Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Federal Home Loan Bank of Des Moines | |
Entity Central Index Key | 1,325,814 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,082,267 |
Statements of Condition
Statements of Condition - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 482,886 | $ 495,197 |
Interest-bearing deposits | 1,978 | 1,942 |
Securities purchased under agreements to resell | 7,650,000 | 5,091,000 |
Federal funds sold | 3,000,000 | 1,860,000 |
Investment securities | ||
Trading securities (Note 4) | 3,063,125 | 2,530,490 |
Available-for-sale securities (Note 5) | 22,227,516 | 12,383,792 |
Held-to-maturity securities (fair value of $6,874,031 and $1,299,048) (Note 6) | 6,811,226 | 1,211,460 |
Total investment securities | 32,101,867 | 16,125,742 |
Advances (includes $66,570 and $0 at fair value under the fair value option) (Note 8) | 68,181,304 | 65,168,274 |
Mortgage loans held for portfolio, net | ||
Mortgage loans held for portfolio (Note 9) | 7,029,731 | 6,567,369 |
Allowance for credit losses on mortgage loans (Note 10) | (1,096) | (4,900) |
Total mortgage loans held for portfolio, net | 7,028,635 | 6,562,469 |
Accrued interest receivable | 129,843 | 84,440 |
Premises, software, and equipment, net | 21,266 | 18,794 |
Derivative assets, net (Note 11) | 113,537 | 80,112 |
Other assets | 46,386 | 35,975 |
TOTAL ASSETS | 118,757,702 | 95,523,945 |
LIABILITIES | ||
Interest-bearing | 939,319 | 417,348 |
Non-interest-bearing | 95,500 | 95,210 |
Total deposits | 1,034,819 | 512,558 |
Consolidated obligations (Note 12) | ||
Discount notes (includes $5,248,971 and $0 at fair value under the fair value option) | 70,227,257 | 57,772,890 |
Bonds (includes $1,976,325 and $0 at fair value under the fair value option) | 41,974,286 | 32,362,110 |
Total consolidated obligations | 112,201,543 | 90,135,000 |
Mandatorily redeemable capital stock (Note 13) | 118,748 | 24,367 |
Accrued interest payable | 126,782 | 89,509 |
Affordable Housing Program payable | 60,029 | 41,232 |
Derivative liabilities, net (Note 11) | 125,317 | 76,632 |
Other liabilities | 106,061 | 332,499 |
TOTAL LIABILITIES | $ 113,773,299 | $ 91,211,797 |
Commitments and contingencies (Note 15) | ||
CAPITAL (Note 13) | ||
Capital stock - Class B putable ($100 par value); 38,847 and 34,685 issued and outstanding shares | $ 3,884,687 | $ 3,468,503 |
Additional capital from merger | 246,462 | 0 |
Retained earnings | ||
Unrestricted | 639,526 | 645,434 |
Restricted | 86,117 | 74,989 |
Total retained earnings | 725,643 | 720,423 |
Accumulated other comprehensive income | 127,611 | 123,222 |
TOTAL CAPITAL | 4,984,403 | 4,312,148 |
TOTAL LIABILITIES AND CAPITAL | $ 118,757,702 | $ 95,523,945 |
Statements of Condition (Parent
Statements of Condition (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Held-to-Maturity Securities, Fair Value | $ 6,874,031 | $ 1,299,048 |
Advances, Fair Value Option | $ 66,570 | $ 0 |
Capital Stock - Class B Putable, Par Value | $ 100 | $ 100 |
Capital Stock - Class B Putable, Issued Shares | 38,847 | 34,685 |
Capital Stock - Class B Putable, Outstanding Shares | 38,847 | 34,685 |
Consolidated Obligation Bonds [Member] | ||
Bonds, Fair Value Option | $ 1,976,325 | $ 0 |
Consolidated Obligation Discount Notes [Member] | ||
Discount Notes, Fair Value Option | $ 5,248,971 | $ 0 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INTEREST INCOME | ||||
Advances | $ 63,081 | $ 54,001 | $ 129,257 | $ 106,863 |
Prepayment fees on advances, net | 8,533 | 3,218 | 9,040 | 3,384 |
Interest-bearing deposits | 133 | 64 | 258 | 109 |
Securities purchased under agreements to resell | 1,345 | 832 | 2,655 | 1,617 |
Federal funds sold | 1,268 | 490 | 2,287 | 796 |
Trading securities | 9,026 | 8,241 | 17,644 | 16,483 |
Available-for-sale securities | 36,183 | 24,516 | 67,297 | 47,259 |
Held-to-maturity securities | 12,549 | 11,392 | 20,647 | 23,639 |
Mortgage loans held for portfolio | 60,382 | 61,280 | 119,580 | 123,583 |
Total interest income | 192,500 | 164,034 | 368,665 | 323,733 |
INTEREST EXPENSE | ||||
Consolidated obligations - Discount notes | 14,876 | 10,103 | 29,700 | 19,391 |
Consolidated obligations - Bonds | 97,458 | 93,549 | 190,125 | 191,495 |
Deposits | 39 | 20 | 54 | 42 |
Borrowings from other FHLBanks | 1 | 1 | 1 | 1 |
Mandatorily redeemable capital stock | 453 | 46 | 632 | 91 |
Total interest expense | 112,827 | 103,719 | 220,512 | 211,020 |
NET INTEREST INCOME | 79,673 | 60,315 | 148,153 | 112,713 |
Provision (reversal) for credit losses on mortgage loans | 483 | 0 | 898 | (334) |
NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES | 79,190 | 60,315 | 147,255 | 113,047 |
OTHER INCOME (LOSS) | ||||
Net gains (losses) on trading securities | (27,089) | 22,331 | (8,226) | 46,534 |
Net gains (losses) from sale of available-for-sale securities | 0 | 0 | 0 | 826 |
Net gains (losses) from sale of held-to-maturity securities | 0 | 2,483 | 0 | 2,483 |
Net gains (losses) on financial instruments held at fair value | (390) | 0 | (390) | 2 |
Net gains (losses) on derivatives and hedging activities | 29,381 | (38,876) | (1,530) | (61,960) |
Net gains (losses) on extinguishment of debt | 0 | (2,736) | 0 | (2,736) |
Net gains (losses) on disposal of fixed assets | (2,400) | (420) | (2,400) | (431) |
Other, net | 685 | 2,549 | 3,272 | 4,075 |
Total other income (loss) | 187 | (14,669) | (9,274) | (11,207) |
OTHER EXPENSE | ||||
Compensation and benefits | 11,878 | 7,920 | 21,500 | 15,604 |
Contractual services | 3,079 | 1,779 | 4,624 | 3,859 |
Professional fees | 1,243 | 1,030 | 1,905 | 1,677 |
Merger related expenses | 33,130 | 0 | 35,352 | 0 |
Other operating expenses | 3,208 | 2,434 | 5,933 | 4,570 |
Federal Housing Finance Agency | 1,563 | 719 | 3,100 | 1,657 |
Office of Finance | 1,258 | 553 | 2,386 | 1,761 |
Other, net | 595 | 1,215 | 1,286 | 1,584 |
Total other expense | 55,954 | 15,650 | 76,086 | 30,712 |
NET INCOME BEFORE ASSESSMENTS | 23,423 | 29,996 | 61,895 | 71,128 |
Affordable Housing Program assessments | 2,388 | 3,004 | 6,253 | 7,122 |
NET INCOME | $ 21,035 | $ 26,992 | $ 55,642 | $ 64,006 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,035 | $ 26,992 | $ 55,642 | $ 64,006 |
Net unrealized gains (losses) on available-for-sale securities | ||||
Unrealized gains (losses) | (2,831) | 26,509 | 4,005 | 47,659 |
Reclassification of realized net gains included in net income | 0 | 0 | 0 | (826) |
Total net unrealized gains (losses) on available-for-sale securities | (2,831) | 26,509 | 4,005 | 46,833 |
Pension and postretirement benefits | 192 | 45 | 384 | 89 |
Total other comprehensive income (loss) | (2,639) | 26,554 | 4,389 | 46,922 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 18,396 | $ 53,546 | $ 60,031 | $ 110,928 |
Statements of Capital
Statements of Capital - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 4,312,148 | $ 3,456,867 | ||
Proceeds from issuance of capital stock | 1,254,504 | 1,023,207 | ||
Capital stock issued from merger | 894,395 | 0 | ||
Repurchases/redemptions of capital stock | (1,821,794) | (757,460) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ 90,172 | $ (3,563) | 89,079 | (3,740) |
Additional capital from merger | 246,462 | |||
Comprehensive income (loss) | 18,396 | 53,546 | 60,031 | 110,928 |
Cash dividends on capital stock | (50,422) | (37,197) | ||
BALANCE | 4,984,403 | 3,792,605 | 4,984,403 | 3,792,605 |
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 3,468,503 | $ 2,691,568 | ||
BALANCE (shares) | 34,685 | 26,916 | ||
Proceeds from issuance of capital stock | $ 1,254,504 | $ 1,023,207 | ||
Proceeds from issuance of capital stock (shares) | 12,545 | 10,232 | ||
Capital stock issued from merger | $ 894,395 | |||
Capital stock issued from merger (shares) | 8,944 | |||
Repurchases/redemptions of capital stock | $ (1,821,794) | $ (757,460) | ||
Repurchases/redemptions of capital stock (shares) | (18,218) | (7,575) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ 89,079 | $ (3,740) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | 891 | (37) | ||
BALANCE | $ 3,884,687 | $ 2,953,575 | $ 3,884,687 | $ 2,953,575 |
BALANCE (shares) | 38,847 | 29,536 | 38,847 | 29,536 |
Additional Capital from Merger [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 0 | $ 0 | ||
Additional capital from merger | 246,462 | |||
BALANCE | $ 246,462 | $ 0 | 246,462 | 0 |
Retained Earnings, Unrestricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 645,434 | 627,473 | ||
Comprehensive income (loss) | 44,514 | 51,205 | ||
Cash dividends on capital stock | (50,422) | (37,197) | ||
BALANCE | 639,526 | 641,481 | 639,526 | 641,481 |
Retained Earnings, Restricted [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 74,989 | 50,782 | ||
Comprehensive income (loss) | 11,128 | 12,801 | ||
BALANCE | 86,117 | 63,583 | 86,117 | 63,583 |
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 720,423 | 678,255 | ||
Comprehensive income (loss) | 55,642 | 64,006 | ||
Cash dividends on capital stock | (50,422) | (37,197) | ||
BALANCE | 725,643 | 705,064 | 725,643 | 705,064 |
Accumulated Other Comprehensive Income [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | 123,222 | 87,044 | ||
Comprehensive income (loss) | 4,389 | 46,922 | ||
BALANCE | 127,611 | 133,966 | 127,611 | 133,966 |
Common Class B [Member] | Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 3,468,503 | $ 2,691,568 | ||
BALANCE (shares) | 34,685 | 26,916 | ||
Proceeds from issuance of capital stock | $ 1,254,504 | $ 1,023,207 | ||
Proceeds from issuance of capital stock (shares) | 12,545 | 10,232 | ||
Capital stock issued from merger | $ 863,055 | |||
Capital stock issued from merger (shares) | 8,631 | |||
Repurchases/redemptions of capital stock | $ (1,790,454) | $ (757,460) | ||
Repurchases/redemptions of capital stock (shares) | (17,905) | (7,575) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ 89,079 | $ (3,740) | ||
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | 891 | (37) | ||
BALANCE | $ 3,884,687 | $ 2,953,575 | $ 3,884,687 | $ 2,953,575 |
BALANCE (shares) | 38,847 | 29,536 | 38,847 | 29,536 |
Common Class A [Member] | Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
BALANCE | $ 0 | $ 0 | ||
BALANCE (shares) | 0 | 0 | ||
Proceeds from issuance of capital stock | $ 0 | $ 0 | ||
Proceeds from issuance of capital stock (shares) | 0 | 0 | ||
Capital stock issued from merger | $ 31,340 | |||
Capital stock issued from merger (shares) | 313 | |||
Repurchases/redemptions of capital stock | $ (31,340) | $ 0 | ||
Repurchases/redemptions of capital stock (shares) | (313) | 0 | ||
Net shares reclassified (to) from mandatorily redeemable capital stock | $ 0 | $ 0 | ||
Net shares reclassified (to) from mandatorily redeemable capital stock (shares) | 0 | 0 | ||
BALANCE | $ 0 | $ 0 | $ 0 | $ 0 |
BALANCE (shares) | 0 | 0 | 0 | 0 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ 55,642 | $ 64,006 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 17,469 | 6,931 |
Net (gains) losses on trading securities | 8,226 | (46,534) |
Net (gains) losses from sale of available-for-sale securities | 0 | (826) |
Net (gains) losses from sale of held-to-maturity securities | 0 | (2,483) |
Net (gains) losses on financial instruments held at fair value | 390 | (2) |
Net change in derivatives and hedging activities | (20,423) | 44,342 |
Net (gains) losses on extinguishment of debt | 0 | 2,736 |
Other adjustments | 1,716 | (2,242) |
Net change in: | ||
Accrued interest receivable | (5,329) | (2,635) |
Other assets | 1,829 | 1,614 |
Accrued interest payable | (1,639) | (1,468) |
Other liabilities | 9,663 | 1,508 |
Total adjustments | 11,902 | 941 |
Net cash provided by (used in) operating activities | 67,544 | 64,947 |
Net change in: | ||
Interest-bearing deposits | 114,512 | (86,669) |
Securities purchased under agreements to resell | (2,559,000) | (1,125,000) |
Federal funds sold | (1,140,000) | (430,000) |
Premises, software, and equipment | (3,295) | (2,372) |
Cash transferred for merger | 2,341,201 | 0 |
Trading securities | ||
Proceeds from maturities of long-term | 11,912 | 11,783 |
Available-for-sale securities | ||
Proceeds from sales and maturities of long-term | 725,007 | 735,847 |
Purchases of long-term | (1,079,884) | (2,728,473) |
Held-to-maturity securities | ||
Proceeds from sales and maturities of long-term | 319,659 | 279,400 |
Purchases of long-term | (88,805) | 0 |
Advances | ||
Principal collected | 52,387,981 | 36,152,659 |
Originated | (46,258,582) | (42,233,923) |
Mortgage loans held for portfolio | ||
Principal collected | 603,315 | 404,720 |
Originated or purchased | (468,097) | (342,852) |
Proceeds from sales of foreclosed assets | 6,170 | 10,073 |
Net cash provided by (used in) investing activities | 4,912,094 | (9,354,807) |
FINANCING ACTIVITIES | ||
Net change in deposits | 151,447 | (285,155) |
Net payments on derivative contracts with financing elements | (4,190) | (4,001) |
Net proceeds from issuance of consolidated obligations | ||
Discount notes | 123,099,839 | 91,384,917 |
Bonds | 9,867,555 | 5,781,396 |
Payments for maturing and retiring consolidated obligations | ||
Discount notes | (123,096,954) | (70,191,934) |
Bonds | (13,850,567) | (17,759,485) |
Proceeds from issuance of capital stock | 1,254,504 | 1,023,207 |
Payments for repurchases/redemptions of capital stock | (1,821,794) | (757,460) |
Net payments for repurchases/redemptions of mandatorily redeemable capital stock | (541,367) | (3,885) |
Cash dividends paid | (50,422) | (37,197) |
Net cash provided by (used in) financing activities | (4,991,949) | 9,150,403 |
Net increase (decrease) in cash and due from banks | (12,311) | (139,457) |
Cash and due from banks at beginning of the period | 495,197 | 448,278 |
Cash and due from banks at end of the period | 482,886 | 308,821 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 496,377 | 414,443 |
Affordable Housing Program payments | 4,584 | 3,976 |
Capitalized interest on reverse mortgage securities | 7,374 | 660 |
Mortgage loan charge-offs | 4,916 | 466 |
Transfers of mortgage loans to real estate owned | 4,433 | 5,707 |
Capital stock issued from merger | 894,395 | 0 |
Advances | 9,190,741 | 0 |
Mortgage loans held for portfolio | 614,829 | 0 |
Accrued interest receivable | 47,570 | 0 |
Premises, software, and equipment | 3,239 | 0 |
Derivative assets | 39,777 | 0 |
Other assets | 22,412 | 0 |
Deposits | (370,814) | 0 |
Mandatorily redeemable capital stock | (724,827) | 0 |
Accrued interest payable | (38,198) | 0 |
Affordable Housing Program payable | (17,128) | 0 |
Derivative liabilities | (74,110) | 0 |
Other liabilities | (36,415) | 0 |
Consolidated Obligation Discount Notes [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Consolidated obligations | (12,448,960) | 0 |
Consolidated Obligation Bonds [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Consolidated obligations | (13,613,400) | 0 |
Interest-bearing Deposits [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | 202 | 0 |
Trading Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | 550,473 | 0 |
Available-for-sale Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | 9,825,223 | 0 |
Held-to-maturity Securities [Member] | ||
SUPPLEMENTAL DISCLOSURES | ||
Investments | $ 5,829,043 | $ 0 |
Background Information
Background Information | 6 Months Ended |
Jun. 30, 2015 | |
Background Information [Abstract] | |
Nature of Operations [Text Block] | Background Information The Federal Home Loan Bank of Des Moines (the Bank or the Des Moines Bank) is a federally chartered corporation organized on October 31, 1932, that is exempt from all federal, state, and local taxation (except real property taxes) and is one of 11 district Federal Home Loan Banks (FHLBanks). The FHLBanks were created under the authority of the Federal Home Loan Bank Act of 1932 (FHLBank Act). With the passage of the Housing and Economic Recovery Act of 2008 (Housing Act), the Federal Housing Finance Agency (Finance Agency) was established and became the new independent federal regulator of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, Enterprises), as well as the FHLBanks and FHLBanks' Office of Finance, effective July 30, 2008. The Finance Agency's mission is to ensure that the Enterprises and FHLBanks operate in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment. The Finance Agency establishes policies and regulations governing the operations of the Enterprises and FHLBanks. Each FHLBank operates as a separate entity with its own management, employees, and board of directors. The FHLBanks are government-sponsored enterprises (GSEs) that serve the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank provides a readily available, low cost source of funds to its member institutions and eligible housing associates. Commercial banks, thrifts, credit unions, insurance companies, and community development financial institutions (CDFIs) may apply for membership. State and local housing associates that meet certain statutory criteria may also borrow from the Bank; while eligible to borrow, housing associates are not members of the Bank and, as such, are not permitted to hold capital stock. The Bank is a cooperative. This means the Bank is owned by its customers, whom the Bank calls members. As a condition of membership in the Bank, all members must purchase and maintain membership capital stock based on a percentage of their total assets as of the preceding December 31 st . Each member is also required to purchase and maintain activity-based capital stock to support certain business activities with the Bank. The Bank's current members own nearly all of the outstanding capital stock of the Bank. Former members own the remaining capital stock, included in mandatorily redeemable capital stock, to support business transactions still carried on the Bank's Statements of Condition. All stockholders, including current and former members, may receive dividends on their capital stock investment to the extent declared by the Bank's Board of Directors. Merger On June 1, 2015, the Bank announced the successful completion of the merger with the Federal Home Loan Bank of Seattle (Seattle Bank), (the Merger), pursuant to the definitive merger agreement (Merger Agreement) dated September 25, 2014. The Merger closed on May 31, 2015 and the two Banks were operational as one Bank, the Federal Home Loan Bank of Des Moines (the combined Bank), on June 1, 2015. The combined Bank remains a member-owned and member-centric cooperative, focused on helping its members strengthen their institutions to better serve their customers and communities. It now provides funding solutions and liquidity to nearly 1,500 member financial institutions in Alaska, Hawaii, Idaho, Iowa, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The headquarters remain in Des Moines with a western regional office in Seattle. For additional discussion on the Merger, refer to "Note 2 — Merger". |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements and should be read in conjunction with the audited financial statements for the year ended December 31, 2014 , which are contained in the Bank's 2014 Annual Report on Form 10-K filed with the SEC on March 6, 2015 ( 2014 Form 10-K). In the opinion of management, the unaudited financial information is complete and reflects all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of results for the interim periods. The preparation of financial statements in accordance with GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2015 . The operations of the merged Seattle Bank have been included in the Bank's financial statements since June 1, 2015. The Merger had a significant impact on all aspects of the Bank's financial condition, results of operations, and cash flows. As a result, financial results for the current period are not directly comparable to financial results prior to the Merger. For additional information on the Merger, refer to "Note 2 — Merger". Reclassifications Certain amounts in the Bank's 2014 financial statements and footnotes have been reclassified to conform to the presentation for the three and six months ended June 30, 2015 . SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Bank's significant accounting policies during the six months ended June 30, 2015. However, as a result of the Merger, the Bank revised its allowance for credit losses accounting policy to incorporate the credit loss protection on conventional mortgage loans acquired under the Mortgage Purchase Program (MPP). For additional information on changes to the Bank's allowance for credit losses accounting policy, refer to “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates”. In addition, the Bank established a significant accounting policy on business combinations. Business Combinations The Bank applies the acquisition method of accounting for business combinations of mutual entities. Under the acquisition method, the Bank recognizes the identifiable assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed, is recorded as goodwill. Consideration transferred includes (i) equity interests of the Bank (i.e. par value of capital stock exchanged on a one-for-one basis for Seattle capital stock outstanding) and (ii) member interests in the Bank (i.e. the post-merger interest of Seattle members in the Bank, including a proportionate interest in the liquidation value of the Bank). Consideration transferred is recognized by recording the par value of capital stock issued in the transaction as capital stock, with the remaining portion being reflected in a new capital account captioned as “Additional capital from merger.” Acquisition-related costs are expensed as incurred. Descriptions of all other significant accounting policies are included in “Note 1 — Summary of Significant Accounting Policies” in the 2014 Form 10-K. |
Merger
Merger | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Merger Effective May 31, 2015 , the Bank and the Seattle Bank , two mutual entities for accounting purposes, completed the previously announced merger pursuant to the Merger Agreement, dated September 25, 2014. Similar to the Bank, the Seattle Bank, a cooperative owned by its members, was one of the 12 district Federal Home Loan Banks and served the public by enhancing the availability of funds for residential mortgages and targeted community development. The Bank believes the Merger combines two complementary organizations with similar cultures, membership characteristics, and solid financial positions. At closing, the Seattle Bank merged with and into the Des Moines Bank, with the Des Moines Bank surviving the Merger as the continuing bank. The first date of operations for the combined Bank was June 1, 2015. As part of the Merger, on the effective date of the Merger (merger date), each share of Seattle Bank Class A stock outstanding was converted into one share of Des Moines Bank Class A stock and each share of Seattle Bank Class B stock outstanding was converted into one share of Des Moines Bank Class B stock. Immediately following the Merger, all shares of Des Moines Bank Class A stock and excess shares of Class B stock were repurchased and Des Moines Class B stock was issued as needed to meet the Bank's activity and membership stock requirements in accordance with the combined Bank's Capital Plan. No shares of Seattle Bank capital stock remained outstanding. The Merger did not have an impact on the total capital stock held by Des Moines Bank stockholders. At the time of the Merger, the corporate existence of the Seattle Bank ceased, and each member of the Seattle Bank automatically ceased to be a member of the Seattle Bank and automatically became a member of the Des Moines Bank. In addition, the geographical territory previously included in the district for the Seattle Bank (Alaska, Hawaii, Idaho, Montana, Oregon, Utah, Washington, Wyoming, and the U.S. Pacific territories of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands) is now included in the district for the Des Moines Bank. The operations of the merged Seattle Bank have been included in the Bank's financial statements since June 1, 2015. However, the Seattle Bank is not a separate reporting segment and the Bank does not separately account for the amounts of revenues, expenses, and net income of the Seattle Bank. To do so would involve significant estimates of amounts, distinct segregation of operational and business practices inconsistent with the benefits of the Merger, and would require management to subjectively distinguish information about specific assets and liabilities transacted. As such, it is impracticable to determine such amounts for the period from June 1, 2015 through June 30, 2015. Pro Forma Financial Information The following unaudited pro forma summary has been prepared by adjusting the Bank's historical data to give effect to the Merger as if it had occurred on January 1, 2014 (dollars in thousands): Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Interest income $ 463,883 $ 443,140 Net income $ 59,634 $ 60,698 The unaudited pro forma financial information was prepared in accordance with the acquisition method of accounting for mutual entities under existing standards and is not necessarily indicative of the results of operations that would have occurred if the Merger had been completed on the date indicated, nor is it indicative of the future operating results of the Bank. The unaudited pro forma results have been adjusted with respect to certain aspects of the Merger to reflect: • additional premium/discount amortization as well as depreciation expense that would have been recognized assuming fair value adjustments to the assets acquired and liabilities assumed; • inclusion of merger related expenses incurred by the Bank totaling $ 37.0 million in the pro forma six months ended June 30, 2014; and • higher (lower) Affordable Housing Program assessments due to higher (lower) combined net income. The above pro forma adjustments do not reflect the impact of anticipated future cost savings resulting from the Merger. The adjustments included in these unaudited pro forma results are preliminary and may be revised. Consideration Transferred and Assets Acquired and Liabilities Assumed The Merger purchase accounting entries were recorded in accordance with business combination accounting guidance prescribed in Accounting Standard Codification Topic 805 with the Bank considered the acquirer of the Seattle Bank for accounting purposes. Consideration transferred included (i) equity interests of the Bank (i.e. par value of capital stock to be exchanged on a one-for-one basis for Seattle capital stock outstanding) and (ii) member interests in the Bank (i.e. the post-merger interest of Seattle members in the Bank, including a proportionate interest in the liquidation value of the Bank). The amount of consideration transferred was compared to the acquisition date fair value of the net identifiable assets acquired. Based on the consideration transferred, no goodwill was recorded. The Bank recognized net assets acquired by recording the par value of capital stock issued in the transaction as capital stock, with the remaining portion of net assets acquired reflected in a new capital account captioned as “Additional capital from merger.” This balance primarily represents the amount of the Seattle Bank's closing retained earnings balance, adjusted for fair value and other purchase accounting adjustments, and identified intangible assets. The Bank treats this additional capital from merger as a component of total capital for regulatory capital purposes and, subject to the Bank's Board of Directors' discretion and applicable regulatory requirements, plans to distribute dividends to the Bank’s members from this account until the additional capital from merger balance is depleted. The following table discloses the fair value of the consideration transferred and the total identifiable net assets acquired relating to the Merger (dollars in thousands): May 31, 2015 Fair value of consideration transferred: Fair value of shares issued $ 894,395 Member interests 246,462 Total fair value of consideration transferred $ 1,140,857 Assets acquired: Cash and due from banks $ 141 Interest-bearing deposits 202 Accounts receivable 1 2,341,059 Trading securities 550,473 Available-for-sale securities 9,825,223 Held-to-maturity securities 5,829,043 Advances 9,190,741 Mortgage loans held for portfolio 614,829 Accrued interest receivable 47,570 Premises, software, and equipment 3,239 Derivative assets 39,777 Other assets 22,412 Total assets acquired $ 28,464,709 Liabilities assumed: Deposits $ 370,814 Consolidated obligation discount notes 12,448,960 Consolidated obligation bonds 13,613,400 Mandatorily redeemable capital stock 724,827 Accrued interest payable 38,198 Affordable Housing Program payable 17,128 Derivative liabilities 74,110 Other liabilities 36,415 Total liabilities assumed 27,323,852 Net assets acquired $ 1,140,857 1 In anticipation of the closing of the Merger, on Friday, May 29, 2015, the Seattle Bank transferred $2.3 billion in cash to the Bank. The transfer was made to ensure the Bank had access to the Seattle Bank's cash balances on the first day of operations for the combined Bank, Monday, June 1, 2015. The Bank recorded a liability for this cash and the Seattle Bank recorded a receivable for this cash in their respective Statements of Condition for May 31, 2015. These balances were eliminated to arrive at the combined opening Statement of Condition. The fair value of financial assets acquired included $9.2 billion of advances and $0.6 billion of mortgage loans. The gross contractual amounts receivable for acquired advances were $9.5 billion , none of which were expected to be uncollectible. The gross contractual amounts receivable for acquired mortgage loans were $0.7 billion , of which an immaterial amount was expected to be uncollectible. Intangibles On the merger date, the Bank recognized a customer relationship intangible asset through "Other assets" in the Statements of Condition and determined that amortization would be calculated on a straight-line basis using an estimated life of 20 years (with no residual value). The Bank will assess the customer relationship intangible asset for impairment on at least an annual basis. As of June 30, 2015 , this intangible asset had a gross carrying value of $3.0 million and accumulated amortization of $12 thousand . Going forward, the Bank expects to recognize $148 thousand of amortization expense on an annual basis for the life of the intangible asset. Merger Related Expenses The following table provides a summary of merger related expenses incurred during the three and six months ended June 30, 2015 (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Compensation and benefits Change in control and severance agreements $ 15,981 $ 15,981 Retention 334 334 Pension and postretirement benefits 1 10,200 10,200 Other compensation and benefit merger related expenses 386 550 Transaction and integration Contractual services 478 552 Professional fees 4,349 6,116 Lease termination 1,000 1,000 Other merger related expenses 402 619 Total $ 33,130 $ 35,352 1 Represents a discretionary contribution made to bring the Seattle qualified defined benefit pension plan to a similar funding status as the Des Moines qualified defined benefit pension plan. Contingencies As a result of the Merger, the Bank is currently involved in a number of legal proceedings initiated by the Seattle Bank against various entities relating to its purchases and subsequent impairment of certain private-label MBS (the Private-Label MBS Litigation). Although the Seattle Bank sold all private-label MBS during the first quarter of 2015, the Bank continues to be involved in these proceedings. After consultation with legal counsel, other than the Private-Label MBS Litigation, the Bank does not believe any legal proceedings to which it is a party could have a material impact on its financial condition, results of operations, or cash flows. The Bank records an accrual for loss contingency when it is probable that a loss has been incurred and the amount can be reasonably estimated. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Guidance | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and Issued Accounting Guidance [Text Block] | Recently Adopted and Issued Accounting Guidance ADOPTED ACCOUNTING GUIDANCE Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure On August 8, 2014, the Financial Accounting Standards Board (FASB) issued amended guidance relating to the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure. The amendments in this guidance require that a mortgage loan be de-recognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. This guidance became effective for the Bank beginning on January 1, 2015 and was adopted prospectively. The adoption of this guidance did not have a material effect on the Bank's financial condition, results of operations, or cash flows. Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures On June 12, 2014, the FASB issued amended guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financing. This amendment requires secured borrowing accounting treatment for repurchase-to-maturity transactions and provides guidance on accounting for repurchase financing arrangements. In addition, this guidance requires additional disclosures, particularly on transfers accounted for as sales that are economically similar to repurchase agreements and on the nature of collateral pledged in repurchase agreements accounted for as secured borrowings. This guidance became effective for the Bank beginning on January 1, 2015. The adoption of this guidance did not have an effect on the Bank's financial condition, results of operations, cash flows, or financial statement disclosures. Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure On January 17, 2014, the FASB issued guidance clarifying when consumer mortgage loans collateralized by real estate should be reclassified to real estate owned (REO). Specifically, such collateralized mortgage loans should be reclassified to REO when either the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or the borrower conveys all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This guidance became effective for the Bank beginning on January 1, 2015 and was adopted prospectively. The adoption of this guidance did not have an effect on the Bank’s financial condition, results of operations, or cash flows. Finance Agency Advisory Bulletin on Asset Classification On April 9, 2012, the Finance Agency issued Advisory Bulletin 2012-02, Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention (AB 2012-02). AB 2012-02 establishes a standard and uniform methodology for classifying assets and prescribes the timing of asset charge-offs, excluding investment securities. The guidance in AB 2012-02 is generally consistent with the Uniform Retail Credit Classification and Account Management Policy issued by the federal banking regulators in June 2000. The adverse classification requirements were implemented as of January 1, 2014 and the charge-off requirements were implemented on January 1, 2015. This guidance did not have a material effect on the Bank's financial condition, results of operations, or cash flows. ISSUED ACCOUNTING GUIDANCE Cloud Computing Arrangements On April 15, 2015, the FASB issued amendments to clarify the accounting for cloud computing arrangements. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license and how to account for it. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2015, and early adoption is permitted. The Bank can elect to adopt the amendments either (i) prospectively to all arrangements entered into or materially modified after the effective date or (ii) retrospectively. This guidance is not expected to affect the Bank’s financial condition, results of operations, or cash flows. Simplifying the Presentation of Debt Issuance Costs On April 7, 2015, the FASB issued guidance to simplify the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented on the statement of condition as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2015, and early adoption is permitted for financial statements that have not been previously issued. The guidance is required to be applied on a retrospective basis to each individual period presented on the statement of condition. The Bank is in the process of evaluating this guidance and its effect on the Bank's financial condition, results of operations, or cash flows is not expected to be material. Amendments to the Consolidation Analysis On February 18, 2015, the FASB issued amended guidance intended to enhance consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The new guidance primarily focuses on the following: • Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. • Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). • Changing consolidation conclusions for entities in several industries that typically make use of limited partnerships or VIEs. This guidance becomes effective for the Bank for the interim and annual periods beginning after December 15, 2015, and early adoption is permitted, including adoption in an interim period. This guidance is not expected to affect the Bank’s financial condition, results of operations, or cash flows. Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern On August 27, 2014, the FASB issued guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year after the date the financial statements are issued or within one year after the financial statements are available to be issued, when applicable. Substantial doubt exists if it is probable that the entity will be unable to meet its obligations for the assessed period. This guidance becomes effective for the interim and annual periods ending after December 15, 2016, and early application is permitted. Management will be required to make the initial assessment required by this guidance as of December 31, 2016. This guidance is not expected to have an effect on the Bank's financial condition, results of operations, cash flows, or financial statement disclosures. Revenue from Contracts with Customers On May 28, 2014, the FASB issued guidance on revenue from contracts with customers. This guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In addition, this guidance amends the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer. This guidance applies to all contracts with customers except those that are within the scope of certain other standards, such as financial instruments, certain guarantees, insurance contracts, or lease contracts. This guidance was originally written to become effective for the interim and annual reporting periods beginning after December 15, 2016, with no early application permitted. However, the FASB issued additional guidance which makes the changes effective for the interim and annual reporting periods beginning after December 15, 2017. The guidance provides entities with the option of using the following two methods upon adoption: a full retrospective method, retrospectively to each prior reporting period presented; or a transition method, retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. The Bank is in the process of evaluating this guidance and its effect on the Bank's financial condition, results of operations, or cash flows is not expected to be material. |
Trading Securities
Trading Securities | 6 Months Ended |
Jun. 30, 2015 | |
Trading Securities [Abstract] | |
Trading Securities [Text Block] | Trading Securities Major Security Types Trading securities were as follows (dollars in thousands): June 30, December 31, Non-mortgage-backed securities Other U.S. obligations 1 $ 248,464 $ 256,267 GSE obligations 2,080,172 1,531,811 Other 2 275,160 280,215 Total non-mortgage-backed securities 2,603,796 2,068,293 Mortgage-backed securities GSE multifamily 459,329 462,197 Total fair value $ 3,063,125 $ 2,530,490 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds. Net Gains (Losses) on Trading Securities During the three and six months ended June 30, 2015 , the Bank recorded net holding losses of $27.1 million and $8.2 million on its trading securities compared to net holding gains of $22.3 million and $46.5 million for the same periods in 2014 . The Bank did not sell any trading securities during the three and six months ended June 30, 2015 and 2014. |
Available-for-Sale Securities
Available-for-Sale Securities | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
Available-for-Sale Securities [Text Block] | Available-for-Sale Securities Major Security Types Available-for-sale (AFS) securities we re as follows (dollars in thousands): June 30, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 4,202,560 $ 18,369 $ (1,646 ) $ 4,219,283 GSE obligations 2,369,442 24,078 (1,487 ) 2,392,033 State or local housing agency obligations 1,070,816 844 (696 ) 1,070,964 Other 3 290,070 7,289 (5 ) 297,354 Total non-mortgage-backed securities 7,932,888 50,580 (3,834 ) 7,979,634 Mortgage-backed securities Other U.S. obligations single-family 2 2,398,937 7,798 (346 ) 2,406,389 GSE single-family 1,787,189 16,225 (97 ) 1,803,317 GSE multifamily 9,977,866 70,846 (10,536 ) 10,038,176 Total mortgage-backed securities 14,163,992 94,869 (10,979 ) 14,247,882 Total $ 22,096,880 $ 145,449 $ (14,813 ) $ 22,227,516 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists of taxable municipal bonds and Private Export Funding Corporation bonds. AFS securities we re as follows (dollars in thousands): December 31, 2014 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 158,864 $ 4,761 $ (56 ) $ 163,569 GSE obligations 993,681 22,682 (4,055 ) 1,012,308 State or local housing agency obligations 36,320 176 (148 ) 36,348 Other 3 176,277 7,425 — 183,702 Total non-mortgage-backed securities 1,365,142 35,044 (4,259 ) 1,395,927 Mortgage-backed securities Other U.S. obligations single-family 2 1,979,226 340 (3,875 ) 1,975,691 GSE single-family 1,991,471 17,586 (150 ) 2,008,907 GSE multifamily 6,921,322 85,334 (3,389 ) 7,003,267 Total mortgage-backed securities 10,892,019 103,260 (7,414 ) 10,987,865 Total $ 12,257,161 $ 138,304 $ (11,673 ) $ 12,383,792 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists of taxable municipal bonds. Unrealized Losses The following table summarizes AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities Other U.S. obligations $ 2,362,972 $ (1,646 ) $ — $ — $ 2,362,972 $ (1,646 ) GSE obligations 1,148,557 (1,487 ) — — 1,148,557 (1,487 ) State or local housing agency obligations 40,342 (445 ) 6,103 (251 ) 46,445 (696 ) Other 20,378 (5 ) — — 20,378 (5 ) Total non-mortgage-backed securities 3,572,249 (3,583 ) 6,103 (251 ) 3,578,352 (3,834 ) Mortgage-backed securities Other U.S. obligations single-family 223,745 (346 ) — — 223,745 (346 ) GSE single-family 106 (6 ) 93,329 (91 ) 93,435 (97 ) GSE multifamily 3,542,905 (9,526 ) 224,369 (1,010 ) 3,767,274 (10,536 ) Total mortgage-backed securities 3,766,756 (9,878 ) 317,698 (1,101 ) 4,084,454 (10,979 ) Total $ 7,339,005 $ (13,461 ) $ 323,801 $ (1,352 ) $ 7,662,806 $ (14,813 ) The following table summarizes AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities Other U.S. obligations $ 34,993 $ (56 ) $ — $ — $ 34,993 $ (56 ) GSE obligations 230,965 (286 ) 109,669 (3,769 ) 340,634 (4,055 ) State or local housing agency obligations — — 6,527 (148 ) 6,527 (148 ) Total non-mortgage-backed securities 265,958 (342 ) 116,196 (3,917 ) 382,154 (4,259 ) Mortgage-backed securities Other U.S. obligations single-family 1,698,157 (3,875 ) — — 1,698,157 (3,875 ) GSE single-family — — 107,910 (150 ) 107,910 (150 ) GSE multifamily 1,331,057 (3,053 ) 74,806 (336 ) 1,405,863 (3,389 ) Total mortgage-backed securities 3,029,214 (6,928 ) 182,716 (486 ) 3,211,930 (7,414 ) Total $ 3,295,172 $ (7,270 ) $ 298,912 $ (4,403 ) $ 3,594,084 $ (11,673 ) Contractual Maturity The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 152,687 $ 153,328 $ 66,673 $ 66,904 Due after one year through five years 1,404,466 1,423,764 898,464 915,574 Due after five years through ten years 3,975,235 3,990,895 247,821 255,333 Due after ten years 2,400,500 2,411,647 152,184 158,116 Total non-mortgage-backed securities 7,932,888 7,979,634 1,365,142 1,395,927 Mortgage-backed securities 14,163,992 14,247,882 10,892,019 10,987,865 Total $ 22,096,880 $ 22,227,516 $ 12,257,161 $ 12,383,792 Net Gains (Losses) from Sale of AFS Securities During the three and six months ended June 30, 2015 , and the three months ended June 30, 2014 , the Bank did no t sell any AFS securities. During the six months ended June 30, 2014 , the Bank received $97.2 million in proceeds from the sale of an AFS security and recognized a gross gain of $0.8 million . |
Held-to-Maturity Securities
Held-to-Maturity Securities | 6 Months Ended |
Jun. 30, 2015 | |
Held-to-maturity Securities, Unclassified [Abstract] | |
Held-to-Maturity Securities [Text Block] | Held-to-Maturity Securities Major Security Types Held-to-maturity (HTM) securities wer e as follows (dollars in thousands): June 30, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE obligations $ 403,082 $ 57,916 $ (2,430 ) $ 458,568 State or local housing agency obligations 989,990 6,831 (366 ) 996,455 Total non-mortgage-backed securities 1,393,072 64,747 (2,796 ) 1,455,023 Mortgage-backed securities Other U.S. obligations single-family 2 63,055 35 — 63,090 Other U.S. obligations commercial 2 7,065 — (3 ) 7,062 GSE single-family 5,325,241 10,758 (9,354 ) 5,326,645 Private-label residential 22,793 92 (674 ) 22,211 Total mortgage-backed securities 5,418,154 10,885 (10,031 ) 5,419,008 Total $ 6,811,226 $ 75,632 $ (12,827 ) $ 6,874,031 December 31, 2014 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE obligations $ 305,126 $ 69,730 $ — $ 374,856 State or local housing agency obligations 59,963 6,042 — 66,005 Total non-mortgage-backed securities 365,089 75,772 — 440,861 Mortgage-backed securities Other U.S. obligations single-family 2 3,247 11 — 3,258 Other U.S. obligations commercial 2 1,415 — (1 ) 1,414 GSE single-family 816,793 12,302 (31 ) 829,064 Private-label residential 24,916 58 (523 ) 24,451 Total mortgage-backed securities 846,371 12,371 (555 ) 858,187 Total $ 1,211,460 $ 88,143 $ (555 ) $ 1,299,048 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion and/or amortization. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. Unrealized Losses The following tables summarize HTM securities with unrealized losses by major security type and the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands) June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities GSE obligations $ 96,423 $ (2,430 ) $ — $ — $ 96,423 $ (2,430 ) State or local housing agency obligations 82,698 (366 ) — — 82,698 (366 ) Total non-mortgage-backed securities 179,121 (2,796 ) — — 179,121 (2,796 ) Mortgage-backed securities Other U.S. obligations commercial 6,174 (2 ) 498 (1 ) 6,672 (3 ) GSE single-family 1,853,208 (9,305 ) 34,659 (49 ) 1,887,867 (9,354 ) Private-label residential — — 14,566 (674 ) 14,566 (674 ) Total mortgage-backed securities 1,859,382 (9,307 ) 49,723 (724 ) 1,909,105 (10,031 ) Total $ 2,038,503 $ (12,103 ) $ 49,723 $ (724 ) $ 2,088,226 $ (12,827 ) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Mortgage-backed securities Other U.S. obligations commercial $ — $ — $ 248 $ (1 ) $ 248 $ (1 ) GSE single-family 1,436 (4 ) 38,607 (27 ) 40,043 (31 ) Private-label residential — — 16,243 (523 ) 16,243 (523 ) Total mortgage-backed securities $ 1,436 $ (4 ) $ 55,098 $ (551 ) $ 56,534 $ (555 ) Contractual Maturity The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 16,520 $ 16,522 $ — $ — Due after one year through five years 138,164 138,180 — — Due after five years through ten years 141,263 141,384 — — Due after ten years 1,097,125 1,158,937 365,089 440,861 Total non-mortgage-backed securities 1,393,072 1,455,023 365,089 440,861 Mortgage-backed securities 5,418,154 5,419,008 846,371 858,187 Total $ 6,811,226 $ 6,874,031 $ 1,211,460 $ 1,299,048 Net Gains (Losses) from Sale of HTM Securities During both the three and six months ended June 30, 2015 , the Bank did not sell any HTM securities. During both the three and six months ended June 30, 2014 , the Bank sold an HTM security with a carrying amount of $20.0 million and recognized a gross gain of $2.5 million . The HTM security sold had less than 15 percent of the acquired principal outstanding at the time of sale. As such, the sale was considered a maturity for p urpose of security classification and did not impact the Bank's ability and intent to hold the remaining HTM securities through their stated maturities. |
Other-Than-Temporary Impairment
Other-Than-Temporary Impairment Analysis | 6 Months Ended |
Jun. 30, 2015 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Other-Than-Temporary Impairment [Text Block] | Other-Than-Temporary Impairment The Bank evaluates its individual AFS and HTM securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. As part of its evaluation of securities for OTTI, the Bank considers its intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank will recognize an OTTI charge to earnings equal to the entire difference between the security's amortized cost basis and its fair value at the reporting date. For securities in an unrealized loss position that meet neither of these conditions, the Bank performs analyses to determine if any of these securities are other-than-temporarily impaired. Private-Label Mortgage-Backed Securities On a quarterly basis, the Bank engages other designated FHLBanks to perform cash flow analyses on its private-label MBS using two third-party models in order to assess whether the entire amortized cost bases of these securities will be recovered. For a description of these models, refer to "Item 8. Financial Statements and Supplementary Data - Note 7 - Other-than-Temporary Impairment" in the Bank's 2014 Form 10-K. The FHLBanks' OTTI Governance Committee developed a short-term housing price forecast with projected changes ranging from a decrease of two percent to an increase of eight percent over the twelve month period beginning April 1, 2015 . For the vast majority of markets, the projected short-term housing price changes range from two percent to an increase of five percent . Thereafter, a unique path is projected for each geographical area based on an internally developed framework derived from historical data. The Bank compared the present value of the cash flows expected to be collected with respect to its private-label MBS to the amortized cost bases of the securities to determine whether a credit loss existed. At June 30, 2015 , the Bank's cash flow analyses for private-label MBS did not project any credit losses. Even under an adverse scenario that delays recovery of the housing price index, no credit losses were projected. The Bank does not intend to sell its private-label MBS and it is not more likely than not that the Bank will be required to sell its private-label MBS before recovery of their amortized cost bases. As a result, the Bank did not consider any of its private-label MBS to be other-than-temporarily impaired at June 30, 2015 . All Other AFS and HTM Investment Securities On a quarterly basis, the Bank reviews all remaining AFS and HTM securities in an unrealized loss position to determine whether they are other-than temporarily impaired. The following was determined for the Bank's other investment securities in an unrealized loss position at June 30, 2015 : • Other U.S. obligations and GSE securities. The unrealized losses were due primarily to interest rate volatility. The strength of the issuers' guarantees through direct obligations or support from the U.S. Government was sufficient to protect the Bank from losses based on current expectations. The Bank expects to recover the amortized cost bases on these securities and neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before recovery of their amortized cost bases. As such, the Bank did not consider these securities to be other-than-temporarily impaired at June 30, 2015 . • State or local housing agency obligations . The unrealized losses were due to changes in interest rates, credit spreads, and illiquidity in the credit markets, and not to a significant deterioration in the fundamental credit quality of the obligations. The creditworthiness of the issuers and the strength of the underlying collateral and credit enhancements were sufficient to protect the Bank from losses based on current expectations. The Bank does not intend to sell these securities nor is it more likely than not that it will be required to sell these securities before recovery of their amortized cost bases. As such, the Bank did not consider these securities to be other-than-temporarily impaired at June 30, 2015 . • Other - PEFCO Bond. The unrealized loss was due to changes in interest rates, credit spreads, and illiquidity in the credit markets, and not to a significant deterioration in the fundamental credit quality of the bond. The Bank does not intend to sell this security nor is it more likely than not that it will be required to sell this security before recovery of the amortized cost basis. As such, the Bank did not consider this security to be other-than-temporarily impaired at June 30, 2015. Additionally, the strength of the issuer’s guarantee by an agency of the U.S. Government or a trust consisting of pledged collateral, which may include guaranteed importer notes, securities guaranteed by the full faith and credit of the U.S. Government, or cash, is sufficient to protect the Bank from loss based on current expectations. |
Advances
Advances | 6 Months Ended |
Jun. 30, 2015 | |
Advances [Abstract] | |
Advances [Text Block] | Advances Contractual Maturity The following table summarizes the Bank's advances outstanding by contractual maturity (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 493 3.29 $ 66 3.28 Due in one year or less 14,064,225 0.65 7,997,497 0.66 Due after one year through two years 6,044,246 1.48 4,028,617 1.45 Due after two years through three years 5,235,971 2.33 4,437,280 1.68 Due after three years through four years 20,230,055 0.44 20,706,329 0.56 Due after four years through five years 14,395,365 0.45 21,447,326 0.33 Thereafter 7,872,608 1.26 6,335,093 0.98 Total par value 67,842,963 0.82 64,952,208 0.67 Premiums 161,946 137 Discounts (10,485 ) (6,388 ) Fair value hedging adjustments 186,785 222,317 Fair value option adjustments 95 — Total $ 68,181,304 $ 65,168,274 The Bank offers advances to members and eligible housing associates that may be prepaid on pertinent dates (call dates) prior to maturity without incurring prepayment fees (callable advances). If the call option is exercised, replacement funding may be available. At June 30, 2015 and December 31, 2014 , the Bank had callable advances outstanding totaling $37.6 billion and $44.6 billion . The Bank also offers putable advances. With a putable advance, the Bank has the right to terminate the advance from the borrower on predetermined exercise dates, and the borrower may then apply for a new advance at the prevailing market rate. Generally, put options are exercised when interest rates increase. At June 30, 2015 and December 31, 2014 , t he Bank had putable advances outstanding totaling $2.9 billion and $2.1 billion . Prepayment Fees The Bank generally charges a prepayment fee for advances that a borrower elects to terminate prior to the stated maturity or outside of a predetermined call or put date. The fees charged are priced to make the Bank financially indifferent to the prepayment of the advance. For certain advances with symmetrical prepayment features, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. Prepayment fees and credits are recorded net of fair value hedging adjustments in the Statements of Income. The following table summarizes the Bank's prepayment fees on advances, net (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Prepayment fee income $ 13,697 $ 16,836 $ 13,962 $ 17,167 Fair value hedging adjustments 1 (5,164 ) (13,618 ) (4,922 ) (13,783 ) Prepayment fees on advances, net $ 8,533 $ 3,218 $ 9,040 $ 3,384 1 Represents the amortization/accretion of fair value hedging adjustments on closed advance hedge relationships resulting from advance prepayments. For information related to the Bank's credit risk exposure on advances, refer to "Note 10 — Allowance for Credit Losses." |
Mortgage Loans Held for Portfol
Mortgage Loans Held for Portfolio | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans Held for Portfolio [Text Block] | Mortgage Loans Held for Portfolio The Bank participates in the Mortgage Partnership Finance (MPF) program (Mortgage Partnership Finance and MPF are registered trademarks of the FHLBank of Chicago). This program involves investment by the Bank in single-family mortgage loans held for portfolio that are either purchased from participating financial institutions (PFIs) or funded by the Bank through PFIs. MPF loans may also be acquired through participations in pools of eligible mortgage loans purchased from other FHLBanks. The Bank's MPF PFIs generally originate, service, and credit enhance mortgage loans that are sold to the Bank. MPF PFIs participating in the servicing release program do not service the loans owned by the Bank. The servicing on these loans is sold concurrently by the MPF PFI to a designated mortgage service provider. Effective May 31, 2015, as a part of the Merger, the Bank acquired mortgage loans previously purchased by the Seattle Bank under the MPP. This program involved investment by the Seattle Bank in single-family mortgage loans that were purchased directly from MPP PFIs. Similar to the MPF program, MPP PFIs generally originated, serviced, and credit enhanced the mortgage loans sold to the Seattle Bank. In 2005, the Seattle Bank ceased entering into new MPP master commitment contracts and therefore all MPP loans acquired by the Bank were originated prior to 2006. The Bank does not currently purchase mortgage loans under this program. For additional information on the Merger, refer to "Note 2 — Merger". The following tables present information on the Bank's mortgage loans held for portfolio (dollars in thousands): June 30, 2015 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 4,980,194 $ 565,333 $ 5,545,527 Fixed rate, medium-term 1 single-family mortgage loans 1,368,237 18,780 1,387,017 Total unpaid principal balance 6,348,431 584,113 6,932,544 Premiums 79,316 20,272 99,588 Discounts (10,609 ) (1,851 ) (12,460 ) Basis adjustments from mortgage loan commitments 10,059 — 10,059 Total mortgage loans held for portfolio $ 6,427,197 $ 602,534 $ 7,029,731 December 31, 2014 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 5,024,393 $ — $ 5,024,393 Fixed rate, medium-term 1 single-family mortgage loans 1,462,014 — 1,462,014 Total unpaid principal balance 6,486,407 — 6,486,407 Premiums 82,206 — 82,206 Discounts (12,191 ) — (12,191 ) Basis adjustments from mortgage loan commitments 10,947 — 10,947 Total mortgage loans held for portfolio $ 6,567,369 $ — $ 6,567,369 1 Medium-term is defined as a term of 15 years or less. The following tables present the Bank's mortgage loans held for portfolio by collateral or guarantee type (dollars in thousands): June 30, 2015 MPF MPP Total Conventional mortgage loans $ 5,785,880 $ 528,179 $ 6,314,059 Government-insured mortgage loans 562,551 55,934 618,485 Total unpaid principal balance $ 6,348,431 $ 584,113 $ 6,932,544 December 31, 2014 MPF MPP Total Conventional mortgage loans $ 5,916,651 $ — $ 5,916,651 Government-insured mortgage loans 569,756 — 569,756 Total unpaid principal balance $ 6,486,407 $ — $ 6,486,407 For information related to the Bank's credit risk exposure on mortgage loans held for portfolio, refer to "Note 10 — Allowance for Credit Losses." |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2015 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Credit Losses The Bank has established an allowance for credit losses methodology for each of its financing receivable portfolio segments: advances, standby letters of credit, and other extensions of credit to borrowers (collectively, credit products), government-insured mortgage loans held for portfolio, conventional mortgage loans held for portfolio, and term securities purchased under agreements to resell. Credit Products The Bank manages its credit exposure to credit products through an approach that includes establishing a credit limit for each borrower, ongoing reviews of each borrower's financial condition, and detailed collateral and lending policies to limit risk of loss while balancing borrowers' needs for a reliable source of funding. In addition, the Bank lends to eligible borrowers in accordance with the FHLBank Act, Finance Agency regulations, and other applicable laws. The Bank is required by regulation to obtain sufficient collateral to fully secure credit products. The estimated value of the collateral required to secure each borrower's credit products is calculated by applying collateral discounts, or haircuts, to the unpaid principal balance or market value, if available, of the collateral. Eligible collateral includes (i) whole first mortgages on improved residential real property or securities representing a whole interest in such mortgages, (ii) loans and securities issued, insured, or guaranteed by the U.S. Government or any agency thereof, including MBS issued or guaranteed by Fannie Mae, Freddie Mac, or Government National Mortgage Association and Federal Family Education Loan Program guaranteed student loans, (iii) cash deposited with the Bank, and (iv) other real estate-related collateral acceptable to the Bank provided such collateral has a readily ascertainable value and the Bank can perfect a security interest in such property. In addition, community financial institutions may also pledge collateral consisting of secured small business, small agri-business, or small farm loans. As additional security, the FHLBank Act provides that the Bank has a lien on each member's capital stock investment; however, capital stock cannot be pledged as collateral to secure credit exposures. Collateral arrangements may vary depending upon borrower credit quality, financial condition and performance, borrowing capacity, and overall credit exposure to the borrower. The Bank can also require additional or substitute collateral to protect its security interest. The Bank periodically evaluates and makes changes to its collateral guidelines and collateral haircuts. Borrowers may pledge collateral to the Bank by executing a blanket lien, specifically assigning collateral, or placing physical possession of collateral with the Bank or its custodians. The Bank perfects its security interest in all pledged collateral by filing Uniform Commercial Code financing statements or by taking possession or control of the collateral. Under the FHLBank Act, any security interest granted to the Bank by its members, or any affiliates of its members, has priority over the claims and rights of any party (including any receiver, conservator, trustee, or similar party having rights of a lien creditor), unless those claims and rights would be entitled to priority under otherwise applicable law and are held by actual purchasers or by parties that have perfected security interests. Under a blanket lien, the Bank is granted a security interest in all financial assets of the borrower to fully secure the borrower's obligation. Other than securities and cash deposits, the Bank does not initially take delivery of collateral pledged by blanket lien borrowers. In the event of deterioration in the financial condition of a blanket lien borrower, the Bank has the ability to require delivery of pledged collateral sufficient to secure the borrower's obligation. With respect to non-blanket lien borrowers that are federally insured, the Bank generally requires collateral to be specifically assigned. With respect to non-blanket lien borrowers that are not federally insured (typically insurance companies, CDFIs, and housing associates), the Bank generally takes control of collateral through the delivery of cash, securities, or loans to the Bank or its custodians. Using a risk-based approach and taking into consideration each borrower's financial strength, the Bank considers the types and level of collateral to be the primary indicator of credit quality on its credit products. At June 30, 2015 and December 31, 2014 , the Bank had rights to collateral on a borrower-by-borrower basis with an unpaid principal balance or market value, if available, in excess of its outstanding extensions of credit. At June 30, 2015 and December 31, 2014 , none of the Bank's credit products were past due, on non-accrual status, or considered impaired. In addition, there were no troubled debt restructurings (TDRs) related to credit products during the six months ended June 30, 2015 and 2014 . The Bank has never experienced a credit loss on its credit products. Based upon the Bank's collateral and lending policies, the collateral held as security, and the repayment history on credit products, management has determined that there were no probable credit losses on its credit products as of June 30, 2015 and December 31, 2014 . Accordingly, the Bank has not recorded any allowance for credit losses for its credit products. Government-Insured Mortgage Loans The Bank invests in government-insured fixed rate mortgage loans that are insured or guaranteed by the Federal Housing Administration, the Department of Veterans Affairs, and/or the Rural Housing Service of the Department of Agriculture. The servicer or PFI obtains and maintains insurance or a guaranty from the applicable government agency. The servicer or PFI is responsible for compliance with all government agency requirements and for obtaining the benefit of the applicable guarantee or insurance with respect to defaulted government-insured mortgage loans. Any losses incurred on these loans that are not recovered from the insurer/guarantor are absorbed by the servicers. As such, the Bank only has credit risk for these loans if the servicer or PFI fails to pay for losses not covered by the guarantee or insurance. Management views this risk as remote and has never experienced a credit loss on its government-insured mortgage loans. As a result, the Bank did not establish an allowance for credit losses for its government-insured mortgage loans at June 30, 2015 and December 31, 2014 . Furthermore, none of these mortgage loans have been placed on non-accrual status because of the U.S. Government guarantee or insurance on these loans and the contractual obligation of the loan servicer to repurchase the loans when certain criteria are met. Conventional Mortgage Loans The Bank's management of credit risk in the MPF program and MPP involves several layers of legal loss protection that are defined in agreements among the Bank and its participating PFIs. MPF Loans For the Bank's conventional MPF loans, the availability of loss protection may differ slightly among MPF products. The Bank's loss protection consists of the following loss layers, in order of priority: • Homeowner Equity. • Primary Mortgage Insurance (PMI). At the time of origination, PMI is required on all loans with homeowner equity of less than 20 percent of the original purchase price or appraised value, whichever is less and as applicable to the specific loan. • First Loss Account (FLA). The FLA is a memorandum account used to track the Bank's potential loss exposure under each master commitment prior to the PFI's credit enhancement obligation. • Credit Enhancement Obligation of PFI. PFIs have a credit enhancement obligation at the time a mortgage loan is purchased to absorb certain losses in excess of the FLA in order to limit the Bank's loss exposure to that of an investor in an MBS that is rated the equivalent of AA by a nationally recognized statistical rating organization (NRSRO). PFIs pledge collateral to secure this obligation. For absorbing losses in excess of the FLA, PFIs are paid a credit enhancement fee, a portion of which may be performance-based. MPP Loans Effective May 31, 2015, as a part of the Merger with the Seattle Bank, the Bank acquired mortgage loans previously purchased by the Seattle Bank under the MPP. For the Bank's conventional MPP loans, the loss protection consists of the following loss layers, in order of priority: • Homeowner Equity. • Primary Mortgage Insurance. At the time of origination, PMI is required on all loans with homeowner equity of less than 20 percent of the original purchase price or appraised value, whichever is less and as applicable to the specific loan. • Lender Risk Account (LRA). The LRA is a lender-specific account originally funded by the Seattle Bank in an amount approximately sufficient to cover expected losses on the pool of mortgages either up front as a portion of the purchase proceeds or through a portion of the net interest remitted monthly by the member. To the extent available, LRA funds are used to offset any losses that occur. Typically, after five years, excess funds over required balances are distributed to the member in accordance with a step-down schedule that is established upon execution of a master commitment contract. Allowance Methodology The Bank utilizes an allowance for credit losses to reserve for estimated losses in its conventional MPF mortgage loan portfolio at the balance sheet date. The measurement of the Bank's MPF allowance for credit losses is determined by (i) reviewing similar conventional mortgage loans for impairment on a collective basis, (ii) reviewing conventional mortgage loans for impairment on an individual basis, (iii) estimating additional credit losses in the conventional mortgage loan portfolio, (iv) considering the recapture of performance-based credit enhancement fees from the PFI, if available, and (v) considering the credit enhancement obligation of the PFI, if estimated losses exceed the FLA. The Bank established an allowance for credit losses to reserve for estimated losses in its conventional MPP mortgage loan portfolio at the balance sheet date. The establishment of the Bank's MPP allowance for credit losses was determined by (i) reviewing similar conventional mortgage loans for impairment on a collective basis, (ii) reviewing conventional mortgage loans for impairment on an individual basis, (iii) estimating additional credit losses in the conventional mortgage loan portfolio, and (iv) considering the LRA if estimated losses exceed the losses not paid by homeowner equity or PMI. Collectively Evaluated Conventional Mortgage Loans . The Bank collectively evaluates the majority of its conventional MPF and MPP mortgage loan portfolios for impairment and estimates an allowance for credit losses based upon factors that include, but are not limited to, (i) loan delinquencies, (ii) loans migrating to collateral-dependent status, (iii) actual historical loss severities, and (iv) certain quantifiable economic factors, such as unemployment rates and home prices. The Bank utilizes a roll-rate methodology when estimating its allowance for credit losses. This methodology projects loans migrating to collateral-dependent status based on historical average rates of delinquency. The Bank then applies a loss severity factor to calculate an estimate of credit losses. Individually Identified Conventional Mortgage Loans . The Bank individually evaluates certain MPF and MPP conventional mortgage loans, including TDRs and collateral-dependent loans, for impairment. The Bank's TDRs include loans granted under its temporary loan modification plan and loans discharged under Chapter 7 bankruptcy that have not been reaffirmed by the borrower. The Bank generally measures impairment of TDRs based on the present value of expected future cash flows discounted at the loan's effective interest rate. Collateral-dependent loans are loans in which repayment is expected to be provided solely by the sale of the underlying collateral. The Bank's collateral-dependent loans include loans in process of foreclosure, loans 180 days or more past due, and bankruptcy loans and TDRs 60 days or more past due. The Bank measures impairment of collateral-dependent loans based on the estimated fair value of the underlying collateral, which is determined using property values, less selling costs and expected proceeds from PMI. A charge-off is recorded if it is estimated that the recorded investment in a loan will not be recovered. The Bank evaluates whether to record a charge-off based upon the occurrence of a confirming event. Prior to January 1, 2015, charge-offs generally were recorded at the time a mortgage loan was transferred to REO. Beginning January 1, 2015, the Bank began to also charge-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral for all collateral-dependent mortgage loans. This change did not have a material effect on the Bank's financial condition or results of operations. Estimating Additional Credit Loss in the MPF and MPP Conventional Mortgage Loan Portfolios . The Bank may make adjustments for certain limitations in its estimation of credit losses. These adjustments recognize the imprecise nature of an estimate and represents a subjective management judgment that is intended to cover losses resulting from other factors that may not be captured in the methodology previously described at the balance sheet date. MPF Performance-Based Credit Enhancement Fees. When reserving for estimated credit losses, the Bank may take into consideration performance-based credit enhancement fees available for recapture from the PFIs. Performance-based credit enhancement fees available for recapture, if any, consist of accrued performance-based credit enhancement fees to be paid to the PFIs and projected performance-based credit enhancement fees to be paid to the PFIs over the next 12 months, less any losses incurred that are in the process of recapture. Available performance-based credit enhancement fees cannot be shared between master commitments and, as a result, some master commitments may have sufficient performance-based credit enhancement fees to recapture losses while other master commitments may not. At June 30, 2015 and December 31, 2014 , the Bank determined that the amount of performance-based credit enhancement fees available for recapture from the PFIs at the master commitment level was immaterial. As such, it did not factor credit enhancement fees into its estimate of the allowance for credit losses. MPF PFI Credit Enhancement Obligation. When reserving for estimated credit losses, the Bank may take into consideration the PFI credit enhancement obligation, which is intended to absorb losses in excess of the FLA. At June 30, 2015 and December 31, 2014 , the Bank determined that the amount of credit enhancement obligation available to offset losses was immaterial. As such, it did not factor credit enhancement obligation into its estimate of the allowance for credit losses. MPP Lender Risk Account . The LRA was established by the Seattle Bank for each MPP master commitment to cover losses not anticipated to be paid by homeowner's equity or PMI. At June 30, 2015, the Bank determined the amount of LRA to be immaterial. As such, it did not factor LRA into its estimate of the allowance for loan losses. Allowance for Credit Losses on Conventional Mortgage Loans The following table presents a rollforward of the allowance for credit losses on the Bank's conventional mortgage loan portfolio (dollars in thousands): MPF MPP Total Balance, March 31, 2015 $ 1,100 $ — $ 1,100 Charge-offs (572 ) (1 ) (573 ) Recoveries 86 — 86 Provision (reversal) for credit losses 288 195 483 Balance, June 30, 2015 $ 902 $ 194 $ 1,096 Balance, March 31, 2014 $ 7,400 $ — $ 7,400 Charge-offs (200 ) — (200 ) Provision (reversal) for credit losses — — — Balance, June 30, 2014 $ 7,200 $ — $ 7,200 Balance, December 31, 2014 $ 4,900 $ — $ 4,900 Charge-offs (4,915 ) (1 ) (4,916 ) Recoveries 214 — 214 Provision (reversal) for credit losses 703 195 898 Balance, June 30, 2015 $ 902 $ 194 $ 1,096 Balance, December 31, 2013 $ 8,000 $ — $ 8,000 Charge-offs (466 ) — (466 ) Provision (reversal) for credit losses (334 ) — (334 ) Balance, June 30, 2014 $ 7,200 $ — $ 7,200 The following table summarizes the allowance for credit losses and recorded investment of the Bank's conventional mortgage loan portfolio by impairment methodology (dollars in thousands): MPF MPP Total Allowance for credit losses, June 30, 2015 Collectively evaluated for impairment $ 902 $ 194 $ 1,096 Individually evaluated for impairment — — — Total allowance for credit losses $ 902 $ 194 $ 1,096 Allowance for credit losses, December 31, 2014 Collectively evaluated for impairment $ 1,500 $ — $ 1,500 Individually evaluated for impairment 3,400 — 3,400 Total allowance for credit losses $ 4,900 $ — $ 4,900 Recorded investment, June 30, 2015 1 Collectively evaluated for impairment $ 5,839,892 $ 511,346 $ 6,351,238 Individually evaluated for impairment, with or without a related allowance 42,902 34,167 77,069 Total recorded investment $ 5,882,794 $ 545,513 $ 6,428,307 Recorded investment, December 31, 2014 1 Collectively evaluated for impairment $ 5,966,025 $ — $ 5,966,025 Individually evaluated for impairment, with or without a related allowance 50,151 — 50,151 Total recorded investment $ 6,016,176 $ — $ 6,016,176 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. Credit Quality Indicators Key credit quality indicators for mortgage loans include the migration of past due loans, loans in process of foreclosure, and non-accrual loans. The tables below summarize the Bank's key credit quality indicators for mortgage loans (dollars in thousands): June 30, 2015 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 60,125 $ 1,522 $ 13,893 $ 5,493 $ 81,033 Past due 60 - 89 days 17,477 753 6,910 1,874 27,014 Past due 90 - 179 days 12,730 908 3,961 1,167 18,766 Past due 180 days or more 32,752 4,063 19,049 3,630 59,494 Total past due mortgage loans 123,084 7,246 43,813 12,164 186,307 Total current mortgage loans 5,759,710 570,800 501,700 47,304 6,879,514 Total recorded investment of mortgage loans 1 $ 5,882,794 $ 578,046 $ 545,513 $ 59,468 $ 7,065,821 In process of foreclosure (included above) 2 $ 23,495 $ 1,936 $ 10,382 $ — $ 35,813 Serious delinquency rate 3 0.8 % 0.9 % 4.2 % 8.1 % 1.1 % Past due 90 days or more and still accruing interest 4 $ — $ 4,971 $ — $ 4,797 $ 9,768 Non-accrual mortgage loans 5 $ 49,615 $ — $ 36,128 $ — $ 85,743 December 31, 2014 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 70,646 $ 20,279 $ — $ — $ 90,925 Past due 60 - 89 days 22,000 7,036 — — 29,036 Past due 90 - 179 days 16,355 4,644 — — 20,999 Past due 180 days or more 38,157 6,155 — — 44,312 Total past due mortgage loans 147,158 38,114 — — 185,272 Total current mortgage loans 5,869,018 547,686 — — 6,416,704 Total recorded investment of mortgage loans 1 $ 6,016,176 $ 585,800 $ — $ — $ 6,601,976 In process of foreclosure (included above) 2 $ 26,715 $ 4,111 $ — $ — $ 30,826 Serious delinquency rate 3 0.9 % 1.8 % — % — % 1.0 % Past due 90 days or more and still accruing interest 4 $ — $ 10,799 $ — $ — $ 10,799 Non-accrual mortgage loans 5 $ 58,832 $ — $ — $ — $ 58,832 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their payment status. 3 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment. 4 Represents government-insured mortgage loans that are 90 days or more past due. 5 Represents conventional mortgage loans that are 90 days or more past due and TDRs. Individually Evaluated Impaired Loans As previously described, the Bank evaluates certain conventional mortgage loans for impairment individually. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The following table summarizes the recorded investment and related allowance of the Bank's individually evaluated impaired loans (dollars in thousands): June 30, 2015 December 31, 2014 Recorded Investment Related Allowance 1 Recorded Investment Related Allowance Impaired loans with an allowance Conventional MPF Loans $ — $ — $ 19,342 $ 3,400 Conventional MPP Loans — — — — Impaired loans without an allowance Conventional MPF Loans 42,902 — 30,809 — Conventional MPP Loans 34,167 — — — Total Conventional MPF Loans $ 42,902 $ — $ 50,151 $ 3,400 Conventional MPP Loans $ 34,167 $ — $ — $ — 1 Beginning January 1, 2015, the Bank began to charge-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral for all collateral-dependent mortgage loans. As such, those loans no longer have an associated allowance. The Bank did no t recognize any interest income on impaired loans during the three and six months ended June 30, 2015 and 2014 . The following table summarizes the average recorded investment of the Bank's individually evaluated impaired loans (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Impaired loans with an allowance Conventional MPF Loans $ — $ 23,186 $ — $ 21,258 Conventional MPP Loans — — — — Impaired loans without an allowance Conventional MPF Loans 44,187 33,179 46,526 26,118 Conventional MPP Loans 11,389 — 5,695 — Total Conventional MPF Loans $ 44,187 $ 56,365 $ 46,526 $ 47,376 Conventional MPP Loans $ 11,389 $ — $ 5,695 $ — Real Estate Owned At June 30, 2015 and December 31, 2014 , the Bank had $9.7 million and $8.9 million of REO recorded as a component of "Other assets" in the Statements of Condition. Term Securities Purchased Under Agreements to Resell Term securities purchased under agreements to resell are considered collateralized financing agreements and represent short-term investments. The terms of these investments are structured such that if the market value of the underlying securities decreases below the market value required as collateral, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash. Otherwise, the dollar value of the resale agreement will decrease accordingly. If an agreement to resell is deemed to be impaired, the difference between the fair value of the collateral and the amortized cost of the agreement will be charged to earnings to establish an allowance for credit losses. Based upon the collateral held as security, the Bank determined that no allowance for credit losses was needed for its term securities purchased under agreements to resell at June 30, 2015 and December 31, 2014 . Off-Balance Sheet Credit Exposures At June 30, 2015 and December 31, 2014 , the Bank did not record a liability to reflect an allowance for credit losses for off-balance sheet credit exposures. For additional information on the Bank's off-balance sheet credit exposures, see "Note 15 — Commitments and Contingencies." |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Nature of Business Activity The Bank is exposed to interest rate risk primarily from the effect of interest rate changes on its interest-earning assets and its related funding sources. The goal of the Bank's interest rate risk management strategy is not to eliminate interest rate risk, but to manage it within appropriate limits. To mitigate the risk of loss, the Bank has established policies and procedures, which include guidelines on the amount of exposure to interest rate changes it is willing to accept. The Bank enters into derivative contracts to manage the interest rate risk exposures inherent in its otherwise unhedged assets and funding positions. Finance Agency regulations and the Bank's Enterprise Risk Management Policy (ERMP) establish guidelines for derivatives, prohibit trading in or the speculative use of derivatives, and limit credit risk arising from derivatives. The most common ways in which the Bank uses derivatives are to: • reduce the interest rate sensitivity and repricing gaps of assets and liabilities; • preserve a favorable interest rate spread between the yield of an asset and the cost of the related liability. Without the use of derivatives, this interest rate spread could be reduced or eliminated when a change in the interest rate on the asset does not match a change in the interest rate on the liability; • mitigate the adverse earnings effects of the shortening or extension of certain assets and liabilities; • manage embedded options in assets and liabilities; and • reduce funding costs by combining a derivative with a consolidated obligation, as the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation. Application of Derivatives Derivative instruments are accounted for by the Bank in two ways: • as a fair value hedge of an associated financial instrument or firm commitment for those items qualifying under applicable accounting guidance; or • as an economic hedge to manage certain defined risks in its Statements of Condition. These hedges are primarily used to manage mismatches between the coupon features of the Bank's assets and liabilities and offset prepayment risk in certain assets. Derivative instruments are used by the Bank when they are considered to be a cost-effective alternative to achieve the Bank's financial and risk management objectives. The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies. The Bank transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty (bilateral derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Derivative Clearing Organization (cleared derivatives). Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. Types of Derivatives The Bank may use the following derivative instruments: • interest rate swaps; • options; • swaptions; • interest rate caps and floors; and • future/forward contracts. Types of Hedged Items The Bank documents at inception all fair value hedging relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities in the Statements of Condition or firm commitments. The Bank also formally assesses (both at the hedge's inception and at least quarterly) whether the derivatives it uses in hedging transactions have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives are expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. The Bank may have the following types of hedged items: • investment securities; • advances; • mortgage loans; • consolidated obligations; and • firm commitments. Financial Statement Effect and Additional Financial Information The notional amount of derivatives serves as a factor in determining periodic interest payments and cash flows received and paid. However, the notional amount of derivatives represents neither the actual amounts exchanged nor the overall exposure of the Bank to credit and market risk. The risks of derivatives can be measured meaningfully on a portfolio basis that takes into account the counterparties, the types of derivatives, the items being hedged, and any offsets between the derivatives and the items being hedged. The following table summarizes the Bank's notional amount and the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest (dollars in thousands): June 30, 2015 December 31, 2014 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value) Interest rate swaps $ 48,974,057 $ 172,130 $ 601,294 $ 38,703,467 $ 84,362 $ 459,437 Derivatives not designated as hedging instruments (economic) Interest rate swaps 9,647,965 33,489 60,427 1,012,577 11,714 51,260 Interest rate swaption 200,000 19 — — — — Forward settlement agreements (TBAs) 53,500 102 49 65,000 1 322 Mortgage delivery commitments 58,793 55 164 70,106 245 7 Total derivatives not designated as hedging instruments 9,960,258 33,665 60,640 1,147,683 11,960 51,589 Total derivatives before netting and collateral adjustments $ 58,934,315 205,795 661,934 $ 39,851,150 96,322 511,026 Netting adjustments and cash collateral 1 (92,258 ) (536,617 ) (16,210 ) (434,394 ) Total derivative assets and derivative liabilities $ 113,537 $ 125,317 $ 80,112 $ 76,632 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented in the Statements of Income (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments (fair value) Interest rate swaps $ 4,967 $ (12,244 ) $ 841 $ (18,705 ) Derivatives not designated as hedging instruments (economic) Interest rate swaps 29,586 (20,783 ) 8,370 (33,870 ) Interest rate swaption (89 ) — (89 ) — Forward settlement agreements (TBAs) 736 (2,390 ) (119 ) (2,920 ) Mortgage delivery commitments (734 ) 2,258 63 2,745 Net interest settlements (5,085 ) (5,717 ) (10,596 ) (9,210 ) Total net gains (losses) related to derivatives not designated as hedging instruments 24,414 (26,632 ) (2,371 ) (43,255 ) Net gains (losses) on derivatives and hedging activities $ 29,381 $ (38,876 ) $ (1,530 ) $ (61,960 ) The following tables summarize, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships, the net fair value hedge ineffectiveness, and the effect of those derivatives on the Bank's net interest income (dollars in thousands): For the Three Months Ended June 30, 2015 Hedged Item Type Gains (Losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 188,690 $ (186,715 ) $ 1,975 $ (36,418 ) Advances 65,927 (64,691 ) 1,236 (45,784 ) Consolidated obligation bonds (51,635 ) 53,391 1,756 30,756 Total $ 202,982 $ (198,015 ) $ 4,967 $ (51,446 ) For the Three Months Ended June 30, 2014 Hedged Item Type Gains (losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ (102,336 ) $ 89,222 $ (13,114 ) $ (28,660 ) Advances (11,973 ) 12,387 414 (40,578 ) Consolidated obligation bonds 33,039 (32,583 ) 456 15,673 Total $ (81,270 ) $ 69,026 $ (12,244 ) $ (53,565 ) For the Six Months Ended June 30, 2015 Hedged Item Type Gains (losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 80,147 $ (83,166 ) $ (3,019 ) $ (67,913 ) Advances 32,551 (31,019 ) 1,532 (85,924 ) Consolidated obligation bonds (2,932 ) 5,260 2,328 56,512 Total $ 109,766 $ (108,925 ) $ 841 $ (97,325 ) For the Six Months Ended June 30, 2014 Hedged Item Type Gains (Losses) on Derivatives Gains (losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ (190,269 ) $ 169,803 $ (20,466 ) $ (53,373 ) Advances 1,227 (380 ) 847 (80,872 ) Consolidated obligation bonds 48,167 (47,253 ) 914 26,924 Total $ (140,875 ) $ 122,170 $ (18,705 ) $ (107,321 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships that are included in the interest income or interest expense line item of the respective hedged item type. Excludes the amortization of the financing element of off-market derivatives that is included in the interest income or interest expense line item of the respective hedged item type. This amortization totaled $2.9 million for both the three and six months ended June 30, 2015. In 2014, the Bank did not record any amortization for off-market derivatives. Managing Credit Risk on Derivatives The Bank is subject to credit risk due to the risk of nonperformance by counterparties to its derivative contracts. The Bank manages credit risk through credit analyses, collateral requirements, and adherence to the requirements set forth in the Bank's policies, U.S. Commodity Futures Trading Commission regulations, and Finance Agency regulations. For bilateral derivatives, the degree of credit risk depends on the extent to which master netting arrangements are included in these contracts to mitigate the risk. The Bank requires collateral agreements with collateral delivery thresholds on the majority of its bilateral derivatives. For cleared derivatives, the Clearinghouse is the Bank's counterparty. The Clearinghouse notifies the clearing agent of the required initial and variation margin and the clearing agent notifies the Bank of the required initial and variation margin. The requirement that the Bank post initial and variation margin through the clearing agent, to the Clearinghouse, exposes the Bank to institutional credit risk if the clearing agent or the Clearinghouse fails to meet its obligations. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily through a clearing agent for changes in the fair value of cleared derivatives. The Bank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and has determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default, including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or the clearing agent, or both. Based on this analysis, the Bank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse. A majority of the Bank's bilateral derivative contracts contain provisions that require the Bank to post additional collateral with its counterparties if there is deterioration in the Bank's credit rating. If the Bank's credit rating is lowered by an NRSRO, the Bank may be required to deliver additional collateral on bilateral derivative instruments in net liability positions. The aggregate fair value of all bilateral derivative instruments with credit-risk related contingent features that were in a net liability position (before cash collateral and related accrued interest) at June 30, 2015 was $281.1 million , for which the Bank posted collateral of $157.0 million in the normal course of business. If the Bank's credit rating had been lowered from its current rating to the next lower rating that would have triggered additional collateral to be delivered, the Bank would have been required to deliver an additional $98.3 million of collateral to its bilateral derivative counterparties at June 30, 2015 . For cleared derivatives, the Clearinghouse determines initial margin requirements and generally credit ratings are not factored into the initial margin. However, clearing agents may require additional initial margin to be posted based on credit considerations, including but not limited to, credit rating downgrades. The Bank was not required to post additional initial margin by its clearing agents, based on credit considerations, at June 30, 2015 . Offsetting of Derivative Assets and Derivative Liabilities The Bank presents derivative instruments, related cash collateral, including initial and variation margin, received or pledged, and associated accrued interest on a net basis by clearing agent and/or by counterparty when it has met the netting requirements. The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements, including the related collateral received from or pledged to counterparties (dollars in thousands): June 30, 2015 December 31, 2014 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Bilateral derivatives $ 156,522 $ 437,362 $ 59,574 $ 316,472 Cleared derivatives 49,218 224,408 36,503 194,547 Total gross recognized amount 205,740 661,770 96,077 511,019 Gross amounts of netting adjustments and cash collateral Bilateral derivatives (155,185 ) (312,209 ) (56,327 ) (239,847 ) Cleared derivatives 62,927 (224,408 ) 40,117 (194,547 ) Total gross amounts of netting adjustments and cash collateral (92,258 ) (536,617 ) (16,210 ) (434,394 ) Net amounts after netting adjustments and cash collateral Bilateral derivatives 1,337 125,153 3,247 76,625 Cleared derivatives 112,145 — 76,620 — Total net amounts after netting adjustments and cash collateral 113,482 125,153 79,867 76,625 Bilateral derivatives instruments not meeting netting requirements 1 55 164 245 7 Total derivative assets and derivative liabilities Bilateral derivatives 1,392 125,317 3,492 76,632 Cleared derivatives 112,145 — 76,620 — Total derivative assets and total derivative liabilities $ 113,537 $ 125,317 $ 80,112 $ 76,632 1 Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations
Consolidated Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Consolidated Obligations [Text Block] | Consolidated Obligations Consolidated obligations consist of bonds and discount notes. The FHLBanks issue consolidated obligations through the Office of Finance as their agent. Bonds are issued primarily to raise intermediate- and long-term funds for the Bank and are not subject to any statutory or regulatory limits on their maturity. Discount notes are issued primarily to raise short-term funds for the Bank and have original maturities of up to one year. Discount notes sell at or below their face amount and are redeemed at par value when they mature. Although the Bank is primarily liable for the portion of consolidated obligations issued on its behalf, it is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all FHLBank System consolidated obligations. The Finance Agency, at its discretion, may require any FHLBank to make principal and/or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that consolidated obligation. The Finance Agency has never exercised this discretionary authority. At June 30, 2015 and December 31, 2014 , the total par value of outstanding consolidated obligations of the FHLBanks was $852.8 billion and $847.2 billion . Discount Notes The following table summarizes the Bank's discount notes (dollars in thousands): June 30, 2015 December 31, 2014 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 70,235,635 0.09 $ 57,781,155 0.09 Discounts (8,658 ) (8,265 ) Fair value option adjustments 280 — Total $ 70,227,257 $ 57,772,890 Bonds The following table summarizes the Bank's bonds outstanding by contractual maturity (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 22,603,680 0.66 $ 18,392,675 0.59 Due after one year through two years 4,260,815 2.35 3,144,800 2.31 Due after two years through three years 3,684,815 1.96 2,731,455 3.39 Due after three years through four years 1,716,430 3.16 632,740 1.47 Due after four years through five years 3,518,740 2.79 1,883,450 2.02 Thereafter 5,713,840 3.06 5,382,770 3.06 Index amortizing notes 144,989 5.21 165,016 5.21 Total par value 41,643,309 1.58 32,332,906 1.53 Premiums 355,694 21,045 Discounts (42,207 ) (18,289 ) Fair value hedging adjustments 16,165 26,448 Fair value option adjustments 1,325 — Total $ 41,974,286 $ 32,362,110 The following table summarizes the Bank's bonds outstanding by call features (dollars in thousands): June 30, December 31, Noncallable or nonputable $ 35,529,659 $ 19,667,906 Callable 6,113,650 12,665,000 Total par value $ 41,643,309 $ 32,332,906 Extinguishment of Debt During both the three and six months ended June 30, 2015 , the Bank did not extinguish any debt. During both the three and six months ended June 30, 2014 , the Bank extinguished bonds with a total par value of $23.7 million and recognized losses of $2.7 million in other income (loss). |
Capital
Capital | 6 Months Ended |
Jun. 30, 2015 | |
Capital [Abstract] | |
Capital [Text Block] | Capital Capital Stock The Bank's capital stock has a par value of $100 per share, and all shares are issued, redeemed, or repurchased by the Bank at the stated par value. The Bank generally issues a single class of capital stock (Class B stock). The Bank has two subclasses of capital stock: membership and activity-based. Each member must purchase and hold membership capital stock in an amount equal to 0.12 percent of its total assets as of the preceding December 31 st , subject to a cap of $10.0 million and a floor of $10,000 . Each member is also required to purchase activity-based capital stock equal to 4.00 percent of its advances and mortgage loans outstanding in the Bank's Statements of Condition. All Class B stock issued is subject to a five year notice of redemption period. The capital stock requirements established in the Bank's Capital Plan are designed so that the Bank can remain adequately capitalized as member activity changes. The Bank's Board of Directors may make adjustments to the capital stock requirements within ranges established in the Capital Plan. The Bank amended its Capital Plan effective at the closing of the Merger to, among other things (i) authorize two classes of capital stock of the Bank, consisting of the Bank’s Class A stock (to accommodate former Seattle Bank Class A stock) and Class B stock; and (ii) authorize the distribution of additional capital from merger, either as a dividend or capital distribution, if and when declared by the Bank's Board of Directors. As a part of the Merger with the Seattle Bank, on the merger date, each share of Seattle Bank Class A stock outstanding was converted into one share of Des Moines Bank Class A stock and each share of Seattle Bank Class B stock outstanding was converted into one share of Des Moines Bank Class B stock. Immediately following the Merger, all shares of Des Moines Bank Class A stock and excess shares of Class B stock were repurchased and Des Moines Class B stock was issued as needed to meet the Bank's activity and membership stock requirements in accordance with the combined Bank's Capital Plan. No shares of Seattle Bank capital stock remain outstanding. The Merger did not have an impact on the total capital stock held by Des Moines Bank stockholders. Mandatorily Redeemable Capital Stock The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) when a member engages in any of the following activities: (i) submits a written notice to redeem all or part of its capital stock, (ii) submits a written notice of its intent to withdraw from membership, or (iii) terminates its membership voluntarily as a result of a consolidation into a non-member or into a member of another FHLBank. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. At June 30, 2015 and December 31, 2014 , the Bank's mandatorily redeemable capital stock totaled $118.7 million and $24.4 million . As a part of the Merger, on the merger date, the Bank assumed Seattle Bank's mandatorily redeemable capital stock. The Bank immediately redeemed all shares of this stock, with the exception of shares required to meet members' activity and membership stock requirements, and shares subject to the mandatory five year waiting period upon written notice of a member's intent to withdraw from membership in accordance with the combined Bank's Capital Plan. The following table summarizes changes in mandatorily redeemable capital stock (dollars in thousands): Balance, March 31, 2014 $ 8,479 Proceeds from issuance of mandatorily redeemable capital stock — Capital stock reclassified to (from) mandatorily redeemable capital stock, net 3,563 Repurchases/redemptions of mandatorily redeemable capital stock (3,468 ) Balance, June 30, 2014 $ 8,574 Balance, March 31, 2015 $ 24,191 Proceeds from issuance of mandatorily redeemable capital stock 317 Mandatorily redeemable capital stock assumed from merger 724,827 Capital stock reclassified to (from) mandatorily redeemable capital stock, net (90,172 ) Repurchases/redemptions of mandatorily redeemable capital stock (540,415 ) Balance, June 30, 2015 $ 118,748 Balance, December 31, 2013 $ 8,719 Proceeds from issuance of mandatorily redeemable capital stock 145 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 3,740 Repurchases/redemptions of mandatorily redeemable capital stock (4,030 ) Balance, June 30, 2014 $ 8,574 Balance, December 31, 2014 $ 24,367 Proceeds from issuance of mandatorily redeemable capital stock 467 Mandatorily redeemable capital stock assumed from merger 724,827 Capital stock reclassified to (from) mandatorily redeemable capital stock, net (89,079 ) Repurchases/redemptions of mandatorily redeemable capital stock (541,834 ) Balance, June 30, 2015 $ 118,748 Additional Capital from Merger The Bank recognized the net assets acquired from the Seattle Bank by recording the par value of capital stock issued in the transaction as capital stock, with the remaining portion of net assets acquired reflected in a new capital account captioned as “Additional capital from merger.” This balance primarily represents the amount of the Seattle Bank's closing retained earnings balance, adjusted for fair value and other purchase accounting adjustments, and identified intangible assets. The Bank treats this additional capital from merger as a component of total capital for regulatory capital purposes and, subject to the Bank's Board of Directors' discretion and applicable regulatory requirements, plans to distribute dividends to the Bank’s members from this account until the additional capital from merger balance is depleted. At June 30, 2015 , the Bank's additional capital from merger totaled $246.5 million . Restricted Retained Earnings The Bank entered into a Joint Capital Enhancement Agreement (JCE Agreement) with all of the other FHLBanks in February 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the Bank over time. It requires the Bank to allocate 20 percent of its quarterly net income to a separate restricted retained earnings account until the balance of that account equals at least one percent of its average balance of outstanding consolidated obligations for the previous quarter. The restricted retained earnings are not available to pay dividends. At June 30, 2015 and December 31, 2014 , the Bank's restricted retained earnings account totaled $86.1 million and $75.0 million . Accumulated Other Comprehensive Income The following table summarizes changes in accumulated other comprehensive income (AOCI) (dollars in thousands): Net unrealized gains (losses) on AFS securities (Note 5) Pension and postretirement benefits Total AOCI Balance, March 31, 2014 $ 108,723 $ (1,311 ) $ 107,412 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 26,509 — 26,509 Amortization - pension and postretirement — 45 45 Net current period other comprehensive income (loss) 26,509 45 26,554 Balance, June 30, 2014 $ 135,232 $ (1,266 ) $ 133,966 Balance, March 31, 2015 $ 133,467 $ (3,217 ) $ 130,250 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) (2,831 ) — (2,831 ) Amortization - pension and postretirement — 192 192 Net current period other comprehensive income (loss) (2,831 ) 192 (2,639 ) Balance, June 30, 2015 $ 130,636 $ (3,025 ) $ 127,611 Balance, December 31, 2013 $ 88,399 $ (1,355 ) $ 87,044 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 47,659 — 47,659 Reclassifications from other comprehensive income (loss) to net income Net realized (gains) losses on sale of securities (826 ) — (826 ) Amortization - pension and postretirement — 89 89 Net current period other comprehensive income (loss) 46,833 89 46,922 Balance, June 30, 2014 $ 135,232 $ (1,266 ) $ 133,966 Balance, December 31, 2014 $ 126,631 $ (3,409 ) $ 123,222 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 4,005 — 4,005 Amortization - pension and postretirement — 384 384 Net current period other comprehensive income (loss) 4,005 384 4,389 Balance, June 30, 2015 $ 130,636 $ (3,025 ) $ 127,611 Regulatory Capital Requirements The Bank is subject to three regulatory capital requirements: • Risk-based capital . The Bank must maintain at all times permanent capital greater than or equal to the sum of its credit, market, and operations risk capital requirements, all calculated in accordance with Finance Agency regulations. Only permanent capital, defined as Class B stock (including mandatorily redeemable capital stock), and retained earnings can satisfy this risk-based capital requirement. • Regulatory capital . The Bank is required to maintain a minimum four percent capital-to-asset ratio, which is defined as total regulatory capital divided by total assets. Total regulatory capital includes Class B stock (including mandatorily redeemable capital stock), additional capital from merger, and retained earnings. It does not include AOCI. • Leverage capital . The Bank is required to maintain a minimum five percent leverage ratio, which is defined as the sum of permanent capital weighted 1.5 times and nonpermanent capital weighted 1.0 times, divided by total assets. At June 30, 2015, nonpermanent capital included additional capital from merger. At December 31, 2014, the Bank did not have any nonpermanent capital. If the Bank's capital falls below the required levels, the Finance Agency has authority to take actions necessary to return it to levels that it deems to be consistent with safe and sound business operations. The following table shows the Bank's compliance with the Finance Agency's regulatory capital requirements (dollars in thousands): June 30, 2015 December 31, 2014 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 977,544 $ 4,729,078 $ 579,898 $ 4,213,293 Regulatory capital $ 4,750,308 $ 4,975,540 $ 3,820,958 $ 4,213,293 Leverage capital $ 5,937,885 $ 7,340,079 $ 4,776,197 $ 6,319,939 Capital-to-assets ratio 4.00 % 4.19 % 4.00 % 4.41 % Leverage ratio 5.00 % 6.18 % 5.00 % 6.62 % |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value [Text Block] | Fair Value Fair value amounts are determined by the Bank using available market information and reflect the Bank's best judgment of appropriate valuation methods. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability. The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels: • Level 1 Inputs. Quoted prices (unadjusted) for identical assets or liabilities in an active market that the Bank can access on the measurement date. • Level 2 Inputs. Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, (iii) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals, implied volatilities, and credit spreads), and (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. The Bank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. These reclassifications are reported as transfers in/out as of the beginning of the quarter in which the changes occur. There were no such transfers during the six months ended June 30, 2015 and 2014 . The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments at June 30, 2015 (dollars in thousands). The fair values do not represent an estimate of the overall market value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities. Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 482,886 $ 482,886 $ — $ — $ — $ 482,886 Interest-bearing deposits 1,978 — 1,197 — — 1,197 Securities purchased under agreements to resell 7,650,000 — 7,650,000 — — 7,650,000 Federal funds sold 3,000,000 — 3,000,000 — — 3,000,000 Trading securities 3,063,125 — 3,063,125 — — 3,063,125 Available-for-sale securities 22,227,516 — 22,227,516 — — 22,227,516 Held-to-maturity securities 6,811,226 — 6,851,820 22,211 — 6,874,031 Advances 68,181,304 — 68,281,349 — — 68,281,349 Mortgage loans held for portfolio, net 7,028,635 — 7,080,219 108,511 — 7,188,730 Accrued interest receivable 129,843 — 129,843 — — 129,843 Derivative assets, net 113,537 102 205,693 — (92,258 ) 113,537 Other assets 17,658 17,658 — — — 17,658 Liabilities Deposits (1,034,819 ) — (1,034,678 ) — — (1,034,678 ) Consolidated obligations Discount notes (70,227,257 ) — (70,229,794 ) — — (70,229,794 ) Bonds (41,974,286 ) — (42,458,372 ) — — (42,458,372 ) Total consolidated obligations (112,201,543 ) — (112,688,166 ) — — (112,688,166 ) Mandatorily redeemable capital stock (118,748 ) (118,748 ) — — — (118,748 ) Accrued interest payable (126,782 ) — (126,782 ) — — (126,782 ) Derivative liabilities, net (125,317 ) (49 ) (661,885 ) — 536,617 (125,317 ) Other Commitments to fund advances — — (1,664 ) — — (1,664 ) Standby letters of credit (2,940 ) — — (2,940 ) — (2,940 ) Standby bond purchase agreements — — 1,447 — — 1,447 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments at December 31, 2014 (dollars in thousands): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 495,197 $ 495,197 $ — $ — $ — $ 495,197 Interest-bearing deposits 1,942 — 1,921 — — 1,921 Securities purchased under agreements to resell 5,091,000 — 5,091,000 — — 5,091,000 Federal funds sold 1,860,000 — 1,860,000 — — 1,860,000 Trading securities 2,530,490 — 2,530,490 — — 2,530,490 Available-for-sale securities 12,383,792 — 12,383,792 — — 12,383,792 Held-to-maturity securities 1,211,460 — 1,274,597 24,451 — 1,299,048 Advances 65,168,274 — 65,293,461 — — 65,293,461 Mortgage loans held for portfolio, net 6,562,469 — 6,833,531 62,218 — 6,895,749 Accrued interest receivable 84,440 — 84,440 — — 84,440 Derivative assets, net 80,112 1 96,321 — (16,210 ) 80,112 Other assets 12,069 12,069 — — — 12,069 Liabilities Deposits (512,558 ) — (512,553 ) — — (512,553 ) Consolidated obligations Discount notes (57,772,890 ) — (57,773,924 ) — — (57,773,924 ) Bonds (32,362,110 ) — (32,958,871 ) — — (32,958,871 ) Total consolidated obligations (90,135,000 ) — (90,732,795 ) — — (90,732,795 ) Mandatorily redeemable capital stock (24,367 ) (24,367 ) — — — (24,367 ) Accrued interest payable (89,509 ) — (89,509 ) — — (89,509 ) Derivative liabilities, net (76,632 ) (322 ) (510,704 ) — 434,394 (76,632 ) Other Commitments to fund advances — — 194 — — 194 Standby letters of credit (1,978 ) — — (1,978 ) — (1,978 ) Standby bond purchase agreements — — 1,809 — — 1,809 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Summary of Valuation Techniques and Primary Inputs Cash and Due from Banks. The fair value equals the carrying value. Interest-Bearing Deposits. For interest-bearing deposits with less than three months to maturity, the fair value approximates the carrying value. For interest-bearing deposits with more than three months to maturity, the fair value is determined by calculating the present value of the expected future cash flows and reducing the amount for accrued interest receivable. Securities Purchased under Agreements to Resell. For overnight and term securities purchased under agreements to resell with less than three months to maturity, the fair value approximates the carrying value. For term securities purchased under agreements to resell with more than three months to maturity, the fair value is determined by calculating the present value of the expected future cash flows and reducing the amount for accrued interest receivable. The discount rates used in these calculations are the rates for securities with similar terms. Overnight Federal Funds Sold. The fair value approximates the carrying value. Investment Securities. The Bank's valuation technique incorporates prices from four designated third-party pricing vendors, when available. The pricing vendors generally use various proprietary models to price investment securities. The inputs to those models are derived from various sources including, but not limited to, benchmark securities and yields, reported trades, dealer estimates, issuer spreads, bids, offers, and other market-related data. Since many investment securities do not trade on a daily basis, the pricing vendors use available information, as applicable, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to determine the prices for individual securities. Each pricing vendor has an established process in place to challenge investment valuations, which facilitates resolution of questionable prices identified by the Bank. Annually, the Bank conducts reviews of the four pricing vendors to confirm and further augment its understanding of the vendors' pricing processes, methodologies, and control procedures for investment securities. The Bank's valuation technique for estimating the fair values of its investment securities first requires the establishment of a “median” price for each security. If four prices are received, the average of the middle two prices is the median price; if three prices are received, the middle price is the median price; if two prices are received, the average of the two prices is the median price; and if one price is received, it is the median price (and also the final price) subject to validation of outliers. All prices that are within a specified tolerance threshold of the median price are included in the cluster of prices that are averaged to compute a default price. All prices that are outside the threshold (outliers) are subject to further analysis (including, but not limited to, comparison to prices provided by an additional third-party valuation service, prices for similar securities, and/or non-binding dealer estimates) to determine if an outlier is a better estimate of fair value. If an outlier (or some other price identified in the analysis) is determined to be a better estimate of fair value, then the outlier (or the other price as appropriate) is used as the final price rather than the default price. Alternatively, if the analysis confirms that an outlier (or outliers) is (are) in fact not representative of fair value and the default price is the best estimate, then the default price is used as the final price. In all cases, the final price is used to determine the fair value of the security. In limited instances, when no prices are available from the four designated pricing services, the Bank obtains prices from dealers. As of June 30, 2015 and December 31, 2014 , two or more prices were received for substantially all of the Bank's investment securities and the final prices for substantially all of those securities were computed by averaging the prices received. Based on the Bank's review of the pricing methods and controls employed by the third-party pricing vendors and the relative lack of dispersion among the vendor prices, the Bank believes its final prices are representative of the prices that would have been received if the assets had been sold at the measurement date (i.e., exit prices) and further, that the fair value measurements are classified appropriately in the fair value hierarchy. As an additional step, the Bank reviews the final fair value estimates of its private-label MBS holdings quarterly for reasonableness using an implied yield test. The Bank calculated an implied yield for each of its private-label MBS using the estimated fair value derived from the process previously described and the security's projected cash flows from the Bank's OTTI process. These yields were compared to the market yield of comparable securities according to dealers and/or other third-party sources. This analysis did not indicate any significant variances. Therefore, the Bank determined that its fair value estimates for private-label MBS were appropriate at June 30, 2015 . Advances. The fair value of advances is determined by calculating the present value of the expected future cash flows and reducing the amount for accrued interest receivable. For advances elected under the fair value option, fair value includes accrued interest receivable. The discount rates used in these calculations are equivalent to the replacement advance rates for advances with similar terms. In accordance with Finance Agency regulations, advances generally require a prepayment fee sufficient to make the Bank financially indifferent to a borrower's decision to prepay the advances. Therefore, the fair value of advances assumes no prepayment risk. The Bank uses the following inputs for measuring the fair value of advances: • Consolidated Obligation Curve (CO Curve) . The Office of Finance constructs a market-observable curve referred to as the CO Curve. The CO Curve is constructed using the U.S. Treasury Curve as a base curve which is then adjusted by adding indicative spreads obtained largely from market-observable sources. These market indications are generally derived from pricing indications from dealers, historical pricing relationships, recent GSE trades, and secondary market activity. The Bank utilizes the CO Curve as its input to fair value for advances because it represents the Bank's cost of funds and is used to price advances. • Volatility assumption . Market-based expectations of future interest rate volatility implied from current market prices for similar options. • Spread assumption . Represents a spread adjustment to the CO Curve. Mortgage Loans Held for Portfolio. The fair value of mortgage loans held for portfolio is estimated based on quoted market prices of similar mortgage loans available in the market, if available, or modeled prices. The modeled prices start with prices for new MBS issued by GSEs or similar new mortgage loans. The prices are adjusted for credit risk, servicing spreads, seasoning, liquidity, and cash flow remittances. The prices for new MBS or similar new mortgage loans are highly dependent upon the underlying prepayment assumptions priced in the secondary market. Changes in expected prepayment rates often have a material effect on the fair value estimates. Impaired Mortgage Loans Held for Portfolio. The fair value of impaired mortgage loans held for portfolio is estimated by obtaining property values from an external pricing vendor. This vendor utilizes multiple pricing models that generally factor in market observable inputs, including actual sales transactions and home price indices. The Bank applies an adjustment to these values to capture certain limitations in the estimation process and takes into consideration estimated selling costs and expected PMI proceeds. In limited instances, the Bank may estimate the fair value of an impaired mortgage loan by calculating the present value of expected future cash flows discounted at the loan's effective interest rate. Real Estate Owned. The fair value of REO is estimated using a current property value or a broker price opinion adjusted for estimated selling costs and expected PMI proceeds. Accrued Interest Receivable and Payable . The fair value approximates the carrying value. Derivative Assets and Liabilities. The fair value of derivatives is generally estimated using standard valuation techniques such as discounted cash flow analyses and comparisons to similar instruments. In limited instances, fair value estimates for interest-rate related derivatives may be obtained using an external pricing model that utilizes observable market data. The Bank is subject to credit risk in derivatives transactions due to the potential nonperformance of its derivatives counterparties. The use of cleared derivatives is intended to mitigate credit risk exposure because a central counterparty is substituted for individual counterparties and collateral is posted daily, through a clearing agent, for changes in the fair value of cleared derivatives. To mitigate credit risk on bilateral derivatives, the Bank enters into master netting agreements with its counterparties as well as collateral agreements that provide for the delivery of collateral at specified levels tied to those counterparties' credit ratings. The Bank has evaluated the potential for the fair value of its derivatives to be affected by counterparty credit risk and its own credit risk and has determined that no adjustments were significant to the overall fair value measurements. The fair values of the Bank's derivative assets and derivative liabilities include accrued interest receivable/payable and cash collateral remitted to/received from counterparties. The estimated fair values of the accrued interest receivable/payable and cash collateral approximate their carrying values due to their short-term nature. The fair values of derivatives are netted by clearing agent and/or counterparty if the netting requirements are met. If these netted amounts are positive, they are classified as an asset and, if negative, they are classified as a liability. The Bank's discounted cash flow model utilizes market-observable inputs (inputs that are actively quoted and can be validated to external sources). The Bank uses the following inputs for measuring the fair value of interest-related derivatives: • Discount rate assumption . The Bank utilizes the Overnight-Index Swap (OIS) curve. • Forward interest rate assumption . The Bank utilizes the London Interbank Offered Rate (LIBOR) swap curve. • Volatility assumption . Market-based expectations of future interest rate volatility implied from current market prices for similar options. For forward settlement agreements (TBAs), the Bank utilizes TBA securities prices that are determined by coupon class and expected term until settlement. For mortgage delivery commitments, the Bank utilizes TBA securities prices adjusted for factors such as credit risk and servicing spreads. Other Assets . These represent assets held in Rabbi Trust accounts for the Bank's nonqualified retirement plans. These assets include cash equivalents and mutual funds, both of which are carried at estimated fair value based on quoted market prices as of the last business day of the reporting period. Deposits. For deposits with three months or less to maturity, the fair value approximates the carrying value. For deposits with more than three months to maturity, the fair value is determined by calculating the present value of the expected future cash flows and reducing the amount for accrued interest payable. The discount rates used in these calculations are the cost of deposits with similar terms. Consolidated Obligations. The fair value of consolidated obligations is based on prices received from pricing vendors (consistent with the methodology for investment securities discussed above) or determined by calculating the present value of the expected future cash flows and reducing the amount for accrued interest payable. For consolidated obligations elected under the fair value option, fair value includes accrued interest payable. The discount rates used in these calculations are for consolidated obligations with similar terms. The Bank uses the CO Curve and a volatility assumption for measuring the fair value of these consolidated obligations. Mandatorily Redeemable Capital Stock. The fair value of capital stock subject to mandatory redemption is generally reported at par value. Fair value also includes an estimated dividend earned at the time of reclassification from equity to a liability (if applicable), until such amount is paid. Capital stock can only be acquired by members at par value and redeemed at par value. Capital stock is not publicly traded and no market mechanism exists for the exchange of stock outside the cooperative structure. Commitments to Fund Advances. The fair value of advance commitments is based on the present value of fees currently charged for similar agreements, taking into account the remaining terms of the agreement and the difference between current levels of interest rates and the committed rates. Standby Letters of Credit. The fair value of standby letters of credit is based on either the fees currently charged for similar agreements or the estimated cost to terminate the agreement or otherwise settle the obligation with the counterparty. Standby Bond Purchase Agreements . The fair value of standby bond purchase agreements is calculated using the present value of the expected future fees related to the agreements. The discount rates used in the calculations are based on municipal spreads over the U.S. Treasury Curve, which are comparable to discount rates used to value the underlying bonds. Upon purchase of any bonds under these agreements, the Bank estimates fair value using the "Investment Securities" fair value methodology. Subjectivity of Estimates . Estimates of the fair value of financial assets and liabilities using the methods previously described are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows, prepayment speed assumptions, expected interest rate volatility, possible distributions of future interest rates used to value options, and the selection of discount rates that appropriately reflect market and credit risks. The use of different assumptions could have a material effect on the fair value estimates. Fair Value on a Recurring Basis The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value in the Statements of Condition a t June 30, 2015 (dollar s in thousands): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 248,464 $ — $ — $ 248,464 GSE obligations — 2,080,172 — — 2,080,172 Other non-MBS — 275,160 — — 275,160 GSE multifamily MBS — 459,329 — — 459,329 Total trading securities — 3,063,125 — — 3,063,125 Available-for-sale securities Other U.S. obligations — 4,219,283 — — 4,219,283 GSE obligations — 2,392,033 — — 2,392,033 State or local housing agency obligations — 1,070,964 — — 1,070,964 Other non-MBS — 297,354 — — 297,354 Other U.S. obligations single-family MBS — 2,406,389 — — 2,406,389 GSE single-family MBS — 1,803,317 — — 1,803,317 GSE multifamily MBS — 10,038,176 — — 10,038,176 Total available-for-sale securities — 22,227,516 — — 22,227,516 Advances 2 — 66,570 — — 66,570 Derivative assets, net Interest-rate related — 205,638 — (92,211 ) 113,427 Forward settlement agreements (TBAs) 102 — — (47 ) 55 Mortgage delivery commitments — 55 — — 55 Total derivative assets, net 102 205,693 — (92,258 ) 113,537 Other assets 17,658 — — — 17,658 Total recurring assets at fair value $ 17,760 $ 25,562,904 $ — $ (92,258 ) $ 25,488,406 Liabilities Discount notes 2 $ — $ (5,248,971 ) $ — $ — $ (5,248,971 ) Bonds 2 — (1,976,325 ) — — (1,976,325 ) Derivative liabilities, net Interest-rate related — (661,721 ) — 536,569 (125,152 ) Forward settlement agreements (TBAs) (49 ) — — 48 (1 ) Mortgage delivery commitments — (164 ) — — (164 ) Total derivative liabilities, net (49 ) (661,885 ) — 536,617 (125,317 ) Total recurring liabilities at fair value $ (49 ) $ (7,887,181 ) $ — $ 536,617 $ (7,350,613 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. 2 Represents financial instruments recorded under the fair value option. The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value in the Statements of Condition at December 31, 2014 (dollars in thousands): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 256,267 $ — $ — $ 256,267 GSE obligations — 1,531,811 — — 1,531,811 Other non-MBS — 280,215 — — 280,215 GSE multifamily MBS — 462,197 — — 462,197 Total trading securities — 2,530,490 — — 2,530,490 Available-for-sale securities Other U.S. obligations — 163,569 — — 163,569 GSE obligations — 1,012,308 — — 1,012,308 State or local housing agency obligations — 36,348 — — 36,348 Other non-MBS — 183,702 — — 183,702 Other U.S. obligations single-family MBS — 1,975,691 — — 1,975,691 GSE single-family MBS — 2,008,907 — — 2,008,907 GSE multifamily MBS — 7,003,267 — — 7,003,267 Total available-for-sale securities — 12,383,792 — — 12,383,792 Derivative assets, net Interest-rate related — 96,076 — (16,209 ) 79,867 Forward settlement agreements (TBAs) 1 — — (1 ) — Mortgage delivery commitments — 245 — — 245 Total derivative assets, net 1 96,321 — (16,210 ) 80,112 Other assets 12,069 — — — 12,069 Total recurring assets at fair value $ 12,070 $ 15,010,603 $ — $ (16,210 ) $ 15,006,463 Liabilities Derivative liabilities, net Interest-rate related $ — $ (510,697 ) $ — $ 434,393 $ (76,304 ) Forward settlement agreements (TBAs) (322 ) — — 1 (321 ) Mortgage delivery commitments — (7 ) — — (7 ) Total derivative liabilities, net (322 ) (510,704 ) — 434,394 (76,632 ) Total recurring liabilities at fair value $ (322 ) $ (510,704 ) $ — $ 434,394 $ (76,632 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Fair Value on a Non-Recurring Basis The Bank measures certain impaired mortgage loans held for portfolio and REO at level 3 fair value on a non-recurring basis. These assets are subject to fair value adjustments in certain circumstances. In the case of impaired mortgage loans, the Bank estimates fair value based primarily on property values from an external pricing vendor. The Bank applies a 20 percent haircut on these values to capture certain limitations in the estimation process and takes into consideration estimated selling costs of 10 percent and expected PMI proceeds. In the case of REO, the Bank estimates fair value based on a current property value or a broker price opinion adjusted for estimated selling costs of 10 percent and expected PMI proceeds. The following table summarizes outstanding impaired mortgage loans held for portfolio and REO that were recorded at fair value as a result of a non-recurring change in fair value having been recorded in the period then ended (dollars in thousands): June 30, December 31, Impaired mortgage loans held for portfolio 1 $ 16,964 $ 15,942 Real estate owned 1 691 773 Total non-recurring assets 1 $ 17,655 $ 16,715 1 The fair value information presented for June 30, 2015 is as of the date the fair value adjustment was recorded during the six months ended June 30, 2015. Fair Value Option The fair value option provides an irrevocable option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value. It requires entities to display the fair value of those assets and liabilities for which it has chosen to use fair value on the face of the Statements of Condition. Fair value is used for both the initial and subsequent measurement of the designated assets, liabilities, and commitments, with the changes in fair value recognized in net income. The Bank elected the fair value option for certain advances, consolidated obligation discount notes, and consolidated obligation bonds that did not qualify for hedge accounting, primarily in an effort to mitigate the potential income statement volatility that can arise from economic hedging relationships in which the carrying value of the hedged item is not adjusted for changes in fair value. The following tables summarize the activity related to financial instruments for which the fair value option was elected. For the three months ended June 30, 2014, the Bank did not have any financial instruments for which the fair value option was elected (dollars in thousands): For the Three Months Ended June 30, 2015 Advances Discount Notes Bonds Balance, beginning of period $ — $ — $ — New financial instruments elected for fair value option 66,620 (5,248,239 ) (2,376,977 ) Maturities and terminations — — 400,000 Net gains (losses) on financial instruments held under fair value option (48 ) (280 ) (62 ) Change in accrued interest or unaccreted balance (2 ) (452 ) 714 Balance, end of period $ 66,570 $ (5,248,971 ) $ (1,976,325 ) For the Six Months Ended June 30, 2015 2014 Advances Discount Notes Bonds Bonds Balance, beginning of period $ — $ — $ — $ (50,033 ) New financial instruments elected for fair value option 66,620 (5,248,239 ) (2,376,977 ) — Maturities and terminations — — 400,000 50,000 Net gains (losses) on financial instruments held under fair value option (48 ) (280 ) (62 ) 2 Change in accrued interest or unaccreted balance (2 ) (452 ) 714 31 Balance, end of period $ 66,570 $ (5,248,971 ) $ (1,976,325 ) $ — For financial instruments recorded under the fair value option, the related contractual interest income, contractual interest expense, and the discount amortization on fair value option discount notes are recorded as part of net interest income in the Statements of Income. The remaining changes are recorded as “Net gains (losses) on financial instruments held at fair value” in the Statements of Income. At June 30, 2015 and December 31, 2014, the Bank determined no credit risk adjustments for nonperformance were necessary to the instruments recorded under the fair value option. The following table summarizes the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected. At December 31, 2014, the Bank did not have any financial instruments outstanding for which the fair value option was elected (dollars in thousands): June 30, 2015 Advances 1 Discount Notes Bonds Unpaid principal balance $ 66,475 $ 5,250,000 $ 1,975,000 Fair value 66,570 5,248,971 1,976,325 Fair value over unpaid principal balance $ 95 $ (1,029 ) $ 1,325 1 At June 30, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Joint and Several Liability . The FHLBanks have joint and several liability for all consolidated obligations issued. Accordingly, if an FHLBank were unable to repay any consolidated obligation for which it is the primary obligor, each of the other FHLBanks could be called upon by the Finance Agency to repay all or part of such obligations. No FHLBank has ever been asked or required to repay the principal or interest on any consolidated obligation on behalf of another FHLBank. A t June 30, 2015 and December 31, 2014 , the total par value of outstanding consolidated obligations issued on behalf of other FHLBanks for which the Bank is jointly and severally liable was approximately $740.9 billion and $757.1 billion . The following table summarizes additional off-balance sheet commitments for the Bank (dollars in thousands): June 30, 2015 December 31, 2014 Expire within one year Expire after one year Total Total Standby letters of credit $ 4,384,381 $ 71,461 $ 4,455,842 $ 4,411,783 Standby bond purchase agreements 248,148 283,161 531,309 557,282 Commitments to purchase mortgage loans 58,793 — 58,793 70,106 Commitments to issue bonds — — — 170,000 Commitments to issue discount notes 2,572,700 — 2,572,700 — Commitments to fund advances 14,000 81,000 95,000 14,000 Other commitments 86,580 — 86,580 86,580 Standby Letters of Credit . A standby letter of credit is a financing arrangement between the Bank and a member. Standby letters of credit are executed with members for a fee. If the Bank is required to make payment for a beneficiary's draw, the payment is withdrawn from the member's demand account. Any resulting overdraft is converted into a collateralized advance to the member. The original terms of standby letters of credit range from less than one month to 13 years, currently no later than 2020 . Unearned fees for standby letters of credit are recorded in “Other liabilities” in the Statements of Condition and amounted to $2.9 million and $2.0 million at June 30, 2015 and December 31, 2014 . The Bank monitors the creditworthiness of its standby letters of credit based on an evaluation of its borrowers. The Bank has established parameters for the measurement, review, classification, and monitoring of credit risk related to these standby letters of credit. Based on management's credit analyses and collateral requirements, the Bank does not deem it necessary to have any provision for credit losses on these standby letters of credit. All standby letters of credit are fully collateralized at the time of issuance. The estimated fair value of standby letters of credit at June 30, 2015 and December 31, 2014 is reported in “Note 14 — Fair Value.” Standby Bond Purchase Agreements . The Bank has entered into standby bond purchase agreements with state housing associates within its district whereby, for a fee, it agrees to serve as a standby liquidity provider if required, to purchase and hold the housing associate's bonds until the designated marketing agent can find a suitable investor or the housing associate repurchases the bonds according to a schedule established by the agreement. Each standby bond purchase agreement includes the provisions under which the Bank would be required to purchase the bonds. The standby bond purchase commitments entered into by the Bank have original expiration periods of up to seven years, currently no later than 2018 . At June 30, 2015 and December 31, 2014 , the Bank had standby bond purchase agreements with four housing associates. During the six months ended June 30, 2015 and 2014 , the Bank was not required to purchase any bonds under these agreements. For the three and six months ended June 30, 2015 , the Bank received fees for the guarantees that amounted to $0.3 million and $0.7 million . For the three and six months ended June 30, 2014 , the Bank received fees for the guarantees that amounted to $0.4 million and $0.9 million . The estimated fair value of standby bond purchase agreements at June 30, 2015 and December 31, 2014 is reported in " Note 14 — Fair Value.” Commitments to Purchase Mortgage Loans . The Bank enters into commitments that unconditionally obligate it to purchase mortgage loans from its members. Commitments are generally for periods not to exceed 45 days. These commitments are considered derivatives and their estimated fair value at June 30, 2015 and December 31, 2014 is reported in “Note 11 — Derivatives and Hedging Activities” as mortgage delivery commitments. Commitments to Issue Bonds and Discount Notes . At June 30, 2015 , the Bank had commitments to issue $2.6 billion of consolidated obligation discount notes. The Bank did not have any commitments to issue consolidated obligation bonds at June 30, 2015 . At December 31, 2014 , the Bank had commitments to issue $170.0 million of consolidated obligation bonds. The Bank did not have any commitments to issue discount notes at December 31, 2014 . Commitments to Fund Advances. The Bank enters into commitments that legally bind it to fund additional advances up to 24 months in the future. At June 30, 2015 and December 31, 2014 , the Bank had commitments to fund advances of $95.0 million and $14.0 million . Other Commitments . On December 30, 2013, the Bank entered into an agreement with the Iowa Finance Authority (IFA) to purchase up to $100.0 million of taxable multi-family mortgage revenue bonds. The agreement expires on June 30, 2016. As of June 30, 2015 , the Bank had a commitment to purchase $86.6 million of bonds under the IFA agreement. These bonds are classified as AFS in the Bank's Statements of Condition. As previously described in “Note 10 — Allowance for Credit Losses”, the FLA is a memorandum account used to track the Bank's potential loss exposure under each master commitment prior to the PFI's credit enhancement obligation. For absorbing certain losses in excess of the FLA, PFIs are paid a credit enhancement fee, a portion of which may be performance-based. To the extent the Bank experiences losses under the FLA, it may be able to recapture performance-based credit enhancement fees paid to the PFI to offset these losses. The FLA balance for all master commitments with a PFI credit enhancement obligation was $93.4 million and $92.2 million at June 30, 2015 and December 31, 2014. Legal Proceedings . As a result of the Merger, the Bank is currently involved in a number of legal proceedings initiated by the Seattle Bank against various entities relating to its purchases and subsequent impairment of certain private-label MBS. Although the Seattle Bank sold all private-label MBS during the first quarter of 2015, the Bank continues to be involved in these proceedings. After consultation with legal counsel, other than the private-label MBS Litigation, the Bank does not believe any legal proceedings to which it is a party could have a material impact on its financial condition, results of operations, or cash flows. The Bank records an accrual for loss contingency when it is probable that a loss has been incurred and the amount can be reasonably estimated. |
Activities with Stockholders
Activities with Stockholders | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Activities with Stockholders [Text Block] | Activities with Stockholders The Bank is a cooperative whose current members own nearly all of the outstanding capital stock of the Bank. Former members own the remaining capital stock to support business transactions still carried on the Bank's Statements of Condition. All stockholders, including current and former members, may receive dividends on their capital stock investment to the extent declared by the Bank's Board of Directors. Transactions with Directors' Financial Institutions In the normal course of business, the Bank extends credit to its members whose directors and officers serve as Bank directors (Directors' Financial Institutions). Finance Agency regulations require that transactions with Directors' Financial Institutions be made on the same terms and conditions as those with any other member. The following table summarizes the Bank's outstanding transactions with Directors' Financial Institutions (dollars in thousands): June 30, 2015 December 31, 2014 Amount % of Total Amount % of Total Advances $ 1,348,441 2.0 $ 822,027 1.3 Mortgage loans 138,918 2.0 206,957 3.2 Deposits 33,716 3.3 3,362 0.7 Capital stock 108,993 2.7 55,000 1.6 Business Concentrations The Bank considers itself to have business concentrations with stockholders owning 10 percent or more of its total capital stock outstanding (including mandatorily redeemable capital stock). At June 30, 2015 , the Bank had the following business concentrations with stockholders (dollars in thousands): Capital Stock Mortgage Interest Stockholder Amount % of Total Advances Loans Income 1 Wells Fargo Bank, N.A. $ 1,070,000 26.7 $ 26,500,000 $ — $ 45,459 Superior Guaranty Insurance Company 2 42,412 1.1 — 1,031,418 — Wells Fargo Bank Northwest, N.A. 2 2,178 — — 54,314 — Total $ 1,112,412 27.8 $ 26,500,000 $ 1,031,418 $ 45,459 1 Represents interest income earned on advances during the six months ended June 30, 2015 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 2 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. At December 31, 2014 , the Bank had the following business concentrations with stockholders (dollars in thousands): Capital Stock Mortgage Interest Stockholder Amount % of Total Advances Loans Income 1 Wells Fargo Bank, N.A. $ 1,370,000 39.2 $ 34,000,000 $ — $ 63,462 Superior Guaranty Insurance Company 2 47,866 1.4 — 1,173,522 — Total $ 1,417,866 40.6 $ 34,000,000 $ 1,173,522 $ 63,462 1 Represents interest income earned on advances during the year ended December 31, 2014 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not Superior Guaranty Insurance Company. 2 Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. |
Activities with Other FHLBanks
Activities with Other FHLBanks | 6 Months Ended |
Jun. 30, 2015 | |
Activities with Other FHLBanks [Abstract] | |
Activities with Other FHLBanks [Text Block] | Activities with Other FHLBanks MPF Mortgage Loans . The Bank pays a service fee to the FHLBank of Chicago (Chicago Bank) for its participation in the MPF program. This service fee expense is recorded in other expense. For the three months ended June 30, 2015 and 2014 , the Bank recorded $0.8 million and $0.6 million in service fee expense to the Chicago Bank. For the six months ended June 30, 2015 and 2014 , the Bank recorded $1.5 million and $1.3 million in service fee expense to the Chicago Bank. Overnight Funds . The Bank may lend or borrow unsecured overnight funds to or from other FHLBanks. All such transactions are at current market rates. During the six months ended June 30, 2015 , the Bank did not lend funds to other FHLBanks. The following table summarizes loan activity to other FHLBanks during the six months ended June 30, 2014 (dollars in thousands): Other FHLBank Beginning Balance Advance Principal Repayment Ending Balance 2014 Chicago $ — $ 10,000 $ (10,000 ) $ — Topeka $ — $ 10,000 $ (10,000 ) $ — $ — $ 20,000 $ (20,000 ) $ — The following table summarizes borrowing activity from other FHLBanks during the six months ended June 30, 2015 and 2014 (dollars in thousands): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2015 Dallas $ — $ 200,000 $ (200,000 ) $ — $ — $ 200,000 $ (200,000 ) $ — 2014 Atlanta $ — $ 70,000 $ (70,000 ) $ — Chicago — 150,000 (150,000 ) — San Francisco — 150,000 (150,000 ) — $ — $ 370,000 $ (370,000 ) $ — At June 30, 2015 and 2014 , none of the previous transactions were outstanding on the Bank's Statements of Condition. The interest income and expense related to these transactions was immaterial. Merger In anticipation of the closing of the Merger, on Friday May 29, 2015, the Seattle Bank transferred $2.3 billion in cash to the Bank. The transfer was made to ensure the Bank had access to the Seattle Bank's cash balances on the first day of operations for the combined Bank, Monday June 1, 2015. The Bank recorded a liability for this cash and the Seattle Bank recorded a receivable for this cash in their respective Statements of Condition for May 31, 2015. These balances were eliminated to arrive at the combined opening Statement of Condition. For additional information on the Merger, refer to "Note 2 — Merger". |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in the Bank's 2014 financial statements and footnotes have been reclassified to conform to the presentation for the three and six months ended June 30, 2015 . |
Business Combinations Policy [Policy Text Block] | Business Combinations The Bank applies the acquisition method of accounting for business combinations of mutual entities. Under the acquisition method, the Bank recognizes the identifiable assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed, is recorded as goodwill. Consideration transferred includes (i) equity interests of the Bank (i.e. par value of capital stock exchanged on a one-for-one basis for Seattle capital stock outstanding) and (ii) member interests in the Bank (i.e. the post-merger interest of Seattle members in the Bank, including a proportionate interest in the liquidation value of the Bank). Consideration transferred is recognized by recording the par value of capital stock issued in the transaction as capital stock, with the remaining portion being reflected in a new capital account captioned as “Additional capital from merger.” Acquisition-related costs are expensed as incurred. |
Other Than Temporary Impairment, Policy [Policy Text Block] | The Bank evaluates its individual AFS and HTM securities in an unrealized loss position for other-than-temporary impairment (OTTI) on a quarterly basis. As part of its evaluation of securities for OTTI, the Bank considers its intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, the Bank will recognize an OTTI charge to earnings equal to the entire difference between the security's amortized cost basis and its fair value at the reporting date. For securities in an unrealized loss position that meet neither of these conditions, the Bank performs analyses to determine if any of these securities are other-than-temporarily impaired. |
Advance Prepayment Fees, Policy [Policy Text Block] | Prepayment Fees The Bank generally charges a prepayment fee for advances that a borrower elects to terminate prior to the stated maturity or outside of a predetermined call or put date. The fees charged are priced to make the Bank financially indifferent to the prepayment of the advance. For certain advances with symmetrical prepayment features, the Bank may charge the borrower a prepayment fee or pay the borrower a prepayment credit, depending on certain circumstances, such as movements in interest rates, when the advance is prepaid. Prepayment fees and credits are recorded net of fair value hedging adjustments in the Statements of Income. |
Loan and leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | The Bank utilizes an allowance for credit losses to reserve for estimated losses in its conventional MPF mortgage loan portfolio at the balance sheet date. The measurement of the Bank's MPF allowance for credit losses is determined by (i) reviewing similar conventional mortgage loans for impairment on a collective basis, (ii) reviewing conventional mortgage loans for impairment on an individual basis, (iii) estimating additional credit losses in the conventional mortgage loan portfolio, (iv) considering the recapture of performance-based credit enhancement fees from the PFI, if available, and (v) considering the credit enhancement obligation of the PFI, if estimated losses exceed the FLA. The Bank established an allowance for credit losses to reserve for estimated losses in its conventional MPP mortgage loan portfolio at the balance sheet date. The establishment of the Bank's MPP allowance for credit losses was determined by (i) reviewing similar conventional mortgage loans for impairment on a collective basis, (ii) reviewing conventional mortgage loans for impairment on an individual basis, (iii) estimating additional credit losses in the conventional mortgage loan portfolio, and (iv) considering the LRA if estimated losses exceed the losses not paid by homeowner equity or PMI. Collectively Evaluated Conventional Mortgage Loans . The Bank collectively evaluates the majority of its conventional MPF and MPP mortgage loan portfolios for impairment and estimates an allowance for credit losses based upon factors that include, but are not limited to, (i) loan delinquencies, (ii) loans migrating to collateral-dependent status, (iii) actual historical loss severities, and (iv) certain quantifiable economic factors, such as unemployment rates and home prices. The Bank utilizes a roll-rate methodology when estimating its allowance for credit losses. This methodology projects loans migrating to collateral-dependent status based on historical average rates of delinquency. The Bank then applies a loss severity factor to calculate an estimate of credit losses. Individually Identified Conventional Mortgage Loans . The Bank individually evaluates certain MPF and MPP conventional mortgage loans, including TDRs and collateral-dependent loans, for impairment. The Bank's TDRs include loans granted under its temporary loan modification plan and loans discharged under Chapter 7 bankruptcy that have not been reaffirmed by the borrower. The Bank generally measures impairment of TDRs based on the present value of expected future cash flows discounted at the loan's effective interest rate. Collateral-dependent loans are loans in which repayment is expected to be provided solely by the sale of the underlying collateral. The Bank's collateral-dependent loans include loans in process of foreclosure, loans 180 days or more past due, and bankruptcy loans and TDRs 60 days or more past due. The Bank measures impairment of collateral-dependent loans based on the estimated fair value of the underlying collateral, which is determined using property values, less selling costs and expected proceeds from PMI. A charge-off is recorded if it is estimated that the recorded investment in a loan will not be recovered. The Bank evaluates whether to record a charge-off based upon the occurrence of a confirming event. Prior to January 1, 2015, charge-offs generally were recorded at the time a mortgage loan was transferred to REO. Beginning January 1, 2015, the Bank began to also charge-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral for all collateral-dependent mortgage loans. This change did not have a material effect on the Bank's financial condition or results of operations. Estimating Additional Credit Loss in the MPF and MPP Conventional Mortgage Loan Portfolios . The Bank may make adjustments for certain limitations in its estimation of credit losses. These adjustments recognize the imprecise nature of an estimate and represents a subjective management judgment that is intended to cover losses resulting from other factors that may not be captured in the methodology previously described at the balance sheet date. MPF Performance-Based Credit Enhancement Fees. When reserving for estimated credit losses, the Bank may take into consideration performance-based credit enhancement fees available for recapture from the PFIs. Performance-based credit enhancement fees available for recapture, if any, consist of accrued performance-based credit enhancement fees to be paid to the PFIs and projected performance-based credit enhancement fees to be paid to the PFIs over the next 12 months, less any losses incurred that are in the process of recapture. Available performance-based credit enhancement fees cannot be shared between master commitments and, as a result, some master commitments may have sufficient performance-based credit enhancement fees to recapture losses while other master commitments may not. At June 30, 2015 and December 31, 2014 , the Bank determined that the amount of performance-based credit enhancement fees available for recapture from the PFIs at the master commitment level was immaterial. As such, it did not factor credit enhancement fees into its estimate of the allowance for credit losses. MPF PFI Credit Enhancement Obligation. When reserving for estimated credit losses, the Bank may take into consideration the PFI credit enhancement obligation, which is intended to absorb losses in excess of the FLA. At June 30, 2015 and December 31, 2014 , the Bank determined that the amount of credit enhancement obligation available to offset losses was immaterial. As such, it did not factor credit enhancement obligation into its estimate of the allowance for credit losses. MPP Lender Risk Account . The LRA was established by the Seattle Bank for each MPP master commitment to cover losses not anticipated to be paid by homeowner's equity or PMI. At June 30, 2015, the Bank determined the amount of LRA to be immaterial. As such, it did not factor LRA into its estimate of the allowance for loan losses. |
Impairment Financing Receivable, Policy [Policy Text Block] | A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. |
Derivatives, Policy [Policy Text Block] | The most common ways in which the Bank uses derivatives are to: • reduce the interest rate sensitivity and repricing gaps of assets and liabilities; • preserve a favorable interest rate spread between the yield of an asset and the cost of the related liability. Without the use of derivatives, this interest rate spread could be reduced or eliminated when a change in the interest rate on the asset does not match a change in the interest rate on the liability; • mitigate the adverse earnings effects of the shortening or extension of certain assets and liabilities; • manage embedded options in assets and liabilities; and • reduce funding costs by combining a derivative with a consolidated obligation, as the cost of a combined funding structure can be lower than the cost of a comparable consolidated obligation. Application of Derivatives Derivative instruments are accounted for by the Bank in two ways: • as a fair value hedge of an associated financial instrument or firm commitment for those items qualifying under applicable accounting guidance; or • as an economic hedge to manage certain defined risks in its Statements of Condition. These hedges are primarily used to manage mismatches between the coupon features of the Bank's assets and liabilities and offset prepayment risk in certain assets. Derivative instruments are used by the Bank when they are considered to be a cost-effective alternative to achieve the Bank's financial and risk management objectives. The Bank reevaluates its hedging strategies from time to time and may change the hedging techniques it uses or adopt new strategies. The Bank transacts most of its derivative transactions with large banks and major broker-dealers. Over-the-counter derivative transactions may be either executed directly with a counterparty (bilateral derivatives) or cleared through a Futures Commission Merchant (i.e., clearing agent) with a Derivative Clearing Organization (cleared derivatives). Once a derivative transaction has been accepted for clearing by a Derivative Clearing Organization (Clearinghouse), the derivative transaction is novated and the executing counterparty is replaced with the Clearinghouse. Types of Derivatives The Bank may use the following derivative instruments: • interest rate swaps; • options; • swaptions; • interest rate caps and floors; and • future/forward contracts. Types of Hedged Items The Bank documents at inception all fair value hedging relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities in the Statements of Condition or firm commitments. The Bank also formally assesses (both at the hedge's inception and at least quarterly) whether the derivatives it uses in hedging transactions have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives are expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. The Bank may have the following types of hedged items: • investment securities; • advances; • mortgage loans; • consolidated obligations; and • firm commitments. |
Derivatives, Methods of Accounting, Hedge Effectiveness [Policy Text Block] | The Bank documents at inception all fair value hedging relationships between derivatives designated as hedging instruments and hedged items, its risk management objectives and strategies for undertaking various hedge transactions, and its method of assessing effectiveness. This process includes linking all derivatives that are designated as fair value hedges to assets and liabilities in the Statements of Condition or firm commitments. The Bank also formally assesses (both at the hedge's inception and at least quarterly) whether the derivatives it uses in hedging transactions have been effective in offsetting changes in the fair value of hedged items attributable to the hedged risk and whether those derivatives are expected to remain effective in future periods. The Bank uses regression analyses to assess the effectiveness of its hedges. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | The Bank presents derivative instruments, related cash collateral, including initial and variation margin, received or pledged, and associated accrued interest on a net basis by clearing agent and/or by counterparty when it has met the netting requirements. |
Shares Subject to Mandatory Redemption, Changes in Redemption Value, Policy [Policy Text Block] | Mandatorily Redeemable Capital Stock The Bank reclassifies capital stock subject to redemption from equity to a liability (mandatorily redeemable capital stock) when a member engages in any of the following activities: (i) submits a written notice to redeem all or part of its capital stock, (ii) submits a written notice of its intent to withdraw from membership, or (iii) terminates its membership voluntarily as a result of a consolidation into a non-member or into a member of another FHLBank. Dividends on mandatorily redeemable capital stock are classified as interest expense in the Statements of Income. |
Restricted Retained Earnings, Policy [Policy Text Block] | Restricted Retained Earnings The Bank entered into a Joint Capital Enhancement Agreement (JCE Agreement) with all of the other FHLBanks in February 2011. The JCE Agreement, as amended, is intended to enhance the capital position of the Bank over time. It requires the Bank to allocate 20 percent of its quarterly net income to a separate restricted retained earnings account until the balance of that account equals at least one percent of its average balance of outstanding consolidated obligations for the previous quarter. The restricted retained earnings are not available to pay dividends. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value amounts are determined by the Bank using available market information and reflect the Bank's best judgment of appropriate valuation methods. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of market observability of the fair value measurement for the asset or liability. The fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels: • Level 1 Inputs. Quoted prices (unadjusted) for identical assets or liabilities in an active market that the Bank can access on the measurement date. • Level 2 Inputs. Inputs other than quoted prices within Level 1 that are observable inputs for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, (iii) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals, implied volatilities, and credit spreads), and (iv) market-corroborated inputs. • Level 3 Inputs. Unobservable inputs for the asset or liability. The Bank reviews its fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation inputs may result in a reclassification of certain assets or liabilities. These reclassifications are reported as transfers in/out as of the beginning of the quarter in which the changes occur. |
Merger (Tables)
Merger (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma summary has been prepared by adjusting the Bank's historical data to give effect to the Merger as if it had occurred on January 1, 2014 (dollars in thousands): Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Interest income $ 463,883 $ 443,140 Net income $ 59,634 $ 60,698 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table discloses the fair value of the consideration transferred and the total identifiable net assets acquired relating to the Merger (dollars in thousands): May 31, 2015 Fair value of consideration transferred: Fair value of shares issued $ 894,395 Member interests 246,462 Total fair value of consideration transferred $ 1,140,857 Assets acquired: Cash and due from banks $ 141 Interest-bearing deposits 202 Accounts receivable 1 2,341,059 Trading securities 550,473 Available-for-sale securities 9,825,223 Held-to-maturity securities 5,829,043 Advances 9,190,741 Mortgage loans held for portfolio 614,829 Accrued interest receivable 47,570 Premises, software, and equipment 3,239 Derivative assets 39,777 Other assets 22,412 Total assets acquired $ 28,464,709 Liabilities assumed: Deposits $ 370,814 Consolidated obligation discount notes 12,448,960 Consolidated obligation bonds 13,613,400 Mandatorily redeemable capital stock 724,827 Accrued interest payable 38,198 Affordable Housing Program payable 17,128 Derivative liabilities 74,110 Other liabilities 36,415 Total liabilities assumed 27,323,852 Net assets acquired $ 1,140,857 1 In anticipation of the closing of the Merger, on Friday, May 29, 2015, the Seattle Bank transferred $2.3 billion in cash to the Bank. The transfer was made to ensure the Bank had access to the Seattle Bank's cash balances on the first day of operations for the combined Bank, Monday, June 1, 2015. The Bank recorded a liability for this cash and the Seattle Bank recorded a receivable for this cash in their respective Statements of Condition for May 31, 2015. These balances were eliminated to arrive at the combined opening Statement of Condition. |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | The following table provides a summary of merger related expenses incurred during the three and six months ended June 30, 2015 (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Compensation and benefits Change in control and severance agreements $ 15,981 $ 15,981 Retention 334 334 Pension and postretirement benefits 1 10,200 10,200 Other compensation and benefit merger related expenses 386 550 Transaction and integration Contractual services 478 552 Professional fees 4,349 6,116 Lease termination 1,000 1,000 Other merger related expenses 402 619 Total $ 33,130 $ 35,352 1 Represents a discretionary contribution made to bring the Seattle qualified defined benefit pension plan to a similar funding status as the Des Moines qualified defined benefit pension plan. |
Trading Securities (Tables)
Trading Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Trading Securities [Table Text Block] | Trading securities were as follows (dollars in thousands): June 30, December 31, Non-mortgage-backed securities Other U.S. obligations 1 $ 248,464 $ 256,267 GSE obligations 2,080,172 1,531,811 Other 2 275,160 280,215 Total non-mortgage-backed securities 2,603,796 2,068,293 Mortgage-backed securities GSE multifamily 459,329 462,197 Total fair value $ 3,063,125 $ 2,530,490 1 Represents investment securities backed by the full faith and credit of the U.S. Government. 2 Consists of taxable municipal bonds. |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | Available-for-sale (AFS) securities we re as follows (dollars in thousands): June 30, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 4,202,560 $ 18,369 $ (1,646 ) $ 4,219,283 GSE obligations 2,369,442 24,078 (1,487 ) 2,392,033 State or local housing agency obligations 1,070,816 844 (696 ) 1,070,964 Other 3 290,070 7,289 (5 ) 297,354 Total non-mortgage-backed securities 7,932,888 50,580 (3,834 ) 7,979,634 Mortgage-backed securities Other U.S. obligations single-family 2 2,398,937 7,798 (346 ) 2,406,389 GSE single-family 1,787,189 16,225 (97 ) 1,803,317 GSE multifamily 9,977,866 70,846 (10,536 ) 10,038,176 Total mortgage-backed securities 14,163,992 94,869 (10,979 ) 14,247,882 Total $ 22,096,880 $ 145,449 $ (14,813 ) $ 22,227,516 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists of taxable municipal bonds and Private Export Funding Corporation bonds. AFS securities we re as follows (dollars in thousands): December 31, 2014 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities Other U.S. obligations 2 $ 158,864 $ 4,761 $ (56 ) $ 163,569 GSE obligations 993,681 22,682 (4,055 ) 1,012,308 State or local housing agency obligations 36,320 176 (148 ) 36,348 Other 3 176,277 7,425 — 183,702 Total non-mortgage-backed securities 1,365,142 35,044 (4,259 ) 1,395,927 Mortgage-backed securities Other U.S. obligations single-family 2 1,979,226 340 (3,875 ) 1,975,691 GSE single-family 1,991,471 17,586 (150 ) 2,008,907 GSE multifamily 6,921,322 85,334 (3,389 ) 7,003,267 Total mortgage-backed securities 10,892,019 103,260 (7,414 ) 10,987,865 Total $ 12,257,161 $ 138,304 $ (11,673 ) $ 12,383,792 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. 3 Consists of taxable municipal bonds. |
Available-for-sale Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Schedule of Unrealized Loss on Investments [ Table Text Block] | The following table summarizes AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities Other U.S. obligations $ 2,362,972 $ (1,646 ) $ — $ — $ 2,362,972 $ (1,646 ) GSE obligations 1,148,557 (1,487 ) — — 1,148,557 (1,487 ) State or local housing agency obligations 40,342 (445 ) 6,103 (251 ) 46,445 (696 ) Other 20,378 (5 ) — — 20,378 (5 ) Total non-mortgage-backed securities 3,572,249 (3,583 ) 6,103 (251 ) 3,578,352 (3,834 ) Mortgage-backed securities Other U.S. obligations single-family 223,745 (346 ) — — 223,745 (346 ) GSE single-family 106 (6 ) 93,329 (91 ) 93,435 (97 ) GSE multifamily 3,542,905 (9,526 ) 224,369 (1,010 ) 3,767,274 (10,536 ) Total mortgage-backed securities 3,766,756 (9,878 ) 317,698 (1,101 ) 4,084,454 (10,979 ) Total $ 7,339,005 $ (13,461 ) $ 323,801 $ (1,352 ) $ 7,662,806 $ (14,813 ) The following table summarizes AFS securities with unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Non-mortgage-backed securities Other U.S. obligations $ 34,993 $ (56 ) $ — $ — $ 34,993 $ (56 ) GSE obligations 230,965 (286 ) 109,669 (3,769 ) 340,634 (4,055 ) State or local housing agency obligations — — 6,527 (148 ) 6,527 (148 ) Total non-mortgage-backed securities 265,958 (342 ) 116,196 (3,917 ) 382,154 (4,259 ) Mortgage-backed securities Other U.S. obligations single-family 1,698,157 (3,875 ) — — 1,698,157 (3,875 ) GSE single-family — — 107,910 (150 ) 107,910 (150 ) GSE multifamily 1,331,057 (3,053 ) 74,806 (336 ) 1,405,863 (3,389 ) Total mortgage-backed securities 3,029,214 (6,928 ) 182,716 (486 ) 3,211,930 (7,414 ) Total $ 3,295,172 $ (7,270 ) $ 298,912 $ (4,403 ) $ 3,594,084 $ (11,673 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 152,687 $ 153,328 $ 66,673 $ 66,904 Due after one year through five years 1,404,466 1,423,764 898,464 915,574 Due after five years through ten years 3,975,235 3,990,895 247,821 255,333 Due after ten years 2,400,500 2,411,647 152,184 158,116 Total non-mortgage-backed securities 7,932,888 7,979,634 1,365,142 1,395,927 Mortgage-backed securities 14,163,992 14,247,882 10,892,019 10,987,865 Total $ 22,096,880 $ 22,227,516 $ 12,257,161 $ 12,383,792 |
Held-to-Maturity Securities (Ta
Held-to-Maturity Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |
Held-to-maturity Securities [Table Text Block] | Held-to-maturity (HTM) securities wer e as follows (dollars in thousands): June 30, 2015 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE obligations $ 403,082 $ 57,916 $ (2,430 ) $ 458,568 State or local housing agency obligations 989,990 6,831 (366 ) 996,455 Total non-mortgage-backed securities 1,393,072 64,747 (2,796 ) 1,455,023 Mortgage-backed securities Other U.S. obligations single-family 2 63,055 35 — 63,090 Other U.S. obligations commercial 2 7,065 — (3 ) 7,062 GSE single-family 5,325,241 10,758 (9,354 ) 5,326,645 Private-label residential 22,793 92 (674 ) 22,211 Total mortgage-backed securities 5,418,154 10,885 (10,031 ) 5,419,008 Total $ 6,811,226 $ 75,632 $ (12,827 ) $ 6,874,031 December 31, 2014 Amortized 1 Gross Gross Fair Value Non-mortgage-backed securities GSE obligations $ 305,126 $ 69,730 $ — $ 374,856 State or local housing agency obligations 59,963 6,042 — 66,005 Total non-mortgage-backed securities 365,089 75,772 — 440,861 Mortgage-backed securities Other U.S. obligations single-family 2 3,247 11 — 3,258 Other U.S. obligations commercial 2 1,415 — (1 ) 1,414 GSE single-family 816,793 12,302 (31 ) 829,064 Private-label residential 24,916 58 (523 ) 24,451 Total mortgage-backed securities 846,371 12,371 (555 ) 858,187 Total $ 1,211,460 $ 88,143 $ (555 ) $ 1,299,048 1 Amortized cost includes adjustments made to the cost basis of an investment for accretion and/or amortization. 2 Represents investment securities backed by the full faith and credit of the U.S. Government. |
Held-to-maturity Securities [Member] | |
Schedule of Held-to-maturity Securities [Line Items] | |
Schedule of Unrealized Loss on Investments [ Table Text Block] | The following tables summarize HTM securities with unrealized losses by major security type and the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands) June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Non-mortgage-backed securities GSE obligations $ 96,423 $ (2,430 ) $ — $ — $ 96,423 $ (2,430 ) State or local housing agency obligations 82,698 (366 ) — — 82,698 (366 ) Total non-mortgage-backed securities 179,121 (2,796 ) — — 179,121 (2,796 ) Mortgage-backed securities Other U.S. obligations commercial 6,174 (2 ) 498 (1 ) 6,672 (3 ) GSE single-family 1,853,208 (9,305 ) 34,659 (49 ) 1,887,867 (9,354 ) Private-label residential — — 14,566 (674 ) 14,566 (674 ) Total mortgage-backed securities 1,859,382 (9,307 ) 49,723 (724 ) 1,909,105 (10,031 ) Total $ 2,038,503 $ (12,103 ) $ 49,723 $ (724 ) $ 2,088,226 $ (12,827 ) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Mortgage-backed securities Other U.S. obligations commercial $ — $ — $ 248 $ (1 ) $ 248 $ (1 ) GSE single-family 1,436 (4 ) 38,607 (27 ) 40,043 (31 ) Private-label residential — — 16,243 (523 ) 16,243 (523 ) Total mortgage-backed securities $ 1,436 $ (4 ) $ 55,098 $ (551 ) $ 56,534 $ (555 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amortized Fair Value Amortized Fair Value Non-mortgage-backed securities Due in one year or less $ 16,520 $ 16,522 $ — $ — Due after one year through five years 138,164 138,180 — — Due after five years through ten years 141,263 141,384 — — Due after ten years 1,097,125 1,158,937 365,089 440,861 Total non-mortgage-backed securities 1,393,072 1,455,023 365,089 440,861 Mortgage-backed securities 5,418,154 5,419,008 846,371 858,187 Total $ 6,811,226 $ 6,874,031 $ 1,211,460 $ 1,299,048 |
Advances (Tables)
Advances (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Advances [Abstract] | |
Schedule of Federal Home Loan Bank Advances by Year of Contractual Maturity [Table Text Block] | The following table summarizes the Bank's advances outstanding by contractual maturity (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amount Weighted Amount Weighted Overdrawn demand deposit accounts $ 493 3.29 $ 66 3.28 Due in one year or less 14,064,225 0.65 7,997,497 0.66 Due after one year through two years 6,044,246 1.48 4,028,617 1.45 Due after two years through three years 5,235,971 2.33 4,437,280 1.68 Due after three years through four years 20,230,055 0.44 20,706,329 0.56 Due after four years through five years 14,395,365 0.45 21,447,326 0.33 Thereafter 7,872,608 1.26 6,335,093 0.98 Total par value 67,842,963 0.82 64,952,208 0.67 Premiums 161,946 137 Discounts (10,485 ) (6,388 ) Fair value hedging adjustments 186,785 222,317 Fair value option adjustments 95 — Total $ 68,181,304 $ 65,168,274 |
Schedule of Prepayment Fees on Advances [Table Text Block] | The following table summarizes the Bank's prepayment fees on advances, net (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Prepayment fee income $ 13,697 $ 16,836 $ 13,962 $ 17,167 Fair value hedging adjustments 1 (5,164 ) (13,618 ) (4,922 ) (13,783 ) Prepayment fees on advances, net $ 8,533 $ 3,218 $ 9,040 $ 3,384 1 Represents the amortization/accretion of fair value hedging adjustments on closed advance hedge relationships resulting from advance prepayments. |
Mortgage Loans Held for Portf32
Mortgage Loans Held for Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans Held for Portfolio [Table Text Block] | The following tables present information on the Bank's mortgage loans held for portfolio (dollars in thousands): June 30, 2015 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 4,980,194 $ 565,333 $ 5,545,527 Fixed rate, medium-term 1 single-family mortgage loans 1,368,237 18,780 1,387,017 Total unpaid principal balance 6,348,431 584,113 6,932,544 Premiums 79,316 20,272 99,588 Discounts (10,609 ) (1,851 ) (12,460 ) Basis adjustments from mortgage loan commitments 10,059 — 10,059 Total mortgage loans held for portfolio $ 6,427,197 $ 602,534 $ 7,029,731 December 31, 2014 MPF MPP Total Fixed rate, long-term single-family mortgage loans $ 5,024,393 $ — $ 5,024,393 Fixed rate, medium-term 1 single-family mortgage loans 1,462,014 — 1,462,014 Total unpaid principal balance 6,486,407 — 6,486,407 Premiums 82,206 — 82,206 Discounts (12,191 ) — (12,191 ) Basis adjustments from mortgage loan commitments 10,947 — 10,947 Total mortgage loans held for portfolio $ 6,567,369 $ — $ 6,567,369 1 Medium-term is defined as a term of 15 years or less. The following tables present the Bank's mortgage loans held for portfolio by collateral or guarantee type (dollars in thousands): June 30, 2015 MPF MPP Total Conventional mortgage loans $ 5,785,880 $ 528,179 $ 6,314,059 Government-insured mortgage loans 562,551 55,934 618,485 Total unpaid principal balance $ 6,348,431 $ 584,113 $ 6,932,544 December 31, 2014 MPF MPP Total Conventional mortgage loans $ 5,916,651 $ — $ 5,916,651 Government-insured mortgage loans 569,756 — 569,756 Total unpaid principal balance $ 6,486,407 $ — $ 6,486,407 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following table presents a rollforward of the allowance for credit losses on the Bank's conventional mortgage loan portfolio (dollars in thousands): MPF MPP Total Balance, March 31, 2015 $ 1,100 $ — $ 1,100 Charge-offs (572 ) (1 ) (573 ) Recoveries 86 — 86 Provision (reversal) for credit losses 288 195 483 Balance, June 30, 2015 $ 902 $ 194 $ 1,096 Balance, March 31, 2014 $ 7,400 $ — $ 7,400 Charge-offs (200 ) — (200 ) Provision (reversal) for credit losses — — — Balance, June 30, 2014 $ 7,200 $ — $ 7,200 Balance, December 31, 2014 $ 4,900 $ — $ 4,900 Charge-offs (4,915 ) (1 ) (4,916 ) Recoveries 214 — 214 Provision (reversal) for credit losses 703 195 898 Balance, June 30, 2015 $ 902 $ 194 $ 1,096 Balance, December 31, 2013 $ 8,000 $ — $ 8,000 Charge-offs (466 ) — (466 ) Provision (reversal) for credit losses (334 ) — (334 ) Balance, June 30, 2014 $ 7,200 $ — $ 7,200 |
Allowance for Credit Losses by Impairment Methodology [Table Text Block] | The following table summarizes the allowance for credit losses and recorded investment of the Bank's conventional mortgage loan portfolio by impairment methodology (dollars in thousands): MPF MPP Total Allowance for credit losses, June 30, 2015 Collectively evaluated for impairment $ 902 $ 194 $ 1,096 Individually evaluated for impairment — — — Total allowance for credit losses $ 902 $ 194 $ 1,096 Allowance for credit losses, December 31, 2014 Collectively evaluated for impairment $ 1,500 $ — $ 1,500 Individually evaluated for impairment 3,400 — 3,400 Total allowance for credit losses $ 4,900 $ — $ 4,900 Recorded investment, June 30, 2015 1 Collectively evaluated for impairment $ 5,839,892 $ 511,346 $ 6,351,238 Individually evaluated for impairment, with or without a related allowance 42,902 34,167 77,069 Total recorded investment $ 5,882,794 $ 545,513 $ 6,428,307 Recorded investment, December 31, 2014 1 Collectively evaluated for impairment $ 5,966,025 $ — $ 5,966,025 Individually evaluated for impairment, with or without a related allowance 50,151 — 50,151 Total recorded investment $ 6,016,176 $ — $ 6,016,176 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. |
Past Due Financing Receivables [Table Text Block] | The tables below summarize the Bank's key credit quality indicators for mortgage loans (dollars in thousands): June 30, 2015 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 60,125 $ 1,522 $ 13,893 $ 5,493 $ 81,033 Past due 60 - 89 days 17,477 753 6,910 1,874 27,014 Past due 90 - 179 days 12,730 908 3,961 1,167 18,766 Past due 180 days or more 32,752 4,063 19,049 3,630 59,494 Total past due mortgage loans 123,084 7,246 43,813 12,164 186,307 Total current mortgage loans 5,759,710 570,800 501,700 47,304 6,879,514 Total recorded investment of mortgage loans 1 $ 5,882,794 $ 578,046 $ 545,513 $ 59,468 $ 7,065,821 In process of foreclosure (included above) 2 $ 23,495 $ 1,936 $ 10,382 $ — $ 35,813 Serious delinquency rate 3 0.8 % 0.9 % 4.2 % 8.1 % 1.1 % Past due 90 days or more and still accruing interest 4 $ — $ 4,971 $ — $ 4,797 $ 9,768 Non-accrual mortgage loans 5 $ 49,615 $ — $ 36,128 $ — $ 85,743 December 31, 2014 MPF MPP Conventional Government Conventional Government Total Past due 30 - 59 days $ 70,646 $ 20,279 $ — $ — $ 90,925 Past due 60 - 89 days 22,000 7,036 — — 29,036 Past due 90 - 179 days 16,355 4,644 — — 20,999 Past due 180 days or more 38,157 6,155 — — 44,312 Total past due mortgage loans 147,158 38,114 — — 185,272 Total current mortgage loans 5,869,018 547,686 — — 6,416,704 Total recorded investment of mortgage loans 1 $ 6,016,176 $ 585,800 $ — $ — $ 6,601,976 In process of foreclosure (included above) 2 $ 26,715 $ 4,111 $ — $ — $ 30,826 Serious delinquency rate 3 0.9 % 1.8 % — % — % 1.0 % Past due 90 days or more and still accruing interest 4 $ — $ 10,799 $ — $ — $ 10,799 Non-accrual mortgage loans 5 $ 58,832 $ — $ — $ — $ 58,832 1 Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. 2 Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their payment status. 3 Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment. 4 Represents government-insured mortgage loans that are 90 days or more past due. 5 Represents conventional mortgage loans that are 90 days or more past due and TDRs. |
Individually Evaluated Impaired Loan Statistics by Product Class Level [Table Text Block] | The following table summarizes the recorded investment and related allowance of the Bank's individually evaluated impaired loans (dollars in thousands): June 30, 2015 December 31, 2014 Recorded Investment Related Allowance 1 Recorded Investment Related Allowance Impaired loans with an allowance Conventional MPF Loans $ — $ — $ 19,342 $ 3,400 Conventional MPP Loans — — — — Impaired loans without an allowance Conventional MPF Loans 42,902 — 30,809 — Conventional MPP Loans 34,167 — — — Total Conventional MPF Loans $ 42,902 $ — $ 50,151 $ 3,400 Conventional MPP Loans $ 34,167 $ — $ — $ — 1 Beginning January 1, 2015, the Bank began to charge-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral for all collateral-dependent mortgage loans. As such, those loans no longer have an associated allowance. |
Impaired Financing Receivables [Table Text Block] | The following table summarizes the average recorded investment of the Bank's individually evaluated impaired loans (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Impaired loans with an allowance Conventional MPF Loans $ — $ 23,186 $ — $ 21,258 Conventional MPP Loans — — — — Impaired loans without an allowance Conventional MPF Loans 44,187 33,179 46,526 26,118 Conventional MPP Loans 11,389 — 5,695 — Total Conventional MPF Loans $ 44,187 $ 56,365 $ 46,526 $ 47,376 Conventional MPP Loans $ 11,389 $ — $ 5,695 $ — |
Derivatives and Hedging Activ34
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the Bank's notional amount and the fair value of derivative instruments, including the effect of netting adjustments and cash collateral. For purposes of this disclosure, the derivative values include the fair value of derivatives and the related accrued interest (dollars in thousands): June 30, 2015 December 31, 2014 Notional Amount Derivative Assets Derivative Liabilities Notional Amount Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (fair value) Interest rate swaps $ 48,974,057 $ 172,130 $ 601,294 $ 38,703,467 $ 84,362 $ 459,437 Derivatives not designated as hedging instruments (economic) Interest rate swaps 9,647,965 33,489 60,427 1,012,577 11,714 51,260 Interest rate swaption 200,000 19 — — — — Forward settlement agreements (TBAs) 53,500 102 49 65,000 1 322 Mortgage delivery commitments 58,793 55 164 70,106 245 7 Total derivatives not designated as hedging instruments 9,960,258 33,665 60,640 1,147,683 11,960 51,589 Total derivatives before netting and collateral adjustments $ 58,934,315 205,795 661,934 $ 39,851,150 96,322 511,026 Netting adjustments and cash collateral 1 (92,258 ) (536,617 ) (16,210 ) (434,394 ) Total derivative assets and derivative liabilities $ 113,537 $ 125,317 $ 80,112 $ 76,632 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table summarizes the components of “Net gains (losses) on derivatives and hedging activities” as presented in the Statements of Income (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments (fair value) Interest rate swaps $ 4,967 $ (12,244 ) $ 841 $ (18,705 ) Derivatives not designated as hedging instruments (economic) Interest rate swaps 29,586 (20,783 ) 8,370 (33,870 ) Interest rate swaption (89 ) — (89 ) — Forward settlement agreements (TBAs) 736 (2,390 ) (119 ) (2,920 ) Mortgage delivery commitments (734 ) 2,258 63 2,745 Net interest settlements (5,085 ) (5,717 ) (10,596 ) (9,210 ) Total net gains (losses) related to derivatives not designated as hedging instruments 24,414 (26,632 ) (2,371 ) (43,255 ) Net gains (losses) on derivatives and hedging activities $ 29,381 $ (38,876 ) $ (1,530 ) $ (61,960 ) |
Schedule of Derivative Instruments By Type, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize, by type of hedged item, the gains (losses) on derivatives and the related hedged items in fair value hedging relationships, the net fair value hedge ineffectiveness, and the effect of those derivatives on the Bank's net interest income (dollars in thousands): For the Three Months Ended June 30, 2015 Hedged Item Type Gains (Losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 188,690 $ (186,715 ) $ 1,975 $ (36,418 ) Advances 65,927 (64,691 ) 1,236 (45,784 ) Consolidated obligation bonds (51,635 ) 53,391 1,756 30,756 Total $ 202,982 $ (198,015 ) $ 4,967 $ (51,446 ) For the Three Months Ended June 30, 2014 Hedged Item Type Gains (losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ (102,336 ) $ 89,222 $ (13,114 ) $ (28,660 ) Advances (11,973 ) 12,387 414 (40,578 ) Consolidated obligation bonds 33,039 (32,583 ) 456 15,673 Total $ (81,270 ) $ 69,026 $ (12,244 ) $ (53,565 ) For the Six Months Ended June 30, 2015 Hedged Item Type Gains (losses) on Derivatives Gains (Losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ 80,147 $ (83,166 ) $ (3,019 ) $ (67,913 ) Advances 32,551 (31,019 ) 1,532 (85,924 ) Consolidated obligation bonds (2,932 ) 5,260 2,328 56,512 Total $ 109,766 $ (108,925 ) $ 841 $ (97,325 ) For the Six Months Ended June 30, 2014 Hedged Item Type Gains (Losses) on Derivatives Gains (losses) on Hedged Items Net Fair Value Hedge Ineffectiveness Effect on Net Interest Income 1 Available-for-sale investments $ (190,269 ) $ 169,803 $ (20,466 ) $ (53,373 ) Advances 1,227 (380 ) 847 (80,872 ) Consolidated obligation bonds 48,167 (47,253 ) 914 26,924 Total $ (140,875 ) $ 122,170 $ (18,705 ) $ (107,321 ) 1 Represents the net interest settlements on derivatives in fair value hedge relationships that are included in the interest income or interest expense line item of the respective hedged item type. Excludes the amortization of the financing element of off-market derivatives that is included in the interest income or interest expense line item of the respective hedged item type. This amortization totaled $2.9 million for both the three and six months ended June 30, 2015. In 2014, the Bank did not record any amortization for off-market derivatives. |
Offsetting Assets and Liabilities [Table Text Block] | The following table presents the fair value of derivative instruments meeting or not meeting the netting requirements, including the related collateral received from or pledged to counterparties (dollars in thousands): June 30, 2015 December 31, 2014 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative instruments meeting netting requirements Gross recognized amount Bilateral derivatives $ 156,522 $ 437,362 $ 59,574 $ 316,472 Cleared derivatives 49,218 224,408 36,503 194,547 Total gross recognized amount 205,740 661,770 96,077 511,019 Gross amounts of netting adjustments and cash collateral Bilateral derivatives (155,185 ) (312,209 ) (56,327 ) (239,847 ) Cleared derivatives 62,927 (224,408 ) 40,117 (194,547 ) Total gross amounts of netting adjustments and cash collateral (92,258 ) (536,617 ) (16,210 ) (434,394 ) Net amounts after netting adjustments and cash collateral Bilateral derivatives 1,337 125,153 3,247 76,625 Cleared derivatives 112,145 — 76,620 — Total net amounts after netting adjustments and cash collateral 113,482 125,153 79,867 76,625 Bilateral derivatives instruments not meeting netting requirements 1 55 164 245 7 Total derivative assets and derivative liabilities Bilateral derivatives 1,392 125,317 3,492 76,632 Cleared derivatives 112,145 — 76,620 — Total derivative assets and total derivative liabilities $ 113,537 $ 125,317 $ 80,112 $ 76,632 1 Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations (Table
Consolidated Obligations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | The following table summarizes the Bank's discount notes (dollars in thousands): June 30, 2015 December 31, 2014 Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Par value $ 70,235,635 0.09 $ 57,781,155 0.09 Discounts (8,658 ) (8,265 ) Fair value option adjustments 280 — Total $ 70,227,257 $ 57,772,890 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the Bank's bonds outstanding by contractual maturity (dollars in thousands): June 30, 2015 December 31, 2014 Year of Contractual Maturity Amount Weighted Average Interest Rate Amount Weighted Average Interest Rate Due in one year or less $ 22,603,680 0.66 $ 18,392,675 0.59 Due after one year through two years 4,260,815 2.35 3,144,800 2.31 Due after two years through three years 3,684,815 1.96 2,731,455 3.39 Due after three years through four years 1,716,430 3.16 632,740 1.47 Due after four years through five years 3,518,740 2.79 1,883,450 2.02 Thereafter 5,713,840 3.06 5,382,770 3.06 Index amortizing notes 144,989 5.21 165,016 5.21 Total par value 41,643,309 1.58 32,332,906 1.53 Premiums 355,694 21,045 Discounts (42,207 ) (18,289 ) Fair value hedging adjustments 16,165 26,448 Fair value option adjustments 1,325 — Total $ 41,974,286 $ 32,362,110 |
Schedule of Long-term Debt by Call Feature [Table Text Block] | The following table summarizes the Bank's bonds outstanding by call features (dollars in thousands): June 30, December 31, Noncallable or nonputable $ 35,529,659 $ 19,667,906 Callable 6,113,650 12,665,000 Total par value $ 41,643,309 $ 32,332,906 |
Capital (Tables)
Capital (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Capital [Abstract] | |
Mandatorily Redeemable Capital Stock [Table Text Block] | The following table summarizes changes in mandatorily redeemable capital stock (dollars in thousands): Balance, March 31, 2014 $ 8,479 Proceeds from issuance of mandatorily redeemable capital stock — Capital stock reclassified to (from) mandatorily redeemable capital stock, net 3,563 Repurchases/redemptions of mandatorily redeemable capital stock (3,468 ) Balance, June 30, 2014 $ 8,574 Balance, March 31, 2015 $ 24,191 Proceeds from issuance of mandatorily redeemable capital stock 317 Mandatorily redeemable capital stock assumed from merger 724,827 Capital stock reclassified to (from) mandatorily redeemable capital stock, net (90,172 ) Repurchases/redemptions of mandatorily redeemable capital stock (540,415 ) Balance, June 30, 2015 $ 118,748 Balance, December 31, 2013 $ 8,719 Proceeds from issuance of mandatorily redeemable capital stock 145 Capital stock reclassified to (from) mandatorily redeemable capital stock, net 3,740 Repurchases/redemptions of mandatorily redeemable capital stock (4,030 ) Balance, June 30, 2014 $ 8,574 Balance, December 31, 2014 $ 24,367 Proceeds from issuance of mandatorily redeemable capital stock 467 Mandatorily redeemable capital stock assumed from merger 724,827 Capital stock reclassified to (from) mandatorily redeemable capital stock, net (89,079 ) Repurchases/redemptions of mandatorily redeemable capital stock (541,834 ) Balance, June 30, 2015 $ 118,748 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes changes in accumulated other comprehensive income (AOCI) (dollars in thousands): Net unrealized gains (losses) on AFS securities (Note 5) Pension and postretirement benefits Total AOCI Balance, March 31, 2014 $ 108,723 $ (1,311 ) $ 107,412 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 26,509 — 26,509 Amortization - pension and postretirement — 45 45 Net current period other comprehensive income (loss) 26,509 45 26,554 Balance, June 30, 2014 $ 135,232 $ (1,266 ) $ 133,966 Balance, March 31, 2015 $ 133,467 $ (3,217 ) $ 130,250 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) (2,831 ) — (2,831 ) Amortization - pension and postretirement — 192 192 Net current period other comprehensive income (loss) (2,831 ) 192 (2,639 ) Balance, June 30, 2015 $ 130,636 $ (3,025 ) $ 127,611 Balance, December 31, 2013 $ 88,399 $ (1,355 ) $ 87,044 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 47,659 — 47,659 Reclassifications from other comprehensive income (loss) to net income Net realized (gains) losses on sale of securities (826 ) — (826 ) Amortization - pension and postretirement — 89 89 Net current period other comprehensive income (loss) 46,833 89 46,922 Balance, June 30, 2014 $ 135,232 $ (1,266 ) $ 133,966 Balance, December 31, 2014 $ 126,631 $ (3,409 ) $ 123,222 Other comprehensive income (loss) before reclassifications Net unrealized gains (losses) 4,005 — 4,005 Amortization - pension and postretirement — 384 384 Net current period other comprehensive income (loss) 4,005 384 4,389 Balance, June 30, 2015 $ 130,636 $ (3,025 ) $ 127,611 |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The following table shows the Bank's compliance with the Finance Agency's regulatory capital requirements (dollars in thousands): June 30, 2015 December 31, 2014 Required Actual Required Actual Regulatory capital requirements Risk-based capital $ 977,544 $ 4,729,078 $ 579,898 $ 4,213,293 Regulatory capital $ 4,750,308 $ 4,975,540 $ 3,820,958 $ 4,213,293 Leverage capital $ 5,937,885 $ 7,340,079 $ 4,776,197 $ 6,319,939 Capital-to-assets ratio 4.00 % 4.19 % 4.00 % 4.41 % Leverage ratio 5.00 % 6.18 % 5.00 % 6.62 % |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments at June 30, 2015 (dollars in thousands). The fair values do not represent an estimate of the overall market value of the Bank as a going concern, which would take into account future business opportunities and the net profitability of assets and liabilities. Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 482,886 $ 482,886 $ — $ — $ — $ 482,886 Interest-bearing deposits 1,978 — 1,197 — — 1,197 Securities purchased under agreements to resell 7,650,000 — 7,650,000 — — 7,650,000 Federal funds sold 3,000,000 — 3,000,000 — — 3,000,000 Trading securities 3,063,125 — 3,063,125 — — 3,063,125 Available-for-sale securities 22,227,516 — 22,227,516 — — 22,227,516 Held-to-maturity securities 6,811,226 — 6,851,820 22,211 — 6,874,031 Advances 68,181,304 — 68,281,349 — — 68,281,349 Mortgage loans held for portfolio, net 7,028,635 — 7,080,219 108,511 — 7,188,730 Accrued interest receivable 129,843 — 129,843 — — 129,843 Derivative assets, net 113,537 102 205,693 — (92,258 ) 113,537 Other assets 17,658 17,658 — — — 17,658 Liabilities Deposits (1,034,819 ) — (1,034,678 ) — — (1,034,678 ) Consolidated obligations Discount notes (70,227,257 ) — (70,229,794 ) — — (70,229,794 ) Bonds (41,974,286 ) — (42,458,372 ) — — (42,458,372 ) Total consolidated obligations (112,201,543 ) — (112,688,166 ) — — (112,688,166 ) Mandatorily redeemable capital stock (118,748 ) (118,748 ) — — — (118,748 ) Accrued interest payable (126,782 ) — (126,782 ) — — (126,782 ) Derivative liabilities, net (125,317 ) (49 ) (661,885 ) — 536,617 (125,317 ) Other Commitments to fund advances — — (1,664 ) — — (1,664 ) Standby letters of credit (2,940 ) — — (2,940 ) — (2,940 ) Standby bond purchase agreements — — 1,447 — — 1,447 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. The following table summarizes the carrying value, fair value, and fair value hierarchy of the Bank's financial instruments at December 31, 2014 (dollars in thousands): Fair Value Financial Instruments Carrying Value Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Cash and due from banks $ 495,197 $ 495,197 $ — $ — $ — $ 495,197 Interest-bearing deposits 1,942 — 1,921 — — 1,921 Securities purchased under agreements to resell 5,091,000 — 5,091,000 — — 5,091,000 Federal funds sold 1,860,000 — 1,860,000 — — 1,860,000 Trading securities 2,530,490 — 2,530,490 — — 2,530,490 Available-for-sale securities 12,383,792 — 12,383,792 — — 12,383,792 Held-to-maturity securities 1,211,460 — 1,274,597 24,451 — 1,299,048 Advances 65,168,274 — 65,293,461 — — 65,293,461 Mortgage loans held for portfolio, net 6,562,469 — 6,833,531 62,218 — 6,895,749 Accrued interest receivable 84,440 — 84,440 — — 84,440 Derivative assets, net 80,112 1 96,321 — (16,210 ) 80,112 Other assets 12,069 12,069 — — — 12,069 Liabilities Deposits (512,558 ) — (512,553 ) — — (512,553 ) Consolidated obligations Discount notes (57,772,890 ) — (57,773,924 ) — — (57,773,924 ) Bonds (32,362,110 ) — (32,958,871 ) — — (32,958,871 ) Total consolidated obligations (90,135,000 ) — (90,732,795 ) — — (90,732,795 ) Mandatorily redeemable capital stock (24,367 ) (24,367 ) — — — (24,367 ) Accrued interest payable (89,509 ) — (89,509 ) — — (89,509 ) Derivative liabilities, net (76,632 ) (322 ) (510,704 ) — 434,394 (76,632 ) Other Commitments to fund advances — — 194 — — 194 Standby letters of credit (1,978 ) — — (1,978 ) — (1,978 ) Standby bond purchase agreements — — 1,809 — — 1,809 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value in the Statements of Condition a t June 30, 2015 (dollar s in thousands): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 248,464 $ — $ — $ 248,464 GSE obligations — 2,080,172 — — 2,080,172 Other non-MBS — 275,160 — — 275,160 GSE multifamily MBS — 459,329 — — 459,329 Total trading securities — 3,063,125 — — 3,063,125 Available-for-sale securities Other U.S. obligations — 4,219,283 — — 4,219,283 GSE obligations — 2,392,033 — — 2,392,033 State or local housing agency obligations — 1,070,964 — — 1,070,964 Other non-MBS — 297,354 — — 297,354 Other U.S. obligations single-family MBS — 2,406,389 — — 2,406,389 GSE single-family MBS — 1,803,317 — — 1,803,317 GSE multifamily MBS — 10,038,176 — — 10,038,176 Total available-for-sale securities — 22,227,516 — — 22,227,516 Advances 2 — 66,570 — — 66,570 Derivative assets, net Interest-rate related — 205,638 — (92,211 ) 113,427 Forward settlement agreements (TBAs) 102 — — (47 ) 55 Mortgage delivery commitments — 55 — — 55 Total derivative assets, net 102 205,693 — (92,258 ) 113,537 Other assets 17,658 — — — 17,658 Total recurring assets at fair value $ 17,760 $ 25,562,904 $ — $ (92,258 ) $ 25,488,406 Liabilities Discount notes 2 $ — $ (5,248,971 ) $ — $ — $ (5,248,971 ) Bonds 2 — (1,976,325 ) — — (1,976,325 ) Derivative liabilities, net Interest-rate related — (661,721 ) — 536,569 (125,152 ) Forward settlement agreements (TBAs) (49 ) — — 48 (1 ) Mortgage delivery commitments — (164 ) — — (164 ) Total derivative liabilities, net (49 ) (661,885 ) — 536,617 (125,317 ) Total recurring liabilities at fair value $ (49 ) $ (7,887,181 ) $ — $ 536,617 $ (7,350,613 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. 2 Represents financial instruments recorded under the fair value option. The following table summarizes, for each hierarchy level, the Bank's assets and liabilities that are measured at fair value in the Statements of Condition at December 31, 2014 (dollars in thousands): Recurring Fair Value Measurements Level 1 Level 2 Level 3 Netting Adjustment 1 Total Assets Trading securities Other U.S. obligations $ — $ 256,267 $ — $ — $ 256,267 GSE obligations — 1,531,811 — — 1,531,811 Other non-MBS — 280,215 — — 280,215 GSE multifamily MBS — 462,197 — — 462,197 Total trading securities — 2,530,490 — — 2,530,490 Available-for-sale securities Other U.S. obligations — 163,569 — — 163,569 GSE obligations — 1,012,308 — — 1,012,308 State or local housing agency obligations — 36,348 — — 36,348 Other non-MBS — 183,702 — — 183,702 Other U.S. obligations single-family MBS — 1,975,691 — — 1,975,691 GSE single-family MBS — 2,008,907 — — 2,008,907 GSE multifamily MBS — 7,003,267 — — 7,003,267 Total available-for-sale securities — 12,383,792 — — 12,383,792 Derivative assets, net Interest-rate related — 96,076 — (16,209 ) 79,867 Forward settlement agreements (TBAs) 1 — — (1 ) — Mortgage delivery commitments — 245 — — 245 Total derivative assets, net 1 96,321 — (16,210 ) 80,112 Other assets 12,069 — — — 12,069 Total recurring assets at fair value $ 12,070 $ 15,010,603 $ — $ (16,210 ) $ 15,006,463 Liabilities Derivative liabilities, net Interest-rate related $ — $ (510,697 ) $ — $ 434,393 $ (76,304 ) Forward settlement agreements (TBAs) (322 ) — — 1 (321 ) Mortgage delivery commitments — (7 ) — — (7 ) Total derivative liabilities, net (322 ) (510,704 ) — 434,394 (76,632 ) Total recurring liabilities at fair value $ (322 ) $ (510,704 ) $ — $ 434,394 $ (76,632 ) 1 Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. |
Fair Value Measurement, Nonrecurring [Table Text Block} | The following table summarizes outstanding impaired mortgage loans held for portfolio and REO that were recorded at fair value as a result of a non-recurring change in fair value having been recorded in the period then ended (dollars in thousands): June 30, December 31, Impaired mortgage loans held for portfolio 1 $ 16,964 $ 15,942 Real estate owned 1 691 773 Total non-recurring assets 1 $ 17,655 $ 16,715 1 The fair value information presented for June 30, 2015 is as of the date the fair value adjustment was recorded during the six months ended June 30, 2015. |
Fair Value Option, Quantitative Disclosures [Table Text Block] | The following tables summarize the activity related to financial instruments for which the fair value option was elected. For the three months ended June 30, 2014, the Bank did not have any financial instruments for which the fair value option was elected (dollars in thousands): For the Three Months Ended June 30, 2015 Advances Discount Notes Bonds Balance, beginning of period $ — $ — $ — New financial instruments elected for fair value option 66,620 (5,248,239 ) (2,376,977 ) Maturities and terminations — — 400,000 Net gains (losses) on financial instruments held under fair value option (48 ) (280 ) (62 ) Change in accrued interest or unaccreted balance (2 ) (452 ) 714 Balance, end of period $ 66,570 $ (5,248,971 ) $ (1,976,325 ) For the Six Months Ended June 30, 2015 2014 Advances Discount Notes Bonds Bonds Balance, beginning of period $ — $ — $ — $ (50,033 ) New financial instruments elected for fair value option 66,620 (5,248,239 ) (2,376,977 ) — Maturities and terminations — — 400,000 50,000 Net gains (losses) on financial instruments held under fair value option (48 ) (280 ) (62 ) 2 Change in accrued interest or unaccreted balance (2 ) (452 ) 714 31 Balance, end of period $ 66,570 $ (5,248,971 ) $ (1,976,325 ) $ — |
Fair Value Option, Quantitative Disclosures, Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding [Table Text Block] | The following table summarizes the difference between the unpaid principal balance and fair value of outstanding instruments for which the fair value option has been elected. At December 31, 2014, the Bank did not have any financial instruments outstanding for which the fair value option was elected (dollars in thousands): June 30, 2015 Advances 1 Discount Notes Bonds Unpaid principal balance $ 66,475 $ 5,250,000 $ 1,975,000 Fair value 66,570 5,248,971 1,976,325 Fair value over unpaid principal balance $ 95 $ (1,029 ) $ 1,325 1 At June 30, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Commitments [Table Text Block] | The following table summarizes additional off-balance sheet commitments for the Bank (dollars in thousands): June 30, 2015 December 31, 2014 Expire within one year Expire after one year Total Total Standby letters of credit $ 4,384,381 $ 71,461 $ 4,455,842 $ 4,411,783 Standby bond purchase agreements 248,148 283,161 531,309 557,282 Commitments to purchase mortgage loans 58,793 — 58,793 70,106 Commitments to issue bonds — — — 170,000 Commitments to issue discount notes 2,572,700 — 2,572,700 — Commitments to fund advances 14,000 81,000 95,000 14,000 Other commitments 86,580 — 86,580 86,580 |
Activities with Stockholders (T
Activities with Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions by Balance Sheet Grouping [Table Text Block] | The following table summarizes the Bank's outstanding transactions with Directors' Financial Institutions (dollars in thousands): June 30, 2015 December 31, 2014 Amount % of Total Amount % of Total Advances $ 1,348,441 2.0 $ 822,027 1.3 Mortgage loans 138,918 2.0 206,957 3.2 Deposits 33,716 3.3 3,362 0.7 Capital stock 108,993 2.7 55,000 1.6 |
Schedule Of Related Party Transactions By Related Party [Tables Text Block] | At June 30, 2015 , the Bank had the following business concentrations with stockholders (dollars in thousands): Capital Stock Mortgage Interest Stockholder Amount % of Total Advances Loans Income 1 Wells Fargo Bank, N.A. $ 1,070,000 26.7 $ 26,500,000 $ — $ 45,459 Superior Guaranty Insurance Company 2 42,412 1.1 — 1,031,418 — Wells Fargo Bank Northwest, N.A. 2 2,178 — — 54,314 — Total $ 1,112,412 27.8 $ 26,500,000 $ 1,031,418 $ 45,459 1 Represents interest income earned on advances during the six months ended June 30, 2015 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not to the stockholder. 2 Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. At December 31, 2014 , the Bank had the following business concentrations with stockholders (dollars in thousands): Capital Stock Mortgage Interest Stockholder Amount % of Total Advances Loans Income 1 Wells Fargo Bank, N.A. $ 1,370,000 39.2 $ 34,000,000 $ — $ 63,462 Superior Guaranty Insurance Company 2 47,866 1.4 — 1,173,522 — Total $ 1,417,866 40.6 $ 34,000,000 $ 1,173,522 $ 63,462 1 Represents interest income earned on advances during the year ended December 31, 2014 . Interest income on mortgage loans is excluded from this table as this interest relates to the borrower, not Superior Guaranty Insurance Company. 2 Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. |
Activities with Other FHLBanks
Activities with Other FHLBanks (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Activities with Other FHLBanks [Abstract] | |
Schedule of Loans to Other Federal Home Loan Banks [Table Text Block] | During the six months ended June 30, 2015 , the Bank did not lend funds to other FHLBanks. The following table summarizes loan activity to other FHLBanks during the six months ended June 30, 2014 (dollars in thousands): Other FHLBank Beginning Balance Advance Principal Repayment Ending Balance 2014 Chicago $ — $ 10,000 $ (10,000 ) $ — Topeka $ — $ 10,000 $ (10,000 ) $ — $ — $ 20,000 $ (20,000 ) $ — |
Schedule of Loans From Other Federal Home Loan Banks [Table Text Block] | The following table summarizes borrowing activity from other FHLBanks during the six months ended June 30, 2015 and 2014 (dollars in thousands): Other FHLBank Beginning Balance Borrowing Principal Payment Ending Balance 2015 Dallas $ — $ 200,000 $ (200,000 ) $ — $ — $ 200,000 $ (200,000 ) $ — 2014 Atlanta $ — $ 70,000 $ (70,000 ) $ — Chicago — 150,000 (150,000 ) — San Francisco — 150,000 (150,000 ) — $ — $ 370,000 $ (370,000 ) $ — |
Background Information (Details
Background Information (Details) | Jun. 30, 2015bank |
Background Information [Abstract] | |
Number of Federal Home Loan Banks | 11 |
Merger (Details)
Merger (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2016 | May. 31, 2015 | ||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | May 31, 2015 | ||||||
Business Acquisition, Name of Acquired Entity | Seattle Bank | ||||||
Business Acquisition, Description of Acquired Entity | Similar to the Bank, the Seattle Bank, a cooperative owned by its members, was one of the 12 district Federal Home Loan Banks and served the public by enhancing the availability of funds for residential mortgages and targeted community development. | ||||||
Business Combination, Reason for Business Combination | The Bank believes the Merger combines two complementary organizations with similar cultures, membership characteristics, and solid financial positions. | ||||||
Business Combination, Pro Forma Information, Disclosure Impracticable | The operations of the merged Seattle Bank have been included in the Bank's financial statements since June 1, 2015. However, the Seattle Bank is not a separate reporting segment and the Bank does not separately account for the amounts of revenues, expenses, and net income of the Seattle Bank. To do so would involve significant estimates of amounts, distinct segregation of operational and business practices inconsistent with the benefits of the Merger, and would require management to subjectively distinguish information about specific assets and liabilities transacted. As such, it is impracticable to determine such amounts for the period from June 1, 2015 through June 30, 2015. | ||||||
Business Acquisition, Pro Forma Revenue | $ 463,883 | $ 443,140 | |||||
Business Acquisition, Pro Forma Net Income (Loss) | 59,634 | 60,698 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 894,395 | ||||||
Fair Value of Consideration Transferred, Member Interests | 246,462 | ||||||
Fair Value of Consideration Transferred | 1,140,857 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 141 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Interest Bearing Deposits | 202 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | [1] | 2,341,059 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Advances | 9,190,741 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Mortgage Loans Held for Portfolio | 614,829 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Accrued Interest Receivable | 47,570 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 3,239 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Derivative Assets | 39,777 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 22,412 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 28,464,709 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | 370,814 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 12,448,960 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 13,613,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Mandatorily Redeemable Capital Stock | 724,827 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Accrued Interest Payable | 38,198 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Affordable Housing Program Payable | 17,128 | ||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Derivative Liabilities | 74,110 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 36,415 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 27,323,852 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 1,140,857 | ||||||
Severance Costs | $ 15,981 | 15,981 | |||||
Retention Costs | 334 | 334 | |||||
Pension Contribution Costs | [2] | 10,200 | 10,200 | ||||
Labor and Related Expense | 386 | 550 | |||||
Contractual Service Expense | 478 | 552 | |||||
Professional Fees | 4,349 | 6,116 | |||||
Lease Termination Costs | 1,000 | 1,000 | |||||
Other Cost and Expense, Operating | 402 | 619 | |||||
Merger related expenses | 33,130 | $ 0 | $ 35,352 | 0 | |||
Trading Securities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 550,473 | ||||||
Available-for-sale Securities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 9,825,223 | ||||||
Held-to-maturity Securities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 5,829,043 | ||||||
Advances [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Acquired Receivables, Fair Value | 9,200,000 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 9,500,000 | ||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 0 | ||||||
Residential Mortgage [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Acquired Receivables, Fair Value | 600,000 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 700,000 | ||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 0 | ||||||
Acquisition-related Costs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expenses | $ 37,000 | ||||||
Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||||||
Acquired Finite-lived Intangible Asset, Residual Value | $ 0 | ||||||
Finite-Lived Intangible Assets, Gross | 2,968 | $ 2,968 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 12 | $ 12 | |||||
Scenario, Forecast [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Amortization of Intangible Assets | $ 148 | ||||||
[1] | In anticipation of the closing of the Merger, on Friday, May 29, 2015, the Seattle Bank transferred $2.3 billion in cash to the Bank. The transfer was made to ensure the Bank had access to the Seattle Bank's cash balances on the first day of operations for the combined Bank, Monday, June 1, 2015. The Bank recorded a liability for this cash and the Seattle Bank recorded a receivable for this cash in their respective Statements of Condition for May 31, 2015. These balances were eliminated to arrive at the combined opening Statement of Condition. | ||||||
[2] | Represents a discretionary contribution made to bring the Seattle qualified defined benefit pension plan to a similar funding status as the Des Moines qualified defined benefit pension plan. |
Trading Securities (Major Secur
Trading Securities (Major Security Types) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 3,063,125 | $ 2,530,490 | |
Other U.S. obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | [1] | 248,464 | 256,267 |
GSE obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | 2,080,172 | 1,531,811 | |
Other [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | [2] | 275,160 | 280,215 |
Non-mortgage-backed securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | 2,603,796 | 2,068,293 | |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Trading securities | $ 459,329 | $ 462,197 | |
[1] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||
[2] | Consists of taxable municipal bonds. |
Trading Securities (Net Gains (
Trading Securities (Net Gains (Losses) on Trading Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Trading Securities [Abstract] | ||||
Trading Securities, Realized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ (27,100) | $ 22,300 | $ (8,200) | $ 46,500 |
Available-for-Sale Securities45
Available-for-Sale Securities (Major Security Types) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | $ 22,096,880 | $ 12,257,161 |
Gross Unrealized Gains | 145,449 | 138,304 | |
Gross Unrealized Losses | (14,813) | (11,673) | |
Fair Value | 22,227,516 | 12,383,792 | |
Other U.S. obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[2] | 4,202,560 | 158,864 |
Gross Unrealized Gains | [2] | 18,369 | 4,761 |
Gross Unrealized Losses | [2] | (1,646) | (56) |
Fair Value | [2] | 4,219,283 | 163,569 |
GSE obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 2,369,442 | 993,681 |
Gross Unrealized Gains | 24,078 | 22,682 | |
Gross Unrealized Losses | (1,487) | (4,055) | |
Fair Value | 2,392,033 | 1,012,308 | |
State or local housing agency obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 1,070,816 | 36,320 |
Gross Unrealized Gains | 844 | 176 | |
Gross Unrealized Losses | (696) | (148) | |
Fair Value | 1,070,964 | 36,348 | |
Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[3] | 290,070 | 176,277 |
Gross Unrealized Gains | [3] | 7,289 | 7,425 |
Gross Unrealized Losses | [3] | (5) | 0 |
Fair Value | [3] | 297,354 | 183,702 |
Non-mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 7,932,888 | 1,365,142 |
Gross Unrealized Gains | 50,580 | 35,044 | |
Gross Unrealized Losses | (3,834) | (4,259) | |
Fair Value | 7,979,634 | 1,395,927 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 14,163,992 | 10,892,019 |
Gross Unrealized Gains | 94,869 | 103,260 | |
Gross Unrealized Losses | (10,979) | (7,414) | |
Fair Value | 14,247,882 | 10,987,865 | |
Single Family [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1],[2] | 2,398,937 | 1,979,226 |
Gross Unrealized Gains | [2] | 7,798 | 340 |
Gross Unrealized Losses | [2] | (346) | (3,875) |
Fair Value | [2] | 2,406,389 | 1,975,691 |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 1,787,189 | 1,991,471 |
Gross Unrealized Gains | 16,225 | 17,586 | |
Gross Unrealized Losses | (97) | (150) | |
Fair Value | 1,803,317 | 2,008,907 | |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 9,977,866 | 6,921,322 |
Gross Unrealized Gains | 70,846 | 85,334 | |
Gross Unrealized Losses | (10,536) | (3,389) | |
Fair Value | $ 10,038,176 | $ 7,003,267 | |
[1] | Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. | ||
[2] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||
[3] | Consists of taxable municipal bonds and Private Export Funding Corporation bonds. |
Available-for-Sale Securities46
Available-for-Sale Securities (Unrealized Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 7,339,005 | $ 3,295,172 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (13,461) | (7,270) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 323,801 | 298,912 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1,352) | (4,403) |
Continuous Unrealized Loss Position, Fair Value | 7,662,806 | 3,594,084 |
Continuous Unrealized Loss Position, Unrealized Losses | (14,813) | (11,673) |
Other U.S. obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 2,362,972 | 34,993 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,646) | (56) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | 2,362,972 | 34,993 |
Continuous Unrealized Loss Position, Unrealized Losses | (1,646) | (56) |
GSE obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,148,557 | 230,965 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,487) | (286) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 109,669 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | (3,769) |
Continuous Unrealized Loss Position, Fair Value | 1,148,557 | 340,634 |
Continuous Unrealized Loss Position, Unrealized Losses | (1,487) | (4,055) |
State or local housing agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 40,342 | 0 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (445) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,103 | 6,527 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (251) | (148) |
Continuous Unrealized Loss Position, Fair Value | 46,445 | 6,527 |
Continuous Unrealized Loss Position, Unrealized Losses | (696) | (148) |
Other [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 20,378 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (5) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | |
Continuous Unrealized Loss Position, Fair Value | 20,378 | |
Continuous Unrealized Loss Position, Unrealized Losses | (5) | |
Non-mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,572,249 | 265,958 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (3,583) | (342) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,103 | 116,196 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (251) | (3,917) |
Continuous Unrealized Loss Position, Fair Value | 3,578,352 | 382,154 |
Continuous Unrealized Loss Position, Unrealized Losses | (3,834) | (4,259) |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,766,756 | 3,029,214 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9,878) | (6,928) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 317,698 | 182,716 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1,101) | (486) |
Continuous Unrealized Loss Position, Fair Value | 4,084,454 | 3,211,930 |
Continuous Unrealized Loss Position, Unrealized Losses | (10,979) | (7,414) |
Multifamily [Member] | Mortgage-backed securities, GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,542,905 | 1,331,057 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9,526) | (3,053) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 224,369 | 74,806 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1,010) | (336) |
Continuous Unrealized Loss Position, Fair Value | 3,767,274 | 1,405,863 |
Continuous Unrealized Loss Position, Unrealized Losses | (10,536) | (3,389) |
Single Family [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 223,745 | 1,698,157 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (346) | (3,875) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, Fair Value | 223,745 | 1,698,157 |
Continuous Unrealized Loss Position, Unrealized Losses | (346) | (3,875) |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 106 | 0 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (6) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 93,329 | 107,910 |
Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (91) | (150) |
Continuous Unrealized Loss Position, Fair Value | 93,435 | 107,910 |
Continuous Unrealized Loss Position, Unrealized Losses | $ (97) | $ (150) |
Available-for-Sale Securities47
Available-for-Sale Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | $ 22,096,880 | $ 12,257,161 |
Fair Value | 22,227,516 | 12,383,792 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Contractual Maturities, Due in one year or less, Amortized Cost | 152,687 | 66,673 | |
Contractual Maturities, Due in one year or less, Fair Value | 153,328 | 66,904 | |
Contractual Maturities, Due after one year through five years, Amortized Cost | 1,404,466 | 898,464 | |
Contractual Maturities, Due after one year through five years, Fair Value | 1,423,764 | 915,574 | |
Contractual Maturities, Due after five years through ten years, Amortized Cost | 3,975,235 | 247,821 | |
Contractual Maturities, Due after five years through ten years, Fair Value | 3,990,895 | 255,333 | |
Contractual Maturities, Due after ten years, Amortized Cost | 2,400,500 | 152,184 | |
Contractual Maturities, Due after ten years, Fair Value | 2,411,647 | 158,116 | |
Amortized Cost | [1] | 7,932,888 | 1,365,142 |
Fair Value | 7,979,634 | 1,395,927 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | [1] | 14,163,992 | 10,892,019 |
Fair Value | $ 14,247,882 | $ 10,987,865 | |
[1] | Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments. |
Available-for-Sale Securities48
Available-for-Sale Securities (Net Gains (Losses) from Sale of AFS Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Available-for-sale Securities [Abstract] | ||||
Proceeds from the sale of AFS securities | $ 0 | $ 0 | $ 0 | $ 97,172 |
Gross realized gains on sale of AFS securities | $ 0 | $ 0 | $ 0 | $ 826 |
Held-to-Maturity Securities (Ma
Held-to-Maturity Securities (Major Security Types) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | $ 6,811,226 | $ 1,211,460 |
Accumulated Unrecognized Holding Gain | 75,632 | 88,143 | |
Accumulated Unrecognized Holding Loss | (12,827) | (555) | |
Fair Value | 6,874,031 | 1,299,048 | |
GSE obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 403,082 | 305,126 |
Accumulated Unrecognized Holding Gain | 57,916 | 69,730 | |
Accumulated Unrecognized Holding Loss | (2,430) | 0 | |
Fair Value | 458,568 | 374,856 | |
State or local housing agency obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 989,990 | 59,963 |
Accumulated Unrecognized Holding Gain | 6,831 | 6,042 | |
Accumulated Unrecognized Holding Loss | (366) | 0 | |
Fair Value | 996,455 | 66,005 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 1,393,072 | 365,089 |
Accumulated Unrecognized Holding Gain | 64,747 | 75,772 | |
Accumulated Unrecognized Holding Loss | (2,796) | 0 | |
Fair Value | 1,455,023 | 440,861 | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 5,418,154 | 846,371 |
Accumulated Unrecognized Holding Gain | 10,885 | 12,371 | |
Accumulated Unrecognized Holding Loss | (10,031) | (555) | |
Fair Value | 5,419,008 | 858,187 | |
Single Family [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1],[2] | 63,055 | 3,247 |
Accumulated Unrecognized Holding Gain | [2] | 35 | 11 |
Accumulated Unrecognized Holding Loss | [2] | 0 | 0 |
Fair Value | [2] | 63,090 | 3,258 |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 5,325,241 | 816,793 |
Accumulated Unrecognized Holding Gain | 10,758 | 12,302 | |
Accumulated Unrecognized Holding Loss | (9,354) | (31) | |
Fair Value | 5,326,645 | 829,064 | |
Commercial Mortgage Backed Securities [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1],[2] | 7,065 | 1,415 |
Accumulated Unrecognized Holding Gain | [2] | 0 | 0 |
Accumulated Unrecognized Holding Loss | [2] | (3) | (1) |
Fair Value | [2] | 7,062 | 1,414 |
Residential Mortgage Backed Securities [Member] | Mortgage-backed securities, Private-label [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 22,793 | 24,916 |
Accumulated Unrecognized Holding Gain | 92 | 58 | |
Accumulated Unrecognized Holding Loss | (674) | (523) | |
Fair Value | $ 22,211 | $ 24,451 | |
[1] | Amortized cost includes adjustments made to the cost basis of an investment for accretion and/or amortization. | ||
[2] | Represents investment securities backed by the full faith and credit of the U.S. Government. |
Held-to-Maturity Securities (Un
Held-to-Maturity Securities (Unrealized Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 2,038,503 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (12,103) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 49,723 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (724) | |
Continuous Unrealized Loss Position, Fair Value | 2,088,226 | |
Continuous Unrealized Loss Position, Unrealized Losses | (12,827) | |
GSE obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 96,423 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2,430) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Continuous Unrealized Loss Position, Fair Value | 96,423 | |
Continuous Unrealized Loss Position, Unrealized Losses | (2,430) | |
State or local housing agency obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 82,698 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (366) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Continuous Unrealized Loss Position, Fair Value | 82,698 | |
Continuous Unrealized Loss Position, Unrealized Losses | (366) | |
Non-mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 179,121 | |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2,796) | |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Continuous Unrealized Loss Position, Fair Value | 179,121 | |
Continuous Unrealized Loss Position, Unrealized Losses | (2,796) | |
Mortgage-backed securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,859,382 | $ 1,436 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9,307) | (4) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 49,723 | 55,098 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (724) | (551) |
Continuous Unrealized Loss Position, Fair Value | 1,909,105 | 56,534 |
Continuous Unrealized Loss Position, Unrealized Losses | (10,031) | (555) |
Commercial Mortgage Backed Securities [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 6,174 | 0 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2) | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 498 | 248 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (1) |
Continuous Unrealized Loss Position, Fair Value | 6,672 | 248 |
Continuous Unrealized Loss Position, Unrealized Losses | (3) | (1) |
Single Family [Member] | Mortgage-backed securities, GSE [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 1,853,208 | 1,436 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9,305) | (4) |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 34,659 | 38,607 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (49) | (27) |
Continuous Unrealized Loss Position, Fair Value | 1,887,867 | 40,043 |
Continuous Unrealized Loss Position, Unrealized Losses | (9,354) | (31) |
Residential Mortgage Backed Securities [Member] | Mortgage-backed securities, Private-label [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 0 |
Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 14,566 | 16,243 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (674) | (523) |
Continuous Unrealized Loss Position, Fair Value | 14,566 | 16,243 |
Continuous Unrealized Loss Position, Unrealized Losses | $ (674) | $ (523) |
Held-to-Maturity Securities (Co
Held-to-Maturity Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | $ 6,811,226 | $ 1,211,460 |
Fair Value | 6,874,031 | 1,299,048 | |
Non-mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost | 16,520 | 0 | |
Held-to-maturity Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 16,522 | 0 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost | 138,164 | 0 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value | 138,180 | 0 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost | 141,263 | 0 | |
Held-to-maturity Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value | 141,384 | 0 | |
Held-to-maturity Securities, Debt Maturities, Rolling after Ten Years, Amortized Cost | 1,097,125 | 365,089 | |
Held-to-maturity Securities, Debt Maturities, Rolling after Ten Years, Fair Value | 1,158,937 | 440,861 | |
Amortized Cost | [1] | 1,393,072 | 365,089 |
Fair Value | 1,455,023 | 440,861 | |
Mortgage-backed securities [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 5,418,154 | 846,371 |
Fair Value | $ 5,419,008 | $ 858,187 | |
[1] | Amortized cost includes adjustments made to the cost basis of an investment for accretion and/or amortization. |
Held-to-Maturity Securities (Ne
Held-to-Maturity Securities (Net Gains (Losses) from Sale of HTM Securities) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Held-to-maturity Securities, Sold Security, at Carrying Value | $ 0 | $ 20,000,000 | $ 0 | $ 20,000,000 |
Net gains (losses) from sale of held-to-maturity securities | $ 0 | $ 2,483,000 | $ 0 | $ 2,483,000 |
Other-Than-Temporary Impairme53
Other-Than-Temporary Impairment Analysis (Details) - Mortgage-backed securities, Private-label [Member] - Residential Mortgage Backed Securities [Member] | Jun. 30, 2015 |
Other than Temporary Impairment, Disclosure [Line Items] | |
Number of Third Party Models To Assess Recovery of Amortized Cost Basis of Securities | 2 |
Minimum [Member] | |
Other than Temporary Impairment, Disclosure [Line Items] | |
Projected House Price Increase (Decrease) Rate | (2.00%) |
Projected House Price Increase (Decrease) Rate For Vast Majority Of Markets | 2.00% |
Maximum [Member] | |
Other than Temporary Impairment, Disclosure [Line Items] | |
Projected House Price Increase (Decrease) Rate | 8.00% |
Projected House Price Increase (Decrease) Rate For Vast Majority Of Markets | 5.00% |
Advances (Narrative) (Details)
Advances (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 67,842,963 | $ 64,952,208 |
Federal Home Loan Bank, Advances, Callable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | 37,600,000 | 44,600,000 |
Federal Home Loan Bank, Advances, Putable Option [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Par Value | $ 2,900,000 | $ 2,100,000 |
Advances (Redemption Terms) (De
Advances (Redemption Terms) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Advances [Abstract] | |||
Overdrawn demand deposit accounts | $ 493 | $ 66 | |
Weighted Average Interest Rate on Overdrawn Demand Deposit | 3.29% | 3.28% | |
Due in one year or less | $ 14,064,225 | $ 7,997,497 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Next Twelve Rolling Months | 0.65% | 0.66% | |
Due after one year through two years | $ 6,044,246 | $ 4,028,617 | |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Two | 1.48% | 1.45% | |
Due after two years through three years | $ 5,235,971 | $ 4,437,280 | |
Federal Home Loan Bank Advances, Weighted Average Interest Rate, Maturing in Rolling Year Three | 2.33% | 1.68% | |
Due after three years through four years | $ 20,230,055 | $ 20,706,329 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Four | 0.44% | 0.56% | |
Due after four years through five years | $ 14,395,365 | $ 21,447,326 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing in Rolling Year Five | 0.45% | 0.33% | |
Thereafter | $ 7,872,608 | $ 6,335,093 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate, Maturing after Rolling Year Five | 1.26% | 0.98% | |
Federal Home Loan Bank, Advances, Par Value | $ 67,842,963 | $ 64,952,208 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.82% | 0.67% | |
Premiums | $ 161,946 | $ 137 | |
Discounts | (10,485) | (6,388) | |
Fair value hedging adjustments | 186,785 | 222,317 | |
Fair value option adjustments | 95 | [1] | 0 |
Total | $ 68,181,304 | $ 65,168,274 | |
[1] | At June 30, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Advances (Prepayment Fees) (Det
Advances (Prepayment Fees) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Advances [Abstract] | |||||
Prepayment fee income | $ 13,697 | $ 16,836 | $ 13,962 | $ 17,167 | |
Fair value hedging adjustments | [1] | (5,164) | (13,618) | (4,922) | (13,783) |
Prepayment fees on advances, net | $ 8,533 | $ 3,218 | $ 9,040 | $ 3,384 | |
[1] | Represents the amortization/accretion of fair value hedging adjustments on closed advance hedge relationships resulting from advance prepayments. |
Mortgage Loans Held for Portf57
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | $ 6,932,544 | $ 6,486,407 | |
Premiums | 99,588 | 82,206 | |
Discounts | (12,460) | (12,191) | |
Basis adjustments from mortgage loan commitments | 10,059 | 10,947 | |
Total mortgage loans held for portfolio | 7,029,731 | 6,567,369 | |
Single Family [Member] | Fixed rate, long-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 5,545,527 | 5,024,393 | |
Single Family [Member] | Fixed rate, medium-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | [1] | 1,387,017 | 1,462,014 |
Mortgage Partnership Finance Program [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 6,348,431 | 6,486,407 | |
Premiums | 79,316 | 82,206 | |
Discounts | (10,609) | (12,191) | |
Basis adjustments from mortgage loan commitments | 10,059 | 10,947 | |
Total mortgage loans held for portfolio | 6,427,197 | 6,567,369 | |
Mortgage Partnership Finance Program [Member] | Single Family [Member] | Fixed rate, long-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 4,980,194 | 5,024,393 | |
Mortgage Partnership Finance Program [Member] | Single Family [Member] | Fixed rate, medium-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | [1] | 1,368,237 | 1,462,014 |
Mortgage Purchase Program [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 584,113 | 0 | |
Premiums | 20,272 | 0 | |
Discounts | (1,851) | 0 | |
Basis adjustments from mortgage loan commitments | 0 | 0 | |
Total mortgage loans held for portfolio | 602,534 | 0 | |
Mortgage Purchase Program [Member] | Single Family [Member] | Fixed rate, long-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | 565,333 | 0 | |
Mortgage Purchase Program [Member] | Single Family [Member] | Fixed rate, medium-term single family mortgages [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | [1] | $ 18,780 | $ 0 |
[1] | Medium-term is defined as a term of 15 years or less. |
Mortgage Loans Held for Portf58
Mortgage Loans Held for Portfolio (Mortgage Loans Held for Portfolio by Collateral or Guarantee Type) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 6,932,544 | $ 6,486,407 |
Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 6,348,431 | 6,486,407 |
Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 584,113 | 0 |
Conventional Mortgage Loan [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 6,314,059 | 5,916,651 |
Conventional Mortgage Loan [Member] | Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 5,785,880 | 5,916,651 |
Conventional Mortgage Loan [Member] | Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 528,179 | 0 |
Loans Insured or Guaranteed by US Government Authorities [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 618,485 | 569,756 |
Loans Insured or Guaranteed by US Government Authorities [Member] | Mortgage Partnership Finance Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | 562,551 | 569,756 |
Loans Insured or Guaranteed by US Government Authorities [Member] | Mortgage Purchase Program [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid principal balance | $ 55,934 | $ 0 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for Credit Losses [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 9.7 | $ 8.9 |
Allowance for Credit Losses (Ro
Allowance for Credit Losses (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Total allowance for credit losses | $ 1,096 | $ 4,900 | $ 1,096 | $ 4,900 | |||
Total recorded investment | [1] | 7,065,821 | 6,601,976 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Balance, beginning of period | 4,900 | ||||||
Provision (reversal) for credit losses on mortgage loans | 483 | $ 0 | 898 | $ (334) | |||
Balance, end of period | 1,096 | 1,096 | |||||
Conventional Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for credit losses - Collectively evaluated for impairment | 1,096 | 1,500 | |||||
Allowance for credit losses - Individually evaluated for impairment | 0 | 3,400 | |||||
Total allowance for credit losses | 1,100 | 7,400 | 4,900 | 8,000 | 1,096 | 4,900 | |
Recorded investment - Collectively evaluated for impairment | [2] | 6,351,238 | 5,966,025 | ||||
Recorded investment - Individually evaluated for impairment, with or without a related allowance | [2] | 77,069 | 50,151 | ||||
Total recorded investment | [2] | 6,428,307 | 6,016,176 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Balance, beginning of period | 1,100 | 7,400 | 4,900 | 8,000 | |||
Charge-offs | (573) | (200) | (4,916) | (466) | |||
Recoveries | 86 | 214 | |||||
Provision (reversal) for credit losses on mortgage loans | 483 | 0 | 898 | (334) | |||
Balance, end of period | 1,096 | 7,200 | 1,096 | 7,200 | |||
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for credit losses - Collectively evaluated for impairment | 902 | 1,500 | |||||
Allowance for credit losses - Individually evaluated for impairment | 0 | 3,400 | |||||
Total allowance for credit losses | 1,100 | 7,400 | 4,900 | 8,000 | 902 | 4,900 | |
Recorded investment - Collectively evaluated for impairment | [2] | 5,839,892 | 5,966,025 | ||||
Recorded investment - Individually evaluated for impairment, with or without a related allowance | [2] | 42,902 | 50,151 | ||||
Total recorded investment | [1],[2] | 5,882,794 | 6,016,176 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Balance, beginning of period | 1,100 | 7,400 | 4,900 | 8,000 | |||
Charge-offs | (572) | (200) | (4,915) | (466) | |||
Recoveries | 86 | 214 | |||||
Provision (reversal) for credit losses on mortgage loans | 288 | 0 | 703 | (334) | |||
Balance, end of period | 902 | 7,200 | 902 | 7,200 | |||
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for credit losses - Collectively evaluated for impairment | 194 | 0 | |||||
Allowance for credit losses - Individually evaluated for impairment | 0 | 0 | |||||
Total allowance for credit losses | 0 | 0 | 0 | 0 | 194 | 0 | |
Recorded investment - Collectively evaluated for impairment | [2] | 511,346 | 0 | ||||
Recorded investment - Individually evaluated for impairment, with or without a related allowance | [2] | 34,167 | 0 | ||||
Total recorded investment | [1],[2] | $ 545,513 | $ 0 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | |||
Charge-offs | (1) | 0 | (1) | 0 | |||
Recoveries | 0 | 0 | |||||
Provision (reversal) for credit losses on mortgage loans | 195 | 0 | 195 | 0 | |||
Balance, end of period | $ 194 | $ 0 | $ 194 | $ 0 | |||
[1] | Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. | ||||||
[2] | Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | $ 186,307 | $ 185,272 | |
Total current loans | 6,879,514 | 6,416,704 | |
Total recorded investment | [1] | 7,065,821 | 6,601,976 |
In process of foreclosure | [2] | $ 35,813 | $ 30,826 |
Serious delinquency rate | [3] | 1.10% | 1.00% |
Past due 90 days or more and still accruing interest | [4] | $ 9,768 | $ 10,799 |
Non-accrual mortgage loans | [5] | 85,743 | 58,832 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 81,033 | 90,925 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 27,014 | 29,036 | |
Financing Receivables, 90 to 179 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 18,766 | 20,999 | |
Financing Receivables, Greater than 180 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 59,494 | 44,312 | |
Conventional Mortgage Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total recorded investment | [6] | 6,428,307 | 6,016,176 |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 123,084 | 147,158 | |
Total current loans | 5,759,710 | 5,869,018 | |
Total recorded investment | [1],[6] | 5,882,794 | 6,016,176 |
In process of foreclosure | [2] | $ 23,495 | $ 26,715 |
Serious delinquency rate | [3] | 0.80% | 0.90% |
Past due 90 days or more and still accruing interest | [4] | $ 0 | $ 0 |
Non-accrual mortgage loans | [5] | 49,615 | 58,832 |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 60,125 | 70,646 | |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 17,477 | 22,000 | |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 12,730 | 16,355 | |
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 32,752 | 38,157 | |
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 7,246 | 38,114 | |
Total current loans | 570,800 | 547,686 | |
Total recorded investment | [1] | 578,046 | 585,800 |
In process of foreclosure | [2] | $ 1,936 | $ 4,111 |
Serious delinquency rate | [3] | 0.90% | 1.80% |
Past due 90 days or more and still accruing interest | [4] | $ 4,971 | $ 10,799 |
Non-accrual mortgage loans | [5] | 0 | 0 |
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 1,522 | 20,279 | |
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 753 | 7,036 | |
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 908 | 4,644 | |
Mortgage Partnership Finance Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 4,063 | 6,155 | |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 43,813 | 0 | |
Total current loans | 501,700 | 0 | |
Total recorded investment | [1],[6] | 545,513 | 0 |
In process of foreclosure | [2] | $ 10,382 | $ 0 |
Serious delinquency rate | [3] | 4.20% | 0.00% |
Past due 90 days or more and still accruing interest | [4] | $ 0 | $ 0 |
Non-accrual mortgage loans | [5] | 36,128 | 0 |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 13,893 | 0 | |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 6,910 | 0 | |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 3,961 | 0 | |
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 19,049 | 0 | |
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 12,164 | 0 | |
Total current loans | 47,304 | 0 | |
Total recorded investment | [1] | 59,468 | 0 |
In process of foreclosure | [2] | $ 0 | $ 0 |
Serious delinquency rate | [3] | 8.10% | 0.00% |
Past due 90 days or more and still accruing interest | [4] | $ 4,797 | $ 0 |
Non-accrual mortgage loans | [5] | 0 | 0 |
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 5,493 | 0 | |
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 1,874 | 0 | |
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, 90 to 179 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | 1,167 | 0 | |
Mortgage Purchase Program [Member] | Loans Insured or Guaranteed by US Government Authorities [Member] | Financing Receivables, Greater than 180 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total past due loans | $ 3,630 | $ 0 | |
[1] | Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. | ||
[2] | Includes loans where the decision of foreclosure or similar alternative such as pursuit of deed-in-lieu has been reported. Loans in process of foreclosure are included in past due or current loans depending on their payment status. | ||
[3] | Represents mortgage loans that are 90 days or more past due or in the process of foreclosure expressed as a percentage of the total recorded investment. | ||
[4] | Represents government-insured mortgage loans that are 90 days or more past due. | ||
[5] | Represents conventional mortgage loans that are 90 days or more past due and TDRs. | ||
[6] | Represents the unpaid principal balance adjusted for accrued interest, unamortized premiums, discounts, basis adjustments, and direct write-downs. |
Allowance for Credit Losses (In
Allowance for Credit Losses (Individually Evaluated Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 0 | $ 0 | $ 0 | $ 0 | |||
Mortgage Partnership Finance Program [Member] | Conventional Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Impaired loans with an allowance, Recorded Investment | 0 | 0 | $ 19,342 | ||||
Impaired loans without an allowance, Recorded Investment | 42,902 | 42,902 | 30,809 | ||||
Impaired loans, Recorded Investment | 42,902 | 42,902 | 50,151 | ||||
Impaired loans, Related Allowance | 0 | [1] | 0 | [1] | 3,400 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 23,186 | 0 | 21,258 | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 44,187 | 33,179 | 46,526 | 26,118 | |||
Impaired Financing Receivable, Average Recorded Investment | 44,187 | 56,365 | 46,526 | 47,376 | |||
Mortgage Purchase Program [Member] | Conventional Mortgage Loan [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Impaired loans with an allowance, Recorded Investment | 0 | 0 | 0 | ||||
Impaired loans without an allowance, Recorded Investment | 34,167 | 34,167 | 0 | ||||
Impaired loans, Recorded Investment | 34,167 | 34,167 | 0 | ||||
Impaired loans, Related Allowance | 0 | [1] | 0 | [1] | $ 0 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 0 | 0 | 0 | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 11,389 | 0 | 5,695 | 0 | |||
Impaired Financing Receivable, Average Recorded Investment | $ 11,389 | $ 0 | $ 5,695 | $ 0 | |||
[1] | Beginning January 1, 2015, the Bank began to charge-off the portion of the outstanding conventional mortgage loan balance in excess of the fair value of the underlying collateral for all collateral-dependent mortgage loans. As such, those loans no longer have an associated allowance. |
Derivatives and Hedging Activ63
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 444.4 | $ 444.4 | $ 418.2 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | $ 0 | ||
Amortization and Accretion of Off-Market Derivatives | $ 2.9 | $ 0 | $ 2.9 | $ 0 |
Derivatives and Hedging Activ64
Derivatives and Hedging Activities (Derivatives in Statement of Condition) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | $ 58,934,315 | $ 39,851,150 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 205,795 | 96,322 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 661,934 | 511,026 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | (92,258) | (16,210) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (536,617) | (434,394) |
Derivative assets, net | 113,537 | 80,112 | |
Derivative liabilities, net | 125,317 | 76,632 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 48,974,057 | 38,703,467 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 172,130 | 84,362 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 601,294 | 459,437 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 9,960,258 | 1,147,683 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 33,665 | 11,960 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 60,640 | 51,589 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 9,647,965 | 1,012,577 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 33,489 | 11,714 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 60,427 | 51,260 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaption [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 200,000 | 0 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 19 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Mortgage-backed securities [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 53,500 | 65,000 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 102 | 1 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 49 | 322 | |
Mortgages [Member] | Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Derivatives | 58,793 | 70,106 | |
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 55 | 245 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | $ 164 | $ 7 | |
[1] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||
[2] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Derivatives in Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Designated as Hedging Instruments, Gain (Loss), Net | $ 4,967 | $ (12,244) | $ 841 | $ (18,705) |
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 24,414 | (26,632) | (2,371) | (43,255) |
Net gains (losses) on derivatives and hedging activities | 29,381 | (38,876) | (1,530) | (61,960) |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Designated as Hedging Instruments, Gain (Loss), Net | 4,967 | (12,244) | 841 | (18,705) |
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 29,586 | (20,783) | 8,370 | (33,870) |
Interest Rate Swaption [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (89) | 0 | (89) | 0 |
Net Interest Settlements [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | (5,085) | (5,717) | (10,596) | (9,210) |
Mortgage-backed securities [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | 736 | (2,390) | (119) | (2,920) |
Mortgages [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments, Gain (Loss), Net | $ (734) | $ 2,258 | $ 63 | $ 2,745 |
Derivatives and Hedging Activ66
Derivatives and Hedging Activities (Credit Risk Exposure) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 281.1 |
Collateral Already Posted, Aggregate Fair Value | 157 |
Additional Collateral, Aggregate Fair Value | $ 98.3 |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Derivatives in Statement of Income and Impact on Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | $ 202,982 | $ (81,270) | $ 109,766 | $ (140,875) | |
Gains (Losses) on Hedged Items | (198,015) | 69,026 | (108,925) | 122,170 | |
Net Fair Value Hedge Ineffectiveness | 4,967 | (12,244) | 841 | (18,705) | |
Effect on Net Interest Income | [1] | (51,446) | (53,565) | (97,325) | (107,321) |
Available-for-sale Securities [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | 188,690 | (102,336) | 80,147 | (190,269) | |
Gains (Losses) on Hedged Items | (186,715) | 89,222 | (83,166) | 169,803 | |
Net Fair Value Hedge Ineffectiveness | 1,975 | (13,114) | (3,019) | (20,466) | |
Effect on Net Interest Income | [1] | (36,418) | (28,660) | (67,913) | (53,373) |
Advances [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | 65,927 | (11,973) | 32,551 | 1,227 | |
Gains (Losses) on Hedged Items | (64,691) | 12,387 | (31,019) | (380) | |
Net Fair Value Hedge Ineffectiveness | 1,236 | 414 | 1,532 | 847 | |
Effect on Net Interest Income | [1] | (45,784) | (40,578) | (85,924) | (80,872) |
Consolidated Obligation Bonds [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (Losses) on Derivatives | (51,635) | 33,039 | (2,932) | 48,167 | |
Gains (Losses) on Hedged Items | 53,391 | (32,583) | 5,260 | (47,253) | |
Net Fair Value Hedge Ineffectiveness | 1,756 | 456 | 2,328 | 914 | |
Effect on Net Interest Income | [1] | $ 30,756 | $ 15,673 | $ 56,512 | $ 26,924 |
[1] | Represents the net interest settlements on derivatives in fair value hedge relationships that are included in the interest income or interest expense line item of the respective hedged item type. Excludes the amortization of the financing element of off-market derivatives that is included in the interest income or interest expense line item of the respective hedged item type. This amortization totaled $2.9 million for both the three and six months ended June 30, 2015. In 2014, the Bank did not record any amortization for off-market derivatives. |
Derivatives and Hedging Activ68
Derivatives and Hedging Activities (Offsetting of Derivative Assets and Derivative Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | $ 205,740 | $ 96,077 | |
Derivative Liability, Fair Value, Gross Liability | 661,770 | 511,019 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | (92,258) | (16,210) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | (536,617) | (434,394) |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 113,482 | 79,867 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 125,153 | 76,625 | |
Derivative assets, net | 113,537 | 80,112 | |
Derivative liabilities, net | 125,317 | 76,632 | |
Over the Counter [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 156,522 | 59,574 | |
Derivative Liability, Fair Value, Gross Liability | 437,362 | 316,472 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (155,185) | (56,327) | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (312,209) | (239,847) | |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 1,337 | 3,247 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 125,153 | 76,625 | |
Derivative Asset, Not Subject to Master Netting Arrangement | [3] | 55 | 245 |
Derivative Liability, Not Subject to Master Netting Arrangement | [3] | 164 | 7 |
Derivative assets, net | 1,392 | 3,492 | |
Derivative liabilities, net | 125,317 | 76,632 | |
Exchange Cleared [Member] | |||
Offsetting Assets and Liabilities [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 49,218 | 36,503 | |
Derivative Liability, Fair Value, Gross Liability | 224,408 | 194,547 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (62,927) | (40,117) | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (224,408) | (194,547) | |
Derivative Asset, Net Fair Value Amount, After Offsetting Adjustment | 112,145 | 76,620 | |
Derivative Liability, Net Fair Value Amount, After Offsetting Adjustment | 0 | 0 | |
Derivative assets, net | 112,145 | 76,620 | |
Derivative liabilities, net | $ 0 | $ 0 | |
[1] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||
[2] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. | ||
[3] | Represents mortgage delivery commitments that are not subject to an enforceable netting agreement. |
Consolidated Obligations Narrat
Consolidated Obligations Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2015 | Dec. 31, 2014 |
FHLBanks [Member] | ||
Schedule of Short-term and Long-term Debt [Line Items] | ||
Par Value of Outstanding Consolidated Obligations | $ 852.8 | $ 847.2 |
Consolidated Obligations Discou
Consolidated Obligations Discount Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Total | $ 70,227,257 | $ 57,772,890 |
Consolidated Obligation Discount Notes [Member] | ||
Short-term Debt [Line Items] | ||
Par value | $ 70,235,635 | $ 57,781,155 |
Par Value, Weighted Average Interest Rate | 0.09% | 0.09% |
Discounts | $ (8,658) | $ (8,265) |
Consolidated Obligation Discount Notes [Member] | ||
Short-term Debt [Line Items] | ||
Fair Value Option Aggregate Differences, Short Term Debt Instruments | $ 280 | $ 0 |
Consolidated Obligations Bonds
Consolidated Obligations Bonds (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 41,974,286 | $ 32,362,110 |
Consolidated Obligation Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Due in one year or less | $ 22,603,680 | $ 18,392,675 |
Due in one year or less, Weighted Average Interest Rate | 0.66% | 0.59% |
Due after one year through two years | $ 4,260,815 | $ 3,144,800 |
Due after one year through two years, Weighted Average Interest Rate | 2.35% | 2.31% |
Due after two years through three years | $ 3,684,815 | $ 2,731,455 |
Due after two years through three years, Weighted Average Interest Rate | 1.96% | 3.39% |
Due after three years through four years | $ 1,716,430 | $ 632,740 |
Due after three years through four years, Weighted Average Interest Rate | 3.16% | 1.47% |
Due after four years through five years | $ 3,518,740 | $ 1,883,450 |
Due after four years through five years, Weighted Average Interest Rate | 2.79% | 2.02% |
Thereafter | $ 5,713,840 | $ 5,382,770 |
Thereafter, Weighted Average Interest Rate | 3.06% | 3.06% |
Index amortizing notes | $ 144,989 | $ 165,016 |
Index amortizing notes, Weighted Average Interest Rate | 5.21% | 5.21% |
Total par value | $ 41,643,309 | $ 32,332,906 |
Total par value, Weighted Average Interest Rate | 1.58% | 1.53% |
Premiums | $ 355,694 | $ 21,045 |
Discounts | (42,207) | (18,289) |
Fair value hedging adjustments | 16,165 | 26,448 |
Fair value option adjustments | 1,325 | 0 |
Total | $ 41,974,286 | $ 32,362,110 |
Consolidated Obligations Bond72
Consolidated Obligations Bonds by Call Features (Details) - Consolidated Obligation Bonds [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total par value | $ 41,643,309 | $ 32,332,906 |
Noncallable or Nonputable [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | 35,529,659 | 19,667,906 |
Callable [Member] | ||
Debt Instrument [Line Items] | ||
Total par value | $ 6,113,650 | $ 12,665,000 |
Consolidated Obligations Exting
Consolidated Obligations Extinguishment of Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ||||
Par value of extinguished debt | $ 0 | $ 0 | $ 23,700,000 | |
Net gains (losses) on extinguishment of debt | $ 0 | $ 2,736,000 | $ 0 | $ 2,736,000 |
Capital (Narrative) (Details)
Capital (Narrative) (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||
Number of Subclasses of Capital Stock | 2 | |||||
Number of Finance Agency Regulatory Capital Requirements | 3 | |||||
Weight Applied to Permanent Capital in Computing Leverage Ratio | 1.5 | |||||
Weight Applied to Nonpermanent Capital in Computing Leverage Ratio | 1 | |||||
Minimum Capital Stock Required to be Held by Members as a Percent of Total Assets at Preceeding Fiscal Year End, Subject to Cap and Floor | 0.12% | |||||
Activity Based Capital Stock Required by Members as a Percent of Total Advances and Mortgage Loans Oustanding as Disclosed in the Statement of Condition | 4.00% | |||||
Redemption Period Under FHLBank Capital Plan | 5 years | |||||
Mandatorily redeemable capital stock | $ 118,748,000 | $ 24,191,000 | $ 24,367,000 | $ 8,574,000 | $ 8,479,000 | $ 8,719,000 |
Additional capital from merger | $ 246,462,000 | 0 | ||||
Quarterly Net Income Allocated to Restricted Retained Earnings | 20.00% | |||||
Percent of Average Balance of Outstanding Consolidated Obligations Prescribed per the Joint Capital Enhancement Agreement For Each Previous Quarter | 1.00% | |||||
Restricted Retained Earnings | $ 86,117,000 | $ 74,989,000 | ||||
Maximum [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Federal Home Loan Banks, Membership Requirements, Capital Stock | 10,000,000 | |||||
Minimum [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Federal Home Loan Banks, Membership Requirements, Capital Stock | $ 10,000 |
Capital (Regulatory Capital Req
Capital (Regulatory Capital Requirements) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Capital [Abstract] | ||
Federal Home Loan Bank, Risk-Based Capital, Required | $ 977,544 | $ 579,898 |
Federal Home Loan Bank, Risk-Based Capital, Actual | 4,729,078 | 4,213,293 |
Federal Home Loan Bank, Regulatory Capital, Required | 4,750,308 | 3,820,958 |
Federal Home Loan Bank, Regulatory Capital, Actual | 4,975,540 | 4,213,293 |
Federal Home Loan Bank, Leverage Capital, Required | 5,937,885 | 4,776,197 |
Federal Home Loan Bank, Leverage Capital, Actual | $ 7,340,079 | $ 6,319,939 |
Regulatory Capital Ratio, Required | 4.00% | 4.00% |
Federal Home Loan Bank, Regulatory Capital Ratio, Actual | 4.19% | 4.41% |
Leverage Ratio, Required | 5.00% | 5.00% |
Federal Home Loan Bank, Leverage Ratio, Actual | 6.18% | 6.62% |
Capital (Accumulated Other Comp
Capital (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ 130,250 | $ 107,412 | $ 123,222 | $ 87,044 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | (2,831) | 26,509 | 4,005 | 47,659 |
Reclassifications from other comprehensive (loss) income to net income, Net realized gains on the sale of securities | 0 | 0 | 0 | (826) |
Reclassification from other comprehensive (loss) income to net income, Amortization - pension and postretirement | 192 | 45 | 384 | 89 |
Total other comprehensive income (loss) | (2,639) | 26,554 | 4,389 | 46,922 |
Ending Balance | 127,611 | 133,966 | 127,611 | 133,966 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 133,467 | 108,723 | 126,631 | 88,399 |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | (2,831) | 26,509 | 4,005 | 47,659 |
Reclassifications from other comprehensive (loss) income to net income, Net realized gains on the sale of securities | (826) | |||
Reclassification from other comprehensive (loss) income to net income, Amortization - pension and postretirement | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | (2,831) | 26,509 | 4,005 | 46,833 |
Ending Balance | 130,636 | 135,232 | 130,636 | 135,232 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (3,217) | (1,311) | (3,409) | (1,355) |
Other comprehensive income (loss) before reclassifications, Net unrealized losses | 0 | 0 | 0 | 0 |
Reclassifications from other comprehensive (loss) income to net income, Net realized gains on the sale of securities | 0 | |||
Reclassification from other comprehensive (loss) income to net income, Amortization - pension and postretirement | 192 | 45 | 384 | 89 |
Total other comprehensive income (loss) | 192 | 45 | 384 | 89 |
Ending Balance | $ (3,025) | $ (1,266) | $ (3,025) | $ (1,266) |
Capital (Mandatorily Redeemable
Capital (Mandatorily Redeemable Capital Stock) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
MRCS [Abstract] | ||||||||
Mandatorily redeemable capital stock | $ 118,748 | $ 8,574 | $ 118,748 | $ 8,574 | $ 24,191 | $ 24,367 | $ 8,479 | $ 8,719 |
Proceeds from issuance of MRCS | 317 | 0 | 467 | 145 | ||||
Mandatorily redeemable capital stock assumed | 724,827 | 724,827 | 0 | |||||
Capital stock reclassified to (from) mandatorily redeemable capital stock | (90,172) | 3,563 | (89,079) | 3,740 | ||||
Repurchases/redemptions of MRCS | $ (540,415) | $ (3,468) | $ (541,834) | $ (4,030) |
Fair Value (Carrying Value and
Fair Value (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Assets | ||||||||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | $ (92,258) | $ (16,210) | |||||
Trading securities | 3,063,125 | 2,530,490 | ||||||
Held-to-maturity securities | 6,811,226 | 1,211,460 | ||||||
Held-to-Maturity Securities, Fair Value | 6,874,031 | 1,299,048 | ||||||
Derivative assets, net | 113,537 | 80,112 | ||||||
Liabilities | ||||||||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | 536,617 | 434,394 | |||||
Mandatorily redeemable capital stock | (118,748) | $ (24,191) | (24,367) | $ (8,574) | $ (8,479) | $ (8,719) | ||
Derivative liabilities, net | (125,317) | (76,632) | ||||||
Carrying Value [Member] | ||||||||
Assets | ||||||||
Cash and due from banks | 482,886 | 495,197 | ||||||
Interest-bearing deposits | 1,978 | 1,942 | ||||||
Securities purchased under agreements to resell | 7,650,000 | 5,091,000 | ||||||
Federal funds sold | 3,000,000 | 1,860,000 | ||||||
Trading securities | 3,063,125 | 2,530,490 | ||||||
Available-for-sale securities | 22,227,516 | 12,383,792 | ||||||
Held-to-maturity securities | 6,811,226 | 1,211,460 | ||||||
Advances | 68,181,304 | 65,168,274 | ||||||
Mortgage loans held for portfolio, net | 7,028,635 | 6,562,469 | ||||||
Accrued interest receivable | 129,843 | 84,440 | ||||||
Derivative assets, net | 113,537 | 80,112 | ||||||
Other assets | 17,658 | 12,069 | ||||||
Liabilities | ||||||||
Deposits | (1,034,819) | (512,558) | ||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (112,201,543) | (90,135,000) | ||||||
Mandatorily redeemable capital stock | (118,748) | (24,367) | ||||||
Accrued interest payable | (126,782) | (89,509) | ||||||
Derivative liabilities, net | (125,317) | (76,632) | ||||||
Fair Value [Member] | ||||||||
Assets | ||||||||
Cash and due from banks | 482,886 | 495,197 | ||||||
Interest-bearing deposits | 1,197 | 1,921 | ||||||
Securities purchased under agreements to resell | 7,650,000 | 5,091,000 | ||||||
Federal funds sold | 3,000,000 | 1,860,000 | ||||||
Trading securities | 3,063,125 | 2,530,490 | ||||||
Available-for-sale securities | 22,227,516 | 12,383,792 | ||||||
Held-to-Maturity Securities, Fair Value | 6,874,031 | 1,299,048 | ||||||
Advances | 68,281,349 | 65,293,461 | ||||||
Mortgage loans held for portfolio, net | 7,188,730 | 6,895,749 | ||||||
Accrued interest receivable | 129,843 | 84,440 | ||||||
Derivative assets, net | 113,537 | 80,112 | ||||||
Other assets | 17,658 | 12,069 | ||||||
Liabilities | ||||||||
Deposits | (1,034,678) | (512,553) | ||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (112,688,166) | (90,732,795) | ||||||
Mandatorily redeemable capital stock | (118,748) | (24,367) | ||||||
Accrued interest payable | (126,782) | (89,509) | ||||||
Derivative liabilities, net | (125,317) | (76,632) | ||||||
Fair Value, Level 1 [Member] | ||||||||
Assets | ||||||||
Cash and due from banks | 482,886 | 495,197 | ||||||
Interest-bearing deposits | 0 | 0 | ||||||
Securities purchased under agreements to resell | 0 | 0 | ||||||
Federal funds sold | 0 | 0 | ||||||
Trading securities | 0 | 0 | ||||||
Available-for-sale securities | 0 | 0 | ||||||
Held-to-Maturity Securities, Fair Value | 0 | 0 | ||||||
Advances | 0 | 0 | ||||||
Mortgage loans held for portfolio, net | 0 | 0 | ||||||
Accrued interest receivable | 0 | 0 | ||||||
Derivative assets, net | 102 | 1 | ||||||
Other assets | 17,658 | 12,069 | ||||||
Liabilities | ||||||||
Deposits | 0 | 0 | ||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||||||
Mandatorily redeemable capital stock | (118,748) | (24,367) | ||||||
Accrued interest payable | 0 | 0 | ||||||
Derivative liabilities, net | (49) | (322) | ||||||
Fair Value, Level 2 [Member] | ||||||||
Assets | ||||||||
Cash and due from banks | 0 | 0 | ||||||
Interest-bearing deposits | 1,197 | 1,921 | ||||||
Securities purchased under agreements to resell | 7,650,000 | 5,091,000 | ||||||
Federal funds sold | 3,000,000 | 1,860,000 | ||||||
Trading securities | 3,063,125 | 2,530,490 | ||||||
Available-for-sale securities | 22,227,516 | 12,383,792 | ||||||
Held-to-Maturity Securities, Fair Value | 6,851,820 | 1,274,597 | ||||||
Advances | 68,281,349 | 65,293,461 | ||||||
Mortgage loans held for portfolio, net | 7,080,219 | 6,833,531 | ||||||
Accrued interest receivable | 129,843 | 84,440 | ||||||
Derivative assets, net | 205,693 | 96,321 | ||||||
Other assets | 0 | 0 | ||||||
Liabilities | ||||||||
Deposits | (1,034,678) | (512,553) | ||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | (112,688,166) | (90,732,795) | ||||||
Mandatorily redeemable capital stock | 0 | 0 | ||||||
Accrued interest payable | (126,782) | (89,509) | ||||||
Derivative liabilities, net | (661,885) | (510,704) | ||||||
Fair Value, Level 3 [Member] | ||||||||
Assets | ||||||||
Cash and due from banks | 0 | 0 | ||||||
Interest-bearing deposits | 0 | 0 | ||||||
Securities purchased under agreements to resell | 0 | 0 | ||||||
Federal funds sold | 0 | 0 | ||||||
Trading securities | 0 | 0 | ||||||
Available-for-sale securities | 0 | 0 | ||||||
Held-to-Maturity Securities, Fair Value | 22,211 | 24,451 | ||||||
Advances | 0 | 0 | ||||||
Mortgage loans held for portfolio, net | 108,511 | 62,218 | ||||||
Accrued interest receivable | 0 | 0 | ||||||
Derivative assets, net | 0 | 0 | ||||||
Other assets | 0 | 0 | ||||||
Liabilities | ||||||||
Deposits | 0 | 0 | ||||||
Federal Home Loan Bank, Consolidated Obligations Fair Value Disclosure | 0 | 0 | ||||||
Mandatorily redeemable capital stock | 0 | 0 | ||||||
Accrued interest payable | 0 | 0 | ||||||
Derivative liabilities, net | 0 | 0 | ||||||
Consolidated Obligation Bonds [Member] | ||||||||
Liabilities | ||||||||
Bonds | (1,976,325) | 0 | ||||||
Consolidated Obligation Bonds [Member] | Carrying Value [Member] | ||||||||
Liabilities | ||||||||
Bonds | (41,974,286) | (32,362,110) | ||||||
Consolidated Obligation Bonds [Member] | Fair Value [Member] | ||||||||
Liabilities | ||||||||
Bonds | (42,458,372) | (32,958,871) | ||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 1 [Member] | ||||||||
Liabilities | ||||||||
Bonds | 0 | 0 | ||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 2 [Member] | ||||||||
Liabilities | ||||||||
Bonds | (42,458,372) | (32,958,871) | ||||||
Consolidated Obligation Bonds [Member] | Fair Value, Level 3 [Member] | ||||||||
Liabilities | ||||||||
Bonds | 0 | 0 | ||||||
Consolidated Obligation Discount Notes [Member] | Carrying Value [Member] | ||||||||
Liabilities | ||||||||
Discount notes | (70,227,257) | (57,772,890) | ||||||
Consolidated Obligation Discount Notes [Member] | Fair Value [Member] | ||||||||
Liabilities | ||||||||
Discount notes | (70,229,794) | (57,773,924) | ||||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 1 [Member] | ||||||||
Liabilities | ||||||||
Discount notes | 0 | 0 | ||||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 2 [Member] | ||||||||
Liabilities | ||||||||
Discount notes | (70,229,794) | (57,773,924) | ||||||
Consolidated Obligation Discount Notes [Member] | Fair Value, Level 3 [Member] | ||||||||
Liabilities | ||||||||
Discount notes | 0 | 0 | ||||||
Commitments to Fund Advances [Member] | Carrying Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | |||||||
Commitments to Fund Advances [Member] | Fair Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 1,664 | 194 | ||||||
Commitments to Fund Advances [Member] | Fair Value, Level 1 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | |||||||
Commitments to Fund Advances [Member] | Fair Value, Level 2 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 1,664 | 194 | ||||||
Commitments to Fund Advances [Member] | Fair Value, Level 3 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | |||||||
Standby Letters of Credit [Member] | Carrying Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 2,940 | 1,978 | ||||||
Standby Letters of Credit [Member] | Fair Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 2,940 | 1,978 | ||||||
Standby Letters of Credit [Member] | Fair Value, Level 1 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | 0 | ||||||
Standby Letters of Credit [Member] | Fair Value, Level 2 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | 0 | ||||||
Standby Letters of Credit [Member] | Fair Value, Level 3 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 2,940 | 1,978 | [3] | |||||
Standby Bond Purchase Agreements [Member] | Carrying Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | 0 | ||||||
Standby Bond Purchase Agreements [Member] | Fair Value [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 1,447 | 1,809 | ||||||
Standby Bond Purchase Agreements [Member] | Fair Value, Level 1 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 0 | 0 | ||||||
Standby Bond Purchase Agreements [Member] | Fair Value, Level 2 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | 1,447 | 1,809 | ||||||
Standby Bond Purchase Agreements [Member] | Fair Value, Level 3 [Member] | ||||||||
Other [Abstract] | ||||||||
Other | $ 0 | $ 0 | ||||||
[1] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | |||||||
[2] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. | |||||||
[3] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. |
Fair Value (Fair Value on a Rec
Fair Value (Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | $ 3,063,125 | $ 2,530,490 | |
Advances, Fair Value Option | 66,570 | 0 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1],[2] | (92,258) | (16,210) |
Derivative assets, net | 113,537 | 80,112 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1],[2] | 536,617 | 434,394 |
Derivative liabilities, net | (125,317) | (76,632) | |
Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Derivative assets, net | 102 | 1 | |
Other assets | 17,658 | 12,069 | |
Derivative liabilities, net | (49) | (322) | |
Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 3,063,125 | 2,530,490 | |
Available-for-sale securities | 22,227,516 | 12,383,792 | |
Derivative assets, net | 205,693 | 96,321 | |
Other assets | 0 | 0 | |
Derivative liabilities, net | (661,885) | (510,704) | |
Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Derivative assets, net | 0 | 0 | |
Other assets | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [3] | (92,258) | (16,210) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [3] | 536,617 | 434,394 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Advances, Fair Value Option | [4] | 0 | |
Interest-rate related derivative assets | 0 | 0 | |
Derivative assets, net | 102 | 1 | |
Other assets | 17,658 | 12,069 | |
Total recurring assets | 17,760 | 12,070 | |
Interest-rate related derivative liabilities | 0 | 0 | |
Derivative liabilities, net | (49) | (322) | |
Total recurring liabilities | (49) | (322) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 3,063,125 | 2,530,490 | |
Available-for-sale securities | 22,227,516 | 12,383,792 | |
Advances, Fair Value Option | [4] | 66,570 | |
Interest-rate related derivative assets | 205,638 | 96,076 | |
Derivative assets, net | 205,693 | 96,321 | |
Other assets | 0 | 0 | |
Total recurring assets | 25,562,904 | 15,010,603 | |
Interest-rate related derivative liabilities | (661,721) | (510,697) | |
Derivative liabilities, net | (661,885) | (510,704) | |
Total recurring liabilities | (7,887,181) | (510,704) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Advances, Fair Value Option | [4] | 0 | |
Interest-rate related derivative assets | 0 | 0 | |
Derivative assets, net | 0 | 0 | |
Other assets | 0 | 0 | |
Total recurring assets | 0 | 0 | |
Interest-rate related derivative liabilities | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Total recurring liabilities | 0 | 0 | |
Consolidated Obligation Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Bonds | (1,976,325) | 0 | |
Consolidated Obligation Bonds [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Bonds | 0 | 0 | |
Consolidated Obligation Bonds [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Bonds | (42,458,372) | (32,958,871) | |
Consolidated Obligation Bonds [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Bonds | 0 | 0 | |
Consolidated Obligation Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount Notes, Fair Value Option | [4] | 0 | |
Bonds | [4] | 0 | |
Consolidated Obligation Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount Notes, Fair Value Option | [4] | 5,248,971 | |
Bonds | [4] | (1,976,325) | |
Consolidated Obligation Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount Notes, Fair Value Option | [4] | 0 | |
Bonds | [4] | 0 | |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [3] | (92,211) | (16,209) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [3] | 536,569 | 434,393 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [3] | (47) | (1) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [3] | 48 | 1 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 102 | 1 | |
Derivative liabilities, net | (49) | (322) | |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Mortgage Delivery Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Mortgage Delivery Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 55 | 245 | |
Derivative liabilities, net | (164) | (7) | |
Mortgage Delivery Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 0 | 0 | |
Derivative liabilities, net | 0 | 0 | |
Other U.S. obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | [5] | 248,464 | 256,267 |
Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 248,464 | 256,267 | |
Available-for-sale securities | 4,219,283 | 163,569 | |
Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
GSE obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 2,080,172 | 1,531,811 | |
GSE obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
GSE obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 2,080,172 | 1,531,811 | |
Available-for-sale securities | 2,392,033 | 1,012,308 | |
GSE obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
State or local housing agency obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | 0 | |
State or local housing agency obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,070,964 | 36,348 | |
State or local housing agency obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | 0 | |
Other non-MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | [6] | 275,160 | 280,215 |
Other non-MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Other non-MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 275,160 | 280,215 | |
Available-for-sale securities | 297,354 | 183,702 | |
Other non-MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Mortgage-backed securities, Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,975,691 | ||
Mortgage-backed securities, Other U.S. obligations residential [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | ||
Mortgage-backed securities, Other U.S. obligations residential [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 2,406,389 | ||
Mortgage-backed securities, Other U.S. obligations residential [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | ||
GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 459,329 | 462,197 | |
GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 3,063,125 | 2,530,490 | |
Available-for-sale securities | 22,227,516 | 12,383,792 | |
Derivative assets, net | 113,537 | 80,112 | |
Other assets | 17,658 | 12,069 | |
Derivative liabilities, net | (125,317) | (76,632) | |
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 3,063,125 | 2,530,490 | |
Available-for-sale securities | 22,227,516 | 12,383,792 | |
Advances, Fair Value Option | [4] | 66,570 | |
Interest-rate related derivative assets | 113,427 | 79,867 | |
Derivative assets, net | 113,537 | 80,112 | |
Other assets | 17,658 | 12,069 | |
Total recurring assets | 25,488,406 | 15,006,463 | |
Interest-rate related derivative liabilities | (125,152) | (76,304) | |
Derivative liabilities, net | (125,317) | (76,632) | |
Total recurring liabilities | (7,350,613) | (76,632) | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Bonds | (42,458,372) | (32,958,871) | |
Fair Value [Member] | Consolidated Obligation Bonds [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount Notes, Fair Value Option | [4] | 5,248,971 | |
Bonds | [4] | (1,976,325) | |
Fair Value [Member] | Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 55 | 0 | |
Derivative liabilities, net | (1) | (321) | |
Fair Value [Member] | Mortgage Delivery Commitments [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, net | 55 | 245 | |
Derivative liabilities, net | (164) | (7) | |
Fair Value [Member] | Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 248,464 | 256,267 | |
Available-for-sale securities | 4,219,283 | 163,569 | |
Fair Value [Member] | GSE obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 2,080,172 | 1,531,811 | |
Available-for-sale securities | 2,392,033 | 1,012,308 | |
Fair Value [Member] | State or local housing agency obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,070,964 | 36,348 | |
Fair Value [Member] | Other non-MBS [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 275,160 | 280,215 | |
Available-for-sale securities | 297,354 | 183,702 | |
Fair Value [Member] | Mortgage-backed securities, Other U.S. obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,975,691 | ||
Fair Value [Member] | Mortgage-backed securities, Other U.S. obligations residential [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 2,406,389 | ||
Fair Value [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 459,329 | 462,197 | |
Single Family [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | ||
Single Family [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,803,317 | 2,008,907 | |
Single Family [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | ||
Single Family [Member] | Fair Value [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 1,803,317 | 2,008,907 | |
Multifamily [Member] | GSE MBS [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 459,329 | 462,197 | |
Multifamily [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | 0 | |
Multifamily [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 10,038,176 | 7,003,267 | |
Multifamily [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | 0 | |
Multifamily [Member] | Fair Value [Member] | GSE MBS [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 10,038,176 | $ 7,003,267 | |
[1] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||
[2] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. Cash collateral posted by the Bank (including accrued interest) was $444.4 million and $418.2 million at June 30, 2015 and December 31, 2014. At June 30, 2015 and December 31, 2014, the Bank had not received any cash collateral from clearing agents and/or counterparties. | ||
[3] | Amounts represent the application of the netting requirements that allow the Bank to net settle positive and negative positions and also cash collateral and the related accrued interest held or placed with the same clearing agent and/or counterparty. | ||
[4] | Represents financial instruments recorded under the fair value option. | ||
[5] | Represents investment securities backed by the full faith and credit of the U.S. Government. | ||
[6] | Consists of taxable municipal bonds. |
Fair Value (Fair Value on a Non
Fair Value (Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | [1] | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total non-recurring assets | $ 17,655 | $ 16,715 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired mortgage loans held for portfolio | 16,964 | 15,942 | |
Real estate owned | $ 691 | $ 773 | |
[1] | The fair value information presented for June 30, 2015 is as of the date the fair value adjustment was recorded during the six months ended June 30, 2015. |
Fair Value (Fair Value Option,
Fair Value (Fair Value Option, Quantitative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Advances, Fair Value Disclosure | $ 66,570 | $ 66,570 | $ 0 | |||||
Fair Value, Option, Quantitative Disclosures [Roll Forward] | ||||||||
Net gains (losses) on financial instruments held at fair value | (390) | $ 0 | (390) | $ 2 | ||||
Portion at Fair Value Measurement [Member] | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Advances, Fair Value Disclosure | 66,570 | [1] | 66,570 | [1] | $ 0 | 0 | ||
Fair Value, Option, Quantitative Disclosures [Roll Forward] | ||||||||
Balance, beginning of period | (50,033) | |||||||
Discount Notes, Fair Value | (5,248,971) | (5,248,971) | $ 0 | $ 0 | ||||
Portion at Fair Value Measurement [Member] | Consolidated Obligation Discount Notes [Member] | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Fair Value, Option, Quantitative Disclosures, Transactions Elected for Fair Value Option, Liabilities | (5,248,239) | (5,248,239) | ||||||
Fair Value, Option, Quantitative Disclosures [Roll Forward] | ||||||||
Maturities and terminations | 0 | 0 | ||||||
Net gains (losses) on financial instruments held at fair value | (280) | (280) | ||||||
Change in accrued interest/unaccreted balance | (452) | (452) | ||||||
Portion at Fair Value Measurement [Member] | Consolidated Obligation Bonds [Member] | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Fair Value, Option, Quantitative Disclosures, Transactions Elected for Fair Value Option, Liabilities | (2,376,977) | (2,376,977) | 0 | |||||
Fair Value, Option, Quantitative Disclosures [Roll Forward] | ||||||||
Balance, beginning of period | 0 | 0 | ||||||
Maturities and terminations | 400,000 | 400,000 | 50,000 | |||||
Net gains (losses) on financial instruments held at fair value | (62) | (62) | 2 | |||||
Change in accrued interest/unaccreted balance | 714 | 714 | $ 31 | |||||
Portion at Fair Value Measurement [Member] | Advances [Member] | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Fair Value Option, Quantitative Disclosures, Maturities and Terminations, Assets | 0 | 0 | ||||||
Fair Value, Option, Quantitative Disclosures [Roll Forward] | ||||||||
Net gains (losses) on financial instruments held at fair value | (48) | (48) | ||||||
Fair Value Option, Quantitative Disclosures, Change in Accrued Interest, Assets | (2) | (2) | ||||||
Fair Value, Option, Quantitative Disclosures, Transactions Elected for Fair Value Option, Assets | $ 66,620 | $ 66,620 | ||||||
[1] | At June 30, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Fair Value (Fair Value Differen
Fair Value (Fair Value Difference Between Fair Value and Remaining Contractual Principal Balance Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Fair Value Option, Principal Balance, Consolidated Obligation Bonds | $ 1,975,000 | ||||||
Advances, Fair Value Disclosure | 66,570 | $ 0 | |||||
Federal Home Loan Bank, Advances, Valuation Adjustments under Fair Value Option | 95 | [1] | 0 | ||||
Portion at Fair Value Measurement [Member] | |||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Fair Value Option, Principal Balance, Advances | [1] | 66,475 | |||||
Advances, Fair Value Disclosure | 66,570 | [1] | $ 0 | 0 | |||
Bonds | 1,976,325 | $ 0 | $ 50,033 | ||||
Discount Notes, Fair Value | 5,248,971 | $ 0 | $ 0 | ||||
Consolidated Obligation Discount Notes [Member] | |||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Fair Value Option, Principal Balance, Consolidated Obligation Discount Notes | 5,250,000 | ||||||
Fair Value, Option, Aggregate Differences, Consolidated Obligation Discount Notes | (1,029) | ||||||
Consolidated Obligation Discount Notes [Member] | Portion at Fair Value Measurement [Member] | |||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Discount Notes, Fair Value | 5,248,971 | ||||||
Consolidated Obligation Bonds [Member] | |||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Fair value over unpaid principal balance | 1,325 | ||||||
Consolidated Obligation Bonds [Member] | Portion at Fair Value Measurement [Member] | |||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||||
Bonds | $ 1,976,325 | ||||||
[1] | At June 30, 2015, none of the advances were 90 days or more past due or had been placed on non-accrual status. |
Commitments and Contingencies83
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)bankInstitutions | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)bankInstitutions | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of Federal Home Loan Banks | bank | 11 | 11 | |||
Other liabilities | $ 106,061 | $ 106,061 | $ 332,499 | ||
FLA Balance For All Master Commitments | 93,400 | 93,400 | 92,200 | ||
Other FHLBanks [Member] | |||||
Loss Contingencies [Line Items] | |||||
Total par value | 740,900,000 | 740,900,000 | 757,100,000 | ||
Standby Letters of Credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 4,384,381 | 4,384,381 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 71,461 | 71,461 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 4,455,842 | 4,455,842 | 4,411,783 | ||
Other liabilities | 2,900 | $ 2,900 | 2,000 | ||
Original Expiration Periods No Later Than | 2,020 | ||||
Standby Letters of Credit [Member] | Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Standby Letters Of Credit Original Terms | 1 month | ||||
Standby Letters of Credit [Member] | Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Standby Letters Of Credit Original Terms | 13 years | ||||
Standby Bond Purchase Agreements [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 248,148 | $ 248,148 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 283,161 | 283,161 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 531,309 | $ 531,309 | 557,282 | ||
Original Expiration Periods No Later Than | 2,018 | ||||
Original Expiration Periods Up To | 7 years | ||||
Number of Housing Authorities For Which the Bank Has Standby Bond Purchase Agreements | Institutions | 4 | 4 | |||
Fees Generated From Guarantees Related to Standby Bond Purchase Agreements | $ 300 | $ 400 | $ 700 | $ 900 | |
Loan Purchase or Fund Commitments [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 58,793 | 58,793 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 58,793 | $ 58,793 | 70,106 | ||
Period of Delivery Commitments | 45 days | ||||
Commitments to Issue Bonds [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 0 | $ 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 0 | 0 | 170,000 | ||
Commitments to Fund Advances [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 14,000 | 14,000 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 81,000 | 81,000 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 95,000 | 95,000 | 14,000 | ||
Commitments to Issue Discount Notes [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 2,572,700 | 2,572,700 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 2,572,700 | 2,572,700 | 0 | ||
Other Commitments [Domain] | |||||
Loss Contingencies [Line Items] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring Within One Year | 86,580 | 86,580 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Expiring After One Year | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 86,580 | 86,580 | $ 86,580 | ||
Purchase Commitment, Iowa Finance Authority Taxable Variable Rate Multi Family Mortgage Revenue Bonds | $ 86,600 | $ 86,600 |
Activities with Stockholders 84
Activities with Stockholders (Transactions with Directors' Financial Institutions) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Advances | $ 68,181,304 | $ 65,168,274 |
Mortgage Loans | 7,029,731 | 6,567,369 |
Deposits, Domestic | 1,034,819 | 512,558 |
Capital Stock | 3,884,687 | 3,468,503 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Advances | $ 1,348,441 | $ 822,027 |
Advances, Percent | 2.00% | 1.30% |
Mortgage Loans | $ 138,918 | $ 206,957 |
Mortgage Loans, Percent | 2.00% | 3.20% |
Deposits, Domestic | $ 33,716 | $ 3,362 |
Deposits, Percent | 3.30% | 0.70% |
Capital Stock | $ 108,993 | $ 55,000 |
Capital Stock, Percent | 2.70% | 1.60% |
Activities with Stockholders (B
Activities with Stockholders (Business Concentrations) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||||
Related Party Transaction [Line Items] | |||||||||
Advances | $ 68,181,304,000 | $ 68,181,304,000 | $ 65,168,274,000 | ||||||
Mortgage Loans | 7,029,731,000 | 7,029,731,000 | 6,567,369,000 | ||||||
Interest Income on Advances | 63,081,000 | $ 54,001,000 | 129,257,000 | $ 106,863,000 | |||||
Wells Fargo Bank N.A. [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 1,070,000,000 | $ 1,070,000,000 | $ 1,370,000,000 | ||||||
Capital Stock Percentage | 26.70% | 26.70% | 39.20% | ||||||
Advances | $ 26,500,000,000 | $ 26,500,000,000 | $ 34,000,000,000 | ||||||
Mortgage Loans | 0 | 0 | 0 | ||||||
Interest Income on Advances | 45,459,000 | [1] | 63,462,000 | [2] | |||||
Superior Guaranty Insurance Company [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 42,412,000 | [3] | $ 42,412,000 | [3] | $ 47,866,000 | [4] | |||
Capital Stock Percentage | 1.10% | [3] | 1.10% | [3] | 1.40% | [4] | |||
Advances | $ 0 | [3] | $ 0 | [3] | $ 0 | [4] | |||
Mortgage Loans | 1,031,418,000 | [3] | 1,031,418,000 | [3] | 1,173,522,000 | [4] | |||
Interest Income on Advances | 0 | [1],[3] | 0 | [2],[4] | |||||
Wells Fargo Northwest NA [Member] [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | [3] | $ 2,178,000 | $ 2,178,000 | ||||||
Capital Stock Percentage | [3] | 0.00% | 0.00% | ||||||
Advances | [3] | $ 0 | $ 0 | ||||||
Mortgage Loans | [3] | 54,314,000 | 54,314,000 | ||||||
Interest Income on Advances | [1],[3] | 0 | |||||||
Principal Owner [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital Stock | $ 1,112,412,000 | $ 1,112,412,000 | $ 1,417,866,000 | ||||||
Capital Stock Percentage | 27.80% | 27.80% | 40.60% | ||||||
Advances | $ 26,500,000,000 | $ 26,500,000,000 | $ 34,000,000,000 | ||||||
Mortgage Loans | $ 1,031,418,000 | 1,031,418,000 | 1,173,522,000 | ||||||
Interest Income on Advances | $ 45,459,000 | [1] | $ 63,462,000 | [2] | |||||
Stockholders' Equity, Total [Member] | Stockholders' Capital Stock Outstanding Concenetration Risk [Member] | Minimum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Business Concentration Percentage | 10.00% | ||||||||
[1] | Represents interest income earned on advances during the six months ended June 30, 2015. | ||||||||
[2] | Represents interest income earned on advances during the year ended December 31, 2014. | ||||||||
[3] | Superior Guaranty Insurance Company and Wells Fargo Bank Northwest, N.A. are affiliates of Wells Fargo Bank, N.A. | ||||||||
[4] | Superior Guaranty Insurance Company is an affiliate of Wells Fargo Bank, N.A. |
Activities with Other FHLBank86
Activities with Other FHLBanks (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Schedule of Other Transactions [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | [1] | $ 2,341,059 | |||||||
Net gains (losses) on extinguishment of debt | $ 0 | $ (2,736) | $ 0 | $ (2,736) | |||||
Federal Home Loan Bank of Chicago [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans from Other Federal Home Loan Banks | $ 0 | $ 0 | |||||||
Loans to Other Federal Home Loan Banks | 0 | 0 | |||||||
MPF Service Fee Expense | 800 | $ 600 | 1,500 | 1,300 | |||||
Proceeds from Federal Home Loan Bank Loans | 10,000 | ||||||||
Payments for Federal Home Loan Bank Loans | (10,000) | ||||||||
Proceeds from Federal Home Loan Bank Borrowings | 150,000 | ||||||||
Repayments of Federal Home Loan Bank Borrowings | (150,000) | ||||||||
Federal Home Loan Bank of San Francisco [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans from Other Federal Home Loan Banks | 0 | 0 | |||||||
Proceeds from Federal Home Loan Bank Borrowings | 150,000 | ||||||||
Repayments of Federal Home Loan Bank Borrowings | (150,000) | ||||||||
Federal Home Loan Bank of Topeka [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans to Other Federal Home Loan Banks | 0 | 0 | |||||||
Proceeds from Federal Home Loan Bank Loans | 10,000 | ||||||||
Payments for Federal Home Loan Bank Loans | (10,000) | ||||||||
Other FHLBanks [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans from Other Federal Home Loan Banks | 0 | 0 | $ 0 | 0 | 0 | ||||
Loans to Other Federal Home Loan Banks | 0 | 0 | |||||||
Proceeds from Federal Home Loan Bank Loans | 20,000 | ||||||||
Payments for Federal Home Loan Bank Loans | (20,000) | ||||||||
Proceeds from Federal Home Loan Bank Borrowings | 200,000 | 370,000 | |||||||
Repayments of Federal Home Loan Bank Borrowings | (200,000) | (370,000) | |||||||
Federal Home Loan Bank of Atlanta [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans from Other Federal Home Loan Banks | $ 0 | $ 0 | |||||||
Proceeds from Federal Home Loan Bank Borrowings | 70,000 | ||||||||
Repayments of Federal Home Loan Bank Borrowings | $ (70,000) | ||||||||
Federal Home Loan Bank of Dallas [Member] | |||||||||
Schedule of Other Transactions [Line Items] | |||||||||
Loans from Other Federal Home Loan Banks | $ 0 | 0 | $ 0 | ||||||
Proceeds from Federal Home Loan Bank Borrowings | 200,000 | ||||||||
Repayments of Federal Home Loan Bank Borrowings | $ (200,000) | ||||||||
[1] | In anticipation of the closing of the Merger, on Friday, May 29, 2015, the Seattle Bank transferred $2.3 billion in cash to the Bank. The transfer was made to ensure the Bank had access to the Seattle Bank's cash balances on the first day of operations for the combined Bank, Monday, June 1, 2015. The Bank recorded a liability for this cash and the Seattle Bank recorded a receivable for this cash in their respective Statements of Condition for May 31, 2015. These balances were eliminated to arrive at the combined opening Statement of Condition. |
Uncategorized Items - fhlbdm-20
Label | Element | Value |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | us-gaap_AvailableforsaleSecuritiesGrossRealizedGainLossExcludingOtherThanTemporaryImpairments | $ 0 |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | us-gaap_AvailableforsaleSecuritiesGrossRealizedGainLossExcludingOtherThanTemporaryImpairments | 0 |
Net Realized and Unrealized Gain (Loss) on Trading Securities | us-gaap_NetRealizedOrUnrealizedGainLossOnTradingSecurities | (27,089) |
Net Realized and Unrealized Gain (Loss) on Trading Securities | us-gaap_NetRealizedOrUnrealizedGainLossOnTradingSecurities | 22,331 |
Net Income (Loss) Attributable to Parent, Net of Federal Home Loan Bank Assessments | us-gaap_NetIncomeLossAttributableToParentNetOfFederalHomeLoanBankAssessments | 21,035 |
Net Income (Loss) Attributable to Parent, Net of Federal Home Loan Bank Assessments | us-gaap_NetIncomeLossAttributableToParentNetOfFederalHomeLoanBankAssessments | $ 26,992 |