Federally chartered corporation | 48-0561319 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
One Security Benefit Pl. Suite 100 Topeka, KS | 66606 | |
(Address of principal executive offices) | (Zip Code) |
Shares outstanding as of | |
Class A Stock, par value $100 | |
Class B Stock, par value $100 | |
§ | Economic and market conditions; |
§ | Demand for FHLBank advances resulting from changes in FHLBank members’ deposit flows and/or credit demands; |
§ | The volume of eligible mortgage loans originated and sold by participating members to the FHLBank through its various mortgage finance products (Mortgage Partnership Finance® (MPF®) Program1); |
§ | Pricing of various mortgage finance products under the MPF Program by the MPF Provider since the FHLBank has only limited input on pricing through our participation on the MPF Governance Committee; |
§ | Volatility of market prices, rates and indices that could affect the value of investments or collateral held by the FHLBank as security for the obligations of FHLBank members and counterparties to derivatives and similar instruments or the FHLBank’s ability to liquidate collateral expediently in the event of a default by an obligor; |
§ | Political events, including legislative, regulatory, judicial, or other developments that affect the FHLBank, its members, counterparties and/or investors in the consolidated obligations of the 12 FHLBanks; |
§ | Competitive forces including, without limitation, other sources of funding available to FHLBank members including existing and newly created debt programs explicitly guaranteed by the U.S. government, other entities borrowing funds in the capital markets and the ability of the FHLBank to attract and retain skilled individuals; |
§ | The pace of technological change and the ability to develop and support technology and information systems, including the Internet, sufficient to manage the risks and operations of the FHLBank’s business effectively; |
§ | Changes in domestic and foreign investor demand for consolidated obligations of the 12 FHLBanks and/or the terms of derivatives and similar instruments including, without limitation, changes in the relative attractiveness of consolidated obligations as compared to other investment opportunities including existing and newly created debt programs explicitly guaranteed by the U.S. government; |
§ | Timing and volume of market activity; |
§ | Ability to introduce new FHLBank products and services, and successfully manage the risks associated with those products and services, including new types of collateral used to secure advances; |
§ | Risks related to the operations of the other 11 FHLBanks that could trigger our joint and several liability for debt issued by the other 11 FHLBanks; |
§ | Risk of loss arising from litigation filed against the FHLBank; and |
§ | Inflation/deflation. |
March 31, 2009 | December 31, 2008 | June 30, 2009 | December 31, 2008 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 76 | $ | 75 | $ | 87 | $ | 75 | ||||||||
Interest-bearing deposits | 6,610,964 | 3,348,212 | 487,283 | 3,348,212 | ||||||||||||
Federal funds sold | 365,000 | 384,000 | 1,685,000 | 384,000 | ||||||||||||
Trading securities (Note 3) | 5,369,622 | 4,652,700 | 7,742,110 | 4,652,700 | ||||||||||||
Held-to-maturity securities1 (Note 4) | 9,246,761 | 11,050,897 | 8,396,471 | 11,050,897 | ||||||||||||
Advances (Note 5) | 27,014,796 | 35,819,674 | 24,529,745 | 35,819,674 | ||||||||||||
Mortgage loans held for portfolio, net of allowance for credit losses on mortgage loans of $889 and $884 (Note 6) | 3,113,801 | 3,023,805 | ||||||||||||||
Mortgage loans held for portfolio, net of allowance for credit losses on mortgage loans of $882 and $884 (Note 6) | 3,213,794 | 3,023,805 | ||||||||||||||
Accrued interest receivable | 105,360 | 138,770 | 109,161 | 138,770 | ||||||||||||
Premises, software and equipment, net | 16,337 | 16,733 | 15,900 | 16,733 | ||||||||||||
Derivative assets (Note 7) | 15,535 | 34,526 | 30,983 | 34,526 | ||||||||||||
Other assets (Note 10) | 64,530 | 86,839 | 63,343 | 86,839 | ||||||||||||
TOTAL ASSETS | $ | 51,922,782 | $ | 58,556,231 | $ | 46,273,877 | $ | 58,556,231 | ||||||||
LIABILITIES AND CAPITAL | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits: | ||||||||||||||||
Interest-bearing: | ||||||||||||||||
Demand | $ | 150,674 | $ | 104,856 | $ | 201,923 | $ | 104,856 | ||||||||
Overnight | 1,289,100 | 1,013,800 | 1,026,000 | 1,013,800 | ||||||||||||
Term | 185,185 | 570,340 | 26,185 | 570,340 | ||||||||||||
Non-interest-bearing: | ||||||||||||||||
Demand | 51 | 36 | 0 | 36 | ||||||||||||
Other | 19,983 | 14,499 | 24,047 | 14,499 | ||||||||||||
Total deposits | 1,644,993 | 1,703,531 | 1,278,155 | 1,703,531 | ||||||||||||
Consolidated obligations, net (Note 8): | ||||||||||||||||
Discount notes | 20,444,294 | 26,261,411 | 15,617,443 | 26,261,411 | ||||||||||||
Bonds | 26,999,149 | 27,421,634 | 26,815,219 | 27,421,634 | ||||||||||||
Total consolidated obligations, net | 47,443,443 | 53,683,045 | 42,432,662 | 53,683,045 | ||||||||||||
Mandatorily redeemable capital stock (Note 11) | 29,703 | 34,806 | 25,775 | 34,806 | ||||||||||||
Accrued interest payable | 212,598 | 253,743 | 173,145 | 253,743 | ||||||||||||
Affordable Housing Program (Note 9) | 32,731 | 27,707 | 41,413 | 27,707 | ||||||||||||
Payable to Resolution Funding Corp. (REFCORP) (Note 10) | 25,508 | 0 | ||||||||||||||
Derivative liabilities (Note 7) | 376,976 | 404,356 | 269,397 | 404,356 | ||||||||||||
Other liabilities | 42,037 | 53,798 | 30,081 | 53,798 | ||||||||||||
TOTAL LIABILITIES | 49,782,481 | 56,160,986 | 44,276,136 | 56,160,986 | ||||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||||
Capital (Note 11): | ||||||||||||||||
Capital stock outstanding – putable: | ||||||||||||||||
Class A ($100 par value; 5,822 and 6,339 shares issued and outstanding) | 582,228 | 633,941 | ||||||||||||||
Class B ($100 par value; 13,534 and 16,064 shares issued and outstanding) | 1,353,427 | 1,606,394 | ||||||||||||||
Class A ($100 par value; 2,928 and 6,339 shares issued and outstanding) | 292,825 | 633,941 | ||||||||||||||
Class B ($100 par value; 14,045 and 16,064 shares issued and outstanding) | 1,404,487 | 1,606,394 | ||||||||||||||
Total capital stock | 1,935,655 | 2,240,335 | 1,697,312 | 2,240,335 | ||||||||||||
Retained earnings | 210,644 | 156,922 | 306,229 | 156,922 | ||||||||||||
Accumulated other comprehensive income: | ||||||||||||||||
Net non-credit portion of other-than-temporary impairment losses on held-to-maturity securities | (4,034 | ) | 0 | (3,882 | ) | 0 | ||||||||||
Defined benefit pension plan – prior service cost | 13 | 15 | 10 | 15 | ||||||||||||
Defined benefit pension plan – net loss | (1,977 | ) | (2,027 | ) | (1,928 | ) | (2,027 | ) | ||||||||
TOTAL CAPITAL | 2,140,301 | 2,395,245 | 1,997,741 | 2,395,245 | ||||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | 51,922,782 | $ | 58,556,231 | $ | 46,273,877 | $ | 58,556,231 |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 3,093 | $ | 363 | $ | 3,910 | $ | 151 | $ | 7,003 | $ | 514 | ||||||||||||||||
Federal funds sold | 1,283 | 37,167 | 704 | 15,348 | 1,987 | 52,515 | ||||||||||||||||||||||
Trading securities | 31,203 | 25,516 | 26,043 | 27,477 | 57,246 | 52,993 | ||||||||||||||||||||||
Held-to-maturity securities | 62,026 | 153,512 | 53,572 | 123,577 | 115,598 | 277,089 | ||||||||||||||||||||||
Advances | 123,164 | 322,563 | 88,980 | 235,738 | 212,144 | 558,301 | ||||||||||||||||||||||
Prepayment fees on terminated advances | 753 | 121 | 9,133 | 640 | 9,886 | 761 | ||||||||||||||||||||||
Mortgage loans held for portfolio | 39,708 | 31,108 | 39,439 | 30,000 | 79,147 | 61,108 | ||||||||||||||||||||||
Overnight loans to other Federal Home Loan Banks | 3 | 16 | 0 | 16 | 3 | 32 | ||||||||||||||||||||||
Other | 804 | 907 | 750 | 863 | 1,554 | 1,770 | ||||||||||||||||||||||
Total interest income | 262,037 | 571,273 | 222,531 | 433,810 | 484,568 | 1,005,083 | ||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Deposits | 2,522 | 10,943 | 1,066 | 5,780 | 3,588 | 16,723 | ||||||||||||||||||||||
Consolidated obligations: | ||||||||||||||||||||||||||||
Discount notes | 47,927 | 193,847 | 15,347 | 139,695 | 63,274 | 333,542 | ||||||||||||||||||||||
Bonds | 149,209 | 304,416 | 131,008 | 216,096 | 280,217 | 520,512 | ||||||||||||||||||||||
Overnight loans from other Federal Home Loan Banks | 0 | 46 | 0 | 49 | 0 | 95 | ||||||||||||||||||||||
Mandatorily redeemable capital stock (Note 11) | 294 | 243 | 79 | 150 | 373 | 393 | ||||||||||||||||||||||
Other | 292 | 356 | 239 | 362 | 531 | 718 | ||||||||||||||||||||||
Total interest expense | 200,244 | 509,851 | 147,739 | 362,132 | 347,983 | 871,983 | ||||||||||||||||||||||
NET INTEREST INCOME | 61,793 | 61,422 | 74,792 | 71,678 | 136,585 | 133,100 | ||||||||||||||||||||||
Provision for credit losses on mortgage loans | 10 | 9 | 104 | 64 | 114 | 73 | ||||||||||||||||||||||
NET INTEREST INCOME AFTER MORTGAGE LOAN LOSS PROVISION | 61,783 | 61,413 | 74,688 | 71,614 | 136,471 | 133,027 | ||||||||||||||||||||||
OTHER INCOME (LOSS): | ||||||||||||||||||||||||||||
Service fees | 1,524 | 1,315 | ||||||||||||||||||||||||||
Net gain (loss) on trading securities (Note 3) | 9,873 | 13,282 | ||||||||||||||||||||||||||
Total other-than-temporary impairment losses on held-to-maturity securities (Note 4) | (1,059 | ) | (18 | ) | 0 | (1,077 | ) | 0 | ||||||||||||||||||||
Portion of other-than-temporary impairment losses on held-to-maturity securities recognized in other comprehensive income | 1,018 | 0 | 0 | 1,018 | 0 | |||||||||||||||||||||||
Net other-than-temporary impairment losses on held-to-maturity securities | (41 | ) | 0 | (18 | ) | 0 | (59 | ) | 0 | |||||||||||||||||||
Net gain (loss) on trading securities (Note 3) | (25,718 | ) | (62,043 | ) | (15,845 | ) | (48,761 | ) | ||||||||||||||||||||
Net realized gain (loss) on sale of held-to-maturity securities (Note 4) | 0 | (10 | ) | 0 | (10 | ) | ||||||||||||||||||||||
Net gain (loss) on derivatives and hedging activities (Note 7) | 19,770 | (34,651 | ) | 102,443 | 63,157 | 122,213 | 28,506 | |||||||||||||||||||||
Service fees | 1,562 | 1,357 | 3,086 | 2,672 | ||||||||||||||||||||||||
Other | 635 | 379 | 837 | 408 | 1,472 | 787 | ||||||||||||||||||||||
Total other income (loss) | 31,761 | (19,675 | ) | 79,106 | 2,869 | 110,867 | (16,806 | ) | ||||||||||||||||||||
OTHER EXPENSES: | ||||||||||||||||||||||||||||
Compensation and benefits | 5,740 | 5,634 | 5,377 | 5,460 | 11,117 | 11,094 | ||||||||||||||||||||||
Other operating | 3,611 | 2,862 | 2,916 | 2,605 | 6,527 | 5,467 | ||||||||||||||||||||||
Finance Agency/Finance Board | 452 | 411 | 412 | 411 | 864 | 822 | ||||||||||||||||||||||
Office of Finance | 477 | 432 | 515 | 435 | 992 | 867 | ||||||||||||||||||||||
Other | 388 | 267 | 1,338 | 1,521 | 1,726 | 1,788 | ||||||||||||||||||||||
Total other expenses | 10,668 | 9,606 | 10,558 | 10,432 | 21,226 | 20,038 | ||||||||||||||||||||||
INCOME BEFORE ASSESSMENTS | 82,876 | 32,132 | 143,236 | 64,051 | 226,112 | 96,183 | ||||||||||||||||||||||
Affordable Housing Program (Note 9) | 6,796 | 2,648 | 11,700 | 5,244 | 18,496 | 7,892 | ||||||||||||||||||||||
REFCORP (Note 10) | 15,216 | 5,897 | 26,307 | 11,761 | 41,523 | 17,658 | ||||||||||||||||||||||
Total assessments | 22,012 | 8,545 | 38,007 | 17,005 | 60,019 | 25,550 | ||||||||||||||||||||||
NET INCOME | $ | 60,864 | $ | 23,587 | $ | 105,229 | $ | 47,046 | $ | 166,093 | $ | 70,633 |
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock Class A1 | Capital Stock Class B1 | Retained | Comprehensive | Total | Capital Stock Class A1 | Capital Stock Class B1 | Retained | Comprehensive | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | Earnings | Income | Capital | Shares | Par Value | Shares | Par Value | Earnings | Income | Capital | |||||||||||||||||||||||||||||||||||||||||||
BALANCE – DECEMBER 31, 2007 | 6,042 | $ | 604,190 | 14,870 | $ | 1,486,997 | $ | 208,763 | $ | (2,096 | ) | $ | 2,297,854 | 6,042 | $ | 604,190 | 14,870 | $ | 1,486,997 | $ | 208,763 | $ | (2,096 | ) | $ | 2,297,854 | ||||||||||||||||||||||||||||||
Proceeds from issuance of capital stock | 6 | 649 | 4,034 | 403,422 | 404,071 | 30 | 3,068 | 10,991 | 1,099,111 | 1,102,179 | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchase/redemption of capital stock | (144 | ) | (14,445 | ) | (14,445 | ) | (598 | ) | (59,785 | ) | (59,785 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 23,587 | 70,633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for (gain) loss on hedging activities included in net income | 13 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost on defined benefit pension plan | (7 | ) | (13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss on defined benefit pension plan | 55 | 110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 23,648 | 70,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of shares to mandatorily redeemable capital stock | (102 | ) | (10,238 | ) | (4,933 | ) | (493,310 | ) | (503,548 | ) | (745 | ) | (74,535 | ) | (8,109 | ) | (810,936 | ) | (885,471 | ) | ||||||||||||||||||||||||||||||||||||
Net transfer of shares between Class A and Class B | 198 | 19,789 | (198 | ) | (19,789 | ) | 0 | 239 | 23,910 | (239 | ) | (23,910 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||||
Dividends on capital stock (Class A – 2.8%, Class B – 5.8%): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on capital stock (Class A – 2.4%, Class B – 5.3%): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash payment | (83 | ) | (83 | ) | (175 | ) | (175 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued | 250 | 25,065 | (25,065 | ) | 0 | 454 | 45,448 | (45,448 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE – MARCH 31, 2008 | 6,144 | $ | 614,390 | 13,879 | $ | 1,387,940 | $ | 207,202 | $ | (2,035 | ) | $ | 2,207,497 | |||||||||||||||||||||||||||||||||||||||||||
BALANCE – JUNE 30, 2008 | 5,566 | $ | 556,633 | 17,369 | $ | 1,736,925 | $ | 233,773 | $ | (1,985 | ) | $ | 2,525,346 |