of 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, 2019 was $660, for which we have posted collateral in cash, including accrued interest, of $996 in the normal course of business. If our credit rating had been lowered by an NRSRO (from an S&P equivalent of AA+ to AA), we would not have been required to deliver additional collateral to our uncleared derivative counterparties at June 30, 2019.

Cleared Derivatives. The clearinghouse determines margin requirements which are generally not based on credit ratings. 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, 2019, we were not required by our clearing agents to post any additional margin.

19

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Financial Statement Effect and Additional Financial Information.

Derivative Notional Amounts. We record derivative instruments, related cash collateral 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.

			Estimated Fair Value			Estimated Fair Value
	Notional		of Derivative			of Derivative
June 30, 2019	Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	37,134,290	$	48,789		$	309,583
Total derivatives designated as hedging instruments	37,134,290		48,789			309,583
Derivatives not designated as hedging instruments:
Interest-rate swaps	4,597,750		754			666
Swaptions	1,650,000		163			—
Interest-rate caps/floors	679,500		997			—
Interest-rate forwards	86,400		—			143
MDCs	85,748		163			5
Total derivatives not designated as hedging instruments	7,099,398		2,077			814
Total derivatives before adjustments	$	44,233,688	50,866			310,397
Netting adjustments and cash collateral (1)			106,270			(307,572		)
Total derivatives, net			$	157,136		$	2,825
December 31, 2018
Derivatives designated as hedging instruments:
Interest-rate swaps	$	35,135,617	$	174,990		$	123,331
Total derivatives designated as hedging instruments	35,135,617		174,990			123,331
Derivatives not designated as hedging instruments:
Interest-rate swaps	965,930		562			106
Swaptions	950,000		105			—
Interest-rate caps/floors	679,500		999			—
Interest-rate forwards	44,100		—			202
MDCs	43,753		146			23
Total derivatives not designated as hedging instruments	2,683,283		1,812			331
Total derivatives before adjustments	$	37,818,900	176,802			123,662
Netting adjustments and cash collateral (1)			(60,038		)	(102,595		)
Total derivatives, net			$	116,764		$	21,067

⁽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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

20

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

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 held or pledged.

	June 30, 2019						December 31, 2018
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	45,176		$	308,665		$	174,725		$	106,333
Cleared	5,527			1,584			1,931			17,104
Total gross recognized amount	50,703			310,249			176,656			123,437
Gross amounts of netting adjustments and cash collateral
Uncleared	(42,244		)	(305,988		)	(168,426		)	(85,491		)
Cleared	148,514			(1,584		)	108,388			(17,104		)
Total gross amounts of netting adjustments and cash collateral	106,270			(307,572		)	(60,038		)	(102,595		)
Net amounts after netting adjustments and cash collateral
Uncleared	2,932			2,677			6,299			20,842
Cleared	154,041			—			110,319			—
Total net amounts after netting adjustments and cash collateral	156,973			2,677			116,618			20,842
Derivative instruments not meeting netting requirements (1)	163			148			146			225
Total derivatives, at estimated fair value	$	157,136		$	2,825		$	116,764		$	21,067

⁽¹⁾  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.

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2019			2018			2019			2018
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	—		$	(715	)	$	—		$	6,609
Total net gain (loss) related to fair-value hedge ineffectiveness	—			(715		)	—			6,609
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(12,579		)	1,413			(12,086		)	1,585
Swaptions	(421		)	(177		)	(593		)	(235		)
Interest-rate caps/floors	553			117			(2		)	165
Interest-rate forwards	(580		)	(287		)	(1,219		)	961
Net interest settlements	(1,971		)	(1,766		)	(5,088		)	(2,404		)
MDCs	633			(300		)	1,201			(1,670		)
Total net gain (loss) on derivatives not designated as hedging instruments	(14,365		)	(1,000		)	(17,787		)	(1,598		)
Price alignment interest (1)	—			(1,273		)	—			(2,067		)
Net gains (losses) on derivatives and hedging activities in other income	$	(14,365	)	$	(2,988	)	$	(17,787	)	$	2,944

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts. For 2019, the portion related to derivatives not designated as hedging instruments is allocated to the applicable type of derivative.

21

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Net gain (loss) related to fair-value hedge ineffectiveness previously presented in other income is presented in net interest income for the three and six months ended June 30, 2019. Prior period amounts presented have not been reclassified. SeeNote 2 - Recently Adopted Accounting Guidance for more details.

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

Three Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	230,420		$	229,361		$	(54,303	)	$	405,478
Derivatives	(230,259		)	(236,170		)	52,376			(414,053		)
Net changes in fair value before price alignment interest	161			(6,809		)	(1,927		)	(8,575		)
Price alignment interest (1)	(55		)	(158		)	(59		)	(272		)
Net interest settlements on derivatives (2) (3)	20,226			12,128			(11,645		)	20,709
Amortization/accretion of gains (losses) on active hedging relationships	—			96			115			211
Net gains (losses) on qualifying fair-value hedging relationships	20,332			5,257			(13,516		)	12,073
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	5			—			(2,694		)	(2,689		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	20,337		$	5,257		$	(16,210	)	$	9,384

Three Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(21,767	)	$	(45,249	)	$	13,604		$	(53,412	)
Derivatives	22,335			44,764			(14,402		)	52,697
Net changes in fair value (4)	568			(485		)	(798		)	(715		)
Net interest settlements on derivatives (2) (3)	13,565			4,487			(12,510		)	5,542
Amortization/accretion of gains (losses) on active hedging relationships	—			54			92			146
Net gains (losses) on qualifying fair-value hedging relationships	14,133			4,056			(13,216		)	4,973
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(11		)	—			(1,597		)	(1,608		)
Less: net changes in fair value (4)	(568		)	485			798			715
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	13,554		$	4,541		$	(14,015	)	$	4,080

22

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Six Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	330,610		$	367,154		$	(98,875	)	$	598,889
Derivatives	(335,101		)	(385,206		)	98,967			(621,340		)
Net changes in fair value before price alignment interest	(4,491		)	(18,052		)	92			(22,451		)
Price alignment interest (1)	(305		)	(1,078		)	(6		)	(1,389		)
Net interest settlements on derivatives (2) (3)	43,458			25,611			(30,597		)	38,472
Amortization/accretion of gains (losses) on active hedging relationships	—			176			185			361
Net gains (losses) on qualifying fair-value hedging relationships	38,662			6,657			(30,326		)	14,993
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(2		)	—			(6,164		)	(6,166		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	38,660		$	6,657		$	(36,490	)	$	8,827

Six Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(122,515	)	$	(195,831	)	$	98,838		$	(219,508	)
Derivatives	125,943			199,091			(98,917		)	226,117
Net changes in fair value (4)	3,428			3,260			(79		)	6,609
Net interest settlements on derivatives (2) (3)	14,904			1,177			(11,246		)	4,835
Amortization/accretion of gains (losses) on active hedging relationships	—			140			181			321
Net gains (losses) on qualifying fair-value hedging relationships	18,332			4,577			(11,144		)	11,765
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(23		)	—			(2,298		)	(2,321		)
Less: net changes in fair value (4)	(3,428		)	(3,260		)	79			(6,609		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	14,881		$	1,317		$	(13,363	)	$	2,835

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

⁽²⁾  Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.

⁽³⁾  Excludes the interest income/expense of the respective hedged items recorded in net interest income.

⁽⁴⁾  Included in other income in 2018.

The following table presents the amortized cost of, and the related cumulative basis adjustments on, hedged items in qualifying fair-value hedging relationships.

June 30, 2019	Advances		Investments		CO Bonds
Amortized cost of hedged items (1)	$	16,125,040	$	8,323,801	$	14,448,619
Cumulative basis adjustments included in amortized cost:
For active fair-value hedging relationships	$	223,316	$	131,704	$	2,345
For discontinued fair-value hedging relationships	—		—		(107		)
Total cumulative fair-value hedging basis adjustments on hedged items (2)	$	223,316	$	131,704	$	2,238

⁽¹⁾  Includes only the portion of the amortized cost of the hedged items in qualifying fair-value hedging relationships.

⁽²⁾  Excludes any offsetting effect of the net fair value of the associated derivatives.

23

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 8 - 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 of the FHLBanks' outstanding consolidated obligations. The par values of the FHLBanks' outstanding consolidated obligations totaled $1.0 trillion at both June 30, 2019 and December 31, 2018. As provided by the Bank Act and Finance Agency regulations, consolidated obligations are backed only by the financial resources of all FHLBanks.

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

Discount Notes	June 30, 2019			December 31, 2018
Book value	$	22,645,457		$	20,895,262
Par value	$	22,716,335		$	20,952,650
Weighted average effective interest rate	2.37		%	2.34		%

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

	June 30, 2019				December 31, 2018
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	23,250,685		2.17	$	18,456,870		2.07
Due after 1 year through 2 years	6,795,495			2.18	8,823,285			2.30
Due after 2 years through 3 years	2,534,970			2.37	2,640,620			2.42
Due after 3 years through 4 years	2,958,750			2.36	3,024,000			2.33
Due after 4 years through 5 years	977,625			2.66	998,375			2.54
Thereafter	6,211,350			3.19	6,431,700			3.21
Total CO bonds, par value	42,728,875			2.36	40,374,850			2.36
Unamortized premiums	22,164				23,493
Unamortized discounts	(14,021		)		(15,992		)
Unamortized concessions	(12,463		)		(14,085		)
Fair-value hedging adjustments	2,238				(102,801		)
Total CO bonds	$	42,726,793			$	40,265,465

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

Redemption Feature	June 30, 2019		December 31, 2018
Non-callable / non-putable	$	28,030,875	$	27,462,850
Callable	14,698,000		12,912,000
Total CO bonds, par value	$	42,728,875	$	40,374,850

Year of Contractual Maturity or Next Call Date	June 30, 2019		December 31, 2018
Due in 1 year or less	$	35,446,685	$	30,331,870
Due after 1 year through 2 years	3,615,495		6,069,285
Due after 2 years through 3 years	805,970		1,043,620
Due after 3 years through 4 years	719,750		626,000
Due after 4 years through 5 years	352,625		503,375
Thereafter	1,788,350		1,800,700
Total CO bonds, par value	$	42,728,875	$	40,374,850

24

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 9 - 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	2019			2018			2019			2018
Liability at beginning of period	$	42,841		$	35,086		$	40,747		$	32,166
Assessment (expense)	4,154			7,856			8,143			13,533
Subsidy usage, net (1)	(6,748		)	(7,308		)	(8,643		)	(10,065		)
Liability at end of period	$	40,247		$	35,634		$	40,247		$	35,634

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

Note 10 - Capital

Mandatorily Redeemable Capital Stock.The following table presents the activity in our MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2019			2018			2019			2018
Liability at beginning of period	$	174,202		$	163,782		$	168,876		$	164,322
Reclassification from capital stock	—			23,163			2,109			23,163
Proceeds from issuance (1)	—			—			3,704			—
Redemptions/repurchases	(10		)	(6,037		)	(497		)	(6,577		)
Accrued distributions	1			5			1			5
Liability at end of period	$	174,193		$	180,913		$	174,193		$	180,913

⁽¹⁾  Represents a purchase of capital stock by a captive insurance company member, which is considered mandatorily redeemable as a result of the Final Membership Rule.

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, 2019		December 31, 2018
Year 1 (1)	$	819	$	1,316
Year 2	73		—
Year 3	8,576		8,649
Year 4	23,163		—
Year 5	5,670		26,723
Thereafter (2)	135,892		132,188
Total MRCS	$	174,193	$	168,876

⁽¹⁾  Balances at June 30, 2019 and December 31, 2018 include $806 and $1,304, 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 Class B stock held by certain captive insurance companies which begins immediately upon their respective terminations of membership no later than February 19, 2021, in accordance with the Final Membership Rule. However, upon their respective terminations, we currently intend to repurchase their excess stock (if any) in accordance with our capital plan, the balances of which at June 30, 2019 and December 31, 2018 totaled $61,642 and $57,938, respectively.

25

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

The following table presents the distributions related to MRCS.

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2019		2018		2019		2018
Recorded as interest expense	$	2,353	$	1,885	$	5,071	$	4,630
Recorded as distributions from retained earnings	1		5		1		5
Total	$	2,354	$	1,890	$	5,072	$	4,635

Capital Requirements. We are subject to three capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 13 - Capital in our 2018 Form 10-K. As presented in the following table, we were in compliance with those requirements at June 30, 2019 and December 31, 2018.

	June 30, 2019						December 31, 2018
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	720,732		$	3,315,769		$	786,925		$	3,177,638
Total regulatory capital	$	2,805,992		$	3,315,769		$	2,616,468		$	3,177,638
Total regulatory capital-to-asset ratio	4.00		%	4.73		%	4.00		%	4.86		%
Leverage capital	$	3,507,490		$	4,973,654		$	3,270,585		$	4,766,457
Leverage ratio	5.00		%	7.09		%	5.00		%	7.29		%

Note 11 - Accumulated Other Comprehensive Income

The following tables present a summary of the changes in the components of AOCI.

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, 2018	$	115,072		$	29,353		$	(53	)	$	(10,061	)	$	134,311
OCI before reclassifications:
Net change in unrealized gains (losses)	(12,581		)	389			—			—			(12,192		)
Net change in fair value	—			2,665			—			—			2,665
Accretion of non-credit losses	—			—			53			—			53
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—			(32,407		)	—			—			(32,407		)
Pension benefits, net	—			—			—			(6,539		)	(6,539		)
Total other comprehensive income (loss)	(12,581		)	(29,353		)	53			(6,539		)	(48,420		)
Balance, June 30, 2018	$	102,491		$	—		$	—		$	(16,600	)	$	85,891
Balance, March 31, 2019	$	79,891		$	—		$	—		$	(10,952	)	$	68,939
OCI before reclassifications:
Net change in unrealized gains (losses)	(7,924		)	—			—			—			(7,924		)
Reclassifications from OCI to net income:
Pension benefits, net	—			—			—			(3,715		)	(3,715		)
Total other comprehensive income (loss)	(7,924		)	—			—			(3,715		)	(11,639		)
Balance, June 30, 2019	$	71,967		$	—		$	—		$	(14,667	)	$	57,300

26

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, 2017	$	92,519	$	29,322		$	(51	)	$	(10,384	)	$	111,406
OCI before reclassifications:
Net change in unrealized gains (losses)	9,972		392			—			—			10,364
Net change in fair value	—		2,693			—			—			2,693
Accretion of non-credit losses	—		—			51			—			51
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—		(32,407		)	—			—			(32,407		)
Pension benefits, net	—		—			—			(6,216		)	(6,216		)
Total other comprehensive income (loss)	9,972		(29,322		)	51			(6,216		)	(25,515		)
Balance, June 30, 2018	$	102,491	$	—		$	—		$	(16,600	)	$	85,891
Balance, December 31, 2018	$	52,986	$	—		$	—		$	(11,299	)	$	41,687
OCI before reclassifications:
Net change in unrealized gains (losses)	18,981		—			—			—			18,981
Reclassifications from OCI to net income:
Pension benefits, net	—		—			—			(3,368		)	(3,368		)
Total other comprehensive income (loss)	18,981		—			—			(3,368		)	15,613
Balance, June 30, 2019	$	71,967	$	—		$	—		$	(14,667	)	$	57,300

27

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 12 - Segment Information

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2019								Three Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	44,218	$	15,326		$	59,544		$	53,672	$	16,231		$	69,903
Provision for (reversal of) credit losses	—		(40		)	(40		)	—		(357		)	(357		)
Other income (loss)	3,215		253			3,468			31,058		(750		)	30,308
Other expenses	20,400		3,464			23,864			20,433		3,456			23,889
Income before assessments	27,033		12,155			39,188			64,297		12,382			76,679
Affordable Housing Program assessments	2,939		1,215			4,154			6,618		1,238			7,856
Net income	$	24,094	$	10,940		$	35,034		$	57,679	$	11,144		$	68,823
	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	83,445	$	33,638		$	117,083		$	105,996	$	34,038		$	140,034
Provision for (reversal of) credit losses	—		14			14			—		(461		)	(461		)
Other income (loss)	6,400		84			6,484			37,400		(905		)	36,495
Other expenses	40,376		6,815			47,191			39,249		7,037			46,286
Income before assessments	49,469		26,893			76,362			104,147		26,557			130,704
Affordable Housing Program assessments	5,454		2,689			8,143			10,877		2,656			13,533
Net income	$	44,015	$	24,204		$	68,219		$	93,270	$	23,901		$	117,171

The following table presents the asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2019	$	58,785,959	$	11,363,834	$	70,149,793
December 31, 2018	54,026,721		11,384,978		65,411,699

28

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 13 - 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, 2019
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	76,477	$	76,477	$	76,477	$	—	$	—	$	—
Interest-bearing deposits	656,051		656,051		655,575		476		—		—
Securities purchased under agreements to resell	4,249,710		4,249,721		—		4,249,721		—		—
Federal funds sold	2,858,000		2,858,000		—		2,858,000		—		—
Trading securities	3,192,790		3,192,790		—		3,192,790		—		—
AFS securities	8,395,767		8,395,767		—		8,395,767		—		—
HTM securities	5,088,423		5,097,578		—		5,097,578		—		—
Advances	33,890,767		33,850,844		—		33,850,844		—		—
Mortgage loans held for portfolio, net	11,363,834		11,433,525		—		11,425,719		7,806		—
Accrued interest receivable	140,913		140,913		—		140,913		—		—
Derivative assets, net	157,136		157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		24,247		—		—		—
Liabilities:
Deposits	855,307		855,307		—		855,307		—		—
Consolidated obligations:
Discount notes	22,645,457		22,652,667		—		22,652,667		—		—
Bonds	42,726,793		43,014,071		—		43,014,071		—		—
Accrued interest payable	190,180		190,180		—		190,180		—		—
Derivative liabilities, net	2,825		2,825		—		310,397		—		(307,572		)
MRCS	174,193		174,193		174,193		—		—		—

29

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

	December 31, 2018
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	100,735	$	100,735	$	100,735	$	—	$	—	$	—
Interest-bearing deposits	1,210,705		1,210,705		1,210,039		666		—		—
Securities purchased under agreements to resell	3,212,726		3,212,728		—		3,212,728		—		—
Federal funds sold	3,085,000		3,085,000		—		3,085,000		—		—
AFS securities	7,703,596		7,703,596		—		7,703,596		—		—
HTM securities	5,673,720		5,676,145		—		5,676,145		—		—
Advances	32,727,668		32,669,145		—		32,669,145		—		—
Mortgage loans held for portfolio, net	11,384,978		11,212,978		—		11,202,984		9,994		—
Accrued interest receivable	124,611		124,611		—		124,611		—		—
Derivative assets, net	116,764		116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		21,122		—		—		—
Liabilities:
Deposits	500,440		500,440		—		500,440		—		—
Consolidated obligations:
Discount notes	20,895,262		20,895,446		—		20,895,446		—		—
Bonds	40,265,465		40,137,791		—		40,137,791		—		—
Accrued interest payable	179,728		179,728		—		179,728		—		—
Derivative liabilities, net	21,067		21,067		—		123,662		—		(102,595		)
MRCS	168,876		168,876		168,876		—		—		—

⁽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.

⁽²⁾  Included in other assets on the statement of condition.

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 17 - Estimated Fair Values in our 2018 Form 10-K. No changes have been made in the current year.

30

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, 2019	Total		Level 1		Level 2		Level 3		Adjustments (1)
Trading securities:
U.S. Treasury securities	$	3,192,790	$	—	$	3,192,790	$	—	$	—
Total trading securities	3,192,790		—		3,192,790		—		—
AFS securities:
GSE and TVA debentures	4,128,741		—		4,128,741		—		—
GSE MBS	4,267,026		—		4,267,026		—		—
Total AFS securities	8,395,767		—		8,395,767		—		—
Derivative assets:
Interest-rate related	156,973		—		50,703		—		106,270
Interest-rate forwards	—		—		—		—		—
MDCs	163		—		163		—		—
Total derivative assets, net	157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		—		—		—
Total assets at recurring estimated fair value	$	11,769,940	$	24,247	$	11,639,423	$	—	$	106,270
Derivative liabilities:
Interest-rate related	$	2,677	$	—	$	310,249	$	—	$	(307,572	)
Interest-rate forwards	143		—		143		—		—
MDCs	5		—		5		—		—
Total derivative liabilities, net	2,825		—		310,397		—		(307,572		)
Total liabilities at recurring estimated fair value	$	2,825	$	—	$	310,397	$	—	$	(307,572	)
Mortgage loans held for portfolio (3)	$	1,808	$	—	$	—	$	1,808	$	—
Total assets at non-recurring estimated fair value	$	1,808	$	—	$	—	$	1,808	$	—
December 31, 2018
AFS securities:
GSE and TVA debentures	$	4,277,080	$	—	$	4,277,080	$	—	$	—
GSE MBS	3,426,516		—		3,426,516		—		—
Total AFS securities	7,703,596		—		7,703,596		—		—
Derivative assets:
Interest-rate related	116,618		—		176,656		—		(60,038		)
MDCs	146		—		146		—		—
Total derivative assets, net	116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		—		—		—
Total assets at recurring estimated fair value	$	7,841,482	$	21,122	$	7,880,398	$	—	$	(60,038	)
Derivative liabilities:
Interest-rate related	$	20,842	$	—	$	123,437	$	—	$	(102,595	)
Interest-rate forwards	202		—		202		—		—
MDCs	23		—		23		—		—
Total derivative liabilities, net	21,067		—		123,662		—		(102,595		)
Total liabilities at recurring estimated fair value	$	21,067	$	—	$	123,662	$	—	$	(102,595	)
Mortgage loans held for portfolio (4)	$	1,734	$	—	$	—	$	1,734	$	—
Total assets at non-recurring estimated fair value	$	1,734	$	—	$	—	$	1,734	$	—

31

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.

⁽²⁾  Included in other assets on the statement of condition.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2019.

⁽⁴⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2018.

Note 14 - Commitments and Contingencies

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

	June 30, 2019
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	225,917	$	119,351	$	345,268
Unused lines of credit (1)	1,027,068		—		1,027,068
Commitments to fund additional advances (2)	116,960		—		116,960
Commitments to fund or purchase mortgage loans, net (3)	85,748		—		85,748

⁽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.

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.

Additional discussion of other commitments and contingencies is provided inNote 4 - Advances; Note 5 - Mortgage Loans Held for Portfolio; Note 7 - Derivatives and Hedging Activities; Note 8 - Consolidated Obligations; Note 10 - Capital; and Note 13 - Estimated Fair Values.

32

Notes to Financial Statements, continued

(Unaudited, $ amounts in thousands unless otherwise indicated)

Note 15 - Related Party and Other Transactions

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

	June 30, 2019				December 31, 2018
Balances with Directors' Financial Institutions	Par value		% of Total		Par value		% of Total
Capital stock	$	48,792	2	%	$	43,315	2	%
Advances	658,255		2	%	600,869		2	%

The par values at June 30, 2019 reflect changes in the composition of directors' financial institutions effective January 1, 2019, due to changes in board membership resulting from the 2018 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	2019		2018		2019		2018
Net capital stock issuances (redemptions and repurchases)	$	4,542	$	—	$	4,568	$	846
Net advances (repayments)	47,206		4,400		85,445		(92,900		)
Mortgage loan purchases	6,734		10,434		11,328		16,789

Transactions with Other FHLBanks. Occasionally, we loan or borrow short-term funds to/from other FHLBanks. The following table presents the loans to other FHLBanks.

	Three Months Ended June 30,					Six Months Ended June 30,
Loans to other FHLBanks	2019		2018			2019		2018
Disbursements	$	—	$	(100,000	)	$	—	$	(400,000	)
Principal repayments	—		100,000			—		400,000

There were no borrowings from other FHLBanks during the three and six months ended June 30, 2019 or 2018. There were no loans to or borrowings from other FHLBanks outstanding at June 30, 2019 or December 31, 2018.

33

GLOSSARY OF TERMS

ABS: Asset-Backed Securities

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

AFS: Available-for-Sale

Agency:GSE and Ginnie Mae

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

CDFI: Community Development Financial Institution

CE: Credit Enhancement

CFI: Community Financial Institution, an FDIC-insured depository institution with average total assets below an annually-adjusted limit established by the Director based on the Consumer Price Index

CFPB: Bureau of Consumer Financial Protection

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, as amended

DC Plan: Pentegra Defined Contribution Retirement Savings Plan for Financial Institutions, as amended

DDCP: Directors' Deferred Compensation Plan

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

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

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

LCH:LCH.Clearnet LLC

LIBOR: London Interbank Offered Rate

LRA: Lender Risk Account

34

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

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

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/or a similar frozen plan

SETP: Federal Home Loan Bank of Indianapolis 2016 Supplemental Executive Thrift Plan, as amended

SMI: Supplemental Mortgage Insurance

SOFR: Secured Overnight Financing Rate

TBA:To Be Announced, a forward contract for the purchase or sale of MBS at a future agreed-upon date for an established price

TDR: Troubled Debt Restructuring

TVA: Tennessee Valley Authority

UPB: Unpaid Principal Balance

VaR: Value at Risk

VIE: Variable Interest Entity

WAIR: Weighted-Average Interest Rate

35

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 2018 Form 10-K and the interim Financial Statements and related Notes to Financial Statements contained in Item 1. Financial Statements.

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 or, 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 the 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 serves as a financial intermediary between the capital markets and our members. We primarily make secured loans in the form of advances to our members and purchase whole mortgage loans from our members. Additionally, we purchase other investments and provide other financial services to our members. As an FHLBank, we are generally designed to expand and contract in asset size as the needs of our members and their communities change over time.

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 issuance 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 spread between the interest rate earned on our assets and the interest rate paid on our share of consolidated obligations. We use funding and hedging strategies to manage the related interest-rate risk.

Due to our cooperative structure and wholesale nature, we typically earn a narrow interest spread. Accordingly, our net income is relatively low compared to our total assets and capital.

We group our products and services within two operating segments: traditional and mortgage loans.

Economic Environment. The Bank’s financial performance is influenced by a number of regional and national economic and market factors, including the level and volatility of market interest rates, inflation or deflation, monetary policies, and the strength of housing markets.

The U.S. economy continued to grow through the second quarter of 2019. The duration of the current economic expansion remains at a record length. During the second quarter, the U.S. Gross Domestic Product (GDP) for first quarter 2019 was revised down to an annualized 3.1% from 3.2% in the initial estimate. This compares to an increase of 2.2% in the fourth quarter of 2018. According to the Department of Commerce, GDP rose in the first quarter as a result of increases from exports, personal consumption expenditures, non-residential fixed investment, private inventory investment, and state and local government spending. A preliminary release of GDP for the second quarter of 2019 is 2.1%.

Yields on U.S. Treasuries decreased during the second quarter of 2019 relative to the prevailing yields at the end of the first quarter. Over the course of 2019, certain maturity ranges in the U.S. Treasury yield curve were inverted, meaning the shorter-term bond yields exceeded the longer-term bond yields. This market condition has often been a precursor to slowing economic growth and is one of many leading economic indicators that are often used by economists in economic forecasting. At its meeting in July 2019, the FOMC announced its decision to lower the federal funds target rate by 25 bps to a range of 2.0% to 2.25%, noting that continued expansion of economic activity, strong labor market conditions, and inflation around 2% are the most likely outcomes, but uncertainties about this outlook remain.

36

Labor markets remained very strong, with unemployment rates near record lows. The long-time lack of wage growth accompanying low unemployment levels appears to be dissipating, as wage inflation begins to take root. Regardless of the causes, low unemployment and wage growth characteristically lead to higher consumer confidence and spending, helping to perpetuate economic growth. The national unemployment rate in 2019 has remained in the 3%-4% range, with the latest reported rate of 3.7% in June 2019.

Led by accommodative monetary and fiscal policy, low interest rates, and strong consumer demand, global economic growth and corporate earnings remained solid. Both the manufacturing and service sectors have continued to expand domestically. Tempering the strong economic reports of prior months is the potential of a continued and expanded global trade war, tight labor markets and other supply costs and constraints, and the repricing of assets and debt. According to the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, respondents "...expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed."

The housing market remained positive, but higher home prices have begun to impact overall sales despite the strength in the overall economy. The Mortgage Bankers Association expects housing demand to remain strong, combined with wage growth and home price growth moderation, leading to favorable housing conditions. Home mortgage refinance applications hit an all-time high in early 2019 for borrowers with large balances.

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 net interest margin volatility in our MPP and MBS portfolios. A flat or inverted yield curve, in which the difference between short-term interest rates and long-term interest rates is low, or negative, respectively, can have an unfavorable impact on our net interest margins.

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, including local economic factors, particularly relating to the housing and mortgage markets. Positive economic trends could 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 Advantage MPP. However, borrowing patterns between our insurance company and depository members tend to differ during various economic and market conditions, thereby easing the potential magnitude of core business fluctuations during business cycles. Member demand for liquidity during stressed market conditions can lead to advances growth.

37

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, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Statement of Condition:
Advances	$	33,891		$	32,830		$	32,728		$	33,567		$	33,888
Mortgage loans held for portfolio, net	11,364			11,398			11,385			11,294			10,888
Cash and short-term investments	7,840			6,787			7,610			8,056			6,279
Investment securities	16,677			14,985			13,378			13,240			13,069
Total assets	70,150			66,383			65,412			66,472			64,452
Discount notes	22,645			21,254			20,895			22,650			21,987
CO bonds	42,727			40,376			40,266			39,564			38,123
Total consolidated obligations	65,372			61,630			61,161			62,214			60,110
MRCS	174			174			169			164			181
Capital stock	2,049			1,985			1,931			1,901			1,892
Retained earnings	1,093			1,084			1,078			1,061			1,043
AOCI	57			70			42			95			86
Total capital	3,199			3,139			3,051			3,057			3,021
Statement of Income:
Net interest income	$	60		$	57		$	75		$	73		$	70
Provision for (reversal of) credit losses	—			—			—			—			—
Other income (loss)	3			3			(9		)	(7		)	31
Other expenses	24			23			23			23			24
AHP assessments	4			4			4			4			8
Net income	$	35		$	33		$	39		$	39		$	69
Selected Financial Ratios:
Net interest margin (1)	0.35		%	0.36		%	0.46		%	0.44		%	0.45		%
Return on average equity (2)	4.45		%	4.37		%	5.01		%	5.05		%	6.20		%
Return on average assets (2)	0.20		%	0.21		%	0.24		%	0.23		%	0.30		%
Weighted average dividend rate (3)	5.50		%	5.50		%	4.50		%	4.50		%	4.25		%
Dividend payout ratio (4)	75.44		%	79.99		%	55.66		%	54.18		%	28.50		%
Total capital ratio (5)	4.56		%	4.73		%	4.66		%	4.60		%	4.69		%
Total regulatory capital ratio (6)	4.73		%	4.89		%	4.86		%	4.70		%	4.83		%
Average equity to average assets	4.59		%	4.75		%	4.70		%	4.62		%	4.83		%

⁽¹⁾  Annualized net interest income expressed as a percentage of average interest-earning assets.

⁽²⁾  Annualized, as appropriate.

⁽³⁾  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.

⁽⁴⁾  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, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018 would be 80%, 69%, 55%, 31% and 41%, respectively.

⁽⁵⁾  Capital stock plus retained earnings and AOCI expressed as a percentage of total assets.

⁽⁶⁾  Capital stock plus retained earnings and MRCS expressed as a percentage of total assets.

38

Results of Operations and Changes in Financial Condition

Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018. 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,
Condensed Statements of Comprehensive Income	2019			2018			$ Change			% Change		2019		2018			$ Change			% Change
Net interest income	$	60		$	70		$	(10	)	(15	%)	$	117	$	140		$	(23	)	(16	%)
Provision for (reversal of) credit losses	—			—			—					—		—			—
Net interest income after provision for credit losses	60			70			(10		)	(15	%)	117		140			(23		)	(17	%)
Other income (loss)	3			31			(28		)			6		37			(31		)
Other expenses	24			24			—					47		46			1
Income before assessments	39			77			(38		)	(49	%)	76		131			(55		)	(42	%)
AHP assessments	4			8			(4		)			8		14			(6		)
Net income	35			69			(34		)	(49	%)	68		117			(49		)	(42	%)
Total other comprehensive income (loss)	(12		)	(48		)	36					16		(25		)	41
Total comprehensive income	$	23		$	21		$	2		15	%	$	84	$	92		$	(8	)	(9	%)

The decrease in net income for the three months ended June 30, 2019 compared to the corresponding period in the prior year was substantially due to the non-recurring net realized gain in the second quarter of 2018 on the sale of all of the Bank's private-label MBS. The decrease in net income for the six months ended June 30, 2019 compared to the corresponding period in the prior year was primarily due to the non-recurring net realized gain in 2018 on the sale of all of the Bank's private-label MBS and net losses resulting from derivatives and hedging activities. In general, we hold the derivatives and associated hedged items to the maturity, call, or put date. As a result, we expect to recover nearly all of the net losses on these financial instruments over the remaining contractual terms of the hedged items.

39

Changes in Financial Condition for the Six Months Ended June 30, 2019. The following table presents the comparative highlights of our changes in financial condition ($ amounts in millions).

Condensed Statements of Condition	June 30, 2019		December 31, 2018		$ Change			% Change
Advances	$	33,891	$	32,728	$	1,163		4	%
Mortgage loans held for portfolio, net	11,364		11,385		(21		)	—	%
Cash and short-term investments (1)	7,840		7,610		230			3	%
Investment securities and other assets (2)	17,055		13,689		3,366			25	%
Total assets	$	70,150	$	65,412	$	4,738		7	%
Consolidated obligations	$	65,372	$	61,161	$	4,211		7	%
MRCS	174		169		5			3	%
Other liabilities	1,405		1,031		374			36	%
Total liabilities	66,951		62,361		4,590			7	%
Capital stock	2,049		1,931		118			6	%
Retained earnings (3)	1,093		1,078		15			1	%
AOCI	57		42		15			37	%
Total capital	3,199		3,051		148			5	%
Total liabilities and capital	$	70,150	$	65,412	$	4,738		7	%
Total regulatory capital(4)	$	3,316	$	3,178	$	138		4	%

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

⁽²⁾  Includes trading, AFS and HTM securities.

⁽³⁾  Includes restricted retained earnings at June 30, 2019 and December 31, 2018 of $236 million and $222 million, respectively.

⁽⁴⁾  Total capital less AOCI plus MRCS.

The increase in total assets at June 30, 2019 compared to December 31, 2018 was primarily driven by additions to our liquidity portfolio.

The increase in total liabilities at June 30, 2019 compared to December 31, 2018 was attributable to a net increase in consolidated obligations to support the Bank's growth in assets.

The increase in total capital at June 30, 2019 compared to December 31, 2018 was primarily due to additional capital stock issued and net income, partially offset by dividends to shareholders.

Analysis of Results of Operations for the Three and Six Months Ended June 30, 2019 and 2018.

Net Interest Income.The decrease in net interest income for the three and six months ended June 30, 2019 compared to the corresponding periods in 2018 was primarily due to hedging losses resulting from derivatives in a fair-value relationship. In accordance with an amendment to accounting guidance effective January 1, 2019, hedging gains (losses) on qualifying fair- value hedging relationships are reported prospectively in net interest income instead of other income. As a result, net interest income after provision for credit losses for the three and six months ended June 30, 2019 was reduced by $9 million and $22 million, respectively. In general, we hold the derivatives and associated hedged items to the maturity, call, or put date. As a result, we expect to recover nearly all of the net losses on these financial instruments over the remaining contractual terms of the hedged items.

40

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,
	2019						2018
	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	$	7,533	$	46	2.45	%	$	5,211	$	24	1.80	%
Investment securities (2)	15,936		106		2.68	%	12,911		86		2.64	%
Advances (3)	32,651		222		2.73	%	32,701		177		2.18	%
Mortgage loans held for portfolio (3)	11,407		94		3.29	%	10,657		85		3.22	%
Other assets (interest-earning) (4)	954		6		2.28	%	951		4		1.63	%
Total interest-earning assets	68,481		474		2.77	%	62,431		376		2.41	%
Other assets (5)	291						467
Total assets	$	68,772					$	62,898
Liabilities and Capital:
Interest-bearing deposits	$	648	3		2.18	%	$	658	3		1.60	%
Discount notes	22,747		140		2.45	%	20,744		90		1.74	%
CO bonds (3)	41,270		269		2.61	%	37,781		211		2.24	%
MRCS	174		2		5.42	%	182		2		4.17	%
Total interest-bearing liabilities	64,839		414		2.56	%	59,365		306		2.07	%
Other liabilities	774						497
Total capital	3,159						3,036
Total liabilities and capital	$	68,772					$	62,898
Net interest income			$	60					$	70
Net spread on interest-earning assets less interest-bearing liabilities					0.21	%					0.34	%
Net interest margin (6)					0.35	%					0.45	%
Average interest-earning assets to interest-bearing liabilities	1.06						1.05

41

	Six Months Ended June 30,
	2019						2018
	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	$	7,081	$	86	2.45	%	$	4,991	$	41	1.65	%
Investment securities (2)	15,043		199		2.68	%	12,937		161		2.50	%
Advances (3)	32,065		434		2.73	%	32,972		321		1.97	%
Mortgage loans held for portfolio (3)	11,396		190		3.36	%	10,542		169		3.24	%
Other assets (interest-earning) (4)	865		10		2.26	%	946		7		1.51	%
Total interest-earning assets	66,450		919		2.79	%	62,388		699		2.26	%
Other assets (5)	331						461
Total assets	$	66,781					$	62,849
Liabilities and Capital:
Interest-bearing deposits	$	598	6		2.20	%	$	634	5		1.47	%
Discount notes	21,299		259		2.45	%	20,667		160		1.57	%
CO bonds (3)	40,789		532		2.63	%	37,879		389		2.07	%
MRCS	174		5		5.89	%	173		5		5.41	%
Total interest-bearing liabilities	62,860		802		2.57	%	59,353		559		1.90	%
Other liabilities	803						486
Total capital	3,118						3,010
Total liabilities and capital	$	66,781					$	62,849
Net interest income			$	117					$	140
Net spread on interest-earning assets less interest-bearing liabilities					0.22	%					0.36	%
Net interest margin (6)					0.36	%					0.45	%
Average interest-earning assets to interest-bearing liabilities	1.06						1.05

⁽¹⁾  Annualized. 

⁽²⁾  Consists of trading, AFS and HTM securities. The average balances of AFS securities are based on amortized cost; therefore, the resulting yields do not reflect changes in the estimated fair value that are a component of OCI. Interest income/expense includes the effects 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 and loans to other FHLBanks (if applicable). 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, grantor trust assets, and in 2018, 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.

Yields. The average yield on total interest-earning assets for the three months ended June 30, 2019 was 2.77%, an increase of 36 bps compared to the corresponding period in 2018, resulting primarily from increases in market interest rates that led to higher yields on advances and investments. The average cost of total interest-bearing liabilities was 2.56%, an increase of 49 bps due to higher funding costs on consolidated obligations. The net effect was a decrease in the net interest spread of 13 bps to 0.21% for the three months ended June 30, 2019 from 0.34% for the corresponding period in 2018. Including the hedging losses from derivatives in a fair-value relationship prospectively in net interest income for the three months ended June 30, 2019 caused 10 bps of that net decrease.

42

The average yield on total interest-earning assets for the six months ended June 30, 2019 was 2.79%, an increase of 53 bps compared to the corresponding period in 2018, resulting primarily from increases in market interest rates that led to higher yields on advances and investments. The average cost of total interest-bearing liabilities was 2.57%, an increase of 67 bps due to higher funding costs on consolidated obligations. The net effect was a decrease in the net interest spread of 14 bps to 0.22% for the six months ended June 30, 2019 from 0.36% for the corresponding period in 2018. Including the hedging losses from derivatives in a fair-value relationship prospectively in net interest income for the six months ended June 30, 2019 caused 7 bps of that net decrease.

Average Balances. The average balances outstanding of interest-earning assets for the three months ended June 30, 2019 increased by 10% compared to the corresponding period in 2018. The average balance of short-term investments increased by 45% in light of new liquidity guidance from the Finance Agency. The average balance of investment securities increased by 23% due to purchases of trading securities to enhance liquidity and purchases of AFS securities. The average balance of mortgage loans held for portfolio increased by 7% due to strong demand by our members for Advantage MPP. The increase in average interest-bearing liabilities was due to an increase in consolidated obligations outstanding to fund the increases in the average balances of interest-earning assets.

The average balances outstanding of interest-earning assets for the six months ended June 30, 2019 increased by 7% compared to the corresponding period in 2018. The average balance of short-term investments increased by 42% in light of new liquidity guidance from the Finance Agency. The average balance of investment securities increased by 16% due to purchases of trading securities to enhance liquidity and purchases of AFS securities. The average balance of mortgage loans held for portfolio increased by 8% due to strong demand by our members for Advantage MPP. These increases were partially offset by a decrease in the average balance of advances of 3%, generally driven by member funding needs. The increase in average interest-bearing liabilities was due to an increase in consolidated obligations outstanding to fund the increases in the average balances of interest-earning assets.

Provision for Credit Losses. The change in the provision for (reversal of) credit losses for the three and six months ended June 30, 2019 compared to the corresponding periods in 2018 was insignificant.

Other Income.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	2019			2018			2019			2018
Net realized gains from sale of available-for-sale securities	$	—		$	32		$	—		$	32
Net realized losses from sale of held-to-maturity securities	—			—			—			—
Net gains on trading securities	17			—			21			—
Net gains (losses) on derivatives and hedging activities	(15		)	(3		)	(18		)	3
Other	1			2			3			2
Total other income (loss)	$	3		$	31		$	6		$	37

The decrease in total other income for the three and six months ended June 30, 2019 compared to the corresponding periods in 2018 was substantially due to the non-recurring net realized gain in the second quarter of 2018 on the sale of all of the Bank's private-label MBS. See Notes to Financial Statements - Note 3 - Investment Securities for more information. The net gains on trading securities for the three and six months ended June 30, 2019 were substantially offset by net losses on the associated derivatives.

Net Gains (Losses) on Trading Securities. In January 2019, the Bank began purchasing fixed-rate U.S. Treasury securities to enhance liquidity. Those securities are classified as trading securities and are recorded at fair value, with changes in fair value reported in other income. There are a number of factors that affect the fair value of these securities, including changes in interest rates, the passage of time, and volatility. These trading securities are being economically hedged, so that over time the gains (losses) on these securities will be generally offset by the change in fair value of the associated derivatives.

43

Net Gains (Losses) on Derivatives and Hedging Activities. In prior periods, for qualifying fair-value hedging relationships, the differences between the change in the estimated fair value of the hedged items attributable to the hedged risk and the change in the estimated fair value of the associated interest-rate swaps, i.e., hedge ineffectiveness, were reported in other income. Beginning January 1, 2019, such differences are reported in net interest income. See Notes to Financial Statements - Note 2 - Recently Adopted Accounting Guidance for more information. As a result, the net gains (losses) on derivatives and hedging activities reported in other income in 2019 substantially consist of gains (losses) on derivatives not designated as hedging instruments.

The table below presents the effect of derivatives and hedging activities that are reported in either net interest income or other income ($ amounts in millions).

	Three Months Ended June 30,						Six Months Ended June 30,
Components	2019			2018			2019			2018
Net changes in fair value (1)	$	(9	)	$	—		$	(22	)	$	7
Price alignment interest (2)	—			(1		)	(1		)	(2		)
Amortization/accretion of gains (losses) on hedging relationships	(2		)	(2		)	(6		)	(2		)
Net gains on trading securities, net of swaps	3			—			4			—
Other economic hedging gains (losses)	1			—			4			1
Total gains (losses) from derivatives and hedging activities before net interest settlements	(7		)	(3		)	(21		)	4
Net interest settlements on derivatives (3)	19			4			33			2
Total gains (losses) from derivatives and hedging activities	$	12		$	1		$	12		$	6

⁽¹⁾  Relates to derivatives and hedged items in qualifying fair-value hedging relationships.

⁽²⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

⁽³⁾  Represents interest income/expense on derivatives. Excludes interest income/expense on associated hedged items.

The changes in fair value for the three and six months ended June 30, 2019 and 2018 were primarily due to marginal mismatches in durations on, and the increase in volume of, swapped GSE MBS, particularly Fannie Mae Delegated Underwriting and Servicing (DUS) MBS. As a result of issuing floating rate notes to fund these MBS purchases instead of swapped fixed-rate notes, the funding and operational costs have been reduced but there is less offsetting hedge impact, resulting in higher hedging gains or losses.

However, since we generally hold derivatives and hedged items to the maturity, call or put date, we expect to recover nearly all of the net hedging losses on our financial instruments over the remaining contractual terms of the hedged items.

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	2019		2018		2019		2018
Compensation and benefits	$	14	$	13	$	28	$	26
Other operating expenses	7		7		13		13
Finance Agency and Office of Finance expenses	2		2		4		4
Other	1		2		2		3
Total other expenses	$	24	$	24	$	47	$	46

The increase in total other expenses for the six months ended June 30, 2019 compared to the corresponding period in 2018 was due to increases in compensation, primarily driven by salary increases and higher head count.

44

Total Other Comprehensive Income (Loss). Total OCI for the three months ended June 30, 2019 primarily consisted of unrealized losses on AFS securities. Total OCI for the six months ended June 30, 2019 consisted substantially of unrealized gains on AFS securities. Total OCI for the three and six months ended June 30, 2018 consisted substantially of the reduction in AOCI as a result of the recognition of the gain on the sale of our private-label MBS.

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, interest-bearing demand deposit accounts, and investment 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	2019		2018		2019		2018
Net interest income	$	44	$	54	$	83	$	106
Provision for (reversal of) credit losses	—		—		—		—
Other income (loss)	3		31		6		37
Other expenses	20		20		40		39
Income before assessments	27		65		49		104
AHP assessments	3		7		5		11
Net income	$	24	$	58	$	44	$	93

The decrease in net income for the traditional segment for the three and six months ended June 30, 2019 compared to the corresponding periods in 2018 was primarily due to the non-recurring net realized gain on the sale of all of the Bank's private-label MBS in 2018 and, for the six months, net losses resulting from derivatives and hedging activities. In general, we hold the derivatives and associated hedged items to the maturity, call, or put date. As a result, we expect to recover nearly all of the net losses on these financial instruments over the remaining contractual terms of the hedged items.

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	2019		2018		2019		2018
Net interest income	$	16	$	16	$	34	$	34
Provision for (reversal of) credit losses	—		—		—		—
Other income (loss)	—		—		—		—
Other expenses	4		4		7		7
Income before assessments	12		12		27		27
AHP assessments	1		1		3		3
Net income	$	11	$	11	$	24	$	24

Net income for the mortgage loans segment for the three and six months ended June 30, 2019 compared to the corresponding periods in 2018 was relatively unchanged.

45

Analysis of Financial Condition

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

	June 30, 2019				December 31, 2018
Major Asset Categories	Carrying Value		% of Total		Carrying Value		% of Total
Advances	$	33,891	48	%	$	32,728	50	%
Mortgage loans held for portfolio, net	11,364		16	%	11,385		17	%
Cash and short-term investments	7,840		11	%	7,610		12	%
Trading securities	3,193		5	%	—		—	%
Other investment securities	13,484		19	%	13,378		21	%
Other assets (1)	378		1	%	311		—	%
Total assets	$	70,150	100	%	$	65,412	100	%

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

Total assets were $70.1 billion as of June 30, 2019, a net increase of $4.7 billion, or 7%, compared to December 31, 2018, primarily driven by additions to our liquidity portfolio.

Advances. Advances at carrying value totaled $33.9 billion at June 30, 2019, a net increase of $1.2 billion, or 4%, compared to December 31, 2018.

The par value of advances to depository members, comprising commercial banks, savings institutions and credit unions, increased by 2%. The par value of advances to insurance company members increased by 3%. Advances to depository institutions, as a percent of total advances outstanding at par value, were 53% at June 30, 2019, while advances to insurance companies were 47%.

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

	June 30, 2019				December 31, 2018
Borrower Type	Par Value		% of Total		Par Value		% of Total
Depository institutions:
Commercial banks and savings institutions	$	14,821	45	%	$	14,019	43	%
Credit unions	2,627		8	%	3,099		10	%
Total depository institutions	17,448		53	%	17,118		53	%
Insurance companies:
Captive insurance companies (1)	2,842		8	%	2,936		9	%
Other insurance companies	13,102		39	%	12,491		38	%
Total insurance companies	15,944		47	%	15,427		47	%
Total members	33,392		100	%	32,545		100	%
Former members	273		—	%	284		—	%
Total advances	$	33,665	100	%	$	32,829	100	%

⁽¹⁾   Memberships must terminate no later than February 19, 2021. See certain restrictions on and maturities of advances in Notes to Financial Statements - Note 5 - Advances in the 2018 Form 10-K.

Our advance portfolio is well-diversified with advances to commercial banks and savings institutions, credit unions, and insurance companies. Borrowing patterns between our insurance company and depository members tend to differ during various economic and market conditions, thereby easing the potential magnitude of core business fluctuations during business cycles.

46

Our advance portfolio includes fixed- and variable-rate advances, as well as callable or prepayable and putable advances. Prepayable advances may be prepaid on specified dates without incurring repayment 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 of the advance.

The following table presents the par value of advances outstanding by product type and redemption term, some of which contain call or put options ($ amounts in millions).

	June 30, 2019				December 31, 2018
Product Type and Redemption Term	Par Value		% of Total		Par Value		% of Total
Fixed-rate:
Fixed-rate (1)
Due in 1 year or less	$	13,751	41	%	$	14,670	45	%
Due after 1 year	7,556		23	%	6,927		21	%
Total	21,307		64	%	21,597		66	%
Callable or prepayable
Due in 1 year or less	—		—	%	10		—	%
Due after 1 year	49		—	%	39		—	%
Total	49		—	%	49		—	%
Putable
Due in 1 year or less	—		—	%	—		—	%
Due after 1 year	4,629		14	%	3,103		10	%
Total	4,629		14	%	3,103		10	%
Other (2)
Due in 1 year or less	127		—	%	133		—	%
Due after 1 year	132		—	%	140		—	%
Total	259		—	%	273		—	%
Total fixed-rate	26,244		78	%	25,022		76	%
Variable-rate:
Variable-rate (1)
Due in 1 year or less	46		—	%	349		1	%
Due after 1 year	—		—	%	—		—	%
Total	46		—	%	349		1	%
Callable or prepayable
Due in 1 year or less	610		2	%	435		1	%
Due after 1 year	6,764		20	%	7,023		22	%
Total	7,374		22	%	7,458		23	%
Total variable-rate	7,420		22	%	7,807		24	%
Overdrawn demand and overnight deposit accounts	1		—	%	—		—	%
Total advances	$	33,665	100	%	$	32,829	100	%

⁽¹⁾   Includes advances without call or put options.

⁽²⁾  Includes hybrid, fixed-rate amortizing/mortgage matched advances.

Advances due in one year or less decreased from 47% of the total outstanding, at par, at December 31, 2018 to 43% of the total outstanding, at par, at June 30, 2019, reflecting members' decreased demand for short-term funding. See Notes to Financial Statements - Note 4 - Advances for additional information.

47

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

	June 30, 2019				December 31, 2018
Product Type	UPB		% of Total		UPB		% of Total
MPP:
Conventional Advantage	$	9,944	89	%	$	9,874	89	%
Conventional Original	631		6	%	688		6	%
FHA	297		3	%	314		3	%
Total MPP	10,872		98	%	10,876		98	%
MPF Program:
Conventional	194		2	%	208		2	%
Government	52		—	%	54		—	%
Total MPF Program	246		2	%	262		2	%
Total mortgage loans held for portfolio	$	11,118	100	%	$	11,138	100	%

The decrease in the UPB of mortgage loans held for portfolio was due to repayments of outstanding MPP and MPF Program loans exceeding purchases under Advantage MPP. 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, which we have estimated to be 24 months. Our estimate of MPP losses remaining after borrower's equity, but before credit enhancements, was $5 million at June 30, 2019 and $4 million at December 31, 2018. After consideration of the portion recoverable under the associated credit enhancements, the resulting allowance for MPP loan losses was less than $1 million at both June 30, 2019 and December 31, 2018. For more information, see Notes to Financial Statements - Note 7 - Allowance for Credit Lossesin our 2018 Form 10-K.

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

Components	June 30, 2019		December 31, 2018		Change
Cash and short-term investments:
Cash and due from banks	$	76	$	101	$	(25	)
Interest-bearing deposits	656		1,211		(555		)
Securities purchased under agreements to resell	4,250		3,213		1,037
Federal funds sold	2,858		3,085		(227		)
Total cash and short-term investments	7,840		7,610		230
Trading securities:
U.S. Treasury obligations	3,193		—		3,193
Total trading securities	3,193		—		3,193
Other investment securities:
AFS securities:
GSE and TVA debentures	4,129		4,277		(148		)
GSE MBS	4,267		3,427		840
Total AFS securities	8,396		7,704		692
HTM securities:
Other U.S. obligations - guaranteed MBS	3,284		3,469		(185		)
GSE MBS	1,804		2,205		(401		)
Total HTM securities	5,088		5,674		(586		)
Total other investment securities	13,484		13,378		106
Total cash and investments, carrying value	$	24,517	$	20,988	$	3,529

48

Cash and Short-Term Investments.Cash andshort-term investments totaled $7.8 billion at June 30, 2019, an increase of 3% compared to December 31, 2018. Cash and short-term investments as a percent of total assets totaled 11% at June 30, 2019, compared to 12% at December 31, 2018.

Trading Securities.In January 2019, the Bank began purchasing U.S. Treasury securities as trading securities to enhance its liquidity in light of new liquidity guidance from the Finance Agency. Such securities totaled $3.2 billion at June 30, 2019, of which $1.7 billion is due in one year or less and $1.5 billion is due after one year through two years.

As a result, the liquidity portfolio at June 30, 2019 totaled $11.0 billion, which represented 16% of total assets and an increase of $3.4 billion, or 45%, from December 31, 2018. Additionally, the mix has changed, with U.S. Treasuries representing 29% of the liquidity portfolio at June 30, 2019.

Other Investment Securities. AFS securities totaled $8.4 billion at June 30, 2019, a net increase of 9% compared to $7.7 billion at December 31, 2018. The increase resulted 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 totaled $72 million at June 30, 2019, a net increase of $19 million compared to December 31, 2018, primarily due to changes in interest rates, credit spreads and volatility.

HTM securities totaled $5.1 billion at June 30, 2019, a net decrease of 10% compared to $5.7 billion at December 31, 2018. At June 30, 2019, the estimated fair value of our HTM securities totaled $5.1 billion, of which $2.5 billion was in an unrealized loss position, an increase of 4% from $2.4 billion at December 31, 2018, primarily due to changes in interest rates, credit spreads and volatility. The associated unrealized losses decreased from $16 million at December 31, 2018 to $13 million at June 30, 2019.

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

	June 30, 2019				December 31, 2018
Interest-Rate Payment Terms	Amortized Cost		% of Total		Amortized Cost		% of Total
AFS Securities:
Total non-MBS fixed-rate	$	4,094	49	%	$	4,240	55	%
Total MBS fixed-rate	4,230		51	%	3,411		45	%
Total AFS securities	$	8,324	100	%	$	7,651	100	%
HTM Securities:
MBS:
Fixed-rate	$	891	18	%	$	936	16	%
Variable-rate	4,197		82	%	4,738		84	%
Total MBS	5,088		100	%	5,674		100	%
Total HTM securities	$	5,088	100	%	$	5,674	100	%
Total other investment securities:
Total fixed-rate	$	9,215	69	%	$	8,587	64	%
Total variable-rate	4,197		31	%	4,738		36	%
Total other investment securities	$	13,412	100	%	$	13,325	100	%

The mix of fixed- vs. variable-rate AFS and HTM securities at June 30, 2019 was slightly higher compared to December 31, 2018, primarily due to purchases of fixed-rate MBS. However, 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.

49

Total Liabilities. Total liabilities were $67.0 billion at June 30, 2019, a net increase of 7% compared to December 31, 2018, substantially due to an increase in consolidated obligations.

Deposits (Liabilities). Total deposits were $855 million at June 30, 2019, a net increase of 71% compared to December 31, 2018. 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 carrying value of consolidated obligations outstanding at June 30, 2019 totaled $65.4 billion, a net increase of $4.2 billion, or 7%, from December 31, 2018. This increase supported the Bank's growth in assets.

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

	June 30, 2019				December 31, 2018
By Term	Par Value		% of Total		Par Value		% of Total
Consolidated obligations due in 1 year or less:
Discount notes	$	22,716	35	%	$	20,953	34	%
CO bonds	23,251		35	%	18,457		30	%
Total due in 1 year or less	45,967		70	%	39,410		64	%
Long-term CO bonds	19,478		30	%	21,918		36	%
Total consolidated obligations	$	65,445	100	%	$	61,328	100	%

The percentage due in 1 year or less increased from 64% at December 31, 2018 to 70% at June 30, 2019 as a result of seeking to maintain a sufficient 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). For more detailed information regarding contractual maturities of certain of our financial assets and liabilities, see Notes to Financial Statements - Note 3 - Investment Securities, Note 4 - Advances, and Note 8 - Consolidated Obligations.

The following table presents our variable-rate CO Bonds outstanding by interest-rate index ($ amounts in millions).

	June 30, 2019
Interest-Rate Index	Par Value		% of Total
LIBOR-indexed variable-rate
Due in 2019	$	7,935	47	%
Due in 2020	6,960		42	%
Due in 2021	—		—	%
Total LIBOR-indexed variable-rate	14,895		89	%
SOFR-indexed variable-rate
Due in 2019	966		6	%
Due in 2020	682		4	%
Due in 2021	100		1	%
Total SOFR-indexed variable-rate	1,748		11	%
Total variable-rate CO Bonds	$	16,643	100	%

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Derivatives.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, 2019		December 31, 2018
Advances	$	15,902	$	13,980
Investments	12,062		8,562
Mortgage loans	1,822		1,038
CO bonds	14,448		14,239
Total notional	$	44,234	$	37,819

The increase in the total notional amount during the six months ended June 30, 2019 of 17% was primarily due to purchases of U.S. Treasuries in economic hedging relationships.

The following table presents the cumulative impact of fair-value hedging basis adjustments on our statements of condition ($ amounts in millions).

June 30, 2019	Advances			Investments			CO Bonds			Total
Cumulative fair-value hedging basis adjustments on hedged items	$	223		$	132		$	(2	)	$	353
Estimated fair value of associated derivatives, net	(221		)	(173		)	11			(383		)
Net cumulative fair-value hedging basis adjustments	$	2		$	(41	)	$	9		$	(30	)

Total Capital. Total capital at June 30, 2019 was $3.2 billion, a net increase of $148 million, or 5%, compared to December 31, 2018, primarily due to additional capital stock issued and net income, partially offset by dividends to shareholders.

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

Components	June 30, 2019		December 31, 2018
Capital stock	64	%	63	%
Retained earnings	34	%	36	%
AOCI	2	%	1	%
Total GAAP capital	100	%	100	%

The components of GAAP capital were relatively unchanged at June 30, 2019 compared to December 31, 2018.

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

Reconciliation	June 30, 2019			December 31, 2018
Total GAAP capital	$	3,199		$	3,051
Exclude: AOCI	(57		)	(42		)
Add: MRCS	174			169
Total regulatory capital	$	3,316		$	3,178

Even though regulatory capital increased in 2019, the regulatory capital ratio declined from 4.86% at December 31, 2018 to 4.73% at June 30, 2019, primarily due to the significant increase in liquid assets which generate lower returns.

Liquidity and Capital Resources

Liquidity.Our primary sources of liquidity are holdings of liquid assets, comprised of cash, short-term investments, and trading securities, as well as the issuance of consolidated obligations.

Our cash and short-term investments totaled $7.8 billion at June 30, 2019. Our short-term investments generally consist of high-quality financial instruments, many of which mature overnight. Our trading securities totaled $3.2 billion at June 30, 2019 and consisted solely of U.S. Treasury securities. As a result, our liquidity portfolio at June 30, 2019 totaled $11.0 billion or 16% of total assets.

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During the six months ended June 30, 2019, we maintained sufficient access to funding; our net proceeds from the issuance of consolidated obligations totaled $164.9 billion. However, to protect us against temporary disruptions in access to the debt markets, the Finance Agency currently requires us to: (i) maintain contingent liquidity sufficient to cover, at a minimum, ten calendar days of inability to issue consolidated obligations; (ii) have available at all times an amount greater than or equal to our members' current deposits invested in specific assets; (iii) maintain, in the aggregate, unpledged qualifying assets in an amount at least equal to our participation in total consolidated obligations outstanding; and (iv) maintain, through short-term investments, an amount at least equal to our anticipated cash outflows under hypothetical adverse scenarios. For information concerning the Finance Agency’s liquidity guidance, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Recent Accounting and Regulatory Developments - Legislative and Regulatory Developments - Advisory Bulletin in our 2018 Form 10-K.

Portions of the Finance Agency's liquidity guidance Advisory Bulletin relating to funding gap measures and the standby letters of credit component of the base case liquidity provisions have been implemented. Phased-in measures for the cash flow component of the base case liquidity provisions began on March 31, 2019 with full implementation planned as required by December 31, 2019.

New or amended regulatory guidance from the Finance Agency could continue to increase the amount and change the characteristics of liquidity that we are required to maintain. We have not identified any other trends, demands, commitments, or events that are likely to materially increase or decrease our liquidity.

Changes in Cash Flow. Net cash used in operating activities for the six months ended June 30, 2019 was $175 million, compared to net cash provided by operating activities for the six months ended June 30, 2018 of $292 million. The decrease of $467 million was substantially due to the fluctuation in variation margin payments on cleared derivatives. Such payments are treated by the clearinghouses as daily settled contracts.

Capital Resources.

Total Regulatory Capital. The following table provides a breakdown of our outstanding capital stock and MRCS ($ amounts in millions).

	June 30, 2019				December 31, 2018
By Type of Member Institution	Amount		% of Total		Amount		% of Total
Capital Stock:
Depository institutions:
Commercial banks and savings institutions	$	1,051	47	%	$	985	47	%
Credit unions	274		12	%	263		12	%
Total depository institutions	1,325		59	%	1,248		59	%
Insurance companies	724		33	%	683		33	%
CDFIs	—		—	%	—		—	%
Total capital stock, putable at par value	2,049		92	%	1,931		92	%
MRCS:
Captive insurance companies	136		6	%	132		6	%
Former members (1)	38		2	%	37		2	%
Total MRCS	174		8	%	169		8	%
Total regulatory capital stock	$	2,223	100	%	$	2,100	100	%

⁽¹⁾  Balances at both June 30, 2019 and December 31, 2018 include $1 million of MRCS 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.

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Excess Capital Stock.The following table presents the composition of our excess capital stock ($ amounts in millions).

Components	June 30, 2019			December 31, 2018
Member capital stock not subject to outstanding redemption requests	$	474		$	450
Member capital stock subject to outstanding redemption requests	1			1
MRCS	34			25
Total excess capital stock	$	509		$	476
Excess stock as a percentage of regulatory capital stock	23		%	23		%

The increase in excess stock during the six months ended June 30, 2019 resulted from advance activity.

Capital Distributions.On July 25, 2019, our board of directors declared a cash dividend of 5.50% (annualized) on our Class B-1 capital stock and 4.40% (annualized) on our Class B-2 capital stock.

Adequacy of Capital.We must maintain sufficient permanent capital to meet the combined credit risk, market risk and operations risk components of the risk-based capital requirement. As presented in the following table, we were in compliance with the risk-based capital requirement at June 30, 2019 and December 31, 2018 ($ amounts in millions).

Risk-Based Capital Components	June 30, 2019		December 31, 2018
Credit risk	$	312	$	307
Market risk	243		298
Operations risk	166		182
Total risk-based capital requirement	$	721	$	787
Permanent capital	$	3,316	$	3,178

The decrease in the total risk-based capital requirement was primarily caused by a decrease in the market risk component due to changes in the market environment, including interest rates, spreads and volatility. Our permanent capital at June 30, 2019 remained well in excess of our total risk-based capital requirement.

Off-Balance Sheet Arrangements

At June 30, 2019, principal previously paid in full by our MPP servicers totaling $1 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. For more information, see Notes to Financial Statements - Note 7 - Allowance for Credit Losses in our 2018 Form 10-K.

Critical Accounting Policies and Estimates

We determined that three of our accounting policies and estimates 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 pertain to:

• Derivatives and hedging activities (see Notes to Financial Statements - Note 7 - Derivatives and Hedging Activitiesfor more detail);

• Fair value estimates (see Notes to Financial Statements - Note 13 - Estimated Fair Valuesfor more detail); and

• Provision for credit losses (see Notes to Financial Statements - Note 6 - Allowance for Credit Lossesfor 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 2018 Form 10-K. See below for additional information regarding certain of these policies.

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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.

As part of our loan loss analysis at December 31, 2018, we considered 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 approximately $2.2 million. However, such increase would be substantially offset by credit enhancements. Based upon subsequent changes in underlying collateral values, we would not expect this amount to have significantly changed at June 30, 2019. 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.

Recent Accounting and Regulatory Developments

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

Legislative and Regulatory Developments.

Finance Agency Advisory Bulletin 2019-01 - Business Resiliency Management. On May 7, 2019, the Finance Agency issued Advisory Bulletin 2019-01 on Business Resiliency Management for FHLBanks and other entities regulated by the FHFA ("Business Resiliency AB") that communicates the FHFA’s expectations with respect to minimizing the impact of disruptions in service from uncontrolled events and the maintenance of business operations at predefined levels. The Business Resiliency AB indicates that a business resiliency program should guide the regulated entity’s appropriate responses to disruptions affecting business operations, personnel, equipment, facilities, IT systems, and information assets. In addition, the Business Resiliency AB provides guidance on the elements of a safe and sound business resiliency program, which include governance, risk assessment and business impact analysis, risk mitigation and plan development, testing and analysis, and risk monitoring and program sustainability.

The Business Resiliency AB rescinds Federal Housing Finance Board Advisory Bulletin 2002-03 on disaster recovery planning. We do not expect the Business Resiliency AB to have a material effect on our financial condition or results of operations.

CFTC Staff Advisory on Initial Margin Documentation Requirements.On July 9, 2019, the CFTC issued a staff advisory ("Advisory") on Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants ("Margin Rules"), to clarify that documentation governing the posting, collection, and custody of initial margin is not required to be completed until such time as the aggregate unmargined exposure to a counterparty (and its margin affiliates) exceeds a threshold of $50 million. Under the Margin Rules, covered swap entities and non-prudentially regulated swap dealers generally are required to post and collect initial margin with counterparties that are swap dealers or financial end users with material swap exposure. The Margin Rules, however, contain an initial margin threshold amount of $50 million between a covered swap entity (and its margin affiliates) on the one hand, and its counterparty (and its margin affiliates), on the other hand. The Advisory clarifies that no initial margin documentation is required until the amount of initial margin exchangeable between a covered swap entity (and its margin affiliates) and its counterparty (and its margin affiliates) exceeds that initial margin threshold amount. The Advisory does, however, instruct covered swap entities to closely monitor initial margin amounts if they are approaching the $50 million threshold with a counterparty and to take appropriate steps to ensure that required documentation is in place at such time as the threshold is reached. The Advisory confirms the September 1, 2020 compliance deadline for us under the Margin Rules. We are currently monitoring developments relating to the Margin Rules and our bilateral derivatives balances.

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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 2018 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.New or renewed credit extensions to captive insurance companies that became members prior to September 12, 2014 are subject to certain regulatory restrictions relating to maturity dates and cannot exceed 40% of the member's total assets. As of June 30, 2019, one such captive insurance company member's total outstanding balance of credit products exceeded the percentage limit. Therefore, no new or renewed credit extensions have been extended to this member. 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, 2019, our top borrower held 12% of total advances outstanding, at par, and our top five borrowers held 42% 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.

One such depository institution with an outstanding balance of advances at June 30, 2019 totaling $3.0 billion, or 9% of total advances outstanding, at par value, merged with a non-member depository institution effective August 1, 2019. Of these advances, $2.7 billion is scheduled to mature in 2019. We do not expect a material impact on our profitability as a result of the repayment of these advances.

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.

The following table presents the unsecured investment credit exposure 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, 2019	AA		A		Total
Domestic	$	—	$	2,024	$	2,024
Australia	870		—		870
Canada	—		620		620
Total unsecured credit exposure	$	870	$	2,644	$	3,514

A Finance Agency regulation provides that the total amount 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. At June 30, 2019 these investments totaled 277% of total regulatory capital. 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.

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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 Ratings, Inc., 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, 2019	AAA			AA			A			BBB			Grade			Total
Short-term investments:
Interest-bearing deposits	$	—		$	—		$	656		$	—		$	—		$	656
Securities purchased under agreements to resell	—			4,250			—			—			—			4,250
Federal funds sold	—			870			1,988			—			—			2,858
Total short-term investments	—			5,120			2,644			—			—			7,764
Long-term investments:
U.S. Treasury obligations	—			3,193			—			—			—			3,193
GSE and TVA debentures	—			4,129			—			—			—			4,129
GSE MBS	—			6,071			—			—			—			6,071
Other U.S. obligations - guaranteed RMBS	—			3,284			—			—			—			3,284
Total long-term investments	—			16,677			—			—			—			16,677
Total investments, carrying value	$	—		$	21,797		$	2,644		$	—		$	—		$	24,441
Percentage of total	—		%	89		%	11		%	—		%	—		%	100		%
December 31, 2018
Short-term investments:
Interest-bearing deposits	$	—		$	1		$	1,210		$	—		$	—		$	1,211
Securities purchased under agreements to resell	—			3,213			—			—			—			3,213
Federal funds sold	—			1,630			1,455			—			—			3,085
Total short-term investments	—			4,844			2,665			—			—			7,509
Long-term investments:
GSE and TVA debentures	—			4,277			—			—			—			4,277
GSE MBS	—			5,632			—			—			—			5,632
Other U.S. obligations - guaranteed RMBS	—			3,469			—			—			—			3,469
Total long-term investments	—			13,378			—			—			—			13,378
Total investments, carrying value	$	—		$	18,222		$	2,665		$	—		$	—		$	20,887
Percentage of total	—		%	87		%	13		%	—		%	—		%	100		%

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

	Three Months Ended June 30, 2019
LRA Activity	Original		Advantage			Total
Liability, beginning of period	$	7	$	170		$	177
Additions	—		4			4
Claims paid	—		—			—
Distributions to PFIs	—		(1		)	(1		)
Liability, end of period	$	7	$	173		$	180

	Six Months Ended June 30, 2019
LRA Activity	Original		Advantage			Total
Liability, beginning of period	$	7	$	167		$	174
Additions	—		7			7
Claims paid	—		—			—
Distributions to PFIs	—		(1		)	(1		)
Liability, end of period	$	7	$	173		$	180

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Derivatives.The following table presents key information on derivative positions with 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, 2019	Notional Amount		Net Estimated Fair Value Before Collateral			Cash Collateral Pledged To (From) Counterparties		Net Credit Exposure
Non-member counterparties:
Asset positions with credit exposure
Uncleared derivatives - AA	$	282	$	—		$	—	$	—
Uncleared derivatives - A	59		—			—		—
Cleared derivatives (1)	22,955		4			150		154
Liability positions with credit exposure
Uncleared derivatives - A	9,665		(150		)	153		3
Total derivative positions with credit exposure to non-member counterparties	32,961		(146		)	303		157
Total derivative positions with credit exposure to member institutions (2)	69		—			—		—
Subtotal - derivative positions with credit exposure	33,030		$	(146	)	$	303	$	157
Derivative positions without credit exposure	11,204
Total derivative positions	$	44,234

⁽¹⁾  Represents derivative transactions cleared by two clearinghouses (one rated AA- and the other unrated).

⁽²⁾  Includes MDCs from member institutions under our MPP.

Replacement of the LIBOR Benchmark Interest Rate. In July 2017, the Financial Conduct Authority ("FCA"), a regulator of financial services firms and financial markets in the UK, announced that it will plan for a phase-out of regulatory oversight of LIBOR interest rate indices. The FCA indicated that it will cease persuading or compelling banks to submit rates for the calculation of LIBOR after 2021, and that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. The Alternative Reference Rates Committee has proposed SOFR as its recommended alternative to LIBOR, and the Federal Reserve Bank of New York began publishing SOFR rates in April 2018.

Most of our advances, investments, consolidated obligation bonds, derivative assets, derivative liabilities, and related collateral are indexed to LIBOR. Some of these assets and liabilities and related collateral have maturity dates that extend beyond 2021. As a result, we are evaluating the potential impact of the replacement of the LIBOR benchmark interest rate, including the possibility of SOFR as the dominant replacement on an ongoing basis. We have also developed an evolving transition plan that will change with market developments and member needs. The key components of our LIBOR replacement plan are: exposure, fallback language, information technology systems preparation, and balance sheet strategy. We have assessed our current exposure to LIBOR including completing an inventory of all financial instruments impacted and identifying financial instruments and contracts that may require adding or adjusting fallback language. We are assessing our operational readiness including potential effects on core Bank systems and replacing LIBOR references in policies and procedures. From a balance sheet management perspective, we have participated in the issuance of SOFR-indexed debt and suspended the issuance of LIBOR-indexed debt with maturities beyond 2021. Additionally, we have implemented OIS as an alternative interest rate hedging strategy for certain financial instruments.

See Item 1A. Risk Factors - Changes to or Replacement of the LIBOR Benchmark Interest Rate Could Adversely Affect Our Business, Financial Condition and Results of Operations in our 2018 Form 10-K for more information.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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.

As part of our overall interest-rate risk management process, we continue to evaluate strategies to manage interest-rate risk. Certain strategies, if implemented, could have an adverse impact on future earnings.

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, 2019	$	243
December 31, 2018	298

Market Value of Equity. MVE represents the difference between the estimated market value of total assets and the estimated market value of total liabilities, including any off-balance sheet positions. It measures, in present value terms, the long-term economic value of current capital and the long-term level and volatility of net interest income.

We also monitor the sensitivities of MVE 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 shifts in rates. Our board of directors determines acceptable ranges for the change in MVE for 200 bps shock scenario.

Key Metrics. The following table presents certain market and interest-rate metrics under different interest-rate scenarios ($ amounts in millions).

June 30, 2019	Down 200 (1)			Down 100 (1)			Base			Up 100			Up 200
MVE	$	3,318		$	3,210		$	3,114		$	3,012		$	3,033
Percent change in MVE from base	6.6		%	3.1		%	0		%	(3.3		)%	(2.6		)%
MVE/Book value of equity	98.4		%	95.2		%	92.3		%	89.3		%	89.9		%
Duration of equity (2)	2.4			2.5			3.4			1.8			(2.7		)

December 31, 2018 (3)
MVE	$	3,240		$	3,191		$	3,120		$	3,024		$	2,995
Percent change in MVE from base	3.8		%	2.3		%	0		%	(3.1		)%	(4.0		)%
MVE/Book value of equity	100.7		%	99.1		%	96.9		%	93.9		%	93.0		%
Duration of equity (2)	1.4			1.7			2.9			2.5			(0.3)

⁽¹⁾  Given the low interest rates in the short-to-medium term points of the yield curves, downward rate shocks are constrained to prevent rates from becoming negative.

⁽²⁾  We use interest-rate shocks in 50 bps increments to determine duration of equity.

⁽³⁾  Metrics previously presented have been revised.

The changes in these key metrics from December 31, 2018 resulted primarily from the change in market value of the assets and liabilities in response to changes in the market environment, changes in portfolio composition, and our hedging strategies.

Duration Gap. The base case duration gap was 0.12% and 0.09% at June 30, 2019 and December 31, 2018, respectively.

For information about our use of derivative hedges see, Item 7A. Quantitative and Qualitative Disclosures About Market Risk - Use of Derivative Hedges in our 2018 Form 10-K.

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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 Exchange Act is: (a) recorded, processed, summarized and reported within the time periods specified in the SEC'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, 2019, 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, 2019.

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 is also 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

In the ordinary course of business, we may from time to time become a party to lawsuits involving various business matters. We are unaware of any lawsuits presently pending which, individually or in the aggregate, could have a material effect on our financial condition or results of operations.

Item 1A. RISK FACTORS

There have been no material changes in the risk factors described in Item 1A. Risk Factors of our 2018 Form 10-K.

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Item 6. EXHIBITS

EXHIBIT INDEX

Exhibit Number	Description
3.1	Bylaws of the Federal Home Loan Bank of Indianapolis, effective June 28, 2019
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

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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 12, 2019	By:	/s/ CINDY L. KONICH
	Name:	Cindy L. Konich
	Title:	President - Chief Executive Officer
August 12, 2019	By:	/s/ GREGORY L. TEARE
	Name:	Gregory L. Teare
	Title:	Executive Vice President - Chief Financial Officer
August 12, 2019	By:	/s/ K. LOWELL SHORT, JR.
	Name:	K. Lowell Short, Jr.
	Title:	Senior Vice President - Chief Accounting Officer

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EX-3.1

Exhibit 3.1

FINAL

Effective June 28, 2019

BYLAWS

FEDERAL HOME LOAN BANK OF INDIANAPOLIS

ARTICLE I

Offices

Section 1. Principal Office. The principal office of the Federal Home Loan Bank of Indianapolis ("Bank") is to be located in the City of Indianapolis, County of Marion, State of Indiana, or such location as the Board of Directors of the Bank (“Board”) shall designate.

Section 2. Other Offices. In addition to its principal office, the Bank may maintain offices at any other place, or places, designated by the Board.

ARTICLE II

Stockholders' Meeting

Section 1. Annual Report and Meeting. Following the close of each fiscal year, in compliance with SEC regulations, the Bank shall issue an Annual Report which shall provide a full report of the financial condition of the Bank. The holding of an annual meeting of stockholders each year shall not be required. The Board, at its option, may provide for an annual meeting in any particular year by adoption of a resolution designating the time and place for such annual meeting provided that each stockholder shall be notified of the time and place at least ten days before such annual meeting.

The Board may submit to the stockholders at the meeting such matters as it may deem to be appropriate. The stockholders may discuss all of the affairs of the Bank and the situation in the Bank’s District of Indiana and Michigan in reference to home financing and Bank operations, and make such recommendations, as to them may appear to be appropriate, to the Board or to the Federal Housing Finance Agency (“FHFA”) or its legal successor. The Chair, or in his or her absence the Vice Chair, or in the absence of both of these officers, the President-Chief Executive Officer (“President-CEO”) of the Bank, shall preside at all meetings of the stockholders.

Exhibit 3.1

Section 2. Quorum Voting. The stockholders present shall constitute a quorum for the transaction of any business at a meeting of the stockholders. Each member of the Bank (“Member”) shall be entitled to cast one vote for the transaction of any business which, by law, or by the Bank’s Capital Plan as approved by the FHFA, must be submitted to stockholders for a vote; provided, however, that appointment or election of directors shall be effected as provided in Article III, Section 1, rather than at a meeting of stockholders. The senior official representing the Member at the meeting shall cast the vote on behalf of the Member.

Section 3. Special Meetings. A special meeting of the stockholders of the Bank shall be called upon the written request of the President-CEO of the Bank, a majority of the Board, or one-fourth of the then current Members of the Bank. The Board shall designate the time and place for such special meeting to be held not less than ten days, nor more than sixty days, after the request therefor. Should the Board fail to act for a period of thirty days after the request for such meeting, the Secretary of the Bank shall designate a time and place. The Secretary of the Bank shall mail to each Member of the Bank at its last known address, as shown on the books of the Bank, a notice of such meeting. Such notice shall be sent at least ten days before such meeting, and shall contain a statement of the purpose or purposes and of the time and place of the meeting.

Section 4.Cancellations. Previously scheduled meetings of the stockholders may be cancelled or postponed by resolution of the Board provided that notice of such cancellation or postponement is given to stockholders at least forty-eight hours prior to the date and time previously scheduled for such meeting.

ARTICLE III

Directors

Section 1. Number, Qualification, and Elections. The Board shall consist of such persons as shall be elected thereto in accordance with the Federal Home Loan Bank Act, as amended from time to time (the “Act”), and the Rules and Regulations of the FHFA (“Rules and Regulations”). The Board shall be comprised of Member Directors, who shall comprise at least the majority of the members of the Board, and Independent Directors, who shall comprise not fewer than two-fifths (40%) of the members of the Board. A Member Director is a member of the Board of the Bank who is an officer or director of a Member institution that is located in the district in which the Bank’s principal office is located. Each member of the Board shall be elected by plurality vote of the Members.

An Independent Director is a member of the Board who is a citizen of the United States and a bona fide resident of the district in which the Bank’s principal office is located. Independent Directors are divided into two categories: (i) those who qualify as Public Interest Directors, and (ii) other Independent Directors. Not fewer than 2 of the Independent Directors shall be Public

Exhibit 3.1

Interest Directors. Annually, the Board shall determine how many, if any, of the authorized Independent Directorships with terms beginning the following fiscal year shall be Public Interest Directorships. A Public Interest Director is an individual who has more than four years of experience in representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections. Each Independent Director who does not also qualify as a Public Interest Director must have demonstrated knowledge of, or experience in, financial management, auditing and accounting, risk management practices, derivatives, project development, or organizational management, or such other knowledge as the FHFA Director provides by regulation. No independent director may, during the term of service on the Board, serve as an officer of any FHLBank or as a director, officer, or employee of any member of a Bank, or of any person that receives advances from a Bank. Each Independent Director shall be elected by the Members entitled to vote, from among eligible persons nominated by the Board (after consultation with the Affordable Housing Advisory Council of the Bank and the FHFA). The election for Independent Directors shall be by a plurality of the votes of the Members of the Bank at large, in a manner consistent with the Rules and Regulations.

Section 2. Nomination and Election of Independent Directors. In accordance with the requirements of the Act and Rules and Regulations, and the procedures established by the Board, the Bank shall notify Members that it is seeking nominations for open Independent Directorships. All nominations shall be reviewed by the Bank to ensure each individual meets the eligibility requirements, including any knowledge or experience qualifications for such directorship. Upon verification that a nominee meets the eligibility requirements, the Board shall consult with the Affordable Housing Advisory Council before nominating any individual for any Independent Directorship. Following this consultation the Board shall select its nomination slate. Prior to announcing any Independent Director nominee, the Bank shall deliver to the FHFA, for the Director’s review, a copy of the Independent Director application forms executed by the individuals selected to the slate.

Section 3. Regular Meetings. Regular meetings of the Board may be held at such time and place as shall be determined from time to time by the Board; provided, however, that such meetings shall be held at least quarter-annually. Regular meetings may be held without notice thereof, or the Board may direct the Secretary of the Bank to give three days' notice of regular meetings to each director.

Section 4. Special Meetings. Special meetings of the Board may be called by its Chair, Vice Chair, or the President-CEO of the Bank stating the reasons therefor. Notice of the time, place and purpose or purposes of special meetings shall be given to each director; and such notice may be given by five days' written notice, or twenty-four hours' electronic notice or telephone notice, at the option of the person calling the meeting. Such meetings may be held at any time and place without previous notice if all of the directors are actually present, and notice of any special meeting may be waived by any director.

Exhibit 3.1

Section 5. Quorum Voting. At any regular or special meeting of the Board, a majority of those authorized to act as directors shall constitute a quorum for the transaction of business, but a smaller number may adjourn the meeting from time to time until a quorum is present. A majority of the directors present at any meeting, a quorum being present, shall decide questions submitted for decision. In the event of a tie vote of directors, the Board may, by one or more additional majority votes, decide or defer the question.

Section 6. Conference Call Meetings. A member of the Board, or of any committee of the Board, may participate in a meeting of the Board or such committee, respectively, by means of a conference telephone, video conference or similar communications equipment by which all persons participating in the meeting can communicate with each other, and participation by these means constitutes presence in person at the meeting, subject to the Act and Rules and Regulations.

Section 7. Officers of the Board. The officers of the Board shall be a Chair and a Vice Chair, each elected by a majority of the Board from among the directors for a two-year term, and a Secretary. The Corporate Secretary of the Bank shall serve as Secretary to the Board. The officers of the Board shall have such duties as are usually incident to their respective offices and such as may be assigned to them by the Board.

Section 8.Chairman or Vice Chairman Vacancy. The Board shall elect a director to fill the remainder of a Chair’s or Vice Chair’s unexpired term when:

• the director’s term on the Board expires prior to the end of that director’s term as Chair or Vice Chair, and the director is not re-elected to a seat on the Board, or

• the Chair or Vice Chair vacates the position.

The Board will conduct the election at the next regularly scheduled meeting after the expiration of that director’s term or after the vacancy.

Section 9. Order of Business. At meetings of the Board, business shall be transacted in such order as, from time to time, the Board may determine. At all meetings of the Board, the Chair, or in his or her absence the Vice Chair, or in the absence of both of these officers, a chair pro tempore selected by the Board, shall preside.

Section 10. Responsibilities for Policies. The Board shall review and adopt, in accordance with the Rules and Regulations, all such policies and plans as may be required by the FHFA from time to time (“Policies”).

Section 11. Designation of Depositories. The Board shall designate one or more trust companies or banks in which shall be deposited the monies or securities of the Bank, except as otherwise provided by the Act and the Rules and Regulations. Notwithstanding the foregoing provisions of this section, any special series United States Treasury Obligations owned by the

Exhibit 3.1

Bank shall be held with such depository or depositories as may be provided in the Rules and Regulations.

Section 12.Compensation. Members of the Board shall receive compensation for their services as provided for in a resolution or policy appropriately adopted by the Board from time to time, and may receive reimbursement of expenses incurred with respect to rendering such services, all compensation and expense reimbursement subject to the Act, Rules and Regulations, and Policies.

Section 13.Vacancies.In the event of a vacancy in a directorship, the remaining members of the Board, by majority vote, shall elect a qualified replacement to fill the unexpired term of the vacant directorship, regardless of whether the remaining directors constitute a quorum of the Board.

Section 14.Designation of Acting Chair or Vice Chair; Removal. Upon the request of any member of the Board or President-CEO of the Bank, the Chair, the Vice Chair, any member of the Executive/Governance Committee of the Board, or the President-CEO may convene a meeting of the Executive/Governance Committee to investigate and determine whether: (a) the Chair or Vice Chair is not available to carry out the requirements of that office for any period, except as provided under Article III, Section 8 in cases of vacancies, or (b) the Chair or Vice Chair should be removed from office for good cause. Notice of the time, place and purpose of such meeting shall be sent to all members of the Executive/Governance Committee and a copy provided to all other directors. Notice shall be given by five days’ written notice, three days’ facsimile/electronic mail notice, or twenty-four hours’ telephone notice at the option of the person calling the meeting. At such meeting, the person calling such meeting shall report on the reason for the meeting. The Executive/Governance Committee shall be responsible for making a full investigation of the facts bearing on whether the Chair or Vice Chair is unavailable for any period, or should be removed for good cause, as well as determining the applicable standards for good cause for removal. However, such standards as may be determined by the Executive/Governance Committee that constitute good cause shall generally be based upon a violation of the Bank’s Code of Conduct or the director’s duties and obligations as provided under the Act, the Rules and Regulations, and/or applicable state law. All Executive/Governance Committee members, except for the Chair or Vice Chair who is the subject of the investigation, shall be permitted to participate in the deliberations and actions of the Executive/Governance Committee. The Executive/Governance Committee shall provide the Chair or Vice Chair who is the subject of the investigation a reasonable opportunity to be heard and to respond to the charges. After completion of the investigation, the Executive/Governance Committee shall report to the Board at a regular or a special meeting called for such purpose with respect to its investigation and its recommendation as to action to be taken, if any. Upon receiving such recommendation, the Board by majority vote of all directors then serving on the Board (other than the subject of the investigation, who shall not vote thereon) may remove the Chair or Vice Chair, who is the subject of the investigation, for any period due to inability to serve, or for cause, and appoint an

Exhibit 3.1

acting Chair or Vice Chair for the period of inability or, if for cause, to serve out the remaining term of the officer so removed. Removal of the Chair or Vice Chair shall not affect such individual’s right to continue as a director.

ARTICLE IV

Committees

Section 1. Executive/Governance Committee. The Executive/Governance Committee shall consist of at least seven members of the Board, at least two of whom shall be Independent Directors. At the last regularly-scheduled meeting of the Board in each year, the Board shall select the members for such committee for the upcoming year and shall appoint a Chair, a Vice Chair, and may designate a secretary of the Committee. The Board may also name an additional one of its members as an alternate member of the Executive/Governance Committee, such member to attend meetings of the Committee and serve as a member thereof upon the call of the Chair of the Executive/Governance Committee or the President-CEO of the Bank whenever the presence of the alternate member is necessary to obtain a quorum of a regular or special meeting of the Executive/Governance Committee. The Board may change the name of the Executive/Governance Committee at any time without the necessity of amending this Bylaw.

During the intervals between the meetings of the Board, the Executive/Governance Committee shall possess and may exercise all of the powers of the Board in the management and direction of the affairs of the Bank in all cases in which specific directions shall not have been given by the Board. All action by the Executive/Governance Committee shall be reported to the Board at its meeting next succeeding such action, and shall be subject to revision and alteration by the Board; provided, that no rights of third parties shall be affected by any such revision or alteration.

A majority of the Executive/Governance Committee shall be necessary to constitute a quorum, and in every case the affirmative vote of a majority of the members of the Committee present at the meeting shall be necessary for the passage of any resolution. The Committee shall fix its own rules of procedure, and shall meet as provided by such rules or by resolution of the Board, or, additionally, at the call of the Chair or of the President-CEO of the Bank.

In the event of a national emergency, if all of the persons hereinbefore authorized to call a meeting of the Executive/Governance Committee are unavailable for duty, a meeting may be called by any other member of the Committee.

Section 2. Audit Committee. There shall be appointed by the Board an Audit Committee of at least five members of the Board (at least one of which shall have extensive accounting or financial management experience) which shall review and oversee the financial condition, accounting and financial practices and policies of the Bank, in keeping with the Act, the Rules and Regulations, and the charter of the Audit Committee as approved by the Board. The Audit

Exhibit 3.1

Committee shall hire and establish the compensation of the Bank’s Chief Internal Audit Officer and shall have the authority to terminate the employment of such person, with or without cause, at any time. The Board shall designate the Chair of the Audit Committee, a Vice Chair, and the Committee may select its secretary. The Audit Committee shall not be combined with any other committee of the Board. Both the Audit Committee, and the Board as a whole, shall review and assess the adequacy of the Audit Committee charter not less frequently than annually, and the Board shall amend the Audit Committee charter whenever it deems it appropriate to do so and shall reapprove the Audit Committee charter not less often than every three years. The Board may change the name of the Audit Committee at any time without the necessity of amending this Bylaw.

Section 3. Risk Oversight Committee. There shall be appointed by the Board a Risk Oversight Committee of at least four members of the Board (at least one of which shall have risk management experience that is commensurate with the Bank’s capital structure, risk appetite, complexity, activities, size, and other appropriate risk-related factors), in addition to the Board Chair as an ex-officio member, which shall assist the Board in fulfilling its responsibility with respect to adopting, and periodically reviewing, the Bank’s enterprise-wide risk management program, including the Bank’s risk appetite statement and significant policies and practices used in managing credit, market, liquidity, business, operational and certain other risks, in keeping with the Act, the Rules and Regulations, and the charter of the Risk Oversight Committee as approved by the Board. The Board shall designate the Chair of the Risk Oversight Committee and its Vice Chair, and the Bank’s Chief Risk Officer shall serve as the Committee’s secretary, with the assistance of the Corporate Secretary. The Chair of the Risk Oversight Committee shall not serve in a management capacity of the Bank. The Risk Oversight Committee shall not be combined with any other committee of the Board. The Board may change the name of the Risk Oversight Committee at any time without the necessity of amending this Bylaw.

Section 4. Finance/Budget Committee. There shall be appointed by the Board a Finance/Budget Committee of at least seven members of the Board. The President-CEO of the Bank (or a Vice President who has been designated as chief administrative officer, if applicable) shall prepare and submit to the Budget Committee a proposed budget for the following calendar year which, after review by the Committee, shall be presented to the Board for approval at a meeting to be held during the fourth calendar quarter of the year preceding the calendar year for which the budget has been prepared. Following its adoption, the annual approved budget may be amended by the Board at any time. The Board shall designate the Chair of the Budget Committee, a Vice Chair, and the Committee may select its secretary. The Board may change the name of the Finance/Budget Committee at any time without the necessity of amending this Bylaw.

Section 5. Human Resources Committee. There shall be appointed by the Board a Human Resources Committee, which shall, among other duties, advise the Board on issues of officer and employee compensation and benefits, and directors’ compensation, in keeping with the Act, the

Exhibit 3.1

Rules and Regulations, and the charter of the Human Resources Committee as approved by the Board. However, issues related to compensation for employees of the Bank’s Internal Audit Department and for the Chief Internal Audit Officer, including the Internal Audit employees’ incentive compensation plan, shall be the responsibility of the Audit Committee of the Board. The Board shall designate the Chair of the Human Resources Committee, a Vice Chair, and the Committee may select its secretary. The Board may change the name of the Human Resources Committee at any time without the necessity of amending this Bylaw.

Section 6. Other Committees. The Board may delegate from time to time to other committees special projects, detailed analysis, or any duties that are required to be executed during the intervals between the meetings of the Board. To the extent reasonably feasible, such committees shall be selected so as to employ the services of all of the membership of the Board among the various Board committees in the aggregate. Nothing in this section shall limit the power of the Board to establish additional committees on an ad hoc or standing basis, to assign additional responsibilities to any committee, or to change the name of any committee.

Section 7. Consent Action. Any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken without a meeting, if a written consent to such action is signed by all members of the Board or such committee, as the case may be, and such written consent is filed with the minutes of proceedings of the Board or such committee.

ARTICLE V

Officers and Employees

Section 1. Officers. The corporate officers of the Bank shall be a President-CEO, one or more Vice Presidents, and a Treasurer, all of whom shall be elected by the Board. There shall also be a Corporate Secretary, who shall be appointed by the President-CEO, and who may or may not be an officer of the Bank.

The President-CEO shall be the chief administrative officer of the Bank and as such shall be primarily responsible for the operation and management of the Bank; provided, however, the Board may instead designate a Vice President as the chief administrative officer of the Bank.

The President-CEO of the Bank shall appoint a Chief Risk Officer (CRO) to implement and maintain appropriate enterprise-wide risk management practices for the Bank. The CRO shall be responsible for an independent enterprise-wide risk management function and shall report directly to the President-CEO and shall provide periodic reporting directly to the Risk Oversight Committee.

The President-CEO of the Bank shall also appoint a Chief Compliance Officer (CCO) to assure that the Bank complies with applicable laws, rules, regulations, and internal controls. The CCO shall report directly to the President-CEO, and shall report regularly to the Board, or an

Exhibit 3.1

appropriate committee thereof, on the adequacy of the Bank’s compliance policies and procedures, including the Bank’s compliance with them, and shall recommend any revisions to such policies and procedures that he or she considers necessary or appropriate.

The same person may hold any two offices, but no person shall execute, acknowledge, or verify any instrument in more than one capacity. The Board shall adopt an appropriate resolution at a meeting held during the fourth calendar quarter of the year electing corporate officers to serve for the next calendar year and until their respective successors are elected and qualified. The Board may also appoint such other corporate officers as they shall deem necessary who shall have such authority and shall perform such duties as from time to time may be prescribed by the Board. Any corporate officer may be removed by the Board at any time, with or without cause. Additionally, the President-CEO (or his or her designated senior officer(s)) may terminate the employment of any other corporate officer (other than the Chief Internal Audit Officer) at any time, with or without cause, and such termination shall also constitute removal of such person as a corporate officer.

Each of the corporate officers of the Bank shall devote his or her entire time, skill and energy to the business of the Bank, unless the contrary is expressly consented to by the Board. The corporate officers shall have such powers and duties as are usually incident to their respective offices and such as may be assigned to them by the Board or the President-CEO. They shall have full responsibility for the operation of the Bank under the direction of the Board and the Executive/Governance Committee. They shall report to committees of the Board on matters under consideration or to be considered by such committees and shall see that a report of the operation of the Bank is made to the Board at each regular meeting.

The corporate officers of the Bank designated by the Board may process applications for membership, extend or deny credit and take such other action as is in conformity with the policies of the Bank and of the Rules and Regulations.

Section 2. Employees and Legal Counsel. There shall also be such other employees (which may include inside General Counsel) as the Board may authorize or whose appointment the Board may ratify; and they shall have such duties as shall be assigned to them by the Board or the President-CEO of the Bank. The President-CEO or the General Counsel of the Bank shall have the authority to retain outside legal counsel to represent the Bank, and, additionally, the Board or any committee of the Board may retain outside legal counsel to represent the Board or any such committee.

Section 3. Compensation. At a meeting held during the fourth calendar quarter, the Board shall adopt an appropriate resolution establishing compensation of the President-CEO to be effective during the next calendar year. The compensation of corporate officers and the total limits of compensation for all other employees shall not exceed the limits set forth in the budget approved by the Board.

Exhibit 3.1

ARTICLE VI

Capital Stock

Each member stockholder shall acquire and retain capital stock in the manner and amount prescribed by the Act, the Rules and Regulations and the Capital Plan of the Bank. The manner of issuance, transfer and redemption of capital stock, as well as the payment of dividends, shall be as prescribed by the Act, the Rules and Regulations and the Capital Plan of the Bank.

ARTICLE VII

Indemnification of Directors, Officers and Employees

Section 1. Definitions. For purposes of this Article VII, the following terms shall have the following meanings:

(a)"Liabilities" and "Expenses" shall mean monetary obligations incurred by or on behalf of a director, officer or employee in connection with the investigation, defense or appeal of a Proceeding or in satisfying a claim thereunder and shall include, but shall not be limited to, attorneys' fees, paralegal fees, court costs, filing fees, fees, losses and costs incurred in arbitration, mediation, or other form of alternative dispute resolution, costs of investigations, experts (including without limitation, accounting, criminal and forensic experts) and disbursements, other professional fees and expenses, amounts of judgments, fines or penalties, excise taxes assessed with respect to an employee benefit plan, and amounts paid in settlement by or on behalf of a director, officer or employee.

(b)"Other Enterprise" shall mean any corporation, partnership, limited liability company, limited liability partnership, joint venture, trust, employee benefit plan, regulatory agency, or other enterprise, whether for profit or not, for which a director, officer or employee is or was serving, at the request of the Bank, as a director, officer, partner, trustee, employee, manager, member or agent. Without limiting the generality of the foregoing, any director, officer or employee of the Bank who is or was rendering services to the Office of Finance, the Council of Federal Home Loan Banks, the Affordable Housing Advisory Council, the Financing Corporation, Pentegra, the Financial Institutions Retirement Fund, the Financial Institutions Thrift Plan, any Federal Home Loan Bank System committee (including, but not limited to, the Bank Presidents Conference and any committee thereof), any non-profit community organization whose primary purpose is housing or financial literacy, or the successor entity to any of the foregoing, shall be deemed to be serving or have served at the request of the Bank. The phrase “at the request of the Bank” shall include a request made by: (i) resolution of the Board of Directors of the Bank, or (ii) action of any officer of the Bank directed to any director, other officer or employee of the Bank.

Exhibit 3.1

(c)"Proceeding" shall mean any claim, action, suit or proceeding (whether brought against, by or in the right of, the Bank or Other Enterprise, or otherwise), civil, criminal, administrative or investigative, whether formal or informal, including arbitration, mediation or other form of alternative dispute resolution and whether actual or threatened or in connection with an appeal relating thereto, in which a director or officer may become involved, as a party or otherwise, (i) by reason of his or her being or having been a director, officer or employee of the Bank (and, if applicable, an agent of the Bank) or a director, officer, partner, trustee, employee, manager, member or agent of an Other Enterprise or arising out of his or her status as such, or (ii) by reason of any past or future action taken or not taken by a director, officer or employee in any such capacity, whether or not he or she continues to be such at the time he or she incurs Liabilities and Expenses under the Proceeding. “Proceeding” shall include any claim, action, suit or proceeding involving the determination of any right to indemnification of a director, officer or employee.

(d)"Standard of Conduct" shall mean that a director, officer or employee, based on facts then known to the director, officer or employee, discharged the duties as a director, officer or employee, including duties as a member of a committee, in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Bank or Other Enterprise, as the case may be, and, in addition, in any criminal Proceeding had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe that his or her conduct was unlawful. The termination of any Proceeding, by judgment, order, settlement (whether with or without court approval) or conviction or upon a plea of guilty, shall not create a presumption that the director, officer or employee did not meet the Standard of Conduct. The termination of any Proceeding by a consent decree or upon a plea of nolo contendere, or its equivalent, shall create the presumption that the director, officer or employee met the Standard of Conduct.

(e)“Willful misconduct or recklessness” shall have the meaning of those words under the Indiana Business Corporation Law as in effect on January 1, 2005, including, specifically the Indiana Comments to I.C. 23-1-35-1(e).

Section 2. Applicable Law; No Rights Created.To the extent not inconsistent with the Act, the Rules and Regulations, other applicable authorizing statutes of the Bank, other Federal law, rules, and regulations, and the safe and sound operations of the Bank, the Bank elects to follow the corporate governance and indemnification provisions, practices and procedures set forth in the Indiana Business Corporation Law (“IBCL”), I.C. 23-1-17-1 et seq. Nothing in this election of state law shall create or be deemed to create any rights in any third party, including in any Member of the Bank, nor shall it cause or be deemed to cause the Bank to become subject to the jurisdiction of any state court with respect to the Bank’s corporate governance or

Exhibit 3.1

indemnification provisions, practices or procedures. Also, this election of IBCL provisions is not intended to include, and does not include, the application of Indiana state law provisions related to stockholders, such as stockholder procedural provisions, stockholder rights to obtain information from a corporation’s management, stockholder voting, or stockholder meeting rights.

Section 3. Indemnification. If a director, officer or employee is made a party to or threatened to be made a party to, or is involved as a witness or otherwise in, any Proceeding, the Bank shall indemnify and hold harmless the director, officer or employee against Liabilities and Expenses incurred by him or her in connection with such Proceeding in the following circumstances:

(a)If a director, officer or employee has been wholly successful on the merits or otherwise with respect to any such Proceeding, he or she shall be entitled to indemnification for Liabilities and Expenses as a matter of right. If a Proceeding is terminated against the director, officer or employee by consent decree or upon a plea of nolo contendere, or its equivalent, the director, officer or employee shall not be deemed to have been "wholly successful" with respect to such Proceeding;

(b)In all other situations, a director, officer or employee shall be entitled to indemnification for Liabilities and Expenses as a matter of right unless (i) the director, officer or employee has breached or failed to perform his or her duties, or conduct his or her relationship, with respect to the Bank or Other Enterprise in compliance with the Standard of Conduct and (ii) with respect to any action or failure to act by the director, officer or employee which is at issue in such Proceeding, such action or failure to act constituted willful misconduct or recklessness; and the burden of proving Section 3(b)(i) and (ii) shall be on the Bank. To be entitled to indemnification pursuant to this Section 3(b), the director, officer or employee must notify the Bank of the commencement of the Proceeding in accordance with Article VII, Section 6, and request indemnification. A review of the request for indemnification and the facts and circumstances underlying the Proceeding shall be made in accordance with one of the procedures described below; and the director, officer or employee shall be entitled to indemnification as a matter of right unless, in accordance with such procedure, it is determined beyond a reasonable doubt that (i) the director, officer or employee breached or failed to perform his or her duties in compliance with the Standard of Conduct, and (ii) the breach or failure to perform constituted willful misconduct or recklessness. Any one of the following procedures may be used to make the review and determination of a director's, officer's or employee's request for indemnification under this Section 3(b):

(A)by the Board by a majority vote of a quorum consisting of directors who are not parties to, or who have been wholly successful with respect to, such Proceeding;

Exhibit 3.1

(B)if a quorum cannot be obtained under (A) above, by a majority vote of a committee duly designated by the Board (in the designation of which, directors who are parties to such Proceeding may participate), consisting solely of two or more directors who are not parties to, or who have been wholly successful with respect to, such Proceeding;

(C)by independent legal counsel selected by a majority vote of the full Board (in which selection, directors who are parties to such Proceeding may participate) and which may be outside counsel regularly employed by the Bank; or

(D)by a committee consisting of three (3) or more disinterested persons selected by a majority vote of the full Board (in which selection, directors who are parties to such Proceeding may participate).

(c)Any determination made in accordance with the above procedures shall be binding on the Bank and the director, officer or employee. If several claims, issues or matters of action are involved, a director, officer or employee may be entitled to indemnification as to some matters even though he or she is not entitled to indemnification as to other matters. The indemnification herein provided shall be applicable to Proceedings made or commenced after the adoption of this Article VII, whether arising from acts or omissions to act which occurred before or after the adoption of this Article VII.

Section 4.Prepaid Liabilities and Expenses. The Liabilities and Expenses which are incurred or are payable by a director, officer or employee in connection with any Proceeding shall be paid by the Bank in advance, promptly (but in no event more than forty-five (45) days) after submission of proper evidence thereof to the Bank, including a written affirmation by the director, officer or employee of that person’s good faith belief that they have met the Standard of Conduct, and a written agreement between such director, officer or employee and the Bank, that, in the event it shall ultimately be determined as provided herein that the director, officer or employee was not entitled to be indemnified, or was not entitled to be fully indemnified, the director, officer or employee shall repay to the Bank such amount, or the appropriate portion thereof, so paid or advanced.

Section 5.Exceptions to Indemnification. Notwithstanding any other provisions of this Section to the contrary, the Bank shall not indemnify a director, officer or employee:

(a)for any Liabilities and Expenses for which payment is actually made to or on behalf of a director, officer or employee under any valid and collectible insurance policy, except in respect of any excess Liabilities and Expenses beyond the amount of payment under such insurance policy or policies; or

Exhibit 3.1

(b)for any Liabilities or Expenses incurred in a suit or claim against the director, officer or employee arising out of or based upon actions attributable to the director, officer or employee in which the director, officer or employee gained any personal profit or advantage to which he or she was not legally entitled; provided, however, that the provisions of this Section 5(b) shall not be deemed to prohibit indemnification of Expenses incurred by a director, officer or employee of the Bank in a Proceeding against the director, officer or employee for return of compensation paid to such person in the normal course of business of the Bank unless (i) the director, officer or employee breached or failed to perform his or her duties as a director, officer or employee in compliance with the Standard of Conduct and (ii) with respect to any action or failure to act by the director, officer or employee which is at issue in such suit or claim, such action or failure to act constituted willful misconduct or recklessness.

Section 6.Notification and Defense of Proceeding. Promptly after receipt by a director, officer or employee of notice of the commencement of any Proceeding, the director, officer or employee will, if a request for indemnification in respect thereof is to be made against the Bank under this Article VII, notify the Bank of the commencement thereof; but the failure to so notify the Bank will not relieve it from any obligation which it may have to the director, officer or employee under this Article VII or otherwise. With respect to any such Proceeding as to which the director, officer or employee notifies the Bank of the commencement thereof:

(a)the Bank will be entitled to participate therein at its own expense;

(b)except as otherwise provided below, to the extent that it may so desire, the Bank, jointly with any other indemnifying party similarly notified, will be entitled to assume the defense thereof, with counsel reasonably satisfactory to the director, officer or employee.

After notice from the Bank to the director, officer or employee of its election to assume the defense of the director, officer or employee in the Proceeding, the Bank will not be liable to the director, officer or employee under this Article VII for any legal or other Expenses subsequently incurred by the director, officer or employee in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. The director, officer or employee shall have the right to employ counsel in such Proceeding, but the Expenses of such counsel incurred after notice from the Bank of its assumption of the defense thereof shall be at the expense of the director, officer or employee unless:

(i)the employment of counsel by the director, officer or employee has been authorized by the Bank;

(ii)the director, officer or employee shall have reasonably concluded that there may be a conflict of interest between the Bank and the director, officer or employee in the conduct of the defense of such Proceeding; or

Exhibit 3.1

(iii)the Bank shall not in fact have employed counsel to assume the defense of such Proceeding;

in each of which cases the Expenses of counsel employed by the director, officer or employee shall be paid by the Bank. The Bank shall not be entitled to assume the defense of any Proceeding brought by or in the right of the Bank or as to which the director, officer or employee shall have made the conclusion provided for in (ii) above; and

(c)the Bank shall not be liable to indemnify a director, officer or employee under this Article VII for any amounts paid in settlement of any Proceeding without the Bank's prior written consent. The Bank shall not settle any action or claim in any manner which would impose any penalty or limitation on a director, officer or employee without the prior written consent of the director, officer or employee. Neither the Bank nor a director, officer or employee will unreasonably withhold its, his or her consent to any proposed settlement.

Section 7.Enforcement. Any indemnification under this Article VII shall be made promptly (but in no event later than forty-five (45) days) after the director, officer or employee has been wholly successful on the merits or otherwise with respect to any Proceeding or upon the determination in accordance with Section 3(b) of this Article VII that the director, officer or employee is entitled to indemnification. Any advancement of Expenses under this Article VII shall be made promptly (but in no event later than forty-five (45) days) after receipt by the Bank of a written request from the person seeking advancement of Expenses including a written affirmation of such person’s belief that he or she has met the applicable Standard of Conduct and such person’s written undertaking to repay all amounts so advanced (as required by Section 4 of this Article VII). Any right of a director, officer or employee to indemnification or advancement of Expenses as granted by this Article VII may be enforceable by such director, officer or employee in any court of competent jurisdiction, (subject, however, to any mandatory arbitration agreement between an employee and the Bank which shall require disputes between the employee and the Bank to be arbitrated as required therein), if the Bank denies such request, in whole or in part, or if no disposition thereof is made within thirty (30) days after receipt by the Bank of request therefor.

Section 8. Other Rights and Remedies. The rights of indemnification provided under this Article VII are not exhaustive and shall be in addition to any rights to which a director, officer or employee may otherwise be entitled by contract, bylaw, shareholder vote or as a matter of law. Irrespective of the provisions of this Article VII, the Bank may, at any time and from time to time, indemnify directors, officers, employees and other persons to the full extent permitted by applicable law, whether with regard to past or future matters.

Section 9. Continuation of Indemnity. All obligations of the Bank under this Article VII shall survive the termination of a director's, officer's or employee’s service in any capacity covered by this Article VII.

Exhibit 3.1

Section 10. Insurance. The Bank may purchase and maintain insurance on behalf of any person who is, was or has agreed to become a director, officer, employee, attorney or agent of the Bank or any person who is or was serving or has agreed to serve at the request of the Bank as a director, officer, partner, trustee, employee, manager member or agent of an Other Enterprise against any liability asserted or threatened against such person and incurred by such person in any capacity or arising out of his or her status as such, whether or not the Bank would have the power to indemnify such person against such liability under the provisions of applicable statutes, this Article VII or otherwise. Notwithstanding the foregoing, the Bank shall not pay the premiums for any insurance or fidelity bonds for directors and officers, to the extent that the insurance or fidelity bond provides coverage prohibited by the Rules and Regulations of the FHFA.

Section 11. Contractual Rights and Applicability. It is the intent of this Article VII to empower the Bank to provide indemnification and advancement of expenses to the fullest extent allowed by law. Except as otherwise expressly provided herein, indemnification shall be provided without regard to the legal or equitable theory of the Proceeding, including but not limited to criminal claims, conspiracy claims, joint, several, comparative or sole negligence, breach of contract or warranty, strict liability, breach of fiduciary duty, mismanagement, corporate waste, or violation of federal or state securities law or any other law, regulation or policy. The right to be indemnified or be reimbursed or advanced expenses pursuant hereto (a) is a contract right based upon good and valuable consideration, pursuant to which the person entitled thereto may bring suit as if the provisions thereof were set forth in a separate written contract between the person and the Bank, (b) is intended to be retroactive and shall be available with respect to events occurring prior to the adoption hereof, (c) shall continue to exist after the rescission or restrictive modification hereof with respect to events occurring prior thereto, and (d) shall inure to the benefit of the heirs and personal representatives of any present or former director, officer, or employee.

If any portion of this Article VII shall be invalidated on any ground by any court of competent jurisdiction, or in any arbitration proceeding, then the Bank shall nevertheless indemnify each person entitled to indemnification or advancement of Expenses under this Article VII as to all Liabilities and Expenses actually and reasonably incurred or suffered by such person and for which indemnification is available to such person pursuant to this Article VII to the full extent permitted by any applicable portion of this Article VII that shall not have been invalidated and to the fullest extent permitted by applicable law.

Section 12.Indemnification of Agents of the Bank. The Bank may, to the extent authorized by the Board from time to time, grant rights to indemnification and advancement of Expenses to agents of the Bank to the full extent of the provisions of this Article VII with respect to the indemnification, of, and advancement of Expenses to, directors, officers, or employees of the Bank.

Exhibit 3.1

Section 13. Restrictions on Indemnification Rights and Payments Arising From Administrative Proceedings or Civil Actions Initiated by FHFA. Notwithstanding anything herein to the contrary, for indemnification claims and requests in connection with an administrative proceeding or civil action that has been initiated by the FHFA:

(a) there shall be no indemnification that is otherwise available under this Article VII unless the Board determines indemnification is proper, in accordance with 12 C.F.R. § 1231.4(c); and

(b) regardless of any Board finding, there shall be no such indemnification if: (i) the subject matter of the proceeding or civil action results in a final and non-reviewable order or settlement in which the person seeking indemnification is found culpable or admits culpability, respectively, for violating a law or regulation that is the basis for the charges to which claims for indemnification specifically relate; or (ii) the affiliated party seeking indemnification is subject to a final and non-reviewable prohibition order under 12 U.S.C. § 4636a.

ARTICLE VIII

General Provisions

Section 1. Minutes. Accurate minutes of each meeting of the stockholders of the Bank pursuant to Article II hereof, of the Board, of the Executive/Governance Committee, and of any other committee shall be signed by the presiding officer and attested under the seal of the Bank by the secretary serving at such meeting. Copies of such minutes shall be preserved by the Bank in custody of the Secretary of the Board but available to the examiners or other official representatives of the FHFA.

Section 2. Corporate Seal. The Seal of the Bank shall be as hereto affixed and shall be in charge of the Secretary for his discretionary use with respect to certification of Bank documents.

Section 3. Banking Hours. The Bank shall be kept open for business for such hours as the President-CEO shall fix, and employees shall remain in performance of their duties for such hours as may be required by the corporate officers.

Section 4. Surety Bonds. The Bank shall maintain adequate surety bonds, covering all officers, employees, attorneys or agents having control over or access to monies or securities owned by the Bank or in its possession. The Bank shall comply with all provisions of law as to the maintenance of liability, compensation, or other insurance, and shall maintain such additional forms and amounts of insurance as the Board may from time to time determine.

Section 5. Signing of Papers. All contracts, deeds, bonds, assignments or other documents of the Bank shall be signed in the name of the Bank by two officers or by an officer and such employee as may be designated from time to time by the Board. All checks, drafts or orders for

Exhibit 3.1

payment shall be signed in the name of the Bank by any two officers or employees as may from time to time be so authorized by the Board. When authorized by the Board, checks may be issued by the Bank bearing the facsimile signature of any two officers designated by the Board. Collateral releases, endorsements, or other documents concerning the release of Bank collateral shall be signed in the name of the Bank by one officer or employee as may be designated by the Board from time to time.

Section 6. Operations. The Bank shall operate and do business within the provisions of the Act, the Rules and Regulations, its certificate of organization and these Bylaws.

Section 7. Fiscal Year. The fiscal year of the Bank shall begin on the first day of January.

Section 8. Amendment. The Bylaws of the Bank may be amended or replaced by the affirmative vote of a majority of the Board at any regular or special meeting of the Board, provided that each director shall have been given notice of the proposed amendment and of the form of such amendment at least ten days preceding any meeting called for such purpose. The Bylaws may be amended by the affirmative vote of a majority of the Board at any regular meeting without written notice of the proposed amendment and of the form of the amendment being given to each director, provided that the form of the proposed amendment has been submitted to the previous regular meeting of the Board and has been incorporated in the minutes of said meeting.

Last Amended: February 18, 2016

Effective: June 28, 2019

I hereby certify that the foregoing is a true and correct copy of the amended Bylaws adopted by the Board of Directors of the Federal Home Loan Bank of Indianapolis at its June 28, 2019 meeting of the Board, after being read at the May 22, 2019 meeting of the Board to be effective June 28, 2019.

June 28, 2019

/s/ Matthew R. St. Louis

Secretary of the Board of Directors

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 12, 2019

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 12, 2019

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 12, 2019

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, 2019, 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 12, 2019

By: /s/ GREGORY L. TEARE

Gregory L. Teare

Executive Vice President - Chief Financial Officer

August 12, 2019

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

K. Lowell Short, Jr.

Senior Vice President - Chief Accounting Officer

August 12, 2019

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information [Abstract]
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, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Outstanding (in shares)		22,485,561
Entity Current Reporting Status	Yes

XML

Statements of Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and due from banks	$ 76,477	$ 100,735
Interest-bearing deposits	656,051	1,210,705
Securities purchased under agreements to resell	4,249,710	3,212,726
Federal funds sold	2,858,000	3,085,000
Trading securities (Note 3)	3,192,790	0
Available-for-sale securities (Note 3)	8,395,767	7,703,596
Held-to-maturity securities (estimated fair values of $5,097,578 and $5,676,145, respectively) (Note 3)	5,088,423	5,673,720
Advances (Note 4)	33,890,767	32,727,668
Mortgage loans held for portfolio, net of allowance for loan losses of $(600) and $(600), respectively (Notes 5 and 6)	11,363,834	11,384,978
Accrued interest receivable	140,913	124,611
Premises, software, and equipment, net	37,443	37,198
Derivative assets, net (Note 7)	157,136	116,764
Other assets	42,482	33,998
Total assets	70,149,793	65,411,699
Liabilities:
Deposits	855,307	500,440
Consolidated obligations (Note 8):
Discount notes	22,645,457	20,895,262
Bonds	42,726,793	40,265,465
Total consolidated obligations, net	65,372,250	61,160,727
Accrued interest payable	190,180	179,728
Affordable Housing Program payable (Note 9)	40,247	40,747
Derivative liabilities, net (Note 7)	2,825	21,067
Mandatorily redeemable capital stock (Note 10)	174,193	168,876
Other liabilities	315,915	289,665
Total liabilities	66,950,917	62,361,250
Commitments and contingencies (Note 14)
Capital stock (putable at par value of $100 per share):
Capital stock	2,048,523	1,930,952
Retained earnings:
Unrestricted	856,911	855,311
Restricted	236,142	222,499
Total retained earnings	1,093,053	1,077,810
Total accumulated other comprehensive income (Note 11)	57,300	41,687
Total capital	3,198,876	3,050,449
Total liabilities and capital	70,149,793	65,411,699
Class B-1 issued and outstanding shares: 20,482,199 and 19,306,333, respectively
Capital stock (putable at par value of $100 per share):
Capital stock	2,048,220	1,930,633
Class B-2 issued and outstanding shares: 3,028 and 3,192, respectively
Capital stock (putable at par value of $100 per share):
Capital stock	$ 303	$ 319

XML

Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Estimated fair value	$ 5,097,578	$ 5,676,145
Allowance for loan losses	$ (600)	$ (600)
Common stock putable, par value per share (usd per share)	$ 100	$ 100
Class B-1
Common stock issued (in shares)	20,482,199	19,306,333
Common stock outstanding (in shares)	20,482,199	19,306,333
Class B-2
Common stock issued (in shares)	3,028	3,192
Common stock outstanding (in shares)	3,028	3,192

XML

Statements of Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest Income:
Advances	$ 222,146,000	$ 177,745,000	$ 433,900,000	$ 321,539,000
Interest-bearing deposits	5,421,000	3,871,000	9,687,000	7,079,000
Securities purchased under agreements to resell	25,846,000	15,715,000	45,660,000	20,812,000
Federal funds sold	20,134,000	7,633,000	40,515,000	19,921,000
Trading securities	10,654,000	0	13,455,000	0
Available-for-sale securities	56,786,000	47,924,000	106,267,000	88,490,000
Held-to-maturity securities	38,973,000	37,120,000	79,857,000	72,040,000
Mortgage loans held for portfolio	93,446,000	85,575,000	189,699,000	169,129,000
Other interest income	0	5,000	0	17,000
Total interest income	473,406,000	375,588,000	919,040,000	699,027,000
Interest Expense:
Consolidated obligation discount notes	139,139,000	90,099,000	258,513,000	160,457,000
Consolidated obligation bonds	268,849,000	211,068,000	531,858,000	389,296,000
Deposits	3,521,000	2,633,000	6,515,000	4,610,000
Mandatorily redeemable capital stock	2,353,000	1,885,000	5,071,000	4,630,000
Total interest expense	413,862,000	305,685,000	801,957,000	558,993,000
Net interest income	59,544,000	69,903,000	117,083,000	140,034,000
Provision for (reversal of) credit losses	(40,000)	(357,000)	14,000	(461,000)
Net interest income after provision for credit losses	59,584,000	70,260,000	117,069,000	140,495,000
Other Income:
Net realized gains from sale of available-for-sale securities	0	32,407,000	0	32,407,000
Net realized losses from sale of held-to-maturity securities	0	(45,000)	0	(44,550)
Net gains on trading securities	16,585,000	0	20,656,000	0
Net gains (losses) on derivatives and hedging activities	(14,365,000)	(2,988,000)	(17,787,000)	2,944,000
Other, net	903,000	461,000	2,918,000	393,000
Total other income	3,468,000	30,308,000	6,484,000	36,495,000
Other Expenses:
Compensation and benefits	13,424,000	12,881,000	27,557,000	25,858,000
Other operating expenses	7,146,000	6,932,000	13,120,000	13,350,000
Federal Housing Finance Agency	1,001,000	843,000	1,997,000	1,763,000
Office of Finance	1,009,000	1,240,000	2,145,000	2,431,000
Other	1,284,000	1,993,000	2,372,000	2,884,000
Total other expenses	23,864,000	23,889,000	47,191,000	46,286,000
Income before assessments	39,188,000	76,679,000	76,362,000	130,704,000
Affordable Housing Program assessments	4,154,000	7,856,000	8,143,000	13,533,000
Net income	35,034,000	68,823,000	68,219,000	117,171,000
Correspondent Clearing [Member]
Revenue from Contract with Customer, Including Assessed Tax	202,000	280,000	395,000	505,000
Financial Service, Other [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 143,000	$ 193,000	$ 302,000	$ 291,000

XML

Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 35,034	$ 68,823	$ 68,219	$ 117,171
Other Comprehensive Income:
Net change in unrealized gains (losses) on available-for-sale securities	(7,924)	(12,581)	18,981	9,972
Net non-credit portion of other-than-temporary impairment losses	0	(29,300)	0	(29,271)
Pension benefits, net	(3,715)	(6,539)	(3,368)	(6,216)
Total other comprehensive income (loss)	(11,639)	(48,420)	15,613	(25,515)
Total comprehensive income	$ 23,395	$ 20,403	$ 83,832	$ 91,656

XML

Statements of Capital (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 3,138,719	$ 3,008,924	$ 3,050,449	$ 2,945,506
Total comprehensive income	23,395	20,403	83,832	91,656
Proceeds from issuance of capital stock	63,193	34,412	119,680	57,591
Shares reclassified to mandatorily redeemable capital stock, net	0	(23,163)	(2,109)	(23,163)
Distributions on mandatorily redeemable capital stock	(1)	(5)	(1)	(5)
Cash dividends on capital stock (4.25% and 5.50% respectively, annualized)	(26,430)	(19,612)	(52,975)	(50,626)
Ending balance	$ 3,198,876	$ 3,020,959	$ 3,198,876	$ 3,020,959
Capital Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	19,853	18,809	19,310	18,578
Beginning balance	$ 1,985,330	$ 1,880,945	$ 1,930,952	$ 1,857,766
Proceeds from issuance of capital stock (in shares)	632	345	1,196	576
Proceeds from issuance of capital stock	$ 63,193	$ 34,412	$ 119,680	$ 57,591
Shares reclassified to mandatorily redeemable capital stock, net (shares)		(232)	(21)	(232)
Shares reclassified to mandatorily redeemable capital stock, net		$ (23,163)	$ (2,109)	$ (23,163)
Ending Balance (in shares)	20,485	18,922	20,485	18,922
Ending balance	$ 2,048,523	$ 1,892,194	$ 2,048,523	$ 1,892,194
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	68,939	134,311	41,687	111,406
Total comprehensive income	(11,639)	(48,420)	15,613	(25,515)
Ending balance	57,300	85,891	57,300	85,891
Retained Earnings Total [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,084,450	993,668	1,077,810	976,334
Total comprehensive income	35,034	68,823	68,219	117,171
Distributions on mandatorily redeemable capital stock	(1)	(5)	(1)	(5)
Cash dividends on capital stock (4.25% and 5.50% respectively, annualized)	(26,430)	(19,612)	(52,975)	(50,626)
Ending balance	1,093,053	1,042,874	1,093,053	1,042,874
Retained Earnings, Unrestricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	855,314	800,447	855,311	792,783
Total comprehensive income	28,028	55,058	54,576	93,736
Distributions on mandatorily redeemable capital stock		(5)	(1)	(5)
Cash dividends on capital stock (4.25% and 5.50% respectively, annualized)	(26,430)	(19,612)	(52,975)	(50,626)
Ending balance	856,911	835,888	856,911	835,888
Retained Earnings, Restricted
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	229,136	193,221	222,499	183,551
Total comprehensive income	7,006	13,765	13,643	23,435
Ending balance	$ 236,142	$ 206,986	$ 236,142	$ 206,986

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Statements of Capital (Unaudited) (Parenthetical)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Annualized dividend rate on capital stock	5.50%	4.25%	5.50%	5.50%

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Statements of Cash Flows (Unaudited) - USD ($)		3 Months Ended	6 Months Ended
		Jun. 30, 2018	Jun. 30, 2019		Jun. 30, 2018
Operating Activities:
Net income		$ 68,823,000	$ 68,219,000		$ 117,171,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and depreciation			65,681,000		40,516,000
Changes in net derivative and hedging activities			(279,398,000)		131,793,000
Provision for (reversal of) credit losses		(357,000)	14,000		(461,000)
Net gains on trading securities			(20,656,000)		0
Net realized gains from sale of available-for-sale securities		(32,407,000)	0		(32,407,000)
Net realized losses from sale of held-to-maturity securities		45,000	0		44,550
Changes in:
Accrued interest receivable			(24,853,000)		(8,921,000)
Other assets			(3,598,000)		4,724,000
Accrued interest payable			10,213,000		22,467,000
Other liabilities			9,280,000		17,063,000
Total adjustments, net			(243,317,000)		174,819,000
Net cash provided by (used in) operating activities			(175,098,000)		291,990,000
Net change in:
Interest-bearing deposits			268,159,000		(206,548,000)
Securities purchased under agreements to resell			(1,036,984,000)		(1,320,066,000)
Federal funds sold			227,000,000		(122,000,000)
Purchases			(3,172,134,000)		0
Available-for-sale securities:
Proceeds from maturities			289,500,000		69,662,000
Proceeds from sales		203,841,000	0		203,841,000
Purchases			(595,818,000)		(481,325,000)
Held-to-maturity securities:
Proceeds from maturities			577,125,000		392,057,000
Proceeds from sales		41,226,000	0		41,226,000
Purchases			0		(352,231,000)
Advances:
Principal repayments			230,990,466,000		165,153,875,000
Disbursements to members			(231,826,261,000)		(165,114,221,000)
Mortgage loans held for portfolio:
Principal collections			605,627,000		589,590,000
Purchases from members			(587,879,000)		(1,137,284,000)
Purchases of premises, software, and equipment			(3,605,000)		(2,487,000)
Loans to other Federal Home Loan Banks:
Principal repayments		100,000,000	0		400,000,000
Disbursements		(100,000,000)	0		(400,000,000)
Net cash provided by (used in) investing activities			(4,264,804,000)		(2,285,911,000)
Financing Activities:
Changes in deposits			270,707,000		86,116,000
Net payments on derivative contracts with financing elements			1,296,000		(895,000)
Net proceeds from issuance of consolidated obligations:
Discount notes			151,187,829,000		179,134,205,000
Bonds			13,680,362,000		8,868,317,000
Payments for matured and retired consolidated obligations:
Discount notes			(149,470,837,000)		(177,520,886,000)
Bonds			(11,323,625,000)		(8,542,040,000)
Proceeds from issuance of capital stock			119,680,000		57,591,000
Proceeds from issuance of mandatorily redeemable capital stock			3,704,000	[1]	0
Payments for redemption/repurchase of mandatorily redeemable capital stock		(6,037,000)	(497,000)		(6,577,000)
Dividend payments on capital stock			(52,975,000)		(50,626,000)
Net cash provided by (used in) financing activities			4,415,644,000		2,025,205,000
Net increase (decrease) in cash and due from banks			(24,258,000)		31,284,000
Cash and due from banks at beginning of period			100,735,000		55,269,000
Cash and due from banks at end of period		86,553,000	76,477,000		86,553,000
Supplemental Disclosures:
Interest payments			728,901,000		498,725,000
Purchases of securities, traded but not yet settled			0		100,643,000
Affordable Housing Program payments	[2]	7,308,000	8,643,000		10,065,000
Capitalized interest on certain held-to-maturity securities			3,289,000		2,749,000
Par value of shares reclassified to mandatorily redeemable capital stock, net		$ 23,163,000	$ 2,109,000		$ 23,163,000

[1] Represents a purchase of capital stock by a captive insurance company member, which is considered mandatorily redeemable as a result of the Final Membership Rule.

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

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

Unless the context otherwise requires, the terms "we," "us," "our," and "Bank" refer to the Federal Home Loan Bank of Indianapolis or its management. We use acronyms and terms throughout these Notes to Financial Statements that are defined herein or in the Glossary of Terms.

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 have substantially duplicated the disclosures in the financial statements, and notes thereto, included in our 2018 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 2018 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 2018 Form 10-K in Note 1 - Summary of Significant Accounting Policies. See Note 2 - Recently Adopted and Issued Accounting Guidance for the changes effective January 1, 2019.

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 pertain to derivatives and hedging activities, fair value and provision for credit losses. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

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Recently Adopted and Issued Accounting Guidance

6 Months Ended

Jun. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted and Issued Accounting Guidance

Note 2 - Recently Adopted Accounting Guidance

Leases (ASU 2016-02). On February 25, 2016, the FASB issued guidance that requires a lessee, in an operating or finance lease, to recognize on the statement of condition a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. However, for a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize a lease asset and lease liability. Under previous guidance, a lessee was not required to recognize a lease asset and lease liability arising from an operating lease on the statement of condition. While this guidance does not fundamentally change lessor accounting, some changes have been made to align that guidance with the lessee guidance and other areas within GAAP.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. Upon adoption, we reported higher assets and liabilities as a result of including right-of-use assets and lease liabilities on the statement of condition, but its effect on our financial condition, results of operations, and cash flows was not material.

Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08).On March 30, 2017, the FASB issued guidance to shorten the amortization period for certain callable debt securities purchased at a premium. Specifically, the guidance requires the premium to be amortized to the earliest call date. No change is required for securities purchased at a discount, which continue to be amortized to their contractual maturities.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.

Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). On August 28, 2017, the FASB issued amended guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. This guidance requires that, for fair-value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness be presented in the same income statement line that is used to present the earnings effect of the hedged item.

This guidance was effective for the interim and annual periods beginning on January 1, 2019. The adoption of this guidance had no effect on our financial condition, net income, or cash flows. However, the adoption resulted in a prospective change in the statement of income in which the net losses resulting from the changes in the fair value of the hedging instruments and the changes in the fair value of the associated hedged items attributable to the hedged risk for qualifying fair-value hedging relationships for the three and six months ended June 30, 2019 of $8,575 and $22,451, respectively, are presented in interest income instead of other income.

Inclusion of SOFR OIS Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2018-16). On October 25, 2018, to facilitate the LIBOR to SOFR transition, the FASB issued guidance permitting the use of the OIS rate based on SOFR as an eligible U.S. benchmark interest rate for hedge accounting purposes.

This guidance was effective for the interim and annual periods beginning on January 1, 2019, concurrent with the adoption of ASU 2017-12. The adoption of this guidance had no effect on our financial condition, results of operations, or cash flows.

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Investment Securities

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3 - Investment Securities

Trading Securities.

In January 2019, the Bank began purchasing U.S. Treasury securities to enhance its liquidity.

Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net gains on trading securities held at period end	$	16,585	$	—	$	20,656	$	—
Net gains (losses) on trading securities that sold/matured during the period	—		—		—		—
Net gains on trading securities	$	16,585	$	—	$	20,656	$	—

Available-for-Sale Securities.

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
GSE and TVA debentures	$	4,094,182	$	34,685	$	(126	)	$	4,128,741
GSE MBS	4,229,618		43,231		(5,823		)	4,267,026
Total AFS securities	$	8,323,800	$	77,916	$	(5,949	)	$	8,395,767
December 31, 2018
GSE and TVA debentures	$	4,239,622	$	37,458	$	—		$	4,277,080
GSE MBS	3,410,988		27,797		(12,269		)	3,426,516
Total AFS securities	$	7,650,610	$	65,255	$	(12,269	)	$	7,703,596

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal and, if applicable, fair-value hedging 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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	41,574	$	(126	)	$	—	$	—		$	41,574	$	(126	)
GSE MBS	996,946		(4,557		)	143,310		(1,266		)	1,140,256		(5,823		)
Total impaired AFS securities	$	1,038,520	$	(4,683	)	$	143,310	$	(1,266	)	$	1,181,830	$	(5,949	)
December 31, 2018
GSE MBS	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)
Total impaired AFS securities	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)

Realized Gains and Losses. There were no sales of AFS securities during the three and six months ended June 30, 2019. As of June 30, 2019, we had no intention of selling any 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.

During the three months ended June 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. Of the OTTI AFS securities sold in 2018, none were in an unrealized loss position. Proceeds from the AFS sales totaled $203,841, resulting in realized gains of $32,407 determined by the specific identification method.

Held-to-Maturity Securities.

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

			Gross		Gross
			Unrecognized		Unrecognized
	Amortized		Holding		Holding			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
MBS:
Other U.S. obligations - guaranteed MBS	$	3,284,393	$	7,004	$	(10,851	)	$	3,280,546
GSE MBS	1,804,030		15,422		(2,420		)	1,817,032
Total HTM securities	$	5,088,423	$	22,426	$	(13,271	)	$	5,097,578
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	3,468,882	$	11,034	$	(1,552	)	$	3,478,364
GSE MBS	2,204,838		7,673		(14,730		)	2,197,781
Total HTM securities	$	5,673,720	$	18,707	$	(16,282	)	$	5,676,145

⁽¹⁾  Carrying value equals amortized cost. Includes adjustments made to the cost basis of an investment for accretion, amortization and collection of principal.

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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
MBS:
Other U.S. obligations - guaranteed MBS	$	1,060,651	$	(7,658	)	$	604,717	$	(3,193	)	$	1,665,368	$	(10,851	)
GSE MBS	112,610		(108		)	706,867		(2,312		)	819,477		(2,420		)
Total impaired HTM securities	$	1,173,261	$	(7,766	)	$	1,311,584	$	(5,505	)	$	2,484,845	$	(13,271	)
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	829,121	$	(873	)	$	417,952	$	(679	)	$	1,247,073	$	(1,552	)
GSE MBS	435,756		(890		)	716,647		(13,840		)	1,152,403		(14,730		)
Total impaired HTM securities	$	1,264,877	$	(1,763	)	$	1,134,599	$	(14,519	)	$	2,399,476	$	(16,282	)

Realized Gains and Losses. There were no sales of HTM securities during the three and six months ended June 30, 2019. As of June 30, 2019, we had no intention of selling any HTM 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.

During the three months ended June 30, 2018, for strategic, economic and operational reasons, we sold all of our AFS and HTM investments in private-label RMBS and ABS. The amortized cost of the HTM securities sold totaled $41,271. Proceeds from the HTM sales totaled $41,226, resulting in realized losses of $45 determined by the specific identification method. For each of these HTM securities, we had previously collected at least 85% of the principal outstanding at the time of acquisition due to prepayments or scheduled payments over the term. As such, the sales were considered maturities for purposes of security classification.

Other-Than-Temporary Impairment.

Evaluation Process and Results - 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, 2019 are considered temporary.

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Advances

6 Months Ended

Jun. 30, 2019

Advances [Abstract]

Advances

Note 4 - Advances

The following table presents advances outstanding by redemption term.

	June 30, 2019			December 31, 2018
Redemption Term	Amount		WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,540	4.82	$	—		—
Due in 1 year or less	14,533,278		2.41	15,595,985			2.47
Due after 1 year through 2 years	2,772,361		2.22	2,957,861			2.19
Due after 2 years through 3 years	1,705,538		2.35	2,444,486			2.46
Due after 3 years through 4 years	2,798,794		2.42	2,139,695			2.36
Due after 4 years through 5 years	3,824,147		2.51	1,977,925			2.76
Thereafter	8,029,497		2.40	7,713,409			2.41
Total advances, par value	33,665,155		2.40	32,829,361			2.44
Fair-value hedging adjustments	223,316			(106,499		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	2,296			4,806
Total advances	$	33,890,767		$	32,727,668

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

	Earlier of Redemption or Next Call Date				Earlier of Redemption or Next Put Date
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Overdrawn demand and overnight deposit accounts	$	1,540	$	—	$	1,540	$	—
Due in 1 year or less	21,307,139		22,574,897		15,789,378		15,595,985
Due after 1 year through 2 years	2,189,212		2,061,411		3,665,361		3,682,461
Due after 2 years through 3 years	1,453,238		1,356,186		2,525,938		3,660,486
Due after 3 years through 4 years	2,075,604		1,581,905		3,319,299		2,547,995
Due after 4 years through 5 years	2,323,647		1,425,525		3,739,647		2,633,030
Thereafter	4,314,775		3,829,437		4,623,992		4,709,404
Total advances, par value	$	33,665,155	$	32,829,361	$	33,665,155	$	32,829,361

Credit Risk Exposure and Security Terms. At June 30, 2019 and December 31, 2018, our top five borrowers held 42% and 40%, respectively, of total advances outstanding, at par. As security for the advances to these and our other borrowers, we held, or had access to, collateral with an estimated fair value at June 30, 2019 and December 31, 2018 that was well in excess of the advances outstanding on those dates, respectively. For information related to our credit risk on advances and allowance methodology for credit losses, see Note 7 - Allowance for Credit Losses in our 2018 Form 10-K.

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Mortgage Loans Held for Portfolio

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Mortgage Loans Held for Portfolio

Note 5 - Mortgage Loans Held for Portfolio

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

Term	June 30, 2019			December 31, 2018
Fixed-rate long-term mortgages	$	10,186,522		$	10,145,476
Fixed-rate medium-term (1) mortgages	931,624			992,059
Total mortgage loans held for portfolio, UPB	11,118,146			11,137,535
Unamortized premiums	248,770			251,778
Unamortized discounts	(2,348		)	(2,415		)
Fair-value hedging adjustments	(134		)	(1,320		)
Allowance for loan losses	(600		)	(600		)
Total mortgage loans held for portfolio, net	$	11,363,834		$	11,384,978

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

Type	June 30, 2019		December 31, 2018
Conventional	$	10,769,196	$	10,769,980
Government-guaranteed or -insured	348,950		367,555
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

Product	June 30, 2019		December 31, 2018
MPP	$	10,871,758	$	10,875,079
MPF Program	246,388		262,456
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

For information related to our credit risk on mortgage loans and allowance methodology for loan losses, see Note 6 - Allowance for Credit Losses.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Allowance for Credit Losses

Note 6 - 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 7 - Allowance for Credit Losses in our 2018 Form 10-K.

Conventional MortgageLoans.

Conventional MPP.The following table presents the activity in the LRA, which is reported in other liabilities.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2019			2018			2019			2018
Liability, beginning of period	$	176,637		$	153,274		$	174,096		$	148,715
Additions	3,920			8,325			6,990			13,471
Claims paid	(55		)	(79		)	(142		)	(249		)
Distributions to PFIs	(428		)	(181		)	(870		)	(598		)
Liability, end of period	$	180,074		$	161,339		$	180,074		$	161,339

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, 2019	Conventional		Government		Total
Past due:
30-59 days	$	36,192	$	8,740	$	44,932
60-89 days	9,371		1,643		11,014
90 days or more	10,709		2,023		12,732
Total past due	56,272		12,406		68,678
Total current	11,003,241		342,313		11,345,554
Total mortgage loans, recorded investment (1)	$	11,059,513	$	354,719	$	11,414,232
Delinquency Status as of December 31, 2018
Past due:
30-59 days	$	36,594	$	9,352	$	45,946
60-89 days	7,904		2,870		10,774
90 days or more	13,764		1,697		15,461
Total past due	58,262		13,919		72,181
Total current	11,003,243		359,758		11,363,001
Total mortgage loans, recorded investment (1)	$	11,061,505	$	373,677	$	11,435,182

Other Delinquency Statistics as of June 30, 2019	Conventional			Government			Total
In process of foreclosure(2)	$	4,877		$	—		$	4,877
Serious delinquency rate (3)	0.10		%	0.57		%	0.11		%
Past due 90 days or more still accruing interest (4)	$	9,777		$	2,023		$	11,800
On non-accrual status	$	1,577		$	—		$	1,577
Other Delinquency Statistics as of December 31, 2018
In process of foreclosure(2)	$	6,836		$	—		$	6,836
Serious delinquency rate (3)	0.12		%	0.45		%	0.14		%
Past due 90 days or more still accruing interest (4)	$	12,849		$	1,697		$	14,546
On non-accrual status	$	1,762		$	—		$	1,762

⁽¹⁾  The recorded investment in a loan is the UPB of the loan, adjusted for accrued interest, net of any deferred loan fees or costs, unamortized premiums or discounts (which may include the basis adjustment related to any gain or loss on a delivery commitment prior to being funded) and direct charge-offs. The recorded investment is not net of any valuation allowance.

⁽²⁾  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.

⁽³⁾  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.

⁽⁴⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the loan's delinquency status, we do not consider these loans to be on non-accrual status.

Allowance for Loan Losses on Mortgage Loans. The following table presents the components of the allowance for loan losses, including the credit enhancement waterfall for MPP.

Components of Allowance for Loan Losses	June 30, 2019			December 31, 2018
MPP estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	4,952		$	3,505
Portion of estimated incurred losses recoverable from credit enhancements:
PMI	(769		)	(627		)
LRA (2)	(2,492		)	(1,137		)
SMI	(1,206		)	(1,256		)
Total portion recoverable from credit enhancements	(4,467		)	(3,020		)
Allowance for unrecoverable PMI/SMI	15			15
Allowance for MPP loan losses	500			500
Allowance for MPF Program loan losses	100			100
Allowance for loan losses	$	600		$	600

⁽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 total LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

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	2019			2018			2019			2018
Balance, beginning of period	$	600		$	850		$	600		$	850
Charge-offs	(21		)	(33		)	(75		)	(183		)
Recoveries	61			140			61			394
Provision for (reversal of) loan losses	(40		)	(357		)	14			(461		)
Balance, end of period	$	600		$	600		$	600		$	600

Allowance for Loan Losses by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	485	$	563
Conventional loans individually evaluated for impairment (1)	115		37
Total allowance for loan losses	$	600	$	600
Recorded Investment by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	11,045,639	$	11,048,075
Conventional loans individually evaluated for impairment (1)	13,874		13,430
Total recorded investment in conventional loans	$	11,059,513	$	11,061,505

⁽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, 2019 and December 31, 2018 of $1,395 and $1,552, 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, 2019 and December 31, 2018 includes $9 and $16, respectively, for these potential claims.

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Derivative and Hedging Activities

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Note 7 - Derivatives and 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.

Uncleared Derivatives. For certain of 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, 2019 was $660, for which we have posted collateral in cash, including accrued interest, of $996 in the normal course of business. If our credit rating had been lowered by an NRSRO (from an S&P equivalent of AA+ to AA), we would not have been required to deliver additional collateral to our uncleared derivative counterparties at June 30, 2019.

Cleared Derivatives. The clearinghouse determines margin requirements which are generally not based on credit ratings. 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, 2019, we were not required by our clearing agents to post any additional margin.

Financial Statement Effect and Additional Financial Information.

Derivative Notional Amounts. We record derivative instruments, related cash collateral 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.

			Estimated Fair Value			Estimated Fair Value
	Notional		of Derivative			of Derivative
June 30, 2019	Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	37,134,290	$	48,789		$	309,583
Total derivatives designated as hedging instruments	37,134,290		48,789			309,583
Derivatives not designated as hedging instruments:
Interest-rate swaps	4,597,750		754			666
Swaptions	1,650,000		163			—
Interest-rate caps/floors	679,500		997			—
Interest-rate forwards	86,400		—			143
MDCs	85,748		163			5
Total derivatives not designated as hedging instruments	7,099,398		2,077			814
Total derivatives before adjustments	$	44,233,688	50,866			310,397
Netting adjustments and cash collateral (1)			106,270			(307,572		)
Total derivatives, net			$	157,136		$	2,825
December 31, 2018
Derivatives designated as hedging instruments:
Interest-rate swaps	$	35,135,617	$	174,990		$	123,331
Total derivatives designated as hedging instruments	35,135,617		174,990			123,331
Derivatives not designated as hedging instruments:
Interest-rate swaps	965,930		562			106
Swaptions	950,000		105			—
Interest-rate caps/floors	679,500		999			—
Interest-rate forwards	44,100		—			202
MDCs	43,753		146			23
Total derivatives not designated as hedging instruments	2,683,283		1,812			331
Total derivatives before adjustments	$	37,818,900	176,802			123,662
Netting adjustments and cash collateral (1)			(60,038		)	(102,595		)
Total derivatives, net			$	116,764		$	21,067

⁽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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

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 held or pledged.

	June 30, 2019						December 31, 2018
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	45,176		$	308,665		$	174,725		$	106,333
Cleared	5,527			1,584			1,931			17,104
Total gross recognized amount	50,703			310,249			176,656			123,437
Gross amounts of netting adjustments and cash collateral
Uncleared	(42,244		)	(305,988		)	(168,426		)	(85,491		)
Cleared	148,514			(1,584		)	108,388			(17,104		)
Total gross amounts of netting adjustments and cash collateral	106,270			(307,572		)	(60,038		)	(102,595		)
Net amounts after netting adjustments and cash collateral
Uncleared	2,932			2,677			6,299			20,842
Cleared	154,041			—			110,319			—
Total net amounts after netting adjustments and cash collateral	156,973			2,677			116,618			20,842
Derivative instruments not meeting netting requirements (1)	163			148			146			225
Total derivatives, at estimated fair value	$	157,136		$	2,825		$	116,764		$	21,067

⁽¹⁾  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.

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2019			2018			2019			2018
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	—		$	(715	)	$	—		$	6,609
Total net gain (loss) related to fair-value hedge ineffectiveness	—			(715		)	—			6,609
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(12,579		)	1,413			(12,086		)	1,585
Swaptions	(421		)	(177		)	(593		)	(235		)
Interest-rate caps/floors	553			117			(2		)	165
Interest-rate forwards	(580		)	(287		)	(1,219		)	961
Net interest settlements	(1,971		)	(1,766		)	(5,088		)	(2,404		)
MDCs	633			(300		)	1,201			(1,670		)
Total net gain (loss) on derivatives not designated as hedging instruments	(14,365		)	(1,000		)	(17,787		)	(1,598		)
Price alignment interest (1)	—			(1,273		)	—			(2,067		)
Net gains (losses) on derivatives and hedging activities in other income	$	(14,365	)	$	(2,988	)	$	(17,787	)	$	2,944

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts. For 2019, the portion related to derivatives not designated as hedging instruments is allocated to the applicable type of derivative.

Net gain (loss) related to fair-value hedge ineffectiveness previously presented in other income is presented in net interest income for the three and six months ended June 30, 2019. Prior period amounts presented have not been reclassified. SeeNote 2 - Recently Adopted Accounting Guidance for more details.

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

Three Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	230,420		$	229,361		$	(54,303	)	$	405,478
Derivatives	(230,259		)	(236,170		)	52,376			(414,053		)
Net changes in fair value before price alignment interest	161			(6,809		)	(1,927		)	(8,575		)
Price alignment interest (1)	(55		)	(158		)	(59		)	(272		)
Net interest settlements on derivatives (2) (3)	20,226			12,128			(11,645		)	20,709
Amortization/accretion of gains (losses) on active hedging relationships	—			96			115			211
Net gains (losses) on qualifying fair-value hedging relationships	20,332			5,257			(13,516		)	12,073
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	5			—			(2,694		)	(2,689		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	20,337		$	5,257		$	(16,210	)	$	9,384

Three Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(21,767	)	$	(45,249	)	$	13,604		$	(53,412	)
Derivatives	22,335			44,764			(14,402		)	52,697
Net changes in fair value (4)	568			(485		)	(798		)	(715		)
Net interest settlements on derivatives (2) (3)	13,565			4,487			(12,510		)	5,542
Amortization/accretion of gains (losses) on active hedging relationships	—			54			92			146
Net gains (losses) on qualifying fair-value hedging relationships	14,133			4,056			(13,216		)	4,973
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(11		)	—			(1,597		)	(1,608		)
Less: net changes in fair value (4)	(568		)	485			798			715
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	13,554		$	4,541		$	(14,015	)	$	4,080

Six Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	330,610		$	367,154		$	(98,875	)	$	598,889
Derivatives	(335,101		)	(385,206		)	98,967			(621,340		)
Net changes in fair value before price alignment interest	(4,491		)	(18,052		)	92			(22,451		)
Price alignment interest (1)	(305		)	(1,078		)	(6		)	(1,389		)
Net interest settlements on derivatives (2) (3)	43,458			25,611			(30,597		)	38,472
Amortization/accretion of gains (losses) on active hedging relationships	—			176			185			361
Net gains (losses) on qualifying fair-value hedging relationships	38,662			6,657			(30,326		)	14,993
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(2		)	—			(6,164		)	(6,166		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	38,660		$	6,657		$	(36,490	)	$	8,827

Six Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(122,515	)	$	(195,831	)	$	98,838		$	(219,508	)
Derivatives	125,943			199,091			(98,917		)	226,117
Net changes in fair value (4)	3,428			3,260			(79		)	6,609
Net interest settlements on derivatives (2) (3)	14,904			1,177			(11,246		)	4,835
Amortization/accretion of gains (losses) on active hedging relationships	—			140			181			321
Net gains (losses) on qualifying fair-value hedging relationships	18,332			4,577			(11,144		)	11,765
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(23		)	—			(2,298		)	(2,321		)
Less: net changes in fair value (4)	(3,428		)	(3,260		)	79			(6,609		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	14,881		$	1,317		$	(13,363	)	$	2,835

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

⁽²⁾  Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.

⁽³⁾  Excludes the interest income/expense of the respective hedged items recorded in net interest income.

⁽⁴⁾  Included in other income in 2018.

The following table presents the amortized cost of, and the related cumulative basis adjustments on, hedged items in qualifying fair-value hedging relationships.

June 30, 2019	Advances		Investments		CO Bonds
Amortized cost of hedged items (1)	$	16,125,040	$	8,323,801	$	14,448,619
Cumulative basis adjustments included in amortized cost:
For active fair-value hedging relationships	$	223,316	$	131,704	$	2,345
For discontinued fair-value hedging relationships	—		—		(107		)
Total cumulative fair-value hedging basis adjustments on hedged items (2)	$	223,316	$	131,704	$	2,238

⁽¹⁾  Includes only the portion of the amortized cost of the hedged items in qualifying fair-value hedging relationships.

⁽²⁾  Excludes any offsetting effect of the net fair value of the associated derivatives.

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Consolidated Obligations

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Consolidated Obligations

Note 8 - 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 of the FHLBanks' outstanding consolidated obligations. The par values of the FHLBanks' outstanding consolidated obligations totaled $1.0 trillion at both June 30, 2019 and December 31, 2018. As provided by the Bank Act and Finance Agency regulations, consolidated obligations are backed only by the financial resources of all FHLBanks.

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

Discount Notes	June 30, 2019			December 31, 2018
Book value	$	22,645,457		$	20,895,262
Par value	$	22,716,335		$	20,952,650
Weighted average effective interest rate	2.37		%	2.34		%

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

	June 30, 2019				December 31, 2018
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	23,250,685		2.17	$	18,456,870		2.07
Due after 1 year through 2 years	6,795,495			2.18	8,823,285			2.30
Due after 2 years through 3 years	2,534,970			2.37	2,640,620			2.42
Due after 3 years through 4 years	2,958,750			2.36	3,024,000			2.33
Due after 4 years through 5 years	977,625			2.66	998,375			2.54
Thereafter	6,211,350			3.19	6,431,700			3.21
Total CO bonds, par value	42,728,875			2.36	40,374,850			2.36
Unamortized premiums	22,164				23,493
Unamortized discounts	(14,021		)		(15,992		)
Unamortized concessions	(12,463		)		(14,085		)
Fair-value hedging adjustments	2,238				(102,801		)
Total CO bonds	$	42,726,793			$	40,265,465

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

Redemption Feature	June 30, 2019		December 31, 2018
Non-callable / non-putable	$	28,030,875	$	27,462,850
Callable	14,698,000		12,912,000
Total CO bonds, par value	$	42,728,875	$	40,374,850

Year of Contractual Maturity or Next Call Date	June 30, 2019		December 31, 2018
Due in 1 year or less	$	35,446,685	$	30,331,870
Due after 1 year through 2 years	3,615,495		6,069,285
Due after 2 years through 3 years	805,970		1,043,620
Due after 3 years through 4 years	719,750		626,000
Due after 4 years through 5 years	352,625		503,375
Thereafter	1,788,350		1,800,700
Total CO bonds, par value	$	42,728,875	$	40,374,850

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Affordable Housing Program

6 Months Ended

Jun. 30, 2019

Affordable Housing Program (AHP) [Abstract]

Affordable Housing Program

Note 9 - 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	2019			2018			2019			2018
Liability at beginning of period	$	42,841		$	35,086		$	40,747		$	32,166
Assessment (expense)	4,154			7,856			8,143			13,533
Subsidy usage, net (1)	(6,748		)	(7,308		)	(8,643		)	(10,065		)
Liability at end of period	$	40,247		$	35,634		$	40,247		$	35,634

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

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Capital

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

Capital

Note 10 - Capital

Mandatorily Redeemable Capital Stock.The following table presents the activity in our MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2019			2018			2019			2018
Liability at beginning of period	$	174,202		$	163,782		$	168,876		$	164,322
Reclassification from capital stock	—			23,163			2,109			23,163
Proceeds from issuance (1)	—			—			3,704			—
Redemptions/repurchases	(10		)	(6,037		)	(497		)	(6,577		)
Accrued distributions	1			5			1			5
Liability at end of period	$	174,193		$	180,913		$	174,193		$	180,913

⁽¹⁾  Represents a purchase of capital stock by a captive insurance company member, which is considered mandatorily redeemable as a result of the Final Membership Rule.

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, 2019		December 31, 2018
Year 1 (1)	$	819	$	1,316
Year 2	73		—
Year 3	8,576		8,649
Year 4	23,163		—
Year 5	5,670		26,723
Thereafter (2)	135,892		132,188
Total MRCS	$	174,193	$	168,876

⁽¹⁾  Balances at June 30, 2019 and December 31, 2018 include $806 and $1,304, 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 Class B stock held by certain captive insurance companies which begins immediately upon their respective terminations of membership no later than February 19, 2021, in accordance with the Final Membership Rule. However, upon their respective terminations, we currently intend to repurchase their excess stock (if any) in accordance with our capital plan, the balances of which at June 30, 2019 and December 31, 2018 totaled $61,642 and $57,938, respectively.

The following table presents the distributions related to MRCS.

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2019		2018		2019		2018
Recorded as interest expense	$	2,353	$	1,885	$	5,071	$	4,630
Recorded as distributions from retained earnings	1		5		1		5
Total	$	2,354	$	1,890	$	5,072	$	4,635

Capital Requirements. We are subject to three capital requirements under our capital plan and Finance Agency regulations as disclosed in Note 13 - Capital in our 2018 Form 10-K. As presented in the following table, we were in compliance with those requirements at June 30, 2019 and December 31, 2018.

	June 30, 2019						December 31, 2018
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	720,732		$	3,315,769		$	786,925		$	3,177,638
Total regulatory capital	$	2,805,992		$	3,315,769		$	2,616,468		$	3,177,638
Total regulatory capital-to-asset ratio	4.00		%	4.73		%	4.00		%	4.86		%
Leverage capital	$	3,507,490		$	4,973,654		$	3,270,585		$	4,766,457
Leverage ratio	5.00		%	7.09		%	5.00		%	7.29		%

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2019

AOCI Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 11 - Accumulated Other Comprehensive Income

The following tables present a summary of the changes in the components of AOCI.

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, 2018	$	115,072		$	29,353		$	(53	)	$	(10,061	)	$	134,311
OCI before reclassifications:
Net change in unrealized gains (losses)	(12,581		)	389			—			—			(12,192		)
Net change in fair value	—			2,665			—			—			2,665
Accretion of non-credit losses	—			—			53			—			53
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—			(32,407		)	—			—			(32,407		)
Pension benefits, net	—			—			—			(6,539		)	(6,539		)
Total other comprehensive income (loss)	(12,581		)	(29,353		)	53			(6,539		)	(48,420		)
Balance, June 30, 2018	$	102,491		$	—		$	—		$	(16,600	)	$	85,891
Balance, March 31, 2019	$	79,891		$	—		$	—		$	(10,952	)	$	68,939
OCI before reclassifications:
Net change in unrealized gains (losses)	(7,924		)	—			—			—			(7,924		)
Reclassifications from OCI to net income:
Pension benefits, net	—			—			—			(3,715		)	(3,715		)
Total other comprehensive income (loss)	(7,924		)	—			—			(3,715		)	(11,639		)
Balance, June 30, 2019	$	71,967		$	—		$	—		$	(14,667	)	$	57,300

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, 2017	$	92,519	$	29,322		$	(51	)	$	(10,384	)	$	111,406
OCI before reclassifications:
Net change in unrealized gains (losses)	9,972		392			—			—			10,364
Net change in fair value	—		2,693			—			—			2,693
Accretion of non-credit losses	—		—			51			—			51
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—		(32,407		)	—			—			(32,407		)
Pension benefits, net	—		—			—			(6,216		)	(6,216		)
Total other comprehensive income (loss)	9,972		(29,322		)	51			(6,216		)	(25,515		)
Balance, June 30, 2018	$	102,491	$	—		$	—		$	(16,600	)	$	85,891
Balance, December 31, 2018	$	52,986	$	—		$	—		$	(11,299	)	$	41,687
OCI before reclassifications:
Net change in unrealized gains (losses)	18,981		—			—			—			18,981
Reclassifications from OCI to net income:
Pension benefits, net	—		—			—			(3,368		)	(3,368		)
Total other comprehensive income (loss)	18,981		—			—			(3,368		)	15,613
Balance, June 30, 2019	$	71,967	$	—		$	—		$	(14,667	)	$	57,300

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Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

Note 12 - Segment Information

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2019								Three Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	44,218	$	15,326		$	59,544		$	53,672	$	16,231		$	69,903
Provision for (reversal of) credit losses	—		(40		)	(40		)	—		(357		)	(357		)
Other income (loss)	3,215		253			3,468			31,058		(750		)	30,308
Other expenses	20,400		3,464			23,864			20,433		3,456			23,889
Income before assessments	27,033		12,155			39,188			64,297		12,382			76,679
Affordable Housing Program assessments	2,939		1,215			4,154			6,618		1,238			7,856
Net income	$	24,094	$	10,940		$	35,034		$	57,679	$	11,144		$	68,823
	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	83,445	$	33,638		$	117,083		$	105,996	$	34,038		$	140,034
Provision for (reversal of) credit losses	—		14			14			—		(461		)	(461		)
Other income (loss)	6,400		84			6,484			37,400		(905		)	36,495
Other expenses	40,376		6,815			47,191			39,249		7,037			46,286
Income before assessments	49,469		26,893			76,362			104,147		26,557			130,704
Affordable Housing Program assessments	5,454		2,689			8,143			10,877		2,656			13,533
Net income	$	44,015	$	24,204		$	68,219		$	93,270	$	23,901		$	117,171

The following table presents the asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2019	$	58,785,959	$	11,363,834	$	70,149,793
December 31, 2018	54,026,721		11,384,978		65,411,699

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Estimated Fair Values

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Estimated Fair Values

Note 13 - 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, 2019
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	76,477	$	76,477	$	76,477	$	—	$	—	$	—
Interest-bearing deposits	656,051		656,051		655,575		476		—		—
Securities purchased under agreements to resell	4,249,710		4,249,721		—		4,249,721		—		—
Federal funds sold	2,858,000		2,858,000		—		2,858,000		—		—
Trading securities	3,192,790		3,192,790		—		3,192,790		—		—
AFS securities	8,395,767		8,395,767		—		8,395,767		—		—
HTM securities	5,088,423		5,097,578		—		5,097,578		—		—
Advances	33,890,767		33,850,844		—		33,850,844		—		—
Mortgage loans held for portfolio, net	11,363,834		11,433,525		—		11,425,719		7,806		—
Accrued interest receivable	140,913		140,913		—		140,913		—		—
Derivative assets, net	157,136		157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		24,247		—		—		—
Liabilities:
Deposits	855,307		855,307		—		855,307		—		—
Consolidated obligations:
Discount notes	22,645,457		22,652,667		—		22,652,667		—		—
Bonds	42,726,793		43,014,071		—		43,014,071		—		—
Accrued interest payable	190,180		190,180		—		190,180		—		—
Derivative liabilities, net	2,825		2,825		—		310,397		—		(307,572		)
MRCS	174,193		174,193		174,193		—		—		—

	December 31, 2018
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	100,735	$	100,735	$	100,735	$	—	$	—	$	—
Interest-bearing deposits	1,210,705		1,210,705		1,210,039		666		—		—
Securities purchased under agreements to resell	3,212,726		3,212,728		—		3,212,728		—		—
Federal funds sold	3,085,000		3,085,000		—		3,085,000		—		—
AFS securities	7,703,596		7,703,596		—		7,703,596		—		—
HTM securities	5,673,720		5,676,145		—		5,676,145		—		—
Advances	32,727,668		32,669,145		—		32,669,145		—		—
Mortgage loans held for portfolio, net	11,384,978		11,212,978		—		11,202,984		9,994		—
Accrued interest receivable	124,611		124,611		—		124,611		—		—
Derivative assets, net	116,764		116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		21,122		—		—		—
Liabilities:
Deposits	500,440		500,440		—		500,440		—		—
Consolidated obligations:
Discount notes	20,895,262		20,895,446		—		20,895,446		—		—
Bonds	40,265,465		40,137,791		—		40,137,791		—		—
Accrued interest payable	179,728		179,728		—		179,728		—		—
Derivative liabilities, net	21,067		21,067		—		123,662		—		(102,595		)
MRCS	168,876		168,876		168,876		—		—		—

⁽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.

⁽²⁾  Included in other assets on the statement of condition.

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 17 - Estimated Fair Values in our 2018 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, 2019	Total		Level 1		Level 2		Level 3		Adjustments (1)
Trading securities:
U.S. Treasury securities	$	3,192,790	$	—	$	3,192,790	$	—	$	—
Total trading securities	3,192,790		—		3,192,790		—		—
AFS securities:
GSE and TVA debentures	4,128,741		—		4,128,741		—		—
GSE MBS	4,267,026		—		4,267,026		—		—
Total AFS securities	8,395,767		—		8,395,767		—		—
Derivative assets:
Interest-rate related	156,973		—		50,703		—		106,270
Interest-rate forwards	—		—		—		—		—
MDCs	163		—		163		—		—
Total derivative assets, net	157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		—		—		—
Total assets at recurring estimated fair value	$	11,769,940	$	24,247	$	11,639,423	$	—	$	106,270
Derivative liabilities:
Interest-rate related	$	2,677	$	—	$	310,249	$	—	$	(307,572	)
Interest-rate forwards	143		—		143		—		—
MDCs	5		—		5		—		—
Total derivative liabilities, net	2,825		—		310,397		—		(307,572		)
Total liabilities at recurring estimated fair value	$	2,825	$	—	$	310,397	$	—	$	(307,572	)
Mortgage loans held for portfolio (3)	$	1,808	$	—	$	—	$	1,808	$	—
Total assets at non-recurring estimated fair value	$	1,808	$	—	$	—	$	1,808	$	—
December 31, 2018
AFS securities:
GSE and TVA debentures	$	4,277,080	$	—	$	4,277,080	$	—	$	—
GSE MBS	3,426,516		—		3,426,516		—		—
Total AFS securities	7,703,596		—		7,703,596		—		—
Derivative assets:
Interest-rate related	116,618		—		176,656		—		(60,038		)
MDCs	146		—		146		—		—
Total derivative assets, net	116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		—		—		—
Total assets at recurring estimated fair value	$	7,841,482	$	21,122	$	7,880,398	$	—	$	(60,038	)
Derivative liabilities:
Interest-rate related	$	20,842	$	—	$	123,437	$	—	$	(102,595	)
Interest-rate forwards	202		—		202		—		—
MDCs	23		—		23		—		—
Total derivative liabilities, net	21,067		—		123,662		—		(102,595		)
Total liabilities at recurring estimated fair value	$	21,067	$	—	$	123,662	$	—	$	(102,595	)
Mortgage loans held for portfolio (4)	$	1,734	$	—	$	—	$	1,734	$	—
Total assets at non-recurring estimated fair value	$	1,734	$	—	$	—	$	1,734	$	—

⁽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.

⁽²⁾  Included in other assets on the statement of condition.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2019.

⁽⁴⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2018.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14 - Commitments and Contingencies

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

	June 30, 2019
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	225,917	$	119,351	$	345,268
Unused lines of credit (1)	1,027,068		—		1,027,068
Commitments to fund additional advances (2)	116,960		—		116,960
Commitments to fund or purchase mortgage loans, net (3)	85,748		—		85,748

⁽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.

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.

Additional discussion of other commitments and contingencies is provided inNote 4 - Advances; Note 5 - Mortgage Loans Held for Portfolio; Note 7 - Derivatives and Hedging Activities; Note 8 - Consolidated Obligations; Note 10 - Capital; and Note 13 - Estimated Fair Values.

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Related Party and Other Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party and Other Transactions

Note 15 - Related Party and Other Transactions

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

	June 30, 2019				December 31, 2018
Balances with Directors' Financial Institutions	Par value		% of Total		Par value		% of Total
Capital stock	$	48,792	2	%	$	43,315	2	%
Advances	658,255		2	%	600,869		2	%

The par values at June 30, 2019 reflect changes in the composition of directors' financial institutions effective January 1, 2019, due to changes in board membership resulting from the 2018 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	2019		2018		2019		2018
Net capital stock issuances (redemptions and repurchases)	$	4,542	$	—	$	4,568	$	846
Net advances (repayments)	47,206		4,400		85,445		(92,900		)
Mortgage loan purchases	6,734		10,434		11,328		16,789

Transactions with Other FHLBanks. Occasionally, we loan or borrow short-term funds to/from other FHLBanks. The following table presents the loans to other FHLBanks.

	Three Months Ended June 30,					Six Months Ended June 30,
Loans to other FHLBanks	2019		2018			2019		2018
Disbursements	$	—	$	(100,000	)	$	—	$	(400,000	)
Principal repayments	—		100,000			—		400,000

There were no borrowings from other FHLBanks during the three and six months ended June 30, 2019 or 2018. There were no loans to or borrowings from other FHLBanks outstanding at June 30, 2019 or December 31, 2018.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

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.

Use of Estimates

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 pertain to derivatives and hedging activities, fair value and provision for credit losses. Although the reported amounts and disclosures reflect our best estimates, actual results could differ significantly from these estimates.

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Investment Securities Trading Securities (Tables)

6 Months Ended

Jun. 30, 2019

Trading Securities Member [Member]

Debt and Equity Securities, FV-NI [Line Items]

Gain (Loss) on Securities [Table Text Block]

Net Gains (Losses) on Trading Securities. The following table presents net gains (losses) on trading securities, excluding any offsetting effect of gains (losses) on the associated derivatives.

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net gains on trading securities held at period end	$	16,585	$	—	$	20,656	$	—
Net gains (losses) on trading securities that sold/matured during the period	—		—		—		—
Net gains on trading securities	$	16,585	$	—	$	20,656	$	—

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Investment Securities AFS Securities (Tables)

6 Months Ended

Jun. 30, 2019

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		Unrealized		Unrealized			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
GSE and TVA debentures	$	4,094,182	$	34,685	$	(126	)	$	4,128,741
GSE MBS	4,229,618		43,231		(5,823		)	4,267,026
Total AFS securities	$	8,323,800	$	77,916	$	(5,949	)	$	8,395,767
December 31, 2018
GSE and TVA debentures	$	4,239,622	$	37,458	$	—		$	4,277,080
GSE MBS	3,410,988		27,797		(12,269		)	3,426,516
Total AFS securities	$	7,650,610	$	65,255	$	(12,269	)	$	7,703,596

⁽¹⁾  Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal and, if applicable, fair-value hedging adjustments.

AFS 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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
GSE and TVA debentures	$	41,574	$	(126	)	$	—	$	—		$	41,574	$	(126	)
GSE MBS	996,946		(4,557		)	143,310		(1,266		)	1,140,256		(5,823		)
Total impaired AFS securities	$	1,038,520	$	(4,683	)	$	143,310	$	(1,266	)	$	1,181,830	$	(5,949	)
December 31, 2018
GSE MBS	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)
Total impaired AFS securities	$	1,256,816	$	(12,269	)	$	—	$	—		$	1,256,816	$	(12,269	)

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Investment Securities HTM Securities (Tables)

6 Months Ended

Jun. 30, 2019

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		Holding		Holding			Estimated
June 30, 2019	Cost (1)		Gains		Losses			Fair Value
MBS:
Other U.S. obligations - guaranteed MBS	$	3,284,393	$	7,004	$	(10,851	)	$	3,280,546
GSE MBS	1,804,030		15,422		(2,420		)	1,817,032
Total HTM securities	$	5,088,423	$	22,426	$	(13,271	)	$	5,097,578
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	3,468,882	$	11,034	$	(1,552	)	$	3,478,364
GSE MBS	2,204,838		7,673		(14,730		)	2,197,781
Total HTM securities	$	5,673,720	$	18,707	$	(16,282	)	$	5,676,145

⁽¹⁾ 

HTM Securities

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, 2019	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
MBS:
Other U.S. obligations - guaranteed MBS	$	1,060,651	$	(7,658	)	$	604,717	$	(3,193	)	$	1,665,368	$	(10,851	)
GSE MBS	112,610		(108		)	706,867		(2,312		)	819,477		(2,420		)
Total impaired HTM securities	$	1,173,261	$	(7,766	)	$	1,311,584	$	(5,505	)	$	2,484,845	$	(13,271	)
December 31, 2018
MBS:
Other U.S. obligations - guaranteed MBS	$	829,121	$	(873	)	$	417,952	$	(679	)	$	1,247,073	$	(1,552	)
GSE MBS	435,756		(890		)	716,647		(13,840		)	1,152,403		(14,730		)
Total impaired HTM securities	$	1,264,877	$	(1,763	)	$	1,134,599	$	(14,519	)	$	2,399,476	$	(16,282	)

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Advances Advances (Tables)

6 Months Ended

Jun. 30, 2019

Advances [Abstract]

Summary of Advances Redemption Terms

The following table presents advances outstanding by redemption term.

	June 30, 2019			December 31, 2018
Redemption Term	Amount		WAIR %	Amount			WAIR %
Overdrawn demand and overnight deposit accounts	$	1,540	4.82	$	—		—
Due in 1 year or less	14,533,278		2.41	15,595,985			2.47
Due after 1 year through 2 years	2,772,361		2.22	2,957,861			2.19
Due after 2 years through 3 years	1,705,538		2.35	2,444,486			2.46
Due after 3 years through 4 years	2,798,794		2.42	2,139,695			2.36
Due after 4 years through 5 years	3,824,147		2.51	1,977,925			2.76
Thereafter	8,029,497		2.40	7,713,409			2.41
Total advances, par value	33,665,155		2.40	32,829,361			2.44
Fair-value hedging adjustments	223,316			(106,499		)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	2,296			4,806
Total advances	$	33,890,767		$	32,727,668

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

	Earlier of Redemption or Next Call Date				Earlier of Redemption or Next Put Date
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Overdrawn demand and overnight deposit accounts	$	1,540	$	—	$	1,540	$	—
Due in 1 year or less	21,307,139		22,574,897		15,789,378		15,595,985
Due after 1 year through 2 years	2,189,212		2,061,411		3,665,361		3,682,461
Due after 2 years through 3 years	1,453,238		1,356,186		2,525,938		3,660,486
Due after 3 years through 4 years	2,075,604		1,581,905		3,319,299		2,547,995
Due after 4 years through 5 years	2,323,647		1,425,525		3,739,647		2,633,030
Thereafter	4,314,775		3,829,437		4,623,992		4,709,404
Total advances, par value	$	33,665,155	$	32,829,361	$	33,665,155	$	32,829,361

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Mortgage Loans Held for Portfolio Mortgage Loans (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [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, 2019			December 31, 2018
Fixed-rate long-term mortgages	$	10,186,522		$	10,145,476
Fixed-rate medium-term (1) mortgages	931,624			992,059
Total mortgage loans held for portfolio, UPB	11,118,146			11,137,535
Unamortized premiums	248,770			251,778
Unamortized discounts	(2,348		)	(2,415		)
Fair-value hedging adjustments	(134		)	(1,320		)
Allowance for loan losses	(600		)	(600		)
Total mortgage loans held for portfolio, net	$	11,363,834		$	11,384,978

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

Type	June 30, 2019		December 31, 2018
Conventional	$	10,769,196	$	10,769,980
Government-guaranteed or -insured	348,950		367,555
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

Product	June 30, 2019		December 31, 2018
MPP	$	10,871,758	$	10,875,079
MPF Program	246,388		262,456
Total mortgage loans held for portfolio, UPB	$	11,118,146	$	11,137,535

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Allowance for Credit Losses Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2019

Allowance for Credit Losses [Abstract]

Changes in Lender Risk Account

The following table presents the activity in the LRA, which is reported in other liabilities.

	Three Months Ended June 30,						Six Months Ended June 30,
LRA Activity	2019			2018			2019			2018
Liability, beginning of period	$	176,637		$	153,274		$	174,096		$	148,715
Additions	3,920			8,325			6,990			13,471
Claims paid	(55		)	(79		)	(142		)	(249		)
Distributions to PFIs	(428		)	(181		)	(870		)	(598		)
Liability, end of period	$	180,074		$	161,339		$	180,074		$	161,339

Recorded Investment in Delinquent Mortgage Loans

Delinquency Status as of June 30, 2019	Conventional		Government		Total
Past due:
30-59 days	$	36,192	$	8,740	$	44,932
60-89 days	9,371		1,643		11,014
90 days or more	10,709		2,023		12,732
Total past due	56,272		12,406		68,678
Total current	11,003,241		342,313		11,345,554
Total mortgage loans, recorded investment (1)	$	11,059,513	$	354,719	$	11,414,232
Delinquency Status as of December 31, 2018
Past due:
30-59 days	$	36,594	$	9,352	$	45,946
60-89 days	7,904		2,870		10,774
90 days or more	13,764		1,697		15,461
Total past due	58,262		13,919		72,181
Total current	11,003,243		359,758		11,363,001
Total mortgage loans, recorded investment (1)	$	11,061,505	$	373,677	$	11,435,182

Other Delinquency Statistics as of June 30, 2019	Conventional			Government			Total
In process of foreclosure(2)	$	4,877		$	—		$	4,877
Serious delinquency rate (3)	0.10		%	0.57		%	0.11		%
Past due 90 days or more still accruing interest (4)	$	9,777		$	2,023		$	11,800
On non-accrual status	$	1,577		$	—		$	1,577
Other Delinquency Statistics as of December 31, 2018
In process of foreclosure(2)	$	6,836		$	—		$	6,836
Serious delinquency rate (3)	0.12		%	0.45		%	0.14		%
Past due 90 days or more still accruing interest (4)	$	12,849		$	1,697		$	14,546
On non-accrual status	$	1,762		$	—		$	1,762

⁽¹⁾  The recorded investment in a loan is the UPB of the loan, adjusted for accrued interest, net of any deferred loan fees or costs, unamortized premiums or discounts (which may include the basis adjustment related to any gain or loss on a delivery commitment prior to being funded) and direct charge-offs. The recorded investment is not net of any valuation allowance.

⁽²⁾  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.

⁽³⁾  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.

⁽⁴⁾  Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the loan's delinquency status, we do not consider these loans to be on non-accrual status.

Impact of MPP Risk Sharing Structure on Allowance for Credit Losses

The following table presents the components of the allowance for loan losses, including the credit enhancement waterfall for MPP.

Components of Allowance for Loan Losses	June 30, 2019			December 31, 2018
MPP estimated incurred losses remaining after borrower's equity, before credit enhancements (1)	$	4,952		$	3,505
Portion of estimated incurred losses recoverable from credit enhancements:
PMI	(769		)	(627		)
LRA (2)	(2,492		)	(1,137		)
SMI	(1,206		)	(1,256		)
Total portion recoverable from credit enhancements	(4,467		)	(3,020		)
Allowance for unrecoverable PMI/SMI	15			15
Allowance for MPP loan losses	500			500
Allowance for MPF Program loan losses	100			100
Allowance for loan losses	$	600		$	600

⁽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 total LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

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	2019			2018			2019			2018
Balance, beginning of period	$	600		$	850		$	600		$	850
Charge-offs	(21		)	(33		)	(75		)	(183		)
Recoveries	61			140			61			394
Provision for (reversal of) loan losses	(40		)	(357		)	14			(461		)
Balance, end of period	$	600		$	600		$	600		$	600

Allowance for Loan Losses by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	485	$	563
Conventional loans individually evaluated for impairment (1)	115		37
Total allowance for loan losses	$	600	$	600
Recorded Investment by Impairment Methodology	June 30, 2019		December 31, 2018
Conventional loans collectively evaluated for impairment	$	11,045,639	$	11,048,075
Conventional loans individually evaluated for impairment (1)	13,874		13,430
Total recorded investment in conventional loans	$	11,059,513	$	11,061,505

⁽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, 2019 and December 31, 2018 of $1,395 and $1,552, 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, 2019 and December 31, 2018 includes $9 and $16, respectively, for these potential claims.

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Derivative and Hedging Activities Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amount and Estimated Fair Value of Derivative Instruments

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

			Estimated Fair Value			Estimated Fair Value
	Notional		of Derivative			of Derivative
June 30, 2019	Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Interest-rate swaps	$	37,134,290	$	48,789		$	309,583
Total derivatives designated as hedging instruments	37,134,290		48,789			309,583
Derivatives not designated as hedging instruments:
Interest-rate swaps	4,597,750		754			666
Swaptions	1,650,000		163			—
Interest-rate caps/floors	679,500		997			—
Interest-rate forwards	86,400		—			143
MDCs	85,748		163			5
Total derivatives not designated as hedging instruments	7,099,398		2,077			814
Total derivatives before adjustments	$	44,233,688	50,866			310,397
Netting adjustments and cash collateral (1)			106,270			(307,572		)
Total derivatives, net			$	157,136		$	2,825
December 31, 2018
Derivatives designated as hedging instruments:
Interest-rate swaps	$	35,135,617	$	174,990		$	123,331
Total derivatives designated as hedging instruments	35,135,617		174,990			123,331
Derivatives not designated as hedging instruments:
Interest-rate swaps	965,930		562			106
Swaptions	950,000		105			—
Interest-rate caps/floors	679,500		999			—
Interest-rate forwards	44,100		—			202
MDCs	43,753		146			23
Total derivatives not designated as hedging instruments	2,683,283		1,812			331
Total derivatives before adjustments	$	37,818,900	176,802			123,662
Netting adjustments and cash collateral (1)			(60,038		)	(102,595		)
Total derivatives, net			$	116,764		$	21,067

⁽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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

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 held or pledged.

	June 30, 2019						December 31, 2018
	Derivative Assets			Derivative Liabilities			Derivative Assets			Derivative Liabilities
Derivative instruments meeting netting requirements:
Gross recognized amount
Uncleared	$	45,176		$	308,665		$	174,725		$	106,333
Cleared	5,527			1,584			1,931			17,104
Total gross recognized amount	50,703			310,249			176,656			123,437
Gross amounts of netting adjustments and cash collateral
Uncleared	(42,244		)	(305,988		)	(168,426		)	(85,491		)
Cleared	148,514			(1,584		)	108,388			(17,104		)
Total gross amounts of netting adjustments and cash collateral	106,270			(307,572		)	(60,038		)	(102,595		)
Net amounts after netting adjustments and cash collateral
Uncleared	2,932			2,677			6,299			20,842
Cleared	154,041			—			110,319			—
Total net amounts after netting adjustments and cash collateral	156,973			2,677			116,618			20,842
Derivative instruments not meeting netting requirements (1)	163			148			146			225
Total derivatives, at estimated fair value	$	157,136		$	2,825		$	116,764		$	21,067

⁽¹⁾  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.

	Three Months Ended June 30,						Six Months Ended June 30,
Type of Hedge	2019			2018			2019			2018
Net gain (loss) related to fair-value hedge ineffectiveness:
Interest-rate swaps	$	—		$	(715	)	$	—		$	6,609
Total net gain (loss) related to fair-value hedge ineffectiveness	—			(715		)	—			6,609
Net gain (loss) on derivatives not designated as hedging instruments:
Economic hedges:
Interest-rate swaps	(12,579		)	1,413			(12,086		)	1,585
Swaptions	(421		)	(177		)	(593		)	(235		)
Interest-rate caps/floors	553			117			(2		)	165
Interest-rate forwards	(580		)	(287		)	(1,219		)	961
Net interest settlements	(1,971		)	(1,766		)	(5,088		)	(2,404		)
MDCs	633			(300		)	1,201			(1,670		)
Total net gain (loss) on derivatives not designated as hedging instruments	(14,365		)	(1,000		)	(17,787		)	(1,598		)
Price alignment interest (1)	—			(1,273		)	—			(2,067		)
Net gains (losses) on derivatives and hedging activities in other income	$	(14,365	)	$	(2,988	)	$	(17,787	)	$	2,944

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts. For 2019, the portion related to derivatives not designated as hedging instruments is allocated to the applicable type of derivative.

Net gain (loss) related to fair-value hedge ineffectiveness previously presented in other income is presented in net interest income for the three and six months ended June 30, 2019. Prior period amounts presented have not been reclassified. SeeNote 2 - Recently Adopted Accounting Guidance for more details.

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

Three Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	230,420		$	229,361		$	(54,303	)	$	405,478
Derivatives	(230,259		)	(236,170		)	52,376			(414,053		)
Net changes in fair value before price alignment interest	161			(6,809		)	(1,927		)	(8,575		)
Price alignment interest (1)	(55		)	(158		)	(59		)	(272		)
Net interest settlements on derivatives (2) (3)	20,226			12,128			(11,645		)	20,709
Amortization/accretion of gains (losses) on active hedging relationships	—			96			115			211
Net gains (losses) on qualifying fair-value hedging relationships	20,332			5,257			(13,516		)	12,073
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	5			—			(2,694		)	(2,689		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	20,337		$	5,257		$	(16,210	)	$	9,384

Three Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(21,767	)	$	(45,249	)	$	13,604		$	(53,412	)
Derivatives	22,335			44,764			(14,402		)	52,697
Net changes in fair value (4)	568			(485		)	(798		)	(715		)
Net interest settlements on derivatives (2) (3)	13,565			4,487			(12,510		)	5,542
Amortization/accretion of gains (losses) on active hedging relationships	—			54			92			146
Net gains (losses) on qualifying fair-value hedging relationships	14,133			4,056			(13,216		)	4,973
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(11		)	—			(1,597		)	(1,608		)
Less: net changes in fair value (4)	(568		)	485			798			715
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	13,554		$	4,541		$	(14,015	)	$	4,080

Six Months Ended June 30, 2019	Advances			Investments			CO Bonds			Total
Changes in fair value:
Hedged items	$	330,610		$	367,154		$	(98,875	)	$	598,889
Derivatives	(335,101		)	(385,206		)	98,967			(621,340		)
Net changes in fair value before price alignment interest	(4,491		)	(18,052		)	92			(22,451		)
Price alignment interest (1)	(305		)	(1,078		)	(6		)	(1,389		)
Net interest settlements on derivatives (2) (3)	43,458			25,611			(30,597		)	38,472
Amortization/accretion of gains (losses) on active hedging relationships	—			176			185			361
Net gains (losses) on qualifying fair-value hedging relationships	38,662			6,657			(30,326		)	14,993
Amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(2		)	—			(6,164		)	(6,166		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	38,660		$	6,657		$	(36,490	)	$	8,827

Six Months Ended June 30, 2018
Changes in fair value:
Hedged items	$	(122,515	)	$	(195,831	)	$	98,838		$	(219,508	)
Derivatives	125,943			199,091			(98,917		)	226,117
Net changes in fair value (4)	3,428			3,260			(79		)	6,609
Net interest settlements on derivatives (2) (3)	14,904			1,177			(11,246		)	4,835
Amortization/accretion of gains (losses) on active hedging relationships	—			140			181			321
Net gains (losses) on qualifying fair-value hedging relationships	18,332			4,577			(11,144		)	11,765
Add: amortization/accretion of gains (losses) on discontinued fair-value hedging relationships	(23		)	—			(2,298		)	(2,321		)
Less: net changes in fair value (4)	(3,428		)	(3,260		)	79			(6,609		)
Net gains (losses) on derivatives and hedging activities in net interest income (3)	$	14,881		$	1,317		$	(13,363	)	$	2,835

⁽¹⁾  Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

⁽²⁾  Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.

⁽³⁾  Excludes the interest income/expense of the respective hedged items recorded in net interest income.

⁽⁴⁾  Included in other income in 2018.

Effect of Fair Value Hedge-Related Derivative Instruments

The following table presents the amortized cost of, and the related cumulative basis adjustments on, hedged items in qualifying fair-value hedging relationships.

June 30, 2019	Advances		Investments		CO Bonds
Amortized cost of hedged items (1)	$	16,125,040	$	8,323,801	$	14,448,619
Cumulative basis adjustments included in amortized cost:
For active fair-value hedging relationships	$	223,316	$	131,704	$	2,345
For discontinued fair-value hedging relationships	—		—		(107		)
Total cumulative fair-value hedging basis adjustments on hedged items (2)	$	223,316	$	131,704	$	2,238

⁽¹⁾  Includes only the portion of the amortized cost of the hedged items in qualifying fair-value hedging relationships.

⁽²⁾  Excludes any offsetting effect of the net fair value of the associated derivatives.

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Consolidated Obligations (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019			December 31, 2018
Book value	$	22,645,457		$	20,895,262
Par value	$	22,716,335		$	20,952,650
Weighted average effective interest rate	2.37		%	2.34		%

CO Bonds by Year of Contractual Maturity

Year of Contractual Maturity or Next Call Date	June 30, 2019		December 31, 2018
Due in 1 year or less	$	35,446,685	$	30,331,870
Due after 1 year through 2 years	3,615,495		6,069,285
Due after 2 years through 3 years	805,970		1,043,620
Due after 3 years through 4 years	719,750		626,000
Due after 4 years through 5 years	352,625		503,375
Thereafter	1,788,350		1,800,700
Total CO bonds, par value	$	42,728,875	$	40,374,850

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

	June 30, 2019				December 31, 2018
Year of Contractual Maturity	Amount			WAIR%	Amount			WAIR%
Due in 1 year or less	$	23,250,685		2.17	$	18,456,870		2.07
Due after 1 year through 2 years	6,795,495			2.18	8,823,285			2.30
Due after 2 years through 3 years	2,534,970			2.37	2,640,620			2.42
Due after 3 years through 4 years	2,958,750			2.36	3,024,000			2.33
Due after 4 years through 5 years	977,625			2.66	998,375			2.54
Thereafter	6,211,350			3.19	6,431,700			3.21
Total CO bonds, par value	42,728,875			2.36	40,374,850			2.36
Unamortized premiums	22,164				23,493
Unamortized discounts	(14,021		)		(15,992		)
Unamortized concessions	(12,463		)		(14,085		)
Fair-value hedging adjustments	2,238				(102,801		)
Total CO bonds	$	42,726,793			$	40,265,465

CO Bonds by Redemption Feature

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

Redemption Feature	June 30, 2019		December 31, 2018
Non-callable / non-putable	$	28,030,875	$	27,462,850
Callable	14,698,000		12,912,000
Total CO bonds, par value	$	42,728,875	$	40,374,850

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Affordable Housing Program (Tables)

6 Months Ended

Jun. 30, 2019

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	2019			2018			2019			2018
Liability at beginning of period	$	42,841		$	35,086		$	40,747		$	32,166
Assessment (expense)	4,154			7,856			8,143			13,533
Subsidy usage, net (1)	(6,748		)	(7,308		)	(8,643		)	(10,065		)
Liability at end of period	$	40,247		$	35,634		$	40,247		$	35,634

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

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Capital (Tables)

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

Mandatorily Redeemable Capital Stock

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, 2019		December 31, 2018
Year 1 (1)	$	819	$	1,316
Year 2	73		—
Year 3	8,576		8,649
Year 4	23,163		—
Year 5	5,670		26,723
Thereafter (2)	135,892		132,188
Total MRCS	$	174,193	$	168,876

⁽¹⁾  Balances at June 30, 2019 and December 31, 2018 include $806 and $1,304, 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 Class B stock held by certain captive insurance companies which begins immediately upon their respective terminations of membership no later than February 19, 2021, in accordance with the Final Membership Rule. However, upon their respective terminations, we currently intend to repurchase their excess stock (if any) in accordance with our capital plan, the balances of which at June 30, 2019 and December 31, 2018 totaled $61,642 and $57,938, respectively.

The following table presents the activity in our MRCS.

	Three Months Ended June 30,						Six Months Ended June 30,
MRCS Activity	2019			2018			2019			2018
Liability at beginning of period	$	174,202		$	163,782		$	168,876		$	164,322
Reclassification from capital stock	—			23,163			2,109			23,163
Proceeds from issuance (1)	—			—			3,704			—
Redemptions/repurchases	(10		)	(6,037		)	(497		)	(6,577		)
Accrued distributions	1			5			1			5
Liability at end of period	$	174,193		$	180,913		$	174,193		$	180,913

⁽¹⁾  Represents a purchase of capital stock by a captive insurance company member, which is considered mandatorily redeemable as a result of the Final Membership Rule.

Schedule of Distributions on Mandatorily Redeemable Capital Stock

The following table presents the distributions related to MRCS.

	Three Months Ended June 30,				Six Months Ended June 30,
MRCS Distributions	2019		2018		2019		2018
Recorded as interest expense	$	2,353	$	1,885	$	5,071	$	4,630
Recorded as distributions from retained earnings	1		5		1		5
Total	$	2,354	$	1,890	$	5,072	$	4,635

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

As presented in the following table, we were in compliance with those requirements at June 30, 2019 and December 31, 2018.

	June 30, 2019						December 31, 2018
Regulatory Capital Requirements	Required			Actual			Required			Actual
Risk-based capital	$	720,732		$	3,315,769		$	786,925		$	3,177,638
Total regulatory capital	$	2,805,992		$	3,315,769		$	2,616,468		$	3,177,638
Total regulatory capital-to-asset ratio	4.00		%	4.73		%	4.00		%	4.86		%
Leverage capital	$	3,507,490		$	4,973,654		$	3,270,585		$	4,766,457
Leverage ratio	5.00		%	7.09		%	5.00		%	7.29		%

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2019

AOCI Attributable to Parent [Abstract]

Schedule of Changes in the Components of AOCI

The following tables present a summary of the changes in the components of AOCI.

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, 2018	$	115,072		$	29,353		$	(53	)	$	(10,061	)	$	134,311
OCI before reclassifications:
Net change in unrealized gains (losses)	(12,581		)	389			—			—			(12,192		)
Net change in fair value	—			2,665			—			—			2,665
Accretion of non-credit losses	—			—			53			—			53
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—			(32,407		)	—			—			(32,407		)
Pension benefits, net	—			—			—			(6,539		)	(6,539		)
Total other comprehensive income (loss)	(12,581		)	(29,353		)	53			(6,539		)	(48,420		)
Balance, June 30, 2018	$	102,491		$	—		$	—		$	(16,600	)	$	85,891
Balance, March 31, 2019	$	79,891		$	—		$	—		$	(10,952	)	$	68,939
OCI before reclassifications:
Net change in unrealized gains (losses)	(7,924		)	—			—			—			(7,924		)
Reclassifications from OCI to net income:
Pension benefits, net	—			—			—			(3,715		)	(3,715		)
Total other comprehensive income (loss)	(7,924		)	—			—			(3,715		)	(11,639		)
Balance, June 30, 2019	$	71,967		$	—		$	—		$	(14,667	)	$	57,300

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, 2017	$	92,519	$	29,322		$	(51	)	$	(10,384	)	$	111,406
OCI before reclassifications:
Net change in unrealized gains (losses)	9,972		392			—			—			10,364
Net change in fair value	—		2,693			—			—			2,693
Accretion of non-credit losses	—		—			51			—			51
Reclassifications from OCI to net income:
Net realized gains from sale of AFS securities	—		(32,407		)	—			—			(32,407		)
Pension benefits, net	—		—			—			(6,216		)	(6,216		)
Total other comprehensive income (loss)	9,972		(29,322		)	51			(6,216		)	(25,515		)
Balance, June 30, 2018	$	102,491	$	—		$	—		$	(16,600	)	$	85,891
Balance, December 31, 2018	$	52,986	$	—		$	—		$	(11,299	)	$	41,687
OCI before reclassifications:
Net change in unrealized gains (losses)	18,981		—			—			—			18,981
Reclassifications from OCI to net income:
Pension benefits, net	—		—			—			(3,368		)	(3,368		)
Total other comprehensive income (loss)	18,981		—			—			(3,368		)	15,613
Balance, June 30, 2019	$	71,967	$	—		$	—		$	(14,667	)	$	57,300

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Financial Performance by Operating Segment

The following table presents our financial performance by operating segment.

	Three Months Ended June 30, 2019								Three Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	44,218	$	15,326		$	59,544		$	53,672	$	16,231		$	69,903
Provision for (reversal of) credit losses	—		(40		)	(40		)	—		(357		)	(357		)
Other income (loss)	3,215		253			3,468			31,058		(750		)	30,308
Other expenses	20,400		3,464			23,864			20,433		3,456			23,889
Income before assessments	27,033		12,155			39,188			64,297		12,382			76,679
Affordable Housing Program assessments	2,939		1,215			4,154			6,618		1,238			7,856
Net income	$	24,094	$	10,940		$	35,034		$	57,679	$	11,144		$	68,823
	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Traditional		Mortgage Loans			Total			Traditional		Mortgage Loans			Total
Net interest income	$	83,445	$	33,638		$	117,083		$	105,996	$	34,038		$	140,034
Provision for (reversal of) credit losses	—		14			14			—		(461		)	(461		)
Other income (loss)	6,400		84			6,484			37,400		(905		)	36,495
Other expenses	40,376		6,815			47,191			39,249		7,037			46,286
Income before assessments	49,469		26,893			76,362			104,147		26,557			130,704
Affordable Housing Program assessments	5,454		2,689			8,143			10,877		2,656			13,533
Net income	$	44,015	$	24,204		$	68,219		$	93,270	$	23,901		$	117,171

Schedule of Segment Assets by Segment

The following table presents the asset balances by operating segment.

By Date	Traditional		Mortgage Loans		Total
June 30, 2019	$	58,785,959	$	11,363,834	$	70,149,793
December 31, 2018	54,026,721		11,384,978		65,411,699

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Estimated Fair Values Estimated Fair Values (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	76,477	$	76,477	$	76,477	$	—	$	—	$	—
Interest-bearing deposits	656,051		656,051		655,575		476		—		—
Securities purchased under agreements to resell	4,249,710		4,249,721		—		4,249,721		—		—
Federal funds sold	2,858,000		2,858,000		—		2,858,000		—		—
Trading securities	3,192,790		3,192,790		—		3,192,790		—		—
AFS securities	8,395,767		8,395,767		—		8,395,767		—		—
HTM securities	5,088,423		5,097,578		—		5,097,578		—		—
Advances	33,890,767		33,850,844		—		33,850,844		—		—
Mortgage loans held for portfolio, net	11,363,834		11,433,525		—		11,425,719		7,806		—
Accrued interest receivable	140,913		140,913		—		140,913		—		—
Derivative assets, net	157,136		157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		24,247		—		—		—
Liabilities:
Deposits	855,307		855,307		—		855,307		—		—
Consolidated obligations:
Discount notes	22,645,457		22,652,667		—		22,652,667		—		—
Bonds	42,726,793		43,014,071		—		43,014,071		—		—
Accrued interest payable	190,180		190,180		—		190,180		—		—
Derivative liabilities, net	2,825		2,825		—		310,397		—		(307,572		)
MRCS	174,193		174,193		174,193		—		—		—

	December 31, 2018
			Estimated Fair Value
	Carrying										Netting
Financial Instruments	Value		Total		Level 1		Level 2		Level 3		Adjustments (1)
Assets:
Cash and due from banks	$	100,735	$	100,735	$	100,735	$	—	$	—	$	—
Interest-bearing deposits	1,210,705		1,210,705		1,210,039		666		—		—
Securities purchased under agreements to resell	3,212,726		3,212,728		—		3,212,728		—		—
Federal funds sold	3,085,000		3,085,000		—		3,085,000		—		—
AFS securities	7,703,596		7,703,596		—		7,703,596		—		—
HTM securities	5,673,720		5,676,145		—		5,676,145		—		—
Advances	32,727,668		32,669,145		—		32,669,145		—		—
Mortgage loans held for portfolio, net	11,384,978		11,212,978		—		11,202,984		9,994		—
Accrued interest receivable	124,611		124,611		—		124,611		—		—
Derivative assets, net	116,764		116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		21,122		—		—		—
Liabilities:
Deposits	500,440		500,440		—		500,440		—		—
Consolidated obligations:
Discount notes	20,895,262		20,895,446		—		20,895,446		—		—
Bonds	40,265,465		40,137,791		—		40,137,791		—		—
Accrued interest payable	179,728		179,728		—		179,728		—		—
Derivative liabilities, net	21,067		21,067		—		123,662		—		(102,595		)
MRCS	168,876		168,876		168,876		—		—		—

⁽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.

⁽²⁾  Included in other assets on the statement of condition.

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, 2019	Total		Level 1		Level 2		Level 3		Adjustments (1)
Trading securities:
U.S. Treasury securities	$	3,192,790	$	—	$	3,192,790	$	—	$	—
Total trading securities	3,192,790		—		3,192,790		—		—
AFS securities:
GSE and TVA debentures	4,128,741		—		4,128,741		—		—
GSE MBS	4,267,026		—		4,267,026		—		—
Total AFS securities	8,395,767		—		8,395,767		—		—
Derivative assets:
Interest-rate related	156,973		—		50,703		—		106,270
Interest-rate forwards	—		—		—		—		—
MDCs	163		—		163		—		—
Total derivative assets, net	157,136		—		50,866		—		106,270
Grantor trust assets (2)	24,247		24,247		—		—		—
Total assets at recurring estimated fair value	$	11,769,940	$	24,247	$	11,639,423	$	—	$	106,270
Derivative liabilities:
Interest-rate related	$	2,677	$	—	$	310,249	$	—	$	(307,572	)
Interest-rate forwards	143		—		143		—		—
MDCs	5		—		5		—		—
Total derivative liabilities, net	2,825		—		310,397		—		(307,572		)
Total liabilities at recurring estimated fair value	$	2,825	$	—	$	310,397	$	—	$	(307,572	)
Mortgage loans held for portfolio (3)	$	1,808	$	—	$	—	$	1,808	$	—
Total assets at non-recurring estimated fair value	$	1,808	$	—	$	—	$	1,808	$	—
December 31, 2018
AFS securities:
GSE and TVA debentures	$	4,277,080	$	—	$	4,277,080	$	—	$	—
GSE MBS	3,426,516		—		3,426,516		—		—
Total AFS securities	7,703,596		—		7,703,596		—		—
Derivative assets:
Interest-rate related	116,618		—		176,656		—		(60,038		)
MDCs	146		—		146		—		—
Total derivative assets, net	116,764		—		176,802		—		(60,038		)
Grantor trust assets (2)	21,122		21,122		—		—		—
Total assets at recurring estimated fair value	$	7,841,482	$	21,122	$	7,880,398	$	—	$	(60,038	)
Derivative liabilities:
Interest-rate related	$	20,842	$	—	$	123,437	$	—	$	(102,595	)
Interest-rate forwards	202		—		202		—		—
MDCs	23		—		23		—		—
Total derivative liabilities, net	21,067		—		123,662		—		(102,595		)
Total liabilities at recurring estimated fair value	$	21,067	$	—	$	123,662	$	—	$	(102,595	)
Mortgage loans held for portfolio (4)	$	1,734	$	—	$	—	$	1,734	$	—
Total assets at non-recurring estimated fair value	$	1,734	$	—	$	—	$	1,734	$	—

⁽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.

⁽²⁾  Included in other assets on the statement of condition.

⁽³⁾  Amounts are as of the date the fair value adjustment was recorded during the six months endedJune 30, 2019.

⁽⁴⁾  Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2018.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Off-Balance Sheet Commitments

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

	June 30, 2019
Type of Commitment	Expire within one year		Expire after one year		Total
Letters of credit outstanding	$	225,917	$	119,351	$	345,268
Unused lines of credit (1)	1,027,068		—		1,027,068
Commitments to fund additional advances (2)	116,960		—		116,960
Commitments to fund or purchase mortgage loans, net (3)	85,748		—		85,748

⁽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.

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Related Party and Other Transactions (Tables)

6 Months Ended

Jun. 30, 2019

Related Party Transaction [Line Items]

Loans to Other Federal Home Loan Banks and Principal Repayments

Occasionally, we loan or borrow short-term funds to/from other FHLBanks. The following table presents the loans to other FHLBanks.

	Three Months Ended June 30,					Six Months Ended June 30,
Loans to other FHLBanks	2019		2018			2019		2018
Disbursements	$	—	$	(100,000	)	$	—	$	(400,000	)
Principal repayments	—		100,000			—		400,000

Directors' Financial Institutions

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 of capital stock and advances for directors' financial institutions and their balances as a percent of the total balances on our statement of condition.

	June 30, 2019				December 31, 2018
Balances with Directors' Financial Institutions	Par value		% of Total		Par value		% of Total
Capital stock	$	48,792	2	%	$	43,315	2	%
Advances	658,255		2	%	600,869		2	%

Directors' Financial institutions Activity

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	2019		2018		2019		2018
Net capital stock issuances (redemptions and repurchases)	$	4,542	$	—	$	4,568	$	846
Net advances (repayments)	47,206		4,400		85,445		(92,900		)
Mortgage loan purchases	6,734		10,434		11,328		16,789

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Recently Adopted and Issued Accounting Guidance Targeted Improvements to Accounting for Hedging Activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net gain (loss) related to fair-value hedge ineffectiveness	$ 0	$ (715)	$ 0	$ 6,609
Accounting Standards Update 2017-12 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net gain (loss) related to fair-value hedge ineffectiveness	$ (8,575)		$ (22,451)

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Investment Securities Trading Securities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt and Equity Securities, FV-NI [Line Items]
Net gains on trading securities held at period end	$ 16,585,000	$ 0	$ 20,656,000	$ 0
Net gains (losses) on trading securities that sold/matured during the period	0	0	0	0
Net gains on trading securities	$ 16,585,000	$ 0	$ 20,656,000	$ 0

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Investment Securities AFS Securities - Major Security Types (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	[1]	$ 8,323,800	$ 7,650,610
Gross Unrealized Gains		77,916	65,255
Gross Unrealized Losses		(5,949)	(12,269)
Estimated Fair Value		8,395,767	7,703,596
GSE and TVA debentures
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	[1]	4,094,182	4,239,622
Gross Unrealized Gains		34,685	37,458
Gross Unrealized Losses		(126)	0
Estimated Fair Value		4,128,741	4,277,080
GSE MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	[1]	4,229,618	3,410,988
Gross Unrealized Gains		43,231	27,797
Gross Unrealized Losses		(5,823)	(12,269)
Estimated Fair Value		$ 4,267,026	$ 3,426,516

[1] Includes adjustments made to the cost basis of an investment for accretion, amortization, collection of principal and, if applicable, fair-value hedging adjustments.

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Investment Securities AFS Securities - Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-sale Securities [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 1,038,520	$ 1,256,816
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(4,683)	(12,269)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	143,310	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1,266)	0
Debt Securities, Available-for-sale, Unrealized Loss Position	1,181,830	1,256,816
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(5,949)	(12,269)
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale Securities [Line Items]
Less than 12 Months, Estimated Fair Value	41,574
Less than 12 Months, Unrealized Losses	(126)
12 Months or More, Estimated Fair Value	0
12 Months or More, Unrealized Losses	0
Total Estimated Fair Value	41,574
Total Unrealized Losses	(126)
GSE MBS
Available-for-sale Securities [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	996,946	1,256,816
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(4,557)	(12,269)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	143,310	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1,266)	0
Debt Securities, Available-for-sale, Unrealized Loss Position	1,140,256	1,256,816
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ (5,823)	$ (12,269)

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Investment Securities AFS Securities - Realized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Securities, Available-for-sale [Abstract]
Proceeds from sale		$ 203,841	$ 0	$ 203,841
Net realized gains from sale of available-for-sale securities	$ 0	$ 32,407	$ 0	$ 32,407

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Investment Securities HTM Securities - Major Security Types (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	$ 5,088,423	$ 5,673,720
Gross Unrecognized Holding Gains		22,426	18,707
Gross Unrecognized Holding Losses		(13,271)	(16,282)
Estimated fair value		5,097,578	5,676,145
Other U.S. obligations - guaranteed MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	3,284,393	3,468,882
Gross Unrecognized Holding Gains		7,004	11,034
Gross Unrecognized Holding Losses		(10,851)	(1,552)
Estimated fair value		3,280,546	3,478,364
GSE MBS
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	[1]	1,804,030	2,204,838
Gross Unrecognized Holding Gains		15,422	7,673
Gross Unrecognized Holding Losses		(2,420)	(14,730)
Estimated fair value		$ 1,817,032	$ 2,197,781

[1] (1) Carrying value equals amortized cost. Includes adjustments made to the cost basis of an investment for accretion, amortization and collection of principal.

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Investment Securities HTM Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value	$ 1,173,261	$ 1,264,877
Less than 12 Months, Unrealized Losses	(7,766)	(1,763)
12 Months or More, Estimated Fair Value	1,311,584	1,134,599
12 Months or More, Unrealized Losses	(5,505)	(14,519)
Total Estimated Fair Value	2,484,845	2,399,476
Unrealized Loss Position	(13,271)	(16,282)
Other U.S. obligations - guaranteed MBS
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value	1,060,651	829,121
Less than 12 Months, Unrealized Losses	(7,658)	(873)
12 Months or More, Estimated Fair Value	604,717	417,952
12 Months or More, Unrealized Losses	(3,193)	(679)
Total Estimated Fair Value	1,665,368	1,247,073
Unrealized Loss Position	(10,851)	(1,552)
GSE MBS
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 Months, Estimated Fair Value	112,610	435,756
Less than 12 Months, Unrealized Losses	(108)	(890)
12 Months or More, Estimated Fair Value	706,867	716,647
12 Months or More, Unrealized Losses	(2,312)	(13,840)
Total Estimated Fair Value	819,477	1,152,403
Unrealized Loss Position	$ (2,420)	$ (14,730)

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Investment Securities HTM Securities - Realized Gains and Losses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Debt Securities, Held-to-maturity [Abstract]
Held to Maturity Securities, Sold Security, at Amortized Cost		$ 41,271,000		$ 41,271,000
Proceeds from sale		41,226,000	$ 0	41,226,000
Net realized losses from sale of held-to-maturity securities	$ 0	$ (45,000)	$ 0	$ (44,550)

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Advances - Advances by Year of Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Year of Contractual Maturity, Amount
Overdrawn demand and overnight deposit accounts	$ 1,540	$ 0
Due in 1 year or less	14,533,278	15,595,985
Due after 1 year through 2 years	2,772,361	2,957,861
Due after 2 years through 3 years	1,705,538	2,444,486
Due after 3 years through 4 years	2,798,794	2,139,695
Due after 4 years through 5 years	3,824,147	1,977,925
Thereafter	8,029,497	7,713,409
Total advances, par value	$ 33,665,155	$ 32,829,361
Year of Contractual Maturity, WAIR %
Overdrawn demand and overnight deposit accounts	4.82%	0.00%
Due in 1 year or less	2.41%	2.47%
Due after 1 year through 2 years	2.22%	2.19%
Due after 2 years through 3 years	2.35%	2.46%
Due after 3 years through 4 years	2.42%	2.36%
Due after 4 years through 5 years	2.51%	2.76%
Thereafter	2.40%	2.41%
Total advances, par value	2.40%	2.44%
Fair-value hedging adjustments	$ 223,316	$ (106,499)
Unamortized swap termination fees associated with modified advances, net of deferred prepayment fees	2,296	4,806
Total Advances	$ 33,890,767	$ 32,727,668

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Advances - Advances Outstanding Earlier of Contractual Maturity or Next Call Date and Year of Contractual Maturity or Next Put Date (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Advances [Abstract]
Overdrawn demand and overnight deposit accounts	$ 1,540	$ 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	21,307,139	22,574,897
Due after 1 year through 2 years	2,189,212	2,061,411
Due after 2 years through 3 years	1,453,238	1,356,186
Due after 3 years through 4 years	2,075,604	1,581,905
Due after 4 years through 5 years	2,323,647	1,425,525
Thereafter	4,314,775	3,829,437
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	15,789,378	15,595,985
Due after 1 year through 2 years	3,665,361	3,682,461
Due after 2 years through 3 years	2,525,938	3,660,486
Due after 3 years through 4 years	3,319,299	2,547,995
Due after 4 years through 5 years	3,739,647	2,633,030
Thereafter	4,623,992	4,709,404
Total advances, par value	$ 33,665,155	$ 32,829,361

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Advances - Narrative (Details)	Jun. 30, 2019	Dec. 31, 2018
Advances [Abstract]
Percent of advances par value held by top five borrowers	42.00%	40.00%

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Mortgage Loans Held for Portfolio Mortgage Loans (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		$ 11,118,146		$ 11,137,535
Loans and Leases Receivable, Unamortized Premiums		248,770		251,778
Loans and Leases Receivable, Unamortized Discounts		(2,348)		(2,415)
Loans and Leases Receivable, Hedging Basis Adjustment		(134)		(1,320)
Loans and Leases Receivable, Allowance		(600)		(600)
Loans and Leases Receivable, Net Amount		11,363,834		11,384,978
Government-guaranteed or -insured
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		348,950		367,555
Fixed-rate long-term mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		10,186,522		10,145,476
Loans Receivable With Fixed Rates Of Interest Medium Term [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance	[1]	$ 931,624		992,059
Loans Receivable With Fixed Rates Of Interest Medium Term [Member] | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage Loans on Real Estate, Original Contractual Terms		15 years
Conventional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		$ 10,769,196		10,769,980
Loans and Leases Receivable, Allowance		(600)	$ (600)	(600)	$ (600)	$ (850)	$ (850)
Mortgage Purchase Program [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		10,871,758		10,875,079
Mortgage Purchase Program [Member] | Conventional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Allowance		(500)		(500)
Mortgage Partnership Finance Program [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans And Leases Receivable, Unpaid Principal Balance		246,388		262,456
Mortgage Partnership Finance Program [Member] | Conventional
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Allowance		$ (100)		$ (100)

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

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Allowance for Credit Losses Allowance for Credit Losses - Credit Enhancements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Change in Lender Risk Account Balance [Roll Forward]
Balance of LRA, beginning of period	$ 176,637	$ 153,274	$ 174,096	$ 148,715
Additions	3,920	8,325	6,990	13,471
Claims paid	(55)	(79)	(142)	(249)
Distributions to PFIs	(428)	(181)	(870)	(598)
Balance of LRA, end of period	$ 180,074	$ 161,339	$ 180,074	$ 161,339

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Allowance for Credit Losses Allowance for Credit Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 68,678	$ 72,181
Total current		11,345,554	11,363,001
Total mortgage loans, recorded investment	[1]	11,414,232	11,435,182
In process of foreclosure	[2]	$ 4,877	$ 6,836
Serious delinquency rate	[3]	0.11%	0.14%
Past due 90 days or more still accruing interest	[4]	$ 11,800	$ 14,546
On non-accrual status		$ 1,577	1,762
Delinquent loan receivable		90 days
30-59 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 44,932	45,946
60-89 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		11,014	10,774
90 days or more
Financing Receivable, Recorded Investment [Line Items]
Total past due		12,732	15,461
Government
Financing Receivable, Recorded Investment [Line Items]
Total past due		12,406	13,919
Total current		342,313	359,758
Total mortgage loans, recorded investment	[1]	354,719	373,677
In process of foreclosure	[2]	$ 0	$ 0
Serious delinquency rate	[3]	0.57%	0.45%
Past due 90 days or more still accruing interest	[4]	$ 2,023	$ 1,697
On non-accrual status		0	0
Government | 30-59 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		8,740	9,352
Government | 60-89 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		1,643	2,870
Government | 90 days or more
Financing Receivable, Recorded Investment [Line Items]
Total past due		2,023	1,697
Conventional
Financing Receivable, Recorded Investment [Line Items]
Total past due		56,272	58,262
Total current		11,003,241	11,003,243
Total mortgage loans, recorded investment	[1]	11,059,513	11,061,505
In process of foreclosure	[2]	$ 4,877	$ 6,836
Serious delinquency rate	[3]	0.10%	0.12%
Past due 90 days or more still accruing interest	[4]	$ 9,777	$ 12,849
On non-accrual status		1,577	1,762
Conventional | 30-59 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		36,192	36,594
Conventional | 60-89 days
Financing Receivable, Recorded Investment [Line Items]
Total past due		9,371	7,904
Conventional | 90 days or more
Financing Receivable, Recorded Investment [Line Items]
Total past due		$ 10,709	$ 13,764

[1] The recorded investment in a loan is the UPB of the loan, adjusted for accrued interest, net of any deferred loan fees or costs, unamortized premiums or discounts (which may include the basis adjustment related to any gain or loss on a delivery commitment prior to being funded) and direct charge-offs. The recorded investment is not net of any valuation allowance.

[2] 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.

[3] 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.

[4] Although our past due scheduled/scheduled MPP loans are classified as loans past due 90 days or more based on the loan's delinquency status, we do not consider these loans to be on non-accrual status.

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Allowance for Credit Losses Allowance for Credit Losses - Credit Waterfall (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses		$ 600		$ 600
Conventional
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses		600	$ 600	600	$ 600	$ 850	$ 850
Mortgage Purchase Program | Conventional
Financing Receivable, Allowance for Credit Losses [Line Items]
Estimated incurred losses remaining after borrower's equity, before credit enhancements	[1]	4,952		3,505
Portion of estimated losses recoverable from		(4,467)		(3,020)
Allowance for unrecoverable PMI/SMI		15		15
Allowance for loan losses		500		500
Mortgage Purchase Program | Conventional | PMI
Financing Receivable, Allowance for Credit Losses [Line Items]
Portion of estimated losses recoverable from		(769)		(627)
Mortgage Purchase Program | Conventional | LRA
Financing Receivable, Allowance for Credit Losses [Line Items]
Portion of estimated losses recoverable from	[2]	(2,492)		(1,137)
Mortgage Purchase Program | Conventional | SMI
Financing Receivable, Allowance for Credit Losses [Line Items]
Portion of estimated losses recoverable from		(1,206)		(1,256)
Mortgage Partnership Finance Program | Conventional
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses		$ 100		$ 100
Maximum
Financing Receivable, Allowance for Credit Losses [Line Items]
Loss emergence period		24 months

[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 total LRA balance is available to cover any losses not yet incurred and to distribute any excess funds to the PFIs.

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Allowance for Credit Losses Allowance for Credit Losses - Rollforward (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses on mortgage loans, beginning of period				$ 600
Provision for (reversal of) loan losses		$ (40)	$ (357)	14	$ (461)
Allowance for loan losses on mortgage loans, end of period		600		600
Total allowance for loan losses		600		600		$ 600	$ 600
Total mortgage loans, recorded investment	[1]					11,414,232	11,435,182
Conventional
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses on mortgage loans, beginning of period		600	850	600	850
Charge-offs		(21)	(33)	(75)	(183)
Recoveries		61	140	61	394
Provision for (reversal of) loan losses		(40)	(357)	14	(461)
Allowance for loan losses on mortgage loans, end of period		600	600	600	600
Allowance for loan losses by impairment, conventional loans collectively evaluated for impairment						485	563
Allowance for loan losses by impairment, conventional loans individually evaluated for impairment	[2]					115	37
Total allowance for loan losses		$ 600	$ 850	$ 600	$ 850	600	600
Recorded investment, loans collectively evaluated for impairment						11,045,639	11,048,075
Recorded investment, loans individually evaluated for impairment	[2]					13,874	13,430
Total mortgage loans, recorded investment	[1]					11,059,513	11,061,505
Principal paid in full by servicers						1,395	1,552
Potential claims included in allowance						$ 9	$ 16

[1] The recorded investment in a loan is the UPB of the loan, adjusted for accrued interest, net of any deferred loan fees or costs, unamortized premiums or discounts (which may include the basis adjustment related to any gain or loss on a delivery commitment prior to being funded) and direct charge-offs. The recorded investment is not net of any valuation allowance.

[2] 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, 2019 and December 31, 2018 of $1,395 and $1,552, 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, 2019 and December 31, 2018 includes $9 and $16, respectively, for these potential claims.

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Derivative and Hedging Activities Derivatives and Hedging Activities - Narrative (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Net liability position, aggregate fair value	$ 660
Collateral posted, fair value	$ 996

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Derivative and Hedging Activities Derivative Notional Amounts (Details) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		$ 44,233,688,000	$ 37,818,900,000
Estimated fair value of derivative assets		50,866,000	176,802,000
Estimated fair value of derivative liabilities		310,397,000	123,662,000
Netting adjustments and cash collateral, derivative asset	[1],[2]	106,270,000	(60,038,000)
Netting adjustments and cash collateral, derivative liability	[1],[2]	(307,572,000)	(102,595,000)
Total derivatives, at estimated fair value		157,136,000	116,764,000
Total derivatives, at estimated fair value		2,825,000	21,067,000
Cash collateral pledged to counterparties		414,838,000	127,952,000
Cash collateral received from counterparties		996,000	85,395,000
Securities pledged as collateral		0	0
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		37,134,290,000	35,135,617,000
Estimated fair value of derivative assets		48,789,000	174,990,000
Estimated fair value of derivative liabilities		309,583,000	123,331,000
Derivatives designated as hedging instruments | Interest-rate swaps
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		37,134,290,000	35,135,617,000
Estimated fair value of derivative assets		48,789,000	174,990,000
Estimated fair value of derivative liabilities		309,583,000	123,331,000
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		7,099,398,000	2,683,283,000
Estimated fair value of derivative assets		2,077,000	1,812,000
Estimated fair value of derivative liabilities		814,000	331,000
Derivatives not designated as hedging instruments | Interest-rate swaps
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		4,597,750,000	965,930,000
Estimated fair value of derivative assets		754,000	562,000
Estimated fair value of derivative liabilities		666,000	106,000
Derivatives not designated as hedging instruments | Swaptions
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		1,650,000,000	950,000,000
Estimated fair value of derivative assets		163,000	105,000
Estimated fair value of derivative liabilities		0	0
Derivatives not designated as hedging instruments | Interest-rate caps/floors
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		679,500,000	679,500,000
Estimated fair value of derivative assets		997,000	999,000
Estimated fair value of derivative liabilities		0	0
Derivatives not designated as hedging instruments | Interest-rate forwards
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		86,400,000	44,100,000
Estimated fair value of derivative assets		0	0
Estimated fair value of derivative liabilities		143,000	202,000
Mortgage Receivable [Member] | Derivatives not designated as hedging instruments | Interest-rate forwards
Derivatives, Fair Value [Line Items]
Notional amount of derivatives		85,748,000	43,753,000
Estimated fair value of derivative assets		163,000	146,000
Estimated fair value of derivative liabilities		$ 5,000	$ 23,000

[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.

[2] 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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

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Derivative and Hedging Activities Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Derivative Assets
Gross recognized amount		$ 50,703	$ 176,656
Gross amounts of netting adjustments and cash collateral	[1],[2]	106,270	(60,038)
Net amounts after netting adjustments and cash collateral		156,973	116,618
Derivative instruments not meeting netting requirements	[3]	163	146
Total derivatives, at estimated fair value		157,136	116,764
Derivative Liabilities
Gross recognized amount		310,249	123,437
Gross amounts of netting adjustments and cash collateral	[1],[2]	(307,572)	(102,595)
Net amounts after netting adjustments and cash collateral		2,677	20,842
Derivative instruments not meeting netting requirements	[3]	148	225
Total derivatives, at estimated fair value		2,825	21,067
Uncleared
Derivative Assets
Gross recognized amount		45,176	174,725
Gross amounts of netting adjustments and cash collateral		(42,244)	(168,426)
Net amounts after netting adjustments and cash collateral		2,932	6,299
Derivative Liabilities
Gross recognized amount		308,665	106,333
Gross amounts of netting adjustments and cash collateral		(305,988)	(85,491)
Net amounts after netting adjustments and cash collateral		2,677	20,842
Cleared
Derivative Assets
Gross recognized amount		5,527	1,931
Gross amounts of netting adjustments and cash collateral		148,514	108,388
Net amounts after netting adjustments and cash collateral		154,041	110,319
Derivative Liabilities
Gross recognized amount		1,584	17,104
Gross amounts of netting adjustments and cash collateral		(1,584)	(17,104)
Net amounts after netting adjustments and cash collateral		$ 0	$ 0

[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.

[2] 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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

[3] Includes MDCs and certain interest-rate forwards.

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Derivative and Hedging Activities Derivatives Reported in Other Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) related to fair-value hedge ineffectiveness		$ 0	$ (715)	$ 0	$ 6,609
Total net gain (loss) on derivatives not designated as hedging instruments		(14,365)	(1,000)	(17,787)	(1,598)
Price alignment interest	[1]	0	(1,273)	0	(2,067)
Net gains (losses) on derivatives and hedging activities		(14,365)	(2,988)	(17,787)	2,944
Interest-rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) related to fair-value hedge ineffectiveness		0	(715)	0	6,609
Mortgages | Interest-rate forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		633	(300)
Economic Hedge | Interest-rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		(12,579)	1,413	(12,086)	1,585
Economic Hedge | Swaptions
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		(421)	(177)	(593)	(235)
Economic Hedge | Interest-rate caps/floors
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		553	117	(2)	165
Economic Hedge | Interest-rate forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		(580)	(287)	(1,219)	961
Economic Hedge | Net interest settlements
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments		$ (1,971)	$ (1,766)	(5,088)	(2,404)
Mortgage Receivable [Member] | Interest-rate forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss) on derivatives not designated as hedging instruments				$ 1,201	$ (1,670)

[1] Relates to derivatives for which variation margin payments are characterized as daily settled contracts. For 2019, the portion related to derivatives not designated as hedging instruments is allocated to the applicable type of derivative.

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Derivative and Hedging Activities Net Gains (Losses) on Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		$ 405,478	$ (53,412)	$ 598,889	$ (219,508)
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		(414,053)	52,697	(621,340)	226,117
Gain Loss on Fair Value Hedges Recognized in Net Interest Income Before Price Alignment Interest		(8,575)		(22,451)
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net		0	(715)	0	6,609
Variation Margin Interest on FV Hedges	[1]	(272)		(1,389)
Net Interest Settlements	[2],[3]	20,709		38,472
Net Interest Settlements	[2],[3]		5,542		4,835
Amortization Accretion of Active Hedging Relationships		211	146	361	321
Net gains losses on qualifying active fair-value hedging relationships		12,073	4,973	14,993	11,765
Amortization Accretion of Discontinued Fair Value Hedging Relationships		(2,689)	(1,608)	(6,166)	(2,321)
Net Change in Fair Value of Qualifying Fair Value Hedges	[4]		715		(6,609)
Net gains (losses) on derivatives and hedging activities in net interest income	[2]	9,384	4,080	8,827	2,835
Interest-rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net		0	(715)	0	6,609
Advances [Member] | Interest Income [Member] | Interest-rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		230,420	(21,767)	330,610	(122,515)
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		(230,259)	22,335	(335,101)	125,943
Gain Loss on Fair Value Hedges Recognized in Net Interest Income Before Price Alignment Interest		161		(4,491)
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net			568		3,428
Variation Margin Interest on FV Hedges		(55)		(305)
Net Interest Settlements		20,226		43,458
Net Interest Settlements			13,565		14,904
Amortization Accretion of Active Hedging Relationships		0	0	0	0
Net gains losses on qualifying active fair-value hedging relationships		20,332	14,133	38,662	18,332
Amortization Accretion of Discontinued Fair Value Hedging Relationships		5	(11)	(2)	(23)
Net Change in Fair Value of Qualifying Fair Value Hedges			(568)		(3,428)
Net gains (losses) on derivatives and hedging activities in net interest income	[2]	20,337	13,554	38,660	14,881
Available-for-sale Securities [Member] | Interest Income [Member] | Interest-rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		229,361	(45,249)	367,154	(195,831)
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		(236,170)	44,764	(385,206)	199,091
Gain Loss on Fair Value Hedges Recognized in Net Interest Income Before Price Alignment Interest		(6,809)		(18,052)
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net			(485)		3,260
Variation Margin Interest on FV Hedges		(158)		(1,078)
Net Interest Settlements		12,128		25,611
Net Interest Settlements			4,487		1,177
Amortization Accretion of Active Hedging Relationships		96	54	176	140
Net gains losses on qualifying active fair-value hedging relationships		5,257	4,056	6,657	4,577
Amortization Accretion of Discontinued Fair Value Hedging Relationships		0	0	0	0
Net Change in Fair Value of Qualifying Fair Value Hedges			485		(3,260)
Net gains (losses) on derivatives and hedging activities in net interest income	[2]	5,257	4,541	6,657	1,317
Consolidated Obligation Bonds Member | Interest Expense [Member] | Interest-rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		(54,303)	13,604	(98,875)	98,838
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments		52,376	(14,402)	98,967	(98,917)
Gain Loss on Fair Value Hedges Recognized in Net Interest Income Before Price Alignment Interest		(1,927)		92
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net			(798)		(79)
Variation Margin Interest on FV Hedges		(59)		(6)
Net Interest Settlements		(11,645)		(30,597)
Net Interest Settlements			(12,510)		(11,246)
Amortization Accretion of Active Hedging Relationships		115	92	185	181
Net gains losses on qualifying active fair-value hedging relationships		(13,516)	(13,216)	(30,326)	(11,144)
Amortization Accretion of Discontinued Fair Value Hedging Relationships		(2,694)	(1,597)	(6,164)	(2,298)
Net Change in Fair Value of Qualifying Fair Value Hedges			798		79
Net gains (losses) on derivatives and hedging activities in net interest income	[2]	$ (16,210)	$ (14,015)	$ (36,490)	$ (13,363)

[1] Relates to derivatives for which variation margin payments are characterized as daily settled contracts.

[2] Excludes the interest income/expense of the respective hedged items recorded in net interest income.

[3] Represents interest income/expense on derivatives in qualifying fair-value hedging relationships. Net interest settlements on derivatives that are not in qualifying fair-value hedging relationships are reported in other income.

[4] Included in other income in 2018.

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Derivative and Hedging Activities Cumulative Basis Adjustments for Fair Value Hedges (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Advances [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged Asset, Fair Value Hedge	$ 16,125,040	[1]
Hedged Asset Active Fair Value Hedge Cumulative Increase (Decrease)	223,316
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease)	0
Total Cumulative Fair Value Hedging Basis Adjustments on Hedged Items	223,316	[2]
AFS securities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged Asset, Fair Value Hedge	8,323,801	[1]
Hedged Asset Active Fair Value Hedge Cumulative Increase (Decrease)	131,704
Hedged Asset, Discontinued Fair Value Hedge, Cumulative Increase (Decrease)	0
Total Cumulative Fair Value Hedging Basis Adjustments on Hedged Items	131,704	[2]
Consolidated Obligation Bonds Member
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged Liability, Fair Value Hedge	14,448,619	[1]
Hedged Liability, Active Fair Value Hedge, Cumulative Increase (Decrease)	2,345
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease)	(107)
Total Cumulative Fair Value Hedging Basis Adjustments on Hedged Items	$ 2,238	[2]

[1] Includes only the portion of the amortized cost of the hedged items in qualifying fair-value hedging relationships.

[2] Excludes any offsetting effect of the net fair value of the associated derivatives.

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Consolidated Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Schedule of Short-term and Long-term Debt [Line Items]
FHLB system outstanding consolidated obligations	$ 1,000,000,000	$ 1,000,000,000
Discount notes maturity period	1 year
Discount Notes
Book value	$ 22,645,457	20,895,262
Par value	$ 22,716,335	$ 20,952,650
Weighted average effective interest rate	2.37%	2.34%
CO Bonds [Abstract]
Due in 1 year or less, amount	$ 23,250,685	$ 18,456,870
Due after 1 year through 2 years, amount	6,795,495	8,823,285
Due after 2 years through 3 years, amount	2,534,970	2,640,620
Due after 3 years through 4 years, amount	2,958,750	3,024,000
Due after 4 years through 5 years, amount	977,625	998,375
Thereafter, amount	6,211,350	6,431,700
Unamortized premiums	22,164	23,493
Unamortized discounts	(14,021)	(15,992)
Unamortized concessions	(12,463)	(14,085)
Fair-value hedging adjustments	2,238	(102,801)
Bonds	$ 42,726,793	$ 40,265,465
Due in 1 year or less, WAIR %	2.17%	2.07%
Due after 1 year through 2 years, WAIR %	2.18%	2.30%
Due after 2 years through 3 years, WAIR %	2.37%	2.42%
Due after 3 years through 4 years, WAIR %	2.36%	2.33%
Due after 4 years through 5 years, WAIR %	2.66%	2.54%
Thereafter, WAIR %	3.19%	3.21%
Total CO bonds, par value, WAIR %	2.36%	2.36%
Due in 1 year or less	$ 35,446,685	$ 30,331,870
Due after 1 year through 2 years	3,615,495	6,069,285
Due after 2 years through 3 years	805,970	1,043,620
Due after 3 years through 4 years	719,750	626,000
Due after 4 years through 5 years	352,625	503,375
Thereafter	1,788,350	1,800,700
Total CO bonds, par value	42,728,875	40,374,850
Non-callable / non-putable
CO Bonds [Abstract]
Total CO bonds, par value	28,030,875	27,462,850
Callable
CO Bonds [Abstract]
Total CO bonds, par value	$ 14,698,000	$ 12,912,000

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Affordable Housing Program (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Affordable Housing Program Funding Obligation [Roll Forward]
Balance at beginning of period		$ 42,841	$ 35,086	$ 40,747	$ 32,166
Assessment (expense)		4,154	7,856	8,143	13,533
Subsidy usage, net	[1]	(6,748)	(7,308)	(8,643)	(10,065)
Balance at end of period		$ 40,247	$ 35,634	$ 40,247	$ 35,634

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

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Capital (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019 USD ($) capital_requirement	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) capital_requirement		Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Stockholders' Equity Note [Abstract]
Redemption period				5 years
Mandatorily Redeemable Capital Stock Activity [Roll Forward]
Liability at beginning of period		$ 174,202	$ 163,782	$ 168,876		$ 164,322
Par value of shares reclassified to mandatorily redeemable capital stock, net		0	23,163	2,109		23,163
Proceeds from issuance of mandatorily redeemable capital stock				3,704	[1]	0
Redemptions/repurchases		(10)	(6,037)	(497)		(6,577)
Accrued distributions		1	5	1		5
Liability at end of period		174,193	180,913	174,193		180,913
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount [Abstract]
Year 1	[2]	819		819			$ 1,316
Year 2		73		73			0
Year 3		8,576		8,576			8,649
Year 4		23,163		23,163			0
Year 5		5,670		5,670			26,723
Thereafter	[3]	135,892		135,892			132,188
Stock not redeemed after redemption period due to outstanding items		806		806			1,304
Recorded as interest expense		2,353	1,885	5,071		4,630
Recorded as distributions from retained earnings		1	5	1		5
Total		$ 2,354	$ 1,890	$ 5,072		$ 4,635
Regulatory Capital Requirements
Number of regulatory capital requirements | capital_requirement		3		3
Risk-based capital, required		$ 720,732		$ 720,732			786,925
Risk-based capital, actual		$ 3,315,769		$ 3,315,769			$ 3,177,638
Regulatory permanent capital-to-asset ratio, required		4.00%		4.00%			4.00%
Regulatory permanent capital-to-asset ratio, actual		4.73%		4.73%			4.86%
Regulatory capital, required		$ 2,805,992		$ 2,805,992			$ 2,616,468
Regulatory capital, actual		$ 3,315,769		$ 3,315,769			$ 3,177,638
Leverage ratio, required		5.00%		5.00%			5.00%
Leverage ratio, actual		7.09%		7.09%			7.29%
Leverage capital, required		$ 3,507,490		$ 3,507,490			$ 3,270,585
Leverage capital, actual		4,973,654		4,973,654			4,766,457
Financial Instruments Subject to Mandatory Redemption Held by Captive Insurance Companies to be Redeemed Prior to Year 5		$ 61,642		$ 61,642			$ 57,938

[1] Represents a purchase of capital stock by a captive insurance company member, which is considered mandatorily redeemable as a result of the Final Membership Rule.

[2] Balances at June 30, 2019 and December 31, 2018 include $806 and $1,304, 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.

[3] Represents the five-year redemption period of Class B stock held by certain captive insurance companies which begins immediately upon their respective terminations of membership no later than February 19, 2021, in accordance with the Final Membership Rule. However, upon their respective terminations, we currently intend to repurchase their excess stock (if any) in accordance with our capital plan, the balances of which at June 30, 2019 and December 31, 2018 totaled $61,642 and $57,938, respectively.

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 3,138,719	$ 3,008,924	$ 3,050,449	$ 2,945,506
Total other comprehensive income (loss)	(11,639)	(48,420)	15,613	(25,515)
Ending balance	3,198,876	3,020,959	3,198,876	3,020,959
Unrealized Gains (Losses) on AFS Securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	79,891	115,072	52,986	92,519
Net change in unrealized gains (losses)	(7,924)	(12,581)	18,981	9,972
Total other comprehensive income (loss)	(7,924)	(12,581)	18,981	9,972
Ending balance	71,967	102,491	71,967	102,491
Non-Credit OTTI | AFS securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	0	29,353	0	29,322
Net change in unrealized gains (losses)	0	389	0	392
Net change in fair value		2,665		2,693
Net realized gains from sale of AFS securities		(32,407)		(32,407)
Total other comprehensive income (loss)	0	(29,353)	0	(29,322)
Ending balance	0	0	0	0
Non-Credit OTTI | HTM Securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	0	(53)	0	(51)
Accretion of non-credit losses		53		51
Total other comprehensive income (loss)	0	53	0	51
Ending balance	0	0	0	0
Pension Benefits
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(10,952)	(10,061)	(11,299)	(10,384)
Pension benefits, net	(3,715)	(6,539)	(3,368)	(6,216)
Total other comprehensive income (loss)	(3,715)	(6,539)	(3,368)	(6,216)
Ending balance	(14,667)	(16,600)	(14,667)	(16,600)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	68,939	134,311	41,687	111,406
Net change in unrealized gains (losses)	(7,924)	(12,192)	18,981	10,364
Net change in fair value		2,665		2,693
Accretion of non-credit losses		53		51
Net realized gains from sale of AFS securities		(32,407)		(32,407)
Pension benefits, net	(3,715)	(6,539)	(3,368)	(6,216)
Total other comprehensive income (loss)	(11,639)	(48,420)	15,613	(25,515)
Ending balance	$ 57,300	$ 85,891	$ 57,300	$ 85,891

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net interest income	$ 59,544	$ 69,903	$ 117,083	$ 140,034
Provision for (reversal of) credit losses	(40)	(357)	14	(461)
Other income (loss)	3,468	30,308	6,484	36,495
Other expenses	23,864	23,889	47,191	46,286
Income before assessments	39,188	76,679	76,362	130,704
Affordable Housing Program assessments	4,154	7,856	8,143	13,533
Net income	35,034	68,823	68,219	117,171
Assets	70,149,793		70,149,793		$ 65,411,699
Traditional
Segment Reporting Information [Line Items]
Net interest income	44,218	53,672	83,445	105,996
Provision for (reversal of) credit losses	0	0	0	0
Other income (loss)	3,215	31,058	6,400	37,400
Other expenses	20,400	20,433	40,376	39,249
Income before assessments	27,033	64,297	49,469	104,147
Affordable Housing Program assessments	2,939	6,618	5,454	10,877
Net income	24,094	57,679	44,015	93,270
Assets	58,785,959		58,785,959		54,026,721
Mortgage Loans
Segment Reporting Information [Line Items]
Net interest income	15,326	16,231	33,638	34,038
Provision for (reversal of) credit losses	(40)	(357)	14	(461)
Other income (loss)	253	(750)	84	(905)
Other expenses	3,464	3,456	6,815	7,037
Income before assessments	12,155	12,382	26,893	26,557
Affordable Housing Program assessments	1,215	1,238	2,689	2,656
Net income	10,940	$ 11,144	24,204	$ 23,901
Assets	$ 11,363,834		$ 11,363,834		$ 11,384,978

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Estimated Fair Values Estimated Fair Values - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets:
Cash and due from banks		$ 76,477		$ 100,735
Trading securities		3,192,790		0
AFS securities		8,395,767		7,703,596
HTM securities		5,088,423		5,673,720
HTM securities		5,097,578		5,676,145
Accrued interest receivable		140,913		124,611
Derivative assets, net		157,136		116,764
Netting adjustments and cash collateral, derivative asset	[1],[2]	106,270		(60,038)
Consolidated Obligations:
Accrued interest payable		190,180		179,728
Derivative liabilities, net		2,825		21,067
Netting adjustments and cash collateral, derivative liability	[1],[2]	(307,572)		(102,595)
MRCS		174,193	$ 174,202	168,876	$ 180,913	$ 163,782	$ 164,322
Level 1
Assets:
Cash and due from banks		76,477		100,735
Interest-bearing deposits		655,575		1,210,039
Securities purchased under agreements to resell		0		0
Federal funds sold		0		0
Trading securities		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	[3]	24,247		21,122
Liabilities:
Deposits		0		0
Consolidated Obligations:
Accrued interest payable		0		0
Derivative liabilities, net		0		0
MRCS		174,193		168,876
Level 2
Assets:
Cash and due from banks		0		0
Interest-bearing deposits		476		666
Securities purchased under agreements to resell		4,249,721		3,212,728
Federal funds sold		2,858,000		3,085,000
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
HTM securities		5,097,578		5,676,145
Advances		33,850,844		32,669,145
Mortgage loans held for portfolio, net		11,425,719		11,202,984
Accrued interest receivable		140,913		124,611
Derivative assets, net		50,866		176,802
Grantor trust assets	[3]	0		0
Liabilities:
Deposits		855,307		500,440
Consolidated Obligations:
Accrued interest payable		190,180		179,728
Derivative liabilities, net		310,397		123,662
MRCS		0		0
Level 3
Assets:
Cash and due from banks		0		0
Interest-bearing deposits		0		0
Securities purchased under agreements to resell		0		0
Federal funds sold		0		0
Trading securities		0
AFS securities		0		0
HTM securities		0		0
Advances		0		0
Mortgage loans held for portfolio, net		7,806		9,994
Accrued interest receivable		0		0
Derivative assets, net		0		0
Grantor trust assets	[3]	0		0
Liabilities:
Deposits		0		0
Consolidated Obligations:
Accrued interest payable		0		0
Derivative liabilities, net		0		0
MRCS		0		0
Fair Value
Assets:
Cash and due from banks		76,477		100,735
Interest-bearing deposits		656,051		1,210,705
Securities purchased under agreements to resell		4,249,721		3,212,728
Federal funds sold		2,858,000		3,085,000
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
HTM securities		5,097,578		5,676,145
Advances		33,850,844		32,669,145
Mortgage loans held for portfolio, net		11,433,525		11,212,978
Accrued interest receivable		140,913		124,611
Derivative assets, net		157,136		116,764
Grantor trust assets	[3]	24,247		21,122
Liabilities:
Deposits		855,307		500,440
Consolidated Obligations:
Accrued interest payable		190,180		179,728
Derivative liabilities, net		2,825		21,067
MRCS		174,193		168,876
Carrying value
Assets:
Cash and due from banks		76,477		100,735
Interest-bearing deposits		656,051		1,210,705
Securities purchased under agreements to resell		4,249,710		3,212,726
Federal funds sold		2,858,000		3,085,000
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
HTM securities		5,088,423		5,673,720
Advances		33,890,767		32,727,668
Mortgage loans held for portfolio, net		11,363,834		11,384,978
Accrued interest receivable		140,913		124,611
Derivative assets, net		157,136		116,764
Grantor trust assets	[3]	24,247		21,122
Liabilities:
Deposits		855,307		500,440
Consolidated Obligations:
Accrued interest payable		190,180		179,728
Derivative liabilities, net		2,825		21,067
MRCS		174,193		168,876
Discount notes | Level 1
Consolidated Obligations:
Discount notes		0		0
Discount notes | Level 2
Consolidated Obligations:
Discount notes		22,652,667		20,895,446
Discount notes | Level 3
Consolidated Obligations:
Discount notes		0		0
Discount notes | Fair Value
Consolidated Obligations:
Discount notes		22,652,667		20,895,446
Discount notes | Carrying value
Consolidated Obligations:
Discount notes		22,645,457		20,895,262
CO bonds | Level 1
Consolidated Obligations:
Bonds		0		0
CO bonds | Level 2
Consolidated Obligations:
Bonds		43,014,071		40,137,791
CO bonds | Level 3
Consolidated Obligations:
Bonds		0		0
CO bonds | Fair Value
Consolidated Obligations:
Bonds		43,014,071		40,137,791
CO bonds | Carrying value
Consolidated Obligations:
Bonds		$ 42,726,793		$ 40,265,465

[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.

[2] 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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

[3] Included in other assets on the statement of condition.

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Estimated Fair Values Estimated Fair Values - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands		Jun. 30, 2019		Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		$ 3,192,790		$ 0
AFS securities		8,395,767		7,703,596
Derivative Asset [Abstract]
Derivative assets, net		157,136		116,764
Netting adjustments and cash collateral, derivative asset	[1],[2]	106,270		(60,038)
Derivative Liability [Abstract]
Derivative liabilities, net		2,825		21,067
Netting adjustments and cash collateral, derivative liability	[1],[2]	(307,572)		(102,595)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
Derivative Asset [Abstract]
Derivative assets, net		157,136		116,764
Netting adjustments and cash collateral, derivative asset	[1]	106,270		(60,038)
Grantor trust assets	[3]	24,247		21,122
Total assets at estimated fair value		11,769,940		7,841,482
Derivative Liability [Abstract]
Derivative liabilities, net		2,825		21,067
Netting adjustments and cash collateral, derivative liability	[1]	(307,572)		(102,595)
Total liabilities at recurring estimated fair value		2,825		21,067
Fair Value, Measurements, Recurring | Interest-rate related
Derivative Asset [Abstract]
Derivative assets, net		156,973		116,618
Netting adjustments and cash collateral, derivative asset	[1]	106,270		(60,038)
Derivative Liability [Abstract]
Derivative liabilities, net		2,677		20,842
Netting adjustments and cash collateral, derivative liability	[1]	(307,572)		(102,595)
Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0
Netting adjustments and cash collateral, derivative asset	[1]	0
Derivative Liability [Abstract]
Derivative liabilities, net		143		202
Netting adjustments and cash collateral, derivative liability	[1]	0		0
Fair Value, Measurements, Recurring | Interest-rate forwards | Mortgages
Derivative Asset [Abstract]
Derivative assets, net		163		146
Derivative Liability [Abstract]
Derivative liabilities, net		5		23
Fair Value, Measurements, Nonrecurring
Derivative Asset [Abstract]
Total assets at estimated fair value		1,808		1,734
Derivative Liability [Abstract]
Mortgage loans held for portfolio		1,808	[4]	1,734	[5]
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
AFS securities		0		0
Derivative Asset [Abstract]
Derivative assets, net		0		0
Grantor trust assets	[6]	24,247		21,122
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Mortgage loans held for portfolio		0		0
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
AFS securities		0		0
Derivative Asset [Abstract]
Derivative assets, net		0		0
Grantor trust assets	[3]	24,247		21,122
Total assets at estimated fair value		24,247		21,122
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Total liabilities at recurring estimated fair value		0		0
Level 1 | Fair Value, Measurements, Recurring | Interest-rate related
Derivative Asset [Abstract]
Derivative assets, net		0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Level 1 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Level 1 | Fair Value, Measurements, Nonrecurring
Derivative Asset [Abstract]
Total assets at estimated fair value		0		0
Derivative Liability [Abstract]
Mortgage loans held for portfolio		0	[4]	0	[5]
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
Derivative Asset [Abstract]
Derivative assets, net		50,866		176,802
Grantor trust assets	[6]	0		0
Derivative Liability [Abstract]
Derivative liabilities, net		310,397		123,662
Mortgage loans held for portfolio		11,425,719		11,202,984
Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
Derivative Asset [Abstract]
Derivative assets, net		50,866		176,802
Grantor trust assets	[3]			0
Total assets at estimated fair value		11,639,423		7,880,398
Derivative Liability [Abstract]
Derivative liabilities, net		310,397		123,662
Total liabilities at recurring estimated fair value		310,397		123,662
Level 2 | Fair Value, Measurements, Recurring | Interest-rate related
Derivative Asset [Abstract]
Derivative assets, net		50,703		176,656
Derivative Liability [Abstract]
Derivative liabilities, net		310,249		123,437
Level 2 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0
Derivative Liability [Abstract]
Derivative liabilities, net		143		202
Level 2 | Fair Value, Measurements, Nonrecurring
Derivative Asset [Abstract]
Total assets at estimated fair value		0		0
Derivative Liability [Abstract]
Mortgage loans held for portfolio		0	[4]	0	[5]
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
AFS securities		0		0
Derivative Asset [Abstract]
Derivative assets, net		0		0
Grantor trust assets	[6]	0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Mortgage loans held for portfolio		7,806		9,994
Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
AFS securities		0		0
Derivative Asset [Abstract]
Derivative assets, net		0		0
Grantor trust assets	[3]	0		0
Total assets at estimated fair value		0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Total liabilities at recurring estimated fair value		0		0
Level 3 | Fair Value, Measurements, Recurring | Interest-rate related
Derivative Asset [Abstract]
Derivative assets, net		0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Level 3 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Level 3 | Fair Value, Measurements, Nonrecurring
Derivative Asset [Abstract]
Total assets at estimated fair value		1,808		1,734
Derivative Liability [Abstract]
Mortgage loans held for portfolio		1,808	[4]	1,734	[5]
US Treasury Securities [Member] | Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
US Treasury Securities [Member] | Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		3,192,790
US Treasury Securities [Member] | Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		0
GSE and TVA debentures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,128,741		4,277,080
GSE and TVA debentures | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,128,741		4,277,080
GSE and TVA debentures | Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		0		0
GSE and TVA debentures | Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,128,741		4,277,080
GSE and TVA debentures | Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		0		0
GSE MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,267,026		3,426,516
GSE MBS | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,267,026		3,426,516
GSE MBS | Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		0		0
GSE MBS | Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		4,267,026		3,426,516
GSE MBS | Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
AFS securities		0		0
Mortgage Receivable [Member] | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Netting adjustments and cash collateral, derivative asset	[1]			0
Derivative Liability [Abstract]
Netting adjustments and cash collateral, derivative liability	[1]	0		0
Mortgage Receivable [Member] | Level 1 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Mortgage Receivable [Member] | Level 2 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		163		146
Derivative Liability [Abstract]
Derivative liabilities, net		5		23
Mortgage Receivable [Member] | Level 3 | Fair Value, Measurements, Recurring | Interest-rate forwards
Derivative Asset [Abstract]
Derivative assets, net		0		0
Derivative Liability [Abstract]
Derivative liabilities, net		0		0
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		3,192,790
AFS securities		8,395,767		7,703,596
Derivative Asset [Abstract]
Derivative assets, net		157,136		116,764
Grantor trust assets	[6]	24,247		21,122
Derivative Liability [Abstract]
Derivative liabilities, net		2,825		21,067
Mortgage loans held for portfolio		11,433,525		$ 11,212,978
Estimate of Fair Value Measurement [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities		$ 3,192,790

[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.

[2] 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. Cash collateral pledged to counterparties at June 30, 2019 and December 31, 2018, including accrued interest, totaled $414,838 and $127,952, respectively. Cash collateral received from counterparties and held at June 30, 2019 and December 31, 2018, including accrued interest, totaled $996 and $85,395, respectively. At June 30, 2019 and December 31, 2018, no securities were pledged as collateral.

[3] Included in other assets on the statement of condition.

[4] Amounts are as of the date the fair value adjustment was recorded during the six months ended June 30, 2019.

[5] Amounts are as of the date the fair value adjustment was recorded during the year ended December 31, 2018.

[6] Included in other assets on the statement of condition.

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Commitments and Contingencies (Details)	6 Months Ended
	Jun. 30, 2019 USD ($)
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet commitments expire within one year	$ 225,917,000
Off-balance-sheet commitments expire after one year	119,351,000
Off-balance-sheet commitments, Total	345,268,000
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet commitments expire within one year	1,027,068,000	[1]
Off-balance-sheet commitments expire after one year	0	[1]
Off-balance-sheet commitments, Total	$ 1,027,068,000	[1]
Period for Mortgage Loan Commitments	91 days
Unused lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Maximum line of credit	$ 50,000,000
Commitments to fund additional advances
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet commitments expire within one year	116,960,000	[2]
Off-balance-sheet commitments expire after one year	0	[2]
Off-balance-sheet commitments, Total	$ 116,960,000	[2]
Commitments to fund additional Advances are generally for periods up	6 months
Mortgage Receivable [Member] | Commitments to fund or purchase mortgage loans, net
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet commitments expire within one year	$ 85,748,000	[3]
Off-balance-sheet commitments expire after one year	0	[3]
Off-balance-sheet commitments, Total	$ 85,748,000	[3]

[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.

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Related Party and Other Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Advances, par value	$ 33,665,155		$ 33,665,155		$ 32,829,361
Disbursements	0	$ (100,000)	0	$ (400,000)
Principal repayments	0	100,000	0	400,000
Directors' Financial Institutions
Related Party Transaction [Line Items]
Capital stock, par value	$ 48,792		$ 48,792		$ 43,315
Capital stock, % of total	2.00%		2.00%		2.00%
Advances, par value	$ 658,255		$ 658,255		$ 600,869
Advances, % of total	2.00%		2.00%		2.00%
Net capital stock issuances (redemptions and repurchases)	$ 4,542	0	$ 4,568	846
Net advances (repayments)	47,206	4,400	85,445	(92,900)
Mortgage loan purchases	$ 6,734	$ 10,434	$ 11,328	$ 16,789